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By H. P. Jacobi

"INTRODUCTIONPine Point Mines, operated by Cominco Ltd., is located approximately 65 miles east of Hay River, N.W.T. on the south shore of Great Slave Lake.The milling operation started in the fall of 1965 with a capacity of 5,000 tpd. An addition was put into operation late in 1968 to bring the nominal capacity up to 8,000 tpd. The present milling rate is 11,000 tpd.With a feed grade of approximately 2.9% Pb and 6.0% Zn the annual concentrate production amounts to roughly 130,000 SDT of lead concentrate and 370,000 SDT of zinc concentrate for a total of 1/2 million tons of product.This tonnage is moved by railroad. Pine Point is served by the Great Slave Lake Division (G.S.L.) of the Canadian National Railways which connects to the Northern Alberta Railway System (N.A.R.) at Roma Junction, at Peace River, Alberta. The system in turn connects to the CNR and the CPR in Edmonton, Alberta. From here the concentrates move inland chiefly to Trail, B.C., with some shipment to other Canadian and U.S. smelters, and to the port facilities of Pacific Coast Terminals at New Westminster, B.C. for offshore export.This paper will focus on the problems associated with the movement of lead and zinc concentrates from Pine Point to port facilities on the west coast."

Jan 1, 1975

By J. K. Gowans

"INTRODUCTIONTo bring a mining property into production in the Canadian High Arctic a company must deal with the harsh environment, the short shipping season and the high cost of labour. In trying to minimize the effect of these factors, the concept of a barge-mounted process plant was investigated as an alternative to the conventionally built concentrator. Cominco's previous experience gained at the Black Angel Mine on Greenland's west coast suggested that this would be a practical alternative.The normal shipping season at Little Cornwallis Island is approximately six weeks long, from mid-August to the end of September. All equipment and materials must be delivered during this small ''shipping window."" The logistics problems are enormous; if the conventional approach had been used the major process equipment would have been delivered to Little Cornwallis Island at the same time as the completed barge actually was! Construction would also be starting at the start of the worst climatic conditions, the Arctic winter. Nine months production was gained by opting for the ""Barge"" approach.What the Arctic winters do to the shipping season, so do they affect the productivity and the cost of labour. Construction labour must come from southern Canada. Thus higher transportation costs and higher wage rates, with more overtime and incentives, increase the labour costs to approximately 50% over normal southern rates. Couple these rates with the lower productivity involved with men working in the extreme cold temperatures and the net effort is worth avoiding. A process plant being constructed in Southern Canada can take advantage of more accessible labour at lower costs, increased productivity and a faster construction schedule. The barge concept must still deliver the equipment and materials during the ""shipping window"" but it can in the completed form."

Jan 1, 1983

By G. R. Morin, A. R. Leggett

"In 2010, closure of the Kidd metallurgical plants along with structural changes to the historical ratios of payable metals led to a review of the operating targets at the Kidd concentrator. Previous operating data indicated that there was potential for significant revenue improvements by lowering the copper concentrate grade. An extended plant trial was carried out in 2011 to quantify the revenue impact of lowering the copper concentrate grade from 27% to 25% Cu, as well as identifying the lower practical grade limit. Analysis of plant trial results indicated that the process change increased net concentrate revenue by $2 M to $3 M per year at current metal prices. Increased revenue was primarily associated with higher silver recovery to the copper concentrate while the marginally improved copper recovery was essentially offset by increased zinc losses and concentrate treatment and freight charges.Details of the plant test work results are discussed in this paper along with the financial analysis of the revenue improvements. Key areas covered are major revenue components of the concentrate contracts, validation of revenue improvements through plant testing and sensitivity of the improvements to market and plant variables.INTRODUCTIONThe Xstrata Copper Kidd concentrator commenced operations in 1966 treating ore from the nearby Kidd volcanogenic massive sulphide deposit in Timmins, Ontario (Thompson, Amsden, & Chapman, 1978). Over the years, up to four separate grinding-flotation divisions were in operation with throughput rates peaking at 4.5 million tonnes per year of ore in the mid 1980’s (Kelebek & Francis, 1998). As the mine production decreased and grinding throughput increased operations were gradually cut back and since 1998 two grinding-flotation divisions have been in operation treating Kidd mine ore. One of the idled divisions has been intermittently used for custom milling operations, most recently the Ni/Cu Montcalm deposit, which was milled from 2004 to 2009. Current budget throughput rates, limited by mine production, are 2.4 million tonnes per year of ore grading 1.7% Cu, 4.3% Zn and 55 g/mt Ag. Concentrate production rates are 150,000 tonnes per year of copper concentrate and 155,000 tonnes per year of zinc concentrate. The Kidd mine is the deepest base metal mine in the world with mining operations down to 9600 ft.In 2010 the copper and zinc plants at the Kidd metallurgical site, which previously treated the concentrate production from the Kidd concentrator, ceased operation due to a variety of economic and market factors. Following the metallurgical plant closures the Kidd concentrator products were shipped off site for treatment. The majority of the copper concentrate is now processed at the Xstrata Copper Horne smelter in Rouyn-Noranda, Quebec with the majority of the zinc concentrate processed at Canadian Electrolytic Zinc Ltd. in Valleyfield, Quebec."

