MARCH 2015
2010
35
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ANNIVERSARY 1980 - 2015
Complimentary PM no. 40069240
CONTENTS
Happy 35 anniversary th
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t takes determination to build a business, but it takes a good deal more to enjoy 35 years of continued success, especially in the volatile mining services industry. DMC Mining Services, which started out in 1980 as Dynatec Mining Limited, has done just that. By helping countless miners tackle the challenges of building and running safe and profitable mining operations through the years, DMC has established itself as a leader in the industry. And it’s in no small part thanks to its founders who instilled the positive, energetic spirit that is still evident throughout the entire organization. While the company has seen many changes on a corporate level — going from a private company to a public one and then through a series of mergers — DMC’s core culture has remained remarkably intact. Whether you speak to new members of the DMC family or long-time employees, they all have the same enthusiasm for their work and the entrepreneurial spirit that has been characteristic of the company since its founding. As we celebrate DMC’s past accomplishments, we can be assured that its future will be just as dynamic, fruitful, and surprising as its history.
Alisha Hiyate Editor
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INTRODUCTION DMC Mining: Building value for 35 years and counting........ 4 HISTORY From Dynatec to DMC Mining Services: A rich history........... 6 Four founders come together................................................. 8 INNOVATION A historic breakthrough at Jansen........................................14 A track record of innovation.................................................16 Technical services’ role in innovation ..................................17 Beyond technical innovation................................................18 SAFETY Safety First: Beyond Zero Harm............................................19 BHP Billiton’s Jansen potash project in Saskatchewan, where DMC Mining is sinking two shafts. Photo DMC Mining Services
SERVICES DMC’s capabilities............................................................... 20 PEOPLE DMC’s people ..................................................................... 22
2010
DMC 35th Anniversary is published in co-operation with The Northern Miner 38 Lesmill Rd., Unit #2 Toronto, Ont. M3B 2T5 E-mail: tnm@northernminer.com Editor: Alisha Hyate Contributors: George Werniuk Juan Carlos Zapata Art Director: Mark Ryan Production Manager: Tracey Hanson Advertising Sales: Joe Crofts Dave Chauvin Publisher: Anthony Vaccaro Printed in Canada. All Rights Reserved. The contents of this publication may only be reproduced with the written consent of The Northern Miner. Canadian Publications Mail Agreement Number 40069240 Return undeliverable Canadian addresses to: The Northern Miner 38 Lesmill Rd., Unit #2 Toronto, ON M3B 2T5
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INTRODUCTION
DMC MINING: Building value for 35 years and counting By Alisha Hiyate
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hen Bill Shaver decided to join Bob Dengler as a founder in a startup mining services company Dynatec Mining Limited in early 1980, he never dreamed of the success that would follow. Now known as DMC Mining Services, the company set a record with the first shaft it was contracted to sink, has racked up both business and safety awards, ventured into mine ownership — to its shareholders’ great benefit — and has consistently proven itself an innovator in the field. But Mr. Shaver, now the President and CEO of DMC, says of the company’s many accomplishments over its 35 years in business, the one that stands out is the sheer value the DMC team has managed to create. “In 1980, it was two guys with a couple of pickup trucks,” he said in a recent interview in his office in Vaughan, Ont. “And by 2007, we’d managed to sell the
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Bill Shaver accepting an EY Entrepreneur of the Year award. Credit: EY
whole company to Sherritt International for $1.6 billion. Can one even imagine that that’s possible?!” Mr. Shaver gives a lot of the credit for DMC’s success to the company’s principal founder, Bob Dengler.
An innovative thinker with a meticulous nature, Mr. Dengler set the tone right from the beginning by naming the company Dynatec — a mixture of the words “dynamic” and “technical”. “It was fortuitous in my mind to have Bob as the original brains of the organization because I think he’s a guy, even today, who thinks outside the box almost at all times,” Mr. Shaver says. While Mr. Dengler retired as DMC’s President and CEO in 2005 after 25 years, and left as non-executive Chairman and Vice-President in 2007, the company has stayed true to its founding principles. The company has been through a number of mergers — as acquirer and the acquired — and is now a part of Polish copper miner KGHM Polska Miedz. ´ But two things have remained constant throughout DMC’s history: its focus on both safety and innovation. In fact, one of the company’s proudest
INTRODUCTION Kinross Gold’s K2 property, in Washington state. Credit: DMC Mining Services
BHP Billiton’s Jansen potash project, in Saskatchewan. Credit: DMC Mining Services
accomplishments is one that combines the two: the innovative work it’s doing at BHP Billiton’s Jansen potash project. DMC is sinking two 1,000-metre shafts at the project mechanically, using technology that was jointly designed by equipment manufacturer Herrenknecht, BHP, and DMC. As opposed to traditional mine shaft sinking, which involves drilling and blasting, the new technology takes workers out of harm’s way during the shaft sinking process. “In my mind, the most important aspect of that is that this is the first time anywhere in the world, there are no people standing on the bottom of the shaft during excavation,” Mr. Shaver says. Today, DMC Mining Services offers shaft sinking, contract mining, mine construction and development, raise boring, engineering and other services across Canada, the United States and Mexico with a head office in Vaughan, Ont., an
office outside of Salt Lake City, Utah, an office in Saskatoon, Sask., and office/ shop in Val Caron, Ont. While DMC has felt the slowdown in the mining industry over the past few years, it hasn’t been as bad as previous downturns in the notoriously volatile sector. The company’s revenues in 2014 were about $150 million — somewhere in between the banner year of 2012, when it pulled in $330 million, and the low of around $60 million during the financial crisis in 2009. “We’ve been reasonably fortunate because we have a big job in Saskatchewan for BHP, the Jansen project, and we had quite a bit of work coming off 2012-13, both in Canada and the U.S.,” Mr. Shaver says. “I guess the challenge is that we’re completing a lot of that work as we speak so this year will be a challenge.” DMC is also finding advantages to being part of KGHM, the world’s seventh largest copper miner and the largest silver miner, with operations in Poland, Chile, Canada and the U.S. While Mr. Shaver expects that business will remain slow in 2015, he sees a pickup coming in 2016. Until then, he says the company will focus on what it does best. “We’ll spend more time getting out to see our clients and making sure we understand what they’re doing, how we
can fit into that, and how we can help them to do things better, do thingscheaper, and figure out how to bring innovation to projects that they’re doing.” 2010
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HISTORY
RICH From Dynatec to DMC Mining Services:
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HISTORY
