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Introduction to Ban Houayxai Gold-Silver Operation

The Ban Houayxai Gold-Silver Operation is located approximately 25 kilometres west of PanAust’s Phu Kham Copper-Gold Operation.

Commencing production in 2012, Ban Houayxai comprises an open-pit mine feeding ore to a conventional four million tonne carbon-in-leach recovery process plant.

Ban Houayxai was designed in accordance with the International Cyanide Management Code (the Code) – a voluntary program for the responsible manufacture, transport, use and disposal of cyanide in the production of gold. The Operation received pre-operational certification in 2012, operational certification in 2013, and was recertified in 2019.

Mining

The Mining Department at Ban Houayxai is responsible for delivering high-quality ore feed to the processing plant. The department delivers business safety, as well as production and costs within budget at as low a mining unit cost as possible.

The Ban Houayxai Mining department ensures maximisation of the company’s resources, with an additional focus on the life of mine extension through continued mineral resource development. The department operates all of the functions involved in the open pit mining process. Beginning from the start of Life of Mine work, to finding and increasing the ore resource, designing suitable pits and dumps (to deliver high standard work areas), scheduling mining directions to ensure the delivery of maximum value. The Ban Houayxai Mining department contains four primary work areas: Mine Technical services; Drill and Blast; Mine Geology; and Mine Operation. 

Drill and Blast: The Drill and Blast for open pit mining is part of the mining cycle to assist with loading materials, and more specifically on ore control and final pit wall control blasting techniques. The responsibility of the Drill and Blast team ensure advance blast broken stock for both ore and waste, and are responsible for the Blast master design and Blast hole design, special Blast design at the final pit wall control, support the TSF construction earthwork blasting, as well as supporting the blasting requirements at Ban Houayxai Extension mine development. 

Mine Geology: The Mine Geology team are responsible for two main focus areas supporting the open pit mining department.  

  1. the team is responsible for ore control starting from reviewing ore resources to converting to an ore reserve model, completing the grade control drilling, and modelling to assist the mine planning team to ensure the delivery of high-quality ore feed to the processing plant.  
  2. the team continue to extend the ore reserves and the life of the mine with a series of drill programs around pit sites to locate additional ore reserves. 

Mine Operation: The Mine Operation team are responsible for the open pit load and to haul ore out of the mine pad, then stockpile and remove waste to the waste rock dump storage. The construction waste rock dump facility adheres to Australian standards and is designed to manage the complete waste management requirements as per the mine closure agreement. The team is also responsible for managing surface and underground water from the active mining areas and to ensure water treatment is at the agreed compliance level before discharge. The key priority of the mine operation team is to safely deliver high-quality ore to the processing plant. The annual movement capacity is a key physical metric for the Mine operation section.  

The Ban Houayxai loading capacity is scheduled at 22.7 Mtpa in 2024, ramping up to 23.5Mtpa from 2025 with a significant increase from current benchmarking movement capacity as around 17.5Mtpa in 2023. The current loading capacity of the primary loading fleet is achieved using two Komatsu PC1250 excavators and two XCMG XE1250 excavators to load 16 Caterpillar 777D dump trucks.  

The Ban Houayxai Mining Department is also responsible for continually removing materials from the pit and ensuring the delivery of high-quality ore to the processing plant.

Processing

The Process Department at Ban Houayxai processes gold-silver ores from the open pit, producing gold-silver bullion.

Ores are crushed by a jaw crusher and then ground in a circuit comprising one SAG mill and one ball mill, further reducing the material. The ground ores undergo cyanide leaching in a Carbon-In-Leach (CIL) circuit to dissolve gold and silver, which are then absorbed by activated carbon. The carbon is stripped of the metals in a stripping circuit, and the resulting sludge is filtered, dried, and smelted into gold and silver bullion. The bullion is sold to a refinery. Tailings from the leaching circuit are detoxified to remove cyanide before storage at the TSF facility. In 2023, the BHX operation processed 5,291,370 tonnes of ores, producing 67,502 oz of gold and 434,474 oz of silver. BHX also operates an assay lab and a metallurgical test lab to support geology, mining and milling operations.

Fixed Plant Maintenance

The Fixed Plant Maintenance Department at Ban Houayxai is responsible for maintaining the process plant machinery to ensure the reliability and safety of the equipment at all times.

There are multiple Fixed Plant Maintenance specialised teams who carry out proactive prognostic maintenance therefore minimising unnecessary expenditure; manage the existing assets and support future growth projects; monitor equipment operating capability; and plan for scheduled shutdowns to carry out extensive maintenance to ensure maximum operational ability.  

