Gindalbie Metals Ltd. : Karara Project Awards Tailings Management Contract
SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE
01/09/2012| 08:01pm US/Eastern
10 January 2012
KARARA PROJECT AWARDS KEY TAILINGS MANAGEMENT CONTRACT TO BIS
15-YEAR CONTRACT ENCOMPASSES WORLD-LEADING ENVIRONMENTALLY
FRIENDLY TAILINGS MANAGEMENT TECHNOLOGY
Gindalbie Metals Limited (ASX: GBG - "Gindalbie") is pleased
to announce a key operational contract for the Karara Iron
Ore Project in Western Australia. Karara Mining Limited (KML)
has awarded a 15-year contract to leading logistics group Bis
Industries to provide a complete tailings management system
for the Project utilising world-leading technology.
The Karara Project will use world-leading technology for the
management of the dry tailings to be produced at Karara,
differentiating the tailings management system from
conventional tailings dams or evaporation ponds. The
production of dry tailings represents a significant
investment in water recycling capacity at Karara, allowing
the project to reduce its water consumption by about a one
third. This provides very significant environmental benefits
in the arid area where the project is situated.
The contract, worth approximately $23 million a year, will
involve the use of a market-leading Mobile Stacking System to
be provided by FL Smidth ("FLS") which is designed to handle
up to 18.2Mtpa of tailings, or the equivalent tailings from
the production of 10Mtpa of magnetite concentrate.
In the first instance, the system will be operated at
14.6Mtpa (8Mtpa of dry magnetite concentrate production), but
can accommodate increased throughout from the plant as part
of the planned Stage 2 expansion of the Karara Project.
The system will ultimately stack the tailings material up to
95m high (performed in three lifts) over a 20+ year
FL Smidth's Racho Mobile Stacking conveying system is the
market leading technology in this field, with more than
25 of these systems implemented throughout the world and
operating at more than 12,000tph.
Gindalbie's Managing Director, Mr Tim Netscher, said KML had
incorporated a clarification process into the overall ore
beneficiation process which allows the de-watering of
tailings to produce tailings which are dry and inert,
enabling the application of a state-of-the-art tailings
"The resulting tailings comprise a dry, inert material
composed predominantly of silica that will be stockpiled
progressively rehabilitated," Mr Netscher said.
"This tailings strategy will cement our environmental
credentials by simultaneously delivering several significant
environmental benefits, including: