Xstrata's open-cut copper gold mine, Ernest Henry, is a finalist in the 5th Annual Australian Mining Prospect Awards.
The mine developed a bold underground mining plan and, in doing so, greatly increased the life expectancy of the mine.
In 2010, all open-cut mining was scheduled to stop as further mine expansion to follow the ore body was uneconomic.
However in 2005, with extremely high copper prices in mind, mine owner Xstrata started evaluating a plan to follow the copper ore body through an underground mine.
Since this time, Xstrata has spent $26 million to cut a decline and conduct a feasibility study. Once the feasibility study is officially completed, an underground operation will begin in earnest by 2010 and add another 10 to 12 years to the mine's life.
Going underground makes sense because the ore slopes away more than 400 m below the final stage of the open pit. The underground mine is expected to produce 75,000 tonnes of copper in concentrate in 2011 - 2012.
The decline will work its way down to the last block of ore that would have been mined through open cut techniques anyway.
Initial decline development of 3.2 km will provide the mine with geotechnical data vital to the feasibility study. It will also give the mine an initial profitable underground operation.
The mine has also been selected as a finalist for its unwavering commitment to various community partnership programs.
The mine recently launched an Indigenous employment and training program.
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