The Economic Review, August 2015

the

ECONOMIC

review

CANADIAN EDITION

VOL. 1 • AUGUST 2015

CEMENTATION Our vision to focus on safety NEXGEN

VANADIUMCORP

“Power to change our world” AUGUST 15 VOL 1 • ISSUE 2

EVOLUTION

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I nspi re d by Ec onom ic Growth

“The story of Canada’s uranium mining industry is one which goes back 70 years.”

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James Martin CEO jmartin@evolutionbusinessmedia.com Zachary Smith Creative Director Djamil Benmehidi Editor-in-Chief Yohan Jayasooriya Editorial Director yohan@evolutionbusinessmedia.com Hannah Stewart Accounts Director hstewart@evolutionbusinessmedia.com Contact Evolution Business Media Ltd 170 – 422 Richards St Vancouver, BC V6B 2Z4, Canada 604 283 1823 UK Office Evolution Business Media Ltd Cedar House 41 Thorpe Road NORWICH NR1 1ES United Kingdom Canadian Office Evolution Business Media Ltd 170 – 422 Richards St Vancouver, BC V6B 2Z4 Canada 604 283 1823

T

he Economic Review covers the ever “Evolving” trends of the mining industry within Canada. It features a range of aspects, from geologists, to prospector’s producers and equipment suppliers.

The August Edition of the Economic

Review has a wide rage of topics, from mine construction to uranium producers, steel strengthening and power producers.

Our main feature, Cementation Canada focus’s on safety within the mining industry, a $54billion industry that employs 380,000 within Canada, safety is a big deal.

Mining is an industry fraught with danger up to this very day, with underground mining and shaft sinking, in particular the most dangerous.

Back in the sixties it was a given that a life would be lost for every 100m sunk, 25 years ago it was expected to be 1 in every 1000m sunk.

Things have changed as a result of technology and Roy Slack, President of Cementation Canada talks in detail about how his company has an outstanding reputation for safety.

Cover image provided by Cementation Canada. the

ECONOMIC

review

CANADIAN EDITION

VOL. 1 • MAY 2015

MAKE NO MISTAKE ABOUT IT

Canada is a heavyweight inthe global mining sector

MAY 15 VOL 1 • ISSUE 1

EVOLUTION

BUSINESSMEDIA

I nspired by E c onom ic Growth

EDITOR IN CHIEF-Djamil Benmehidi

E DI TO R ’S NOTE

EVOLUTION

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CEMENTATION

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GLOBAL ECONO MY

TSM AWARDWINNERS

FOR ENVIROMENTAL EXCELLENCE AND COMMUNITY ENGAGEMENT ANNOUNCED

F

Vale, Dominion Diamond Corporation and Diavik Diamond Mine get top nods for 2015 TSM Excellence Awards

or their innovative projects that raise the bar for corporate responsibility in the Canadian mining sector, Vale, Dominion Diamond Corporation and Diavik Diamond Mine Inc. were recognized with the 2015 Towards Sustainable Mining (TSM) Awards yesterday at the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Awards Gala in Montreal.

Dominion Diamond Corporation and Diavik Diamond Mine Inc. were jointly awarded the 2015 TSM Environmental Excellence Award for their Joint Regional Grizzly Bear DNA Program in the Northwest Territories. Vale’s Manitoba Operations was recognized with the 2015 TSM Community Engagement Award for its involvement in the Thompson Economic Diversification Working Group.

“Out of seven impressive finalists for this year’s awards, these two projects shone for going beyond what was expected, for engaging

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extensively with community stakeholders and incorporating traditional knowledge, and for creating significant benefits for the communities where they operate,” said Pierre Gratton, President and CEO, the Mining Association of Canada. “With the TSM Awards, we congratulate and recognize Vale, Dominion Diamond Corporation and Diavik Diamond Mine Inc. for being positive catalysts of change in their communities.”

TSM Environmental Excellence Award 2015 Winner: Dominion Diamond Corporation and Diavik Diamond Mine Inc. When regulators, monitoring agencies and community stakeholders asked for a grizzly bear monitoring program, the Ekati Diamond Mine (operated

by Dominion Diamond Corporation) and the Diavik Diamond Mine (operated by Rio Tinto) responded by developing a new program that went over and above their environmental monitoring requirements. The Joint Regional Grizzly Bear DNA

Program was designed to assess bear population trends and to determine if mining-related activity influenced the relative abundance and distribution of grizzly bears over time.

Following a successful pilot study, the program began its initial two-year phase in 2012 and the gathering of baseline population data was completed in 2013. The study area covered 16,000 km2 of the Central Barrens encompassing the two mine properties. The area was split into a 12x12 km grid with one post located in each grid square, for a total of 112 posts. Traditional knowledge was sought by community elders and land users for the posts’ development and placement. The posts were constructed with mechanisms to bait the bears, which would result in hair samples being left behind that were then collected for DNA analysis. A total of 1,902 hair samples were collected in 2012, and 112 grizzly bear individuals were identified. In 2013, this number rose to 4,709 samples

G LO BA L E CONOM Y

and 136 grizzly bear individuals were identified, 39 of which had no previous detections.

The results suggest a detection frequency of 9 to 11 bears/1,000 km2, above estimates from the 1990s where the frequency was 3.5 bears/1000 km2, indicating a stable or increasing bear population in the region.

This project, the largest grizzly bear DNA program in the Northwest Territories, was the first major collaboration between diamond mines in the region.

Recently, De Beers’ Snap Lake mine and Gahcho Kué project have come on board, doubling the initial study area to over 30,000 km2. Based on its success, the Government of Nunavut has also deployed similar programs at Back River, Hackett River, Courageous Lake, Izok, Hope Bay, and in the Eastern Arctic.

“Dominion Diamond takes our responsibility to the environment, wildlife, and the surrounding communities seriously, and it is gratifying to be recognized for those efforts at a national level,” said Brendan Bell, Dominion Diamond Corporation’s Acting Chief Executive Officer.

“This program is a great example of how collaboration adds significant value and benefits everyone. Collaborating with our partner, Dominion Diamond, allowed the program scope and area to be increased significantly.

Collaborating with our community partners allowed us to incorporate Traditional Knowledge ensuring the program’s success,” Marc Cameron, President and COO, Diavik Diamonds (2012) Inc. TSM Community Engagement Award 2015 Winner: Vale’s Manitoba Operations In November 2010, Vale’s Manitoba Operations in

Thompson announced that it would scale back its operations to mining and milling only by 2015.

