2010-Sept-Oct 1-28_2006-Fourth quarter YOL.qxd - The ASIA Miner

2 - The ASIA Miner - September-October, 2010

Spotlight on Leighton Asiawww.asiaminer.comMongolia is a vital cog inBy John Miller,editor, The ASIA MinerAS Leighton Asia marks its 35th year ofoperations, the company is continuing togrow alongside Asia, with Mongolia themost recent success story.After picking up major coal mining contractsin Mongolia and a new gold mining contract inIndonesia in recent months, there is no resting onits laurels, with Leighton Asia’s managing directorHamish Tyrwhitt stating that the company isseeking further growth opportunities in existingand new Asian markets.He says Leighton Asia first did some works inMongolia in 2004 out of the Hong Kong office.“At that stage the ease of doing business therewas unclear owing to lack of effective legislation.We then kept a watching brief on Mongolia untilAugust 2007 when we returned, opening anoffice in Ulaanbaatar and setting up a local company.“The first mining project won was the UHGcoal mine in the South Gobi, which is our largestoperation in Mongolia. It has been hugely successfulfor us and we have recently won contractextensions to increase production.“On the back of this and our understanding ofthe market, we secured the Khushuut coal projectin western Mongolia and the third coal project wehave recently won is Ulaan Ovoo, north ofUlaanbaatar, giving us three mines for three differentclients in a geographic spread across thecountry.“From a staff of 5 in late 2008 we now havejust above 400 as well as sub-contractors, suppliersand other people we manage. Only about2.5% of our staff are expatriates with the bulk ofthem being Mongolian.“This approach is one of Leighton Asia’s standardbusiness models. We bring the internationalexperience and management systems, then workwith and train the locals. “Another example is themine projects we operate in Kalimantan,Indonesia, which has about 3000 peopleemployed but only 24 are expats. The heart andsoul of the company is very much the localemployees.Hamish Tyrwhitt says the company has a strategyof going into new markets with its corestrengths and mining is one of them, along withcivil work and building. “We entered Mongolia incontract mining but since then have picked upOperations at the UHG coal mine in South Gobi.6 - The ASIA Miner - September-October, 2010additional civil infrastructure work. We have arail project, we’re upgrading a haul road to theChinese border and there are other projects we’relooking at.”A major constraint on the development ofMongolia’s mining industry, he says, is lack ofinfrastructure and the strain on existing infrastructureas more mines come on line.“When Leighton Asia started it was a resourcebasedcompany providing services to the resourceindustry through contract mining, buildingcamps, haul roads, access roads, rail lines, jetties,ports and the like. The core of our business acrossthe entire group is providing infrastructure as wellas ongoing services for the mining industry.“Mongolia is a land of opportunity and representsthe most exciting country and businessopportunity I have seen during my career,” hesays. “It has abundant resources across a series ofcommodities and sits between Russia and China.“China is definitely the world’s fastest growingeconomy but Russia is also part of BRIC (Brazil,Russia, India, China) and Mongolia, even thoughit is landlocked, couldn’t have two hungrierneighbours. The deposits are potentially low-costproducts with low-strip ratios and very goodquality.“One of the challenges of Mongolia, and wherewe have a strong advantage because we havebeen working closely with companies trying tounderstand the legislative, legal and operatingenvironment, is the fact that the legal system isstill evolving.“In many ways it is still in its infancy - at theearly stages of establishing a framework of how itis going to develop a mining industry. The governmenthas made enormous progress in this areaand has had support from the major mining companies.“Another reason for our success there is thatthe Leighton model hasworked very well becausewe are a publicly listed companywith very strong governanceand core values. Weare providing a professional,transparent and internationalservice to the industry andputting a big investment intocommunities as well asensuring we do things toworld’s best practice inregards to environment andsafety. We also have a strongfocus on Mongolian contentand training.”The harshness of the environmentis an enormouschallenge, Hamish Tyrwhittsays. Mongolia has extremewinters and operating in an environment wheretemperatures range from minus 40 to plus 40brings challenges, exacerbated by lack of infrastructureand the logistics associated with usingheavy mining equipment in very remote locations.“The lessons learnt by Leighton over decadesworking in remote and harsh environments inAustralia have put us in good stead for understandingMongolia and for planning, which is thekey to working in these areas. Having a good handleon logistics and planning means we are ableto overcome the challenges.”He says Leighton Asia’s growth strategy focuseson geographic and sector diversification.“Every year we try to move into one new geographicarea and introduce one of our core businesssectors, whether it’s mining, civil or building.“The entry into Mongolia has been very successfuland we have picked up a significantamount of work in what would usually be regardedin world standards as a relatively short periodof time. We have grown a successful business andMongolia now forms about a third of LeightonAsia’s business. The mines are exceptionallyviable and being so close to China, they are fantastic,sustainable operations and give us a core ofwork for a long period of time.“For the Leighton Group, including LeightonAsia, contract mining represents about a third ofthe work, which has been the ratio for a long time.We have grown not only in mining but also in ourcivil and building work. In Hong Kong we havepicked up a lot of contracts in the last couple ofyears, primarily in civil infrastructure.“I believe that China is the engine room, notonly for our growth as a company but also thegrowth of this region and you will continue to seethe impact of China’s growth on the overall economicprosperity of Asia for many years. Asia isthe place to be globally and I include Australia inthat part of the world, certainly in the resourceand construction sectors where we sit.”Indonesia is also an important place forLeighton Asia, which now has more than US$3billion worth of work there, with contracts at fivemines, including gold mines at Toka Tindung andMartabe.“We don’t want to be too heavily weighted inone commodity so Indonesia has brought us intoanother commodity, gold, which gives us diversificationacross the commodity base,” HamishTyrwhitt says. “Gold is doing exceptionally welland with a lot of global economic uncertainty, thegold price has continued to head northwards.“Indonesia is an exceptionally mature miningmarket and we have been there for 35 years. Wehave a competent team of long-serving Leightonn Continued next page

Mongoliawww.asiaminer.comOutlook is positive forMongolia’s mining industryDESPITE its recognized abundance ofmineral resources for many yearsMongolia has been considered as arisky place for investment.However, owing to strong governmentleadership in developing a market economyand a bright economic outlook, Mongolia isshaking off this perception and its economy,as well as its people, looks set to benefit.Other positives in creating an adequatedirect foreign investment climate are thecountry’s strategic location next to China andChina’s continuing demand for minerals.During a recent presentation FrontierSecurities’ CEO Masa Igata examinedMongolia’s huge mining assets.While there are many opportunities, hesays the risks and challenges facing developmentof the mining industry are politicalinstability; social instability including mediascrutiny and people’s mindset; economicdependence in China; lack of infrastructure;poor capital market and banking sector; andpoor governance and regulation system.Mongolia is the world’s 18th largest countryand, with a population of 2.832 million, isthe 135th most populous country. It has beena parliamentary democracy since 1991 withtwo large parties, the MRRP and DemocraticParty (DP). It currently has its third coalitiongovernment in 4 years between the MRP andDP.Mining makes up 22.5% of GP, comparedto services with 46.6% and agriculture with21.2%. Total exports increased steadily toUS$2.5 billion in 2008 and then fell to belowUS$2 billion during the global financial crisisin 2009.Since 2006 exports of mineral producthave made up more than 50% of this amountand in 2007 and 2009 contributed 70%.Copper is the main commodity exportedwith 38.02% of the total followed by coalwith 19.44%.GDP growth is expected to accelerate from-1.6% in 2009 to a forecasted 7.5% in 2010,8.2% in 2011, 20.8% in 2013, 15.6% in 2014and 13.6% in 2015.Coal output has been increasing steadilyfrom 8 million tonnes in 2006 to 13.2 millionin 2009. With proven reserves of 20 billiontonnes and probable reserves of 152 billion,this figure seems set for annual increases,particularly with demand from Chinaincreasing.Copper production has remained steady ataround 370,000 tonnes but this is certain toincrease when the massive Oyu Tolgoi projectcomes on line. There are proven nationalcopper reserves of 67.3 million tonnes andprobable reserves of 1.2 billion tonnes.Gold production has declined from 22tonnes in 2006 to 10 tonnes in 2009 and thereare proven reserves of 136 tonnes and probablereserves of 125,000 tonnes.Iron ore production has increased from180,000 tonnes in 2006 to 1.38 million in2009. There are proven reserves of 264 milliontonnes and probable reserves of 1.6 billiontonnes.There has been no uranium production butwith probable reserves of 62,000 tonnes, it isexpected to play a role in the mining sector.The major players are Centerra Gold andMAK in gold; Tavan Tolgoi, SouthGobiEnergy Resources, Energy Resources, QGX,Mongolia Energy Corp and Peabody in coal;Erdenet and Oyu Tolgoi in copper; DarkhanSteel, Iron Ore International Mining andNorth Asia Resources in iron ore; and KhanResources, Cameco and Areva in uranium.Strategically significant deposits are OyuTolgoi with 32 million tonnes of copper and1000 tonnes of gold, Tsagaan Subraga with44,400 tonnes of copper, Tavan Tolgoi with 7billion tonnes of coal, Shivee Ovoo with564.1 million tonnes of coal, Burenkhaanwith 162.56 million tonnes of phosphate,Asgat with 1271.2 tonnes of silver, andMardai with 1104 tonnes of uranium.The most significant player in the immediatefuture of Mongolia’s mining industry isOyu Tolgoi, which is being developed byIvanhoe Mines with Rio Tinto as major partner.Known reserves are 26.3 million tonnesof copper and 819 tonnes of gold with productionexpected to begin in 2013.The projected investment is US$4 billionThe most significantplayer in theimmediate future ofMongolia’s miningindustry is Oyu Tolgoiwith known reservesof 26.3 million tonnesof copper and 819tonnes of goldand the expected annual revenue is US$2.3billion.It will result in an average 34% increase inreal GDP over 30 years, an average 71.6%increase in exports, an average of 10.3%increase in employment and up to 48,000new work places over the project life time.The Oyu Tolgoi Investment Agreement,which was finalized in October 2009, providestangible benefits to Mongolia with thegovernment owning 34% of project equity,private investment to provide the road networkand 95% of the workforce beingMongolian employees.Tavan Tolgoi will be another major playerwith total known coal reserves of 6.4 billiontonnes. With an estimated capital expenditureof US$2.4 billion, the project will provide upto 20,000 new work places, 400km of newrailroad and a 250-300MVt combinedheat/power supply. It is 100% owned by thegovernment with the bidders to develop theproject including Peabody, BHP Billiton,Shenhua Energy, Vale, and Russian andJapanese consortiums.The potential of Mongolia benefiting fromits resources has been improved through thecountry’s new minerals law and tax system,which has also brought about more certaintyfor foreign investment and involvement. Ithas strengthened environment protection andrehabilitation issues, has given more rights tolocal administrative bodies and increased theduties of licence holders.It has created a category of strategicallysignificant deposits, including all uraniumdeposits. These are deposits deemed to havean impact on Mongolia’s national security,economic and social development; with mineralsthat are in strong international demand;and capable of annual mineral productionthat exceeds 5% of the country’s GDP.It regulates state participation in strategicdeposits of up to 50% if the state has contributedto the exploration at some point andup to 34% of investment shares of a licenceholder if the deposit was developed with privatefunds. Exploration licences are nowvalid for nine years compared with sevenyears previously, while mining licences arevalid for 70 years compared with 100 yearspreviously.Coal is a major area of opportunity, withneighbouring China consuming more than itproduces. China is importing from Mongolia,Russia, North Korea, Vietnam, Indonesia,Australia and Canada while it exports a smallamount to Japan and Korea.The coal-rich Chinese provinces in thenorth and central areas of the country are alsoshipping large amounts to the coal-poorsouthern provinces.To help move its coal, copper and otherminerals to resource hungry China, railwaysare being constructed or are planned, particularlyin the south of Mongolia with otherspossible in the east.Masa Igata says Mongolia also plans toprivatize a number of state-owned resourcecompanies, including thermal coal minerBaganuur LC, thermal power station operatorErdenet and the Mongolia Stock Exchange. Itplans to establish three listed national holdingcompanies covering minerals, infrastructure,and power and energy.In another move that would have a positiveimpact on Mongolia’s corporate and miningsector, it is considering issuing sovereignbonds.8 - The ASIA Miner - September-October, 2010

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Mongoliawww.asiaminer.comMongolia needs foreign investmentMONGOLIAwill need increased foreigndirect investment (FDI) in the miningindustry if it is to achieve the government’sstated economic development goals.The country’s GDP in 1999 was about MNT925 billion, a figure that is expected to grow toMNT 18,700 billion by 2019, driven primarily bythe mining industry, which now accounts for18.4% of GDP and 58% of industrial output.FDI has grown from US$91 million in 2000 toUS$801 million in 2009 but Mongolia’s ForeignInvestment and Foreign Trade Agency (FIFTA)vice chairman Dugarjav Ganpurev says this willneed to increase even further.He says the government is creating an investment-friendlylegal environment to encouragefurther FDI. “The law on foreign investment waspassed in 1993 for the purpose of encouraginginvestments, protecting rights and property of foreigninvestors, and regulating matters relating tothe foreign investment.”Mongolia is ranked 60 out of 181 economies interms of ease of doing business, where it takesonly 3-5 days and 7 documents to start a business.In addition, Mongolia has the lowest tax rates inthe region with corporate tax of 10% for profit ofless than MNT 3 billion and 25% for profit moreSedgman at UHGn From page 10The classified oversize is separated inspirals. The spiral product is dewatered infine coal centrifuges and reports to thecoking coal product. Spiral reject is dewateredon the HF Screen and reports tocoarse rejects.Classifying cyclone overflow is separatedin a Jameson Flotation Cell.Flotation concentration is dewatered inscreen bowl centrifuges and reports to thecoking coal product. Flotation tailings arethickened and pumped to a tailings dam.Sedgman’s managing director MarkRead says the UHG project is strategicallyimportant to Sedgman given theregion’s future development potential.“The coal processing plant is the first tobe built in Mongolia and has set the standardfor future mine developments there.“The South Gobi region is forecast togrow production rapidly due to its closeproximity to China’s major steel makers.”Mark Read says the UHG CHPP is justone of the many exciting opportunities inSedgman’s $4.3 billion project pipeline.“It further supports our decision toexpand offshore into targeted high-growthinternational markets and build onSedgman’s reputation as the leadingprovider of coal processing solutionsglobally.”Sedgman was established in 1979 andhas become a leading provider of multidisciplinaryengineering, project deliveryand operations services to the globalresources industry.The company is the market leader in thedesign, construction and operation ofCHPPs and has gained internationalrecognition for its coal processing andmaterials handling technologies.12 - The ASIA Miner - September-October, 2010than MNT 3 billion.He says it is not only the tax regime, as thegovernment has taken numerous actions to protectinvestors such as joining WTO, MultilateralInvestment Guarantee Agency, Seoul Conventionon Investment Insurance, WashingtonConvention on Investment dispute Settlement,and signing various agreements, such as MutualProtection and Promotion of Investment with 41countries, General Agreement on Trade andEconomy with 24 countries, Avoidance ofDouble Taxation with 34 countries, etc.“For the long-term sustained economic developmentof Mongolia, the government has set upits priorities as: restructuring and diversifyingcurrent mineral and raw material dependent economy,increasing of value added exports, developingimport substitute commodities in certain sectors,introducing new technologies, and attractingmore FDI.”Dugarjav Ganpurev says, “Mongolia, with itsuntapped natural resources, is considered to beone of the richest in the world and could becomethe fastest growing country in the world in thenext few decades. The country has more than6000 identified mineral deposits and 69 elementsof the total 111 elements of the Periodic Tablehave been discovered in Mongolia.“It’s not just the variety but also the sheeramount sleeping under Mongolian soil. So far, 15strategically important deposits with world-classresource estimation have been identified.”He says this includes many massive depositssuch as Oyu Tolgoi with 16.39 million tonnes ofcopper and 623.3 tonnes of gold, Tavan Tolgoi(4.3 billion tonnes of coal), Tumertei (229.3 milliontonnes of iron ore), and Tsagaan Suvarga(1.28 million tonnes of copper, 43.6 tonnes ofmolybdenum).“In addition to this vast investment opportunityin the mining sector, the Mongolian government,through FIFTA, is also welcoming investmentsin sectors such as road and urban development,light industry, agriculture, trade and service,tourism and ICT and human developmentsector.“More specifically, the government ofMongolia has this year passed the law onConcessions of Mongolia, which opens up thePPP opportunity for both domestic and foreignentities to effectively participate in privatizationof major state-owned entities such as theMongolian Stock Exchange, Mongolian Airlines,Shivee Ovoo, Baganuur, etc.”Drilling program at Unst KhudagAN exploration and development drillingprogram is under way at Hunnu Coal’s60%-owned Unst Khudag Coal Projectand surrounding exploration licences.Unst Khudag is in Dundgobi Province and isbeing developed to deliver high quality premiumthermal coal to domestic and Chinese offtakecustomers.Hunnu is targeting first production before theend of the year.The project is strategically located 200kmfrom an operational multi-party coal loadingfacility on a major rail line and consists of twoexploration licences and one mining licencecovering more than 59,000 hectares.The project has an approved mining plan andfeasibility study for the mining of 98.7 million Hunnu’s licence areas in western Mongolia.tonnes of coal and offtake agreements are beingnegotiated.Field in Omnugobi Province.Previous exploration programs undertaken at The exploration licence covers 76 hectares andUnst Khudag have included mapping at various there are operating mines within 10km that arescales, trenching, geophysical surveys and drilling. exporting coking coal to China, including EnergyA total of 39 drill holes have been completed to Resources’ UHG mine. A proposed rail line todepths less than 100 metres.China would be built adjacent to the project.Drilling has intersected a single coal seam with Hunnu has also acquired a 60% interest in thethicknesses varying from 5 to 31 metres. The coal Tsohio Coal Project with a granted explorationseam has about 4 metres of unconsolidated overburdenand dips under cover gently.Tsohio is 40km south of Hunnu’s Khuree-2 proj-licence of 38,600 hectares.The current exploration drilling program is ect in Omnugobi and lies between the Tavan Tolgoiintended to confirm the current exploration target of field and SouthGobi Energy Resources’ field, just250 million to 500 million tonnes within the mining 60km north of the Chinese border.licence area and also identify the extent of the coal The project is highly prospective for coking andseam into the adjacent licensed exploration area. A thermal coals, and the company has discovered antotal of 33 drill holes are expected to be completed outcropping coal seam that is about 3km in strikefor about 5000 metres.length. It has an exploration target of 50 million toThree drilling rigs are on site and are drilling a 75 million tonnes.combination of both open hole and diamond core to Another recent acquisition by Hunnu involves aan average depth of 150 metres. The drilling programwill also include further coal quality test work. 40km of the Tavan Tolgoi field and has an explo-90% stake in the Tsant Uul project, which is withinHunnu is also increasing its tenement package, ration target of 50 million to 100 million tonnes.particularly in coal-rich southern Mongolia. It has Hunnu is planning aggressive exploration programsat these coal tenements in the remainder ofacquired a 60% interest in the Buyan Coal Projectwhich is within the giant Tavan Tolgoi coking Coal 2010.

www.asiaminer.comPolo Resources selling Mongolian assetsPOLOResources is selling its 50% interestin a joint venture with Peabody Energythat covers Polo’s collection of uraniumand coal interests in Mongolia, including theErds Coal Project.A Memorandum of Understanding signed byPolo envisages Winsway Coking Coal acquiringPolo’s stake in Peabody-Polo Resources BVfor US$35 million in cash. Polo will also retaina 1% royalty over coal sold from licences in thejoint venture, capped at a maximum sum ofUS$50 million and maximum time line of 25years.Winsway is a China-based group engaged intrading, distributing, processing, storing andtransporting coal, chemicals and petroleum.The primary asset held in the joint venture isthe Erds Coal Project, which contains a JORCcompliant indicated and inferred resource of807 million tonnes of thermal coal.The Erds project adjoins a tenement to thewest owned by Gulfside Minerals which containsan NI 43-101 compliant resource of 1.185billion tonnes of thermal coal at the Onjuul coaldeposit.The joint venture company has an extensivefootprint in the immediate area around Onjuulwith the Altanshiree tenements immediatelysouth of the Gulfside resource and adjoining theErds resource to the east.The geology of the coal basin, combined withthe large thicknesses of coal reported at Onjuuland Erds, strongly indicates that additional coalresources will be discovered at Altanshiree.The Erds coal project is in the sub provinceof Altanshiree in Dornogovi province. It isclose to rail and power infrastructure and isaround 140km from the border of China. Thearea has undergone a series of exploration campaignsand the results indicate potential forlarge scale, multi bench, and open-cutoperations.MongoliaA resource development program was undertakento collect sufficient data of a high enoughstandard to allow a JORC compliant resourceestimate.Analytical work shows that the low rank Erdscoal can be classified as 'Lignite A' according tothe ASTM classification system, or a 'BrownCoal' in the Australian classification system.Analysis indicated that the coal is suitable forpower generation with a favourable HardgroveIndex, but high sulphur and moderate ashfusion temperatures.Polo’s executive co-chairman Neil Herbertsays, “We are pleased to be executing thedivestment of our non-core holding in the jointventure in Mongolia. Polo is focused on maximizingvalue through its uranium and coalinterests in Extract Resources, GCM Resourcesand Caledon Resources.”RIGHT: Location of mainsouth-east Mongolian coalprospects and the PeabodyEnergy/Polo Resources jointventure projects.Polo Resources’ coal prospects.The ASIA Miner - September-October, 2010 - 13

MongoliaRail agreement forUlaan Ovoo coalWITHpilot production expected tostart at the Ulaan Ovoo Coal Projectin late 2010, Prophecy Resourceshas signed an agreement to use the nearbySukhbaatar rail facilities for the annual loadingand transportation of 1.5 million tonnes ofcoal.Sukhbaatar is on the Trans-MongolianRailway in the north of the country which willenable easy transportation of the coal intoRussia. The agreement provides an option toincrease capacity based on availability.Ulaan Ovoo property is in Selenge province,not far from the Russian border.Following receipt of a positive preliminaryeconomic assessment on Ulaan Ovoo,Prophecy entered into a mine services agreementwith Leighton Asia with a view to a pilotproduction of 250,000 tonnes beginning in late2010.The project hosts an NI 43-101 compliantestimate of 208 million tonnes, of which 174.5million tonnes are measured and 34.3 milliontonnes are indicated resources.The project involves open cut mining of coaland waste rock using conventional shovel andtruck techniques.Higher quality coal of greater than 5000kcal/kg, known as by-pass coal, will becrushed and stockpiled while other coal,known as ‘washed coal’, will be beneficiatedin a wash plant prior to stockpiling.Both washed and by-pass coal will be blendedon the product stockpile to derive a consistentproduct prior to transport from the site byrail to the port of Nadhodka on the Russianeastern seaboard and sold on the export thermalmarket. Mining and sale of coal is proposedto begin in 2011.The pre-feasibility study defines an open-cutmining strategy of expanding the mine fromlower stripping ratio areas to higher stripping14 - The ASIA Miner - September-October, 2010ratio areas to maximize the project’s economicpotential. All waste rock will be directed to alarge surface dump to the north and west of thepit as the steep coal dips prevent in-pit dumpingof waste rock.The total project life is 21 years, comprisinga 2-year construction phase followed by an 18-year mining period with site reclamation in thefinal year.In the south of Mongolia Prophecy has completedits 2010 exploration program on theChandgana-Khavtgai coal project. The workprogram consisted of 12 drill holes for a totalof 2205 metres.The focus of the program was to increase theconfidence in the inferred resources so thatthey can be elevated to the measured and indicatedcategory.The drilling confirms that nearly all of theresource is contained in a single 18-60 metrethick coal seam found 10 to 250 metres belowthe surface and covering an area of about 1800hectares.Further, preliminary results indicate the coalresources and coal quality will be confirmedand the geological limits to the resource aremore accurately mapped.The results are being examined and willresult in a revision to the 2008 estimate whichshowed measured and indicated resources of657 million tonnes with an additional 409 milliontonnes of inferred resources.In addition to Chandgana-Khavtgai,Prophecy also owns the 141 million tonneChandgana Tal coal project, which is 9kmaway.The Chandgana thermal coal deposits arenear the power grid and could fuel a minemouth power plant providing power toMongolia, Russia and China. Prophecy intendsto commission a power plant/mine complexstudy later this year.Pilot production of 250,000 tonnes of coal at the Ulaan Ovoo project in northernMongolia is due to begin late this year.www.asiaminer.comGutain Davaapurchasedby MeritusMERITUSMinerals has purchased theMongolian assets of Troy Resources, whichincludes the prospective Gutain DavaaGold Project in northern Mongolia.The purchase included Troy Mongolian AltResources (TMAR), which held 80% of GutainDavaa LLC, and a comprehensive exploration datapackage prepared for Troy by the University ofWestern Australia’s Centre for Exploration Targeting.Meritus has since purchased the remaining 20% ofGutain Davaa and has lodged applications with theMongolian authorities to change the name of TMARto Meritus MGL LLC.Gutain Davaa LLC holds two exploration licencesin northern Mongolia over the high-grade GutainDavaa project.By tracing alluvial gold back to its source TMARlocated a number of areas of gold mineralization inbasement rocks. Soil and rock chip sampling over onetarget area known as Toordogiin Shil (TS) gave veryhigh gold values with 24 surface rock chip samplesaveraging 61 grams/tonne gold. Subsequent drillingproduced a number of high-grade drill intersections.At one other target area known as Toordogiin Hayr,5 of 9 surface samples returned exceptionally highgradesof gold, including 14.7 grams/tonne, 334.4grams/tonne, 402.2 grams/tonne, 417.1 grams/tonneand 542.2 grams/tonne. This area has yet to be drilled.Five other areas have yielded surface rock chipgrades between 0.5 and 4.0 grams/tonne, one ofwhich, TS North, has a substantial induced polarizationanomaly associated with it.Meritus has a subsidiary in Mongolia calledSuritem LLC, which holds one exploration licenceand an option to purchase another exploration licence.The Khukh Ishig Uul licence was granted in June2009 for 3 years. Subject to meeting expenditurecommitments specified in the Mineral Law, renewalfor two further three year periods is possible.The licence is near Bulgan, Khovd Province in thesouth-western corner of Mongolia. It has good access,via Bulgan, to a designated border crossing withChina.The area has been mapped by the MongolianGeological Survey and was accompanied by somevery broad scale regional geochemical sampling.The geology consists of a sequence of middlePaleozoic sediments and volcanics including basalts,andesites and rhyolites with younger gabbroic anddoleritic dykes, sills and plugs.Within the licence area seven geochemically anomalousgold occurrences and nine geochemicallyanomalous copper, zinc locations are recorded.In January 2010 Meritus signed on option to purchasethe Tonkhil Uul licence in Gobi Altai Province,Western Mongolia.The geology consists of a basement complex ofgabbor-diorite intruded by alkalai granites and syenites.These units are overlain by the Teelye Formationa complex of volcanics ranging from basalts to rhyoliteswith interbedded sediment. The area is intrudedby younger syenites and syenite porphyry.This is a grass roots project prospective for goldand gold copper deposit and possibly VMS style mineralizationassociated with the volcanics.

www.asiaminer.comMongoliaLotus adds to fluorspar interestsLOTUS Resources has added to itsUlaanbaatar. An approved resource of 170,000fluorspar interests in Mongolia through atonnes of fluorspar ore has been defined in thenumber of acquisitions and is now seekinglicence area with fluorspar grades of 30.1-the additional funds required to developthese projects.The company has acquired a further mininglicence, Tsagaan Chuluut, to add to the otherthree - Dai-Uul, Chuluut and Gat. All are inMongolia’s central eastern region.The projects include two exploration licences53.1%. This estimate is considered to be conservativeby the company.The Dai-Uul licence covers 83 hectares about300km south-east of Ulaanbaatar. It is near theBor-Ondor Mine, the biggest fluorspar mine inMongolia.Potential reserves of 2.53 million tonnes with(Gat and Dai-Uul) and two mining licencesan average grade of 32.6% were identified duringprevious Russian exploration and classified(Chuluut and Tsagaan Chuluut).Fluorspar samples from Chuluut prospect.Lotus has also acquired the 49% holding inLotus Dai Uul LLC it did not already own andhas acquired a further 15% interest in LotusBayalag Fluorite LLC.As well as adding more licences and increasingits interests, Lotus is buoyed by the currentmarket for Mongolian fluorspar, which hasimproved due to China restricting its exports offluorspar. This has given a boost to theMongolian producers and means that there is aready-made market particularly in Europe andIndia.as category B and C1 and C2 under the GKZreporting system. In April 2009 Lotus undertooka limited exploration program in the areawith trench and drill data confirming the validityof the results recorded by the Russians in the1980s.The Gat exploration licence covers 1066.7hectares and is about 225km east ofUlaanbaatar. Limited exploration work, whichinvolved trenching and test pitting on three outcroppingfluorite veins, has been carried out onthis licence so far.Lotus is building an integrated fluorspar businessthat will include exploration, mining, pro-Old workings at Tsagaan Chuluut.hectares is 400km south-east of UlaanbaatarThe Tsagaan Chuluut licence area of 33cessing and trading of fluorspar.If it can secure funds, the Chuluut, Dai-Uuland Tsagaan Chuluut prospects are ready fordevelopment while Gat requires more exploration.With sufficient funding the opportunities todevelop the assets and to become a successfulintegrated fluorspar operation are very real andthe company is looking at the various availableoptions. The company is also in discussionswith several international companies regardinglong term supply agreements.The Chuluut mining licence covers 35hectares and is about 410km south-east ofand 70km north-east of the fluorspar miningcentre of Bor-Ondor.The estimate for the mineralization containedin the licence area, based on historic data, is167,400 tonnes down to 90 metres depth and isclassified as category C2 under the Russianreporting system. The grade averages 45.79%.The ASIA Miner - September-October, 2010 - 15

Mongoliawww.asiaminer.comPreparations for miningExamining core samples from Zuun Mod.16 - The ASIA Miner - September-October, 2010licence at Zuun ModMineralization from the Zuun Mod molybdenum project.ERDENE Resource DevelopmentCorp oration is preparing documentationto apply for conversionof the exploration licence covering theZuun Mod Molybdenum Project to amining licence.The exploration licence has recentlybeen renewed to May 28, 2011 and thecompany has engaged a number ofMongolian consulting companies to preparetechnical reports to support themining licence application.These reports have been finalized andsubmitted to the Mongolian MineralResource Council, for registration of themineral resource at Zuun Mod, a prerequisiteto the granting of a mininglicence.Upon registration of the Zuun Modresource, the corporation will have allnecessary documentation to apply for amining licence for the project coveringabout 10,000 hectares.Under the Minerals Law of Mongolia,the initial term for a mining licence is 30years with an option for two 20-yearextensions.Zuun Mod is a porphyry molybdenum-copperdeposit containing 215 millionpounds of molybdenum in themeasured and indicated category, grading0.054% molybdenum, and a further208 million pounds in the inferred categorygrading 0.051% molybdenum,making it one of the largest undevelopedmolybdenum-copper deposits in Asia.The Erdene corporation controls theZuun Mod deposit through a singleexploration licence totalling 49,538hectares. The project is inBayankhongor Province, about 950kmsouth-west of Ulaanbaatar and 215kmfrom a railhead on the Mongolia-Chinaborder at Ceke. The rail head is 20kmsouth of the Nariin Sukhait and OvootTolgoi coal mines.Erdene’s independent technical consultants,Minarco-MineConsult ofAustralia, are conducting pit optimizationand scheduling studies on thedeposit to combine with the previouslycompleted preliminary assessment levelwork initiated in 2008.Following completion of these studies,the information will be used to createa financial model on which to basedecisions regarding the advancement ofthe project to the pre-feasibility stage.In addition, Erdene has contractedWave Geophysics, of Colorado, to providea model and interpretation of allgeological, geochemical and geophysicaldata from the project with a focus onidentifying additional exploration targetsin the vicinity of the Zuun Moddeposit.Denison sets timeline for Gurvan SaihanDENISON Mines has set a uranium productiontimeline of 2012/13 for the Gurvan Saihan JointVenture in the South Gobi region.Denison has a 70% interest in the venture and is themanaging partner. The other participants are theMongolian Government and Russian government entityGeolog or azvedka, each of which holds a 15% interest.The joint venture was formed in early 1994 and holdsfour exploration licenses in the South Gobi region comprisingmore than 685,632 hectares.The joint venture operates under a mineral agreementthat was signed prior to the formation of the country’scurrent mineral law and at present Denison is engaged indiscussions with industry groups and trade representativesin Mongolia to determine how the new law can be applied in prac-infill drilling and the establishment of hydrogeological wells for baselineAn exploration camp at the Gurvan Saihan project in the South Gobi region.tice to Gurvan Saihan.groundwater and monitoring wells.Under the new Nuclear Energy Law, the government could acquire a At the Choir depression, only a limited amount of drilling was carried34% to 51% interest at no cost to the government.out, but it was successful in discovering several small isolated mineralizedzones which will be future targets. The Haraat deposit in the ChoirDiscussions are also under way between industry groups and the governmentin an effort to have the government amend some of these provisionsbut at this time, it is not clear how the government will attempt to is above the water table, and is not amenable to conventional ISR opera-depression contains a very large amount of near surface uranium, whichapply the new law to the joint venture, in light of the Gurvan Saihan tions, so a variety of mining and recovery procedures are being evaluated.Mineral Agreement.The results of these negotiations could alter the production timeline. The preliminary metallurgical test work indicated that recoveries ofPrevious exploration has delineated an inferred resource of 26.2 million about 90% could be achieved using either acid or carbonate leach.pounds.Last year Denison completed definitive agreements with Korean energyprovider KEPCO, which included a long-term offtake agreement pro-In 2008, a total of 72,356 metres of drilling was carried out on theHairhan depression, the Choir depression and other exploration targets. viding for the delivery of 20% of Denison’s annual U3O8 productionAt Hairhan, more than 25,000 metres, using seven rigs, was dedicated to from 2010 to 2015 inclusive.

www.asiaminer.comMongoliaExpanded drill program at OvootASPIREMining continues to receiveencouraging drilling results from itsOvoot Coking Coal Project in northwestMongolia with thick coal seams intersectedto date.The company has accelerated the drilling andexploration at Ovoot with two rigs now working24 hours a day.The latest resource drilling results include19.6 metres from 202.6 metres and 23.5 metresfrom 248.6 metres; 51.2 metres from 162.5metres with total coal thickness estimated at50% of the seam; 10.4 metres from 49.1 metres;1.5 metres from 279.8 metres, 1.2 metres from282.8 metres and 4.4 metres from 291.2 metres;24 metres from 126 metres and 5.5 metres from184.1 metres; and 8.2 metres from 165.5metres.Geologically the coal seam thicknesses, dipand depths encountered are consistent with thecompany’s geological interpretation of theOvoot deposit.A total of 99 samples have been dispatchedwith further samples and metallurgical testwork samples sent to SGS Laboratories inTianjin, China.The focus of the exploration program is tocontinue to pursue a well defined JORC-compliantcoal resource, to test the coal extensionsimmediately along strike to the north of the currentdrilling and also to test the regional explorationtargets where outcropping coal-bearingsediments have been identified.Geophysical programs will also be incorporatedin the extended explorationactivity.Drill hole wireline logs have beencompleted and geological interpretationwork is in progress for a JORCcompliantresource estimation.The company has been investigatingresource options outside theexisting project area, particularlydirectly to the north where two offour drill holes intersected coalseams. Results were 10.4 metres ofcoal from 49.1 metres and 2 metresfrom 175.2 metres.The company is also planning afour hole drilling program at theZuun Del prospect which is 30km tothe east of Ovoot.Aspire has received commitmentsfrom sophisticated and institutionalinvestors to subscribe for 50 millionfully paid shares to raise Aus$4.5million.Apart from the expanded andaccelerated drilling program, theplacement proceeds will also be usedfor geophysical programs at Ovoot,the provision of larger metallurgicalsamples for sizing and coking analysis,and working capital.Aspire’s chairman David McSweeney sayshe is pleased with the strong support for theissue, which is a vote of confidence for thecompany’s measured development strategy forA drill plan at the Ovoot Coking Coal Project.A chilly site visit to Ovoot by an Aspire Mining team .Ovoot.“The company is now well funded to pursuethe expanded and accelerated exploration strategyfor Ovoot.”The ASIA Miner - September-October, 2010 - 17

