Glencore buys 80% stake in Rosh Pinah Zinc

Glencore International has acquired an 80.08% stake in Rosh Pinah Zinc Corporation, a zinc and lead miner in Namibia, for an undisclosed sum.

A subsidiary of Glencore acquired 50.04%, held by Exxaro Base Metals and Industrial Holdings in Rosh Pinah, and a further 30.04% from PE Minerals and Jaguar Investments Four.

The transaction is subject to conditions precedent, including obtaining required regulatory approvals.

Glencore co-director of the zinc / copper / lead department Daniel Maté said that the Rosh Pinah will add further value to the company's portfolio of diverse zinc operations.

"We look forward to completing this acquisition in due course," added Maté.

PE Minerals, Jaguar and the Rosh Pinah Employee Empowerment Participation Scheme Trust will hold the remaining 19.92% equity interest in the Rosh Pinah.

Rosh Pinah operates an underground zinc / lead mine in south-western Namibia. The current economic mine life is eight and a half years based on zinc concentrate production of 95,000tpa.
Currently, intensive on-mine exploration is underway to add to the total mineral resource base of 8Mt.

The Rosh Pinah mine produced 101,000t of zinc concentrate and 19,000t of lead concentrate last year.

Exxaro Resources CEO Sipho Nkosi told Mining Weekly that Exxaro's decision to dispose of its shareholding in Rosh Pinah and to close Zincor was done due to the cyclical nature of the zinc market, the industry's low margins, exchange rate volatility and higher electricity prices.

Glencore is an integrated producers and marketers of commodities headquartered in Baar, Switzerland.

Universal Bioenergy signs deal for coal mine acquisition

Universal Bioenergy has signed an agreement to acquire the Whitesburg Friday Branch Mine for an undisclosed sum.

The deal is expected to generate $264m in estimated revenues over the next five years.

Under the terms of the definitive agreement, Universal will acquire 40% of the interests and assets of Whitesburg from JLP & Partners LLC of Kentucky.

The Whitesburg Mine operates, mines and markets thermal coal in eastern Kentucky, US.

The closing of the transaction, subject to various customary conditions, is expected in the fourth quarter of 2011.

ICVL plans JVs for US mining companies

International Coal Ventures (ICVL) has discussed forming alliances with small and medium-sized mining companies to explore the mineral-rich region of Virgina in the US.
ICVL chairman C S Verma met a US delegation, headed up by Virginia's governor Robert McDonnell, and discussed the possibility of such a joint venture (JV), aimed at ensuring raw material security for the country, reports PTI.
The firm also intends to explore options for Greenfield locations and is in discussion with McDonnel concerning the acquisition of coking coal assets and companies in the US.

 http://www.mining-technology.com/news/newsicvl-plans-jvs-with-us-mining-companies

Capital Drilling grows further in Chile and Mauritania

Capital Drilling, the emerging and developing markets drilling company, has been awarded two further contract wins and extensions. Capital Drilling Mauritania has recently been awarded a new development drilling contract with Kinross Gold in Mauritania, which represents a further expansion of activity at the Tasiat gold mine, where Capital Drilling has been drilling since 2010. The new contract is for two reverse circulation (RC) rigs, one of which has been sourced internally with the second newly purchased. Both rigs are expected to commence drilling in the first half of 2012. Elsewhere, Capital Drilling Chile has been awarded a contract extension in the form of additional rigs for development drilling at the Cerro Colorado mine in Chile. Capital Drilling commenced drilling for BHP Billiton in 2011.  The extension calls for an additional two diamond rigs, which have been acquired and mobilised to site, with drilling expected to commence in January 2012.

These new rig additions have increased the company’s year-end rig fleet to 85 rigs from Atlas Copco, Schramm, Sandvik and other manufacturers, despite Capital having recently sold one rig and decommissioned a second rig, as part of the ongoing program of fleet management. Commenting on the new contracts, Jamie Boyton, Executive Chairman, said: “We are pleased to announce these new contracts today which demonstrate the continuing development of relationships with our existing customers. The current expansion of the fleet displays our strategy of organic growth working on long life assets with blue chip and major mining companies.” The company began operations in the Lake Victoria goldfields region of Tanzania and has since expanded into Zambia, Egypt, the DRC, Pakistan, Armenia, Serbia, Papua New Guinea, Mozambique, Hungary, Eritrea, Chile and most recently Mauritania. Over this time the workforce has expanded to more than 800 full time employees.