Recognizing the importance of mining to the region’s economy, Vale immediately set to work to mitigate possible community risks of the partial decommissioning project – a full five years before it would occur. In 2011, Vale engaged and fully funded rePlan, co-launching a multi-stakeholder group, the Thompson Economic Diversification Working Group (TEDWG), that would work collaboratively on action plans to spur economic development and diversification in the region.

The TEDWG involved a broad set of stakeholders, including representatives from Vale, Keewatin Tribal Council, Manitoba Keewatinowi Okimakanak, Nisichawayasihk Cree Nation, the City of Thompson, the Manitoba Métis Federation, the Province of Manitoba, and the Thompson Chamber of Commerce. They were united in one common purpose: to accelerate Thompson’s development as a regional service centre for Northern Manitoba, with mining as a strong economic pillar.

Priorities were determined through community engagement and included housing, education and training, regional identity and tourism, economic development, and infrastructure, among others. Over the course of two and half years, the TEDWG’s work resulted in the development of socio-economic action plans and a regulatory framework that are currently being implemented, as well as enduring relationships that were built upon 20,000 hours of inclusive and respectful engagement. Vale’s total investment in the TEDWG was over $2 million, and the process

has been widely celebrated as best practice. In fact, the “TEDWG way” has become a common phrase in Thompson for how to bring people together to create positive socio-economic change and the model is currently being applied elsewhere in Manitoba.

“This is an accomplishment which reflects not only Vale’s investment in the community, but also the tremendous contributions of stakeholder representatives into the Thompson Economic Diversification Working Group process over two and a half years.

Vale’s Manitoba Operations are proud to have been a part of such an innovative, collaborative, and inclusive process that resulted in the development of ready-toimplement social and economic action plans for Thompson and the region. We sincerely appreciate the efforts of every person that participated in the process so that our community can grow to become even more prosperous and sustainable, right alongside our operations. We know that in working together, Thompson’s potential is truly unlimited,” Lovro Paulic, Vale’s Manitoba Operations.

A total of 16 nominations were submitted by mining companies that participate in the TSM initiative. The selection committee, comprised of members from MAC’s independent national community of interest (i.e. stakeholder) advisory panel, selected the finalists based on criteria such as innovation, involvement of and engagement with communities, and project outcomes. TSM performance was also considered as an indicator of the company’s ongoing commitment to corporate responsibility.

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GLOBAL ECONO MY

EXPLORATIONandMINING

industry calls for government collaboration on key challenges

Industry highlights top priorities at the Energy and Mines Ministers’ Conference

July 20, 2015

A

s Canada’s Energy and Mines Ministers meet for their 72nd annual conference, Canada’s exploration and mining industry is asking governments to turn their attention to several areas that are challenging the sector during this period of economic downturn and uncertainty.

A brief submitted by the Canadian Mineral Industry Federation (CMIF), prepared by the Mining Association of Canada (MAC) and the Prospectors & Developers Association of Canada (PDAC), detailed three policy priorities that will help the industry overcome current challenges and capitalize on the opportunities before it: Address challenges in the transition to Canada’s new regulatory regime and clarify the duty to consult

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• Ensure sufficient capacity across federal departments to conduct timely environmental assessments and improve federalprovincial coordination.

• Clarify and improve the Crown’s duty to consult and accommodate Aboriginal communities, particularly issues related to ambiguity, unpredictability, discrepancies between Crown consultation policies / guidelines and consultation in practice, and provincial/territorial-federal coordination.

Address the higher costs of operating in remote and northern Canada • A recent industry study has revealed that the cost to build new mines is as much as 2.5 times higher in northern Canada compared to more centrallylocated regions, while remote mineral exploration can cost

as much as six times that of non-remote projects. This cost premium is largely attributed to the lack of critical infrastructure in these regions, such as ports, power and roads.

• Governments should work together to invest in nationbuilding northern infrastructure, and use fiscal tools to facilitate private-sector infrastructure investments to catalyze remote exploration and new mining investment.

Help juniors to secure access to capital • Adopt and enhance fiscal incentives that sustain grassroots mineral exploration in order to maintain the pipeline of projects that could become mines.

• Reform the fragmented and complex securities regulatory system in Canada to support cost-effective ways to raise capital

G LO BA L E CONOM Y

and help maintain Canada’s global leadership in mining equity finance.

QUOTES: “Despite the current downturn, the industry continues to make enormous contributions to the social and economic well-being of Canadians. However, these contributions cannot be taken for granted. Working in partnership with industry, governments can take concrete steps now to position the sector for future success so that, together, we can seize growth opportunities at the earliest signs of the next upturn,” said Pierre Gratton, President and CEO, MAC. “To compete globally, Canada must work to remain attractive as a destination for investment in mineral exploration and development. Canada must also maintain the components of the ecosystem that make the Canadian

minerals industry unique, namely its world-class exploration and supply sectors, financing expertise and reputation as a consistent and stable jurisdiction in which to explore, build and operate mines,” said Rod Thomas, President, PDAC. To read the CMIF brief in full, please click here.

About the Mining Association of Canada (MAC) The Mining Association of Canada (MAC) is the national organization for the Canadian mining industry. Its members account for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semifabrication. Please visit www. mining.ca.

About the Prospectors & Developers Association of Canada (PDAC) The Prospectors & Developers Association of Canada (PDAC) is the national voice of Canada’s mineral exploration and development industry. With a membership of over 8,000, the PDAC’s mission is to promote a responsible, vibrant and sustainable Canadian mineral exploration and development sector. The PDAC encourages leading practices in technical, environmental, safety and social performance in Canada and internationally. PDAC is known worldwide for its annual PDAC Convention, regarded as the premier event for mineral industry professionals. The PDAC Convention has attracted over 25,000 people from 125 countries in recent years and will next be held March 6-9, 2016, in Toronto.

Please visit www.pdac.ca

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“

“

POISED FOR THE NEXT BOOM!

IOS

IOS O

n the back of Canada’s substantial mining prowess, and the country’s wider role as a major commodities exporter, the rigorousness of the TSX saw the Canadian economy soar, and buck the negative trend during the global financial crisis as the economies of its G8 counterparts withered.

Make no mistake about it – Canada is a heavyweight in the global mining sector, as demonstrated by the fact that it is home to 1,300 mining and exploration companies, which accounts for nearly 75% of all such companies globally. With this in mind, it goes without saying that the business of servicing the mineral exploration sector is competitive, and IOS Services Géoscientifiques works hard to live up to its mantra of ‘Integrity, Originality, Service’, in order to remain head and shoulders above the competition.

“We are dedicated to mineral exploration - we have never deviated from this,” Rejean told us.

“We are a thoroughly independent firm of geological consultants and mineral exploration contractors which provides a wide range of services to the industry, ranging from junior mining companies to major international companies.”

