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| Quenton Johnston |
Economic behemoth churning away near Kershaw
By Mandy Catoe, February 26, 2017
The first impression you get touring the Haile Gold Mine site is how immense everything seems.
It covers 5,700 acres, or 8.5 square miles. That’s 30 percent bigger than the city of Lancaster. It has 19-foot-tall dump trucks that cost $2.5 million apiece. One tire can cost $40,000.
The main pit is 700 feet deep. Workers can extract, crush and process 65,000 tons of rock per day. For every 20 tons of rock, they will produce one precious ounce of gold.
OceanaGold officials opened the Haile Gold Mine gates last week to two dozen visitors, mostly public officials.
Five white, heavy-duty Ford pickups with crew cabs were followed by a 12-passenger van through a web of bumpy roads. The sightseers twisted and turned, taking in the expansive industrial complex.
The tourists included County Council members Steve Harper and Jack Estridge, County Administrator Steve Willis, Kershaw Town Administrator Mitch Lucas, Kershaw town council members, S.C. Rep. Mandy Powers Norrell, S.C. Sens. Vincent Sheheen and Greg Gregory and S.C. Rural Infrastructure Authority representatives.
The mine poured its first bar of gold a little over a month ago and is planning on full production beginning by summer.
Process Manager Quenton Johnston welcomed the guests and delivered opening remarks in his native Australian accent.
“In 366 days, we have gone from a concrete pad to an operating plant,” Johnston said.
Estridge, whose district includes the gold mine, was excited about the startup.
“It’s really more than I imagined it would be,” Estridge said. “I think we will soon see some real economic changes in this area.”
Norrell noticed a positive economic impact on her drive to the gold mine.
“Before I got there, I stopped at a nearby gas station and asked how they were doing,” she said. “They told me they have been very, very busy because of the mine.”
Norrell called it a very encouraging sign that the mine is already bringing economic prosperity to the area. She said she has several friends from her youth who found jobs at the mine after their previous employers left town.
“These are very hopeful signs that things are looking up,” Norrell said. “It’s a very exciting time economically for the area.”
Economic impact
Bumpy roads filled with giant earth-moving equipment and excited chatter from walkie-talkies make clear that modern prospecting is under way in the nearly 200-year-old mine discovered by Benjamin Haile in 1827.
In the late 1800s, the mine was the most productive and profitable east of the Mississippi River. It’s now gearing up to be one of the most productive mines on the East Coast.
OceanaGold has invested $660 million in the Haile Gold Mine project, with $380 million in capital costs to build the modern facility. It is also spending $3 million each month in the local economy for goods and services.
Individual spending by the company’s employees puts $70 million a year into the local economy, according to the company.
OceanaGold expects to produce 150,000 to 170,000 ounces of gold in 2017 at costs between $500 and $550 an ounce. Gold was trading Friday at $1,257 an ounce on the commodities market.
Bumpy roads filled with giant earth-moving equipment and excited chatter from walkie-talkies make clear that modern prospecting is under way in the nearly 200-year-old mine discovered by Benjamin Haile in 1827.
In the late 1800s, the mine was the most productive and profitable east of the Mississippi River. It’s now gearing up to be one of the most productive mines on the East Coast.
OceanaGold has invested $660 million in the Haile Gold Mine project, with $380 million in capital costs to build the modern facility. It is also spending $3 million each month in the local economy for goods and services.
Individual spending by the company’s employees puts $70 million a year into the local economy, according to the company.
OceanaGold expects to produce 150,000 to 170,000 ounces of gold in 2017 at costs between $500 and $550 an ounce. Gold was trading Friday at $1,257 an ounce on the commodities market.
Blasting daily
Dirt roads snake through the huge site, connecting the mine pits, processing facility, water treatment plants, storage ponds, power facility and an office building under construction.
The visitors’ caravan stopped at three wooden viewing platforms overlooking the tailings storage facility, processing plant, and the active mine pit.
“We are blasting now once a day,” said Jeff Jackson, security superintendent and van driver. “We can’t hear it in our office, which is about a mile an a half from the blasting site.”
The first stop was the tailings storage facility, a 324-acre lake that will be expanded to 500 acres in the next three years. A hard, seamless plastic liner about an eighth of an inch thick lies beneath the water containing slurry, the byproduct of ore processing.
The water is recycled and pumped back to the processing plant through huge black pipes running parallel to the dirt roads. When mining is completed, another liner will sandwich over the top layer of sand and remain “in perpetuity.” The permitting agreement binds the company to that.
The dam holding back the tailings-storage water is built to withstand a category 5 hurricane or a 7.2-magnitude earthquake.
Dirt roads snake through the huge site, connecting the mine pits, processing facility, water treatment plants, storage ponds, power facility and an office building under construction.
The visitors’ caravan stopped at three wooden viewing platforms overlooking the tailings storage facility, processing plant, and the active mine pit.
“We are blasting now once a day,” said Jeff Jackson, security superintendent and van driver. “We can’t hear it in our office, which is about a mile an a half from the blasting site.”
The first stop was the tailings storage facility, a 324-acre lake that will be expanded to 500 acres in the next three years. A hard, seamless plastic liner about an eighth of an inch thick lies beneath the water containing slurry, the byproduct of ore processing.
The water is recycled and pumped back to the processing plant through huge black pipes running parallel to the dirt roads. When mining is completed, another liner will sandwich over the top layer of sand and remain “in perpetuity.” The permitting agreement binds the company to that.
The dam holding back the tailings-storage water is built to withstand a category 5 hurricane or a 7.2-magnitude earthquake.
Processing plant
Next stop was the processing plant.
“This is where the money hits the ground,” Johnston said.
