World News

ETHIOPIA Akobo Minerals complete Segele scoping study

Aft er 10 years of exploration work, culminating in a JORC compliant maiden resource estimate earlier this year, followed by the recent grant of a large scale gold mining license, Akobo Minerals has released its scoping study for the Segele deposit. The results are encouraging and exceed previous expectations.

The scoping study indicates what the potential economics of mining the Segele deposit can look like. The study has been completed with contributions from respected geologists, engineers, and environmental, social, and governance practitioners (SRK Consulting, Sazani Associates, Goshawk Network Technologies and Borrego Sun).

The result confirms that the mineralisation at Segele can be mined and processed with an estimated AISC of US$243/oz, while the total life of mine operational expenditure, excluding royalties, is estimated at US$137/oz. Total capital expenditure for setting up the mine plant to start production is estimated at US$8 million, equalling an average of US$153/oz for the current resource estimate of 52.410 oz. This average will go down as more resources are added over time.

Akobo Minerals is planning to mine the gold mineralisation using methods such as shrinkage stoping or similar. These rocks will be brought to surface using an incline shaft that will take 11 months to build. At peak production, just under 6000 tpm of rock will be mined and this material will be passed into an industry standard crushing and gravity circuit, with cyanidation where necessary. The company plans to purchase a plant capable of processing 20 tph, but initially operated at 10 tph to allow for expansion. The plant is expected to extract 90% of all gold in the mineralisation, but this will be confirmed by the ongoing metallurgical testwork.

The scoping study has focused only on the mineralisation covered in the SRK mineral resource estimate, allowing for an anticipated mine life of 27 months. Ongoing exploration has identified additional mineralisation at depth, which leaves open the opportunity to extend the mine’s life.

As with all anticipated underground mining operations, not all ore can be mined or exploited and as such, the scoping study estimates an extraction percentage 81%; the grade will be diluted by 5% and ore loss is expected to be 8%. These figures are in-line with or better than industry standards. A sustainable natural resources management plan is planned alongside mining. Such a plan may allow the company to contribute to the United Nations Sustainable Development Goals.

The scoping study is the first phase in the process of developing a business plan for mining at Segele and has an accuracy of between 30 – 50%. Akobo Minerals has already begun a prefeasibility study, which typically has an accuracy of +/- 25%. The prefeasibility study will involve a resource upgrade, selection of mining method and detailed plant design. It also allows for the publication of cash flow models and ore reserves.

SPAIN Weir Minerals signs purchase contract for Highfi eld Resources’ Muga Mine

Highfield Resources has announced the signing of a purchase contract with Weir Minerals for important components of a process plant, in order to finalise the pre-construction activities at its flagship Muga Potash Mine.

Following a recent AUS$18.1 million capital raise, the company is well funded to finalise the purchase contracts of the remaining long-lead items. With the signing of this purchase contract, 85% of the planned equipment needed for the plant has now been contracted. The remaining 15%, which includes cross-flow separators, dryers, thickeners and flotation columns, is expected to be formalised soon. The remaining equipment, mainly mining equipment, will be acquired prior to start of operations. Completion of the procurement of the process plant equipment is key for allowing improvements in the detailed engineering design of the plant, with the design of the specific equipment used. In addition, it allows Highfield to cover the long lead manufacturing times of this type of equipment.

Weir Minerals is providing both primary and secondary concentrate screens, which will be used for the granulometric separation in the initial phase of the crushing, grinding, and desliming processes. The hydrocyclones from Weir will be used to remove the fine particles from the slurry (known as desliming) prior to flotation.

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Diary Dates

Iron Ore Conference 2021 08 – 10 November 2021 Perth, Australia & Virtual www.ausimm.com/ conferences-and-events/iron-ore

Mining Indonesia 2021 17 – 20 November 2021 Jakarta, Indonesia www.mining-indonesia.com

Mines and Money London 01 – 02 December 2021 London, UK https://minesandmoney.com/london

International Mining and Resources Conference (IMARC) 31 January – 02 February 2022 Melbourne, Australia & Virtual https://imarcglobal.com/

MINEXCHANGE 2022 SME Annual Conference & Expo 27 February – 02 March 2022 Salt Lake City, USA www.smeannualconference.com

Future of Mining Australia 2022 28 – 29 March 2022 Sydney, Australia https://australia.future-of-mining.com

Euro Mine Expo 14 – 16 June 2022 Skellefteå, Sweden www.euromineexpo.com

To stay informed about the status of industry events and any potential cancellations of events due to COVID-19, visit Global Mining Review’s events page: www.globalminingreview.com/events

COLOMBIA Nokia implements wireless 5G test for AngloGold Ashanti Colombia

Nokia and AngloGold Ashanti Colombia, in collaboration with Epiroc, Sandvik, Tigo and OSC Top solutions, have conducted the first underground 5G mining trial in Jerico, Colombia. The successful trial proves it is possible to safely, sustainably, and eff iciently deploy multiple mining use cases over a private 5G SA industrial-grade network in a challenging underground environment. It also demonstrates how government, service providers, and industry have come together to advance the digital transformation of the mining industry in Colombia and Latin America.

Four mining use cases were tested as part of the trial, including mission-critical communications, connectivity and remote teleoperation of vehicles, mining machinery and systems, and inspection and monitoring with drones and high-definition cameras.