MongoliaGulfside acquirescoal prospectsGULFSIDE Minerals hasacquired three mining explorationlicences encompassingportions of the Kharkhonkhor (BlackHole) Brown Coal Deposit andOnjuul Brown Coal Deposit in theChoir-Nyalga Coal Basin.The company is undertaking anexploration program on the licenceswhich are about 170km south-west ofUlaanbaatar in Tuv Aimag.The first geological reconnaissanceof the area included mapping done bySoviet geologists in 1941 and 1954while exploration in 1973 by aRussian-Mongolian geological groupconsisted of drilling 15 holes andexcavating 11 prospecting pits and 8trenches.In 2005 Chingis Khar Alt LLCadvanced two boreholes on one of thelicence areas. Holes were drilled todepths between 50 and 100 metresand intersected four distinct coalseams ranging from 0.2 to 31.9 metresthick.An historical estimate from the1970s shows 232 million tonnes in theMongolian P1 category, 1017.9 milliontonnes in P2 and 271.4 milliontonnes in P3. P1 has the highest orderof confidence, closest to the CIM definitionof an inferred resource, whileP2 and P3 have respectively lowerlevels of confidence such that both areonly indicative of a favourable geologicalenvironment.An NI 43-101 technical report preparedby Norwest Corp utilizingunverifiable data from maps and crosssections in historical documents, hasestimated potential tonnages of159–178 million tonnes and classifiesthe coal as Lignite A.Norwest recommended an explorationprogram to verify coal thicknessand quality. If the results ofexploration are favourable, engineeringand economic studies may ultimatelyfollow.In 2009, seven core holes and fourrotary holes were drilled in a phase 1program at Onjuul. This programaccomplished the objectives of validatinghistoric drilling data, acquiringnew coal quality data, acquiring basichydrology and geotechnical information,confirming the existing geologicalmodel, and demonstrating theopportunity in remaining drillingphasesPhase 2 drilling of 10 holes is beingcarried out this field season. Onceadditional drilling has been completedand laboratory results analyzed, thecompany will be in a position to furtherevaluate the viability of a coal liquefactionproject. Preliminary analyticalresults suggest the coals are ofimproved quality in terms of ash andcalorific value than historic estimates.The area of drilling is less than aquarter of the licence area and thebasin has potential for additional coaloccurrences. The licences cover anarea up to 7.08km long by 4.15kmwide and encompass 2156 hectares.The company has also signed Earnin Agreements to acquire two miningexploration licenses encompassingthe Brown Valley and Buleen Hundiiprojects, which adjoin Black Hole andOnjuul to the north and north-east andadd 10,319 hectares.Gulfside also has the Erdenetsogtproperty which has a lignite coalresource of 434 million tonnes in themeasured category and 751 millionindicated tonnes. Erdenetsogt covers13,574 hectares in the Dornogobiregion. The property is 6km from a35KV electric power line, 82km fromthe Trans-Mongolian Railroad and200km from the Chinese border.www.asiaminer.comOyut Ovoo iron oreshipments to startTHE shipment of iron ore from North Asia Resources’ Oyut Ovooproject to China will begin shortly with project partner ChinaRailway Mongolia Investment LLC securing a throughput quotaof 200,000 tonnes of iron ore from September to December 2010.In future shipments will be made easier with China RailwayMongolia and North Asia’s Mongolian company Golden Pogada LLCbeing granted a land use rights licence to an 18 hectare parcel of landadjacent to the Choir railway station on the Trans-Mongolian Railwayfor construction of a dock and associated facilities.The dock will be the destination for material from Oyut Ovoo withan extension line to be constructed linking with the Trans-Mongolianline, therefore allowing easy access to China.The first phase of the construction of the dock and extension line isexpected to be completed in early September.China Railway Mongolia has entered into a strategic partnershipwith North Asia Resources to jointly develop the Oyut Ovoo mine withmining expected to be in full swing during this quarter.Oyut Ovoo is a high-grade iron ore and cooper mineralization withina 1sqkm skarn and breccia-pipe intrusive complex. The main propertycomprises an area of 12.01sqkm over 5 contiguous mineral licensesin south-central Mongolia. Iron and copper-gold mineralizationassociated with skarns and hydrothermal breccias is widespread on theproperty over an area of about 3sqkm.The project partners have completed a technical valuation exerciseon the ‘First Mine Area’ of Oyut Ovoo, measuring 1sqkm out of thetotal concession area of 12.01sqkm. An independent technical reportestimated a total JORC-equivalent measured, indicated and inferredresource of 148.9 million tonnes of iron ore and 180,000 tonnes of copperresources in the First Mine Area alone, which covers about 8.33%of the total mine area.According to the terms of a transportation agreement and off-takeagreement, China Railway Mongolia will annually purchase no lessthan 1.5 million tonnes of the mine’s output at prevailing market pricesand provide transportation services for annual output of no less than2.5 million tonnes to Erenhot. The term of both agreements is for aninitial period of 10 years.There are two main areas of focus in facilitating smooth transportationof resources from Oyut Ovoo - ensuring that road conditions aresuitable for trucks to travel the 265km to Choir and establishment of adocking facility at the station that will enable the loading and unloadingof up to 3.5 million tonnes of iron lumps/concentrate each year.North Asia has also purchased an alluvial gold mine in the ShariinGol gold belt in Darkhan Uul Aimag, about 180km north ofUlaanbaatar. The company hosted a ground breaking ceremony at theKhar Yamaat mine in June to mark the mine’s opening.North Asia’s CEO Chan Kwan Hung said, “We aim to fully exploreand develop the strong potential of the alluvial mine, utilizing experiencedand technically competent operators.“The local government has already provided strong support for ourinvestment and we look forward to building a long term relationshipwith the Shariin Gol community.“I am confident the mine will generate cash flow and complementthe company’s plans to start iron ore production from the Oyut Ovoomine.”LEFT: Aceremonywas held tomark theopening of theOyut Ovoooperations insouthernMongolia.18 - The ASIA Miner - September-October, 2010

www.asiaminer.comOyu Tolgoi will be‘top three producer’ANEW, independent integrated developmentplan (IDP) confirms that IvanhoeMines’ Oyu Tolgoi Project in southernMongolia has the mineral resources to becomeone of the world’s top three copper-gold producers.The plan also states that Oyu Tolgoi willbecome an industry model of responsible, environmentally-soundmineral development.The new plan is a comprehensive update of theoriginal 2005 IDP and supports Ivanhoe’s commitmentto advance Oyu Tolgoi into full construction,with production of copper and goldexpected to begin in 2013.It estimates average annual production of 1.2billion pounds of copper and 650,000 ounces ofgold for the first 10 years.The IDP also presents the results of extensivestudies of two complementary development scenarios:q A Reserve Case based only on proven andprobable mineral reserves established to thispoint, which would sustain mining at the aboverate for a projected 27 years.q A Life-of-Mine Sensitivity Case which addsto the Reserve Case a large base of resourcesidentified through exploration but currently classifiedonly to the level of NI 43-101 inferredresources. The IDP estimates that this case wouldsustain mining for a projected 59 years.Part of the ongoingexploration program at OyuTolgoi is directed at upgradinginferred resources tohigher classifications.Ivanhoe’s president andCEO John Macken says,“Given the scale of our discoveriesand the outstandingeconomics of this project,this updated plan givesus the green light we were expecting from thisprocess to continue proceeding straight into constructionand operation of a world-class mine.“The increase is value and the amount of mineralreserve, with the inclusion of undergroundreserves for the Hugo Dummett block-cave mine,will support our financing plans as we begin ourdrive toward operations at Oyu Tolgoi.”Company chairman Robert Friedland says theLife-of-Mine Sensitivity Case generates a 95%increase in potential feed for the ore processingplant over the 2005 projections. “This caseincreases estimated copper production by 50% to52.5 billion pounds and increases estimated goldproduction by 126% to 26.4 million ounces.“Ivanhoe believes that these results will continueto improve and that Oyu Tolgoi will stand tallwith established giants like Grasberg andEscondida in the pantheon of the world’s greatestThe camp at Ivanhoe Mines’ Oyu Tolgoi project.Mongoliamines.”Meanwhile Ivanhoe has given notice of its planto lift certain capital restrictions to the Rio TintoGroup, its financial partner in Oyu Tolgoi.Ivanhoe intends to remove a 2007 investorcovenant, so allowing it to issue more than 5% ofits common stock to third-party investors includingmajor mining companies. The covenant governsRio’s investment in Ivanhoe.Ivanhoe lead independent director DavidHuberman says that the removal of the covenantwill give the Ivanhoe Board the flexibility to considerall available opportunities as part of itsobjective of realizing maximum value.“Rio Tinto has been a supportive strategic partnerfor Ivanhoe in advancing the Oyu TolgoiProject to full-scale construction. We intend tocontinue our cooperation as we pursue additionalfinancing options for this world-class project.”The ASIA Miner - September-October, 2010 - 19

Mines & Money - Beijing, Chinawww.asiaminer.comMines & Money Beijing attendees, from left,RBS Investment Group capital mobilizationpresident Jesse Seligman, ContinentalMinerals government affairs deputy generalmanager Steven Sun and Wall StreetCapital Advisors CEO Adrian Wall.Shandong Jiuyang Group Company vicechairman Liu Ji An, Marengo Mining managingdirector Les Emery and Fortune SteelResources Ltd general manager JerryWang.Range River Gold chairman Dr KevinTuckwell and managing director RickWatsford with Tanami Gold managing directorGraeme Sloan at Mines & Money Beijingevent at the World Trade Hotel.Beijing Suntrans Language Trans la t -ions Company general manager GaoLu and geologist Liqing Zhao at Mines& Money Beijing.Archipelago Resources business developmentmanager Malcolm Wilson, EurasiaCapital business development managerLeigh Yang and Beijing Rainmaker Law Firmlawyer Nannan Wang.The team from Yong Gui Tech, agents forShaw Core Drill, from left, Frank Wang,deputy manager David Wang and accountmanager Candy Xu.Lara Exploration president Andre Gauthier, China Mineral Holdingscorporate development vice president Vivienne Wang, LaraExploration investor relations manager Julia Maxwell and ChinaMining United investment department director Jerry Tsui.Selwyn Resources president and CEO Dr Harlan Meade, SelwynResources advisor Angel Zhang, HT Mining business developmentmanager Huijuan Wen and Sino-qz Group financing andproject assistant manager Sandy Zhu.ABOVE LEFT: The Ernst and Young team at Mines & Money Beijing, from left, socio Marcial GarciaSchrek, transactions partner Evgeni Khrustalev and transaction advisory services executive directorNikie Shi. ABOVE RIGHT: Ernst and Young transaction advisory services senior manager PohChuan Teoh, Africa transaction advisory services director Adrian Macartney and partner in charge ofErnst and Young Guinea, Partner in charge of the mining activities in CWEA, Balkans andMediterranean areas, French and Portuguese speaking countries in Africa Christian Mion.20 - The ASIA Miner - September-October, 2010Ausenco China region directorNorman Ting and Albidon Ltd CEOJian Hua Sang at Mines & Money inBeijing.

The ASIA Miner - September-October, 2010 - 21

Chinawww.asiaminer.comPermitting advances for Fuwan projectPERMITTING for Minco SilverCorp’s Fuwan Silver Project inGuangdong Province is progressingwith the Environmental ImpactAssessment (EIA) advanced to the finalstage.Minco owns 90% in the world-classFuwan silver deposit, which is along thenorth-east margin of the highly prospectiveFuwan Silver Belt.The Geological Hazard Assessmentfor the project has been approved by theDepartment of Land and Resources ofGuangdong Province.The Mine Development Plan has beenprepared by NERIN on behalf of thecompany and has been approved by atechnical panel of experts appointed bythe Ministry of Land and Resources ofChina, which is now registering the plan.The EIA has been completed and submittedto the province’s Department ofEnvironmental Protection. A technicalpanel comprising eight experts appointedby the department was then established.After detailed review and examinationof the EIA, the panel concluded that theFuwan Silver Project is environmentallyvalid, and approved the EIA submissionfrom a technical point of view.The company receive comments onthe EIA from the technical panel and hasrevised the EIA accordingly. The revisedEIA has now been submitted to thedepartment for the administrativeapproval.卡 梅 克 签 署 了 合 资 开 发 铀 矿 的 协 议卡 梅 克 铀 矿 开 采 公 司 正 在 与 中 国 广 东 核 电 集 团 开 展 长期 合 作 , 为 该 中 国 公 司 数 量 日 益 增 长 的 核 电 厂 提 供 铀燃 料 。中 国 广 东 核 电 集 团 是 中 国 最 大 的 清 洁 能 源 公 司 , 其 在建 中 的 核 电 厂 数 目 最 多 、 遍 及 全 球 , 集 团 有 4 个 运 作 中的 反 应 堆 , 另 外 还 有 一 些 反 应 堆 处 于 兴 建 中 , 这 些 反应 堆 需 要 铀 作 燃 料 。中 广 核 集 团 在 建 中 的 核 电 装 机 容 量 大 约 为 2000 万 千 瓦, 预 期 在 2010 年 超 过 5000 万 千 瓦 。加 拿 大 的 卡 梅 克 公 司 与 中 广 核 集 团 签 署 了 一 项 不 具 约束 力 的 框 架 协 议 , 据 此 , 双 方 将 就 长 期 的 铀 采 购 合 同, 以 及 潜 在 的 铀 矿 合 作 开 发 问 题 进 行 洽 谈 。卡 梅 克 的 首 席 执 行 官 Jerry Grandey 称 , 此 次 合 作 将 推动 公 司 为 世 界 上 发 展 最 快 的 核 电 公 司 之 一 提 供 铀 资 源。“ 公 司 计 划 在 2018 年 将 铀 产 量 提 升 一 倍 , 同 时 也 为 配合 中 国 的 核 反 应 堆 建 设 。”来 自 中 国 的 报 道 表 明 , 中 国 计 划 到 2020 年 至 少 将 核 电装 机 容 量 从 900 万 千 瓦 提 高 至 7000 万 千 瓦 。 到 2030 年 ,提 高 至 12000-16000 万 千 瓦 。Jerry Grandey 进 一 步 表 明 ,“ 我 们 打 算 与 中 国 广 东 核 电集 团 建 立 长 期 的 合 作 关 系 。”中 广 核 集 团 近 期 会 见 了 卡 梅 克 在 加 拿 大 的 高 层 官 员 ,并 参 观 了 卡 梅 克 位 于 萨 斯 喀 彻 温 省 北 部 的 矿 区 。中 广 核 集 团 是 一 个 国 有 企 业 , 主 要 从 事 核 电 厂 的 发 展、 建 设 与 运 营 。 公 司 拥 有 两 个 运 作 中 的 核 电 站 , 核 电装 机 容 量 接 近 400 万 千 瓦 , 另 外 还 有 14 个 核 电 站 在 兴 建中 。 同 时 , 公 司 还 运 营 了 常 规 发 电 设 施 , 涉 及 太 阳 能、 风 能 和 水 利 发 电 技 术 的 开 发 。卡 梅 克 , 总 部 位 于 萨 斯 喀 彻 温 省 , 是 世 界 上 最 大 的 铀生 产 商 之 一 。 公 司 的 铀 产 品 在 世 界 范 围 内 被 广 泛 用 于核 电 厂 进 行 发 电 , 是 当 今 世 界 最 清 洁 的 能 源 来 源 之 一。 公 司 在 加 拿 大 和 哈 萨 克 斯 坦 拥 有 在 生 产 中 的 矿 山 。22 - The ASIA Miner - September-October, 2010Minco Silver’s chairman and CEO DrKen Cai says, “We are very pleased withthe progress on permitting of the Fuwanproject. We will immediately submit ourmining licence application once theadministrative EIA approval isobtained.”Meanwhile the company has appointeda vice president of operations based atthe Fuwan site in Gaoming and who willbe in charge of the construction andoperation.Dr Dianmin Chen has also beenappointed as president of Minco’sChinese operating company, FoshanMinco Fuwan Mining Co.After working in the Chinese miningindustry for eight years, Dr Chen joinedRio Tinto’s Northparkes Mines in centralNew South Wales, Australia, for fouryears. He was with Barrick Gold from1998 to 2007, working in progressivelysenior roles at several of its projects andoperations in Australia.Dr Chen was the executive directorand general manager at Sino JinfengMining, a subsidiary of Sino GoldCorporation, from 2007 to 2009 and wasresponsible for the management of theJinfeng Gold Mine in Guizhou Province,China. Prior to joining Minco Silver, DrChen was chief operations officer ofCITIC Pacific Mining Management,responsible for development of a largemagnetic iron ore mine in WesternAustralia.富 湾 项 目 许 可 证 申 请 工 作 的 进 展明 科 银 矿 公 司 位 于 广 东 省 的 富 湾 银 矿 项 目 的 许 可 证 申 请 工 作与 环 境 影 响 评 估 正 在 进 行 中 , 预 计 将 预 先 进 入 最 后 阶 段 。明 科 拥 有 富 湾 这 个 世 界 级 的 银 矿 床 90% 的 权 益 , 该 矿 床 位 于极 具 前 景 的 富 湾 银 矿 带 的 东 北 边 缘 。广 东 省 国 土 资 源 厅 已 经 通 过 了 该 项 目 的 地 质 灾 害 评 估 。南 昌 有 色 冶 金 设 计 研 究 院 为 明 科 准 备 的 矿 山 开 采 方 案 已 经通 过 了 中 国 土 地 资 源 局 任 命 的 一 个 专 家 技 术 小 组 的 批 准 ,土 地 资 源 局 目 前 正 在 为 该 方 案 进 行 注 册 。环 境 影 响 评 估 已 经 完 成 并 提 交 省 环 境 保 护 部 门 。 该 部 门 任命 的 一 个 由 八 名 专 家 组 成 的 技 术 小 组 随 之 成 立 。在 完 成 了 对 环 境 影 响 评 估 的 详 细 审 查 后 , 专 家 小 组 得 出 结论 : 富 湾 银 矿 项 目 从 环 境 上 来 说 是 可 行 的 , 并 同 意 从 技 术角 度 的 观 点 提 交 环 境 影 响 评 估 。公 司 收 到 了 技 术 小 组 对 环 境 影 响 评 估 的 评 论 , 并 相 应 的 对环 境 影 响 评 估 做 出 修 改 。 修 改 后 的 环 境 影 响 评 估 现 在 已 经提 交 给 该 部 门 进 行 行 政 审 批 。明 科 银 矿 的 总 裁 兼 首 席 执 行 官 蔡 之 凯 博 士 说 ,“ 我 们 对 富 湾项 目 许 可 证 申 请 工 作 的 进 展 感 到 非 常 高 兴 。 一 旦 环 境 影 响评 估 行 政 审 批 通 过 , 我 们 就 立 即 提 交 采 矿 执 照 申 请 。”同 时 , 公 司 已 经 任 命 了 一 位 运 营 副 总 裁 , 负 责 位 于 高 明 的富 湾 矿 的 建 设 和 运 营 工 作 。陈 奠 民 博 士 也 已 经 被 任 命 为 明 科 中 国 运 营 公 司 佛 山 明 科 富湾 矿 业 公 司 的 总 裁 。陈 博 士 在 中 国 采 矿 业 工 作 八 年 后 , 加 入 了 力 拓 位 于 澳 大 利亚 新 南 威 尔 士 州 中 部 的 北 帕 克 斯 矿 业 公 司 , 工 作 了 四 年 。1998 年 至 2007 年 期 间 , 在 位 于 澳 大 利 亚 的 几 个 项 目 和 运 营中 任 要 职 。在 2007 年 至 2009 年 期 间 , 陈 博 士 在 澳 华 黄 金 公 司 的 子 公 司澳 华 锦 丰 矿 业 公 司 担 任 执 行 董 事 兼 总 经 理 , 负 责 位 于 中 国贵 州 省 的 锦 丰 金 矿 的 管 理 工 作 。 在 加 入 明 科 银 矿 之 前 , 陈博 士 在 中 信 泰 富 矿 业 管 理 有 限 公 司 任 首 席 运 营 官 , 负 责 位于 西 澳 大 利 亚 州 的 一 个 大 型 磁 铁 矿 的 开 发 工 作 。Cameco signs agreement tosupply Chinese nuclear plantsURANIUMminer Cameco is pursuinglong-term co-operation opportunitieswith China Guangdong NuclearPower Holding Co (CGNPC) to supply uraniumfuel for the Chinese company’s growingnumber of nuclear power plants.CGNPC, China’s largest clean-energyenterprise with the largest number of nuclearpower plants under construction in theworld, needs uranium to fuel its four existingreactors and others that are under construction.CGNPC has about 20,000 megawatts(MW) of nuclear capacity under constructionand expects to have more than 50,000 MWon line by 2020.Canadian-based Cameco and CGNPChave signed a non-binding framework agreementcommitting the companies to negotiatelong-term uranium purchase agreements andpotential joint development of uraniumresources.Cameco’s CEO Jerry Grandey says, “Theannouncement moves Cameco one step closerto supplying uranium to one of the fastestgrowing nuclear companies in the world.“Our plan to double uranium productionby 2018 aligns well with China’s vigorousreactor construction program.”Reports from China indicate the countryplans to increase its nuclear capacity fromthe current 9 gigawatts (GW) to at least 70GW by 2020. A further increase to 120-160GW or more is planned by 2030.Jerry Grandey adds, “We intend to securea long-term relationship with ChinaGuangdong Nuclear Power.”CGNPC have recently met with Cameco’ssenior executives in Canada and touredCameco’s mine sites in northernSaskatchewan.CGNPC is a state-owned enterprisefocused on development, construction andoperation of nuclear power plants.It operates two nuclear power stationswith nearly 4000 MW of installed generatingcapacity and has 14 nuclear power unitsunder construction. The company also operatesconventional generation facilities and isinvolved in development of solar, wind andhydro technology.Cameco, with its head office in Saskatoon,Saskatchewan, is one of the world's largesturanium producers.The company’s uranium products are usedto generate electricity in nuclear energyplants around the world, providing one of thecleanest sources of energy available today. Ithas producing mines in Canada and inKazakhstan.

www.asiaminer.com斯 帕 顿 在 中 国 的 运 作 初 具 规 模根 据 融 资 情 况 , 斯 帕 顿 资 源 有 限 公 司 开 展 的 从 临 沧 地 区的 废 灰 中 提 取 天 然 铀 的 大 量 测 试 工 作 预 期 在 2010 年 第 四季 度 开 始 。测 试 工 作 将 在 概 况 研 究 或 预 可 行 性 研 究 完 成 后 进 行 , 公司 期 望 该 测 试 工 作 可 以 推 动 可 行 性 工 作 进 入 最 后 阶 段 ,并 且 使 可 能 的 首 批 从 临 沧 地 区 的 废 灰 中 提 取 铀 的 生 产 工作 能 够 在 2012 年 初 期 到 中 期 间 启 动 。对 其 他 粉 灰 、 尾 矿 和 低 品 位 废 矿 石 的 测 试 工 作 将 持 续 进行 。 清 洗 铀 的 项 目 由 斯 帕 顿 的 子 公 司 斯 帕 顿 能 源 公 司 及其 合 作 伙 伴 中 国 核 工 业 集 团 公 司 航 测 遥 感 中 心 实 施 。斯 帕 顿 , 在 今 年 早 些 时 候 出 售 其 潞 西 黄 金 项 目 39% 的 股权 获 得 了 200 万 元 人 民 币 , 之 后 , 公 司 继 续 寻 找 融 资 方案 以 支 持 公 司 在 中 国 开 展 商 业 活 动 。 为 了 实 现 这 一 目 的, 斯 帕 顿 与 邓 迪 资 源 公 司 为 其 子 公 司 斯 帕 顿 能 源 公 司 就可 能 存 在 的 重 新 融 资 方 案 进 行 了 讨 论 。斯 帕 顿 能 源 公 司 拥 有 的 股 权 包 括 : 与 中 国 核 工 业 集 团 合作 的 次 生 铀 生 产 , 郭 家 坪 钒 铀 项 目 以 及 华 军 的 锗 矿 项 目。 与 邓 迪 合 作 确 定 最 终 的 融 资 方 案 将 为 斯 帕 顿 发 展 斯 帕顿 能 源 公 司 在 中 国 的 资 产 提 供 一 个 更 为 专 一 的 计 划 , 并且 , 这 是 将 斯 帕 顿 能 源 公 司 在 中 国 转 变 成 一 个 独 立 的 铀/ 钒 / 锗 生 产 商 至 关 重 要 的 一 步 。在 推 动 临 沧 次 生 铀 矿 提 取 项 目 的 同 时 , 斯 帕 顿 计 划 完 成郭 家 坪 勘 探 执 照 的 评 估 工 作 , 它 包 含 一 个 大 型 的 、 页 岩型 钒 矿 床 , 且 伴 生 铀 矿 资 源 , 另 外 , 公 司 还 计 划 提 高 在产 的 华 军 锗 矿 的 现 金 流 。斯 帕 顿 计 划 在 2010 年 下 半 年 完 成 华 军 矿 85% 的 股 权 收 购, 进 一 步 发 展 这 一 多 产 的 锗 矿 和 热 煤 生 产 的 运 营 。锗 金 属 和 精 矿 的 需 求 和 价 格 体 系 在 过 去 和 现 在 萧 条 的 经济 条 件 下 一 直 保 持 经 久 不 衰 , 预 计 在 近 期 内 将 更 为 强 劲。 斯 帕 顿 采 取 2009 年 9 月 初 的 运 营 和 财 务 职 责 做 出 的 评估 表 明 , 提 高 收 益 的 改 造 空 间 还 很 大 , 地 下 矿 开 发 项 目将 推 动 新 储 备 的 获 得 以 及 进 程 控 制 的 实 施 将 提 高 锗 的 回收 率 。评 估 及 收 购 位 于 江 西 省 的 郭 家 坪 钒 矿 床 的 新 机 遇 正 好 迎合 了 公 司 成 为 一 个 盈 利 的 专 业 金 属 生 产 商 的 商 业 计 划 。ChinaSparton operations take shapeABULKtest program by SpartonResources on the extraction of uraniumfrom waste ash in the Lincangarea is expected to begin by the fourth quarterof 2010 subject to financing.The test program will be followed by completionof a scoping or pre-feasibility levelstudy, which the company hopes will lead tofinal feasibility work and possible first uraniumproduction from waste ash at Lincang inearly to mid 2012.Test work on other ash deposits, mine tailingsand low grade waste ore deposits willproceed on an ongoing basis.The uranium cleanup program is beingcarried out by Sparton’s subsidiary SpartonEnergy Inc (SEI) and its partner the ChinaNational Nuclear Corporation (CNNC)Remote Sensing subsidiary ARCN.After receiving the final payment of 2 millionRenminbi for the sale of its 39% interestin the Luxi Gold Project earlier this year,Sparton has continued to pursue financingoptions to support its activities in China.To this end it has entered into discussionswith Dundee Resources related to a possiblere-financing package for its subsidiary,Sparton Energy Inc (SEI).SEI’s interests include the secondary uraniumproduction with CNNC, theGuojiaping vanadium-uranium project andthe Huajun germanium operations.Finalizing this financing package withDundee would provide Sparton with afocused program for developing SEI’s Chinaassets and would be a significant step towardultimately turning SEI into a stand-alone uranium/vanadium/germaniumproducer inChina.As well as advancing the Lincang secondaryuranium recovery program, Sparton aimsto complete the evaluation of the Guojiapingexploration licence which contains a large,shale-hosted vanadium deposit with associateduranium mineralization, and improvethe cashflow at the producing Huajun germaniumoperations.Sparton plans to complete the acquisitionof an 85% interest in Huajun Mining and furtherdevelop the profitable germanium andthermal coal producing operations of thatcompany during the second half of 2010.The demand and pricing structure for germaniummetal and concentrates is expectedto strengthen in the near term and has stoodup well under past and current depressedeconomic conditions.Sparton’s evaluation of the operation afterassuming operating and financial responsibilityin early September 2009 indicates significantroom for upgrades to increase profitabilitywith an underground developmentprogram to access new reserves and implementationof process controls to increasegermanium recovery efficiencies.The new opportunity to evaluate andacquire the large Guojiaping vanadiumdeposit in Jiangxi province fits directly intothe company’s business plan to become aprofitable specialty metal producer.The ASIA Miner - September-October, 2010 - 23

ChinaFunds sought to upgradePinyao magnesium plantCHINA Magnesium Corporation isseeking to raise Aus$8 million froman initial public offering to fund aninitial upgrade and expansion of the Pinyaomagnesium plant in Shanxi Province.The funds will also be used to completethe company’s earn-in of a minimum 75%interest in the project.China Magnesium aims to be one of thelargest producers in the world of pur magnesiumand magnesium alloy, supplyingdomestic Chinese and international customerswith long term, reliable supply.Magnesium is a light-weight structuralmetal, used in motor vehicles for improvingfuel efficiency and in mobile electronicdevices.The company’s managing director TomBlackhurst says the group has ‘shovelready’plans, subject to financing and finalformalities, to upgrade and restart the plantas a low-cost producer, targeting practicalcompletion and commissioning of an initialupgrade/expansion to an annual capacity of20,000 tonnes by the March quarter 2011.“Once our listing on the ASX is completewe will be able to begin the upgrade andexpansion of our magnesium operations.Our long term goal, for which we have keypermitting in place, is to expand annualmagnesium production to 105,000 tonnesover three major phases by 2013.“We have already received a non-bindingletter of intent from the China ConstructionBank, one of the world’s largest banks, toNew Chinalco copper emphasisTHEAluminium Corp of China, ofChinalco, the parent of China’slargest aluminium producer Chalco,has prioritized the development of its copperbusiness, especially in the upstream segmentof the industry like exploration ofmines and potential deposits.China’s State-owned Assets Supervisionand Administration Commission, the regulatorof major state-controlled enterprises,says that as part of Chinalco’s developmentplan for the next three years it will step upefforts to develop much-needed nationaldefence products in the downstream segmentof the copper industry.Chinalco has stakes in several coppercompanies, including Yunnan CopperIndustry (Group) Co, Shanghai Copper Co,Central China Copper Co and Peru Copper.It will seek to expand its copper businessthrough cooperation with domestic copperenterprises.To this end it will site its 200,000-tonnesecondary copper project in Qingyuan,Guangdong Province. The project is expectedto be put into operations at the end of2010.The company is also negotiating withMongolia about a possible labour contractfor the giant Oyu Tolgoi copper-gold project.If a labour contract is signed about 2600Chinese workers are expected to work for24 - The ASIA Miner - September-October, 2010debt fund US$14.6 million of the totalexpansion capital expenditure to 105,000tonnes.”The project’s key competitive advantageis its licence to substantially expand capacity,which is uncommon for an existing, relativelysmall plant in China, and plans forvertical integration, including a nearbysource of good quality dolomite (magnesiumore) and new magnesium alloyingcapacity.Existing alloyers generally buy pure magnesiumfrom magnesium producers, then remeltthe magnesium to add the alloyingingredients, with additional metal loss, energycosts, plant infrastructure and overheads.“We will bypass this in one stage, capturingthe whole alloying margin at nil or negligibleadditional cost, and we are expectingto maintain long term operational viabilityregardless of the long term magnesiumprice.”China Magnesium is backed by a managementteam who know how to operate inChina and these key personnel, includingthe owner of the minority joint venture partner,have aligned their interests with shareholdersby having a material shareholding inthe company.The local community has a vested interestin ensuring success, with the expansionproject classified by the local government asa ‘preferred project’. A major Chinese automotivegroup also plans to construct a carproduction plant in the area.the project.In March this year, Chinalco's presidentXiong Weiping expressed the company'swillingness to co-develop the Oyu Tolgoimine, which is the largest undeveloped copper-goldmine in the world and is just200km from the border of the two countries.Chinalco has strong advantages in participatingin this mine's exploration as themine depends largely on the infrastructureof China for the export of its products, andChina is the only large country with mineralimport around Mongolia.Meanwhile with its aluminium developmentprojects in mind, Chinalco has extendedthe validity period of its plan to raise upto 10 billion yuan through a private placementby 12 months to August 23, 2011.It is seeking these funds for three projects- an 800,000-tonne alumina project inChongqing, an 800,000-tonne alumina projectin Shanxi Province and a 700,000-tonneiron ore processing factory in HenanProvince. The projects will increase itscapacity by 19%.Chinalco has also formed a joint venturewith Jiangxi Rare Earth and Rare MetalsTungsten Group to annually produce 40,000tonnes of nickel and cobalt.Chinalco controls 51% of the joint venture,which plans to expand annual output to100,000 tonnes.www.asiaminer.com中 国 镁 业 计 划 改 造 平 遥 镁 锭 厂中 国 镁 业 公 司 正 在 通 过 首 次 公 开 募 股 为 其 位 于 山西 省 的 平 遥 镁 锭 工 厂 的 改 造 和 扩 建 筹 集 800 万 澳 元资 金 。 这 些 资 金 还 将 使 公 司 在 该 项 目 上 能 够 获 得最 少 75% 的 股 息 。中 国 镁 业 致 力 于 成 为 全 球 最 大 的 纯 镁 和 镁 合 金 生产 商 之 一 , 为 国 内 外 客 户 提 供 长 期 稳 定 的 货 源 。镁 是 一 种 轻 质 的 结 构 金 属 , 常 被 用 于 机 动 车 辆 中以 提 高 燃 油 效 率 , 另 外 , 还 常 被 用 于 移 动 电 子 设备 中 。公 司 的 总 经 理 Tom Blackhurst 说 , 根 据 融 资 和 最 后阶 段 手 续 的 办 理 情 况 , 我 们 制 订 的 作 为 一 个 低 成本 生 产 商 改 造 和 重 新 启 动 加 工 厂 的 计 划 已 经 就 绪, 旨 在 到 2011 年 第 一 季 度 年 产 量 达 到 2 万 吨 。“ 一 旦 我 们 在 澳 大 利 亚 证 券 交 易 所 上 市 , 我 们 将 能够 开 始 改 造 和 扩 建 我 们 的 镁 业 运 营 。 我 们 已 经 有了 主 要 的 采 矿 许 可 , 我 们 的 长 期 目 标 是 到 2013 年 之前 分 三 个 阶 段 使 镁 的 年 产 量 达 到 10.5 万 吨 。”“ 我 们 已 经 获 得 了 世 界 最 大 银 行 之 一 的 中 国 建 设 银行 的 宽 松 意 向 书 , 可 取 得 最 高 达 1460 万 美 元 的 贷 款用 于 扩 产 项 目 。”该 项 目 的 主 要 竞 争 优 势 是 它 的 执 照 可 以 极 大 的 扩大 产 能 , 这 对 于 一 个 位 于 中 国 的 现 有 的 、 相 对 较小 的 加 工 厂 来 说 , 有 点 不 同 寻 常 , 另 外 , 垂 直 整合 计 划 包 括 附 近 的 优 质 白 云 石 ( 镁 矿 石 ) 和 新 的镁 合 金 产 能 。现 有 的 金 属 镁 生 产 商 把 纯 镁 出 售 给 镁 合 金 制 造 商, 镁 合 金 制 造 商 再 经 过 重 熔 并 添 加 合 金 成 分 来 生产 镁 合 金 , 这 一 过 程 会 出 现 损 耗 、 能 源 浪 费 、 基础 设 施 建 设 和 管 理 成 本 的 增 加 。“ 我 们 将 绕 过 这 一 阶 段 , 使 总 的 合 金 利 润 的 附 加 成本 为 零 或 者 为 负 , 我 们 期 望 可 以 长 期 保 持 运 营 活力 , 不 受 长 期 的 镁 价 格 的 影 响 。”中 国 镁 业 拥 有 强 有 力 的 管 理 团 队 , 熟 悉 中 国 企 业运 营 模 式 。 主 要 合 伙 人 , 包 括 少 数 合 资 股 东 , 对该 项 目 表 示 支 持 。当 地 政 府 也 极 为 重 视 该 项 目 , 对 此 表 示 出 极 大 的关 注 , 并 把 该 项 目 列 为 “ 重 点 工 程 ”。 此 外 , 国 内 某大 型 汽 车 制 造 商 也 计 划 在 该 项 目 附 近 开 建 工 厂 。中 铝 公 司 优 先 发 展 铜 板 块中 国 铝 业 公 司 (Chinalco), 是 中 国 最 大 的 铝 生 产 商 中国 铝 业 股 份 有 限 公 司 (Chalco) 的 母 公 司 , 公 司 将 优 先发 展 其 铜 板 块 , 重 点 发 展 涉 及 铜 矿 和 潜 在 矿 藏 勘 探 的上 游 行 业 。中 国 国 有 资 产 监 督 管 理 委 员 会 , 是 大 型 国 有 企 业 的 监督 机 构 , 日 前 表 示 , 作 为 未 来 三 年 发 展 计 划 的 一 部 分, 中 铝 公 司 还 将 加 大 对 下 游 铜 产 业 中 急 需 国 防 产 品 的开 发 力 度 。中 铝 公 司 还 在 云 南 铜 业 ( 集 团 ) 有 限 公 司 、 上 海 铜 业有 限 公 司 、 华 中 铜 业 有 限 公 司 和 秘 鲁 矿 业 公 司 拥 有 股份 。 中 铝 公 司 将 通 过 与 国 有 铜 业 企 业 的 合 作 扩 展 其 铜板 块 的 业 务 。为 了 实 现 这 一 目 标 , 中 铝 的 20 万 吨 再 生 铜 工 程 项 目 将落 户 广 东 清 远 。 该 项 目 将 于 年 底 前 投 产 。 中 铝 还 在 与蒙 古 洽 谈 一 项 协 助 大 型 Oyu Tolgoi 铜 金 矿 项 目 开 发 的劳 工 协 议 。 如 果 该 协 议 通 过 , 将 有 约 2600 名 中 国 劳 工进 入 Oyu Tolgoi 铜 金 矿 工 作 。今 年 三 月 份 , 中 铝 的 总 裁 熊 维 平 表 达 了 公 司 希 望 合 作开 发 Oyu Tolgoi 矿 的 意 愿 ,Oyu Tolgoi 矿 是 世 界 上 最 大的 未 开 发 铜 金 矿 , 距 离 中 蒙 边 境 仅 200 公 里中 铝 有 意 参 与 Oyu Tolgoi 铜 金 矿 开 采 的 优 势 条 件 是 ,Oyu Tolgoi 铜 金 矿 产 品 出 口 很 大 程 度 依 赖 中 国 的 基 础设 施 , 且 蒙 古 周 边 只 有 中 国 是 大 的 矿 产 品 进 口 国 。同 时 , 考 虑 到 铝 的 开 发 项 目 , 中 铝 将 募 集 100 亿 元 资金 的 方 案 有 效 期 延 长 12 个 月 至 2011 年 8 月 23 日 。这 些 资 金 将 主 要 用 于 三 个 项 目 : 重 庆 80 万 吨 氧 化 铝 项目 、 山 西 省 80 万 吨 氧 化 铝 项 目 以 及 河 南 省 70 万 吨 铁 矿石 处 理 厂 项 目 。 这 些 项 目 将 使 中 铝 的 产 量 提 高 19%。中 铝 还 与 江 西 稀 有 稀 土 金 属 钨 业 有 限 公 司 合 作 成 立 了合 资 公 司 , 年 产 4 万 吨 镍 和 钴 。 中 铝 控 制 了 该 合 资 公司 51% 的 股 份 , 计 划 将 年 产 量 扩 大 至 10 万 吨 。

www.asiaminer.comDevelopment pathat XietongmenCONTINENTAL Mineralsplans to start constructionon the Xietongmen Copper-Gold Project in the Tibet Auto -nomous Region by the end of 2010as it works towards productioncommencing at the start of 2012.The company has been focusedon reports and permitting andhopes to have this process finalizedshortly. It has also been continuingits exploration program and undertakingthe project design in conjunctionwith mine planning companies.The Xietongmen property comprisestwo exploration licensestotalling about 122sqkm.Exploration by Continental since2005 has resulted in the discoveryof the Xietongmen and New -tongmen copper-gold deposits, aswell as several other prospectivetargets.A feasibility study forXietongmen deposit was completedin mid 2007 based on 219.8 milliontonnes of measured and indicatedresources grading 0.43%copper, 0.61 grams/tonne gold and3.87 grams/tonne silver, containing2 billion pounds of copper and 4.3million ounces of gold, including182 million tonnes of proven andprobable mineral reserves.A 40,000 tonnes/day conventionalmill and open pit miningoperation is proposed, with anannual average of 116 millionpounds of copper, 190,000 ouncesof gold and 1.7 million ounces ofsilver over a 14 year mine life.Newtongmen, 2.5km north-westof Xietongmen, was discovered in2006 with first-phase of definitiondrilling carried out in 2007.An initial estimate shows indicatedresources of 388.9 milliontonnes grading 0.32% copper, 0.18grams/tonne gold and 0.87 grams/ -tonne silver, containing 2.8 billionpounds of copper, 2.3 millionounces of gold and 10.8 millionounces of silver; and inferred mineralresources of 264.8 milliontonnes grading 0.29% copper, 0.07grams/tonne gold and 0.12grams/tonne silver, containing 1.7billion pounds of copper, 0.6 millionounces of gold and 1.0 millionounces of silver.The main field programs thisyear have been directed towardgathering the necessary data tocompile the required Chinese‘basic engineering report’, completedata gathering for the ProjectApplication Report, and planningfor start of early construction ofXietongmen once permits havebeen received.Exploration has also been carriedout to ensure mining leasesremain in good standing.Continental's in-house engineeringteam has also been workingclosely with BGRIMM andWardrop to finalize key basic engineeringdeliverables, includingprocess flow sheets and plant layouts,as well as preparing equipmentspecifications, process, pipingand instrumentation diagramsand mine infrastructure layouts.The engineering and constructionarm of URS was awarded thecontract to complete the detailedmine design and production scheduling.Golder was engaged to providethe geotechnical program neededto finalize the pit slope assessment.n Translation page 26ChinaThe location of Continental’s Xietongmen property in the TibetAutonomous Region.The ASIA Miner - September-October, 2010 - 25

