Mining Global - January 2017

> RESPONSIBLE MINING WITH TERANGA GOLD

January 2017 • www.miningglobal.com

TOP 10 inspirational

women in

mining 2016

International Women in Mining & bridging the gender gap

THE

SILVER WHEATON

bringing precious metal streaming centrefold in

MINING

BOOM

Steve Lesser, Head of Supply Chain at Orica, on optimising the supply chain to better cope with challenging market conditions

the industry

TECHNOLOGY

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EDITOR’S COMMENT

Providing a voice HAPPY NEW YEAR and welcome to the first issue of 2017!

To kick us off this year our cover feature is Steve Lesser, Head of Supply Chain at Orica as he talks about optimising the supply chain to better cope with challenging market conditions commitment to community engagement and social responsibility is as good as gold.

How visible are women in the mining industry? We speak with the International Women In Mining (IWIM) organisation and its work on providing a voice to the women of the mining world and the important role that social media has to play in that mission.

We also take a look at precious metal streaming, a unique business model formed over a decade ago that has now become the norm across the mining industry. Silver Wheaton’s CEO Randy Smallwood, the brains behind the game changer, speaks to Mining Global on all things Silver Wheaton, digging for hidden for value and the future of the industry.

Our final feature sticks with the women of the mining world as we pick out 10 inspirational women in mining in 2016 from the 100 inspirational women in mining list by Women in Mining UK (WIM).

I hope you enjoy the issue and look forward to the year ahead!

Enjoy the issue!

Dale Benton Editor dale.benton@bizclikmedia.com 3

CONTENTS

F E AT U R E S

6

International Women in Mining and bridging the gender gap TECHNOLOGY

PROFILE

LIST

14 Going

Mainstream

4

January 2017

22

C O M PA N Y PROFILES

64 Orica

Australia

30

The Chamber of Mines Senegal

78

Euromax Resources Europe

Africa

36

Teranga Gold Africa

54

Dundee Precious Metals Tsumeb Africa

90

MADISA

Latin America

5

International Women in Mining and bridging the gender gap The mining industry is predominantly a male oriented industry in the eyes of the world. But IWiM is working to prove that the role of women in the industry should not be undermined and that a truer representation of the modern mining industry is one of women in more prominent roles.

Writ ten by DALE BE NTON

THAT’S WHERE INTERNATIONAL Women in Mining (IWiM) comes in. Founded in 2007, by Barbara Dischinger who had previously set up Women in Mining UK, IWiM is an organisation designed to connect women in the mining sector from all over the world and give them a voice.

Around 2007 there were only around 15 WIM chapters around the world and many women were 6

January 2017

working in countries where there was no existing chapter. Today, there are over 45 groups in around 35 countries or maybe even more.

Dischinger felt there was a lack of communication and linkage previously between all different WIM organisations which is why International Women in Mining was launched. IWiM aims to link women internationally and also ambitiously aims bridge the

PROFILE

gap between professional women and women artisanal miners and affected by mining. “Every WIM organisation was sharing the same vision but operating independently, so I figured that there needed to be a bridge between them so that there would be better communication and information

sharing, she says. Things have massively improved since and we see collaboration nationally, regionally and internationally. “IWiM is a dynamic and collaborative organisation which brings together women and also men in all areas of the industry, all over the world,�

7

PROFILE says Dischinger.

IWiM has over 9500 followers in over 100 countries. Around 50 percent of members belong to their local WIM chapter with the other 50 percent being women who have no WIM affiliation.

“Our mission is to make a difference by helping women working in the sector, celebrate them, develop their careers and drive change in the industry,” she says.

One of the aims of IWiM is to share success stories and upskill our members so that they are more able to cope and advance in their careers,” says Reed.

“The idea has developed further into looking at what we can do to be more proactive as an organisation, not simply a place of information but also being a real driver of change.”

