Modern Mining August 2018

MINING News

Kinross puts Phase Two expansion at Tasiast on hold

of alternative approaches, and a Phase Two re-start decision, are subject to our ongo- ing engagement with the Government. We remain committed to disciplined capital allocation as we seek additional clarity on the matter.” As previously disclosed, in early May 2018 the company received a letter from the Government of Mauritania stating a desire to enter into discussions with respect to the company’s activities in the country, which Kinross understood as seeking greater benefits for the country. The Tasiast mine is an open-pit opera- tion located in north-western Mauritania, approximately 300 km north of the capi- tal Nouakchott. Tasiast processes ore via mill and dump leach. Work continues on enhancing the performance of the existing mill and optimising the operation. Throughput at the expanded Phase One plant has continued to ramp up and has peaked at 12 000 tonnes per day (t/d). Phase One is expected to significantly reduce operating costs and increase production. The Phase Two expansion that has been put on hold is a very substantial project. Kinross announced in September last year that it intended implementing the project. It stated at the time that “Phase Two is expected to increase mill capac- ity to 30 000 t/d to produce an average of approximately 812 000 gold ounces (Au oz) per year for the first five years, at an average production cost of sales of US$440 per Au oz and all-in sustaining cost of US$655 per Au oz. “The project is expected to generate strong free cash flow of US$2,2 billion over the life of mine. Initial construction for Phase Two is expected to begin in early 2018, with expected initial plant and infra- structure capital costs of approximately US$590 million. Commercial production is expected to begin in Q3 2020.” The expansion would replace the two current ball mills with a new larger ball mill, and add new leaching, thickening and refinery capacity. It will also see additions to the mining fleet. The Wood Group (which last year com- pleted the acquisition of Amec Foster Wheeler) announced in May this year that it had been awarded the EPCM contract for the Phase Two expansion. 

The Phase One expansion project at Tasiast – seen here during construction – is now complete (photo: Kinross).

Canada’s Kinross Gold Corporation has completed the Phase One expansion at its Tasiast gold mine in Mauritania but has “paused” the implementation of Phase Two. Tasiast, which produced 243 240 gold equivalent ounces in 2017, is one of two operations Kinross has in West Africa (the other being the Chirano gold mine in Ghana). Commenting on the company’s results for the second quarter ended June 30, 2018, Paul Rollinson, President and CEO,

said: “At Tasiast, construction was com- pleted at the Phase One expansion, with first ore now through the SAG mill. The project has been transferred to Operations and is in the final stages of commissioning. “We have decided to pause activities at Phase Two and, to maintain optional- ity, are analysing alternative throughput approaches to expand Tasiast as we con- tinue to engage with the Government of Mauritania regarding our activities in the country. The completion of our evaluation The tailings will be processed through a newly built 1 Mt/a acid leach plant, adjacent to the existing flotation plant, designed to produce a mixed hydroxide precipitate (MHP) product. Based on the preliminary details deliv- ered by Minnovo prior to the completion of the Engineering Study, the board of Soludo Lambert made a decision to pur- sue construction of the leaching plant and appointed Minnovo in May 2018 to under- take the detailed design. “I am very pleased that we pursued the leaching alternative to process the Kipushi tailings, as the recoveries for the leach- ing are far superior than achieved with the existing flotation plant,” comments Cape Lambert’s Chairman, Tony Sage.“Preliminary details from the Engineering Study provided the basis for the decision to build the plant, which will be done in earnest to capitalise on the current high price for cobalt.” 

Cape Lambert completes Kipushi tailings study Australian resources and investment com- pany, Cape Lambert Resources, listed on the ASX, has announced that an Engineering Study for a leaching plant at the Kipushi cobalt-copper tailings project in the DRC was recently completed by consultants Minnovo Pty Ltd.

The study was undertaken following the excellent results achieved from a leach testwork programme at the project, with recoveries of 90 % for copper and 85 % for cobalt being achieved from laboratory scale testwork undertaken to date. The project is held by Soludo Lambert Mining SAS, which is a 50/50 joint venture arrangement with local entity Paragon Mining SARL and Cape Lambert. The project involves the reprocess- ing of copper-cobalt tailings contained in the Kipushi Tailings Storage Facility (TSF) located near the town of Kipushi, approxi- mately 25 km from Lubumbashi.

4  MODERN MINING  August 2018