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Released October 17, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--More than $17 billion in mining project completions are scheduled in Canada from October through December this year, the majority of which are associated with oil-sands infrastructure in Alberta.
Alberta's oil sands hold the world's third-largest crude reserves, but they are also among the most expensive operations because of their remote location and energy-intensive production methods. Canada dominates North America in mining project spending. More than 77% of the total investment value (TIV) in the Metals & Minerals industry for Canada's fourth-quarter completions is associated with the first phase of one oil-sands mining project: Suncor Energy Incorporated's (NYSE:SU) (Calgary, Alberta) $13.5 billion Fort Hills Oil Sands Mine in Fort McMurray, Alberta. The two-train facility is expected to produce at least 180,000 barrels per day (BBL/d) of bitumen. For more information, see Industrial Info's project report and October 13, 2017 article - Oil Sands Growth Drives Western Canada's $34 Billion in Fourth-Quarter Kickoffs, Completions.
Other planned completions include Canadian Natural Resources Limited's (CNRL) (NYSE:CNQ) (Fort McMurray, Alberta) $1.5 billion expansion of its Fort Mackay Horizon Oil Sands Mine in Fort McMurray, Alberta, and the $1.5 billion K-3 stage 2 potash mine in Esterhazy, Saskatchewan.
The final phase (Phase 3) of the Fort Mackay Horizon expansion, which will add 80,000 BBL/d of capacity to the mine and upgrading facility, was on track for completion in the fourth quarter. Once the Horizon Phase 3 facilities are tied in, CNRL expects to increase its synthetic crude oil production to 170,000 to 184,000 BBL/d, a 44% increase from 2016. For more information, see Industrial Info's project report.
As part of a two-stage expansion of it Esterhazy potash operations, the Mosaic Potash Esterhazy Limited Partnership, a subsidiary of the Mosaic Company (NYSE:MOS) (Plymouth, Minnesota), expects to wrap up construction on a satellite, 3 million-ton-per-year (T/yr) underground mine operation and a 7-mile enclosed overland conveyor system to transport ores to its K-2 processing plant, to produce 900,000 T/yr of potash - increasing Esterhazy's total capacity to 7 million T/yr. The facility produces a variety of potash fertilizer grades for agricultural and industrial end-uses. For more information, see Industrial Info's project report.
U.S. Mining Projects
In the U.S., $433 million in project completions are scheduled in the fourth quarter. Among the largest is the $100 million grassroot open-pit mine and processing plant in Kermit, Texas, by Black Mountain Sand, a subsidiary of Black Mountain Operating LLC (Forth Worth, Texas). Privately-held Black Mountain is among at least a dozen companies racing to build fine-grade frac sand mines in the Permian Basin to supply oil and gas production operations. Those projects were announced this year as a way to provide lower-cost frac sand, which for years has been transported to the region at a premium by rail or by truck. Once completed in December, Black Mountain's Kermit Permian Basin project will be capable of producing 4 million T/yr of frac sand. For more information, see Industrial Info's project report.
Also on the books for completion is RAMACO Resources Incorporated's (NASDAQ:METC) (Lexington, Kentucky) $70 million brownfield Elk Creek coal mine restart and expansion in Emmett, West Virginia. The project is expected to be wrapped up in October. RAMACO plans to produce up to 2 million T/yr of metallurgical coal at the Elk Creek site. For more information, see Industrial Info's project report.
In the U.S. Northeast market region, the $50 million grassroot Johnstown Maple Springs underground coal mine and associated surface-support facilities are scheduled for completion this month in Hollsopple, Pennsylvania, by LCT Energy LP (Johnstown, Pennsylvania), an affiliate of Robindale Energy Services Incorporated (Latrobe, Pennsylvania). The region comprises Delaware, New Jersey, New York and Pennsylvania. LCT Energy began driving the slope for Maple Springs in late 2015, with production expected to begin in 2016, but the company halted construction temporarily last July, pending improved market conditions. Maple Springs is expected to initially produce 500,000 T/yr of bituminous coal. For more information, see Industrial Info's project report.
