Projects & Operations - Shinas & Hatta Project  |  Deposit Geology


Shinas & Hatta Project

In 2000, NMC was granted a license by the government of Oman for the exploration of Block-1 at Hatta and Shinas in the highly prospective Sohar region in Northern Oman. After several years of extensive exploration work, NMC discovered commercial resources and in 2003 completed a detailed feasibility study through external consultants that reaffirmed the geological resources and the commercial viability of the project. NMC then decided to implement the project under a favorable world environment, taking advantage of strong commodity prices, which makes this development very attractive with low capital outlay and high returns. The commercial production is expected to commence in the second half of 2006.

The Block-1 project comprises of procurement of mining equipment, mine site development for mining operations and refurbishment of an existing concentrator at Lasail, Sohar for processing of copper ore to produce concentrate. The project also includes treatment and disposal of tailings from processing plant to a suitable site. The copper concentrate will be sold for further processing to Oman Mining Company LLC (a government owned entity) or alternatively for export to the international market. The project deposits (Hatta and Shinas) are strategically located about 50kms north from Sohar close to the main highway between Oman and UAE. The Lasail concentrator and an associated smelter and refinery complex is located about 80 kms along well-maintained sealed road from the deposits and 20kms from west of Sohar.

NMC’s initial exploration was primarily focused on easily defined outcropping deposits and based on these exploration, the reserves currently delineated in feasibility study are estimated to support 3-1/2 to 4 years of project life. However, NMC is continuing to explore further resources, as well as extend the known resources at its current developments. Recent drilling results at Hatta and Shinas deposits have shown favorable results, which, when resource modeling is complete, will result in higher reported resources and reserves.

Operations
Mining has been carried out in the Al Batinah region, to the north-east of the Arabian Peninsula, for approximately 6000 years and NMC is taking its place as the most recent participant in a long held tradition. It is estimated that the current mining activities at the Shinas-Hatta project (near the U.A.E. border to the north of Sohar) will span three to four years. But it is expected that the life of the operation will be extended for a much longer duration after additional ore-bodies are proven in nearby areas.

After successfully securing Mining Leases, the Environmental Permit and development permission from the local municipalities, coupled with the completed refurbishment of the processing plant, operations successfully commenced at the Lasail copper concentrator on 11 May 2007, with the first concentrate being produced.

To date (September 2007), the product has been sent to the Oman Mining Company (OMCO) smelter situated adjacent to the NMC processing plant and also traded overseas by ship, using the new Sohar port facility located close by. The strategic geographical positioning of Sohar (Oman’s second largest city) allows NMC easy access to overseas markets.

An experienced team of expatriate mining personnel has been drawn together from Africa, Australia, India, The Philippines and the former Soviet Union to ensure the continuing success of the project.

NMC also deeply respects the Omanisation decree of His Majesty, The Sultan and employs Omani citizens wherever possible. The company currently employs over 260 people of which a large majority are Omanis. At the concentrator and mine, the training of the Omani workforce continues with the assistance of experienced overseas operators and mining professionals.

Process Plant Metallurgy and Engineering
The copper concentrator is located about 25km inland from Sohar on the Buraimi-Abu Dhabi Road. It was designed to upgrade the mined ore, which averages around 2.8% copper, to a grade of between 22% and 24%. The ore contains a mixture of chalcopyrite (copper iron sulphide) and pyrite (iron sulphide). The purpose of the concentrator is to selectively recover the chalcopyrite, whilst leaving the pyrite and other gangue minerals behind. The main process used to achieve this result is froth flotation which relies on the chalcopyrite receiving a thin layer of chemical which will make it hydrophobic (water repellant) and able to attach to air bubbles to be recovered in the flotation cells.

Currently (September 2007), the plant has a throughput of 80 tonnes/hour and has a steadily increasing availability. Work has also commenced on the planned up-grade of the plant which will see the milling rate increased to130 tonnes/hour during 2008.

Recovery improvements are continuously being implemented that include the decision to modify the circuit and produce around 60% of the final concentrate from the first rougher flotation cells. This has allowed an increase in concentrate production rate above what the plant could previously handle.

Mining
The mines produce an ore with a grade that ranges from a monthly average of 5.6% copper to 0.7% copper, but with a predicted average of 2.86% for the life of the operation. The ore is delivered the 80km distance to the concentrator site by a local transport company, using standard road trucks.

The Hatta pit is currently (September 2007) in full capacity ore production. It is envisaged that this pit will be completed and mined out by August 2008. Pre-stripping of the Shinas Pit is currently underway. It is planned that ore production will commence in August 2008 when the upper level of the orebody is intersected. Mining of Shinas ore will continue until December 2009 when a further pit, Hatta South will take over as the main supply of ore to the plant. The completion of the workshop at the Hatta mine site is scheduled for November 2007.

The Hatta and Shinas copper deposits are essentially pocket deposits that dip steeply from about 30 meters below surface to a maximum depth of about 100 meters below surface. Hence the open pit mining method, with single access ramp system and developed with switch backs to follow the general dip of the ore bodies, was deemed optimum.