ParibasSofremines Privatisation of Balkhasmed Kazakhstan 13

DESCRIPTION OF BALKHASHMED’s
COPPER SUPPLY BASE

1.  DESCRIPTION OF OREBODIESWHICH form the COPPER SUPPLY base of “BALKHASHMED”

1: Kounrad mine is located in Zhezkazgan region 14km North of Balkhash. The ore body is fully explored. It consists of CuMo veinletdisseminated ores in a massive stockwerk. It is in exploitation since 1934.

2: Sayack mine is located in Zhezkazgan region, 205km East of Balkhash. The ore body is fully explored. It consists of Cuskarn ores in the form of small lenses, nestlooking bodies and strata. It has been in exploitation as a quarry (marble) since 1970.

3. Boshikul mine is located in Ekibastuz district of Pavlodar region, 100km from the town of Ekibastuz. 18km North of Boshikul railway station. The ore body is fully explored. It consists of Cu porphyry type of ores in form of massive bodies. Today, Boshikul is ready for exploitation.

4. Acktogay mine is in Semipalatinsk region, 22km East from the railway station Acktogay and 420km East of explored in detail. It consists of veinletdisseminated Cu Balkhash. It has been porphyry ores in the form of a massive ore body (stockwerk).

5. Aidarly mine is also in Semipalatinsk region, 20km East of the railway station, 25km East of Acktogay ore body and 440km East of Balkhash. It has been explored in detail. It consists of CuMo veinletdisseminated ores.

6. Karatas ore body is in Zhezkazgan region, 100 km West of Balkhash. There are three areas: Karatas1, Karatas2 and Karatas4 that are located at a distance of 200800m from each other. They are fully explored. They consist MoCu and CuMo veinlet-disseminated ores in steep ore bodies of irregular form.

ALL THESE OREBODIES DESCRIBED ABOVE ARE SUITABLE FOR SO CALLED “OPENPIT EXPLOITATION”.

2.  MAIN PARAMETERS OF MINE AND CONCENTRATORPROJECT BOSHEKUL

Technical-economic data on Boshikul projected concentration plant are presented in table9.5. Calculations of costs are presented in tables 9.6-9.10.

Comparison of the project main data updated with data of projects for the year 1999 is presented in table 9.1.

2.1.  BOSHIKUL MINE-CONCENTRATION COMPLEX (BMCC).

2.1.1.  Introduction.

Information on the main technical decisions for concentrator project of Boshikul MCC.

2.1.2.  Primary data for projecting.

Location of concentration plant and tailings dump, including system for recycling of wastewater to the plant, will take place 23kmN from the railway station of Boshikul, in Pavlodar region.

Buildings, plant and equipment will be installed on an industrial area together with mining equipment and auxiliary units.

Ore base for the complex is CuMo ores of Boshikul ore body. Mining of ore will be by openpit with transportation of ore by trucks.

According to the treatment plant’s process, kaolinised and sulphide ores will be treated separately. And, in the future, the plant will treat sulphides only.

Technology of treatment had been adopted based on results of semiindustrial tests.

2.1.3.  Main decisions of the projects.

2.1.3.1.  Preliminary general plan, list of main plant and equipment and boundaries of the project.

Main buildings, plant and equipment are the following:

- primary crusher building:

- storage of crushed ore;

- concentrator building;

- filtration unit and storage of concentrates building;

- reagent preparation building;

- s dump with system of hydrotransport and recycling of water system.

The project of all the units and buildings was made by the Institute “ Sredazniprotsvetmet” (Tashkent). All the geological data are available at the Ministry of Geology and preservation of earth resources of Kazakhstan.

2.1.3.2.  Technology and list of main equipment.

The technology consists of :

- primary crushing of ore transported from the open pit mine;

- separate storage of crushed kaolinized and sulphide ores;

- separate treatment of two sorts of ore in separate treatment lines;

- water removal from the concentrates and their transportation by rail to Balkhash;

- reception and preparation of reagents;

- system of tailings hydrotransportation and recycling of wastewater to the plant.

List of main equipment (see table 1. in the Russian text).

The project is based on equipment and materials procured from the CIS, except the following;

- mills for autogenous crushing and ball mills in ore cycle;

- flotation cells;

- ceramic vacuum filters;

- pumps for the ore cycle and hydrotransportation;

- system of express analyses, including dosing of reagents and automatic control.

Final choice of equipment will be made after basic engineering studies.

2.1.3.3.  Design decisions. Numbers of sketches only.

2.1.4.  Electricity.

Supply with electricity from substation 220/35/6kV, voltage of the line is 220kV.

Outside voltage 220kV, inside voltage 10 and 6kV.

Feeding circuits with voltage 660V and 300V, light 220V.

Numbers of sketches of electricity supply.

2.1.5.  Automation of technological processes.

Automatic system of management of technological processes of flotation plant is based on modern means of collection, transportation and analysis of information.