Gender imbalance is not necessarily unique to the mining industry. Most if not all STEM sectors across the world suffer from evident gender imbalance. In 2017, the world has come a long way but there is still room for progression, particularly when it comes to different geographical locations and unconscious bias. “Even 8

January 2017

if the barriers may now have been legally removed in most countries, there is still a lot of unconscious bias and cultural beliefs and expectations that make the reality of working in mining very different from what it should really look like,” says Dischinger.

Camila Reed, Head of Social Media IWiM, believes that things have begun to improve in the industry, but a key issue is a lack of research into women’s roles across the industry, something that IWiM is seeking to rectify.

“There is a real lack of statistics out there which makes it difficult to get a proper handle as to how many women

I N T E R N AT I O N A L W O M E N I N M I N I N G A N D B R I D G I N G T H E G E N D E R G A P

in the mining industry,” she says.

What is clear is that across the industry, we know and see that there are gaps in the trades, at executive level and in some technical and operating roles.

Our research project aims to get more clarity around statistics: explore how many women work in mining. It has been an interesting journey and we are currently partnering with third party organisations to unlock some of those numbers on the ground. Most of the existing metrics are owned by mining companies. What we would like to see is more transparency or access to those figures and

collaboration with mining companies.

Since its formation, IWiM has grown exponentially and now boasts over 9,500 members from over 100 countries and connects with women in mining (WIM) groups the world over.

This strong hub of multi-disciplined, multi-talented, multi-backgrounded volunteers and members is a testament to the vision of IWiM. “An example of what we do is the way we help groups set up and give them an idea of what they can be, how they can do it, and connect them with existing groups in order to expand their network,” says Reed.

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PROFILE For Reed, this represents part of IWiM’s role as being a bridge for women in mining around the world.

“I think people see the rationale.

Mining is a very international industry and people are always looking to move around the world and expand their networks so it makes sense for them to engage with IWIM,” says Reed.

Platforms such as Twitter allow people to engage in conversation and debate. To share successes, failures, challenges and all experiences.

“The more people you get into the conversation the better. Social media opens the window into that and it allows us to give women a voice. There is something very democratic about social media, it’s not about broadcasting it’s about conversation. We use it to allow women to have that conversation, progression, job opportunities, positive experiences everything that you would expect someone involved in mining to do,” says Reed.

For IWiM, it doesn’t stop there.

The organisation is working on a number of key initiatives and projects to deliver a platform for women’s voices in mining to be heard.

One of the biggest initiatives has been an investment on getting more 10

January 2017

female mining professionals speaking at large scale mining conferences - IWiM SpeakUp. This provides the key ingredient for progression and success.

“Speakers at these events get visibility. That is one way of getting your feet on a company board, promotion, a stretch assignment or to even being headhunted for a more senior position at another mining companies,” says Dischinger.

But of course, having more women speakers, who are experts in their field is a truer representation of the mining industry.

“It is very important to have women speaking because it goes back to our goal of providing a voice for women and it means that you are part of the debate.

It shouldn’t be a gender issue, if you are a qualified person to speak on that topic, then you should be speaking at an event,” says Reed.

IWiM is also partnering with Adam Smith International (ASI) to review the impact of mining legislation on the participation of women

I N T E R N AT I O N A L W O M E N I N M I N I N G A N D B R I D G I N G T H E G E N D E R G A P

11

PROFILE

12

January 2017

INTERNATIONAL WOMEN IN MINING AND BRIDGING THE GENDER GAP

in the industry, beginning with Malawi and Sierra Leone. The goal of the project is to support the economic empowerment of women through their increased engagement in the mining sector.

Two of the biggest initiatives and programmes from IWiM are the Women on Board programme and an initiative to get more “realistic” women in mining stock imagery representing women who actually work in mining.

The stock imagery Campaign was born out of a lack of visibility of professional women in mining roles within stock images, on annual reports of mining companies, sector presentations, company offices & websites etc. Instead when you found stock photos of women they were models. “Some are scantily dressed in stereotypically sexist poses that are simply counter intuitive to all the things we are trying to improve the mining industry,” says Dischinger.

