Mining Global - April 2017

April 2017 • www.miningglobal.com

MAKING MINING SAFE: INSIDE THE MINE HEALTH AND SAFETY ADMINISTRATION

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EDITOR’S COMMENT

Safety in numbers HEALTH AND SAFETY in the mining industry is, above all else, one of the most important factors in a successful mining operation. After all, how can an industry strive if the men and women out in the field are struck with injury and in some unfortunate cases, even death. We speak with the Mine Safety and Health Administration after reporting the safest year in mining history, and the work it does to achieve this.

How can the mining industry leverage virtual reality? Dassault Systèmes through its 3DEXPERIENCE software solutions can provide the mining industry with a virtual universe to imagine sustainable solutions. We speak with Vice President Marni, Rabassó, on how the future of mining is in a virtual world.

2016 is but a distant memory, but we are still in a period of transition across the industry. We take a breather and look at the 10 emerging trends in mining with Deloiitte International.

And we look at the Ministry of Mineral Resources and the plans to highlight the mineral potential in Greenland, as well as how Newmont Mining is driving the Ghanaian economy through gold production.

Enjoy the issue!

Dale Benton Editor dale.benton@bizclikmedia.com 3

F E AT U R E S

06 SAF3TY IN NUMB3RS

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Trend tracking: 10 trends facing the MINING

INDUSTRY IN 2017

Futures. Laid out.

Virtual Reality.

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April 2017

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C O M PA N Y P R O F I L ES

34 46

Ministry of Mineral Resources Europe

The Ghana Chamber of Mines Africa

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Newmont Ghana Gold Limited Africa

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PROFILE

SAF3TY IN NUMB3RS THE MSHA RECORDED THE SAFEST YEAR IN MINING HISTORY IN 2016. WE SPEAK WITH OUTGOING ASSISTANT SECRETARY JOSEPH MAIN ON HOW FAR THE MINING INDUSTRY HAS COME SINCE THE INTRODUCTION OF THE MINE ACT OF 1977 Writ ten by DALE BE NTON

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April 2017

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PROFILE

“THE QUICKER WE ACT THE QUICKER WE CAN TURN IT AROUND AND MAKE THOSE MINES COMPLIANT, SAVING PEOPLES LIVES IN THE PROCESS”

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April 2017

SAFETY IN NUMBERS

HEALTH AND SAFETY in the mining industry is a conversation that everyone, at every level, from mine workers right through to CEO’s should be having. The mining industry is often dangerous and life threatening by its very nature and every mining operation owes it to the mine workers and the heavy machinery operators to ensure that every step has been takien to make it possible that they can go home safe and sound at the end of each working day.

Step forward the Mine Safety and Health Administration (MSHA) from the United States Department of Labor. Since 1978, MSHA has been operating under the Mine Act of 1977 with a clear vision – to prevent death, illness and injury from mining as well as to promote safe and healthful workplaces for US miners.

“The core responsibility of MSHA is to go out and inspect every mine in the nation four times a year to ensure that it is complying with the mine act,” says Joseph A. Main, Assistant Secretary of Labor.

Of course, health and safety legislation has been a matter of concern since before MSHA. It can be dated back to the creation

of the US Bureau of Mines in 1910, which was effectively the research arm of the Government to prevent deaths in mines. It has been reported that the death toll was close to 3,000 per year during this time.

Fast forward to 1968, the a coal mine in Farmington, West Virginia exploded, killing 78 miners with an additional 19 bodies never recovered.

A disaster of this magnitude forced the Government to act, enacting the Coal Mine Health and Safety Act – and following expanded protections to all mines in 1977, it is a law that is still in operation and governs the health and safety of US mines to this very day.

When the act was first instated, around 311 miners died in coal mining accidents. In 2016, there were only 12 deaths – the lowest in coal mining history.

For Main, this has been the culmination of years of hard work and commitment from MSHA since he was nominated by then President Barack Obama as Assistant Secretary in 2009.

“There was a need to improve the level of communication within MSHA and between the organisation and mine operators, stakeholders and the wider mining industry,” says Main.

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PROFILE Main believed that not only was there a need for more effective communication but also the need to strengthen the way in which MSHA applies the mining act across those 13,000 mines.

“We added new tools in our tool bag and have refocused our attention on some key areas to influence better outcomes,” he says.

One major and infamous area that the mining industry has been synonymous with is the exposure to coal mine dust and the Black Lung Disease. In 1968. Around 76,000 miners had died due to the black lung disease. Through his experience in the mining industry, working in mines through his younger years and representing miners through a health and safety committee, Main has been all too aware of the work needed to significantly reduce those exposed to the disease.