The fixed plant equipment is required to perform to a very high operating timeframe and needs to support constant, reliable productivity. Since the BHX operation began primary crushing and grinding, the circuits have been operational for 96% of the time. The average maintenance cost since the operation’s inception is approximately US$1-US$1.5 per tonne of metal produced. 

The department consists of several sections designated to manage effective maintenance across the fixed plant remit. These are: 

 

Fixed Plant Maintenance – Execution Team 

The Execution Team are responsible for the daily troubleshooting, repairing and replacing for process plant mechanical and electrical issues including the primary crushing circuit through the grinding circuit, Floatation process, Carbon In Leach (CIL), and other downstream circuits, including power supply (that comes from Electricite du Laos’ power grid). The predominantly Lao workforce are involved in skills development to enable a future fully Lao workforce.

The specialised sections in the Execution Team include: 

  •       Mechanical Fitters. 
  •       Cranes and Riggers. 
  •       Lubrication and Corrosion Protectors. 
  •       Electrical and Instrumentation Technicians. 
  •       Radio and Communications Technicians. 
  •       Trades Training.  

 

Fixed Plant Maintenance – Asset Management Team 

The Asset Management Team are responsible for medium- and long-term asset repairs and replacement programmes. These include the continuing maintenance, like-for-like replacement or any upgrading of assets in order to deliver improved asset performance as well as supporting future growth projects.

The specialised sections in the Asset Management Team include: 

  •       Subject Matter Experts (SME) – Mechanical Engineering. 
  •       Subject Matter Experts (SME) – Electrical Engineering. 

 

Fixed Plant Maintenance – Reliability and Condition Monitoring Team 

The Reliability and Condition Monitoring Team are responsible for the daily equipment failure Root Cause Analysis (RCA) investigations in order to address and apply corrective action procedures to prevent recurrences or repeat failures of the plant’s performance, including applying condition monitoring technology to monitor the equipment’s operating capability, wear and tear inspection including Non-Destructive Testing (NDT), Magnetic Particle Testing (MPT), vibration, acoustic and thermal. These early detection systems help to negate equipment failure signs and contribute to the application of appropriate corrective action in a timely manner to prevent major issues that could create costly stoppages.

The specialised sections in the Reliability and Condition Monitoring Team include: 

  • Certified Mechanical Engineering with trained ISO Standard of Reliability Center Maintenance Non-Destructive Testing (NDT), Magnetic Particle Testing (MPT), Etc. 
  • Certified Electrical Engineering with trained ISO Standard of Reliability Center Maintenance Non-Destructive Testing (NDT), Magnetic Particle Testing (MPT), Etc. 

 

 Fixed Plant Maintenance – Planning Team 

The Planning Team are responsible for reviewing and implementing effective planning and scheduling of maintenance activities for short-, medium- and long-term planning by consolidating information from all of the maintenance sections. This data comes from inspection reports, daily issue reporting and equipment wear prediction updates. This raw information is developed into a master schedule, reviewed by working groups, agreed with stakeholders before being rolled out to complete all maintenance repairs and replacement activities in the most efficient method. The specialised sections in the Planning Team include: 

  • Certified and Skilled in Computerized Maintenance Management System (CMMS)/ Systems Applications and Products (SAP) Systems. 
  • Certified and Skilled in Maintenance Planning Principles. 
  • Certified and Skilled in Maintenance Engineering (Electrical and Mechanical). 

 

The Fixed Plant Maintenance team have won the following awards: 

  • Fixed Plant Maintenance team of the year in 2014. 
  • Sustainability Team of the year in 2015. 
  • Chevron Best in Class Audit 2019, 2023 (Lubrication Contamination Controls). 

At the beginning of 2024, the department’s workforce totalled 255 (at both PKM and BHX Fixed Plants), comprised of 93% Lao and 7% expat.

Mobile Maintenance

The Mobile Maintenance Department is accountable for managing and delivering a cost-effective maintenance solution for all PBM heavy mining and light vehicle fleets, ancillary fleets, pit dewatering and mobile crushing assets at the Ban Houayxai Gold-Silver (BHX) Operation, with the objective of meeting or exceeding reliability/availability targets in the safest possible manner.

The Mobile Maintenance (MM) Department also incorporates the PKM and BHX heavy and light maintenance workshops, PCR & component rebuild facility at PKM, and fleet service units.  The department is also accountable for ensuring the effective and efficient management of personnel, equipment, and infrastructure.  