“Our first photo campaign in 2014 saw over 50 women participate and

send in photos of them in their work environment and some have been released for sale as stock images.

We will launch a new photo campaign this January,” says Dischinger.

Another project relates to Women on Boards. The goal of the Women on Mining Boards programme is simple: to provide the opportunity for women who are interested in working at a board level to learn more about how to get there.

The process would normally require education at an institute of directors, but this is often an expensive process and may be geographically inaccessible.

Through a webinar programme, IWiM looked to remove those barriers.

“We wanted to set up an affordable programme which would be accessible everywhere, with speakers from the mining sector and we wanted the women to be able to ask questions and engage,” says Dischinger.

Our next initiative for Women on Mining Boards is, a database full of talented “board ready” women from all over the world as a source of candidates for mining companies.

For more information on IWiM and how you can get involved, visit www.internationalwim.org

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TECHNOLOGY

SILVER WHEATON: BR INGING PR ECIOUS METAL STREAMING CENTREFOLD IN THE INDUSTRY Writ ten by: DALE BE NTON

TECHNOLOGY

ACROSS THE MINING industry, one of the major issues that can dictate the very success of a mining organisation is equity and capital.

In 2016 and heading into 2017, as companies and businesses are forced to downsize in a bid to combat increasing debts, finding and raising capital is proving ever more difficult.

This is where Silver Wheaton comes in. Founded in 2004 with a unique and at the time, almost unheard of, business model, the company is now the largest precious metals streaming company in the world. “We realised that there are a lot 16

January 2017

of non-core by products in copper mines and lead zinc mines, including gold and silver, and through Silver Wheaton we offer a low risk, high quality opportunity for companies to invest into the precious metals industry,� says Randy Smallwood, President and CEO of Silver Wheaton.

Through its precious metals streaming business model, Silver Wheaton enters into agreements to purchase all or a portion of the by-product silver and/or gold from high quality mines. Silver Wheaton pays the mining company an upfront

GOING MAINSTREAM

“

Because our costs are predictable, our risk profile is much lower than what a tr aditional mining company can offer” – Randy Smallwood, President and CEO

payment and an additional payment as those precious metals are delivered at a pre-determined price per ounce. The company’s cash flow is generated in the difference between that additional payment and the price it sells the metal for.

This creates a lucrative situation for any mining company looking to gain capital – low risk.

“Because our costs are predictable, our risk profile is much lower than what a traditional mining company can offer. We deliver the same growth

and organic opportunities of a traditional mining company, but with a low risk profile,” says Smallwood.

In the 13 years since 2004, when Smallwood pioneered the precious metals streaming business model and formed Silver Wheaton, streaming has very much become a part of the modern mining industry. The mining industry is one that lives on capital, there will never be a time where the industry does not need capital.

Streaming is not the only source of capital. Companies can generate capital by taking debt, issuing shares 17

TECHNOLOGY

Here’s how precious metals streaming works.

18

January 2017

GOING MAINSTREAM

or by selling off non-core-assets.

Streaming, falls into the latter category.

“The big advantage to streaming is that it is non-dilutive, it does not create share count. Streaming purely adds strength to your balance sheet – when Silver Wheaton invests into a mine we take on the operating risk of that mine. There are no obligations other than delivering whatever gold or silver is produced,” says Smallwood.

Over time, Smallwood has seen that companies operating in the base metals industry will often trade at a discount. This creates a significant difference in value between how the mining company values that precious metal and how Silver Wheaton values that same metal. Silver Wheaton shares that difference in value.

“In capturing that shared value, they will get more for that non-core by-product than they would if it sat in their own asset portfolio,” he says.

While streaming has, and will continue to become a more attractive form of capital, in some cases, taking on debt is the more attractive form of generating capital. Timing of acquisition and investment then, is critical to the strength of Silver Wheaton’s portfolio.

