STOCK TITAN

SSR Mining Announces Expert Findings on Cause of the Çöpler Incident

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Negative)
Tags

SSR Mining (SSRM) has released findings from an independent review of the February 13, 2024 heap leach failure incident at its Çöpler mine. The investigation, conducted by mining consulting firm Call & Nicholas, Inc. (CNI), revealed that the incident was caused by a fundamental flaw in the third-party engineered design of the heap leach pad.

The review found that the original design overestimated the shear strength properties of the liner system, resulting in inflated safety factor calculations and insufficient strength to support the facility. CNI confirmed that the construction and operation of the heap leach pad were carried out according to design specifications, and found no evidence that excess water, ground vibrations, or stacking beyond design limits contributed to the failure.

The company continues to work with authorities to obtain permits for restarting operations at Çöpler, though no timeline for resumption has been established.

SSR Mining (SSRM) ha pubblicato i risultati di una revisione indipendente dell'incidente di fallimento del heap leach avvenuto il 13 febbraio 2024 nella sua miniera di Çöpler. L'indagine, condotta dalla società di consulenza mineraria Call & Nicholas, Inc. (CNI), ha rivelato che l'incidente è stato causato da un difetto fondamentale nel design ingegneristico di terze parti del piazzale di heap leach.

La revisione ha riscontrato che il design originale sovrastimava le proprietà di resistenza al taglio del sistema di rivestimento, portando a calcoli del fattore di sicurezza gonfiati e a una resistenza insufficiente per supportare l'impianto. CNI ha confermato che la costruzione e il funzionamento del piazzale di heap leach sono stati effettuati secondo le specifiche di progetto e non ha trovato evidenze che acqua in eccesso, vibrazioni del terreno o accumuli oltre i limiti di progetto abbiano contribuito al fallimento.

L'azienda continua a collaborare con le autorità per ottenere i permessi necessari per la ripresa delle operazioni a Çöpler, anche se non è stato stabilito alcun termine per il ripristino.

SSR Mining (SSRM) ha publicado los resultados de una revisión independiente del incidente de fallo en el heap leach ocurrido el 13 de febrero de 2024 en su mina de Çöpler. La investigación, realizada por la firma de consultoría minera Call & Nicholas, Inc. (CNI), reveló que el incidente fue causado por un defecto fundamental en el diseño ingenieril de terceros del pad de heap leach.

La revisión encontró que el diseño original sobrestimó las propiedades de resistencia al corte del sistema de revestimiento, resultando en cálculos inflados del factor de seguridad y una resistencia insuficiente para soportar la instalación. CNI confirmó que la construcción y operación del pad de heap leach se llevaron a cabo de acuerdo con las especificaciones de diseño, y no encontró evidencia de que el exceso de agua, las vibraciones del suelo o el apilamiento más allá de los límites de diseño contribuyeran al fallo.

La empresa sigue trabajando con las autoridades para obtener los permisos necesarios para reiniciar las operaciones en Çöpler, aunque no se ha establecido un cronograma para la reanudación.

SSR Mining (SSRM)은 Çöpler 광산에서 발생한 2024년 2월 13일의 heap leach 실패 사건에 대한 독립 리뷰 결과를 발표했습니다. 이 조사는 광산 컨설팅 회사인 Call & Nicholas, Inc. (CNI)에서 수행하였으며, 사건이 제3자 설계의 기본 결함으로 인해 발생했음을 밝혔습니다.

리뷰에서는 원래 설계가 라이너 시스템의 전단 강도를 과대평가하여 안전 계수 계산이 부풀려지고 시설을 지탱할 수 있는 강도가 부족했다는 점이 발견되었습니다. CNI는 heap leach 패드의 건설과 운영이 설계 사양에 따라 이루어졌음을 확인하였으며, 과도한 수분, 지반 진동 또는 설계 한계를 초과하는 적재가 실패에 기여했음을 보여주는 증거는 발견되지 않았습니다.

회사는 Çöpler에서 운영 재개를 위한 허가를 받기 위해 당국과 계속 협력하고 있으며, 재개 일정은 아직 수립되지 않았습니다.

SSR Mining (SSRM) a publié les résultats d'un examen indépendant de l'incident de défaillance du heap leach survenu le 13 février 2024 dans sa mine de Çöpler. L'enquête, menée par la société de conseil minier Call & Nicholas, Inc. (CNI), a révélé que l'incident était dû à un défaut fondamental dans la conception réalisée par un tiers du socle du heap leach.

