Small Mine Development by North American Constructors Journal

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Small Mine Development:

Premier provider of underground mining solutions Established in 1982, Small Mine Development (SMD) is a prominent underground mining contractor that has built and operates some of the largest mines in the United States. Written by Kevin Doyle Produced by Stephen Marino

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stablished in 1982 by Ron Guill, Small Mine Development (SMD) is a prominent underground mining contractor with headquarters in Boise, ID. The company has built and operates some of the largest mines in the United States and is renowned for its array of services and solutions. A consortium of senior managers bought SMD in 2010 and the company is now under the direction of General Manager and Chief Operating Officer Keith Jones, continuing the mission to be a leader in providing safe, productive and innovative solutions. Today the company employs 400 with annual average revenue of approximately $100 million while offering a myriad of mine development, production mining, and technical services. The company is versatile enough to handle a client’s entire project or to assist with specific portions. SMD’s suite of services includes: • Mine Development: mine design, portals, ramps, conventional and Alimak raises, underground infrastructure (shops, electrical, pumping), shotcrete (wet or dry) and definition drilling. • Production Mining: long hole and drifting methods; with or without backfill. • Technical Services: permitting assistance, engineering and

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Small Mine Development | 4 underground grade control surveying. Jones says that versatility, coupled with the company’s knowledgeable work force, sets it apart from competitors. “I think it is the culture and the people. We love what we do. All we want to do is mine and we love the challenge. We have skilled management, we have skilled people breaking the rock and people like working with us because we have all the tools,” Jones said. “We have an extensive equipment fleet and the tools to do the job. What differentiates us is what we are able to bring to the table.”

Top Shelf Safety SMD already had sound safety

Small Mine Development | 5 measures in place when it when it was exposed to a program used by one of its client-partners, the Newmont Mining Companies “Safety Journey” in 2011. SMD adopted the program and completed its training in 2012. The program focuses on four key areas – Safety Leadership, Injury Prevention, Fatality Prevention and Health and Wellbeing. “It is a good program for us. That program focuses on company culture and driving beliefs and actions in the workforce. That happens throughout the organization. There is an emphasis placed on safety at all levels,” Jones says. SMD’s own “Vital Behaviors” initiative

aims to create 24/7 safety awareness on the job and at home. “The program focuses on motivations and abilities and how you approach things on a daily basis. Beyond that you have weekly safety meetings, daily lineout meetings, five-point surprise inspections as well as planned inspections and task training so that you’re thinking about safety minute by minute,” Jones explains. “You need to have the right tools. If you see something unsafe, you address it. You don’t walk past it. You need to work with a good attitude and lead by example. You need to turn your safety mode on the second you are on the job and let it follow you through the day and not shut it off. Let it go home with you,” he adds. The company’s abundant safety recognition includes a pair of Sentinels of Safety awards from the National Mining Association: • 2016 – Nevada Mining Association’s Medium Underground Operations, Medium Catergory (100-299 employees), Third Place at the SSX Mine. Crews here worked 257,056 hours with one reportable incident. Small Mine Development received the Small Underground Operations Second Place at the Lee Smith Mine. Crews here worked 170,922 with one medical reportable. The Nevada Mining Association also awarded the

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Small Mine Development | 6 personal Safety Award to Keith Jones for General Manager of the Year. • 2015 – Nevada Mining Association’s Contractor Operator Award with zero injuries at the Chukar Mine. • 2014 – Sentinels of Safety Winner for the Large Underground Metal Group at the Lee Smith Mine. A total of 174,074 hours were worked injury free. • 2013 – Nevada Mining Association’s Underground Operations, Small Category (20-99 employees), First Place at Starvation Canyon Mine. Crews here worked 82,000 hours injury free in 2013. • 2013 – Nevada Mining Association’s Underground Operations, Small Category (20-99 employees), Third Place at Starvation Canyon Mine. Crews here worked 185,000 hours with one injury for a Reportable Rate of 1.09 in 2013. • 2012 – Sentinels of Safety Winner for the Small Underground Metal Group at the Fire Creek project. A total

“

I think it is the culture and the

people. We love what we do. All we want to do is mine and we love the challenge … People like working with

“

us because we have all the tools. - Keith Jones, GM and COO

www.undergroundmining.com

of 45,715 hours were worked injury free. • 2011 – Sentinels of Safety Winner for the Small Underground Metal Group at the Fire Creek project. The portal pad, infrastructure, portal and 2,000 feet of drifting were completed while working 27,250 hours. • 2010 – SMD worked over 585,000 man-hours without an LTA or permanently disabling injury.

On The Job The company has a long-running relationship with Newmont with work at The Leeville Mine, a large underground complex; The Vista Exploration Project as part of the Twin Creeks underground project; and a

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return to Chukar, where SMD first worked in 2002. Work for privately-held Jerritt Canyon Gold includes the Lee Smith Mine, the cornerstone of the Jerritt Canyon Complex and the SSX Mine purchased out of bankruptcy in 2015. SMD is now Jerritt Canyon Gold’s mining partner at the site. “We have been on that property since 2010 and it has been important for us, a key piece of the work that we have done,” Jones says. The company is also bidding for several other large projects and in June 2017 was appointed mining contractor for the Dateline Resources Ltd. Gold

Links Mine project in Colorado. The company most often works on fixed dollar contracts paid per foot of development and foot ton of materials. “We try to avoid T&M type charges because you can ruin the economics if you don’t follow T&M cost so the client can actually plan,” Jones points out. While technology has its place with regards to communications and ventilation systems, Jones says: “We see that people try to replace common sense and decision-making with technology, that automated equipment will lead to a safer industry. Obviously, that is not entirely true. We won’t adopt technology just to do it but we want to be on the leading edge as it

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Small Mine Development | 8 benefits the company.” Given the disruptive nature of the industry, the company is cognizant of its environmental impact and maintains an excellent working relationship with regulatory agencies. SMD most often works directly with is clients to make sure that policies and procedures required for permit compliance are met. The company benefits from its membership in both the National Mining Association (NMA) and the Nevada Mining Association (NVMA). “The role that they play is trying to abreast of the key items and measures that impact the industry in one form or another. I think that’s the biggest thing,” Jones says.

People, Training and Challenges As is the case with every sector of the broader Construction industry, acquiring and retaining talent is an ongoing struggle. “That’s a big one. We are all competing for the same guys and we are all trying to develop new talent and build our own champions,” Jones says. Jones feels the SMD culture is one that attracts talent. “There are 400 people here that like what they’re doing and feel part of

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something bigger. When you reach out to bring in talented people, they want to be part of that. We do a lot of training because the only way we grow is grass roots and by bringing in new staff and growing our own champions,” Jones stresses. Empowering employees to challenge and reward safe operation and allowing them to make decisions is a key component of SMD’s success. “If you give people the autonomy and ability to make decisions, they will thrive and make good decisions. If we look at ourselves [as a company] we will learn,” Jones says. Looking ahead, SMD is well positioned

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“

If you see something unsafe, you

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address it. You don’t walk past it. You need to work with a good attitude and lead by example. You need to turn your safety mode on the

“

WE BELIEVE IN CHANGING MORE THAN JUST TIRES.

second you are on the job and let it follow you through the day and not shut it off. - Keith Jones, GM and COO

and Jones expresses confidence that the breadth of SMD’s offerings and expertise will allow it to keep taking on challenges while remaining at the industry’s forefront. “Literally everything has to be grown and mined. People depend on it,” he concludes.