the
ECONOMIC
review
CANADIAN EDITION
VOL. 1 • OCTOBER 2015
ReBUILD CANADA
Masters of public infrastructure
Manitoba Hydro
A unique utility, with some powerful projects
Anaconda Mining
Anaconda: Safety. Integrity. Reliability.
OCTOBER 15 VOL 1 • ISSUE 3
EVOLUTION
BUSINESSMEDIA I nspi re d by E c onom ic Growth
E DI TO R ’S NOTE
ECONOMIC
review
James Martin CEO jmartin@evolutionbusinessmedia.com Yohan Jayasooriya Editorial Director yohan@evolutionbusinessmedia.com Zachary Smith Creative Director zsmith@evolutionbusinessmedia.com Thomas W. Nelson Editor In Chief editor@evolutionbusinessmedia.com Abigail Saltmarsh Content Editor editorial@evolutionbusinessmedia.com Sarah Louise Brooks Assistant Editor sbrooks@evolutionbusinessmedia.com Djamil Benmehidi Exploration Editor djamil@evolutionbusinessmedia.com Daniel Edwards Automotive Director dedwards@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. In this edition of the Economic Review. The October issue contains a variety of topics from large scale infrastructure to junior mining projects. We had the pleasure to work with the The Honourable Denis Lebel, discussing the New Building Canada plan, which builds on our Government’s unprecedented investments in infrastructure. In 2007, our Government provided $33 billion in stable, flexible and predictable funding across the country. Now, we are building on our Government’s historic infrastructure investments, with about $80 billion for public infrastructure over the next decade, including the $53-billion New Building Canada Plan for provincial, territorial and municipal infrastructure. The New Building Canada Plan is the largest and longest federal infrastructure plan in our nation’s history, It continues to focus on supporting projects that enhance economic growth, job creation and productivity. In addition, we have produced an insight into the Keeyask project, one of the largest hydro electric projects currently underway in Canada, located in Manitoba on the Nelson River. This will contribute to the local and national economy by way of employment, whilst under construction along with continued employment for the life cycle of the dam.
the
ECONOMIC
review
CANADIAN EDITION
VOL. 1 • AUGUST 2015
CEMENTATION Our vision to focus on safety NEXGEN
“The story of Canada’s uranium mining industry is one which goes back 70 years.”
VANADIUMCORP
“Power to change our world” AUGUST 15 VOL 1 • ISSUE 2
I nspi re d by E conomic Growth
the
EVOLUTION
BUSINESSMEDIA
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GLOBAL ECONOMY
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DENNIS LEBEL
8
MANITOBA HYDRO
16
JEAN WARWICK CONROY
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GLOBAL ECONO MY
Gold mining industry contributed over
US$171
BILLION
to global economy according to World Gold Council
A
new report released today from the World Gold Council, produced in association with Maxwell Stamp, a leading international economics consultancy, reveals that the gold mining industry directly contributed around US$83.1 billion to the global economy in 2013. Once the indirect economic impact is taken into account, this figure increases to US$171.6 billion. The social and economic impacts of gold mining report builds on previous research, including studies by the World Gold Council, to
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provide an understanding of the socio-economic impacts of the commercial gold mining industry at both a global, national and host community level. The report’s analysis of the impacts of large-scale commercial gold mining in 47 gold producing countries (accounting for over 90% of the world’s gold production) shows that gold mining companies in total contributed over US$171 billion to the global economy in 2013 when the value created by support services and indirect employment is taken into consideration. Globally, gold mining companies directly employed over
one million people in 2013, with over three million more people employed as a result of the industry’s suppliers and support services. The report shows that gold mining has made good progress in seeking to develop local human capital and skills. In most gold producing countries, over 90% of the industry’s employees are local workers. Although gold mining jobs are not as numerous as jobs in other industries, they are of high value as they consistently pay aboveaverage wages – significantly above-average in less developed countries where each worker
G LO BA L E CO NOM Y
typically supports a high number of dependents. Commenting on the launch of the report, John Mulligan, Head of Member and Investor Relations at the World Gold Council, said: “This report shows that the total economic impact of gold mining is significant and substantial – at US$171.6 billion, it is greater than the GDP of over 150 different countries and considerably larger than the total value of global overseas aid in recent years. Our findings highlight that commercial gold mining is a major source of income and driver of economic growth, playing an important role in supporting the sustainable socio-economic development of host nations and communities.” Over 60% of the countries covered in the report are low or lower-middle income with substantial socio-economic development needs. However, the report indicates that growth in the economic contribution of gold mining often coincides with a marked improvement in income status of host nations. 70% of the value that gold mining companies distribute within an economy relates to payments to local suppliers and employees. Interestingly, the majority of government revenues from gold mining are derived from sources, such as corporate and income tax rather than from money relating to permits and royalties. The social and economic impacts of gold mining also shows that gold mining’s direct economic contribution to the global economy has increased seven-fold from 2000 to 2013 – greater than the rise in value of gold over the
same period. Andrew Britton, of Maxwell Stamp, who authored the report, commented: “While there has been major progress in recent years in attempting to measure gold mining’s economic impacts, this has often been piecemeal or confined to a specific country. The lack of information has held back constructive debate on how to make the most of the shared value that a responsible gold mining industry can create for host nations and communities. By building on previous research and identifying industry-wide thematic trends, this work has made substantial progress in bridging the information gap. We hope it will help foster productive engagement between gold mining companies and the industry’s wider stakeholders. The social and economic impacts of gold mining report can be viewed at http://www. gold.org/gold-mining/economiccontribution/social-economicimpact and on our iOS and Android apps. We have also produced a video which can be seen here: http:// www.gold.org/research/socialandeconomic-impacts-gold-miningvideo. You can follow the World Gold Council on Twitter (@goldcouncil) and like us on Facebook Gross Value Added The industry’s indirect contribution was calculated by measuring Gross Value Added (GVA). Different to measuring production quantities of profit, GVA measures the contribution to the wider economy of individual
producers, industries or sectors. World Gold Council The World Gold Council is the market development organisation for the gold industry. Our purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market. We develop gold-backed solutions, services and products, based on authoritative market insight and we work with a range of partners to put our ideas into action. As a result, we create structural shifts in demand for gold across key market sectors. We provide insights into the international gold markets, helping people to understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society. The membership of the World Gold Council includes the world’s leading and most forward thinking gold mining companies. About Maxwell Stamp Maxwell Stamp is one of the world’s leading international economics consultancies. Established in 1959, they have over 50 years of experience in over 165 countries and territories, with a strong track record in developing and transitional countries and expertise across a wide range of competencies and policy areas: from international trade to rural livelihoods, from privatisation to financial reform, from gender to industrial strategy. Through the services delivered for clients, Maxwell Stamp is committed to working towards the eradication of poverty and increased social well-being. www.evolutionbusinessmedia.com I 7
D ENNIS LEBE L
ReBUILD CANADA
W
e all know that investments in modern and efficient public infrastructure across Canada create jobs, promote economic growth and provide a high quality of life for all Canadians and their families. This is exactly why the Harper Government is delivering for Canadians now.
