Maximising Concentrate Revenues at the Xstrata Copper Kidd Concentrator

"In 2010, closure of the Kidd metallurgical plants along with structural changes to the historical ratios of payable metals led to a review of the operating targets at the Kidd concentrator. Previous operating data indicated that there was potential for significant revenue improvements by lowering the copper concentrate grade. An extended plant trial was carried out in 2011 to quantify the revenue impact of lowering the copper concentrate grade from 27% to 25% Cu, as well as identifying the lower practical grade limit. Analysis of plant trial results indicated that the process change increased net concentrate revenue by $2 M to $3 M per year at current metal prices. Increased revenue was primarily associated with higher silver recovery to the copper concentrate while the marginally improved copper recovery was essentially offset by increased zinc losses and concentrate treatment and freight charges.Details of the plant test work results are discussed in this paper along with the financial analysis of the revenue improvements. Key areas covered are major revenue components of the concentrate contracts, validation of revenue improvements through plant testing and sensitivity of the improvements to market and plant variables.INTRODUCTIONThe Xstrata Copper Kidd concentrator commenced operations in 1966 treating ore from the nearby Kidd volcanogenic massive sulphide deposit in Timmins, Ontario (Thompson, Amsden, & Chapman, 1978). Over the years, up to four separate grinding-flotation divisions were in operation with throughput rates peaking at 4.5 million tonnes per year of ore in the mid 1980’s (Kelebek & Francis, 1998). As the mine production decreased and grinding throughput increased operations were gradually cut back and since 1998 two grinding-flotation divisions have been in operation treating Kidd mine ore. One of the idled divisions has been intermittently used for custom milling operations, most recently the Ni/Cu Montcalm deposit, which was milled from 2004 to 2009. Current budget throughput rates, limited by mine production, are 2.4 million tonnes per year of ore grading 1.7% Cu, 4.3% Zn and 55 g/mt Ag. Concentrate production rates are 150,000 tonnes per year of copper concentrate and 155,000 tonnes per year of zinc concentrate. The Kidd mine is the deepest base metal mine in the world with mining operations down to 9600 ft.In 2010 the copper and zinc plants at the Kidd metallurgical site, which previously treated the concentrate production from the Kidd concentrator, ceased operation due to a variety of economic and market factors. Following the metallurgical plant closures the Kidd concentrator products were shipped off site for treatment. The majority of the copper concentrate is now processed at the Xstrata Copper Horne smelter in Rouyn-Noranda, Quebec with the majority of the zinc concentrate processed at Canadian Electrolytic Zinc Ltd. in Valleyfield, Quebec."