“Our core business is mineral exploration on a contract basis.

We provide a broad range of services, which are divided into 3 main branches: consulting, logistical support, and laboratory

By: Djamil Benmehidi - ER Magazine services. IOS Services specialises in remote projects with complex logistics and non-conventional commodities.”

In an industry where competition is rife, it is essential that you fill niches which will continually attract new business - IOS has achieved this through being much more than your run-of-the-mill exploration consultancy and services provider. A key strength is that the company acts as the unique gateway into Quebec - a distinctive province with distinctive rules compared to the rest of the country, and thus, a tricky market to enter.

“We worked on over 1,200 projects in Québec– we have achieved this through offering in-house, multi-skilled, turnkey services. Half of our work comes from international clients from all over the world, but who are working in Québec. Aside from language and regulation issues, operating a project in Québec requires logistical skills as well as a network. It’s something that our clients from other provinces, or further afield, appreciate to have somebody like us onside who can help them navigate.”

“We act as a door in, if you will, and help companies coming into Quebec - by using us they don’t need to invest time and resources in building their own network and knowhow, saving precious resources for exploration strategies.”

As anybody within the Canadian mining sector will confirm, this is

a ‘brutally’ cyclical industry. Since the founding of IOS 23 years ago

by Rejean Girard and a team of his fellow post-graduates, the company has witnessed four major recessions first-hand. But unlike more conservative-minded rival companies, who have been unable to adapt to the rigours of an industry which is in a perennial state of flux, IOS has not merely survived the booms and busts but thrived.

According to Rejean, the reason for this is simple – build up your resources and prepare for the coming financial storm during the good times, and then capitalise when the market is in the doldrums by expanding and investing in staff, equipment, and R&D. “Once you’ve experienced four major collapses of the industry like we have, and bounced back each time, you realise the importance of preparing for a collapse, especially at the crest of a boom. Then, when the doldrums comes in, you are well-placed to build up, consolidate, and invest. This way you get ready to take advantage– the deeper the collapse, the bigger the boom and the rewards that come with it.”

And invest IOS Services must.

Mineral exploration is not only a risky business but an expensive one – in light of this, it is easy for the conservative minded to focus more in the present, aka field operations, rather than invest in the new equipment and technologies which are the lifeblood for any company

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IOS

which aspires for longevity. But whereas the Canadian service sector is known for its safety-first, conservative outlook, Rejean and IOS are unusual, in that they are willing to take a calculated risk and take pro-active steps to invest in their future.

On this, Rejean notes: “Our industry is currently facing the worst recession in 40 years. Access to capital from the stock market has dried up. Small companies are currently undercapitalised, while large one are socking away. Look at the performance of the Dow Jones – why investing in penny stocks while blue chips offer great returns on investment? So, no more risk capital! The current recession will go on for a minimum of 18 months but we are prepared.”

He continued: “We are currently investing in mastering new technologies while we have the time for it. We’ve just bought an automated electron scanning microscope, so that we can

perform applied mineralogy.

This is a million dollar machine, and during a boom period we would not have been able to learn how to put it at work. Having this technology will reposition many aspects of our business. By building up our toolbox in this way, we have given ourselves a boost which will help put us ahead of our competitors when the industry starts to boom again.” Following this acquisition, for example, IOS will be able to analyse soil samples for their metal content, in order to trace back the origins of these metals – this is an exercise which is an industry first.

Such investment in equipment doesn’t stop here, however, as is illustrated by the fact that IOS has recently invested heavily in the development of a remarkable new all-terrain vehicle. The Kaskoo-X04 will make negotiating Canada’s vast and inhospitable tundra, swamps, and mountainous regions a great deal easier and

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cheaper. The Kaskoo-X04 project, completed in partnership with L’Équipe Fabconcept, will mean that, when engaged in certain remote projects, IOS can operate in the field without having to resort to the use of helicopters, which are staggering expensive to run – operation costs tumble as a result.

In addition to this new tech, IOS Service has also recently achieved another new technological first: a geothermal temporary camp heating system - a new system which will enable IOS to heat field camps at 20% of the cost of regular fuel stove. Such innovation allows the company to consolidate their whole logistical offering and fine tune of operations through vastly improved efficiency, and show clearly why IOS leads the line.

However, while such investment in equipment and technology is of critical importance, so too is having the right staff to man them. Even in the depths of

IOS

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IOS

this particularly harsh industry slowdown, IOS has 35 staff members on the books, although this number will typically rise by a 100 during more buoyant times. But whereas the mining sector is renowned for taking a somewhat cavalier ‘pick-up, put-down’ approach to staff retention and recruitment, Rejean believes strongly that, on the contrary, they are the key to the business’s success – this is reflected in IOS Services’ policy of scouting out the best young talent, nurturing this talent, and most important of all, holding onto it.

“Staff is not just a commodity - to help them grow, you must plant them, water, and nurture them.

Staff is very important - they are our most valuable asset.”

As one might expect from a business operating in such a niche, skills specific sector, IOS Services relies on a small team of key professionals who are ‘the cream of the crop’, all of whom belong to professionals associations– it goes without saying that there is a strong focus on academic excellence, with all geologists, engineers, and chemists being highly qualified to B.Sc and Ph.D level, also.

“We do a lot of work in partnership with the University of Québec, where we collaborate on short courses in Quality Controls and Geometallurgy, among others. Through doing this we are able to capture the best talent available by bringing them into IOS to do placements and help them gain practical experience.”

This, as Rejean points out, cultivates a harmonious working environment which inspires great loyalty among staff.

“Once they are with us here at IOS Services, they then get absorbed into the culture of the company and integrate – through this we build loyalty and an environment

where our staff stick with us, rather than jumping ship. It is no coincidence that while people stay in a role for 3 years before moving on in our industry, we retain our staff for an average of 12 years.”

He continues: “Young talent stays with us because we also expose them to a variety of different tasks and experiences, as well as many clients who are leading industry players and the specialists who work for them. They learn a lot and appreciate getting this invaluable experience.”

All in all, IOS Services Geoscientifiques is well-placed to continue biding its time and building its strength over the course of 2015, even though as Rejean anticipates: “things will remain difficult for the next 1224 months.”

The coming year will be a year of consolidation, in anticipation of better times ahead. As Rejean puts it, IOS is continuing to put together a ‘dream-team’ – the current slump means that there are a number of highly reputed professionals currently available for work. Once IOS has cherrypicked the best and acquainted them, they will be ready to lead crews during the next boom.

Additionally, further plans are afoot to improve the company’s laboratory offerings, and various new technologies are in the pipeline which will one day compliment the current crop of new technology which has recently been introduced to the IOS toolbox.

