Issue 3 - Hitachi

THIRD ISSUE 2012
We’ve been building excavators for a very long
time. We take the time to build them right. We don’t
cut corners. We make whatever we build more reliable
and productive. It’s simple, really — we don’t
lose focus by dabbling in everything.
The latest Hitachi mining excavator proves that
point. In response to requests by mining owners and
operators to increase the production capability of
the popular EX5500 without signifcantly increasing
footprint, we are proud to introduce the new
EX5600-6.
The EX5600-6 has a number of improvements,
while retaining many proven features. It is heavier
than its predecessor, has more engine horsepower,
and the BE-backhoe version has increased bucket
capacity. Estimated productivity increases are 17 percent
for the short-reach BH backhoe, and 12 percent
for the loader version. Loading time per truck has
been lessened as well.
WHaT’S NEW
The bucket capacity for the EX5600-6 backhoe
version has been increased from 29 m 3 (38 cu. yd.)
to 34 m 3 (44.5 cu. yd.). The reach of the backhoe
front attachment has been shortened and the engine
output boosted to achieve higher productivity with
a cycle time equivalent to the -5 version. The loader
bucket capacity has been increased as well, from
27 m 3 (35.5 cu. yd.) to 29 m 3 (38 cu. yd.).
Hydraulic pump output has been increased by 10
percent, without degrading conventional cycle-time
performance. This results in higher fow rate at the
same pressure. Higher fow rate means faster speed.
Pump speed is increased through a change in the
pump-drive gear-ratio change.
The hydraulic oil cooler has changed. The manufacture
of the core has been improved, along with the
type of core row and fn shape. Fan speed has been
increased to provided additional cooling capacity due
to an increase in hydraulic horsepower.
Inside the cab, LED lighting has been adopted for
longer life and less heat generation. An optional interface
with major mine management systems commonly
used at many mine sites, including Wenco Fleet
Management Systems (provided by Wenco International
Mining Systems Ltd., a subsidiary of Hitachi
Construction Machinery Co., Ltd.), is also available.
Although the Cummins engine model number
remains the same, this different engine confguration
provides increased horsepower. There is now a spinon-type
pilot-system flter for easier serviceability.
To see what’s new and what’s been retained in
the EX5600-6, go to your local Hitachi dealer, visit
www.hitachimining.com, or see us at MINExpo —
booth 8527, Central Hall — to check it out.
PRSRT STD
AUTO
U.S. POSTAGE PAID
STEVENS POINT, WI
PERMIT NO. 272
DKD1029 Litho in U.S.A. (12-07)
Hitachi Construction and Mining Products • 1515 5th Avenue • Moline, IL 61265 • www.hitachimining.com

Hycroft:
sleeping
Even though over a million ounces of gold have
already been mined, and there has been activity on
the property off and on for over 100 years, Hycroft
mine’s new owners are confdent this sleeping giant
has yet to reach its full potential — thanks to the
steady increase in the price of both gold and silver.
And the same can easily be said for its six-year-old
owner, Allied Nevada Gold Corp. The company currently
owns one of the largest silver reserves in North
America, along with sizeable gold reserves, all within
the state of Nevada. The Hycroft mine is its frst
operating mine. The company also owns more than
100 advanced and early-stage exploration properties
in Nevada, some of which are multiple joint ventures.
Hycroft is located 87 km (54 miles) west of
Winnemucca, Nevada, in the Sulfur Mining district.
The mine encompasses approximately 24 844
hectares (61,389 acres), including both patented and
unpatented claims. While in production from 1987–
1998, Hycroft produced over one million ounces of
gold using an open-pit heap-leaching process.
RAmpING up To speed
“The Hycroft mine was attractive to us because
it already had permits and a fair amount of infrastructure,
and we were able to obtain it for a relatively
modest capital investment,” says Warren D.
Woods, Vice President and General Manager, Hycroft
Resources and Development, Inc., a subsidiary of
Allied Nevada.
“The only thing wrong with it was that, with the
low prices of the mid ’90s, the cost of production was
too high. Now, however, with the much higher metal
prices, the cost equation is proftable. Plus we felt we
could raise the capital needed to make the cost per
ounce substantially less.
“However, in 2008, when we wanted to start up,
you couldn’t fnd equipment. Everyone was busy.
Warren D. Woods, Vice President & General Manager, Hycroft
Resources and Development, Inc.
Ultimately, we found a copper mine that was closing.
But we had to buy all of their equipment, which
included 200-ton trucks, loaders, and dozers. But at
least it got us going.
“Based on past exploration, we fgured we had at
least three years of mine life. But as we started to do
our own exploration, and as the price for both silver
and gold continued to go up, we extended the mine
life to fve to seven years, then 10 to 20. We’ve found
a lot more silver oxides, and the deeper ore started
getting interesting.”
expANsIoN plANs ANd bRIdGING The GAp
Last year, the company’s board approved a $221-
million expansion, so Hycroft started upsizing
equipment and planning for a mill on-site. They’ve
ordered the long lead-time items, and in the meantime,
are in the permitting process to expand the
pit while ramping up the pace of more equipment
move-ins.
“When we started to order new equipment, we
chose the 320-ton-sized truck because we’d already
ordered three electric rope shovels for 2014 delivery,”
explains Woods.
“The trucks are starting to arrive, and our thought
process was to go with the best hydraulic shovel we
could fnd to not only bridge the gap till 2014 but
also provide continued fexibility to complement the
rope shovels. So, we chose the Hitachi EX5500-6
and placed an order for three.”