Jan 1, 2013

By Pierre Beaudoin

"This paper deals with the repairs made on two damaged mills. It investigates briefly the causes of the damage, explain its nature and the design of the repair. It explains the detrimental effect on operation and the solutions implemented to reduce them. Finally, to review the follow-up required for such repairs. LOCATIONThe Holt McDermott Mine is located 75 kilometers Northeast of Kirkland Lake and 30 kilometres west of the Quebec border in Northeastern Ontario. The town of Kirkland Lake is located approximately 500 kilometres north of Toronto. HISTORYThe discovery of gold in Holloway Township dates back to early 1920. In 1984 Barrick Resources, which amalgamated with Camflo Mines, acquired more claims on the property and initiated an extensive drilling program. By 1985, the drills indicated reserve increased to 2,500,000 tonnes grading 6.8 g/mt. In 1986 a production decision was made and in 1988 the mine was officially opened.As of December 31, 1998, 4,691,507 tonnes grading 5,66 g/tonnes have been milled from 4 ore-bodies. The mill started up in June 1988."

Jan 1, 2001

By N. Romani, R. Provost

"Commissioning of a circulating dry scrubber (CDS) plant was recently completed at an existing facility in Québec, Canada. The CDS plant treats the sulphur dioxide off-gas emitted from rotary kilns in order to meet increasingly stringent environmental requirements. This installation enables the existing facility to reduce their sulphur emissions by over 90%.Proper planning of the different commissioning stages and staffing an integrated team are the most important factors required for a successful plant start-up. A strong Operational Readiness plan must be in place as early as the start of construction in order to ensure a smooth transition from commissioning to operations. Plant performance can meet or exceed performance criteria within the required timeframe if the proper group dynamic and good communication is established between construction, commissioning and operations teams.The road blocks encountered are often from systems that one assumes will operate without trouble such as air-conditioning, or design assumptions that were taken years earlier in feasibility process stages, namely the capacity of existing systems that will connect the new plant to the existing facilities. The challenges associated with rectifying these issues in addition to the requirements to properly start-up and operate a new plant without impacting production are great, and it is imperative to have the necessary resources to react quickly to any problems.IntroductionCommissioning of a circulating dry scrubber (CDS) plant was recently completed at an existing facility in Québec, Canada. The CDS plant treats the sulphur dioxide off-gas emitted from rotary kilns in order to meet increasingly stringent environmental requirements. This installation enables the existing facility to reduce their sulphur emissions by over 90%.The CDS ProcessA general overview of the CDS process is presented in Figure 1 below. The combined, de-dusted off-gas from multiple kilns is sent to the CDS, which acts as an entrained fluid bed, where the gas is contacted with a water mist, re-circulated solids and hydrated lime. The SO2 from the gas stream and the available calcium hydroxide (Ca(OH)2) from the hydrated lime dissolve in the water and react to ultimately form calcium sulphites and gypsum. The solid residue (referred to as CDS residue), is the primary by-product of the process."

