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old Fields ac- Concentrates from the Cerro Corona flotation circuit will be loaded and trucked to the
quired an option port of Salaverry for shipment to Korea, Japan and Germany for smelting.
to purchase the
Cerro Corona project,
located in Hualgayoc,
Cajamarca Department,
Peru, in December 2003.
In January 2006, the option was taken up and
the transaction closed.
During the intervening months, project development occurred
against the backdrop of
a presidential election,
increasing national social
activism and environmental regulation, rapidly escalating operating
and capital costs, as well
as an unprecedented
demand for engineering
and technical skills. Project Lessons Learned
are discussed in the context of an evolving strategy.
The Cerro Corona
project forms part of a
porphyry copper-gold
deposit situated within
S.A. (SMC). The agreement called for a reorganization
the Hualgayoc Mining District in northern Peru. It is loin which the assets of the Cerro Corona project were
cated in the highest part of the Western Cordillera of the
transferred to a Peruvian company named La Cima S.A.
Andes, close to the headwaters of the Atlantic Continental
in July 2004. The environmental impact assessment for the
Basin. It lies approximately 90 km (56 miles) by road north
project was submitted to the Peruvian Ministry of Energy
of the Department of Cajamarcas capital city and near the
and Mines (MEM) in May 2005. Following public consulvillage of Hualgayoc. Access to the Cerro Corona project
tation and comment, MEM approved the environmental
from Cajamarca is by two
impact study in December 2005.
roads, one from Cajamarca
Gold Fields subsequently completed the purchase
to the Yanacocha Mine 45
of a 92-percent voting interest (80.7 percent economic
km (28 miles), and then
interest) in the Cerro Corona Mine in January 2006, for
from Yanacocha to the vila total consideration of $40 million and established Gold
lage of Hualgayoc and the
Richard W. Graeme, member town of Bambamarca 45
Fields La Cima (GFLC). GFLC acquired all requisite
additional permits to construct the mine. Construction
km
(28
miles).
SME, is Vice President Government and
began in May 2006.
In
December
2003,
Community Relations, Gold Fields La
Following seating of a new Peruvian national governGold Fields, through a
Cima, Lima, Per, e-mail rgraeme@ subsidiary, signed a definiment in July 2006 and regional/local elections in November 2006, communities in the Cajamarca Department have
goldfieldsghana.com. James J. tive agreement to purchase
pressed existing operations, as well as GFLC, for greater
an
80.7-percent
economic
Komadina, member SME, is senior
involvement in the economic benefits of natural resource
and 92 percent voting inVice President, Development Projects terest in the Cerro Corona
development. GFLC has accommodated these wishes
with Gold Fields Exploration, Denver, CO, project from a Peruvian through skills training, employment commitments, as well
jkom@aol.com. family-owned company, as the use of local contractors and equipment. Although
community issues may arise from time to time, GFLC reSociedad Minera Corona
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October 2007
39
The Cerro Corona Mine in Peru is in an area that is believed to have been mined for
silver since Inca times.
Geology
October 2007
Mining Engineering
A Type: early veinlets, from millimeters to centimeters thickness, filled with quartz.
B Type: intermediate age, from millimeters to centimeters wide crustified veinlets, filled with quartzmagnetite.
Early mineralization was accompanied by moderate to strong potassic alteration. It has been commonly
overprinted by late, semi-pervasive argillic alteration
and locally, by structurally controlled phyllic alteration
assemblages (quartz-sericite-pyrite).
Supergene oxidation and leaching at Cerro Corona
have led to the development of a weak-to-moderate copper enrichment blanket, allowing for the subdivision of
the deposit from the surface down into:
Mining
The deposit will be mined by conventional surface mining methods generating a final surface mine areal extent
of 900 x 500 m (2,952 x 1,640 ft). The mining operation
will extend from the crest of the original hill at around
3945 RL to a final depth at around 3600 RL, relative to
the general surface elevation in the area of between 3900
RL and 3770 RL.
