MAY 2012 • VOL 213 • NUMBER 5

FEATURES
Eldorado Builds on Turkish Success
Turkey’s top gold producer is intent upon doubling annual ore production
to an estimated 475,000 oz by 2014..............................................................28
Shovel Performance: AC vs. DC
A case study demonstrates the benefits of AC technology ............................34
Minimizing Arc-Flash Danger in Mining Operations
Capable of producing tremendous heat, explosive impact and molten
shrapnel, arc-flash incidents are the leading cause of nonfatal electrical
injuries. They may not be totally preventable, but there are ways to
protect workers and equipment against their damaging forces.....................40
Prospectors and Developers Converge on Toronto
Investment opportunities and exploration service providers attract a
global following ............................................................................................46
Beating Crusher Wear Challenges
Developments in the metallurgy of crusher wear parts are helping
operators reduce the impact of wear on their operations ..............................54
Armstrong Retrofits AC Technology for Dragline Mining
A Western Kentucky coal operator is the first to embrace a step change In addition to an extensive report on Ontario mining
in electrical motors and drives, and quickly demonstrates the benefits ........58 and Toronto financiers, E&MJ reports on Eldorado
Gold’s Kişladağ mine in west-central Turkey. On the
Special Report: Mining in Ontario and Toronto cover, Atlas Copco Pit Viper PV-235 and DM45
World’s mining capital....................................................................................67 blasthole rigs are shown drilling a new bench at
Kişladağ. (Photo: Simon Walker)
LEADING DEVELOPMENTS
New Management at Ivanhoe Mines ................................................................4
AuRico Sells Three Mines, Readies One for Startup ..........................................4
Galaxy Bids for Lithium One..............................................................................5
DEPARTMENTS
Calendar ......................................................26
Rio Tinto Reviewing Options for its Diamond Business ....................................6
Classified Advertisements ........................158
AROUND THE WORLD Equipment Gallery......................................154
U.S. & Canada: Mitsubishi Buys into Stillwater’s Marathon Project..................8 From the Editor ..............................................2
Latin America: Centaurus Targets 2013 Startup for Jambreiro Iron Ore Project ....14 Markets ......................................................160
Operating Strategies ..................................148
Australia/Oceania: OZ Starts Underground Production at Prominent Hill ......16
People ..........................................................12
Africa: Mali Mines Report ‘Business as Usual’ Following Coup ....................18 Processing Solutions ..................................152
Asia: Ice Movement Limiting Kumtor Production ............................................20 Suppliers Report ........................................150
Exploration Roundup: Brigus Reports Positive Drill Results from Black Fox ....22 This Month in Coal........................................24

Surface Mining....28 PDAC 2012 Roundup....46 Dragline Mining....58

www.e-mj.com MAY 2012 • E&MJ 1

 FROM THE EDITOR
The Sun Shines in Santiago
Once again Santiago, Chile, hosted the Expomin trade
show during April. Certainly the largest event of its kind in
Latin America, it has steadily grown and improved along
with the mining business in Latin America. To visit a cul-
ture that embraces mining and treats miners like heroes is
refreshing. Chileans are remarkable people and this year
the air in Santiago was clear, the sun was shining and atti-
tudes were similarly upbeat.
Steve Fiscor/Editor-in-Chief What a difference two years can make. In January 2010,
Chileans elected President Sebastián Piñera to office and
shortly afterward (March 2010) an earthquake struck the region. A tsunami took the
lives of many in the fishing villages near Concepcion. In Santiago, the infrastructure
suffered extensive damage. The overpasses on the highways had collapsed and get-
ting to and from anywhere required a few short-cuts and a little patience. This year,
my short-cut was paved and the street vendors had been replaced by a Starbucks.
Santiago is home to the world’s largest copper producer, Corporacion Nacional
del Cobre (Codelco), the Chilean national copper company. Last year, Codelco pro-
duced 1.8 million metric tons (mt) of copper and the company has set its sights on
growing the business to more than 2 million mt by 2015 and 2.3 million mt by
2021. Attaining this goal will not be easy, considering the headwinds that Chile now
faces, including declining ore grades, the need for water and insufficient power.
The other wild card for the Chilean economy is China, Codelco’s largest cus-
tomer. Diego Hernandez, CEO, Codelco, outlined the situation well in his presenta-
tion, “Challenges and Opportunities for China in the Mining Market of Latin
America.” He explained how world refined copper consumption had grown from 15
million mt in 2000 to nearly 20 million mt in 2011. During the same time period,
China’s share of world consumption grew from 2 million mt (13%) in 2000 to 7.5
million (39%) today. As part of a larger effort to integrate vertically, China has been
investing extensively in mining operations abroad. Of the $22 billion China will
invest in copper, 40% is destined for Latin America.
Shortly after Expomin ended, students began to protest in Santiago. They were
demanding free university education and calling for Chile to use proceeds from the
copper industry to fund it. Even though Chile has benefited enormously from a free
market economy, leftist ideals still pervade with people seeking to redistribute the
wealth. Today, Chile has 1.2 million students and 20 years ago only 200,000 could
afford to attend college. Unfortunately, many of the students choose a path that
does not allow them to repay their student loans and now they are looking to the
government to bail them out.
Bowing to the protesters, Piñera recently unveiled a reform proposal that includes
raising taxes on companies and lowering taxes for individuals. Chile enacted a tem-
porary corporate tax increase to 18.5% from 17% in the aftermath of the 2010 earth-
quake. Now Piñera is considering increasing it to 20% and making it permanent. If
approved, it would raise up to $1 billion a year in extra funding for education.
For a long time now, Chile has been considered Latin America’s economic suc-
cess story, thanks in part to the fiscal discipline. The tax reform will likely have lit-
tle impact on foreign investments, especially considering more outrageous policies
among the countries to the north. Welcome to the developed world. Similar to the
U.S. and Australia, successful Chilean mining companies will now be penalized by
populists trying to cover the tab of those who made poor decisions.
Steve Fiscor, E&MJ Editor-in-Chief,
sfiscor@mining-media.com
2 E&MJ • MAY 2012
ENGINEERING AND
MINING JOURNAL
www.mining-media.com
Mining Media International
Editorial Office
11555 Central Parkway, Suite 401
Jacksonville, Florida 32224 U.S.A.
Phone: +1.904.721.2925
Fax: +1.904.721.2930
Editor-In-Chief—Steve Fiscor, sfiscor@mining-media.com
Managing Editor—Russ Carter, russ.carter.emj@gmail.com
European Editor—Simon Walker, simon.emj@btinternet.com
Latin American Editor—Oscar Martinez, omartinez@mining-media.com
South African Editor—Antonio Ruffini, aruffini@webafrica.org.za
Australian Editor—John Miller, john.miller@gotalk.net.au
Associate Editor—Gina M. Tverdak-Slattery, gtverdak@mining-media.com
Graphic Designer—Tad Seabrook, tseabrook@mining-media.com
Mining Media International
Corporate Office
8751 East Hampden, Suite B1
Denver, Colorado 80231 U.S.A.
Phone: +1.303.283.0640
Fax: +1.303.283.0641
President/Publisher—Peter Johnson, pjohnson@mining-media.com
VP-Sales and Marketing—John Bold, jbold@mining-media.com
U.S. & Canada, Sales—Victor Matteucci, vmatteucci@mining-media.com
Scandinavia, UK and European Sales Manager—Colm Barry, colm.barry@telia.com
German Sales Manager—Gerd Strasmann, info@strasmann-media.de
Rest of World, Sales—Peter Johnson, pjohnson@mining-media.com
Classified Advertising—Norm Rose, nrose@mining-media.com
Classified Advertising—Tanna Holzer, tholzer@mining-media.com
Ad Traffic Manager—Erica Freeman, efreeman@mining-media.com
Engineering & Mining Journal, Volume 213, Issue 5, (ISSN 0095-8948) is published month-
ly except January and July by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado
80113 (mining-media.com). Periodicals Postage paid at Englewood, CO, and additional
mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return
address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining-media.com.
Current and back issues and additional resources, including subscription request forms and
an editorial calendar, are available on the World Wide Web at www.e-mj.com.
SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers.
Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year,
$82.00, 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00, 2 year, $249.00 sur-
face mail (1 year, $191.00, 2 year, $352.00 airmail delivery). For subscriber services or to
order single copies, write to E&MJ, 8751 East Hampden, Suite B1, Denver, CO 80231 USA;
call +1.303.283.0640 (USA) or visit www.mining-media.com.
ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select-
ed archived articles from leading electronic databases and online search services, including
Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521-
0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com.
POSTMASTER: Send address changes to E&MJ, P.O. Box 1337, Skokie, IL 60076 USA.
REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA
phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com
PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal,
or instructional use may be obtained from the Copyright Clearance Center (CCC) at
+1.978.750.8400. Obtain further information at copyright.com.
EXECUTIVE OFFICE: Mining Media, Inc., 8751 East Hampden, Suite B1, Denver, CO 80231 USA
phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com
COPYRIGHT 2012: Engineering & Mining Journal, incorporating
World Mining Equipment, World Mining and Mining Equipment
International. ALL RIGHTS RESERVED.
NEWS-LEADING DEVELOPMENTS
New Management at Ivanhoe Mines
Workers install ball mill liners at the Oyu Tolgoi concentrator in April. (Photo courtesy of Ivanhoe Mines)
Rio Tinto and Ivanhoe Mines announced on
April 18, 2012, that Rio Tinto would name
a new top-management team for Ivanhoe
and that a number of directors of the
Ivanhoe board would be replaced by Rio
Tinto-nominated directors. The changes
reflect Rio Tinto’s 51% ownership position
in Ivanhoe, which it obtained in late
January 2012. The two companies also
signed an agreement under which Rio Tinto
will support and provide certain elements
of a comprehensive funding package for
Ivanhoe that will underpin the develop-
ment of the company’s Oyu Tolgoi copper-
gold project in Mongolia.
Ivanhoe-founder Robert Friedland
resigned as company CEO and as a mem-
ber of its board of directors, and six other
directors and four other senior manage-
ment members also resigned. Kay
Priestly, a director of Ivanhoe and CFO of
Rio Tinto Copper, was appointed interim
CEO, and Catherine Barone, vice presi-
dent–finance of Ivanhoe, was appointed
interim CFO. A new 13-member board
was slated to be formed, the majority of
whom will be independent directors. Rio
Tinto will nominate 11 directors, six of
whom will be independent. Friedland will
nominate two directors, one of whom will
be independent.
The funding package, together with the
proceeds from any potential future asset
sales by Ivanhoe, is intended to cover total
funding required to complete development
4 E&MJ • MAY 2012
of the Oyu Tolgoi project. Rio Tinto will pro-
vide a standby commitment for the full
amount of a $1.8-billion rights offering by
Ivanhoe and also will provide $1.5 billion
of bridge financing to Ivanhoe, in addition
to the $1.8 billion interim funding facility
that was agreed in December 2010. Once
project financing is in place, both the $1.5
billion of bridge financing and the $1.8
billion interim funding facility will be
repaid to Rio Tinto in full.
The funding commitments are intended
to support the scheduled start of phase-
one production from the Oyu Tolgoi open-
pit mine during the second half 2012.
Ramp-up to commercial production is
scheduled for the first half of 2013.
Phase-one work includes operation of the
open-pit mine and a 100,000-mt/d con-
centrator, infrastructure, and a $900-mil-
lion investment in underground develop-
ment in preparation for phase two.
Continuing development of Oyu Tolgoi’s
second phase will include expansion of
concentrator capacity to 160,000 mt/d
and start of production of high-grade ore
from the Hugo Dummett underground
block-cave mine in 2016. Underground
production is planned to increase to
54,000 mt/d by 2019, followed by subse-
quent increases to full production of
85,000 mt/d.
The Oyu Tolgoi project development
agreement with the government of
Mongolia requires the project to source all
of its power requirements from within
Mongolia within four years of the start of
commercial production. The project will
use power imported from China during its
initial years of operation.
AuRico Sells Three Mines,
Readies One for Startup
AuRico Gold announced on March 27,
2012, an agreement to sell its Stawell and
Fosterville gold mines in Victoria,
Australia, to Crocodile Gold for total con-
sideration of up to C$105 million in cash
and Crocodile shares and followed up with
an announcement April 15, 2012, of an
agreement to sell its El Cubo silver-gold
mine and Guadalupe y Calvo silver-gold
development project in Mexico to
Endeavour Silver for up to $250 million in
cash and Endeavour shares.
In a third announcement, dated April
5, 2012, AuRico reported that commis-
sioning of its Young-Davidson gold project
in Ontario, Canada, was nearing comple-
tion and that the project’s first gold pour
was expected to occur before the end of
the month.
Crocodile Gold is a Canadian company
with operating gold mines and a land pack-
age of more than 3,300 km2 in the Northern
Territory of Australia. The company is cur-
rently mining a number of open pits and is
developing the Cosmo underground mine.
The Fosterville mine is located 20 km
east of Bendigo, Victoria, and is the largest
producing gold mine in the state. The
Stawell mine is located in the town of
Stawell, northwest of Ballarat in central
Victoria, and is the second largest gold pro-
ducer in the state. The acquisition of the
two mines creates the potential for
Crocodile Gold to become a 300,000-oz/y
gold producer in 2013.
Crocodile Gold also expects the combi-
nation of the Cosmo, Fosterville and
Stawell operations to create a support
foundation for projects such as Union
Reefs Underground and Maud Creek that it
is developing. “Very important to the trans-
action is the wealth of knowledge and tech-
nical expertise that the Fosterville and
Stawell teams bring to Crocodile Gold.
Combined with the existing management
group, the additional experience of operat-
ing similar-scale underground operations
as our own should considerably de-risk our
growth and help shape the future of our
www.e-mj.com
 NEWS-LEADING DEVELOPMENTS

new company,” Crocodile Chairman, Presi- Galaxy Bids for Lithium One providing a completion guarantee for the
dent and CEO Chantal Lavoie said. Galaxy Resources announced on March debt component of the capital development
Endeavour Silver has two producing sil- 30, 2012, a planned, friendly acquisition costs (E&MJ, November 2011, p. 14).
ver-gold mines in Mexico, the Guanacevi of Canada-based Lithium One for about Lithium One also owns the James Bay
mine in Durango state and the Guanajuato C$112 million in Galaxy shares. bulk-tonnage spodumene project in
mine in Guanajuato state. El Cubo is a pro- Galaxy is headquartered in West Perth, Quebec. Galaxy is earning a maximum
ducing silver-gold mine located in the Western Australia, and wholly owns the Mt. 70% project equity in the James Bay pro-
southeast part of the Guanajuato district, Cattlin project near Ravensthorpe, Western ject through an earn-in agreement that
only 10 km from Endeavour’s Guanajuato Australia, where it mines lithium pegmatite includes delivery of a feasibility study by
mine. El Cubo produced 209,440 oz of sil- ore and processes it on site to produce a early 2013.
ver and 4,543 oz of gold during the first spodumene concentrate and tantalum Commenting on the transaction, Galaxy
quarter of 2012. byproduct. The concentrate is shipped to Managing Director Iggy Tan said, “A merg-
Guadalupe y Calvo is an advanced sil- Galaxy’s lithium carbonate plant in China’s er with Lithium One represents an excel-
ver-gold exploration project located in the Jiangsu province. lent opportunity for Galaxy to boost its
historic Guadalupe y Calvo mining district Lithium One’s principal asset is the Sal global lithium resource base and become a
in Chihuahua state, approximately 300 km de Vida lithium and potash brine project in major lithium company. Galaxy has spent
southwest of the city of Chihuahua. A pre- Argentina. End-user partners KORES, LG the last 18 months searching the world for
liminary economic assessment dated International, and GS Caltex are earning a a high-quality, undeveloped lithium brine
March 5, 2012, evaluated the potential for maximum of 30% project equity by funding deposit, and we believe Lithium One’s Sal
a combined open-pit and underground a minimum of $15 million in feasibility de Vida lithium-potash project in Argentina
mine producing on average 968,100 oz/y work, providing an off-take agreement for fits that criterion. The Sal de Vida brine
of silver and 17,600 oz/y of gold for the up to 50% of the lithium production, and chemistry is highly favorable, with high lev-
first eight years of production. Endeavour
plans to further explore Guadalupe y Calvo
with additional drilling before re-assessing
its mining potential.
Bradford Cooke, chairman and CEO of
Endeavour, said, “El Cubo’s proximity and
similarity to, and potential synergies with,
our Guanajuato mine, make El Cubo a
logical and strategic acquisition for
Endeavour that will have an immediate
and sizable impact on our production,
reserves, and resources, with minimal or
no dilution to our shareholders. We hope
to replicate at El Cubo the same types of
exploration and operational successes that
we have engineered at our Guanacevi and
Guanajuato mines.”
Following the divestiture of these assets
and start of production at its Young-
Davidson mine in Ontario, AuRico will
have three operating properties: Young-
Davidson; the Ocampo mine in Chihuahua,
Mexico; and El Chanate mine in Sonora,
Mexico. The Young-Davidson mine is
expected to reach commercial production
by the third quarter of 2012 and to ramp-
up to more than 200,000 oz/y of produc-
tion by 2015.
“The divestitures are consistent with
AuRico Gold’s strategy of focusing on its
large, low-cost, core assets in North
America,” an AuRico company statement
said. “AuRico Gold is now directing all of
its attention to delivering value for share-
holders from its three core operating
mines, including Young-Davidson where
first production is imminent, and its devel- Recovered drill core from Lithium One’s Sal de Vida lithium and potash project in Argentina. Lithium One also owns
opment pipeline in Mexico and Canada.” the James Bay bulk-tonnage spodumene project in Quebec. (Photo courtesy of Lithium One)

www.e-mj.com MAY 2012 • E&MJ 5

NEWS-LEADING DEVELOPMENTS

els of lithium and potash and low levels of
magnesium and sulphate impurities.
“Galaxy will require more lithium
resources over the next few years, and the
Sal de Vida project, along with the James
Bay project, will significantly add to our
existing Australian resource base at Mt.
Cattlin and give us sufficient resources to
continue to grow the lithium business and
drive the long-term value of the company.
“With Galaxy’s expertise across project
development and lithium mining, process-
ing, and marketing, we will aim to fast track
development of Sal de Vida as we did at Mt.
Cattlin and the Jiangsu lithium carbonate
plant. Galaxy plans to retain Lithium One’s
current management team and incorporate it
into Galaxy’s successful business,” said Tan.
employees and the governments in the
states and countries where we operate that
it is very much business as usual.”
Other recent news from Rio Tinto
Diamonds included an announcement in
late March of discovery of Australia’s
largest pink rough diamond at the Argyle
mine. The 12.76-carat diamond will be
known as the Argyle Pink Jubilee. When it
has been cut and polished, it will be grad-
ed by a team of international experts and
showcased to the world before being sold
as part of Rio Tinto’s “Argyle Pink
Diamonds Tender” later this year.
And, in early April, Rio Tinto reported
that the first rough diamonds from the
Bunder project in India were ready for
finishing. The occasion was marked by
a private event in Bhopal to hand over
the first rough gems to selected Indian
diamantaires for cutting and polishing.
The diamonds will be carefully trans-
formed by master craftsmen at factories
in India, with detailed tracking of each
step of the manufacturing process. The
aim is to understand the nature of the
product and its potential for future com-
mercial production.
The Bunder gems will be displayed at
the Indian International Jewelry Show in
Mumbai in August. They will not be avail-
able for sale.

Rio Tinto Reviewing Options

for its Diamond Business
Rio Tinto reported in late March 2012 that
it had begun a strategic review of its dia-
mond business that will include exploring a
range of options for potential divestment of
its diamond interests. Rio Tinto is one of the
world’s major diamond producers through
its 100% ownership of the Argyle mine in
Australia, 60% interest in the Diavik mine
in Canada, and 78% interest in the Murowa
mine in Zimbabwe. These three mines com-
bine to produce a full range of diamonds for
all market segments. Rio Tinto also has a
100% interest in the Bunder advanced dia-
mond project in Madhya Pradesh, India.
Rio Tinto’s share of the production from
the three operating mines is sold through
its sales and marketing headquarters in
Antwerp, with representative offices in
Mumbai, Hong Kong and New York. It also
operates a niche cutting and polishing fac-
tory in Perth for the rare pink diamonds
from its Argyle mine, which produces more
than 90% of the world’s pink diamonds.
Harry Kenyon-Slaney, chief executive of
Rio Tinto Diamonds and Minerals, said,
“We regularly review our businesses to
ensure they remain aligned with Rio Tinto’s
strategy of operating large, long-life,
expandable assets. The diamonds market
outlook is very positive, with demand grow-
ing strongly and lack of new discoveries
limiting supply. We have a valuable, high-
quality diamonds business, but given its
scale we are reviewing whether we can cre-
ate more value through a different owner-
ship structure. This process may take some
time. We’re committed to keeping stake- Rio Tinto, which recently announced it was considering a range of options for potential divestment of its global
holders informed about any key develop- diamond business, mines conventional white diamonds from a number of operations such as Diavik in Canada;
ments and in the meantime are reassuring and rare pink diamonds at its Argyle operation in Australia, shown here. (Photo courtesy of Rio Tinto)

6 E&MJ • MAY 2012 www.e-mj.com

REGIONAL NEWS - U.S. & CANADA
Mitsubishi Buys into Stillwater’s
Marathon Project
Stillwater Mining announced in late March
2012 an agreement with Mitsubishi Corp.
whereby Mitsubishi will acquire a 25%
interest in Stillwater’s Marathon platinum
group metals (PGM) and copper project
in northwest Ontario for approximately
$81.25 million. Mitsubishi also will meet
the venture’s first cash call of $13.6 mil-
lion, for a combined total cash payment of
$94.6 million.
Mitsubishi will be responsible for fund-
ing its 25% share of operating, capital and
exploration expenditures on the Marathon
properties and has agreed to cooperate and
support efforts to secure project financing.
Under a related supply agreement, Mitsu-
bishi also will have an option to purchase up
to 100% of Marathon’s PGM production.
The Marathon deposit is located about
10 km north of the town of Marathon,
Ontario, near the north shore of Lake
Superior. Stillwater acquired the property
in November 2010. The town of Marathon
is situated on the Trans-Canada Highway
about 300 km east of the city of Thunder
Bay. The project is currently in the environ-
mental assessment and permitting stage.
Once approved, the Marathon project
would include development of an open-pit
mine and milling operation, with one pri-
mary pit and several smaller satellite pits.
Site view of Stillwater Mining’s Marathon PGM project in Ontario, and an early-stage conceptual view of the mine
layout. (Photos courtesy of Stillwater Mining)
8 E&MJ • MAY 2012
Concentrates produced at Marathon would
be transported off-site to a third-party
smelter and refinery for final processing.
Initial projections suggest the mine would
produce about 200,000 oz/y of PGMs
(mostly palladium) and 37 million lb/y of
copper over a mine life of about 11.5 years.
Pre-production capital cost of the
Marathon project is currently estimated at
between $550 million and $650 million,
with first production of PGMs and copper
in about 2016, subject to orderly receipt of
approvals. Outside of amounts provided
through project financing, Stillwater and
Mitsubishi will be responsible for separate-
ly funding their respective interests in the
project. To date, Stillwater has invested
about $159 million in the properties.
Commenting on the transaction, Still-
water Chairman and CEO Frank McAllister
said, “For a number of years we at Stillwater
have recognized the critical need to grow and
diversify the company’s production, which at
present is limited to our PGM operations
along the J-M Reef in Montana. Conse-
quently, we were very pleased to acquire
Marathon in 2010. We recognized early on
that the development of Marathon likely
would require raising new capital and/or
bringing in a partner. In this regard, we are
delighted to have the support of Mitsubishi.”
HudBay Advancing Reed
Mine Project in Manitoba
VMS Ventures reported in early April 2012
that HudBay Minerals and Stantec
Consulting have completed a positive NI
43-101 compliant prefeasibility study for
the underground Reed joint-venture copper
mine in Manitoba. The project is owned
70% by HudBay and 30% by VMS and is
based on a high-grade copper deposit
located 120 km east of Flin Flon,
Manitoba. The project received HudBay
board approval to proceed to full construc-
tion in December 2011, and first produc-
tion is expected by late 2013. Mine life is
currently projected at five years.
Initial capital to develop the Reed mine
is estimated at C$71.9 million. Run-of-
mine ore will be transported by truck to
HudBay’s Flin Flon concentrator, where it
will be crushed to less than 150 mm. The
Reed ore will be batched separately through
the concentrator, with assumed metal recov-
eries of 94% copper, 58% gold and 62%
silver in a copper concentrate. Production
from the Reed ores is expected to average
17,000 mt/y of copper in concentrate.
Access to the underground Reed mine
will be via a trench, portal, and decline
located near the center of the surface site.
The decline will be excavated 6 m wide
and 5 m high to a depth of 510 m from
surface and will be able to accommodate a
60-mt truck. Mining levels will be spaced
25 m vertically and will be accessed from
the decline. Level development will be 5.5
m wide by 4.5 m high to accommodate a
10-yd3 Scooptram. Mining will be at a rate
of 1,300 mt/d, using long-hole open stop-
ing methods.
Infrastructure required at the Reed site
includes an employee camp, mine office
and changehouse dry, mechanical shop,
warehouse, core shack, explosive maga-
zine, electrical generator and fuel storage
area, electrical office, ventilation downcast
building, and compressor building.
As of March 30, 2012, the Reed pro-
ject had probable minerals reserves totaling
2.2 million mt, grading 3.83% copper,
0.59% zinc, 0.48 g/mt gold, and 6.02
g/mt silver. HudBay and VMS are optimistic
that additional resources can be developed
down-dip from the current reserves.
www.e-mj.com
REGIONAL NEWS - U.S. & CANADA

Energy Fuels Acquiring Avalon Considering Louisiana

Denison’s U.S. Assets
Energy Fuels and Denison Mines
announced in mid-April 2012 an agree-
ment whereby Energy Fuels will acquire all
of Denison’s mining assets and operations
in the United States in exchange for Energy
Fuels shares valued at about C$106 mil-
lion. The key asset in the transaction is
Denison’s White Mesa uranium and vanadi-
um mill near Blanding, Utah. Denison also
operates the Beaver, Pandora and Daneros
mines on the Colorado Plateau and the
Arizona 1 mine on the Arizona strip and has
a variety of U.S. development properties.
The White Mesa Mill is the only con-
ventional uranium mill currently operating
in the United States. It is fully licensed
and permitted to process 2,000 st/d, pro-
ducing up to 8 million lb/y of uranium. A
vanadium co-product recovery circuit
allows for the processing of vanadium ore,
and its central location allows for hauling
of uranium ore from Arizona, Utah,
Colorado and New Mexico.
Steve Antony, president and CEO of
Energy Fuels, said, “This transaction is
transformational for Energy Fuels and
reshapes the landscape of the uranium
sector within the United States. It com-
bines the highly strategic asset of the only
operating uranium mill in the United
States, White Mesa, with a significant
resource base that substantially increases
White Mesa’s available feedstock. The
result is an unmatched production growth
profile and the opportunity for both Energy
Denison Mines White Mesa mill in southern Utah is the
only conventional uranium plant currently operating in
the U.S. (Photo courtesy of Denison Mines)
Fuels and Denison shareholders to benefit
from the clear operational synergies that
result from this transaction.”
On closing of the transaction, current
Denison shareholders will hold approxi-
mately 66.5% of the issued and outstand-
ing shares of Energy Fuels. The combined
company will have measured and indicat-
ed resources of 49.8 million lb of U3O8,
plus inferred resources of 17.9 million lb
of U3O8.
Following completion of the transac-
tion, Denison will focus on its Canadian
development assets, which include the
Wheeler River project in the Athabasca
Basin of northern Saskatchewan, and on
exploration and development projects in
Mongolia and Zambia.
Location for Separation Plant
Toronto-based Avalon Rare Metals has
announced the results of a prefeasi-
bility study for a rare earth elements
separation plant potentially to be located
in Louisiana.
The plant is designed to treat chemical
concentrates containing a blend of light
and heavy rare earth elements originating
from the Avalon’s Nechalacho rare earth
elements deposit at Thor Lake, Northwest
Territories, Canada.
These chemical concentrates will be
produced from two hydrometallurgical
facilities: a sulphuric acid bake plant
planned for the Northwest Territories and a
second cracking plant, which is presently
contemplated to be co-located with the
separation plant, as it also requires
hydrochloric acid and caustic soda.
The Nechalacho project feasibility
study is scheduled for completion by the
end of 2012.
The separation plant is designed to
produce 10 different pure rare earth
oxides and one pure mixed heavy rare
earth carbonate for sale. The prefeasibility
study for the plant was completed by
SNC-Lavalin.
The estimated capital cost for a
plant with 10,000 mt/y of production
capacity is $302 million. The estimated
operating cost is $5,634/mt of rare earth
oxide product, which includes labor,
operating supplies, reagents and mainte-
nance costs.

