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MRM Open Pit Development

MRM Open Pit Development Environmental Assessment Process

Quick Facts

 

MRM Open Pit Development

McArthur River Mining Pty Ltd is a company wholly-owned by global mining group Xstrata plc and is the operator of the McArthur River zinc mine. Our operation mines the 'Here's Your Chance' orebody which is one of the world's largest zinc and lead deposits.

Underground operations commenced in 1995. In October 2006, a development to convert the mine to open pit and extend its life by more than 20 years was approved. This development has approval to mine 43 million tonnes of the resource.

MRM is a 24 hour operation generating annual ore throughput of around 1.8 million tonnes to produce an average of 320,000 dry metric tonnes (dmt) of a single high grade bulk zinc/lead/silver concentrate. This comprises around 150,000 tonnes of zinc, 30,000 tonnes of lead and 1.2 million ounces of silver.

The concentrate is transported from the mine to the MRM-operated Bing Bong loading facility by road. From there it is loaded onto a barge and transported to waiting ships at sea in the Gulf of Carpentaria.

MRM is the largest bulk producer of zinc in concentrate form. We supply 70% of global demand for this feedstock which is used by Imperial Smelting Process smelters in Europe and Asia to produce zinc and lead metal and alloys.

Our production represents approximately 3% of the world's total zinc resources used by all types of smelters each year.

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MRM Open Pit Development Environmental Assessment Process

In August 2005, MRM announced its intention to convert the underground zinc-lead mine at McArthur River to an open cut operation to enable the mine to continue production. An Environmental Impact Statement was lodged as part of a formal assessment process by the Northern Territory Government based on the Terms of Reference issued in 2003.

This was followed by the submission of an EIS Supplement (December 2005), Public Environmental Report (July 2006) and Mining Management Plan (September 2006).

The Northern Territory Government approved MRM's open pit development in October 2006. Later that same month, the Australian Government provided its consent under the Environmental Protection and Biodiversity Act 1999.

While the environmental assessment process was conducted, MRM commenced operating a test open pit. The first stage of this pit commenced in August 2005. This contributed ore for sampling and for processing as underground operations reduced. The test pit was subsequently extended in April 2006 when underground mining ceased.

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Quick Facts

MRM commenced mining

1995

Open pit development approval

October 2006

Development cost

AUD $110 million

Mine life

Estimated 21 years

Resource to be mined

43 million tonnes
Grade - 10.0% zinc, 4.4% lead, 45g/t silver (as at 30 June 2005)

Production rate

Current: 1.8 million tonnes per annum rising
Following concentrator expansion (end 2008): 2.5 million tonnes per annum

Product

Current: 320,000 dmt (dry metric tonnes) per annum
Following concentrator expansion (end 2008): 430,000 dmt

Mining

Open pit mine using conventional drilling, blasting, horizontal bench scraping, loading and haulage methods.

Processing

Flotation process producing concentrates (average 46% Zn con grade)

Transport

Trucked to Bing Bong port, transferred to barge, then offshore loading onto ships within a designated Offshore Transfer Zone

Export markets

Poland, Romania, Japan, China

Economic benefits - Northern Territory

AUD $175 million contribution to Gross State Product
AUD $329 million economic output of all industries
150 direct and a further 140 indirect jobs in construction
610 direct and indirect jobs in operation

Economic benefits – Australia

AUD $271 million contribution to Gross Domestic Product
AUD $523 million economic output of all industries
570 direct and indirect jobs in construction
1,700 direct and indirect jobs in operation

Workforce

Following completion of open pit development – 270

Test pit

Length – 600 metres
Width – 220 metres
Depth – 64 metres
Footprint – 12.5 hectares

Open pit

Length – 1.5 kilometres
Width – 800 metres
Depth – 210 metres
Overall footprint – 83 hectares

McArthur River diversion

Length – 5.5 kilometres
Width – 15 to 28 metres
Depth – up to 18 metres

Barney Creek diversion

Length – 3 kilometres
Width – 30 to 50 metres
Depth – up to 17 metres

Flood protection bund

Maximum height – 24 metres
Length – 6 kilometres
Flood protection – 1-in-500 year event

Overburden (North OEF)

Footprint – 255 hectares
Height – 50 metres
Total capacity – 185 million tonnes

Tailings storage facility

Total surface area – 210 hectares
Total volume – 23 million cubic metres
Maximum height – 30 metres
Flood protection – 1:500 years

MV Aburri barge

Length – 80 metres
Width – 18.5 metres
Draft – 3.5 metres
Capacity – 3,200 tonnes
Loading and discharge rate – 900-1000 tonnes per hour

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