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PPCO Twist System JANUARY 2013 • VOL 214 • NUMBER 1 FEATURES E&MJ’s Annual Survey of Global Mining Investment Last year’s survey questioned whether the long boom in mining investment was starting to weaken, or just experiencing a temporary market adjustment. This year’s verdict: the boom has peaked.......................28 Tools to Assist in Planning and Design As mining companies face rising costs and volatile commodity markets, making the right design decisions is a must. E&MJ looks at worrying capex trends, and some of the software available to help keep costs under control. ....34 Exploring the Dimensions of Digital Solutions in Mine Mapping Apart from advantages in speed of data collection and analysis provided by digital technology, perhaps its greatest benefit is this: even as mine projects become more complex, the tools needed to map them are getting easier to use ..................................................................................................40 Microwave-based Moisture Measurement of Bauxite Ore on Conveyor Belts Field-proven analyzers offer improved accuracy, a wide measurement range suitable for many applications, and dependable performance in harsh environments........................................................................................44 Special Report: Mining in Democratic Republic of Congo A journey to Africa’s mineral heartland ..........................................................51 In addition to the 2013 Project Survey, this month Preparing for Brazilian Growth E&MJ publishes a GBR report on developments in the Long before the BRIC acronym became popular, Liebherr was helping Democratic Republic of Congo. The cover photo is a Brazil build ....................................................................................................80 night time shot of a heavy media separation plant at Tiger Resources’ Kipoi project, which is processing ore LEADING DEVELOPMENTS mined from the Katanga Copper Belt. Vale Budgets $16.3 Billion Capex for 2013 ......................................................4 Teck Liable in Upper Columbia River Litigation ................................................5 Record Number of Explorers Expected for PDAC 2013 in March........................5 DEPARTMENTS Freeport-McMoRan Acquiring Two Oil and Gas Companies ..............................6 Calendar ......................................................26 AROUND THE WORLD Classified Advertisements............................94 U.S. & Canada: Ring of Fire Forms Focus for Far Northern Ontario Development ..8 Equipment Gallery ........................................92 From the Editor ..............................................2 Latin America: Antapaccay Dispatches First Copper Concentrates ..............14 Markets ........................................................96 Australia/Oceania: Nyrstar Pursuing Transformation of Port Pirie Smelter....16 Operating Strategies ....................................86 Africa: Mimosa Agrees to Zimbabwe Indigenization Plan ..............................18 People ..........................................................12 Processing Solutions ....................................90 20 Asia: OceanaGold Produces First Concentrate at Didipio .............................. Suppliers Report ..........................................88 Exploration Roundup: Tahoe Resources Extends Mineralization at Escobal ..22 This Month in Coal........................................24 Digital Mapping....40 Brazilian Growth....80 Suppliers Report....88 www.e-mj.com JANUARY 2013 • E&MJ 1 FROM THE EDITOR ENGINEERING AND Successful Leaders Make MINING JOURNAL Smart Decisions www.mining-media.com Mining Media International The new year is upon us and many people are wondering Editorial Office 11555 Central Parkway, Suite 401 what to expect in 2013. All of the major mining companies Jacksonville, Florida 32224 U.S.A. embarked on rationalization programs that began in earnest Phone: +1.904.721.2925 during the middle of last year and those efforts will contin- Fax: +1.904.721.2930 ue this year. They sold off “non-core assets” and began to Editor-In-Chief—Steve Fiscor, [email protected] focus on the key projects in the pipeline that hold the most Managing Editor—Russ Carter, [email protected] Steve Fiscor/Editor-in-Chief promise for the long term. This month’s lead news story European Editor—Simon Walker, [email protected] about Vale’s capital investment program for 2013 is a Latin American Editor—Oscar Martinez, [email protected] prime example (See Leading Developments, p. 4). Talking about the company’s deci- South African Editor—Antonio Ruffini, [email protected] sion-making process, Murilo Ferreira, Vale’s CEO, explains the company will invest in Australian Editor—John Miller, [email protected] world class assets with long lives capable of creating value through the cycles. He also mentions project execution, capital management and a reduced cost structure. Associate Editor—Gina M. Tverdak-Slattery, [email protected] Preparing for a softer market, mining companies are fine tuning their rock facto- Graphic Designer—Tad Seabrook, [email protected] ries. They are making sure that existing mines and mills are running at optimum lev- els, usually with an eye toward scalability, should demand suddenly increase. They are Mining Media International also making sure the projects they have waiting in the wings are the cream of the crop. Corporate Office 8751 East Hampden, Suite B1 These are also times that make or break great engineers. Hasty decisions can Denver, Colorado 80231 U.S.A. hurt an engineering team’s image, but most of the time a decision to suspend or Phone: +1.303.283.0640 divest is made for the right reasons. A scrappy mining company will pick up those Fax: +1.303.283.0641 divested non-core assets, thinking they can quickly turn it into a revenue generator. President/Publisher—Peter Johnson, [email protected] If they succeed, the market will reward them, much to the major’s chagrin. Failure VP-Sales and Marketing—John Bold, [email protected] would only reinforce the original decision. Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, [email protected] Annually, the January edition of E&MJ carries the Project Survey (See p. 28), Western U.S. & Canada, Sales—Mary Lu Buse, [email protected] the most comprehensive list of mining projects, their status and their capital budg- Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] et. The survey is compiled by the expert consultants at IntierraRMG (formerly the German Sales Manager—Gerd Strasmann, [email protected] Raw Materials Group) in Sweden. The 2013 Project Survey verifies that investments Rest of World, Sales—Peter Johnson, [email protected] in the mining sector grew by only 9% in 2012, compared to 20% in 2011. But, what may (or may not) surprise readers is the information related to the escalating Classified Advertising—Norm Rose, [email protected] costs for projects. For the last two years, the survey has mentioned how costs Classified Advertising—Tanna Holzer, [email protected] increase dramatically between the feasibility and construction phases. The average Ad Traffic Manager—Erica Freeman, [email protected] increase this year for gold projects was more than 50%. This edition of E&MJ also carries two articles describing how technology is being used to better understand mine design and planning (See Mine Design, p. 34, and Digital Mapping, p. 40). In the mine design article, Simon Walker elaborates more directly about recent cost overruns, while Russ Carter describes how today’s mining engineers are successfully incorporating new digital technologies into mine survey- ing, mapping and design. These two articles conjure a scenario of today’s mining Engineering & Mining Journal, Volume 214, Issue 1, (ISSN 0095-8948) is published month- engineers being able to visualize a project as a living body of work with more para- ly except January and July by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado meters related to development of the ore body, metal values and mining costs. 80113 (mining-media.com). Periodicals Postage paid at Englewood, CO, and additional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return Mining projects are large projects that pose unique challenges that can be diffi- address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: [email protected]. cult to solve. When one looks back at what went wrong with project execution, a lack Current and back issues and additional resources, including subscription request forms and an editorial calendar, are available on the World Wide Web at www.e-mj.com. of leadership is usually one of the main culprits. The leaders of successful engi- SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. neering teams have confidence in their group and make fewer changes along the Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, project path. With a limited number of projects, today’s mining engineers will have $82.00, 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00, 2 year, $249.00 sur- face mail (1 year, $191.00, 2 year, $352.00 airmail delivery). For subscriber services or to to improve project management skills to excel in a more competitive environment. order single copies, write to E&MJ, 8751 East Hampden, Suite B1,
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