Theft Prevention In Gold Mining

With the price of precious metals at an 18-year low, every ounce of metal produced is important. The theft of metals from mining and refining sites can mean the diffrence between profit and loss for many mining companies. Low metal prices do not reduce the potential for the theft of precious metals. History has shown that the price of gold has little to do with the desire for employees to steal precious or base metals. There is actually evidence that the theft of precious metals increases when the price of this commodity goes down. Several of the major precious metal thefts in the past year took place at silver mines when the price of silver was less than 16 cents/g ($5/oz). How does the lowest gold price in 18 years affect the need for security at precious metals properties? There is no short answer to this question. One reason is because the exposure to theft of precious metals is unique to each property. This makes it important that each property be evaluated individually. More than 95% of all precious metals thefts can be attributed to those working at the mine site. So preventing employee theft is the primary concern. One consideration is the location of the property. Gold selling at any price is still an attractive commodity in countries where the employees are making between US$400 and US$600 a month. It is not uncommon for employees at mines in countries where low wages are the norm to consider the value of a gram or two of gold to be a significant amount of money. A gram or two of gold a day may not seem like much. But if 15 employees steal two grams a day, that equates to a significant amount of money during a year. The type of property where the precious metals product is being recovered is also important. For example, a property with a gravity circuit is more likely to suffer from the theft of gold product than a property where all gold is finely disseminated and the only gold seen in the ore body is through a microscope. Gravity circuits increase an operation's exposure to theft because the grinding circuit that is associated with a gravity circuit often becomes a giant concentrator. Areas such as the bottom of grinding-mill pump boxes, cyclone-feed-pump clean out traps and the sumps often become locations where precious metals concentrate (Figs. 1 and 2). Muck concentrations in these locations can be as high as 25% to 40% of gold or silver. Not long ago, muck was removed from a barren-solution sump at a Merrill Crowe circuit that had concentrated to more than 40% gold. At a milling site in the Pacific Rim, residents of the community adjacent to the mine learned about the value of the concentrates in the sump under the ball mill and committed an armed rob¬bery. While several of their co-conspirators held the em¬ployees at bay with machetes, the others emptied the contents of the sump into buckets and removed it from the site. Armed robbery is not as common as employee theft. However, while this article was being written, an armed robbery occurred at a gold property in Central America. Armed perpetrators took as hostages the night shift employees at a process plant and used cutting torches that were on site to cut into the high-security and gold-storage areas. The perpetrators then stole a company vehicle to remove the stolen gold buttons and sludge from the site. Unfortunately, this type of activity goes on regularly. But managements of most mining companies are reluctant to discuss theft scenarios. So information pertaining to the theft of precious metals seldom becomes a newsworthy item. An audit conducted at a mine site with a gravity circuit recommended that the gravity recovery area be shut down until adequate protection could be provided. Although it was not connected with the audit, it was necessary to shut down the gravity area for a pro¬longed period because of problems with the gravity table. In the two months that followed, gold production at the site increased by about 31 kg/month (1,000 oz/month). It is difficult to attribute all of this increase to the theft of concentrates. But there was a good chance that at least part of the increase was due to the fact that concentrates were being stolen from the gravity area.