Showing posts with label Mining. Show all posts
Showing posts with label Mining. Show all posts

Monday, January 19, 2009

Omagh Gold Project, United Kingdom


The Omagh gold project, situated in Crown Estate prospecting licence OM 1/03, covers an area of about 189km2, straddling the counties of Tyrone and Fermanagh in western Northern Ireland.

Omagh Minerals Ltd (OML), a wholly owned subsidiary of Canadian company Galantas Gold Corp, owns the freehold to the site as well as the prospecting and mining rights, planning consent and infrastructure.

Following the discovery and exploration of vein gold at Curraghinalt in the Sperrin Mountains by Ennex International in the mid-1980s, Riofinex North Ltd began exploration of the geological inlier known as Lack, named after a local village. Riofinex discovered the gold-bearing Kearney vein structure – the current focus of production – and the surrounding swarm of gold veins during the course of an exploration and resource delineation programme.

In 1990, the project was transferred to OML, which was acquired in 1997 by Ontario-based European Gold Resources. In 2004, the company was renamed Galantas – Gaelic for ‘elegant thing’.

The $20m project has been funded through a series of stock issues. The payback period is estimated at 2.7 years from July 2008.



Geology

The licence includes a 72km2, partly fault-bounded, Lack inlier of upper Proterozoic age and upper Dalradian metamorphic rocks, surrounded by lower Palaeozoic rocks. The Dalradian of the eastern half of the Lack inlier, where most of the exploration work has been done, consists mainly of a series of quartz-feldspar-muscovite-chlorite schists of varying composition.

Mineralisation within the structures consists of quartz veins up to a metre wide with disseminated to auriferous sulphides, predominantly pyrite and galena, with accessory arsenopyrite and chalcopyrite.



Resources

The mine consists of several veins of varying ore grades. May 2008 estimates put total measured and indicated resources at 104,000oz Au and inferred resources at 295,800oz Au. The resources are independently reported to CIM code and Canadian National Instrument 42-101 standard. Extraction of only two of the veins, of which Kearney is the largest, is expected to give a mine life of 4.6 years.



Production

The Kearney vein is being mined by open-pit methods. The rock is sufficiently naturally fractured that blasting is not required.

There are two types of overburden within the pit: peat and glacial till. Both are being stockpiled for use in later restoration. Below the till lies bedrock, both barren country material and mineralised gold resource. The ore is being mined using a narrow excavator bucket then taken to a nearby processing plant by dump truck.



Processing

The processing plant uses conventional crushing, grinding and flotation to produce a lead sulphide concentrate. The ore is crushed in three stages (two-stage for the smaller pieces) and ground with water in a ball mill to fine sand, about half of which is less than 75 microns. Some of the ground material is treated by gravity methods but most of it is mixed with water, foaming and flotation agents, then passed to froth flotation tanks. The foam is then taken from the top of the cell, cleaned and dewatered and the resultant concentrate packed for shipment and sale.

First concentrate was shipped in February 2007. Concentrate enhancement experimentation is taking place. Froth washing has so far proven more effective than use of a regrind circuit.

During 2007 Galantas processed ore containing 6.24g/t gold and achieved a recovery of 89%. This improved during the year such that, after May 2007, the average recovery was 90% and the average after November 2007 was 92%.

Recovery for January and February 2008, at 83g/t, was similar to the 2007 average but the average for March and April 2008 rose to 106g/t.

The concentrate is sold via an offtake agreement with Xstrata subsidiary Falconbridge, of Canada, while part of the recovered gold is designed and sold by Galantas Irish Gold through retail channels such as Galantas-branded 18ct gold jewellery.

Power is provided by a 1,000kVA genset, a 400kWA genset and an 80kVA genset, although not all are in use at any one time. Galantas anticipates that mains electricity will be provided in due course.

Tuesday, December 30, 2008

Olympic Dam Copper-Uranium Mine, Adelaide, Australia

The Olympic Dam copper-uranium mine and plant is situated in South Australia, 580km north-west of Adelaide. Opened in 1988, Olympic Dam is wholly owned and operated by WMC Resources, which discovered the deposit in 1975. A A$1,940m expansion programme was completed in 1999, raising its capacity to 200,000t/y of copper and 4,300t/y of uranium, plus gold and silver. In mid-2005, BHP Billiton gained control of WMC Resources in an A$9.2bn takeover.

In 2007 BHP Billiton announced that it would undertake a A$6bn–A$7bn expansion of the Olympic Dam mine. The company says that annual ore production will increase up to 70 million tonnes, a seven-fold increase if the expansion proceeds. Copper production will increase from approximately 180, 000t a year to approximately 730,000t.

This would include 500,000oz of gold, 500,000t of copper and 15,000t of yellowcake. Existing average gold production is 80,000oz pa. The additional proven reserves of uranium now make Olympic Dam one of the most promising uranium mines in the world.