PBM MM has onsite support from its major OEM’s, with Caterpillar, Komatsu, Epiroc and XCMG contractors onsite to support their product with technical issues, in house training and parts supply. 

 

Caterpillar Contamination Control Awards: 

  •       BHX has maintained 5 Star CC rating for 10 consecutive years 

No other Mining house has this many 5 Star facilities in the world.

Tailings Storage Facility

The Tailings Management Department at Ban Houayxai manage the Tailings Storage Facility (TSF), a large structure used for safely storing waste by-product (tailings) material from the processing plant.

The Ban Houayxai (BHX) Tailings Storage Facility (TSF) is located in the province of Xaysomboun, approximately 110 km north of the capital of Vientiane in Laos PDR.  It consists of a 91 m high earth/rockfill cross-valley main embankment and a 39 m high saddle dam, both constructed using the downstream method.

The TSF embankment (and saddle dam embankment) has been designed as multi-zoned earth/rock fill dam structures, which include an upstream low-permeability core (Zone A) to reduce seepage through the embankment, inclined filters (Zone F1) and chimney drains (Zone F2) constructed downstream of the low permeability zone. Zone F1 and F2 capture any seepage through the low permeability zone and promote drainage of the embankment. The embankment then has downstream structural fill (Zone C) to provide structural support to the filter and the low-permeability zone. The initial construction began in 2010 and the facility has been raised almost annually in line with mine production. Construction generally occurs between October and May each during the dry season in Laos.

A summary of key characteristics for the BHX TSF is presented in the table below:

The BHX TSF Expansion Stage 2 construction has been completed to an elevation of 608.8 mRL. It is currently being constructed to the Expansion Stage 3 design, the current Life of Mine (LoM), to an elevation of 616.6 mRL. The existing embankments have been designed to meet closure criteria. There are also conceptual designs to raise the embankment further if the LoM is increased.

The TSF water management consists of an excavated rock channel with a small concrete weir, to the west of the embankment and saddle dam. It is designed to pass the probable maximum precipitation (PMP) event into channel downstream of the saddle dam, which flows to the sediment pond. Pumps and siphons are used to discharge water through the spillway during the dry season to lower the TSF pond level. There is no return water system at the BHX TSF.

Community

The Community Department at Ban Houayxai are responsible for ensuring positive relations with our local communities. We are committed to continuous constructive engagement based on respect, mutual understanding and trust.

In Particular, the Community teams promotes: 

Culturally appropriate behaviour and interactions between company and local people. 

Proactive engagement with local communities through regular dialogue, consultations, and public disclosure. 

Effective environmental and social controls on land clearance carried out by PBM. 

Fair, transparent, and consistent methodologies for land acquisition, resettlement, relocation, and compensation. 

Prompt resolution of community grievances, complaints, and concerns. 

Careful management of cultural heritage and archaeological sites. 

Gender equity in all aspects of work. 

Evidence-based social impact monitoring. 

Respect for local cultures. 

All PBM employees and contractors are required to contribute to sustainability objectives of the Company and are expected to respect the laws and customs of Lao PDR and the local communities with which they interact.  

Engagement, consultation, and disclosure. 

PBM is committed to purposeful and structured community engagement, consultation, and disclosure of information through formal and informal processes and mechanisms. 

 

The objectives of Community Engagement and Consultation are to: 

Actively seek community feedback regarding mine activities, environmental performance, and community relations to improve decision making. 

Ensure that community members understand mine activities, are fully informed of potential positive and negative impacts, and of planned mitigation measures. 

Build and maintain trust and understanding. 

Community Officers act as a conduit for sharing information about the company’s activities to local people and understanding any community concerns or grievances. Our team’s Ensure that consultations involve a cross-section of local residents (i.e. different ethnicities, a range of ages, gender balance, etc.) to ensure the opinions and concerns of all affected demographic groups are considered. 

PBM participates in local community cultural and social events, ensuring a suitable level of representation.

Environment

The Environment Department’s function at Ban Houayxai is to provide support to mining and other operational departments by ensuring compliance with approvals and ongoing monitoring, while implementing the company’s rigorous environmental management plans.

The Environment department is made up of 40 employees, working in teams. These teams work across multiple initiatives. They are responsible for securing Government approvals for growth projects. Undertaking progressive mine rehabilitation. Advising and supporting tailings management projects. Advising and supporting with regard to water management programs. Advising and supporting in regard to Acid Rock Drainage (ARD) management. Environmental monitoring and data reviewing. Environmental inspections and auditing, and implementing the Environmental Management System for continual improvement. 

