Summary Audit Report
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ICMI Cyanide Code Gold Mining Summary Audit Report Kinross Kupol Mine Russia 2019 Re-Certification Audit Submitted to: The International Cyanide Management Institute 1400 I Street, NW – Suite 550 Washington, DC 20005 USA www.mss-team.com Table of Contents Company Names and Contact Information: ................................................................................. 3 Location detail and description of Operation: .............................................................................. 3 Auditor’s Finding ....................................................................................................................... 11 Auditor’s Attestation .................................................................................................................. 11 Summary Audit Report ............................................................................................................... 12 1. PRODUCTION: . ............................................................................................................. 12 2. TRANSPORTATION:. ........................................................................................................ 13 3. HANDLING AND STORAGE ............................................................................................. 16 4. OPERATIONS .................................................................................................................... 21 5. DECOMMISSIONING ....................................................................................................... 40 6. WORKER SAFETY ............................................................................................................. 43 7. EMERGENCY RESPONSE ................................................................................................ 52 8. TRAINING .......................................................................................................................... 58 9. DIALOGUE ........................................................................................................................ 62 Kinross - Kupol Mine 12/2019, Revision: 7/2020 Name of Operation Signature of Lead Auditor Date www.mss-team.com Page 2 of 64 Company Names and Contact Information: Kinross - CJSC Chukotka Mining and Geological Company Company Name Kupol Mine Mine Name and Legal Address: Rultyegina Street, 2B Location: Anadyr, Chukotka Autonomous Region Russia, 689000 Gavin Jeffrey Ferguson [email protected] Vice President, General Manager, Kupol mine Contact Alexander Cherdantsev [email protected] information: Vice President, Russia, Environmental, Health & Safety Phone: +7(4132) 220507 Magadan Representative Office Location Detail and Description of Operation: The Kupol Gold Mine is an underground gold and silver mine in the Bilibinsky District of the Chukotka Autonomous Okrug of Russia. The mine, which produces gold and silver dore bars, is 100% owned by Toronto based Kinross Gold. Chukotka Mining and Geological Company (CMGC) is Kinross’ wholly owned subsidiary operating entity for Kupol. Majority ownership of the mine was acquired by Kinross Gold Corporation (Kinross) in 2008 and has been 100% owned by Kinross since 2011. The Kupol Gold Mine is located north of the Arctic Circle in the Chukotka Autonomous Okrug. The nearest town is 220 kilometers (140 mi) away. The mine is approximately 330 km (by air) south-southwest of Pevek and 1,230 km northeast of the town of Magadan. The Kupol property covers 1,767 ha, with adjacent areas being Kupol West, Kupol East, Kupol North and Levo- Mechkereva. CMGC maintains administrative and governmental liaison offices in Magadan, as well as a logistics/public relations presence in Bilibino and the Port of Pevek, 400 km due north of the mine. Cyanide, fuel, and other bulk supplies must be delivered by mid-winter truck convoys on an annually constructed ice road connecting the mine to the Port of Pevek. The Kupol site has Kinross - Kupol Mine 12/2019, Revision: 7/2020 Name of Operation Signature of Lead Auditor Date www.mss-team.com Page 3 of 64 modern, self-contained man-camps with a total workforce of approximately 700 to 850 persons per rotation. The total area of the mine site inclusive of facilities is approximately 300 ha. The main Kupol deposit was discovered in 1995. Kinross acquired the Kupol property owner, Bema Gold, in March 2007. Pre-stripping of the Kupol pit began in September 2007. Process facilities and other infrastructure construction continued throughout spring 2008. The mill was commissioned in May 2008. Open pit mining continued through 2009 and 2010 and the open pit was completed in 2011. The underground mine began producing ore in May 2007 with access via the South portal. The