Ore Processing Business Experiences in Russia 2005-7

"During the period June 2007 to March 2007, John Starkey of Starkey & Associates (Starkey) worked in Russia for High River Gold, supervising the engineering design work that was being done at the IRGIREDMET Research Institute, in Irkutsk Russia. The work entailed moving the Newmont No. 4 mill from Elko, Nevada to Berezitovy, a mine site north and west of the city of Skovorodino, in the Amur Region of Siberia. This was a grass roots project and required construction of all phases of the infrastructure and process facilities that are associated with a 5000 t/d open pit mine and CIP mill.During the course of this engineering design exercise, many aspects of doing business in Russia were encountered, with regard to laws, norms, and business practices. This paper discusses many of these findings. Also by living in Irkutsk, many observations on Russian life and social customs were made and these merit discussion from a general interest point of view.Prior to going to Russia, another engineering and ore testing firm (TOMS) had approached Starkey to find out if Starkey could assist them in upgrading their SAG ore testing procedures to Western standards in order to offer their clients turnkey projects, that included reliable SAG and AG grinding. TOMS was aware that Starkey had invented the SPI test but did not know that the SAGDesign test had by then been fully developed and was being offered commercially as the most accurate way in the world to design new grinding mills. They were also unaware that this new testing method had been patented by Outokumpu (now Outotec) and that this method allowed them access to a design method, through Starkey, that would lead to a manufacturer’s guarantee (by Outotec) of throughput and grind for any new semi-autogenous or autogenous grinding circuit, with or without ball mills.When Starkey started working at IRGIREDMET in June 2005, they also made a request to add a design method for SAG mills that would be considered acceptable to Western clients. From these requests, presentations were made in Russian to both institutes and each decided to join the SAGDesign Consulting Group as satellite members and buy a SAGDesign test mill to use with their Bond Ball Mill Work Index mills, to provide SAGDesign testing services. To complete the service, contracts have been put in place for Starkey to use these results to design new grinding equipment and to train engineers at TOMS and IRGIREDMET how to do this work.Starkey also undertook to train engineers at both labs to go into the field and to take the samples for SAGDesign testing programs. It is here where the SAGDesign testing service upgrades other grinding test programs because the samples to be used for design are professionally chosen, and the results will be much more likely to produce a satisfactory design. Starkey is a mining engineer and is uniquely qualified to do this task. This and the SAGDesign test are the key components that lead Outotec to offer a performance guarantee for mills designed by Starkey."