Jan 1, 2016

By David Stephenson, Hugo Granados, Steven Klohn

"HudBay’s Constancia project is a copper molybdenum concentrator located in southern Peru. In 2010 Ausenco was contracted to perform a feasibility study optimization review which resulted in an improved design with significantly increased throughput capacity at a minimal increase in capital cost. Construction began in 2012 with commercial operation commencing in May 2015. This paper outlines the process plant design as well as describing the plant’s major equipment selections, start-up and early operations experiences.IntroductionHudBay Mineral’s Constancia project is located at 4200 meters above sea level (masl) in southern Peru, approximately 630 km south-east of Lima, Peru. The property can be accessed by road from Cusco, Peru, (approximately 110 km to the north), or from Arequipa, Peru (approximately 215 km to the south). Matarani, accessed via Arequipa, is the closest port.Constancia is located within the Yauri-Andahuaylas metallogenic belt. The region contains several large copper-gold-molybdenum porphyry deposits such as Antapaccay (by Glencore) and Los Chancas (by Grupo Mexico), and copper skarn deposits such as Tintaya (by Glencore) and Las Bambas (by MMG). Constancia’s ore reserves contain copper and molybdenum with trace amounts of gold and silver.Ore is mined by an open-pit operation. The process plant recovers copper and molybdenum concentrates, storing tailings in a conventional tailings management facility. Infrastructure at the site includes a grid power supply (via a 70 km overhead transmission line from Tintaya), water supply, workshops and an accommodation camp. Mine life is 22 years.Site construction works began in 2012 with first copper concentrate produced in late 2014. The project was executed for approximately 1.75B$USD.Ausenco’s design approach focussed on developing a capital efficient copper molybdenum concentrator. This paper outlines key features incorporated in the concentrator design, plant layout and equipment selection, as well as start-up experiences and early operational results."

Jan 1, 2016

By G. R. Rawsthorne

"The Con-Rycon mine is located on the north shore of Great Slave Lake in the Northwest Territories within the present city limits of Yellow-knife. Development work on the Con property started in 1936, resulting in a mine-mill complex which produced its first gold brick on September 5, 1938. Since that date 5,000,000 tons of ore have been mined yielding 3,000,000 ounces of gold. At present there are 220 employees at the mine.MineThe mine has 1.22 miles of vertical shaft, 41 miles of level development and 10 miles of inclined raises. There has been 1,000,000 feet of diamond drilling in search of ore. The temperature at the 4900 level (4400 feet below sea level) is 68 deg. F.The present mining method is cut and fill. The majority of the ore mined today passed through an internal winze before reaching the main shaft. The long haulage and double handling will be eliminated with the completion of a new shaft presently under construction to the 5800 level.MineralizationThe ore treated today is from the Campbell shear 1vhich is characterized by lenses and veinlets of coarse textured quartz containing some carbonate, sulphides and finely disseminated as well as visible gold. At the lower levels of the mine the arsenopyrite content in the ore is de-creasing with a~ increase in the levels of chalcopyrite and pyrrhotite."

Jan 1, 1974

By P. S. Capper

"Generally speaking, the most intensive efforts at dust control in the mining industry have, in the past, been concerned with underground operations and where uranium ore or high silica material is processed. In the past several years, Stoop Rock has made Intensive efforts to reduce dust levels in it's Iron ore pelletizing complex. There have been no great engineering break-throughs with regard to dust control in such plants, and certainly no new engineering techniques have had to be applied at Steep Rock. This paper deals with how significant improvements in dust levels have been achieved through minor modification to dust collectors and ventilation units, improvements in operating practices, and education of supervisors and hourly personnel.PROCESS DESCRIPTIONSteep Rock Iron Mines is located 120 miles west of Thunder Bay near Atikokan. (fig. 1) Run-of-mine ore is pelletized along with some -1"" concentrate that has been processed in the concentrator (a summer operation only), which utilizes gravity separation to upgrade a mechanical mixture of ore and waste."