Rejean mused: “we hope 2015 won’t be as bad as 2014,” – only time will tell if his hopes are realised. What is certain is that whether the coming year bodes well or ill, IOS Services Geoscientifique will continue to build on its 23 years of success with endeavour, and a not inconsiderable amount of ‘innovation, innovation, innovation.’

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STOP THE INSANTITY Advertise with EVOLUTION

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BUSINESSMEDIA

BAR RICK GOLD

FROM FIELDS TO BEACHES AND NOW GOLD, THE FUTURE IS BRIGHT FOR THE DOMINICAN ECONOMY

A

By: Djamil Benmehidi - ER Magazine

s the 4million tourists who visit the country each year would undoubtedly agree, the Dominican Republic enjoys a much deserved reputation as a place of eternal summer – an island which is truly heaven on earth. However this Caribbean paradise is fast building a reputation which is entirely different in nature, and is based on economic merit rather than just good weather.

Whereas in years gone by the Dominican Republic’s developing economy was once wholly reliant on its two traditional growth drivers, tourism and agriculture, since the 1970s the country has steadily developed a more diversified economic system. Whilst this dependency

on tourism and agriculture still remains to some extent today, the country’s service and industrial sectors have undergone major growth and development in recent years and the contribution of both to the national economy is now considerable. In particular, international economists have hailed the strong growth of the Dominican Republic’s buoyant mining sector as a major catalyst for its impressive growth.

The Dominican Republic’s re-emergence as a major international gold producer hasn’t gone unnoticed and it is now the hottest mining investment location in the Caribbean. Global mining giants such as Barrick Gold and Xtrata have increasingly turned their attention, not to

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mention investment budgets towards the country as they search for the next major as-of-yet undiscovered gold deposit - a gold-rush of sorts, in other words, which has led a number of the world’s mining heavyweights to compete to find the next Pueblo Viejo.

The Pueblo Viejo Gold Mine, located 100km northwest of the capital city of Santa Domingo, was once the Western Hemisphere’s largest gold mine in the early 1980s – a crown which has now been ceded to South Dakota’s Homestake Gold Mine in the US. This fact in itself is indicative of its world-class credentials.

With 25.3million ounces of proven gold reserves, making it the second largest highsulphidation gold deposit in the

BA R R I C K GOLD

Northern Canada, with its rugged beauty and outstanding mineral potential, is Canada’s mining frontier. (Courtesy Aurora Geosciences Ltd.)

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BAR RICK GOLD

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BA R R I C K GOLD

world, Pueblo Viejo holds by far the richest gold deposit ever to be found in the immediate area.

These are impressive stats, and the commercial potential of the project for its owners, the Pueblo Viejo Dominicana Corporation (PVDC), a joint venture formed

by Pueblo Viejo’s owners, Barrick Gold and Goldcorp, is immense.

However for all the site’s worldclass potential, the task of developing Pueblo Viejo has been, to say the least, an arduous and costly one, and capital construction costs of a colossal $4billion were incurred by Barrick before Pueblo Viejo first entered production.

The mine and its two major gold-bearing oxide deposits, Monte Negro and Moore, had originally been developed and owned by the state-owned mining company, Rosario Dominicana, which first began mining operations at the site in 1975. Over the course of its operational life, Pueblo Viejo produced more than 5million ounces of gold and 22million ounces of silver up until 1991, when low commodity prices and inadequate ore processing facilities forced production to grind to a halt. By the time the Dominican government first invited for tenders 10 years later to redevelop and resume production at the then abandoned mine, the dilapidated site had fallen into a state of ruinous disrepair.

A 33-year contract was originally awarded to the Canadian-based Placer Dome Inc., which was then subsequently acquired by Barrick Gold. A series of complex negotiations then took place on how best to go about the remedial development and construction of the mine – a process which delayed the project until 2009. It was only then that Barrick Gold

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“

HEAVY HAUL

TRANSPORTATION

EPSA-LABCO was awarded the bid to engineer and manage the construction process of providing roadway clearances and adequate structural support over 125 kilometers and 27 bridges, four (4) autoclaves with 1050+ tons each, and 120+ equipment parts for industrial machinery of oversized dimension and weights

”

Consulting Engineers. Since 1985

a

heavy haul transportation of equipment and industrial parts for a large gold mine project in the Dominican Republic was recently successfully undertaken for Pueblo Viejo Dominicana Corporation, in which Barrick Gold Corporation, the operator, holds 60% and Goldcorp holds the remaining 40%.

EPSA-LABCO, Consulting Engineers, a local firm, was awarded the bid to engineer and manage the construction process of providing roadway clearances Untitled-1 1

and adequate structural support over 125 kilometers and 27 bridges, four (4) autoclaves with 1050+ tons each, and 120+ equipment parts for industrial machinery of oversized dimension and weights. Each transport exceeds by as much as 10 times the official country codes for standard vehicles loadings on bridges and roads. After completing the design, the Ministries of the Environment and Public Works issued the corresponding permit licenses.

The engineering design was based on the concept of “bridging the bridges”. Steel ramps were placed on metallic provisional supports which were constructed over different types of foundations depending on the soil strata found from detailed geotech-

nical investigations.

Design validation was verified by monitoring and controlling stresses and deformations using strain gauges placed at critical locations during the passing of each 1,050-ton autoclave.

The measured values were below the values required by the maximum allowable official country codes.

Office Santo Domingo Socorro Sanchez #57 Phone: (809) 221-3772 Fax: (809) 221-9369 E-mail gerencia@epsalabco.com

www.epsalabco.com

29/05/2015

BA R R I C K GOLD

and Goldcorp’s PVDC, as part of a 60/40 joint venture partnership, finally began the multi-billion dollar task of constructing the new Pueblo Viejo Mine. Feasibility studies, environmental and social impact assessments, and associated infrastructure studies were carried out at Barrick Gold’s request to assess the scale of the task which awaited them – suffice to say they made for grim reading. To move Pueblo Viejo forward to where it is today, it soon became clear that before building work on the mine itself could even begin, Barrick Gold and Goldcorp would have to take on an environmental rehabilitation project of an almost unprecedented scale.

Following the sudden shutdown of a former mine in the area in 1999, environmental assessments revealed that soil and water on the mine site and the surrounding area had been contaminated with heavy metal concentrations, sediment, and acid rock drainage – a hazardous legacy left behind by the old open mine pits, waste rock piles, and abandoned plant facilities. Upon assembling a team comprised of Barrick Gold employees, hazardous materials experts, and locally hired employees, a large clean-up

operation began which removed approximately 130,000 cubic metres of contaminated soil, alongside the implementation of a Bioremediation project – a process which used microorganisms to restore 100,000 cubic metres of soil that had previously been heavily contaminated with hydrocarbons.

