LKAB Looks to New Levels at Malmberget and Kiruna
Thanks to long-term high demand for iron ore products, particularly pellets, LKAB has been able to make continuous improvements to plants and processes on an ongoing basis since 2002, a strategy that the Swedish company intends to maintain. From 2002 to 2006 mine output from Kiruna and Malmberget rose from 20 million metric tons (mt) to 23.3 million mt and productivity grew steadily to almost 8,000 mt/employee. In 2007 total output jumped to 24.7 million mt and deliveries to 25.1 million mt.

Mining division revenue grew from almost SEK12.6=$1.7 million in 2006 to almost SEK14.3=$2 million, although operating income fell slightly, partly as a result of investments in mine development. The new Malmberget MK3 pelletizing plant (See E&MJ, October 2007, pp. 48-52) achieved planned capacity and product quality, with the sintering unit now running at its full 8 million mt/y capacity according to Outotec. The specialized subsidiary companies KGS, Kimit, Wassara and FAB collectively raised revenues to SEK701=$97 million in 2007, from SEK600=$83 million in the previous year. Group revenue grew by 12% to almost SEK16.4= $2.3 million in 2007.

The iron ore production and delivery target for 2008 is 26 million mt, with pellets contributing 22 million mt thanks to the new plant at Kiruna coming onstream. But things did not get off to the best of starts, with a contractor losing his life at the Kiruna mine in February and a fire in the same month at Malmberget requiring an extensive cleanup and repair operation such that normal production was only resumed in early April. Consequently, iron ore output fell to 11.3 million mt in first half 2008, from 11.9 million mt from January through June 2007. Nevertheless net sales revenue for the first six months at SEK11,156 million=$1.5 billion were 34% up on first half 2007, largely due to higher market prices.

New Process Plants in Operation
The operating setbacks were an unfortunate diversion during what has otherwise been a very positive period for the LKAB iron ore operations.

The KA3 concentrator, including Outotec grinding mills and flotation cells, and the KK4 pelletization plant started up in May, with the first iron ore pellets rolling out on May 4. The project had started in December 2005 and, although there were some delays caused by labor disputes, was completed on schedule, much to the satisfaction of Project Manager Ǻsa Sundqvist. KK4, which is LKAB’s sixth pelletizing plant, should initially produce about 5 million mt/y but capacity can be raised to 6 million mt/y through complementary investments. KK4 is the world’s largest grate-kiln plant, with equipment from Metso Minerals. Process adjustment to attain production rate stability started immediately. From now on Kiruna will only produce pellet products, while Malmberget will make pellets and some ore fines.

One non-process equipment supplier to the project is Finland’s Vacon. This firm had supplied some 100 AC drives to control pumps and fans at the KA2 concentrator at Kiruna as well as units for the ventilation system at Malmberget mine so it was not too difficult choice for the KA3 and KK4 projects. Vacon has supplied AC drives to control pumps, fans, conveyors and feeders in the two plants. About 200 air- and liquid-cooled 690V Vacon NXP drives are controlled via Profibus and CANbus will be used for communicating with the maintenance system. Vacon says liquid cooling enables the plants to use cabinets with a high protection class and also allow heat losses to be transported outside the electrical room so it does not need fresh air ventilation. Support and service for the equipment is being provided by Vacon’s Swedish subsidiary.

LKAB has also been upgrading facilities at the company’s third iron ore treatment site, Svappavaara. The new flotation plant was commissioned in the second quarter, utilizing the latest technology to process high-phosphorus ore from Kiruna so that it can be treated in the Svappavaara pelletizing plant.

New Mine Capacity Planning
To keep the much-expanded processing capacity fed, LKAB will have to develop new long-term mine capacity. In February this year the board of directors voted to go ahead with construction of a new main level for the Malmberget mine. The total investment is estimated at several billion SEK but this includes some projects that have already been given the go-ahead.

Malmberget is currently mining ten of a total of 20 large and small orebodies on three main levels—600-, 815- and 1,000- m below the original surface level—opened in 1969, 1989 and 2000, respectively. Under the investment plan, the newest 1,000 m level will be extended to access the Fabian orebody in the so-called Östra Fältet. This orebody, presently mined via the 815 level, contains magnetite ore and continues at depth. A completely new main level will be driven at the 1,250 m level to access the other orebodies in the Östra Fältet which are all magnetite reserves.

