ask anything, page-88

robertch & jakedog

Perhaps I can explain this issue in combination. Firstly, contrary to some thoughts about Run of Mine Ore pads (ROM pads), they are not part of the absolutely necessary infrastructure of a mine. They are not a piece of necessary immoveable equipment and their location is flexible. They are, in their most perfect form, a convenience but in theory it’s nice to have them close to the Processing Facility. A ROM pad is just a storage area (like an open warehouse or lay-down area) for ore that has come out of the mine. By getting the ore out of the mine it is available for delivery to the Processing Plant and is stored temporarily on a ROM pad.

There are many examples in the industry where the ROM pad is not located in the MOST convenient location close to the crusher station. In all examples the companies decide on the basis of lowering the risk to the operation.

It doesn’t matter really where the ROM pad is located. I have worked on mines where the main ROM pad is up to 60 kilometres by road from the Processing Plant. And there are many examples of greater distances! Obviously we try to have the ROM pad as close to the Processing Plant to avoid excessive additional handling costs but in the RED case the additional costs were insignificant in comparison to the benefit of not decommissioning the larger tailings dam and leaving the mine with less than 6 months of tailings storage capacity.

robertch the decision to decommission the larger tailings dam to increase the size of the crusher-level ROM pad by about 7 days of storage capacity was made in February-March 2013, approximately 3-4 months after I left RED. The alternative was to leave the additional ROM pad storage area about 100m away adding an insignificant additional rehandling cost (if required).

I believe the situation of decommissioning a larger tailings dam when the existing smaller tailings dam has less than 6 months of capacity and building a convenient ROM pad in its place is unique in the mining industry. And it’s a good thing for the rest of the industry it is unique!

I hope this clarifies and answers your questions?

Cheers Greg
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