“The best time to make an acquisition

in any commodity that has cyclical pricing is of course at the bottom of those cycles,” says Smallwood.

“This is also the time where equity and debt is very expensive,” In these periods, other metal streaming companies have entered the fold and traditionally wealthy companies have converted to streaming. But Smallwood, with close to 30 years’ experience in the precious metals space, is all too aware that when commodity prices are strong this increases the cost of acquisitions, which goes against that low risk profile that Silver Wheaton prides itself on.

Turning back the clocks to 2004, when precious metal streaming was unheard of and Silver Wheaton was announcing itself on the world stage, acquiring partners and connecting with individual businesses to enter streaming agreements began as a process of “knocking on the doors.”

“I’m happy to say that over the last five years, streaming has become – if you’ll pardon the pun, mainstream,” says Smallwood.

“There is not a financial or chief financial officer out there in the industry today who isn’t aware of the streaming model.”

19

TECHNOLOGY With the business model being much more widely accepted, and as previously noted an increase in streaming players in the market, should that worry Smallwood and Silver Wheaton?

“The ultimate compliment is when someone copies you, it really highlights the strength of the business model that we worked so hard to create 12 years ago,” Silver Wheaton may not be the only streaming company in the modern mining industry but the company never set out to “supply all the capital that the industry requires.” With the focus on investing and acquiring high quality mines at the lowest part of the commodity cycles, Silver Wheaton can

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January 2017

remain competitive and market leaders.

For some, having a business model that is so strong that it is replicated on a global scale could very well be the pinnacle of success, but for Silver Wheaton operating in an industry as cyclical as the mining industry and remaining successful through every point of the cycle is key.

“Mining is not an industry that is easy to forecast in and there are challenges both geological and physical that need to be navigated.

Having the success and track record that we have, it is something that I am extremely proud of and it is a record we will strive to maintain and improve on,” says Smallwood.

The process of entering a streaming agreement is, as Smallwood describes, “confusing in its simplicity.” When a negotiation for agreement is

GOING MAINSTREAM

underway, a rigorous process of due diligence takes place where Silver Wheaton is granted access to a full data room, which includes drill hole sampling, modelling and geological plans and mining plans. This data is reviewed and then a proposal is made before proceeding with any official streaming agreement.

Silver Wheaton’s portfolio contains mining operations and development projects from all over the world and includes agreements with Glencore, Vale, Barrick Gold, Goldcorp, and Lundin Mining to name a few.

As the precious metal space becomes more and more crowded, Silver Wheaton focuses on continuous improvement.

“Sometimes people feel that you are a stronger company because you have more assets, we disagree,” says Smallwood.

“I’ve often said that if we win every auction or bidding process then we are paying too much. We are happy in a healthy competitive environment.

We strive to maintain quality and push towards keeping a highquality portfolio - that’s our goal.”

In 12 years Silver Wheaton, has grown exponentially. Under the hands

“ There is not a financial or chief financial officer out there in the industry today who isn’t aware of the streaming model” – Randy Smallwood, President and CEO of Smallwood and a strong team committed to pushing the company forward, Silver Wheaton will only continue to grow. Smallwood believes that one day Silver Wheaton will be a historical name and one could argue that with the growth of streaming across the industry that it already is.

For Smallwood, the goal remains the same now as it was all those years ago.

“I’ve been called a treasure hunter, it’s something I absolutely love doing.

I love looking at assets and seeing if there are opportunities to uncover more value, hidden value. That’s what keeps me excited,” Smallwood says.

21

TOP 10

The topic of gender equality is a conversation that has spanned generations and will continue to do so across all industries, none more so than the mining sector. Mining Global looks at 10 of the most inspirational women in mining in 2016, according to Women In Mining

Writ ten by: DALE BE NTON

TOP 10

NOLEEN PAULS

DR SARAH GORDON Dr Sarah Gordon, the CEO and founder of Satarla, a risk management consultancy based in London and Johannesburg. As CEO, Sarah oversees the company’s risk management tools which are utilised in a number of sectors, including mining.