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ynatec Mining Limited was founded in 1980 by Bob Dengler, a former vice-president and partner at J.S. Redpath who provided the initial $250,000 in seed money for the startup. He asked Bill Shaver, a fellow mining engineer and a colleague from J.S. Redpath to join him and the partners opened up an office on Elgin Mills in Vaughan, Ont., in March 1980. Several months later, the pair was joined by two other former J.S. Redpath employees, Arthur Parke and Fred Edwards (see “Founders” sidebar on Page 8). The years of experience and extensive industry contacts that the founding members brought to Dynatec Mining — and their willingness to pound the pavement to drum up new contracts — got the company off to a good start. The fledgling company experienced enormous growth in its first year, grossing $2.2 million — 11 times the $200,000 in revenues they had originally forecast. By the 18-month mark, Dynatec had more than 100 employees, including 22 engineers. The company landed two significant development projects early on, one involving construction at Billiton Canada’s Mount Pleasant tungsten mine in New Brunswick, and the other tunnelling for bulk samples at Shell’s East Kemptville tin project in Nova Scotia. But Dynatec got its first big break in its second year of business. The job was for Lac Minerals at its Macassa gold mine near Kirkland Lake in northern Ontario. Lac Minerals wanted to sink a record-breaking 2,350-metre
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The portal at the Ken Snyder mine in Nevada, where DMC became the contract miner in the late 1990s. Credit: DMC Mining Services
HISTORY
Top photos: Dynatec began work on a 2,200-metre shaft at Lac Minerals’ Macassa project in Ontario, in 1982. Credit: DMC Mining Services
(7,700 ft.) shaft (it later became 2,200 metres or 7,225 ft.), but Mr. Shaver notes that deep mine shafts are highrisk projects. “The worry from the owner’s perspective is that the contractor really has no skin in the game,” he explains. So, putting themselves in the client’s shoes, Dynatec — a “miniscule” company at the time — proposed to share the risk with Lac, itself a small company. “The way we approached Lac was what if we do this on a joint-venture basis? So we put together an estimate, we build into the job a profit and we both put capital up at the front end and if the job makes money, then we share the profit?” Mr. Shaver recalls. The proposal won Dynatec the job. Moreover, the joint venture nature of the job made it unique in the industry at the time. “Part of the contracting business is coming up with a new type of contract or a new way to approach a job,” Mr. Shaver notes. Financial considerations also played a part: the shaft was built with timber because Lac Minerals couldn’t afford a concrete shaft. The work wasn’t easy. The ground in the area was susceptible to rockbursts. In certain segments of the shaft, the rock had to be “destressed” to reduce the hazard of rockbursting. Continuous bolting of the walls along the whole shaft was required, as well as continuous screening below the 1,500-ft. level. Construction on the new shaft collar began in October 1982 and shaft sinking started in March 1983, with the official opening taking place May 1, 1986. The
$35-million shaft was completed by the two parties “relatively on time and pretty close to budget” Mr. Shaver says, adding that today, a similar shaft would cost closer to $200 million. The Macassa shaft was the deepest single-lift shaft in North America until the late 1980s, when Agnico Eagle’s LaRonde gold mine in Quebec was built. However, it remains the deepest singlelift timbered shaft in the world. The project put Dynatec on the map, cementing its reputation as a serious contender in the mining services business. “We were a very young company and we had a project to sink a 2,200-metre shaft, so that was a real feather in our cap early on,” Mr. Shaver remembers. “I think that was, in part, how we built the organization through the years.” By 1985, Dynatec’s success was being recognized outside the industry. Bob Dengler won the Canada Awards for Excellence 1985 in the Entrepreneurship category for “successfully assuming the challenge and risk of developing a con-
tract mining consulting business during extremely difficult times for the mining industry.” Established by Industry Canada, the award was given by the Canadian government to the owner or manager of an independently operated firm for outstanding achievement in starting, taking over or changing a small or mid-sized business. The category places particular emphasis on the elements of risk, leadership, creativity and innovation. The following year, Dynatec was featured in a series called “Frontrunners” on TVO, the Ontario government’s public educational TV network. The series was aimed at viewers who dream of starting a small business. By 1986, the company was handling a dozen projects at a time, with offices in Rouyn-Noranda, Que., and Colorado in addition to its head office in Richmond Hill. In six years, the company had achieved phenomenal success in an industry known for its extreme economic volatility.
Founder Bob Dengler (left) with Duncan MacDonald on a busy day at the office. Credit: DMC Mining Services
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HISTORY Dynatec founders Arthur Parke, secretary-treasurer; Bill Shaver, vice-president; Bob Dengler, president; and Fred Edwards, manager of engineering. Credit: DMC Mining Services
Four founders come together By George Werniuk
Dynatec was founded by four partners, who had all met at J.S. Redpath: Bob Dengler, William (Bill) M. Shaver, Fred Edwards and Arthur Parke. Bob Dengler was born in 1940 in Kirkland Lake, Ont., spending his childhood in such eastern Canadian mining towns as Cadillac, Bancroft and Noranda. He enrolled in mining engineering at Queen’s University, Kingston, graduating in 1965. His first summer job was at the Bicroft Mine in Bancroft in 1961. While working underground, shaft deepening was under way and Mr. Dengler was so impressed by the shaft sinkers, he wanted to become one. The next summer, he worked as a shaft miner at Joutel Copper, where he met Jim Redpath. By the end of the summer, Mr. Dengler was the senior shaft miner at Joutel. In 1962, Redpath started his own mining contracting firm and asked Mr. Dengler to join him. Mr. Dengler did, staying on for 16 years. During his tenure at Redpath he rose to become a partner, vice-president and general manager of the company, but in July 1979 he parted ways with Redpath. For six months, he pondered what to do — returning to school, travelling to Europe or going back into the mining business. With his financial investment from his time as a partner at Redpath in hand, he decided to start his own business. With a personal investment of $250,000, Dynatec was born in February 1980. In 1988, Mr. Dengler was awarded an honorary degree of Doctor of Science from his alma mater, Queen’s University.
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A lifelong learner, Mr. Dengler acquired his helicopter pilot’s licence after he retired from DMC at the age of 66. Arthur Parke received his technical and commercial training in Ireland, where at one time he had worked as a bookie. At J.S. Redpath, he was manager of accounting, and before that, he was chief accountant for Kam Kotia Mines, Can-Met Mines at Elliot Lake and the Mutual Electric Co. in Sault Ste. Marie. Bill Shaver is a third-generation miner who grew up in Val d’Or, Que., and graduated from the Haileybury School of Mines and Queen’s University in mining engineering. As a student, he worked for four different mining companies. After graduating, he worked as shift boss and production engineer for the Lake Dufault division of Falconbridge Copper, then he joined J.S. Redpath, where he rose from estimating engineer to general superintendent, and finally area manager in charge of mine contracting in Canada and Greenland. Fred Edwards also graduated from the Haileybury School of Mines and as a mining engineer from the Michigan Technological University. He worked at J.S. Redpath as a project manager and consulting engineer. He started his underground mining career with McIntyre Porcupine Mines in Schumacher, Ont., where he was part of the mine engineering department. As his career progressed, he held positions of increasing responsibility with Potash Co. of America in Saskatoon, AMC-Harrison in Regina, Sask., International Nickel Co., at Copper Cliff, Ont., and Texasgulf in Timmins.
