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This document, presented by Colin Williams, General Manager of Operations at Argyle Diamonds, provides an in-depth overview of the company's evolution from 1983 to the present. It explores the significant milestones of Argyle, including the transition from alluvial to open pit mining, production achievements, and future initiatives for underground operations. Key highlights include the substantial diamond production rates, the organization's responses to market dynamics, and strategic efforts to enhance local workforce engagement, with a focus on Aboriginal employment and regional development.
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ARGYLE DIAMONDS Past, Present and Future Colin Williams General Manager Operations December 2003
Content 1983 - 1993 1993 - 2003 2003 Overview First Decade Second Decade Future
Overview – Rio Tinto Diamonds Group • Rio Tinto - 100% Argyle, Australia • - 60% Diavik, Canada Rio Tinto Diamonds – Provides a sales and marketing service to Rio Tinto Group mines • Rio Tinto produces ~ 25% by volume of world’s diamonds
Overview - Argyle • AK1 diamond pipe discovered 1979 • Alluvial mining 1983 – 1985; 1989 – 2002 • Open pit mining 1985 – present • Produces ~ 30 Mcts pa of rough diamonds • 100% product sold direct to the market • Retain pinks to manufacture and sell as polished
Overview – Product Profile Since 1985 more than: • 600 Mt of ore and waste mined • 140 Mt of ore processed • 600 Mct of diamonds produced
The First Decade: 1983 - 1993 • Alluvials 1983 to 1985 – then recommenced 1989 • AK1 mining & processing commenced in 1985 • Successive increases in AK1 ore processed from 3.3Mtpa design up to 7Mtpa • Waste/ore strip ratio 4 to 5 • Recovered Grade – gradual reduction from ~ 9 cts/t to 6cts/t • Annual diamond production increased from 6 Mcts to 41 Mcts over 10 years
The Second Decade: 1993 - 2003 • Ore processed increased from 7Mtpa to 10Mtpa • Production ~ 40Mcts pa 1993 to 1998 • Production ~ 30Mcts pa 1999 to 2003 • 1998 - major organisational change and cost reduction exercise • Approval in 1999 for mine expansion - cut back of west wall • Tonnes mined annually increased from 32Mt to 88Mt • Life of AK1 pit increased to 2007 • 2002 Alluvial operations ceased
Argyle’s Future • Open Pit – existing LOM 2007 • Northern Bowl Open Pit expansion • Feasibility Study • Underground Operation • Feasibility Study • Exploratory Decline • East Kimberley Focus
Underground - Feasibility Study • Full feasibility Study • Exploratory Decline • A$70M Expenditure • Completed 2005 • At this time the decision will be made to either go underground or into closure mode
Underground Operation – Key Features • Combination of Block Caving, Sub-Level Caving and Open Stoping • Ore extraction 2007 • 5Mtpa ore at full production • Diamond production ~ 50% of current level • Workforce of ~ 400
Open Pit Operations Process Plant Waste Dumps Emergency Egress Exploratory Decline Exploratory Decline Section • 2.5km decline into orebody • Additional 0.6km of cuddies • 1 in 6 gradient • Decline hydroscaled & shotcreted
Exploratory Decline • Will confirm underground design criteria and operating costs • Will reduce risks of delay if underground goes ahead • Surface works - June to Dec 2003 • Main decline construction - Dec 2003 to mid 2005
East Kimberley Focus • Transitioning to local workforce • 15 % to 37% in past 3 years • Increasing Aboriginal employment • 4% to 17% in past 3 years • If underground proceeds • 80% local workforce • 40% Aboriginal • Regional Development & Capacity Building • Working with local, state and Federal Govts to enable improvements in health, education, infrastructure • Training – $5M Federal Govt grant • Local and Aboriginal business opportunities