ChinaNew gold explorationprogram at CSHANEW exploration program at Jinshan GoldMines’ CSH Gold Project in InnerMongolia aims to test mineralization atdepth in the NE and SW deposits, and to test a possiblenew zone called NW.The company has engaged a third party, SinorexDrilling (Beijing) Co, as its drill contractor for theprogram which comprises 4500 metres of diamonddrilling and 2000 cubic metres of surface trenching.Based on all previous drilling, the gold mineralizationat the operating CSH mine is fully open atdepth and in places the gold grade tends to increasedown dip. Significant potential exists for down-dipextensions to the mineralization.The other target is located about 300 metresnorth of the SW zone and has been designated asthe NW Zone.This zone is outside the current mining permit,but still within the company’s existing explorationpermit.No drilling has been done in the NW Zone, butsome trenching was done by the company’sChinese joint venture partner in 2000.The company hopes that the current work program,including surface trenching and diamonddrilling, will confirm the existence and extent of theNW zone gold mineralization.Jinshan’s CEO Dr Xin Song says, “With this newround of drilling, we are looking to further expandthe resources at the CSH mine both down depth andin a new zone.长 山 壕 金 矿 项 目 的 新 勘 探 计 划“There is significant potential for growth on theCSH project.”The new exploration program started in earlyJune and is scheduled for completion by the end ofOctober.Initial results from the program are expected bythe end of the year.Jinshan’s principal property is the CSH GoldMine. It began producing gold at CSH in July 2007.Meanwhile Jinshan’s indirectly-owned subsidiaryGansu Pacific Mining Co and its joint venturepartner Nuclear Industry Northwest Economicand Technology Co have agreed to sell theDadiangou Gold Project.The parties are selling the project to GansuZhongjin Gold Mining Co, a subsidiary ofZhongjin Gold Corporation and a related party ofChina National Gold Group. The purchase price isRMB 88 million (Can$13.1 million), of whichJinshan will be entitled to 53%.Dadiangou is an advanced exploration project ona licensed area of 14.91sqkm in Gansu Province.The joint venture had identified a mineral resourceconsisting of 20 million tonnes of indicatedresources @ 0.87 grams/tonne for 544,910 ouncesof contained gold and 16.6 million tonnes ofinferred resources @ 0.96 grams/tonne for 497,950ounces of contained gold.Following evaluation, the Dadiangou project fellbelow Jinshan’s targeted tonnes contained thresholdand did not fit the company’s strategy.以 借 助 这 次 新 的 勘 探 活 动 , 进 一 步 在 更 深 的 部位 及 新 区 域 上 扩 大 长 山 壕 矿 区 的 资 源 量 。 长 山金 山 矿 业 对 其 位 于 内 蒙 古 的 长 山 壕 金 矿 项 目 实 壕 项 目 有 巨 大 的 增 长 潜 力 。”施 的 勘 探 作 业 旨 在 测 试 东 北 和 西 南 矿 床 的 深 部 新 的 勘 探 活 动 始 于 7 月 初 , 计 划 在 10 月 底 完 成 。成 矿 以 及 测 试 可 能 存 在 的 被 称 为 西 北 矿 床 的 新 初 次 的 勘 探 结 果 预 期 在 今 年 年 底 得 到 。区 域 。金 山 的 主 要 资 源 是 在 长 山 壕 金 矿 。 金 山 从 2007北 京 中 资 环 钻 探 有 限 公 司 是 金 山 长 山 壕 项 目 的 年 7 月 开 始 在 长 山 壕 开 采 黄 金 。第 三 方 钻 探 承 包 商 , 该 项 目 包 括 4500 米 金 刚 石 同 时 , 金 山 的 非 直 资 附 属 公 司 甘 肃 太 平 矿 业 有钻 探 及 2000 立 方 米 地 表 槽 探 。限 公 司 及 其 合 资 合 作 伙 伴 核 工 业 西 北 经 济 技 术基 于 之 前 所 有 的 钻 探 作 业 , 正 在 运 营 的 长 山 壕 公 司 已 就 出 售 大 店 沟 金 矿 项 目 达 成 共 识 。金 矿 的 金 成 矿 带 沿 垂 向 延 伸 , 另 外 , 有 几 处 黄 双 方 将 把 该 项 目 出 售 给 甘 肃 中 金 黄 金 矿 业 有 限金 品 位 沿 倾 斜 向 下 增 加 。 成 矿 带 沿 下 倾 方 向 的 公 司 , 它 是 上 海 上 市 的 中 金 集 团 的 附 属 公 司 ,延 伸 带 的 潜 力 巨 大 。与 中 国 黄 金 集 团 也 有 联 系 。 出 售 价 格 为 8800 万另 外 一 个 靶 区 定 位 在 西 南 区 域 北 部 约 300 米 处 , 元 人 民 币 (1310 万 加 元 ), 金 山 将 获 得 该 售 价被 命 名 为 西 北 区 域 。 该 区 域 位 于 当 前 采 矿 许 可 的 53%。范 围 之 外 , 但 仍 在 公 司 现 有 的 勘 探 许 可 范 围 之 大 店 沟 金 矿 床 位 于 中 国 甘 肃 省 , 面 积 为 14.91 平内 。方 公 里 。 合 资 双 方 已 验 明 该 项 目 含 有 的 矿 业 资目 前 勘 探 作 业 还 未 在 西 北 区 域 实 施 , 但 是 公 司 产 总 资 源 包 括 , 推 断 资 源 量 2000 万 吨 , 金 品 位的 中 国 合 资 伙 伴 已 经 在 2000 年 对 其 实 施 了 一 些 为 0.87 克 / 吨 , 黄 金 资 源 量 为 544,910 盎 司 ; 控 制槽 探 作 业 。 公 司 希 望 当 前 的 工 作 , 包 括 地 表 槽 资 源 量 1660 万 吨 , 金 品 位 为 0.96 克 / 吨 , 黄 金 资探 和 金 刚 石 钻 探 , 将 确 认 西 北 区 域 金 成 矿 带 的 源 量 497,950 盎 司 。 根 据 2008 年 对 勘 探 方 案 的 评赋 存 状 态 和 程 度 。估 , 大 店 沟 项 目 已 降 至 公 司 的 期 望 值 以 下 , 不金 山 矿 业 的 首 席 执 行 官 宋 鑫 表 示 ,“ 我 们 希 望 可 再 适 合 公 司 的 战 略 。26 - The ASIA Miner - September-October, 2010www.asiaminer.com谢 通 门 项 目 的 发 展 轨 迹大 陆 矿 业 公 司 计 划 在 2010 年 年 底前 对 其 位 于 西 藏 自 治 区 的 谢 通 门铜 金 矿 项 目 展 开 矿 山 建 设 工 作 ,因 为 公 司 正 在 争 取 使 该 项 目 在2012 年 初 投 产 。大 陆 矿 业 一 直 致 力 于 报 告 编 制 和许 可 证 申 请 工 作 , 希 望 可 以 尽 快完 成 这 一 工 作 。 同 时 , 公 司 一 直继 续 进 行 勘 探 活 动 , 并 且 还 与 矿山 设 计 公 司 协 力 进 行 矿 山 设 计 规划 工 作 。谢 通 门 项 目 包 括 两 个 勘 探 执 照 ,总 面 积 约 为 122 平 方 公 里 。 自 2005年 以 来 由 大 陆 矿 业 实 施 的 勘 探 作业 发 现 了 谢 通 门 和 新 通 门 两 处 铜金 矿 床 , 以 及 其 他 一 些 潜 在 的 靶区 。谢 通 门 矿 床 的 可 行 性 研 究 在 2007年 年 中 完 成 , 可 确 定 和 推 测 的 资源 量 为 2.198 亿 吨 , 铜 品 位 为 0.34%, 金 品 位 为 0.61 克 / 吨 , 银 品 位 为3.87 克 / 吨 , 铜 资 源 量 为 20 亿 磅 ,黄 金 资 源 量 为 430 万 盎 司 , 包 括1.82 亿 吨 探 明 和 估 计 矿 产 储 备 。公 司 提 出 采 用 日 处 理 矿 石 4 万 吨 的传 统 选 厂 和 露 天 矿 运 营 , 年 平 均 产铜 1.16 亿 磅 , 产 金 19 万 盎 司 , 产 银170 万 盎 司 , 预 计 矿 山 寿 命 14 年 。新 通 门 , 在 谢 通 门 西 北 2.5 公 里 处, 在 2006 年 被 发 现 , 资 源 界 定 钻探 的 第 一 个 阶 段 在 2007 年 完 成 。最 初 的 评 估 表 明 , 控 制 的 资 源 量为 3.889 亿 吨 , 铜 品 位 为 0.32%, 金品 位 为 0.18 克 / 吨 , 银 品 位 为 0.87 克/ 吨 , 铜 资 源 量 为 28 亿 磅 , 黄 金 资源 量 为 230 万 盎 司 , 银 资 源 量 为1080 万 盎 司 ; 推 断 的 矿 产 资 源 量为 2.648 亿 吨 , 铜 品 位 为 0.29%, 金品 位 为 0.07 克 / 吨 , 银 品 位 为 0.12 克/ 吨 , 铜 资 源 量 为 17 亿 磅 , 黄 金 资源 量 为 60 万 盎 司 , 银 资 源 量 为 100万 盎 司 。今 年 主 要 的 野 外 实 地 活 动 一 直 致力 于 收 集 必 要 的 数 据 用 以 编 制 所需 的 中 国 基 础 工 程 报 告 、 为 项 目应 用 报 告 完 成 数 据 收 集 、 以 及 为许 可 获 得 后 立 即 启 动 的 谢 通 门 早期 建 设 工 作 制 定 计 划 。 勘 探 工 作一 直 在 进 行 中 , 用 以 确 保 采 矿 用地 保 持 良 好 的 状 况 。大 陆 矿 业 的 内 部 工 程 组 也 在 一 直与 北 京 矿 冶 研 究 总 院 和 Wardrop 公司 密 切 合 作 , 完 成 重 点 基 础 工 程交 付 , 包 括 流 程 表 和 工 厂 布 局 ,以 及 编 制 设 备 规 格 、 工 艺 、 管 道和 仪 表 图 以 及 矿 井 基 础 设 施 布 局。 美 国 优 斯 集 团 的 工 程 和 建 筑 分部 获 得 了 完 成 矿 山 详 细 设 计 和 生产 调 度 的 合 同 。Golder 公 司 提 供 完成 基 坑 边 坡 评 估 所 需 的 地 质 工 程作 业 。

www.asiaminer.comMinmetalslooksoverseasfor itsresourcesCHINA Minmetals Group plans moreoverseas mergers and acquisitions(M&A) in ferrous metals in the nearfuture to bolster its raw material supplies.China’s largest metals trader is looking foroverseas mining assets in iron ore, chromium,manganese and coal, mainly in Australia,Canada, the Middle East and South Africa.Minmetals’ chairman Zhou Zhongshu saysthe company will look at overseas M&As tobecome a globally competitive mining group.He says the company’s nonferrous metalbusiness, Australian unit Minerals & MetalsGroup (MMG), will serve as an internationalinvestment platform.Minmetals, through MMG, has successfuloverseas acquisition experience. It paid $1.4billion last year for OZ Minerals, includingthe Rosebery zinc mines in Australia.In spite of the revenue decline due to lowercommodity prices, the company's assetsgrew 136% as it successfully acquired severaldomestic and overseas mining assets.Minmetals is also consolidating its domesticnonferrous metals business and earlier thisyear set up a joint venture with its controlledcompany Hunan Nonferrous Metals HoldingGroup (HNG).The company has injected most of itsChinese nonferrous mining assets into thenew joint venture and is using it as a platformto acquire more domestic mining assets. Thejoint venture is based in central China'sHunan Province.Through the JV and a strategic cooperationagreement with the Chezhou city government,Minmetals plans to spend at least 4.5billion yuan (US$659 million) over fiveyears to explore for rare earth, tungsten, tinand bismuth in Hunan.Chenzhou, which is in southern Hunan andbordering Guangdong, has the most reservesof tungsten, bismuth, tin and zinc amongChinese cities, according to state-run XinhuaNews Agency.Zhou Zhongshu says the acquisition focuscomes because the government is encouragingM&A in the mining sector to build upscale and competitiveness.“We aim to be the world's largest rare earthsupplier and the leading producer of tungsten,antimony, lead and zinc.”Minmetals gained control of HNG afterlifting its stake to 51% in the Hong Kong-listedState-run miner last December. LastOctober, it acquired another two State-ownedenterprises, Changsha Research Institute ofMining & Metallurgy (CRIMM) andLuzhong Metallurgy & Mining Group.五 矿 集 团 寻 找 海 外 资 源中 国 五 矿 集 团 公 司 计 划 近 期 从 海 外 收 购 更 多 的 黑色 金 属 来 提 高 其 原 材 料 供 应 。这 个 中 国 最 大 的 金 属 贸 易 商 正 在 海 外 , 主 要 是 在澳 大 利 亚 、 加 拿 大 、 中 东 和 南 非 , 寻 找 铁 矿 石 、铬 、 锰 和 煤 矿 资 产 。五 矿 集 团 董 事 长 周 中 枢 说 , 公 司 将 寻 找 海 外 并 购机 会 , 成 为 一 个 有 全 球 竞 争 力 的 矿 业 集 团 。 他 称, 公 司 的 有 色 金 属 业 务 , 位 于 澳 大 利 亚 的 子 公 司金 属 矿 产 集 团 (MMG), 将 作 为 一 个 国 际 投 资平 台 。 五 矿 集 团 公 司 通 过 金 属 矿 产 集 团 这 个 平 台, 有 着 成 功 的 海 外 并 购 经 验 。 五 矿 去 年 向 澳 洲 矿业 公 司 支 付 了 14 亿 澳 元 , 澳 洲 矿 业 公 司 资 产 包 括位 于 澳 大 利 亚 的 Rosebery 锌 矿 。 尽 管 收 入 由 于 商品 价 格 较 低 而 下 滑 , 但 是 公 司 因 为 成 功 地 收 购 了一 些 国 内 外 的 矿 业 资 产 , 使 总 资 产 增 加 了 136%。同 时 , 五 矿 也 在 巩 固 其 国 内 的 有 色 金 属 业 务 , 今年 早 些 时 候 与 其 控 股 公 司 湖 南 有 色 金 属 控 股 集 团China有 限 公 司 建 立 了 合 资 公 司 。五 矿 将 其 中 国 有 色 矿 业 资 产 的 大 部 分 注 入 了 该 合资 公 司 , 使 其 作 为 一 个 并 购 更 多 国 内 矿 业 资 产 的平 台 。 该 合 资 公 司 位 于 中 国 中 部 的 湖 南 省 。 通 过该 合 资 公 司 及 与 郴 州 市 政 府 达 成 的 战 略 合 作 协 议, 五 矿 计 划 在 五 年 内 最 少 花 费 约 45 亿 元 人 民 币 (6.59 亿 美 元 ) 在 湖 南 勘 探 稀 土 、 钨 、 锡 和 铋 。郴 州 , 位 于 湖 南 省 南 部 , 与 广 东 省 接 壤 , 根 据 国家 运 营 的 新 华 社 报 道 , 在 中 国 是 钨 、 铋 、 锡 和 锌储 备 最 多 的 城 市 。周 中 枢 说 , 我 们 集 中 进 行 并 购 活 动 是 由 于 政 府 目前 正 在 鼓 励 采 矿 业 的 并 购 活 动 , 以 建 立 规 模 性 和竞 争 性 。“ 我 们 的 目 标 是 成 为 世 界 上 最 大 的 稀 土供 应 商 和 钨 , 锑 、 铅 及 锌 的 主 要 生 产 商 。”五 矿 在 去 年 12 月 份 在 将 湖 南 有 色 金 属 集 团 的 股 权提 高 到 51% 之 后 , 得 到 了 对 这 个 国 有 的 、 在 香 港上 市 的 公 司 的 控 股 权 。 去 年 10 月 , 五 矿 并 购 了 另外 两 家 国 有 企 业 , 长 沙 矿 冶 研 究 院 和 鲁 中 冶 金 矿业 集 团 。The ASIA Miner - September-October, 2010 - 27

28 - The ASIA Miner - September-October, 2010

www.asiaminer.comChina‘The World and China’ is China Mining themeINline with the theme of ‘The World andChina in Mining Consolidation: Co-operation,Responsibility and Dev el opment’, the12th annual China Mining Congress and Expoin November will give participants the opportunityto explore mutually beneficial possibilitiesfor collaboration.Hosted by China Ministry of Land &Resources and Tianjin Municipal Gov ernment,the 2010 congress and expo will be held atTianjin Meijiang Convention and ExhibitionCentre from November 16 to 18.Given China’s ongoing economic expansion,the importance of entering strategic partnershipswith foreign counterparts remains of theessence and effective partnerships can benefitboth parties.China Mining Congress and Expo will featureattention-grabbing disp l ays, enlighteningconference/breakout sessions and featuredevents that will pay tribute to the outstandingachievements of a number of industry leadersas well as present networking opportunities. Itwill encourage original, forward-thinking partnershipsbet w een international mining interestsand those of China.With a diverse line-up of special sessionscovering topics such as the current global miningcapital market, developmental trends, thefounding of the Chinese mining capital market,venture capital mechanism of exploration andinnovative approaches for mining investment,attendees will gain insight to the opportunitiesavailable within China’s mining sector.The conference will provide an opportunityto hear from Chinese government officialsregarding the state of the mining sector inChina and how the government is working tosupport and encourage best practices in exploration,development and FDI.As with previous exhibitions, China MiningCongress and Expo 2010 will include exhibitorbooths and delegations from the primaryextractive industry countries, mining andexplor ation companies, investment and fin -ancing institutions, evaluation and consultingcompanies, technical service providers andequipment suppliers.Since it began in 2004, China Mining hasevolved into one of the world’s most influentialmineral exploration/ extraction trade events andplays a critical role in bringing together top policymakers and leading industry figures. In 2009it attracted more than 3500 delegates from 55countries and featured more than 420 exhibitors.n For more information, visitwww.china-mining.org中 国 矿 业 大 会 的 主 题 : 世 界 与 中 国与 ‘ 矿 业 复 兴 中 的 世 界 与 中 国 : 合 作 、 责 任 、 发 展 ’的 主 题 相 一 致 , 在 11 月 期 间 举 行 的 第 十 二 届 中 国 国际 矿 业 大 会 将 给 参 会 者 提 供 共 同 谋 求 互 惠 合 作 的 机会 。2010 年 的 矿 业 大 会 由 中 国 国 土 资 源 部 和 天 津 市 政 府举 办 , 将 于 2010 年 11 月 16 日 至 18 日 在 天 津 梅 江 会展 中 心 隆 重 举 行 。鉴 于 中 国 经 济 持 续 扩 张 , 与 海 外 同 行 结 成 战 略 合 作伙 伴 的 重 要 性 仍 然 是 不 可 否 认 的 , 有 效 合 作 可 以 使双 方 互 惠 发 展 。本 届 中 国 矿 业 大 会 将 包 括 引 人 注 目 的 行 业 展 览 , 启迪 性 会 议 / 分 组 会 议 以 及 表 彰 许 多 行 业 领 袖 卓 越 成就 的 主 题 活 动 , 并 提 供 了 建 立 联 系 的 网 络 平 台 。大 会 将 鼓 励 国 际 采 矿 利 益 团 体 与 中 国 采 矿 利 益 他 团体 之 间 建 立 首 创 的 、 前 瞻 性 思 维 的 合 资 伙 伴 关 系 。多 样 化 的 专 题 会 议 涵 盖 的 话 题 包 括 : 当 今 世 界 矿 业的 资 本 市 场 、 矿 业 行 业 发 展 趋 势 、 中 国 矿 业 资 本 市场 的 建 立 、 勘 探 的 风 险 投 资 机 制 以 及 矿 业 投 资 的 创新 方 法 , 参 会 者 将 深 入 了 解 中 国 采 矿 业 的 机 遇 。中 国 高 级 政 府 官 员 将 在 大 会 上 就 中 国 的 采 矿 业 现 状及 政 府 如 何 支 持 与 鼓 励 勘 探 、 开 发 和 海 外 直 接 投 资问 题 进 行 演 讲 。与 往 届 大 会 相 同 ,2010 年 中 国 矿 业 大 会 的 行 业 展 览有 来 自 世 界 主 要 矿 业 国 的 国 家 展 团 以 及 各 国 的 矿 业公 司 、 投 融 资 机 构 、 评 估 咨 询 公 司 、 技 术 服 务 公 司、 设 备 公 司 等 参 展 。自 从 2004 年 开 始 , 中 国 矿 业 大 会 成 为 世 界 上 最 具 影响 力 的 矿 产 勘 探 / 开 采 贸 易 活 动 之 一 , 成 为 将 高 层政 策 制 定 者 与 行 业 佼 佼 者 聚 集 在 一 起 的 关 键 角 色 。2009 矿 业 大 会 期 间 , 超 过 55 个 国 家 的 3500 余 名 参会 代 表 参 与 了 大 会 , 展 位 数 超 过 420 个 。详 情 请 登 陆 www.china-mining.orgThe ASIA Miner - September-October, 2010 - 29

Special feature: Shovels & excavatorswww.asiaminer.comShovel OEMs make bigdesign improvementsBy Steve Fiscor,Editor-in-Chief,Engineering and Mining JournalTRUCK-SHOVEL mining is one of the most productivemethods of moving dirt. As haul truck capacities grew toaccommodate the traditional 3 and 4-pass loading scenarioswith larger shovels in the pit, mine operators had to contendwith a new set of parameters that included AC technology in a traditionallyDC world, wider haul roads, new loading configurationsand different maintenance strategies.Maximizing shovel productivity without being over-trucked -what had been a relatively simple mining exercise - was becomingmuch more complex.Ask miners what they want and they will give several answers.A production manager will usually say more power for bettercycle times. Some would argue they go hand-in-hand.Maintenance technicians see the world a little differently.Planned downtime appeals to them along with remote diagnostics.Shovel operators, the miners that spend eight hours or morerunning the machines, share those ideas and they also have theirconsiderations as well.The two electric shovel OEMs, P&H Mining Equipment andBucyrus International, have been listening and are ready to up theante. P&H recently completed testing on a new shovel in the oilsands. Bucyrus recently launched a second model of one of itsmore popular shovels. Both are incorporating AC technologyalong with many new features that technology now affords.P&H tests new AC shovelDURING 2005, P&H Mining Equipmentassembled a cross-functional team toinvestigate building a shovel with ACpowereddrives, a major departure for a companythat only a year earlier had launched the DCpoweredCenturion system for its shovels.P&H had been watching developments withAC-powered drives for a long time. TheMilwaukee, US-based shovel maker gave itsome serious consideration in the early 1990s,but did not feel the technology had matured to apoint where it was really ready for a miningshovel application.Fast forward 15 years and P&H is now convincedthat AC technology has advanced to thepoint where it would be as reliable as its DCmachines, potentially even more reliable.With electric-drive haul trucks and uses inother areas, AC technology has become moremainstream for open pit mining operations andthe mines themselves were pressing P&H to takeanother look at it.P&H knew it needed two ingredients to makethe launch of its first AC-powered shovel successful:the right technology partner in terms ofdrives and a tolerant mine to serve as a provingground. They selected ABB as their drives supplierand Suncor, a Canadian oil sands miner,agreed to purchase their first machine.P&H’s director-product management CurtHanson says, “We had made a conscious decisionearlier in the decade to standardize on ABBDC drives, which led to the development of theCenturion platform. When we started to look atAC power for the shovels, ABB’s drive technologywas well-advanced compared to other30 - The ASIA Miner - September-October, 2010The new Bucyrus 495HR Super 2.options at the time and it was a complementaryfit for our Centurion system.”The company also briefly considered ABB asa potential motor supplier, but elected to stickwith P&H motors. Custom designed motors area core competency for P&H, Curt Hansonexplains, “and we were able to design a motorthat fits the same footprint as our DC motors.”The new system would be built with P&H ACmotors and ABB drives. The engineers at P&Hwent into a 2-year development cycle.Meanwhile, P&H started the selection processfor a start-up partner. “We have an internalprocess that focuses on flawless start-up on newproducts,” he says.“A big component of the success of that selectionprocess is choosing the right partner. Theideal partner is a mine that’s technically savvy,yet has a high tolerance for normal start-updebugging. They also have to be willing to sharea little risk.”Suncor agreed to be that partner. Oil sandsmining conditions are tough, and the companyalready operated six P&H shovels and they hadexperience with AC technology.During the start-up phase, P&H built someslack into the back-end of the process to give itsengineers time to shake out the bugs. The firstAC shovel began operating at Suncor in early2007. “To roll out a product successfully, wewould have to have to allow time for engineersto conduct final testing in the bank for a period oftime before we turned it over to the mine,” CurtHanson says. “This was a deliberate plan.”Prior to the AC 4100BOSS shovel’s arrival inthe oil sands, P&H performed extensive componenttesting on the motors and drives inMilwaukee, looking at both load and no-loadconditions. They also performed dynamic controltesting with the Centurion system and prewiredit prior to shipment for fit-up testing.“All of the alpha test ‘gotchas’ were workedout and now we just wanted to make sure itworked in the field from a beta standpoint,” hesays. The in-house, pre-testing added to the successof the start up.In January 2007 the first 4100BOSS AC beganoperating and then P&H officially turned it overto Suncor in April. Since that time, Suncor hasplaced into operation four more AC-poweredshovels. The company now operates a fleet of 11P&H shovels, five of which are AC-powered.P&H had a contractual agreement with Suncorthat, if the AC machines were unacceptable, itwould retrofit the AC machines with the DCpackages. P&H’s shovel product manager SteveDroste says, “We have conducted an investigationcomparing the AC machines with DCmachines at Suncor. That report was quite favorable.Essentially we are seeing higher levels ofavailability and significant productivity gains.”Suncor confirmed the availability is 2.5%higher than the DC shovels. “The AC shovel isfaster and a little stronger than the DC,” saysSuncor’s reliability engineer Pedro Fimbres.“The operators like it. They see a differencebetween AC and DC, especially when switchingfrom hoist to propel.“Based on a report provided by P&H, we areseeing a 3% cycle time improvement with then Continued next page

www.asiaminer.comSpecial feature: Shovels & excavatorsDuring testing of the P&H 4100 Boss AC, Canadian oil sands miner Suncor has seen a 2.5% improvement in availability.AC machine ‘is the way of the future’n From previous pageAC shovel. During the last year, the AC machinehas had fewer electrical problems than the DCmachine. Although we still have some electricalissues we are working on.”“The shovel is performing well,” PedroFimbres says. “We are working with P&H andABB to address the bugs that occurred duringstart-up and the first year of operation. Overall,we have a list of the problems that have alreadybeen solved in a timely manner.“From an electrical point of view, gains havebeen made by not having brushes on the ACmotors. We are maintaining it with the same frequencyas the DC machines. On the mechanicalside, maintenance considerations are the same.”Suncor’s MinePro account manager OwenTremblett thinks that the AC machine is the wayof the future. “The machine operates faster andthere is less planned maintenance.“With the AC motors, there is no need forintrusive maintenance to check the brushes. Onan average PM, the mine is easily eliminating 4man-hours per 12-hour shift. They could probablyincrease the maintenance interval from 750hours to 1000 hours.”The AC shovel powers through the bank muchfaster. Using AC motors P&H was able toincrease the peak horsepower and reach higherspeeds than DC machines, explains P&H’s groupleader – Drives & Controls Engineering MarkEmerson. “The AC machines have lower inertiarequirements than the DC shovels, which meansimproved system performance. The inertiarequired to slow the motors has decreased. Withthe dynamic nature of a shovel, there are someproductivity gains in that area.” With theincreased peak horsepower and the improvedefficiency of the shovel system, Mark Emersonexplains, the shovel spends less time in the bank.P&H’s factory support representative BrentTaylor says, “Even though the shovel is achievingfaster cycle times, there has been no appreciableeffect on reliability or the structure or themachine.”“Availability has been consistently high,which is something we were watching closely,”Curt Hanson says. “We did a good job and keepingsmall problems small during the start upphase and keeping this shovel productive.”“On every metric that we have examined,everything has been more favorable with ACmachines, in terms of availability, productivity,tonnes per kilowatt consumed, etc,” Steve Drostesays. “Every dimension we have measured metor exceeded expectations.”With the success of the AC on the shovels,P&H is now investigating AC technology fordraglines. “High torque at low or near-zero speedis the Holy Grail for AC drive systems,” MarkEmerson says. “We are definitely able to do thaton a shovel system. The intricacies of applyingan AC drive system to a dragline will make itinteresting, especially with the long boom structure.The trick will be getting the ropes to worksmoothly with the drive system with minimaltorque pulsations so that we can maintain asmooth operation without sacrificing the structure.”Not only did P&H have to supply a productthat was reliable, it will have to provide the supportinfrastructure as well. Its core expertise formany years had been DC machines. “We realizedyears ahead of time that we had to develop ACexpertise too,” Curt Hanson says. “So, webrought in specialists, to help.” Also having theright technology partner, such as ABB, allowedP&H to tap its skill sets and training.This year, P&H plans to roll this AC technologyout on its 4100XPC shovels. The first 4100XPC AC will go to the Fording River mine, amajor Canadian coking coal operation, locatednear Elkford, British Columbia.To make this transition as successful as the oilsands debut, P&H will have to enhance its servicestructure globally. The people involved in theSuncor project, Curt Hanson believes, will be theseeds for developing the expertise going forward.The ASIA Miner - September-October, 2010 - 31