As one might expect, this mammoth environmental rehabilitation project didn’t come cheap for Barrick, who offered to cover the full cost and implement an extensive reforestation campaign – a move which earned the mining giant many plaudits, and saved the Dominican government a $75million clean-up bill. The rest, as they say, is history. Shortly after the environmental rehabilitation of Pueblo Viejo, Barrick Gold turned its attention to the next challenge and set about build work on the mine itself, and all necessary accompanying transport and power generation infrastructure. When in August 2012 it was proudly announced that the site had finally begun gold production, safely and on time, the then-CEO of Barrick Gold, Jamie Sokalsky, was understandably delighted. He announced: “Pueblo Viejo is a world-class asset, one of only a handful of

mines that will produce more than 1million ounces of gold a year. We expect it to be a major contributor of low-cost production to Barrick for decades to come.”

Only 5 months later in August 2013, commercial gold production began in earnest – nearly 4 years on from the day that work began on the mine site clean-up and mine construction in 2009, and $4billion in capital costs later, Pueblo Viejo was operational.

With commercial production successfully achieved and after spending the first year of its life operating at half capacity, today, Pueblo Viejo is now operating at full-steam. High gold prices, which have continued to hover at over $1,000 per ounce, have proved serendipitous for Barrick Gold and Pueblo Viejo’s host country, not to mention its 12,000 direct and indirect employees – already, the Pueblo Viejo mine alone boasts revenues of $1billion annually, almost as much as the Dominican tourism industry earns in its entirety. Indeed the future looks bright for Pueblo Viejo, and both Barrick and the local communities it serves will only continue to benefit from this world-class asset over the course of its 25-year mine-life.

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VANADIUMCO R P

POWER TO CHANGE OUR WORLD

I

By: Djamil Benmehidi - ER Magazine

n the words of VanadiumCorp’s decisive CEO, Adriaan Bakker, Vanadium is a niche metal most people have never heard of that could radically change our way of life. The exponential growth of vanadium use in China recently is a clear indication of the metal’s importance. Chinese rebar alone now represents over 25% of global usage. Vanadium’s application as a steel enhancing agent without rival makes vanadium as valuable as it is enigmatic. Described as “steroids for steel,” by some, as little as 0.1% vanadium, or merely a pound to every ton of untreated steel, doubles its strength.

It is due to Vanadium’s unique oxidation states that allow it hold electrical charge and increase the strength of steel and alloys meaning less weight, less raw materials, less

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VANADIUMCO R P

pollution, and reduced costs all the way down the value chain. Vanadium could also play a major role in solving the global energy crisis with vanadium batteries. Discovery and usage for new applications for vanadium has exploded globally and North America currently imports 100% of its vanadium needs with zero stockpiles. The amazing strength-enhancing trait without alternatives has made vanadium a much sought after material for both commercial and military manufacturing purposes. It was

metropolitan centres. Take the case of China, for example, it is less urbanized than its North American and European peers, but has the world’s largest urban population, which stands at over 600 million, a figure which is still increasing by around 20 million each year. To accommodate this growth, a massive quantity of high strength steel is consumed as China’s cities grow and modernize. The implementation of the largest urban development strategy the world has ever seen has created an unprecedented

Completed trench for channel sampling

as we know it. Adriaan Bakker said: “On the steel side alone, the various applications of vanadium are already an extremely compelling story. The emergence of vanadium batteries is going to be a genuine gamechanger. Vanadium batteries could affect significant change for future generations. An ever growing concern is climate change which also highlights the necessity for a transition to renewable power and sustainable energy storage solutions for the future” Vanadium-based redox flow batteries “VRB’s” are now

Near surface mineralization outcrop at Lac Dore

Lac Dore Trenching Completed on East and West Deposits

initially used to build armored battleship hulls resistant to shell fire during the late 1800’s. Henry Ford, highlighted the use of vanadium to build the chassis for the Ford Model T in 1908, “a light-weight vehicle of remarkable strength and durability. ” Recent vanadium research has recently solved another great mystery, as long ago vanadium was thought to be an impurity.

It was the vanadium contained within legendary Damascus steel swords at the time of the great crusades that resulted in unmatched beauty and strength. Today, global demand for vanadium is ravenous, particularly in the developing world where rapid urbanization has led to ever taller skyscrapers appearing on the skyline of so many expansive and highly developed

demand for vanadium, and is now irreplaceable for stronger and lighter construction materials. First initiated by Chinese government mandate, vanadium reinforced alloys must be utilized in all new building and infrastructure projects.

This new mandate is a countermeasure put in place to prevent tragedy and controversy resulting from low strength structural steel collapsing most of the buildings in devastating earthquakes such as the 2008 earthquake in Sichuan Province. As the most effective steel and alloy strengthening agent known to man, vanadium is both a prolific and a strategically important metal. While vanadium’s use as a strength enhancing steel additive is crucial, new applications could revolutionize the vanadium industry

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a proven technology representing a longer life and cleaner energy storage solution. VRB’s are going to revolutionize the world in the same way that oil, coal and nuclear power stations once did.

The phasing-out of fossil fuels in favour of clean, renewable energy sources is now not only possible, but inevitable. As global warming is now a reality, identifying the material needed for renewable power and energy storage solutions is equally important to the technologies themselves. With this in mind, these are exciting times for the vanadium mining sector and there is real blue-sky potential for the industry in the near future; with vanadium deposits unrivaled in North America, secured in two world-class projects and its industry leading specialists

VA N A DI U M CORP

Completed trenching with visible channel sampling

Near Surface mineralization at Lac Dore

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“POWER TO CHANGE OUR WORLD”

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VA N A DI U M CORP

from across the globe, VanadiumCorp is ideally positioned to capitalize on this potential.

Currently the company has a lesser market presence than some of its more advanced industry rivals, Vancouver-based VanadiumCorp is a junior miner which is on the ascent. As the sole owner of Canada’s world-class vanadium assets, the Lac Dore Vanadium Project and the highly-promising Iron-T Vanadium Project, in addition to a number of copper-gold bearing projects, VanadiumCorp is in an enviable position owning the largest compliant vanadium deposits in North America that appear to be well suited for primary vanadium production. In reference to the Lac Dore Vanadium Project, Adriaan said: “It can be a little intimidating to acquire a project of this size and scope and say, this could be the first vanadium mine of its kind in North America.

New and existing members of our team have a highly specialized skillset in the global vanadium industry which adds significant confidence to our production model and target commodity.