Canada Streamlining its Project Review Process
The Canadian government, as part of its “Economic Action Plan
2012,” has released a plan for “Responsible Resource
Development” to streamline the review process for major econom-
ic projects. The plan calls for movement to a “one project, one
review” system for reviews of major projects by recognizing provin-
cial processes as substitutes or equivalents to federal ones as long
as they meet the requirements under the Canadian Environmental
Assessment Act. The plan calls for consolidation of the number of
organizations responsible for reviews from more than 40 to three:
The Canadian Environmental Assessment Agency, the National
Energy Board, and the Canadian Nuclear Safety Commission.
Under the new plan, decisions by the Canadian Environmental
Assessment Agency on whether a federal environmental assess-
ment is required will made earlier in the process, within 45 days.
Timelines will be set for hearings and assessments: 24 months for
panel reviews, 18 months for National Energy Board hearings, and
12 months for standard environmental assessments. Legally bind-
ing timelines will be set for key regulatory permitting processes,
including the Fisheries Act, the Species at Risk Act, the Navigable
Waters Protection Act, the Canadian Environmental Protection
Act, and the Nuclear Safety and Control Act.
Federal assessment efforts will focus on major projects that
can have significant environmental effects. For the first time, fed-
eral inspectors will have the authority to examine whether or not
conditions of a decision statement are being met; and for the first
time, administrative monetary penalties will be authorized for vio-
lations of the Canadian Environmental Assessment Act, the
Nuclear Safety and Control Act, and the National Energy Board
Act. These penalties will be designed to address small contraven-
tions quickly so that larger issues do not arise. Further details on
the penalties will be available once legislation is introduced.
The plan for “Responsible Resource Development” was
announced by Canada’s Minister of Natural Resources Joe Oliver, who
said, “Streamlining the review process for major economic projects
will attract significant investment dollars and give every region of our
country a tremendous economic boost. It will produce hundreds of
millions of dollars in government revenues that fund important social
programs. And it will create good jobs and stimulate economic activi-
ty throughout the supply chain. That is what we are determined to
achieve. That is what responsible resource development is about.”
Further details about Canada’s plan for “Responsible Re-
source Development” can be accessed at the plan website
www.actionplan.gc.ca/eng/feature.asp?pageId=448.

10 E&MJ • MAY 2012 www.e-mj.com

 NEWS - PEOPLE IN THE NEWS
BHP Billiton announced Iron Ore President Ian Ashby is
leaving BHP Billiton July 2012, after more than 25 years
with the company. Ashby will be succeeded by Jimmy
Wilson, currently BHP Billiton Energy coal president. To
allow a smooth transition, Wilson will join the iron ore
team immediately. Energy Coal CFO, Andre Liebenberg,
will assume the role of acting president, energy coal.
Jimmy Wilson
Hecla Mining Co. has appointed Ed Sutich vice president
and general manager of the Lucky Friday mine. The com-
pany also announced the appointments of John Jordan
as vice president of technical services and Michael
Wegleitner as director of health and safety.
Avanti Mining Inc. has appointed Mark G. Premo COO of
the company and CEO of its wholly-owned subsidiary,
Avanti Kitsault Mine Ltd.
Guyana Goldfields Inc. announced Claude Lemasson
has resigned as president and COO, and as a director
Mark G. Premo of the board. Patrick Sheridan Jr., CEO, will re-
place Lemasson on a temporary basis until a successor
is appointed.
Mammoth Resources Corp. has appointed Thomas Atkins president and CEO.
Edward Farrauto has stepped down as president and CEO, and Mark Hunter
has stepped down as a director.
Witwatersrand Consolidated Gold Resources has
appointed Bernard Wessels COO.
Fortune Minerals Ltd. has appointed Carl Kottmeier the
project manager for Mount Klappan based in the com-
pany’s new Vancouver, British Columbia, regional office.
Seok (Joon) Kim has been appointed mine planning
engineer to support the NICO gold-cobalt-bismuth-
copper project in the Northwest Territories and
Bernard Wessels
Saskatchewan, and the Mount Klappan project in B.C.
Rio Grande Mining Corp. has appointed Blair Way COO.
Continental Gold Ltd. has appointed Arturo Salvador general manager, Luis
Felipe Huerta project manager and Gerardo Chambergo technical services
manager to the Buriticá project team.
Strata Minerals Inc. has appointed Peter Kozicz presi-
dent and CEO, and Hugh Agro chairman of the board of
directors.
Pershimco Resources Inc. has appointed Octavio Choy
country manager covering its operations in Panama.
Carbine Tungsten Ltd. has appointed Andrew James
Morgan managing director and CEO.
Peter Kozicz Castle Peak Mining Ltd. has appointed Clive Arthur vice
president of exploration.
Equinox Exploration Corp. has appointed Victor Nielsen president and COO.
He succeeds Joshua Bleak, who will remain CEO and continue to serve the
board as a director. The company also appointed Rick Cid vice president of
business development.
Linear Metals Corp. has appointed Jim Megann presi-
dent and CEO. He replaces Brian MacEachen who will
remain on the board of directors.
Arianne Resources Inc. has appointed Jean-Sébastien
David vice president of operations.
AuRo Resources Corp. has appointed John Buckle vice
president of exploration.
Jim Megann Rogue Iron Ore Corp. has appointed Ronald Mariani vice
president of operations.
Black Iron Inc. has appointed Igor Buchatskiy vice president of strategy.
For the first time in 130 years, FLSmidth, a Denmark
based, market-leading supplier of equipment and serv-
ices to the global minerals and cement industries, has
promoted a non-Dane to its executive leadership team.
Peter J. Flanagan has been selected to serve as a mem-
ber of Group Executive Management, and as executive
vice president of FLSmidth’s newly formed non-ferrous
division.
Tembo Gold Corp. has appointed Peter Haworth explo-
Peter J. Flanagan ration manager.
12 E&MJ • MAY 2012
Rajant Corporation has appointed Todd Rigby vice pres-
ident of business development-mining.
Renforth Resources Inc. has appointed Nicole Brewster
president and CEO. She has also been appointed direc-
tor. The company has also appointed Wally Rudensky a
director and chair of the Audit Committee. David
Danziger has resigned as president and CEO, but will
Todd Rigby
continue to serve as the company’s chairman. Paul
Pathak has also resigned as a director.
UC Rusal has appointed Evgeny Ovchinnikov commercial director.
Bear Creek Mining Corp. announced its CFO, Brad Blacketor, will be leaving
to pursue other opportunities. Steve Krause has been named interim CFO.
Major Wire Industries Ltd. has appointed Jerry Teague
territory manager for the south central United States
and Puerto Rico.
Claude Resources Inc. has appointed Peter Longo vice
president of operations.
Mustang Alliances Inc. has appointed Peter Boies pro-
ject geologist to oversee Mustang’s Honduran 2012
Jerry Teague exploration program.
Star Gold Corp. has appointed Scott Jenkins chief geologist and director of
exploration.
Richard Tagge, former general manager of Mine Radio
Systems Africa, has returned to the United States to
take over the role of MRS U.S. sales manager.
Huakan International Mining Inc. has appointed
Pengzhi Guo CEO to replace Kunpeng Li, who has
stepped down as president and CEO.
Talon Metals Corp. has appointed Sean Werger president.
Richard Tagge
FLSmidth & Co. A/S has appointed Carsten R. Lund
group executive vice president and member of the group executive manage-
ment, when Christian Jepsen resigns to join Alcoa in July 2012. Lund will
head the new global Bulk Materials Division.
Kenneth Eltschlager received an International Society
of Explosive Engineers (ISEE) President’s Award during
ISEE’s annual conference on explosives and blasting
technique. Eltschlager is a trainer dedicated to making
certain that blasters learn what they need to know to do
their work safely and follow the procedures.
KaMin LLC has appointed Warren McPhillips vice pres-
ident of commercial.
Kenneth Eltschlager
Dr. Saleem Ali has been appointed director of the Centre
for Social Responsibility in Mining (CSRM). CSRM is one of seven research
centres within the Sustainable Minerals Institute (SMI) at The University of
Queensland in Brisbane, Australia. Dr. Ali will replace Professor David
Brereton, CSRM founding director, who will become SMI’s deputy director-
research integration.
Eriez announced the promotion of Jaisen Kohmuench to
deputy managing director, Eriez Flotation Division—USA.
NOV has appointed Jayme Sperring director of global
sales and marketing with scientific drilling.
Peninsula Energy Ltd. has appointed Ralph Knode CEO
of its subsidiary Strata Energy Inc.
TMEIC Corp. has appointed Paul Cowx technical
Jaisen Kohmuench sales manager.
Atlas Copco Construction Equipment has appointed Brian Bieller vice pres-
ident of business development.
Atlas Copco Construction Mining Technique USA recently appointed Shane
Roden product manager for GIA and raise boring products; Matt Juth has
been appointed product manager for load/haul/dump
(LHD) and pedestal boom system (PBS) products; Matt
Huntsman has been appointed product manager for
distributor parts and services; and Rhodes Barrett has
been appointed product specialist for blasthole drills as
part of the ADS team in Garland, Texas.
Gemcom Software International Inc. has appointed
Dave Osborn managing director for the company’s
Dave Osborn Africa business unit.
www.e-mj.com
REGIONAL NEWS - LATIN AMERICA
Centaurus Targets 2013 Startup for
Jambreiro Iron Ore Project
Centaurus Metals hopes to produce a high-grade sinter feed for Brazilian steel mills from its Jambreiro iron ore
project, pictured here. The company recently filed the project’s EIA with the Minas Gerais state government. (Photo
courtesy Centaurus Metals)
Centaurus Metals, a junior Australian com-
pany, has filed the environmental impact
assessment (EIA) for its Jambreiro iron ore
project with the Minas Gerais state envi-
ronmental authority in southeast Brazil.
The company is targeting approval of the
EIA and receipt of a preliminary license for
the project during October 2012, in line
with its development timetable of produc-
ing first iron ore at Jambreiro by the end of
2013. The EIA is for an operation that can
deliver up to 3 million mt/y of high-grade
iron ore product, although the project is
currently planned to start at a production
rate of 2 million mt/y.
Domestic Brazilian steel mills are the
primary target market for Jambreiro pro-
duction. Initial pilot-scale test work on
Jambreiro ore has produced a high-grade
sinter feed product grading 65.6% iron
with low impurities—2.8% silica and
0.01% phosphorus. The work confirmed
the effectiveness of a robust, simple, low-
cost, two-stage magnetic separation pro-
cessing route that allows production of a
range of product qualities to suit different
customer needs, including a high-grade,
low-impurity product that meets the sinter
feed blend requirements of traditional
steel mills.
Current estimated JORC-compliant
resources at Jambreiro stand at 116.5 mil-
14 E&MJ • MAY 2012
lion mt measured, indicated, and inferred,
grading 26.8% iron. A new resources esti-
mate is scheduled for the end of May 2012
as part of a bankable feasibility study that is
currently in progress. The new estimate will
focus primarily on upgrading the respective
categories of the resources, rather than on
increasing the overall tonnage.
A diamond drill rig has been mobilized
to the Jambreiro project to start a geotech-
nical drill program required by the feasibil-
ity study.
Changes Suggested to Minas
Conga Water Storage Plan
On April 17, 2012, the Peruvian govern-
ment received an independent, 248-page
report from contracted consultants analyz-
ing the hydrologic aspects of Minera
Yanacocha’s Minas Conga gold mine proj-
ect in Cajamarca province, Peru. Minera
Yanacocha is owned 51.35% by Newmont,
43.65% by Buenaventura, and 5% by the
World Bank’s International Finance Corp.
The project, which has estimated capital
costs of about $4.8 billion, has been shut
down since November 2011 due to
protests directed primarily at its water stor-
age plans, which call for four lakes on the
property to be replaced by four water stor-
age reservoirs. The report suggests, among
other recommendations, that two of the
lakes be left intact and that water storage
capacity of the reservoirs be increased.
In a televised address to the nation
on April 20, Peru’s President Ollanta
Humala gave tentative approval to develop-
ment of the Conga project, with the condi-
tion that its developers take additional
measures to mitigate its hydrologic and
environmental impact.
On April 21, Minera Yanacocha said in
a press release that it will undertake a new
evaluation of technical and economic alter-
natives for the project, as well as of ways to
compensate for its hydrologic and environ-
mental impact.
Production from the Minas Conga open-
pit mine is planned to be in the range of
600,000 to 700,000 oz/y of gold and
160,000 to 240,000 lb/y of copper.
Extorre Reports Positive
PEA for Cerro Moro
Extorre Gold Mines announced in early
April 2012 the results of preliminary eco-
nomic assessment (PEA) No. 3 for its Cerro
Moro gold-silver project in Santa Cruz
province, southern Argentina. The PEA
considered mine production scenarios
ranging from 1,000 to 1,500 mt/d. A
1,300-mt/d scenario was selected as the
preferred scenario and is the basis for the
information reported here.
At the 1,300-mt/d mining rate, Cerro
Moro precious metal production over a
nine-year mine life is estimated at
848,000 oz of gold and 47.2 million oz of
silver, for a total gold equivalent production
of 1.79 million oz. Gold contributes
approximately 48% of the projected rev-
enue stream, and silver contributes approx-
imately 52%. During the first five years of
operations, gold equivalent production
would average 248,000 oz/y. The econom-
ic modeling used base-case metal price
assumptions of $1,320/oz for gold and
$26/oz for silver.
The Cerro Moro PEA contemplates a
combination of approximately 43% open-
pit and 57% underground mining. Mine-
site cash costs during the first five years
are estimated at $304/oz on a gold equiv-
alent basis. Initial capital expenditures are
estimated at $284 million, including
refundable VAT.
www.e-mj.com
REGIONAL NEWS - AUSTRALIA/OCEANIA
OZ Starts Underground Production
at Prominent Hill
Aerial view of OZ Minerals’ Prominent Hill property in South Australia including the Ankata deposit, where under-
ground mining recently commenced. (Photo courtesy of OZ Minerals)
OZ Minerals fired the first production holes
in the first stope of the Ankata under-
ground mine at its Prominent Hill opera-
tions in South Australia on March 29,
2012. Development of the underground
mine at Prominent Hill began in November
2010 to access the higher-grade Ankata
deposit. The access decline reached the
Ankata orebody in August 2011, and the
first development ore was hauled to sur-
face in September 2011.
The underground Ankata operation will
ramp-up over 2012 and is anticipated to
reach its full 1.2 million-mt/y mining rate
in the third quarter. The mine is expected
to contribute 800,000 to 1 million mt of
ore in the 2012 ramp-up year. The average
grade of the Ankata ore to be mined in
2012 is expected to be in the range of
2.3% to 2.8% copper.
The Ankata resource is located 800 m
from Prominent Hill’s Malu open-pit. The
higher-grade ore from the underground
mine is expected to contribute an average
of 25,000 mt/y of copper and 12,000 oz/y
of gold production each year for five years.
Mining will be via sub-level open stoping
techniques. The ore can be blended with
the open-pit feed for processing.
OZ Minerals is exploring around the
Prominent Hill area for further copper-gold
deposits. The company has access to a high-
ly prospective, 7,000-km2 tenement pack-
age in its own right and through its joint ven-
ture with IMX Resources. The company has
committed to spending A$70 million on
near-mine and regional exploration in 2012.
16 E&MJ • MAY 2012
Consortium Takes 30% Interest
in Roy Hill Iron Project
Hancock Prospecting and a consortium
comprising POSCO, Marubeni Corp., and
STX Corp. jointly announced on March 30,
2012, agreements for the consortium to
acquire a 30% equity interest in Roy Hill
Holdings (RHH), the holding company of
the Roy Hill iron ore project in Western
Australia.
The transaction is valued at about
A$3.5 billion. Marubeni will take 12.5% of
the project for A$1.5 billion, POSCO will
take 15% for A$1.7 billion, and STX will
take 2.5% for A$300 million. The consor-
tium has also secured its proportionate
share of project production, representing a
combined 16.5 million mt/y of iron ore at
full production.
The Roy Hill project is located along the
eastern end of the Chichester Range in the
Pilbara region of Western Australia and has
a JORC-compliant resource of 2.32 billion
mt grading 55.9% iron and a reserve of
851 million mt grading 59.3% iron. The
project is being developed as a low-cost,
fully integrated, open-pit mine, rail and
port facility.
Roy Hill operations are scheduled to
begin in 2014, and at full production, the
mine is designed to deliver 55 million mt/y
(wet) of premium quality lumps and fines
iron ore to the seaborne iron ore trade for
more 28 years.
The project includes a dedicated 342-
km railway that will connect the mine to
port facilities within the inner harbor at
Port Hedland across a distance of about
277 km.
All necessary internal and regulatory
approvals, including approval by the
Australia’s Foreign Investment Review
Board, had been received at the time of the
announcement, and the transaction was
expected to close within 14 days.
Ivanhoe Australia Completes
Merlin Feasibility Study
Ivanhoe Australia completed the feasibility
study for its Merlin molybdenum and rhe-
nium project in northwestern Queensland
in mid-April 2012. “The feasibility study
has largely confirmed the outcomes from
the prefeasibility study, while improving
the economics of the project,” Ivanhoe
Australia CEO Peter Reeve said. “In addi-
tion, there is further potential upside to the
study through options surrounding the
plant’s roaster, which could be located out-
side of Australia for significant savings on
up-front capital and operating costs.”
The processing plant for Merlin ore will
be a new, separate mill and processing
facility constructed at Ivanhoe Australia’s
Osborne complex, 53 km from the Merlin
mine site (E&MJ, April 2012, p. 20). The
re-commissioned Osborne copper-gold mill
became operational in March 2012, pro-
ducing copper-gold concentrate, with
throughput capacity of 2 million mt/y.
Initial capital expenditure to first pro-
duction at Merlin is estimated at A$345
million. An additional A$52 million of capi-
tal in year one of operations is scheduled for
an optimized molybdenum trioxide purifica-
tion plant. This higher-grade molybdenum
product receives a premium price and will
increase overall returns to the project.
The Merlin mill at the Osborne complex
will have a throughput rate of 500,000 mt/y.
Production during the first seven years follow-
ing ramp-up will average 5,100 mt/y of
molybdenum as molybdenum trioxide and
7,300 kg/y of rhenium as ammonium per-
rhenate. Operating costs are estimated at
approximately $6.66/lb of molybdenum, after
byproduct credits and including royalties.
The Merlin feasibility study was based
on a probable mineral reserve of 7.1 mil-
lion mt grading 1.1% molybdenum and
18.1 g/mt rhenium.
www.e-mj.com
 REGIONAL NEWS - AFRICA
Mali Mines Report ‘Business as Usual’
Following Coup
Companies with operating gold mines in Mali reported no measurable impact on their operations after a recent
military coup in the country. Shown here is Randgold Resources/AngloGold Ashanti’s Morila mine. (Photo courtesy
AngloGold Ashanti)
A negotiated settlement following a March
22, 2012, military coup in Mali installed
an interim president and an interim prime
as heads of the nation’s government in
April. The settlement grew out of negotia-
tions between the coup leaders and repre-
sentatives of countries within the Economic
Community of West African States (ECOW-
AS). However, the route back to stable civil-
ian rule in Mali remained uncertain. Rebels
seized control of the northern half of the
country as political events unfolded in the
capital, Bamako, and a near-term agree-
ment to end the rebellion seemed unlikely.
Mali’s gold mines, which are located in
the south and west of the country, contin-
ued to operate normally during the coup
and government change and were not
immediately impacted by the rebellion in
the north. Companies with operating gold
mines in Mali include Randgold Re-
sources/AngloGold Ashanti (the Morila
mine), AngloGold Ashanti/Iamgold (Sadiola
and Yatela), Randgold Resources (Loulo),
Resolute Mining (Syama) and Avion Gold
(Segala and Tabakoto).
In a statement issued April 9, Randgold
said it welcomed the political settlement
brokered in Mali by its West African neigh-
bors and that the disruptions that followed
coup had not materially affected Randgold’s
gold production.
18 E&MJ • MAY 2012
Impala Platinum Agrees to
Indigenization in Zimbabwe
[Editor’s note: Due to a production error,
the version of this article that appeared in
our April issue omitted the opening para-
graph. The article is reproduced below in
its entirety. E&MJ regrets any confusion or
misunderstanding caused by the error.]
In press releases dated March 13 and
March 14, 2012, Impala Platinum (Im-
plats) announced that, following a meeting
between Implats directors and the Zimbab-
wean Minister of Youth Development,
Indigenization and Empowerment, a new
Zimplats Indigenization Implementation
Plan presented to the Minister had met the
minimum requirements of Zimbabwe’s
Indigenization and Economic Empowerment
Act and 2010 regulations and was accept-
able in principle to the government.
Implementation of the agreement would be
at appropriate value, and the details for the
transfer of a 51% shareholding in Zimplats
would be addressed by a joint technical
team, comprising Impala Platinum, the
ministry responsible for indigenization, and
the National Indigenization Economic and
Empowerment Board. Implats holds an
87% interest in Zimplats.
No agreement was reached on the tim-
ing or valuation of the transaction other
than that it would be at appropriate value.
Implats proposals were that:
• 10% of Zimplats will be issued to the
Community Trust at the independent val-
uation previously submitted to the gov-
ernment. Zimplats Holdings will provide
an interest free loan to the Community
Trust to fund the shares, and the loan will
be repaid from dividends. This stake will
be non-contributory.
• 10% of Zimplats will be sold to an
employee share ownership trust for the
benefit of all full-time employees of
Zimplats. The shares will be sold at the
same independent valuation, and
Zimplats Holdings will provide an inter-
est-bearing loan to the Employee Trust to
fund the purchase of the shares. The
loan will be repaid from dividends and
will be contributory or dilutive..
Zimplats and the government will explore
fair value compensation for ground released
by Zimplats to the government under an
agreement dated May 24, 2006. On receipt
of this compensation, Zimplats will make
available for sale to the National Indigeni-
zation and Economic Empowerment Fund a
31% fully contributory stake in Zimplats for
cash at an independently determined fair
value at the time. Future expansion opportu-
nities will therefore not be impacted.
“If they don’t come up with the cash,
the stake will not be transferred,” Reuters
reported Implats CEO David Brown as say-
ing during a conference call following the
agreement. Also, the stake, whose value
must be decided, will only become avail-
able for sale once the government has com-
pensated Implats for the land it released to
the state under the 2006 agreement.
Brown said the company believed the
$158 million value it had placed on the
land at that time was still appropriate. That
sum would have to be paid before a value
could found for the 31% stake in Zimplats,
which would be worth $372 million based
on the company's market capitalization,
the Reuters report said.
Kibali Gold Mine Starts to
Take Shape
Randgold Resources reported in mid-April
2012 that construction at the Kibali gold
(Continued on p. 26)
www.e-mj.com
 REGIONAL NEWS - ASIA
Ice Movement Limiting Kumtor Production
Problems with ice movement in the pit will curtail this year’s gold production at Centerra Gold’s Kumtor mine by
an estimated 185,000 to 215,000 oz, according to the company. (Photo courtesy Centerra Gold)
Centerra Gold announced in late March
2012 that increased ice movement in the
southeast section of its Kumtor open-pit
mine in the Kyrgyz Republic will delay
scheduled access to the high-grade SB
zone of the pit. Preliminary engineering
analysis indicates Kumtor gold produc-
tion during 2012 will fall to between
390,000 to 410,000 oz of gold, rather
than the 575,000 to 625,000 oz previ-
ously forecast, the company said.
Production at Kumtor is dependent
on successfully maintaining the mining
rates of the waste and ice in the south-
east section of the pit to gain access to
the higher-grade ore in the SB zone. “A
recent substantial acceleration of ice
and waste movement, which was exacer-
bated by the 10-day labor disruption
that occurred in early February 2012,
now requires that cutback 14A be
delayed to allow for the unloading of
such ice and waste in the southeast sec-
tion of the pit. This is expected to delay
the cutback from late 2012 to late
2013, resulting in the deferral into
2013-2015 of production from the
high-grade SB zone otherwise expected
in 2012,” Centerra said.
20 E&MJ • MAY 2012
Centerra expects to partially miti-
gate the impact of the ice movement
and the resulting delay in cutback 14A
by accelerating mining in the south-
west portion of the pit to access part
of recently reported new reserves to
provide higher-grade ore for the Kum-
tor mill. The company is undertaking
further technical analysis of the im-
pact of the ice movement on its life-
of-mine plan and expects to provide
further information on production,
capital costs, and operating costs in
due course.
Centerra also reported that
Kumtor’s collective bargaining agree-
ment expires at the end of 2012. “A
work stoppage at any time during the
year could have a significant impact
on Kumtor achieving its revised fore-
cast production. Additionally, achiev-
ing the revised 2012 production is
dependent on the delivery of new min-
ing equipment on schedule and suc-
cessfully maintaining the mining rates
of the waste and ice in the southern
portion of the pit to gain access to the
higher-grade ore,” the company
announcement said.
China Establishes Rare
Earths Association
China’s rare earth industry established
an industry association on April 8
with the aim of spurring healthy devel-
opment in the sector, Xinhau News
Agency reported. The association has
155 members, including Aluminum
Corporation of China and China
Minmetals, and was formed to pro-
mote sustainable and sound develop-
ment in the sector, Su Bo, vice mini-
ster of Industry and Information
Technology said.
Gan Yong, now an academician at
the Chinese Academy of Engineering
and also president of the Chinese
Society of Rare Earths, will be the
president of the association. He said
the association will work to form a
reasonable price mechanism and to
create a win-win situation for develop-
ers and consumers through its coordi-
nation efforts.
The association also will provide
support and services for relevant
departments and local governments,
help maintain order in the sector,
facilitate exchange and cooperation
between enterprises to spur innovation,
and coordinate efforts to cope with
international trade frictions and
disputes.
China has announced production
caps, stricter environmental standards,
and an export quota system for rare
earth metals in recent years. These
moves have triggered protests from sev-
eral countries who claim that China is
using the rare earths, which are used to
manufacture an array of high-tech
goods, as a political bargaining chip.
Asked about the recurring frictions,
Gan said the new association will help
deepen international communications
and “properly” handle the trade dis-
putes according to international stan-
dards and World Trade Organization
rules. China supplies more than 90% of
rare earth products on the global mar-
ket, but its reserves only account for
about one-third of the world’s total.
“Many countries in the world have
rare earth reserves. You cannot rely on
China alone to provide all the sup-
plies,” Gan said.
www.e-mj.com
REGIONAL NEWS - EXPLORATION ROUNDUP
Brigus Reports Positive Drill Results
from Black Fox
Brigus Gold continues to achieve positive
results from ongoing drilling on the 147
and Contact Zones of its Black Fox proper-
ty, east of Timmins, Ontario, and 4 km
south of the company’s Black Fox mine.
Intercepts in the 147 Zone have includ-
ed 10 m grading 27.7 g/mt gold and 56.7
m grading 5.95 g/mt gold, while intercepts
in the Contact Zone have included 15.5 m
grading 26.83 g/mt gold and 22.45 m
grading 4.08 g/mt gold (grades are uncut,
average grades over core-length widths).
The main area of the 147 Zone extends
approximately 250 m in a north-south
direction. Gold mineralization primarily
occurs within multiple quartz carbonate
brecciated zones within bleached units of
variolitic mafic volcanics and other parallel
footwall zones.
The Contact Zone consists of a steeply
dipping, gold-mineralized fault contact
between north-south trending metasedi-
ments and mafic volcanic rocks, and other,
parallel, hanging-wall and footwall gold
mineralized zones. The area of mineraliza-
22 E&MJ • MAY 2012
tion has a strike length of about 450 m and
remains open along strike to the north and
at depth.
In December 2011, Brigus announced
a combined initial gold resource of
116,710 oz indicated and 459,420 oz
inferred for the 147 and Contact Zones
based on drilling in 255 holes. A prelimi-
nary economic assessment of the two
zones is under way and is scheduled for
completion in the third quarter of 2012,
along with an updated resource statement.
The Black Fox complex covers an area
of approximately 18 km2. To date, Brigus
has systematically explored about 25% of
its property on the complex and considers
that significant upside potential remains
on the rest of the property.
(www.brigusgold.com)
Exploration Briefs
Atlantic Ltd. reported in early April 2012
that drilling and surveying in recent months
at its Windimurra vanadium project in
Western Australia has increased the JORC-
compliant global mineral resource for the
project by 33 million mt to 243 million mt
grading 0.48% V2O5, a 16% increase on the
previous global mineral resource. The grade
across the larger resource tonnage increased
to 0.48% V2O5 from 0.47% V2O5, with an
increase in average grade to 0.50% V2O5 in
the southern mine area of the deposit.
The latest Windimurra resource figures
follow successful 3,518-m reverse circula-
tion and 823-m diamond core drilling pro-
grams in the southern mine area. Atlantic
expects to announce an updated
Windimurra ore reserve and life-of-mine
plan by mid-year 2012.
The Windimurra plant produced its first
ferrovanadium in early January 2012 and
is expected to reach design capacity of
6,300 mt/y of contained vanadium during
the first quarter of 2013.
(atlanticltd.com.au)
Lumina Copper has expanded the drill pro-
gram at its 100%-owned Taca Taca copper-
gold-molybdenum deposit in Salta province,
www.e-mj.com

