Sumitomo Pogo Mine LLC
The Pogo Mine in remote northeastern Alaska ain’t what it used to be. As with all things, change is inevitable. Pogo Mine has been in production for six years and it too has realized change from the original vision.
The ever-rising prices of gold throughout the world has had a positive impact to Sumitomo Corp.’s decision in buying Teck Cominco’s 40 percent interest in the property, according to the Northern Alaska Environmental Center.
Today, Mine General Manager Chris Kennedy says the exploration drilling has had a positive impact on extending the current mine life from 2017 to 2021 and with additional drilling in 2012, this could be extended.
“Based on where we’re at today, we’ve come a long way,” Kennedy adds. “Pogo is no longer the Pogo of the past.”
According to the Northern Alaska Environmental Center, the Pogo Mine is located in the Goodpaster River Valley of Alaska, 85 miles southeast of Fairbanks and 38 miles northeast of Delta Junction. The conventional underground mine processed 2,550 tons of ore per day in 2009 for a total of 930,836 tons of ore for the year.
The Pogo deposit, according to the center, is a gold sulfide ore body hosted in a large quartz vein system, with low-grade ore present in quartz stock works. The mine is expected to produce 400,000 ounces of gold per year over the 10-year mine life. Sumitomo is using conventional underground mining techniques of cut and fill and drift and fill, according to the center, to reach the main workings located underneath Liese Creek.
The company drilled 44 surface holes totaling 52,655 feet in 2009. Thirty-five underground holes were drilled for a combined 17,745 feet.
Getting to the Gold
Forty percent of the gold within the Pogo Mine is recovered using gravity, and 60 percent is recovered with floatation and cyanide vat leaching. The Northern Alaska Environmental Center says the mine complex houses a mill, 300-person camp, dry stack tailings pile, waste rock dumps and recycled water tailings pond.
An airstrip, gravel pits, laydown and fuel storage areas, and a local network of roads also support the operation. As the price of gold continues to skyrocket, Kennedy says Sumitomo would like to further ramp up its operations. However, a dire shortage of qualified and experienced personnel is forcing the company to launch a number of initiatives to track down the best and the brightest in the industry.
“Mines in general are having a hard time finding qualified and experienced miners, geologists, engineers – the whole gamut across the board as far as labor goes,” Kennedy says.
Labor Needs
To address these needs, Sumitomo has taken a variety of avenues based on the specific job it needs to fill. For its engineering department, the company continues to improve on its engineering-in-training program. Sumitomo hires engineers out of college and provides relevant training for its operations. For field laborers in its mine and mill, Sumitomo says it has expanded the company’s search for experienced candidates into the United States.
However, to compensate, the company has trainers in each of its departments who are tasked to train inexperienced personnel on its operations, as well as help employees climb their way up the pay scale to retain key personnel.
Technical talent
For its technical personnel, Sumitomo employees can move up levels, increasing the hourly wage they earn until they reach the fifth and final level.
“Tech one’s hourly is about $19 an hour, and at tech five they’re almost at $32 an hour,” Kennedy says. “Because of the aggressiveness of all the other mines that are trying to lure employees, we have a lot of different bonuses based on performance.”
Cash Flow
Despite the generous wages – miners can earn up to $175,000 annually – Sumitomo must keep its field personnel as comfortable as possible in the Alaskan wilderness. Kennedy admits camp life can be difficult for the miners and millworkers, many of whom are far from home for weeks at a time.
“Some of the biggest challenges we have with our people is keeping them on-site because of the remoteness of our camp facility,” Kennedy says. “Camp life is not for everybody – for a young couple just starting out, or if your kids are young, camp life may be very difficult at Pogo vs. a job that is close to a home.”
To aid the work/life balance of its employees, Sumitomo does everything it can to make sure its people can make it home and back as often and conveniently as possible. The company has built the work schedules around flights in and out of Fairbanks, and it will transport employees three hours to Fairbanks. The company also is quick to make arrangements for employees who need to get home for personal reasons outside of their scheduled change-out.
“Sure, tech-five miners can make good money out there, but what is the cost of living away from home?” Kennedy says. “They still want to have a family life, and that is the tough part.”
Safety is Key
Kennedy says safety is the top priority at any underground mine, including Pogo. Although the site earned a Sentinels of Safety award from the U.S. Department of Labor Mine Safety and Health Administration (MSHA) in 2009, the company experienced lost-time incidents in 2010.
Sumitomo realized it wasn’t doing enough to ensure the safety of its people, Kennedy says, and the company was determined to reverse that trend. The company says it since has developed a comprehensive job-hazard analysis program to strengthen the culture of accountability and responsibility that already was in place.
“What we expanded [was] the courageous leadership process which helps each employee to realize that they ultimately are responsible for their own safety, as well as the safety of others,” Kennedy surmises. “Sometimes, it takes courage to stand up to somebody doing something unsafe.
“With courageous leadership, they’re empowered to stop the job if something doesn’t feel right or [is] unsafe, and there are no consequences for stopping what they’re doing because safety and production can and do go hand in hand.”
On-site Amenities
Because Pogo is a man camp facility, it is important that as many amenities come with it for the miners and millworkers. Kennedy says Pogo operates “basically a small city,” which includes its own water/sewer systems, cafeterias and residences. “It’s much different than the normal mines throughout the United States where everyone gets to go home every night,” he adds.
Sumitomo continues to look for additional reserves to add to its portfolio. With this in mind Sumitomo Metal Mining will continue to design and develop its mine sites to operate as safely, environmentally and efficiently as possible, no matter how long it takes.
“The future is very bright, whether we’re expanding the mine life here, throughout Alaska, or finding other ore bodies,” Kennedy concludes. “But, it takes time.”
Corporate Vision
Sumitomo Metal Mining Co. Ltd. and its group of companies has formulated a managerial vision, the company says.
“Sumitomo Metal Mining shall pursue maximum corporate value through the provision via its global network of high-quality materials,” it says.