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Our Government’s commitment to infrastructure represents $80 billion over the next decade. No other federal government has made these levels of investment in the history of our country. Our infrastructure programs are designed to meet the needs of municipalities, provinces, and territories - who own 95 per cent of all public infrastructure in Canada - while achieving the best value
for taxpayers’ dollars. That is why all three levels of government, and the private sector, have a role to play in supporting public infrastructure. Since 2006, Canada has consistently led G7 countries in infrastructure funding as a rate of GDP as we have made unprecedented investments in infrastructure across the country. In 2007, we announced $33 billion in stable,
DE N N I S LEBEL
flexible and predictable funding through the Building Canada Plan. This Plan has provided – and continues to provide – funding to support modern, efficient, and important projects in communities from coast to coast. Building on these historic investments, we introduced the $53-billion New Building Canada Plan, which is the largest and longest infrastructure plan in our nation’s
history. The New Building Canada Plan continues to focus on supporting projects that enhance job creation, economic growth, and productivity. Stable funding for infrastructure is crucial for community planning, development, and sustainability. The New Building Canada Plan allows our municipalities, provinces, and territories to rely on long-term funding that will sup-
port their plans for infrastructure projects over the years to come. The New Building Canada Plan is made up of several components: • The $32-billion Community Improvement Fund, which consists of the incremental Goods and Services Tax Rebate for Municipalities and the indexed and renewed federal Gas Tax Fund; • The $14-billion New Building Canada Fund, which consists of:
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D ENNIS LEBE L
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DE N N I S LEBEL
o The $4-billion National Infrastructure Component, which will support projects of national significance; and o The $10-billion Provincial-Territorial Infrastructure Component, which will support projects of national, regional and local significance. • Of this amount, $1 billion is dedicated to projects in communities with a population of fewer than 100,000 residents. • An additional $1.25 billion in funding for the Public-Private Partnerships Canada Fund, administered by PPP Canada; and • $6 billion in funding that continues to flow across the country this year and beyond under existing infrastructure programs. To date under the New Building Canada Fund, projects represent-
ing over $7 billion in total estimated projects costs have been announced in every region across the country. National Infrastructure Component (NIC) The National Infrastructure Component is providing funding to projects across the country on the basis of merit. Proposals are submitted directly to Infrastructure Canada and must support one or more of the following federal objectives: • Generate positive economic activity; • Reduce potential economic disruptions or foregone economic activity; • Generate productivity gains for the Canadian economy; or, • Provide benefits that extend beyond the provinces or territo-
ries where the project would be located. Infrastructure Canada is currently accepting completed business cases for projects within all seven eligible categories under NIC, which include highways and major roads, public transit, rail infrastructure, local and regional airports, port infrastructure, intelligent transportation systems (ITS), and disaster mitigation infrastructure. Provincial-Territorial Infrastructure Component (PTIC) The Provincial-Territorial Infrastructure Component is an allocation-based program that recognizes and supports the role that provinces, territories, and municipalities play in helping to build Canada’s public infrastructure. Two funds make up this component.
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D ENNIS LEBE L
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DE N N I S LEBEL
First, the $9-billion Provincial-Territorial Infrastructure Component – National and Regional Projects supports medium- to large-scale infrastructure projects across 14 categories of investment that encourage job creation and economic growth. Second, the $1-billion Provincial-Territorial Infrastructure Component – Small Communities Fund which supports projects that deliver on local needs in smaller communities, in the same 14 categories of investment. Public Private Partnerships: delivering public infrastructure on time and on budget To ensure the best value for taxpayer dollars, projects submitted to the New Building Canada Fund (i.e., the Provincial-Territorial Infrastructure Component and the National Infrastructure
determine that a project could be viable as a P3, and that such an approach would generate value-for-money, the federal contribution through the New Building Canada Fund will be conditional on the project being delivered as a P3. PPP Canada will streamline the P3 screen process for projects from provinces and territories that have extensive experience with P3 projects and have their own screening process in place. In these cases, PPP Canada will review the assessment to ensure it meets the department’s requirements and was done in an acceptable manner according to generally-accepted practices for this type of procurement. If at any time during the P3 Screen, the project is found not to
Federal Gas Tax Fund: close to $22 billion for municipalities over 10 years Since its inception, the federal Gas Tax Fund has offered a flexible approach to infrastructure financing, allowing municipalities to choose and plan their own infrastructure priorities. With over $13 billion in funding already invested to support local infrastructure across the country, the federal Gas Tax Fund is a key element of the Government of Canada’s suite of infrastructure programs. The renewed and indexed federal Gas Tax Fund continues to provide support to Canada’s municipalities through predictable funding and now an additional 11 new eligible funding categories, including disaster mitigation, recreation, tourism, and culture.
Component) with total eligible costs of more than $100 million are required to undergo a P3 screen, which is administered by PPP Canada. P3 infrastructure projects in Canada have a solid track record of being delivered on time and on budget, and the private sector has an important role to play in building modern infrastructure. Should the P3 screen
be viable for P3 procurement, or the P3 procurement approaches would not deliver the best valuefor-money, the project may be still considered for federal funding under the New Building Canada Fund using traditional procurement approaches. In such cases, funding from the New Building Canada Fund would not be conditional on the project being delivered as a P3.
The addition of these new eligible funding categories is a recent improvement our Government has made to this Fund. As well, the Fund has been extended, doubled from $1 billion to $2 billion annually, and legislated as a permanent source of federal infrastructure funding for municipalities. Under the renewed federal Gas Tax Fund, provinces and territories are committing to taking concrete
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D ENNIS LEBE L
steps toward improving asset management within their jurisdictions. Our Government is committed to long-term planning for infrastructure and encourages all jurisdictions to undertake life-cycle cost assessments and develop asset management plans. Longterm planning is important to ensuring that Canada has worldclass sustainable infrastructure. As well, the Gas Tax Fund’s Capacity Building category can be used to fund municipal asset management plans and life-cyclecosting exercises. We are continuing to look at ways to encourage asset management through the other funds in the New Building Canada Plan. New Champlain Bridge On June 19, 2015, I launched of one of the largest construction sites in North America. While there’s not much to see right now, work has started on the $4.239B New Champlain Bridge Corridor Project. Construction crews are working
on a dike in the middle of the Saint Lawrence River, boring and concreting test piles as well as preparing to build a 240,000 cu.m construction berm that will serve as a working platform for the prefabrication of the bridge piers, and the assembly of the deck sections. Later this summer, construction of a second berm will facilitate the building of the main tower adjacent to the Seaway. Through the summer and fall of 2015, preparatory works in the river will continue with major construction scheduled to start at the beginning of the 2016 construction season. The new Champlain Bridge is the centerpiece of the seven km long corridor project, which also encompasses highway widening and replacement of 15 other structures. Among these is a 468m long low level bridge connecting Ile-des-Soeurs to the island of Montréal, which is a major bridge structure in its own right. Still, the 3.4km long
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bridge over the main stretch of the river steals the limelight. The new bridge will sweep across the river in a graceful curve with the high point of the profile being a 240m main span cable-stayed bridge crossing the St Lawrence Seaway, an international shipping channel that connects the Great Lakes to the Atlantic Ocean. The new bridge carries three separate transportation corridors, each supported on its own steel boxgirder superstructure. The north and south corridors are threelane highways with inner and outer shoulders. The north corridor also includes a 3.5m clear width shared-use path to provide a new route across the river for pedestrians and cyclists. The central transit corridor will initially provide reserved bus lanes but the bridge will be built to allow it to be converted to a light rail system in the future as Montréal’s transit system expands. Since announcing in October 2011, that the Champlain Bridge
DE N N I S LEBEL
would be replaced by a new crossing, we have been hard at work to ensure that this, one of the busiest crossings in Canada and a crucial corridor for the regional economy and for Canada as a whole, will achieve the objectives we set out for it: Ensure Continued Safety and Service •Remove traffic from the existing Champlain Bridge by the end of 2018; •Maintain safety of the corridor prior, during and after construction; and, •Deliver a long-term solution that efficiently meets pre-defined operational and maintenance service requirements. Promote Economic Growth •Improve system connectivity to promote the continuous and safe flow of people and goods; •Strengthen the economy through job creation and the improvement of the local, regional and national gross domestic product; and •Promote economic growth by
strengthening Canada’s continental gateway. Provide Value for Money for Canadians •Provide long lasting infrastructure that meets high technical standards as well as the needs of users; •Obtain and maintain the required infrastructure at the sought-after quality level and at the lowest life cycle cost possible; and •Be consistent with the Government of Canada’s vision of an appropriate risk transfer to the Private Partner for financing, design, construction, maintenance and operations of the Project. Foster Sustainable Development and Urban Integration •Deliver a project that is shaped by the consideration of its environmental and social context; •Plan and construct a project that protects the surrounding natural environment through rigorous environmental monitoring and mitigation measures;
•Build a bridge which contributes to the corridor’s status as the premier gateway to Montréal through its architectural features and quality that complement Montréal’s landscape; and •Promote sustainable transportation by building a dedicated public transit corridor and providing for a safe and accessible multi-use path for pedestrians and cyclists. The project is one of the largest infrastructure projects in North America. Through a public-private partnership (P3), our Government will deliver a world-class project on time and in a manner that ensures the best value for Canadian taxpayers. The project will create thousands of jobs and have a positive impact on the local, regional and national economies. For more information on the New Building Canada Plan and the New Champlain Bridge, I encourage you to visit the Infrastructure Canada Web page at www.infrastructure.gc.ca.
