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Gold mine a goer

Thursday, 12th February, 2015

Broken Hill company Consolidated Mining & Civil has already finished the road to the new Portia gold mine which is scheduled to open next month. The road works included the construction of detours for wide heavy equipment around the many narrow grids and gates. Broken Hill company Consolidated Mining & Civil has already finished the road to the new Portia gold mine which is scheduled to open next month. The road works included the construction of detours for wide heavy equipment around the many narrow grids and gates.

By Craig Brealey

A new mine is about to open to the city’s north and another is on the horizon.

Within the next few weeks a camp for 50 workers will be built at the site, 120 kilometres northwest of Broken Hill, and work will get underway to establish the mine, the owners, Havilah Resources, announced yesterday.

A workshop will be constructed, the site surveyed and then water pumps, pipeline corridors and a storage dam will be built, along with an airstrip. 

Havilah Resources, which is working with Broken Hill mining contract company, Consolidated Mining & Civil Pty Ltd (CMC), said its intention was to make the new Portia open cut mine a “significant” new producer of iron ore, copper, gold, cobalt, molybdenum and tin.

The work can begin immediately because Havilah this week lodged an unconditional bank guarantee for almost $2 million for a mining rehabilitation bond with the South Australian Department for State Development (DSD). 

CMC has already finished building roads to the mine, southeast of Lake Frome and north of Kalkaroo Station, so that the site work can begin in the next few weeks. 

Havilah’s Managing Director, Dr Chris Giles, said yesterday that it would not be long before mining got underway.

“Since signing the mining agreement, CMC and Havilah have been working tirelessly to complete all the documentation required to allow commencement of mining activities,” he said. 

“At this stage CMC remains on track to commence mining and removal of overburden in mid-March, with a lot of preparatory work continuing at site by both parties in the meantime.”

Consolidated Mining and Civil is a long-established Broken Hill company which also has mining contracts with Cristal Mining and Perilya. 

“Thanks to the support of CMC we have been able to lodge a bank guarantee of $1.954 million for the rehabilitation bond to the SA government,” Dr Giles told the BDT. 

“Having lodged this we have then been able to tell the Mines Department that we plan to proceed with mining in accordance with the previously approval mining terms. 

“Had this bank guarantee not been lodged they would not have let us start mining. So this is really the key thing we had to do to actually start work on the ground.”

Dr Giles said the mine, which holds about 50 ounces of gold, would run for only about 18 months to two years, but that after Portia the company intended to begin work on the much larger Kalkaroo deposit, about 30km to the south. 

“Broken Hill will benefit directly because the mining contractor (CMC) is Broken Hill-based and will draw most of employees from the city,” he said. “plus, of course spin-offs to service and transport industries.

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