Intierra's Minmet data base puts current Olympic Dam proven-probable reserves at 756 million tonnes grading 1.5% copper, 0.5kg/t U308, 0.5 g/t gold and 3.1g/t silver. The measured to inferred resources were 3.214 billion tonnes at 1.025% copper, 0.337kg/t U308, 0.442g/t gold and 2.144g/t silver. On these figures, without improved grades or increased tonnage, Olympic Dam has proven reserves of a contained 12.153Moz gold and contained resources of 45.62Moz.

The results of the study ended much speculation within the mining and investment communities, which were especially abuzz about the potential upgrade of gold reserves.

Once fully complete, the expansion would make Olympic Dam the biggest mine in the world. Concerns have naturally been voiced about how the necessary infrastructure will be funded and deployed. Finding skilled labour will be another challenge.

GEOLOGY AND RESERVES

The deposit occurs in the basement rocks of the Stuart Shelf geological province in the north of South Australia, west of Lake Torrens. Mineralisation consists of medium-grained chalcopyrite, bornite and chalcocite, fine-grained disseminated pitchblende, gold, silver and rare earth minerals that occur in a magnetic hydrothermal breccia complex beneath 350m of overburden. The ore occurs in distinct zones that determine the mine access and layout.

As of September 2008, the total ore reserves at Olympic Dam stood at 473Mt, up from 399Mt in 2007, grading 1.86% copper and 0.6kg/t U3O8..

MINING

The current scope and logistical demands of the mine will be increased by a few orders of magnitude once the expansion gets into full swing. The mine will gradually be transformed from an underground operation to open pit.

Three vertical shafts and a decline access the orebody, which is worked using a variation of sublevel open stoping. Each stope may contain 300,000t of ore. Drill drives are driven on the stope centre line and blastholes drilled in vertical rings. These are charged with ANFO and detonated with shock tube detonators. The drilling fleet comprises Atlas Copco and Tamrock production rigs, with development being carried out using two Tamrock (now Sandvik) jumbos. Atlas Copco has supplied two modified Simba H4356S production drilling rigs.

Stopes are backfilled with cemented aggregate of crushed 'mullock' (waste rock), deslimed mill tailings, cement and pulverised fuel ash (PFA). Automation has done much to reduce production costs at Olympic Dam. Innovations include the automated underground haulage system and the 'smart' loader, a robotics-driven, decision-making underground ore carrier.

ORE PROCESSING

Processing facilities consist of a copper concentrator, hydrometallurgical plant, copper smelter, sulphuric acid plant, copper and gold/silver refineries. Recent expansions included a Svedala autogenous mill, additions to the flotation sections, two counter-current decantation thickeners, an electric slag-cleaning furnace, a new anode furnace gas-cleaning plant and additional electro-refining cells.

Copper is recovered primarily by copper sulphide flotation from slurry before the copper concentrate is smelted and electro-refined to high-purity copper.

Wastes generated during electro-refining are treated to recover gold and silver. After treatment by flotation, the finely-crushed ore is leached with sulphuric acid to dissolve uranium and any remaining copper. The leach liquor is processed in the solvent extraction plant to separate the residual copper and uranium streams. Copper is recovered by electrowinning and uranium converted to yellowcake and calcined uranium oxide.

Installation of two pulsed columns has increased uranium recovery from solution from 90% to about 97%. These columns use an air pulse to mix the acidic and organic solutions, providing better contact for the chemical reaction involved in transferring the uranium from one to the other.

Copper cathode sheets are transported by truck within Australia and to Port Adelaide for export. All uranium oxide produced at Olympic Dam is exported. The gold plant became fully operational in 2000. A fire in 2002 at the solvent extraction / electrowinning plant cost over A$300m to repair, while WMC also spent A$127m on renovating the copper smelter during 2003.

EXPANSION

At the end of October 2008, BHP Billiton announced that it expects to complete the first of the mine's five-stage expansion by 2013, boosting annual production capacity to 200,000t of copper, 4,500t of uranium and 120,000oz of gold. Up to the end of the business year on 30 June 2008, Olympic Dam produced 169,000t of copper cathode, 4,144t of uranium and 80,517oz of gold.

The expansion will be followed by a staged development of an open pit, with an eventual target output of 730,000t of copper and 19,000t of uranium. The company also said it is looking at shipping copper concentrate directly to smelters in China, which will cut the cost of producing cathodes at the mine.

ENVIRONMENT

Olympic Dam maintains storage facilities for all waste products. The plant has been designed so that any spillage of ore, concentrate or process slurries can readily be returned to the process circuit. The plant also includes comprehensive air pollution control equipment and both air emissions and noise are monitored. Extensive radiation monitoring of personnel and the environment is ongoing.