Nokia deployed an industrial-grade 5G private wireless network, which provides ultra-wideband connectivity, with speed in excess of 1 Gbps and with scope for ultra-low latency. The network is powered by the latest Nokia AirScale 5G portfolio in the 3.5 GHz spectrum band with the support of Tigo Colombia, and has been deployed in the context of the 5G testing framework of the Ministry of ICT.

The proof of concept includes AirScale radio bases and adaptive antennas with massive MIMO capability, all integrated into a 5G SA architecture with network partitioning capability, which allows independent virtual networks to be generated for each use case.

The pilot was carried out in close collaboration with Epiroc and Sandvik, who are developers of vehicles and mining automation systems, with OSC Top solutions for the integration of services and solutions for drone inspection.

According to a recent study by Nokia and OMDIA, 5G technology will generate a positive economic impact of US$11.4 billion in Colombia’s mining sector during 2021 – 2035.

In order to support the mining industry’s eff orts towards sustainability, Clariant has announced a new technical facility – the Competence Center for Tailings Treatment (CCTT) in Belo Horizonte, state of Minas Gerais, Brazil – exclusively dedicated to developing solutions for tailings management.

The CCTT will develop mining chemicals and technologies to support the industry’s eff orts from the heart of Brazil’s mining hub. The new lab is outfitted with state-of-the-art equipment and is home to a dedicated team of research and development experts.

The new CCTT is a core pillar of Clariant’s Tailings Management Program, which comprises four complementary technology platforms: flotation, magnetic separation, dewatering, and rheology modification. Flotation chemicals for slimes, for instance, help mines recover valuable minerals that are currently going to waste, and flotation chemicals for secondary mining enable operators to reprocess old tailings. In addition, filter aids help operators dewater tailings better, leading to drier stacks, and faster throughput.

BRAZIL Clariant opens Competence Center for Tailings Treatment in Brazil

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GLOBAL IAMGOLD commits to net negative GHG emissions by 2050

IAMGOLD Corp. has announced its commitment to achieve net negative greenhouse gas (GHG) emissions by no later than 2050.

IAMGOLD’s commitment to net negative GHG emissions comprises two separate global targets. The first global target relates to reductions in Scope 1 (direct) and Scope 2 (indirect – energy) GHG emissions. IAMGOLD is committing to reduce its emissions profile to as close to zero as possible, by no later than 2050. Initial work will focus on defining specific options to address the company’s largest sources of emissions: heavy and light vehicle fleets and power generation and supply. IAMGOLD’s commitments will be updated in 2025 to incorporate targets for our Scope 3 (indirect - value chain) emissions.

The second global target relates to GHG removals. Reversing the eff ects of climate change requires not only that emissions be reduced, but that substantial amounts of existing GHG also be removed from the atmosphere. As part of this target, IAMGOLD is committing to achieve net positive biodiversity, wherein the company will commit to creating more habitat than it disturbs. IAMGOLD plans to achieve this global target through investments in nature-based solutions that further biodiversity objectives and act as carbon sinks. Investment opportunities will be pursued at the company’s operating sites, as well as regionally and globally, to ensure the maximum possible benefit for every dollar invested.

By the end of 2022, IAMGOLD will complete an external verification of its emissions reporting, develop and announce medium-term targets on reductions and removals, and publish a high level roadmap on how the company intends to achieve its global target of net negative emissions, by no later than 2050. The roadmap will also include an estimated date by which the company expects to achieve net positive biodiversity. Work will advance through a dedicated steering committee with support from a range of external advisors.

As part of its accountability and reporting framework, IAMGOLD will also be reporting in accordance with the Climate-Related Financial Disclosures (TCFD) guidelines. IAMGOLD expects to release its initial TCFD report in late 2022.

CANADA Agnico Eagle and Kirkland Lake Gold announce merger of equals

Agnico Eagle Mines Ltd and Kirkland Lake Gold Ltd have announced that they have entered into an agreement (the merger agreement) to combine in a merger of equals (the merger), with the combined company to continue under the name ‘Agnico Eagle Mines Limited’. The merger will establish the new Agnico Eagle as the gold industry’s highest-quality senior producer, with the lowest unit costs, highest margins, most favourable risk profile, and industry-leading best practices in key areas of environmental, social and governance (ESG). Upon closing of the merger, the company is expected to have US$2.3 billion of available liquidity, a mineral reserve base of 48 million oz of gold (969 million t at 1.53 g/t), and an extensive pipeline of development and exploration projects to drive sustainable, low-risk growth.

The merger will create a best-in-class gold mining company operating in one of the world’s leading gold regions, the Abitibi-Greenstone Belt of northeastern Ontario and northwestern Quebec, with superior financial and operating metrics. Consolidation within the Abitibi will also provide Agnico Eagle with significant value creation opportunities through synergies and other business improvement initiatives. Additionally, the company is established as the only gold producer in Nunavut and is well positioned internationally with profitable and prospective assets in Australia, Finland, and Mexico.

The merger of Agnico Eagle and Kirkland Lake Gold combines each company’s strengths by bringing together two industry leaders in growing per share value in key metrics such as production, mineral reserves, cash flow, and net asset value. Both companies also share a strong commitment to returning capital to shareholders, with a total of US$1.6 billion being returned through dividend payments and share repurchases since the beginning of 2020.

Under the merger agreement, which the Board of Directors of both companies have unanimously approved, the new Agnico Eagle will be led by a combined board and management team of experienced mining and business leaders, bringing together the proven cultures, strengths and capabilities of both companies. The transaction is expected to close in December 2021, or in the 1Q22.