Guinea
Siguiri
Key statistics
| Siguiri | 2010 | 2009 | 2008 | ||
|---|---|---|---|---|---|
| Pay limit | (oz/t) | 0.02 | 0.02 | 0.03 | |
| (g/t) | 0.66 | 0.71 | 0.93 | ||
| Recovered grade | (oz/t) | 0.028 | 0.032 | 0.035 | |
| (g/t) | 0.97 | 1.11 | 1.20 | ||
| Gold production | – 100% | (000oz) | 321 | 372 | 392 |
| – 85% | 273 | 316 | 333 | ||
| Total cash costs | ($/oz) | 643 | 519 | 466 | |
| Total production costs | ($/oz) | 701 | 595 | 542 | |
| Capital expenditure | – 100% | ($m) | 12 | 26 | 22 |
| – 85% | 10 | 22 | 18 | ||
| Total number of employees | 3,170 | 2,973 | 2,933 | ||
| Employees | 1,531 | 1,492 | 1,489 | ||
| Contractors | 1,639 | 1,481 | 1,444 | ||
| All injury frequency rate | (per million hours worked) | 6.15 | 5.54 | 9.42 |
| Outlook for 2011 (attributable) | ||||
|---|---|---|---|---|
| Production | (000oz) | 270 – 281 | ||
| Total cash costs | ($/oz) | 693 – 719 | ||
| Capital expenditure | ($m) | 30 |
Attributable gold production
(000oz)
Attributable capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
AngloGold Ashanti has an 85% interest in Siguiri and the government of Guinea owns the balance. Siguiri is a multiple open-pit, oxide gold mine situated in the Siguiri district in the northeast of the Republic of Guinea, about 850km northeast of the capital, Conakry. Siguiri’s open pits are operated by mining contractors using conventional techniques. Mineralisation at Siguiri is hosted within the Birimian System. The plant processes at a rate of about 30,000t of ore a day.
Operating performance
Attributable gold production declined by 14% to 273,000oz, due mainly to the mining of lower grade ore. The decline in grade was a result of lower overall grades mined in the Sintroko and Tubani pits. Production was also affected by lower drawdown rates, which affected geotechnical stability and caused the failure of the main ramp of Sintroko pushback 1. This delayed mining operations in the affected area from August to November.
The mine implemented the BPF component of the Project ONE business improvement initiative during 2010. It is anticipated that plant efficiencies will improve as a result of increased throughput as new initiatives are introduced.
Total cash costs increased by 24% to $643/oz, from $519/oz in 2009, due to higher fuel prices and costs related to labour and mining contractors.
Capital expenditure totalled $12m ($10m attributable) with $6m spent on brownfield exploration and $6m on stay-in-business projects.
Growth prospects
Scoping studies are being undertaken on the mining optimisations and expanded metallurgical processing capability of the mine. These studies are expected to:
- provide direction for the short- and long-term development of the mine;
- address the 30Mt a year treatment of saprolite ore from areas to the northwest and southeast of the current pits, as well as the overlying cap rock in those areas and the transitional and hard oxide deposits below the existing pits; and
- conduct mining scenarios to provide cut-off grades that will feed into blue sky exploration drilling programmes.
Successful completion of the studies will provide direction on the expected increase in throughput over the life of mine.
Current Proved and Probable oxide Ore Reserves at Siguiri are around 2Moz of gold at 1.28g/t from the operation’s pits and 1.77 Moz at 0.55g/t from stockpiles and spent heaps. This is sufficient to feed the plant at a rate of 10.2Mt a year for three to four years. Studies are planned for 2011 to determine options available to improve plant throughput.
There remains potential for additional sulphide and low-grade oxide Mineral Resources in the regional gold belt, which remains very prospective and under explored. Support for this view is based on gold showings in surface geochemistry and on interpretations based on geophysical and geological understanding. Fast-tracking of drilling is required to upgrade ‘blue sky’ estimates into Proved and Probable Ore Reserves.
Outlook for 2011
Attributable gold production for 2011 is projected at between 270,000oz and 281,000oz at a total cash cost of between $693/oz and $719/oz.
Capital expenditure of $36m (attributable $30m) is scheduled for 2011, comprising project capital of $12m, $21m of stay-in-business capital and $3m for exploration.
Sustainability
Safety
Siguiri had one fatality in January 2010 when a collision occurred between two trucks. Management implemented an action plan whereby contractors are closely managed and monitored with regards to safety. The all injury frequency rate for the year was 6.15 per million hours worked (2009: 5.54).
Management identified the need to entrench the view that safety remains more important than production goals. To achieve this, improvements are to be made to enforce basic safety rules and standards in contractor management, management visibility at the workplace, and operator training and awareness.
Preparations for continuous occupational hygiene measurement have been completed and this will be fully operational from January 2011.
The mine maintained its OHSAS 18001 certification.
Community
Siguiri continued its engagement with stakeholders to assure adoption of strategies to achieve common goals. An annual forum was initiated and held to solicit recommendations from interested stakeholders with a view to strengthening relationships with these groups. Long- and short-term community infrastructure projects were undertaken, including:
- health post (Kourouda);
- Great Mosque of Kintinian;
- Arabic school of Kintinian;
- upgrading of rural roads within and between villages;
- water drainage systems;
- water boreholes; and
- renovation of Siguiri Central police station and the airport.
The second round of the year’s malaria control initiative for the mine village and six major surrounding communities progressed steadily and was identified as the main reason for the reduction in malaria-related illnesses reported at the new medical centre. The challenge for the malaria control programme is how to attend to the larger community in the town of Siguiri, where about 70% of mine employees currently reside. It appears that the Global Fund is in the process of funding malaria projects in Guinea’s mining industry.
Environment
Three reportable environmental incidents occurred during the year, all involving tailings spillages. High density polyethylene pipelines are being replaced by steel pipes on an ongoing basis. The frequency of pipeline inspections has been increased in order to minimise the volume of material spilled should a leak occur. One incident was as a result of sabotage by community members. Community engagement including local and regional authorities was stepped up to prevent a recurrence.
Dust control on haul and access roads and at the ROM1 stockpile was satisfactory, but remains a challenge in the dry months. The operations relied heavily on recirculation of process water and extracted less than a third of its annual water allocation from Tinkinsso River.
The land management programme was well executed during the year, with no land-use conflicts with neighbouring communities.
Mine closure planning remained high on the agenda, resulting in a closure gap analysis being carried out and measures put in place to close the identified shortfalls.
Siguiri was certified to be in full compliance with the International Cyanide Management Code in March 2010. Certification is valid for three years. A successful ISO 14001 surveillance audit was conducted during the year.