L'examen a constaté que la conception originale avait surestimé les propriétés de résistance au cisaillement du système de revêtement, entraînant des calculs de facteur de sécurité gonflés et une résistance insuffisante pour soutenir l'installation. CNI a confirmé que la construction et l'exploitation du heap leach avaient été effectuées conformément aux spécifications de conception, et n'a trouvé aucune preuve que l'excès d'eau, les vibrations du sol ou l'empilement au-delà des limites de conception avaient contribué à la défaillance.

L'entreprise continue de travailler avec les autorités pour obtenir les permis nécessaires à la reprise des opérations à Çöpler, bien qu'aucun calendrier pour la reprise n'ait été établi.

SSR Mining (SSRM) hat die Ergebnisse einer unabhängigen Prüfung des Vorfalls des Heap-Leach-Versagens vom 13. Februar 2024 in seiner Mine Çöpler veröffentlicht. Die Untersuchung, die von der Bergbauberatung Call & Nicholas, Inc. (CNI) durchgeführt wurde, ergab, dass der Vorfall durch einen grundlegenden Fehler im von Dritten erstellten Design der Heap-Leach-Anlage verursacht wurde.

Die Überprüfung stellte fest, dass das ursprüngliche Design die Scherverstärkungen des Auskleidungssystems überschätzte, was zu aufgeblähten Sicherheitsfaktorberechnungen und unzureichender Stärke für die Unterstützung der Anlage führte. CNI bestätigte, dass der Bau und die Betriebsführung der Heap-Leach-Anlage gemäß den Entwurfsspezifikationen durchgeführt wurden und fand keine Beweise dafür, dass überschüssiges Wasser, Bodenvibrationen oder Stapelungen über den Entwurfsgrenzen zum Versagen beigetragen hätten.

Das Unternehmen arbeitet weiterhin mit den Behörden zusammen, um Genehmigungen für die Wiederaufnahme der Betriebe in Çöpler zu erhalten, obwohl kein Zeitplan für die Wiederaufnahme festgelegt wurde.

Positive
  • Independent investigation confirms the incident was not due to operational or construction failures
  • Company maintains commitment to restart operations at Çöpler mine
Negative
  • Operations at Çöpler mine remain suspended with no clear timeline for restart
  • Design flaw in heap leach pad indicates potential liability issues
  • Regulatory permits required for restart still pending

Insights

The findings from Call & Nicholas Inc. reveal a critical engineering design flaw in the heap leach pad's liner system that led to the catastrophic failure at Çöpler. The miscalculation of shear strength properties is a fundamental error in geotechnical engineering that compromised the entire facility's stability. This type of design flaw is particularly concerning as it was deeply rooted in the initial third-party engineering calculations and went undetected during the review process.

What's notable is that CNI's investigation explicitly cleared several potential failure modes that are typically associated with heap leach failures - excessive water accumulation, blast vibrations and over-stacking. This effectively shifts liability from operational practices to the original design engineers. The financial implications could be substantial, as this finding may enable SSR Mining to pursue legal recourse against the third-party engineering firm.

The careful wording of this announcement suggests a strategic legal positioning by SSR Mining. By emphasizing that construction and operations adhered to design specifications, while explicitly identifying a third-party engineering flaw, the company is establishing a clear narrative for potential litigation and insurance claims. The independent nature of CNI's investigation strengthens the company's position in future legal proceedings.

The statement's timing and content appear designed to address multiple stakeholder concerns while maintaining legal defensibility. However, the inability to provide a restart timeline indicates ongoing regulatory complexity and potential additional requirements from Turkish authorities. This uncertainty poses continued operational and financial risks.

This development represents a significant challenge for SSR Mining's near-term financial outlook. The Çöpler mine, representing approximately 50% of the company's production profile, remains suspended with no clear timeline for restart. The identification of a design flaw, while potentially beneficial for future legal claims, doesn't accelerate the path to resuming operations.

The extended shutdown continues to impact cash flow and earnings potential. With a market cap of $1.47B, the company faces pressure on its valuation until there's clarity on regulatory approvals and restart timeline. Investors should monitor Turkish regulatory responses and potential remediation requirements, as these will be critical factors in determining the timeline and costs associated with resuming operations.

DENVER--(BUSINESS WIRE)-- SSR Mining Inc. (Nasdaq/TSX: SSRM; ASX: SSR) (“SSR Mining” or the “Company”) provides an update on the February 13, 2024 incident at Çöpler (the “Çöpler Incident”).