Special feature: Shovels & excavatorswww.asiaminer.comBucyrus debuts new shovelBUCYRUS has produced what it believesto be the world’s most advanced electricrope shovel, the 495HR Super 2.Based on the efficiency of AC IGBT electricsand enhanced propel power, along with otherinnovations, such as the HydraCrowd and theLatchFree dipper system, the US-based shovelOEM believes the electric shovel’s safety, reliability,and productivity will bypass that of itspredecessors. In addition to a modified operator’sstation, the Super 2 sports a new bold look.AC electrics have become a staple of the company’selectric shovel range. Incorporating thelatest Bucyrus AC-IGBT drive, miners can expectthe same reliability they have come to expectfrom the system.The system provides immediate fault identification,condition monitoring and troubleshootingtools. These integrated systems provide the platformfor AccessDirect, Bucyrus’s remote diagnosticspackage that allows shovel monitoringfrom any remote location, which decreases thetime to assess, diagnose and repair a shovel.An enhanced propel system garners a 12%increase in maximum propel torque, explainsBucyrus’ product marketing manager AnthonyDonovan. “This system was designed to combatpropel challenges encountered in the mine environment,most notably in the soft underfoot conditions.It provides the necessary power boost tomanoeuvre the machine in tough digging situations,The LatchFree dipper system replaces the latch assembly with a steel link.avoiding downtime associated with research, ‘voice of customer’ field surveys, part-reflectance, and have been carefully chosen toground-lodged shovels.”nership with a leading ergonomics expert, and reduce glare in the cab. High-quality windowThe increase in maximum propel torque was collaborative workshops with customers from blinds, offering both electric and manual operation,provide optimum shading from sunlight andachieved through the design of a new, larger planetarygear case. When coupled with a 700-hp which the cab design emerged.external illumination.around the globe, provided the foundation from(522 kW) AC variable speed propel motor, it suppliesincreased power to move the machine. into the aspects most desired by its customers, mate control and strategically positioned temp er -“Bucyrus design engineers, armed with insight A redesigned HVAC system uses automatic cli-Anthony Donovan says, “The propel motor is set-out to develop a cab that delivers more comfort,added safety, greater reliability and enhanced temperature in the cab. “The design provides cor-ature probe that adjusts to maintain a comfortablemounted to an angled motor base to increaseclearance under the motor, further improving the productivity. What they created was a work environmentsure to be the envy of corporate execu-and was tested to ensure desired climate control.”rect and optimal air movement throughout the cabreliability of the components by moving themaway from the pit floor.”tives and mining machinery operators alike.” Meticulous efforts were taken to minimize cabHe says while the new planetary gear case is Knowing that a comfortable operator is productive,an ergonomic, fully adjustable and isolat-comfort of the cabin, he explains. “Structurally,vibration and noise, further enhancing the overallhighlighted by its ability to provide more powerto move and re-position the shovel, it may also ed operator’s seat serves as the focal-point of the the cab is bolstered by an extended machineafford miners greater gear case life. All gear case new cab design. The leather-bound operator’s house underneath for improved stability. In addition,the cab is mounted on shock-absorbing rub-components were analyzed using finite element seat includes infinitely variable armrests and aanalysis to confirm longevity.fully pneumatic suspension system with an integratedber isolators, reducing the vibration imposed on“The new planetary gear case is designed toprovide 50% more life, exceeding the life offeredby its predecessor.” The upgraded propel powersystem can also be retrofitted to existing Bucyrus495HR/HF electric shovels.The LatchFree dipper replaces the latch assemblywith a steel link, removing the critical latchcomponents from the harsh conditions of thelower dipper door. It provides more predictablemaintenance schedules.The HydraCrowd system provides instantaneous,highly responsive control with smoothvibration-free operation. “It negates the heavyinertial loading of rack and pinion style crowdsystems by locating the hydraulic power pack onthe machinery house deck,” Anthony Donovansays. “Major maintenance for the cylinder isscheduled to occur every 24 months, eliminatingthe need to regularly change crowd and retractropes, and eliminating annual maintenance forrack and pinion style crowd machinery.”Highlighting the shovel’s design improvementsis a newly designed operator’s station andcab. A two-year, $1 million plus research andair compressor.“The armrests can float with the operator’sarms during operation, facilitating unimpededarmrest movement toward the body, away fromthe body, and into resting positions on the operator’slegs. This unconstrained degree of armrestadjustment tailors to operator preference, therebyreducing strain, fatigue and general discomfortexperienced throughout the work shift.”Dual display screens are strategically positionedwithin arms’ reach to prevent obstructionof the operator’s line of sight during machineoperation. New Hall Effect joysticks, featuringcustom designed ergonomic handles and ‘fingercontrol’ spring tension, allow for effortless operationand improved control response, according toAnthony Donovan. “The new seat and controlscombination has been field-tested to ensure functionalityand ruggedness.”Enhanced software offers intuitive icons andlogical navigation for reduced cognitive fatigue.Likewise, the programming is visually aestheticand provides appropriate illumination for bothday and night operation. All colours and surfacesthe cab, and most importantly the shovel operator,during machine operation.“Rattle-free, NASCAR cabinet and closet doorfasteners ensure a quiet work environment, anddrawers with a patented dual latching systemwon’t open unexpectedly. “All cab walls are adequatelyinsulated for internal and external sounddampening.“The operator’s station was repositioned tooffer unobstructed vertical line-of-sight extendingfrom the crawler tracks to the point sheave.Right-hand and blind-side visibility wasimproved from the seat repositioning. Overheadvideo monitors with closed circuit cameras havebeen installed on the machine allowing forgreater situational awareness during digging, haultruck spotting, and propelling.“The cab includes an adjacent positioned trainerseat. An additional workstation, directly behindthe operator’s station, was also included in thecab design. The workstation provides a desk andseat for observers, offering optimum visibility ofboth digging environment and operator’s station.Dual access/egress doors are on the right and reardevelopment project, including industrial in the cab have been evaluated for light sides of the cab.”32 - The ASIA Miner - September-October, 2010

The ASIA Miner - September-October, 2010 - 33

Special feature: Pumping & pump equipmentwww.asiaminer.comPump systems performanceBy Mike Pemberton andJoananne BachmannPUMPS are the second most widely usedmachine in the world after motors withtheir purchase and operation entailing significantexpenses for most facilities.However, it is common practice for pumpingsystem design and procurement to be based primarilyupon the initial purchase cost of theequipment. Often such decisions, particularlywith new systems, are under the control of theengineering contractor who has few incentives inthe world of fixed price contracts to embraceenergy efficient pump system designs.Depending on the application and operatingenvironment, the initial pump purchase is smallin relation to overall pumping system costs.Energy, maintenance and other operating costsfar outweigh initial expenditures. Therefore, itmakes economic sense to consider these lifetimecosts in addition to original pump pricing whendesigning and procuring pumping systems.1Subsequently, each year the number of retrofitoptimization opportunities greatly exceed thenumber of new system installations with the bulkof potential savings lying within the enhancementof existing control systems, pumps or both.As a result, the average energy savings potentialthrough economically viable pump system optimizationprojects is about 20%, although certaininstallations can realize even greater savingsranging from 25% to 50%. This potential representssignificant cost savings in addition to energyefficiency improvements that normally coincidewith improved reliability, productivity andreduced environmental costs.However, the numerous benefits derivedthrough the optimization of existing systemsshould also not be ignored. For a given new system,the potential savings in energy and life cyclecosts are far greater than in a given existing systemof similar size and application. One reasonfor this is the opportunity to optimize piping systemdesigns. Other aspects of the pump systemcan also be better tailored to the system requirementsin the design of new systems.In 2007, the US Department of Energy (DoE)‘Save Energy Now’ program identified morethan $5 million in cost savings with just 31pumping system assessments looking at only twoor three systems per plant.In addition, a recent industrial motor systemsmarket opportunities assessment by the DoE alsoreviewed motor energy consumption and savingsby numerous industry groups. Among the findingswas the realization that pump system optimizationpractices could greatly increase organizationalcost savings since pump systems makeup 25% of the motor opportunities in these companies.However, this process must begin with theproper assessment of pump system costs. Forexample, the average plant today, based on kilowatt-hourcost increases since 1998, spends morethan $1.4 million per year on pump system energy.As a result, the average savings achievedfrom the optimization of pumping systems canpotentially be valued at $350,000 per year. Inlarger facilities, these savings could even run intothe millions of dollars.A systems approachA systems approach, which analyzes supplyand demand sides of a pumping system and howthey interact, almost always produces greaterenergy and cost savings than the optimization ofcomponents alone.For example, a survey of only the componentsof a pumping system may reveal opportunitiesfor an energy efficient motor, replacement of aleaking valve and adjustment to the energy managementsystem to precisely align the pumpoperation hours to the schedule of the end-useprocess.In comparison, analysis of the pumping systemusing a systems approach could identify avarying load profile that could best be metthrough a two-pump arrangement or adjustablespeed drive, resulting in a 50% to 60% saving.In fact, about 75% of the total life cycle cost ofa typical pumping system is accounted for inenergy and maintenance costs. (This will varysignificantly by application.) To maximize pumpsystem efficiency, the pump must be operated atits Best Efficiency Point (BEP).n Continued next page34 - The ASIA Miner - September-October, 2010

www.asiaminer.comSpecial feature: Pumping & pump equipmentimpacts multiple bottom linesn From previous pageAccording to Hydraulic Institute standards,“the BEP is the rate of flow and head at whichthe pump efficiency is at maximum”. 2, 3A systems approach to new pumping systemdesign is equally important, and often overlooked.A recent survey of seven pump manufacturersrevealed a significant lack of understandingon the part of pump specifiers and purchasersregarding the proper application of pumps. 4These pump manufacturers were asked “Whatpercentage of the pumps your company sells areincorrectly specified by the contractor orowner/operator?” Of the five manufacturers thatresponded with a percentage, three indicated avalue of 60% or greater and one indicated that30% to 40% were incorrectly specified.A follow-up question asked “Of the pumpsthat are incorrectly specified, what percentage isa result of inaccurate operating point specifications(i.e., rate of flow, required pressure, and netpositive suction head)?” The answers variedbetween “most” to 90%.Misapplication of pumps has a direct affect onpumping system operating costs. A pump forcedto operate away from its BEP increases energyand maintenance costs, and shortens the lifeexpectancy of that pump.Pumping system efficiencyNew solutions for increasing pumping systemA recent survey ofseven pumpmanufacturersrevealed a significantlack of understandingon the part of pumpspecifiers andpurchasers regardingthe proper applicationof pumps.efficiencies can provide significant economicopportunities for reducing energy consumption.For instance, the over-sizing and under-sizing ofpump systems during the purchasing and installationprocesses can create numerous issues. Thisis because centrifugal pumps alone:q Consume 20% to 60% of plant motor energy;q Have the highest process equipment maintenancecost; andq Remain a major source of process leaks andfugitive emissions.However, a recent paper by the ARC AdvisoryGroup revealed that while American industryspent millions of dollars on information systemsto review production management and assetmanagement processes, major assets such aspumps, fans, blowers, etc. were disconnectedfrom the process. Companies have little real timedata on the performance of these assets and up to60% of scheduled maintenance checks on valvesand motors are unnecessary due to the lack ofperformance data. 5This can be easily remedied with low-costInternet-based technologies as well as othermethods, which can now provide an integratedview of pump system efficiencies that include areview of chips or variable speed drives, operationalconditions and process parameters likeflow and pressure.Among these technologies are low cost, wirelesspredictive condition monitoring systems thatprovide continuous online machine monitoringas well as intelligent flow systems that work withany pump using variable frequency drive (VFD)controller and control software to provideadvanced process control, enhanced reliabilitythrough failure prevention, reduced life cyclecosts and up to 65% lower energy costs.To further highlight the need for enhancedpump system optimization processes, in 1996 aFinnish Technical Research Centre report,‘Expert Systems for Diagnosis and Performancen Continued Page 36The ASIA Miner - September-October, 2010 - 35

Special feature: Pumping & pump equipmentn From page 35of Centrifugal Pumps’, revealed the averagepumping efficiency, across the 20 plants and1690 pumps studied, was less than 40%, with10% of pumps operating below 10%. Pumpoversizing and throttled valves were identified asthe two major contributors to this sizeable efficiencyloss. 6Pump systems optimization is all about maximizingefficiency. This includes modifyingpumps mechanically to achieve best efficienciesfor the longest possible period of times.Unfortunately, industrial practices haveincluded the oversizing of pumps to accommodateincreased production expectations or excessivesafety margins. As a result, pumping systemsthat may have been purchased at exceptionalprices could actually be operating withextremely high maintenance and energy costssince they were not optimized initially to run atbest efficiency.A pump costing $100,000 to purchase andinstall could actually end up costing up to$435,000 a year, once you factor in the energy,maintenance and other costs involved when youanalyze the life cycle costs of a pumping system.This is a considerable expense since optimumpump sizing as well as use of variable speed canprovide significant pump savings. In addition,the proper pump system design choices on thefront end could also reduce plant building andoperation costs since the entire process includesthe installation and maintenance of less equipment,valves, bypass lines.As for existing facilities, many pump systemscan be modified through control or mechanicallyre-engineered with paybacks periods that usuallyrange from six to 24 months.Variable speed drives, whether electrical ormechanical, also account for only 4% of motorenergy usage, while the potential exists to applyits use up to 25%.Anecdotal evidence indicates that about 75%of all pumping systems are oversized. This inefficientcondition may result from conservativedesign, design for anticipated system capacityincreases or a decrease in the output demand.Other factors include the propensity of everyoneinvolved in the design process to overestimate36 - The ASIA Miner - September-October, 2010current and future needs with the inclusion oflarger-than-necessary margins.Typical indications of an oversized systeminclude frequent on/off cycling, highly throttledvalves or heavy reliance on bypass lines.Possible improvements include trimming theexisting pump impeller, installing a smallerimpeller, removing stages of the pump (if a multistagepump), replacing the unit with a smallerpump, or reducing the pump speed.An engineering analysis can identify practicalalternatives and a life cycle analysis can then beemployed to determine the most economicaloption.Proper sizing results not only improve energyefficiency but also have a positive effect on otherfactors in the life cycle cost equation. A properlysized system operates close to its BEP, resultingin lower maintenance costs, longer equipmentlife (increased mean time between failure), andreduced downtime expenses.End users frequently install VFDs to controlmotors on pumping systems with variable loads.The VFDs often result in substantial energy andmaintenance savings but it is important to notethat not all applications are appropriate forVFDs, particularly systems with substantial statichead. 7A systems analysis will typically identifywhether a VFD is appropriate for a particularapplication. Flow control alternatives such asimpeller trimming and multiple pump arrangementsmay be more effective and economical. 8Life cycle costing (LCC)www.asiaminer.comOptimization is about maximizing efficiencyHOSES, valve pipes and fittings areimportant components of any pumpingsystem, and Dixon Valve caters forthese needs in the mining, industrial, constructionand agricultural industries throughout theAsia Pacific region.Dixon Asia Pacific is part of the Dixon Valveand Coupling Company group, and is expandingalong with the Asia Pacific region’s growingeconomies.It has recently opened sales offices inShanghai, China, and Mumbai, India.Dixon Valve and Coupling Company wasfounded in Philadelphia, USA, in March 1916by Howard W Goodall, who travelled to constructionsites in order to identify hose and couplingrequirements to provide purpose-builtproducts and solutions.This dedication to understanding customerneeds and adding value through new and effectivesolutions continues to be a hallmark ofDixon around the world.Dixon Valve established an Australian operationin November 1997. In March 1999 itacquired Mining Supplies Australia (Minsup)to form Dixon Minsup. This brought togethermore than 150 years of experience in the developmentof industrial hose fittings.The further acquisition of National TradeSales in December 1999 expanded the group'sexpertise in the area of industrial plumbing andfire protection equipment. Expansion into thehose and irrigation market followed.In April 2003 the group was consolidatedunder the Dixon name, which is recognized forits proven Minsup and Dixon Boss brands.Dixon has a range of specialty products forthe mining industry:A greater understanding of all the componentsthat make up the total cost of pumping systemownership will provide insights into opportunitiesfor significantly reducing energy, maintenance,and other operational costs.LCC analysis management tools can helpcompanies realize these opportunities. Theanalysis takes into consideration the costs to purchase,install, operate, maintain, and dispose ofall components of the system.Determining the LCC of a system involvesfollowing a methodology to identify and quantifyall of the components of the LCC equation.When used as a comparison tool between possibledesign or overhaul alternatives, the LCCprocess will identify the most cost effective solutionwithin the limits of the available data.In applying the evaluation process or in selectingpumps and other equipment, the best informationconcerning the intended output and operationof the plant must be established. If bad orimprecise information is used then a bad orimprecise assessment will result.The LCC process offers a way to predict themost cost-effective solution; it does not guaranteea particular result but allows plant personnelto make reasonable comparisons between alternatesolutions within the limits of the availabledata.Pumping systems often have a lifespan of 15to 20 years. Some cost elements will be incurredat the outset and others will be incurred at varioustimes throughout the lives of the differentsolutions being evaluated. It is therefore necessaryto calculate a present or discounted value ofthe LCC to accurately assess the different solutions.To make the most of an LCC analysis, it is bestto evaluate alternative system solutions. For amajority of facilities, the lifetime energy and/ormaintenance costs will dominate the life cyclecosts.Therefore, it is important to determine the currentcost of energy and the expected annual energyprice escalation for the estimated life, alongwith expected maintenance labor and materialcosts.Other factors, such as the life time costs ofdowntime, decommissioning and environmentalprotection, can often be estimated based on historicaldata for the facility. In some processes,down time costs can be more significant than theenergy or maintenance elements of the equation.Therefore, careful consideration should be givento productivity losses due to down time.In 2001, the Hydraulic Institute (HI) andEuropump produced ‘Pump Life Cycle Costs: AGuide to Life Cycle Cost Analysis for PumpingSystems’ to help facilities calculate in-depth lifecycle costing for pumping systems as well asprovide substantial technical guidance on newpumping system designs and assessments forn Continued next pageHoses and fittings for pumps from Dixon Valveq Anfo loaders - 45kg to 500kg, dual andsingle remote controls, custom designed units,anfo hose.q Air operated lubricators - fixed oradjustable jet.q Scraper blocks - 2 tonne.q Scaling bars - steel, aluminium.q Pelican picks - standard wooden handle,high visibility shock-proof handle.q Accessories - rock bolt wedges.Its manufacturing capacity and global supplynetwork places Dixon in a unique position inthe Asia Pacific region. It can respond quicklywith a broad and reliable range of products,which are well suited to customer needs.By holding large inventories customers haveaccess to the parts they need, when they needthem, which allows customers to benefit fromgreatly reduced transactional costs.

www.asiaminer.comConsider a totalapproach topump systemsn From previous pageexisting system enhancements.Pump optimization practices on afacility-wide basis can increase plantprofitability and asset reliability.Commonly, opportunities exist whencompanies look beyond components andat a total systems approach to pump systemoptimization.Improper sizing, the failure to reviewwhole system operations, inflexibleprocess changes in a mechanical worldand quick speed design fixes are all culpritsof inefficient operations that wasteboth money and energy.Pump Systems Matter (PSM), a nonprofiteducational organization, wasspecifically created by HI in 2005 to helpfacilities decrease energy costs, optimizepumping systems and gain a more competitivebusiness advantage throughstrategic, broad-based energy efficiencymanagement tools.An increasing number of PSM sponsors,as well as the DoE, now offer systemassessments of plant operations toidentify potential energy savings andareas for process and/or performanceimprovement.By 2015, PSM sponsors hope “endusers will understand the value of - andthe demand for - pump system optimizationservices and that the supply chainwill understand the value of offeringthese services on a competitive basis”.References1. Hydraulic Institute and Europump,‘Pump Life Cycle Costs: A Guideto Life Cycle Cost Analysis forPumping Systems,’ 2001.2. Hydraulic Institute, ANSI/HI 9.6.3 –1997, Centrifugal & VerticalPumps for Allowable OperatingRegion 1997.3. Hydraulic Institute, ANSI/HI L 1 -1.2, Centrifugal Pumps forNomenclature & Definitions, 2000.4. Walters, Trey, ‘The Cost ofIncorrectly Specified Pumps – andIdeas on How to Reduce It,’Presentation given at HydraulicInstitute Annual Meeting. February22, 2005.5. ARC Advisory Group, ‘Strategiesto Drive Manufacturing Efficiencyon the Production Floor,’ (DavidClayton), 2000.6. Finnish Technical ResearchCentre, ‘Expert Systems forDiagnosis and Performance ofCentrifugal Pumps,’ 1996.7. Hovstadius, Gunnar, ‘EconomicalAspects of Variable Speed Drivesin Pumping Systems,’ 1999International Energy TechnologyConference. Houston, Texas.8. Pump Systems Matter &Hydraulic Institute, ‘OptimizingPumping Systems: A Guide ForImproved Energy Efficiency,Reliability & Profitability,’ 2008.n Mike Pemberton is performanceservices manager of ITT Corp-Industrial Process, a charter sponsorof Pump Systems Matter. JoananneBachmann is project and marketingmanager of Pump Systems Matter, anon-profit educational organization.This article has been published withpermission of the Hydraulic Instituteand is excerpted from the originalpaper, available in its complete format www.pumps.org.Special feature: Pumping & pump equipmentVerderflexperistalticpumps idealfor miningVERDERFLEX peristaltic pumps are used in manymining applications around the world because theyoffer unrivalled performance in tough and uncompromisingenvironments.Peristaltic pumps are a type of positive displacement pumpused for pumping a variety of fluids. The fluid is containedwithin a flexible hose or tube fitted inside the pump casing.The actual pumping principle, called peristalsis, is based onalternating compression and relaxation of the hose or tube,drawing content in and propelling product away from thepump. This process makes a peristaltic pump an accurate dosingpump or metering pump with an equal amount of liquiddosed each time.The liquid being pumped never comes into contact with anymoving parts because it is totally contained within the reinforcedhose or tubeA rotating shoe or roller passes along the length of the hoseor tube creating a total seal between the suction and dischargesides of the pump.As the pump’s rotor turns this sealing pressure moves alongthe tube or hose forcing product to move away from the pumpand into the discharge line. Where the pressure has beenreleased the hose or tube recovers creating a vacuum, whichdraws the product into the suction side of the pump, the primingmechanism.Combining these suction and discharge actions results in aself priming positive displacement pump, the peristalticpump.The perfect seal between the two sides of the pump meansthat there is no product slip, when coupled with the pump’slinear speed-flow characteristic it makes peristaltic pumpspump ideal for dosing.n Continued page 38The ASIA Miner - September-October, 2010 - 37

Special feature: Pumping & pump equipmentwww.asiaminer.comPeristalticpumps forminingn From page 37Additionally, as the pumped liquidis totally contained within the hose ortube, this makes a peristaltic pump ahygienic pumping solution with zerochance for contamination. This alsoreduces maintenance time as the hoseor tube is the only wearing part.Abrasive mining slurries have submicronsolid contents in excess of80% with slurry SGs in excess of 2.0.Only hose pumps can pump suchdense fluids while maintaining highlevels of plant availability unlike centrifugalpumps which suffer from continuousdowntime and are unable topump such high SG slurries, lowerplant performance.Additionally, reversible hosepumps can be used to clear chokes inthe thickener underflew line.In dosing galleries, the variablenature of the corrosive reagents causesdiaphragm pumps to clog leadingto increased chemical usage andlower plant efficiencies, whereas progressivecavity pumps suffer fromburnt stators as they are allowed torun dry. This has led to peristalticpumps being specified in floatationcells, primary mineral and tailings retreatmentplants and heap leachinginstallations worldwide.The rubber hose is capable ofpumping slurries containing pyrite,copper concentrate, uranium, nickel,cobalt, silver, platinum, chrome andgold concentrate.Peristaltic hose pumps have manyapplications in the mine, includingslurry transfer, thickener underflowrecirculation, reagent dosing, frothflotation and cyanide processing.MONO Pumps offer a wide range ofprogressing cavity pumps, grinders,screens and packaged solutions for avariety of industrial applications, includingmining and mineral processing.The company’s products have applications inthe mining of various minerals, including gold,silver, copper and coal, as well as the processingof the extracted minerals.It has extensive experience in mine dewateringand significant involvement in mineral processingin Australia while the emergence ofmining in Asia has provided the company withmany opportunities.Mono Pumps, which is celebrating its 75thanniversary in 2010, has an office in Shanghaiwhich provides direct support to its Asian operations.A significant portion of the company’s marketin Asia is in Indonesia and the Philippines,which it also supports from its Australian office38 - The ASIA Miner - September-October, 2010Yakka150 – a newera in pump designTHE Yakka150 from Sykes Group represents anew era in pump design. Not only does it takepump performance to a new level, it alsoimproves the aesthetics and the environment surroundingthe pump application.The Yakka150 is a strong, robust and resilientunit. The module comprises a rotationally mouldedenclosure and an integral roll cage which serves asboth an acoustic barrier and as a means to protectthe unit from vandalism and extreme environmentalconditions.It is lightweight in design and offers excellentmanoeuvrability.It has been designed to suit the requirements ofalmost any application suiting a 6-inch pump,including mining, construction, sewer bypass andhire applications.The enclosure enables easy access for maintenancewith gull wing doors and low internal sidesgiving unparalleled access to the engine, pump setand control systems.The module comes with a single point lift allowingfor simple removal of the canopy for major servicing.The Yakka150 can be mounted on either a sledbase for mining applications or integrated onto anytrailer for multiple site relocation.Designed to operate unsupervised over extendedperiods, the unit incorporates a 200+ litre fuel tankallowing for 30 hour operation at full load (WMR)at 1800rpm.All controls are inside the lockable module allowingfor the user to ‘set and run’, eliminating the needfor after hour surveillance.The Yakka150 pump offers increased flows,reduced fuel usage and solids handling capabilities.The pump has a stainless steel impeller and wearplatesas standard and is accredited to AS9002 standards.It incorporates environmental considerations suchas noise reduction, good flow through ventilationMany mining uses for Mono Pumpswith marketing, manufacturing and design supportfrom Australia.The company provides direct support toAsian clients and also provides support throughits valued agents and distributors.The major interest for Mono Pumps intomines in Asia is the dewatering opportunitiesand explosives pumping, however Mono is alsoinvolved in mineral processing activities andany situation where water or liquid needs to betransferred on or around mine sites.Dewatering facilities can be provided for surface,open pit or underground applications.There are also many mineral processingapplications it is are focused on as the pumpsare designed to handle difficult applicationssuch as abrasive fluids at high heads and, at theother end of the scale, explosive emulsions,pastes of ground limes, china clays, cements,sandstone, polyelectrolyte flocculent, groutplacing, cavity filling, mine dewatering andThe Yakka150 pump from Sykes.and a spill bath, which is incorporated into the unitto reduce environmental damage from potential fueland oil leaks.Sykes Group was established in Australia in 1967to service the growing Australian mining and constructionindustries.It is now one of the world’s largest auto primepump manufacturers.Sykes offers customers a total equipment solutionto a variety of industries and a spectrum of applications.It specializes in the design, manufacture andapplication of standard and custom built equipmentfor some of the most challenging applications in theworld.Sykes provides service through a network ofbranches in Australia and New Zealand along withstocking distributors throughout the world.strata control.Water can also be moved around mine sites ordistributed with Mono’s transfer pumps.”Mono mining packages have been employedin the Australian mining market for more than30 years and it has been a natural progressioninto the Asian market.The company is always looking for opportunitiesto grow its business and Asia’s expandingmining industry is an obvious target.Mono has direct representation in China andIndonesia and operates in the Philippinesthrough an agency agreement. It has supplieddewatering hoppers, helical rotor pumps, submersiblepumps and diaphragm AODD to rangeof mineral processing facilities, including thoseinvolved with chemical and explosives distributionat mine sites.On all major projects, no matter how remote,Mono Pumps is able to offer an installation andcommissioning service.

www.asiaminer.comCentral AsiaSustainability in Kazakhstan:meeting expectationsBy Julia Boiko,Wardell Armstrong International’sCentral Asia regional managerIN too many parts of the world mining has abad reputation caused by a poor environmentaland social record, and a legacy of accumulatedproblems. Despite the efforts of theindustry to raise the bar, it’s often still seen to beonly as good as its latest failure.Yet why should we not set ourselves the goalof achieving sustainability in mining?It may be a long and difficult haul, but we havea responsibility as well as a real opportunity inCentral Asia to take the initiative by embeddingsustainable development - especially in entrepreneurialKazakhstan which could lead the way.What does sustainability cover?The answer is very wide-ranging. It includesthe assessment and management of environmental,social and economic impacts and liabilities,occupational health and safety, mine closure andpost mining regeneration, and measures to combatand mitigate climate change.Of course, Kazakhstan is far from alone in facingthese issues. It can and should operate in aglobal context against international expectations.Globalization means that international investorsare as concerned about their reputation and whothey associate with as they are about the value oftheir assets and avoiding liabilities. And, ofcourse, there’s a raft of international standardsand expectations – from the Equator Principles toIFC Performance Standards and EU directives.Many financial institutions are signatories tothe Equator Principles, which commit them toensuring that projects to which they lend complywith specific environmental and social standardswith corresponding management plans as a conditionof any loan.Similarly, the majority of natural resourcecompany listings are on international exchangeswhose requirements include the reporting ofhealth and safety, environmental performance,and social and community relations.In Kazakhstan specifically, although theEnvironmental Code has come a long way andaspires to high standards, the monitoringprocesses and regulatory requirements are oftenovershadowed by and inconsistent with internationalrequirements. This imposes the extra costof two separate processes - one for local permittingand one for international expectations andinvestors.Transparency, public disclosure and communityinvolvement are also limited with insufficientemphasis on properly involving people, listeningto their concerns and adapting projectplans.With an increase in democracy and accountabilityto local communities, companies willrequire a social licence to operate. This doesn’tmean that localconcerns overridestrategic needs – itjust means beinggood neighbours.There are goodcommercial andeconomic argumentstoo, fromJulia Boikobeing able to raise funds to gaining permits andlicences, reducing costs and environmentaltaxes, and taking advantage of CER income.The necessary processes are in place – especiallyISO14000 environmental managementstandards, the sustainability reporting guidelinesset out in the Global Reporting Initiative, and theMining and Metals Sector Supplement.Legislators also have a key role in developinga less prescriptive and more long term, flexibleand risk-based approach to defining and managingenvironmental and social impacts and liabilities- away from 'pay to pollute' towards a propersystem of risk, limits and enforcement.There’s a lot that needs to be done but therewards could be great - for mining companies,for their financial backers, and for localeconomies and communities.n To contact the author Julia Boiko, phone:+7727 334 1310 or email:jboiko@wardell-armstrong.comChaarat Gold obtains new licence areasCHAARATGold Holdingshas acquired KyrexLimited which holds fourlarge licence areas in the northwestof the Kyrgyz Republic,with potential to add significantlyto the company’s ChaaratGold Project.The three most prospectiveassets are Chontash, Miron -ovskoye and Kyzil Ompul withthe fourth area being Severo -chontashskaya where no significantmineral potential has been defined to date.As part of the acquisition, Chaarat Gold’slargest shareholder China Nonferrous MetalsInternational Mining Co (CNMIM) has agreed tosubscribe for shares valued at £2 million,enabling it to maintain its 19.9% holding.Chontash is a skarn molybdenum-gold-copperdeposit which contains potential for a large-scalecopper-gold porphyry deposit. Significant explorationwas undertaken in 2007/08, comprising 12drill holes totalling more than 2800 metres andextensive trenching.In July 2008 SRK Consulting Zimbabweundertook an exploration property review inwhich it established a resource estimate, classifying3.2 million tonnes @ 0.223% molybdenum inthe inferred category under the JORC standardand recommended further exploration work beundertaken.While Chontash has been identified as amolybdenum skarn, Soviet-era drilling resultsDrilling at the Chaarat Gold Project in the Kyrgyz Republic.indicate some potential for significant copper valuesto the east of the licence area.This potential has been verified by geophysicalwork as well as a number of drill holes which,when penetrating the skarn, showed gold andcopper values.Mironovskoye is a gold-silver-copper depositwith a strike length of 1.4km. The deposit wasextensively explored during the Soviet-era bydriving adits and drifts, with 5km of undergrounddevelopment completed. The main economicminerals were identified as copper, gold and silver.Work by Kyrex indicates that the resourcemodel may have been based on bismuth cut-offsand a grade of 1.2% copper and 1.7 grams/tonnegold could be estimated for a similar tonnage.Kyzil Ompul is an early stage licence area inwhich a number of small gold, copper, molybdenum,lead and uranium deposits have been delineatedby Soviet geological teams.Chaarat believes Kyzil Ompul,which means ‘red hill’ in the locallanguage, has reasonable prospectivityfor an IOCG (iron oxidecopper gold) type deposit.The 604sqkm Chaarat GoldProject is within the Middle TienShan Mountains, which form partof the Tien Shan gold belt.The company has receivedencouraging results from its mostrecent underground and surfacedrilling program.The program is taking place on the centralChaarat target which hosts three parallel strikingmineralization trends - Main, Contact andTulkubash zones.A surface drill hole at the M3000 Project in theMain Zone returned an intersection of 43.5metres from 144.5 metres @ 6.74 grams/tonnegold.Two underground drill holes at the C5300 projectin the Contact Zone returned intersections of16.5 metres from 110.5 metres @ 4.13grams/tonne gold, 4.5 metres from 3 metres @3.51 grams/tonne, 15 metres from 106.5 metres@ 6.69 grams/tonne and 4.5 metres from 138metres @ 6.03 grams/tonne.The company has thus far delineated a JORCcompliant mineral resource of 4.009 millionounces at a grade of 4.14 grams/tonne gold.Chaarat's objective is to become a low costgold producer targeting initial annual productionof more than 200,000 ounces by early 2013.The ASIA Miner - September-October, 2010 - 39

Central Asiawww.asiaminer.comKentor Gold seeks newdeposit near AndashKENTOR Gold is seeking to purchase theAktash gold-copper deposit which is just8km from the site of the company’splanned Andash gold-copper plant in the KyrgyzRepublic.Kentor has entered into a Letter of Intent withregard to an exclusive option to purchase thedeposit from the local owner of the licence. Theoption is for a period of 18 months and allows fora sale subject to satisfactory completion of duediligence.An exploration target has been established forAktash under the JORC guidelines of 2 to 5 milliontonnes of ore grading 2 to 3.5 grams/tonnegold, 0.3 to 0.7% copper and 8 to 12 grams/tonnesilver.Kentor’s managing director Simon Milroysays, “Securing an option over Aktash means The area surrounding the Andash project.that we have a further opportunity to increase the life plant. It sits close to the watershed of the Kyrgyzstanof operations at Andash.range at an elevation of 2800 metres and is adjacent“Evaluation of the Andash project has been based to the border with Kazakhstan.on the Andash 1 ore body alone. We have potential to Most of the distance from Aktash to the Andashadd reserves at Andash 2, Andash 3, Nahodka, plant site is along an existing road within the valley ofJerganak, Chonkyshto, Toktonysai and now at Aktash the Karakoi River.as well.Exploration and assessment work at Aktash has“The grade of the gold mineralization at Aktash is been conducted in two phases, from 1990 to 1993,higher than at Andash, hence including ore from and from 2006 to 2009. Adits have been drawn onAktash in the feed to the process plant will likely three levels with a total of 2500 metres of undergrounddevelopment. There have been 59 drill holesresult in increased annual gold production.”Andash is under development and, at this stage, is completed from both surface and underground, withtargeted to annually produce 70,000 ounces of gold assays on 785.6 metres of core included in the database.and 7400 tonnes of copper in concentrate.Andash will be the company’s first operation in the There is additional exploration potential for porphyrycopper mineralization associated with fineKyrgyz Republic, with the larger high-grade goldresource at Savoyardy to be developed subsequently. grained diorites, quartz diorites and granodioritesAktash is 10km east of the Andash 1 ore body and similar to Andash at the northern end of the deposit8km east of the planned site of the Andash processing close to the Kazakh border.Oxus to use equity sale funds for AGFOXUS Gold aims to use proceeds from thesale of equity to a Chinese consortium fordevelopment of a new underground miningoperation at the Amantaytau Goldfields (AGF) projectin Uzbekistan.In early 2010 Oxus signed a conditional agreementwith a consortium of Chinese investors comprisingBaiyin Non-Ferrous Group Co, CITICConstruction Co and Chang Xin Yuan Su (Tianjin)Equity Investment Fund Management LP to investin the company and arrange financing.The agreement involved sale of equity for around$85 million which would then allow Oxus to unlock$100 million of agreed loan finance for theUzbekistan project. However, the agreement wasconditional on the signing of a Foreign InvestmentAgreement (FIA) with the Uzbekistan Governmentby June 30, 2010, receipt of customary approvalsfrom the Government of the People's Republic ofChina and admission of the new Ordinary Shares totrading on AIM by December 31, 2010.In June an amendment to the agreement wassigned which removed the signing of the FIA as acondition to the financing. Accordingly, uponreceipt of the relevant Chinese Governmentapprovals, the consortium will make the initialinvestment of about $85 million by way of the issueof new ordinary shares and convertible loan notes inthe company.40 - The ASIA Miner - September-October, 2010The $100 million of loans will not be taken untilthe Uzbekistan Government agrees to the inwardinvestment of these funds in the AGF joint venturein which the Uzbek government is a part.Oxus says these developments are a major stepforward in its progress and development strategy.The funds may also be used by the Oxus team toinvest in other gold projects in the wider region,which could lead to the expansion and developmentof a number of additional projects where managementmay apply their expertise and skills from thecompany’s newly formed partnership with theBaiyin CITIC consortium.Located in the Kyzylkum region of Uzbekistan,the AGF joint venture is on one of the world’slargest areas of gold endowment, the Tien Shan belt.It also enjoys the privilege of being positioned just40km south of the world’s largest single open pitgold mine at Muruntau.Oxus has recently started a significant explorationprogram within the licence area. The objective of thefive year program is to accelerate the conversion ofmineral resources to reserves and in so doing, acceleratethe preparation of deposits for production, aswell as to define new resources.AGF is targeting an increase in JORC classifiedgold reserves from the current 2.4 million ounces tomore than 7 million ounces as a result of the drillingprogram, after allowing for mining depletion.First Aynakcopperexpectedin 2013AJOINT venture covering theAynak Copper Project inAfghanistan expects to start productionof copper concentrates in 2013.The Aynak joint venture is 75%owned by the Metallurgical Corp ofChina (MCC) and 25% by JiangxiCopper, China’s leading copper producer.The start-up date is two years laterthan the original date put forward lastyear by MCC and has been revised bythe joint venture partners followingextensive preliminary examination ofthe project.MCC Tongsin Resources’ sales managerZeng Tao says the first phase of theproject will have a designed annualcapacity of 200,000 tonnes of copper inconcentrate. MCC Tongsin Resourcesis the copper and zinc unit of MCC.“Production will take two to threeyears to reach the designed capacity.”He says the joint venture plans toexpand annual capacity to 500,000tonnes of copper in the second phase,which is higher than the previously statedstage 2 capacity of 320,000 tonnes.MCC is also considering building asmelter at the site, he says, with thejoint venture negotiating with the localgovernment on details, including thesize.The sale of concentrate productionfrom the Aynak project will be handledby the joint venture.The Aynak mine is regarded as one ofthe world’s major copper ore bodieswith proven reserves of 9 milliontonnes of copper.Meanwhile MCC Tongsin Resourcesis in discussions with local governmentauthorities for an extension to a 10 yearlease for a copper mine in neighbouringPakistan.The current lease at the operatingproject is due to expire in 2012.The mine has annual production of18,000 tonnes of copper, 2 tonnes ofgold and 3 tonnes of silver.MCC has another lead and zinc minein Pakistan that produced about 13,000tonnes of zinc concentrates in the firsthalf of 2010 with this material sold toChina. There was no lead concentratesold owing to the small quantity produced.This mine started production at theend of 2009 and has a designed annualcapacity of about 70,000 tonnes of zincin concentrate.MCC Tongsin Resources is investigatingfurther investment in overseasprojects. Zeng Tao says the companyfocuses on project development, notexploration, which generally takes toolong.