Dvoinoye deposit was discovered in 1984.Kinross acquired Northern Gold, the owner of the Dvoinoye property, in 2010. Commercial production by Kinross began on October 1, 2013. The Kupol site is isolated and can only be accessed by air, winter roads, and seasonal summer roads. By winter road, there is a network of roads that is passable between mid-December and mid-April. The main access road from port facilities are from Pevek to the Kupol site. Pevek and Kupol are connected with a combined all-season and winter road for a total distance of approximately 450 km (See figures). Kinross - Kupol Mine 12/2019, Revision: 7/2020 Name of Operation Signature of Lead Auditor Date www.mss-team.com Page 4 of 64 As of 2013 an all-season road has been constructed from Kupol to Dvoinoye. This section of road connects to the road leading to Pevek and permits winter and seasonal summer road access from Pevek to Kupol. A further network of 1,500 km of winter roads and all-season roads connects the site to the southern center of Magadan. The Kupol area is accessible by aircraft and helicopter which land on an 1,800 m airstrip north of the camp. Crews and freight are flown to the site on daily flights from Magadan, which take less than three hours to reach Kupol. Kupol is subject to extremely severe weather consisting of long and cold winters (eight to nine months), overcast weather, and short summer periods (two months). The average annual temperature at the Kupol site is -13°C, ranging from -58°C to 33°C. The total amount of precipitation does not exceed 277 mm. There are less than fifty days that have an average daily Kinross - Kupol Mine 12/2019, Revision: 7/2020 Name of Operation Signature of Lead Auditor Date www.mss-team.com Page 5 of 64 temperature above 0°C; the first positive temperatures occur in early June and the first negative temperatures occur in early September. The overall Kupol-Dvoinoye region is sparsely populated, with approximately 65,000 inhabitants. Of this population, approximately one half of the people live in the districts of Bilibinskii and Anadyrskii. The overall population of the region has declined more than 50% in the last fifteen years. The land surrounding the Kupol site is currently within the land used by the Lamutskoye agricultural community for reindeer herding and supporting traditional indigenous activities for hunting and gathering. The land is owned and administered by the municipality of Anadyr, region of the Chukotka Autonomous Okrug (A.O.) The Kupol deposit is presently mined using underground methods. Another underground operation has been developed at Dvoinoye, a site 100 km due north of Kupol. No separate milling or leaching operations are presently undertaken at Dvoinoye, and ore from this operation is being processed in the Kupol mill and processing plant. The ores from the two sites are processed in batches. In 2015, combined gold production from both mines was 758 563 ounces, in 2018 was 489,947 ounces. Mill throughput increased from approximately 3,000 t/d in 2008 to 3,660 t/d in 2012. In 2013, the plant capacity was expanded to 4,500 t/d allow processing of the Dvoinoye ore at the Kupol mill. Kupol mine production increased over time from 3,000 t/d in 2008 to over 3,500 t/d in 2014. The milling process consists of primary crushing and a semi-autogenous grinding (SAG) mill / ball mill grinding circuit and includes conventional gravity technology followed by whole ore leaching. Merrill-Crowe precipitation is used to produce gold and silver dore bars. Countercurrent decantation (CCD) wash thickeners recover soluble gold and silver, and a cyanide destruction system is used to reduce cyanide concentrations to an acceptable level for disposal. The tailings flow is achieved by gravity through a pipeline to a conventional tailings impoundment. Dore bars are shipped to the non-ferrous metals plant in Krasnoyarsk. Average mill recovery, based on both Kupol and Dvoinoye ore, is 95% for gold and 85% for silver. The mill availability is 94%. The mill is designed to process ore on a two shift per day, 365 days per year schedule, at a rate of approximately 4,500 tons per day or 1,642,500 tons per year. Ore is trucked from the mine to a stockpile and transferred to a coarse ore bin using a front-end loader. From the stockpile, ore is fed via grizzly screens (bars spaced 700 mm) into a coarse ore bin of 150 tons. Coarse ore is then conveyed to a Birdsboro-Buchannan jaw crusher with a discharge opening of 150 mm. Crushed ore is conveyed to a crushed ore bin with 3,500 m³ capacity. Two apron feeders are provided below the crushed ore bin to feed ore to the SAG mill feed conveyor. The first stage of grinding is wet semi-autogenous grinding in a Koppers (Metso) mill Kinross - Kupol Mine 12/2019, Revision: 7/2020 Name