Bulk mining will use 10-m (33-ft) benches. Loading will
be by a combination of a 230-t (253-st) diesel hydraulic
face shovel and a 190-t (209-st) rubber-tired front-end
loader loading six 150-t (165-st) and four 100-t (110-st)
haul trucks. At this stage, it is assumed that all of the material requires drilling and blasting, though with varying
powder factors, use 165 mm (6.6 in.) holes for 10 m (33 ft)
benches. Smaller sized dedicated equipment is planned in
the initial construction period for completing haul road,
process plant and run-of-mine (ROM) pad earthworks.
Ore will be trucked from the surface mine to the ROM
Geotechnical parameters
Reserves
GFLC performed a number of surface mine optimizations for the deposit to establish reserves. Proven and
probable reserves are based on a US$10.93/g (US$375/oz)
gold price and a 90 cents/lb copper price (Table 1). The
deposit is geologically subdivided into four zones, and
reserves are therefore presented by zone. The overburden
component includes 7.27 t (8,011 st) of mineralized oxide
at 1.39 g/t (0.04 oz/st) gold. Current reserve estimates are
constrained by infrastructure capacity issues and have not
been recalculated using higher metal prices.
Processing
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October 2007
41
Flotation
42
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Mining Engineering
Tailing thickening
Project milestones
The environmental impact study (EIS) was completed by Knight Pisold and submitted in late May 2005.
Through the propertys varied ownership, environmental
baseline studies were initiated in 1995 by Knight Pisold
and then updated in 1997. In 2000, Vector performed additional monitoring and verification of key environmental
parameters. These included water quality, biological diversity and archaeological heritage as well as community
attitudes towards the project. Knight Pisold was commissioned by GFLC to update its work as part of the acquisition due diligence process. Social Capital Group was
retained by GFLC to review the social issues. An audit of
the social programs and their effectiveness was conducted
by Business for Social Responsibility.
In May 2004, Gold Fields commissioned Montgomery
Watson Harza (MWH) Peru to undertake a detailed review of available data in preparation for compiling the EIS.
MWHs review identified (confirmed) a number of areas
where updated or additional information was required
including office work and site data collection. The main
areas to be addressed included:
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44
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Mining Engineering
Social interactions
Social programs. Depending on their aim, social programs could be classified as social prevention programs or social development programs.
Social prevention programs are those oriented to
the mitigation of foreseeable negative impacts.
Social development programs are aimed at boosting the foreseeable positive impacts and/or at the
implementation of social responsibility policies
by the projects principal.
The social prevention programs forming part
of the projects community relations plan are as
follows:
Workers community relations training program.
Communication and consultation program.
Program for health and safety in transport related
activities.
Rural roads and infrastructure improvement program.
Closing social program.
The social development programs forming part of the
projects community relations plan are as follows:
Identification of stakeholders.
Opportunities for stakeholder participation.
Undertaking a social impact study.
Identification and resolving the populations concerns
and worries.
Monitoring and evaluation of the consultation process.
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45
Hualgayoc, the unprecedented opportunity to participate in the permitting process has been an uplifting and
empowering experience. There is a sense of cooperation
between the community, government and the company
that never existed before. The people of this district,
through open and public participation in the permitting
process, have helped shape their future. The economic
and employment opportunities they now have through
the social commitments of GFLC to those in the area of
influence are unprecedented in the centuries old history
of the mining here.
The participatory process for an EIS that carefully and
appropriately considers all of the stakeholders can and will
yield an environment where responsible mining activities
can peacefully exist with the communities they are close
to. Integral to this tranquillity are the concepts that there
is a clear benefit to the local population and communities
Summary
because of the mines presence, that the local residents had
For the residents of the historic mining district of
substantive input into the permitting process and that the
channels of communication between
the company and stakeholders are
Agricultural improvements are part of Cerro Coronas sustainable
development plan.
always open.
The social interaction and impact
mitigation aspect of GFLCs plan
incorporates all of these concepts and
more. It is through these avenues that
the company will build and maintain a
close, cooperative and mutually beneficial relationship with its neighbors
in the nearby communities. n
Acknowledgements
The authors thank the management of Gold Fields Ltd. for the ability to present this paper. They would
further concede that without the dedication and hard work of Gold Fields
La Cima staff, consultants, regulatory
agency personnel and the honesty of
the community members, the success
which is now evident, would not have
been possible.
46
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