“Congress had it right in 1969 when it enacted legislation calling for an end to black lung disease, we are here now to finish the job,” said Main.

In 2009, MSHA launched the End Black Lung Disease campaign, the implementation of a comprehensive strategy that sought to increase the 10

April 2017

level of education and training in reducing mine dust and enhancing the enforcement of the mine act.

This, Main states, was the first time in the history of mining that a revision to the mine act of 1977 was made to “reign in chronicle mine operators with outlandish violation rates and records.”

This was later revised and updated in 2010.

“Taking the mine act and adding more inspections, we targeted mines with particular problems for further inspections and really get to those problematic mines quicker and prevent them from getting out of control,” says Main.

“The quicker we act the quicker we can turn it around and make those mines compliant, saving peoples lives in the process.”

And the proof is there to see. In 2010, MSHA identified 51 mines as “chronic violators” but as of 2016 that figure now stands at zero.

To get to a point where MSHA can record the safest year in mining history, it has taken something of a complete overhaul of operations.

This has been a process that has not been without challenge. This

SAFETY IN NUMBERS

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PROFILE

“WE’VE SEEN A HUGE CULTURAL SHIFT ACROSS THE ENTIRE INDUSTRY”

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SAFETY IN NUMBERS

included a backlog of around 80,000 citations and violations that had been contested, but there simply wasn’t the manpower to process them. Compliance has been another major focus for Main, and he can proudly stand by the progress MSHA has made in this respect through improved compliance and guidance.

By 2010, the number of contested citations had fallen dramatically to around 40,000 and by 2016 it had fallen further to 18,000.

It doesn’t end there either, 12 deaths in 2016 (the lowest in mining history), the lowest recorded injury rate in the history of mining and even dropping the coal mine dust levels to historical lows.

“We’ve seen a huge cultural shift across the entire industry.

The industry should get as much credit where its due for responding in such a positive way and making improvements,” says Main.

Main is keen to stress that for the industry to be healthier and safer, it is not the job of just one organisation, more so the job of everyone. Main has seen attitude in action, visiting mines across the

country to find that measures have been put in place, technologies have been developed and overall mine safety is improving. It’s incredible progress, but it’s not a done deal.

“Not everyone is on that page, but the good news is a lot more mine operators are getting there as we move forward. Hopefully, 2017 will be a better year than 2016,” says Main.

As of January 2017, Joseph A. Main will step down from his role and his journey of transforming the MSHA will come to an end.

But the transformation of the industry will continue to grow and Main leaves behind a legacy of change and a sense of hope.

“Its up to everyone to continue our progress, to understand how we got here and how to move forward.

If that attitude continues to exist, progress will come,” he says.

“Everything is yesterday’s story.

Tomorrow is another day. I do believe that anybody that chooses the occupation of a miner, anybody that engages an input into a mine owes it to miners to give them a safe place to work and that’s a philosophy that I try to infect in everyone I talk to – this is the obligation that we all have.”

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TECHNOLOGY

Futures. Laid out.

Virtual Reality.

How one company plans to revolutionise the way the mining industry operates, all in a world of imagination Writ ten by: DALE BE NTON

IMAGINE A MINING industry where you could remove risk, remove uncertainty, improve health and safety and above all, create the biggest and most elaborate mine sites in the world - all without spending a penny. Sounds too good to be true.

Well, with Dassault Systèmes and its 3DEXPERIENCE, this fantasy could very well become a reality. That’s the plan at least.

“Dassault Systèmes is a company whose roots centre around Computer Aided Design (CAD), but really the company has become focused more on developing innovation and creating what we describe as “3DEXPERIENCE,” says Marni Rabassó, Vice President Natural Resources at Dassault Systèmes.

Dassault Systèmes works to provide businesses from a wide number of sectors across the world with virtual universes to “imagine sustainable innovations.”

Created in 1981 to design products in three dimensions, Dassault Systèmes has evolved to offer its 3DEXPERIENCE platform to 12 industries including the Financial and Business Services sector, Aerospace & Defence, Engineering & Construction, Transportation and Mobility as well as Consumer Goods, and over the course of the last five years, moving into the Natural Resources sector with mining and oil and gas customers.

Rabassó leads a Natural Resources group designed to leverage the level of digital transformations that the company has achieved from other sectors and bring that into sectors 15

TECHNOLOGY

including mining, upstream oil and gas, water, and agriculture and forestry.

“Looking at mining, it is pretty obvious that in terms of technology adoption they are lagging. So, there is quite a push to look at other industries and understand their best practices and tools and how to leverage those into the mining space,” says Rabassó.