First merger By 1988, the company was poised for even more dramatic growth with its first acquisition. The purchase of Vancouverbased Tonto Mining and Tonto Drilling Services gave Dynatec a base in western Canada and the western U.S. and drilling expertise in deep-hole projects, geothermal drilling, and high-production multi-drill projects. Tonto’s expertise in mine development and contract mining complemented Dynatec’s expertise in mine development, consulting engineering, raise boring, equipment and plant installations and shaft sinking. Between them, the two companies had completed over 900 projects in Canada, the U.S., Ireland and Africa. With the merger, the company reorganized into Dynatec International, a parent company with nine subsidiaries, equipment valued at over $50 million and a staff of 800 people. The idea behind the merger was to create a full-service contractor that could carry out work over the entire mining cycle — from exploration drilling through to mine shutdown. But the deal suffered from bad timing. Shortly after the purchase, there was a downturn and Dynatec was left with more than $10 million in debt at a time when there was less work available. The federal government also changed the rules around the flow-through tax credit program for mineral exploration and it became very difficult for companies to raise money. Dynatec was close to going out of business. The early 1990s was a tough time in the mining business. Like other contractors, Dynatec was forced to let some companies settle their debts with shares. Half the time these equity stakes would make money and half the time they resulted in writeoffs, Mr. Shaver says. The company survived by strategically selling off $20 million of idle equipment that was not yet paid off. The move reduced Dynatec’s debt, the storage space needed for equipment and the number of people required to maintain it. The company also began to generate new business during the slump by getting
HISTORY
involved in smaller projects and purposely taking equity positions in companies that would give them work. In 1991, the company agreed to develop and mine above the 695-ft. level at Northfield Mineral’s Cheminis gold mine near Virginiatown, Ont., in return for an option to purchase Northfield shares. Dynatec also facilitated project financing for several projects in return for contract work, including the Gold Ridge Resources’ Wingdam placer gold project in the Cariboo mining division of British Columbia. Things started to pick up in 1992, when Dynatec and another company won the contract to sink two shafts at Aur Resources’ Louvicourt Township base metal project near Val d’Or, Que. The two companies were selected from five bidders to complete a 2,400-ft. exploration/ventilation shaft and a 3,300ft. production shaft. Work on the
Dynatec crews sinking a 1,500metre shaft at Falconbridge’s Craig orebody, near Sudbury, Ont., in 1991. Credit: DMC Mining Services
$50-million project was expected to last until May 1994. Dynatec also continued to take shares in lieu of payment in cases where clients were unable to pay them. In 1994, in lieu of $2.1 million owed, it was awarded
$450,000, 7.5 million shares, and payment of $1 per ton of ore mined and processed from Armistice Resources’ gold project in Ontario (to a maximum of $500,000). Dynatec’s next big break came in May
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HISTORY The Podolsky headframe being constructed in 2005. Credit: DMC Mining Services
Goldcorp’s Red Lake gold mine, in northern Ontario. Credit: Goldcorp
1995 when Inco announced it was reactivating its Shebandowan nickel mine and mill 100 km west of Thunder Bay. Dynatec Mining won the contract to operate the mine and mill, and was expected to employ about 320 workers to produce 2,500 tons of ore per day by early 1996. About the same time, Dynatec crews were completing shaft sinking projects at Barrick Gold’s Meikle mine, 27 miles north of Carlin, Nev. The company started on the 1,320-ft. ventilation shaft in October 1994. Shortly thereafter, in January 1995, it started on the 1,474-ft. production shaft and finished it in December that year. The two shafts were then connected on 1225 level. It was a tough environment to work in, but in 1995, Dynatec crews worked at Meikle without a single lost-time accident. After the breakthrough, the ambient air temperature on 1225 level dropped from 98°F to 78°F. That same year, Dynatec Mining finished work at Aur Resources’ Louvicourt mine ahead of schedule and below budget, and completed several other projects in northern Quebec, as well as a raise boring project in Turkey. Subsidiary Tonto Drilling was active in the United States, Chile, Mexico, Egypt, Jamaica and Indonesia. Overseas contracts were mobilized and managed from the Salt Lake City office. By 1996, the tide had turned and business was booming again. Both revenue and profits reached record levels that year and the company’s flagship project, Shebandowan, set records for
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ore and nickel production while maintaining an excellent safety record. Going public Dynatec’s next milestone came in 1997 with a public listing. The idea was the brainchild of Dengler and Sherritt International chairman Ian Delaney. The executives drew up a plan to merge Dynatec with Sherritt’s metallurgical technologies business and then list the combined entity on the Toronto Stock Exchange. From Sherritt’s point of view, the transaction was a dividend in kind to the company’s shareholders that did not dilute the value of its core holdings in nickel mining. From Dynatec’s point of view, the merger was a good fit and would add new metallurgical expertise. The new Dynatec Corporation was reorganized with three divisions: mining services, drilling services and metallurgical technologies, specializing in the nickel laterite business. Soon after, in May 1998, the company announced a new facility for the Metallurgical Technologies Division in Fort Saskatchewan, Alta. With a public listing came more paperwork and reporting requirements. But it also made it easier for the company to raise money. Dynatec also established share-purchase plans, which served as a great employee incentive. On the job front, things were busy. In mid-1998, Dynatec landed a job to operate the Ken Snyder mine/mill complex in Nevada, co-owned by FrancoNevada Mining and Euro-Nevada
Mining. The next year, it got another big job that would keep the company busy for a decade. In 1999, the company was contracted for 20,000 ft. of underground development and infrastructure upgrades at Goldcorp’s Red Lake mine, in northern Ontario. In 2001, it was awarded a further threeyear mining job at Red Lake. The $25-million a year contract would require about 200 workers. Sudbury JV At the same time, Dynatec was about to venture into mine ownership. Inspired by its success running the Shebandowan mine, the company wanted to go beyond contract mining and use its expertise to add value to operations in which it owned a stake. Through its connection with Inco at Shebandowan, it got wind of an opportunity to acquire some of the nickel miner’s non-core properties in Sudbury. The company started talks with Fort Knox Gold Resources — which became FNX Mining in mid-2002 — and in February 2002, the two formed a joint venture to acquire five past-producing nickel properties from Inco. The JV had to spend $30 million over 52 months starting in January 2002, including $14 million by May 2003. Dynatec came in as a 25% partner and put up half the initial $14 million, and a quarter of subsequent funds. FNX was in charge of exploration, while Dynatec provided the development and underground operational expertise. The option deal included 100% of the
HISTORY McCreedy West, Levack, Victoria, Kirkwood and Norman properties, subject to a back-in right. Inco had suspended production on the McCreedy West, Levack and Norman properties in the late 1990s while nickel prices were low. Production from the other two properties ceased much earlier. In early 2002, the joint venture began a $14-million exploration program, which included 400,000 ft. of diamond drilling. Positive results were not long in coming, and by May, new nickel mineralization was intersected in a previously undrilled area at McCreedy West and copper-nickel-platinum-palladium and gold mineralization had been confirmed within known mineralized zones at McCreedy West and Levack. By November, the joint venture had begun a $5.4-million underground exploration program at McCreedy West, and had discovered the Powerline deposit on the Victoria property. It wasn’t long before Dynatec became a producer of nickel, copper, platinum, palladium and gold in its own right. In May 2003, first production began at McCreedy West, which the partners were discovering had more tonnage and a higher nickel grade than expected. The mine was in commercial production by November. Exploration and development activity had been so intense that the JV earned its full interest in the five Inco properties two and a half years ahead of schedule. Before the end of 2003, the partners had already spent $30 million. Less than two years after the creation of the joint venture, it turned a $5-million operating profit in the first quarter of production and a $24-million profit in its first year of mine operations. Work at Levack was also successful. In 2005, the JV started a rehabilitation program of the No. 2 shaft and headframe to get at resources it delineated in 2003. And at Norman — which in 2004 was renamed Podolsky after distinguished Inco geologist Terry Podolsky — an underground exploration program was approved in 2005. This work included the sinking of a 2,500-ft. shaft.