www.asiaminer.comNot all plain sailing for ports planTHEshortcomings of India’s ports are raisingconcerns in the international businesscommunity over the country’s capability tohandle burgeoning trade volumes to feed itsgrowing economy.The Indian government is attempting toaddress the issue through a number of policiesand by involving the private sector, but it is not allplain sailing, as outlined by a recent edition ofThe Salva Report.In a bid to fulfil India’s trade objectives andfacilitate fast growth of the economy, theNational Maritime Development Program(NMDP) was formulated in March 2006 by theDepartment of Shipping.This resulted in an assessment of the nationaltraffic demand and the additional capacityrequired to meet this demand.The total investment allocated to the programis US$22.7 billion, out of which US$12.5 billionis for the port sector with the remainder for thedevelopment of shipping and inland waterways.The NMDP encompasses 276 projects for themajor government-owned ports in the areas ofberth construction/upgrading, channel deepening,equipment modernization and upgrading, railroadconnectivity and other related activities.The NMDP forecasts that the major ports willhandle 616 million tonnes of traffic by 2012, withcoal comprising 104 million tonnes of this. Tomeet these projections effectively it is estimatedthat capacity of around 800 million tonnes will berequired by the major ports by 2012 with coalrequiring 135 million tonnes.The Indian government has also opened up theport sector to private investors on a ‘build, operateand transfer’ (BOT) basis, with revenue sharingmechanisms in the areas of construction ofcargo handling berths, installation of cargo handlingequipment and construction of dry docks.It has allowed direct foreign investment up to100% for construction and maintenance of portsand harbours. For the construction of ports in aSpecial Economic Zone, a 100% exemption fromincome tax for the first 5 years and 50% for thenext 5 years has been provided.Projects languishingIndiaThe Salva Report states that a lot has beenpromised, particularly by government, but in realitymost of the NMDP projects are running late orlanguishing at initial stages, mainly due to redtapeand/or problems acquiring land and environmentalclearances.Of the 276 projects, only 50 worth US$1.3 bill -ion have been completed while work is in pro -gress on another 74 worth US$3.7 billion.Although 177 million tonnes of total capacity hasbeen added of a targeted addition of 253 million,only 2 million tonnes of coal handling capacityhas been added out of a targeted 38 million.Projects relating to the replacement of equipment,deepening of channels, and enhancing roadand rail connectivity are also struggling. It seemshighly unlikely that the remaining 150-odd projectswill be completed in the next two years toachieve the targeted capacity or add any significantcoal capacity.The report says that the opening up of ports tothe private sector has proven much more successfuland the majority of port developments withstate-of-the-art facilities will emerge from privatecompanies, albeit in some cases in partnershipwith government.Massive growth opportunities in imported coaland the government incentives have encourageddomestic private sector groups including Adani,Essar and Navayuga, and foreign players likeMaersk, Dubai Ports International and PSASingapore to invest significantly in ports, possiblyadding more than 200 million tonnes to India’scoal importing capacity in the next decade.Investments from private sector/captive portprojects under the public private partnershipmodel have doubled, from US$713 million for 14projects in 2006-06 to US$1.464 billion for 25projects as at May 1, 2010. Another US$2.319billion investment for 127 million tonnes ofcapacity is at the implementation stage.A number of ports are being constructed solelyby private players with large ports likeKrishnapatnam and Mundra expected to havecapacity for more than 50 million tonnes by theend of 2011.The Salva Report concludes that the heightenedinvolvement of the private sector, thanks inpart to government initiatives, is what will drivesignificant development of India’s ports in thenext decade, helping facilitate India’s everincreasingdemand for thermal and metallurgicalcoal imports.The ASIA Miner - September-October, 2010 - 41

42 - The ASIA Miner - September-October, 2010

www.asiaminer.comJSW investment incoal developmentINDIA-BASED company JSW Energy (Bengal)Limited, a special purpose vehicle (SPV) for theBengal power and coal project, is investing aboutRs 2000 crore in coal mine development.The SPV was incorporated in February 2010 withJSW Bengal having a 26% stake and JSW Energy74%.The SPV will set up a 2 x 800 MW captive powerplant to meet the power requirement of JSW Bengaland sell excess power to the grid. The estimated cost ofthe project is Rs 9680 crore, which includes an investmentof Rs 2000 crore in coal mine development.The funding would be by way of debt and equity inthe ratio of 3:1 and the target date for completion is2014-15.In March this year, JSW Bengal entered into anexclusive long-term coal supply agreement with theWest Bengal Mineral Development CorporationLimited for supply of coal from the Kulti andSitarampur coal blocks.The company has already started boundary wallwork for the Bengal project.JSW Steel’s joint managing director and group chieffinancial officer Seshagiri Rao says, “Steps will betaken this year for the Bengal project.” JSW Steel isthe parent company of JSW Energy.In the first phase, 4 million tonnes will be commissionedand is expected to cost Rs 15,000 crore. Thetotal capacity of the steel plant will be 10 milliontonnes.In a bid to meet funding requirements for variousexpansion projects, JSW Energy is raising its borrowinglimit by Rs 10,000 crore.New alumina plantfor Kutch districtCARBORUNDUM Univ er -sal Limited (CUMI), aMurugappa Group companybased in the Indian city ofChennai, will pump in Rs 50-75crore to set up a brown-fused alumina(BFA) plant in the Kutchdistrict of Gujarat.The project is likely to bedeveloped in a joint venture withthe state-owned mining giant,Gujarat Mineral DevelopmentCorporation (GMDC).CUMI has identified theNakhatrana area of the mineralrichKutch region, for the brownfusedalumina project.CUMI’s managing director KSrinivasan says, “Around Rs 50-75 crore will be infused for theplant and we intend to start implementationof the project thisyear.”The proposed plant will have acapacity of 35,000 tonnes and willbe operational 18 months from thedate the company starts construction.The company also has plans toset up a power plant along withthe project.“It will be a coal-based powerproject with a capacity of20MW.”CUMI has already entered intoa memorandum of understandingwith GMDC. “We have not yetformed a joint venture but it isunder process,” K Srinivasansays.When asked about the equity tobe shared by both partners in theproject, he refused to divulge thedetails, saying that they have notyet been worked out.However, the public sectormining company, which has bauxitemines in Kutch, may get a 26%stake in the project.Alumina is produced frombauxite and Kutch has largereserves of bauxite. In fact,Gujarat's total bauxite reservesare estimated at around 170 milliontonnes and the state haspotential to generate 1 milliontonnes of alumina.Apart from brown-fused alumina,Carborundum Universal alsomakes semi-friable alumina,white-fused alumina and ceramicalumina, and caters to variousmarkets such as refractory, bondedabrasives, coated abrasives etc.IN a move that could help India's manystate governments evolve a uniform regulatoryframework for the mining ofminor minerals, the National EnvironmentMinistry of India has suggested that theminimum mining lease size be five hectaresand that the lease period be fixed at fiveyears.Currently, the area for grant of mine leasesand the period of lease for minor mineralsvary from state to state depending on thetype of concessions, minerals and its enduse.Mining is a state-level subject and thereis, as of this date, no uniformity in regulatoryframework for minor minerals.This is mainly because the many stategovernments of India are empowered tomake rules for minor minerals underSection 15 of the Mines and Minerals(Development and Regulation) Act 1957.The National Environment Ministry hadset up a group under the EnvironmentSecretary to evolve guidelines for sustainablemining of minor minerals.The group, in its report, also suggested acluster approach for the smaller mine leasesoperating currently.These clusters could be provided withprocessing or crusher zones for forwardIndiaMinimum lease areasizes being consideredintegration, it said.The group was in favour of making mineplans mandatory for the minor minerals aswell and recommended that a separate corpusbe created for reclamation and rehabilitationof mined out areas.As mining of minor minerals is by andlarge unorganized and practised in an unscientificmanner, the separate corpus could beutilized for reclamation of mined out areas.The state governments could work out asuitable mechanism for creation of such corpuson the polluter pays principle, it said.Minerals have been classified into majorand minor categories based on their end userather than level of production, level ofmechanization, export and import amongother factors.Minerals such as ordinary sand, marble,boulders, lime shell, brick earth, quartziteand sandstone, among others, are declaredas minor minerals by the Central Govern -ment. The minor minerals account for abouta tenth of the total value of minerals producedin the country.Further, the present classification of mineralsinto major and minor minerals shouldbe re-examined by the national Ministry ofMines in consultation with India's states, itsaid.The ASIA Miner - September-October, 2010 - 43

Philippineswww.asiaminer.comSiana on schedule for first gold pourDEVELOPMENTof Red 5’s Siana GoldProject remains on schedule for first goldpour in April 2011 while the company hasbeen further encouraged by drilling results at thenearby Mapawa gold-copper prospect.Follow-up drilling at Mapawa, which is 20kmnorth of Siana in northern Mindanao, returned anintersection of 254 metres @ 1.2 grams/tonnegold and 0.16% copper from 360 metres downhole.The result confirms the potential for a largegold-copper porphyry deposit at Mapawa andindicates that mineralization extends over a 600metre vertical depth.The discovery hole and the latest hole are about200 metres vertically apart within the zone ofgold-copper mineralization.Shallow drilling has now started on the upperportion of the system to evaluate the extent of thesurface and near-surface oxide mineralization.Three drill rigs are testing this zone.Red 5’s managing director Greg Edwards saysconfirmation of the Mapawa gold-copper systemhas justified an accelerated exploration programon site to determine the opportunities for anincreased production profile in the region, whichmay also result in an extended mine life at Siana.Red 5 has awarded the open pit life-of-minecontract to Delta Earthmoving, of the Philippines,and the EPCM contract to TWP Australia. Pitdewatering equipment and a new2.8MW 6.1 metre by 4.2 metremill have been ordered.The Siana development comprisesan open pit operation followedby an underground mine,with ore treated through a conventionalmodern gravity and carbonin-leachplant to produce gold dore.Over a 10 year life the project is expected todeliver 849,000 ounces of gold production fromknown reserves at a cash cost of US$351 perounce.The ore reserve is estimated to 400 metres verticaland the mineral resource to 500 metres vertical.The ore body remains open at depth and tothe north and south.An open pit to a maximum depth of 215 metresbelow surface will be established followingdewatering of the 8.2Gl of clean water in theexisting pit.An underground portal, 75 metres above thefinal pit floor will be established at the beginningof the third year of operations. The decline will bea 5 metre by 5 metre heading and a 1:7 gradient.The underground mining method will seejumbo drill and blast for the decline and roadheaders for ore production using underhand cutand fill. A paste fill, comprising cycloned tailingsand local cement, will be used for ground support.Drilling at the Siana Gold Project in northern Mindanao.Mindoro DFS outlines increase in reservesADEFINITIVE feasibility study (DFS)into Intex Resources’ Mindoro NickelProject has outlined a 70% increase inreserves and a 50% increase in resources.The DFS has also confirmed that Mindoro isa world-class project and can be a major, lowcostproducer for many decades, located closeto the Asian markets which represent almost60% of world nickel demand.It currently boasts 126 million tonnes ofproven and probable JORC-compliant lateriteore reserves @ 0.95% nickel and 0.06% cobalt,containing about 1.2 million tonnes of nickel.There are total ore resources of 315 milliontonnes @ 0.83% nickel and 0.06% cobalt, containingabout 2.6 million tonnes of nickel.The estimated cash cost after credits is justUS$0.66 per pound of nickel metal producewith an IRR of 23.6% and an NPV of US$2.3billion, based on a long-term nickel price ofUS$8.25 per pound.The project will also produce ammonium sulphatefertilizer, the main fertilizer imported by44 - The ASIA Miner - September-October, 2010the Philippines for rice production, in amountsthat will help the Philippines to become selfsufficientin supporting its agriculture sector.The DFS was completed with a projectedannual production of 52,700 tonnes of LMEgradenickel briquettes, 15,920 tonnes of cobaltsulphate, 74,100 tonnes of chromite concentrateand 147,100 tonnes of ammonium sulphate.The project will also generate 110MW ofCO2-free power, of which 90MW will be usedby the plant.The mining operation will be surface excavationsfrom a pre-determined mine block ofabout 50-60 hectares.Projected production rates will require miningof about two blocks each year, which willbe fully rehabilitated and replanted immediatelyafter mining of each block has been completed.Mining will, therefore, affect an area of about100-150 hectares per year. After mining the terrainwill be reshaped and the topsoil returnedfor immediate replanting.The project, on the island of Mindoro, wasdiscovered and developed by Intex and is consideredone of the Philippine government’s prioritymineral projects. The 100sqkm concessionarea is about 30km from the coast in the centralpart of the island.Intex has engaged advisors to assist with apotential strategic transaction for Mindoro.In the meantime the company is still workingwith the aim of getting the Philippines’ DENRto declare the reinstatement of the environmentalcompliance certificate (ECC), which wassuspended by the government late last year followingopposition from local communities.The Norwegian Ambassador to thePhilippines has visited Mindoro in order tointerview supporters and detractors of the project.The Ambassador spoke to more than 100people and made himself available to whomeverthe local anti-mining lobby suggested. Hisreport did not reveal any wrong-doing or violationof the OECD guidelines by Intex.

The ASIA Miner - September-October, 2010 - 45

PhilippinesExploration programfor Greater CanatuanTVI Pacific is seeking a permit to carry out three and five months, depending on governmentexploration in the Greater Canatuan area timetables.which surrounds its operating Canatuan TVIRD is negotiating a contract with an internationalservice provider to conduct an airborneCopper Project.An initial work program for the exploration has transient electromagnetic and magnetic survey ofbeen finalized by TVI’s Philippine affiliate TVI the area.Resource Development Philippines (TVIRD) and This survey will search for geophysical signaturesof Volcanogenic Massive Sulphide (VMS)joint venture partner DMC-CERI, a unit of DaconCorporation.style mineralization.The program has been designed to lead to the The contiguous TVIRD-owned tenements coveringthe operating Canatuan mine and surround-exploration, development and production of mineraldeposits in the Greater Canatuan tenement ing areas, which comprise more than 35,000area. TVIRD has already secured the endorsement hectares, including Greater Canatuan, will also beof the local council and municipal authorities for flown.the program.TVIRD believes that this region has beenThe three main activities of the program are the under-explored for VMS-style mineralization andFree Prior Informed Consent (FPIC) process; an that other deposits of similar attributes to theairborne geophysical survey; and completion of Canatuan ore body may exist within this greenstonebelt.required processes of the Exploration PermitApplication (EXPA).In addition to the previously outlined VMSOnce the FPIC process is completed, all occurrences, namely Tabingan, Matigdao andrequirements will have been fulfilled for the Palalian, the airborne surveys are expected to producea number of geophysical conductors thatissuance of the exploration permit.The FPIC process is a Philippine government will be subject to ground confirmation geophysicaland prospecting surveys as soon as groundregulatory requirement for proponent firms toinform affected indigenous communities of proposedexploration projects; to obtain and to docu-TVIRD also plans to fly airborne magneticsaccess becomes available.ment the consent of the affected communities; and radiometrics surveys over the rest of itsand to execute a Memorandum of Agreement Zamboanga peninsula tenements and applicationembodying the agreements of the proponent, the areas in search of intrusive-related mineralizationcommunities and the Philippine National styles including porphyries, skarns and high-levelCommission on Indigenous Peoples (NCIP). epithermal deposits.This application has been tendered to the NCIP These surveys are scheduled to be flown ascentral office.soon as regulatory clearances are obtained and theInformal communications with indigenous peopleand identification of the relevant communities Providing the permitting process goes as expect-equipment is mobilized into the country.for formal consultation have begun.ed, the airborne program should begin before theThe FPIC process is estimated to take between end of the third quarter of 2010.ABOVE: Drilling at TVI Pacific’s CanatuanCopper Project.ABOVE RIGHT: An overview of theCanatuan site.RIGHT: Preparing for drilling.46 - The ASIA Miner - September-October, 2010www.asiaminer.comFirst Pacificeyes offfurtheracquisitionsAFTER securing a 46.6% stake inthe Philippines’ largest gold andcopper producer Philex Mining,Hong Kong-based conglomerate FirstPacific Co is eyeing off other Philippinesmining assets.While being prepared to examine anyresources assets that it considers to representgood value for money, First Pacific isparticularly keen on properties that areadjacent to Philex’s Silangan project innorthern Mindanao, which includes theBoyongan and Bayugo gold and copperdeposits.First Pacific has been in discussionswith Manila Mining Corp, which ownsmining sites near the Bayugo andBoyongan projects as part of 1165 hectaresof tenements in the northern Mindanaoprovince of Surigao del Norte.The company has also had some discussionswith Lepanto Consolidated MiningCo with its subsidiary Far Southeast GoldResources in mind but these negotiationshave halted for the time being. Lepantoand Manila Mining are both owned bybusinessman Felipe Yap.First Pacific’s managing director andchief executive officer Manuel VPangilinan, who is also chairman and CEOof Philex, says discussions at present onlyinvolve Manila Mining and that Lepanto isout of the equation “at least for themoment”.He says the company would like to createeconomies of scale with Philex’s propertiesin Surigao del Norte, which areexpected to replace Philex’s flagshipPadcal mine in Benguet when it exhaustsgold, copper and silver reserves in aboutseven years.About 80% of First Pacific’s assets arein the Philippines, including a majoritystake in infrastructure and services firmMetro Pacific Investments Corp,Philippines Long Distance Telephone Coand Metro Pacific Tollways Corp. It alsohas a 34.5% interest in Manila Electric Co,the country’s largest power distributor.Philex expects its 2010 core net incometo rise by 10%, boosted by the steady risein gold and copper prices.Manuel Pangilinan says Philex is still ontrack with its plans to raise $600 million to$800 million for the Silangan mining project.He says feasibility studies for the projecthave started.“Between now and September 2011, wewill be focusing on raising funds and completingthe feasibility study for Silangan.By 2015, the Silangan project will startoperations.”Philex gained full control of Silangan in2009 after buying out its partner, AngloAmerican.

www.asiaminer.comPhilippinesMerged entity continues Acoje DFSEUROPEANNickel has completedits merger with RusinaMining with the new entitycontinuing work on a definitivefeas ibility study (DFS) for the AcojeNickel-Cobalt Project on LuzonIsland.European Nickel was Rusina’sjoint venture partner in thePhilippines until the companiesagreed to merge with this arrangementcompleted in June and the newentity is now known as EuropeanNickel.Since the merger was completedEuropean Nickel has completed aplacement and share consolidation,which raised about US$9.7 million.This, combined with Rusina’s cashresources of US$1.6 million, givesthe company sufficient workingcapital to complete the projectfinancing of the Caldag NickelProject in Turkey and to continuethe Acoje DFS, which is due forcompletion in 2011.Acoje is the company’s nextplanned heap leach project for commercializationafter the Caldag project.The Acoje and adjoiningZambales deposits are in theZambales Mountains of LuzonIsland. The pre-feasibility study(PFS) showed a JORCcompliantcombined lim -onite plus saprolite indicatedresource of 34.41million tonnes @ 1.09%nickel from an inferredplus indicated resource of50.14 million tonnes @1.06% nickel using a 0.8%cut-off grade.The PFS recommendsannual production of24,500 tonnes of nickeland 930 tonnes of cobalt.Mining will be at anannual rate of 3 milliontonnes, with a low stripratio of 0.46, and cashcosts are estimated atUS$3.10/lb of nickel.Further potential res ou -r ces have been identifiedwhile there is also significantpotential to improve the economicsand extend the estimated 10year mine life to beyond 20 years byconfirming the JORC inferredAcoje and Zambales chromitedeposits to indicated status. This isexpected to occur during the DFSprocess.It is proposed that the nickel lateriteore will be leached with dilutesulphuric acid produced from a sul-A view over the Acoje Nickel-Cobaltproject on Luzon Island.An access tunnel at EuropeanNickel’s Acoje project.phur burning acid plant to be built atthe site and the nickel will be recoveredin a precipitation plant in aDavid Whitehead says the mergerhas resulted in a number of seniormanagement changes with formertwo-stage concentration process Rusina CEO Robert Gregoryproducing two saleable products.The first stage primary nickelproduct will contain 39% nickel and1% cobalt and the second stagenickel product will contain 25%nickel and 1% cobalt.becoming European Nickel managingdirector, former Rusina CFOMark Hanlon becoming the financedirector and former EuropeanNickel managing director SimonPurkiss becoming executive deputyEuropean Nickel’s chairman chairman.The ASIA Miner - September-October, 2010 - 47

Philippineswww.asiaminer.comPotential to add to Masbate reservesAN exploration program in areas aroundCGA Mining’s Masbate Gold Projecthas confirmed the persistence of the porphyryvein system, which is still open to the east.The encouraging drilling results have potentialto add to mineable reserves at Masbate,therefore increasing the life of the operatingmine.Further high-grade drilling intercepts havebeen identified at the Boston-Porphyry and BlueQuartz zones, close to the southern extent of theproposed pit shell. Neither zone contributes tothe current NI 43-101 resource or reserve estimatesfor Masbate.Drilling highlights include 5 metres @ 17.95grams/tonne gold from 59 metres, including 2metres @ 41.39 grams/tonne; 14 metres @ 3.48grams/tonne from 68 metres, including 7 metres@ 6.08 grams/tonne; and 23 metres @ 1.40grams/tonne from 54 metres, including 2 metres@ 5.06 grams/tonne.Further drilling is being planned for bothareas in order to convert the zones into mineablereserves.Blue Quartz is open to both the east and westas well as to depth. Holes to test along bothstrike directions are planned. Several short diamondholes are also intended to intercept around100 metres vertical depth and provide bettergeological information than is available fromreverse circulation samples.At Boston-Porphyry a drill pattern is beingplanned to test the porphyry vein system to theeast and also to test its depth extents more systematically.Masbate is the largest gold project in thePhilippines and was successfully developed withfirst gold poured on May 12, 2009. The projecthas a total indicated resource base of 4.55 millionounces, inferred resource base of 3.22 millionounces and a probable reserve of 3.03ounces.The project is on the island of Masbate about350km south of Manila.CGA Mining is completing a scoping studyfor expansion of the processing plant from thedesigned annual capacity of 4 million tonnes to6.5 million. The plant was constructed byLeighton Asia, which also has the mining contractfor the project.The existing plant is consistently performingabove its design capacity and in May achievedthroughout of 528,940 tonnes, which is equivalentto an annual 6.35 million tonnes.The CIL tanks at CGA Mining’s Masbate Gold Project on MasbateIsland.Re-optimization study completed at DidipioAFTER completing an internal project reoptimizationstudy, OceanaGold is evaluatingstrategic options for the highgradeDidipio porphyry gold-copper project innorthern Luzon to maximize value.The study examined project scope, estimatedcapital and timelines to complete the project,which remains on care and maintenance with areduced workforce at the site.The study has been forwarded to an independentengineering firm for review.Measured and indicated resources at Didipiototal 2.05 million ounces of gold and 280,000tonnes of copper while inferred resources total330,000 ounces of gold and 60,000 tonnes ofcopper.Current gold reserves are 1.65 million ouncesand copper reserves are 190,000 tonnes. Thegold reserve grade is 1.48 grams/tonne and thecopper reserve grade is 0.56%.Studies to date have recommended a future48 - The ASIA Miner - September-October, 2010open pit and then underground operations withinitial processing of 2.5 million tonnes of oreannually.A 15 year mine life has been estimated withannual production of 120,000 ounces of goldand 15,000 tonnes of copper for the first 10years.The company has spent US$80 million todate on the project with the majority of longlead-time items held and 60% of the bulk earthworks completed.OceanaGold is involved in ongoing collaborationwith the Philippines national governmentto ensure that the FTAA and mining permit aremaintained.The FTAA comprises 215sqkm with an additional110sqkm in surrounding exploration permits.The company continues to engage a communityrelations team at the project and is fulfillingall of its social and community commitmentsAn evening view over the processing plant which CGA aims toexpand to an annual capacity of 6.5 million tonnes.during the care and maintenance period.In addition to ongoing financial support forthe Didipio Community DevelopmentAssociation, OceanaGold hosted three medicalmissions in remote parts of Quirino and NuevaVizcaya provinces. More than 1200 patientswere treated or administered with free medicineduring these missions.It is also involved in the new Food Always inthe Home (FAITH) project which aims to introducevegetable production through backyardgardening.OceanaGold has two operating gold projectsin New Zealand, Macraes and Reefton, andrecently became an NZ$1 billion-plus companyfollowing its inclusion on two international ratingindexes.Rating agency Standard & Poor’s includedthe gold miner on its separate S&P TSX GlobalGold Index and S&P TSX Global MiningIndex.

www.asiaminer.comPapua New GuineaGold Anomaly buys out Fergusson Island partnersGOLDCrater Mountain is in PNG’s Central Highlands.Anomaly is acquiring 100%of the Fergusson Island GoldProject after executing an agreementwith its project partners Yamana andBacTech.Subject to Papua New Guinea authoritiesgranting an extension to April 2012 forcompletion of a bankable feasibility study(BFS), the agreement will result in Yamanabecoming a shareholder in Gold Anomaly.In return for selling 33% of the project,Yamana will receive shares in GoldAnomaly equivalent to a 2% stake.All parties agree that Gold Anomalyowning 100% of the Fergusson Islandproject is the best corporate structure toadvance the project due to its larger presenceand technical expertise in PNG followingthe takeover of AnomalyResources in 2009.Gold Anomaly will undertake the BFSand will complete the infill drilling programs,and all other evaluations asrequired. BacTech will provide its specialistmetallurgical services to undertake thebacterial leach component of the BFS.Fergusson Island is at the eastern end ofthe Papua New Guinea mainland and thereis potential for a resource of about 1 millionounces.At Gold Anomaly’s Crater MountainGold Project in PNG’s Central Highlandsbenching and sampling work is continuing.From the top camp roughly sub-horizontalbenches are being cut southwards throughthe Nevera prospect on both sides of theridge.The first bench in this area is on thewestern slopes cutting through the broadhematite cap area which lies largely on thewestern flank of the ridge and encompassesthe artisanal gold mining area.Benching is also progressing throughthe ‘cliff zone’ in the upper reaches of themining area creek where previous continuouschannel sampling returned goodassays of 54 metres @ 1.21 grams/tonnegold, including 30 metres @ 1.95grams/tonne.On the east side of the ridge a bench isbeing cut from the top camp between anumber of previous drill holes and includingthe old ridge top camp area, towardsthe Maviana Creek headwaters.Geological mapping and sampling areproceeding. Because of the massive,altered, jointed and fractured nature of theunderlying deeply weathered feldspar porphyry,sampling is mostly in continuous 5metre channels averaging 8kg to 12kg persample, which when completed are beingdried ready to transport for assaying.Near surface artisanal mining has beencarried out since 2005. The artisanalunderground mining has recently been shutdown by government authorities.Gold Anomaly will investigate developingits own mining operation after completionof the current road works and benchingprogram.The ASIA Miner - September-October, 2010 - 49

Papua New Guinea50 - The ASIA Miner - September-October, 2010AMAJOR geophysical, geochemical andgeological exploration program atFrontier Resources’ Andewa Gold Proj -ect on the island of New Britain is progressingwell.The goal of the program is to demonstrate amajor gold mineralized system at Andewa, producingnew and systematically defined, highquality trenching and drilling targets in multipleprospect areas.Andewa is near the north coast of the islandand Frontier believes the project has excellentpotential to yield significant gold mineralization.Rocks within the 9km wide crater show evidenceof significant hydrothermal alterationwith five high-level gold prospects demonstratedwithin a 7km by 2.5km structural zone.An assessment carried out as part of the currentexploration program has shown geologicaland mineralization similarities to the RoundMountain gold deposit in Nevada, USA, wheremore than 11 million ounces of gold has beenproduced.At Round Mountain the gold occurs on therim of an ancient collapsed crater/caldera and ismainly fine-grained with visible gold occurringin structural intersections.The known gold mineralization at Andewa iscontrolled by steeply dipping structures, structuralintersections and possibly also low dippingfavourable rock units.Subject to the 2010 program results, the companyis planning an extensive drilling programfor 2011.As part of the current program a very largegrid of about 18sqkm is being surveyed and cutfor the geophysical and geochemical programs.www.asiaminer.comNautilus study outlinesplans for productionAN independent definition and coststudy for Nautilus Minerals’ proposedoffshore production system in the territorialwaters of Papua New Guinea estimates itwill take 30 months to build the system andbegin commercial production.The study provides definition and cost estimatesto extract material from the seafloormineral resources at the company's Solwara 1site, to raise it to the support vessel, de-water itand deliver it to the port of Rabaul in PNG.The study concludes that the capital cost forthe offshore production system, includingbarging to Rabaul, is estimated to be US$383million. It also concludes that the average operatingcosts up to the port of Rabaul are estimatedto be US$70 per tonne, including a 10%contingency, based on annual production of1.35 million tonnes.It indicates production beginning an annualrate of 1.2 million tonnes (dry equivalent) butnotes that the offshore production system willhave capacity to ramp up to 1.8 million tonnes.Subject to securing adequate financing toadvance the project through to commercialproduction, approval of the Nautilus Board isexpected to be received later this year.Nautilus does not intend to complete a formalfeasibility study or define a large, long-liferesource or reserve before it proceeds with thecompletion of the equipment build and start ofproduction at Solwara 1.Management considers the company's bestinterests are served by first demonstrating thatexisting offshore technologies can be adaptedto cut and recover high grade seafloor massivesulphides from the deep ocean.Nautilus' CEO Stephen Rogers says, “Thestudy was completed to provide cost guidanceand project definition. The work contains theresults of over five years of engineering, testingand mine planning. Our estimated operatingcosts are competitive with the operatingcosts for existing deep underground mines.“However, one of our great advantages overland-based mining is that the equipment usedin our offshore production system is mobile,allowing production at successive sites withoutsignificant additional capital investment.”Nautilus has signed a contract with theTSMarine Group of Companies to providedrilling services starting in October 2010. Thedrilling program will focus on improving theresource and geotechnical understanding atSolwara 1 as well as scout drilling at otherprospects in the Bismarck Sea.TSMarine will provide the vessel, operatingcrew, remotely operated vehicles and drillingequipment. The contract has a minimum valueof about US$7 million, with options to extendbased on success. TSMarine will use Rovdrill3, a second generation seafloor drilling system,with the ability to drill 70mm core wirelineholes up to 80 metres deep.TOP LEFT: Checking core samples fromthe Solwara 1.LEFT: The Rovdrill 3 seafloor drilling systemto be used by TSMarine.Photos courtesy of Nautilus Minerals.Major exploration program at AndewaSoil and rock geochemical sampling is continuingand the first group of 450 samples hasbeen dispatched to the laboratory. About 3000samples are expected.A very large 3D induced polarization (IP)geophysical survey is also progressing and it isanticipated to take until the end of September tocomplete the gridded area. A ground magneticsurvey will be undertaken concurrent with andsubsequent to the 3D IP.When finalized this data will allow a comprehensivegeological, geochemical and geophysicalassessment of the Andewa gold mineralizedsystem and will define high-quality, coherentand coincident anomalies for further evaluation.Frontier has concentrated mostly on theKomsen prospect, leaving four additionalprospects and other large potentially mineralizedareas still to be systematically explored.

www.asiaminer.comDIAMOND drilling at MarengoMining’s Yandera Copper-Moly -bdenum-Gold Project has confirmedsignificant extensions to the large porphyrycopper systems at depth.Excellent assay results have been receivedfrom the first 984 metre vertical diamonddrill hole at the Imbruminda Zone, which isthe north-western zone within the YanderaCentral Porphyry system.The hole intersected 981 metres @ 0.23%copper and 152ppm molybdenum, including207 metres @ 0.51% copper and 118ppmmolybdenum. The hole finished in a highgradezone of 29.7 metres @ 0.49% copper,699ppm molybdenum, 0.15 grams/tonnegold and 2.59 grams/tonne silver. Elevatedgold values occur within broad sections ofthe hole, however no clear geological associationhas yet been recognized.The general geology at depth is consistentwith previous shallower drilling in theresource zone and the mineralization can reasonablybe expected to continue beyond thebottom of the hole, where the mineralizationremains open.Further systematic drilling to the northwestis planned. This area has not previouslybeen drilled.A second deep drill hole is in progress atthe Gremi Zone, immediately south-east ofImbruminda, with a target depth of 1000metres. Although not completed it has intersectedsections of copper mineralizationbelow the current resource. The hole isbeneath the 780 metre depth and is drilling indisseminated copper (bornite) mineralization.In addition to the ongoing deep hole program,four other diamond drill rigs continueto operate within the Yandera CentralPorphyry. This program is concentrating ondefining lateral extensions of the mineralizedzones and, where practicable, upgradingresource classifications.Marengo’s managing director Les Emerysays, “These are very significant results forYandera. The deep drilling pattern has beensuccessful in confirming that this large-scaleporphyry system extends for considerabledepths, at least to 1km.“This gives us confidence in the potentialto increase the resource inventory at Yandera,which would elevate the project in its rankingsas one of the more significant copperand molybdenum deposits within the AsiaPacific region.“We are looking forward to continuingresults from the deep drilling program and toan updated JORC-compliant resource estimate,which will be fed into the DFS.”The Yandera DFS, which is scheduled forcompletion by the end of 2010, is based on anopen-pit mining operation initially processing25 million tonnes each year with thepotential to increase to an annual long-termrate of 50 million tonnes.Papua New GuineaDrilling confirms Yandera extensionsSome of the happy young locals at Yandera.Photo by Les Emery, Marengo MiningThe ASIA Miner - September-October, 2010 - 51

AMEC Congress - Perth, Western Australiawww.asiaminer.comMultipro IT manager MichelleHarrison, SNC Lavalin processand engineering manager MikeWardfell-Johnson and managingdirector Mark Jackson.Cube Consulting was representedby business development consultantRonan Bray and senior businessdevelopment consultantLevin Lee.Attending the AMEC Congress in Perth recently, from left,McMullen Nolan business development manager Gary Allen,Landgate account manager Mary Manov and McMullen Nolanengineer Bas Kuckelkorn.SMEC contaminated land principal Rob Dobinson, Perenia managerTiffany Thomson and business development general managerGraeme Saunders with Dynasty Metals Australia executivedirector Lewis Tay.Reed Resources investor relations Simon Hicks, PortableAnalytical Solutions managing director Paul Martin and PortableAnalytical Solutions sales manager Simon Bailey.The team from Polycom Australia, from left, Ellie Harris ofaccounts, marketing executive Dalya Robertson, regional salesmanager Chris Boardman and solutions consultant Irwin Davis.Investor James Horburgh, CFCL Australia business developmentmanager Garry Hall and Australia Bauxite Ltd CEO Ian Levy.Industrial management solutions managing The team from Silverlake Resources at thedirector Bruce Cameron, Asphar Survey AMEC Congress, from left, chief financialbusiness dev elopement manager Roy officer Peter Armstrong, managing directorJustice with managing director Anthony Les Davis and exploration and geologyAsphar.director Chris Banasik.52 - The ASIA Miner - September-October, 2010The team from Silverlake Resources wereassisted by executive administrator SallyCoxon, business development managerGeoff Chapman and Monica Seah ofaccounts.

