Fire at Waihi Gold's Mill
It's back to business as usual for most areas at the mine site but at Waihi Gold's mill things will take some time to get back to normal.
Emergency services worked with the Mine Rescue team to control the fire at Waihi Gold's mill. The scene was attended by local fire, ambulance and police personnel.
The fire at Newmont Waihi Gold's processing plant on May 5 has destroyed the motor control centre (MCC 03). This area contains the circuitry and switchboards that power the machinery vital to precious metals production. As a result of the fire the mill is out of action for at least three months while the components that drive it are replaced or refurbished.
Official assessors have left site and released the scene of the fire back to NWG. A comprehensive mill recovery plan is in place and a schedule of tasks for opportunity maintenance and other non-production activities is being formulated.
The fire initially cut power to the Favona underground mine and the crusher at the Martha open pit for a couple of hours but these areas were back up and running the same afternoon. Parts of the mill resorted to generator power for a few days and the company's main computer server was affected, disabling computer drives and electronic communications for more than 24 hours. Power has now been restored to the mill control room and gold room and gold was poured twice last week, using ore that was in the circuit before the fire started.
When the mill does start back up again there will be a lot of stockpiled material to work through. The higher grade Favona ore will be processed as a priority over Martha ore to raise the ore grades and produce a higher number of gold ounces for the rest of the year. There will be a strong focus on minimising the financial impact the fire has caused.
The fire has also had an impact on staff. From May 25 Macmahon manpower will be reducing from twelve hours a day to nine hours a day, Monday to Friday. Because the mill is unable to process ore and space for stockpiles at the mill site is limited, there is a reduction in the amount of ore to be transported from the open pit. There will also be a reduction in contractor requirements and use, affecting sub-contractor positions. Minor changes to the mill rosters for Newmont Waihi Gold staff will see a number of night shift staff redeployed to day shift to assist with recovery and getting the mill operational again.
The financial impact of loss of production at the mill is around $4M a week in lost revenue. As well, there is a downstream effect on suppliers and sub-contractors because deliveries of materials to the mill are fewer and activities at the processing plant have changed. The companies affected have been notified of this position. It is not known at this stage what financial impact this will have further down the line.