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MANITOBA HYD R O
MANITOBA HYDRO
A unique utility, with some powerful projects
B
ack in the 20th century, when the Manitoba Power Commission and Manitoba Hydro Electric Board united to form Manitoba Hydro, pushing out into far reaches of the Canadian province was no easy business. Now, says public affairs manager Scott Powell, the world has opened up somewhat but the ingenuity, expertise and sheer determination required to see the corporation’s current projects through to fruition still necessitates an equal measure of drive. “Like Quebec, parts of northern Manitoba are extremely remote and we face a number of huge challenges even today,” he points out. “There are the extreme climates: the very hot summers and the long, cold winters, and then the access to the sites in
By: Abigail Saltmarsh order to be able to break ground. “When we began working on our first major northern projects back in the 1950s, there were no roads and there was very little infrastructure. But, even today, we are working in locations that are really quite unique - and we still require critical infrastructure for our current projects, such as Keeyask and Bipole III.” “Unique” is a term that is frequently applied to Manitoba Hydro, one of the largest and longest-standing energy utilities in Canada. The history of the electrical industry in the region goes back to the late 19th century, with the formation of the Winnipeg Electric Railway Company and the Manitoba Electric and Gas Light Company. Over the decades these and other companies evolved until Manitoba Hydro became the sole supplier of electricity. Today it remains a crown
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corporation, a publicly owned utility that is responsible to the provincial government, but operates as a separate entity. It is one of the largest energy utilities in Canada, with capital assets-inservice of more than $17 billion at original cost. Vertically integrated, it is involved in the planning, design, construction, operation and maintenance of all elements of electricity and natural gas infrastructure, serving almost 562,000 electricity customers and nearly 275,000 natural gas customers in Manitoba. “What is unique for us as a utility is that over 95 per cent of our electrical energy comes from renewables,” Mr Powell continues. “We do have some natural gas generation as a back-up and purchase some wind power from independently-owned wind farms, but nearly all our
MA N I TO BA HYDRO
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MANITOBA HYD R O
electricity comes from reliable, self-renewing water power.” Manitoba Hydro’s energy is generated at 15 hydroelectric stations, most of which are on the Winnipeg, Saskatchewan and Nelson rivers. It is among the lowest cost providers of domestic electricity rates in
Canada and exports surplus electricity to utilities through its participation in three wholesale markets in Canada and US. It is also the major distributor of natural gas in the province, taking it out to nearly 100 communities in the province. Among the corporation’s
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current pioneering projects are Keeyask and Bipole III. The Keeyask Project will see the creation of Manitoba’s fourth largest generating station. It will be situated at Gull Rapids, some 725 km north-east of Winnipeg, on the lower Nelson River, and will be a source of renewable
MA N I TO BA HYDRO
energy, providing approximately 695 megawatts of capacity and producing an average of 4,400 gigawatt hours of electricity each year, explains project manager Dave Bowen. “One of the things we are particularly proud of is that Keeyask is a collaborative effort between Manitoba Hydro and four Manitoba First Nations: Tataskweyak Cree Nation, War Lake First Nation, York Factory First Nation and Fox Lake Cree Nation, working together as the Keeyask Hydropower Limited Partnership (KHLP),” he says. “Manitoba Hydro is responsible for project management during construction, and will own at least 75 per cent of the equity of the partnership. The four First Nations, known collectively as the Keeyask Cree Nations, together have the right to own up to 25 per cent
of the partnership.” The $6.5 billion Keeyask Project has three major components: the Keeyask Infrastructure Project, Keeyask Transmission Project, and the Keeyask Generation Project. Construction on the infrastructure project began in early 2012 and was substantially completed in July 2014. Work began on the generation project following that, and the first generator is expected to come online in 2019, with all units online by 2020. “The infrastructure project saw work on access road construction and camp development: the site is remote and we basically had to construct a town. Along with the weather, one of our greatest challenges is attracting and retaining the labour we need to build Keeyask – our on-site workforce will peak at
approximately 2,000 people. We are competing against other remote Canadian projects and our best in class camp provides workers a safe and comfortable home away from home,” Mr Bowen stresses. “We also have to ensure we maintain our focus on minimising environmental impacts throughout this project. It is about working in ways that minimise any environmental impact at every stage.” The Bipole III Project faces many of the same challenges as Keeyask – rugged terrain, severe climate, attracting and retaining skilled workers, as well as environmental considerations. And here again, the creation of high quality staff facilities is a priority. Bipole III, explains deputy project manager Alastair Fogg, is a $4.6 billion transmission
Proud builders of the Keeyask Generating Station. Manitoba.
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MANITOBA HYD R O
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MA N I TO BA HYDRO
reliability project with a projected in-service date of 2018. “What is unique again about Manitoba Hydro is that 75 per cent of the electricity used in Manitoba is generated at our northern generating stations. This energy travels south, through the Interlake region, down two high-voltage direct current (HVDC) transmission lines known as Bipole I and II, which run side-by-side,” he explains. “The idea behind Bipole III was to provide an alternative path.” Being in such close proximity to each other, he continues, the Bipole I and II lines are susceptible to being impacted by a single weather incident, such as a major ice storm or tornado, or forest fire event, causing major power outages. They also rely on a single converter station in the south to convert the direct current power back into alternating current for distribution into the provincial power grid. The Bipole III Reliability Project includes two new converter stations. One of these, the Riel Converter Station, would be in the south to provide another major point of power injection into the transmission and distribution system. The other would be in northern Manitoba, northeast of Gillam (the Keewatinohk Converter Station). As with Keeyask, Mr Fogg insists, the traditional knowledge of the people living in the area was incorporated into project planning. “Aboriginal Traditional Knowledge (ATK) is valued for the contribution it made to providing complementary understanding about the environment and people” says Mr Fogg. “We recognise the value of ATK and that this knowledge was incorporated during the
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MANITOBA HYD R O
planning and environmental assessment process”. Angie Adams, vice-president of major capital projects at the corporation, stresses Manitoba Hydro’s continued success as a whole is linked to the economic and social sustainability of the communities in which it operates. The aim with both Keeyask and Bipole III is to provide early business opportunities for northern Aboriginal people, and other northern and Manitoba workers, and that - as the projects progress - there will be continued training and long-term prospects for career development. “Our corporate social responsibility philosophy is to ensure best practices and to work closely with all communities where we operate,”
she says. “And moving forward our aim is to ensure that we continue to conduct our business in this way. “I do believe that we have built a strong relationship between Manitoba Hydro and its partners, and this will serve to put everyone involved in these projects in a good position for the future.” As Manitoba Hydro heads towards fruition on its current projects, Mr Powell concludes, there are also other lessons to be learned from Keeyask and Bipole III. Not only is environmental and social best practice at the corporation evolving but the process of planning and constructing the projects is resulting in invaluable knowledge, knowhow and experience at every
The Keeyask Generating Station will produce an average of 4,400 gigawatt hours of energy per year
Powering Manitoba The Keeyask Generating Station is Manitoba Hydro’s state-of-the-art facility that will put local people to work—including First Nations—and will produce enough electricity to power 400,000 homes. We are proud to be chosen to deliver final engineering and design services for this project, continuing our 50 years of service in Manitoba.