awakes
Woods is no stranger to Hitachi mining shovels.
Prior to Hycroft, he was general manager of Nome
Operations for NovaGold Resources—Alaska Gold.
He has over 30 years of mining experience, with
nearly 20 of those managing large-scale, open-pit
mines and projects in North America including the
Fort Knox mine in Alaska. Over the years, he’s been
in a position to witness Hitachi productivity and
quality for himself, and he knew he wanted it for
Hycroft Mine.
“Unfortunately, our frst 5500-6 shovel was literally
on the dock in Japan ready to be shipped when
the 2011 tsunami hit,” recalls Woods. “Although
there cannot be enough said to describe the hardship
the Japanese people went through as a result of that
disaster, it had repercussions around the world. And,
it certainly placed a real hardship on us. There was a
lot of gnashing and grinding of teeth on our end as
we tried to fgure what to do in the interim, because
obviously our entire order and production plan had
to be altered.
“But we felt strongly enough about the product,
and (our dealer) Arnold Machinery’s support of the
product, that we decided to stick it out. We really
like the Hitachi 5500s. They’re dependable and very
productive. And now that they’re here, I’m glad we
waited. In the interim, Arnold Machinery helped fnd
and refurbish a couple of used EX3500s. We plan
to keep them, and ultimately move them to another
mine we’re just getting ready to open up.
The EX5500-6 provides great production and is very dependable.
“Our mine plan calls for us to reach over 400,000
tons a day, and it will take at least two of the three
EX5500s along with the three rope shovels to maintain
that rate. So it could be that one of the three
EX5500s might eventually go to another property.”
The EX5500-6 is a little small for the 320-ton
truck, taking an average of six passes compared to
three for the new model rope shovel the mine bought.
But it will provide great fexibility for opening up
new areas — and the 5500 is certainly more effcient
and easier to move as opposed to the more elaborate
steps required to move the electric rope shovel. And
the 5500-6’s cost per ton of loaded material is quite
competitive, so the two kinds of machines will actually
complement each other.
From yAwN To wow
An awakening giant indeed! From a start-up of
six 200-ton used trucks loaded by four-wheel loaders
to a feet of 16 320-ton trucks, three EX5500s
with 30.5-m 3 (40 cu. yd.) capacities, and three rope
shovels with 61-m 3 (80 cu. yd.) capacities...an ultimate
annual production that skyrockets from a 2008
start-up of zero to a projected annual production of
616,800 ounces of gold and 25.9-million ounces of
silver by around 2015. Hycroft and Allied Nevada
are now defnitely on the fast track to success.
Hycroft Mine is serviced by Arnold Machinery
Company, Elko, Nevada.

Hitachi expands
manufacturing
capacities
Hitachi Construction Machinery plans to expand
two existing plants in Hitachinaka City and construct
more plants in the city to signifcantly boost
production capacity for mining machines, including
large and ultra-large hydraulic excavators and
dump trucks. Hitachi will also make investments
to increase production at plants in West Cikarang,
Bekasi, Indonesia (component manufacturing) and
Guelph, Ontario, Canada (rigid-frame haul trucks).
The expansion of the Guelph truck plant will add
13,294 m 2 (143,100 sq. ft.). The plant will manufacture
190–300-metric-ton loading-capacity trucks for
sale primarily in North, Central, and South America.
It will also continue to manufacture EH1100-3 and
EH1700-3 trucks for global distribution. The cost of
the expansion is about Can$32 million. Workforce
size is forecast to double, with output to rise from
150 to 280 units a year. Guelph facility annual sales
are expected to increase from roughly Can$250
million to $580 million by 2018.
Hitachi to showcase
new AC-drive technology
advancements at
MINExpo 2012
Hitachi will introduce new
AC-drive technology advancements,
including Hitachi’s
next-generation IGBT propulsion
technology, at MINExpo 2012 in Las Vegas.
The technology enhancements will be showcased
in a next-generation rigid-frame hauler at
Hitachi’s booth. The truck will feature advanced
propulsion technology that delivers a whole new
level of effciency, vastly enhancing machine
operations for mining professionals everywhere.
“By specializing only in shovels and haulers,
Hitachi is able to focus, without compromise,
on producing highly effcient and productive
machinery,” said Ryan Blades, Division Manager,
Hitachi Mining. “The new AC-drive technology
advancements are a perfect example of the superior
quality and performance of this approach.
It’s something every mining company will want
to see and learn about.”
Hitachi Mining will be located at booth 8527
in the Central Hall and, in addition to its
AC-drive technology for rigid-frame trucks, will
also showcase updates to its Hitachi excavators.
BY NOT BUILDING
WE COMPROMISE ON
What happens when you don’t build all equipment
for all jobs but specialize in shovels and haulers
You build them better. You don’t cut corners. You
make them more reliable and productive. ThaT’s all.
hitachimining.com