The Australian and South Australian Governments jointly determined that the proposed Olympic Dam expansion must be formally assessed through an Environmental Impact Statement (EIS).

Wednesday, December 17, 2008

Munali Nickel Project, Zambia

The Munali project sits about 60km south of Lusaka in southern Zambia. It is wholly owned by Australian company Albidon Ltd, and currently consists of two deposits – Enterprise, also known as Munali Phase 1, and Voyager. Although it is billed as a nickel project, Munali also contains commercial quantities of copper, cobalt and platinum group metals (PGMs).

Development began in September 2006 following a positive feasibility study and gaining the necessary government permits and approvals. Production of ore for the ten-year project started in March 2008, with first concentrate being processed for stockpiling in late June 2008.

The project is said to be one of very few new nickel sulphide developments planned worldwide in the next few years, and is expected to have a final direct cash operating cost of about US$3 per pound of nickel in concentrate.

Munali is costing $125m in capital and about $25m in working capital and mine development, and has been funded by a mix of debt financing and equity.

Up to $80m of senior debt has been provided by Barclays Capital and the European Investment Bank as joint lead arrangers for the project; the Jinchuan Group, of China, has provided an extra $20m in subordinated debt.

The equity funding consists of $40m raised from Albidon shareholders, $15m from the Jinchuan Group and $10m from ZCCM Investment Holdings plc. The Jinchuan Group has a life-of-mine offtake agreement with Albidon for Munali, and its share of the funding is part of the agreement.

Geology

The deposit is of the "gabbro-hosted" class of nickel sulphide deposits and, as such, the geology and style of mineralisation are broadly similar to that of other gabbro deposits such as Tati in Botswana and Sally Malay in Australia.

Albidon's geologists believe that the mineralisation is associated with mafic to ultramafic intrusions that have been emplaced along major regional faults, with the type example being the Munali Gabbro intruded along the Munali Fault.

Resources

The latest total indicated and inferred resources for the deposits, at a cut-off grade of 0.6% nickel, are 10.3Mt at 1.2% nickel, 0.2% copper, 0.07% cobalt, 0.6g/t palladium and 0.3g/t platinum. This amounts to a current metal inventory at Munali of 123,500t of Ni and 246,800oz of PGMs.

Production

Following an initial ramp-up period through 2008, annual production is scheduled to reach full capacity by early 2009, when it will consist of 10,000–10,500t of nickel, 1,650t of copper, more than 480t of cobalt and 18,000oz of PGM from the 1.2Mt/annum underground Enterprise mining operation.

The ore is processed through a conventional flotation concentrator that consists of a simple crushing and grinding circuit, rougher, scavenger and cleaner flotation cells, followed by concentrate and tailings thickeners. The end product is a nickel-copper-cobalt-PGM concentrate which is sold to Jinchuan Group for smelting. Albidon recorded its first revenue from the sale of Munali concentrate in October 2008.

The water supply for the project comes partly from an onsite borefield. Also, groundwater inflow into the mine is pumped to the surface storage system for use in the processing plant, and water used to pump tails to the tailing storage facility is returned back to the processing plant for reuse.

Albidon has agreed a ten-year power supply deal with Zambian utility Zesco, in which a 25km, 33kV overhead power line has been built from the hydroelectric substation in Kafue. The average running load for the plant and the mine is estimated at 5MVA.

The principal mining contractor was Byrnecut Mining International Ltd, of Australia.

Monday, November 24, 2008

Kaltim Prima Coal Mine, Indonesia


Kaltim Prima, one of the new generation of Indonesian thermal coal producers, is located in north-eastern Kalimantan. It is operated by PT Kaltim Prima Coal (KPC), which from the project's inception up to late 2003 was jointly owned by BP and Rio Tinto. The Indonesian government receives a royalty equivalent to 13.5% of the revenue. The operation is self-contained and employs some 2,700 people.

Although BP and Rio Tinto's Contract of Work required the companies to divest part of their holding to local interests, up until 2003 no Indonesian purchaser was able to raise the finance needed to buy them out.

In mid-2003, the companies announced the sale of their holdings in KPC to PT Bumi Resources for a cash price of $500m, including assumed debt. PT Bumi Resources already owned PT Arutmin Indonesia, another major Indonesian coal producer, and has interests in oil, natural gas and mining, amongst other commercial sectors.

In 2006, PT Bumi announced the sale of all its coal holdings to PT Borneo Lumbung Energi for $3.2bn. However, the deal subsequently failed, although PT Bumi later indicated that it still intends to divest a proportion of its holdings.


PROJECT DEVELOPMENT

BP and CRA (now Rio Tinto) successfully tendered for a 7,900km² licence area in eastern Kalimantan in 1978. Exploration from 1982–86 indicated reserves of 112Mt of export-quality thermal coal. Construction began in 1989 and the mine was commissioned in 1991 as a 7Mt/y operation at a cost of $570m.