In 2016, Dassault Systèmes announced the launch of Perfect Order, an Industry Solution Experience that helps mining companies improve supply chain efficiency and 16

April 2017

profitability through the integration of logistics. This solution promises to offer mining companies a clearer view of shipment forecasting as well as logistics planning that allows seamless integration of market demands and changes. The solution also provides real-time key performance indicators on the impact of planning decisions that can allow rapid adjustments to maintain deliveries, specifications and budgets on track.

“It really is a powerful industry solution that takes all the inputs

F U T U R E S . L A I D O U T . V I R T U A L R E A L I T Y.

“There is quite a push to look on other industries and understand the best practices and tools and how to leverage that into the mining space”

and connects to which trucks are available, which loads are ready to go and uses this information to calculate the best schedule in which users can really understand what the implication of any changes to that schedule would be,” she says.

The solution’s capabilities are very unique compared to other software solutions around the world. The 3DEXPERIENCE platform acts as a design, visualisation and collaboration platform for the development of innumerable products around the

world from aeroplanes and cars, to laptops, plastic bottles and other high-tech and consumer goods.

Break down the product life cycle and you are left with a large number of production scheduling logistics with regards to getting that product from design to market. With the 3DEXPERIENCE platform, you are presented with a seamless way to approach that entire process, from start to finish with the product in the hands of the customer. In the mining sector, that would be the raw material.

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TECHNOLOGY

In the current mining industry, with recent downturns in commodity prices, the pressure for mining companies to become more productive and increase efficiency is growing. More and more companies are investing in a lot of ways of achieving this and delivering value to shareholders and Dassault Systèmes solutions for mining, including Perfect Order, target exactly that space.

The feedback from the industry highlights that now is the right time for the industry to invest in innovation.

“It is the time to take on technology and do things differently, and we are trying to do just that,” says Rabassó.

With technological innovation adoption comes risk and the mining industry is no different. Through investment in universally accessible 3D technology companies can transform themselves into connected and fully collaborative extended enterprises that use a single unified source of data for all operations. This allows them to innovate, control and 18

April 2017

efficiently manage their businesses.

It is this level of transformation that Dassault Systèmes is hoping to deliver to mining customers, but it is a process that takes time.

“It’s a big thing to do and it’s scary.

You are trying something that has never been done before. It takes time and conversations, but it’s something that the industry is ready to do. It’s a lot easier to do things as you always have, so now is the right time for change,” says Rabassó.

Establishing a presence in the mining industry is crucial as Dassault Systèmes enters the Natural Resources sector. Coming off the back of success after success in other industries is one thing, but being able to demonstrate value in this industry is another.

With this in mind, what better

F U T U R E S . L A I D O U T . V I R T U A L R E A L I T Y.

opportunity to show what the company can do for mining leaders than attend MinExpo 2016 in Las Vegas.

“We were presenting not just our Natural Resources solutions but also our Industrial Equipment solutions and using our unified enterprise platform approach we were able to demonstrate to equipment manufacturers and mining companies that they could collaborate through this platform,” she says.

One shining example of the what the 3DEXPERIENCE platform can achieve has been the work with Dundee Precious Metals and the “Taking the lid off” initiative at the Chelopech mine in Bulgaria. The challenge was for Dassault Systèmes to assist in doubling production while reducing costs at the underground mine by deploying the 3DEXPERIENCE platform.

Dassault Systèmes’ Mine Production Management and Mine Planning industry solutions were employed to form key components of the technology backbone at Dundee Precious Metals’ Chelopech mine. By integrating with other vendors’ systems, mining equipment, and an underground Wi-Fi network, the mine is able to visualise its operations in real-time.

Through this, Dundee Precious Metals saw an increase in production and a significant 44 percent decrease in running costs, all without the need for additional equipment.

“Having an example where people can see what it means to do things differently generates huge transformations,” says Rabassó.

“A lot of mining companies have gathered executives and visited the mine in Bulgaria to see it for themselves. It gives them confidence that this can be done and then take the next steps in making it possible for them. We are still at the beginning of this snowball effect, but it is a snowball.”

Looking to the future, Rabassó

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has a clear vision of where she wants to see the mining industry go and Dassault Systèmes plays a key role in achieving that.

“We have the possibility right now to do something fundamentally different that will make mining more efficient and a better environment for the people who work within it,” she says.

It all circles back to the shifting mindset of the mining industry.

Rabassó feels the industry is lagging in adoption of innovation through the very nature of an industry plagued with risk. Risk in three categories, financial risk, the cost 20

April 2017

of life and of course environmental impact.