www.asiaminer.comNew Spitfire tenementsCONFIDENCE in SpitfireResources manganese pros -pects in Western Australia isincreasing with the acquisition oftwo additional tenements and aSingapore-based company acquiringan 8.37% stake in the company.Spitfire succeeded in a ballot todetermine competing applicationsfor two additional prospective manganeseexploration tenements adjacentto its existing tenure at SouthWoodie Woodie in the East Pilbara.The 107sqkm and 87sqkm tenementsare down-strike to the southof the world-class Woodie Woodiemine with the northernmost tenement50km south of this mine.The tenements were secured as aresult of the partial surrender of theground by Consolidated Minerals,operator of Woodie Woodie. Thetenements increase Spitfire’s totalground holding at South WoodieWoodie to 1749sqkm.Spitfire’s executive chairmanJames Hamilton says, “This isanother strategic addition to ourEast Pilbara tenement portfolio foll -owing our success in April in securinga highly prospective 111sqkmtenement north of the NicholasDowns Manganese Mine.“South Woodie Woodie is ourcore area of focus and we are verypleased that we have been so successfulin expanding our tenure in ahighly competitive environment.“Preliminary work includingregional mapping is planned to startupon granting to generate an initialround of targets on the new tenements.”Singapore-based Prosperity SteelUnited Singapore has acquired the8.37% interest through on-marketpurchases and by participating inSpitfire’s $1.82 million share placement.Prosperity Steel was establishedin Singapore in June 2003 and is atrading company focusing on theimport-export trade of ores, steels,pig iron, ferro-alloys, scrap steelsand equipment for steel mills. It hasstrong connections with major oretrading groups and steel mills inChina.From discussions with ProsperitySteel, Spitfire understands that itsinvestment is based on its positiveview of the exploration potential ofthe South Woodie Woodie projectand the strong global outlook forthe manganese ore and ferro-alloysmarket.Spitfire has completed the firstphase of its 2010 exploration prog -ram at South Woodie Woodie andhas been assessing results to generatefollow-up drilling targets to bepursued in the next few months.There were 19 RC holes drilledacross 15 geophysical and geologicaltarget areas for a total of 2027metres. Eleven of 19 holes havebeen analyzed for manganese content.The targets are on the sametenement that hosts Tally-Hodeposit.Spitfire 获 得 了 两 个 新 矿 权 地Spitfire 资 源 公 司 获 得 了 两 个 新 矿 权 地 , 并 被 一 个 新 加 坡 公 司 收 购 了8.37% 的 股 份 , 使 公 司 对 其 位 于 西 澳 大 利 亚 州 的 锰 矿 项 目 信 心 大 增。 在 对 这 两 个 锰 勘 探 矿 权 地 竞 争 申 请 的 公 开 选 举 中 ,Spitfire 公 司 获胜 , 这 两 个 矿 权 地 紧 邻 Spitfire 位 于 东 皮 尔 巴 拉 地 区 的 南 乌 第 乌 第 锰矿 。这 两 个 占 地 分 别 为 107 平 方 公 里 和 87 平 方 公 里 的 矿 权 地 在 乌 第 乌 第世 界 级 锰 矿 南 部 往 南 的 位 置 , 最 北 面 的 矿 权 地 距 离 乌 第 乌 第 矿 南 部仅 50 公 里 。Spitfire 能 够 获 得 的 这 两 个 矿 权 地 是 因 为 联 合 矿 产 公 司 部分 放 弃 了 该 勘 探 领 域 , 联 合 矿 产 是 乌 第 乌 第 矿 的 运 营 商 。新 矿 权 地 的 获 得 使 Spitfire 位 于 南 乌 第 乌 第 的 总 土 地 所 有 面 积 增 加 至1749 平 方 公 里 。Spitfire 的 首 席 执 行 官 James Hamilton 称 ,“ 这 是 我 们在 四 月 份 成 功 获 得 了 一 个 极 具 前 景 的 、 占 地 111 平 方 公 里 、 位 于 尼古 拉 斯 • 道 恩 斯 锰 矿 北 部 的 矿 权 地 后 , 除 了 东 皮 尔 巴 拉 地 区 的 矿 权地 组 合 外 的 另 外 一 个 战 略 性 的 增 加 。”“ 南 乌 第 乌 第 是 我 们 关 注 的 核 心 区 域 , 我 们 非 常 高 兴 可 以 在 竞 争 激烈 的 环 境 下 , 一 直 成 功 的 进 行 矿 权 地 扩 展 。 包 括 区 域 绘 图 在 内 的 初期 工 作 计 划 在 新 矿 权 地 初 期 靶 区 确 定 后 开 始 。”总 部 在 新 加 坡 的 繁 荣 钢 铁 联 合 新 加 坡 公 司 通 过 市 场 购 买 和 参 与Spitfire 向 战 略 性 和 精 明 的 投 资 者 配 股 182 万 澳 元 的 活 动 获 得 了 8.37%的 股 份 。繁 荣 钢 铁 公 司 2003 年 6 月 份 成 立 于 新 加 坡 , 是 一 家 贸 易 公 司 , 主 要从 事 矿 石 、 钢 铁 、 生 铁 、 铁 合 金 、 废 钢 材 和 钢 铁 厂 设 备 进 出 口 的 业务 。 公 司 与 中 国 大 陆 的 主 要 矿 石 贸 易 集 团 和 钢 铁 厂 联 系 密 切 。通 过 与 繁 荣 钢 铁 的 讨 论 ,Spitfire 了 解 到 繁 荣 钢 铁 的 投 资 主 要 是 基 于对 南 乌 第 乌 第 锰 矿 项 目 勘 探 潜 力 持 有 的 乐 观 态 度 以 及 对 全 球 锰 矿 石和 铁 合 金 市 场 的 展 望 。Spitfire 已 经 完 成 了 南 乌 第 乌 第 2010 年 勘 探 计 划 的 第 一 阶 段 , 并 且 已经 对 勘 探 结 果 进 行 了 评 估 , 以 确 定 将 在 未 来 几 个 月 着 手 的 后 续 勘 探靶 区 。 共 有 19 个 反 循 环 钻 孔 , 覆 盖 了 15 个 地 球 物 理 和 地 质 靶 区 , 共钻 进 2027 米 。 已 经 对 19 个 钻 孔 中 的 11 个 完 成 了 锰 含 量 分 析 。 这 些 靶区 位 于 同 一 个 矿 权 地 , Tally-Ho 矿 床 也 属 于 该 矿 权 地 。AustraliaThe ASIA Miner - September-October, 2010 - 53

AustraliaAS part of its ongoing definitive feasibilitystudy (DFS) into mining the Hera GoldProject in western New South Wales YTCResources has announced an increase in resourcetonnage from 1.78 million tonnes to 2.18 million.Completion of an estimate has also resulted ina significant upgrade in resource confidence withabout 70% of resources now in the indicated categoryand available for potential conversion tomining reserves.There are now 1.584 million indicated tonnes@ 4.1 grams/tonne gold, 14.7 grams/tonne silver,2.7% lead, 3.5% zinc and 0.2% copper, and596,000 inferred tonnes @ 3.7 grams/tonne gold,18.0 grams/tonne silver, 2.8% lead, 5.0% zincand 0.1% copper. Total contained gold equivalentounces are 560,710.The estimate reflects only specific lenses of thedeposit – Main Lens, Hay Lens and Far West lens– which have been drilled in sufficient detail.Additional mineralized lenses have beenencountered and will also be incorporated intofuture resource updates.Hera is 100km south-east of the town of Cobarand is hosted in Cobar Basin rocks which alsohost mineral deposits at CSA, The Peak andEndeavour.YTC Resources’ parent company and majorshareholder is China’s Yunnan Tin Group, whichhas a 25.75% stake.YTC considers that the Hera resource estimatewill grow as further definition drilling is carriedout and the company remains committed to continuingits regional exploration campaign to identifyfurther mineralization along strike of Hera.Recent RC drill results have identified shallow,high-grade gold mineralization which remainsopen in a northerly plunge direction, indicatingpotential for an increase in the defined resource.In addition results have been received for aBanpu buys Centennial CoalCENTENNIALWales energy industry. It has reserves of400 million tonnes and produced about15 million tonnes in 2009.Banpu is Indonesia's fourth-largestcoal miner with five mines and has threemines in China. It has coal reserves ofabout 300 million tonnes in Indonesia.Banpu’s chief executive ChaninVongkusolit says the transaction representsa unique opportunity for all stakeholdersas Banpu continues its strategyof boosting supply to feed Thailand’sconsumption needs.He says Banpu is excited to haveexposure to Australia’s coal sector andbelieves the acquisition is the initial stepin driving further consolidation of thesector.“Banpu’s offer has regard toCentennial’s strategy of supplyingdomestic and export markets as well asits expansion and development plans.”Banpu has indicated its intention tomaintain current operations and employees.As well as its existing operations atAirly, Angus Place, Charbon, Clarence,Springvale and Ivanhoe North in theWestern fields, and Awaba, Mandalong,Mannering and Myuna in the Northernfields, Centennial has a number of proj-Coal has accepteda cash offer from Thailand’sbiggest coal producer Banpuwhich values the New South Wales coalminer at around Aus$2.4 billion.Banpu offered $6.20 a share for the80% of Centennial that it did not alreadyown with this price being a 40% premiumto the company’s closing price onthe last trading day before the offer wasmade. It also represents a 55% premiumto the closing price on May 5, 2010,which was the day before Banpuannounced it had acquired 14.9% of theshares.The offer, which was accepted byCentennial’s Board, coincided with therevised mining tax proposal put forwardby Australia’s Prime Minister JuliaGillard. It is believed that uncertaintycreated by the original tax proposal hadprevented Banpu from making the offerearlier.Established in 1989, Centennial is acoal mining and marketing companysupplying thermal and coking coal to thedomestic and export markets. It is basedin New South Wales with operations inthe Western and Northern coalfields.The company sells about 30-35% ofits coal into the export market and is amajor fuel supplier to the New South ects in the pipeline.54 - The ASIA Miner - September-October, 2010www.asiaminer.comIncrease in resource tonnage at HeraHera 金 矿 项 目 资 源 吨 位 数 增 加作 为 位 于 新 南 威 尔 士 州 西 部 的 Hera 金 矿 项 目 开 采 可 行 性 研 究 的 一 部分 ,YTC 资 源 公 司 宣 布 其 资 源 吨 位 由 178 万 吨 增 长 到 218 万 吨 。已 完 成 的 评 估 也 表 明 了 对 资 源 信 心 的 大 大 提 升 , 现 有 范 围 内 约 70%的 资 源 属 于 控 制 资 源 , 并 可 能 转 化 为 矿 产 储 备 。现 有 158.4 万 吨 控 制 资 源 , 其 中 黄 金 品 位 4.1 克 / 吨 , 银 品 位 14.7 克 / 吨, 铅 品 位 2.7 克 / 吨 , 锌 品 位 3.5%, 铜 品 位 0.2%; 推 断 资 源 量 为 59.6万 吨 , 其 中 黄 金 品 位 3.7 克 / 吨 , 银 品 位 18.0 克 / 吨 , 铅 品 位 2.8%, 锌品 位 5.0%, 铜 品 位 0.1%。 黄 金 等 价 物 资 源 量 总 共 为 560,710 盎 司 。此 次 评 估 反 映 出 了 矿 床 特 定 的 透 镜 状 矿 体 -Main Lens,Hay Lens 和Far West Lens, 这 些 都 已 经 被 深 入 钻 探 过 。 新 发 现 的 透 镜 状 矿 体 也将 并 入 到 将 来 的 资 源 更 新 中 。Hera 位 于 科 巴 镇 东 南 100 公 里 处 , 坐 落 于 科 巴 盆 地 的 岩 石 中 , 此 处还 有 CSA 矿 床 。YTC 资 源 的 母 公 司 和 主 要 股 东 是 中 国 的 云 南 锡 业 集团 , 其 股 份 为 25.75%。hole about 180 metres north of the currentresource which returned 2 metres @ 0.13grams/tonne gold, 50 grams/tonne silver, 6.5%lead and 14.2% zinc from 623 metres.Exploration drilling to test targets along strikefrom Hera is under way and the company is finalizingthe details of an expanded regional explorationprogram.YTC’s CEO Rimas Karaitas says, “YTC ispleased to have finalized a resource estimation aspart of the DFS. A global resource of more than560,000 ounce gold equivalent at a gold equivalentgrade of 8.0 grams/tonne provides a robustresource base to proceed to completion of theDFS mining studies.“YTC is also very confident it will continue toadd to this resource as it expands explorationaround the Hera resource and includes additionalmineralized lenses such as 1530 lens and thewestern lead-zinc lens.”YTC 认 为 Hera 资 源 的 评 估 将 在 进 一 步 的 资 源 定 量 钻 探 之 后 有 所 发 展, 公 司 仍 决 定 继 续 进 行 局 部 勘 探 活 动 以 便 进 一 步 确 定 Hera 矿 化 区 的走 向 。近 期 的 反 循 环 钻 探 结 果 确 定 了 浅 层 高 品 位 的 黄 金 矿 化 区 , 该 矿 化 区向 北 延 伸 , 表 明 了 已 确 定 资 源 进 一 步 增 长 的 可 能 性 。另 外 , 当 前 资 源 北 部 约 180 米 处 得 到 的 钻 孔 结 果 为 :623 米 处 见 矿 2米 , 金 品 位 为 0.13 克 / 吨 , 银 品 位 为 50 克 / 吨 , 铅 品 位 为 6.5%, 锌 品位 为 14.2%。用 以 测 试 沿 Hera 走 向 的 靶 区 的 钻 探 活 动 正 在 进 行 中 , 公 司 正 在 最 后落 实 扩 展 的 区 域 勘 探 活 动 的 细 节 。YTC 的 首 席 执 行 官 Rimas Karaitas 说 ,“YTC 对 可 行 性 研 究 中 资 源 评估 的 最 后 定 案 很 满 意 。 全 球 超 过 56 万 盎 司 、 黄 金 等 价 物 品 位 为 8.0 克/ 吨 的 黄 金 等 价 物 资 源 量 为 继 续 完 成 开 采 的 可 行 性 研 究 提 供 了 坚 实的 资 源 基 础 。”“YTC 确 信 在 Hera 资 源 附 近 扩 大 勘 探 、 并 将 另 外 的 透 镜 状 矿 体 , 如1530 矿 体 和 西 部 铅 锌 矿 体 并 入 , 会 继 续 增 加 公 司 的 资 源 量 。”万 浦 收 购 了 Centennial 煤 炭 公 司澳 大 利 亚 Centennial 煤 炭 公 司 已 经 接 受 了 泰 国 最 大 的 煤 炭 生产 商 万 浦 集 团 斥 资 约 24 亿 澳 元 收 购 这 个 新 南 威 尔 士 州 煤 炭开 采 商 的 提 议 。万 浦 以 每 股 6.2 澳 元 的 价 格 收 购 其 尚 不 拥 有 的 80% 的Centennial 股 权 , 每 股 收 购 价 比 公 司 在 接 受 收 购 前 的 最 后一 个 交 易 日 的 收 盘 价 高 出 40%。 而 且 同 万 浦 宣 布 买 下 了Centennial 煤 炭 公 司 14.9% 股 权 的 前 一 天 , 即 2010 年 5 月 5 日的 收 盘 价 相 比 , 溢 价 幅 度 达 55%。Centennial 的 董 事 会 接 受此 次 收 购 提 议 时 , 恰 逢 澳 大 利 亚 新 总 理 Julia Gillard 提 出 修正 采 矿 税 提 议 。 据 称 , 早 些 时 候 提 出 的 资 源 利 润 税 阻 碍 了万 浦 的 收 购 计 划 。Centennial 成 立 于 1989 年 , 是 一 个 煤 炭 开 采 和 销 售 公 司 , 向海 内 外 供 应 热 煤 和 炼 焦 煤 。 总 部 设 在 新 南 威 尔 士 州 , 在 西部 和 北 部 煤 田 都 有 业 务 运 营 。Centennial 将 生 产 的 约 30 - 35% 的 煤 炭 用 于 出 口 , 是 新 南 威 尔 士 州 能 源 业 的 主 要 燃 料 供应 商 。 拥 有 4 亿 吨 煤 炭 储 备 ,2009 年 年 产 量 约 为 1500 万 吨 。万 浦 是 印 度 尼 西 亚 的 第 四 大 煤 炭 开 采 商 , 拥 有 5 个 矿 山 , 其中 三 个 在 中 国 。 在 印 度 尼 西 亚 拥 有 约 3 亿 吨 的 煤 炭 储 备 。 万浦 的 首 席 执 行 官 Chanin Vongkusolit 称 , 对 所 有 的 股 东 来 说, 此 次 交 易 是 一 个 独 一 无 二 的 机 遇 , 使 万 浦 可 以 继 续 保 持扩 大 供 应 以 满 足 泰 国 消 费 需 求 的 战 略 。他 说 , 我 们 非 常 高 兴 可 以 有 这 个 机 会 在 澳 大 利 亚 的 煤 炭 领域 展 露 自 己 , 我 们 相 信 此 次 收 购 是 驱 动 该 领 域 进 一 步 整 合的 第 一 步 。“ 万 浦 的 收 购 提 议 与 Centennial 向 海 内 外 供 应 煤炭 的 策 略 及 万 浦 自 身 扩 产 和 发 展 的 计 划 有 关 。”万 浦 表 明 了 继 续 保 持 现 有 运 营 并 保 留 当 前 职 工 的 打 算 。Centennial 现 有 的 业 务 运 营 包 括 位 于 西 部 煤 田 的 Airly、Angus Place、Charbon、 Clarence,、Springvale 和 IvanhoeNorth, 以 及 位 于 北 部 煤 田 的 Awaba、 Mandalong、Mannering 和 Myuna, 除 此 之 外 , 公 司 还 有 许 多 处 于 准 备 之中 的 项 目 。

www.asiaminer.com合 资 开 发 Columboola 煤 炭 地 块都 市 煤 炭 公 司 (MetroCoal) 已 经 与 中 煤 进 出 口 公 司 (CCIEC) 签 署 了 合 资 协 议 , 包 括 其 位 于 昆 士 兰 州 苏 拉 特 盆地 的 Columboola 矿 权 地 。中 煤 进 出 口 公 司 , 是 中 国 中 煤 集 团 能 源 公 司 ( 中 煤 ) 的 全资 子 公 司 , 旨 在 支 出 承 诺 的 3000 万 澳 元 , 获 得 Columboola地 块 51% 的 煤 炭 勘 探 权 。都 市 煤 炭 公 司 将 利 用 这 笔 资 金 来 勘 测 和 重 新 评 估Columboola 地 块 的 未 来 潜 在 商 业 可 行 性 , 也 为 公 司 其 他 的地 块 创 造 机 会 。 根 据 该 协 议 , 最 初 两 年 内 的 最 少 支 付 金 额为 400 万 澳 元 。都 市 煤 炭 的 总 裁 David Barwick 称 ,“ 成 为 中 煤 进 出 口 公 司 的合 资 合 作 伙 伴 对 于 我 们 来 说 , 是 个 意 义 重 大 的 里 程 碑 , 满足 了 公 司 与 重 量 级 合 作 伙 伴 共 同 开 发 项 目 的 战 略 目 标 , 以及 将 勘 探 目 标 定 义 为 25-35 亿 吨 的 总 体 战 略 目 标 。”公 司 的 首 席 执 行 官 Mike O’Brien 称 ,“ 中 煤 是 一 个 规 模 庞 大的 煤 炭 公 司 , 年 产 煤 超 过 1 亿 吨 。 有 这 个 大 型 的 矿 业 公 司 支持 , 中 煤 进 出 口 公 司 将 为 合 资 公 司 带 来 宝 贵 的 技 术 技 能 和专 业 知 识 , 特 别 是 对 地 下 煤 矿 开 采 。 双 方 之 间 的 讨 论 已 经进 行 了 一 段 时 间 , 在 此 期 间 内 , 我 们 已 经 与 中 煤 进 出 口 公司 的 高 管 建 立 了 良 好 的 关 系 , 这 将 为 我 们 将 来 关 系 的 发 展奠 定 一 个 基 础 。”“ 在 工 作 计 划 方 面 ,Columboola 合 资 公 司 将 继 续 在 该 地 块 进行 初 期 勘 探 活 动 , 另 外 , 在 该 勘 探 活 动 获 得 成 功 的 前 提 下, 将 推 进 开 发 计 划 , 以 勘 探 地 下 可 观 的 煤 炭 资 产 。 中 煤 进出 口 公 司 的 总 经 理 胡 博 士 称 ,“ 公 司 很 高 兴 有 机 会 与 都 市 煤炭 在 这 样 一 个 极 具 开 采 价 值 的 地 块 上 建 立 合 资 合 作 关 系 ,该 地 块 位 于 昆 士 兰 州 首 要 煤 炭 产 区 之 一 。 这 个 煤 炭 地 块 为我 们 提 供 了 获 取 重 要 资 源 和 未 来 热 煤 供 应 基 地 的 机 会 , 并且 还 为 我 们 赢 得 了 一 个 新 的 合 资 合 作 伙 伴 共 同 开 发 苏 拉 特盆 地 的 项 目 。”“ 随 着 我 们 与 都 市 煤 炭 公 司 合 资 协 议 的 执 行 , 我 们 期 望 与 澳大 利 亚 合 资 合 作 伙 伴 一 起 最 大 限 度 的 利 用 当 前 的 这 个 机 遇以 及 未 来 可 能 发 生 的 机 遇 。”该 交 易 获 得 了 澳 大 利 亚 外 商 投 资 审 核 委 员 会 的 批 准 , 但 是有 些 方 面 也 必 须 要 得 到 许 多 中 国 政 府 机 构 的 批 准 , 其 中 包括 澳 大 利 亚 分 公 司 的 设 立 , 以 及 3000 万 澳 元 资 金 向 澳 大 利亚 分 公 司 转 入 。 都 市 煤 炭 拥 有 广 泛 的 煤 炭 地 块 , 覆 盖 苏 拉特 盆 地 约 4000 平 方 公 里 。AustraliaJoint venture for ColumboolaMETROCOALhas signed a jointventure agreement with ChinaCoal Import & Export Company(CCIEC) covering its Columboola tenementin Queensland’s Surat Basin.CCIEC, a subsidiary of China NationalCoal Group Corp (China Coal), aims toacquire a 51% interest in the tenement for anagreed expenditure commitment of Aus$30million.The funds will be used for exploring andevaluating the potential for future commercializationoptions within the Columboolatenement and also opens up the opportunityfor participation in MetroCoal’s other tenements.The agreement requires a minimumexpenditure of $4 million in the first twoyears.MetroCoal’s chairman David Barwicksays, “Bringing CCIEC in as a joint venturepartner is a significant milestone for thecompany, meeting its stated strategic objectiveof developing projects with substantialpartners as well as complementing its overallstrategy to confirm its exploration targetof between 2.5 and 3.5 billion tonnes.The company’s CEO Mike O’Brien says,“China Coal is a substantial company producingin excess of 100 million tonnes ofcoal a year. With access to this strong miningbase CCIEC will bring valuable technicalskill and expertise into the joint venture, particularlyin underground coal mining.“Discussions have been ongoing for sometime and in this period we have developed agood relationship with CCIEC executivesthat will provide a constructive base for ourfuture relationship.“In terms of the work program theColumboola joint venture will continue theinitial exploration activities in the tenementand, subject to the success of this program,advance the development plans to exploitsignificant underground coal assets.”CCIEC’s managing director Dr Hu says,“The company welcomes the opportunity tojoint venture with MetroCoal on such apromising tenement in one of Queensland’spremier coal producing regions.“The tenement presents a significantopportunity to confirm a major resource andfuture thermal coal supply base as well asproviding us with a new partner with whichto build our exposure to the Surat Basin.“Following the execution of our joint ventureagreement with MetroCoal we look forwardto working with our Australian jointventure partner to maximize this opportunityand future opportunities which may arise.”The transaction has been approved byAustralia’s Foreign Investment ReviewBoard but is subject to approvals from anumber of Chinese Government agencieswhich will include the setting up of anAustralian subsidiary company and thetransfer of the $30 million in funds to theAustralian subsidiary company.MetroCoal holds extensive coal tenementscovering about 4000sqkm throughout theSurat Basin.The ASIA Miner - September-October, 2010 - 55

Australian Resources China Investment 2010 - Adelaidewww.asiaminer.comErnst and Young tax partnerSean Van der Lindenand Deloitte partner corporatefinance Adrian O’Deaat ARCI 2010.Ernst and Young transactionadvisory servicesassociate director JamesWear and Reserve Bankof Australia senior representativeDavid Norman.Wugang Australian Resources Invest -ment managing director Dr GeorgeGuo, Northern Territory Govt Dept ofResources senior China busin essadviser Guan Hua Gao and NorthernTerritory Govt Dept of Resources tradedevelopment director Adam Cunneen.G Resources Group business developmentmanager Craig Parry, DiaoGroup assistant president, vice generalmanager and chairman of theboard Li Yi and general managerassistant Xiao Yang.Archer Exploration’s exploration managerWade Bollenhagen, Archer Exploration’sCEO Mike Hatcher and Golden CrossResources’ managing director KimStanton-Cook.Copper Hill plans continueGOLDENCross Resources is proceedingwith plans to establish amining operation at the Copper Hillporphyry copper-gold deposit at Molong incentral New South Wales and is beingassisted by several Chinese companies.Golden Cross has formed a strategicalliance with China United Mining Invest -ment Corporation (CUMIC) subsidiary HQMining Resources, providing access to capitaland mining and processing equipmentfrom China.It also has a consulting agreement withChina National Automation Control SystemCorp (CACS) to begin a bankable feasibilitystudy (BFS). CACS, which is part ofChina National Machinery and Equip mentCorp (Sinomach Group), has appointedChina Nerin Engineering to assist.CACS is on schedule to complete theeconomic justification for proceeding to afull BFS in January 2011. Within a monthof delivery of the justification Golden Crosscan choose to proceed and instruct CACS toprepare the feasibility study, which is deliverablein February 2012.If a positive BFS is received and GoldenCross has all necessary approvals in place,CACS will submit the feasibility study toChinese financiers to provide the bulk ofthe finance required to build the project,hopefully in the first quarter of 2012.Project modelling predicts a mine life of20 years with potential annual average productionof 16,000 tonnes of copper and56 - The ASIA Miner - September-October, 2010South Australia Primary Industries & Res our c -es department minerals information and prom -otion manager Andrew Rowett, PACE managerMiles Davies, Pace marketing staffer TaniaDavies, resources and infrastructure deputychief executive Dr Paul Heithersay and conferencecoordinator Anne Marie Williamson.55,000 ounces of gold.Golden Cross has appointed a senior consultingmining engineer to assist in minedesign and ensure design compliance byChinese engineers. It has also appointedtwo senior metallurgical consultants tooversee test work and compliance withAustralian standards for roaster design, acidproduction, SX-EW copper production andCIP/CIL gold recovery.Geotechnical consultants have beenappointed for foundation testing, pit wallstability and tailings dam embankmentplanning. The company has called for tendersand will shortly appoint an environmentaland hydrology consultant.New drilling results have potential to addto Copper Hill’s existing mineral resource.Fifteen holes have been drilled this yearcomprising 2689 metres of RC percussionand 1213.5 metres of HQ coring. Betterintercepts included 34 metres @ 0.24%copper and 0.21 grams/tonne gold from 251metres, 18 metres @ 0.295 copper and 0.25grams/tonne gold from 0 metres, 24 metres@ 0.35% copper and 0.13 grams/tonne goldfrom 380 metres and 20 metres @ 0.46grams/tonne gold from 154 metres.A number of intercepts confirm the trendtowards a larger system at depth previouslysuggested by limited deep drilling. Theresults have potential to increase the res ou -r ce tonnage at similar grades to the currentJORC resource of 133 million tonnes @0.31% copper and 0.28 grams/tonne gold.Apollo managing director GenevieveRiviere, Tianjin Eagle engineer Mr Liang,Tianjin Eagle board chairman Youyi Zheng,South Australia Government special envoyto China Prof Alfred Huang and WestpacBank head of Asia migrant markets andmarketing Alice Wong.铜 山 (Copper Hill) 铜 金 矿 开 发 计 划 继 续金 十 字 资 源 公 司 (Golden Cross Resources) 公 司 正 在 着 手 实施 位 于 新 南 威 尔 士 州 Molong 地 区 的 铜 山 (Copper Hill) 斑 岩 铜金 矿 的 开 采 计 划 , 并 且 正 在 与 几 家 中 国 公 司 进 行 协 作 。金 十 字 公 司 与 中 联 矿 投 资 公 司 的 子 公 司 HQ 矿 业 资 源 公 司 结成 了 战 略 联 盟 , 从 而 能 够 获 得 中 国 的 资 金 和 采 矿 及 处 理 设 备。 金 十 字 公 司 与 中 国 自 动 化 控 制 系 统 总 公 司 ( 中 自 控 ) 签 订了 咨 询 协 议 , 开 始 进 行 项 目 的 银 行 级 可 行 性 研 究 。 中 自 控 是中 国 国 家 机 械 设 备 集 团 ( 国 机 集 团 ) 的 下 属 公 司 , 其 指 定 了中 国 瑞 林 工 程 设 计 公 司 对 此 进 行 协 助 。中 自 控 正 在 按 进 度 计 划 完 成 一 项 经 济 可 行 性 论 证 , 目 标 是 要在 2011 年 1 月 份 开 始 推 进 一 项 全 面 的 银 行 级 可 行 性 研 究 。 在论 证 报 告 后 递 交 后 的 一 个 月 内 , 金 十 字 公 司 将 决 定 是 否 继 续推 进 并 要 求 中 自 控 开 展 这 项 可 研 工 作 , 如 果 推 进 , 可 研 将 在2012 年 2 月 份 交 付 。如 果 银 行 级 可 行 性 研 究 的 结 果 是 积 极 的 , 且 金 十 字 公 司 届 时已 拿 到 所 有 必 需 的 许 可 , 中 自 控 将 提 交 报 告 给 中 国 有 关 金 融机 构 , 开 始 进 行 项 目 建 设 融 资 工 作 , 该 项 任 务 有 望 在 2012 年第 一 季 度 进 行 。 项 目 建 模 显 示 该 矿 将 有 可 能 平 均 年 产 铜 1.6万 吨 , 金 5.5 万 盎 司 , 矿 山 寿 命 20 年 。金 十 字 公 司 委 任 了 一 位 高 级 矿 业 咨 询 工 程 师 协 助 进 行 矿 山 设计 , 并 确 保 中 国 工 程 师 的 设 计 合 规 。 另 有 两 名 高 级 冶 金 顾 问指 导 进 行 试 验 工 作 , 以 确 保 焙 烧 器 设 计 、 硫 酸 制 备 、 萃 取 -电 积 铜 生 产 工 艺 和 CIP/CIL 氰 化 法 提 金 工 艺 符 合 澳 洲 标 准 。已 指 定 地 质 工 程 顾 问 机 构 进 行 基 础 测 试 、 矿 坑 边 坡 稳 定 性 和尾 矿 坝 设 计 咨 询 。 还 将 通 过 招 标 确 定 环 境 和 水 文 顾 问 。新 的 钻 探 结 果 有 潜 力 增 加 铜 山 项 目 现 有 的 地 质 资 源 量 。 今 年共 计 打 下 了 15 口 钻 孔 , 其 中 包 括 2689 米 进 尺 的 反 循 环 钻 探 和1213.5 米 的 HQ 岩 芯 。 较 好 的 结 果 有 从 251 米 处 34 米 岩 芯 内 平均 含 铜 品 位 0.24%, 含 金 0.21 克 / 吨 ; 从 0 米 处 18 米 岩 芯 内 平 均含 铜 品 位 0.295%, 含 金 0.25 克 / 吨 ; 从 380 米 处 24 米 岩 芯 内 平均 含 铜 品 位 0.35%, 含 金 0.13 克 / 吨 ; 从 154 米 处 20 米 岩 芯 内 平均 含 金 0.46 克 / 吨 。多 处 钻 探 结 果 证 实 了 此 前 根 据 有 限 深 部 勘 探 资 料 所 推 测 的 大型 深 部 成 矿 系 统 。 该 项 目 现 在 推 算 的 JORC 标 准 资 源 量 是1.33 亿 吨 , 平 均 含 铜 品 位 0.31%, 含 金 品 位 0.28 克 / 吨 。 上 述积 极 成 果 有 望 在 相 似 的 品 位 基 础 上 提 高 资 源 量 。

www.asiaminer.comCompany & productProSmart software improvementsNEW software enhancem -ents from ITT Corpor a tionfor the ITT ProSmart predictivecondition monitoring systemprovide an easier user interfaceand faster access to critical monitoringdata for operators of pumpsand other rotating equipment.The ITT ProSmart conditionmonitoring system checks and continuallyanalyzes critical conditionson equipment, including vibration,temperature and pressure, to identifyproblems before they impactproduction.The system is used to improveefficiency in cogeneration applications,petroleum production andrefining, and a wide range of othermanufacturing and industrialprocesses.Multiple improvements havebeen made to the ProNet softwareinterface for the ProSmart system,based on customer input, including:q Redesigned interface - Rev -am ped dashboards and new pagedes igns enable users to morequickly observe the status of rotatingequipment and monitor criticaldata.q More flexible display options- The new version of ProNetenables information to be displa y -ed in a wide variety of webbrowsers, screen resolutions andmobile devices.q Improved administrative tools- For administrative users, newmenu choices and features make iteasier to customize dashboards andreports for different users and toidentify system trends.ITT Corporation’s monitoring &controls manager Dan Kernansays, “The great benefit of Pro -Smart is that it collects and analy -zes comprehensive information onmachine health every five secondsto help operators quickly understanddata, optimize productionand avoid downtime.”“After talking to many of ourcustomers, we have made improvementsto the software for ProSmartto make it even easier to improvethe efficiency of their operationsand catch a problem early.”The ITT ProSmart predictivecond ition monitoring system isdes igned to provide cost-effectivemonitoring of all types of pumpsand rotating equipment. The techn -ology enables affordable real-timemonitoring of equipment that waspreviously monitored by laborintensivewalk around with manual,handheld-type data collectionequipment.ProSmart checks and analyzesup to 22 critical conditions everyfive seconds, continuously monit -oring machine health, and alertingoperators and maintenance personnelof potential problems. The systemautomatically collects trendsand displays data; it then generatesalarms based on machine health.ProSmart uses inputs fromvibration, temperature, oil conditionand level, fluid flush and leak,pressure, and speed, combinedwith patented algorithms to createalarms that notify users of machinecondition via cell phone, paper, e-mail and a web-based browser.ProSmart 软 件 升 级ITT 公 司 对 其 ITT ProSmart 预 警 性 状 态 监 测 系 统 进 行 了 新 的 软 件 升 级 ,为 水 泵 和 其 他 转 动 设 备 操 作 工 提 供 了 更 简 单 的 用 户 界 面 , 并 且 可 以 更迅 速 地 获 得 关 键 的 监 测 数 据 。ITT ProSmart 状 态 监 测 系 统 可 以 检 查 并 持 续 分 析 设 备 的 关 键 状 态 , 包 括震 动 、 温 度 、 压 力 , 从 而 在 影 响 生 产 之 前 就 可 以 发 现 问 题 。这 一 系 统 可 用 在 热 电 联 产 应 用 、 石 油 生 产 和 冶 炼 以 及 其 他 的 制 造 业 和工 业 过 程 中 , 能 够 提 高 生 产 效 率 。根 据 用 户 输 入 , 公 司 为 ProSmart 系 统 对 ProNet 软 件 界 面 进 行 了 多 项 改 进。 改 进 包 括 :• 重 新 设 计 了 界 面 —— 修 改 的 仪 表 盘 和 新 的 网 页 设 计 可 帮 助 用 户 更 迅 速地 观 察 转 动 设 备 的 状 况 和 监 测 关 键 数 据 。• 更 灵 活 的 显 示 方 式 —— 新 版 的 ProNet 能 够 让 信 息 在 多 种 多 样 的 浏 览 器、 屏 幕 分 辨 率 以 及 移 动 设 备 中 得 以 显 示 。• 改 进 的 管 理 工 具 —— 对 于 管 理 员 用 户 , 新 的 菜 单 选 项 和 功 能 可 以 更 轻松 地 为 不 同 用 户 自 定 义 仪 表 盘 和 报 告 , 以 及 识 别 系 统 趋 势 。ITT 公 司 监 测 和 控 制 部 门 经 理 Dan Kernan 说 :“ProSmart 最 大 的 优 势 是 它每 5 秒 钟 收 集 和 分 析 一 次 关 于 设 备 健 康 状 况 的 综 合 信 息 , 以 帮 助 操 作 者迅 速 掌 握 数 据 , 优 化 生 产 , 并 且 避 免 停 工 。”“ 在 跟 很 多 我 们 的 客 户 谈 过 之 后 , 我 们 对 ProSmart 进 行 了 软 件 升 级 , 使它 可 以 更 轻 松 地 提 高 他 们 的 运 营 效 率 , 并 尽 早 发 现 问 题 。”ITT ProSmart 预 警 性 状 态 监 测 系 统 被 设 计 用 作 为 所 有 类 型 的 水 泵 和 转 动设 备 提 供 价 廉 物 美 的 监 测 。 这 一 技 术 实 现 了 价 格 上 可 承 担 的 设 备 实 时监 测 , 而 在 之 前 , 这 些 设 备 的 监 测 要 靠 工 人 密 集 巡 视 , 使 用 的 是 人 工和 手 持 类 型 的 数 据 收 集 设 备 。ProSmart 每 5 秒 钟 检 查 和 分 析 一 次 多 达 22 想 关 键 的 状 态 数 据 , 不 间 断 地监 测 机 器 的 健 康 状 况 , 提 醒 操 作 和 维 护 人 员 注 意 潜 在 的 问 题 。 该 系 统自 动 收 集 趋 势 和 显 示 数 据 , 并 依 据 机 器 健 康 状 况 发 出 警 报 。ProSmart 使 用 的 输 入 数 据 包 括 震 动 、 温 度 、 油 液 状 态 和 油 位 、 液 体 冲洗 和 漏 液 、 压 力 和 速 度 , 再 使 用 获 得 专 利 保 护 的 运 算 法 则 来 生 成 警 报, 通 过 手 机 、 纸 质 报 告 、 电 子 邮 件 和 网 上 浏 览 器 向 用 户 发 出 报 告 。The ASIA Miner - September-October, 2010 - 57