The mine has subsequently been expanded, with a sales target of 20Mt/yr by 2005. PT Bumi is planning further expansion to 30Mt/yr, plus the development of the Bengalon reserve, some 25km from the existing Sangatta operations.

In mid-2004, PT Bumi awarded the Australian contractor, Henry Walker Eltin, a $1.2bn, ten-year contract for infrastructure development and mining services at Bengalon, which will have a 6Mt/yr initial capacity.


GEOLOGY AND COAL QUALITY

Pressure and heat associated with an igneous intrusion has increased the rank at Kaltim Prima to high-volatile bituminous coal. A total of 13 seams range in thickness from 1m to 15m; typically in the range of 2.4m to 6.5m. Seam dips vary from 3° to 20° at the outcrop. The seams are very clean in terms of mineral matter and sulphur and, at 4–8% in some areas, the in-situ moisture content is low.

As of the end of 2005, PT Bumi cited reserves at Sangatta at 621Mt, plus 165Mt at Bengalon. The company also has measured and indicated resources of some 3,700Mt.

As of mid-2004, PT Bumi cited reserves at Sangatta at 462Mt, plus 157Mt at Bengalon. The company also has measured and indicated resources of some 2,200Mt.

The operation produces two main export products. Prima Coal is a high-volatile bituminous steam coal with high calorific value, very low ash, low sulphur and low total moisture. Pinang Coal is similar but has a higher moisture content. Quality parameters are:

Product ***********PrimaCoal **********Pinang Coal


Moisture (total) *******9.5% ***************14%
Ash ***************** 4% ******************6%
Volatiles **************39%*************** 39%
Fixed carbon********** 52% ***************46%
Total sulphur********* 0.5% **************0.5%
Heating value (adb) **30.1MJ/kg ********27.6MJ/kg
Heating value (gar) **28.5MJ/kg *********26.0MJ/kg

adb = air-dried basis
gar = gross, as received
KPC blends run-of-mine coal from its various pits to ensure product consistency.

As of end-2001, Kaltim Prima had mineable reserves totalling 462Mt, plus measured and indicated resources of nearly 2,200Mt.


MINING TECHNOLOGY

KPC operates six to 12 individual open pits at any time, the average stripping ratio being 7.5bcm (bank cubic metres) of overburden per tonne of coal. The overburden material degrades quickly on exposure to the atmosphere and generally provides easy digging.
Some overburden rock requires blasting to ensure adequate fragmentation for the shovels. KPC carries out its own mining in most of the pits, but also contracts out a smaller proportion of its mining requirements.

The mine's loading fleet consists of over 20 large hydraulic shovels and backhoes with bucket capacities of up to 34m³. Leading suppliers include Hitachi, with nine EX3500 machines and six EX1800s, and Liebherr, which has six R996 Litronic shovels/backhoes on site.

Overburden haulage involves a fleet of 137 trucks, including Caterpillar 785s and 789Bs with capacities of 135–185t, Cat 777s (85t) and Komatsu HD785s (also 85t). Truck scheduling is carried out using a GPS-based Mincom dispatch and management system.


COAL PROCESSING

With selective mining, over 90% of the run-of-mine coal only needs crushing and blending to give export-quality Prima Coal. Coal from the seam roofs and floors contains more mineral material, and so has to be washed. This 'dirty Prima' and Pinang material is handled separately from the 'clean Prima', with individual streams for the different raw materials.

After crushing to –50mm in Gundlach rolls crushers, the washing plant uses dense medium cyclones for 0.5mm to 50mm feed, and spirals for the –0.5mm material, products being dewatered in centrifuges before blending into the Prima Coal stockpile.


OVERLAND TO THE PORT

The mine site contains separate stockpiles for the Prima and Pinang products, holding 60,000t and 35,000t respectively. Coal is reclaimed and transported by a 13km-long, 2,100t/h-capacity overland conveyor to Kaltim Prima’s dedicated port facilities at Tanjung Bara.

Further stockpiles hold a live capacity of 350,000t of Prima and 150,000t of Pinang coals. Coal is transferred directly from mine to ship whenever possible.

Vessels of up to 220,000dwt can be handled by the port, with loading facilities at the end of a 2km-long jetty. Twin quadrant loaders can each handle up to 4,700t/h, the normal loading throughput.


PRODUCTION

Since production began in 1992, Kaltim Prima has increased its output year-on-year, from 7.3Mt in its first year to some 17Mt in 2002 and 2003. PT Bumi is now expanding the Sangatta operation to 30Mt/yr, with a further 6Mt/yr to come from Bengalon.

The operation produced 27.6Mt in 2005, with a target for 2006 of 36Mt of coal and some 700Mt of overburden.

