Initial underground mine production has successfully commenced at Xstrata Copper’s Ernest Henry Mining operation in north-west Queensland, marking the site’s transition from open pit mining, which is now complete, to underground mining and magnetite processing. This is a major milestone in the progression of Xstrata Copper’s AUD589 million project to extend its Ernest Henry operations to at least 2024.
During the first phase of underground operations, ore will be trucked via a decline at rates of approximately three million tonnes per annum producing about 25,000 tonnes of copper and 35,000 ounces of gold in concentrate. Following the commissioning of the underground shaft in 2013, production will ramp up to six million tonnes per annum producing 50,000 tonnes of copper and 70,000 ounces of gold in concentrate.
Ernest Henry Mining’s General Manager Myles Johnston said the major shaft underground mine and magnetite processing plant will create and sustain jobs and provide ongoing economic benefits for the region and for the state of Queensland.
“We’re proud to celebrate the transition from open pit to underground mining and magnetite processing, representing the beginning of a new and extended future for our Ernest Henry operation,” Mr Johnston said.
“The project creates 330 jobs during the construction phase and 400 full-time jobs from 2013, extending the operations by at least another 12 years.
“An additional 100 full-time jobs are expected to be created from the development of our newly acquired Mount Margaret Mining Project, purchased from Exco Resources Limited earlier this year. If approved, this project will further add to the production profile of Ernest Henry from the second half of 2012.”
Cloncurry Shire Mayor Andrew Daniels said Ernest Henry Mining’s transition to underground mining and magnetite processing provides ongoing economic security for the Cloncurry community.
“Ernest Henry Mining is a major contributor to our shire. Extending the mine’s life by another 12 years has helped to provide job security for many people and will underpin the ongoing economic and social development in the shire,” he said.
“This milestone means a strong future for the Ernest Henry operation and it gives people confidence to continue investing in Cloncurry and to keep moving forward.”
Xstrata Copper North Queensland Chief Operating Officer Steve de Kruijff said the Ernest Henry operation is a critical part of Xstrata Copper North Queensland’s integrated business, which as a whole contributed around $1.34 billion to the Queensland economy and employed nearly 4,000 people in 2010.
“Ernest Henry Mining’s transition is part of our long term operational plan that will see significant investment in north Queensland to focus on exporting mineral concentrates, along with the development of necessary infrastructure to increase rail and port capacity,” Mr de Kruijff said.