Jan 1, 1976

By K. Gie Tan, Frank Wright

"Misty Mountain Gold Limited (MGL - TSE VSE, MGLCF - NASDAQ) of Vancouver, owns the Harmony Gold Project located in the Queen Charlotte Islands of British Columbia. The deposit contains a mineable reserve of 2.3 million ounces of gold, at a 1.2 g/t cut-off and an average grade of 2.1 1 g/t Au.Discovered in 1970 and frequently investigated by previous owners, full-scale production has not yet occurred because of the complex metallurgy of the deposit. Recent process studies that were completed in six months at Process Research Associates Ltd. (PRA) of Vancouver resulted in significant improvements to the project viability. The work involved detailed mineral processing studies aimed at achieving a marketable concentrate. An option for bio-oxidation and cyanidation to allow on-site dor6 production was also investigated.The main findings at PRA followed the front-end recovery of finely divided free gold (Au) by gravity concentration. Approximately 20% of Au reported to less than 0.2% of the mass, resulting in a grade exceeding 500g/t Au. The resulting gravity tailing provided a uniform feed for flotation evaluation. The optimization of this step allowed for a reasonable primary grind size of 80% passing (&) 50pm. Efficient slime’s rejection was made possible by flotation at a reduced pulp density, and pre-oxidized sulphides were reactivated with Na,S. The regrinding of the bulk flotation concentrate followed by up to five stages of cleaning resulted in a combined gravity + flotation product of 50g/t Au with 82% recovery in less than 4% of the feed mass.Further studies indicated that the flotation concentrate was amenable also to tank bio-oxidation. At 65% sulphide oxidation the gold recovery improved from less than 70% to 90% by cyanide extraction using CIL (carbon in leach). This compares to less than 45% gold recovery from whole-ore cyanidation in several previous studies. Heap leaching may also be considered for lower grade material. PRA’s methodical approach and consistent results dispelled the uncertainty about predicting the material behavior for the Harmony Property."

Jan 1, 2000

By Tiziana Apuani

The study refers to an area of about 70 km2, extended in the Italian Central Alps along the the San Giacomo Valley where different civil and mining works are present The regional geological setting is related to the Pennidic Nappe arrangement, characterized by the emplacement of sub-horizontal gneissic bodies resulting from the Mesoalpine isoclinalic folding of crystalline basements, emplaced throw East, and separated by matasedimentary cover units. The investigated geological rocks, belong to the ?Tambò?Unit, overlapped by its meta-sedimentary cover and by the ?Suretta? Unit. The tectonic contact gently dips to the E?NE. The valley, furrowed by the Liro Torrent, follows a N?S striking tectonic lineament, almost parallel to the nappe contact. A number of more then 70 sites, distributed in the studied area, were chosen and detailed structural and geomechanical field surveys were performed to characterize the rock masses, its intact rock and discontinuities. The procedure identifies the number of joint sets, their representative orientation, the set spacing, the type of movement, the amount of dilatation, the degree of alteration, the roughness coefficient, the presence and nature of infill. Rock mass quality indexes, such as the Rock Mass Rating (Bieniawski, 1989) or the Geological Strength Index (Hoek et al. 2002) have been evaluated in each surveyed site. The work is a contribute in assessing how the geometrical and geomechanical properties of the rock masses can be regarded as regionalized variables. The spatial distribution of these properties is a function of the geological and structural phenomena at which the rock masses have been subjected. The presented geostatistical analysis regards the spatial variation of the orientation of the most representative joint set.