Canada ranks 5th in the world for coal reserves

Canada is sitting on nearly 4% of the world’s coal resources, with at least 80 billion tonnes of exploitable coal and 8 billion tonnes classified as commercially feasible under today’s conditions.


That puts Canada fifth in the world in terms of coal reserves, behind only the former Soviet Union, the US, China and Australia.


The numbers are contained in a new report by Research and Markets entitled Coal Industry in Canada.


The report says the reserves represent 100 years of supply at current production levels.


A few more interesting tidbits:


Canada holds close to 10 billion tons of coal reserves which contribute approximately $5 billion to the economy annually.
Coal meets about an eighth of Canada’s primary energy needs, mainly as a fuel for electricity generation.
The Canadian steel industry depends on coal for the production of almost every ton of steel.
The largest coal export markets for Canada are Japan and Korea.
Almost the entire production of metallurgic coal in Canada is exported.
Canada’s environment ministry has proposed tougher regulations for coal-fired power plants, but they do not go far enough to help the country achieve its greenhouse gas (GHG) emissions reduction targets.
Canada has some of the world’s most stringent standards for mine operations, worker safety and environmental protection.

WORLD-FIRST FIELD TRIAL OF ‘IN-SITU’ GOLD EXTRACTION PROCESS

 

A new, environmentally friendly process developed by Australia’s CSIRO, to extract gold without mining, is to be field tested for the first time - with a South Australian gold deposit chosen as the test site.

The breakthrough in-situ process - which may reduce the need for conventional, expensive open-cut mining techniques – is being taken forward through a collaboration agreement between the CSIRO and ASX-listed minerals explorer, Minotaur Exploration Limited (ASX: MEP).

Minotaur announced today that a 15-month program of field trials to confirm the process concept will take place at its Tunkillia gold deposit in the Gawler Craton, south of Tarcoola.

“The process has the potential to revolutionise the way we normally mine near surface weathered (or ‘oxide’) gold deposits, while at the same time delivering potential massive cost savings for the owners of oxide gold resources,” Minotaur’s Managing Director, Mr Andrew Woskett, said.

He said the process is specifically designed to treat oxide gold occurrences, as distinct from sulphide (or ‘primary’) gold systems.

Successful demonstration of the process at the field scale could open up the potential for any similar oxide gold deposits to be brought into production at low capital and operating costs, compared to traditional mining and processing methods.

The process involves installation of a conventional groundwater recovery bore field and injection of an appropriate solution (“lixiviant”) into the host rock. The lixiviant dissolves the gold in the rock and the gold in solution travels through the rock mass to be recovered, to surface, via nearby extraction wells, as ‘pregnant’ solution.

This differs markedly from conventional heap leach gold operations which require the ore to be mined, crushed and stockpiled on surface (as ‘heaps’) prior to irrigation with a cyanide solution.

The CSIRO has developed a non-cyanide solution that, when injected into the host rock, is expected to cause minimal alteration to groundwater chemistry. The field trials will focus on determining key objectives: the transmission characteristics of the lixiviant through the host orebody; groundwater modification; gold recovery rates and; economic feasibility of the in-situ gold recovery process.

A range of environmentally acceptable lixiviants has been trialled in the laboratory by CSIRO, with promising results. Groundwater at the Tunkillia test site is restricted in distribution, is highly saline and is not fit for human or stock consumption. The tests are expected to demonstrate no material detrimental impact on the quality of the groundwater.

Significantly, the process negates the need for traditional reliance on cyanide in solution to liberate gold from ore, thereby minimising hazardous material consumption and potential site contamination.

It obviates the need for pre-stripping, drill and blast, open-cut mining, crushing and grinding circuits, cyanide leach systems, waste dumps and tailings dams.