Expertise in mine building , operation and trade dynamics within the vanadium industry is crucial for our project development and securing strategic partners.” The Lac Dore Vanadium project is world-class –there is nothing in North America like it. To reach production would represent a truely unique market opportunity.

Ending complete reliance of foreign import could open many doors and strengthen our economy. Some main competitive advantages include near-surface mineralization, low strip

ratio, grade, positive metallurgy and the absence of superficial oxidation. By comparison, many vanadium projects are highly oxidized, adding significant costs at the production stage. There is also very low silica in the Lac Dore Vanadium Deposit which could save tremendous production costs in contrast to many.

The recent release of the first NI 43-101 inferred resource estimate has revealed impressive figures for the Lac Dore project. The inferred resource estimation stands at 99.1 million tonnes at 0.43% V2O5, representing 26.1 million tonnes of magnetite concentrate with a 1.08% grade of vanadium pentoxide. The high-grade vanadium concentrate, recovery, positive metallurgy and low impurities compare very favourably to the offerings from most global vanadium producers.

For Adriaan and his team, there have been many challenges: •the acquisition of the flagship asset which involved ‘ groundstaking’ mining claims against competitors •succeeding in a three year claim contest for mining title through various legal methods •the successful fight for the company and its shareholders by proxy battle •acquisition and validation of historic data to confirm a world class vanadium resource which saved time, capital and associated share dilution by avoiding an unnecessary drill program The current NI 43-101 technical report vindicates the adversity that they went through to stand where they do today. This technical report was

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successful in confirming size, grade, quality and compliance of a world class vanadium resource. This is without factoring in Lac Dore’s sister project, the Iron-T deposit, the addition of which could prove to be lucrative for VanadiumCorp.

Historically, South Africa was the largest global vanadium producer.

However recently, two of their three vanadium producers have recently shutdown completely from depleted resources and adverse economics.

The slowdown in China has also

provides a significant opportunity for VanadiumCorp’s stakeholders.

Adriaan continued: “North American competition for VanadiumCorp is virtually non-existent. Other North American based vanadium projects are subject to many fatal issues ranging from low grade supply, poor metallurgy, lack of infrastructure, poor strip ratio, low mine life to experimental processes that can often translate to an unviable or uneconomical project. As some emerging vanadium companies are

opportunity which the emergence of vanadium batteries offers, Adriaan envisages a VanadiumCorp which is much more than just a mere vanadium producer. “We consider the additional value of vanadium electrolyte production in North America to be a very significant value proposition. With vanadium batteries, supply and cost/Kwh are the key concerns. In addition to saving cost on shipping and the advantage of free trade, a partnership/lease model for producing vanadium electrolyte

reduced steel production and as vanadium production in China is predominantly a co-product of steel, this in turn creates an additional supply squeeze on vanadium.

Despite these supply disruptions, vanadium continues to increase in demand every year and a short supply of vanadium means higher vanadium prices in the foreseeable future. Global vanadium production is almost entirely committed to the existing and increasing demand from high strength steel applications.

With global demand increasing by 4-6% per year, emerging Vanadium battery producers are concerned as supply is sold at a premium due to lack of availability.

VanadiumCorp owns 100% of the largest compliant vanadium resource in North America, the USA imports 100% of its growing vanadium demand from foreign sources, the benefit of free trade and a rapidly growing energy storage market,

also finding out the hard way, import duty, tariffs and shipping is cost prohibitive to transport vanadium internationally. Vanadium Electrolyte adds even more cost as the vanadium is hosted in sulfuric acid and shipped in disposable containers. Poorly constructed mines and associated financial agreements can also have a profoundly negative effect on the success of many vanadium projects. Forward selling production rights in a premature offtake deal can also be problematic as the producer essentially becomes a contract miner offering little upside for investors. Confirming our domestic resource and the potential for robust economics would allow VanadiumCorp to potentially become the only primary producing vanadium mine in North America.

Our stakeholders have been very supportive in growth of the company and we look forward to advancing our projects with their best interests in mind.” To further capitalize on the

in America could make the VRB extremely competitive to alternative technologies. Consider the possibility of a vanadium producer, to not just produce and sell vanadium to a vanadium battery company, but to make the electrolyte itself. Instead of selling the end product you could lease the electrolyte. About 42% of the capital cost of a VRB is the vanadium itself. Thus, a paradox exists when vanadium prices increase substantially, as commercial viability of the VRB is directly inhibited. An incredible fact is that Vanadium electrolyte can be reused indefinitely, so it can be leased for up to 20 years at a fraction of the capital value. When re-acquired at the end of the battery’s life or contract you can re-lease or sell it again. This model would solve the VRB paradox, reduce capital cost dramatically, lowering the cost per kilowatt hour and allow payment multiple times for the same vanadium. Stable and

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VA N A DI U M CORP

secure domestic supply would also decrease costs, stabilize pricing and help make vanadium batteries a reality sooner rather than later.”

The construction of a single VRB unit to back up the hoover dam’s electricity production, enough to

sustain a city the size of Vancouver, BC would require about 5,000 tonnes of vanadium electrolyte.

This supply represents close to half the amount of vanadium the US imports every year for different applications and could only be met today by increasing direct reduction steel production in places like China. This is not possible given current production capacities and the outlook of vanadium production rapidly decreasing globally. Such a supply would have to come from domestic primary

vanadium production in North America that currently does not exist. Over the short and medium term, global vanadium suppliers will have their work cut-out to provide adequate supply and the vanadium prices are expected to climb.

Ensuring enough is earmarked for both steel production and the rise of the vanadium batteries sector will likely be of great concern.

VanadiumCorp trades on the TSX Venture Exchange under the ticker “VRB” Disclosure: The author and affiliated publisher does not own securities of VanadiumCorp “VRB”

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NEXG E N

NEXGEN

A

By: Djamil Benmehidi - ER Magazine

rguably, it came as something of a surprise when, in 2009, Canada ceded its crown as the world’s leading uranium producer in terms of output to Kazakhstan. It would be a mistake to think that Canada’s long-standing reputation as a top-tier producer of uranium is under threat any time soon, however - the credentials of its uranium mining sector remain second-to-none, in terms of grading and its rich heritage.

The story of Canada’s uranium mining industry is one which goes back 70 years. Its first ever uranium mine, the Eldorado project, based at Port Radium in the wil-

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derness of the county’s Northwest Territories, played a critical role in the success of the World War 2 war effort, as it provided the uranium which the US, Canada, and Great Britain so badly needed in the race to complete the Manhattan Project.

However the coming of age of Canada’s fledgling uranium industry came later in 1947 when a wartime moratorium on private prospecting was lifted, leading to an exploration boom and the discovery of a number of large uranium deposits across the Northwestern Territories. Further discoveries in Ontario, and Saskatchewan were made soon after, andby

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“We’re not aiming for first base – we’re going to hit the ball out of the park.”

