Name and Location
Trident project, including the Sentinel copper mine and Enterprise nickel mine, North West province, Zambia.

Client
Kalumbila Minerals, a subsidiary of First Quantum Minerals (FQM).

FQM acquired the project in February 2010 through its acquisition of Zambia-focused explorer Kiwara for an estimated $279-million.

Project Description
The Trident project is situated about 140 km west of the town of Solwezi and 150 km from the Kansanshi copper mine, in northern Zambia. It comprises five large-scale mining licences that cover two declared resource deposits – Sentinel and Enterprise – and numerous exploration targets, including Intrepid.

The Sentinel copper mine is being commissioned and it is expected that the Enterprise nickel mine will start operations later this year or in 2016, depending on nickel market conditions. Each area is regarded as a significant mine development, with mine lives of 15 years and eight years for Sentinel and Enterprise respectively.

The Sentinel deposit has a total measured and indicated resource of 1.03-billion tonnes, grading 0.51% copper, and proven and probable reserves of 774.2-million tonnes, grading 0.50% copper. The mine will target sulphide ores that will be processed on site to produce an estimated 26% copper concentrate, which will be transported to smelters in Zambia for the extraction and refining of copper.

Sentinel’s processing facility will have a target throughput rate of 55-million tonnes a year of ore at an average grade of 0.5% copper. Higher grades are expected in the first six years of the mine life, which will provide yearly production rates ranging from between 260 000 t to 280 000 t and up to 300 000 t of copper. The plant will comprise three in-pit crushers, delivering to a crushed-ore stockpile and providing capacity of 80 000 t.

Two milling trains, each comprising a 28 MW semiautogenous (SAG) mill and a 22 MW ball mill, will produce a final grind of 80%, passing 212 µ for flotation. Four banks of rougher-scavenger flotation cells, each using seven cells of 300 m3 capacity, followed by three stages of cleaning, will provide a recovery of more than 90% for a concentrate of about 26% copper. Tailings will be thickened in thickeners of 3 m × 50 m in diameter before being discharged to the tailings storage facility.

A secondary crushing circuit will be installed to maintain the mill throughput to offset a harder ore in the deeper areas of the pit. This circuit will initially comprise two large cone crushers, with the possibility of adding further crushers at a later date. The crushers will treat a portion of the ore feeding the stockpile, crushing the top size to below 40 mm. A pebble crusher will also be installed to crush pebbles ejected from the SAG mills to below 10 mm to minimise critical size build-up in the milling circuit.

The Enterprise deposit has a total measured and indicated resource of 40.1-million tonnes, grading 1.07% nickel, and proven and probable reserves of 32.7-million tonnes, grading 1.10% nickel. The planned four-million-tonne-a-year Enterprise operation can produce 38 000 t/y of nickel on average, with scope to increase to 60 000 t/y of nickel.

Environmental approval was granted for Enterprise in September 2014 and preparatory works for future mining have started.

The Enterprise plant is under construction and concrete works are more than 95% complete. The plant can be commissioned on Sentinel copper ore, before the decision is made to proceed with commercial mining at the Enterprise pit.

The proposed 55-million-ton-a-year copper sulphide concentrator and associated plant infrastructure will consist of maintenance workshops, mining facilities, a tailings storage facility and associated administration offices.

Additional amenities required include roads, power and water supply, as well as employee housing.

Net Present Value/Internal Rate of Return
Not stated.

Value
The capital cost to develop the Sentinel and Enterprise mines is estimated at $2.1-billion, including all infrastructure development associated with the mines.

Duration
Following a two-year design, and board approval for construction in June 2012, the Sentinel mine was commissioned in June 2014, with first concentrate produced at the end of that year.

The current mine life is estimated at more than 15 years or until about 2029.

The Enterprise mine is planned to be brought on line in parallel with the Sentinel operations, depending on nickel prices, as the Enterprise plant can be commissioned on Sentinel copper ore.

Latest Developments
Dual-listed First Quantum Minerals is hopeful that its Sentinel project will ramp up to commercial production by the end of this year, owing to a stabilising electricity supply situation in Zambia.

Project ramp-up has been affected by the limited power supply available in the country, as drought conditions have affected hydropower generation.

However, the country’s generating capacity is expected to improve following the start of the rainy season in November.

In addition, about 400 MW of new power-generation capacity is expected to come on line in 2016. This includes 300 MW of thermal energy and 100 MW of hydropower.

Construction of a second power line connecting the Sentinel project to Lusaka West is complete and will be energised shortly.

“Once the second power line is connected and energised, Sentinel will be entitled to its full power requirement of 160 MW. This will allow for the mine to ramp up towards commercial-level production,” First Quantum has said.

It has added that full power of 153 MW is also being supplied to the Kansanshi mine and smelter.

First Quantum has further noted that power utility Zesco has requested the mining industry to use supplementary power for 30% of their requirements. Discussions are under way regarding the related tariffs for the supplementary power.

The company expects to maintain full production at Kansanshi and Sentinel through the buying and sharing of supplementary power.

First Quantum Minerals has reported that it has revised its precious metal stream agreement with gold-focused royalty and streaming company Franco-Nevada Corporation, in terms of which Franco-Nevada’s initial contribution of $330-million to $340-million will be paid during October.

Under the terms of the revised agreement, Franco-Nevada subsidiary Franco-Nevada Barbados Corporation (FN Barbados) will provide a $1-billion deposit against future deliveries of gold and silver from First Quantum’s flagship Cobre Panama project, in Panama.

This deposit will be funded on a pro rata basis of 1:3, with First Quantum’s 80% share of the capital costs estimated at more than $1-billion. Execution of the revised documentation is expected shortly.

The changes from the original agreement have largely addressed standardising reporting arrangements and provided a mechanism for First Quantum to use the project as collateral while maintaining the FN Barbados security.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
FQM, tel +1 416 361 6400 or email info@fqml.com.