THE China Molybdenum Company (CMOC) and Sumitomo announced the final approval of an Expansion Project at CMOC-Northparkes Mines (Northparkes) in the Central West of New South Wales early this year, with main construction activities scheduled to commence this quarter.
While the project will include improvements to underground mining, ore processing and facilities to increase processing capacity by more than 15pc, to 7.6Mtpa, full benefits of the project are not expected to be realised till late 2020.
Northparkes managing director Hubert Lehman said the investment will be $72M spread over two years.
“Following the announcement of our next block cave mine, E26 Lift 1 North earlier this year, this is another major investment in the future of our business,” Mr Lehman said.
“This demonstrates CMOC’s confidence in the sustainability and longevity of our operations, enabling us to achieve our vision of ‘A century of mining together’.”
The E26 Lift 1 North was announced in January and consists of 11km of underground development, an underground primary crusher, conveying systems and associated infrastructure.
It includes an upgrade to the ventilation system currently being developed, which will provide the new E26L1N mine with sufficient air flow to support development and production activities and will utilise an increased level of automation and digitisation, helping to deliver a safer and more productive mine.
The investment will be more than $200m over a three-and-a-half year period, producing around 40mt of ore over a 10-year period. Construction commences in January with full production expected in mid-2022.
Comparatively, the new expansion project will be managed by an owner’s team of Northparkes employees and a further 20 positions will be created to execute the project and an additional 100 contractors on-site during construction.
“This project is a major investment in the future of our business and a very exciting time for Northparkes,” Mr Lehman said.
“As we are executing these major capital projects, our Zero Harm approach to every aspect of our operations will be at the forefront of our minds.
“We will continue to care for our people, our equipment, our environment and the community in which we live and work for years to come.
“We believe this approach is why we have been successful for over two decades, and it sets us up for decades to come.”
A total of $300m will be invested in Northparkes over a three-year period to support these projects, which Mr Lehman said demonstrates CMOC’s confidence in the sustainability and longevity of the mine.
“We know the exploration potential of Northparkes and we believe we will discover more copper and gold deposits to take us even further into the future,” he said.
“Northparkes is the world’s most automated underground block-cave mine and we are proud of our history and achievements.”
CMOC Group executive chairman and chief executive officer Steele Li said the company was excited to see the project come into fruition and to watch Northparkes continue to develop and grow.
“Northparkes plays a pivotal role in our strong and long-term presence in Australia as an internationally renowned mining company,” Mr Li said.
25 years of operation
In August the mine marked 25 years of operations, celebrating key milestones such as being the first mine in Australia to use the highly efficient block cave mining method, and in 2015 becoming the world’s most automated underground mine with 100pc of production from automated loaders.
On-site celebrations were held with Northparkes employees, Northparkes’ owner and operator CMOC, and Joint Venture partners Sumitomo Mining Metal Oceania and Sumitomo Corporation Mineral Resources – which have been part of the Northparkes Joint Venture since its inception.
“When CMOC had the opportunity to purchase Northparkes back in 2013, they recognised the potential in not only the business and its future, but the people,” Mr Li said.
“We are excited to watch Northparkes continue to grow and develop.
“The quality and excellence of the people at Northparkes, ultimately contribute to the success and reputation of our operation.”
The company also celebrated the work of eight employees who reached 25 years of service at the site.
“Congratulations to Ian Cowle, Rob Cunningham, Dave Little, Tony Melhuish, Ian Rowe, Brad Mill, Alan Macdonald and Geoff Tilley,” Mr Lehman said.
“This is an incredible milestone that needs to be recognised – we are extremely grateful to have these people a part of our Northparkes team.
“At the heart of Northparkes is our commitment to Zero Harm Operations.
“While this has been described in many different ways over the years, it has evolved into the way we work today.”
Mr Lehman said that the approach includes a commitment to the community in which the staff live and work, with Northparkes assisting the growth of the Parkes and Forbes shires through salaries and funding programs for more than 20 years.
“The support and encouragement of our community, in particular both Parkes and Forbes Shire Councils, has been instrumental in our success,” Mr Lehman said.
“We are extremely proud of the positive and supportive relationships that have been built over the years.
“I would like to formally extend my thanks to both the local communities of Parkes and Forbes for their continued support.”
Mr Lehman said he had always been impressed with the passion and drive of the people who come to work each and every day.
“To all the people who work here today and to those that have come and gone, each and every one of you have played an integral part in what we are celebrating today,” he said.
“The people are what make Northparkes the place it is today.”
Drought conditions
While Northparkes is confident in the longevity of its operations, there remain severe drought conditions in Central West NSW that could have impacts on the mine and surrounding communities.
The mine’s water supply comes from a variety of sources, including the Lachlan River, groundwater aquifers, rainfall and water recycled on site.
Despite the current drought conditions and the associated risks to the region, Northparkes is confident in the ability of local councils and the water regulators in managing the situation with efficient use of available resources, ongoing water conservation measures and the continued implementation of water infrastructure projects.
Mr Lehman said that Northparkes had a longstanding valued relationship with both Parkes Shire Council, Forbes Shire Council and water regulators when it comes to operational water usage which has ensured a responsible and sustainable long-term supply of water to site.
“Parkes Shire Council has invested significantly in the water security of Parkes over the past five years and this proactive, integrated approach has strengthened our ability to withstand the current conditions,” Mr Lehman said.
“Water is our most important natural resource and we all have a responsibility to use it wisely.”
On-site water treatment facilities mean that low quality water can be made suitable for use and the company is committed to remaining focused on minimising and recycling fresh water where possible.
“We are proud to say that we recycle a high proportion of water on site, with a recycling and reusing rate of over 60pc,” Mr Lehman said.
“We have our own water licences, however we share infrastructure with the local councils.
“We have comprehensive management plans to monitor water quality and quantity.”
These include daily and weekly water balances to measure the volume and quality of water inflows, current storage on site, usage, losses, and recycling.
“This information, plus predicted operational requirements and weather patterns, is used to plan for future water use,” he said.
Mr Lehman said continued collaboration with state and local governments and associated regulators is key to ensuring water security during the drought and that as part of its corporate social responsibility, Northparkes will continue planning for the future, by exploring various different options.
“As a business, we remain focused on looking for ways to conserve our fresh water usage onsite, particularly during this dire time,” he said.