E N G I N E E R I N G • C O N S U LT I N G • P R O J E C T D E L I V E R Y • T E C H N O L O G I E S • O P E R AT I O N A L P E R F O R M A N C E
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MA N I TO BA HYDRO
level within the utility. “A lot of the other infrastructure Manitoba Hydro relies on was installed after the second world war, when the first major rural electrification programmes took place,” he points out. “Much of this will need to be renewed over the next 10 to 20 years and we will also have to add new capacity to meet the growing needs of our customers. “The experience we gain on projects such as Keeyask and Bipole III will serve us well in the long-term as we move full speed into renewing, rebuilding and expanding our existing assets as they come to the end of their service lives. Being able to continue to provide our customers with reliable service at affordable rates is always our goal.”
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J EAN WAR WICK CO NR OY
JEAN WARWICK CONROY
L
PILLARS OF THE PROVINCE
iving in the province of Ontario, in the city of Sudbury, the life stories of Mrs. Jeanne Conroy and her husband Ted Conroy can be described as the embodiment of everything the Economic Review represents. Their passion and ambition resonate heavily with this publication, as they illustrate how valuable service to the community can impact the lives of not just local, but national communities. Married for twentytwo years, Jeanne and Ted Conroy, now a highly decorated couple, have arguably more love for the community of Sudbury than ever. Firstly, Jeanne has an
educational history bursting of achievements. As a graduate from the University of Western Ontario, a nursing degree saw Mrs. Conroy complete imperative courses at Victoria Hospital’s School of Nursing. Jeanne did not halt her progression academically there however, and moved on to graduate from the Diet Center School of Nutritional Dietology as a certified dietologist. This achievement included courses in behavior modification. A B.Sc.N. nurse by profession, her career involved additionally teaching within the medical field, prior to her pinnacle decision to become an entrepreneur. Jeanne founded the Diet Center
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of Sudbury, and continued to operate the business for twenty years. Anyone can agree this is some achievement alone. Contrarily, Mrs. Conroy herself decided to additionally undertake a community vocation, serving as the president of the Greater Sudbury Chamber of Commerce, as well as chairing the Chamber’s Centennial Celebrations. Additional to this, Jeanne was an active participant in the ‘Careers 2000’ and ‘The Next Ten Years’ initiatives. Her most recent participations have subsequently led to her leading the Business Retention and Expansion Program for the Chamber of Commerce and as a consequence, a new ambassador
J E A N WA R WI C K CONROY
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JEAN WAR WICK CO NR OY
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program. As well as this, Jeanne was the Chair of the Sudbury Police Services Board, which is unusual for a woman, and received the Honorary Degree of Doctor of Sacred Letters in 2013. Her husband Ted had previously got his Honorary Doctorate in 2010. This remarkable woman’s achievements are continuous, as is her progression in active community participation. This is explicitly clear within one of Mrs. Conroy’s most recent accolades, as she chaired the 2011 United Way Annual Campaign. Her campaigns prior to this are of no insignificance either as they include the Business Community Division, the Retail Section and the Leadership Category. Not only does Jeanne devote her valuable time to community projects, but her charitable work likewise deserves recognition. She has taken a seat on several
fundraising committees, such as the St. Joseph’s Villa and Northern Ontario Medical School bursaries. Whilst on the Laurentian Board of Governors, she additionally helped fundraise for schools. The list of fundraising for education and in particular medical education continues; Jeanne was on the committee to recruit Doctors to the North, and in 2003 raised capital for bursaries to provide financial support to the students at a new medical school. The following year, not satisfied with aiding financially to a medical school alone, Jeanne assisted in raising capital for a new Hospital within the community. Most recently Jeanne has joined the Maison Vale Hospice Foundation committee which is fundraising to build a children’s wing. Her ambition for communal impact is boundless, as in addition to academic and
charitable achievements within her lustrous career, Jeanne Conroy furthermore sat on the Northeastern Ontario Cancer Research Board. Whilst co-chairing the Breast Cancer Luncheon four times, she raised over $120,000. Moreover, Jeanne co-convened the St. Joseph’s Gala for the past five years which raised $70,000 last year alone. Not satisfied with financial donations alone, Mrs. Conroy, as a member of the Grant Review Team for the Ontario Trillium Foundation for six years, has donated a wild game dinner for the Sudbury Theatre Centre’s Annual Dinner Auction for the last fifteen years! Jeanne continues to return to the roots of her education, remaining an avid canvasser for Diabetes; she has acted in the past four celebrity night fundraisers for the Sudbury Theatre Centre in support.
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J E A N WA R WI C K CONROY
This unbelievable amount of charity work as unsurprisingly resulted in many accolades being awarded to Jeanne Conroy. This list is predictably endless. They include honors such as Sudbury Business and Professional Women’s Club’s ‘Woman of the Week’ as well as the annual ‘Bernadine Yackman Award’. Further to this, the club presented her with the Business Leadership Award. As well as honors for her community club, Jeanne earned the prestigious Commemorative Medal for the 125th Anniversary of the Confederation of Canada. The Greater Sudbury Chamber of Commerce honored her with a Life Membership and the Rotary Club of Sudbury Sunrisers presented her with a Paul Harris Award. Additionally, in 2004, the Ontario Medical Association granted Jeanne the Community Service Award for outstanding contributions to the health and welfare of the people of Sudbury. A year later, she became an honorary member of the Board of Directors of the Northern Cancer Research Foundation. Most recently, Jeanne received the Ontario Medal for Good Citizenship (OMGC), the 2011 Community Builders Hall of Fame Award and the Queen’s Diamond Jubilee Medal. Ted Conroy, like his wife, possesses an immeasurable amount of personal determination. Ted grew up with mining in his blood; his father, a bonus hardrock miner and his mother under the employment of a gold mining company. His education saw him study at Sudbury Mining and Technical School, followed by Victoria University in Toronto and subsequently the Osgoode Hall Law School at York University.