Company & productwww.asiaminer.comCourse provides understanding of mineral processingMINERALprocessing is an integral partof mining but it is a science that manypeople take for granted, including quitea few in the mining industry itself.As well as those directly involved in mineralprocessing, it is important that all involved inmining have an understanding of the science.To this end Mineral Engineering TechnicalServices (METS) will offer mineral processingcourses in Beijing on November 22-23 andSingapore on November 25-26.Each course will provide an understanding ofthe principles of physical and chemical mineralprocessing. Courses assume no prior knowledgeand emphasize the science and engineering principles,and their application.Topics covered include mineralogy, size liberation,grade recovery, comminution circuits,flotation, magnetic separation, leaching, thickeningand filtration. The course finishes by integratingthe various unit processes, process control,maintenance and procedures for improving one'sskill and knowledge in the area.Mineral processing is one of the oldest sciencesand its history can be traced back to 6000 BC.Currently there are 86 known metals but beforethe 19th century only 24 of these had been discoveredand of these 12 were discovered in the18th century.Therefore, from the discovery of the first metals,gold and copper, until the end of the 17th century,some 7700 years, only 12 metals wereknown. Four of these - arsenic, antimony, zincand bismuth - were discovered in the 13th and14th centuries, while platinum was discovered inthe 16th century. The other seven metals, knownas the Metals of Antiquity, were the metals upon选 矿 培 训 班 让 您 了 解 选 矿选 矿 是 采 矿 业 不 可 或 缺 的 一 部 分 ,但 是 有 很 多 人 ( 包 括 采 矿 业 的 不 少人 士 ) 把 这 门 学 科 看 成 是 理 所 当 然的 。因 而 , 不 仅 是 直 接 从 事 选 矿 工 作 的人 , 还 要 让 所 有 那 些 涉 足 采 矿 业 的人 士 都 对 这 门 学 科 有 所 了 解 , 这 是非 常 重 要 的 。 为 此 , 矿 物 工 程 技 术服 务 公 司 (METS) 将 于 11 月 份 在 北京 和 新 加 坡 举 办 选 矿 培 训 班 。这 两 个 培 训 班 为 期 两 天 , 它 将 让 参加 者 了 解 物 理 选 矿 和 化 学 选 矿 的 原理 。 培 训 班 为 零 起 点 , 其 重 点 放 在这 门 学 科 及 工 程 的 原 理 和 应 用 上 。课 程 的 主 题 包 括 矿 物 学 、 粒 度 解 离、 品 位 回 收 、 粉 碎 回 路 、 浮 选 、 磁力 选 矿 、 浸 滤 、 浓 缩 和 过 滤 。 课 程最 后 将 融 合 不 同 的 选 矿 工 序 、 过 程控 制 、 维 护 和 和 提 高 学 员 在 该 领 域的 知 识 和 技 能 所 需 的 程 序 。选 矿 是 最 古 老 的 学 科 之 一 , 它 的 历史 可 追 溯 到 公 元 前 6000 年 。 目 前 已知 的 金 属 有 86 种 , 但 在 19 世 纪 之 前发 现 的 只 有 24 种 , 而 在 这 其 中 有 12种 还 是 在 18 世 纪 才 被 发 现 。因 此 , 从 最 初 被 发 现 的 金 属 铜 和 金开 始 直 到 17 世 纪 , 在 这 大 约 7700 年的 时 间 里 , 人 们 所 知 道 的 金 属 仅 有12 种 。 其 中 四 种 —— 砷 、 锑 、 锌 和铋 —— 被 发 现 的 时 间 是 在 13 和 14 世纪 , 铂 是 在 16 世 纪 被 发 现 。 剩 下 的7 种 金 属 被 称 为 “ 古 代 金 属 ”, 它 们是 人 类 文 明 的 基 础 。58 - The ASIA Miner - September-October, 2010METS 选 矿 培 训 班 将 让 参 加 者 了 解矿 厂 效 率 优 化 的 重 要 性 , 深 入 学 习选 矿 领 域 内 方 方 面 面 的 知 识 。 任 何一 座 选 矿 厂 都 是 一 笔 巨 大 的 投 资 ,需 要 高 效 地 管 理 , 以 获 得 最 高 的 回收 率 和 产 量 。 学 员 们 将 了 解 基 础 原理 、 选 矿 工 序 、 设 备 和 流 程 图 以 及物 理 和 化 学 选 矿 原 理 , 同 时 提 高 解决 问 题 的 能 力 。选 矿 课 程 被 设 计 用 作 向 采 矿 业 高 管、 项 目 经 理 、 地 质 师 、 采 矿 和 选 矿高 级 运 营 人 员 、 工 程 师 以 及 研 究 员传 授 资 源 行 业 的 关 键 知 识 。 同 时 ,资 源 行 业 的 培 训 机 构 、 供 应 商 、 技术 专 家 、 会 计 师 、 经 纪 人 和 投 资 者也 能 从 中 受 益 。 它 不 要 求 学 员 此 前已 有 知 识 基 础 , 为 期 两 天 , 培 训 结束 时 将 颁 发 结 业 证 书 。该 培 训 班 的 主 讲 是 METS 公 司 董 事兼 首 席 咨 询 工 程 师 Damian Connelly先 生 , 他 作 为 冶 金 咨 询 师 已 有 40 多年 的 工 作 经 验 , 在 黄 金 、 铜 、 铅 、锌 、 铀 和 铁 矿 石 行 业 有 着 丰 富 的 经验 。 他 专 长 的 领 域 是 工 厂 运 营 、 可行 性 研 究 、 详 细 设 计 和 试 运 行 。 他曾 参 与 多 个 项 目 的 工 程 设 计 、 评 估、 尽 职 调 查 、 投 标 和 专 家 鉴 定 工 作。METS 定 期 举 办 一 系 列 针 对 企 业和 个 人 的 培 训 班 。 这 些 培 训 班 为 参加 者 提 供 了 良 好 的 机 会 , 拓 宽 其 关于 资 源 行 业 的 知 识 。欲 知 更 多 信 息 , 请 致 电 METS 公 司(+61 8 9421 9000), 或 发 电 子 邮 件至 stephanie.parry@mets.net.au, 也可 浏 览 公 司 网 站 www.mets.net.auMETS is offering mineral processing courses in November.which civilization was based.The METS mineral processingcourse will provide participantswith an appreciation of theimportance of optimization ofplant efficiency and an in-depthknowledge of the broader aspectsof mineral processing. Any plantis a large capital resource and needs to be efficientlymanaged to achieve the highest recoveryand production outcomes.Participants will gain an understanding of thefundamental principles and unit processes, anappreciation of equipment and flow sheets,knowledge of the physical and chemical principles,and increased awareness of problem solving.The mineral processing course is designed toinstill key knowledge of the resource sector tomining executives, project managers, geologists,senior mine and processing plant operating staff,engineers and researchers. It can also benefittraining providers, suppliers to resource industry,technologists, accountants, brokers and investors.It requires no pre-requisite knowledge and is runover two days with a certificate provided at completionof the course.The lead presenter will be METS director andprincipal consulting engineer Damian Connelly,who has more than 40 years experience as a consultingmetallurgist. He has extensive experiencein the gold, copper, lead, zinc, uranium and ironore industries. His field of expertise lies in plantoperations, feasibility studies, detailed design,and commissioning. He has been involved inmany projects including engineering, audit, duediligence, tenders and expert witness work.METS regularly offers a range of courses forbusinesses and individuals. The courses providean excellent opportunity to broaden one's knowledgeof the resource sector.n For more information about the courses,call METS on +61 8 9421 9000, emailstephanie.parry@mets.net.au or visitwww.mets.net.auAsiadrill services IndonesiaAn Asiadrill work site in Indonesia.ASIADRILL has a multipurposefleet of drillingequipment that providesdrilling services to the miningand exploration sector inIndonesia.The company’s drilling equipmentcan be utilized to performthe following drilling functions:q Diamond drilling;q Mud rotary;q Mine wall dewatering(angled and horizontal);q Water boring; andq Directional diamonddrilling.Asiadrill’s profile and businessis growing in Asia throughits professional approach to safety,its technical expertise and itscompetitive rates.The company was officiallyincorporated on January 29,1997, to service the rapidlyexpanding Indonesian miningsector.Asiadrill began by purchasinga single truck-mounted drillingrig and being awarded a drillingcontract at a coal mine site inSouth Kalimantan, a contract itholds to this day.n Continued page 60

The ASIA Miner - September-October, 2010 - 59

Company & productISASMELT TSL technologyused in metal recyclingEVERY electronic gadget in the consumermarket consists of a complex array ofmaterials and components, including liquidcrystal displays, circuit boards, solder, capacitorsetc, all cocooned in a plastic or metal housing.It seems the life of these devices is gettingshorter and shorter, whether due to wear and tear,or the need to purchase the next generation electronicgadget that replaces the previous generation.But an interesting point, often missed by theconsumer, is where do all electrical and electronicgadgets end up?This is also a question brought up by theUnited Nations Environmental Program (UNEP)in its latest report ‘Recycling – From e-waste toResources’. The report estimates that e-wasteamounts to 40 million tonnes each year, whichincludes mobile phones, computers, toys, householdwhitegoods, etc.The range of chemical elements in these goodsis extensive, and can include up to 60 elements,some valuable, some hazardous, and some both.Even a mobile phone has more than 40 elements,ranging from copper, tin and silver, to the moreexotic indium, tantalum and wolfram metals.This accounts for almost 300 tonnes of gold, 29tonnes of silver and 11 tonnes of palladium usedin mobile phones on a yearly basis.However, to efficiently recycle these elements,a coordinated system is required between collection,sorting/dismantling and pre-processing, aswell as final processing.Asiadrill inIndonesian From page 58From this single rig, Asiadrill has grownorganically into a company which now owns14 drilling rigs that can drill to varying depthsof between 100 to 700 metres of HQ (96mm)sized holeComplementing these larger rigs is a suiteof ultra portable rigs that can drill between 60and 80 metres of NQ (76mm) sized hole.Asiadrill has previously worked or is currentlyworking for a good number of themajor mining houses within Indonesia,including PT Adaro Indonesia, PT ArutminIndonesia, PT Pinang Coal Indonesia, PTKaltim Prima Coal, BHP Billiton, East AsiaMinerals and PT Binamitra Sumberarta.The company operates with great care andunder a stringent health, safety and environmentalsystem.The practical application of this systemprovides Asiadrill with a platform to providesafe and productive results in accordance withclient needs.Through other subsidiaries of Asiadrill’sparent company, Altura Mining (ASX: AJM),Asiadrill is also able to provide geologicallabour supply, geological mapping services,3D geological modelling services, as well asdown hole geophysical logging services.60 - The ASIA Miner - September-October, 2010With 60 elements in the mix, processingis a delicate balance at eachstage, with metal recovery balancedwith economic and environmentalfactors.That is why treatment of e-wastegenerally isolates 3 intermediatefractions to enable metals to be recycledback to their pure form, either asa ferrous fraction bound for steelplants, an aluminium fraction for aluminiumsmelters, or a copper-lead fraction sentto integrated metal smelters.Xstrata Technology has been at the forefrontof the recycling industry for many years, usingits ISASMELT top submerged lance (TSL)process to successfully treat copper/lead wasteproducts at a number of sites around the world.The key is to have a flexible smelting technologythat can be run according to the changingfeed material, so that high grade products can beproduced, while minimizing emissions.Feed to such processes can include circuitboards and other materials containing organicmaterials that lead to the formation of hazardousdioxins and other toxic substances, so it is importantthat they be captured and treated properly.The Umicore integrated smelting/refiningfacility operates a successful recycling operationin Hoboken, Belgium, that uses an ISASMELTTSL smelter.ISASMELT is in the first stage of Umicore’srecycling process at their Precious Metals Plant,ISASMELT TSL 技 术 运 用 于 金 属 回 收 领 域消 费 品 市 场 中 的 每 个 电 子 设 备 都 是 由 复 杂 的材 料 和 部 件 组 成 , 如 液 晶 显 示 器 , 电 路 板 ,焊 料 , 电 容 器 等 , 这 些 零 部 件 被 包 裹 在 塑 料或 金 属 外 壳 中 。这 些 电 子 设 备 的 寿 命 似 乎 是 越 来 越 短 , 无 论是 由 于 磨 损 或 毁 坏 原 因 , 或 是 出 于 购 买 下 一代 电 子 设 备 更 新 换 代 的 需 要 。 但 是 , 一 个 有趣 但 常 常 被 消 费 者 忽 略 的 问 题 是 , 这 些 电 器及 电 子 产 品 终 将 归 于 何 处 呢 ?这 也 是 联 合 国 环 境 规 划 署 ( 环 境 署 ) 在 其 最新 报 告 《 回 收 —— 从 电 子 废 弃 物 到 资 源 》 中提 出 一 个 问 题 。 该 报 告 估 计 , 电 子 废 物 量 多达 每 年 4000 万 吨 , 其 中 包 括 移 动 电 话 , 电 脑, 玩 具 , 家 用 电 器 等 。这 些 物 品 中 所 含 化 学 成 分 广 泛 , 可 包 含 多 达60 种 元 素 , 其 中 一 些 是 有 价 值 的 , 另 一 些 是危 险 的 , 或 者 两 者 兼 具 。 即 使 是 一 个 小 小 的手 机 , 里 面 包 含 超 过 40 种 元 素 , 包 括 铜 , 锡, 银 , 以 及 更 为 少 见 的 铟 , 钽 和 钨 金 属 。 每年 使 用 手 机 上 的 金 属 量 中 有 近 300 吨 的 黄 金 ,29 吨 白 银 和 11 吨 钯 。然 而 , 为 了 有 效 地 回 收 这 些 元 素 , 需 要 构 筑一 个 在 收 集 , 分 类 / 拆 解 和 预 处 理 及 最 后 处 理各 道 程 序 之 间 相 互 协 调 的 系 统 。 由 于 多 达 60种 元 素 混 在 一 起 , 处 理 过 程 需 要 在 各 阶 段 达到 一 个 微 妙 的 平 衡 , 且 要 使 金 属 回 收 与 经 济和 环 境 因 素 之 间 平 衡 。 这 就 是 为 什 么 电 子 废物 处 理 一 般 分 成 三 个 中 间 部 分 , 使 金 属 被 回收 到 纯 净 状 态 , 一 个 部 分 是 将 铁 质 组 分 送 到钢 铁 厂 , 另 一 部 分 是 将 铝 制 组 分 送 到 铝 冶 炼厂 , 还 有 一 部 分 则 是 将 铜 - 铅 组 分 送 到 综 合 金www.asiaminer.comThe Umicore integrated smelting/refining facility inHoboken, Belgium.which incorporates a number of stages to treat e-waste, catalyst, industrial waste and by-productsfrom nonferrous industries.This smelter annually treats up to 350,000tonnes of recycled materials consisting of complexprecious metals, lead, copper and nickelbearing materials, and produces 17 metals fromthe process through various cleaning and refiningstages.Discard slag is also produced, immobilizedand controlled in an environmentally sound manner,and represents less than 5% of the feed materialmix, while the sulphides are converted to sulphuricacid.Not only does Umicore efficiently recycle abroad range of metals, it does so under some ofthe strictest air emission regulations in the world.ISASMELT was included in the operation in1997, when the process was converted to treatrecycled materials, and since then stack and fugitiveemissions have greatly reduced, exceedingthe demanding standards of the EU environmentalregulations.属 冶 炼 厂 。斯 特 拉 塔 科 技 公 司 多 年 来 一 直 走 在 金 属 回 收的 前 沿 , 利 用 其 ISASMELT 顶 吹 浸 没 式 喷 枪 技术 ( 简 称 TSL) 在 世 界 上 很 多 地 方 成 功 地 处 理了 铜 / 铅 废 品 。处 理 的 关 键 是 要 有 一 套 灵 活 的 冶 炼 技 术 , 该技 术 须 可 根 据 不 断 变 化 的 进 料 情 况 来 运 行 ,得 到 高 品 质 的 产 品 , 同 时 最 大 限 度 地 减 少 排放 。 进 料 中 可 包 括 电 路 板 和 含 有 有 机 材 料 的物 质 , 从 而 导 致 剧 毒 二 恶 英 和 其 他 有 毒 物 质的 形 成 , 因 而 对 这 些 有 害 成 分 的 截 获 和 妥 善处 理 也 至 关 重 要 。优 美 科 公 司 的 综 合 冶 炼 / 精 炼 工 厂 在 比 利 时 的霍 博 肯 实 现 了 成 功 金 属 回 收 运 作 , 该 工 厂 采用 ISASMELT 的 TSL 冶 炼 技 术 。ISASMELT 是优 美 科 的 贵 重 金 属 厂 的 第 一 道 回 收 工 序 , 该工 厂 还 包 含 了 其 他 若 干 道 工 序 来 处 理 电 子 废物 , 催 化 剂 , 工 业 废 物 和 有 色 金 属 工 业 的 副产 品 。这 座 冶 炼 厂 每 年 能 处 理 高 达 35 万 吨 回 收 材 料, 其 中 包 括 含 有 贵 金 属 , 铅 、 铜 和 镍 的 复 杂材 料 , 从 各 道 清 洁 和 精 炼 环 节 中 可 分 离 出 17种 金 属 。 废 渣 以 严 格 的 环 保 方 式 进 行 产 出 、收 集 和 控 制 , 造 渣 量 小 于 进 料 的 5%, 而 其 中硫 化 物 则 转 化 为 硫 酸 。优 美 科 不 仅 利 用 这 一 技 术 有 效 地 回 收 了 多 种金 属 , 而 且 完 全 满 足 了 最 严 格 的 气 体 排 放 规定 。 该 工 厂 于 1997 年 上 马 ISASMELT 工 艺 , 当时 这 一 工 艺 被 转 化 为 处 理 回 收 材 料 的 技 术 ,从 那 时 起 囱 排 和 易 散 型 排 放 量 大 大 减 少 , 均高 于 欧 盟 环 保 法 规 规 定 的 标 准 。

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Company & product62 - The ASIA Miner - September-October, 2010www.asiaminer.comADEN Services expands international presenceADEN 埃 顿 服 务 拓 展 国 际 业 务Services continues to expand itsinternational facilities managementservices and has recently establishedoffices in the Philippines, Kazakhstan and theMiddle East.ADEN Services has experienced growth ofat least 30% in the past five years and expectsthis figure to further increase in coming yearsowing to the opening of these offices and thecompany’s continuing strategic expansion.The company has been operating as aninternational facilities management companyfor more than 10 years. With global headquartersin Shanghai, China, ADEN Services hasprovided integrated multi-service solutions incatering, facilities management and remotesite management across China, SoutheastAsia, Central Asia, the Middle East and Africa.With more than 12,000 employees worldwide,the company serves more than 650 localand international clients and has 15 offices inChina with other offices in DR Congo, Dubai,Laos, Vietnam and Philippines.ADEN Services also manages remote siteprojects in Afghanistan, Eritrea, Iraq andKazakhstan. The Remote Site Division specializesin supporting remote site operationsfor the oil and gas, mining, construction andheavy industry sectors.The company provides life support servicesfor projects in these sectors. Its service offeringsinclude technical assistance, logistics,security, manpower placement and procurementas well as full camp management services,which include food service, cleaning andhousekeeping, laundry, light maintenance,landscaping and social entertainment.Community Social Responsibility (CSR)also plays a big role in ADEN Services projectswith the company contributing a percentageof its profits to local communities by wayof donations and sponsorship of local communityorganizations or sporting teams.ADEN Services has many strategic localand global partners to provide the best qualitysolution, no matter where the project is located.It has representation in portable power generation,transport and logistics, water treatment,communications, and prefabricatedaccommodation specialists.ADEN Services can support and manage allproject needs from niche mobile explorationcamps to large static operations found in opencut mines, and offers a complete ‘turn-key’solution to accommodation and facilities servicerequirements in a cost effective manner.随 着 埃 顿 服 务 公 司 (ADEN Services) 近 期 在 菲 律 宾 、 哈萨 克 斯 坦 和 中 东 设 立 办 事 处 , 公 司 继 续 在 全 亚 洲 范 围 拓展 其 国 际 设 施 管 理 服 务 。过 去 五 年 中 埃 顿 服 务 公 司 的 增 长 一 直 保 持 在 30% 以 上 ,随 着 上 述 办 事 处 的 设 立 以 及 公 司 继 续 战 略 扩 张 , 未 来 几年 它 的 增 长 预 计 还 将 达 到 这 个 数 值 。 作 为 一 家 国 际 设 施管 理 公 司 , 埃 顿 服 务 公 司 已 运 营 十 余 年 。 公 司 的 全 球 总部 设 在 中 国 上 海 , 在 中 国 、 东 南 亚 、 中 亚 、 中 东 和 非 洲地 区 提 供 配 餐 、 设 施 管 理 和 偏 远 现 场 管 理 方 面 的 综 合 服务 方 案 。该 公 司 在 全 球 拥 有 超 过 12000 名 雇 员 , 为 650 多 家 当 地 和国 际 客 户 提 供 服 务 , 在 中 国 设 有 15 个 办 事 处 , 在 民 主 刚果 、 迪 拜 、 老 挝 、 越 南 和 菲 律 宾 也 设 有 办 事 处 。 埃 顿 还在 阿 富 汗 、 厄 立 特 里 亚 、 伊 拉 克 和 哈 萨 克 斯 坦 管 理 偏 远现 场 , 其 偏 远 现 场 服 务 部 门 专 业 为 石 油 和 天 然 气 行 业 、采 矿 业 、 建 筑 业 以 及 重 工 业 的 偏 远 现 场 提 供 支 持 服 务 。公 司 为 这 些 行 业 的 项 目 提 供 生 活 支 持 服 务 , 其 服 务 内 容包 括 技 术 协 助 、 物 流 、 安 保 、 人 力 配 置 和 采 购 服 务 , 以及 完 整 的 营 地 管 理 服 务 , 如 配 餐 服 务 、 清 洁 和 内 务 、 洗衣 、 照 明 维 护 、 景 观 美 化 和 社 交 娱 乐 服 务 等 。在 所 有 埃 顿 服 务 公 司 的 项 目 中 , 社 区 社 会 责 任 (CSR) 扮演 着 十 分 重 要 的 角 色 , 公 司 拿 出 一 定 比 例 的 盈 利 , 通 过捐 助 以 及 赞 助 当 地 社 区 组 织 或 运 动 队 的 形 式 回 报 当 地 社区 。埃 顿 服 务 能 够 支 持 和 满 足 从 独 特 的 移 动 勘 探 营 地 到 露 天矿 的 大 型 静 态 作 业 现 场 所 有 的 项 目 需 求 , 并 且 提 供 成 本效 益 高 的 整 体 解 决 方 案 以 满 足 食 宿 和 设 施 服 务 需 求 。How permaculture can help miningADOPTING a systematic approach to sustainable developmentthrough permaculture design systems is being recognized globallyand the mining industry is leading the way.The mining sector’s first permaculture certificate course was presentedat Tampakan in the Philippines by Edge 5 Permaculture managing directorGreg Knibbs, who has also been consulting in Ghana, West Africa, forseveral mining companies. Most mining companies collaborating withcommunities in developing nations are familiar with tracts of unused landand families scratching out an existence through subsistence farming.Permaculture teaches strategic design methodologies for functionalcommunity and garden agriculture development leading to sustainablefood security systems that are ecologically sound and economically viable.The community participants gain skills to implement their own productivesystems thereby reducing their dependency on support.Tampakan participants explored community health and food securityissues as part of the design course. Strategies were discussed to use practicaland effective principles to improve nutritionand health. Gardens incorporate medicinaland culinary herb spirals as well as intensivefood gardens.The program includes how to grow up to65% of healthy clean food close to houses ina village. Using what is called least path layoutor mandala garden, a 100 square metrearea is marked out and intensively planted. Atthe centre is a shower and compost pit, surroundedby a circle of banana, papaya andsweet potato. Outside this are six intenselyplanted keyhole beds.The design is highly productive and containedwithin one system where you can growvegetables and fruit, mulch plants and usetrees for firewood. Chickens are used as tractorsbecause their habit is to scratch, dig anddefecate. Through management of the chickensthey do much of the ground preparation.One of the challenges at Tampakan and inGhana was controlling erosion. The strategyused was to mark out a swale with an Aframe. Soil was mounded and both sidesplanted. Swales are effective for erosion control,water harvesting, tree systems, dust suppression(wind breaks), water harvesting andflood prevention, helping stabilize and rehabilitatedegraded land.

www.asiaminer.com6th Balikpapan Expo - Kalimantan, IndonesiaAttending the 6th Balikpapan Expo, fromleft, NTICN industry consultant Garry Ross,Industry Capability Network industry managerMike Franks and Carcom Installationsmanaging director Tony Copley.The team from McLanahan Corporateattending the 6th Balikpapan Expo inKalimantan, sales and marketing managerChris Knowles and application specialistBrad Anstess.The team from Nilos, export manager JensHamacher and business developmentmanager Karsten Volzke at the expo whichsupports Kalimantan’s large mining industryand showcases business opportunities.Titan Wheels Indonesia manager PeterPickering and managing director DannyKirkland attended the Balikpapan Expo.PT Bumi Ban Mandiri Exports marketingsenior manager Anshuman Singh andIndonesian representative Erich.Gemcom president director Roy Vogler andtechnical support personnel LastinaHutapea.The ASIA Miner - September-October, 2010 - 63

Indonesiawww.asiaminer.comCoal output to rise atleast 20 million tonnesCOAL output in Indonesia this yearmay reach 320 million tonnes, upfrom 300 million last year, as producerstake advantage of higher pricesand demand remains strong.The Indonesian Coal ProducersAssociation, which is known as APBI, saysthat the nation may even exceed the 320million tonne estimate if the weatherremains favourable.It has suggested that the 2010 outputcould even reach 380 million tonnes ifthere is no bad weather in December,which is often a very wet month and notsuitable for mining.Indonesia is the world’s largest exporterof thermal coal, used in power stations,and electricity-hungry China is its biggestmarket.The APBI says coal prices have beenaround $104-$105 a tonne, compared to aNew East Kutai coal agreementCHURCHILL Mining has signed an agreementwith a subsidiary of Indonesian stateelectricity firm, PT Perusahaan ListrikNegara (PLN), for the sale of up to 5 milliontonnes each year from the East Kutai CoalProject.The Memorandum of Understanding is withPLN-Batubara (PLN-B) and provides furtherincentive for Churchill to fast track developmentat East Kutai.This additional production will be over andabove the 20 million tonnes already planned formining annually at East Kutai, significantlyincreasing Churchill’s forecast coal sales.Churchill will also be part of a joint studygroup to focus on the use of PLN’s coal dryingand enhancement technology (Licol) for use withcoal from the project.Initial testing on Churchill’s coal with the Licolprocess has already successfully upgraded thesub-bituminous coal to coal with bituminouscharacteristics, increasing its value.Upon successful conclusion of the review,PLN-B will build at its cost an initial commercialLicol coal enhancement plant module with annualcapacity of 250,000 tonnes, to be followed byadditional modules to enable the annual productionof up to 5 million tonnes of enhanced coal.The MOU is part of PLN’s plans to enter intostrategic arrangements to assist the owners ofcoal concessions develop their projects.The current plan for production at East Kutai isfor an annual 20 million tonne mining operationfrom the 400 million tonnes of JORC reserve inthe planned northern pit. The other 600 milliontonnes of Churchill’s 1 billion tonne JORCreserve is in the planned central and southern pits.Coal supply to PLN-B would come from the64 - The ASIA Miner - September-October, 2010$70 average in 2009, while demandremains bullish, particularly from Chinaand India.Chinese demand for thermal coal isstronger this year owing to low rainfallcutting hydroelectric power productionand poor transport links between coalproducingareas in China’s north-westand its major power stations in the southeast.Exports from Vietnam to China are alsoexpected to drop owing to Vietnam needingmore coal domestically, which willresult in the Chinese importing more coalfrom Indonesia and Australia.APBI says the extra demand fromChina could be as much as 20 milliontonnes and it has urged Indonesian coalcompanies to produce as much coal aspossible to meet the demands from boththe domestic and foreign markets.southern pit.Churchill’s managing director Paul Mazaksays, “We view PLN as a very valuable governmentpartner in Indonesia. Additionally, this providesChurchill with an opportunity to significantlyscale up production plans at the East KutaiCoal Project. Importantly, a supply agreementwith PLN-B would also mean that Churchillwould achieve its domestic market obligation tosupply coal into the Indonesian market.”Meanwhile in accordance with Indonesia’snew Mining Law, Churchill has completed theinitial stage of its Indonesian restructuring andtaken direct ownership of the Ridlatama Tambanglicence area at East Kutai.The Ridlatama Tambang licence is the larger ofDomestic demand for coal should bearound 60 million tonnes this year withthe remainder destined for export.Indonesia’s major coal producers are allforecast to produce more coal this year.PT Adaro Energy and PT Kaltim PrimaCoal should each produce an extra 4 milliontonnes, PT Berau Coal an extra 3 millionand PT Arutmin Indonesia an extra 2million.APBI’s estimates are much higher thanthe government’s predicted 2010 output of250 million tonnes because the governmentfigures do not include productionfrom small-scale and illegal coal miners.Smaller concessions are estimated to eachannually produce from 500,000 to 1 milliontonnes.According to government figures,Indonesia produced 254 million tonnes in2009.The camp at East Kutai Coal Project.two IUP licences that make up the project, with aresource of 2.545 billion tonnes, or 93.2% of the2.730 billion tonne total resource.Churchill has also converted to a 75% directownership in PT Ridlatama Trade Powerindo,which holds a prospective 5386 hectare licencearea adjacent to the Ridlatama Tambang licence,and on which no drilling has been done to date.In January 2009 a new Mining Law came intoeffect enabling foreign companies to take directequity ownership in local companies holdingmining concessions. Prior to the new Mining Lawbecoming effective, the company held its interestin the East Kutai project through contractualarrangements similar to those typically used byother foreign companies operating in Indonesia.

www.asiaminer.comKANGAROO Resources will use US$14million raised through a funding agreementto further develop coal production atits flagship projects in Indonesia and particularlyat the Mamahak Coking Coal Project.The funding agreement with key institutionalinvestors, primarily from the US and Asia, sawthe company raise the funds through a convertiblenote instrument.At the operating Mamahak project, the fundswill be used for a number of purposes includingleasing additional mining equipment and infrastructureto expand the mineable tonnes currentlyachievable on existing reserves.They will help secure contracts for additionalbarges to ship coal down the Mahakam River tocoal terminals for sale and will progress furtherdrilling as required in a bid to expand the existingJORC resource inventory and ore reserves withinthe concession area.The funds will also provide additional workingcapital to enable the company to deliver on itsoverall production objectives.Kangaroo purchased the Mamahak projectfrom SouthGobi Energy Resources earlier thisyear as a near-production project and has directeda majority of its attention to starting production.The initial 50,000 tonne shipment was transportedalong the river to the Balikpapan coal terminalduring July for delivery into existing coalsales agreements. The company intends to secureadditional barges to expedite future deliveries andstandardize its logistics, which in turn will allowit to increase sales revenue.Kangaroo Resources has interests in eightIndonesiaFunds to expand Kangaroo coal projectsadvanced coal projects in East Kalimantan. Theseprojects host significant coking and thermal coalresources.The company is targeting production of up to 2million tonnes in 2010, ramping up progressivelythereafter.The company has secured an initial exportsales contract for coal from its operating projects.The agreement with Chinese energy companyGuangdong Yudean Farnon Investment Coinvolves the provision of three trial shipmentscontaining a total of 150,000 tonnes of coal overa two-month period.Production began at the GPK thermal coalproject in the March quarter of 2010 but theramp-up to full production has been delayed as aresult of the acquisition and development ofMamahak.Kangaroo owns an 84.82% stake in GPKwhich has a JORC-compliant resource of 248million tonnes, including an indicated resource of141 million tonnes and an inferred resource of107 million tonnes.GPK was expected to produce up to 100,000tonnes of thermal coal by early 2011 and ultimatelyup to between 3 and 4 million tonnesannually by 2012.The company is at present considering alloptions regarding GPK, including proceedingwith the ramp-up, a potential joint venture andsale of the project.Kangaroo’s managing director Mark O’Keeffesays, “In order to give the sale option more credibilityand enhance any potential outcome,Kangaroo has mandated Macquarie BankSingapore to manage a process by which interestedparties are able to review the project and considerany further involvement.”The ASIA Miner - September-October, 2010 - 65

Indonesiawww.asiaminer.comAggressive Romang drill campaignTHEA drilling crew at the Lakuwahi project.drilling program atRobust Resources’ Laku -wahi project on RomangIsland has returned further highgradegold-silver intersectionswith the company targeting anaggressive exploration campaignduring the 2010/11 financialyear.Drilling has already beenstepped up with the arrival of thefourth owner-operated diamonddrill rig and Robust plans toexpand its in-house drill fleet tosix in the next few months.Activity will be centred ontwo key prospects areas atLakuwahi – Batu Mas and BatuHitam – while the company also plans to startdrilling at the highly prospective Solat projectin the north of Romang Island.Recent assays from two holes at Batu Masindicate precious metal mineralization of potentiallyeconomic grades and widths significantlyextending the identified zones of near-surface,high-grade gold-silver mineralization.One hole returned 57 metres @ 3.83grams/tonne gold equivalent from surface,including 32 metres @ 5.76 grams/tonne and 20metres @ 7.40 grams/tonne.The other hole returned 58 metres @ 2.71grams/tonne gold equivalent from surface,including 13.7 metres @ 4.47 grams/tonne and6.3 metres @ 1.69% copper.These represent the second and thirdstrongest zones of precious metal mineralizationencountered in drilling undertaken to dateby Robust on Romang Island.These results demonstrate the continuity andconsistency of the high-grade mineralizationbetween drill holes at Batu Mas, which remainsopen in all directions.Robust has approved the financial year budgetof $10 million of which more than 80 cents inevery dollar will be injected directly into theexploration program on Romang.The program includes an aggressive drillcampaign of at least 20,000 metres, includingcontracting of an RC rig to accelerate resourcedelineation; continuation of the IP survey atLakuwahi, with expansion to the Solat Project;continued metallurgical test work on preciousand base metals; and expansion of explorationteams including three additional geologists andMineralization outcrop at Lakuwahi.a drilling manager to drive safety, training andproduction.The company is moving towards full ownershipof the Romang Island project with theacquisition of the remaining 25% awaitingshareholder approval.Robust has significantly improved transportand logistics activities to and from the island. Ithas reached agreement with Indonesian aircraftoperator PT ASI Pudjiastuti Aviation (SUSIAir) for up to 20 hours of charter flights amonth between Kupang and Kisar.This will allow for drilling samples to betransported off Romang at more regular intervals,in addition to enhancing transportation ofpersonnel and supplies. SUSI Air is the largestoperator of Cessna 208 Caravan aircraft in theAsia Pacific region.66 - The ASIA Miner - September-October, 2010

www.asiaminer.comDEVELOPMENT of Archipelago Resources’Toka Tindung Gold Project inNorth Sulawesi is continuing and thecompany is targeting first production by the endof 2010.More than 670 personnel are engaged on, or insupporting, construction activities at the TokaTindung processing plant site. In addition, prestrippingis being carried out on the TokaTindung pit, the largest of the five planned openpits, in preparation for the start of ore mining.Leighton Asia has secured significant contractwork at the Toka Tindung project.The company aims to annually produce160,000 ounces of gold and the project currentlyhas a 6-7 year life utilizing known reserves.When Archipelago acquired the project morethan 10 years ago, a resource of 1.75 million goldequivalent ounces had already been outlined bythe previous operator.Since then, the company has carried out virtuallyno exploration on the tenements, althoughlast year it completed a program of limiteddrilling to gain better understanding of gradecontrol requirements. This returned high-gradegold intersections from beneath the proposedstarter pit.The company will also begin a program ofsystematic exploration this quarter with a focuson immediate extensions of the known ore bodiesas well as more remote and unexplored partsof the tenements known to be prospective forgold mineralization.While some airborne surveys and prospectingwill be undertaken, the focus will be on drillingfor extensions to known mineralization.The company is confident of adding to itsresources and reserves in due course, therefore,adding to the life of the project.Archipelago’s managing director ColinLoosemore says key to the company’s progresshas been the financial support and assistance ofmajor shareholder PT Rajawali Corpora, a majorparticipant in Archipelago’s successful placementearlier this year which raised 30.3 millionpounds.PT Rajawali Corpora has also lifted its stake inArchipelago from 39.6% to 51.1% by purchasingIndonesiaToka Tindung production by year enda block of shares from the company’s secondlargest shareholder, Baker Steel Funds. Thisreduced Baker Steel’s interest from 21.1% to9.5% but Baker Steel has advised that it intendsto retain this stake and will continue to be supportiveof the company’s progress towards producerstatus.As part of Archipelago’s longer term plans, thecompany has recently been joined by MalcolmWilson as business development manager. Hisrole will be to look for and assess opportunitiesadditional to Toka Tindung that the companyexpects to be able to take advantage of in thefuture.The ASIA Miner - September-October, 2010 - 67