Samancor Chrome Mines, South Africa


With low electricity prices, South Africa has been able to expand chromite and ferrochrome production more or less continuously since the AOD process was developed in the 1960s to use ferrochrome smelted from lower-grade ores. Samancor was created in 1975 and its Chrome Division grew, mainly by acquisition, to become the world's largest integrated ferrochrome producer and South Africa's leading exporter of chemical-grade chromite and foundry sand.

Until June 2005, Samancor was owned by BHP Billiton and Anglo American plc, at which time the two companies sold the bulk of Samancor Chrome’s wholly-owned interests to the Kermas Group. Xstrata and the Black Economic Empowerment company, Merafe, took over Samancor's stake in Wonderkop and certain chromite resources. In 2006, Kermas South Africa sold a 28% equity interest in Samancor Chrome to a Black Economic Empowerment consortium, Batho Barena.

Innovations introduced by Samancor have included direct chromite reduction and DC smelting. Samancor Chrome has subsequently streamlined its mine management while upgrading its smelters and improving non-metallurgical concentrates production. To stabilise ferrochrome capacity utilisation, Samancor Chrome formed export production joint ventures with Far Eastern customers and a joint venture with local competitor Xstrata to build two new furnaces at the latter's Wonderkop smelter.

Samancor Chrome now provides employment for 5,500 people at two mines, three production plants and the corporate head office in Johannesburg.


GEOLOGY AND RESERVES

Samancor’s operations are centred on reserves held in the Bushveld layered intrusive complex, which contains approximately 70% of the world’s economic chrome ore reserves in the Lower Group (LG) 6 and Middle Group (MG) 1 seams. LG6 has a Cr2O3 content of 43-47% and a Cr:Fe ratio of 1.6:1, while MG1 averages 42% Cr2O3 and a Cr:Fe ratio of 1.5:1. LG6 is typically 1.1m thick and MG1 1.4m, both dipping gently.

At end-June 2002, Samancor's proven reserves totalled 16.6Mt grading 42.4% Cr2O3 with probable reserves of 23.4Mt. Total resources are estimated to be sufficient for 200 years mining at current rates.


MINING

Samancor has two mining centres: Eastern Chrome Mines (ECM) in the Steelport area of Mpumalanga Province and Western Chrome Mines (WCM) near Rustenberg and Brits in Northwest Province. Both units now comprise three underground mining areas, each with a hoisting shaft, while WCM also includes an open-cut mine. Overall capacity is approximately 5.8Mt/y of run-of-mine ore.

Underground, Samancor relies mainly on room-and-pillar mining, typically with low-angle adits connecting to a horizontal access level. Thin seams limit the scope for mechanisation and blasting relies on drilling with hand-held pneumatic jackleg units. The ore is mined either up-dip or down-dip in rooms approximately 20m wide, with the roof supported by ore pillars. Scrapers haul chromite to ore passes that load trains on the haulage level. The trains load a conveyor in the hoisting adit. The dimensions in the Waterkloof/Millsell mining block have allowed WCM to replace scrapers with load-haul-dump machines.

The open cut mine uses 8t-capacity loading shovels and 40t-capacity trucks.


ORE PROCESSING

Samancor’s concentrators – three for ECM and three plus a fluidised bed dryer for WCM – are individually configured to treat specific feed and yield a particular product range.

Bushveld chromite is conveniently milled to recover a fine concentrate by gravity and elutriation techniques. However, ferrochrome furnaces need a porous charge so lumpy ore and chips must also be recovered by dense medium separation to mix with the fines. The fines may be agglomerated at the smelters, either by briquetting or using the Outokumpu pelletisation and preheating system, to reduce the amount of lumpy ore and chip required. Further gravity separation and elutriation steps yield the specific grain sizes and reduced levels of impurities, such as silica, required for the chemical and foundry sand markets.

Samancor currently operates a flexible smelting system with capacity in excess of 1Mt/y of ferrochrome at three sites.






PRODUCTION

In 2000, Samancor Chrome produced 3.7Mt of chromite and 1.06Mt of ferrochrome. Output fell in the depressed market of the following two years but recovered to 1.02Mt of ferrochrome in 2003. Total saleable production in the year to June 2004 was 1.026Mt, and that in the year to June 2005, 954,000t. Approximately 0.5Mt/y of chromite is exported, mainly as chemical-grade or foundry sand.

Wednesday, November 19, 2008

Green from Gold "The Rehabilitation of Golden Cross"


Introduction

Tucked away in a Coromandel valley down a dead end road is a modern New Zealand gold mining success story. Faced with rugged terrain, some of the highest rainfall in the country, and complex geology, the Golden Cross mine has endured cyclones, a major land movement, and antimining misinformation to become a productive operation, and the first modern mine in New Zealand to successfully move into planned closure and final rehabilitation.



above from left: Golden Cross prior to mining in 1990, during active mining in March 1994, and during rehabilitation, March 2001.


