6/13/2008 6:00:00 AM
Copper mine ramps up production
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AARON ROYSTER/Miner An overview of the copper/molybdenum operation at Mineral Park Mine located west of Kingman. The mine is currently expanding operations with the construction of a new mill scheduled for completion in October. |
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AARON ROYSTER/Miner On Thursday, workers construct part of the future home of a new mill at Mineral Park Mine west of Kingman. |
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Aaron Royster
Miner Staff Reporter |
KINGMAN - Mike Surratt has worked in the mine industry for the last 30 years. His path started when he was recruited out of college and has now brought him to Mineral Park Mine, west of Kingman.
"I've built a lot of mines, run a lot of mines," Surratt said. "I enjoy the business."
Surratt works as the president and chief executive officer of Mercator Minerals Ltd., a position he has held since 1998.
Surratt spends two to three weeks a month at the mine. He splits his time handling other operations and functions for the company based in Reno, Nev.
The mine's history traces back to the early 1960s, when the Duval Corporation commenced production at Mineral Park as a 12,000-ton-a-day mill and concentrate operation. At the time, copper was selling for 60 cents a pound and molybdenum at $4 a pound.
From 1986, the mine saw various owners and operating capacities before being purchased by Mercator in 2003.
"We're really not doing anything different than what's been done in the past 40 years," Surratt said.
The natural resource company's primary focus is increasing the production of copper and molybdenum at Mineral Park Mine, which they own completely.
The construction has tapped local contractors and subcontractors, Surratt said. Beyond the 155 Mercator employees, there are more than 100 contractors working on the site.
Molybdenum is a grey metal, heavier than iron. Since 1945, the range of applications for molybdenum, its alloys and its compounds has expanded rapidly, a Mercator's Web site stated.
Mineral Park currently produces around 12 million pounds of cathode copper a year from the leach operation. If Mercator maintains current operation levels, the mine is estimated to have a 25-year life based on the proven and probable mineral reserves.
Staying the course isn't what the public-traded stock company is going to do. They want to increase copper production to 56 million pounds a year and molybdenum production to 10.3 pounds a year.
Through study and analysis in 2006, the mine is still expected to have a 25-year life even under the increased production, Surratt said.
During that time, approximately 1.1 billion pounds of copper, 257.5 million pounds of molybdenum and 13.7 million ounces of silver will be produced.
Right now molybdenum sells for approximately $33 a pound, while copper sells for around $5 a pound.
To make the venture worthwhile during the 25 years, Mercator would need to make at least $1.50 a pound for copper and $10 a pound for molybdenum.
"Even if the market went way down, we would still be profitable at these prices," Surratt added.
Mineral Park is currently undergoing two stages of expansion. Mercator is investing more than $200 million on the project , Surratt added.
While the mine will be fully operational in October, Mercator doesn't plan to increase capacity to a 50,000-ton-a-day milling operation until the summer of 2009. They will work out at 25,000 tons a day until then, Surratt said. The reason for the delay is the time needed to wait for the production and arrival of highly specialized equipment for the mill, which isn't made in the U.S., Surratt said.
The operations will be switching from leaching to a semi-autogenous grinding mill. The duo mills will require 3,500 horsepower each to run.
The new process will help Mercator recycle 60 percent more water than they are now.
"The general process is all the same at mills in Arizona," Surratt said.
Surratt specifically highlighted the operation at Bagdad, which is similar in production size to the final Mineral Park project.
Utilizing five wells previously onsite and five additional wells added since their purchase, Mercator taps into five to six at a time, Surratt said.
"As far as we know, there's never been significant drop-downs in the water levels," Surratt said.
They also utilize water from the Valley Pioneer Water Company.
"Our water is piped in," Surratt said. "We do everything we can to recycle it because we don't want to pump it. It's expensive to bring in."
Bringing in water isn't the only need of Mineral Park Mine. UniSource is working to provide a 230-kilovolt transmission line, which will provide power to the site and Golden Valley.
Right now the mine uses 3 MVA of electricity and will increase to 50 MVA in October.
When fully operational, there will be 250 people on a continuous basis at the site, Surratt said. The increase will require Mercator to hire 100 more people.
"A vast majority are local," Surratt said of the current employees. "We got a bunch of guys who used to work here when Duvall owned it."
Mercator will continue to seek locals they can hire and train, Surratt added. The yearly training has paid off so far, with the site not having one lost-time accident all year, he said.
Employing local workers isn't all Mercator does for the community. They sponsor softball teams and donate to local charities and non-profit organizations.
"We've done a lot in the community," Surratt said. "We like to keep quiet about it and go about our business." |
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