Birla Nifty

Copper Production Operations

Birla Nifty copper mine is located in the Great Sandy Desert Region of the East Pilbara in Western Australia, approximately 1,250 km north of Perth and 350 km east of Port Hedland.

The Nifty operation comprises of an historical open pit oxide mine and an underground sulphide mine with an associated concentrator. The capacity of the plant is to produce approximately 2.5 mtpa of ore processing. Site infrastructure (powerhouse, camp, airfield, tailings storage facility) supports the sulphide operations. A concentrate storage facility is located at Port Hedland where the concentrate is shipped to overseas customer.

The Nifty Sulphide deposit mines chalcopyrite ore treated by standard flotation for production of copper concentrate.

The Western Australian copper mine has a capacity of 2.5 mtpa of ore processing. Concentrate produced is trucked to Port Hedland for shipping to Hindalco Copper’s Dahej smelting and refining facility in India.

current underground development

Mining

Underground mining is performed by Birla Nifty, using modern diesel or electro-hydraulic equipment of large capacity. Underground mining is currently carried out using open stoping methods and backfill. This is a bulk mining method where stopes (25m wide, 25 to 50m long and 40 to 60m high) are drilled and blasted and copper ore is loaded and hauled into to an underground crusher and conveying system. The conveying system transports the copper ore to the surface for processing by conventional flotation techniques. 

The ore is drilled with electro-hydraulic rigs prior to blasting. Broken ore is loaded using load-haul-dump machines into 60 t capacity trucks for transport to the underground crusher, where it is conveyed to the mill, surface ROM pad or stockpile.

Processing

Processing of the sulphide copper ore extracted from underground is by conventional comminution, grinding and flotation, to produce a concentrate that is then filtered and sold as concentrate.

Copper Production

The Nifty copper operation is a fly in–fly out operation with access provided via a sealed airstrip on site, serviced regularly by flights from Perth. The mine is also accessed by bitumen road from Port Hedland to the Woodie Woodie mine, only the final 45 km of road is unsealed. Copper in concentrate is trucked to Port Hedland (distance from Nifty approximately 350 KM) and then shipped to Hindalco Copper’s Dahej copper smelting and refining facility in India.

The mine facilities are well supported by modern and efficient infrastructure and services, with significant upgrades and extensions made to village facilities, workshops, power reticulation and offices constructed under the Nifty Sulphide Operation development.

The main power source is a 19.6mW GE dual fuel gas/diesel turbine, with back-up of 5mW solar centaur turbines, 4mW Caterpillar and 2mW Detroit diesel generators. A 46 km spur gas pipeline, owned and operated by Gas Transmissions of Australia Pty Ltd, has been constructed from the Port Hedland to Telfer and is the pipeline to the Nifty Western Australian copper mine. Gas is sourced under contract from Apache Northwest Pty Ltd.

The Nifty copper operation uses groundwater sourced from mine dewatering. Mine water is reticulated from the largest source, the underground mine, to the Fines Dam where suspended solids are settled. Once clarified, the mine water is pumped to either the sulphide concentrator or Raw Water Dam (RWD) for distribution elsewhere on site. In addition to the mine dewatering source, groundwater derived from the East Nifty Borefield is pumped to the RWD or directly to the Reverse Osmosis (RO) plant for desalination. 

Copper Resources and Reserves

Nifty ore reserves as on 31 March 2013 are shown below.

Category Tonnes Copper (%)
Proved 8,000,000 2.2
Probable 7,000,000 1.8
Total 15,000,000 2.0

Nifty mineral resources as on 31 March 2014 are shown below.

Category Tonnes Copper (%)
Measured 29,630,000 2.14
Indicated 7,570,000 1.44
Inferred 2,770,000 1.66
Total 39,960,000 1.97

Notes

 

  1. The Information in this release that relates to Nifty Copper Operations Ore Reserve is based on information compiled by Robyn Stonell, under the direct supervision of Otto Richter who is a Member of the Australasian Institute of Mining and Metallurgy and full time employee of Snowden Mining Industry Consultants Pty Ltd. Mr Richter has sufficient experience to be a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Ore Reserve results. Mr Richter gave his consent to the inclusion of the material in the form and context in which it appears
  2. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
  3. Mineral resources are inclusive of ore reserves, but exclude recoverable inventory under leach.
  4. The information in this release that related to Mineral Resources for the Nifty projects is based on and accurately reflects reports prepared by Sivasamy in 2013/14. Mr Sivasamy have the necessary experience relevant to the style of mineralisation, the type of deposit and the activity undertaken to qualify as a ‘Competent Person’ under the JORC Code for Reporting of Mineral Resources and Ore Reserves (2012 Edition). Mr Sivasamy has given their consent to the inclusion of the material in the form and context in which it appears. Mr Sivasamy is a full time employee of Aditya Birla Minerals Limited.

 

Background

Open pit mining operations ceased in June 2006 and heap leaching operations ceased in January 2009.

Oxide copper was first discovered at Nifty in 1981 by WMC Limited (“WMC”). Drilling of the oxide resource ultimately led to the discovery of the deep sulphide resource in 1983. WMC commenced an open pit, heap leach, SX-EW operation on the relatively high grade part of the oxide mineralisation in 1993. In 1998, the Nifty operation was purchased by Straits Resources Limited (“Straits Resources”), from which Aditya Birla Minerals acquired the operation and surrounding exploration tenements in March 2003. Before acquisition of Nifty Operations a detailed due diligence was undertaken by Aditya Birla Minerals.

Due diligence of Nifty operations was conducted by various experts in their respective fields:

  • Technical due diligence by SRK Consulting
  • Commercial due diligence was done by Cutfield Freeman & Co Ltd
  • Financial due diligence was done by Ernst and Young and
  • Legal due diligence by Minter Ellison
  • Environmental audit by R.W. Corkery& Co Pty Ltd

The due diligence process highlighted significant values in the Nifty underground mine. There were no material adverse findings. Subsequent to acquisition, following the completion of a positive feasibility study, underground development was commenced in January 2004 to exploit the sulphide resource via an exploration decline from the open pit. First sulphide ore was intersected in February 2005. Construction of the concentrator commenced in October 2004, with first concentrate being produced in March 2006. Other plants previously under construction include the paste fill plant, which was completed in August 2009.

Copper Opportunities

Underground mining and copper production at the Birla Nifty copper mine in WA provided opportunities for further copper exploration and development. This includes the extension of mine life via extending resource base in existing ore body and converting more resource in to reserve category and finding another ore body through exploration and evaluation.

To learn more about our credible copper production, copper exploration, copper mine in WA, copper mining, underground mining or copper investment opportunities, copper operations, contact Aditya Birla Minerals.