Dynatec shaft sinkers are working in harsh conditions on Inco’s vent shaft project, Garson Ontario, in 2002. Photo DMC Mining Services
Ambatovy While it was busy with the Sudbury JV, Dynatec happened upon a bigger opportunity farther from home. At a mining dinner in 2002, Mr. Dengler was seated beside the president of Phelps Dodge, who let it be known that he was looking to do a deal with the major’s massive Ambatovy nickel laterite project in Madagascar. With its new strategy of mine ownership solidifying, in 2003, a year after the Sudbury JV, Dynatec announced a deal to earn a 53% interest in Ambatovy. The company would earn its stake by funding US$20 million in project costs, including a feasibility study, and providing metallurgical expertise at the project, which at that point, held a global resource of 190 million tonnes grading 1.1% nickel and 0.1% cobalt. By September 2004, Dynatec received its majority interest, and the following year, with a draft feasibility study in hand, it struck a deal to buy the remaining 47% of Ambatovy in return for a 9.9% stake in the company. A positive feasibility study was released in February 2005, based on a 20,000-tonne-per-day open-pit operation producing 60,000 tonnes of nickel and 5,600 tonnes of cobalt per year, using a pressure acid leach process. However, the massive project, with a projected mine life of 27 years, would cost US$2.3 billion to build — well beyond the capacity of a $240-million market cap company like Dynatec to fund. By late May, Dynatec had found a partner to help advance Ambatovy. South Africa-based Impala Platinum
Holdings (Implats) would become a 50% partner by contributing $50 million in spending. After that, costs would be shared equally, but the partners would look to sell a 25% share, leaving each with a 37.5% stake. The pair found a taker in Sumitomo Corp., which in August, agreed to fund a quarter of the project’s costs, provide financing to Dynatec, and provide a project completion cross guarantee. Having attracted larger partners to share the financial burden at Ambatovy, a couple of months later, Dynatec announced it was raising US$125 million to fund its share of the project. At the same time, Dynatec sold some assets to free up resources, including its interest in the Sudbury JV and a 50% interest in Aurora Platinum, which it had
DMC MINING SERVICES
CONGRATULATIONS On Your 35th Anniversary HARRIS REBAR SASKATOON
Office: 306-242-8455 Toll Free: 1-866-731-4222 Fax: 306-242-8323 Email: saskatoon@harrisrebar.com www.harrisrebar.com
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HISTORY A load-haul dump truck at the Sudbury JV. Credit: DMC Mining Services
Mine planning at the Sudbury joint venture. Credit: DMC Mining Services
Investing directly in mining projects paid off enormously for Dynatec, leading to a $1.6-billion bid by Sherritt International in 2007. earned from FNX earlier that year. In October, the Sudbury assets all went to FNX in return for 20.5 million shares (27% of the company), worth about $291 million. Under the deal, Dynatec would remain the mining contractor for the Sudbury JV for two more years. Dynatec had already sold its drilling services division, including 30 drill rigs, to Major Drilling International for US$17.2 million in cash and shares earlier in the year. But in November, Implats delivered news that would prompt Dynatec’s stock to drop 26% in one day: the company was pulling out of the project, citing increased costs. The move left Dynatec with a 75% stake in Ambatovy — and a proportionate share of the capital costs. The company’s search for a new partner to replace Implats took nearly a year. Meanwhile, the price tag for Ambatovy rose to US$2.5 billion, according to an updated feasibility study released in May 2006 that also showed the project would be one of the lowest-cost nickel producers in the world at US77¢ per lb. nickel (after byproduct credits). But in October 2006, Korea Resource Corp. (KORES),
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leading a Korean consortium including Daewoo International, Keangnam Enterprises and STX Corp., signed on for a 40% stake. SNC-Lavalin also acquired a 5% interest. With partners committed to Ambatovy, Dynatec negotiated a $1.7-billion project financing deal with an international syndicate of lenders. “Dynatec did such a nice job getting the project to a certain point that other people said, ‘Hey, that’s pretty good, let’s go out and grab that,’” Mr. Shaver says. “We advanced the project to the point that it was a cherry.” Investing directly in mining projects paid off enormously for Dynatec. The “cherry” that was Ambatovy attracted the interest of Sherritt International, which announced a friendly $1.6-billion bid for the company in April 2007. The deal included a proviso allowing Dynatec’s old partner FNX to buy the company’s Mining Services division, which it did in October 2007 for $53 million in cash. Sherritt International retained the Dynatec name. However, it allowed the company to use it for another year. In 2008, Dynatec became DMC Mining Services.
2008-09 recession to today When the global economic recession started in 2008, DMC was the contract miner at SRA Corp.’s Mid-Tennessee zinc mine in Tennessee. The junior found itself in trouble when zinc prices plunged below US70¢ a lb. Luckily, DMC wasn’t caught with any significant debt owing to it when SRA Corp. put the mine on care and maintenance in 2008 and later went bankrupt. While DMC and its parent FNX did make it through the downturn, it took a lot of work to build the companies back up to profitable pre-recession levels. Mr. Shaver, a former vice-president who had left DMC to pursue other opportunities in 2004, was asked by FNX president and CEO Terry MacGibbon to come back to help with FNX in 2008. “Between the time I said I would join and the time I actually joined, which was a couple of months, the mining business got worse and worse,” Mr. Shaver recalls. FNX posted a $389-million loss for 2008, due to writedowns. The mining industry recovered, however, and FNX returned to positive cash flow in the first quarter of 2009. Following the recovery, FNX merged with Quadra Mining in a $1.6-billion, allshare deal in March 2010. At that point, Mr. Shaver rejoined DMC as president and CEO. Less than two years later, Quadra-FNX Mining was purchased by KGHM Polska Miedz´ for $2.9 billion in cash. The deal was completed in March 2012.
