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16 Independence Group NL
Location
Kambalda, 60km south of Kalgoorlie
FY16 Production
8,493t contained nickel
Product
High grade nickel
Resources
59,700t contained nickel @ 4.7%
nickel
1
Mining
Owner operated underground mine
Reserves
13,600t contained nickel
1
Sales
IGO has an agreement with BHPB,
whereby the ore produced is
delivered to the adjacent BHPB
Nickel Concentrator for toll
treatment and production of nickel
concentrate. This offtake agreement
expires in 2019.
BACKGROUND
The Long Operation in Kambalda, WA was
acquired from BHP Billiton Nickel West
Pty Ltd (BHPB) (formerly WMC Resources
Ltd) in September 2002. The mine was
re-commissioned in October of that year
and has been operating successfully and
safely since then.
Since the acquisition, IGO has produced
over 3.2Mt of nickel ore, containing
approximately 124,600t of nickel metal.
Over the period, exploration has seen
the discovery of the McLeay (2005) and
Moran (2008) ore bodies and historically
enabled the operation to maintain a
reserve base to support a two to three
year mine life. The current life of mine
plan supports the next 18 months.
FY16 PRODUCTION
Production for FY16 came from the
Moran, McLeay, Victor South and Long
ore bodies. Total production was 215,300t
of ore (FY15 258,600t) at an average
grade of 3.9% nickel for 8,493t of
contained nickel.
BUSINESS IMPROVEMENT
In response to low nickel prices, the Long
business plan was reviewed in late 2015
and a new business plan developed.
The new plan ensures profitability and
sustainability for the current life of mine
plan at lower nickel prices. This has been
achieved with a focus on mechanised
bulk mining techniques and a reduction
in working hours. Handheld airleg mining
was ceased in January 2016.
By February 2016, the mine workforce
was reduced to 65 personnel,
approximately half the size at the
beginning of the financial year. The
current mine workforce comprises 89%
locally employed personnel working nine
operating days per fortnight, with two
crews. Additional cost savings have been
achieved by surplus assets being made
available for inter-IGO Operations transfer,
or sale.
In order to minimise expenditure, and as
part of the revision, mine development
was reduced in FY16 resulting in 1,007m
of advance compared with 2,882m in the
FY15 year.
A high degree of focus remains on mine
induced and regional seismicity which
remains an inherent risk within the Long
Operation. Procedures to manage these
conditions are well understood by the
Long mining team and built into standard
operating procedures.
NEAR MINE EXPLORATION
Drilling that targeted potential resource
extensions at Moran South and McLeay
South were ceased in December 2015,
in line with the updated business plan
which focused on the most profitable
parts of the mine. No new resources or
reserves were developed at Moran South
or McLeay South.
OPERATIONS - LONG
1
See Resources and Reserves section
on pages 23-28 of this report
Successfully transitioned to new mine
operating plan in H2FY16
Nickel (t)
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
FY15 FY16
FY13 FY14
FY12
Payable Metal