Structure of system of management of concentration plant is given on picture 1.

2.1.6.  Local conditions of industrial area

2.1.6.1.  Climate

- normal snow covering 100kg/m2;

- pressure of the wind at altitude 10m above ground level is 45kg/m2;

- minimum temperature 36°C;

- depth of soil freezing is 2.4m.

2.1.6.2.  Soil conditions.

Grounds:

- gravel ground from alevrolites;

- gravel ground from diabases;

- impossible to read (NDTR).

Hydrogeological conditions. Underground water table down to 1015 is not aggressive for concrete made of different types of cement.

2.1.7.  Parameters of concentration. (see Table 2. in the Russian version)

3.  ANALYSIS OF POSSIBILITIES OF EXPLOITATIONOF KUSMURUN AND AKBASTAU CU-OREBODIES

(as of December 1994)

3.1.  General data.

Kusmurun and Akbastau ore bodies are situated in Chubartau district of Semipalatinsk region, along the highway AyaguzKaraganda at a distance of 35 km from the highway. AKBASTAU deposit is situated in 5-8 km N-W from Kusmurun.

Closest railway stations are Ayaguz (270km) and Sajak (200km). There is a asphalt road to Ayaguz. There is a dirt road to Sajak but this road is not available in wintertime.

Karagaily mineconcentrator complex is situated in 170 km to the West. It treats own polymetallic ores and uses 4050 % of its capacity.

The region of the ore bodies is not industrially developed. There are no high voltage line, industrial nor drinking water. Water deposit at Kainar (100 km NW from Kusmurun) may be used. Nowadays, water from drillhole N508 near AKBASTAU is used (50100m3/day).

Electricity supply will be possible by the construction of a high voltage line of 80km.

Economical and geographic conditions of the region show, that nowadays, the construction of enterprises for treatment is not possible, because of the necessity of capital investments for industrial infrastructures and communications, and a concentration plant.

As for mining of rich Cu ores, their exploitation is possible with the use of diesel equipment and watch method of work (non fixed personnel working on X weeks at field basis and Y weeks leave).

3.2.  Reserves of Kusmurun and AKBASTAU.

3.2.1.  1.1 KUSMURUN

There are several lenticular ore bodies. One of them, “Upper” is situated close to the surface and can be mined by open pit method.

Mineral composition is: pyrites, chalcopyrites, sphalerites, galenites. In the oxidised part of the “Upper” ore body is gold contained in socalled “iron hat” from which was extracted about 9tAu to a depth of 4045m. The rest of the ore is 21.0kt with an average Au grade of 8.05g/t (169kgAu).


Reserves (B+C1+C2): ore 17.2Mt, average Cu grade 4.2%. Pb34400t; Zn223600t; Au 27.5t; Ag 452.36t. Of which in the “Upper” ore body: ore 3.08 Mt with average Cu grade 4.54%. Zn2.25%. Au 2.39g/t; Ag 33.17g/t. Metal reserves: Cu 140.2kt; Zn69kt, Au 7385kg; Ag 102.3t.

In addition to metals there is sulphide sulphur in the “Upper” ore body. Average grade is 39.76% (1.23 Mt), of which pyrites S35.9% (1107Mt).

Average Cu grade in ore for open pit method of mining is: 5.26% (for economical calculation).

3.2.2.  AKBASTAU

There are three ore zones with two large massive ore bodies and eleven lenses and smaller ore bodies. Ore bodies are close to the surface and are covered by 1520m of sediments. Mineral composition is similar to that of Kusmurun.

Total reserves of ore are 16.2Mt: Cu331.3kt ; Zn133.72kt ; of which for open pit mining (at depth lower than 170m) 10.7Mt. Cu196.3kt with average grade 1.83%Cu; Zn122.72kt with average grade 1.15%Zn. Au 5942kg with average grade 0.85g/t; Ag 151.56t with average grade 14.16g/t. Sulphur grade 5.288.09%.

Average calculated Cu grade in ore for open pit mining is 2.16%Cu (for economical calculation).

3.3.  Concentration characteristics ofKusmurun and Akbastau ores.

Concentration characteristics of Kusmurun and Akbastau ores were determined by the USSR all union Institute of non ferrous metals in Leningrad. Results are the following:

3.3.1.  Kusmurun ore :

- Cu concentrate with Cu grade 14.26% (Cu recovery into concentrate 77%) Sulphur grade is 3539%;

- Zn concentrate with Zn grade 15% (Zn recovery 52%);

- pyrites concentrate.

3.3.2.  AKBASTAU ore:

Cu concentrate with Cu grade 22.7% (recovery 85%), Sulphur content 29.9532.04%;

- pyrites concentrate.

There are no results of industrial or semiindustrial tests.