northwest Argentina, from 99,500 m to
163,500 m with the addition of 64,000 m
of step-out drilling. The added drilling will
extend the program from a previous end date
of April 2012 to the fourth quarter of 2012.
Lumina based its decision to expand the
drill program on recent results from drilling
in the northeast, south, and southeast
zones of the Taca Taca deposit, along with
visual interpretation of mineralized material
from subsequent exploration drilling in
areas to the north and northwest of the cur-
rent NI 43-101 mineral resource estimate.
Recent results at Taca Taca are high-
lighted by two step-out holes. One hole
intersected 873 m grading 0.54% copper,
0.09 g/mt gold, and 0.01% molybdenum,
including 148 m grading 1.31% copper,
0.19 g/mt gold, and 0.01% molybdenum,
in the northeast zone. The other intersect-
ed 184 m grading 0.45% copper, 0.13
g/mt gold, and 0.02% molybdenum,
including 72 m grading 0.76% copper,
0.20 g/mt gold, and 0.02% molybdenum,
in an area to the southeast of the previous-
ly identified porphyritic intrusion.
Seven core and two reverse circulation
drill rigs were operating at Taca Taca as of
late March 2012, and Lumina expected to
add an another core rig to the program before
the end of April. A new interim NI 43-101
www.e-mj.com
REGIONAL NEWS - EXPLORATION ROUNDUP
mineral resource estimate was also sched-
uled for completion before the end of April.
(www.luminacopper.com)
Sumitomo Metal Mining has identified a
new gold deposit, named the “East Deep”
deposit, 300 m northeast of the Liese
deposit that is currently being mined at its
Pogo mine in eastern Alaska. At year-end
2011, the new deposit contained approxi-
mately 1.28 million oz of gold in resources
and reserves.
Development of access drives will begin
this year to accelerate a start of production
at the East Deep deposit, and drilling dur-
ing 2012 will continue to explore the
extent of the deposit, which is open in the
northeast, north, and west and holds
potential for discovery of additional ore.
At year-end 2011, total estimated Pogo
resources and reserves, including the East
Deep deposit, stood at 12.3 million mt at
an average gold grade of 12.5 g/mt and
containing 4.97 million oz of gold.
The Pogo mine is owned 85% by
Sumitomo Metal Mining and 15% by
Sumitomo Corp.
(www.smm.co.jp/E)
Teranga Gold reports that ongoing drilling at
depth and immediately to the north of its
Sabodala open-pit gold mine in Senagal
continues to confirm higher grades in a
potentially expanded pit. Drill intercepts
have included 85 m grading 3 g/mt gold
and 99 m grading 1.3 g/mt gold.
Exploration results during 2011 and early
2012 indicate that existing gold mineraliza-
tion can be expanded by an additional 20
million to 30 million mt over the next 12 to
18 months at grades of between 1.5 and
2 g/mt, for a total inventory of 2.5 million to
3.5 million oz of gold on the Sabodala mine
license. This would increase mine life to
about 15 years at a gold production rate of
about 200,000 oz/y and would provide a
solid production base to support Teranga’s
regional exploration program.
Teranga has budgeted $20 million for
drilling on the Sabodala mine license dur-
ing 2012, with a minimum of 6 drill rigs
testing new targets and converting existing
resources to reserves. Drilling during the
first and second quarters of 2012 has
focused on in-filling and extending miner-
alization in the immediate vicinity of the
current ultimate pit.
Teranga expects Sabodala to pro-
duce between 210,000 and 225,000 oz
of gold during 2012 at cash costs of $600
to $650/oz.
(www.terangagold.com)
MAY 2012 • E&MJ 23
 NEWS-THIS MONTH IN COAL
TransAlta Abandons Canada’s Largest
Carbon-Capture Project
TransAlta Corp., Canada’s largest publicly
traded electricity generator, announced that
it and several partners had decided to aban-
don the nation’s largest carbon capture and
sequestration project. Project Pioneer was a
joint effort by TransAlta, Capital Power,
Enbridge Inc, Canada’s largest oil pipeline
company and the federal and provincial
governments to demonstrate the commer-
cial-scale viability of CCS technology.
The first step and an essential part of
the project was to prove the technical and
economic feasibility of CCS through a front
end engineering and design (FEED) study
before making any major capital commit-
ments. Following the conclusion of the
FEED study, the industry partners deter-
mined that although the technology works
and capital costs are in-line with expecta-
tions, the revenue from carbon sales and
the price of emissions reductions are insuf-
ficient to allow the project to proceed at this
time. “The markets for CO2 sales and the
price of emission reductions are not suffi-
cient at this time to allow the project to go
ahead,” said Dawn Farrell, TransAlta presi-
dent and CEO. “While we are disappointed
that Project Pioneer will not go ahead, we
now know the technology works and we still
believe there is a future for CCS,” she said.
Pioneer would have been able to trap as
much as 1 million tons of CO2 a year from
the Keephills No. 3 coal-fired power plant
west of Edmonton, and then sell the gas to
energy companies to use in enhanced oil
recovery applications. Construction was
due to start this year.
CONSOL Energy Restarts
Idled Longwalls in U.S.
CONSOL Energy announced it will re-start
the longwall at its Blacksville mine on
May 1. “The company has largely conclud-
ed negotiations with thermal coal cus-
tomers concerning deferred shipments,
enabling us to resume our thermal guid-
ance for the second quarter and beyond,”
said Brett Harvey, chairman and CEO,
CONSOL Energy. “A similar situation exists
in the coking coal markets, where overseas
steelmakers have been taking advantage of
a lull in the strong longer term market to
pressure coal producers into accepting
prices lower than the benchmark.”
24 E&MJ • MAY 2012
CONSOL idled its longwall at Buchanan,
effective March 9, in an effort to refrain
from selling its premium hard coking coal at
a discount. As a result of extensive negotia-
tions, CONSOL has now come to terms with
its customers and, as a result, will re-start
the longwall at Buchanan also.
Colombian Miners to Make
Major Port Investment
Several major Colombain coal operators
have reported progress on expanding port
facilities, which is essential to meet their
goals of growing production to 120 million
metric tons per year (mt/y) in two years,
according to La Republica. This year,
Drummond, Cerrejón and Prodeco will
invest more than $1.3 billion in construc-
tion projects and material handling
upgrades. According to Alfonso Saade,
executive director of Fenalcarbon, by 2030
the mines located in regions such as Cesar
and La Guajira plan to produce as much as
200 million mt/y. Saade believes the exist-
ing investment allocated to ports and gen-
eral facilities will generate enough confi-
dence for Colombia to achieve its goals in
terms of future production.
Augusto Jiménez, president of Drum-
mond Colombia, said the main works to
construct the port facilities have already
started. These works will allow the compa-
ny to load the coal directly into ships
instead of transloading. The $450 million
project is expected to be completed by
The three major Colombian coal operators plan port upgrades. The largest coal producer, El Cerrejón, exports
through Puerto Bolivar. (Photo courtesy of El Cerrejón)
2013. In addition to increasing exports,
Jiménez said the projects would also strive
to minimize the emissions.
Arch Coal Honors Steve Leer
Arch Coal’s Tygart Valley No. 1 mine will be
renamed the Leer mine in recognition of
Steven F. Leer, who was elected executive
chairman of Arch’s board after two decades
with the company as CEO.
“We wanted to honor Steve for two
decades of exceptional service and leader-
ship,” said Arch’s Lead Director James R.
Boyd. “It is fitting to name this brand-new,
world-class mining complex in honor of
Steve and his vision of safety excellence,
environmental stewardship and strategic
growth. We view the Leer mine as one of
Arch’s most exciting new growth projects and
an integral part of our company’s future.”
Initiated by International Coal Group,
and acquired by Arch Coal in 2011, the
Leer mine is a metallurgical coal mine cur-
rently under development in Taylor County,
West Virginia. With the startup of the long-
wall in mid-2013, the Leer mine is expect-
ed to produce 3.5 million tons annually.
“I’m honored to have my name forever
associated with this new operation, which I
believe is destined to become one of the
world’s premier coal mines,” said Leer. “It
has been a great privilege to be associated
with Arch for 20 years and counting, and I
am more enthusiastic than ever about the
company’s exciting future prospects.”
www.e-mj.com
 NEWS-CONTINUED

(Africa Regional News - from p. 18)
project in northeastern Democratic Re-
public of Congo is well under way, as its
developers continue to target first produc-
tion by the end of 2013. The plus-10-mil-
lion-oz gold deposit is owned by Randgold
(45%), AngloGold Ashanti (45%), and the
Congolese parastatal, Sokimo (10%). The
current life-of-mine plan envisages average
production of approximately 600,000 oz/y
of gold for the first 12 years, at an average
grade of 4.1 g/mt.
Randgold is developing the Kibali project
and will operate the mine. The completed
operation will comprise an integrated
underground and open-pit mine, a twin-cir-
cuit sulphide and oxide plant with a
throughput of 6 million mt/y, and four self-
constructed hydropower stations, as well as
a standby high-speed thermal power gener-
ator for back-up during the dry season.
The Kibali project is being constructed in
two overlapping phases. Phase 1, through
startup, covers the metallurgical plant, the
first phase of the tailings storage facility, the
first of the hydropower stations, the back-up
power plant, all shared infrastructure, and
the completion of a resettlement program.
The cost of Phase 1 is estimated at $920
million, before provisions, contingencies,
and escalation. Phase 2 will include devel-
opment of the underground mine, which is
expected to deliver first ore in 2014 and to
reach steady state production by 2015, at
an estimated cost of $650 million before
provisions, contingencies, and escalation.
“By the end of March, we had already
shifted 200,000 m3 of ground for the foun-
dations of the metallurgy plant, and during
the second quarter we plan to move
800,000 m3 for the bulk earthworks,” said
Project Manager Gary Short. “Construction
of the assay laboratory is scheduled for
completion by early May, and the three lay-
down terraces should be complete by June.
“The open-pit mining contractor started
site establishment in February, and its fleet
is due to begin arriving from the end of
April. The earthworks and civils contractor
is also on site, and work on the main earth-
works should commence in earnest on
schedule at the end of April. During the
current quarter, concrete works are
planned to start at the metallurgy plant and
at the first hydropower plant, earthworks
for the decline box cut are due to get
underway, and the structural, mechanical,
and platework contractor is scheduled to
mobilize on site.”
Randgold’s group general manager oper-
ations Central and East Africa Willem
Jacobs points out that the project’s staff
complement has increased almost tenfold
from the end of 2009 and now stands at
2,829. In line with Randgold’s policy of
favoring nationals of the countries in which
it operates, only 86 of these are expatri-
ates, and they are there largely to transfer
skills and build local capacity. Eventually,
Kibali’s management team will be almost
entirely Congolese.

NEWS-CALENDAR OF EVENTS

MAY 26–JUNE 2, 2012: ALTA Nickel-Cobalt-Copper, Uranium & Gold
Conference, Perth, Western Australia. Contact: ALTA Metallurgical
Services; Tel: 61 3 5472 4688; Fax: 61 3 5472 4588; E-mail:
alantaylor@altamet.com.au; Web: www.altamet.com.au.
MAY 29–JUNE 2, 2012: M&T Expo 2012, São Paulo, Brazil.
Contact: Cristina Bighetti; E-mail: cristina@timepress.com.br; Tel:
55 11 5585 9787; Web: www.mtexpo.com.br.
MAY 30–31, 2012: AIMS 2012 7th International Symposium:
Rockbolting and Rock Mechanics in Mining, Aachen, Germany.
Contact: Mirjam Rosenkranz; E-mail: rosenkranz@bbk1.rwth-aachen.de;
Web: www.aims.rwth-aachen.de.
MAY 30–JUNE 1, 2012: Western Mining Electrical Association Bi-annual
Meeting, Reno, Nevada, USA. Contact: WMEA; Web: www.wmea.net.
JUNE 4–8, 2012: 27th Annual Mining Expo, Elko, Nevada, USA. Contact:
The Elko Convention & Visitors Authority; Tel: 800-248-3556; Fax:
775-738-2420; E-mail: jennifer@elkocva.com; Web: www.elkocva.com.
JUNE 5–8, 2012: UGOL Rossii & Mining 2012, Novokuznetsk, Russia.
Contact: Messe Düsseldorf GmbH; Tel: 49 (0)211 4560-01; E-mail:
infoservice@messe-duesseldorf.de; Web: www.ugol-rossii.com.
JUNE 12–14, 2012: Euro Mine Expo, Skellefteå, Sweden. Contact: Anna
Sellberg; Tel: 46 (0)90 16 34 09; Fax: 46 (0)90 14 24 81; E-mail:
info@eurominexpo.com; Web: www.eurominexpo.com.
JUNE 17–20, 2012: 14th U.S./North American Mine Ventilation
Symposium, Salt Lake City, Utah, USA. Contact: Department of Mining
Engineering, Dr. Felipe Calizaya; Tel: 801-581-5422; Fax: 801-585-5410;
Email: felipe.calizaya@utah.edu; Web: http://web.utah.edu/14minevent-
symposium/index.html.
JULY 4–6, 2012: III International Mining and Metallurgy Congress,
Astana, Kazakhstan. Contact: Gulziya Asylbekova; Tel: 7 (727) 258 10 11;
E-mail: g.assylbekova@expo-kz.kz; Web: www.expo-kz.kz.
JULY 24–26, 2012: Queensland Mining & Engineering 2012 Exhibition,
Mackay, Queensland, Australia. Contact: Warren Queenan,
Sales Manager, Reed Mining Events; Tel: 61 2 9422 2563; Email:
warren.queenan@reedexhibitions.com.au; Web: www.queensland-
miningexpo.com.au.
JULY 16–20, 2012: Economic & Evaluation Investment Decision
Methods, 5-day course, Golden, Colorado, USA. Contact: Colorado
School of Mines; Web: www.csmspace.com.
AUGUST 28–30, 2012: Mining & Energy NSW 2012 Exhibition,
Newcastle, New South Wales, Australia. Contact: Warren Queenan,
Sales Manager, Reed Mining Events; Tel: 61 2 9422 2563; Email:
warren.queenan@reedexhibitions.com.au; Web: www.miningand-
engineeringnsw.com.au.
SEPTEMBER 5–6, 2012: MEMSA Annual Technical Symposium,
Clearwater, Florida, USA. Contact: Mining Electrical Maintenance
Association.; Web: www.miningelectrical.org.
SEPTEMBER 10–14, 2012: Electra Mining Expo, Johannesburg, South
Africa. Contact: Specialized Exhibitions (Pty) Ltd.; Tel: 27 (0) 11 835
1565; Fax: 27 (0) 11 496 1363; Web: www.electramining.co.za.
SEPTEMBER 24–26, 2012: MINExpo, Las Vegas, Nevada, USA.
Contact: Hall-Erickson Inc.; Tel: 866-717-6463; E-mail: minexpo@hei-
expo.com; Web: www.minexpo.com.
OCTOBER 30–NOVEMBER 1, 2012 : Goldfields Mining Expo 2012,
Kalgoorlie, Western Australia, Australia. Contact: Warren Queenan,
Sales Manager, Reed Mining Events; Tel: 61 2 9422 2563; Email:
warren.queenan@reedexhibitions.com.au; Web: www.goldfieldsmining-
expo.com.au.
OCTOBER 30–NOVEMBER 2, 2012: 19th International Symposium,
Bauxite, Alumina and Aluminium Industry in Brazil and New Global
Developments, Belém, Brazil. Contact: ICSOBA, the International
Committee for Study of Bauxite, Alumina & Aluminium; Tel: 91 982 328
98 17; E-mail: info@icsoba.org; Web: www.ICSOBA.org.
NOVEMBER 14–16, 2012: Western Mining Electrical Association
Bi-annual Meeting, San Antonio, Texas, USA. Contact: WMEA;
Web: www.wmea.net.
DECEMBER 3–5, 2012: Bauxite, Alumina and Aluminum Industry
of Asia – Vision 2020, Nagpur, India. Contact: International Bauxite,
Alumina & Aluminum Society (IBAAS); Email: info@ibaas.info;
Web: www.ibaas.info.

26 E&MJ • MAY 2012 www.e-mj.com

 S U R FA C E M I N I N G
Eldorado Builds on Turkish Success
Turkey’s top gold producer is intent upon doubling ore production to reach an
estimated 475,000 ounces per year by 2014
By Simon Walker, European Editor
The crushing and screening plant at Kişladağ, with the pit in the background. The operation came on stream in 2007, and now has a 10.5 million oz mining reserve.
(Photo courtesy of Eldorado Gold Corp.)
Headquartered in Vancouver, British
Columbia, Eldorado Gold Corp. is one of
the new generation of mid-tier gold pro-
ducers. Focusing on low-cost production,
the company currently has mining, devel-
opment and exploration operations in
Brazil, China, Greece and Turkey. Since
Eldorado was incorporated in 1992, it has
grown both organically and through a series
of mergers and acquisitions, the most
recent of which, involving a C$2.5-billion
bid for European Goldfields Ltd., was com-
pleted in late February.
While its acquisition trail provided
Eldorado with an entry into countries such
as China (with its 2005 takeover of Afcan
28 E&MJ • MAY 2012
Mining Corp.), the company has also been
developing its own projects from discovery
to production, with none more prominent
than its Kişladağ mine in west-central
Turkey. Today, this is the largest gold pro-
ducer in the country, with Eldorado having
recently completed studies on a major
expansion that would result in its output
increasing from the 284,648 oz produced
in 2011 to 475,000 oz by 2014.
As a low-grade deposit, Kişladağ has
benefited enormously from the current
high gold price, and Eldorado has contin-
ued to invest in exploration that has
increased the resource there nearly two-
fold since production began in 2006.
Today, the mine is founded on a 10.5-mil-
lion-oz gold reserve, with a lifetime cur-
rently projected to run until at least 2026.
Grass-roots and Growth
Kişladağ is located at an elevation of just
over 1,000 m (3,300 ft) on the plateau-
lands of Uşak province, inland from the
western Turkish Port of Izmir and some 350
km (220 mi) southwest of the country’s cap-
ital, Ankara. Operated by Eldorado’s wholly-
owned subsidiary, Tüprag Metal Madencilik
Sanayi ve Ticaret A.Ş., the mine paved the
way for the use of heap-leaching in Turkey.
To give a measure of the scale of the opera-
tion, in 2011 Tüprag placed 12.4 million
metric tons (mt) of ore on to its leach pads,
a 25% increase over 2010’s production.
The strip ratio of 1.46:1 waste-to-ore means
it also had to move 18.3 million mt of waste
rock, with a further increase scheduled for
the total tonnage during 2012.
The region that hosts the mine is high,
dry and economically dependent on small-
scale agriculture. During a visit to the
mine last December, Tüprag’s chief geolo-
gist, Yücel Öztaş, told E&MJ how the
deposit was discovered and outlined its
geological setting.
“The first indication of gold mineraliza-
tion came from sediment sampling in the
early 1990s, and we won the rights to
begin exploration here when the property
was put up for auction by the Turkish gov-
ernment in 1996,” Öztaş said. “There’s lit-
www.e-mj.com
 S U R FA C E M I N I N G

tle surface outcrop, but our initial trench- achieved in May and the official opening Then, in July 2007, everything got put
ing returned grades of over 1 gram per ton. taking place in July. on hold. Pre-existing third-party litigation
After that, we started drilling.” Speaking at the ceremony, the compa- over the validity of the project’s environ-
Kişladağ is a Miocene-age porphyry- ny’s President and CEO Paul Wright said: mental impact assessment reached a high-
type gold deposit hosted in a series of latite “Turkey is a country where we have invest- er court that ordered the shut-down of the
intrusives. Emplacement was into base- ed for over a decade, and have successful- operation pending a final decision. With
ment schists that can be graphite-bearing. ly advanced a grass-roots discovery to a the exception of essential environmentally
Latite, Öztaş explained, is the near-surface producing mine. With a 14-year mine life, orientated work, the company suspended
expression of quartz syenite and quartz Kişladağ will provide direct employment operations at Kişladağ.
monzonite intrusives, with exploration hav- for 300 people.”
ing defined four phases of intrusives within By the end of 2006, the mine had pro- ...Back on Track
the resource area. Of these, the oldest, duced nearly 71,000 oz of gold at a cash Seven months of suspension followed
Intrusive 1, hosts around 80% of the total cost of US$206/oz, and Eldorado had before the mine was able to return to oper-
resource in quartz-sulphide stockwork min- already committed to a US$14 million ation, in March 2008. During the remain-
eralization, with further resources held in expansion project aimed at increasing der of the year, it achieved an output of
both Instrusives 2 and 2A. All three were capacity to 240,000 oz/y. With contract 190,000 oz from 7.5 million mt placed on
emplaced over a short time-frame, while mining scheduled to be phased out, a new the leach pads, with the company reporting
the youngest body, Intrusive 3, which cuts excavator and truck fleet was on order, the cash costs of US$254/oz.
through the earlier emplacements, is essen- aim being to reduce mining costs by using With the new mining system in place,
tially barren, forming a core around which higher-capacity equipment. ore production in 2009 rose to 10 million
the ore zone lies in a horse-shoe shape.
Typical grades for the three ore-bearing
intrusives are 1 g/mt, 0.7-0.8 g/mt and 0.3-
0.5 g/mt respectively. Strong argillic alter-
ation has produced a soft capping to the
deposit that extends to depths of between
30 and 80 m (100 and 260 ft) and overlies
harder, more abrasive host rock.
The gold occurs as 2- to 10-µm free
grains in both the oxidized and sulphide
zones, making it a straight-forward target
for heap-leaching following simple crush-
ing. In addition, Öztaş said, copper, molyb-
denum and silver values are low, which
helps the metallurgical process by reduc-
ing the potential for cyanide robbing.
In 2003, when Eldorado prepared its
feasibility study on the project, proven and
probable reserves at Kişladağ stood at 4.5
million oz. By 2005, this had grown to 135
million mt grading 1.16 g/mt, containing
5.06 million oz, and by the end of 2011,
continued exploration had increased this to
460 million mt at 0.71 g/mt for 10.5 mil-
lion oz, within measured and indicated
resources of 580 million mt grading 0.65
g/mt and containing 12.1 million oz.

