The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 25 of 91

24 | ASIA Miner | September/October 2014 CENTERRA Gold is continuing discussions with the Mongolian Government regarding de- velopment of the Gatsuurt Gold Project. The company expects that the Mongolian Parlia- ment will consider the designation of Gatsuurt as a strategic deposit by the end of 2014. If Parliament ultimately approves this designa- tion, it would have the effect of excluding Gat- suurt from the application of the Mongolian Wa- ter and Forest Law and would allow Mongolia to acquire up to a 34% interest in Gatsuurt. The Gatsuurt project has remained under care and maintenance due to the con- tinued delays in permitting resulting from the Water and Forest Law which prohibits mining and exploration ac- tivities in water basin and forested areas. During its discussions Center- ra was advised that the government is developing a list of deposits, which will include Gatsuurt, to be submitted to the Mongolian Parliament for consider- ation as strategic deposits. Meanwhile, at the nearby operating Bo- roo project Centerra produced 28,001 ounces of gold in the frst half of 2014 com- pared to 52,663 ounces of gold in the frst half of 2013. The lower production resulted mainly from an unscheduled mill downtime and the processing of lower grade ore through the mill. Additionally, fewer ounces were poured from the heap leach operation as fewer tonnes were placed under primary leach in the frst half of 2014. Mill grades averaged 0.66 grams/tonne with a recovery of 61.3% in 2014, compared to 1.33 grams/tonne with a recovery of 57.0% in the frst half of 2013. The Boroo mill experienced an unscheduled maintenance shutdown when the ball mill con- tactor/breaker failed on May 16. Partial milling activities resumed on May 22 and full opera- tion resumed on June 17 when a replacement unit was installed. Subsequent to the end of the second quar- ter, the company and Boroo's trade union signed a new two-year collective agreement which will expire on June 30, 2016. Boroo was the frst hard rock gold mine in Mongolia and has produced about 1.8 million ounces of gold since it began operation in 2004. Mining activities were completed in September 2012, though the mill continued to process stockpiled ore during the frst half of 2014. Heap leach processing activities continued during the second quarter, however crushing and stacking was completed in 2013. Centerra proposes that Gatsuurt ore be treated at Boroo. Operating costs in the second quarter of 2014 were $12.5 million, similar to the second quarter of 2013. Lower milling activity was offset by a lower contribution of operating costs to invento- ry, as Boroo drew down on its inventory. NEW research from The University of Queensland (UQ) has helped fnd practical solutions to gender-based violence issues stemming from Mongolia's mining boom. A UQ Centre for Social Responsibility in Mining research project has helped prompt a $280,000 Memorandum of Understanding (MoU) between Mongolia's National Committee on Gender Equality and the Erdenes Tavan Tolgoi mining company. Research manager Isabel Cane says her research has identifed con- nections between mining activities and gender-based violence in the South Gobi region of Mongolia. "Domestic violence, sexual assault and alcohol-fuelled violence have increased, causing a rise in personal trau- mas, family break-ups, health-related issues and broader community insecurity. "This MoU is a positive start but stronger legislative and social aware- ness will be required to prevent the potential growth of gender-based violence in a nation undergoing a minerals boom. "The MoU is focused on practical solutions such as installing street lighting to improve visibility and safety; building a health centre to sup- port women and girls; establishing alternative activities for girls by build- ing a green park; and countering the environmental impacts of mining to foster a more family friendly community." Isabel Cane says the MoU, developed after a roundtable discussion about the fndings of her research, provided recommendations to policy makers. "In an industry where gender issues are not at the forefront, an MoU between a government body and a mining company is a very positive step and demonstrates commitment to gender issues and re- sponsible mining more broadly." She says her research in Mongolia could be applied in other develop- ing countries where mining was affecting gender relations. The research, which was funded by the International Mining for De- velopment Centre, has been released in a Mapping Gender Based Violence and mining infrastructure in Mongolian mining communities, a comparative analysis report. In partnership with the Australian Government through an Australian Aid initiative, The University of Western Australia and The University of Queensland have established the International Mining for Development Centre (IM4DC) to assist in lifting the quality of life in developing nations through a more sustainable use of mineral and energy resources. IM4DC began operations in October 2011 to assist in improving in- comes, employment, enterprise opportunities and life outcomes for people in rural and urban areas of developing countries. It facilitates establishment of world-class mining industries to boost overall economic development. The benefts of the work of IM4DC for developing nations are realized principally through increased skill levels of key personnel within govern- ment, universities, research institutions and civil society organizations to bring about: • Improved policies and practices in the governance and manage- ment of extractive industries and their interactions with society and the environment; • Improved legislative frameworks; • Improved knowledge of a country's resources base; and • An ability to continue to build local capacity in minerals governance and mining. Helping Mongolia tackle gender violence Centerra continues Gatsuurt talks Centerra Gold's Mongolian projects and prospects are in Mongolia's north.

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