HISTORY While the mining industry is again in a slump that started in 2012-13, DMC has seen some good news over the past few years. In 2013, Mr. Shaver won the EY Entrepreneur of the Year Award for Ontario in the category of business services. Winners in this category are judged on their vision, leadership, financial success, innovation and social responsibility. “The competition in our area was quite substantial, so to me it was totally satisfactory to be a finalist and that was sort of the expectation,” Mr. Shaver says. “It’s nice to be recognized.” The work at BHP Billiton’s Jansen project in Saskatchewan, which highlights its commitment to safety and innovation, has been another highlight for the company. For an idea of where DMC is headed in the years to come, it’s best to examine its history. It hardly needs to be said that DMC’s
The site of the Ambatovy nickel laterite project in Madagascar, prior to development. Credit: DMC Mining Services
focus on safety and innovation will continue (See Pages 14-19). And although it has been a good eight years since DMC has owned an equity stake in a mining project, Mr. Shaver says the company is planning a return to that strategy in 2015. “Part of our heritage in the original
Dynatec was we did a lot of mining, including having ownership in parts of those mining operations,” Mr. Shaver says. “That was one of the things that has built more value for our shareholders through the years.” 2010
— With files from George Werniuk, DMC Mining Services’ 30th Anniversary Issue.
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INNOVATION
historic breakthrough at A
JANSEN BHP Billiton’s Jansen potash project in Saskatchewan, where DMC Mining Services is sinking two 1-km shafts. Credit: DMC Mining Services
F
or decades, not much has changed in the way mine shafts are developed, namely drilling and blasting with explosives. During much of the process, workers must stand in a confined environment at the bottom of the shaft, along with jumbos and mucking equipment. There’s nowhere to go if something happens to fall from above. “It’s relatively high risk and historically, the frequency of accidents in shaft sinking has been significantly higher than other parts of mining,” says Bill Shaver, President and CEO of DMC Mining Services. While shaft sinking is much safer than it was 40 years ago — DMC has sunk shafts from start to finish with no losttime accidents — the company is working on a pioneering new project that promises to make such development even safer. In December 2010, DMC won a contract to sink two 1,030-
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metre shafts — a production shaft and a service shaft — at BHP Billiton’s Jansen potash project in Saskatchewan. The work, which will include some underground development work, is expected to last 10 years. In a first for the mining industry, the nine-metre-diameter shafts are being sunk mechanically, using two Shaft Boring Roadheaders (SBRs) — a marriage of tunnel-boring, highspeed vacuum and traditional shaft sinking technology. One of the early objectives of the SBR was to remove workers from the bottom of the shaft during the shaft sinking cycle and reduce the potential for accidents, says Phil Buck, VicePresident and General Manager of DMC’s U.S. operations, as well as the Jansen project. “The motivation from BHP’s perspective was to make some fundamental changes in how shafts are sunk in the world,” he says. “People, generally speaking in the shaft sinking process at Jansen, are not in harm’s way.”
INNOVATION
In a first for the mining industry, the nine-metrediameter shafts are being sunk mechanically, using two Shaft Boring DMC Mining Services workers with the SBR rotating cutting drum at Jansen. Credit: DMC Mining Services
Instead, the SBR allows workers to stand at different platforms or decks above the bottom of the shaft, says Juan Carlos Zapata, head of DMC’s technical services group. “Instead of having people working at the bench when it comes to drilling and blasting and so on, this machine uses a roadheader — basically an arm with a rotating cutting drum that cuts the ground,” Mr. Zapata says. Ground support is installed in one of the decks above simultaneously as the SBR excavates, and material is removed through an automated vacuum system that is controlled remotely with cameras. DMC helped design the SBR in concert with Herrenknecht, a large tunnel-boring company based in Germany, and BHP Billiton for use at Jansen. “What we’re doing there is using a proven technology, but not proven in that sort of configuration,” says Mr. Buck. Using the SBR hasn’t been without issues: DMC has had to make some modifications to the machine to help it adjust to the frozen surface soil it had to excavate at Jansen before reaching harder material. (The project has also involved the installation of a freeze plant to freeze the ground as its excavated, technology that has been used before for shaft sinking in Saskatchewan.) But DMC now has the SBRs running at nearly the same rate of advance as conventional shaft sinking, and the SBR has the potential to actually make shaft sinking faster and more economical as well as safer. “The machine actually has no problem in terms of advancing fast,” Mr. Zapata says. While the crew has experienced some bottlenecks, they are not being caused by the machine, but are due to what the crew needs to do above for ground support and the installation of concrete and services. At the end of 2014, the service shaft had advanced to 230 metres depth, while the production shaft had reached 140 metres depth.
Roadheader (SBRs) — a marriage of tunnel-boring, high-speed vacuum, and traditional shaft sinking technology.
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INNOVATION Shaft pre-sinking preparation at BHP Billiton’s Jansen project. Credit: DMC Mining Services
Hoisting part of the Shaft Boring Roadheader (SBR) at Jansen. Credit: DMC Mining Services
Although BHP has not made a formal production decision yet at Jansen, Mr. Shaver anticipates that DMC will be at work under the original contract for at least another three years to finish the shafts and to complete other underground work and equipment installation. In addition, DMC may be at Jansen much longer if it wins further contracts. For DMC’s crew, it’s exciting to be on the forefront of new, and potentially revolutionary technology. “Usually shaft sinking and underground mining is extremely conservative and any major breakthrough in technology or construction methodologies is very rare,” Mr. Zapata says. “Safety is the biggest priority and if there are some new ideas, they really need to be proven to be safe as well as efficient.”
