The Asia Miner

OCT-DEC 2016

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

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Page 39 of 75

38 | ASIA Miner | Volume 13 • Issue 4 | 2016 India INDIA Resources expects production at the Surda Copper Project to increase during the second half of 2016 following the resolution of industrial action at the site and issues regarding payments from project owner Hindustan Copper Limited. Both issues resulted in lower production during the June quarter . Copper ore processed for the June quarter was 77,128 tonnes at 0 . 84% copper to produce 590 tonnes of copper metal in concen- trate . These results were below the 95,127 tonnes processed and 742 tonnes of concentrate produced in the March quarter . India Resources says operations during the quarter was ham- pered by illegal industrial action and reduced material supplies for mining as a result of payment delays and disputes with Hindustan Copper . Dewatering of the Surda mine was blocked by the industrial ac- tion, causing flooding of Level 11 and hampering mining of Shaft 3's Level 11 stopes . Mining returned to normal during the second half of July . Work on the Surda Expansion Project was also hampered by the industrial action . There were 83 . 5 metres achieved during the June quarter, less than the 95 . 9 metres of the previous quarter . The 83 . 5 metres comprised horizontal driving, raising and cross-cutting as well as 3 . 9 metres of shaft sinking . The footwall lode was reached and driving and raising has com- menced on Shaft 4, Level 10 . At Shaft 3, Level 12 a small loader was installed and a temporary shoot fixed while driving commenced in earnest . Statutory inspections have also been carried out of Shaft 5 for sinking below 60 metres and approval granted by the Director- ate General of Mine Safety . During the September quarter India Resources expected high speed shaft sinking to begin at Shaft 5 along with drive develop- ment north and south of Shaft 3, Level 12, and drive and raising at Shaft 4, Level 10 . In regards to India Resources' cornerstone exploration prospect, the Aravalli Lead-Zinc-Silver Project in Rajasthan, the company's wholly-owned subsidiary Crown Mining Private Ltd has replied to the Rajsamand Mining Office's request to consider only the 17.29sqkm area for its application fee deposit for the Aravalli mining licence rather than the original 24sqkm area . At the request of the Geological Survey of India's Rajsamand office a submission was made showing a table of drill holes of GSI bore- holes and Crown Mining boreholes used in Crown's submission for the Aravalli project. THE phase two wet beneficiation plant at NSL Consolidated's Kur- nool Iron Ore Project in Andhra Pradesh is expected to be in positive cash flow by the end of the year. The plant will allow NSL to produce a high grade premium price iron ore product grading between 58- 62% iron at around 200,000 tonnes annually . The company appointed beneficiation plant supplier Huate, of China, to provide the plant and assist with construction, commis- sioning and operation . Plant components arrived on site in July with erection commencing immediately and commissioning starting by mid-September . NSL appointed RVPR Construction, an experienced plant erection contractor, to provide the resourcing required for erection to move quickly to completion . Mobilisation of large-scale cranes occurred and under the guid- ance of NSL and Huate engineers, the key heavy machinery from China was traversed and placed into position . This included the ball mills and spiral classifier equipment, which presented a challenge to the site team but was successfully and safely completed on time . Electrical and piping installation occurred in parallel to the equipment erection with dedicated teams engaged to complete these work packages . In an update in early September, NSL said the 33kV transmission line and switch yard works were continu- ing as planned with project completion expected shortly. NSL said the control rooms and substation buildings were also nearing completion . The company has negotiated offtake agreements for phase two's high grade iron ore product with Indian global conglomerate, JSW Steel, also that country's leading private sector steel producer, and BMM Ispat, a leading pellet, power and steel producer . NSL has also made significant progress on a binding joint venture agreement for establishment of a greenfield steel making plant in Andhra Pradesh . In late June the company signed an agreement with Wei Hua Group Co Ltd, a leading Chinese heavy equipment crane building company, for establishment of a plant . The partners decided that initial priority will be the completion of a prefeasibility study for the front end of the steel plant, being a pellet plant . It is expected that this will be completed by the end of the year with the steel plant prefeasibility to follow shortly after . A large, high level Chinese delegation, including China Commu- nications Construction Company, Dalian Huarui Heavy Industry Group and China Metallurgical Group Corporation, will visit India during October to advance the proposal . Issues resolved at Surda project Wet beneficiation plant in commissioning Wet beneficiation plant in commissioning Chinese components arrive on site at Kurnool for NSL Consolidated's phase two iron ore wet beneficiation plant.

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