Mine Plan Design

Industry concerns over mineral scarcity

Senior executives in 7 major industry segments worldwide "expect their companies to be affected by minerals and metals supply scarcity in the next 5 years," according to a new report from PricewaterhouseCooper.

The key conclusions of the report are:

Major manufacturing companies consider minerals and metals scarcity as an important issue for their business, but do not see sufficient awareness of this topic among all their stakeholders.
The risk of scarcity is expected to rise significantly, leading to supply instability and potential disruptions in the next five years, but this also creates opportunities for competitive advantage.
Because of the crucial nature of these minerals and metals, companies expect that the impact will be felt throughout the entire supply chain.
Economic and political drivers of scarcity are generally seen as much more important than physical drivers.
The renewable energy, automotive and high-tech industries have a high level of co-operation with their first-tier suppliers and customers.
For a large majority of the companies we interviewed, efficiency and collaboration throughout the supply chain are seen as essential to responding to the risk.

Ref: Minerals and metals scarcity in manufacturing: the ticking timebomb - Sustainable Materials Management, 2011, PwC

[Thanks to Jamie Caswell at National Mining Association for bringing the report to our attention]

Catching up on Arizona copper mining activity

Nyal Niemuth, who runs our Phoenix office, joined AZGS last year from the Dept. of Mines & Mineral Resources, where he'd been evaluating mining and mineral resources in Arizona for 30 years. He briefed us last week on developments at southern Arizona copper mines.

Freeport McMoRan's drilling program at Twin Buttes is winding down. Freeport is continuing to review historic drill holes and creating a detailed deposit model. Speculation is that when the mine reopens it will feed the Sierrita mill. In the Fiscal 2011 10Q report, Freeport reported:

In December 2009, we purchased the Twin Buttes copper mine, which ceased operations in 1994 and is adjacent to our Sierrita mine. The purchase provides significant synergies in the Sierrita minerals district, including the potential for expanded mining activities and access to material that can be used for Sierrita tailings and stockpile reclamation purposes. We are conducting drilling on the property and metallurgical studies to support a feasibility study expected to commence in 2012.

Grupo Mexico reports that mine life is being extended at Asarco’s Mission and Silver Bell mines. Mission’s copper production should increase. Grupo’s 2011 Q1 report says:

Asarco began a pre-feasibility study in February 2011 for the project to restart a molybdenum circuit at the Mission mine. The study is expected to be completed in May 2011. Also, the exploration and drilling program continues and the proven reserves at the different mines are expected to increase by the end of 2011.

The company's 2011 Q2 says:

The exploration program for the properties in Arizona continues as planned. Ore reserves at Silver Bell increased by 24 million tons, equivalent to 148 million pounds of copper, which represents approximately two additional years of cathode production. The pre-feasibility studies for the project to restart a molybdenum circuit at the Mission mine continue and are expected to be completed in 3Q11.

And from Grupo’s 2011 Q3 report on Asarco:

Capital expenditures for the first nine months of the year were US$59 million, 209% over the previous year, mainly attributable to maintenance projects at the smelter, refinery, and the replacement of mine equipment and for the expansion of operations in Mission and Ray [mines].

Bills introduced in Arizona Legislature

The Arizona Legislature convenes on January 9 for the 2012 session. Here are bills filed so far that I found that may be of interest to the geoscience community:

HB2025 Water supply disclosure in home sales

Beginning January 1, 2013, a subdivider who sells one or more lots in a subdivision located outside of an active management area shall record a document that contains a statement of water adequacy or inadequacy for that subdivision.

HB2086 Mining & mineral museum; restoration

[AZGS] shall maintain a mining and mineral museum as the state depository for collecting, and cataloging and displaying mining artifacts and specimens, of various ores, gemstones, lapidary material and equipment and other valuable documents relating to mining and minerals mineral specimens.

HCR2007 Vulture Mine Day

Legislature proclaims the first Saturday of each January as Vulture Mine Day and encourages Arizona citizens to recognize and learn about this important part of our state's heritage.

Legislation calls for AZGS to create mining & mineral museum

State Rep. Eddie Ableser (D-Tempe) introduced legislation [HB2086] directing the Arizona Geological Survey to establish a mineral and mining museum. It would also remove the mining and mineral components of the currently proposed Centennial Museum [right] that is planned for the former Arizona Mining & Mineral Museum building in Phoenix.

We have had no conversations with Rep. Ableser about his bill and were not aware it was being drafted.