Mr. Shaver believes tunnel-boring technology will be proven both safer and more efficient, and will become more widely adopted to sink mine shafts in future. “If as an organization, we could be known as the first ones to try this, I think that would be a significant feather in our cap. In the next 30 years, it will be seen as historical.” In the meantime, Mr. Shaver notes that DMC’s participation in such an innovative project was only possible because BHP was willing to take the risk and spend the money to advance the technology to make shaft sinking safer. “In the world today, to be successful in innovation, it takes a whole bunch of like-minded people coming together at the right time, in the right circumstances.” 2010
A track record of innovation Throughout DMC’s history, it has helped its clients apply innovative ideas to their projects, and even created a few inventions of its own. Here’s a sampling of DMC at its most innovative: • In 2011, DMC won a contract to conduct 10,000 ft. of development and to mine 200,000 tons (2,500 tons per day) of ore using Rail-Veyor haulage technology. The technology, an ore-handling system that combines rail and conveyor technology, was used at Vale’s 114 orebody in Sudbury. Outside of a Vale test site in 2008, it was the first time the technology was used in North America. The aim of the project was to prove the viability of the Rail-Veyor to improve the speed of
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trackless development. “Part of the concept is to drive smaller headings because over the last 30 years, the tunnels that we’re driving in mining operations have gotten bigger and bigger,” Mr. Shaver says, adding that larger tunnels slow development and bring challenges with ground support and having to remove more muck at a higher rate. The aim of the project was to see if DMC could drive twin headings — two side-by-side tunnels — at 400 ft. a week. It exceeded that with progress of up to 470 ft. a week. • In 1992, Dynatec developed the Long Round Concept in blasting, an innovation it claimed improved productivity by 20% by improving the productivity of the drill and blast process for
horizontal rounds. The innovation was the use of an in-the-hole hammer to drill a large-diameter cut, or relief hole, in lieu of drilling a multi-hole burn cut simultaneously with the blast-hole drilling cycle. When first tested, 18 rounds were blasted using the 6-metre jumbo that incorporated an in-hole hammer to drill the 250-mm diameter cut. The success of the jumbo was immediate, and extension steel was used to drill 7.6-metre rounds and 9.1-metre rounds to prove the potential of the long round concept. The use of the large-diameter cut hole reduced the skill level required, ensured a more complete break in each round drilled and allowed long rounds to be successfully excavated.
INNOVATION
Technical services’ role in innovation By Juan Carlos Zapata, MBA, P.Eng
Using state-of-the-art technology and application, DMC’s technical services group has developed an industry reputation for innovation and creativity by consistently sourcing class-leading solutions for our clients. The goal of the engineering team, which provides construction and operations solutions and integrated support to operations, is to add value by fully exploiting its shaft sinking and underground mining technical expertise. In recent years, the engineering team has engaged in professional development and education initiatives and a continuous improvement process in all phases of design, including the support of DMC Operations projects and in providing expert technical consultation with major leaders in the mining industry from prefeasibility stage designs to detailed engineering. The team’s evolution through this process has strengthened DMC’s position as a global innovator and leader in the world of engineering and construction. Our core team presents a multi-disciplined approach to design and engineering, with an exhaustive range of knowledge and expertise in major engineering disciplines, including layout, civil, architecture, structural, mechanical, electrical and mining. This expertise, combined with our unique approach to solution finding, incorporates the use of 3-D modelling techniques with the simulation of different scenarios, thus producing a very intuitive and sequential process. This type of analysis has a positive impact towards the completion of complex finite element analyses, as well as simple engineering designs. These
tools were used in the simulation of the ground support installation through a challenging zone at the Jansen project using cast iron tubbing. The majority of our engineering products are supplemented with interactive videos and animations to demonstrate the implementation of high standards and levels of quality that DMC technical services employs. Doing so also provides an efficient and supportive working environment for training, construction, and operations purposes. In order to achieve a competitive engineering advantage, DMC’s technical services division has created a management system focused on the efficiency of systems, resources, technologies and available knowledge. We are recognized for our innovation, expertise, and our ability to align services with the needs of our customers. This competitive advantage is derived from the entrepreneurial spirit of our people — focusing their knowledge and skills on establishing an in-depth understanding of our clients’ wants and needs. Satisfied customers of DMC technical services include: BHP Billiton, Vale, Rio Tinto, Barrick Gold, Goldcorp, and Graymont; as well as several niche junior companies managing smaller mining operations. — J uan Carlos Zapata is the manager of DMC Mining Services’ technical services group. 2010
Proposed headframe and surface infrastructure for a potash mine, modelled by DMC’s technical services group. Credit: DMC Mining Services
• Dynatec and J.S. Redpath were responsible for a new way of shaft sinking that by 1991 was revolutionizing the procedure in Canada. Called “burn cut in full face blasting,” both companies developed it on separate shaft sinking contracts for Falconbridge in Sudbury. (DMC first used the method at Falconbridge’s Craig shaft.) The burn cut is a cluster of parallel holes drilled very close together so that only a narrow rib of rock is left between them. When the holes are blasted, this remaining web is “burned out,” i.e., the explosive reduces the rock to dust. To break successfully, the holes must remain parallel throughout their entire length, which requires considerable skill and experience. The introduction of electric-hydraulic drilling ensured the drilling of a cut that could be relied upon to break, while the full face blast produced
a flat pile of blasted rock creating a more efficient mining cycle and a faster rate of sinking. • In 1985, Dynatec built its own custom carrier for underground raise boring drills. The drills were usually hauled around by load-haul-dump (LHD) vehicles on the back of sledges, but this made manoeuvring difficult in places. Dynatec had this problem on a job at the Ruttan mine in Manitoba, and could not get the drill to where it had to go. A new suitable hauling machine would cost $120,000, so Dynatec built its own custom hauler using the remnants of an old backhoe. The new custom hauler was able to transport any underground equipment – and only cost $40,000.
DMC Mining Services On Your 35th Anniversary CIMCO is proud to have been part of your success and looks forward to playing an integral role in the future. As a global leader in refrigeration, CIMCO has the experience and capability to design and implement the technologies required to meet any refrigeration need.
2010
— With files from DMC’s 30th Anniversary magazine.