Construction and
Commissioning, but Then...
Having secured its permits, Eldorado gave
the go-ahead for development in 2004,
with construction beginning in September
of that year. At the time, the company was
budgeting capex of US$83 million to bring
the mine on stream, with commissioning
scheduled for the end of 2005 and an out-
put of 164,000 oz projected for 2006. In
the event, bad weather delayed the start- The Atlas Copco Pit Viper PV-235 and one of the mine’s older DM45 rotary blasthole rigs drilling a new bench.
up until early 2006, with the first gold pour (Photo: Simon Walker)

www.e-mj.com MAY 2012 • E&MJ 29

 S U R FA C E M I N I N G
The mine’s Hitachi EX-3600 hydraulic excavators are matched with Caterpillar 785C haulers. When new haulers
arrive on site, they will be equipped for trolley assist. (Photo: Simon Walker)
mt, while total rock mined reached 24 mil-
lion mt. Eldorado completed an expansion
of the leach pads, installed larger carbon
columns in the ADR (adsorption-desorp-
tion-recovery) plant and undertook design
work on increasing crushing capacity to
more than 12 million mt/y. Gold produc-
tion rose to 237,200 oz at a cash cost of
US$280/oz.
Design work on the capacity expansion
continued during 2010, while mine output
rose again, to 274,600 oz at a cash cost of
US$329/oz. Permitting for the expansion
was granted in June 2011, allowing the
company both to increase its leaching
capacity for Kişladağ ore and construct a
new processing plant to handle flotation
concentrates from its Efemçukuru under-
ground mine in Izmir province, which came
on stream during the year (See E&MJ,
February 2012, p.20). The new plant is
designed to recover around 70% of the
recoverable gold from Efemçukuru, with
the remainder being recovered at a gravity-
concentration unit at the mine. Capex at
the mine totaled US$55 million in 2010
and a further US$53 million during 2011,
most of which was invested in completing
the expansion project.
Phased Pit Development
Since mining began, the pit floor at
Kişladağ has reached an elevation of 874
m above sea level, from an 1,100 m start-
ing point. A six-phase operation is being
studied, with the final pit bottom engi-
neered for an elevation of 400 m, giving
ultimate pit dimensions of 1,700 by
30 E&MJ • MAY 2012
1,500 m (5,600 by 5,000 ft), by 650 m
(2,100 ft) deep.
Since taking over the mining operation
from its initial contractor, Tüprag has been
relying on two Atlas Copco DM45 drill rigs
for the bulk of its production blasthole
drilling, together with an Atlas Copco
FlexiROC D50 that is used mainly for pre-
split drilling around the pit perimeter, plus
some production work as well. In August
2011, the mine took delivery of an Atlas
Copco Pit Viper PV-235 blasthole rig,
which will add capacity once drilling
demands increase as the next stage of
expansion gets under way. Loading and
hauling involves two Hitachi EX3600 face-
shovel hydraulic excavators, a Caterpillar
993 wheel-loader and a fleet of 14,
Caterpillar 785C 150-mt-capacity rear-
dump trucks.
Designed as a mid-range blasthole drill
capable of either rotary or down-the-hole
drilling, the Kişladağ PV-235 is powered by
a 597-kW (800-hp) Caterpillar C27 engine.
Crawler-mounted, and with an all-up weight
of some 58 mt, the rig can exert 267 kN
(60,000 lbf) of hydraulic pull-down and
29.5 mt (65,000 lb) of weight on the bit.
The mine uses 152- or 165-mm bits on
114-mm-diameter drill pipe, with the rig
drilling 12-m-deep holes in one pass.
Mine Manager Serkan Yüksel described
to E&MJ the contribution that the Pit Viper
had made since it had arrived on site, with
the two DM45s and the PV-235 having
completed a total of 650,000 drill meters
during the first 11 months of the year.
“During the four months that it’s been
here, the Pit Viper has contributed around
70,000 m to that total,” he said.
“We are using the Pit Viper in the hard-
er rock in the pit, so we’re not really in a
position yet to make direct comparisons
between it and the DM45s. What it has
done for us, though, is to give us drilling
capacity ahead of our production needs, so
we can chose to be selective about where
we use it at the moment,” Yüksel said. Not
only that, but the mine operates with a
‘cushion’ of broken ore sufficient for
between 20 and 25 days’ production
which, he added, has been helped by the
extra drilling capacity now available.
Both ore and waste is drilled on a dia-
mond pattern, with a 4.5-5.25 m burden
and slightly greater spacing. Blastholes
cover the depth of a 10-m mining bench,
with typically 800-mm (31.5-in.) sub-
drilling. The mine uses both ANFO and
Emulite emulsion explosives, depending on
whether holes are wet or dry. A blast every
day meets the mine’s current production
needs, with some 1.5 million mt of broken
ore ‘in stock’ at the end of November 2011.
Dig and Dump
Equipped with 21-m3 buckets, the two
Hitachi EX-3600 hydraulic shovels bear the
brunt of the rock-loading duties, with a
high-lift Caterpillar 993K wheel loader on
hand to add capacity when needed. The
mine’s initial fleet of 10 Cat 785C haulers
was augmented with a further four
machines during 2011, in preparation for
future increases in tonnage handling. Other
equipment on site includes two Cat D9 doz-
ers, a Cat 834 wheel dozer, and two Cat
16M graders and three water trucks for haul
road maintenance and dust suppression.
As Yüksel explained, there is good rea-
son for high-quality haul-road care. This is
an arid part of Turkey where annual rainfall
averages 425 mm, mainly in winter when
temperatures are 5-10°C (40-50°F) during
the day and down to -10°C (15°F) at night.
In summer, by contrast, typical daytime
temperatures are up to 33°C (90°F).
With the rock density varying from 2.1
to 2.5 mt/m3, haul-truck loads can range
between 120 and 150 mt, he pointed out.
Average haul runs are currently around
2 km to the waste-rock dumps and 1.4 km
to the primary ore crusher.
Given its relatively compact footprint,
maintaining pit-wall stability will become
increasingly important as the pit gets deep-
er, which is where the mine’s Atlas Copco
FlexiROC D50 comes into play. The rig is
www.e-mj.com
 S U R FA C E M I N I N G
used to drill 20 m double-bench-height
holes at 95-mm diameter, with 1-m sub-
drilling. The layout involves 1-m hole spac-
ing around the entire pit periphery, requir-
ing very accurate rig set-up to achieve par-
allel drilling. “Another challenge is that the
pit slope varies from 42.4° to 48.5°, de-
pending on the geotechnical conditions
from area to area,” Yüksel said. “We have
experimented in the past with both single-
and double-plane inclined holes.”
Despite the security provided by this
system, Tüprag has invested in a further
safeguard in the form of a Reutech Mining
movement and surveying radar monitor.
Supplied by the South Africa-based firm,
the MSR system continuously scans the
opposite pit slope for any signs of move-
ment or instability, taking between five and
ten minutes to complete each pass across
the entire pit wall. Sensitive enough to
identify even sub-millimetric movements,
the trailer-mounted instrumentation is fully
self-contained and remote controlled, with
a maximum range of between 1,200 and
2,500 m, depending on the model.
High-recovery Heap Leaching
As other companies have discovered (See
E&MJ, February 2012, p.47), popular
opinion in Turkey often expresses strong
misgivings over the use of cyanide in min-
ing operations. Tüprag has provided clear
proof that heap leaching is a safe way of
producing gold, achieving recoveries of
around 85% from oxide ores and 65% from
the underlying sulphide mineralization.
General Manager Metin Demir ran
through the operation’s process route for
The mine’s Reutech movement and surveying monitor
system continuously scans the opposite pit wall, provid-
ing an additional level of safety. (Photo: Simon Walker)
32 E&MJ • MAY 2012
E&MJ. “We use a Metso Superior primary
gyratory crusher to produce -100 mm
material for the 20,000-mt coarse ore
stockpile, with a Metso MP1000 cone as
the secondary crusher and three MP800s
short-heads for tertiary crushing,” Demir
said. Undersize is screened out before both
secondary and tertiary crushing, with fine-
ore screening separating out product from
oversize that is returned to the tertiary
crushers. After screening, the fine ore
product is 80% minus-7.5-8 mm.
“The fine ore can either be stacked on
the heap direct from crushing or screening,
or we can hold it in a 25,000-mt stockpile
until it can be loaded on to the pads,”
Demir said. Lime addition at 5.5 kg/mt of
ore precedes stacking, with a two-stage
overland conveyor running from the plant to
the heap. Mobile conveyors carry the ore to
a radial stacker for placement in 10-m-high
lifts, with a final planned heap height of
60 m. Cyanide solution is applied at a
rate of between 5.5 and 12 l/m2/h, with a
90-day leach cycle for oxide material and
120 days for sulphide ore.
The leach pads are founded on a two-
layer liner system comprising compacted
clay or geosynthetic clay liner overlain by a
2-mm-thick HDPE/LLDPE synthetic mem-
brane. The 15-million-mt initial pad
capacity has been extended sequentially
since production began, with new cells
being brought on stream as mine output
has grown. There are now 21 cells in oper-
ation, each measuring 80 m wide by 750
m long. High-grade pregnant solution is
pumped to the ADR plant, while low-grade
solution from the pads is recycled through
an intermediate pond for re-application.
The ADR plant consists of two trains of
five carbon columns, with each column
containing between 4.5 and 5 mt of car-
bon. Following an acid wash, the loaded
carbon is pressure-stripped, with elec-
trowinning and smelting to produce a doré
bar containing 65%-80% gold, 10%-20%
silver and some copper. Refining is under-
taken in Turkey.
The recently commissioned concentrate
plant, designed to handle material grading
around 85 g/mt from Efemçukuru, in-
cludes IsaMill fine-grinding and leaching
circuits, with the high-grade leach solution
going straight to electrowinning without
passing through carbon columns.
Looking Ahead
In August 2011, Eldorado completed its
studies into doubling ore production from
the pit. This would not only increase gold
output to around 475,000 oz/y, but would
also involve a separate leaching system for
low-grade run-of-mine ore as well as the
construction of a new bank of convention-
al leaching heaps. The company has since
been preparing its application for a revised
environmental permit.
Based on a 25-million-mt/y throughput
rate for crushing, screening and stacking,
the material-handling requirement will
increase to an average of some 65 million
mt/y from now until 2016, peaking at 100
million mt/y. Run-of-mine ore treatment
will average around 8 million mt, with a
maximum of 13.6 million mt, with recov-
eries expected to be in the order of 40%
from this material.
Eldorado plans to keep its existing
shovel and truck fleet in operation, with
new equipment being phased in as loading
and hauling demands increase. The com-
pany’s aim here is to cut operating costs by
going electric, not only for loading but also
for the new trucks, which will be equipped
for trolley-assist up the pit ramps.
The expansion will also require a dou-
bling-up on crushing, screening and fine-
ore handling capabilities, together with a
new gold-recovery plant. Eldorado antici-
pates receiving permitting for the project
later this year, with a capex budget of some
US$175 million already allocated for pre-
liminary work, out of a project total of
US$354 million. Commissioning of the
new infrastructure is currently scheduled
for the third quarter of 2014.
Closer to the present, Eldorado ex-
pects Kişladağ to produce between
285,000 and 295,000 oz of gold this
year at a cash cost of US$385-395/oz,
only marginally higher than the US$374/oz
achieved in 2011.
The company reported net profits of
US$347 million for 2011, on revenues
of US$1.1 billion that were US$300
million higher than in 2010. Total gold out-
put reached nearly 659,000 oz, with
Kişladağ contributing 43% of this. Its
other operation in Turkey, Efemçukuru, is
now operating as planned, with an out-
put of 125,000-135,000 oz projected
for this year.
Faced with a challenging operating
environment, Eldorado has proved that it is
possible to develop world-class mines in
countries for which this a new experience.
Kişladağ is one such, with plenty more to
come as it cements its position as Turkey’s
largest gold producer.
www.e-mj.com
 ELECTRIC SHOVELS

Shovel Performance: AC vs. DC

A case study demonstrates the benefits of AC technology
By Eric N. Berkhimer, P.E.
Working with a western Canadian mine
operator, P&H Mining Equipment conduct-
ed a case study to compare the performance
of its AC-powered rope shovel against its
DC-powered shovel. The mine operates sev-
eral P&H electric rope shovels and recently
purchased two P&H 4100XPC AC shovels.
Because these units were new to the opera-
tion and are matched with some new haul
trucks as well, a study was carried out in
March 2011 to assess the productivity of
these new shovels in comparison with a
4100XPC DC shovel that has been used on
the property since mid-2008.
The results showed the AC shovels
exhibited a higher availability than the
DC shovel through a similar period.
Additionally, initial results indicate the
cycle time of the AC shovels is faster,
resulting in a higher production rate.
DC controls on P&H electric shovels
evolved from Ward-Leonard to the
analog Electrotorque in 1968, the digital
Electrotorque Plus in 1997, and the
Centurion in 2004. The Centurion supervi-
sory control and data acquisition technolo-
gy put P&H in a position to offer AC drives
as a reliable alternative to DC drives. The
company’s first AC drive shovels went into
service in 2007—two years after it
launched its AC drive shovel initiative.
Today, P&H offers both DC and AC drive
shovels as demand continues for DC drive
shovels in some mining regions while other
regions standardize on AC drive technology.
To validate the productivity rates from
the 4100XPC AC shovels, particularly in
loading 345-ton Cat 795F and 400-ton
797F haul trucks, a joint productivity study
was planned and executed between the
mine and P&H. In addition to performance
improvements, P&H also wanted to verify
that its voice-of-customer driven approach
for mine operations was effective.
improved efficiency in troubleshooting,
thus reducing downtime;
• AC motors used on swing and hoist to
improve swing and hoist speeds resulting
in productivity improvements;
• Modifications (to name a few) were made
to the front idler, lube system, roller
dimensions, revolving frame dimensions,
roller path, hoist gear case, boom and
gantry to improve reliability;
• Independent drives for each propel motor
allowing “propel on demand” and elimi-
nating the time required for a transfer
from dig mode to propel mode and back
resulting in higher productivity because
there is more time available for produc-
tion rather than propel delays; and
• Rear room with improved climate tem-
perature and dust control.
These upgrades were made to improve
the performance of the 4100XPC AC, sev-
eral of which were targeted for validation
during the study.
Data Acquisition
A study to compare the productivity figures
between a 4100XPC DC and a 4100XPC
AC was jointly conducted starting the week
of February 28, 2011, between P&H
Table 1: P&H 4100XPC Shovel Working Data
Mining/MinePro Services and the mine. A
set of truck scales was brought in by the
mine to weigh haul trucks loaded by the
4100XPC AC (with a few loads from other
shovels). Those weighed included 320-ton
Komatsu 930E, 345-ton Cat 795F and
400-ton Cat 797F haul trucks.
During the same period, time studies
were conducted on the 4100XPB DC
(Shovel S05), 4100XPC DC (Shovel S06),
and the first 4100XPC AC (Shovel S07).
Additionally, the P&H PreVail data acquisi-
tion system installed on Shovel S07 was
monitored for payload consistency as com-
pared to data from the truck scales. PreVail
also provided additional information on the
swing angle, digging time in the bank, time
to swing loaded, and time to swing and
return to the tuck position for each dipper
pass. The same operator was used on each
different shovel during the time studies to
eliminate operator skill level as a variable
in the study.
In all, there were:
• Nearly 10 hours of time study data
collected;
• 226 trucks loaded by Shovel S07
weighed on the truck scales (over a 4-day
period); and

Changes from 4100XPC DC

to 4100XPC AC
A number of important improvements were
included on the 4100XPC AC shovel
affecting reliability and/or productivity:
• Factory-built modular rear room enclo-
sure for streamlined electrical routings
resulting in shorter installation time and

34 E&MJ • MAY 2012 www.e-mj.com


Figure 1: Breakdown of Average 4100XPC DC and AC Cycle Times
• Nearly 8,000 data points from the
Prevail system on Shovel S07 (over a 5-
day period) detailing swing angle, time
hoisting in the bank, time swinging
loaded and time swinging empty to a
tuck position.
As part of the study, photos were taken
of representative dipper and truck fills to use
in future operator discussions and training
so that operators can better recognize when
the dipper and truck are loaded to capacity.
Additional data obtained from the mine
included:
• Availability data for the first 6-months of
operation on Shovel S06 and life-to-date
information on both Shovel S07 and S08;
• Preventive maintenance schedules and
actual history for the shovels; and
• Operator and maintenance technician
comments and feedback concerning the
DC vs. AC shovel models.
The study compared the 4100XPC DC
and AC shovels from several different
aspects: physical availability, cycle time,
preventive maintenance requirements,
hourly parts costs and, finally, overall
productivity.
Availability
Excluding the first two months of operation
to allow for a break-in period on each shov-
el, excellent results were found on all three
shovels under consideration with the low-
est physical availability being 92.52% on
the 4100XPC DC Shovel S06 for the sub-
sequent four months of operation. The two
AC shovels (over a three-month operating
period on Shovel S07 and one month on
Shovel S08) had a weighted average phys-
ical availability of 93.96%.
It should be noted that life-to-date
(through more than 16,000 operating hours),
Shovel B has demonstrated a 93.58% phys-
ical availability, an improvement over the first
several months of operation.
If these numbers are maintained over
time and assuming a fully trucked unit, an
availability advantage of approximately 1.5%
can add significantly to the mine’s produc-
www.e-mj.com
tion rate. Under fully-utilized conditions, an
improvement of just 1% availability can add
some 250,000 m3 of overburden annually to
the overall mine production (even consider-
ing the same production per hour).
In the design of the AC shovel, P&H tar-
geted an availability improvement of 1% to
2% over the DC version of the same shov-
el model. The results suggest that this is
accurate.
Cycle Time
One of the key components in a shovel’s
productivity is the time it takes the shovel
to load a dipper of material into the truck
(along with the payload in each dipper
full). In an electric rope shovel, the cycle
time consists of the following components:
• Hoisting in the bank to load the dipper;
• Swinging a full dipper to the truck;
• Dumping into the truck; and
• Returning with an empty dipper to a
tucked position to begin the next cycle.
In the time studies conducted, each
component (except dump) was tracked
individually (dump was considered part of
both the swing empty and swing return
components and assumed to be 2 sec-
onds—one second accounted for in each of
these). PreVail data showed an average
swing angle of approximately 60°.
As seen from the time study data on
cycle time components (See Figure 1), the
4100XPC AC has an average cycle time
some 3.5 seconds faster than that of the
4100XPC DC. This represents a significant
reduction in the load times of the shovel.
Figure 2: Truck Payloads in 3-Passes
ELECTRIC SHOVELS
A minor portion of the cycle time savings
was in the swing loaded component (0.4
seconds) but the vast majority of the cycle
time savings is in the time required to
hoist the dipper through the bank. Faster
hoist times as demonstrated here are one
of the inherent advantages of an AC drive
over a DC drive in an electric rope shovel.
Some of the time savings can be attributed
to the shaped bucket that is currently
being used on the AC shovels. These buck-
ets are endorsed by P&H to reduce dig
time in the face.
P&H targeted a cycle time improve-
ment of 1 to 2 seconds over the 4100XPC
DC when designing the AC shovel. The
study indicates that the target number is
currently being met.
Dipper Payload
Dipper payload observations on 4100XPC
AC Shovel S07 were made using the
PreVail system equipped on the shovel as
well as the total truck payloads from the
truck scales study information. Over a five-
day period, the PreVail system indicated an
average dipper payload of 91.2 metric tons
(mt) from some 8,000 data points.
Observations made (of the PreVail system)
strictly during the time studies conducted
indicated an average dipper payload of
93.1 mt. The trucks weighed over a four-
day period during the study indicated an
average dipper payload of 92.7 mt. This
resulted in a very narrow range of only 1.9
mt (a 2% spread), resulting in a very high
correlation between all observations made.
However, it should be noted that there
are some differences—from day-to-day
as well as from truck model to truck
model—that are perhaps more significant.
According to Figure 2, the range from day-
to-day may be as high as 10% reflecting
changes in the digging conditions, material
fragmentation, position within the bank, etc.
It is also interesting to note there is a
difference in dipper payloads when the
4100XPC AC is loading the smaller
MAY 2012 • E&MJ 35
 ELECTRIC SHOVELS

Figure 3: P&H 4100XPC PM Cost Figure 4: Relative Parts Cost Comparison – AC vs. DC

Komatsu 930E haul trucks and when it is
loading the Cat 795F haul trucks. When
loading the 930Es, the 4100XPC had an
average dipper payload of 90.2 mt. When
loading the 795F haul trucks, it had an
average dipper payload of 95.2 mt—a vari-
ation of 5.5%. This difference was relative-
ly consistent from day-to-day and indicates
that the operator may likely be loading to a
higher dipper payload (at least subcon-
sciously) when he knows that a larger truck
is present. Both 4100XPC shovels studied
were equipped with 55-m3 dippers.
Preventive Maintenance,
Scheduling and Experience
To date, the mine has maintained the same
preventive maintenance (PM) schedule for
the AC shovels as currently being used with
the 4100XPC DC shovel. They are, howev-
er, investigating the possibility of extending
these intervals. Based on current data, the
mine has found that the average machine
downtime for each PM is some 2.2 hours
less with the 4100XPC AC shovels
than with the DC-powered 4100XPC.
Additionally, they are using an average of
7.6 fewer man-hours for the electrical por-
tion of the PM (See Figure 3).
These indications from the PM data
show that there can be a significant advan-
tage to the AC shovel. If the operator is
achieving an average of 3,300 bank cubic
meters (BCM) per hour of production and
can gain an extra two hours of production
for every 500 hours of operation, there
would be the potential for 79,000 BCM of
additional material to be moved each year.
The labor savings can also add up to a sig-
nificant reduction in PM costs. These
results would be compounded further
should the PM intervals for the AC shovels
be extended.
Hourly Parts Cost
Six months of operation on the 4100XPC
AC at the mine had not allowed sufficient
operating hours for the operation to gener-
ate a history of parts cost comparison
between the DC and AC shovels. P&H Life
Cycle Management, however, has made
some long-term projections.
Primarily because of the lower mainte-
nance involved with the AC motors, P&H
projects an overall 4% reduction in parts
cost per hour with the AC-powered
4100XPC versus the DC-powered unit
(based on 6,000 hour-meter hours per year).
Annually, the savings varies from 2.7%
to 5.4% with the higher variances occur-

P&H Implements Real-Time Data Solution

P&H is using AspenTech’s real time database to capture operational
data from electric shovels operating worldwide, improving equip-
ment uptime and increasing profitability for customers. The com-
pany’s PreVail Remote Health Monitoring (RHM), which provides
insight into the health and performance of its electric shovels, relies
on Aspen InfoPlus.21. The system monitors equipment in real-time
and enables the mine to deploy labor resources to the right place at
the right time, reducing unplanned shovel shutdowns.
“Using Aspen InfoPlus.21 data historian for continuous data col-
lection, the PreVail system allows us to diagnose root causes quick-
ly and reliably,” said Ken Daniel, RHM group leader, P&H Mining.
A key part of any real-time data environment is a data histori-
an. Storing and analyzing this data with dashboards allows opera-
tors to become proactive and apply best-practice monitoring tech-
niques. When equipment approaches scheduled maintenance or
more importantly, when real-time, algorithm-based alerts suggest
potential for failure, operators can proactively warn the mainte- tion allowed the drive to be replaced before it failed, saving down-
nance department before a shutdown occurs. These alerts can be time and reducing lost production and parts cost.
sent via mobile devices, further improving response times. With the successful implementation of this solution, P&H is
Mines are already benefitting from this technology. An operator now looking to apply condition monitoring techniques to all equip-
at a coal mine in Wyoming recently reported a problem with a shov- ment, including drills and draglines. P&H currently monitors more
el drive, and a P&H technical support specialist remotely accessed than 1 billion records a day and plans to increase this by over a fac-
the real-time performance of the shovel and the historical data in tor of 10 in the next two years. As a secondary benefit P&H’s R&D
Aspen InfoPlus.21 to confirm the drive was faulty. This informa- group is using the data to improve its next generation of shovels.

36 E&MJ • MAY 2012 www.e-mj.com

 ELECTRIC SHOVELS

Table 2: Estimated Productivity Comparison
ring in the two earlier periods. Combined
with the higher productivities experienced
from the AC shovel, the cost per BCM is
further reduced significantly.
Overall Productivity
It is difficult to compare productivities
based strictly on the time study data
because shovels do not experience the
same levels of truck presentation. Table 2
compares the expected overall production
between a P&H 4100XPC DC and a
4100XPC AC based on double-side load-
ing of the trucks and some of the other
parameters observed during the time stud-
ies conducted of both shovels. An operat-
ing efficiency of 83% (50 minute-hour)
will be used and a haul truck capacity of
290 mt is assumed for this estimate (with
a 3-pass load).
Based on the cycle times observed, the
4100XPC AC would have an estimated pro-
ductivity advantage of 11.2% over the
4100XPC DC in similar operating condi-
tions. This is currently higher than project-
ed by P&H but a target long-term advantage
of 5% to 6% should be very achievable.
As projected by P&H during the design
phase of the 4100XPC AC shovel and as
validated by this study, the AC-powered
shovel offers some significant cost and pro-
ductivity advantages over the DC-powered
shovel. The AC shovel is achieving a 1% to
2% better availability (over the same peri-
od); a faster cycle time equating to a high-
er productivity; and, projected lower oper-
ating costs. Considering all of these fac-
tors, the 4100XPC AC is expected to have
a positive long-term impact on both pro-
duction and cost per ton/BCM moved at
the mine.
Berkhimer is a senior applications engineer
for P&H Mining Equipment. This article
was adapted from a presentation he made
at the Haulage & Loading conference,
which was held during May 2011 in
Phoenix, Arizona, USA.

Siemens Improves Shovel Safety
Siemens has developed several new enhancements related to the
electrics on rope shovels. “Periodically we review products from
different vantage points such as safety, productivity, efficiency and
sustainability,” said Daniel Robertson, business development man-
ager, Siemens, who specializes in software and controls for electric
shovels. “From a safety perspective, Siemens identified several
areas for improvement.”
As an example, a new design layout relocates the DC link and
line voltage transducers from a frequently accessed low voltage
control area to a separate compartment. Technicians can now
access the low voltage control area systems without requiring high-
voltage access permits. For some of the more common mainte-
nance routines, such as switching breakers on and off, technicians
will now have safe, easy access.
A recent Caterpillar shovel order, which was headed to
Australia in January, included an option for a DC link grounding
switch. The device provides the means to physically connect both
terminals of the DC link to ground before maintenance technicians
enter the cabinet. By grounding the DC link before entry, service
personnel can avoid the potential hazard from residual voltage.
“The normal shutdown sequence uses the over-voltage choppers
to rapidly discharge the system down to 50 volts,” Robertson said.
“From that point, bleed resistors continue to bring the voltage
down to zero within 5 minutes. There was, however, no provision
to positively ensure zero potential.”
Standard electrical safety practices were used to manually
ground the system, but these methods require human intervention,
and the use of PPE. “This process has now been automated so the
system is grounded before the cabinet is opened,” Robertson said.
The risk has been engineered out of the system. The grounding
switch is located within the inverter cabinet, but is actuated exter-
nally and includes a sight window so the ground connections can
be physically verified in addition to status indicators.
Another new option gives technicians the ability to test the
ground fault circuit. The native ground fault circuit involves a volt-
age divider across the DC link with one point tied to ground,
Robertson explained. The presence of a ground, and its location,
is determined based on the voltage across the ground fault capac-
itor. “This circuit is still in place, but we have augmented it with a
method to test the circuit.” Siemens developed a ground fault test
circuit where technicians can switch in a ground and see that the
system is responding to it and it shuts down accordingly.
Siemens has also added new signage for each cabinet cover.
Previously, simple signage was used to indicate the presence of
high voltage. The new signage, inspired by Australian mine safe-
ty standards, provide an indication of high voltage, as well as
detailed information indicating the voltage level present behind
each bolted cover.
Another future improvement aims to reduce any fall hazard by
moving components, originally located in compartments on top of
the electrical cabinet to a safer location. These cabinets are taller
than 6 ft, which requires maintenance technicians to use a ladder to
access the components on top. “We made some space available so
that we could move these components to a lower position where they
could be easily accessed without the use of a ladder,” Robertson
said. In addition to safety, Robertson explained, the new design also
improves repair times because the technicians wouldn’t have to
locate a ladder and harness and work in a restricted environment.
These enhancements will be available for all new Cat shovel
orders and Siemens is pursuing aftermarket rebuild kits for exist-
ing equipment. The kits will be available by late 2012.