Excelling in academia is a similarity regarding traits with the couple, as Mr. Conroy graduated with the Governor General’s Silver Medal for the highest marks in English that year, as well as noticeable achievements out of the classroom; taking home the Victoria Athletic Letter in hockey, soccer, lacrosse, track and field. This extremely versatile individual worked for the Ontario Hydro painting transmission towers and the Foundation Company of Canada to build surface installation for fresh air underground. He found a talent for many things including; gardening as a wild blueberry picker, Trapper, working at International Nickel Company as a qualified driller, blaster timberman, trackman and bonus underground miner. Embracing the same entrepreneurial talents as his wife, Ted founding and operated Nordic Ski Hills resort and prospected for Nickel, uranium and chromium. Utilizing an additional flare for law, Mr. Conroy became a barrister and solicitor in 1958; starting up a private practice of his own. Using his academic abilities as an educational tool is clearly as important to Ted as it is to Jeanne as he taught business law in both Western University and Laurentian University. Furthermore, Ted was a Deputy Judge for a small claims court, fully evidencing his talents within the law vocation. Finally, in 1988 Ted became a Specialist in Civil Litigation. Ted, although choosing a vocation heavily involving law, did not forget his heritage, and in 1967 he was appointed to the Membership of the Canadian Institute of Mining and Metallurgy. In addition, in 1981 he became a Life Member Sudbury Game and Fish Protective
Association. Not only is Ted as academically gifted, and as passionate about education as his wife of over two decades, but in addition his charitable efforts can be recognized. Ted, along with eleven others, began Huntington University which created Laurentian University; additionally, sitting upon the committee to create the School of Commerce at the Laurentian University. Ted is now Adjunct professor of law at Laurentian University and has been Chancellor of Huntington University for 9 years. To note, he was the Local President of the Canadian Cancer Society; evidencing his compassion for illness as Jeanne has. Moreover, Ted was a Health Sciences North fundraiser and on a committee to attract and retain physicians. Ted Conroy’s actions have received recognition. He has a new lecture series and awards program named in his honor at Huntington University; only fitting as he was around when the university began in 1960. This annual event took place for the first time this year at St. Andrew’s United Church, May 28, recognizing Ted’s substantial contribution. Without argument, this incredible power couple have devoted their lives serving their community. We ponder as to how they have found the time whilst achieving these various accolades to plant an entire forest within their back garden; truly astonishing. Whether through financial or educational means, both Jeanne had Ted Conroy have left an irrevocable mark on those around them, as well as founding buildings that will remain to contribute to the lives of young citizens in the future.
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Volvo V40 R-Design D2 2.0 Diesel – AUTO - GT By: Daniel Edwards Comparable cousins
This medium-sized family hatchback stands alone in its sector, slightly cowering in the shadow of the upmarket popular German alternatives, such as the Audi A3 and VW Golf. The BMW 1 Series and Mercedes A-Class come a close second, but to be honest if you want to be predictable and stand in line and you aren’t enthusiastic about “the usual suspects,” then the classy Volvo V40 is a very worthy alternative. You’ll be even more impressed with the price tag of around £22K compared to its European neighbours.
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“When I think of Volvo, I think Swedish tank, safe as houses, flat pack furniture and ABBA�
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Outside the box thinking
The Euro NCAP rating is naturally five-star, which translates to “safe as a Swedish-built house, complete with flatpack furniture.” Its innovative driving assistance ensures lane discipline and no slow vehicle collisions, it has faultless connectivity and enough airbags and sensors to detect the smallest thing that could impair your journey, which is everything you’d expect and more. Volvo have aptly named these as Drive-E, SENSUS and IntelliSafe. Now, with these bold names for driving, once
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rear headlights have been positioned to ensure maximum vision for other drivers who dare to get too close.
Family values
Taking the family out is a little tricky as the car is less roomy than its European counterparts, but front and rear seating is very generous and delivered me to my destination comfortably and refreshed. The boot comes out a skinny 335 litres, compared to a VW Golf, which delivers a huge 380 litres. But to be honest, if you need more room for your flat-pack, hire a van instead.
Impressive strides
I got behind the wheel of the V40 I hoped that even with my experience these features would keep me on the road despite any day-to-day distractions.
Prepare for battle
Once behind the wheel you’re thrust into Volvo’s carefully thought-out cockpit. Taking your seat, the driving position is comfortable and gives a defined view of everything around you. Once you push the central command START/STOP button, all of the car’s bells and whistles leap into life. Even the huge list of accessories (if you need any more that is) needs its own website. The EPAS (Electronic Power Assisted Steering) engages and the steering wheel is light to even the heaviest touch. Once the infotainment system engages, with no prompt from me, the Bluetooth connectivity immediately
ensures I’m contactable and legal; the web browser helps me find my nearest flatpack furniture outlet, closely followed by the postcode, punched into the intelligent touch screen SAT NAV.
Swedish perspective
When you pause for a moment, you’ll realise you’re actually in a sporty Volvo, two words not normally appearing in the same sentence. But Volvo have got it right. The interior has been adorned in chrome and blue defined R-Design livery throughout, making the car refined and elegant – and far from a grandad mobile. The day running lights are sharp and defined, the honeycomb grill sitting in the wider shoulders of the V-shaped bonnet is crisp and classy, which is synonymous with Volvo’s new branding and style. Even the high placed,
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Once out on the road, the ride, handling and power tells me I’m not in your average hatchback. It’s dynamic and charismatic in the corners but plays its safety trump card at all times. The power is there with uncompromised ease and keep its impressive MPG intact. Even changing lanes, overtaking, parking and driving at speeds between 10mph and 70mph are all monitored as if you have your very own personal driving guardian angel, which is impressive. Volvo have succeeded in keeping the build quality, safety and styling as a finely tuned, no-nonsense every day classy motor.
Signing off
After having this car for around five days, I encountered all weathers and all road types. I found the Volvo to be an excellent addition to any family, couple, new or senior driver. Its overall picture painted by Volvo made me appreciate the hard work gone into getting the balance of this car right. Although the name Volvo didn’t inspire me before this road test, I can safely say that the Swedes have got it spot on and it gets the thumbs up from me. Score 4/5
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JOY G LOBAL
JOY GLOBAL Exp a nd in g it s p r es enc e i n u n d e r g r o u n d h ar d r o c k m i n i n g
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By: Abigail Saltmarsh
t has been almost 18 months since Joy Global Inc announced the acquisition of Canadian-based Mining Technologies International Inc (MTI). Since then the worldwide leader in high-productivity mining solutions has seen its newest
division go from strength to strength, building on the platform of organic growth in underground hard rock mining it started some seven or eight years earlier, and cementing its position as a serious contender within this section of the market.