With the 3DEXPERIENCE platform, the creation of a virtual world could present businesses, mine operators and stakeholders with the ability of foresight. It will bring a whole world of freedom, to see the implications of an action long before any person or machine even touches the ground. This is a world which Rabassó knows is one that will excite the minds of business leaders, and all it will take is a little imagination.

“If we can create a virtual world where we can literally try out anything we want just to see what the implications could be, imagine the level of innovation we could leverage from this?”

“We can take chances that we couldn’t and wouldn’t want to do in real life through risk. I think the 3DEXPERIENCE platform will open up the possibilities of things we can do for the mining industry.”

F U T U R E S . L A I D O U T . V I R T U A L R E A L I T Y.

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Trend tracking: 10 trends facing the

MINING INDUSTRY IN 2017 Written by: Dale Benton

A mood of cautious optimism has spread out across the mining industry as International lists the 10 trends miners/ operators can expect throughout 2017

T O P 10

T O P 10

10) UNDERSTANDING THE DRIVERS OF SHAREHOLDER VALUE Commodity prices are on the rise. Though still very volatile, this means financing across the sector is also on the up, but it is important to note that share performance still continues to lag. This means that companies will be looking to redefine shareholder value.

09) UNLOCKING PRODUCTIVITY IMPROVEMENT Productivity. It is a word that has always been hot on the lips of mining operators and will continue to do so. Productivity is a critical priority, there’s no two ways about it, and for companies to increase and grasp hold of consistent productivity levels it will require a shift in perspective towards technology and innovation.

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April 2017

TREND TRACKING

08) OPERATING IN AN ECOSYSTEM Innovation hubs are emerging across the industry to encourage greater industry collaboration amongst technology start-ups, businesses, industry leaders, government and academia – all in a bit to find creative and effective solutions to resource challenges in mining. 2017 may see miners operating outside of comfort zones, working with competitors, turning vendors into partnerships and building extended partnerships.

07) THE DIGITAL REVOLUTION How important a role can digitisation play in shaping the mining industry of tomorrow? That is the question that more and more mining companies are exploring to find an answer to. Whereas previously, the industry has been somewhat slow and risk averse in terms of digital innovation and capabilities, mining operators are now outlining clear digital strategies as well as fostering the right skills and capabilities to embrace the digital mining world of tomorrow, 25

T O P 10

05) CREATING VISION FOR T

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06) MAPPING THE THREAT LANDSCAPE With digitisation, and a wider acceptance and emphasis on digital technologies and cloud based IT infrastructure, comes the inescapable threat of cyber-attack. In recent years, a number of mining companies have been subject to attacks, with the current IT security systems and solutions used by most operators not effective enough to fully protect the increased amounts of data in the evergrowing digital landscape. It doesn’t stop with purely digital assets; a cyber-attack can also threaten physical assets too. Mining companies will have to adopt a more rigorous approach towards cyber security, be more vigilant and cultivate resilience.

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April 2017

engagement and productiv to enhancing cooperation

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TREND TRACKING

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04) RE-EARNING THE SOCIAL LICENSE TO OPERATE As has been the case for a number of years, environmental sustainability and energy management will continue to move into sharper focus across the industry. The sector is facing greater challenges in winning the social licence to operate in communities, purely due to the environmental impact that it has – be it mining accidents, or carbon emissions and environmental damage. In 2017, regulators are anticipating that miners will comply with a range of mandatory and voluntary environmental disclosures, as identified by the International Council of Mining and Metals (ICMM), the Global Reporting Initiative (GRI), the Extractive Industries Transparency Initiative IEITI) and other local regulatory bodies.

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T O P 10

03) SUPPORTING STRATEGIC PRIORITIES Mining companies have begun to realise the value in transforming operating models in order to sustain growth. For example, some companies chose to decentralise their management approach to foster a high-performance culture and to instil greater accountability at the mine site while helping companies improve their returns while lowering risk. Others on the other hand, took a centralised approach as a way to enhance oversight, quality control and service levels by eliminating duplication; streamlining, automating and standardising processes which could potentially improve service levels and response times. Miners should look to five key aspects of their operating models as part of their operational excellence strategy: Organisational structures, processes, technology, culture, and skills and people.

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April 2017

TREND TRACKING

02) CREATING HEALTHY AND INCLUSIVE WORKFORCES Wellness and diversity have always been high on the agenda for mining companies and 2017 will see companies continue to sharpen this focus. Achieving sustainable productivity improvements will come from fostering a healthy workplace. The current mining industry is currently underperforming when it comes to wellbeing and creating more inclusive workforces, and as the mining industry becomes more digital in its operations, it will compete with other sectors for in demand skillsets.

