BENKALA MINE VISIT REPORT

1: INTRODUCTION: A visit to the Benkala mine, owned and operated by Kazcopper, was made on 21st August 2012. This report summarises the findings and observations. In summary, the mine and processing facility was designed as fit for purpose. To improve cash flow and recoup initial capital investment early, it was circumspect to commence mining on the richest part (+1.2% Cu) of the orebody (Figure 1), twice the designed grade of the plant at steady state.

Figure 1: View of Benkala open pit, the richest part of the ore deposit

The total labour force at the mine is around 250. Managerial staff has been stable but turnover at the lower levels has been as high as 40%. This is to be expected with a new facility, operating in a remote part of the country. This evolutionary process will build a stronger team, with a common sense of dedication and purpose. Availability of competent rock for overliner material is a problem at the site; as a result, this material is quarried and transported from 60 kms away. Experiences learnt from this project can be used on future projects for a smoother and trouble free start up. The prudent philosophy adopted was to curtail cost at the front end of the plant but install the best equipment at the money making back end.

2: GENERAL OBSERVATIONS: 2.1: ACID OFFLOADING This is carried out in open air, Figure 2. The major exposure of the operator to harsh weather will be in the opening and closing of the offloading hatch of the acid tanker.

Figure 2: Open air acid offloading station

A simple, but effective, priming system enables remote operation of the offloading pumping system, Figure 3.

Figure 3: Acid offloading pumps priming system. A different and more suitable flooring material will be required

2.2: FLOORING Locally made hard wearing tiles have been used at a fraction of the cost of ceramic tiling. However, because of the high expansion coefficient of this material, it is only suitable for indoor application, Figure 4. An alternative will be needed for outdoor application.

Figure 4: Floor tiling used in the plant, not suitable for outdoor application due to its high expansion coefficient

2.3: STRONG ACID STORAGE The storage of concentrated sulphuric acid complies with the Kazakhstan regulations of the tanks being suspended 1.7 metres above ground level, for mandatory leaks inspection, Figure 5. Figure 5: Support for concentrated acid tank, allowing 1.7 metres of head clearance for leaks inspection

2.5: PLANT UPPER FLOORING and STAIRS Reinforced plastic grating was imported from China and used exclusively flooring and stairways Figures 6, and 7. The overall finish is neat and even.

Figure 6: Reinforced plastic grating used for flooring

Figure 7: Reinforced plastic grating used for stairs

2.6: USE OF STAINLESS STEEL FOR TANKS The use of stainless steel for the construction of some tanks proved to be a wrong choice. Leaks have developed in a very short time, Figure 8.

Figure 8: A Leak in a stainless steel tank

A better choice is Fibre Reinforced Plastic (FRP). Repairing a leak on an FRP tank is an easy job whereas that for a stainless steel tank is a protracted procedure, and success is not guaranteed. 2.7: PICKET FENCE CONSTRUCTION The picket fence construction is the simplest the author has seen in his career. It entailed the splitting of an HDPE pipe longitudinally and using it, Figure 9.

Figure 9: Picket fence constructed from HDPE pipe

2.8: CHOICE OF RECTIFORMER The choice of rectiformer was also well planned. By buying from Rapid of the USA, Figure 10, it was 40% cheaper than buying from one of the larger suppliers such as ABB. However, there were disadvantages as Rapid did not provide a packaging and logistical service. Additional, but marginal expenses were incurred for those services.

Figure 10: Rapid rectiformer, 40% cheaper than the next nearest competitor

2.9: THE PRESENCE OF ACID MIST IN THE ELECTROWINNING TANKHOUSE Acid mist is evident in the electrowinning tankhouse, but the situation on the day of the visit was not unbearable, Figure 11.

Figure 11: Acid mist in the electrolytic tankhouse

Measures are in place to attenuate the acid mist generation problem, namely: The use of plastic balls to curtail emission of mist, and The use of a flexible, and impervious, plastic mat above the cells to contain the mist

The author feels that both of these measures will be more effective than the ubiquitous fume hood/extractor fan/scrubber combination, and significantly cheaper also. 2.10: CATHODE QUALITY Cathode quality is very good. There was no sign of nodulisation, Figure 12. It is early days yet. Nodules form with the build up of impurities within the process.

Figure 12: Nodule-free copper cathodes at Benkala

2.11: VALVES WITHIN THE PLANT Plastic valves, imported from Italy, are used exclusively within the plant, Figures 13 and 14. Their feel and appearance reflect a quality product.

Figure 13: Smaller diameter Italian made plastic valve, used within the process buildings

Figure 14: Larger diameter Italian made plastic valve

2.12: PREGNANT LEACH SOLUTION (PLS) FEED PUMPS Centrifugal pumps with a dedicated priming system have been employed for this purpose, Figure 15. These pumps are significantly cheaper than the turbine pumps proposed for Aktogay. They are capable of sucking from a fairly deep PLS pond, Figure 16. Figure 15: PLS feed pumps priming system

Figure 16: The PLS feed pumps draw solution from a relatively deep pond

2.13: STOCK HOLDING Because of the remoteness of the site, there is an abnormally high stock of extractant on site, Figure 17. Dialogue has been opened with the supplier, BASF, to stock the extractant in country. This will improve cash flow significantly. Figure 17: Extractant used in the process

2.14: DOSING OF EXTRACTANT Many plants pump extractant to the process. At Benkala, the container is lifted to the floor of the mixer and the extractant fed by gravity. 2.15: CRUD Crud has not appeared as yet, as a result, the crud filter press is lying idle, Figure 18.

Figure 18: Crud filter press awaiting use

2.16: SYNERGIES TO BE DERIVED If a similar plant or a plant comprising multiple lines of this plant is built, significant cash held in stocks can be avoided. An agreement can be reached between the two plants where they hold separate spares such as: Cathodes Anodes Mixer mechanisms Electrolytic cells tanks, Figure 19

And share between them when the need arises. Such an agreement can improve cash flow considerably.

Figure 19: Tank for an electrolytic cell

2.17: PRODUCTION PROFILE On the day of the plant visit, production was still being ramped up, but Benkala was already harvesting 20 tonnes of cathode per day, Figure 20. This is considered to be an average start up for such a plant.

Figure 20: Finished plated copper at Benkala, awaiting export 3: ACKNOWLEDGEMENTS: The author wishes to express his gratitude to the management of the Kazakhmys projects team on the Aktogay project for offering him such an opportunity to visit the newest heap leach/SX/EW plant in Kazakhstan. This trip offered a new insight of how simplicity and practicality can add shareholder value. The hospitality of Kazcopper is deeply acknowledged, it was beyond compare. The discussions with Kazcoppers COO, Adil on the journey to and from the site was an education by itself, and highly appreciated. His pragmatic approach to project management and implementation is exactly what is needed to make such low grade deposits payable. Such logical methodology to project execution instilled tremendous confidence in the author. His indomitable insight of regulatory requirements within Kazakhstan is second to none. The humour of my colleagues Mark and Andrew must be mentioned for keeping me awake, alert and active during the arduous trip to the mine. This report is the culmination of their joint contributions in that respect.

Ramoutar (Ken) Seecharran Process Plant Manager Aktogay