38 E&MJ • MAY 2012 www.e-mj.com

 MINE POWER
Minimizing Arc-flash Danger in
Mining Operations
Capable of producing tremendous heat, explosive impact and molten shrapnel,
arc-flash incidents are the leading cause of nonfatal electrical injuries. They may
not be totally preventable, but there are ways to protect workers and equipment
against their damaging forces.
By Tyler Klassen, P.E.
Current-limiting fuses and circuit breakers, as shown here, can help reduce arc-flash energy, but have critical
response-time deficiencies in offering complete protection. For a higher level of arc-flash protection, faster-acting
arc-flash relays should be installed where necessary.
Unfortunately, not enough attention has
been paid to arc-flash hazards in mining,
and even the regulatory agencies have
not yet fully responded to the danger.
This article discusses what an arc flash
is, what causes it, and some of the meas-
ures that can be taken to reduce the dan-
gers of arc flash in aboveground and
underground mining operations.
An arc flash can occur when an ener-
gized phase conductor is exposed to
1Kowalski-Trakofler, K.M. Non-contact Electric Arc-
induced Injuries in the Mining Industry: A Multi-
disciplinary Approach. Presented at the 2004 IEEE IAS
Electrical Safety Workshop.
40 E&MJ • MAY 2012
the resistance of the air gap is lowered,
such as when contaminated by dust or
moisture. When this happens, the air in
the gap becomes plasma consisting of
ionized air and vaporized metal.
An arc flash releases large amounts
of energy that can kill or severely injure
anyone exposed (See p. 42). It produces
temperatures up to 35,000°F (hotter
than the surface of the sun) that can
expose a person nearby to heat loads of
120 cal/cm2 or more—sufficient to char
skin and set clothing on fire. It can pro-
duce a blast wave with pressures up to
2,000 lb/ft2 (enough to throw a person
across a room or collapse lungs), eject
bits of molten metal and other debris at
ballistic speeds, and produce a sound
level of 140 dB (equivalent to a gunshot)
or more. The vaporized metal quickly
turns into a cloud of hot metallic oxides,
which can burn themselves into nearby
insulators.
According to the NIOSH Office of
Mine Safety and Health Research, arc-
flash burns are the leading cause of non-
fatal electrical injuries, accounting for
35% of lost work days due to electrical
injuries in mining between 1990 and
another phase or ground conductor, with 20011, averaging 21 lost work days per
enough voltage differential to overcome incident and accounting for more than
the resistance of the air gap between the 12,000 lost work days during the 11-year
conductors. An arc flash also can occur if period of the study.
Incident Energy,
(cal/cm2) Results/Example
0.0033 Amount of energy the sun produces in 0.1 sec. on the ground’s surface at
the equator.
1 Equivalent to a fingertip exposed to a cigarette lighter flame for one second.
1.2 Amount of energy that will instantly cause second-degree burns to bare skin.
4 Amount of energy that will instantly ignite a cotton shirt.
8 Amount of energy that will instantly cause incurable third-degree burns to
bare skin.
Table 1: Effect of arc-flash radiation.
www.e-mj.com
 MINE POWER

Overcurrent device Opening time at 8 Opening time at 20 tect the people and minimize the possi-
x rating x rating bility and effects of the arc flash itself.
Protecting the people involves normal
Current-limiting fusesA 0.1 to 1 s 8.3 ms or less
safety precautions and, importantly, the
Molded case circuit breakers 5-8 s <10 msB
use of personal protective equipment
under 600 A
(PPE) required by NFPA 70E, including
Molded case circuits breaker Depends on trip settings: <25 msB
such things as flame-resistant clothing/
over 600 A over 5 to 20 s
undergarments, flash suits, flash suit
Large air power breakers Depends on trip settings: <50 ms=3 cyclesB
hoods, arc-rated gloves and more.
over 5 to 20 s
Limiting arc energy—While protecting
Medium voltage breakersC Depends on trip settings: <100 ms=6 cycles
personnel from arc flash with PPE is both
over 5 to 20 s
appropriate and necessary, the problem
ACurrent-limiting fuses also reduce the fault current.
should be approached from the other
BWhen equipped with instantaneous trip units. If short delay trips are used for coordination,
time may exceed 0.2 seconds.
side as well: minimize the danger of arc
CPlus relay time. flash by eliminating the chance of having
one in the first place, or at least mini-
Table 2: Typical opening times of overcurrent protective devices. mizing the amount of energy released.
The energy released in an arc flash is
Most of the injury due to an arc flash protect against arc flash, and following determined by the square of the current
is caused by the infrared radiation it pro- NFPA 70E is a good way to ensure safe- flow and the duration of the arc (I²t) in
duces. This is measured in terms of the ty. NFPA 70E applies to all electrical ampere squared seconds, so limiting
energy that reaches the person exposed installations in the mining industry either the current or duration of an arc
to it, in calories per square centimeter. except in underground mines, for self- will limit the damage it can do. One way
Table 1 shows the effect of various levels propelled mobile surface mining machin- to do this is with fast-acting circuit
of incident energy. ery and trailing cables. Even in those breakers or current-limiting fuses in the
An arc flash also generates smoke and areas not required by law to comply with feed to a panel. These overcurrent pro-
toxic fumes from vaporized copper and NFPA 70E, MSHA strongly recommends tective devices react quickly to limit the
other materials—fumes that cause health following its precautions. duration of an arc.
problem by themselves. And while these Under short-circuit conditions (a 20x
should eventually be removed by the Protecting Against Arc Flash overcurrent condition) a current-limiting
mine’s ventilation system, if the arc flash Protection against arc-flash dangers can fuse can clear a fault in less than half an
takes out a substation there’s a chance it be approached from two directions: pro- AC cycle (8.3 ms), as shown in Figure 1.
will disable the ventilation system at the
same time.
Arc flash is possible on any system
with voltages of 480 volts or more. In
general, it involves exposing a live con-
ductor to either another phase or ground.
Such exposure could be caused by cable
or equipment damage, a misplaced volt-
meter probe, improper installation,
dropped tools or even the accumulation
of conductive dust on insulators. It is
worth noting that in a typical mining
electrical distribution system, a neutral-
grounding resistor is used to limit
ground-fault current, and as such will
prevent an arc flash from occurring on a
phase-to-ground fault.
While some industries have strict reg-
ulations concerning arc-flash hazards,
others do not. In manufacturing and gen-
eral industry, for example, OSHA requires
compliance with NFPA 70E, Standard for
Electrical Safety in the Workplace, but
these regulations do not apply in mining.
Instead, MSHA requires compliance with
CFR 30 56 subpart K (Electricity), but
does not specifically cover arc flash. Yet,
for obvious reasons, mine operators must Figure 1: Current limitation with a current limiting fuse.

www.e-mj.com MAY 2012 • E&MJ 41

 MINE POWER

The gray area shows the energy allowed
through by a conventional overcurrent
protective device, while the green area
shows the energy allowed through by a
current-limiting one. An arc does not
draw as much current as a bolted fault,
but even with an 8x overcurrent a cur-
rent-limiting fuse can open between 0.1
and 1 second, and some current-limiting
circuit breakers in less than 10 msec.
Table 2 compares the clearing times of
some available overcurrent protective
devices Note that current-limiting fuses
operate more quickly than current-limit-
ing circuit breakers and are thus more
effectively limit delivered I²t.
Arc-flash relays—While current-limit-
ing fuses and circuit breakers can help
reduce arc-flash energy, they have a sig-
nificant drawback; because the earliest
moments of an arc flash may draw only a
fraction of the current of a short circuit,
overcurrent protective devices cannot
distinguish them from a typical inrush
current, and must wait until the current
increases—during which time significant
harm can be done to nearby personnel. If
the current is low enough, an arc can
develop and remain fairly stable for some
time—seconds or longer—before it draws
enough current to trip the overcurrent
protective device.
In contrast, an arc-flash relay (Figure
2) uses light sensors (either point type or
distributed fiber optic type) to detect light
from an emerging arc flash and send a
signal to the relay. The relay will then
send a signal to the trip coil on the break-
er feeding the panel. The arc-flash relay is
designed to operate extremely quickly.
The relay and sensors can be used
in transformer enclosures, substations,
switchgear and motor control centers. Arc-
flash relays are compact and can easily fit
in retrofit projects and new switchgear with
little or no re-configuration.
Typically, the light sensors are set to
detect light at 10,000 lux (equivalent to

Arc-flash Incidents
Details of several arc-flash incidents that have occurred at var- • Purchase and use of PPE.
ious mining operations: • Putting arc flash labels on electrical equipment.

Oklahoma granite mine2 New Mexico copper mine4

On October 10, 2010, a contract electrical apprentice, with two
assistants, was installing ground-fault indicator lights at the
main 480-volt circuit breaker in a motor control center at a sur-
face granite mine in Oklahoma. The breaker had been turned
off but the fuses at the nearby transformer station had not been
removed and the input side of the main breaker was still ener-
gized. The breaker itself was connected in an unusual way, with
input cables entering the cabinet from the top, down to the
inside floor of the cabinet and then back up to the lugs on the
breaker, which were on the bottom of the breaker rather than
the usual top entry.
At 12:55 p.m. an arc flash occurred. The three men were
able to leave the motor control center trailer; they were trans-
ported to a hospital, where the contract electrical apprentice
died two days later.
Investigation showed the root cause of the accident was fail-
ure to follow lock-out and tag-out policies, which, if followed,
would have ensured the breaker was de-energized prior to work-
ing on it.
Australian gold mine3
In June 2008, at a large open-pit gold mine in Australia, an arc
flash occurred while a 750-kW crusher was being started, caus-
ing a 3,300-volt vacuum contactor to be partly ejected from the
switchboard. No one was in the substation at the time, and
there were no injuries. The cause of the accident was deter-
mined to be poor contact of trunk “fingers” to a busbar con-
nector, which caused an arc resulting in a 20-kA fault.
A large number of actions were implemented as a result.
Among them were:
• Completion of an arc-flash study and identification of high
arc-flash risk equipment.
• Reduction of arc-flash energy: reducing fault levels by open-
ing bus ties and reducing the operating times of the protec-
tive devices.
• Purchase of power-system analysis software and training staff
in its use.
On June 7, 1997, an arc flash occurred at an open-pit copper mine
in New Mexico, resulting in the death of an electrical supervisor
who had been testing a 480-volt circuit breaker. Two mine super-
visors received non-fatal injuries to the face, hands and arms.
The breaker in question was mounted in a motor control cen-
ter and received power from a 750-kVA transformer. The break-
er was improperly mounted, with bolts that were inserted
though the back of the enclosure and nuts that protruded from
the front of the breaker within 1/4 in. of the energized termi-
nals. No terminal cover was in place at the time of the accident.
Investigation determined that while testing for an electrical
problem using a portable voltmeter the electrical supervisor
(who was not wearing protective clothing) inadvertently touched
a probe to both a grounded mounting nut and an energized ter-
minal on the breaker. The resulting arc flash ignited his cloth-
ing and he received second degree burns over 75% of his body.
He died the next day.
The company was subsequently cited for multiple violations.
Australian copper mine5
On November 24, 2009, an electrician at a copper mine in
Australia was working to clear a frame ground fault in an elec-
trical substation. Over time, dust had combined with moisture
in the air to create a conductive path between energized and
grounded parts. While the electrician was wiping inside the
panel an arc flash occurred; the electrician received burns to
one hand, one thigh and his face. The panel had not been de-
energized and the electrician was not wearing PPE.
2MSHA accident investigation report, available at www.msha.gov/FATALS/
2010/FTL10m16.asp.
3New South Wales Government Industry & Investment Safety Alert, available at
/www.dpi.nsw.gov.au/__data/assets/pdf_file/0007/390355/SA11-04-Electrician-
receives-arc-flash-burns.pdf.
4MSHA accident investigation report, available at www.msha.gov/fatals/1997/
ftl97m34.htm.
5Xstrata Safety Alert, Ref. FRM-118003, incident no. 122950, available at
www.minex.org.nz/documents/Safety Alert HV Cubicle Arc Flash.pdf.

42 E&MJ • MAY 2012 www.e-mj.com

 MINE POWER
Figure 2: An arc-flash relay.
about 10% of the smallest arc). In some
relays the lux tripping level can be user-
adjusted to prevent nuisance tripping.
Certain arc-flash relays can be equipped
with current transformers on each phase.
If high levels of light are detected (such
as from opening a panel in direct sun-
light or from a nearby arc welder), but no
corresponding increase in current is
detected, then the unit does not trip.
Enough sensors should be used to
cover the application thoroughly, and
they are typically placed near vertical and
horizontal bus bars. In addition to point
sensors, most relays also accept input
from a fiber optic cable that will detect a
flash of light anywhere along its length.
Such cables range from 26 to 65 ft (8 to
20 m) long, and in some cases they can
interconnect to make even longer
lengths. Use long lengths with caution,
however, because the fiber optic cable
may attenuate the light arriving at the
detector end, delaying detection.
Figure 3 shows how damage from an
arc flash increases with time. Clearly, the
faster an arc is detected, the better.
Among the arc-flash relays on the mar-
ket, detection times vary from less than 1
ms to about 9 ms. These reaction times
are a function of the relay’s light sensor
input sampling scheme and the design of
its trip output circuit. For example, the
relay’s microprocessor’s sampling rate of
six light sensors might be one sample
every 125 microseconds (8 kHz). The
relay’s microprocessor may be pro-
grammed to count three samples above
the threshold value before tripping. The
electronic output takes time to turn on,
say 200 microseconds for an insulated
gate bipolar transistor. Add these times
44 E&MJ • MAY 2012
together and the total detection time in
this example is <1 ms. Typically the
breaker will take an additional 30-35 ms
to open after it receives the trip signal.
An arc-flash relay requires that the
main breaker have a relay trip coil, so in
some cases it may be necessary to replace
the main breaker when the relay is
installed. In addition, the main breaker
should receive regular maintenance—
generally by cycling it off and on every six
to 12 months—to help keep the mecha-
nism from seizing up. Some arc-flash
relays have a circuit-breaker fail function;
if the breaker does not trip after a time
delay of 50 to 150 milliseconds and the
arc flash condition is still present, the
unit will trip the upstream supply breaker.
Reliability is essential. Select an arc-
flash relay that offers a redundant trip fea-
ture that will still be able to trip the break-
er if the microprocessor does not. Any fail-
ure in the primary path will activate a solid-
Figure 3: Damage caused by arc-flash incident.
state shunt-trip relay if a sensor input is
above threshold. This feature is also useful
upon startup after power has been off (as
happens after a planned maintenance shut
down) since a microprocessor requires start
up time before it starts scanning sensors.
In contrast, a solid-state device can detect
an arc and trip in as few as 2 ms.
To further improve reliability, most arc-
flash relays have some degree of internal
health monitoring, but designs vary con-
siderably. Ideally, the relay will check the
health of each component in the path from
the light sensor to the trip output contact.
The relay should keep event logs that can
be accessed by maintenance personnel.
Several arc-flash relays allow multiple
relays to be connected. This can be use-
ful if the motor control center does not
have a local circuit breaker. In case of an
arc flash, the relay that detected the fault
can send the trip signal to a relay locat-
ed in the switchgear upstream. A network
of relays also makes it possible to divide
protection in zones. For these applica-
tions most relays come with easy-to-use
configuration software.
Arc flashes are dangerous events; they
can kill or injure people, and damage or
destroy equipment. In an underground
mine, they can start fires that could even-
tually fill the mine with hazardous fumes
and trigger secondary explosions. Through
the application of arc-flash relays, it’s pos-
sible to contain arc flashes inside cabinets,
minimize the potential for injury, safeguard
equipment, and avoid MSHA fines.
Tyler Klassen is sales engineering man-
ager for Littelfuse Startco, Saskatoon,
Saskatchewan, Canada.
www.e-mj.com
 PDAC 2012 ROUNDUP
Prospectors and Developers Converge
on Toronto
Investment opportunities and exploration service providers attract a global following
By Steve Fiscor, Editor-in-Chief
More than 30,000 attended the 2012 PDAC in Toronto.
The Prospectors & Developers Associa-
tion of Canada (PDAC) held its annual
meeting in early March in Toronto. It is the
premier event to learn about new discover-
ies and tools and techniques explorers use
to make those finds. One of the largest
mining-related gatherings, organizers said
that more than 30,000 people attended
this year’s event with 25% coming from
outside of Canada. That tops last year’s fig-
ures of 27,000 and 22,000 in 2010.
PDAC recognized several individuals
and organizations for outstanding contribu-
tions to and excellence in the minerals
industry. The recipients were honored at an
evening event March 5, 2012, at the
Fairmont Royal York Hotel.
The annual PDAC exhibition and con-
ference can really be subdivided into four
areas: the Investor’s Exchange, the Trade
Show, the Technical Sessions and the Core
Shack. Both halls and the technical ses-
sions were shoulder-to-shoulder at times
and the Core Shack was bustling with
activity too. Nearly 600 mining companies
exhibited in the Investor’s Exchange, pro-
moting themselves to potential investors,
while 400 companies showcased equip-
ment and services in the Trade Show. At
the Core Shack, 60 companies were on
46 E&MJ • MAY 2012
hand with core samples and investors were
scrutinizing the specimens. At the same
time, more than 150 experts gave presen-
tations related to prospecting, exploration
and project development.
Toronto is arguably the best place to
host a mining investment conference and
in many ways PDAC is an industry leader.
The Toronto Stock Exchange provides most
of the mining-related investment capital. In
addition to mining financiers, many mining
companies and consulting firms call
Toronto home. All of this activity during a
few days creates a very healthy dynamic.
PDAC Outstanding
Achievement Awards
PDAC awarded Gerald Panneton, president
and CEO of Detour Gold Corp., with the Bill
Dennis Award for prospecting success for a
Canadian mineral discovery. He led a team
that advanced the Detour Lake property
in northern Ontario into a world-class,
low-grade, high tonnage gold deposit.
According to the association, Panneton
spearheaded the initial acquisition and
subsequent evaluation of what is now con-
sidered Canada’s largest undeveloped gold
deposit. Recognizing the potential of
Detour Lake in 2006, Panneton commis-
sioned a large-scale drilling and re-sam-
pling program. By the end of 2010, the
project had proven and probable open-pit
reserves of 14.9 million oz of gold. Detour
Gold Corp. is now moving ahead with the
development of the project.
PDAC selected Osisko Mining Corp. for
the Viola R. MacMillan Award after suc-
cessfully developing and bringing into pro-
duction the company’s Canadian Malartic
gold property in Quebec’s Abitibi gold belt.
In November 2004, Osisko acquired the
property, which had produced some 5 mil-
lion oz of gold from 1935 to 1983 from
four mines. A detailed compilation of the
extensive historical database was followed
by the start of a major drilling program in
March 2005. The mine began commercial
production May 19, 2011, and currently
has an estimated 10.71 million oz in
proven and probable reserves. According to
the association, the company has been
exemplary in its attention to community
concerns and involvement throughout the
development of the open-pit mine, which
included the resettlement of more than
150 homes and the construction of five
institutional buildings. PDAC also acknowl-
edged that the collaboration of residents
and the town council had been crucial to
the success of the project as ‘best in class.’
The Core Shack allows investors and geologists to in-
spect samples.
www.e-mj.com
 PDAC 2012 ROUNDUP
David Giles, director of exploration for
Mexican-based Fresnillo plc, received the
Thayer Lindsley Award for mineral discover-
ies outside Canada. He led the Peñoles and
Fresnillo Plc exploration teams that have
seen considerable success in the number of
their new economic gold and silver deposit
finds in Mexico and Latin America. Most
notable of these was the discovery of a new
vein system in the Fresnillo district, leading
to the opening of the Saucito mine in 2011
and consolidating Fresnillo as the largest
silver district in the world.
The 2012 Distinguished Service Award
was presented to Deborah McCombe. A
long time volunteer and supporter of
PDAC, she served as the association’s
director from 1996 to 2011. Currently, she
is executive vice president, business devel-
opment for Roscoe Postle & Associates.
The Mining Association of Canada
received the Environmental and Social
Responsibility Award for its flagship initia-
tive, Towards Sustainable Mining (TSM).
The Skookum Jim Award for Aboriginal
Achievement was presented to the NUNA
Group of Companies.
The Mine Training Society (MTS)
received a Special Achievement Award for
its work with Aboriginal people in the
Northwest Territories.
Using Spectroscopy to
Address Declining Yields
Today’s copper and gold mining production
requires robust new technologies to
increase declining yields. More metallur-
gists are turning to near-infrared spec-
troscopy to identify new deposits as well as
to rapidly characterize and quantify miner-
al assemblages, both providing a useful
exploration vector and assisting in resource
evaluation and reserve definition.
Dr. Brian Curtiss, chief technology offi-
cer and co-founder of ASD, a global leader
in high-performance analytical instrumen-
tation solutions, discussed some real-world
analysis applications at PDAC 2012.
ASD’s TerraSpec 4 line of mineral ana-
lyzers offers a rapid rate of data analysis
and the ability to process more data in a
given time. The use of NIR in mining and
in particular, the launch of the TerraSpec,
is creating a buzz among mine operators.
“We have a line of instruments
designed to not only analyze the elemental
abundance of ore, but the mineral abun-
dance,” Curtiss said. “We have foundation
applications in exploration and production.
In exploration, the alteration minerals are
48 E&MJ • MAY 2012
used to indicate potential deposits.
Alteration minerals form halos patterns
around the deposits. If you are using the
alteration minerals, you can see that you
are getting closer to a deposit from a much
greater distance than if you were using an
elemental anomaly.”
On the production side, the interest
shifts away from alteration minerals and
patterns to worrying about the cost and the
ability to recover the metals from the ore.
At a copper heap leach operation as an
example, the abundance of clays, particu-
larly swelling clays that can destabilize an
agglomerate, or other acid consuming
minerals influence the costs and the abil-
ity to extract the copper, Curtiss explained.
“Having knowledge of these factors, you
can adjust the processes to better deal
with the properties of the ore,” Cutiss
said. A number of companies are using
this technology to look at cuttings from
blastholes to analyze properties and meas-
ure acid consumption.
In copper ore concentration, some min-
erals, such as talc, float along with the sul-
phides. If the mill could manage the abun-
dance of talc, it could keep it below a
threshold where it could add chemicals to
suppress the talc to keep the grade of the
concentrate higher, Curtiss explained.
The technology has been around since
the 1990s, but the TerraSpec 4 has much
higher sensitivities. “The higher sensitivi-
ties allow users to look at dark rocks, which
were problematic in the past,” Curtiss said.
“The other major change was with the soft-
Geosoft’s Oasis montaj allows users to link vast data sets.
ware. We now have software that can deal
with thousands of spectra during a core
logging program. It processes the spectra
in bulk and it provides visualization tools,
not just for a single hole, but for across a
series of holes. On the production side, we
have software that rapidly converts the
measurements from the instrument into a
quantitative number that can be used to
manage the ore processing.”
Managing Advanced Earth
Science Projects
On the trade show floor, Geosoft was
demonstrating the latest enhancements
within its Oasis montaj and mapping soft-
ware. The software system allows users to
work efficiently with one software platform.
It provides a scalable environment for effi-
ciently importing, viewing, modeling, ana-
lyzing and sharing large volume geophysi-
cal, geochemical and geological data, all
within one integrated environment. “What
we have in common as geologists, geo-
physicists, and geochemists working in the
exploration industry is that we are all
dealing with a lot of data sets,” said
Dima Amine, technical analyst, Geosoft.
“Working with geochemistry data sets,
assay results, drill hole information, air-
borne surveys, magnetic surveys, etc., we
face a lot of challenges organizing the data
sets.” One of the biggest challenges, she
explained, is the volume of data. Another
challenge is multi-disciplinary data sets.
In addition to Oasis montaj, Geosoft
gave a preview of what’s exploration pro-
www.e-mj.com
 PDAC 2012 ROUNDUP
The LS600 uses sonic drilling to provide accurate samples from unconsolidated materials.
fessional can expect to see in 2012 with a
continued focus on enriched 3-D visualiza-
tion and analysis of subsurface structures.
Other demos included Geosoft’s VOXI
Earth Modeling service, which enables geo-
scientists to create 3-D models of the earth
by applying inversion techniques to 2-D
magnetic or gravity data.
Equipment for Tough
Drilling Conditions
Boart Longyear is the largest provider of
equipment and services in the global
exploration space. The company’s drilling
services business is the largest as far as
size, rig count and revenue, explained
Kevin Tomaszewski, director of global prod-
uct management at Boart Longyear. “In
products, we share the same strength,”
Tomaszewski said. “Product innovation is
our top priority, focusing on safety and pro-
ductivity. We take intellectual property and
trademarks very seriously. In 2011, we
filed 210 patents and were awarded 89.
“Our vision is to continue to grow
and continue to take market share,”
Tomaszewski said. “We had a lot of suc-
cess in 2011 and we believe we will see
that again in 2012. We plan on launching
up to eight new products this year.”
During PDAC 2012, Boart Longyear
discussed three areas for growth: sonic
drilling, diamond core bits and dewatering
services. The company decided to use this
year’s PDAC event to launch the LS600
sonic rig, support vehicle and sonic tooling.
The system is ideal for drilling and sam-
pling unconsolidated materials. It allows
50 E&MJ • MAY 2012
drillers to gather continuous and undis-
turbed core samples in varying and diffi-
cult ground formations. According to Boart
Longyear, the LS600 rig delivers more
accurate core sampling, less than 1% hole
deviation, reduced waste, and faster pene-
tration than conventional methods.
The company’s sonic program was
developed over the last 20 years through
the Boart Longyear Drilling Services divi-
sion. “We have the largest sonic drilling
fleet in the world and the most advanced
technology,” Tomaszewski said. “We also
have expert drillers. That’s one of the rea-
sons we never released this as a product
line and kept it close as core competency.
Today, there are more entrants trying to get
it right. We believe this is the right time to
expand and commercialize the service.”
The technology incorporates sonic fre-
quencies that match the resonant energy of
the ground, allowing the core barrel to eas-
ily advance in unconsolidated and difficult
overburden formations. During drilling,
boreholes are cased continuously by first
allowing the core barrel to advance into the
substrate, followed by the outer casing.
This technique allows for the accurate
measurement of continuous in-situ (undis-
turbed) core samples, even in varying
ground conditions.
The LS600 would work well for sampling
tailings piles and heap leach pads. Drillers
can gather accurate core samples twice as
fast with Sonic technology and reduce waste
by up to 80%, because no fluid, air or mud
is needed. The LS600 can reach a drilling
depth of up to 182 m (600 ft).
The system consists of a sonic head,
the rig, and a support vehicle. The key
component is the sonic head. Inside the
sonic head, an oscillator (two large rotating
weights) creates a resonant energy, which
is transferred to a 150-Hz frequency. An
innovative air spring system protects the rig
from the extreme vibrations and redirects
the energy down the drill string to the bit
face. That combined with slow rotation of
the drill string from the rig, allows exces-
sive speed of core recovery. On top of that,
the driller is managing the resonant energy
for maximum penetration.
In traditional coring work, a drill rod is
advanced with a core barrel. An overshot
retrieves the core barrel. With the Sonic
system, the core barrel is driven down and
collects a sample, then a casing overrides
it. No fluid is needed. The casing main-
tains hole integrity and prevents cross con-
tamination. The drillers retrieve the sample
(core barrel) and send it back down again.
Samples can be gathered in three ways, it
can be bagged (common), a carbonate
liner can be used for more fluid samples,
or a split barrel could be used for clays.
The pullback is 7.5 tons and the maximum
depth for a 6-inch head is 600 ft.
This process would be best compared
with an auger or a probe. An auger, howev-
er, could deviate 10 ft on a 100-ft string,
while a rotary drill could deviate as much as
60 ft over a 300-ft string. Augers can cre-
ate a mess as it slings mud in sloppy con-
ditions. The Sonic drilling process is well-
contained, according Boart Longyear, and it
keeps the job site clean and compliant.
The combination of the frequency with
the rotation allows the Sonic drill to
advance two times faster while recovering
the samples. “The system provides superior
information on unconsolidated, difficult
ground conditions, such as sands, gravels
and clays, bringing them up in their natural
form,” Tomaszewski said. “You cannot drill
these unconsolidated materials by conven-
tional methods without mixing or destroying
the sample. Reverse circulation would
destroy it and an auger would mix it. Push
probes are an option in this material, but
probes can’t push through boulders.” The
Sonic core samples range from 3 to 8 inch-
es and boreholes sizes up to 12 inches.
Boart Longyear offers the Sonic Head
Service Program, which provides a replace-
ment head for the LS600 in the case that
repair is required. The Sonic Head has
advanced proprietary technology and Boart
Longyear wants to assure it is working for
www.e-mj.com
PA I D A D V E R T I S E M E N T
 PDAC 2012 ROUNDUP
their customers. “When the drilling crews
encounter a problem, Boart Longyear will
be prepared to quickly swap out the sonic
heads,” Tomaszewki said.
Bits Engineered for the
Hardest Conditions
Last year, readers might recall that Boart
Longyear introduced the UMX Diamond
Coring Bits. It introduced three bits: the
SSUMX, 07UMX and 09UMX. At PDAC
2012, they unveiled the 10UMX, which
has the “freest-cutting matrix” available,
enabling it to penetrate the hardest forma-
tions, according to the company. “The
10UMX diamond coring bit completes the
product line, which provides a bit for any
type of ground condition encountered,”
said Matt Baird, global product manager
for Boart Longyear. “We have tested these
bits in all regions and take great pride in
providing drillers the most advanced line of
diamond bits in the industry to maximize
their productivity.”
UMX bits use advanced metallurgical
formulas to provide increased penetration
capabilities. Optimized life translates into
less tripping and increased productivity.
The bits rely on the Stage waterway
design. The geometry of these windows
sustains the integrity of the bit through the
entire life of the bit, allowing for a variety
of crown heights. A Twin-Taper design dra-
matically improves surface flushing, forc-
ing debris through the windows while
keeping the bit face clear and reinforcing
the inner diameter.
“The UMX bits have received a lot of
recognition within the industry for their
PDAC Field Safety
Pocket Guide
The PDAC’s new Field Safety Pocket
Guide is a valuable and handy informa-
tion resource for field workers in the
mineral exploration industry. Water-
proof, tear-resistant and designed to fit
easily in a high vis jacket, the guide
provides useful information on safe
fieldwork practices. The goal of the
Field Safety Pocket Guide is to
increase safety awareness in the field
by providing useful information on the
risks, hazards and dangerous situations
inherent in exploration work. Order
your copy of the guide today—the first
five copies are free. You can also down-
load the Pocket Guide in English,
French and Spanish.
52 E&MJ • MAY 2012
UMX diamond coring bits.
performance,” said Baird. “These bits were
designed for extreme performance, based
on the Boart Longyear patented ultra
matrix technology, which uses large syn-
thetic diamonds. The versatility allows
them to operate in varying ground condi-
tions. The 10UMX was specially designed
for the toughest ground formations.”
All of the UMX bits are offered in three
crown heights: 12 mm, 16 mm and 25
mm. All of these bits offer Twin Taper win-
dows to flush cuttings from the hole. The
protrusions on the face of the bit, which is
the Razorcut face design, allow these bits
to track in the hole and maintain balance.
Dewatering to Reach
Deep Targets
Last fall, Boart Longyear announced an
expansion of its Mine Water Services. Pits
are getting deeper and more miners are
heading underground. Mine dewatering is
big business these days. North America, as
an example, has expanded its underground
operations in the last 10 years. “Often-
times, water has to be removed to access
those deeper targets,” said Dale Johnson,
operations director for global drilling serv-
ices, Boart Longyear. “Our Mine Water
Services segment focuses on near mine
water control, which includes a number of
different types of wells.”
Dewatering is not new to Boart
Longyear. The company entered the dewa-
tering business more than 25 years ago as
a decentralized service that was provided
by Lang Exploratory Drilling, Johnson
explained. “The business has now been
centralized within Boart Longyear and,
even though the industry no longer sees
the name, the group and the expertise still
exists and they are the core of the exten-
sion of this business globally,” Johnson
said. “Typically the wells that we will install
would be water table monitoring from the
beginning of mine life through closure.
Then we drill wells for production water for
mining and processing. And as the under-
ground operations advance, we can provide
boreholes for underground utilities to sup-
ply bulk materials, such as gravel and con-
crete. All of this requires a larger diameter
deep hole and the expertise to keep them
on target.”
As far as dewatering, Boart Longyear
honed its craft in the Carlin Trend “That’s
where the expertise was developed and
now we are expanding into Peru, West
Africa, South Africa, and West Australia
[Pilbara],” Johnson said.
Boart Longyear approaches dewatering
projects in three phases: Phase 1 (28 inch-
es), Phase 2 (48 inches), and Phase 3 (60
inches). For Phase I work, they would use
the T130A rig. Phase 2 would require the
LR140A. Phase 3 would start with LR300
then advance to LR500 and LR700 rigs.
“The T130 is a versatile rig,” Johnson
said. “It can be used for RC exploration
work, water wells, and up to 20-inch bore-
holes. We build wells up to 14- to15-inch
completed diameters. We expect the next
phase to be much larger, moving into the
48-inch range, completing the holes in the
20- to 24-inch range. The depth of holes
we are seeing is in the 300-m range.”
The second phase drill is a Boart
Longyear drill produced in Salt Lake City.
“The 140A was the ‘utility’ drill used for
the Carlin Trend. Next step is LR300. We
are building an LR500.” The product des-
ignation is the pull-back capacity in tons.
Single pass drilling is important for this
process. Drillers want to be in the hole for
a minimum amount of time to maintain the
integrity of the hole. The quality of wells,
Johnson explained, depends on the ability
to put large tooling in the holes and drill
straight holes.
www.e-mj.com
 CRUSHERS
Beating Crusher Wear Challenges
Developments in the metallurgy of crusher wear parts are helping operators reduce
the impact of wear on their operations
By Simon Walker, European Editor
Crusher wear-parts manufacturers stress that each operation has to work out the best solution to crusher opera-
tion for their own individual circumstances—which may well change over time. Suppliers are developing
advanced materials, quicker parts changeout and expanded customization services as new avenues to improved
crusher performance.
From loading run-of-mine ore to han-
dling concentrates for storage or ship-
ment, managing wear is a constant bat-
tle. Mines that work soft, non-abrasive
ores are few and far between, so for the
vast majority of operations, keeping
wear under control is a significant cost
item in the production budget. Get it
wrong, and the financial implications
can be severe: hence the incentive to
clad high-wear components with mate-
rials that can both withstand continu-
ous abrasion and protect machines and
materials-handling equipment made
from standard steels.
And, while excavator buckets and
truck beds bear the initial brunt of run-
of-mine ore, crushers run a close sec-
ond in terms of the tonnage of material
handled and their persistent exposure
to abrasion on the one hand, and the
massive forces needed to break rock on
the other. Abrasion, needless to say,
54 E&MJ • MAY 2012
results in wear, while the continuous
crushing forces will test the mechanical
integrity of any material exposed to
them. For this reason, wear parts that
are installed in crushers have a double
function. Not only must they protect
the machine itself, but they must be
physically strong enough to survive in a
brutally tough working environment.
E&MJ asked some of the world’s
leading crusher manufacturers and
wear-parts suppliers for their views on a
number of key aspects relating to the
design and production of wear parts for
crushers. There is obviously a trade-off
in place between durability and pur-
chase cost, given that the production of
wear parts involves highly sophisticated
casting techniques using specialist
alloys, so it is often the case that the
most suitable wear-part materials for a
particular operation can only be deter-
mined once ore has been running
through the crusher at design produc-
tion levels over time.
The Best Materials
The development in 1882 of austenitic
manganese-rich steel (Hadfield steel),
containing between 11% and 14%
manganese and around 1.2% carbon,
led to its use in high-wear applications.
Major advantages for this material
include its toughness and ductility, and
the fact that continuous surface
impacts result in work-hardening with-
out any increase in brittleness. In con-
sequence, Hadfield steels and their
technological descendants provide both
strength and abrasion resistance; qual-
ities that are essential for wear parts
that can withstand the rigors of the
crushing process.
Chris Sydenham, technical director
at CMS Cepcor said that premium man-
ganese steel grades today have a higher
manganese content, commonly in the
18%-24% range. In addition, he said,
other alloying elements are often
added, the most common being chromi-
um and molybdenum, and to a lesser
extent titanium, vanadium and nickel.
These specific modifications to the
metallurgical composition are targeted
to achieve improved wear resistance
and toughness.
As Steven Hanny, product line man-
ager for mining crushing chambers at
Sandvik confirmed, there are many
types of manganese steel. The most
common usually contain different alloy-
ing elements to enhance the tough-
ness and hardness. More manganese
is needed to bind with the other
alloy materials, however; a higher man-
ganese content does not necessarily
mean that the wear parts will be better
in a specific application. Working with
alloys that are suited for different appli-
cations has been one of the significant
improvements over the last 20 years, he
added. By using different manganese
alloys, materials can be customized to a
www.e-mj.com