As miners strive to build leading-edge teams that can foster the innovative culture mining companies needed to thrive in the sector, these companies will need to take a proactive approach in improving workforce wellness and inclusiveness.

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T O P 10

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April 2017

TREND TRACKING

01) ADOPTING AN INTEGRATED APPROACH TO REPORTING The mining industry of 2017 is one that faces increasing scrutiny as governments and regulatory bodies are demanding greater levels of transparency, including financial disclosures and international tax reporting. The investor community also expects more from the mining industry, with companies needing to go beyond compliance for compliance sake and report on a much broader range of non-financial information. This will include enhancing of reporting and overall transparency, standardising information and considering the benefits of over-reporting.

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Potentially game changing Written by Dale Benton Produced by Richard Durrant

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In the mining and exploration space, opportunity can present itself in many forms. Greenland is a country rich with mining and mineral opportunity and it is the job of the Ministry of Mineral Resources to present that potential to the major players of the mining and exploration world

“

The mineral potential of Greenland is incredible,” says Henrik Stendal, Chief Geologist for THE MMR. “But it is what we call a Greenfield area, meaning that we don’t have extensive knowledge of the total mineral potential of the area like we do with Canada or Sweden, but we know that there is great potential there,” he says.

The Ministry of Mineral Resources’ remit covers strategy-making, policy-making, legal and geological issues and the marketing of mineral resources in Greenland. In a country that has geology with as much in common as Canada, the mineral exploration industry is still a young one.

Stendal has been head of the Geology department at THE MMR for nine years, but has taken a step back into the position of Chief Geologist. His role?

To work with the THE MMR to raise the profile of the mineral potential in Greenland and attract mining and exploration companies to the area and create a mining economy within the country.

An attractive proposition As Stendal has noted, Greenland has the potential and geological scope of countries like Canada and

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April 2017

EUROPE

Sweden, which have vast mining industries, and the MMR has invested heavily in creating a strategy that will generate a booming mining economy within the country.

“Greenland is very attractive and we have a number of companies interested, mostly junior companies who then try to attract investors themselves or sell the bigger prospects to larger companies,” he says.

The MMR has a strategy that runs through to 2018 with the goal of having three to five operating mines within Greenland.

While Stendal admits that the country is well on its way to achieving that (there are currently two active mines in Greenland) there has been one particular stumbling block that the ministry has had to address – the lack of proper infrastructure.

“Right now, all transportation

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‘Upon the improvement of the infrastructure, Stendal believes that it will unlock greater interaction between the mineral resources sector and other parts of Greenland’

within Greenland is by air or by sea which immediately brings the cost of exploration much higher than it will be in other countries,” he says.

The Government of Greenland has invested and will invest in a number of initiatives to overcome this challenge, particularly the expansion of port facilities and airports throughout Greenland in the capital of Nuuk, in Ilulissat as well as Kangerlussuaq.

“When you improve infrastructure, it becomes much easier and much more efficient,” says Stendal.

Upon the improvement of this infrastructure, Stendal believes that it will unlock greater interaction between the mineral resources sector and other parts of Greenland. Currently, the largest source of income throughout the country is fishing and some income is generated from tourism.

Enabling economy Stendal, through the MMR, aims to add mining to

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M I N I S T RY O F M I N E R A L R E S O U R C E S

“Greenland has incredible potential.

Through the MMR, we head into new areas and geological locations and we discover something new almost every day and that is inspiring” –

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Henrik Stendal, Chief Geologist

April 2017

EUROPE

that list and create an industry that will play a huge role in the prosperity of Greenland, through both the income generated and the employment.

The mineral potential of Greenland is the major incentive for mining and exploration companies and the MMR is creating a large-scale database for minerals and oil and gas that mining companies can access. This data incudes geological scientific studies as well as reports from companies active within the industry so that potential investors and operators can see first-hand the mineral potential.

Over the last 12 months, Stendal and the MMR have attended a number of exhibitions and conferences to showcase what Greenland has to offer to the explorative industry, including one of the largest events in the mining space - the Prospectors & Developers Association of Canada (PDAC) - this year.

Having a presence at an event of this magnitude is crucial in achieving the goals outlined in the overarching strategy for mining in Greenland.

“It is really important to be

there and tell the story of how good Greenland is and can be for explorative companies,” says Stendal.

“But there are a number of competition countries who are trying to attract companies and investment and if you aren’t telling your story, these companies will head elsewhere.”