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Josh Wagner, general manager of hard rock, says the acquisition was successful in enabling Joy Global to push ahead with its strategy of expansion into the nickel, palladium, platinum, gold, and copper markets, among others, and in bringing some of the corporation’s own cuttingedge technology to the world of
hard rock mining. “We saw this as a huge opportunity for us to increase our presence around the world and grow our business,” he admits. “If you look at hard rock mining, there are huge mines in Latin America, South America, central and southern Africa, as well as Eurasia and central Asia – and in
all these places there are great opportunities, which remain untapped. We saw the acquisition of MTI, with its products as giving us the potential to move into those areas.” Joy Global has a long history in mining innovation and pioneering production, reaching back to 1884, when Alonzo Pawling and
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Henry Harnischfeger launched their partnership to found the P&H product line, and the early 1900s, when inventor Joseph Francis Joy became known for his underground Joy mining equipment. In blending the Joy and P&H lines, along with others acquired along the way, Joy Global has developed to become a market leader, focusing on the manufacture and sale of equipment and direct services for the mining industry. The company’s products and related services are used extensively for the mining of energy, industrial and hard rock minerals, and it prides itself on providing a full range of value-added, post-sale services and a commitment to helping its customers mine ores and minerals at the lowest cost per ton. “We now have over 150 facilities in 20 countries and employ approximately 15,000 people,” Mr Wagner points out. “We are set up to provide direct service, as our sales and service teams have a presence and are ready to respond in the countries and regions where our customers are based.” The corporation is headquartered in Milwaukee, Wisconsin, with manufacturing, service and sales locations all over the globe. It continues to grow its global direct service footprint, recently opening new state-of-the-art service facilities in La Joya,
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Peru, and Kemerovo, Russia. “This move into hard rock is really our newest voyage, which began with some organic growth, with the development of dynamic cutting systems for hard rock applications,” he says. “Subsequently we have gone down the road of acquisition, starting with MTI in 2014 and much more recently with Montabert , in Lyon, France.” Montabert specialises in the design, production and distribution of hydraulic demolition and drilling equipment for use in mining, construction and more. Adding Montabert’s products to Joy Global’s worldclass offerings bringsadvantages for both companies: Montabert will continue to develop industry-leading technology and products, and by adding drilling products to its offerings, Joy Global strengthened its hard rock
business even further. The acquisition of MTI was the first step towards bringing Joy Global a broad-based hard rock mining product portfolio. It was family-run business, which had been in operation for several generations and had more than 230 employees. Based in Sudbury, Ontario, known globally as the capital of underground hard rock mining, it was well known in the industry for its rugged and reliable equipment, including jumbo drills, load haul dump (LHD) trucks, shaft drilling equipment, long-hole jumbos, in-the-hole (ITH) drills, rotary blasthole drills, buckets and bucket wear parts, as well as custom-designed equipment for specific underground requirements. The equipment is ideal for nickel, potash, palladium, platinum, gold, and copper mining and is marketed today
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under the Joy brand. “The integration of MTI has gone very smoothly. Not only has it brought us this portfolio of high performance products but in order to move into a highly specialised area, such as hard rock, you have to have people with experience,” says Mr Wagner. “The acquisition has given us those people and now in line with our strategy we are now focusing on them, as well as on investment in the facilities. And, as we continue to move forward, we are starting to concentrate on lean philosophies and on the implementation of our operational excellence programme.” As difficult global economic and market conditions have continued, Joy Global’s JBS Operational Excellence initiatives remain in place across all divisions, departments and
J OY G LOBAL
company functions. Focusing on eliminating waste, simplifying processes, automating where possible and ensuring the safety of all employees, JBS supports the corporation’s drive for competitive advantage and, indeed, in 2014 enabled it to exceed its cost savings targets. Over the course of the next five years, Mr Wagner stresses, the aim is to more than double the size of the hard rock business, through further operational efficiencies, greater global reach, more investment in research and development, and the ongoing launch of new products. Joy Global’s vision is to remain a world-class service company, delivering the most reliable and productive products, systems and solutions that solve mining’s toughest challenges. “The mining market is very soft at the moment and this latest focus on underground hard rock mining is one of our major strategic growth initiatives. Joy Global will come through this downturn by taking the opportunities that are there and making the most of them. “The aim now is to continue to leverage the technology knowhow that we already have right across the corporation and use it to accelerate the development of more new products and systems,” he insists. “The mining market is cyclical: I am in no doubt that it will come back before too long as minerals will continue to be required on a day-to-day basis.” And, he adds: “Through our unique solutions, ongoing development of new technologies and focus on the sales and service side of our business – particularly our direct service and our ability to communicate directly with our customers – I know we will be in a very strong position to continue to grow. We are very optimistic about the future of Joy Global.”
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Can you work through decline? The Workforce of Canadian Mining.
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he past few years have been far from kind to the global mining sector, as economic volatility, declining commodity prices and a catastrophic lack of investor confidence have all combined to create a perfect storm which has decimated the mineral ecosystem. Canada’s own $54billion mining sector which, due to its size and scale, benefited hugely during the boom years, has suffered greatly at the hands of this crisis, which is unprecedented in its wretchedness, and long standing service providers, like IOS Services Geoscientifiques, are positioned to witnessed
the far reaching consequences of the slump. As the president of IOS said, “Less capitals were overall raised in 2015 by junior companies in Québec than our 2012 revenues!” “Everybody hopes we’re at the bottom of the trough, but we need to be realistic,” Rejean Girard, President of Quebecbased IOS Geoscientiques Inc, said quietly. “The whole industry is in a very, very difficult place now. Things have been challenging for a long time and still will be. We need to just stay calm and poised for opportunities to come.” As an industry veteran with over thirty years of experience, twenty-three of
which running one of Canada’s elite geological services firms, and with involvement in more than 1300 projects, Girard is experiencing his fourth industry downturn. And yet, despite the severity and doggedness of the present crisis, Rejean has been astounded by the resilience of the explorer against the situation, which has slowly strangled the mining world in recent years. Massive layoffs, expansion delays and the indefinite shelving of projects has become depressingly commonplace in recent times. But thus far, IOS’ reputation and standing in Quebec, coupled with its team’s aversion to making the panicked kneejerk
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decisions, has allowed them to turns slowdown into challenges. Keeping exploration business afloat is admittedly a success of sorts during such difficult times. Exploration industry is kind of an ecosystem, running as a complex interplay requirig multiple skills. There are a number of highly specialized firms who are currently at risk, which may cause a lot of disarray. This goes from specialized financing groups, to equipment manufacturers, high-profile consultants, etc. To maintain their capacity, such groups require a critical mass of staff, which they just cannot support at the moment. Rejean is greatly troubled by what he sees going on around him, not for him, but for his fellow explorers. Quite simply, the exploration sector is in a panic, and as available funds continue to dry-up, inevitably, cash-starved companies are resorting to more extreme measures to ensure their survival: ultimately sacrificing their skilled peoples. We are used to seeing such actions from some small companies, but major producers are following suit and this makes it scary. “Although they certainly have their justification, managers seem panicking and try to undercut costs below sustainable levels, jeopardizing their capacity to rejuvenate resources and thus the industry as a whole– we’re seeing it everywhere. It seems they forget they need human resources to find mineral resources. It takes years to properly train a geologist, and seconds to lose your investment!” “Skilled staff shall be a top priority during doldrums, and more efforts are needed in this regard. Alas, skilled staff are often seen as a luxury you cannot afford” Rejean said. He
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continued, “keeping your skilled workforce is what will set you apart from the rest of the pack when the cycle turns and the industry starts to pick-up again. Hiring new workers does not instantly result in a coherent team; you have to build it through time, through tough times. At the onset of a rebound, it is too late! By losing our expertise, we are jeopardizing our industry as a whole in the medium to long-term.” “Companies invest humongous amounts of money in exploration projects, and typically less than 10% of the total budget goes into paying their professionals; the geologists and those people who are needed to make decision and turn the project into success. The rest is mostly swallowed up by drill rigs, labours, analytical and logistic costs. So when you try to save money on that 10% by swapping highly skilled and experienced guys for low-wage, less-trained people, you are at risk of seeing
the project derailed and in danger of losing the other 90% of your investment. I’ve seen this happen again and again and again. Whatever they say, mines are not found by sheer luck; you need experience as well. The mining industry is competing against other industries to access the best staff. If we do not treat them properly, they reorient their career, and it’s a net loss for the industry… But I agree, the question is complex.” This is perplexing stuff – doubly so, when you consider that the vastly higher machine costs are also the most elastic. Drilling cost has decreased by more than 50% in recent years, mostly by using experienced drillers who are simply efficient at work! Same logic should apply to the geologist, but it seems a quandary. An employee of a necessary calibre is the cornerstone to overall cost reduction, as Rejean reiterates. Cost saving comes from innovations and head-scratching, not through
undercutting workers. There are mechanisms available to spread the cost of manpower; they just need a more refined and innovative practice. So, what shall we do? Even a major recession as ruinous as this one can present great opportunities for those with sufficient vision to seize them – and the benefits of being ready for the next boom overshadow the risk currently taken. First, do not expect employees to be faithful if you are not faithful to them. Be benevolent of them and make sure they are both valued and appreciated. Secondly, have a contingency plan in place if projects dry up. For exploration companies, this means to have mining data, industry intelligence or compilation work always handy on the shelf. It does not cost much, and can be applicable as flow-through or exploration credits if properly managed. It provides you with both staffs and projects ready for the next ride. Sending staff to training programmes can also be hugely beneficial. For a service company as IOS, this means reorganising the scientific and technical staff into research projects: we are scientist after all! There is plenty of subsidies and leveraging for such. Just with the tax credits, 80% of the salaries can be covered. Your money will stretch much further. Additional to this is the plethora of programs, where you partnership with universities and government organizations. For sure, R&D is risky, it may not work, but if it is successful, you are in a quantum leap! For example, there is way to send your employees fully subsidized back to university for master or doctorate studies, where their research is in direct relation with your in-house research. Slow markets are beneficial in the sense they free the staff and the mind to conduct
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such product development. If you try such in boom-time, you are wasting precious resources which needs to be dedicated to profitable production. Furthermore, in Rejean’s view, “when you get into a recession whereof others divest their human resources - just seize their missed opportunity”. He continued: “In current time, it’s very easy to cherry pick top guys. Curiously, they are resilient and are less demanding than those of a lesser calibre can be. They know what they worth and they understand the industry. “It might be counterintuitive to invest in them, even if you are struggling to get work, but in two years, you will congratulate yourself!” In the last recessions, two generations of geologists were sacrificed. About 50% of the active geologists leave the industry after each recession. This as lead to a situation now where only few geologist with ten to twenty years of experience are left, and the industry is being populated with old timers dedicated to corporate work, and younger employees with insufficient experience. Experienced geologists, who still have the passion to do fieldwork, are precious and will be the cornerstones of the next boom. Rejean explains: “You’ll have then a severe shortage of the very skilled people - not for the labour, not for the guys running the trucks, but the project managers. To train an expert geologist takes about ten years, and it will be necessary to rebuild this expertise. As industry, we
shall capitalize on these guys. If we do nothing, they will exit the industry permanently, should the current cost-cutting policies continue.” The overarching problem when you sacrifice highly skilled geologists and engineers is that it is hard to entice them back into the inevitable instability of the mining industry. It goes without saying that this could impact heavily on the quality and capability of Canada’s world-renowned mining industry in the long-run. “When you’re young, you’re ready to travel, you take risks and can be mobile, but if you get a stable life for a few years then you build up your life accordingly. It is very difficult to then go back to working at the end of the world”, Rejean adds jokingly, “The wives learn what it’s like to have the geologists home.” In addition, he adds; “When you hire somebody, it takes about a year before they are efficient in your business, no matter how skilled they are beforehand, so to be ready in two years for the next boom, you need to invest now.” The simple, forward thinking view of longserving industry veterans, such as Rejean, is this: despite the challenging economic climate, now is the opportune moment for investment and retention. “Don’t be scared to spend money to maintain the right guys at work. You shouldn’t see them as an expense, but as an investment.” “An accounting system simply doesn’t show the true value of your investment in staff.”