Prior to starting Satarla in 2004, she previously worked with Anglo American across the UK, Brazil and South Africa. Sarah has an undergraduate degree in Earth Sciences at the University of Glasgow and a PhD in the composition of primitive meteorites.

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January 2017

Project Operations Manager at MSA Group, Noleen has worked with the Geological Survey of Bophuthatswana, working heavily in exploration and geotechnical investigations for suburban development. Noleen has also worked with West Rand Consolidated as a mine geologist and played a key role in the exploration of the Kalahari Goldridge Gold Mine. Noleen now works with MSA Group, in which she joined in 2014. She currently sits as Chairperson for WiMSA and has been influential in the South African mining industry.

I N S P I R AT I O N A L W O M E N

ITALIA BONINELLI

WING-YUNN CRAWLEY Biodiversity at ArcelorMittal Liberia Ltd, Crawley has extensive experience in expeditions and long-term surveys in remote parts of the Phillipines and Sierra Leone.

Hired by ArcelorMittal Liberia in 2011, she created a biodiversity offset programme which examined the impacts of mining in mountainous tropical rainforests.

Recognised as a key ambassador for developing better appreciation for a balanced relationship between mining and the local environment, Crawley represents the programme on a global level at international events and conferences.

Executive Vice President, People and Organisational Development at AngloGold Ahshanti, Boninelli leads the full HR functionality across South Africa, Ghana, Guinea, Tanzania, Mali, DRC, Australia, USA, Colombia, Argentina and Brazil – around 63,000 employees. Italia developed the Women’s Leadership Programme for Standard Bank, an initiative that oversaw an increase of women at senior management level from 16 percent to 21 percent, and at executive level from 7 percent to 11 percent in just under two years.

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TOP 10

VANESSA TORRES

EMILY MOORE Managing Director, Water and Tailings Management at Hatch Ltd, Moore is a leader in product development, technology delivery and innovation management in the mining industry.

Moore took up her position within Hatch in 2012 and now leads a worldwide team of specialists that focus on water issues across the mining industry. She was also recently appointed the Director of Hatch’s Greater Toronto Area hub, which is a collection of over 2,00 engineers developing mining and energy projects around the world.

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January 2017

Vice President Production, Logistics and Infrastructure, Vanessa Torres has worked in strategy planning, valuation, technology, transactions, operations and projects across six countries over the last 23 years.

After moving to BHP Billiton in 2007, Vanessa takes charge of all port, rail, utilities, infrastructure and remote operations of BHP’s iron ore business. Vanessa is also the chief financial sponsor of an NGO: Projeto Colmeia (the Beehive Project) which is a centre aimed at providing free development activities to children from disadvantaged communities.

I N S P I R AT I O N A L W O M E N

SHEILA KHAMA

PIPPA JEFFCOCK www.twitter.com/pippajeffcock Exploration professional, Pippa Jeffcock, discovered a gold deposit in Ecuador and brought it to production with her company Revenge Mining – the first independent foreign company in Ecuador to open a mine. During the eight years, she spent in Ecuador, Pippa was elected as the first woman director of the Ecuadorian Chamber of Mines.

Elsewhere over her 30 years’ experience in the industry, she has spent time working with AngloGold Ashanti in the DRC and BHP Billiton in Guinea, as well as 10 years doing mining analysis and project evaluation in London.

Director African Natural Resources Centre for African Development Bank, Sheila Khama has been a “champion of sustainable resources development.”

Khama was once the Compliance Head for Anglo American, and then the CEO of De Beers in Botswana. Then came a stint as the Director at the African Centre for Economic Transformation in Ghana and a member of the executive team at First National Bank, Botswana. A member of the Technical Advisory Group of Oxford University’s Natural Resources Charter and the UN Sustainable Development Solutions Network on Extractives and Land Resources. Sheila also chairs the board of AGAMAL, a non-profit entity financed by the Global Fund to contain malaria infection in Ghana.