Mr Woskett said the process is not dissimilar to the in-situ extraction methods successfully employed for over a decade by the uranium sector – a process, until now, not able to be applied to gold as a non-cyanide based solvent had not been previously identified.

“Successful results from the lixiviant leach trials are expected to show that operating and capital investment costs are substantially lower, and implementation timelines much shorter, than for conventional gold mining and processing installations,” Mr Woskett said.

“The in-situ recovery process could potentially make many low grade oxide gold deposits economic to extract.”

New Technology - Redesigning the Drill

 

“We’re not just selling a product, but a concept which could change how mining is done around the world,” Mr Barrows of  Peterstow Aquapower commented. 

At its factory, the company produces a closed-loop hydraulic drill, which it claims will revolutionise mining across the world.  

At present, most of SA’s deep-level gold and platinum mines use hand-held pneumatic drills to bore holes in the underground rock face. In pneumatic drills, compressed air drives the drill bit. Explosives are then inserted into the holes to blast the rock. 

“If you go underground, it’s like stepping into the Victorian era. If you had cryogenically frozen a miner from 100 years ago, the only difference would be the cellphone,” says Douglas Barrows, Peterstow founder and chairman. 

The problem with pneumatic drilling is that it is very energy-and water-intensive. A compressor – which compacts the air for the drill – is on the surface, which can be thousands of meters above the actual drilling. 

It is “very inefficient” mainly because of leaks in the pipes before it gets to the drill, according to Declan Vogt of the CSIR’s Center for Mining Innovation. “Of the electrical energy used, only 1% gets used in the drills,” he says. 

Ian Cockerill, former CE of Gold Fields and a Peterstow board member, says: “The installed energy capacity at the average large mine is around 250MW, and something like 30% of that consumption is from compressors. If you can eliminate that energy consumption on half-dozen mines that saves enough energy to power a town the size of Port Elizabeth.”

Moreover, giant tanks of oil are attached to the compressor. This is to facilitate oil-mist lubrication for the machinery. This is part of the acid mine drainage problem and pollutes drinking water, Mr Barrow says. 

“It was a crazy idea. I realised the future of the world (and mining) was not oil, but water.” 

Mr Barrows developed the idea for the drill in the mid-1990s, but the technology suite did not exist at the time. “They’ve now completed the jigsaw puzzle.” 

The Peterstow drill employs a patented closed-loop water hydraulic system in conjunction with modular power packs, which are taken underground. 

The design dramatically reduces water and electricity usage. 

It also decreases the chance of flooding, meaning that mines do not have to install and pay for additional facilities to pump water back to the surface. 

The global mining industry is a big user of electricity. South African mining houses, in particular, are under pressure to cut the electricity consumption. Acid mine drainage – polluted water from mining areas – has found its way on to the national agenda. 

“We can cut electricity consumption by up to 25%, and water usage by as much as 855, but the saving depends on each mining case,” Mr Barrows says. 

Alan Barrows, Douglas’s son and Peterstow director, says the new leaders of mining houses are “more modern and forward thinking. We are in advanced negotiation with a number of South African mines.” 

Douglas Barrows says: “There are about 34 trials and evaluations underground at this moment.” 

The factory in Swaziland produces the drills and power packs – which come in 7,5kW and 15kW units – as well as road-breakers for construction. However, Peterstow has its eye on expansion, in which Alan Barrows envisions the factory producing 4 000-5 000 drills a month, from the current 100. Peterstow drills retail for about $18,5m for 1000 drills. 

However, mines face a quandary as, on the one hand, the pneumatic drill infrastructure exists down the shafts but, on the other hand, the energy and water inefficiencies push up their costs. 

Mr Vogt says: “I like the Peterstow technology. Redesigning drills from scratch and powering them with water has resulted in a superior drill, but you can’t predict worker preference. 

“Managing the change process will dictate whether they (Peterstow) succeeds

 

Source: Business Day

mineral resource

A mineral resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form or quantity and of such grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing geological confidence, into inferred, indicated and measured categories: An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonable assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.