May/June 2013 - The ASIA Miner

Central Asia
Study examines second Kounrad plant
A DRAFT feasibility study is nearing completion
for the construction of a second SX-EW
plant and associated infrastructure at Central
Asia Metals’ Kounrad Copper Project in Kazakhstan.
A decision will be taken by the
Board later in the year following further leach
testing of the Western Dumps, hydrological
surveys and once the transfer of ownership
of the remaining 40% of the project has been
completed from the SAT Group.
Metallurgical testing is still being undertaken,
the results so far have confirmed that
acid leaching of the Western Dumps show recovery
up to 45% of the contained copper
compared to previous estimates of 40%.
These results correlate closely with the acid
soluble copper assays returned from the analysis
of more than 2200 samples from drilling
conducted on the dumps in 2011 and 2012.
In addition, the results of these tests correlates
closely with the calculated recoveries
obtained from the pilot plant operations on
the sulphide dumps conducted from July to
December 2011. A recovery of 45% was calculated
based upon a borehole head grade
sample, and the PLS and raffinate solutions
treated and generated through the pilot plant
over this period. Column leaching test work
continues to establish predictive leach recovery
curves and determine reagent consumptions.
Additionally, during 2013 geophysics
and geotechnical surveys will be undertaken.
The Kounrad site consists of two areas separated
by the Kounrad open pit, namely the
Eastern and Western dumps. The mineralized
material being leached in the current
phase of the project is contained within the
Eastern Dumps. Based on an estimated recovery
rate from the test work conducted within
this area, management estimates that
there is sufficient resource for in excess of
eight years of operations at the current planned
annual output of 10,000 tonnes.
The company’s CEO Nick Clarke says, “The
conclusion of the SAT transaction has taken
longer than the Board had envisaged due to
the local requirements associated with the
transfer of the subsoil use contract and finalizing
project documentation with the SAT
Central Asia Metals’ processing facilities at the Kounrad Copper Project in Kazakhstan.
Group. It could take a further 12 months to
complete the process and the timing is dependent
upon the receipt of the relevant waivers
required from the Government of the Republic
of Kazakhstan. The company will endeavour
to complete this process as quickly as the required
statutory procedures permit.”
The strategy of the company looking forward
is focused on increasing copper production
output, either through organic growth at Kounrad
or the consideration of other potentially
profitable opportunities which may present
themselves. The key objectives for 2013 are
the production of 10,000 tonnes of copper,
maintaining tight control over production
costs, completing the transfer of 40% ownership
to the group, to sell other assets held for
sale for a reasonable consideration, and to obtain
the mining licence at Alag Bayan.
GCM engages help in bid for coal approval
GLOBAL Coal Management Resources Plc
(GCM), formerly Asia Energy, has solicited
help from Malaysia in a bid to get approval of
the government of Bangladesh for exploration
of the Phulbari coal project. The company
has failed to get approval from relevant
authorities to exploit the coal mine despite attempts
over the past decade.
According to the deal signed with private
firm Mettiz Capital Limited in early February,
GCM will award Mettiz a directorship and a
large number of options if the Malaysian firm
can help secure approval by the end of 2013,
the last year of the present government under
the periodic electoral cycle. The next general
election is due to be held at the end of this
year or early next year.
GCM has engaged Mettiz to conduct the
official formalities for obtaining the approval
for exploration and setting up a mine-mouth
coal-fired power plant at Phulbari. Although
Mettiz is an investor company, the firm has
been authorized to advise the GCM Board regarding
the project. The deal between Mettiz
and GCM will be terminated if the former fails
to gain the approval by the end of the year.
The National Committee on Protection of
Oil, Gas and Mineral Resources, Power and
Port has been opposing Phulbari exploration
on environmental and economic concerns. A
proposed meeting between Prime Minister
Sheikh Hasina, who is also in charge of the
Ministry of Power, Energy and Mineral Resources,
and GCM chairman Gerard Holden
has not yet taken place.
GCM says the Phulbari Coal Project is a
substantial, world-class coal resource that
would support a long-life, low-cost mining
operation and is the only such deposit in
Bangladesh that has been subjected to a full
feasibility study including an Environmental
and Social Impact Assessment prepared to
international standards. It would be a landmark
project for Bangladesh and would deliver
substantial benefits to the country and
local community.
GCM, which has been making attempts
since 1995 to explore Phulbari, estimates
the project to have about 572 million tonnes
of highly bituminous coal. If explored
and developed, the coal project is likely to
create 17,000 new jobs and ensure the
livelihoods for 40,000 people during exploitation
over the next 35 years.
The mine would help not only generate up to
4000MW of electricity but also move Bangladesh
fast towards its goal of getting 50% of
electricity needed in the country from coal-fired
power plants. Bangladesh has five coal fields
with estimated reserve of some 3 billion tonnes.
24 | ASIA Miner | May/June 2013