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TOP 10

VERONICA NYHAN JONES www.twitter.com/vnyhanjones Global Head, Sustainable Business Advisory, International Finance Corporation, Veronica Nhyan Jones is “redefining how mining companies think about sustainability”. Veronica previously worked with government and civil society, including the world bank institute, the US Department for Health Services and even the White House. Following a refocus on sustainability in mining, Jones has worked with Rio Tinto Alcan Deloitte, to pioneer a new financial valuation tool. She established water ‘round tables’ in Mongolia and Peru, which allows mining companies to develop better strategies and approaches to water stewardship through collaboration.

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January 2017

I N S P I R AT I O N A L W O M E N

ANNA WILEY General Manager of Tom Price and Marandoo at Rio Tinto, Anna Wiley has been working with Rio Tinto for over 13 years spanning operations, engineering, projects and business development. Anna has worked in London and Australia, before moving to Tom Price for her current role where she oversees the operation of four mining areas and three processing plants.

Wiley is the most senior Rio Tinto employee living locally, and this supports her position on the board of the Nintirri Centre, which develop [s community programmes. Anna now focuses on improving the percentage of female supervisors and presence within BHP Billiton.

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The Mining Chamber ofSenegal

31

THE MINING CHAMBER OF SENEGAL

C

reated on the 5th of June 2013, the Mining Chamber of Senegal (MCOS) is a non-profit organization currently comprising more than 30 local and international companies operating in the fields of exploration and mining.

The main role of the Chamber is to encourage, promote and protect mining investments in Senegal, developing and maintaining a professional business ethic. Its mission is to foster the emergence of a dynamic mining sector and to create attractive conditions for a sustainable growth of the sector and the national economy.

It also has a mandate to defend the common interests of its members as a representative, agent and spokesman in front of the public administrative bodies.

To carry out its mission, the Chamber has established three committees, namely the Tax and Legal Committee, the Safety, Security and Training Committee, and the Communication Committee.

After many exchanges between

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January 2017

the governments and all of the stakeholders, a new mining code has been decided upon. It does not include a total restructuring of Senegal’s mining administration, nor does it establish any review of existing mining titles or contract.

In retaining the investor-friendly incentives presented under the current code, one of the key goals of the new mining code is to increase incomes to the government from the mining sector. This means that investors can expect to pay expanded fees, royalties and taxes under the new mining code.

Note that mining companies that, as of now, hold a mining title in Senegal will be bound by the mining code in force at the time their title was awarded and, if applicable, at the time their mining contract was signed with the government.

AFRICA

w w w. c m d s e n e g a l . c o m

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THE MINING CHAMBER OF SENEGAL

AFRICA

Responsible mining & striking gold in Senegal Written by Dale Benton Produced by Richard Deane

37

How important is it to be a socially responsible mining operation?

Teranga Gold, the first and only operating gold mine in Senegal, firmly places social responsibility at the heart of the matter

T

he key to success as a corporate citizen in Senegal, Teranga Gold Corporation believes, is earning the right to operate in any region the company conducts business.

For any mining company, the importance of corporate social responsibility (CSR) and the duty to be a good corporate citizen are things that simply cannot be ignored.

The very success of a mining operation is often only achieved through a commitment to CSR and creating a lasting legacy for the community in which they operate.

For Teranga, CSR is inherent to the very core of the Company’s mission statement and is embodied

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January 2017

in its name. The word “Teranga” translates into hospitality and friendliness in Wolof, the local language of Senegal, West Africa.

The Canadian-based gold mining company owns and operates Sabodala, the only commercial gold mine and mill in Senegal.