May 1, 2009

By J. S. Phipps, D. R. Skuse

"Aqueous slurries of fine particle size calcium carbonate are used in a diverse range of end-use products. In many cases, the end use performance is governed by the fineness of the particle size distribution. In turn, the maximum fineness of the particle size distribution is primarily determined by the efficiency of the dispersants used during the production process. Here we report the sodium polyacrylate mediated dispersion of calcite and kaolin. Firstly, we report a colloid chemical description of the dispersant behaviour and attribute the stabilisation to both steric and electrostatic mechanisms. Secondly, we describe how the understanding developed in the first part of the study can be utilised to produce more effective dispersant systems which allow the preparation of, added value, higher solids and finer particle size calcium carbonate slurry products.INTRODUCTIONConcentrated aqueous dispersions of fine, particulate kaolin and calcium carbonate are used extensively in the coating of paper. Currently more than 10 million tonnes of such dispersions are used annually in North America and Europe alone, and worldwide consumption is growing at around 3% per year.Generally, paper is coated to enhance its visual appearance. Firstly, coatings improve the optical properties of the blank sheet, i.e. its brightness (or whiteness), opacity and gloss. Secondly, they improve the physical properties of the sheet that will influence the quality of the final printed image, such as surface smoothness, porosity, and ink absorption. In order to achieve these aims economically, paper coatings must be applied at high speeds and with minimal drying costs.Kaolin and calcium carbonate pigments are the major components of most paper coating formulations. Particle size distributions are chosen to maximise the optical benefits that they confer, and to allow the production of formulations that can be easily pumped, handled and coated. Coating pigments are generally produced and transported as slurries, and so it is important to obtain dispersions with the highest possible solids content, both to minimise drying costs and the quantity of water transported. This paper examines the dispersant technology that is currently used in the industry and the mechanisms by which it functions, and illustrates ways in which this technology has developed and could be further improved in the future."

Jan 1, 2003

By Jom Kresta

Fundamental changes in the Bitumen Production process at Syncrude have led to the integration of Mining and Extraction operations. Successful operation of the integrated process requires the coordinated effort of several business units. Hence, decision-making has become increasingly more complex and better tools are required. IO2 is a collaborative effort to develop a proof-of-concept prototype of a distributed decision-support system for integrated short-term production and maintenance planning with fleet allocation and dispatching. The prototype includes three main modules (planning, dispatch, and maintenance), a shared database, and a simulation module. At this stage, this prototype is used to plan and operate a simulated mining operation. It is used to demonstrate the viability of the chosen systems architecture and algorithms, as well as the information flows and interactions necessary for improving the overall performance of the integrated operation. While the problem is demonstrated using Syncrude?s site, the methodology is applicable to most integrated resource allocation problems.

May 1, 2002

By Derek V. Ellis

Coastal and marine mines affect the seabed?s biological resources, eg fisheries, when large volume wastes such as tailings are placed on the seabed, and by the extraction processes from marine mining. Worldwide monitoring of such effects for the past 30+ years now provides information to describe Best Practice design, construction and monitoring procedures. The critical environmental factors for submarine tailings placement (STP) are the selection of an appropriate deposition site and discharge depth, the deposition rate of the tailings, and the speed of biodiversity recovery to a sustainable ecological succession. These should be predictable at new sites using current modeling and experimental procedures. Prediction procedures are still needed to minimize potential destabilization of deposited tailings, and consequent biodiversity recovery setbacks. Comparable environmental information is needed from marine mining sites.

May 1, 2002

By C. O. Aksoy

There is a long history of coal production in Turkey with electric energy generated from power plants since the 1950s. However, the cost of power generation is high. Therefore, it has become necessary to find a means of decreasing production costs to become more competitive in a global market. This paper attempts to economically minimize the overall operating costs of a dragline-shovel-truck system applied at an open pit mine that has fed the Yatagan power plant since 1979, lowering the lignite production cost, and indirectly, the overall electricity generation unit cost. Systems currently in place, as a result of former optimization studies, are time-consuming and expensive to re-implement to comply with today’s very different geometric and economic conditions affecting mining operations. In such cases, rather than re-optimization, it is more viable to identify the parameters that affect the minimum unit cost, via a cost minimization study, allowing present mine equipment to be utilized more efficiently. Unit cost minimization analyses are subject to the capacity of the pool of mining equipment available, combined with the mining block geometry from pre-stripping onwards. In this overall unit cost minimization study, P&H shovels and CAT 777 trucks with capacities of 15 yd3 and 77 tons, respectively, were used in truck-shovel pre-stripping operations. A 65 yd3 Marion 8050 dragline was used to expose the overburden immediately over the coal seam. Pre-stripping bench heights varied from 8 m to 20 m and dragline bench heights from 20 m and 25 m were evaluated to minimize the unit cost of field operations. Total overburden extended to a depth of 60 m (35 m to 40 m for pre-stripping). Minimization analyses performed on the pre-stripping truck-shovel operation, prior to dragline operations, determined that the shovel bench height should be 15 m requiring a dragline bench height of 25 m.