The teams use a variety of technology and bespoke software including the use of drones and other spatial data collection tools for rehabilitation planning. Various software systems for data management and monitoring and the use of hydroseeders to assist in multiple rehabilitation programs. 

The department also plays an active part in the ‘Fit in Mining Process’ which provides operational support for the mining department (and other operational departments) in the form of advice, review of mine plans, rehabilitation, monitoring and also communication (where compliance issues are noted) with the relevant Ministries of the Government of Laos.

Site Services

The Site Service Department is responsible for providing and maintaining suitable housing, catering and entertainment facilities for Phu Bia Mining employees, visitors and contractors while they are working or visiting the Ban Houayxai operating site.

The multiple Site Services teams are comprised of approximately 200 staff. They are responsible for producing more than 6000 meals per day, mobilising a 2000-bed employee camp to internationally recognised standards. Our facilities include 24-hour food service, a daily laundry service and room cleaning, a professional gym, two football pitches, a host of other outdoor sport courts and two 500 seat bars. 

Site services also plays an important role in supporting the sport club and multiple social club activities, to create a fun and entertaining environment for employees after their working hours. 

Working at a remote site creates a unique set of challenges, from food delivery to site, especially in the wet season when local roads are affected, to ensuring camp accommodation, especially for our growing number of female employees due to the company growth and the business’ active employment of female workers.  

As site service we focus on food safety and hygiene, as well as an improvement cost saving initiative, we are delighted to have won the PBM Cost Performance Award.

Risk

The Risk Department supports all operational and departments, projects and activities for Ban Houayxai and includes a variety of teams: Safety; Loss Prevention – Security; Fire and Emergency Services (FES); Medical; Occupational Health and Hygiene; High Risk Work Training: and HSE Training and Inductions.

With a team of more than 300 people, the Risk teams provide round-the-clock support to the mining and processing operations, internal projects, business growth projects, remote exploration, mine development and logistics operations.  

The Risk Department assist with maintaining relations with local security forces and work with the Lao People’s Army (LPA) to ensure our people and assets are safe and secure. 

We establish, maintain and review the health and safety management system, induction and training services for employees, contractors and visitors, emergency response capability for both surface and underground mining and medical and health support for work and non-work-related illness and injuries as well as provide support for near mine community incidents and health programs. 

The Risk Department is a diverse team with approximately 20% female representation and representation from the various Lao ethnic groups working together to achieve the required operational outcomes for a safe work environment. The Department has fewer than 3% expatriate personnel, whose roles are to develop the skills and capabilities of the Lao workforce. 

The FES teams are trained in both surface and underground fire and rescue with a number of emergency vehicles and trucks fully equipped to attend any emergency. There are fire and rescue training facilities established at both PKM and BHX to ensure the FES personnel skills are maintained, particularly in firefighting. 

Our Medical team is led by a Chief Medical Officer and consists of a fully equipment clinic and ambulances at both PKM and BHX manned by teams of Doctors and Paramedics. There is smaller fully staffed clinic at Ban Thoay supporting the logistics team, including FES members. The Medical team maintain their skills with ongoing continuous training and ensuring all equipment is fit for purpose and on standby – ready to use at all times. 

The Safety teams at BHX and PKM conduct workplace inspections, monitoring compliance with safety standards, provide awareness and information for prestart and toolbox talks, assist with incident investigations and provide support to line supervision in monitoring high risk work activities and contractor audits. 

Loss Prevention maintain control of access and egress to our sites, monitor our network of CCTV systems and work with the LPA to provide a physical presence to protect our people, assets and exploration and development areas within the MEPA. Surveillance technology is being utilised to cover large areas, including drones, which will enable better use of resources and time. The team is also key to maintaining a working relationship with local security and law enforcement agencies. 

The High Risk Work training team provide training and assessment course for PBM personnel who require specialist skills for their jobs. Training and assessment is conducted to Australian Standards for national competency. The training includes a range of cranes up to 250T, working at height, scaffolding, forklifts and other high risk specialised equipment. The team also conduct Verification of Competence for contractors who will operate or undertake any high risk work operations on site, prior to commencing that work. 

The HSE Training team provides the mandatory training and induction courses for all employees and contractors who will work on site. Additional induction and training is provided for those who will work underground. Mandatory training includes PanAust Way, Cardinal Rules, hazard identification, Take 5 (or Take 5 Underground), JSA, mining induction and Underground Induction. Dedicated training facilities are available at both PKM and BHX sites for HSE Training and HRW Training. The training teams are working to move to be able to provide inductions on-line and also on-line training and assessment for a number of courses.

Around the Operation

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