This M1250 level is being planned to enable the mining of 18 million mt/y of crude ore plus 1 to 2 million mt/y development waste rock. The total ore reserve is estimated at 140 million mt crude ore, sufficient to yield about 84 million mt of finished product and to extend Malmberget’s operating life by probably about 10 years to 2020 or thereabouts. Commissioning of the new main level will probably take place during third quarter 2010. Construction will likely need about 250 people per year but, as M1250 will replace previous levels, the size of the production workforce will not change significantly.

At Kiruna the present 1,045 m level—the sixth since underground mining began in 1957—was originally expected to function as the main level until 2015 or even longer. Demand for LKAB ore has changed that and studies for the next main level at 1365m anticipate start up in 2013. In preparation, LKAB has been surveying the orebody to the north of the current mining area, the data showing that the orebody is 150- to 180-m wide at depth, about twice the width on the current mining levels, and is high grade with very little of the phosphorus that complicates processing of some of the ore mined now.

As well as undertaking extensive regional exploration to locate new sources of ore LKAB contemplates a restart of mining at Svappavaara where open-pit mining was halted in 1983 during a prolonged market downturn: studies started in fall 2007. The objective is to create a 2 million mt/y (maximum) open-pit mine yielding magnetite products. In April of this year, LKAB announced that its subsidiary company Minelco, which sells magnetite products used in applications outside of iron and steelmaking, has been granted a permit to test mine 50,000 mt of ore from the Gruvberget deposit near the pelletizing operation, which is estimated to contain at least 27 million mt of magnetite and hematite.

The project is being fast-tracked. Mined material will be used for laboratory scale and pilot scale trials at the LKAB research facility in Malmberget, followed by full scale testing in the Svappavaara concentrator, with all testing scheduled to be completed by the end of 2008. LKAB hopes to get the necessary environmental and mining permits in time to start commercial mining in early 2009.

New Boliden Looks to Copper
New Boliden operates several medium to large zinc-lead mines, with varying amounts of precious metal by products, all of which are in Sweden except Tara in Ireland. No great surprise therefore that, when summarizing first half 2008 performance, New Boliden reported: “Lower zinc prices and weaker U.S. dollar cut profits.” But the company is also a major league copper miner at Aitik and smelter at Ronnskär so higher copper and lead prices somewhat offset the zinc hit.

Smelter production of cast zinc was 5% lower than in first half 2007, due to a planned shutdown for maintenance at the Kokkola facility in Finland and roasting process problems at Odda in Norway. On the other hand copper cathode output was 5% up.

Mines production of both zinc and copper fell 10% from January to June 2008 compared with first half 2007, mainly as a result of planned cutbacks in the Boliden area and processing of low grindability ore at Aitik. Boliden is outsourcing a lot of the service work at its process units, notably to Outotec.

Aitik 36 Progresses
By far the largest of Boliden’s current investments is the expansion at Aitik, which Boliden reports is on schedule. Two significant supply contracts signed with Nordic companies since our previous report are one for piping, with Finland’s KWH Pipe, and one for large blast hole drills with Atlas Copco, albeit this involves rotary drills manufactured by Atlas Copco Drilling Solutions in the United States.

KWH Pipe, which is already working on the piping at the Talvivaara project, will deliver WehoSlurry abrasion-resistant piping for transporting slurry at Aitik and WehoPipe solid-wall pipe for transporting raw and process water.

In January 2009, the mine will commission the first of four Atlas Copco Pit Viper PV351 E rotary drill rigs. The PV351 E, which is equipped with the Atlas Copco rig control system, will drill 311-mm-diameter holes to a depth of 15 m although the machine is capable of drilling to 19.8 m in a single pass and has a carousel for two additional 10.6-m rods. The first two units will be fitted with the manufacturer’s patented Angle Drilling Package that allows the rig to drill holes at up to 30° from vertical.

Technology Transfer
Meanwhile, Atlas Copco delivered a new Simba M6 C production drilling rig to Boliden’s Garpenberg mine for use in the recently developed Lappberget orebody. This machine has been equipped with the Mine Navigation System for use with Garpenberg’s mine plan database and an automatic bit changer, which enables the rig to drill a fan of up to 30-m-deep downholes in automatic mode even though the Lappberget rock can need several bits per fan. Boliden has undertaken a program of technology transfer from Garpenberg to the Tara mine in Ireland where it is also using a quite new Atlas Copco fleet including Cabletec and Scaletec machines.

