The responsible face of mining
Getting a new mining venture off the ground is never easy. Jeff Daniels looks at the range of challenges the most recent copper mine in the world has had to face.
ItÔÇÖs a case of sixth time ÔÇÿluckyÔÇÖ for the Zambian copper mine in Lumwana, which is now producing saleable copper concentrate after at least five previous developers had failed to bring the mine on stream. But itÔÇÖs taken the pooled financial backing of 14 international banks and clearing houses to secure the almost $1 billion needed to develop and build the mine.
The company that managed to achieve the previously impossible is Equinox Minerals, jointly listed on the Canadian and Australian stock exchanges and co-founded by long time geologist and mine developer Craig Williams and the late Bruce Nisbet in 1993. Williams, who is now president and chief executive officer, has been directly involved in several significant discoveries, including the Ernest Henry Deposit in Queensland and a series of gold deposits in Western Australia, earning Williams and Nisbet the joint accolade of Prospector of the Year in 1994 from the Australian Association of Mining and Exploration Companies.
Situated 220 kilometres north-west of the Zambian Copperbelt, and less than an hourÔÇÖs drive from the Congolese border, Lumwana has an estimated reserve of over 300 million tonnes of ore. Compared with ore from ZambiaÔÇÖs primary deposits, Lumwana ore is much lower in quality: 0.73 per cent copper compared to an average 2.5 per cent.┬á
Copper prices have been quite volatile over the past decade. When Equinox acquired the mine in 2001, copper was $0.61 per pound. As little as five years ago, the price was flat at around $1.50 and then shot up to $4.00 per pound in 2008, largely fuelled by rapid urbanisation in China. Not surprisingly, prices plummeted 12 months ago but have recovered well and are currently around $3 per pound. 
With operating costs of between $1.35 and $1.50 per pound, Equinox is very bullish about prospects and sees itself eventually as one of the worldÔÇÖs top 20 producers. The plant was commissioned and went on line at the back end of last year; Equinox estimates that in 2009ÔÇöthe first full yearÔÇöit will produce 110,000 tonnes of copper metal in concentrate. Eventually, though, output for the first six years is expected to average 172,000 tonnes per annum over an operational mine life of at least 37 years.
There are a number of firsts associated with this mine. For example, while the sulphide ore is being processed on site by conventional crushing, grinding and flotation to produce copper concentrates, the 20 million tonnes per annum ore is being crushed in whatÔÇÖs believed to be the largest ball mill in the world. In fact, supplier FLSmidth Minerals also provides much of the processing equipment plus a contract to service the plant long-term.
Diesel is an expensive commodity in land-locked areas many hundreds of miles from any coastline. Normally, vehicles used on open pit mining can consume hundreds of litres an hourÔÇöa major obstacle to the plantÔÇÖs viability. So Equinox enlisted Siemens and opted for a 27-strong fleet of 240 tonne capacity diesel-electric drive hybrid haulage trucks, as well as seven 518 tonne diesel and electric loaders. The mining fleet utilises ÔÇÿtrolley assistÔÇÖ, whereby the trucks switch from diesel operation to grid electricity as they make the run up the ramp from the pit to the ore and waste dumps, providing substantial fuel and operational cost savings.
Although there are a handful of other mines around the world that operate with similar vehicles, Lumwana is the only one that was originally conceived in this way and the only one to continue operation throughout the wet seasonÔÇöof which Zambia endures six months!
As is the case in many third world countries, Lumwana happens to find itself in extremely remote territory. Whereas once accommodation was rough and ready, the modern, highly qualified miner wants to retain as many creature comforts as possible. ItÔÇÖs no longer acceptable just to have a bed somewhere in which to crash. Miners expect to have recreational and leisure facilities to counter the stresses and strains of their high-risk occupations.
Lumwana has a labouring force of over 2,000 which has to be housed and taken care of, so itÔÇÖs not surprising that it now has the makings of a new town to service the mine. What is surprising, though, are the lengths to which Equinox has gone in order to create a desirable place in which to live.
Construction camps are usually basic affairs with rows of dormitories laid out in regimental fashion. More often than not, responsibility for the design and construction of the village is handed over to someone in the engineering department. Bucking this practice, Equinox has engaged South Africa-based construction giant Group Five to build the township. Group Five has in turn enlisted high profile urban architects GAPP to design a community that will not only house the mineÔÇÖs workers but also have the capacity of growing into a self sufficient town, able to flourish without dependency on the mine.
Before committing pen to paper, designers analysed what makes one community more attractive than another. Elements such as the way public space is arranged and used, how the community is integrated into the surrounding countryside, the proximity of houses and pathways and strategies for dealing with traffic were all considered.
GAPP used the beautiful South African university city of Stellenbosch as inspiration, with planning principles mirroring those in Stellenbosch being established. As such, the 500 dwellings already built form the core of the community, where courtyards between buildings form public spaces and opportunity for relaxation while the internal courtyards of buildings provide safe parking.
Equinox is also aware that a full stomach leads to contentment. Catering has been outsourced to All Terrain Services, which serves around 4,000 meals a dayÔÇöa huge logistical challenge as 90 per cent of all food has to come from at least 300 kilometres away. But thatÔÇÖs the challenge of modern day mining in remote corners of the world. Nothing comes easy, as the five predecessors to Equinox know full well.
