Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Commissioning and start-up of Canada’s first gearless mill drive (GMD) system has been completed at Osisko Mining Corp’s Malarctic project and will increase production capacity at the mine. The system was commissioned by ABB, a leading power and automation technology group. The GMD powers a 38′ (SAG) mill at the Canadian Malartic gold mine. Engineering, delivery and commissioning of the complete 19 MW GMD system are worth more than $20 million. Ronald Bougie, General Construction Manager at Osisko said: “We are very satisfied with ABB’s performance throughout the whole project. The equipment that was recently commissioned brings us on the level of the latest technology available on the market. It fulfills our requirements for flexibility and adjustability of the process, enabling maximum control over the grinding process.” The gold deposit is located in the heart of Quebec’s prolific Abitibi Gold Belt, immediately south of the town of Malartic. ABB’s delivery will help the mine increase its overall production capacity, provide maximum control over the ore grinding process, as well as improve overall equipment reliability and energy efficiency.
The contract for the system, consisting of ring motor, transformers and E-house including the new powerful ABB cycloconverter controller AC 800PEC, was awarded in June 2007. AC 800PEC is a high-performance and high-speed control system that is fully integrated into ABB’s 800xA system and provides extensive communication options with other control devices. Also included in the scope was a power factor correction (PFC) and harmonic filter (HF) system to improve the overall plant power factor and reduce harmonic distortions. Acceptance tests and following start-up were successfully completed in Q1, commercial production started in Q2 of 2011.
Osisko Mining holds a 100% interest in the Canadian Malartic gold deposit in Quebec. Canadian Malartic is one of the world’s largest known undeveloped resources wholly owned by a junior explorer, and is located in a mining district near extensive existing infrastructure. The mine life is estimated at 16 years, based on a 55,000 t/d) milling rate that will increase to 60,000 t/d in mid 2012. The mine’s daily production rate, including waste, is being estimated at an average of 194,000 t/d, an increase of 24,000 t/d. Total gold production over life-of-mine is currently estimated at 9.18 Moz gold, at an average production rate of 574,000 oz/y. The first full five years of production would account for 3.13 Moz of production at an average rate of 625,100 oz/y.
Image of the Malarctic mine by Osisko Mining