In addition to the Maple Springs Mine, LCT Energy has one other active deep mining operation: the Cass No. 1 Mine in Garrett, Pennsylvania. With additional mines in various stages of development and permitting, the company plans for more to come online over the next few years, including the Rustic Ridge Mine in Donegal, Pennsylvania. For more information, see Industrial Info's project report.
Mexico Mines
With a TIV of about $122 million, Mexico is home to one of the largest mining projects set to conclude in the fourth quarter: a $100 million dynamic leaching plant addition at the La Herradura Gold Mine by Servicios Administrativos Peñoles SA de CV (SAPSA) in Caborca, Sonora, a subsidiary of Industrias Penoles SAB de CV (Mexico City, Mexico). The project includes the construction of a second, 8,000 ton-per-day dynamic leaching plant to support open pit expansions and future underground mine development. Construction began last October and is expected to conclude in December. For more information, see Industrial Info's project report.
Other sizeable fourth-quarter completions in Mexico include a $39.4 million milling and pulp agglomeration circuit at the Dolores ore mine in Chihuahua, Mexico, by Compañia Minera Dolores SA de CV, a subsidiary of Pan American Silver Corporation (NASDAQ: PAAS) (Vancouver, British Columbia), to improve silver and gold recoveries. The project, which is expected to wrap up this month, also includes development of an underground mine to extract mineral resources that exist beneath, and to the south of the 16,200 ton-per-day (T/d) open mine pit. For more information, see Industrial Info's project report. Pan American is among the largest primary silver producers in the world, with mine operations in Argentina, Bolivia, Mexico and Peru. The company also has several development projects in Argentina, Mexico, Peru and the U.S.
Another large completion in Chihuahua, Mexico, on track to conclude in October, is a $25 million addition at the Palmarejo ore mine by Coeur Mexicana SA de CV, a subsidiary of Coeur Mining Incorporated (NYSE:CDE) (Chicago, Illinois) to enhance silver and gold production. Coeur expects its 2017 Palmarejo production to be 16.4 million to 18 million ounces (Moz) of silver and between 362,000 oz and 387,000 oz of gold. Coeur announced a shift from open pit to higher-margin, lower-volume underground operations at Palmarejo in 2014, and open pit and legacy underground operations ended in 2016. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Alberta's oil sands hold the world's third-largest crude reserves, but they are also among the most expensive operations because of their remote location and energy-intensive production methods. Canada dominates North America in mining project spending. More than 77% of the total investment value (TIV) in the Metals & Minerals industry for Canada's fourth-quarter completions is associated with the first phase of one oil-sands mining project: Suncor Energy Incorporated's (NYSE:SU) (Calgary, Alberta) $13.5 billion Fort Hills Oil Sands Mine in Fort McMurray, Alberta. The two-train facility is expected to produce at least 180,000 barrels per day (BBL/d) of bitumen. For more information, see Industrial Info's project report and October 13, 2017 article - Oil Sands Growth Drives Western Canada's $34 Billion in Fourth-Quarter Kickoffs, Completions.
Other planned completions include Canadian Natural Resources Limited's (CNRL) (NYSE:CNQ) (Fort McMurray, Alberta) $1.5 billion expansion of its Fort Mackay Horizon Oil Sands Mine in Fort McMurray, Alberta, and the $1.5 billion K-3 stage 2 potash mine in Esterhazy, Saskatchewan.
The final phase (Phase 3) of the Fort Mackay Horizon expansion, which will add 80,000 BBL/d of capacity to the mine and upgrading facility, was on track for completion in the fourth quarter. Once the Horizon Phase 3 facilities are tied in, CNRL expects to increase its synthetic crude oil production to 170,000 to 184,000 BBL/d, a 44% increase from 2016. For more information, see Industrial Info's project report.
As part of a two-stage expansion of it Esterhazy potash operations, the Mosaic Potash Esterhazy Limited Partnership, a subsidiary of the Mosaic Company (NYSE:MOS) (Plymouth, Minnesota), expects to wrap up construction on a satellite, 3 million-ton-per-year (T/yr) underground mine operation and a 7-mile enclosed overland conveyor system to transport ores to its K-2 processing plant, to produce 900,000 T/yr of potash - increasing Esterhazy's total capacity to 7 million T/yr. The facility produces a variety of potash fertilizer grades for agricultural and industrial end-uses. For more information, see Industrial Info's project report.