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INNOVATION The Ambatovy nickel laterite mine in Madagascar. Sherritt International obtained its 40% stake in the project through a $1.6-billion takeover of Dynatec in 2007. Credit: Sherritt International
BEYOND TECHNICAL
INNOV ATION M ost mining contractors take equity stakes in mining projects only when they have to — that is, during down times when their cash-strapped clients can’t pay the bills. But for the past 15 years, DMC Mining Services has pursued equity ownership in mines as an innovative corporate growth strategy. Through its success as a contract miner at Inco’s Shebandowan mine in the 1990s and then at Goldcorp’s Red Lake mine, the company’s leadership came to realize that it could add value to operations by applying its skills as a contractor. It began looking for opportunities to own equity in mining operations. “What we saw when we ran both the mines in Red Lake and Shebandowan was that the mining business is different than the pure contracting business,” says DMC President and CEO Bill Shaver. “When you’re in the contracting business, it’s all KGHM’s McCreedy West nickel mine, in Sudbury, Ont. Credit: DMC Mining Services
about the schedule and the cost, whereas the mining business is about adjusting, tweaking to make the operation slightly better every day.” First with its 25% owned Sudbury joint venture with FNX Mining in 2002, and then with an interest in the immense Ambatovy nickel project in Madagascar in 2003, DMC has been very successful in building value through equity ownership — as witnessed by a $1.6-billion takeover by Sherritt International in 2007. The advantage to approaching an operation from a contractor’s perspective is that you’re more likely to question the status quo, Mr. Shaver says. “Competition in our business is about cheaper and faster, so what we try and do is take those concepts of cheaper and faster, and bring those across into the mining operation,” he says. “Because of our experience with construction, we can bring some of those innovations and thought processes that we have as contractors back over to the mining side.” Ambatovy was the last mining project that DMC owned a stake in — although its parent company, KGHM owns several large mines and projects. While the company is looking at opportunities, it will wait until the time is right to pull the trigger, says DMC’s Chief Financial Officer, Brian Cooper. “With the recent pullback in mining and also Bill (Shaver)’s appreciation that he can add a lot of value to a property just by managing it and operating it — it is part of our strategy to purchase some mining assets,” Mr. Cooper said. “Having said that, the environment’s difficult for us, too, so we’re weighing that off against our need to be concerned about our capital.” 2010
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SAFETY
SAFETY FIRST:
Work at Upper Banshee, at Barrick Gold’s Goldstrike property. Credit: DMC Mining Services
BEYOND ZERO HARM
D
MC Mining Services has established a serious reputation for safety, says Gord Graham, DMC’s Chief Operating Officer. “We are hands down the industry leader in terms of safety in the contracting business,” he says “It’s not just something we talk about, it’s something we live every day.” Mr. Graham credits DMC’s top leadership for creating that reputation and DMC’s on-site supervisors who lead by example every day for sustaining it. “The organization has attracted people that really believe in the safety values element of it and really believe that you can attain a really high level of excellence in that area and that’s just kind of propagated itself,” he says. While Mr. Graham makes it sound easy, DMC’s management has worked hard to instil that culture of safety by setting up systems of accountability and by facilitating communication around workplace hazards, including through daily safety meetings at job sites. Through the years, DMC has been recognized many times for its health and safety efforts. It was runner up in the Ontario government’s Workplace Safety North (WSN) workplace safety excellence audit in 2013, and won awards for having the lowest total medical injury frequency performance in 2011, and for workplace self assessment in 2011. In 1993, as Dynatec, it won awards for accident reduction and having the fewest compensable accidents from the Quebec Association of Mining Contractors. In 1989 and 1988, it won three major awards for safety and accident prevention performance in Ontario and Quebec, and also received trophies for the best safety record in Quebec and in Ontario. And in 1987, the company received a 5-star rating at the standard level of the International Mine Safety Rating System
following an external audit by the Mines Accident Prevention Association of Ontario. However, Jordan Vince, who until February was DMC’s Vice-President of health and safety, says he doesn’t place much importance on awards. Mr. Vince says such awards are usually based on lagging indicators such as total recordable injury rates and lost-time injuries — which mean someone’s already been hurt. Instead, DMC is trying to encourage more reporting to collect leading indicators such as near misses in the workplace. Having this information will help management understand what needs to be improved so future accidents can be prevented. While having an excellent safety record is certainly an advantage in the competitive mining services business, the drive behind DMC’s safety efforts has been protecting its own people moreso than impressing clients. To that end, the company already has a philosophy at its core of Zero Harm to its own employees. However, Mr. Vince says DMC is aiming even higher. “What we’re starting to see is that Zero Harm may not be good enough anymore — that we have an opportunity
to look beyond Zero Harm and find ways to provide a workplace and work environment for employees where they essentially leave better than they came.” What this will look like is still uncertain at this point, says Mr. Vince, acknowledging that the concept is still somewhat nebulous. But what is certain is that DMC will continually look to improve. “We never really seem satisfied with what we’re able to achieve and to me, that’s the mark of a high achiever,” Mr. Vince says. 2010
DMC Mining Services’ crew at Cameco’s Cigar Lake uranium mine, in Saskatchewan. Credit: DMC Mining Services
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SERVICES DMC Mining Services’ head office in Vaughan, Ont. Credit: DMC Mining Services
DMC’s Mining Services Contract Mining DMC has a long history as a safe and efficient contract miner, including at Inco’s Shebandowan mine in the second half of the 1990s, and at Red Lake in the early 2000s. Today, the company continues to provide comprehensive services ranging from reserve assessment, mine feasibility and underground mine design, including mine shafts, ore and waste handling systems, mine dewatering systems, backfill systems and ventilation systems. It also advises on equipment selection and procurement. Once the feasibility and design of an underground mine has been established, DMC is able to develop and operate the mine with its equipment, trained personnel and management systems. Where it assumes responsibility for mine operation, DMC hires staff, develops production budgets and schedules, produces reports, maintains regulatory permits and filings, manages operating staff and assumes overall responsibility for safety and loss control. Mine Shaft Sinking Mine shaft sinking is one of the most critical and technically difficult aspects of underground mine development and construction. A mine shaft must be completed and commissioned for a deep mine before any other underground mine development can begin.
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SERVICES Accordingly, mine owners place a premium on rapid sinking schedules. DMC has the experience, skilled workers and the specialized techniques and equipment necessary to complete technically difficult projects, such as those involving poor ground conditions or extreme depth, on time and on budget. The company has a history of innovation and continuous technical improvements, such as its patented Long Round Jumbo (See “A track record of innovation,” Page 16), which has increased the speed at which shafts can be completed. It was also chosen as the contractor to sink two 1-km shafts at BHP Billiton’s Jansen Potash project, using innovative new technology that it contributed to developing (See Page 14).
DMC’S CURRENT AND RECENT MAJOR CLIENTS: Barrick Gold: Upper Banshee at Goldstrike and Turquoise Ridge (Barrick-Newmont Mining JV) gold mines in Nevada BHP Billiton: Jansen potash project in Saskatchewan Cameco: Cigar Lake uranium mine in Saskatchewan Coeur Mining: Kensington gold mine in Alaska Goldcorp: Red Lake gold mine in Ontario Graymont: Pleasant Gap lime operation, in Pennsylvania Intrepid Potash: Carlsbad potash mine in New Mexico KGHM: Victoria nickel-copper project in Ontario
Mine Development Using its shaft sinking expertise, DMC is able to offer a bundle of related services, including lateral development work consisting of access ramps, declines, drifting and crosscutting.
North American Salt: Cote Blanche salt mine in Louisiana
Mine Construction DMC’ s mine construction services involve specialized activities related to both surface and underground mine construction. The company’s mine construction work has included: refuge stations, underground explosives magazines, underground shops, crushing and conveying systems, sumps and dams for mine dewatering systems, ground stabilization, and grout injection and backfill.
