Modern Mining May 2015

MINING News

Strong performance by Zambian emerald producer

Gemfields also owns 75%of Montepuez Ruby Mining Limitada in Mozambique. During the quarter approximately 1,4 mil- lion carats of ruby and corundum were extracted (versus 1,1 million carats in the quarter ending 31 March 2014) at the Montepuez ruby mine. “This quarter has once again delivered pleasing results for Gemfields,” comments Ian Harebottle, CEO of Gemfields. “We have achieved considerable increases in production volumes at both the Kagem and Montepuez mining operations, under- pinned by constant growth in market demand for these products as is evidenced by the ongoing successes achieved at our auctions, all of which validates our deci- sion to expand the scale of the operations across our key sites.” 

The fourth phase of the high wall push- back programme in the main Chama pit continues to be advanced by both Kagem’s in-house team and a third party contrac- tor. A total of approximately 4,0 Mt of waste was moved during the quarter, with a slightly accelerated rate of contractor waste mining now likely to result in com- pletion of the push-back project ahead of schedule. Kagem’s trial underground mining project was placed on hold towards the end of 2014. In the interim, and given the continued viability of open-pit operations, supported by the robust emerald prices and well contained unit costs, Kagem says it enjoys a high level of flexibility to con- tinue to extend the open-pit operations through further pushbacks.

In an operational update for the three- month period ending 31 March 2015, London-based Gemfields reports that its 75 %-owned subsidiary, Kagem Mining Limited in Zambia (covered in our April issue), produced 9,9 million carats of emerald and beryl (versus 3,6 million carats in the quarter ending 31 March 2014) at the Kagem emerald mine south of Kitwe. The average grade was 355 carats per tonne (versus 198 carats per tonne in the quarter ending 31 March 2014), a 79 % increase. Total operating costs of US$9,8 million were recorded (versus US$6,6 mil- lion in the quarter ending 31 March 2014), largely on account of the increased scale of mining activity being carried out across the mining licence.

Mining operations in the main Chama pit at the Kagem emerald mine (photo: Arthur Tassell).

WorleyParsons embarks on Golpu feasibility study Following approval of the prefeasibility study (PFS) prepared for the greenfield Golpu gold/copper project in Papua New Guinea, WorleyParsons has now embarked on the feasibility study stage. Adopting an innovative approach, the PFS split the proj- ect into two stages, the first targeting the upper higher value portion of the orebody, which is expected to have a 27-year life, fol- lowed by a second stage encompassing the remaining ore reserve.

processing capability that resides in our South African hub to add value to custom- ers globally.” WorleyParsons’ in-depth local mining, processing and infrastructure expertise, coupled with the sharing of knowledge and skills across the entire mineral and resources value chain through the greater WorleyParsons organisation, will ensure the best possible outcome for the project. The client on the project is WGJV, a 50-50 joint venture between Newcrest Mining Limited and Harmony established to facilitate mining, project and exploration activities for the two parent companies. WorleyParsons RSA recently consolidated its local project delivery capabilities under one roof, effectively establishing the com- pany as one of the largest multi-disciplinary engineering contractors in South Africa. 

WorleyParsons’ Johannesburg Mining Centre of Excellence began work on the PFS in January 2014 and by the end of that year had confirmed a compelling business case for the life of the mine using the two- stage approach. WorleyParsons’ scope for 2015 now comprises a Feasibility Study for Stage 1, a PFS for Stage 2 and Early Works Engineering for Stage 1. “We’re delighted that the business case has been given the green light,” says WorleyParsons’ Rob McGill, Divisional Manager, Mining Studies. “This is the biggest international project study under- taken by WorleyParsons’ Mining Centre of Excellence here in Johannesburg, and it has effectively demonstrated our ability to leverage the underground mining and

The Golpu project feasibility is working up technical, procurement and operational plans to create a long-life, world class mine in Papua NewGuinea’s Morobe Province.The project comprises an underground mine and process plant with significant associated infrastructure to exploit this prime deposit.

12  MODERN MINING  May 2015