Exploration Intensified
Boliden continues to develop all of its mineral assets, with favourable results, particularly at the Garpenberg and Kristineberg mines. Exploration at Maurliden Östra in the Boliden Area was completed and the results are being evaluated. Swedish field exploration effort focuses on base metal and gold exploration in the Skellefte field and on base metals in Dorotea, Norbotten and Bergslagen, and has been started in the Aitik area. In Ireland the exploration program is being intensified in second half 2008.

Lundin: Waxing Resources to Replace Waning Mines
The rapidly growing Lundin Mining Corp. has had a very eventful 12 months, with the re-opening of the much developed Aljustrel operation in Portugal during December 2007, the closure of the Storliden mine in Sweden during June this year, progress with the copper orebody development project at Zinkgruvan in Sweden and the zinc expansion at Neves-Corvo in Portugal, and exciting discoveries at Neves-Corvo too. Progress was also made at the recently acquired Aguablanca nickel-copper operation in Spain and at the Ozernoe project in Russia. In addition, of course, the Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo, in which Lundin has a 24.75% stake, is expected to start up in second half 2009.

For January through June 2008, Lundin reported operating earnings of $320 million. Output of all metals was either in line or ahead of company expectations, with the exception of an almost 20,000 mt shortfall in zinc production at Aljustrel. But sales revenue decreased in the second quarter when the zinc and nickel prices were respectively 42% and 47% lower than in April through June 2007, although copper and lead were up by 7% and 11%, respectively. However, Phil Wright, president and CEO of Lundin Mining, said: “We are pleased with the operating performance and the operating earnings were ahead of our expectations. Excluding Aljustrel, which is in a pre-production phase, production of metal contained in concentrate was better than expected and we have accordingly increased our full year production forecast for copper and nickel.”

Sweden
Zinkgruvan remains a long-life, competitive mine in world terms. Ore production in January through June 2008 was 455,796 mt, 3% up on output in the first half of 2007. Mill production was marginally down although higher in the second quarter. With the exception of zinc ore, ore and concentrate grades fell. The net result was that contained zinc and silver outputs were 2% ahead of first half 2007 but lead was 3% lower. Sales value, however, fell from $107.9 million to $82.7 million, primarily as a result of the sharply lower zinc price and higher than budgeted cost due to rising input prices, a weaker US dollar and lower by-product credits.

On the positive side the lost time injury frequency rate was 74% better than in January through June 2007. And the copper project, approved during third quarter 2007, is on schedule. The exploration drilling rate was doubled relative to first half 2007; ramp development, preparatory work for the crusher installation and ore bin at the 800 level, and process equipment procurement are on track. The forecast cost in SEK is on budget but U.S. dollar costs have risen. First copper production is targeted for 2010. The copper processing system, valued at €16 million and including primary and secondary crushing, grinding, flotation and pressure filtration, is being supplied by Metso Minerals, as are pumping and conveying equipment to handle the process products. The copper line will be built parallel to the existing zinc and lead circuits. Delivery is to be completed during the fourth quarter of 2009.

On the mining side, Zinkgruvan is addressing problems experienced when drilling secondary stopes in blast-disturbed ground by changing drilling method. Using its Atlas Copco Simba top hammer drilling rigs in the rock mass next to blasted primary stopes it has been difficult to keep the drilled holes open. So the mine is trying in-the-hole drilling with the Simba, which should achieve more stable hole walls by using air/water mist flushing in combination with a sturdy pipe drill string. A COP34 hammer will be used with 76 mm drill rods and a 100 mm bit.

Iberia
At Lundin’s largest mine, Neves-Corvo, mine output and mill throughput were at record levels. Ore production in the January through June period of 2008 was 9% higher for copper ore and 13% up for zinc ore compared with the same six months of 2007. Copper mill throughput at 1.184 million mt was up 11%, and zinc at 241,565 mt was 25% ahead of the first half 2007 figures thanks to a new circuit.

A key company objective is internal organic growth, so Lundin is investing in the exploration of both near-mine and wider regional targets. The firm discovered a major new zinccopper deposit—Lombador East—at Neves-Corvo, potentially the largest such deposit yet found at the mine. But, says Lundin, the property remains under-explored with significant further potential. Exploration results from Aljustrel and Aguablanca are also encouraging.