customer’s applications, leading to
increased productivity.
However, as Metso’s vice president
for crusher wear solutions, Osmo Mäki-
Uuro, pointed out, adding other alloying
elements may enhance one characteris-
tic but weaken others. The individual sit-
uation must be well understood before
recommending alternatives, he said.
Not all of the research has been into
alloying metals. “Recent advances have
focused on higher carbon grades to
improve wear performance, with other
additions to maintain heavy-section
properties at these higher carbon lev-
els,” said John Dillon, vice-president for
engineering and technical services at
ESCO Corp.
“At ESCO, we patented an alloy that
incorporates aluminum to increase the
amount of carbon we can introduce in
the alloy without sacrificing ductility.
To my knowledge, that is the highest
carbon grade in routine production. The
introduction of higher carbon grades—
starting about 20 years ago—has been
the most significant improvement to
the metallurgy,” Dillon said.
High-manganese steels are not with-
out their challenges when it comes to
manufacturing. Wear parts of all types
are usually foundry cast, with one of the
key requirements being to control the
formation of carbides within the materi-
al as it is cooling. Heat treating, used to
strengthen the material further, can
also cause carbide precipitation, espe-
cially in thick sections.
Work-hardening Gives
Longer Life
One of the key attributes of high-man-
ganese steel, work hardening generates
a tougher surface to the part, helping
to protect it from wear. Of equal im-
portance, said Hanny, is that the main
material is very strong and tough and
can withstand high forces without
cracking. Manganese steel develops a
low-friction polished surface that
results in better crushing properties
for the crushing chamber, while being
tough with properties that prevent
crack propagation and allow for longer
life times.
Low-alloy steels and special high-
chrome materials have expanded their
application areas and today offer signif-
icant life improvements, said Mäki-
Uuro. In addition, metal matrix com-
www.e-mj.com
posites—involving the addition of poly-
mers and ceramics—are increasingly
playing a bigger role in wear solutions,
and have given some impressive
results. Using these materials is also
broadening the usage range for some
crusher technologies, he went on, with
their lower weight loss per ton when
used in wear parts meaning that equip-
ment can be economically used in more
abrasive applications today than was
the case in the past.
Other companies have successfully
explored the potential of increasing the
manganese content of the alloy, as Alan
George, marketing communications
manager for Columbia Steel, explained.
Referring to the company’s Xtralloy
24% manganese steel for crusher wear
parts, he noted that no other foundry
can manufacture wear parts with this
manganese content, with the company
having been delivering 24% Mn crush-
er wear parts to the mining industry
since 1988. The company reports that
Xtralloy has significantly higher man-
ganese and carbon contents than con-
ventional Hadfield steel, claiming it has
up to double the wear life compared
with earlier materials, especially when
handling tough, abrasive rock.
According to Hanny, casting thicker
sections in high-manganese alloys can
be difficult. Steel with a higher man-
ganese content has lower heat transfer
characteristics during quenching,
which makes it more difficult to cast
thick pieces. To compensate for the
lower heat transfer, other alloying met-
als must be added, which can make the
casting process both more complex and
more expensive, he said.
“The fluidity of manganese steel is
relatively good, making it possible to
cast complex shapes,” said Sydenham.
However, manganese steel achieves its
inherent properties of good toughness
and the ability to work-harden through
heat treatment, which involves water
quenching from its solutionizing tem-
perature of above 1,000°C. This severe
quenching action causes distortion
issues to the part, especially those of
complex shapes having differing section
thickness across the part.”
“Process controls in melting and
heat treatment have continued to
evolve, with a resulting improvement in
consistency from quality manufactur-
ers,” said Dillon.
CRUSHERS
Changing Geology Brings
New Challenges
Clearly, the economic life-span of
crusher wear parts depends on more
than just the materials from which they
are made. Changing rock parameters,
such as the silica content, will have a
noticeable impact on the change-out
cycle time, as will the tonnage of mate-
rial being handled and the design of the
crushing chamber itself.
A general trend is that today’s crush-
ers draw more power and use higher
crushing forces than before. Because of
this, said Mäki-Uuro, the physical prop-
erties of the wear parts must meet the
changed conditions, while aiming to
minimize the wear rate in terms of the
material weight loss (in grams per ton
of output product).
There is also the question of changing
conditions in the geology of orebodies
now being worked compared with, say,
20–30 years ago. As Osmo Mäki-Uuro
pointed out, there are significant differ-
ences between the iron ores produced in
the U.S. (hard, abrasive taconite) and in
Australia, where the ore is less abrasive.
And, he said, mines being developed as
greenfield projects today are often based
on deposits that are hosted in less-abra-
sive rocks than where existing mines are
being expanded.
Hanny agreed that there have been
changes in the rock characteristics
being handled today compared with 20
years ago. These change even within an
individual mine, by depth and location,
as a result of variations in the geologi-
cal conditions and the rock/ore mineral-
ogy. Usually mines encounter less-
weathered rock as they get deeper, with
the potential for less alteration and
harder material. “What we can see is
that mining companies are working
lower-grade ores, and much more barren
rock, which can be harder on account of
their mineralogy,” Hanny said.
“One factor that is having an effect
is that ore grades are declining, so more
rock has to be processed to produce the
same amount of mineral. Attention to
crusher design and alloy selection is
critical to limit the cost of the crushed
stone,” said Dillon.
Optimizing Maintenance
Crushers are usually key components
within any mineral-processing system, so
operators strive to minimize the downtime
MAY 2012 • E&MJ 55
 CRUSHERS
involved in changing out wear parts. In
addition, each mine has to strike its own
balance between the cost of buying
replacement parts and the cost of lost pro-
duction while fitting them. Cheaper parts
may not translate into lower operating
costs when looking at the bigger picture.
While all of the major suppliers of
wear parts, both OEMs and independent
after-market companies, guarantee com-
patibility of their components with the
equipment they are intended for, that
does not necessarily mean that exchang-
ing old-for-new will be straightforward.
Crushers by their very nature have a
challenging lifestyle, which can trans-
late into difficult change-out conditions
as old liners wedge tightly into place.
According to Mäki-Uuro, Metso offers
a wide range of options in its ser-
vices portfolio, from change-out service
to total life-cycle services programmed.
Many customers, he added, carry
change-out components such as spare
head and shaft assemblies that allow for
quick change-outs with the wear parts
then being replaced in the workshop.
“The company regards top cone-
crusher serviceability as a key customer
benefit, and we are also developing dif-
ferent lifting tools for our parts that will
make maintenance work faster and
safer,” said Hanny. “Sandvik’s ASRi
(Automatic Setting Regulation) systems
keeps track of liner wear, which makes
it easier to plan liner changes and min-
imize interruptions in production.”
“Whenever possible, ESCO adds cast-
in-place lifting devices directly to its
wear parts, which support safe handling
procedures to hoist these large parts in
and out of crusher frames,” said Dillon.
“Our engineers are constantly striving
to improve the design of our products to
The evolution of high-manganese steels has been crucial in the development of protective parts that offer maxi-
mized wear resistance and structural strength to combat abrasion and fatigue. (Photo courtesy of Metso)
56 E&MJ • MAY 2012
improve safe handling and to facilitate
ease of fitting,” said Sydenham. “An
example of this would be our alloy steel
concave segments, where we have
recently provided a solution for a cus-
tomer by reducing the number of seg-
ments in a set from 60 to 16. This not
only reduces the number of parts being
lifted, but also takes far less time to fit.”
Optimizing Wear-part Costs
The cost of replacing liners and other
wear items in crushing plant on a regu-
lar basis is a function of the material
being crushed, the quality of the wear
parts being used and, most importantly,
the way that the crushing chamber is
set up. As Mäki-Uuro explained, the
way the rock flows through the crushing
chamber is critical, and depends on
the chamber design. Each application
needs to be tailored to the individual
site conditions, depending on the input
material characteristics and the type of
product that is required: this may be
vastly different for a mining operation
or for aggregates production.
Clearly, then, there can be significant
cost differences for replacing wear parts,
not only in terms of the parts themselves
but also in the labor needed. Liners that
wear quickly will need replacing more
frequently, and the crusher will be down
more often as a result.
So, what should mines expect in
terms of regular replacement costs, as
a proportion of the initial cost of a
crusher?
“Wear-part life is directly related to
the material characteristics and mining
operations. As a very general rule of
thumb, one could estimate somewhere
between one-third and one-half,” said
Hanny.
“The consumption of wear parts is
so dependent on the application of
the machine and factors such as the
compressive strength and work index,”
said Sydenham. In a worst-case sce-
nario, a mining company might spend
roughly 50% of the capital cost of the
base crusher per year on wear parts for
that machine.”
“Part lifetimes have improved in
recent years. Since higher carbon grades
were developed, wear resistance has
improved and, subsequently in most
applications, the parts last longer. Better
designs have optimized the placement of
wear metal to improve production through
the crusher while providing better wear
life. Wear life should really be measured
as tons of material produced rather than
hours, so crushing performance is a criti-
cal area of focus,” said Dillon.
Market Trends
The clear message from all of the manu-
facturers is that each operation has to
work out the best solution to crusher oper-
ation for their own individual circum-
stances, which may well change over time.
According to Hanny, one top priority
within the mining industry is to reduce
downtime due to liner changes. Even a
short unscheduled maintenance stop in
production can mean a big profit loss.
Environmental impact is also increasing
in importance with our customers, so
we are working with materials, life-
times, the production process and
logistics so as to minimize our and our
customers’ environmental impact.
Other materials are also playing
a role. “Materials other than man-
ganese steel have been introduced for
crusher wear parts, especially in pri-
mary gyratory concave segments,” said
Sydenham. Various grades of pearlitic
and martensitic low steel and iron heat-
treated to high hardness are gaining
more popularity over manganese steel
concave segments. Some manufactur-
ers have also done trials on casting
high-hardness alloy iron inserts into the
manganese steel matrix material to
enhance wear resistance.”
“In the future, I see more customized
solutions at each crushing stage to
enhance the total value of the operation,
helping to optimize the product shape,
amount of fines, system capacity, energy
usage and wear costs for each individual
customer,” said Mäki-Uuro.
www.e-mj.com
 DRAGLINE MINING
Armstrong Retrofits AC Technology
for Dragline Mining
A Western Kentucky coal operator is the first to embrace a step change in electrical
motors and drives, and quickly demonstrates the benefits
By Steve Fiscor, Editor-in-Chief
Armstrong Coal recently refurbished a BE 770 dragline for its Lewis Creek mine in Western Kentucky. As part of
the upgrade, it retrofitted AC motors into DC frames—a first in the U.S.
Armstrong Coal purchased an older
dragline from a mining company in
Colorado to refurbish for its new Lewis
Creek mine in Western Kentucky. The
Bucyrus Erie 770 was in sad shape. The
electrical technology onboard was 50 years
old and it needed to be fully restored.
That’s no problem for Armstrong Coal. The
company recently refurbished and assem-
bled three other draglines for surrounding
mines in the region. This time, however,
they were going to take a measured gamble
on new technology: AC drives and motors.
Not far away, in Evansville, Indiana, the
engineers at Flanders were already drawing
up plans for the first AC retrofit for a
dragline application. For many years, the
company has been working with mines
servicing and rebuilding DC systems on
draglines and they knew there had to be a
better way. Anticipating a need for the
technology, Flanders set out to develop a
system specifically targeted for the
dragline duty cycle.
The Armstrong AC dragline is not the
first AC-powered dragline. It is, however,
the first AC dragline retrofit operating in
58 E&MJ • MAY 2012
the U.S.—the country that has the most
draglines in operation. The 23-yd 770 is a
small machine with a 215-ft boom, but the
technology is scalable. Not long after the
machine was commissioned, the mine
began to see results. They were also able to
compare its performance against the com-
pany’s other three machines. Even though
the machine is smaller than the others, on
a comparative bucket basis, it is moving
more than 50% of what the larger 45-cu-
yd machines are moving.
The benefits of AC technology, as far as
safety and maintenance over DC systems,
are well-documented. AC technology is
safer. The motor-generator (MG) sets that
power most draglines require a lot of main-
tenance. The systems are open and guard-
ing is a safety concern as well as arc-flash.
Electrical maintenance on DC motors,
checking carbon brushes and megging
motors, centers around the commutator.
AC eliminates the MG sets. AC motors have
no commutator. AC motors require less
maintenance, which keeps people out of
harm’s way. So a great deal of the constant
electrical maintenance is eliminated. There
is less rotating equipment and the associ-
ated guarding. The downside is that most
of the AC technology of this magnitude was
developed for industrial installations and
applied to mining. The intense duty cycle
for mining applications often brings these
industrial systems to their knees.
Flanders wanted to develop a system
specifically for dragline mining. Three
years ago they recruited an expert from the
industrial side of the business and he
began teaching them about AC and they
began teaching him about mining duty
cycles. Together, they developed a proto-
type and then they received the call from
Armstrong Coal.
Rebuilding the Lewis
Creek Dragline
The Lewis Creek surface mine was put into
operation in April 2011. The 770 dragline
would be used to move overburden. With
rolling topography, the overburden depth
ranges from 30 to 160 ft. In addition to the
dragline, the mine employs a small fleet of
drills, front-end loaders, haul trucks and
dozers, to expose and extract the 13A and
13B coal seams. The mine currently has a
10-year life.
The dragline was dismantled in
Colorado and transported to Western
Kentucky. Kenny Allen, vice president-oper-
ations, Armstrong Coal, who at one time in
his career was a chief electrical engineer
working on draglines and shovels, looked at
the electrics on the machine and knew he
had some decisions to make. “I had some
past experience with draglines and I always
wanted to build an AC machine and this
seemed like the perfect fit,” Allen said.
“The rotating DC machinery on this dragline
was in pretty bad shape. When it was built
new, it wasn’t the best of the best.”
Armstrong Coal approached Flanders,
looking at the possibility of retrofitting it
with AC drives. They had developed a pro-
totype drive. With a short timeline, the
engineers began to develop AC motors for
www.e-mj.com