Through adversity Greenland has been experiencing a recession over the last five years and the impact on the economy has definitely been felt in the mining space. To mitigate the impact of a recession, the government has begun to adjust the mining laws and the mining act within the country, as well as the conditions for licencing and mineral policy.

“The government has been working hard through the recession to help keep mining companies within the country,” Stendal says.

Currently, if an exploration company has a mining licence for longer than five years then it is applicable for an extension on that licence. The

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company is then under obligation to invest money into the economy of Greenland.

During the difficult financial climate of the recession, mining companies found it much more difficult to get the necessary finances to operate in the country.

“The government updated the requirements so that for exploration companies with a licence longer than five years there is no obligation to invest in a two year period - it is a much more relaxed approach. This really helped a lot of exploration companies remain in Greenland,” he says.

Throughout Greenland, more than 70 percent of energy used in towns and small settlements is generated through hydropower. Mining and exploration companies that choose to operate within Greenland could gain access to that hydropower which would bring about a much cheaper and cost effective operation.

“The alternative to hydropower is diesel, which creates further costs. There’s diesel engines, which will require refuelling, which will require the creation of a supply chain. You can clearly see the problems that arise from this,” he says.

The Ministry of Mineral Resources works with a number of key partners to help shape and define the mineral exploration space in Greenland, including Air Greenland, Xploration Services, Asiaq and the exploration companies.

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April 2017

“Greenland has incredible potential.

Through the MMR, we head into new areas and geological locations and we discover something new almost every day and that is inspiring” – Henrik Stendal, Chief Geologist

EUROPE

It is through the collaborative efforts of these partnerships that the MMR can continue to support and provide assistance for exploration/ mining companies in the country.

The level of support that the MMR provides is not financial, it is more administrative and guidance.

“We have an engineering department that goes out and to the exploration/mining companies to assess their operations, including inspections and strategic analysis,” he says.

“It is only then that we can provide support and guidance to these companies to enable them to operate more effectively, efficiently, and unlock the great benefits

towards Greenland as a whole.”

For Stendal, his role in the future of the exploration/mining industry of Greenland as well as his ever-growing understanding of the geology of the country is one that often leaves him inspired.

“Greenland has incredible potential. Through the MMR, we head into new areas and geological locations and we discover something new almost every day and that is inspiring,” he says.

“Taking the data of our discoveries, analysing that geology and understanding the mineral potential of the country excites me. Just think of what it can do for the future of Greenland.”

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THE GHANA CHAMBER OF MINES Article supplied by CoM

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Ghana’s mining industry: a foreword

by The Ghana Chamber of Mines

T

he Ghana Chamber of Mines has, since its establishment in 1928, been a private sector employers’ association representing companies and organizations engaged in the minerals and mining industry in Ghana. Programmes and activities of the Chamber are funded entirely by its Member Companies, which are largely responsible for producing over sixty per cent of Ghana’s gold output.

Ghana has a long history of mining, especially for gold. The country’s geological space abounds with

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diverse precious minerals. A recent airborne geological survey confirmed the occurrence of over 28 minerals, including, platinum, uranium, tantalite and rare earth. However, the country’s mining industry is synonymous to the gold industry on account of the preeminent weight of gold in the basket of commercially exploited minerals.

Gold accounts for 97.4 percent of gross mineral revenue while the respective share of manganese and diamond are 0.3 percent and 2.3 percent. The main methods of mining in the country are deep-shaft and surface mining. Also, alluvial mining is popular in the Artisanal and Small-Scale sector.

The GFMS Gold Survey (2016) reports that total gold output in Ghana shrank by nearly 12 percent to 95 tonnes in 2015, relative to 107 tonnes in 2014. Ghana’s poor gold output performance is partly explained by the suspension of mining by AngloGold Ashanti Obuasi, persistent curtailment in supply of electricity and a general rise in the cost of doing business.

These notwithstanding, the Chief Executive Officer of the Chamber, Sulemanu Koney, intimated that the past year has been relatively better.

“The mining industry continues to be the bastion of value to support the developmental objectives of Ghana despite the challenges. Some of the challenges have been resolved the sector is benefitting from the conducive business environment.”

Statistics from the Ghana Revenue Authority (GRA) indicates that the minerals and mining sector continues to be a leading source of fiscal revenue for the country. Its contribution to the national kitty in 2015 was 1.35 billion Cedis. This represents an eight percent increment over the 1.24 billion Cedis recorded in 2014. The

sector’s fiscal payments comprised GHȻ 463.12 million in corporate taxes, GHȻ 485.6 million in royalties, GHȻ 404.74 million in PAYE and GHȻ 0.87 million in other taxes.

