The future’s golden Chelopech

THE FUTURE’S GOLDEN

Bulgarian copper and gold mine, Chelopech, is utilising its investment in exploration to ensure that its mine is environmentally and economically sustainable. Emma-Jane Batey spoke to the general manager of Chelopech Mining EAD, Nikolay Hristov, to find out more.

One of two Bulgarian subsidiaries of the respected international mining group Dundee Precious Metals, Chelopech Mining EAD operates a copper and gold deposit 70km from the capital Sofia. Alongside Balkan Mineral and Mining EAD, Chelopech has gained considerable investment from Dundee Precious Metals since it was acquired by the group in 2003, which has allowed the mine to continue its impressive upward growth.

Chelopech’s general manager, Nikolay Hristov, told Industry Europe how this solid investment programme has allowed the mine to reach its ambitious goals. He said, “Dundee took up the challenge to invest in Bulgarian mining when the overall sector was not enjoying a good image or reputation and the Chelopech mine was in a dire financial situation. The considerable investment from Dundee has allowed the mine to flourish, and today Chelopech is a profitable and efficient mining operation doing business on a global scale. In the period from 2003 to 2010, we introduced some of the most advanced mining technology available and we made significant improvements both on the surface of the mine and underground. The mining sector is very different now as it’s more positive, with Chelopech in particular developing rapidly in terms of environmental protection and the sustainable development of local communities.”

Utilising investment

As one of the largest mineral deposits in Europe, Chelopech is mining copper and gold ores using an underground method and then it processes the ores into finished products, creating a copper, gold and silver concen-

trate. This concentrate is currently processed further by the Dundee-owned Tsumeb smelter in Namibia, turning it into black copper. This represents the mine’s core product, which certainly utilises the investment in new equipment, improvements to the working environment and various additional safety systems.

The steady investment has also seen Chelopech upgrade its goals for performance across the company. Mr Hristov explained, “Our efforts are primarily focused on continuous improvements to our work efficiency and for increased ore and concentrate throughout. We have a number of large-scale projects already underway to enable us to implement these goals, and as we continue with further exploration of more mineralised zones, we believe we will positively contribute to further extending the life of the mine by identifying opportunities where our skills and raw materials are valued.”

As the Chelopech mine is considered a major part of the Dundee Precious Metals portfolio, the most recent investment programme is set to double the mine’s ore throughput to 2 Mtpa by 2012. The ongoing expansion project has a large-scale upgrade of the process plant as well as the optimisation of the mining processes, with a total of USD 150 million invested across the project.

Mr Hristov said, “The upgrade of the process plant has resulted in automated ore processing, and new high-tech facilities have also already been commissioned,

including a new SAG mill and high capacity floatation machines. The expansion project will also see our Chelopech Tailings Management Facility upgraded so that we have total compliance with the most stringent modern safety standards.”

With more than 1000 professionals employed across various disciplines, Chelopech’s future success is also strongly supported by its skilled workforce. Employee training is also a key recipient of steady investment, making sure that all aspects of the mine are operated by highly skilled workers.

The role of gold

While the gold mining industry is often referred to in relation to the price of gold, particularly during times of global economic uncertainty, Mr Hristov pointed out that this precious metal is also used in many other industries, such as electronics, medicine and various processes that impact on our everyday life. He said, “Gold mining itself is a very important economic factor in many national economies. The mineral raw materials sector is crucial for the Bulgarian economy in particular and it is estimated that it accounts for up to five per cent of the GDP, offers direct employment for some 30,000 people and indirectly for a further 120,000.”

The future of the Chelopech mine looks set to cement the positive development that the company has enjoyed since 2003, with the ongoing investment and expansion project expected to realise the mine and its employees’ great potential. With the acquisition of the mine by Dundee Precious Metals allowing many of its young Bulgarian workers the opportunity to visit world-class mines and learn from their experienced workers, the implementation of best practice throughout Chelopech has certainly contributed to its ongoing success.

Mr Hristov concluded, “We will continue to invest in new technologies, environmental stewardship, occupational safety and employee training. We have clear access to an excellent deposit, and we have motivated, professional employees that can utilise this opportunity. We will also continue our goals to be an efficient and profitable mining operation, and to ensure that Chelopech becomes a leading mining operation not only in Bulgaria but also worldwide.” n