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ANACONDA MINING A na c o nd a : S a fe ty. I n te g ri ty. Re l i a b i l i ty.
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By: Sarah Louise Brooks
n an industry as rigorously competitive as the gold production, Anaconda Mining Inc is a company of exploration that fundamentally strives for stability. The junior gold production company focuses its mergers and acquisitions
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target searches primarily on Canada and the United States, with a particular focus on Atlantic Canada. Anaconda correspondingly operates the Pine Cove open pit mine as well as controlling approximately 6,000 hectares of exploration property in the Baie Verte
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Mining District on the Ming’s Peninsula, Newfoundland, Canada. In recent years, the United States Geological Survey’s (USGS) provisional data estimated that global gold production increased from 2,800 tonnes in 2013, to 2,860 tonnes in 2014, showing a 2.1% increase. From the ten highest producing countries in the gold mining industry, Canada, along with only four others increased their personal output, whereas mining giants such as South Africa and the US saw a decline in production. Anaconda Mining contributed to Canada’s achievement of a record gold output in 2014, climbing the table by two positions, surpassing the likes of South Africa along the way. A key strength to Anaconda Mining’s continued contribution to the growth of gold production within Canada is that it actively seeks progression. Currently debt free, the company aims to discover and develop further resources within its current project areas, doubling annual production from approximately 15,000 ounces to 30,000 ounces.
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A N ACO N DA M INING
These figures refer in main to the Point Rousse Project. Previously known as the ‘Pine Cove Project’, it produces varied deposit types with a cumulative twenty-kilometre strike length. Three primary gold trends are currently being explored within the project area; The Pine Cover, Stog’er Tight and Romeo & Juliet deposits. All deposits are within 8 kilometres of the Pine Cove Mill. Anaconda believes that 1,000,000 ounces of gold can be discovered and develop from multiple deposits. With all deposits in close proximity to the fully operational mill, Anaconda can afford to develop smaller deposits around the Pine Cove Mill; incremental analysis. The company boasts strong relationships with both the provincial and local governments, as well as universities, colleges and various funding agencies. From a statistical standpoint, Anaconda Mining announced certain financial and operating results for fiscal 2015, recording sales of 15,821 ounces of gold, which not only improved dramatically from the previous year’s production by 9%, but also showed a significant increase in sales inclusively. The Point Rousse Project saw Anaconda generating $22,234,072 in revenue,
Supplying the Mining and Mineral Exploration Industries since 1968
We are pleased to have played a part in Anaconda’s growth into a successful producer and sincerely congratulate management and all employees on that success. P. O. Box 70, 151 Cpl. Bouzane Blvd. Springdale, NL A0J 1T0 Tel: 709-673-3905 Fax: 709-673-4466 Email: hewmin@nf.aibn.com
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with an average sale price of $1,405 per ounce; seeing a 10% increase in revenue from fiscal 2014. The rise in revenue was determined not only due to the average sale price rising from £1,384 per ounce in fiscal 2014, to $1,405 in 2015, but also due to the volume increase in sales; 1,200 ounces higher than the prior fiscal. The company’s mill processed over 343,000 tonnes of ore, 38,000 more than fiscal 2014. This is largely due to the mill availability and overall recovery increasing 92% and 84% respectively; up from 88% and 83%, respectively. These steady and prominent increasing figures are a determining factor in Anaconda Mining’s progressive attitude as the company looks to acquire additional projects to raise its annual production to approximately 100,000 ounces. The company’s latest acquisition of Corkscrew gold property, with 100% undivided interest is a certain step to stable growth. The property consists of a 346.4-hectare mining lease contiguous to the current Point Rousse Project on the Ming’s Bight Peninsula. In addition to including five gold occurrences located within the Goldenville Trend on the Ming’s
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Guy J. Bailey Ltd. has built an outstanding relationship with Anaconda Mining Inc. Our Company provides and operates all of the heavy equipment for the load haul dump activities at the Pine Cove mine site which is owned by Anaconda Mining Inc. In addition, we provide heavy equipment and skilled labour for their crushing and exploration activities along with other general contracting services.