Jan 1, 2005

By Steve Cole

"The economic and strategic importance of PGE bearing deposits is fuelling renewed exploration and development efforts in the precious metals mining sector.This paper presents a review of the various techniques used in the processing of PGE bearing ores, from primary benificiation to processing routes for the different flowsheets that have been developed amongst current producers. Recent innovations such as preconcentration of ore using gravity separation, recent trends in flotation circuit design and the development of hydrometallurgical routes for the direct treatment of flotation concentrates without the need for smelting will be discussed. Data from recent projects will be presented to illustrate common characteristics of PGE ores and concentrates.INTRODUCTIONThe six platinum-group elements (PGE): ruthenium, rhodium, palladium, osmium, iridium and platinum, together with gold and silver, are considered to be ""precious"" metals. The recent spike in platinum and palladium prices coupled with the projected increase in demand for the metals has fuelled a spate of exploration and new projects in the PGE sector. Historically primary producers of PGE metals have controlled the flow of information relating to the mining and processing of these ores into the public domain. Very little published information relating to individual operations and processes is available in comparison to the abundant literature relating to other metals.The purpose of this paper is to provide a general overview of the issues relating to the processing of PGE ores. Each topic discussed could easily be the topic of a paper or book and so in many cases only the surface of the topic will be scratched. An attempt has therefore been made to provide as many references as possible.This paper discusses the classification and location of PGE ores, the mineralogical factors that affect recovery of PGE's, methods currently used for recovering PGE's and process trends in PGE metallurgy."

Jan 1, 2002

By Will Callupe Arzapalo

The success of the minimization of blast induced-damage at Barrick?s Pierina Mine in Peru is the result of an effective working relationship between Mine Operations and the Geotechnical Services Department. A detailed design criteria manual is used to match the blast plan to the site?s varying rock types and slope designs. The Geotechnical Services Department has further developed a comprehensive pre- and post-blast checklist that is critical to the drilling and blasting process as it pertains to wall stability. Wall control blasts are evaluated with quality assurance field checks, vibration monitoring and frequency control, video assisted performance quantification and post excavation face profiling. These detailed observations are compiled and summarized in a blast performance evaluation that is considered to be an ?Industry Best Practice?. The information and detail provided by each performance summary allows accurate blast analysis and effective design refinement.

May 1, 2006

By B. Samanta

Abstract - Ore reserve estimation, based on sparse drill hole data, was conducted for a placer gold property in Nome, Alaska. A problem with sparse data is that random subdivision of the data into modelling and evaluation subsets (as is commonly done) becomes a problem, as random selection may result in biased/skewed subsets. Therefore, a technique that combined data segmentation with genetic algorithms (GA) was applied to divide the samples into three equivalent subsets: training, validation and testing. Data segmentation was done on the basis of the distribution of gold values. Neural network and a variety of kriging techniques were used to estimate gold grades. A multi-layer feed forward neural network along with "early/quick stop" training was used for neural network modelling. A comparative evaluation of kriging and neural network methods was then performed. The results revealed that neural network was generally superior to the kriging techniques for gold grade estimation in the Nome deposit.

Jan 1, 2002

By J. Paraszczak

For mining companies facing strong international competition and unfavourable commodities’ prices, automation of underground operations has the potential to increase productivity and help cut costs. However, despite considerable technological progress in this field, there still remain many problems to overcome. Furthermore, successful implementation of automation depends also on numerous operational, organizational, and even human factors. In this context, this paper briefly reviews technological progress with regard to different underground operations. Following that, several issues related to implementation of automated equipment and systems are presented and discussed. Particular emphasis is put on the factors whose importance is often underestimated. Some recommendations in this respect are also given. It is stated that the success of an automation project is a function of many “winning conditions,” which may be created through very thorough planning and preparation. It is also underlined that despite achievements made, a vision of a man-less underground mine is not yet as much a matter of near future as it may seem.