Sabodala is a +200,000-ounce gold operation with a 13.5-year mine life and a reserve base of 2.6 million ounces. The Company’s long term goal is to expand its operations in not only Senegal but in other countries in French West Africa and become a mid-tier gold producer.

Setting the CSR benchmark Owning and operating the only large-

MINING

w w w. t e r a n g a g o l d . c o m

39

Metifex

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MINING

scale gold mine in the country, the Chief Executive Officer of Teranga, Richard Young, knows all too well the responsibility resting on the Company’s shoulders when it comes to setting a solid example of corporate citizenship.

Stated Mr. Young: “When you’re first in the country, it is your responsibility to provide opportunities to the local and regional communities and to provide proper training. Not only are we training people to run our own operation, we are training Senegalese people to develop skill sets that could help power the country’s economy well after the mine is gone.”

Teranga is setting the CSR bar at a high level, hoping that it will set the benchmark for other mining companies that establish operations in Senegal.

“First and foremost, we strive to mitigate our impact on the environment and the communities, ensuring that our activities do not create any loss,” stated Mr. Young.

“Our next priority is to share the benefits of mining to create long term sustainable growth where we operate. On top of this we are focused on adhering to good governance practices and promoting our employees and their culture.”

w w w. t e r a n g a g o l d . c o m

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TERANGA GOLD

Health and safety for instance is a prime example. The Company has achieved almost three years without a lost time incident at Sabodala.

“We provide our workforce with quality jobs and extensive training in an environment that promotes and awards health and safety,” said Mr. Young. “Currently, our employees have worked more than 11 million hours without a lost time incident. There are few companies in the global mining sector that can make this claim.”

At Sabodala, the Company

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employs more than 1,200 people.

Approximately 90 percent are Senegalese with more than half coming from the local communities surrounding the mine. Its strong workforce is a commitment to employee development.

Teranga’s ultimate goal is to nationalise its workforce and reduce the number of expats over time by moving its Senegalese employees into senior roles.

This development of employees not only better serves the Company, but Senegal as a whole.

MINING

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AFRICA AND SOUTH AMERICA.

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We are privileged to be a business partner of Teranga Gold providing onsite repair and maintenance services plus supply of spare parts for the Diesel Generation Plant at their Sabodala Gold Mine Facility.

We wish Teranaga Gold every success in the future and look forward to our continuing successful business relationship.

MINING

Award winning CSR program Teranga prides itself on its commitment to the local community through initiatives that came out of its 2014 Regional Development Strategy, which was created after 18 months of consultations with all stakeholders.

The strategy sets the vision for the Company’s long term development of the near-mine region and defines the priorities of its CSR programs.

The Company has received several awards in recognition of its CSR efforts, including most recently the United Nations Global Compact Network Canada Sustainability Award and the Prospectors & Developers

Association of Canada Environmental & Social Responsibility Award.

“Doing well by all of our stakeholders has been our mantra since day one and the initiatives undertaken ensure that the local and regional communities in the country are truly benefiting from Teranga’s CSR program,” stated Mr. Young.

Some of these initiatives include the creation of community market gardens, livestock health programs, and the improvement of agricultural farming techniques in support of agriculture and food security, school support through bursary programs, donations of supplies

w w w. t e r a n g a g o l d . c o m

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TERANGA GOLD

and the construction of school infrastructures in support of youth education and training, as well as programs that empower local procurement and help develop small and medium businesses in support of sustainable economic growth.

Through its commitment to CSR, the Company is working to leave a positive and lasting legacy for Senegal.

Growing in an Ex-Growth Sector As a gold producer, commodity cycles and the challenges they present are a way of life. Across the entire industry, despite major exploration investment

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January 2017

over the last decade, discoveries have been minimal. The vast majority of deposits discovered are less than 4 million ounces or less. Globally, this has resulted in declining grades which in turn results in lower global gold production. Lower grades mean a lower threshold of error. This has led to a shift in focus in the industry towards continuous improvement, capital discipline and maintaining and lowering production costs. “We do not control the price of gold so we focus on the things within our purview, such as achieving productivity and efficiency

TERANGA GOLD

“When you’re first in the country, it is your responsibility to provide opportunities to the local and regional communities and to provide proper training. Not only are we training people to run our own operation, we are training Senegalese people to develop skill sets that could help power the country’s economy well after the mine is gone” Partner of

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January 2017

improvements,” said Mr. Young.