The Site
The Golden Cross mine site is situated eight kilometres north-west of Waihi in the Waitekauri Valley at the base of the Coromandel Peninsula. The mine site ranges from 270 metres to 460 metres above sea level on steep to rugged terrain, which receives in excess of three metres of rain per year. The site is bordered on three sides by land controlled by the Department of Conservation, including the ecologically sensitive Coromandel State Forest Park.


A Brief History

Between 1895 and 1920 the Golden Cross underground mine produced just over two and a half tonnes of gold. When the mine closed the site became farmland.

In 1977 two exploration licences were taken out. Initial investigation showed potential. A prospecting licence was obtained in 1980 and a drilling programme commenced in 1981. By mid 1985 exploration had revealed a potentially mineable deposit. Project feasibility followed. An Environmental Impact Report, a mining licence application and applications for water rights were lodge in late 1987. Water rights were granted in 1988. The mining licence was granted in April 1990, having been the subject of an appeal to the Planning Tribunal. Bonds of $12.1 million were required to be lodged to allow the project to proceed.

The new Golden Cross mine began production in December 1991. Mining was by underground and open pit methods. The Golden Cross underground mine was the first underground gold mine to operate in New Zealand since the nearby Martha Mine at Waihi closed in 1952. A skilled workforce was developed mainly by training workers hired locally.


above: Geologists underground at Golden Cross during the active mining phase. Over 11 kilometres of tunnels reaching a depth of 300 metres below the surface were driven through the rock.


Coeur d'Alene Mines Corporation purchased the Golden Cross mine in March 1993 in an 80%/20% joint venture with New Zealand company Viking Mining.

Between December 1991 and April 1998 the mine produced a total of 20.5 tonnes of gold and 52 tonnes of silver with a present day value of approximately $430 million, most of which was spent in New Zealand. At its peak Golden Cross employed 243 staff, as well as indirectly employing approximately 750 people in service and support industries. The company's annual staff payroll exceeded $10 million.

The mine officially closed on 17 December 1998 and became the first modern mine in New Zealand to move into planned closure and final rehabilitation. The area is now used for grazing, wetland and native habitat.


The Mining Operation

Ore hauled from the underground and open pit mines was processed at the mill located on the site. Over 11 kilometres of tunnels reaching a depth of 300 metres below the surface were driven through the rock. Waste rock was used to backfill the tunnels and build the tailings impoundment. Ore was crushed then put through the mill to remove the gold and silver. Once the precious metals had been removed, the remaining fine rock and water mix, now called tailings, was pumped to the tailings dam. Cyanide used in the gold extraction process was recycled using a new, patented process. This was a world first for its use on a commercial scale.


above left: The Cyanisorb plant recycled cyanide used in the gold extraction process to the leach circuit for reuse.
above right: The Golden Cross process plant with the Coromandel State Forest in the background, 1997. The plant has since been removed and the area rehabilitated.

The waste rock embankment that impounded the tailings was constructed with suitable rock from the open pit. On the surface the area may just look like a hill and a lake, but it is actually a very carefully engineered structure. It consists of a series of layers and zones, each of a different material, and each carefully placed. In addition the structure features an underground drainage system. The construction of the dam took place over a number of years in a series of lifts as material became available and storage capacity was required. Fault zones run through the area, so the dam was designed and built to withstand a Maximum Credible Earthquake much larger than the 1931 'quake that devastated Napier which measured 7.9 on the Richter scale.



above: The waste rock embankment is a carefully engineered structure consisting of a series of layers and zones.

Tailings from the processing plant were pumped through pipelines to the tailings dam. Excess water was decanted and piped to the water treatment plant before discharge.

The dam contains over five million tonnes of tailings. As it was filled, the tailings consolidated. At closure a cap of fill and topsoil was placed around the perimeter of the dam extending out over the tailings. The area was contoured and revegetated. The central area was left as a body of water that drains clean water through the outlet channel into the Waitekauri River.



above: As part of the rehabilitation process, staff lay geotextile cloth around the perimeter of the tailings pond. Clay and topsoil is then layered on top and the area revegetated.


Environment

New Zealand's permitting and operating requirements are amongst the most stringent in the world. Numerous Resource Consents require monitoring and reporting.

Environment Waikato took the lead role under the RMA for environmentally related issues with Hauraki District Council occupying the role of second tier regulator behind the regional council.

From the original planning stage it was obvious that effective water management would be the key to successful environmental management of the project.

Steep terrain and high rainfall on site required the mine to use an advanced water management system. During operation a series of diversion drains collected water from surrounding hills and diverted it away from the site, into the local stream system. Underground drains collected any natural or tailings seepage from the tailings impoundment area and directed this water to the water treatment facility. Water pumped from underground was directed to settling ponds or the water treatment plant prior to discharge into the Waitekauri River.



above left: The water treatment plant. above right: Monitoring water on site.


