DUNDEE PRECIOUS METALS:
EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE
DUNDEE PRECIOUS METALS:
EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE WRIT TEN BY
DA LE BENTON PRODUCED BY
RICHARD DE ANE
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THROUGH THE TRANSFORMATION OF THE HISTORIC CHELOPECH MINE, DUNDEE PRECIOUS METALS LOOKS TO GROW THROUGH OPERATIONAL EXCELLENCE
I
n the mining industry, there is a belief for some that it is often the smaller exploration and mining companies that take the biggest risks which define
and redefine the status quo. Dundee Precious Metals (DPM) defines its vision as a progressive gold mining company that unlocks and delivers superior value through innovation and strong partnerships with stakeholders. One of the company’s goals, is to grow its current mining production to around half a million ounces of gold per year over the next few years. It looks
to achieve this by developing a number of projects across its portfolio, which includes exploration and development projects in Bulgaria, Canada and Serbia. “Part of our strategy is built around possessing the capability to execute projects on time and within budget,” says John Lindsay, Senior Vice President, Project Development. “But it’s also about having the ability to scope a project and to actually understand what makes a project the right project.” Dundee Precious Metals strives to deliver excellence in sustainability and to create value for all its shareholders, be they investors, government or the
“PART OF OUR STRATEGY IS BUILT AROUND POSSESSING THE CAPABILITY TO EXECUTE PROJECTS ON TIME AND WITHIN BUDGET” — John Lindsay, Senior Vice President, Project Development
local community. It aims to deliver this excellence through its commitment to its six core values; safety, dignity and respect, environmental responsibility, community investment, continuous improvement and transparency. Nikolay Hristov, SVP, Sustainable Business Development, believes this commitment plays a key role in propelling Dundee forward as a company. Hristov played a lead role in the company’s rehabilitation of its Chelopech mine, located in Bulgaria. Chelopech is an historic mining operation with production starting back in 1954. Over the course of its lifetime, w w w. d u n d e e p r e c i o u s . c o m
more than 19 million tonnes of ore
located very close to the nearby village,
have been produced.
not a single square meter of land had
Dundee Precious Metals acquired
been rehabilitated. So, the relationship
the mine in 2003 and since then,
between the community and the other
has reinvested the vast majority of
surrounding communities, not just that
its profits to transform the mine into
village, has been a very important com-
a world class operation.
ponent in this journey which is at the very
This transformation started by re-examining the environmental impact of the mine. “When we acquired the mine there wasn’t much thought given to the environmental impact of the operation,” says Hristov. “Even though the mine is
core of our strategy.” As a mining operation, the importance of a relationship with a local community and the local government can be the difference between success and failure. Hristov believes that the key to achieving environmental sustainability
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is born through stakeholder relationships and he identifies the local community as a key stakeholder. This is echoed by Lindsay. “It’s doing well by doing good. So, if we do the right things in the communities and the countries that we work in then we will succeed as a business. This is a progressive and a credible company that’s going to benefit communities and that allows us to grow.” A mining company can walk the talk with regards to having a social licence to operate, but it has to be able to point to some considerable successes or achievements that prove it is delivering on its promises. For Dundee Precious Metals, the most convincing proof that it is indeed doing things right is the company’s Krumovgrad development project in south-eastern Bulgaria. With the company targeting first gold production
“THE RELATIONSHIP BETWEEN THE COMMUNITY AND THE OTHER SURROUNDING COMMUNITIES, NOT JUST THAT VILLAGE, HAS BEEN A VERY IMPORTANT COMPONENT IN THIS JOURNEY WHICH IS AT THE VERY CORE OF OUR STRATEGY” — Nikolay Hristov, Senior Vice President, Sustainable Business Development
in late 2018, and adding more than
if we continued down that path we
100,000 ounces per year to the compa-
would not be successful.”
ny’s production portfolio, Krumovgrad
The company took the project
is a project that was “unlocked” by
back to the drawing board, taking
applying the company’s community
into consideration the community
relationship model, that was developed
feedback and retooling its plans
over the years at Chelopech.
based on redesigned tailings and
“It has a long history,” says Lindsay.
processing flowsheet in order to
“We presented an initial project back
successfully develop Krumovgrad
in 2010 but there were a number of
as a sustainable operation.