“drop-in” applications (same footprint,
frame size, shaft height, etc.) for the
swing, hoist and drag functions. Flanders
performed all of the pre-commissioning
test work in advance. “We load tested
everything in the shop prior to installa-
tion,” said Mike Casson, manager-dragline
mining, Flanders. “We also performed sys-
tem control testing. We were just waiting to
get power on the machine. Once the mine
had installed the 7,200-volt line, the
dragline was mining in eight days.”
The Armstrong 770 began mining in
April 2011. The machine has been run-
ning consistently since with very high avail-
ability. The machine has been running less
than a year and it is already two months
ahead of the dig plan. “We have been very,
very pleased with the machine,” Allen said.
“It has really exceeded our expectations.
The run time has been super. We have had
very few problems with either the electrical
or mechanical side of the drives. This
speaks well for the drive, particularly on
the mechanical side, because they
[Flanders] were very meticulous in their
design of the drive to stay within the
mechanical parameters of the machine.”
From ballast to drive, the machine is
well balanced from a power and speed per-
spective, Allen explained. “The operators
do not wait for anything,” Allen said.
“When they are loading, hoisting and
swinging, everything works together and all
of the speeds are in synch, which makes
for a very productive machine.”
E&MJ toured the new Armstrong 770
dragline in late February. Even though the
region had suffered from major thunder-
storms the night before, including a few
tornadoes, the dragline was busy moving
overburden. Dragline operator Chris
Hayden takes great pride in the machine.
“This is the best one we have,” Hayden
said. “It’s easier to run. We have no prob-
lems. On the uptime log, this one is in the
mid to high 90% range. When you want to
run it fast, it’s a lot faster.”
When comparing it to the other
Armstrong machines, he said the uptime
logs for those machines are in the low 90%
range. “All of the others are down a day
every week or two for maintenance,” he
said. “The 770 is down one day a month.
We just run. We are running about two
months ahead of schedule. A lot of that
has to do with not being down. This
machine just digs!”
“In my almost 40 years of mining expe-
rience, the 770 is one of the most trouble-
www.e-mj.com
The AC hoist motors on the Armstrong 770.
free machines I have worked on and its
performance brings big smiles to manage-
ment,” said Gary Durham, chief electri-
cian, Midway and Lewis Creek mines,
Armstrong Coal.
Power consumption has been below
Armstrong Coal’s original estimates. The
mining company had to estimate power
demands for the power supplier. Allen had
never estimated demand for a machine of
this type and neither had anyone else for
that matter. “We were collaborating with
Flanders in providing an estimate for the
power company,” Allen said. “We were con-
servative and over projected to avoid penal-
ties. We probably over-projected a little
more than we should have. The power fac-
tor has been 99%. It’s at unity almost all of
the time and that just doesn’t change.”
When he began discussing the technol-
ogy with the engineers at Flanders, Allen
had two questions. One dealt with power
factor and the other related to harmonics.
“They said power factor would not be a
problem because they would be operating
at unity and I said, ‘Yeah right’ and, well, it
is. They have also done a great job of tak-
ing care of the harmonics as well.”
As far as cost, Allen agrees with Flanders
that this technology is well-suited for retrofit
applications. “We have three other draglines
and they are doing fine,” Allen said. “I
would not shut them down and do the retro-
fit. It would not be cost effective. Anyone
considering a major rebuild should take a
look at this AC system. I would do it again if
I had an opportunity.”
DRAGLINE MINING
Retrofitting an AC Package
At the time Armstrong approached them,
Flanders had already developed an AC
dragline system and it was 80% complete,
but the company had not taken it to market.
“Everything on the 770 was obsolete and
worn out,” Casson said. “So it needed a
completely new electrical package. It was an
ideal candidate to go AC rather than DC.” As
Allen mentioned, it’s more cost effective
when starting from scratch, and the benefits
of the AC system quickly payback.
The AC motors were designed to deliver
more horsepower. Most frames sizes would
see a 30% increase in power. “We
designed it as a mechanical drop-in
replacement,” Casson said. “It would have
the same bolt pattern, footprint, shaft
height, and the tapered shafts. It’s still the
standard Association Iron & Steel
Engineers frame dimensions.” It’s a physi-
cal drop-in with the same speed range, so
no gearing changes are required.
The AC drive system was designed
specifically for a dragline. “This is not an
off-the-shelf drive that’s being applied to a
mining environment,” said Bob Parke, sen-
ior field engineer, Flanders. “It was
designed for the machine. We elected to go
with a water-cooled arrangement. We felt
that was an obvious better choice because
of the better efficiency. The system can get
the heat out of the drives and the house,
but more importantly the cabinets are now
sealed.” Without air cooling, there are no
filters to change and no dust in the cabinet.
Also, everything the technician accesses on
MAY 2012 • E&MJ 59
 DRAGLINE MINING
the front side of the drive is 24 volts, which
provides a zero arc flash rating.
Flanders also opted for a lower voltage
application. Typically an AC drive is either
700 volts or 1,400 volts. “We elected to
go with the 690 volts to stay below the
1,000-volt threshold,” Casson said. “In
many countries, the 1,000-volt threshold
triggers a different, more stringent set of
safety regulations.”
As far back as 2008, Flanders was
already considering the concept. “We want-
ed to build an AC dragline system,” Casson
said. “We looked at other drives on the mar-
ket that we could utilize for this applica-
tion. In our opinion, none of them were the
right drive for a dragline. So we recruited
the people to develop the drive system
specifically for a dragline application.”
The AC drive system is designed for
175,000 hours. Typically an MG set lasts
about 20 years. “Some would say the drive
is over-sized, but we say it’s right-sized for
the environment,” Casson said. “A dragline
is a long-term investment and we want the
drive system to be a long-term piece of
equipment.”
The swing motors on the Armstrong 770.
60 E&MJ • MAY 2012
The operating environment on an AC
dragline is much cleaner than DC. The lack
of carbon brushes (no carbon dust) and
pedestal bearing oil eliminates the risk for
flash over. The drive cabinets have a zero
arc flash rating. With an MG set in DC
application, there is always a huge poten-
tial for arc flash. If the MG sets are down
for an extended period of time, they have
to be rolled over to oil the bearings.
AC systems run more quietly. The ambi-
ent noise for an MG set on a 1570/8200
class dragline runs anywhere from 90 to
96 dBa, according to Parke. “Noise is
cumulative and more sources generate
louder noise levels,” Parke said. “When the
MG sets are eliminated, those sources of
noise are removed. The heat exchangers for
the water-cooled drives are located on the
outside of the house and, with the heat
removed from the house, the number of
intake fans can be reduced. Or they could
be placed on a VFD, which slows them
down—energy savings and less noise.”
An AC system is much more efficient. “A
typical DC system with an MG set in a Ward
Leonard loop is about 80% to 83% effi-
cient,” said Casson. “The active front-end
drive is about 92% to 93% efficient. So the
mine would see significant savings on operat-
ing costs as far as electricity consumption.”
Something else that could be consider-
able is dragline utilization. When a dragline
sits idle, whether it’s for a shift change or
a bucket lube, a 1570 size machine is
going to consume 1 mw or more of power
with the MG sets idling. The AC drive sys-
tem consumes virtually no power when the
machine is not in operation.
Another side benefit is a decreased
diameter on the trailing cable. Ordinarily a
dragline trailing cable is sized to start the
MG sets. “It’s actually oversized for the
power needed to operate the machine,”
Parke said. “With the AC static drives, there
is no in rush of electricity like there is start-
ing an MG set. It’s not a huge difference, but
a smaller cable can be used.” It’s easier to
handle, lessening the chance for back injury.
Advances in Drive Technology
With all of these benefits, one of the first
questions would be: How did the mining
business miss the boat? The answer is: It
did not. Most of the draglines were built 20
to 30 years ago with a 15- to 20-year life.
During that same timeframe, technology
advanced and improved. In fact many of the
changes have occurred in the last 10 years.
Previously AC drive technology could
not function properly in a dragline applica-
tion such as this before the advent of the
active front-end drive. “The field-oriented
control with the active front-end can con-
trol power factor on the machine just like a
synchronous motor,” Casson said. “The
harmonics can be reduced to virtually
nothing. The drive system operates well
below IEEE 519 standards.”
The dragline is such a tough applica-
tion because of the cyclic loading. It goes
from 200% load to no load or regen every
60 seconds. Previous AC systems could
not typically handle the voltage swings and
the cyclic loading.
This system can be scaled up to any
size dragline, Casson explained. “It’s just a
matter of paralleling the modules,” Casson
said. “The way we designed it, we used the
same module on the active front-end and
the inverter. It’s an identical interchange-
able module—one spare module. For a typ-
ical hoist application, an 824 frame size is
replaced with a 1024 AC motor. It has the
same shaft height, frame size and footprint.
That’s a 1,900-hp induction motor replac-
ing a 1,300-hp DC system. It takes 12
www.e-mj.com
 DRAGLINE MINING
An AC helper drive on the Flanders factory floor will soon be shipped to an Australian dragline operator.
modules in parallel for the inverter side to
run the 1024. A smaller motor might take
nine modules. They are all single phase
modules, so there are always three in a
batch. So it would run three, six, nine or
12.” Because the modules and drive sys-
tems are digital with built-in health moni-
toring and diagnostics, there is not a lot of
trouble-shooting because the system tells
the operator where the problem is located.
Each module has been designed with a
maintenance technician in mind. The
module has four connections: One AC
power connection, the positive and nega-
tive DC connections, and one mechanical
locking bolt. They each use a ¾-inch bolt.
The module slides in on tapered pins and
the locking bolt hold it in place. The tech-
nician removes four bolts and a small
thumb-screw communications cable and
the module pulls out. It weighs 50 lb. “One
man with a ¾-inch wrench can change the
module in less than 3 minutes,” Casson
said. “No heavy lifting or cranes required.”
Finding the Solution
To spearhead the AC dragline project,
Flanders recruited and hired Stan Mann,
technical project manager, Flanders, three
years ago. He had been working with AC
drives in industrial applications unrelated
to mining. He views that experience as an
advantage because he was unbiased when
he approached the situation. “We spent a
lot of time trying to convert the traditional
understanding of a DC motor and its rating
and what it does to what an AC motor
does,” Mann said. “In a way they are the
same and they are also very different.”
He sees the Armstrong retrofit as a suc-
cessful introduction. “This is first AC
62 E&MJ • MAY 2012
dragline retrofit, which amounted to two
motors each for hoist and drag, and three
for swing,” Mann said. “It’s a multiple-
motor-motion application and we were able
to validate a lot of our control strategies
with parallel motors in the same motions.”
Dragline structures are designed for
peak forces and torques. “DC motors have
a peak force rating and everyone is sacred
about not exceeding that,” Mann said.
“There are also gearbox characteristics. As
the speed increases, the torque on the
gearbox must be reduced to keep it happy.
So we have these boundary curves, which
are x-y plots of current and speed for DC
motors [amps and volts]. It’s the classic
analysis of machine performance to take
the motor data through a motion and watch
how it interacts. It tells them whether a
machine is inside or outside its bounds or
whether the motor-generator loops are sta-
ble or unstable.” This is the way the min-
ing business learned how to do this over
the last 90 years, Mann explained, and
everyone is real comfortable with it.
Now AC has been introduced and it
does not work like that anymore. “Instead
of amps and volts, we’re talking torque and
frequency or speed,” Mann said. “So now
we have to translate all of this knowledge
into what we really want to have when we
are controlling torque and speed instead of
amps and volts. That took a year.”
Mann then began the process of deter-
mining the AC motor requirements. He vis-
ited a few draglines. Parke and Casson
taught him about draglines. Then Mann
told them this is what AC motors can and
cannot do. Then they worked together to
figure out the specifications in terms of
Newton-meters and RPMs rather than
amps and volts. “That took some time—
that and understanding the power profiles
on the machines,” Mann said.
The use of this technology allows oppor-
tunities to do more things differently, Mann
explained. “We haven’t done that yet,”
Mann said. “We have followed the same pro-
files of the classic DC machines. We pro-
grammed the drive to deliver the same pro-
file because everyone is safe with that. But,
we already have people asking about upping
the speeds. The curve from max torque to
max speed is linear. But the curve for a gear-
box is a parabolic function. So why don’t we
take the speed up like that? The DC motors
used to have commutation problems in the
upper limits because of high current and
high speed occurring at the same time. The
AC motor doesn’t have those problems.”
There is opportunity for more performance
improvements, but it will place more stress
on the machine. Theoretically it’s inside the
machine’s performance boundaries.
Within a year Mann had an operational
prototype. “Then we initiated the real pro-
duction design with the details that we per-
ceived the industry needed,” Mann said.
“We have to build a good motor. We have to
have a drive that will produce the torques
and speeds and profiles that we need. But,
what’s really important is that the machine
runs reliably. Uptime has to be high and it
must be easy to maintain. If the dragline is
not running, it’s costing the mine a fortune.”
That’s what Mann learned from the mines.
One of the biggest changes was the
water-cooling, according to Mann. “It took us
a long time to convince people that it was
O.K. to run water and electricity in the same
cabinet,” Mann said. “When they realize that
everyone else in the world does this at these
power levels, they decided it would be O.K.”
The Armstrong rebuild was a great
opportunity. “We built a system to their
specifications to fit their application, then
proceeded to test and install it,” Mann
said. “Within two weeks of commissioning,
they were running it full bore. The main
power equipment ran fine. We had some
mechanical issues on start-up with motors
and couplings, and encoders (shaft posi-
tion sensors).” The normal bugs encoun-
tered in a rebuild.
Cabling was difficult. “The system no
longer requires single-conductor cables to
the motor,” Mann said. “AC needs a three-
phase shielded cable with grounding opti-
mized for VFD applications. These kinds of
cable are hard to find at these power lev-
els especially if the mine wants to have
www.e-mj.com
 DRAGLINE MINING
metallic shielding. We used a continuous
welded aluminum armored cable, but it
could only be purchased with Class B
stranding, which is really stiff, making
installation difficult. There is a debate in
the industry right now about metal
armored cable when it comes to VFD
applications. Steel armor is the tradition,
but manufacturers are not making them
that way anymore. Non-metallic jacketed
cable is much more flexible and greatly
simplifies installation in tight areas.
“As far as maintenance, an AC motor
can have a ground fault or a bad bearing.
The drive system could have a component
failure or ground fault anywhere in the
wiring system,” Mann said. “A component
failure generates an immediate fault with
an obvious response. These are easy to
troubleshoot and replace and there’s just
not that many parts.”
The machine control is based in the
PLC control system. “All they have to do is
modify the control algorithm to determine
machine performance,” Mann said. “They
program the speed and torque reference.
They can modify the profile. The drive
product is a dumb machine. All it takes
from the machine control is a speed com-
64 E&MJ • MAY 2012
mand and torque reference. Give me this
much torque and don’t exceed this speed.
All the intelligence as far as monitoring
and interacting with a user comes from the
PLCs. All of the variable intelligence is
pushed out to the machine master. The
drive is the big power amplifier.”
Everyone knew this technology was
coming, Mann explained, but Flanders
had the vision to get out in front of it.
“Everyone agrees its better,” Mann said.
“Power factor control on the front-end is
so much better.”
Designing the Drop-in
Replacement Motor
The AC motors were designed to “drop-in”
the same configuration as the DC motors.
On a DC motor, the big heavy fame is part
of the magnetic circuit. Basically, the DC
motors slide out and the AC motors slide
in, then the brakes and couplings are reat-
tached with no need to change the gear-
box. When the AC motor is installed, that
frame simply becomes a 1 ½-inch steel
housing, holding the motor together. In
some applications, the AC motor typically
uses the stator for structural support, but
the deck on a dragline is not solid. That
puts stress of the bearings. This concept
uses the same bearings and frame, and the
frame adds a great deal of rigidity.
Joe Patterson, director of motor manu-
facturing, Flanders, was responsible for the
design and fabrication of the drop-in AC
motors. He had to deal with the constraints
around the existing footprint, shaft heights,
couplings, bearings, etc. The biggest chal-
lenge was to make sure the performance
envelope of the AC motors not only mac-
thed, but exceeded the existing DC motors.
He was able to accomplish this by having a
really good understanding of what the
hoist, swing, and drag cycles are for the DC
motors. “Simply matching the nameplates
is not good enough for a dragline applica-
tion,” Joe Patterson said. “You have to
understand the application and the load
cycle to match it appropriately.”
Although the AC dragline retrofit con-
cept had been discussed for many years,
the design and manufacture took place in
really short timeframe from start to finish
(five months). On a normal dragline, he
would have been allowed 10 to 12 months.
Reinforcing the benefits of AC technol-
ogy, Joe Patterson explained that the mine
should expect significant efficiency gains.
www.e-mj.com
 DRAGLINE MINING

This drive has 12 modules (left). Each weighs 50 lb and can be changed by one technician with a 3/4-inch wrench.

“We would expect about 12% moving from
motors and generators to variable frequen-
cy drives,” Joe Patterson said. “As far as
power consumption, the in rush of power
for the synchronous motors is eliminated.
That was 600% of starting torque and with
a VFD that is not needed so the trailing
cable can be reduced.”
The timeline worried him most about
the project. “We really had to get it right
the first time,” Joe Patterson said. “We did-
n’t stray from the path too far, never to the
point where we couldn’t course correct.”
No one had attempted to put an AC
motor in a DC frame. Airflow around the

www.e-mj.com MAY 2012 • E&MJ 65

 DRAGLINE MINING
motor and cooling was a major concern.
“We had to make sure we were getting
enough air over the right parts,” Joe
Patterson said. “AC and DC motors are
cooled differently. The armature in DC
motor will heat much differently than a
rotor, which is the rotating piece on the
AC motor. On AC motors, it’s more impor-
tant to cool the stator than the rotor,
but you still have to direct some air toward
the rotor.”
He was very pleased with the commis-
sioning process. “When you are doing
something that has never been done
before, you sort of expect a setback, but it
progressed in eight days and that’s about
the same commissioning period for a DC
retrofit,” Joe Patterson said. There is
always room for improvement, he
explained, and there are a few accessories
that could have been improved upon given
more time.
A Commitment to Safety
and Efficiency
Flanders committed to developing and
building this system before they had a cus-
tomer. That’s a gamble that would make
many publicly-held companies uncomfort-
66 E&MJ • MAY 2012
able, but Flanders is privately held. The
Patterson family has been leading the
organization for three generations.
Allen Patterson, COO, Flanders (and an
electrical engineer), has been with Flanders
for 14 years now. “About 18 months ago,
we reorganized the company into two busi-
ness units, one that focuses on after-market
motor repair and the other is the power sys-
tems business units, which is engineered
products and manufactured systems focus-
ing on optimizing assets and improving
safety,” Allen Patterson said. “The hope
was to develop innovative solutions for min-
ing and heavy industry and to be able to
grow our people and business in more spe-
cific areas.” He is the leader of the power
system group and was responsible for the
people working on the Armstrong project.
Flanders has been serving the mining
business for more than 50 years. They are
now seeing more demand from overseas.
“We primarily started as wound motor
repair services on stripping shovels,” Allen
Patterson said. “Listening to the customer
has been the key to our success in mining.
We also have a good understanding of the
application and the duty cycle, and how
that affects the mechanical structure of the
machine. Rather than having a standard
product that we plug into several areas, we
have design application-specific solutions.
“As far as the AC dragline, we made the
decision to head into that area about three
years ago,” Allen Patterson said. “There
was not a good drive out there that would
withstand the rigors.”
Looking down the road, Patterson sees
more possible uses for this technology, such
as helper drives and swing motion
upgrades. “We can coordinate the drive sys-
tem so that we can eliminate some for the
mechanical issues, such as backlash,”
Allen Patterson said. “There are also more
opportunities for autonomous applications.”
The Flanders AC system for dragline
mining is step change in technology. DC
systems are not going to go away anytime
soon. Anytime a mine relocates a major
piece of electrically powered machinery
that is the ideal time to consider an AC
retrofit. Why would a mine invest a signifi-
cant amount of money to rebuild aging DC
machinery, when it could use that money
for AC technology. In addition to improved
safety, the AC presents a respectable pay-
back with power savings and decreased
maintenance costs.
www.e-mj.com
 O P E R AT I N G S T R AT E G I E S
Volvo CE Pursues Advanced Control Systems
to Boost Machine Productivity, Economy
Eighty operators took part in a study conducted by Volvo CE aimed at identifying devi-
ations in fuel efficiency and productivity attributable to operator skills and behavior.
Each operator performed the same tasks within three different simulated work sites.
Getting machines to do more while using less fuel are two of
the most important factors on a work site. Once the equip-
ment is selected and the site layout planned, the main vari-
able affecting the success of the overall operation is operator
behavior. With the massive difference between an experi-
enced and novice operator—and an equally massive differ-
ence in the cost/benefit ratio—Volvo Construction Equipment
(Volvo CE) is researching a system which will help less skilled
operators work as efficiently and productively as the best and
most experienced operators in the industry.
“The operator has a great influence over a machine’s
productivity and fuel efficiency,” said Bobbie Frank, alter-
native drivetrain research engineer at Volvo CE. “In the future
we will see advanced systems develop that are less de-
pendent on operator skills. Currently this technology is still
in its infancy but there will come a time when Volvo
machines actively guide operators, and even control the pri-
mary functions.”
Measuring Operator Deviation
Recently in Eskilstuna, Sweden, 80 operators took part in a
Volvo study whose aim was to discover the differences in fuel
efficiency and productivity between different operators per-
forming identical tasks in the same Volvo L220F wheel
loader. The operators were grouped into four categories—
novice (with two to 10 hours of wheel loader operating expe-
rience), occasional (with machine knowledge but not fre-
quent use), test operators (Volvo employees who operate
wheel loaders regularly but not professionally) and profes-
sional operators (those who work with wheel loaders on a
daily basis).
Each operator performed the same tasks in three
different simulated work sites: a short loading cycle in re-
148 E&MJ • MAY 2012
handling material with a load receiver, a load and carry up-
hill cycle onto a conveyor belt in rehandling material and
a short loading cycle loading shot rock onto a load receiver.
All parameters were isolated—except the operator. Data
such as bucket load, vehicle speed, use of accelerator and
brake pedal was recorded along with fuel consumption. From
this data, fuel efficiency in ton/liter and productivity in mt/h
were calculated.
“This study focused on how operator behavior affects the
fuel efficiency and productivity of wheel loaders working in
bucket applications in production chains,” said Frank. “The
results showed an enormous difference between fuel effi-
ciency and productivity between operators of differing expert-
ise. Between the novice and the professional operator, pro-
ductivity increased up to 700% and fuel efficiency increased
by up to 200%. When novice operators are excluded from the
results, there is still an increase of up to 300% in produc-
tivity and 150% in fuel efficiency.”
Increased Machine Intelligence
“The results from this investigation highlight the opportunity
to reduce costs through optimized operator behavior,” said
Frank. “We can see that the operator has a great margin of
influence over the fuel efficiency and productivity of the
machine. If we could raise the efficiency and productivity of
all the operators in this study to the same level as the oper-
ator with the best results, it would add up to a big saving for
our customers.
“By developing an advanced control system that assists
the operator, we should be able to decrease human influence
and actively help operators work more efficiently without
reducing productivity,” said Frank.
“Volvo cabs of the future will assist the operator by pre-
senting information in heads-up displays and other innova-
tive approaches. Through haptic controls (technology which
takes advantage of the sense of touch by applying forces,
vibrations or motions to the user) we will see the machine
interacting with the operator and giving feedback.”
What the Future Holds
At Volvo CE, the company’s engineers are looking ahead and
developing innovative technology for future machine designs.
“This study is only really the beginning of this research and
it will be developed further and used in a number of differ-
ent ways,” said Frank.
“The next stage is to find—using virtual simulations—the
optimum way of operating a machine. It will be interesting to
see how this compares with the top operator from our inves-
tigation. There is a lot of potential to develop an advanced
operator assist system and training tool with these results
and, with more data from different machines in other appli-
cations, managers could use this information to set the pace
of production and optimize the overall efficiency of the entire
job site.”
www.e-mj.com
 O P E R AT I N G S T R AT E G I E S

GE Energy Offers Complete AC • Four-quadrant control of all motor functions with active
Power Solution power factor correction.
Surface mine operators are finding it harder to deliver the • An air-cooled drive system designed for minimal mainten-
same amount of minerals in the same time with existing ance with extended filter change intervals.
technologies, according to GE Energy—the ore being uncov- • AFEs and inverters configured as master/slave with an auto-
ered has lower concentrations of minerals as existing sites matic fail-over feature, which allows for reduced-capability
become more mature. As a result, mining companies are operation until maintenance can be scheduled.
increasingly under pressure to find more energy-efficient and • System communication networks that use standard bus
reliable solutions. In response, GE Energy has introduced a protocols.
new alternating current (AC) excavator solution which con- The Active Front End (AFE) in the VFDs provides high
sists of drives, controls and motors designed specifically for energy efficiency with Power Factor management to mini-
challenging surface mine applications and environments. mize line transients and disruptions at the Point of Common
The AC system is a complete motion solution comprising Connection (PCC) to the utility. The inverters are de-
an integrated family of power delivery elements, Variable signed and rated to support the severe duty of excavator
Frequency Drives (VFD), AC motors and controls. Each sys- motor applications.
tem is designed for the specific application using motors of Mining operators look to uptime and cycle time as two
various frame sizes and mounting orientations (horizontal measurements that provide the most meaningful indication
and vertical) and drives tailored to the platform. The system of lower cost per material ton moved ($/mtm). GE said its AC
is designed to use a master PLC to control system functions, excavator solutions, based on an advanced AC drive, control
maintaining commonality of equipment and control algo- and motor system technology, will help deliver the reliability
rithms with existing DC excavator systems. and productivity necessary to help mining operators meet
GE Energy said its newly designed air-cooled AC KD800 their goals.
series motors are mechanically interchangeable with its GE Energy created GE Mining Solutions to collaboratively
existing DC MD800 series Mill Duty motors, down to the develop with mining clients the technologies needed to con-
mounting configurations and shaft heights. This gives tinue their success. GE Mining Solutions is part of GE Global
prospective users the flexibility to select either AC or DC, Industries, GE Energy’s new cross-business that intercon-
whether retrofitting existing excavators or engineering an all nects technologies from across GE Energy’s diverse portfolio
new design. to increase efficiency and results for customers in critical
Main features of the AC system include: business sectors.
• Active front ends capable of regenerative operation from
the interface to the utility.
• Dedicated inverters, sized to motor requirements, control
each of the motors.
• Insulation is designed for 20-year winding life under nor-
mal excavator operation.
• AC systems are designed for higher productivity by provid-
ing higher peak and continuous power ratings.
• Anti-friction bearing life exceeds major excavator overhaul
intervals.
• Internal shaft grounding brush is field replaceable.
• Field replaceable speed sensors are used to ensure accur-
ate rotor position and rotational direction while providing
precise torque control.
• Bearings and stators are equipped with factory-installed RTDs.
The company said its new family of AC VFDs have been
developed using a modular approach designed to meet cus-
tomer specifications using a common set of modules and
passive components, thus improving availability and reliabil-
ity. The product line features:

www.e-mj.com MAY 2012 • E&MJ 149

 SUPPLIERS REPORT
ABB’s New-gen Arc Flash Protection System
Designed for Engineered Safety Applications
ABB’s Low Voltage Products division has
released TVOC-2, a new generation of its
proprietary Arc Guard System that has
been protecting electrical equipment
from dangerous electrical arc flashes for
over 35 years.
According to the company, TVOC-2
features numerous upgrades and new
functions to provide superior arch flash
protection, detecting faults in low- and
medium-voltage switchgear and discon-
necting the power provided to the arc
within 30 to 50 milliseconds, preventing
serious injury to personnel and damage
to expensive equipment. Without the Arc
Guard System an arc flash will typically
trip a circuit breaker in approximately 1
second, enough time for the arc to
destroy the switchgear and kill or seri-
ously injure a person.
TVOC-2 is now UL listed, and when
installed along with ABB’s Emax circuit
breakers, carries a functional safety
rating of SIL-2 as certified by TÜV
Rheinland, an independent global pro-
vider of safety analysis. The SIL-2 certifi-
cation, said ABB, confirms the TVOC-2
has achieved the standard required to
protect both humans and equipment.
“The SIL-2 rating is especially impor-
tant because it allows the TVOC-2 Arc
Guard system to be used where an
engineered safety solution is required,”
said Steve Zbytowski, product manager
of control gear at ABB. “The rating
makes the TVOC-2 a unique product in
today’s market.”
Hotter Than the Sun
An arc flash is a strong electric current,
often taking the form of a major explosion,
that passes through air when insulation
between electrical conductors is no longer
sufficient to contain the voltage within
them, creating a short that allows electric-
ity to race from conductor-to-conductor.
Arc flashes can emit heat up to 35,000°F,
four times the surface temperature of the
sun. In the U.S. alone, it is estimated that
five to 10 arc flash incidents occur every
day, causing one to two daily fatalities.
Despite conscientious attempts to
design systems that inherently reduce
risk, mechanical measures often fail
150 E&MJ • MAY 2012
TVOC-2 Arc Guard.
because most accidents occur with the
switchgear door open, and electrical
breaker protection is solely based on
delayed over-current stoppages. The
main cause of arc flashes is human error
and 65% occur when an operator is work-
ing on the switchgear.
The Arc Guard system can detect
an arc flash in less than 1 millisecond,
and depending on the disconnecting
device, it will typically disconnect the
power to the switchgear within 30 to 50
milliseconds. This will not prevent the
accident, but it will significantly reduce
the damage.
Detection, Recognition, Action
The Arc Guard System uses light as the
main condition to instantaneously trip
the incoming circuit-breaker, responding
in milliseconds and overriding slower pro-
tection elements. The system acts in
three phases:
• Detection—an optical sensor senses
light—an arc flash—inside the equipment;
• Recognition—the arc monitor deter-
mines the intensity of the light; and
• Action—the TVOC-2 sends a signal to
trip the breaker(s).
Short circuit protection alone is not
enough to provide the necessary response
time because power distribution systems
often include a required selectivity
designed to achieve desired plant effi-
ciencies and ensure power availability.
This selectivity delays the breakers trip-
ping in the necessary time. The Arc Guard
System, along with properly specified cir-
cuit breakers, overrides the protection
delays within the necessary timeframes to
minimize injuries and equipment damage.
“ABB has over 35 years of experience
detecting arc faults with the predeces-
sors to the TVOC-2,” said Zbytowski.
“While we are proud of that history, we
weren’t satisfied with only protecting
equipment. Our goal, which is now real-
ized, was to gain the TÜV certified SIL-2
rating allowing the TVOC-2 to be used in
engineered safety solutions.”
ABB said that, in addition to achiev-
ing the functional safety design as
approved through rigorous third party
testing and certification, the feature
upgrades of TVOC-2 provide significant
system enhancements, including:
Reliability:
• Pre-calibrated optical sensors and fiber
optic point sensors.
• Hardware based self-monitoring system
for critical functions; the software is
used only for supervision and informa-
tion processing.
• Wide-ranging input voltage ratings (100
to 240 V AC and 100 to 250 V DC).
• Selective tripping of only the affected
circuit breaker, not all breakers within
a system.
Flexibility:
• The HMI can be mounted on the TVOC-
2 or panel door.
• Standard system has 10 sensor inputs,
expandable to 30.
• The system can be configured accord-
ing to specification.
Simplicity:
• User-friendly start-up menu, easy to install.
• Mounting options on DIN-Rail or direct-
ly on a panel wall.
• Easy to expand as the switchgear grows.
The Arc Guard System is claimed to
be compatible with a wide range of appli-
cations, including new or OEM installa-
tions, as well as older equipment lacking
a safety upgrade.
(See related article, “Minimizing Arc Flash
Danger in Mining Operations.” p. 40.)
www.e-mj.com