Following the Çöpler Incident, the Company commissioned Call & Nicholas, Inc. (“CNI”), an international mining consulting firm that specializes in geological engineering, geotechnical engineering, and hydrology, to conduct an independent review of the heap leach failure at Çöpler. After analysis of the engineering design, construction, and operation of the heap leach facility, and comprehensive reverse-engineering of the failure, CNI determined that the most likely cause of the Çöpler Incident was a deeply-rooted flaw in the third-party engineered design of the heap leach pad.

The review found that in the third-party engineered design, the assessment of the test data overestimated the shear strength properties of the liner system at the base of the heap leach, which inflated the calculated factor of safety values in the third-party engineered design. This error resulted in insufficient shear strength along the liner interface to support the as-designed heap leach facility.

Importantly, CNI also determined that in all material respects, the heap leach pad construction and operation was carried out in conformance with the issued-for-construction engineered design parameters. In addition, CNI’s review did not find any substantiation that excess water, ground vibrations from blasting, nor stacking beyond the design caused the event.

Rod Antal, Executive Chairman, said: “The independent expert review of the Çöpler Incident has been an important body of work for the Company to determine the cause of the Çöpler Incident. Knowing now that the failure was the result of an engineering design flaw, and not the result of a failure in our operation or construction of the pad, provides clarity and some reassurance to the team on the ground as we seek to restart the Çöpler mine. We remain deeply saddened by the profound impact of this tragedy and we remain committed to Çöpler, the local communities and Türkiye.”

SSR Mining continues to work closely with the relevant authorities to advance the required permits for the restart of the Çöpler mine. At this time, we are not able to estimate or predict when and under what conditions we will resume operations at Çöpler.

For additional information on the Çöpler Incident, including a discussion of the associated risks, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed on February 27, 2024, as well as the Company’s Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024 filed on May 8, 2024, for the quarter ended June 30, 2024 filed on July 31, 2024, and for the quarter ended September 30, 2024 filed on November 6, 2024. Further updates on the Çöpler Incident, as and when available, will continue to be provided through press releases and posts to the Company’s website.

About SSR Mining

SSR Mining is listed under the ticker symbol SSRM on the Nasdaq and the TSX, and SSR on the ASX.

For more information, please visit www.ssrmining.com.

Cautionary Note Regarding Forward-Looking Information

Except for statements of historical fact relating to us, certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may be contained in this document and our other public filings. Forward-looking information relates to statements concerning our outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.

Forward-looking information and statements in this news release are based on certain key expectations and assumptions made by us. Although we believe that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because we can give no assurance that they will prove to be correct. Forward-looking information and statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release.

Forward-looking information and statements in this news release include any statements concerning, among other things: consultation with third parties and government authorities, the results of continuing and future analysis and assessments of the cause of the Çöpler Incident, any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, regulatory, and political matters that may influence or be influenced by future events or conditions.

The above list is not exhaustive of the factors that may affect any of the Company’s forward-looking information. You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in our filings on our website at www.ssrmining.com, on EDGAR at www.sec.gov, on SEDAR at www.sedarplus.ca, and on the ASX at www.asx.com.au and other unforeseen events or circumstances. Other than as required by law, we do not intend, and undertake no obligation to update any forward-looking information to reflect, among other things, new information or future events. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

invest@ssrmining.com

+1 (888) 338-0046

Source: SSR Mining Inc.

FAQ

What caused the February 2024 incident at SSRM's Çöpler mine?

According to independent experts, the incident was caused by a design flaw in the third-party engineered heap leach pad, where the shear strength properties of the liner system were overestimated.

When will SSRM's Çöpler mine resume operations?

The company has not provided a timeline for resuming operations, as it continues to work with authorities to obtain necessary permits for restart.

Was SSRM's operational management responsible for the Çöpler incident?

No, the investigation confirmed that the heap leach pad construction and operation were carried out correctly according to design specifications.

What factors did CNI's investigation rule out as causes of SSRM's Çöpler incident?

The investigation found no evidence that excess water, ground vibrations from blasting, or stacking beyond design limits caused the incident.

SSR Mining Inc.

NASDAQ:SSRM

SSRM Rankings

SSRM Latest News

SSRM Stock Data

1.66B
199.80M
1.15%
74.05%
3.08%
Gold
Mineral Royalty Traders
Link
United States of America
DENVER