The key language to be added to the AZGS state statutes is:

The department [AZGS] shall maintain a mining and mineral museum as the state depository for collecting, and cataloging and displaying mining artifacts and specimens, of various ores, gemstones, lapidary material and equipment and other valuable documents relating to mining and minerals mineral specimens. In connection with the museum, the state geologist may:

1. Establish and collect entrance fees to the museum for persons who are at least eighteen years of age.

2. Operate a retail gift shop, including the acquisition, purchase and resale of mineral specimens and mineral-related items.

3. Employ a curator for the museum.

4. Pay the necessary maintenance and operation expenses of the museum.

First-ever solar project on federal lands in Arizona

Approval of the Sonoran Solar Energy Project is the first-ever solar project on public lands in Arizona, according to the BLM. The photovoltaic project will eventually produce 300 megawatts of electricity near Buckeye in Maricopa County [Right, credit BLM]

The Dept. of Interior announcement notes the project will be built on 2,013 acres of public land. BLM manages 12.2 million acres of public lands in Arizona, of which 3.4 million acres are managed for conservation and wilderness characteristics

The Arizona Republic reports that the project footprint is "about 1,600 acres fewer than the original proposal. The power array also will use just 33 acre-feet of water a year, far less than the 3,000 acre-feet a year first envisioned. The water savings will occur because the plant will use photovoltaic technology instead of the more water-intensive concentrated solar process."

Final public hearing on Rosemont copper mine

The Coronado National Forest issued this announcement today about the last of the public hearings on the proposed Rosemont copper mine in the Santa Rita Mountains, south of Tucson:

The final public meeting for the Rosemont Copper Project Draft Environmental Impact Statement (DEIS) will be held on January 14th at the Sahuarita District Auditorium, 350 W. Sahuarita Road, Sahuarita, AZ, from 1:00 p.m. to 5:00 p.m. The formal 90 day public review and comment period ends on January 18, 2012. Requirements for commenting may be found at 36 Code of Federal Regulations Part 215.

The purpose of this final meeting is to solicit public input on the project’s Draft Environmental Impact Statement. Both written and oral comments will be taken at this meeting. For those wishing to make oral comment, speaker cards will be available beginning at 1:00.

Forest Supervisor Jim Upchurch will make a brief presentation beginning at 1:30. Beginning at 2:00, speaker cards will be pulled at random to determine the speaker order. To hear as many comments as possible, each speaker will be limited to 3 minutes in length. Any speaker cards received after 2:00 will be addressed if time allows. Oral comments will be heard until 5:00 p.m.

The Coronado National Forest is accepting public comments on the Rosemont Copper Project DEIS in a variety of formats. The DEIS is available online at www.RosemontEIS.us. Citizens are encouraged to review the document before submitting comments. Although comments may be submitted by various methods, citizens need only provide comments once for them to receive full consideration. Comments can also be submitted online at www.RosemontEIS.us; by email at CoronadoNF@RosemontEIS.us; by phone at (888) 654-6646; by facsimile to (435) 750-8799; and by mail at Rosemont Comments, P.O. Box 4207, Logan, UT 84323. The subject line of facsimiles and e-mails should include the words “Rosemont Copper Project DEIS”. E-mail attachments should be in Word (.docx), rich-text format (.rtf), or portable document format (.pdf).

Comments most useful for the Environmental Impact Statement process should be as specific as possible. It is also helpful if comments refer to pages and/or chapters of the DEIS. Comments may address either the adequacy of specific analyses in the DEIS or the merits of the alternatives formulated and discussed in the document, or both.

For questions or special needs regarding the public meetings or the comment period, the public may call (520) 388-8300. Additional information about the Rosemont Copper Project DEIS is available online at www.RosemontEIS.us.

Some Lake Mead seismic activity due to quarry blasts

Some of the events recorded on seismographs as earthquakes around or under Lake Mead, were likely blasts from quarries in the region. AZGS seismologist Lisa Linville confirmed this in discussions with colleagues at the Nevada Seismological Lab in Reno. Despite this, has there been increased activity around the lake during the past spring and summer, as the lake filled at a record rate due to snowpack melt and releases from Lake Powell upstream? That will require more detailed analysis.

The map at right was compiled by AZGS for a review of seismicity in the Hualapai Valley but it shows historical earthquakes around Lake Mead, 1852-2011.

The Las Vegas Sun has an excellent article discussing the situation.