A powerful step

Gai, Russia. Rising copper prices after last year’s drop have allowed Russia’s second-largest copper sulphide extractor to implement its ambitious plans for modernizing production. More powerful machines will make the company the leader in the future.

The Gaisky Gorno-Obogatitelny Kombinat (Gaisky Mining and Processing Combine) is situated some 280 kilometres east of Orenburg at the far southern tip of the Ural mountains, where the steppe starts to give way to gentle foothills.

We are 752 metres underground when a deep rumbling echoes from far within the underground labyrinth like the growl of an unseen beast. Dust dances in the light from a miner’s helmet lamp as he shows the way forward through a dimly lit cavern where reflections glance off pools of muddy gunmetal-grey slush underfoot.

Here in Russia’s second-biggest copper sulphide mine, we’re looking for the mine’s freight-carrying vehicles – the Sandvik LH series loaders, the DD310-40 electro-hydraulic drilling rigs (former Axera 5-140s) and DL410 (former Solo 7-15C) production drill rig.

“Far superior to what we had before”

At 42, hydraulic drill operator Alexei Ryabanin has 21 years of experience in copper mining. The Solo 7-15 electrically driven hydraulic drill, one of four purchased from Sandvik in 2008, is a versatile machine that has a 360-degree turning arm allowing its 102-millimetre drill bit to be used for vertical and horizontal drilling.

With a one-man operating station that can be set up at a conveniently safe distance, drilling holes into the mine’s rock face to ready them for explosive charges is a straightforward job.

“It’s easier to use than the equipment we used to have down here,” Ryabanin says. “I’ve been using this machine for the past 18 months, and it is far superior to what we had before.”

Changing drill bits or gas accumulators used as dampers for the oil-regulated hydraulics is a quick job, and onsite training provided by Sandvik’s local team has helped ensure quick adoption by the miners of the new drills, Ryabanin says.

The deeper we push into the winding tunnels, the harder the going gets. The pungent acrid odour evident close to the pit shaft – a swift three-minute ride down from the top in a cast iron box – gives way to a strong breeze.

Twin headlamps pierce the gloom ahead and a Sandvik LH410 (former Toro 007) groans by, tugging a load of grey-green rock, its orange-painted body scraped and scarred from years of round-the-clock labour. The machine is known to the miners as a PDM, or “pogruzо dostavochnaya machina” – a freight-carrying vehicle.

“This is the workhorse of the mine,” says Igor Yaroslavtsev, a 52-year-old mechanic who has worked down the mine for 16 years.

The vehicles have a design lifetime of four years, but the mine’s mechanics are skilled at keeping them running for much longer.

“They’re good solid machines, and if nothing serious breaks down after the first four years, they’re good for another four,” Igor says, his grimy mustachioed face breaking into a grin.

Their durability, simplicity and familiarity to the men who use them are all factors in making Sandvik machines the No. 1 choice for underground drilling and loading equipment at the mine, which is second only to Siberia’s Norilsk as a copper producer in Russia.

“There is nothing to compare with foreign equipment in Russian mining, and we’ve long used Sandvik equipment, which is strong and well suited to the conditions in our mine,” says Gaisky GOK’s director Aleksandr Saraskin.

Sandvik supplied more than half of the drilling, loading and freight machines used – 45 machines in all – and over 90 percent of the heavy machines that weigh more than 10 tonnes.

Saraskin has a shopping list for new equipment that he wants to buy under a major modernization scheme for which the mine’s owner UMMC (Urals Mining and Metallurgical Company) plans to spend 138 million euros.

Saraskin observes that, at 52, he is just a couple of years older than the mine.

The facility was formally founded in May 1959 along with the town that bears its name, Gai, in a region that until then was virgin steppe.

You get an idea of its importance from the fact that in Soviet times it was awarded the Order of Lenin, and it is still formally known as Gaisky GOK imeni Leninskogo Komsomola – “named after the Lenin Young Communists League.”

The modernization plan has been delayed by the worldwide economic slump. Copper prices fell from 7,000 US dollars a tonne to USD 2,800 between 2007 and 2008, although they have now recovered to around USD 5,000.

Gaisky GOK, like the rest of UMMC’s 47 enterprises in 11 Russian regions, has felt the pinch.

The mine was forced to lay off around 800 workers, and its plans to buy equipment were put on hold. Still, the mine turned a profit in May 2009, and Saraskin expects to buy new equipment in the next year or two to help raise crude ore production to 8 million tonnes a year from 5.6 million.

Competitive pricing and long-established service relationships will play an important part in purchasing decisions, Saraskin says.

In a mine with two dozen horizontal tunnels running off a shaft that goes down as far as 1,360 metres to the crude ore reserves, increasing production comes down to an equation that balances cost against efficiency of equipment.

Currently, Gaisky GOK’s annual pure metal output is around 79,000 tonnes of copper (its concentrate contains an average of 18.5 percent of the metal) and 6,000 tonnes of zinc. In the half century since it opened, Gaisky GOK has produced more than 4.2 million tonnes of copper, nearly 2.2 million tonnes of zinc and precisely 287,469.44 kilograms of gold.

These figures can help one understand Gaisky GOK’s contribution to the strong position of holding company UMMC in the metals market. UMMC produces around 40 percent of Russia’s cathode copper, controls a quarter of the domestic market for nonferrous rolled products and has more than half the European market for copper powders.

“We have the second-richest reserve of copper ore in Russia, with reserves sufficient for another 100 years,” Saraskin says.

“Even if we are able to increase production with bigger and better machines and meet our new targets, we’ll still have enough for another half century in Gai.”

Technology is key to output

Fifty years ago the territory now occupied by Russia’s second-largest copper sulphide mine was a vast expanse of virtually uninhabited steppe.Geological expeditions in the 1930s had identified rich deposits of ore, and by the late 1950s armies of workers, initially housed in canvas tents, began driving a deep mine shaft and gouging out two huge open-cast pits.

The town and combine were formally founded in 1959 on May 9, the day on which Russia commemorates the end of the Great Patriotic War (the Russian term for World War II) in 1945. Total annual crude ore yields rose rapidly from tens of thousands of tonnes to millions. Production peaked in the 1970s, when figures as high as 5.9 million tonnes were achieved from the deep mine and two open-cast pits. Today the open-cast pits are worked out, but constant improvements in mining techniques have driven production up again, and output reached 5.6 million tonnes last year.

A major employer in the town, Gaisky GOK has 6,000 people on its payroll, including 2,000 miners. This year’s turnover, according to its general director Aleksandr Saraskin, is on target for around EUR 240 million.

Maintaining leading-edge technology is the key to improving performance. Gaisky GOK bought 45 Sandvik machines in the past five years and prepared a 6 billion rouble (EUR 138 million) modernization plan to overhaul the concentrate processing plant, raise annual output to 8 million tonnes of crude ore and make other improvements. This means more modern equipment will be needed soon.