1959more than 20 uranium mines had entered production across 5 districts.

A short lull occurred, triggered by a tailing off in military demand for uranium resource, before the next boom of the 1970’s, during which a number of major deposits were identified in the now much coveted Athabasca Basin - a region which now holds the top spot as the world’s leading source of high-grade uranium.

The Athabasca Basin, located within a region of

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N EXGEN

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the Canadian Shield spanning the north-western tip of Saskatchewan and Alberta, is renowned for the uranium riches which lie beneath its surface. Vast deposits of ore were discovered in the region during the second great uranium boom of the 1970’s, particularly at the base of a layer of sandstone sediment running below the surface of the basin. Alone, the region produces a staggering 22% (according to the World Nuclear Association) of the world’s annual uranium output, a majority of which is produced by the world’s largest

producing uranium project, the McArthur Mine – a site which produces close to 13% of all global uranium output on its own, and which has the highestgrade uranium of any mine presently in operation.

Suffice to say the Athabasca Basin is by far one of the most desirable jurisdictions, in terms of resource quality and quantity, and new kid on the block, Vancouver- based NexGen Energy, is on the cusp of propelling itself from junior explorer to top-tier developer over the space of the next few years.

“We’re a uranium-focused exploration and development company and over a 2 year period we reviewed over 200 projects in the Basin alone before we decided to acquire what is now NexGen’s asset portfolio.

We’ve acquired the most dominant land position in the southwest part of the Basin. In February 2014, we discovered the Arrow Zone where, to date, where we’ve drilled 46 holes with 44 of them hitting uranium mineralization and this is accomplished even while drilling over a wide grid.

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N EXGEN

“We’re not here to be like any other company – we’re here to set the standard.”

Arrow is exhibiting all the characteristics of a world-class project – some of the GTs (grade times thickness) have been absolutely world-class. When taking into account the fact that Arrow is land-based and basementhosted means that some of our drill intercepts are the best seen anywhere in the Basin.”

Certainly, this is also the view of the analyst community too, who

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N EXGEN Davidson & Company LLP Public company experts Davidson & Company LLP have been extremely pleased to see their client NexGen Energy grow and succeed over the years, and are especially proud to have assisted NexGen Energy complete 3 separate bought deal financings (ranging from $11.5M, to $23.74M each), in addition to providing them with timely and attentive service throughout the year.

have hailed the recent news, particularly drill hole AR-15-44b as one of the best drill holes they’ve ever seen, anywhere. This drill hole encountered 56.5m at a grade of 11.50%, including 20m at 20.68% and 1.0m at 70% U3O8.

The market has responded well, with NexGen outperforming its peers over the last 3, 6 and 12 month period.

In the words of Leigh Curyer himself, ownership of such a world-class asset is extremely rare.

“We want to grow the company and develop our assets on our own because we have the expertise on the Board and executive from exploration right through to production and everything in between including environmental work, permitting, economic studies and project financing.

We’re not aiming for first base – we’re going to hit the ball out of the park.”

Whilst the markets are notoriously difficult to predict, all evidence suggests that Leigh’s aspirations for NexGen are by no means far-fetched – a recently published report by Morgan Stanley suggests that demand for uranium is going to soar in years

to come, as ever more nuclear reactors come online around the world. As China, India, Europe, the Gulf states, and South Korea all press ahead with the huge reactor fleet buildouts, demand for nuclear fuel is, inevitably, expected to rise steadily.

Additionally, the market is also poised for Japan to switch its reactors back online which, alone, should cause demand to rampup, not to mention the price of uranium.

However, supply side factors are likely where the uranium price will be driven the most. On the topic, Mr. Curyer said: “Having looked at most of the major projects around the world, no significant increase in uranium production is going to come online over the next 5 to 7 years to meet the supply gap as demand steadily increases.

As the price of uranium remains low investment in not only mine development and expansion but exploration is decreased which effects the supply-side for many many years to come. And let’s not forget that a number of the world’s present leading mines are beginning to reach the end of their lifecycles.”

Mr. Curyer has little doubt

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that the coming years will be buoyant for NexGen, as it continues exploration in its Athabasca Basin land package and further development of the Arrow and Bow projects.

Regarding its flagship Arrow project, Mr. Curyer says NexGen will have a maiden resource estimate publish before the end of Q1/2016 and from there plans to move into economic studies and further resource expansion and development.

Additionally, the Rook I package is large, highly prospective and underexplored which could mean further discoveries like Arrow although Mr. Curyer stresses that discoveries like Arrow are not typical.

I’m confident about what the future holds – we feel very fortunate to be the stewards of this project and will continue to work to develop it as optimally as possible both in terms of cost and time. We have a board and management team of uranium professionals that have the experience to take NexGen well into the future and to become a top tier uranium producer.

We’re not here to be like any other company – we’re here to set the standard.”

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C EMEN TATION

CEMENTATION A

s with most industrial activities, mining is a hazardous business but the credentials of Canada’s $54billion mining sector are impressive in this respect. The protection of the industry’s 380,000 employees is deeply engrained in Canadian mining culture, and the 3,400 companies which provide engineering, geotechnical, and environmental services to the country’s mining operations must align their business activities with a responsible approach to staff health and safety, as well as local communities and the natural environment.

By: Djamil Benmehidi - ER Magazine Nevertheless for all the health and safety commitments, protocol, and government regulation the fact remains that the mining industry is one which, even to this day, is challenged with hazards, and it is widely acknowledged that of all the mining disciplines, underground mine development and the process of shaft sinking, in particular, can be hazardous if not carried out safely. The construction of the vertical shafts which are needed to shuttle mine workers and ore to and from the underground mine site often occurs under great pressure from clients who,

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conscious of the massive capital costs that they are incurring, and that mine access depends on completion of the shafts, request that shafts be completed sooner rather than later. This time pressure combined with a hazardous working environment, in which men work at height and alongside heavy equipment, meant that back in the 60s it was a given that a life would be lost for every 100m sunk – even as recently as 35 years ago, it was expected that there would be a loss of life for every 1000ft.

Fortunately a great deal has changed, thanks to the herculean efforts of the underground mine

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“Mining and construction is pretty old school and it’s hard to convince clients to try something new - when we do, we have to deliver” contracting and shaft sinking community, who have overseen vast improvements to risk management and health and safety procedures.

Nowadays the incidence of fatalities and serious injury in Canada is minimal, and within Cementation Canada, virtually non-existent – something which Roy Slack, the highly regarded and long-serving President of Cementation Canada, is delighted about. Having presided over one of Canada’s premier underground mining contractors since taking up the reins in 1998, he has worked tirelessly to build the company into what it is today: a big-project player with an outstanding reputation for safety, and a place where his workers know that they are viewed as people, not assets.