The Chamber continues to play an integral and prominent role in the lead up to the formation of the ECOWAS Federation of Chamber of Mines, especially, in the drafting of its constitution. Following the successful adoption of the constitution by member states in 2015, the Federation

“The mining industry continues to be the bastion of value to support the developmental objectives of Ghana despite the challenges” - Chief Executive Officer, Sulemanu Koney

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THE GHANA CHAMBER OF MINES

of ECOWAS Chambers of Mines was launched in November 2016.

Koney said: “This is a milestone in the history of mining in the sub-region and provides our countries with the platform to promote greater investment in the sector and to affect mining policy and legislation on the continent.

It shows how essential mining is to the ECOWAS economy and working together is the most prudent way of ensuring that the sub-region becomes the hub for mining on the continent.�

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The mining industry remains one of the most regulated sectors and member companies continue to adhere to both domestic and international codes, laws, standards and regulations towards the achievement of a sound and safe environment. The commitment of member companies to the protection of the environment cannot be overemphasised. Through the strong partnership with the Environmental Protection Agency (EPA), the Chamber ensures that the mining industry’s environmental compliance is observed holistically.

The passage of the Minerals and Mining

Amendment Law 2014 Act (900) is a critical landmark in the promotion and regulation of mining activities in Ghana. The new law, which is an amendment to the Minerals and Mining Act 2006 (ACT 703), is meant to ensure that state institutions prosecute illegal miners and incapacitate them by confiscating the heavy machinery used to destroy the environment.

Moreover, the new Minerals and Mining Policy launched in 2016 is expected to shape the governance structure of minerals exploitation in the country.

On Corporate Social Responsibility (CSR) and Sustainable Alternative Livelihood Programmes, the Chamber’s initiatives are designed to promote

and support the training of community members and provide technical and other forms of assistance to host mines.

This is meant to promote sustainable mining operations across the country as well as provide support for education, research and other projects which are beneficial to the host Communities and the Republic of Ghana. “Through these projects, the Chamber continues to assist communities to improve quality of life by equipping inhabitants with requisite skills and knowledge to manage their own affairs,� Koney added.

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Written by Dale Benton Produced by Richard Deane

Growth of

mining in Ghana 51

Through its two gold mining operations, Newmont Mining Corporation is the major player in Ghana’s gold mining sector. With plans to expand beyond the boundaries of Ghana, Newmont is doing everything it can to leave a lasting legacy of creating value and improving lives

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s one of the world’s leading gold producers, Newmont Mining Corporation’s portfolio stretches from the Americas to Africa and Australia, creating value and improving lives for its shareholders and local communities. The company is focused on achieving excellence across the five pillars that underpin its strategy, including, Health and Safety, Operational Excellence, Growth, People, and Sustainability and External Relations. It is through focused efforts in these areas that Newmont’s operations in Ghana has achieved success.

Newmont established its presence in Ghana in 2002 through the acquisition of Normandy Mining of Australia along with Franco-Nevada of Canada. This merger gave Newmont complete ownership of two mining projects in Ghana, Ahafo in the Brong Ahafo region and Akyem, located

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in the Birim North District. Both of Newmont’s mines are in commercial operation, with Ahafo producing around five million ounces of gold since production began in 2006 and Akyem producing approximately 1.5 million ounces since late 2013.

With a mature gold mine in Ahafo and a much younger mine in Akyem, Newmont ranks as Ghana’s largest gold producer, responsible for 29 percent of the country’s annual gold production as at 2015. With such a strong footprint in Ghana, what’s next for the company’s operations in Africa?

“We have an ambition to expand beyond the boundaries of Ghana,” says Alwyn Pretorius, Regional Senior Vice President of Newmont’s Africa operations.

“We’re looking at business development opportunities in Cote d’lvoire as well as greenfield exploration in Ethiopia. Right now, there hasn’t

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Alwyn Pretorius Regional Senior VP of Africa Operations

As Regional Senior Vice President of Newmont Africa, Alwyn has oversight responsibility of Newmont Mining Corporation’s Africa operations, Newmont Ghana Gold Limited (Ahafo Mine) and Newmont Golden Ridge Limited (Akyem Mine), and exploration on the continent.

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BESPOKE SOLUTIONS, MEASUREABLE SUCCESS Vivo Energy’s technical knowledge of mining and associated services means that we can actively deliver tailored solutions to our customers, not only through Shell’s high-quality products, but also through a range of unique value-adding services.

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assistance relating to fuels and lubricants to deliver long-term reductions in fuel and maintenance costs.

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AFRICA

been any drilling but we have completed early activities in preparation for exploration in Ethiopia,” he says.

