Latest issue of International Mining Project News available (September 25): The development at Ivanhoe Mines’ and Rio Tinto’s Oyu Tolgoi copper/gold project in Mongolia is the big news from this fortnight. The companies have mutually agreed to ‘fine tune’ two provisions of Rio’s phased investment of $2.4 billion in Ivanhoe, in expectation of the Investment Agreement between the companies and the Mongolian Government being signed shortly. There is also news of two big copper/molybdenum projects in Peru. Anglo American looks set to develop Quellaveco, and Xstrata Copper is closing in on the start-up of Las Bambas. In Chile, Pan Pacific Copper is progressing with the development of its Caserones copper and molybdenum deposit. Also, Coal of Africa has successfully completed the sale and loading of its first train of mid volatile ‘lean’ coal, mined at its Mooiplaats thermal coal project in South Africa.
Early on in the fortnight there was promising news for the diamond mining industry – a sector that has really suffered over the last 12 months. Diavik Diamond Mines, a subsidiary of Harry Winston Diamond Corp, decided to cancel a winter production shutdown at the Diavik mine in Canada’s Northwest Territories. Earlier this year, Diavik had announced a series of actions in response to changes in market conditions, including plans for a summer and winter production shutdown. The summer shutdown was safely and successfully concluded on 24 August and rough diamond production has returned to pre-shutdown levels. The winter shutdown, which has now been cancelled, was originally planned for 1 December 2009 through 11 January 2010.
Vale has announced that it has a budget of 6.2 billion reais ($3.45 billion) for growth projects in the Minas Gerais state of Brazil, the state’s government said at mining institute Ibram’s 13th annual conference being held this week in Belo Horizonte. The investments include the construction of the 25 Mt/y Apolo iron ore mine in the next four or five years, and expansions to the Itabira and Itabirito mines.
Moving back to Pan Pacific, it is intending to start construction of its Caserones project during the second half of 2010 with completion towards the middle of 2013. SX-EW production of refined copper (dump leaching) should start by the beginning of 2013, and production of copper and molybdenum concentrates by the middle of 2013. Estimated annual production (the average during the initial phase of five years) is 150,000 t of copper in copper concentrate and 30,000 t of refined copper produced by SX-EW process. About 3,000 t/y of molybdenum will also be produced.
In Alaska, Northern Dynasty and Anglo American continue to progress the most extensive, undeveloped porphyry system in the world. At a 0.30% Cu equivalent cutoff, the Pebble deposit comprises 5,100 Mt of Measured and Indicated mineral resources grading 0.77% CuEq, containing 48,000 Mlb of copper, 57 Moz of gold, and 2,900 Mlb of molybdenum; plus 4,000 Mt of Inferred resources grading 0.55% CuEq, containing 24,000 Mlb of copper, 37 Moz of gold and 1,900 Mlb of molybdenum.
In the DRC, First Quantum Minerals has suspended construction at its Kolwezi project. The suspension follows the issuance of an order by the General Prosecutor of Katanga to seal Kingamyambo Musonoi Tailings’ facilities; however First Quantum has been advised by its lawyers that such an order is illegal for several reasons. Construction of the project is at an advanced stage (around 65% complete) and was on schedule to start commissioning in May 2010. Initial production rates are expected to be 35,000 t copper and 7,000 t cobalt per year, rising to 70,000 t copper and 14,000 t cobalt within two years. The company has said it regrets that the suspension will result in the immediate loss of around 700 jobs in the Kolwezi area, loss of tax revenues to the DRC government, and an indefinite delay in commissioning of the Kolwezi project, which was targeted for May 2010.
There is also news of BC Iron commencing trial mining at its Nullagine iron ore project in the Pilbara, comments from Gabriel Resources’ Chief Executive Officer about its Rosia Montana project in Romania and three updates from Giralia Resources’ iron ore projects; as well as many others.
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