“As you go through your career you see the things that are done right and the things that could be

done better. When we started up Cementation Canada, we set out to do something different – to change the way mine contracting is carried out.

When we started the company, we aligned our vision to focus on safety. Our target is to be a zero-harm company because that is what we feel the industry should be – this is why we were recognised last year as the safest employer in the Canadian resource sector. We’ve done well but there is always room for improvement – our commitment to the safety of our staff is absolute. It’s about looking after your people and treating them right, it’s pretty basic stuff.”

Roy Slack’s emphasis on employee safety is smart, not only from an ethical viewpoint but from a hard-nosed business angle. A poor safety record costs serious money, and can ultimately dictate whether a

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company thrives or fails. If there is serious injury or loss of life during a project, work grinds to a halt – if work stops, then revenue will soon dry-up. On the other hand, a good safety record can only create a positive snowball effect, in terms of staff recruitment and retention, and building a good reputation.

Cementation Canada’s reputation for setting the standard with regards to safety is indicative of the company’s wider overall manner in which it conducts its affairs. As is to be expected of a company bearing the Cementation name – a name which is synonymous with a century-long mining heritage, innovation, and mining success - Cementation Canada is known to be one of the biggest and best direct hire underground mining contractors in the business, not only in Canada but across North and South America.

C E M E N TATION

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C E M E N TATION

“The easiest way to say what we do is this: we build mines. We specialise in underground mine construction and development but, importantly, we’re also a direct build and a design-build contractor – this is something which isn’t offered by most businesses in our field.

Offering a complete designbuild service in-house means that we gain a better understanding of our clients and their needs – there are a lot of benefits to this model, which is why we’ve used it since the beginning. Traditionally, different groups and companies would work on different project stages – our model has allowed us to establish continuity and one-point accountability through a strong engineering service within our contracting group.”

This policy of using a designbuild model to complete projects has seen Cementation Canada offer an unrivalled level of bespoke service which, inturn, has given the company the opportunity to provide innovative solutions and fixes to client problems. That said, although such fixes can save clients considerable amounts of time and money, persuading clients to take a risk in an industry as conservative as the mining sector is no mean feat.

“Mining and construction is pretty old school and it’s hard to convince clients to try something new - when we do, we have to deliver. For example, when we were working with AuRico Gold at their YoungDavidson project in Matachewan in Ontario a few years back, we proposed a unique solution to them which cut their capital costs in half, saved them about $40million, and cut the schedule right down. We knew it could be done, but it hadn’t been done before so they took a leap of faith – they felt we could deliver.”

In other words, as Roy alludes

to, it’s about building trust between your company and the service user, and to build trust you must forge strong and enduring relationships which can stand the test of time – this is another area where Cementation Canada excels.

“Our relationships with our clients are one of the keys to our success, which is why we’re structured in a way that fosters open dialog between ourselves and our clients– we can build a solid understanding of our clients and avoid adversarial relationships. This is at the heart of what we do because really understanding what our clients want from a project standpoint and aligning ourselves with these goals is crucial.”

This three pillar focus on safety, relationship building, and an efficient, integrated approach to project management has served Cementation Canada well. Based in North Bay, Ontario, the company now employs over 1,200 staff and boasted revenues in the region of $300 Million in 2014. Certainly, the company has come a long way since its inception in 1998 when Roy Slack was first approached

by Cementation’s owners in the UK, who were keen to utilise his extensive mining background and have him take the helm of the re-establishment of operations in North America.

“I’d already worked in the mining industry for a number of years and had my own consultancy firm when I was first approached by Cementation UK. They were interested in gaining a foothold in Canada and approached me about evaluating possible acquisitions,” says Roy Slack.

“After review of the possible acquisition targets they tabled another option, they asked me to set-up a new start-up from scratch – I was the first company employee.”

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C EMEN TATION

The reason for this rapid ascent from one-man band to industry leading underground mine contractor is simple: Roy focused on pushing Cementation Canada forward for the big projects from the very beginning.

“I recognised that start-ups in our business often get caught up in a trap where they take on the small projects at the beginning, with the intention of working up to the bigger ones later. The problem with this is that start-ups who do this will usually find that they get pigeon-holed by clients as being small project outfits.

We did it differently here and went straight for the biggest projects we could get. We had a great engineering team with a lot of experience who were up to the challenge.”

Cementation Canada quickly developed a reputation as the go-to company for some of the biggest names in North and South American mining, and the company’s project portfolio makes for impressive reading – it is a veritable who’s who list.

To date the company has worked with mining heavyweights, Goldcorp, Vale,

and Xstrata on a number of their projects, and others such as Penoles, Nevada Copper, Hecla Mining Company, AuRico Gold, PCS, Lundin as well as, Rio Tinto’s world-class Diavik diamond mine in the Arctic. The cultivation and development of relationships with such a client base has been hard-earned but is has given Cementation Canada access to the best projects on the market, something which is especially important at such a time as this when all of the mining sector continues to grapple with the mining downturn. Nurturing firstnation partnerships with clients such as Rio Tinto has been critical for the company.

With regards to what the future offers, Roy is optimistic.

Cementation Canada has taken the bold and yet sensible decision to steadily invest in the company over the downturn years and it is now well-placed to capitalise when the market inevitably picks up – the mining industry is a cyclical beast, after all, and many experts believe that the downturn is unlikely to continue for very much longer.

“We’re anticipating growth in

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the not too distant future and we’re looking at potential future acquisitions. Also, we’ll soon be setting up a new Cementation division in Salt Lake City, Utah – there are exciting times ahead,” Slack told us. He continued: “We’ve taken a conscious decision during the downturn to hire and develop our people rather than lay staff off. There is a lot of talent available and we have taken on engineering and support staff who will be invaluable when the upturn comes. We’ve also taken on big international projects with sister Cementation companies located in countries around the world, as well as on our own we’ve done work in Russia, China, Australia, Africa, Asia, and Europe – our local partnerships across the world give us access to these global markets. This is the benefit of being Cementation Canada, part of a global Cementation Group.”

The message is clear: Cementation Canada is both ready and capable, in spite of the challenging market, and is perfectly poised to capitalise when the storm clouds break.

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Hepburn equipment has been a part of Cementation’s achievement in many projects all over the world over many years, including: • 180 inch Friction Hoist with 5000HP motor for AuRico Gold • Skid mounted single drum sinking hoists • Shaft sinking winches for Hoyle Pond, Resolution Copper, etc.

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