A front-end loader was feeding huge rocks into a 45-ton bin which were then fed through a succession of crushers linked by conveyor belts.
The rocks are ground down to smaller and smaller particles until they become powder, as fine as flour. A special oil causes the gold to separate from the powder. The gold then goes to large grey tanks filled with cyanide, where it is separated, washed and made ready to pour into bars.
“One 600-ounce bar each day is poured,” Johnston said. “That’s about 50 pounds.”
The third stop was at the Millzone mining pit, which has a depth of about 700 feet. Five concentric levels descend like giant steps to the expansive base. Shades of grey, purple and brown bleed into the clay-colored walls, which resemble the canyons of the American West. Wide roads allow huge equipment to travel safely to and from the bottom of the pit.
From the viewing platform, the cavernous clay hole looks like a miniature world. Huge trucks appear to be matchbox toys, and the men look like busy ants in excavators, loaders, bulldozers and dump trucks.
Three drills are making holes, ranging from 4 to almost 7 inches wide, where explosives will be placed. The tap-tap-tap of the drills can barely be heard from the distance.
The Millzone pit was mined by Piedmont Mining in the1980s and ‘90s. In 12 years, the company found 87,000 ounces of gold. Haile Gold Mine will produce that much in about six months.
Next stop was the processing plant.
“This is where the money hits the ground,” Johnston said.
A front-end loader was feeding huge rocks into a 45-ton bin which were then fed through a succession of crushers linked by conveyor belts.
The rocks are ground down to smaller and smaller particles until they become powder, as fine as flour. A special oil causes the gold to separate from the powder. The gold then goes to large grey tanks filled with cyanide, where it is separated, washed and made ready to pour into bars.
“One 600-ounce bar each day is poured,” Johnston said. “That’s about 50 pounds.”
The third stop was at the Millzone mining pit, which has a depth of about 700 feet. Five concentric levels descend like giant steps to the expansive base. Shades of grey, purple and brown bleed into the clay-colored walls, which resemble the canyons of the American West. Wide roads allow huge equipment to travel safely to and from the bottom of the pit.
From the viewing platform, the cavernous clay hole looks like a miniature world. Huge trucks appear to be matchbox toys, and the men look like busy ants in excavators, loaders, bulldozers and dump trucks.
Three drills are making holes, ranging from 4 to almost 7 inches wide, where explosives will be placed. The tap-tap-tap of the drills can barely be heard from the distance.
The Millzone pit was mined by Piedmont Mining in the1980s and ‘90s. In 12 years, the company found 87,000 ounces of gold. Haile Gold Mine will produce that much in about six months.
17 million tons
Since April 2015, 17 million tons of rock have been removed from the Millzone Pit.
A million tons have been taken out just since December. Mining is nearing completion here. The next mining pit, Snake, is being developed. Its exposed surface can be seen on the distant horizon.
Twelve 100-ton trucks and three 150-ton trucks hauled rocks and ore from the pit. The giant dump trucks with an overall height of 19 feet have attached ladders for operators to climb into the cab.
Mine employee Chris Baldwin broke down the cost of the mammoth machines. The trucks cost $2.5 million, and one tire costs about $15,000. The giant loaders have tires that cost about $40,000 each. The bull dozers moving dirt around run about $1 million apiece.
“These guys are moving about 65,000 tons a day,” Baldwin said. “It takes 20 tons of rock to produce an ounce of gold.”
The earth is drilled like a pin cushion to find ore. The results are entered into a computer, which then predicts the location of the gold. Those high-yielding pockets are then carefully mined.
Since April 2015, 17 million tons of rock have been removed from the Millzone Pit.
A million tons have been taken out just since December. Mining is nearing completion here. The next mining pit, Snake, is being developed. Its exposed surface can be seen on the distant horizon.
Twelve 100-ton trucks and three 150-ton trucks hauled rocks and ore from the pit. The giant dump trucks with an overall height of 19 feet have attached ladders for operators to climb into the cab.
Mine employee Chris Baldwin broke down the cost of the mammoth machines. The trucks cost $2.5 million, and one tire costs about $15,000. The giant loaders have tires that cost about $40,000 each. The bull dozers moving dirt around run about $1 million apiece.
“These guys are moving about 65,000 tons a day,” Baldwin said. “It takes 20 tons of rock to produce an ounce of gold.”
The earth is drilled like a pin cushion to find ore. The results are entered into a computer, which then predicts the location of the gold. Those high-yielding pockets are then carefully mined.
600 workers
Currently, nearly 600 workers are on site, including 200 contractors. The company website says nearly 90 percent are local residents. More than 300 are full time OceanaGold employees.
Last fall, employment spiked with 1,400 workers preparing the mine for production. The website, Hailegoldmine.com, is filled with information and includes a link to apply for employment.
The mine is expected to be in operation for 13 years and produce 2 million ounces of gold. It will continue operation if new reserves are discovered.
General Manager David Thomas was unable to tour with the visitors, but said he is very proud of the team that made the first gold pour possible.
“We will endeavor to ensure the Haile project remains a showcase for the community and the state,” he said.
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| David Thomas |
Last fall, employment spiked with 1,400 workers preparing the mine for production. The website, Hailegoldmine.com, is filled with information and includes a link to apply for employment.
The mine is expected to be in operation for 13 years and produce 2 million ounces of gold. It will continue operation if new reserves are discovered.
General Manager David Thomas was unable to tour with the visitors, but said he is very proud of the team that made the first gold pour possible.
“We will endeavor to ensure the Haile project remains a showcase for the community and the state,” he said.
Follow Reporter Mandy Catoe on Twitter @MandyCatoeTLN or contact her at (803) 283-1152.
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