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MODERN MINING
May 2015
MINING News
In an operational update for the three-
month period ending 31 March 2015,
London-based Gemfields reports that its
75 %-owned subsidiary, Kagem Mining
Limited in Zambia (covered in our April
issue), produced 9,9 million carats of
emerald and beryl (versus 3,6 million
carats in the quarter ending 31 March
2014) at the Kagem emerald mine south
of Kitwe.
The average grade was 355 carats per
tonne (versus 198 carats per tonne in the
quarter ending 31 March 2014), a 79 %
increase. Total operating costs of US$9,8
million were recorded (versus US$6,6 mil-
lion in the quarter ending 31 March 2014),
largely on account of the increased scale
of mining activity being carried out across
the mining licence.
The fourth phase of the high wall push-
back programme in the main Chama pit
continues to be advanced by both Kagem’s
in-house team and a third party contrac-
tor. A total of approximately 4,0 Mt of
waste was moved during the quarter, with
a slightly accelerated rate of contractor
waste mining now likely to result in com-
pletion of the push-back project ahead of
schedule.
Kagem’s trial underground mining
project was placed on hold towards the
end of 2014. In the interim, and given the
continued viability of open-pit operations,
supported by the robust emerald prices
and well contained unit costs, Kagem says
it enjoys a high level of flexibility to con-
tinue to extend the open-pit operations
through further pushbacks.
Gemfields also owns 75%of Montepuez
Ruby Mining Limitada in Mozambique.
During the quarter approximately 1,4 mil-
lion carats of ruby and corundum were
extracted (versus 1,1 million carats in the
quarter ending 31 March 2014) at the
Montepuez ruby mine.
“This quarter has once again delivered
pleasing results for Gemfields,” comments
Ian Harebottle, CEO of Gemfields. “We
have achieved considerable increases in
production volumes at both the Kagem
and Montepuez mining operations, under-
pinned by constant growth in market
demand for these products as is evidenced
by the ongoing successes achieved at our
auctions, all of which validates our deci-
sion to expand the scale of the operations
across our key sites.”
Strong performance by Zambian emerald producer
Mining operations in the main Chama pit at the Kagem emerald mine (photo: Arthur Tassell).
WorleyParsons embarks on Golpu feasibility study
Following approval of the prefeasibility
study (PFS) prepared for the greenfield
Golpu gold/copper project in Papua New
Guinea, WorleyParsons has now embarked
on the feasibility study stage. Adopting an
innovative approach, the PFS split the proj-
ect into two stages, the first targeting the
upper higher value portion of the orebody,
which is expected to have a 27-year life, fol-
lowed by a second stage encompassing the
remaining ore reserve.
The Golpu project feasibility is working
up technical, procurement and operational
plans to create a long-life, world class mine
in Papua NewGuinea’s Morobe Province.The
project comprises an underground mine
and process plant with significant associated
infrastructure to exploit this prime deposit.
WorleyParsons’ Johannesburg Mining
Centre of Excellence began work on the
PFS in January 2014 and by the end of that
year had confirmed a compelling business
case for the life of the mine using the two-
stage approach. WorleyParsons’ scope for
2015 now comprises a Feasibility Study for
Stage 1, a PFS for Stage 2 and Early Works
Engineering for Stage 1.
“We’re delighted that the business
case has been given the green light,” says
WorleyParsons’ Rob McGill, Divisional
Manager, Mining Studies. “This is the
biggest international project study under-
taken by WorleyParsons’ Mining Centre of
Excellence here in Johannesburg, and it
has effectively demonstrated our ability
to leverage the underground mining and
processing capability that resides in our
South African hub to add value to custom-
ers globally.”
WorleyParsons’ in-depth local mining,
processing and infrastructure expertise,
coupled with the sharing of knowledge
and skills across the entire mineral and
resources value chain through the greater
WorleyParsons organisation, will ensure the
best possible outcome for the project.
The client on the project is WGJV, a
50-50 joint venture between Newcrest
Mining Limited and Harmony established
to facilitate mining, project and exploration
activities for the two parent companies.
WorleyParsons RSA recently consolidated
its local project delivery capabilities under
one roof, effectively establishing the com-
pany as one of the largest multi-disciplinary
engineering contractors in South Africa.