All water on site was monitored according to a rigorous quality and quantity schedule. At the water treatment plant, in addition to a comprehensive water quality monitoring system, juvenile rainbow trout were used to establish a real-world real-time biomonitoring system to monitor the potential effects of discharge water on the receiving stream ecology. Three test aquaria were set up; one contained 100% river water as a control, another 20% water treatment plant discharge and 80% river water, and another 100% water treatment plant discharge. Water was continuously pumped through the aquaria. Treated water was taken from the retention pond 6–12 hours before planned discharge. If fish appeared distressed the discharge to the river could be stopped prior to that water entering the discharge pipe and the water treatment plant put into recycle so that potential problems could be identified and rectified.

This was the first use of continuous effluent biological monitoring in New Zealand.


above: Juvenile rainbow trout became the modern equivalent of the miners' canaries when they were used to establish a biomonitoring system to monitor the potential effects of discharge water on the receiving stream ecology.

During operation any potential long-term effects of the mine discharge into the Waitekauri River were assessed by monitoring the plants and animals that live in the aquatic environment. Changes in the abundance and distribution of aquatic life are regarded as reliable indicators of an effect. Independent studies of algae, macro invertebrates (e.g. snails, caddis fly) and fish were conducted. Annual analyses of fish tissue for bioaccumulation were also performed. Regulatory agencies were also involved, cross-checking results and providing independent data.



above left: Regular monitoring of the Waitekauri River. above right: Over 100,000 thousand native trees and shrubs have been planted in and around the mine site.

The on site and in steam biomonitoring programmes have shown no measurable impacts to fish or other aquatic organisms during the operation of the mine.

In addition to its regulatory requirements the company undertook an extensive programme of rehabilitation and enhancement in line with its philosophy of 'Producing and Protecting'. This was a voluntary initiative by the mine and has lasting benefits:

1. Recognised stands of native trees have been extended to establish local corridors with similar stands and enhance wildlife habitat.

2. Riparian habitat enhancement programmes were instituted to protect stream banks from erosion and increase habitat quality both in-stream and on riparian boundaries. This has involved co-operating with local farmers to exclude stock from riparian areas.
3. Over 100,000 native trees and shrubs have been planted on and around the mine site.

4. Swampy areas located away from the riverbed were fenced and planted with native species to encourage wetlands establishment and enhancement.

Plant material was generated from seed eco-sourced from the local area and from seedlings raised at a local nursery to preserve the local vegetation's distinct genealogy.


Consultation

The Joint Venture has benefited from regular ongoing consultation with a Peer Review Panel and a local Community Consultative Group. Initially developed during the operational phase of the mine, both groups have continued through into the closure phase. The Peer Review panel members were firstly approved by Environment Waikato and then jointly appointed by Environment Waikato and Coeur Gold.



above: Local residents and members of the Community Consultative Group meet on site to observe rehabilitation progress in 1998.


Specific conditions of the Water Rights required the establishment of a Peer Review Panel to assist Regional Council staff assess the technical compliance of the operations. The panel members were appointed and funded by the company, but were independent of it, and reported to council staff. The Peer Review Panel provides assurance to the regulating authorities that the ongoing onsite works conformed to good industry practice. The perspective provided is that of an objective industry professional. The system worked extremely well in practice with panel members providing balanced insight for council staff on industry good practice in specialised fields of engineering, hydrology, geochemistry, revegetation, and later landslide mitigation and mine closure. The panel removed the problems that industry sometimes experiences when trying to present complex technical material to council staff, while at the same time providing council staff with a degree of comfort that their decisions were based on expert recommendation.

The Community Consultative Group has met on a regular basis for four years. The group is comprised of Regional Council staff members, District Councillors, environmental groups, iwi, and local residents. Regular site visits have been well attended by members of the CCG and the local community.


Land Movement Remediation
In mid 1995 routine monitoring for a future raise of the tailings impoundment identified a re-activation of historic land movement beneath the impoundment. This deeply seated movement was ultimately determined to be occurring over an area of one square kilometre, where a slab of ground up to 100 metres thick was moving slowly down-slope on an old slip surface.


above: A slab of ground up to 100 metres thick on which the tailings dam was built was moving slowly downslope on an old slip surface,

The company notified regulatory agencies and held public meetings to discuss the situation and address public questions and concerns. A formal Community Consultative Group was established to keep local people informed of site developments.

The media struggled to come to terms with the situation. Used to dealing with disaster scenarios, they had neither the technical knowledge nor the vocabulary to adequately explain the situation. The company produced an eighteen minute video explaining in layperson's language the situation and likely remedial action. This was widely circulated. At the same time a world class investigation and remedial measures programme was implemented at a cost of $27 million.

above left: GPS monitoring of land movement. above right: Monitoring of water quality at horizontal bores.