IndonesiaBonanza gradesfrom drillingat TembangDRILLINGat the Belinau prospect ofSumatra Copper and Gold’s Tembangproject in South Sumatra province hasreturned bonanza grades of gold and silver.Core from a hole at Belinau returned an assayof 1.95 metres @ 81.92 grams/tonne gold and208.1 grams/tonne silver from a depth of 170metres.The intersection extends the shoot to the southand at depth, and further confirms potential for ahigh-grade epithermal-style mineralized systemto be hosted at Tembang.The Tembang project is about 120km northnortheastof Bengkulu in South Sumatra. It is alarge intermediate-sulphidation epithermaldeposit comprising gold-silver bearing quartzveins hosted by Tertiary volcanics.The company has rights to two IUPs totallingan area of some 850sqkm over and around theformer Rawas mine that operated between 1997and 2000.Sumatra has now finalized a successful 5000metre drilling program and is initiating a 10,000metre follow-up drilling program.The 5000 metre drilling program wasdesigned to testthe down dipextensions of thehigher grade veinsystems at Buluh,Bujang, Nuri andBelinau.The program del i neated two major mineralizedshoots at both Belinau and Berenai.At Nuri one hole intersected 27 metres @ 0.57grams/tonne gold in waste dumps from surfacebefore intersecting a thick zone of both halo andvein.The halo returned 9.30 metres @ 0.79grams/tonne gold and 19.8 grams/tonne silver,and the vein returned 6.9 metres @ 1.08grams/tonne gold and 21.6 grams/tonne silver.Although the vein is moderate grade, this isstill encouraging as a significant width of veiningis still evident at depth.The 10,000 metre drilling program willexplore and define these higher grade shootsunderneath what appears to be a lower grade cap.These holes hold the promise to multiply theresource potential of Tembang several times.www.asiaminer.comSumatra Copper and Gold has also reachedagreement with Adi Adrianyah Sjoekri torestructure their current arrangements which willresult in Sumatra acquiring all of Adi Sjoekri’sinterests in five operating entities.The transaction is made possible by provisionsof the 2009 new Mining Law that now allows upto 100% foreign ownership of local companiesthat hold exploration and mining licences (IUPs).Completion of the transaction will raiseSumatra’s economic interest and/or ownership infive local companies holding IUPs and one withan application from 92.5% to 100%.The companies holding IUPs are PT DwinadNusa Sejahtera (Tembang project), PT NusaPalapa Minerals (Sontang project), PT BengkuluUtara Gold (Tandai project), PT Musi RawasGold and PT Jambi Gold.68 - The ASIA Miner - September-October, 2010

www.asiaminer.comIndonesiaAPAC obtainsiron ore concessionin PadangAPAC Coal has purchased more than50% of Hudson Minerals Holdingswhich has resulted in it obtaining aninterest in an iron ore mining concession inPadang.Hudson, a private company incorporatedin Singapore, executed a cooperation agreementin early 2009 with PT Denichi AminaSelaras (PT DAS) to acquire an 80% interestin the Air Dingin iron ore concession.Subsequent changes to Indonesia’s mininglaw mean that the legal and corporate structureunder the Cooperation Agreement can bedispensed with as the new law now allowsforeign investors to hold direct equity stakesin the mining concession holder.As a result Hudson entered into an agreementfor the sale and purchase of shares(SPA) in PT DAS representing 80% of thetotal issued ordinary shares.The SPA allows for the conversion of PTDAS into a foreign investment company andupon conversion, the company will hold adirect 80% shareholding.The 51% stake in Hudson is beingacquired by APAC at a cost ofAus$6,092,044.The sale will depend on APAC being satisfiedwith results of a legal and financial duediligence exercise as well as the completionof the SPA between Hudson and PT DAS.The Air Dingin mining concession hasbeen valued at Aus$14,931,480 and asHudson will own 80% of PT DAS, Hudson isvalued at Aus$11,945,184 and, thereforeAPAC’s 51% stake representsAus$6,092,044.APAC Coal is a subsidiary of SingaporelistedMagnus Energy Group, which operatesin the upstream petroleum and coal business.Its core focus is petroleum, coal production,low-risk exploration and field development.APAC also has a 30 year concession toexplore for coal over a 23,124 hectare parcelof land in East Kalimantan.A JORC-compliant inferred resource of18.2 million tonnes defined as geologicalconceptual estimates at the tenement hasbeen identified, which is expected to formthe basis of an initial mining operation.This resource occurs within a very smallarea of the concession with more than 90% ofthe area yet to be explored to any significantdegree.At present the exploration program at thistenement has been suspended owing to ajudicial review process before the SupremeCourt.APAC is evaluating the potential of a numberof other tenements in Kalimantan.The ASIA Miner - September-October, 2010 - 69

70 - The ASIA Miner - September-October, 2010

www.asiaminer.comIndonesiaPotential for Trenggalek porphyry gold-copperANintersection from the latest roundof drilling at Arc Exploration’sTrenggalek project in East Javahighlights the potential for porphyry-relatedgold-copper mineralization.The Buluroto prospect intersection of24.55 metres @ 0.51 grams/tonne gold,0.21% copper and 16ppm molybdenum wasobtained from the breccia zone, below thebase of oxidation.The hole is part of the current 5000 metrescout drilling program that is testing multipleepithermal targets identified on the company’s30,044 hectare exploration IUP area.Buluroto is about 800 metres west ofSentul Prospect, where Arc has previouslyreported encouraging intersections of up to17 grams/tonne gold from scout drilling.The Buluroto prospect is defined at surfaceby a 100-120 metre long and 10-15metre wide gossanous breccia zone developednear the confluence of two narrowquartz veins.Previous trenching on this breccia hasreturned up to 10 metres @ 12.7 grams/ -tonne gold and 96 grams/tonne silver inchannel samples. Shallow diamond drillingof the breccia by a previous explorerreturned an intercept of 11.9 metres @ 4.9grams/tonne gold in oxidized sulphidicbreccia.The breccia zone mineralized intercept isunlike any other intercept previously reportedfrom Trenggalek. In the opinion of thecompany the results are encouragingbecause they highlight potential for porph -yry-related gold-copper mineralization inthe project area.Trenggalek is about 250km west of theTujuh Bukit gold-copper project where deepdrilling by Intrepid Mines has confirmed thepresence of a potentially large porphyry andhigh-sulphidation gold-copper system in thesame belt of volcanic rocks that comprisethe southern mountains of East Java.Petrological work will be undertaken toevaluate the nature of the mineralization andfurther drilling is planned to test the potentialfor strengthening gold-copper mineralizationin the breccia at depth and for thepresence of a deeper mineralized intrusion.Meanwhile further drilling has confirmeda mineralized extension to the West SentulVein at the Sentul prospect and first drillingat Dalangturu has highlighted potential forepithermal vein discoveries.Two holes were drilled to test for mineralizedextensions to the open southern strikeprojection of the West Sentul Vein.Both holes intersected the main veinstructure, which is about 15 metres wide,and also several narrower tension veins inthe footwall.Four holes at Dalangturu have tested alarge IP chargeability anomaly and associatedsoil geochemical anomalies that werehighlighted from the results of a previouswork undertaken at this prospect.Grid-based soil geochemical sampling isin progress to better define the limits of thislarge epithermal system.The results of this work, combined withfurther mapping and the results of the firstscout drilling, will be used to plan furtherdrilling on the prospect.ABOVE: Logging core samples from Trenggalek.RIGHT: A drill cross section from the Buluroto prospect.The ASIA Miner - September-October, 2010 - 71

IndonesiaMining under way atMangkok Coal ProjectCOAL mining operations have started at IndoMines’ Mangkok Coal Project, which is in amajor coal production area 95km north ofBanjarmasin, the capital of South Kalimantan.The company is on schedule to produce 50,000tonnes per month of high quality thermal coal at its firstcoal operation.The Mangkok project is an open-cut mining operationthat has started production adjacent to an area previouslymined. The coal is at surface or shallow depths.Mining in the adjacent blocks along strike of theproject has been consistently recovering high qualitythermal coal.Open cut mining operations are extending the pitalong strike from the adjacent mined out block.Crushing is taking place on site using a mobile crushingunit and coal is being transported by road about50km to the Sungei Putting port facility along BaritoRiver where it is stockpiled and sold FOB Barge.The coal project formed part of Indo Mines’ acquisitionof Fireside Resources which was completed inMay. Fireside had secured a US$3.6 million pre-paymenttowards the purchase of 300,000 tonnes of highquality thermal coal from the project.More than 5000 metres of an exploration drillingprogram has been completed and this is continuing,along with infill drilling, whilst operations are beingramped up.The program aims to identify new coal seams on the72 - The ASIA Miner - September-October, 2010Coal mining operations adjacent to theMangkok Coal Project in South Kalimantan.concession as well as extend the resource that will bemined.Indo Mines is also in negotiation with several internationalcommodity trading groups to secure offtakeagreements for the project.The Fireside purchase has given Indo Mines a portfolioof quality coal, iron sands and nickel projects inIndonesia, diversifying the company’s project developmentand resource risk.Mangkok will also provide cashflow for the companyto continue development of its other projects, and inparticular the Jogjakarta Pig Iron Project.Development of this project continues with themajor focus this year being on the socialization andgovernment liaison aspects of the project.Indo Mines has submitted the AMDAL documentationto government authorities as part of its socializationprogram.The company has been assessing the gravel resourceto determine the potential increase in reserves at theproject. To this end additional sampling is ongoing andthe company has completed more than 600 samples.Bankable feasibility study work is ongoing and willcover hot metal processing flow sheet and detailedengineering; mining, concentrator and infrastructuredesign; environmental and social impact assessments;detailed financial modelling; market research, port andshipping requirements; rail transport; and power andoxygen supply.IUP granted for Taliwang propertySOUTHERN Arc Minerals has been granted amining business licence (IUP) for its Taliwangproperty on the west coast of Sumbawa Island inthe province of West Nusa Tenggara.Issued by the Regent of West Sumbawa, this IUPcomprises two stages with potential extensions.Over a period of six years, the exploration stage permitsthe company to pursue exploration activitiesthrough to the conclusion of a feasibility study.Upon conclusion of the exploration stage, the IUPautomatically converts to a second stage, permitting thecompany to conduct commercial production on thisproperty for a minimum of 20 years, with the potentialfor two further 10 year extension periods.Southern Arc holds 85% of the Taliwang propertywith 10% held by the West Sumbawa Regency and 5%by local company PT Puri Permata Mega.The West Sumbawa Regency interest is free-carriedthroughout the life of the project and is non-dilutable.The company strongly feels that having the localRegency as an equity partner creates a synergistic andmutually beneficial environment for the advancementof this property.Covering 31,204 hectares, Taliwang containsepithermal gold-silver-bearing quartz veins, high-levelhydrothermal breccias, sedimentary-hosted gold andporphyry copper-gold targets, all of which have beenthe subject of company exploration since 2005.The property is 15km north of Newmont's BatuHijau mine, along proven secondary NNE to NE andNW trending mineralized structures. Taliwang comprisesthe Lemonga, J3, Raboya and Semoanprospects.Upcoming exploration programs will focus primarilyon diamond drilling campaigns where justified,bringing prospect areas up to resource status.www.asiaminer.comRelianceacquiresSumatrancoal minesINDIAN private company Rel -iance Power has signed a sharesaleagreement with Indonesia’sSugico Group to acquire three coalmines in South Sumatra.Reliance Power’s wholly-ownedsubsidiary, Reliance Coal Res ou rces,will make an upfront payment of Rs500 crore ($106 million) for theacquisition.The balance will be paid in a staggeredfashion depending on the minesmeeting certain production targets.If all production-linked targets aremet, the total value of the deal will be$1.6 billion.In 2008 the Indian companyentered into a definitive agreement toacquire 100% economic interest inthe three mines and the share-saleagreement marks closure of the transaction.Sugico Group’s chairman K Leosays the deal is a ‘win-win’ for bothsides. “The partnership with Reliancewill improve the valuation of otherassets in the region.”The three mines were owned by PTSriwijaya Bintangtiga Energi and PTBrayan Bintangtiga Energi, subsidiariesof the Sudigo Group.The coal from this region will notonly ensure steady supplies for theproposed Krishnapatnam PowerProject in India’s Andhra Pradesh,that is to be based on imported coal,but will also be cost effective.Calculations show that the cost ofthis coal will be almost 35% cheaperthan other imported coal but the qualityof coal with a calorific value of4000 kcal, compared with 2800 kcalin India, and an ash content of just 3-5%, will be a major advantage toReliance.The mines have productionlicences and Reliance will now worktowards the production of coal. It isestimated that the mines will be in aposition to begin production in anotherthree years.Reliance will develop the minesalong with technical partner NorthAmerican Coal Corporation.The Anil Dhirubhai AmbaniGroup, which has interests in logisticsand infrastructure, will also helpin the development of a dedicatedcustom-built railway line to transportcoal from the mines to a proposedport in Jambi in Sumatra.The designated port will be capableof handling large cape size vessels.

The ASIA Miner - September-October, 2010 - 73

Vietnamwww.asiaminer.comResources increase atPhuoc Son Gold ProjectThe view from Olympus Pacific Minerals’ Phuoc Son Gold Project in CentralVietnam where there has been an increase in resources.THERE has been a 16% increase in goldresources at Olympus Pacific Min -erals’ Phuoc Son Gold Project in centralVietnam, which encompasses the operatingPhuoc Son mine.The resource estimate is based on 157 drillholes and includes additional mineralizationextensions that had earlier been intersectedby step-out drilling in 2008, around theperiphery of the South and North deposits.The updated Phuoc Son gold resource is648,974 measured and indicated tonnes @10.08 grams/tonne gold for 210,312 ouncesand 2,491,418 inferred tonnes @ 6.06grams/tonne for 485,219 ounces.The company is mining from the SouthDeposit at Phuoc Son and no mining has yetbeen conducted at the North Deposit, whichis still under development.The North and South deposits both occurwithin the Dak Sa shear zone, which has beendrill-intersected over a strike length of 5kmand remains open in both strike directionsand down-dip.Further, step-out drilling is scheduled forthis quarter.Olympus has total measured and indicatedresources at two Vietnam properties and oneMalaysian property of 1,022,398 ounces andinferred resources of 2,651,758 ounces.Olympus is positioned to expand gold productionin South East Asia from its core propertiesand has established a production timelinethat increases annual production to85,000 ounces of gold by early 2011 and aproduction pipeline capable of further expansionto 300,000 ounces by 2014.The company has budgeted US$6 millionin the 2010/11 financial year for explorationand resource studies at its four core properties.At Phuoc Son a definitive structural studyis under way and when this is completed thecompany will focus on step-out diamonddrilling over about 6500 metres aimed atdelineating parallel ore-shoot repetitionswithin the balance of the Dak Sa shear.Adjacent structures will also be investigated.At the Bong Mieu Central open-pit minelimited step-out diamond drilling over 450metres is being carried out beyond the southernpit boundary to test an open-ended,Construction work at the Phuoc Son Gold Projectin Central Vietnam.south-dipping projection of this ore body.At the Bong Mieu South undergroundoperations, exploration for the financial yearand beyond will be conducted mainly bydrilling from underground drill-drives, to bedeveloped concurrently with the advancementof production drives.At the Bong Mieu East planned open-pitmine in-fill resource drilling is in progress toupgrade resources and provide samples formetallurgical test-work, prior to plannedmining feasibility studies, which are scheduledto begin later this year.At the Tien Thuan project, also in centralVietnam, a scout diamond drilling programof 1000 metres is in progress to initiallyinvestigate the depth persistence of extensivegold-mineralized mesothermal quartz veinsthat were earlier mapped in the Nui Bac Masector of the Tien Thuan project.Subject to positive results from initialwide-spaced drilling, deeper pattern drillingwill be conducted to delineate resources.Provided near-surface gold grades persistat depth, the project is estimated to havemulti-million ounce gold potential.ABOVE: The Phuoc Son site in Central Vietnam. Mining is under wayat the South deposit and will the North site is being developed.LEFT: Employees at the Phuoc Son site74 - The ASIA Miner - September-October, 2010

www.asiaminer.comVietnamIndicated resources up 40% at Ban PhucDRILLINGdesignedto test and betterdefine the westernsection of Asian MineralResources’ Ban Phuc projectat depth has resulted in anincrease of about 40% inmeasured and indicated nickelresources.Contained nickel in themassive sulphide deposit hasincreased by about 13,000tonnes above the previousestimate announced inFebruary 2009 while containedcopper increased by6000 tonnes.The 150sqkm Ban Phucnickel-copper project is inSon La province, north-westernVietnam, about a fivehour drive from Hanoi. Theresource includes a highgrade massive sulphidedeposit and a large lowergrade disseminated sulphide deposit.Construction of the project, which is targetingannual production of 60,000 tonnes of concentratecontaining nickel, copper and cobalt, wassuspended in October 2008 when metal priceswere under pressure from the financial crisis.With more than 1000 metres of undergrounddevelopment and 80% of all plant equipmentpurchased, the project is about 65% completeand is under care and maintenance pendingreceipt of funding to complete construction.In January 2010 the company received $5.9million proceeds of an equity financing whichpermitted it to begin undertaking activitiesrequired to determine the basis and timing onwhich the project could be restarted and completed.The purchasers included Malaysia SmeltingCorporation Berhad and Asian Lion Limitedwith the former now holding 29.6% of the companyand the latter 13.6%.The increase in containednickel is principally a result ofdrilling in the western sectionof the deposit with the majorityof the new resource reportingto the indicated category.In addition, data derivedfrom underground stope definitiondrilling and channelsampling of new massive sulphideexposures in undergrounddevelopment resultedin a significant movement ofresources from inferred intothe indicated category, addingfurther to the confidence inthe resource.The remaining inventory ofthe inferred mineral resourcehas reduced by about 5000tonnes of nickel and 3000tonnes of contained copper incomparison with the February2009 estimate.There are now measured and indicatedresources of 1.69 million tonnes @ 2.68% nickel,1.19% copper and 0.06% cobalt for 45,326tonnes of nickel, 20,143 tonnes of copper and1064 tonnes of cobalt. There are 170,000 tonnesof inferred resources @ 1.94% nickel, 0.80%copper and 0.03% cobalt for 3303 tonnes ofnickel, 1361 tonnes of copper and 55 tonnes ofcobalt.The ASIA Miner - September-October, 2010 - 75

Thailandwww.asiaminer.com76 - The ASIA Miner - September-October, 2010AEM concludes jointventure for coal projectTHE Artist and Entertainment Group the joint venture.Bangkok, are but mere stepping stones in the(AEM) has concluded an incorporated Om Koi Energy and Resources Co will be energy and resource related future of thecooperative joint venture agreement the incorporated vehicle for the joint venture. company.”with 99 Thuwanon Co to proceed with developmentof the Ka Ber Din Coal Project.The agreement is subject to completion ofa share purchase agreement in accordancewith Thai law and condition precedent thatinclude execution of a management agreement,a finance facility agreement and productionof a project feasibility report.AEM is at present negotiating the revisedshare purchase consideration with 99Cobefore completion of the share purchaseagreement.AEM, represented by its Thai subsidiaryOzThai Coal, will hold a 49% interest in thejoint venture while another subsidiary,Powgen Mining, will obtain the managementrights of the Ka Ber Din project on behalf ofThe Ka Ber Din project is about 163kmfrom the city of Chiang Mai in the Om Koidistrict of northern Thailand. 99Co proposesthat the coal be crushed and sized thentrucked to a stockpile from where it will besold. Potential customers include cementmanufacturers, power stations and boilerusers in the sugar, paper and pulp industrieswithin Thailand.AEM is finalizing negotiations to secureadditional mining application rights to aprospective coal-bearing area adjoining theproject site. Other advanced local and regionalinterests are also being pursued.AEM’s chairman Ross Hill says, “Thisjoint venture and the imminent grant of themining licence, which is in its final stages inLast September AEM announced that ithad signed a binding heads of agreement forthe acquisition of a 49.9% interest in 99Co, aregistered Thai company which holds themining lease application for Ka Ber Din.AEM was to acquire its interest by way of adirect acquisition of shares in 99Co.Amendments to the Thai commercial codeand related foreign investment policies in late2009 have meant a revision of the proposedstructure of cooperation with the incorporatedcooperative joint venture agreement being theresult.Consistent with the change of businessdirection to coal and energy resources, AEMproposes to change its name to StradiaEnergy Limited.PTTEP increases oil and gas productionPTTExploration and Production(PTTEP) is increasing oil and gas productionand looking to acquire one ortwo more assets worldwide.PTTEP is Thailand’s second biggest listedfirm and ranks among Asia’s top 10explorers. It is the sixth largest listed oil andgas explorer by market value in the AsiaPacific.The company owns or has interests in 42projects in 13 countries and expects toincrease oil and gas production from254,000 barrels of oil equivalent (BOED) to300,000 by 2014 and to 900,000 BOED by2020.PTTEP has earmarked an explorationbudget for 2010 of 12 billion baht for a totalof 32 wells worldwide. There are 21 ofthese proposed wells in Thailand, 5 in otherparts of South East Asia, 3 in Australasia,and 3 in the Middle East and Africa.PTTEP’s executive vice-presidentAsdakorn Limpiti, who oversees strategyand business development, says the companyis looking at assets in Brazil and othercountries in South America and Africa toadd to its core exploration locations inMyanmar, Indonesia and Australia.“We remain focused on high-quality assetsand our growth objective is more geared to foreignmarkets than the domestic market. Assetsas big as 200 million barrels or more are hard tofind these days, but I think we're looking for atleast a reserve of 100 million barrels.”The company’s production has been boostedthis year with first commercial gas productionfrom the Malaysia-Thai Joint DevelopmentArea achieved in February and delivery is beingramped up to 335 million cubic feet per day(MMCFD) by the fourth quarter.It is also expected to be boosted again in 2011when the Montara and Vietnam 16-1 projectscome on line.Montara, is off the coast of north-westAustralia and was damaged by a severe leak ofgas and condensate, and subsequent fire inAugust 2009. First oil production is expected inthe second half of 2011 at around 35,000 barrelsdaily. The new topside is being constructedwhile contracts for removal of the existing topsideand installation of the new one are in thebidding process.The Vietnam 16-1 project, in which PTTEPhas a 28.5% share, is scheduled to start productionat a rate of 40,000 BBLD in the second halfof 2011. Construction of the well-head platformis in progress.In Algeria the B433a and 416b projects, inwhich PTTEP has a 35% share, are due to startproducing oil by 2012 at the earliest and at arate of 20,000 barrels.The front end engineering design along withthe engineering procurement and constructionare under way.PTTEP’s M9 project off the coast ofMyanmar is due to start production of gas in2013. Expected production is 300 MMCFDwith 240 of this to go to Thailand and 60 toMyanmar. A gas sales agreement is before theMyanmar authorities and is expected to beapproved.The company says its key exploration areasare in the Gulf of Moattama off the coast ofMyanmar, adjoining the M9 project, and innorth-west Australia, adjacent to Montara.

www.asiaminer.comCambodiaDrilling at Anchorconfirms mineralizationDRILLINGand trenching bySouthern Gold at the Anchor projecthave confirmed further significantgold, silver and base metal mineralization.A diamond core drilling campaign of 19drill holes for about 2100 metres has beencompleted at Anchor with the best assayresults being 4.3 metres from 147 metres@ 4.76 grams/tonne gold, 136.1 grams/ -tonne silver, 1.4% copper and 0.4% zinc.Other assay results include1 metre from66 metres @ 11.36 grams/tonne gold, 64.5grams/tonne silver, 0.4% copper and 1.7%zinc; 1 metre from 45 metres @ 1.22grams/tonne gold, 6.0 grams/tonne silver,0.04% copper and 0.02% zinc; and 1metre from 57 metres @ 1.04 grams/tonnegold, 9.2 grams/tonne silver, 0.05% copperand 0.05% zinc.Alteration, veins and sulphides wereintersected in all 19 holes.Drilling so far has only focused on a200 metre wide section, with the potentialof the large 800 metres by 1000 metresmineralized zone identified by SouthernGold at Anchor yet to be fully tested.A cross-section of these recent drillingresults indicates that mineralization ischaracterized as a series of sub-parallelzones carrying significant levels of gold,silver, copper and other metals.More veins and brecciated mineralizedzones are likely to be identified at Anchoras the drilling results are received andgaps in the section are drilled.A 2445 metre trenching program hasalso been completed and assay results arestarting to come in, including 1 metre @9.14 grams/tonne gold.Based on the mineralization now identifiedat Anchor, Southern Gold anticipatesthat infill resource drilling will beginduring the fourth quarter of 2010.Anchor is within an interpreted 10kmby 10km cluster of dioritic intrusiveprospective for intrusive-related epithermalgold vein systems and polymetallicgold skarns.Gold mineralization at Anchor and thenearby Ok Pok prospect are associatedwith quartz/sulphide veins hosted in silicifiedmetasediments and intrusive diorites.Southern Gold is sole funding explor -ation on its Anchor prospect, which is onthe Snoul licence, one of the company’sfour 100%-owned tenements inCambodia.It also has three tenements in a jointventure with JOGMEC.The ASIA Miner - September-October, 2010 - 77

CambodiaELRAY Resources plans to carry out1500 metres of diamond core andreverse circulation drilling at thePorphyry Creek gold and copper prospectbefore the end of 2010.The drilling program is part of ongoingexploration aimed at defining mineralresources by April 2012.The 90sqkm Porphyry Creek prospect,290km north of Cambodia’s capital PhnomPenh, is the primary focus and will be the firstprospect to be drilled.This follows stage 1 exploration whichcomprised geological mapping, geochemicalsampling, geophysics and definition of drilltargets.As well as the initial drilling, the stage 2program includes preliminary metallurgicaltest work and scoping studies.Results continue to confirm the potential ofthe copper and gold project, and will greatlyassist the company as it actively seeks thenecessary funding to advance development.The project is in an area considered to havepotential to host a copper porphyry system Old workings at one of Elray Resources’ properties in Cambodia.with copper and gold mineralization.Porphyry Creek is a multiple style mineralizationproject.An NI 43-101 compliant, independenttechnical report has been prepared whichdescribes the essential features of the company’sexploration and program recommendations.It reported on samples and observed aninteresting new style of mineralization forCambodia on the south-west edge of theground that suggests there is a copper porphyrythat underlies the project, either directlybeneath the sampled outcrop or in a reallyclose sense.The ground falls across 2 topographic and2 geological map sheets with the south-westerncorner near the junction of the map sheets.The ground is variably hilly rising from about60 metres to 190 metres in elevation.It is crossed by a number of small streamswith a major stream, the Stung Sen, which isabout 5km to the east.With the help of geological maps, knownsites were plotted according to the geological Artisanal miners working at the Angkor Wat property.settings with sampled projects.This showed the presence of mapped intrusivesthat could be centrally located or proximalenough to drive a hydrothermal system tocreate some of the observed metal occurrences.The intrusions have been mapped showingsegredation and possible complex emplacementlate into a pre-existing mixed assemblageof rocks.The suggested structural setting is complexand extensive, and the timing of the intrusivesis similar to other porphyry deposits in Asia.Trenching work has intercepted three mineralizedzones on which the company isfocusing its efforts.There is no infrastructure or electricity onthe Porphyry Creek property.Electrical power, required to conductexploration activities, is provided by dieselgenerators brought to the site.Adequate water supplies for the early stageexploration camp and drilling equipment isreadily available.Evidence of artisanal workings at the Senator prospect.78 - The ASIA Miner - September-October, 2010www.asiaminer.comDrilling program at Porphyry Creek prospect

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Laoswww.asiaminer.comBauxite feasibility studyWORK on the feasibility study forOrd River Resources’ bauxite projecton the Bolaven Plateau ofChampasak province is progressing well andthe company is confident the study will provepositive.A joint venture has been formed betweenOrd River and China Nonferrous MetalIndustry’s Foreign Engineering andConstruction Co (NFC) called Sino AustralianResources (Laos) Co (SARCO).Ord River holds a 49% interest in SARCO,which has signed an MoU with its Lao partner,Lao Service Incorporation (LSI), to forma joint venture called China Laos AluminiumCo (CLACO).CLACO intends to mine the LSI andYuqida bauxite deposits and set up an aluminarefinery annually producing 600,000tonnes.SARCO is investing Aus$5.3 million in thestudy, which is being carried out by SinomineResource Exploration Co.As part of the study, mapping, surveyingand sampling work is taking place on bothprogresses welltenements.At the LSI tenement, which totals8.49sqkm, a topographic survey for ore blocks1, 12, 14, 15 and 16 is 15% complete whilegeological mapping and geological map surveyingare also 15% complete. An exploratoryline survey is 10% complete while a hydrologicengineering and environmental geologysurvey is 15% complete.The sampling for rock-mineral determinationat LSI is 30% complete and sample processingis 20% complete.At Yuqida the UXO for ore block 1 is 20%complete and past drill hole analysis for thesame block is 40% complete.A traverse geological map has been surveyedfor a distance of 10km while a temporaryshortcut has been constructed for 3km,which involved land clearing.A 1:5000 topographic survey for ore block1 is 10% complete and drill preparations forthis block are 40% complete with the explorationdrilling program 55% complete.The construction of access and clearance ofland for ore block 1 has been completed as hasthe documentation of geology, hydrogeology,engineering geology and environmental geology.All sampling and processing for explorationdrilling of block 1 has been finalizedwhile the standard penetration and dynamicsounding has been tested 3 times at Yuqida.CLACO hopes to submit a mining licenceapplication to the Lao government in early2011 once the feasibility study has been completedand approved.Ratchaburi is building power plants in Laos.80 - The ASIA Miner - September-October, 2010Ratchaburi boosts power supplyRATCHABURIElectricityGenerating Holding expects tobegin commercial operationsat the US$3.7 billion Hongsa ThermalPower Plant in the Xayaburi district in2015.The new 751MW coal-fired plantwill supply power to Laos as well asneighbouring Thailand following thesigning of a 25-year power purchaseagreement with the ElectricityGenerating Authority of Thailand.The plant is being built by HongsaPower Company, a joint venture with40% held by Ratchaburi, 40% byBanpu and 20% by Lao Holding StateEnterprise.Hongsa Thermal Power Plant willbe a significant electricity source instrengthening the power system forThailand and Laos by supplyingpower to industrial and household sectors.Hongsa is one of four projects thatThai company Ratchaburiis involved with in Laoswhich will provide totalcapacity of 1108MW.There is also the US$1billion 153.75MW NamNgum 2 HydroelectricPower Plant, the US$1.01billion 110MW NamNgum 3 HydroelectricPower Plant and theUS$865 million 98MWXe-Pian Xe-NamnoyHydroelectric PowerPlant. Ratchaburi has 25%interests in each of these projects.Nam Ngum 2 is nearly complete and due to bein operation by the end of the year while the NamNgum 3 and Xe Pien Nam Noy are expected tostart producing power by 2017.The Laos projects form a major component ofRatchaburi’s plans to invest US$511 million inenergy generation projects to the end of 2016.The expansion in Laos is part of a strategy tosustain performance in the long term and diversifythe risks from possible shortages of fuels inThailand.Ratchaburi’s president Noppol Milinthan gg -oon says, “After all of the projects in Laos arefinished, our power capacity will increase by27% to 5518 megawatts in 2016 from 4500MWnow.”The figures do not include plans to acquireoperating assets, as the company is now negotiatingwith other power generation operators. Aswell, it aims to acquire shares of power operatinglicence holders.“If the combined capacity target includes theacquisition plan, it would rise to 7800MW in2016 or by 73% from now.”The company is confident it can fund all of theinvestments as it already has earmarked cash onhand of about 10 billion baht for ongoing projects.For mergers and acquisitions, it has agreementswith commercial banks for up to 25 billionbaht in financing.“We are not only talking about acquiring projects,we also have put in bids to build and operatepower plants in South East Asia, such as independentpower producer businesses in Indonesia,the Philippines and Vietnam.“It is the first time for Ratchaburi to invest inother countries in addition to Laos, so we have tobe very careful about our moves.”

www.asiaminer.comDrilling seeks deeperore at Raub projectTHE first phase of a diamond drilling programis under way at Peninsular Gold'sRaub project in Malaysia with the objectiveof targeting the expected deeper fresh orebelow the shallow oxide material.Results from the first phase of the program willbe used to confirm targeting for the rest of theprogram, which will continue for the remainderof 2010.The company is also upgrading the plant atRaub and expects this work to be completed inthe first quarter of 2011.Australian engineering company GREngineering Services is reviewing the designs ofthe upgrade following latest confirmatory testwork. The additional design work is expected toenhance the efficiencies of the plant.Peninsular’s chairman and chief executiveOutcropping at the Tersang property.Grange sells Bukit Ibam stakeGRANGE Resources hasentered into a sale and purchaseagreement for thesale of its 51% interest in the BukitIbam magnetite mine.The interest has been sold toGrange’s Bukit Ibam joint venturepartner, privately owned Malaysianmining company EsperanceMining Sdn Bhd, for a cash paymentof about Aus$3.5 million.Grange has also reached anagreement for the sale of its 100%interest in the Malaysian TailingsRetreatment Project adjacent to theBukit Ibam mine to Hoh Seng FuiTrading for a cash payment ofabout Aus$1 million.The company earlier this yearcommenced sale negotiations forthe operating Bukit Ibam projectwith Ophir Mining and ExplorationSdn Bhd but this fell through.The Bukit Ibam mine in Pahangstate operated from 1962 and producedabout 22 million tonnes ofhematite and magnetite ore beforeclosure in 1970.Exploration completed by thejoint venture delineated a measured,indicated and inferredDato Sri Andrew Kam says thecompany’s initial plan with the 1.1million tonnes/annum plant was toannually produce an average of25,000 ounces of gold from tailingsover the life of the tailingsresources.“We have revised our strategywith the aim of significantly increasinggold production by upgrading ofthe Raub plant and have securedfinancing facilities to fund the necessarywork. The upgraded plantwill have a crushing and milling circuitto enable the annual processingof up to 2 million tonnes, includinghigher grade material as well as tailings,and will be capable of producing up to100,000 ounces of gold each year. Withthe plant upgrade, we should seeimproved production levels during 2011.“The company intends to identify furtherresources of at least 1 million to 2million ounces of gold at Raub, bothfrom the envelope of the previous undergroundworkings and from the verticalextension of the high grade zones recentlyidentified in the shallow oxide ore.“The first phase of the explorationprogram will include reverse circulationand diamond drilling with a focus on thevertical extension, to a depth of 150metres, of the veins that form the currentJORC compliant oxide resource of218,000 ounces of gold.“Further explorationresource of 831,000 tonnes grading36.7% iron.This resource was expected toprovide a mine life of about threeyears with potential expansion andmine life extension opportunitiesavailable from existing low gradestockpiles and tailings dams nearby.A new processing plant capableof annually producing 100,000tonnes of magnetite concentratewas commissioned at Bukit Ibamin early 2009.A total of 27,180 tonnes of concentratewas produced in the sixmonths to December 31, 2009 andGrange received its first dividendof $32,800 in November 2009.Grange’s managing directorRussell Clark says, “We arepleased to have finalized the sale ofour interests in Bukit Ibam and theassociated tailings area.“As Australia’s leading magnetiteproducer, the sale enablesmanagement to focus its attentionon our significantly larger SavageRiver operations and the developmentof the Southdown MagnetiteProject, both in Australia.”Drilling at theRaub projectwork will also target thedeeper main lode, whichhas been known historicallyto produce over 10Malaysiagrams/tonne of gold.”Peninsular has been granted two explorationlicences at its Tersang project area, about 20kmnorth of the Raub project. One licence is at KgTersang, Mukim Batu Talam, District of Rauband covers an area of about 6786 hectares. Theother is at Sg Tenggalen, Mukim Telang, Districtof Lipis and covers about 2921 hectares. Bothlicences have been granted for three years.The company has now been granted a total areaof 12,149 hectares along the northern extensionof the highly prospective Raub gold strike.Previous exploration has already outlined numerousgold anomalies in the new licence areas, inthe vicinity of Tersang and Chenua.The company now has the opportunity to furtherexpand its exploration and drilling programand is confident that these new grounds will leadto the discovery and development of further significantgold deposits.It believes that Tersang could potentially yieldup to 1 million ounces of gold, and expects thatthe deposit will eventually merit the constructionof a dedicated processing plant.The ASIA Miner - September-October, 2010 - 81

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