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Bight Peninsula, Corkscrew is a 3.5-kilometre section of this trend immediately west of the portion already under the ownership of Anaconda. Under this new agreement with Seaside, Anaconda’s land share within this Goldenville Trend has doubled for a possible strike length of eight kilometres. The Goldenville Trend contains a rock already known to host gold deposits as seen in other parts of the Baie Verte Mining District; a prospective ironstone formation. Anyone in the Canadian mining industry will confirm that with Anaconda’s announcement of effectively controlling all areas of interest within the Point Rousse Project, as well as full control of these
highly prospective group of rocks under the Corkscrew Seaside agreement, that the company’s future in the Canadian mining industry is looking increasingly golden. In a recent post on the company’s website, Anaconda President and CEO Dustin Angelo was quoted saying the following: “Our business plan includes discovery and development of a source of high-grade gold which will be blended with the existing baseload feed at the Pine Cove Mill. The Goldenville Trend, now including Corkscrew, has the greatest potential to host high-grade deposits, as proven elsewhere within the Baie Verte Mining District.” Anaconda Mining is
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a company committed to responsible resource development. The company strategizes, monitors and minimizes environmental impact, guided by a Corporate Environmental Policy that consequently assists the management of environmental risks and develops effective mitigation strategies aiming to protect all stakeholders; inclusive of the environment, local community and its employees. In regard to employees, Anaconda provides training that encourages active participation in dialogue pertaining to environmental and community concerns, as well as ensuring each and every employee and contractor
A N ACO N DA M INING
adheres to the Corporate Environmental Policy. The company’s policies strive to develop, insinuate and operate facilities that are based on an efficient usage of energy as well as resources and materials, even after project closure. A key strength and additional reason for Anaconda’s continued growth in output is how the company deals with difficulties such as climate intervention. Winter weather acted as an influential factor towards Anaconda improving its current production process. For example, the company modified its schedule and overall approach to crushing ore, introduced new reagents to control dust and prevent freezing, and thus managed to reduce the climates overall impact at the crusher and on
stockpiles. Moreover, Anaconda improved the preventative maintenance program, which thus contributed to a reduction in maintenance costs and a significantly higher availability. Anaconda also improved the technology it uses when during the production process, as blast movement monitoring technology and a GPS system installed on the excavator have maximized head grade and reduced dilution from 20% to less than 10%. These technological improvements and climate considerations have aided Anaconda Mining to improve its overall production and move forward in a time of economic uncertainty. Finally, the Argyle zone was discovered by Anaconda in the nine months ended February, 28, 2015, as a
continued exploration project, subsequently resulting from the success of the Point Rousse Project. The new discovery is located approximately 5 kilometres from the Pine Cove Mill, and includes two areas of mineralization separated by only 200 metres. The significance of this discovery is both the extension of the Scrape Trend and the demonstration of the possibility of new discoveries being made near the Pine Cove Mill. It equally illustrates Anaconda’s clear geological understanding and strength of its exploration model. There is no denying that with the solidity of forward thinking, proven in the omission of waste and positive outlook to expansion, that Anaconda Mining Inc. is demonstrating safety, integrity and reliab ility.
Established 2004 Brampton and Vancouver Offices
• Exploration Program Recommendations • Geological Reports and Resource Estimates • Open Pit and Underground Mine Design • Preliminary Economic Assessments • Pre-Feasibility Studies • Feasibility Study Contribution • 20 Associates (P.Geo. and P.Eng.) • NI 43-101 Compliant Technical Reports • Due Diligence Reviews for Potential Acquisitions • More than 250 projects completed to date in N & S America, Europe, Africa and Asia • Gold, Silver, Base Metals, PGE, Diamonds
www.peconsulting.ca Contact: 647-868-8526 • 905-595-0575 Ext 222 gene@peconsulting.ca • andrew@peconsulting.ca
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ENERGOLD
ENERGOLD A s ens it i v e ap p r o ac h to d ri l l i n g
G
By: Abigail Saltmarsh
lobal specialty drilling company Energold may have propelled itself to the leading edge of its sector with steely determination in recent years but its explosive expansion has also seen an unyielding refusal to compromise on social or environmental impact. The operation, which is headquartered in Vancouver, has seen growth from some six drilling rigs in 2006 to more
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than 240 in 2015, in some 25 countries across the world, explains CEO Fred Davidson. “Energold was initially founded as an exploration company, which pushed itself forward through its small, highly portable drilling rigs but, when the global recession hit, it was decided that we needed to move beyond frontier drilling to become a much more diversified and global solutions provider, for customers across the mining, oil and gas, water and geotechnical industries,� he points out.
E N ERGOLD
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E N ERGOLD
REFLEX REFLEX is the leader in realtime, sub-surface intelligence solutions for the resources industry. REFLEX develops innovative, game changing technologies for drilling, data collection, management and analysis within the global minerals industry. REFLEX’s technologies are acknowledged for their reliability, ease of use and accuracy and are complemented by unrivalled expertise in geoscientific data analysis and interpretation. REFLEX HUB is a secure cloud based data management and analysis solution that provides access to relevant, reliable information for critical decision making, anywhere and at any time. REFLEX has a global network of strategically located offices and support centers to provide local assistance to our clients around the world.
“This we have successfully achieved but alongside our growth, minimising social and environmental impact has remained a critical part of what we do here: we are proud to be at the leading edge of our industry while maintaining high levels of commitment in these areas.” Today internationally recognised for its approach, Energold provides a comprehensive range of drilling services from early stage exploration to on-site operations for minerals, metals and energy sectors. It has also become an established drill rig manufacturer. The company embarked on the implementation of its strategic goal by acquiring UK-based Envirodrill Ltd in 2009. This was followed by the takeover of Dando Drilling International Ltd, also in the UK, and then Canadian Bertram (AB), both in 2011. These moves brought manufacturing and energy services expertise into the fold, broadened the company’s range of products and services, and saw a substantial increase in its international footprint. “Looking back 15 years, we had about 12 people working for the company – now we have around 1,100. We provide a comprehensive range of drilling services, from early stage exploration to mine site operations, and we are present in North America, South America and Central America, as well as Africa, Asia, the Middle East and Europe.” Energold first made its name with its mobile drilling rigs. Aiming to conduct exploration programmes in remote locations, with limited infrastructure and access to heavily forested areas, the company came to the conclusion that existing mineral
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ENERGOLD
drilling technologies and services available in the market were inadequate. It developed a new specialised drilling rig, which manages to be highly mobile while leaving almost no environmental footprint. “What we came up with was the concept of building a modular rig, where the pieces are simply carried in down paths no wider than one metre in heavily forested areas (which means we do not have to create a road infrastructure) and are then assembled on site,” says Mr Davidson. “These rigs are very effective but it was a case of educating our customers to show them that what we were offering them could be efficient and yet manage to leave an area of disturbance of no larger than 4m by 5m at the end of the project.” Local people are employed to assist on projects and here, again, Energold’s insistence on social responsibility is paying off. Members of the local community can be taken on to transport the rig and to assemble and disassemble it, among other duties. If they show aptitude during the project they may then be provided with an opportunity to become drillers and drill supervisors. “It is so much better to have a community participating in a project so they have a real understanding of it and so we can comprehend their needs. But it also gives us the opportunity to train local people up and employ nationals,
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E N ERGOLD
which has enormous benefits for the company. These people speak the language and have a real awareness of the local issues - in Mexico we now employ about 400 nationals.” Other examples Energold’s emphasis on corporate social responsibility saw it donate materials for the construction of a much-needed bridge in Haiti. It also created three wells within impoverished communities, which were suffering from a lack of water supply, in the state of Chihuahua, Mexico. Whether dealing with local communities, members of staff or the company’s broad customer base, honest dialogue is always vital, according to Mr Davidson. “We try to keep the lines of communication open, from the driller right up to senior management, within Energold, and then liaising with the customer as often as possible to ensure that if there is an issue it
is resolved quickly.” As the company moves forward it also sees more partnerships and projects with non-profit and nongovernmental organisations worldwide on water related projects. Through Dando and the company’s relationship with the UN and the World Bank this is already an area of key focus in countries within Africa and the Middle East. “We are seeing significant growth in water,” Mr Davidson stresses. “I don’t believe we have ever realised our potential in this area before but with the softening in energy we have come to understand that we can redeploy some of our rigs in this way. We are also seeing more activity in geotechnical, especially in Europe – in the UK, of course, with projects such as HS2.” Geographically, there may well be European growth for Energold in the future, along
with further expansion in Asia, Africa and North and South America. There are also possible takeovers on the horizon, Mr Davidson admits. After all, he points out: “A bear market is an ideal market for acquisitions – and Energold is much better financed than many of its competitors.” The company will continue to invest in its people and its technologies, and as it does it will continue to seek both high efficiency and low environmental and social impact. “We like to retrain and redeploy our people as necessary because that makes the company as a whole stronger and more efficient,” he insists. “It is a huge market out there and our aim is to continue to grow. “We have seen success so far by being flexible and our goal is for this to continue – and within the next five years we have forecast that we will be number two in our sector worldwide.”
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