Throughout 1996 the Golden Cross mine site became perhaps the most measured and studied piece of ground in the world as mine staff and experts from New Zealand and overseas worked to first identify the problem and then work out how to deal with it.

The solution took several forms. To reduce groundwater pressure and lubrication of the slip surface where movement was occurring, a series of horizontal drainage holes was drilled at numerous sites. A drainage tunnel between four and five metres in diameter was driven through the rock some 15 metres below the slip surface. Holes bored upwards into the slip surface drained more water. Water volumes in the tailings impoundment were reduced. A saddle filter buttress was constructed of rock quarried nearby to add strength to the tailings impoundment structure.

Throughout all of these operations groundwater and surface water were constantly monitored. Water of a suitable quality was released off site. If necessary, water was diverted to holding or settling ponds for further treatment.

By late 1996 movement rates had been reduced significantly. By late 1997 the problem had been generally controlled, and by 2000 the annual rate of movement detected was less than the annual uprising of the Southern Alps.

Throughout all of this time the structural integrity of the tailings impoundment was maintained.


Closure
All mines eventually close. It is how they close that is vitally important. In the past the traditional definition of mine closure was to surrender the mining licence and walk away.
This definition no longer applies. Changes in the industry have evolved in line with changes in public expectations of stewardship for the future. Modern mines are planned with closure in mind.



above left: Fertiliser application is an integral part of the rehabilitation process. above right: Cattle graze on rehabilitated pasture in 1999. In the background the removal of the process plant is almost complete.


Today, mine closure is an integral part of the mining cycle, and is investigated and planned for before a mine begins to operate. Mine sites are rehabilitated and stabilised so they are suitable for a sustainable land use that is compatible with the surroundings. Former mine sites in New Zealand are now being used for farming, forestry, recreation and conservation.

Effective closure involves a range of issues. Closure must meet all regulatory requirements as laid down in the conditions on the Mining Licence and Resource Consents. In addition, human resource management and community involvement and consultation add a social facet to the procedure.

Rehabilitation activities at a modern gold mine include: decommissioning the mine, providing surface drainage and erosion protection across the entire site, establishing self sustaining vegetative cover, meeting water quality standards, and minimising post-closure maintenance requirements.

The Peer Review Panel has described the Golden Cross operation as a world class mine closure.
Closure at Golden Cross focussed on the issues of handling site stormwater, compacting and sealing potentially acid generating waste rock, and creating long term stable structures. These objectives had been planned for both during initial planning and mine operation.

Buildings and equipment have been dismantled and removed. The mine's operational footprint has been recontoured to more closely resemble the surrounding landform.

Some administrative buildings remain. These will be used for recreational or educational or business use of the site. A range of partnership options is currently being investigated.

Major drainage channels have been constructed to handle runoff from a 1000-year rainfall event (715mm in two days).

The water treatment plant will continue to operate until all water on site meets discharge criteria and can be released into the Waitekauri River without any mechanical treatment. From this time the wetland areas will act as passive water treatment systems.



above left: The open pit has been capped, recontoured, and drainage channels added. above right: The rehabilitation process almost complete, 2001. The recontoured open pit can be seen in the foreground with the rehabilitated tailings dam in the background. The bush at bottom left is part of the Coromandel State Forest Park.

Potentially acid forming waste rock has been sealed and capped. The open pit has been contoured with low permeability mine overburden and revegetated. Drainage channels have been formed. The tailings impoundment has been partially capped and the perimeter revegetated. Drainage channels maintain the level of the freshwater pond.

Areas surrounding the minesite that had previously been cleared for farmland have been revegetated with native species. Bush areas adjacent to the Coromandel Forest Park have been fenced to exclude stock and provide a buffer zone.

A comprehensive monitoring programme keeps track of landform stability, vegetation rehabilitation, surface water quality, groundwater quality, and flora and fauna.
Final rehabilitation will have been completed when all consent conditions have been satisfied and the area has been returned to a self sustaining, stable landform.

Bonding provisions ensure that no ratepayer funds are required to successfully rehabilitate the site or cope with any future maintenance.



above: The tailings dam, summer 2001. Walking tracks, footbridges, and picnic facilities have been provided. Information panels along the tracks display the history of Golden Cross.



Conclusion


After another productive life the Golden Cross mine has closed for a second time. Within a short period of time little evidence will remain of the mine's successful second life. This very lack of evidence is part of the successful closure operation nearing completion as Coeur Gold redevelops a self-sustaining environment at the head of the Waitekauri Valley.

There will be other evidence, however: the sort modern gold mines like to leave behind.

Evidence of a productive partnership between the mine and the community.

Evidence of the stewardship role a modern gold mining company actively accepts.

And evidence of the commitment of the Coeur d'Alene Mines Corporation to Producing and Protecting.

It's what gold mining in New Zealand is all about.

And it's evidence that you really can get Green from Gold.