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Introduction to Phu Kham Copper-Gold Operation

Phu Bia Mining’s Phu Kham Copper-Gold Operation is PanAust’s flagship operation. The Operation is located within PanAust’s Phu Bia Mining Contract Area in Laos approximately 140 kilometres north of Laos’ capital city, Vientiane.

Mining of ore and waste is undertaken by our Lao workforce using conventional Drill, Blast, Shovel and Truck mining practices from the open pits.  The ore is then trucked to a primary crusher and then processed through a conventional flotation process plant.  The process plant comprises a semi-autogenous grinding (SAG) mill and ball mill grinding circuit, with copper and precious metal recovery by flotation.  The copper and precious metal concentrate is produced and trucked in covered containers to the port of Sriracha Harbour in southern Thailand (approximately 1,000 kilometres from Phu Kham) for export to smelters, mainly in China.  The operation prides itself on its achievement for the people, community and environment, delivering world-class outcomes.

Mining

The Mining Department is responsible for the safe and efficient extraction of copper and gold ore from the Phu Kham open pit.

Phu Kham Mining Operations primary objective is to enhance productivity and utilisation of personnel and mining fleet to increase the economic value of the ore body. The Mining Operation achieves this objective through continuous monitoring and tracking of quality and cost performance while constantly improving work practices and use of technology to enhance Shareholder value.

The PKM mining Department is comprised of the following specialisations:

Safety: Implementing and applying the industry’s best safety standards and procedures to protect workers and the environment. For example, PKM uses the latest technology to monitor operator fatigue.

Planning and scheduling: Determining the sequence and location of blasting, excavation, and ore transportation using planning software and a state-of-the-art fleet management system.

Production: Overseeing mining equipment operation, ensuring quality control, and meeting production targets. We use technology to track ore movement during blasting to achieve high ore recovery extraction.

Environmental management: Minimising the environmental impact of mining activities. Phu Kham has received various awards for its environmental performance initiatives.

 

Phu Bia Mining utilises various technologies in the mining process, including:

Drill rigs: Used to explore the ore body and collect geological data.

Blast optimisation software: Optimises blast designs to minimise waste and maximise ore recovery.

GPS and surveying equipment: Used for accurately positioning and monitoring mining activities.

Heavy machinery: Including excavators, loaders, haul trucks, and dozers for excavation, loading, and transporting ore.

Computerised mine management systems: Track production, analyse data, and optimise operations.

 

PKM Mining Operations faces various challenges, including:

Safety: Ensuring the safety of workers in a hazardous environment.

Environmental impact: Minimising the environmental impact of mining activities.

Community relations: Maintaining positive relationships with local communities.

Fluctuating commodity prices: Managing the business in a volatile market.

Geological complexity: Dealing with complex geological conditions and depletion of mineral resources.

Processing

The Process Department operates a modern milling facility at Phu Kham. These facility takes the copper-gold ores brought from the open mine operation, and through multiple methods, produces a copper concentrate with gold credit.

The process begins with a gyratory crusher that reduces the ore size. This PKM Copper-Gold Milling Operation currently reduced material is fed into a grinding circuit comprising one semi-autogenous grinding (SAG) mill and two ball mills, further reducing the material. The ground ores are sent to flotation circuits to recover copper and gold into a saleable concentrate. This concentrate is sent to a thickener and then to filter presses to remove water before transport. The tailings from the flotation operation are stored at the Tailing Storage Facility (TSF).  

In 2023, PKM produced 217,851 tonnes of concentrate containing 50,120 tonnes of copper and 44,878 oz of gold. Additionally, PKM operates a state-of-the-art assay lab and a metallurgical test lab to support geology, mining, and milling operations at PKM and BHX.

Fixed Plant Maintenance

The Fixed Plant Maintenance Department is responsible for maintaining the process plant machinery at Phu Kham 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 PKM operation began in 2008 Operation and 2012 for, the primary crushing and grinding circuits have been operational for 92% 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 Phu Kham Copper-Gold (PKM) Operation, with the objective of meeting or exceeding reliability/availability targets in the safest possible manner.

The Mobile Maintenance 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: 

PKM has maintained 5 Star CC rating for 9 consecutive years 

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

Tailings Storage Facility

The Tailings Storage Facility (TSF) at Phu Kham is a large structure used for safely storing waste by-product (tailings) material from the processing plant.

The Phu Kham Tailings Storage Facility (TSF) is located in the province of Xaysomboun, approximately 110km north of the capital of Vientiane in Laos PDR. The TSF is owned and operated by Phu Bia Mining, a subsidiary of PanAust Limited. It consists of an earth/rockfill cross-valley main embankment and three smaller saddle dams, all constructed using the downstream method.

The TSF embankment (and saddle dam embankments) have 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 2006 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 PKM TSF is presented in the table below:

The PKM TSF is constructed to its current Life of Mine (LoM) elevation of 582mRL and will enter the closure phases in 2026. The existing embankments have been designed to meet closure criteria.

The TSF water management includes a curved riprap chute spillway in the northwest of the facility, which is designed to pass the probable maximum precipitation (PMP) event into a tributary downstream of the western saddle dam. A diversion channel (Houay Kham Diversion) intercepts runoff from the northern catchment and diverts it to the same tributary to prevent rainfall runoff filling the TSF. Closure surface water drains are constructed on the main embankment to control runoff from the embankment and abutments. During operations a decant system returns water from the TSF pond to the processing plant and excess water in the TSF pond during the wet season is discharged to the Nam Mo River, following permit conditions.

Community

The Community Department at Phu Kham 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 Phu Kham 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. 

Phu Kham achieved Outstanding Class A environmental standards for the site in 2023, this was recognised by the Lao Government in January 2024.

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 Phu Kham 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 facilities 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 Phu Kham 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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