3.4.  Possible schemes of mining, transportation and treatment.

There are 3 possible options:

I. Exploitation of the upper parts of the ore bodies by open pit method (watch method). Transportation of the ore by trucks (270km) to Ayaguz railway station and unloading onto storage yard. Transportation by rail (550km) in 65t wagons that requires to use the bunker of the molybdenum section at Balkhashmed concentration plant. Treatment at the Cu concentrating. plant of Balkhashmed would be possible if transportation were by 105t wagons instead of 65t (unloading facilities limitation).

II. Mining according to option I, with transportation of the ore by trucks to the concentration plant of Kargaily, with treatment, possibly on custom basis, and production of Cuconcentrates and Znconcentrates. Transportation by rail (650km) to Balkhashmed

(Cu concentrates) and UstKamenogorsk PbZn combinate (Znconcentrates). Pyrite concentrates sent to the tailings dump of Kargaily combinate.

III. Mining according to option I, transportation of ore by trucks to Sajak (200km), then by rail to Balkhashmed Cuconcentration plant (another 200km).

The most difficult option is III, because 200km road without asphalt covering is not available for transport during winter time. And in summer time, it’s not good enough for heavy 3540t trucks.

Construction of improved road needs about 1000MTe. So, option III should be excluded from the projections.

3.5.  Annual capacity of Kusmurun and Akbastau minesand their organization.

According to estimates of the Institute “Kazgiprotsvetmet” in 1994, mining capacity can be up to 550kt of ore. Feasibility of transportation is 200kt/year (to be confirmed).

Capacity of the unused Mo concentrate section of Balkhashmed is 220kt/year. Experimental plant of Kargaily (for Cu concentrate) is 300kt/year. It would necessary to examine the possibility of ore treatment in the PbZn plant of Kargaily combinate, which has a capacity of 2.0Mt/year.

Taking into consideration the above, we suppose it is possible to undertake organization of Kusmurun mine by means of the Sajak mine, with a capacity as per optionI i.e. 200kt/year, or option II250kt/year, and that of the AKBASTAU mine (after the end of exploitation of Kusmurun ore body): 300kt/year (option I) or 550kt/year (option II).

3.6.  Economic evaluation of exploitationof Kusmurun and AKBASTAU.

I option (treatment of the ore at Balkhashmed)

3.6.1.  Calculation of production.

(see Tables in Russian text, NDTR)

3.7.  CONCLUSIONS

- Technical- economical calculations show effectiveness of exploitation of the upper part of Kusmurun deposit by «watch method» with coefficient of rock removing (total extraction) 2.4m3/t of ore during 10-15 years (depending on annual capacity of production).

- Open pit mining at AKBASTAU, even with an annual capacity 550kt is not economically viable.

- Underground mines are not viable for both ore bodies because of the danger of fire (due to high Sulphur grade of ore) (“Kazhyprotsvetmet”,1994).

- Nowadays at Kusmurun ore body, there exists a jointstock company “Kusmurun”, which owns mining licence N°150 of 28.12.1993. This could create difficulties in case of it’s transferring to Balkhashmed.

- Limited data on the concentration characteristics of Kusmurun ores don’t permit conclusions on its treatment in the concentration plants of Balkhashmed and Kaigarlay. This is because there is no experience of treatment of such types of ore in Kazakhstan (polymetallics Cu, Pb, Zn).

Based on the data available at the time of this analysis, we can see that adaptations of process flowsheet are necessary. The volume of these adaptations may concern 2030 % of the plant (construction of a unit of sedimentation with gravity equipment, additional mills and organization of third stage of milling to achieve a degree of mineral liberation of 94% below 0.074mm. The two existing stages at the plant only provide a 5860% degree of liberation by fine grinding. Additionally, changes in the regime of flotation and reagents, will need to adapt the reagents section.

Presence in Kusmurun ores of free silica (>40%SiO2), may have positive influence on the smelting process as this would decrease the amount of SiO2 containing fluxes that are added in smelter charge preparation. And consequently, this would increase Cu content in the charge.

But additional investigations on the SiO2 content in Kusmurun concentrate are necessary.

4.  KOKSAI Cu OREBODY

4.1.  Location

The Cu porphyry ore body KOKSAI is situated in TaldyKorgan region, 150kmNE from Almaty, 70kmS from Taldykorgan.

This is a mountainous area with maximum elevation up to 1400m above sea level. The climate is sharply continental with precipitations up to 400mm. The administrative centre of the district, Kugaly, is situated in 20km NE from the ore body. There are two operating PbZn mines Tekely and Kocksu, 100km NE from the ore body. Nearest railway station is SaryOzeck (50km). Car road is partially (25km) covered with asphalt.

4.2.  Geology

Cuporphyry ore body KOKSAI is connected with KOKSAI intrusives of midcarbon age, compound by gabbro-diorites, granodioriteporphyry with numerous dykes. The ore body (stockwerk) is located in the northern endocontact with granodiorite porphyry stock with hydrothermal explosive breccias. It has the form of an asymmetrical cone. Sizes from 1709m to 2100m in horizontal projection and more than 1200m vertical extension. There are oxidised ores at the surface.