Northland Finalizes Logistics,
Mill Operational Agreements
Northland Resources, moving toward
planned startup of mining and processing
at its Kaunisvaara magnetite iron ore
property in Sweden, recently issued a flur-
ry of announcements for long-term con-
tracts awarded to several of the project’s
primary vendors and service providers.
In late March, Northland signed a
comprehensive service contract with
Metso involving the company’s process-
ing plant at Kaunisvaara, which will pro-
duce high-quality magnetite concentrate.
The service contract includes staffing
for the commissioning and completion,
performance-guarantee testing, control of
scheduling and quality, inventorying of
spare parts and maintenance of the
equipment related to the Kaunisvaara
process plant.
Metso will deliver the primary crusher,
semi-autogenous mills, pumps, other
equipment, material and tools starting
the second quarter of 2012 and began to
deploy staff to Kaunisvaara at the begin-
ning of April 2012. The contract, which
will run for six years, is valued at roughly
$100 million.
Northland, which is less than one year
away from starting production at the
Tapuli mine in Kaunisvaara, announced in
early April that it would sign final agree-
ments with logistic specialist companies
to manage and develop the logistics solu-
tion between Kaunisvaara and the Port of
Narvik, Norway. In 2013, 1.3 million mt
of iron ore concentrate is expected to be
transported from Kaunisvaara to Narvik,
ramping up to full production of more
than 4 million mt by 2015.
The company said Peab AB will han-
dle concentrate transportation by truck
from Kaunisvaara to a transload terminal
at Pitkäjärvi, and Savage Services Corp.
will manage rail line service and other
logistical tasks from Kaunisvaara to
Narvik. Grieg Logistics AS will manage
port operation in Narvik.
The company’s concentrate will be
transported by truck 150 km on public
roads, before transfer to railcars at
Pitkäjärvi. The trucks will be allowed to
carry up to 60 mt at the beginning of pro-
duction, but Northland said the Swedish
Transport Administration is expected to
grant dispensation for 90-mt trucks.
Northland and STA are currently con-
ducting tests using a 90-mt truck to
determine the most efficient balance
www.e-mj.com
Construction continued through the winter at Northland Resources’ Tapuli iron ore mine in northern Sweden, as the
company moves ahead with a targeted late-2012 startup. (Photo courtesy of Northland Resources)
between gross weight and relative speed
on the road—which will determine an
optimum number of daily roundtrips
combined with the minimum amount of
road maintenance.
The operational agreement with Peab,
which is in effect until the end of 2021,
is valued at approximately $600 million.
“Peab has been an active participant
in the Kaunisvaara project, constructing
buildings and infrastructure at the mine
site and at the Port of Narvik. We are
therefore pleased to further extend our
relationship on this important project
for Northland,” said Jan Johansson,
CEO of Peab.
Peab will also be responsible for the
construction of the entire infrastructure
at the Fagernes terminal in Narvik. The
terminal will consist of a quay, a heated
unloading facility for the railcars, a stor-
age building and a ship loader. In addi-
tion, Peab is also responsible for con-
struction of the transload terminal at
Pitkäjärvi, where pre-development has
already started. The construction agree-
ment with Peab is valued at approxi-
mately $60 million.
Savage will operate the rail link from
the transload terminal at Pitkäjärvi to
Narvik. The concentrate will be trans-
ported on the 226-km-long Malmbanan
railway. Malmbanan is currently used for
iron ore transportation by Swedish iron
ore producer LKAB.
Savage also will supply management
services for the whole logistics chain,
including overall responsibility for coordi-
nation and management between Peab,
Savage and Grieg.
SUPPLIERS REPORT
Grieg will operate the Fagernes ter-
minal in Narvik, where the iron ore con-
centrate will be transferred from railcars
to cape-size vessels for shipment to
customers. The terminal is expected to
load vessels of up to 180,000 mt.
However, use of the Fagernes terminal is
a temporary solution extending a mini-
mum 10 years, said Northland, and the
company is in discussions with the
Narvik municipality to find a long-term
terminal solution.
Northland also noted that Kiruna
Wagon will deliver 150 railcars to be
used for transporting the iron ore on the
Malmbanan railway; and Northland has
an option to buy 44 to 92 more cars from
Kiruna Wagon. The railcars will be deliv-
ered between January 1, 2013, and May
5, 2014.
Northland said these combined
logistical agreements, which are in
effect until the end of 2021, have a
total value of approximately $900
million.
Also in April, Northland announced
that Pon Equipment will be responsible
for maintenance of the Caterpillar equip-
ment to be used at the mine.
The agreement with Pon encompasses
maintenance, repairs and service on the
23 items of equipment that will be deliv-
ered starting in the second quarter of
2012 through the fourth quarter of
2014. The fleet consists of haul trucks,
mining shovels, track dozers, wheel load-
ers and motor graders. The contract will
be in effect for five years from
Northland’s acceptance of the first
equipment.
MAY 2012 • E&MJ 151
 P R O C E S S I N G S O LU T I O N S
Metso Introduces a New Concept
in Mill Liners
Metso’s Megaliner mill-liner shell element requires fewer attachment points than conventional liners.
Metso Mining and Construction’s new
Megaliner shell liner has been designed
to reduce downtime for large grinding
mills to a minimum, employing an
innovative design that allows faster
replacement. According to the compa-
ny, it also improves worker safety dur-
ing maintenance, as the liners are bolt-
ed into position from the outside of
the mill and workers are not required
to stand within the ‘drop-zone’ area of
the liners.
Mill availability is improved through
faster liner replacement. Megaliner,
said Metso, uses larger than average
liners yet these can still be placed with
the same 6- to 8-axis liner handlers
commonly used with large AG mills.
Using larger liners means mills require
fewer of them and Megaliner also has
fewer attachment points compared with
conventional liners, speeding up instal-
lation even further. Liners are easily
and accurately positioned before bolt-
ing with the aid of highly visible, col-
ored guiding markers.
Metso said it designed the system to
make removal and replacement of liners
as quick, safe and easy as installation.
Bolting and unbolting is straightfor-
152 E&MJ • MAY 2012
ward, as the threaded portion of the
standard hex-head liner bolts is pro-
tected from dust, corrosion and general
mechanical damage. Once loosened, it
is often possible to remove the liner
bolts simply by hand-turning them.
Workers fasten the liner’s attachment bolts from the
outside of the mill, improving personal safety.
Pneumatic or recoilless hydraulic ham-
mers are not needed to dislodge worn
Megaliners, as gravity alone is general-
ly sufficient.
The Megaliner is suitable for large
AG mills with large trunnions and where
modern liner handlers are available.
Each Megaliner element integrates
multiple lifter and shell plate rows, and
covers an area up to 4 m2 (43 ft2).
The rubber-and-metal composite liner
weighs 30% to 60% less than metallic
liners of a similar size.
Overall, said Metso, installing and
replacing mill liners with the Megaliner
system creates a much safer and less
stressful environment for the liner han-
dler operator and the installation team.
Wear Material Can be Molded
to Suit Any Application
British Columbia, Canada-based Red-
wood Plastics claims its Redco Epicure
(Cx) offers substantial improvement
over traditional lining materials such as
urethane, UHMW, rubber and other
polymers in harsh-wear applications. In
addition to saving costs through longer
part life, the company said Redco
Epicure (Cx) can be custom molded
directly into finished parts, greatly
reducing labor and material waste asso-
ciated with machining parts from stock
shapes. The company’s mechanical
designers will work with customers to
design components that target the
needs of their unique application.
Physical characteristics of Epicure
(Cx) include the ability to perform
in extreme environments from -60°C
(-76°F) to 105°C (221°F), premium
wear and abrasion resistanance (rein-
forced with ballistic composite), and
standard durometer hardness of 85A,
with custom formulations available in
other ratings. The material’s standard
color is yellow.
Applications include: liners for pipe,
pump, chutes and hoppers, impellers,
wear pads and bumpers, spouts and
nozzles, crusher and conveyor parts,
agitators and mixer paddles, cable
guides, screens, filters and classifiers
and others.
www.e-mj.com

High-power Separator Rolls
Provide a Purer Product
Increasingly stringent product specifi-
cations require more efficient separa-
tion methods, and Eriez claims its Rare
Earth (RE) Roll Separators provide peak
separation efficiency to ensure excep-
tional product purity.
“Our new and stronger permanent
magnetic separators provide a more
efficient alternative for handling a wide
variety of materials that do not respond
well to traditional methods of separa-
tion,” said Dave Heubel, director of
North American sales. “Our RE Roll
Separators bring together extraordinary
magnetic strength and superior product
design, enabling this equipment to
meet even the toughest customer chal-
lenges. These separators are essential
in response to new advances in materi-
als and specifications. Increasingly,
there is a demand for higher purity
feedstocks.”
Eriez’s Rare Earth Roll Separators use high-performance magnets to recover weakly magnetic mineral particles
ranging from fines up to 13-mm diameter.
www.e-mj.com
RE Rolls are constructed with neo-
dymium-boron-iron rare earth permanent
magnets that are claimed to offer at
least 10 times the attractive force of
conventional magnets. The high-gradient
magnetic circuit includes a variety of
proprietary items designed to produce a
magnetic field in excess of 21,000
gauss. These highly magnetic rolls are
capable of recovering weakly magnetic
particles, and will handle feeds from
0.5-in. (13 mm) to very fine materials.
Eriez RE Rolls are available in 3-, 4-
and 6-in. (76. 102 and 152-mm) diam-
eter rolls. Roll widths range from 5 to
60 in. (127 to 1,524 mm). A unique
cantilever design allows quick belt
replacement, requiring only one opera-
tor. The standard belting is Teflon-coat-
ed, graphite-filled Kevlar with thick-
nesses of five and 10 mils.
The units are available in single-,
double- and triple-stage versions with
either non-magnetic or magnetic-rerun.
P R O C E S S I N G S O LU T I O N S
Effluent Treatment Project
Advances at Halfmile Mine
Veolia Water Solutions & Technologies
Canada is currently engaged in a pro-
ject for the design and supply of a
1,000-m3/d effluent treatment plant to
serve Trevali Mining Corp.’s Halfmile
zinc-lead-silver-copper mine in New
Brunswick. The new zinc-lead-silver-
copper mine, situated 60 km south of
Bathurst, commenced production earli-
er this year.
The scope of the fast-track design-
build effluent treatment project
includes the entire treatment plant as
well as the construction of the building.
The plant will provide precipitation,
decantation and filtration, plus pH cor-
rection to provide a treated mine efflu-
ent that meets the Canadian Council of
Ministers of the Environment (CCME)
Water Quality Guidelines for the
Protection of Aquatic Life.
According to Paul Keller, Trevali's
vice president of operations, the plant
incorporates metals precipitation using
ACTIFLO Turbo, a high-rate, small-foot-
print clarification process. The process
uses sand-ballasted settling and a draft
tube reactor that allows for a compact
design with high overflow rates and short
detention times. This design enables the
unit to perform well under dynamically
changing flow rates without impacting
final effluent quality. By combining the
proprietary Hydrex reagent to magne-
sium hydroxide, the solids produced in
the ACTIFLO unit will be larger than
sodium. After clarification, the water
undergoes sand filtration to remove any
remaining solids, followed by pH correc-
tion. Instrumentation and automation
features permit remote monitoring of the
entire water treatment plant.
Trevali has been constructing
Halfmile’s civil works since March
2011, and began production at the
underground operation in January
2012, with a planned production ramp-
up to a rate of 2,000 mt/d.
Trevali has two advanced-stage
polymetallic (zinc-lead-silver-copper)
deposits in Canada and Peru—Halfmile
and Santander, respectively. In Canada,
Trevali owns the Halfmile mine and
Stratmat polymetallic deposit in the
Bathurst Mining Camp of northern New
Brunswick, and the past-producing
Ruttan copper-zinc mine in northern
Manitoba.
MAY 2012 • E&MJ 153
 E Q U I P M E N T G A L L E RY
New Hitachi Hydraulic Excavators
for Mining
EX2600-6
EX5600-6
Hitachi recently introduced new versions
for two of its mining-class hydraulic exca-
vators—the EX5600-6 and the EX2600-
6. Both -6 models feature bucket capaci-
ty increases compared with the -5 ver-
sions, and also offer claimed productivity
improvements ranging from 17% in the
backhoe version of the EX5600-6 to 12%
for the shovel version; and from 13% in
the EX2600-6’s backhoe configuration to
4% for the shovel version. Hitachi said it
has shortened the reach of the EX5600-6
backhoe front attachment and boosted
engine output, resulting in higher produc-
tivity with cycle times equivalent to the -5
version. Front-shovel bucket capacity for
the larger EX5600 has been increased as
well, from 27 m3 (35.5 yd3) to 28 m3 (38
yd3). In addition, hydraulic pump output
has been increased by 10% through a
change in the pump drive gear ratio, pro-
154 E&MJ • MAY 2012
viding higher hydraulic flow rate at the
same pressure. Other related improve-
ments include a new design and manufac-
turing process for the machine’s hydraulic
oil cooler. Fan speed has been increased
to provide additional cooling capacity. The
EX5600-6 is powered by a Cummins
diesel similar to that used in the -5 ver-
sion, but with increased horsepower.
The basic configuration of the -5’s cab
is retained, but LED lighting has been
adopted for longer life and less heat gen-
eration. Interior features include an air
suspension seat and low-effort short-throw
levers with electric fly-by-wire, along with
optional provisions for extreme operating
conditions and optional digital interface
with major mine management systems.
Bucket capacity for the EX2600-6
backhoe version has been increased
from 15 m3 (19.6 yd3) to 17 m3 (22.2
yd3), and as with the EX5600-6, the
reach of the backhoe front attachment
has been shortened and engine output
boosted to achieve higher productivity
with cycle times equivalent to the previ-
ous version. Radiator and oil cooling per-
formance have been increased through a
changeover to a single 60-in. (1,524-
mm) fan from the previous model’s two
smaller fans. The EX2600-6 also offers
the improved hydraulic pump output per-
formance and improved hydraulic oil cool-
er design included in its larger sibling.
The -6 version also provides a new
exterior walkway near the right rear and
across the counterweight for easier
access to key areas.
www.hitachimining.com
Hoses for Extremely
Cold Environments
Two new hose models from Parker
Hannifin are engineered to work in tem-
peratures as low as -70°F (-57°C)—the
industry’s lowest temperature rating—
while maintaining high performance.
Specifically designed, tested and field-
proven for high-impulse, heavy-duty
applications, Parker’s 472LT and 722LT
hoses are claimed to be ideal for mining,
drilling and construction equipment used
commonly throughout northern Canada
and the Arctic Circle. The No-Skive, two-
wire braided 472LT hose is rated for
high-pressure applications that operate
at up to 5,800 psi (40 MPa), and uses
Parker’s standard 43 Series fittings.
Parker’s 43 Series fittings are offered in
the widest range of end configurations
available. Rated up to 4,000 psi (28
MPa), the No-Skive, four-wire spiral
722LT is available in a wide range of
sizes and incorporates a patent-pending
spiral reinforcement construction that
472LT
722LT
www.e-mj.com
 E Q U I P M E N T G A L L E RY

provides longer life in heavy-duty appli-

cations compared with standard braided
hose. It also uses Parker’s 43 Series fit-
tings, as well as the 71 Series (for size -
24). These hoses can be crimped using
Parker’s Parkrimp system.
www.parkerhose.com

Hand-held Torque Multiplier

Eases Tough Tightening Jobs
According to torque-tool specialist
Mountz, its HG hand torque multiplier is
an ideal tool for extreme applications of
torque to loosen or tighten bolts or nuts,
in environments where air power or elec-
tricity aren’t easily accessible. The com-
pact, versatile torque multiplier applies
precise amounts of torque or power in
nearly any heavy-duty fastening situation,
eliminating requirements for multiple chuckable parts. Work pieces can be clad thickness, and permits the travel carriage
operators and enhancing safety. Forged with stainless steel, Iconel, or other exot- to be disengaged for rapid re-positioning.
parts ensure the HG’s gears can withstand ic metals at a rate of up to 5 lb (2.3 kg) www.cpmt.com
the highest loads. A shear pin at the input of metal per hour, reducing weld times.
drive protects the HG from overload and The machine rotates the work piece, fea- Level Scanner Copes with
minimizes the chance of operator injury. tures an automated axial feed that uses a Challenging Silo Conditions
Mountz offers various hand torque multi- “step” process for precision bead place- BinMaster Level Controls’ 3DLevel-
plier models with a maximum torque ment and complete weld coverage, offers Scanner HE is designed for use in stor-
capacity up to 36,800 ft-lb. independently adjustable parameters age silos containing challenging materi-
www.mountztorque.com that allow the user to control the bead als such as clinker, alumina and fly ash.

System Offers Enhanced

Wear-cladding Capabilities
Climax Portable Machining and Welding
Systems says its AutoClad machine is an
innovative system for cladding the inside
diameter of nozzles, tubes and other cir-
cumferential components for protection
against corrosion from caustic chemicals,
or erosion from slurries. Usually manu-
factured from mild steel, these com-
ponents can be clad with a protective
material such as stainless steel or a nick-
el alloy to provide corrosion resistance.
Although most welding processes leave
voids where corrosion can damage the
base metal, AutoClad provides void-free
welds by combining GMAW welding with
automated axial feed and rotation of

www.e-mj.com MAY 2012 • E&MJ 155

 E Q U I P M E N T G A L L E RY
This new version of the 3DLevelScanner
has an operating temperature range of up
to 250°F (120°C) and, according to
BinMaster, is ideal for use where there
are multiple challenges such as dust or
high humidity and very large silos where
the material surface in the bin may be
156 E&MJ • MAY 2012
uneven and difficult to measure. In prac-
tice, dependent on the diameter and
height of the silo and the desired level of
volume accuracy, one or more 3DLevel-
Scanners is mounted on the top of the
silo in strategic locations determined by
using advanced proprietary software.
Each dust-penetrating, non-contact sen-
sor sends pulses in a 70° beam angle,
taking multiple measurements from the
material surface and calculating a highly
accurate volume estimate for the con-
tents of the silo. The 3DLevelManager
software reports the lowest and highest loaders, trucks and other equipment.
points detected and the average level Content includes high-resolution images
based upon a weighted average of all of that allow products to be viewed from all
the measurements detected in the bin. angles. In addition, content can be syn-
www.binmaster.com chronized so that it can be accessed
offline, and the app’s GPS function can
Underground Equipment App direct users to the nearest Atlas Copco
Showcases Product Lines office. The app will also feature case sto-
Responding to the growing use of smart ries and a social network news feed.
phones, tablets and other hand-held www.atlascopco.com
devices, Atlas Copco has introduced a
mobile-device app from its Underground Motor Analysis System is
Rock Excavation division. By download- Faster and More Accurate
ing the free app, users gain access to SKF says its new Baker DX static motor
information pertaining to the company’s analyzer models—which help users iden-
range of underground face drilling rigs, tify potential problems with motors and
www.e-mj.com
 E Q U I P M E N T G A L L E RY

generators—will replace older-generation

Baker D-series and ST series surge test
analyzers, and perform analysis faster
and more accurately than previous gener-
ation models. The new models now
include low-voltage inductance, imped-
ance, phase angle and capacitance, coil,
and DC step voltage tests in a smaller,
lighter-weight portable unit. Like their
predecessors, these analyzers also con-
duct winding resistance, megohm, DC
HiPot, surge tests and DC bar-to-bar
armature tests. All units come with a
more intuitive, easy-to-navigate touch
screen graphical user interface, and can
be ordered in an array of configurations
that suit the specific needs of a given
customer. DX analyzers can perform
motor tests from 4 to 40 kV (with an
optional Power Pack), and are available
in 4kV, 6kV, 6kV HO (high output), 12kV,
and 12kV HO versions, along with a wide
array of options and accessories to meet operators to change parts more quickly detects a potential problem. The pump is
specific application needs. Such options and efficiently, with the help of a unique, available in six discharge sizes ranging
include coil test, resistance-inductance- tapered impeller shaft, and the pump’s from 80 mm (3 in.) to 300 mm (12 in.),
capacitance test, DC armature test, sim- i-Alert condition monitor uses ITT and in four power frames. Its flow range
ple meg-ohm test, and either single- or proprietary technology to measure extends to 2,950 m3/h (13,000 gal/min),
three-lead configurations. vibration and temperature, and signals and discharge pressures to 85 m (280 ft).
www.bakerinst.com users with a blinking red LED when it www.itt.com

Award-winning Slurry Pump

ITT Goulds Pumps announced its XHD
extra heavy-duty lined slurry pump was
recently chosen from among eight
finalists as the “most innovative pump,
pumping system or other pump related
product introduced onto the market
within the last 12 months” by the British
Pump Manufacturers’ Association. Intro-
duced in late 2011, the XHD is designed
to allow mines and related operations to
move heavy slurries with improved
reliability at lower operating cost,
according to ITT Goulds, and its short
bearing housing is easily adaptable to
nearly any existing foundation, so
operators can replace existing slurry
pumps without investing in costly refitting
of pipes, electrical lines and concrete
base structures. Other features include an
adjustable suction seal ring that allows
adjustment while the pump is running,
compensates for wear and maintains
optimum impeller clearance for peak
performance; a split stuffing box that
improves accessibility for easier and
faster packing maintenance; and dual
impeller adjustment for quick, easy
access to perform impeller corrections. A
replaceable wet end cartridge allows

www.e-mj.com MAY 2012 • E&MJ 157

C O N S U LTA N T S & S E R V I C E S

HELP WANTED

VISIT
WWW.E-MJ.COM
FOR MORE
INFORMATION

158 E&MJ • MAY 2012 www.e-mj.com

FOR SALE
TARGET YOUR MARKET WITH
CLASSIFIED ADVERTISING!
For more information contact:
Norm Rose at
(770) 664-0608 or
nrose@mining-media.com
Tanna Holzer at
(303) 283-0640 ext. 206 or
tholzer@mining-media.com
FOR ADVERTISING
CONTACT YOUR
INTERNATIONAL SALES
REPRESENTATIVES:
U.S. & Canada - Victor W. Matteucci
5931 Christopher Court • Mentor, OH 44060, USA
Tel: +1 440-257-7565 • Fax: +1 440-257-6265
vmatteucci@mining-media.com
Germany, Austria & Switzerland - Gerd D. Strasmann
Strasmann Media-Promotion GmbH
Berghausen 29 • D-42859 Remscheid, Germany
Tel: +49 2191 931497 • Fax: +49 2191 931499
info@strasmann-media.de
UK, Scandinavia, Europe - Colm Barry
Vallgaten 20, 234 32 Lomma, Sweden
Tel: +46 (0) 40 414178 • Fax: +46 (0) 40 414178
colm.barry@telia.com
Japan - Masao Ishiguro
IRM Inc. • 1-5-3-304 Roppongi
Minato City, Tokyo 106-0032 Japan
Phone: +813 3583-1161 • Fax: +813 3582-2576
ishiguro@irm.jp
Rest of World - Peter Johnson
8751 East Hampden Ave., Suite B1
Denver, CO 80231, USA
Tel: +1 303-283-0640 • Fax: +1 303-283-0641
pjohnson@mining-media.com
www.e-mj.com
ABB ..................................................................15
AMC Consultants ............................................138
Andina Minerals ..............................................116
Apogee Silver Ltd ............................................122
AQM Copper Inc ..............................................119
ASGCO ............................................................157
Astec Mining ....................................................39
Atacama Pacific Gold Corp ............................118
Atlas Copco - Excore ........................................31
Atlas Copco - T-WiZ ..........................................57
AuRico Gold ....................................................108
Baldor Electric Co ............................................11
BASF................................................................137
BBA ................................................................133
BDO ..................................................................96
Bel-Ray ............................................................21
Boart Longyear ................................................BC
C.J. Stafford & Associates ..............................146
Cadillac Ventures Inc ........................................83
Carlisle Goldfields ..........................................128
CMS Cepcor ......................................................63
Cummins, Inc......................................................9
Detour Gold ......................................................71
Donner Metals Ltd ..........................................129
DRA Americas Inc..............................................87
Dumas Mining ................................................144
Dundee Corp ....................................................94
Dundee Precious Metals Inc ............................107
Excellon Resources Inc......................................74
Flanders ............................................................43
FLSmidth Krebs ................................................33
FLSmidth Maag Gear ........................................27
Foraco ............................................................135
Foth ................................................................139
Franco-Nevada Corp ......................................102
Gatewing ..........................................................47
GMP Securities ..................................................99
Gowest ..............................................................85
Gundlach Equipment Corp ..............................157
Guyana Goldfields Inc ....................................114
Hägglunds Drives AB (Bosch Rexroth AG) ........25
Hallmark Inc ..................................................141
Highwork Ltd ..................................................145
Hilliard Corp......................................................65
Hitachi Construction Machinery Co, Ltd ..........IFC
Hitachi Mining ..................................................19
HTX Minerals ....................................................73
IBK Capital Corp ..............................................97
InnovExplo ......................................................140
Irwin Lowy LLP ................................................101
ITT Goulds....................................................22-23
ADVERTISING INDEX
Jennings Capital Inc ........................................88
Komatsu............................................................17
L&H Industrial ..................................................45
Lagodourado Minerals Ltd ..............................112
Lake Shore Gold Corp ......................................130
Latin American Minerals Inc ..........................113
Lithium Americas ............................................126
Lubriplate Lubricants......................................155
Mansour Mining Technologies Inc ..................143
McLanahan Corp ..............................................61
Mega Precious Metals Inc ................................72
Metso ..............................................................IBC
MINExpo 2012 ................................................147
Mining Technologies Int’l Inc (MTI) ................142
Ministry of Economic Development (MED) ........49
Montero Mining and Exploration......................123
Nexans ..............................................................37
Noront..........................................................68-69
Northern Graphite Corp ....................................92
Northern Shield Resources Inc ..........................75
Northern Superior Resources ............................76
P&H Mining Equipment Inc ........................51, 53
Primero Mining Corp ......................................110
Queenston Mining Inc ......................................79
Rainy River Resources Ltd ................................77
Rockex Mining Corp ..........................................93
Rockmore Int’l ................................................149
Sandspring Resources Ltd ..............................115
Sandvik Mining and Construction ......................3
SilverCrest Mines Inc ......................................111
Sparton ............................................................86
Spektra..............................................................91
Spinner II (T.F. Hudgins, Inc) ............................64
Sprott Inc ........................................................100
SRK ................................................................141
Stans Energy Corp ..........................................124
Stantec............................................................134
Superbolt ........................................................156
Target Logistics ................................................13
Teranga Gold Corp ..........................................105
Transition Metals ..............................................73
Trelawney Mining and Exploration Inc ..............81
Twiflex Ltd ......................................................156
U3O8 Corp ......................................................125
US Silver..........................................................121
Victoria Gold Corp ..........................................106
Volvo Penta ......................................................66
Wallbridge Mining Co Ltd..................................90
Weir Minerals (Weir Slurry Group, Inc) ................7
Xstrata Process Support..................................131
MAY 2012 • E&MJ 159
 MARKETS

Searching for Direction

One year ago, Stockholm-based Raw
Materials Group (RMG) forecast that a bas-
Metal price forecasts ($/mt unless otherwise stated)
ket of base metals (copper, nickel, lead 2011 Difference 2012 y-o-y 2013 y-o-y
2011 Forecast (%) Forecast (%) Forecast (%)
and zinc) and precious metals (gold, silver,
platinum and palladium) would continue to Copper 08,810 09,600 -09.0 08,600 0-2.3 08,900 -03.5
recover from the global financial crisis. Zinc 02,190 02,400 -09.6 02,000 0-8.7 02,300 -15.0
They did. Indeed, they reached new highs Nickel 22,838 25,000 -09.5 19,000 -16.8 21,000 -10.5
in 2011, with gold achieving $1,861/oz
Lead 02,395 02,500 -04.4 02,250 0-6.1 02,450 -08.9
(weekly average basis), silver $46/oz and
copper $9,974/metric ton (mt). But what Gold ($/oz) 01,571 01,500 0-4.5 01,775 -13.0 01,825 -02.8
lies ahead? Silver ($/oz) 00,035 00,030 -14.8 00,033 0-6.3 00,030 0-9.1
Concern over debt in Europe and infla- Platinum ($/oz) 01,719 01,850 -07.6 01,700 0-1.1 01,800 -05.9
tion in China will clearly dominate market
Palladium ($/oz) 00,731 00,830 -13.5 00,710 0-2.9 00,750 -05.6
sentiment this year, with a particular im-
Source: Raw Materials Group
pact on the base and precious metal sec-
tors. However, in its annual metal price secondary sources and created a highly 2011, it was expected that delays in high
forecast for 2012, RMG predicts the re- volatile gold market. pressure acid leach would keep the nickel
mainder of the year will see a return of con- RMG believes this uncertainty in the market near balance; as it did.
sumer confidence, and increased demand financial markets is likely to maintain the This year, and over the coming years, this
for commodities. current gold price, and drive it toward (but supply is expected finally to arrive, creating
RMG’s predictions are shown in the unlikely to reach) a weekly average price of a supply surplus which has the possibility of
table above. The forecast, on a yearly aver- $2,000/oz. Down-side pressure from the being exaggerated in the first half year due
age basis, is flat for the majority of the met- strengthening U.S. dollar and improving to the expected ‘soft’ steel industry.
als covered, unlike last year’s predictions. U.S. economic conditions, and less likeli- Nevertheless, RMG expects 2012 to see
The two exceptions are gold (up 13% year- hood of another round of quantitative eas- a new high in the group’s metal price index.
on-year) and nickel (down 12.4% year-on- ing, are likely to reduce market volatility. For 2013, RMG forecasts that the
year). Gold increased 28% year-on-year in This is especially likely if the European largest price movements will be for the
2011, being only outperformed by silver sovereign debt issues and the trend of base metals, particularly zinc. This metal
(up 74%) and palladium (38%). The metal moderating global inflation (the forecast is forecast to average $2,400/mt next year,
continued to reach all-time highs due to includes China controlling inflation within up 14.3% year-on-year. RMG also fore-
the influx of investor interest, investors its economy) are contained. casts that demand will return for platinum
searching for safe havens and the low real For nickel, 2011 saw the metal perform and palladium due to consumer confi-
interest rates. This strong increase in the below expectations (RMG’s forecast was dence returning to the automobile indus-
demand for gold (against fears of contagion 9.5% above the actual price) due to the try, and precious metal traders moving
in Europe), coupled with a flat supply of softer than expected steel industry through away from the forecast flatter gold market
mined gold, required large influxes from the final three quarters of the year. In into the PGMs.

(May 1, 2012)

Precious Metals ($/oz) Base Metals ($/mt) Minor Metals ($/mt) Exchange Rates (U.S.$ Equivalent)

Gold $1,662.20 Aluminum $2,067.00 Molybdenum $31,500 Euro (€) 1.3245

Silver $30.97 Copper $8,528.00 Cobalt $30,800 U.K. (£) 1.6223
Platinum $1,575.00 Lead $2,150.50 Canada ($) 1.0134
Palladium $684.00 Nickel $17,525.00 Iron Ore ($/dmt) Australia ($) 1.0358
Rhodium $1,385.00 Tin $22,725.00 Fe CFR China $145.70 South Africa (Rand) 0.1290
Ruthenium $115.00 Zinc $2,049.00 China (¥) 0.1587

Gold and silver prices provided by KITCO Bullion dealers (http://www.kitco.com). Platinum group metals prices provided by Johnson Matthey (http://www.platinum.matthey.com).
Non-ferrous base and minor metal prices provided by London Metal Exchange (http://www.lme.co.uk). Iron ore prices provided by Singapore Mercantile Exchange (SMMBIO).
Currency exchange rates were provided by the GoCurrency.com.

160 E&MJ • MAY 2012 www.e-mj.com