Jan 1, 2004

By Rodolfo Espinosa Gómez

"Industrias Peñoles, S.A. de C.V. – Mining Division, has initiated in the last ten years, six Mining Operations (Bismark, Tizapa, Ciénega, La Herradura, Rey de Plata, and Francisco I. Madero) and it has expanded several of their existing Operations (Sabinas, Fresnillo, Tizapa, Ciénega) one or more times.This work aims to share the experiences learned on this growing process. Some of these lessons are: 1) Project leaders must have a leadership that fosters good communication and team work; and this leadership style must come from top management. 2) A good communication must exist between the personnel from Engineering, Construction, and Operation. Also, this good communication must come from top management. 3) Starting the project with a solid Engineering Study. 4) Do not misunderstand cost with cost/benefit; always look at the cost/benefit. 5) Selecting good Contractors and good Suppliers. 6) Good training before the project commissioning is essential to reduce the learning curve period, this is even more important in areas where local people do not have any background in mining activities. 7) Recognizing that any project has a learning curve and it must be reflected on the production budget. 8) Avoid an over optimistic Mine preparation time schedule.BACKGROUNDIndustrias Peñoles S.A. de C.V.The mission of Industrias Peñoles, S.A. de C.V. (Peñoles) is to add value to non-renewable natural resources in a sustainable manner. Peñoles seeks to build long-term shareholder value; provide their customers with the highest quality products and services; maintain productive longterm relationship with their suppliers; develop and promote the capabilities of their personnel; foster mutually beneficial relationship with the communities in which it operates, and preserve the environment.Peñoles was established on 1887. It is a Mining Group with integrated Mining, Smelting and Refining operations of non-ferrous metals, and also produces inorganic chemistry materials. Peñoles is the main World producer of refined silver, metal bismuth, and sodium sulphate; Latin American leader in the production of refined gold, lead, and zinc.The Mining Group is made-up of nine mining operations producing concentrates with high gold, silver, lead, zinc, and copper contents. It produced in 2002, 365,900 ounces of gold; 52.7 million ounces of silver; 86,820 tonnes of lead; 266,000 tonnes of zinc, 11,840 tonnes of copper; with a total values of 3,780.6 million of Mexican pesos (~ $ 378.0 million U.S. Dollars)."

Jan 1, 2004

By Steve W. Ciccone

The Red Dog Mine is both the largest known zinc reserve and the largest zinc producer in the world. The mine started in 1989, and by 1999 had increased production from approximately 300,000 tonnes per year (t/yr) of zinc concentrate to in excess of 900,000 t/yr. The VIP Mill Optimization Project further increased zinc concentrate production to 1.1M t/yr while improving both product quality and zinc recovery. The Mill Optimization project also addressed a number of issues related to risk reduction: power generation capacity, water treatment capacity and concentrate thickening. The project was faced with numerous challenges, the most daunting of which was the schedule. This US$105M project was executed, from conception to completion, inside of two years. Less than nine months elapsed from concept to delivery of materials and equipment to site. The project also faced a 100-day icefree shipping window, the challenges of construction in an Arctic environment, and an extremely tight labour market for qualified craft personnel. These challenges were successfully addressed with several innovative approaches to project execution, including an Alliance contracting arrangement between the owner, engineer and contractor; full integration of the team; construction of modules in Anchorage; and fast-track engineering, procurement and construction. Steve Ciccone, AMEC?s project manager on the Mill Optimization project, works for the Mining & Metals unit of AMEC, a world leader in the provision of engineering and construction services. He obtained his BASc from the University of British Columbia and is currently midway through his MBA program at Simon Fraser University. Steve has 15 years of experience providing engineering and project management services on mining and metals projects, and has been involved in the execution of five capital projects and several studies at Red Dog since 1995. George Hope was responsible for process design and engineering on the Mill Optimization project and has been Manager, Project Development at Teck Cominco since 1995. Prior to this time, he was a project manager and chief metallurgist for Lac Minerals for 14 years and a mill superintendent and metallurgist for Noranda for 5 years. George received his BSc in Mineral Technology from the Royal School of Mines in England.

May 1, 2002