U.S. Mining Projects
In the U.S., $433 million in project completions are scheduled in the fourth quarter. Among the largest is the $100 million grassroot open-pit mine and processing plant in Kermit, Texas, by Black Mountain Sand, a subsidiary of Black Mountain Operating LLC (Forth Worth, Texas). Privately-held Black Mountain is among at least a dozen companies racing to build fine-grade frac sand mines in the Permian Basin to supply oil and gas production operations. Those projects were announced this year as a way to provide lower-cost frac sand, which for years has been transported to the region at a premium by rail or by truck. Once completed in December, Black Mountain's Kermit Permian Basin project will be capable of producing 4 million T/yr of frac sand. For more information, see Industrial Info's project report.
Also on the books for completion is RAMACO Resources Incorporated's (NASDAQ:METC) (Lexington, Kentucky) $70 million brownfield Elk Creek coal mine restart and expansion in Emmett, West Virginia. The project is expected to be wrapped up in October. RAMACO plans to produce up to 2 million T/yr of metallurgical coal at the Elk Creek site. For more information, see Industrial Info's project report.
In the U.S. Northeast market region, the $50 million grassroot Johnstown Maple Springs underground coal mine and associated surface-support facilities are scheduled for completion this month in Hollsopple, Pennsylvania, by LCT Energy LP (Johnstown, Pennsylvania), an affiliate of Robindale Energy Services Incorporated (Latrobe, Pennsylvania). The region comprises Delaware, New Jersey, New York and Pennsylvania. LCT Energy began driving the slope for Maple Springs in late 2015, with production expected to begin in 2016, but the company halted construction temporarily last July, pending improved market conditions. Maple Springs is expected to initially produce 500,000 T/yr of bituminous coal. For more information, see Industrial Info's project report.
In addition to the Maple Springs Mine, LCT Energy has one other active deep mining operation: the Cass No. 1 Mine in Garrett, Pennsylvania. With additional mines in various stages of development and permitting, the company plans for more to come online over the next few years, including the Rustic Ridge Mine in Donegal, Pennsylvania. For more information, see Industrial Info's project report.
Mexico Mines
With a TIV of about $122 million, Mexico is home to one of the largest mining projects set to conclude in the fourth quarter: a $100 million dynamic leaching plant addition at the La Herradura Gold Mine by Servicios Administrativos Peñoles SA de CV (SAPSA) in Caborca, Sonora, a subsidiary of Industrias Penoles SAB de CV (Mexico City, Mexico). The project includes the construction of a second, 8,000 ton-per-day dynamic leaching plant to support open pit expansions and future underground mine development. Construction began last October and is expected to conclude in December. For more information, see Industrial Info's project report.
Other sizeable fourth-quarter completions in Mexico include a $39.4 million milling and pulp agglomeration circuit at the Dolores ore mine in Chihuahua, Mexico, by Compañia Minera Dolores SA de CV, a subsidiary of Pan American Silver Corporation (NASDAQ: PAAS) (Vancouver, British Columbia), to improve silver and gold recoveries. The project, which is expected to wrap up this month, also includes development of an underground mine to extract mineral resources that exist beneath, and to the south of the 16,200 ton-per-day (T/d) open mine pit. For more information, see Industrial Info's project report. Pan American is among the largest primary silver producers in the world, with mine operations in Argentina, Bolivia, Mexico and Peru. The company also has several development projects in Argentina, Mexico, Peru and the U.S.
Another large completion in Chihuahua, Mexico, on track to conclude in October, is a $25 million addition at the Palmarejo ore mine by Coeur Mexicana SA de CV, a subsidiary of Coeur Mining Incorporated (NYSE:CDE) (Chicago, Illinois) to enhance silver and gold production. Coeur expects its 2017 Palmarejo production to be 16.4 million to 18 million ounces (Moz) of silver and between 362,000 oz and 387,000 oz of gold. Coeur announced a shift from open pit to higher-margin, lower-volume underground operations at Palmarejo in 2014, and open pit and legacy underground operations ended in 2016. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