concerns from the local community
“It demonstrated to the community
regarding a tailings system and the
that we are a company that is pre-
processing method. It was clear that
pared to listen and prepared to walk w w w. d u n d e e p r e c i o u s . c o m
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the talk,” he says. “Originally we were
ship will enable us to work together to
trying to manage these discussions
further raise standards in the mining
remotely and we soon realised we
sector, focusing on innovation, sustain-
needed to be talking face-to-face
ability and employment opportunities”.
with people in the community. It really
While Chelopech is not the compa-
paid dividends for us and gave us far
ny’s only operation, it is a cornerstone
more credibility as an organisation.”
of Dundee Precious Metals’ vision
In addition to the strong support of local communities, Dundee’s approach
of delivering superior value through innovation and strong partnerships.
has garnered the support of other
Innovation is key to Chelopech as
like–minded partners: In 2016 the
the company has invested heavily in
European Bank of Reconstruction
developing the mine to be one of the
Development (EBRD) invested slightly
most digitally enabled mining opera-
more than $43 million in the company
tions in the industry today.
and noted at the time that the “partner-
Dundee Precious Metals implementw w w. d u n d e e p r e c i o u s . c o m
FACT
Social license to operate It is incumbent on all mining companies to find ways of operating responsibly, and to demonstrate social and environmental responsibility in credible and consistent ways. Operating responsibly has many faces, including maintaining strong relationships with our stakeholders and minimizing harm to the environment. It also includes ensuring that our employees are treated well, that they go home to their families safe and healthy, and that we strive to build sustainable communities that survive long after mine closure. Dundee Precious Metals Chelopech EAD is anchored by its values. The Company continuously pursues progress and development of the mining industry based on technologies, sustainable development and
concerted effort to protect the environment, as demonstrated by a number of international awards. Our corporate wide community investment policy focuses our community spending toward local development, based on dialogue with local leaders. Our Krumovgrad project will be a model of best practice social and environmental management, and serves as a demonstration of our six Core Values: Safety, Dignity & Respect, Environmental Responsibility, Community Investment, Continuous Improvement, and Transparency. These, together with the strategic imperatives support the Company’s brand promise: We Succeed Because We Care. — Nikolay Hristov, Senior Vice President, Sustainable Business Development
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ed a ubiquitous wireless network throughout the mine, as well as innovative hardware solutions that send execution information from the underground mine directly to the surface to capture, monitor and gain valuable insights. “Chelopech is a fantastic case study whereby technical and technological transformations occurred simultaneously,” says Theophile Yameogo, VP of Digital Innovation. “It is a true testament that technology and technical prowess can be implemented successfully in mining.”
“ CHELOPECH IS A FANTASTIC CASE STUDY WHEREBY TECHNICAL AND TECHNOLOGICAL TRANSFORMATIONS OCCURRED SIMULTANEOUSLY.” — Theophile Yameogo, VP of Digital Innovation.
With technology evolving at such an immense rate, so too must companies such as Dundee Precious Metals. As the company looks to the future of technology in mining w w w. d u n d e e p r e c i o u s . c o m
“ TECHNOLOGY IS A NEVER-ENDING HUMAN ENDEAVOUR. SO IS OUR WORK AT CHELOPECH. AS A COMPANY WE WILL ALWAYS BUILD ON OUR PAST SUCCESSES TO ENABLE AND DRIVE NEW REALITIES AND ACCOMPLISHMENTS” — Nikolay Hristov, Senior Vice President, Sustainable Business Development
through artificial intelligence, machine learning and the Industrial Internet of Things (IIoT), it can do so based on the solid foundation of what it has achieved at Chelopech. “Technology is a never-ending human endeavour. So is our work at Chelopech,” says Yameogo. “As a company we will always build on our past successes to enable and drive new realities and accomplishments.” But as both Lindsay and Hristov stress, digitisation is all well and good but means nothing without an operational model that can enable and unlock the true value of technology. “We have spent a lot of time developing a very structured, disciplined operating model that defines how we do our business,” says Hristov. “It’s easy to say we will digitalise but what does that mean? You need to have an underlying process in place.” For Lindsay this operating model is one of if not the most important developments at the company, as he feels it is something that the company will implement across all of its existing and future operations. “What do we take away from Chelopech as a business?” he asks. “I think it’s that operating model and the ability to apply that operating model in other projects and other operations gives us an edge. It really sets us up very well to be able to exploit the opportunities that are available through digitisation both now, and in the future.”
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Dundee Precious Metals Inc. 1 Adelaide Street East, Suite 500, P.O. Box 195, Toronto, ON, Canada, M5C 2V9 T (416) 365-5191 | www.dundeeprecious.com