Vale: Copper Cliff North nickel mine in Ontario
Civil Construction DMC also provides services to customers in the civil underground construction industry. DMC has completed underground work for hydro-electric facilities (powerhouse and tailrace tunnel excavations, tunnel rehabilitation) ground stabilization and construction work for The Sudbury Neutrino Observatory, and established a freshwater reservoir and collection system for a resort by installing a concrete bulkhead and piping system in an adjacent abandoned mine. DMC also built a pedestrian walkway and utility tunnel under a main street in downtown Salt Lake City. Most recently, it’s done some raise boring work for J.F. Shea in Atlanta and has just begun to do some raise boring work on a big sewer project for J.F. Shea in Indianapolis. Raise Boring and Raise Excavation Raise boring is a continuous, mechanical method of excavating vertical, or near-vertical holes between two levels of an underground mine. The holes can be used for ventilation, manways, and ore and waste transportation. Raise boring techniques are also used to excavate various raises and shafts for civil construction projects. Raise boring is a substitute for traditional raise excavation methods and has a number of advantages that make it preferable in certain applications. In particular, raise boring leaves smooth walls allowing for more efficient ventilation. Raise bored holes can also be used for hoisting or egress shafts. Raise boring is generally considered a safer, faster and more cost effective means of excavating raises than more traditional
Richmont Mines: Island Gold mine in Ontario Rio Tinto: Kennecott copper mine in Utah Tata Chemicals: Green River soda ash mine in Wyoming Xstrata: Fraser nickel-copper mine in Ontario
drilling and blasting methods. DMC has a fleet of nine raise boring machines, over 7,500 ft. of drill pipe and 16 reamers with capabilities from 28 inches to 20 ft. in diameter. The smallest drills operate in only 12 ft. of headroom. Since 1982 DMC has reamed over 250,000 ft. domestically and internationally. DMC also owns and operates a fleet of mechanized raise climbers. Engineering Services DMC’s evaluation and design services include concept, prefeasibility and technical engineering. The company’s technical engineering capabilities cover all the major disciplines (mining, civil, electrical, structural and mechanical). DMC provides technical engineering services to assess and optimize mining projects. The group’s expertise includes: mine planning (conceptual/ feasibility/detail); equipment evaluation; mine and facility design; flow sheet layouts; material handling; ancillaries/utilities design; design of transportation systems; and cost estimating. (See Page 17 for more on Technical Services.) 2010
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PEOPLE
DMC’sPeople Bill Shaver Bill Shaver is President and CEO of DMCP Mining Services and was a founder of its predecessor company, Dynatec Mining Limited. His biggest goal for DMC is that it be recognized for the work it’s done around safety. Mr. Shaver also believes it’s part of DMC’s duty as a successful business to help young people get experience in the mining industry. DMC has an engineers in training program and has hired many young people that have participated in it. Mr. Shaver is clearly proud of what he and the entire crew at Dynatec/DMC have accomplished over the years. “I think the fact that we’ve been reasonably successful for 35 years and have had lots of really good people working for the organization, I think that’s what we aspired to do.”
Gord Graham Gord Graham, Chief Operating Officer and Senior Vice-President, joined DMC in July 2014. He oversees all operational and contracting activities in Canada and the U.S., including raise-boring and engineering work, with the exception of the Jansen project. Being relatively new to DMC, Mr. Graham is in a unique position to pinpoint the areas where DMC has a competitive advantage over its rivals: “Safety, innovation, and I would say also we’ve got a really, really good leadership group here and that the company’s just full of really high-quality people.”
Brian Cooper Brian Cooper, Chief Financial Officer and Senior Vice-President, joined DMC in July 2013. He’s responsible for managing the company’s finances in what has been a difficult environment. Mr. Cooper joined DMC because of its culture of putting people first. DMC has been cutting back on spending given the downturn in the mining industry, but Mr. Cooper says that having a very large parent company that has access to capital, KGHM
´ has softened the impact. Polska Miedz, Aside from a commitment to safety, innovation, and people-development, Mr. Cooper says that one of DMC’s core values is developing win-win relationships with clients. “We want the client to do better — when the client does better, we do better as well.”
Phil Buck Phil Buck joined DMC as General Manager U.S. Operations and VicePresident in February 2013, working out of the Salt Lake City office. Over more than 30 years in the mining industry, he has worked for J.S. Redpath, DMC predecessor Dynatec and as an independent contractor. Mr. Buck says he’s proud of DMC’s safety record as well as how good the company has become at tracking and managing its costs. “I think that’s what the industry is looking for: safer, faster, cheaper.” He also raves about his workers, who recently completed tough jobs fixing a ventilation raise bore hole that had collapsed at Barrick Gold’s Upper Banshee project at Goldstrike in Nevada, and sinking a 1,400-ft. shaft at Tata Chemicals’ Green River mine in Wyoming. Buck says one thing that hasn’t changed at DMC over its 35 years is its can-do spirit: “That tradition of ‘we can do this’ is still there.”
Richard Paley Richard Paley, Director of Support Services, joined DMC in 1995. He’s responsible for all major contracts and procurement, and when DMC wins a big job, Mr. Paley has to source equipment, supplies and services — fast. “Typically what happens is a lot of activity happens very quickly — they want us to start very soon so any contracts and procurement have to get up to speed very quickly,” he says. Depending on the size and scope of the project, this activity could go on for several years or months. Mr. Paley also sometimes works with DMC’s estimating group to put together bids in response to requests for quotations. “Every contract is like starting a different job — it’s like moving to a different company and starting fresh. It’s exciting, challenging,
and very rewarding to be working in a mining contract environment.” Over the years, Mr. Paley says one of the biggest trends he’s noticed has been in social responsibility: it’s become a best practices expectation by clients to identify supplier companies that are owned by or employ First Nations people.
Juan Carlos Zapata
Juan Carlos Zapata, Man-
ager, Technical Services joined DMC in mid-2012. He was attracted by the opportunity to help the company grow from a smaller to medium-size player. He also wanted to be part of the company’s innovative contributions at BHP Billiton’s Jansen project, where DMC is sinking a shaft mechanically for the first time in the industry. “It’s been a very interesting project and certainly in my mind, it’s almost a game changer in the shaft sinking industry.” Mr. Zapata’s group works closely with the operations and construction groups to provide engineering solutions to the construction projects. “We are a very small percentage in terms of cost, but we are critical in terms of the solution and eventually what the construction success is going to look like.”
Rob Mundy Rob Mundy, Area Manager, Raise Boring, was hired on at Dynatec in October 1985, and has been with the company ever since. He looks after all aspects of raise boring, including operations, safety, major purchases, planning and estimating in Canada, the U.S. and Mexico. Of nine raise-boring machines available for work, four are deployed: one at Goldcorp’s Red Lake, two in Mexico, and one at a J.F. Shea civil project in Indianapolis. Mr. Mundy says that DMC does such a good job on safety because it’s something that is always in the conversation and top of mind. “You can send memos all you want but they get tacked up on a board and a lot of times nobody pays attention to them,” he says. “Leading by example is probably the best way. When you go to a site, make sure that you’re doing what you want your people to do.” 2010
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CONGRATULATIONS
on
35 Years of
Excellence The Northern Miner is proud to build and maintain strong relationships with mining industry leaders such as DMC Mining Services.
100 Years
OBAL MINING NEWS OF GL
Congratulations DMC Mining Services! Happy 35th Anniversary
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