THE POWER OF PEOPLE Pretorius has been with Newmont since April 2016 having worked his way up through various leadership roles with Anglo American, African Rainbow Minerals and Harmony Gold. In his current role as Regional Senior Vice President, he can call back on his experience at all levels of a mining operation, from miner to chief operator to managerial. He believes this gives him a better understanding of the day-to-day work at a mine.

“The most important thing is to understand what the work is about and to understand what the day in the life of a miner or operator really entails,” he says.

Number of employees at Newmont Ghana

2,000

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NEWMONT GHANA GOLD LIMITED

“That’s important for managers but also for executives because when you jump in at a very high level, you can lose touch with the realities of doing the mining and the work yourself. I have a good appreciation of the work, and for me it’s so important to stay connected to our most valuable resource – our people.”

That notion of people being the most valuable resource extends beyond simply the employees working at Newmont in Ghana to the people who live within the communities in which the company operates.

Newmont employs around 2,000 employees and approximately 3,000 business partners across its Ghanaian operations, but the impressive statistic shows that close to 41 percent of the entire workforce comes from what Alwyn describes as “local-local.”

FOUNDATION OF RESPONSIBILITY As a mining operation, the importance of creating sustainable value for host communities is often the most important aspect a mining company has to get

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‘A mining operation can play a huge part in the socioeconomic development of communities, and for Newmont in Ghana it’s no different’

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right. For Pretorius and Newmont, that value is evidenced by a number of programmes and initiatives designed to empower and benefit members of the local community.

“Communities are important stakeholders in our business. It is important to leave a community in a better state when we leave than when we arrived,” he says.

Newmont offers a four-year apprentice programme and a shortterm ‘learnership’ programme, designed to train local communities and provide them with employable technical skills within a mining operation. Pretorius admits that not all of the apprentices will find work within Newmont, but they will be better equipped with new skills to find work in either the mining industry or beyond.

A mining operation can play a huge part in the socio-economic development of communities, and for Newmont in Ghana it’s no different.

“For us, Corporate Social Responsibility is core to the way we operate our business. It aligns with our purpose at Newmont to create value and improve lives through sustainable and responsible mining,” he says.

Newmont has established two development foundations, the Newmont Ahafo Development Foundation (NADeF) based in Ahafo and Newmont Akyem Development Foundation (NAkDeF) in Akyem. These Foundations are designed to support the development of local communities in a number of areas, including human resource development, economic empowerment, the provision of social amenities and infrastructure, and the safe and responsible protection of natural resources.

These Foundations utilise funds from both the Ahafo and Akyem mine, where Newmont contributes $1 per ounce of gold produced from both mines along with 1 percent of net profit. For Pretorius, the Foundations are fundamental to sustaining the stakeholder relationships Newmont has with local communities.

“They are mainly community driven and community owned. All activities of the Foundations are managed by a Board of Trustees” he says.

“We assist and provide information and support to ensure the development of a sustainable economic model for the future of the community long

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NEWMONT GHANA GOLD LIMITED

beyond the closure of our mines in the future.”

A HEALTHY OPERATION The health and safety of a mining operation is key to the success and future growth of any mining business. Mining organisations around the world strive to ensure that the working environment is as safe as possible and invest heavily in initiatives and programmes to reduce injuries.

For Newmont, safety represents a core value.

“We have made incredible progress in the health and safety of our mines over the last seven years,” he says.

“But of course, there is always room to improve and over the next five years we will be investing further to achieve a culture of zero harm.”

Technology has been and will continue to be key in delivering on the promise of remaining a leader in the health and safety space. Newmont has a number of continuous improvement initiatives to train and develop its employees to make better use of technologies to eliminate or significantly reduce hazards and risks in the workplace.

AWARD WINNING As a testament to this commitment to being not only a responsible corporate citizen but a safe operator, Newmont’s operations in Ghana have been recognised by a number of independent organisations such as the Country’s Investment Promotion Council as well as the Ghana Chamber of Mines.

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2003 The year that Newmont Ghana was founded

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“It means that we are definitely doing something right, we are delivering the results that we are expected to deliver and being recognised not only by regulators but by our peers as well,” he says.

Receiving acclaim for the here and now is one thing, but Pretorius is already thinking of the future for Newmont, within Ghana and beyond.

“We are already looking at an underground mining project and a mill expansion that will increase

the capacity of our processing plant at Ahafo by 50 percent. The underground project is important to us because it will open up the enormous underground potential that we know exists in the Africa region,” he says.

“But really, our aim is to build on the solid reputation that we have developed and further improve it with regard to our sustainability efforts and external relationships.”

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