Newmont Gold Company's Mill No 3, Plant Design From An Operator's Viewpoint

INTRODUCTION Newmont Gold Company's Rain operations are located in Elko County, Nevada, approximately 9 miles southeast of the Town of Carlin.The property was submitted to Newmont Exploration Limited in 1979 and underwent development drilling over the course of the next four years, culminating in the completion of a project feasibility study in October 1986. Initial project scope included development of an open pit mine, an 815,000 DSTPY heap leach, a 572,000 DSTPY mill (Mill No. 3), and associated support facilities. Approval to proceed was given by Newmont Gold Company management in June 1987. Detailed engineering began in early July, followed immediately thereafter by procurement of major equipment components through various second hand sources. PROJECT DESIGN Keep It Simple In early August, Newmont Mining Corporation, parent company of Newmont Gold Company, became the takeover target of an "investor" group headed by T. Boone Pickens. Details of the ensuing events have been well documented by the press; suffice to say their impact on this project was material and required immediate flowsheet changes. Project design throughputs were increased to 1,000,000 DSTPY and 760,000 DSTPY for the heap leach and mill, respectively, in mid- September. These changes caused major project headaches as all general arrangement drawings had been approved and structural steel as well as concrete contracts were in place. Additionally, ground breaking was to commence in two weeks time! Rain project management assembled shortly after the announced changes, to devise an engineering and construction strategy capable of handling these new business conditions. The project had been justified using a gold price of $325 per ounce with a forecasted overall cash cost per ounce of $230. Hence, strict control of capital expenditures was necessary to maintain development economics. Mill start-up had also been moved forward one month, to August 1, 1988. To meet an already ambitious schedule, construction techniques needed to be simple and proven as most of the facilities were planned for erection during winter at a site with design criteria of -40F and 90 mile per hour winds. Perhaps the most critical factor requiring consideration was that of personnel. Newmont Gold's revised business plan called for corporate-wide production increases from 587,000 ounces per year in 1987, to 1,400,000 ounces by mid- 1989. Labor requirements were forecasted to grow from 900 employees to over 2,100. This fact, in combination with the rapid growth of Nevada's gold industry, led to the expectation that turnover of operating personnel would be extremely high. It was concluded that, to meet cost, time, and operational goals, the necessary strategy could be succinctly put - "Keep It Simple." Mining/Metallurgical Factors The Rain deposit consists of three interconnecting mineable shapes with host rocks ranging from 90%+ barite to a highly silicified jasperoid. Due to a limited number of mining faces in the first two years, in-pit blending