“We are very conscientious of how we spend each and every dollar.”

While the global gold sector paints a picture of ex-growth, there are a handful of growing regions, including West Africa, that many believe are just beginning to make their mark on the industry. Mr. Young views West Africa as a literal gold mine of opportunity.

Most gold regions in the world are witnessing falling production. However, gold production in Africa continues to grow. In 2015, the continent of Africa was the second largest producer of gold and half of this production

was derived from West Africa.

Expanding Beyond Senegal into Greater West Africa With its continuing success in Senegal, Teranga has set its sights on expanding and becoming a midtier gold producer with operations across greater West Africa. In October, the Company acquired Gryphon Minerals, which included the Banfora gold project and two prospective exploration properties in Burkina Faso, West Africa.

Mr. Young believes that Teranga can leverage its strong core team in

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TERANGA GOLD

WHEN YOU NEED TO BE SURE Teranga Gold operates a gold mine in the Senegal. Like most mining activities, the concession is established in a remote area far from available laboratory services which are classified as non-core but essential.

By outsourcing laboratory services, the mine is assured of a continous and dependable services, which in turn helps them to focus on their resources on the core activities of mining.

www.sgs.com

Teranga Gold is based in Senegal, Africa 50

January 2017

Senegal and take the lessons learned from Sabodala to develop another world-class gold operation at Banfora.

“Maintaining our strong social licence is essential for growth and success in Senegal and as we expand our footprint into other jurisdictions in greater West Africa,” stated Mr. Young.

With considerable drilling completed at Banfora in the second half of 2016, a feasibility study for the project is currently underway and is expected to be completed mid-2017.

Beyond Banfora “We continue to explore in and around our current mine sites and large prospective land packages in Senegal and Burkina Faso. As well, in Cote d‘lvoire, we hold four joint venture exploration permits. We have a lot on our plate as we pursue our goal of becoming a mid-tier gold producer,” said Mr. Young.

Promoting Partnership Following many years of working together at Barrick Gold and then

MINING

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TERANGA GOLD

Gabriel Resources, Mr. Young and Chairman Alan R. Hill wanted to pursue their shared vision of developing a gold company that could bring significant value to shareholders.

Both Mr. Young and Hill have seen incredible successes with Teranga Gold and Sabodala. Mr. Young admits that, as with many business ventures, it is a process made possible through the power of partnerships.

“There is no question that we have a number of partners who have contributed to our success,” said Mr. Young. “It is not something we can do on our own. Without the help of federal, local and regional partners, the Company simply wouldn’t be as successful as it has been.”

In fact, 80 percent of goods and services purchased by Teranga are done so through local channels.

This includes fuel supplies and

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a number of consumables and stretches as far as technical issues such as maintenance and repair.

Most recently, the Company has completed a mill optimisation project at Sabodala using all Senegalese suppliers. The project was commissioned a quarter ahead of schedule and well under budget.

In everything Teranga does, promoting and growing the Senegalese economy and being a responsible miner sits right at the heart of it all.

Mr. Young concluded, “Enriching lives and growing communities and economies will continue to be a driving force for Teranga. As a large and crucial contributor to local, regional and national economies, the mining industry is doing incredible CSR work.”

“It is not something we can do on our own. Without the help of federal, local and regional partners, the Company simply wouldn’t be as successful as it has been”

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Responsible

mining

Written by Nell Walker Produced by Richard Deane

55

How Dundee Precious Metals ensures its Tsumeb smelting plant serves the Namibian community with the utmost corporate responsibility

D

undee Precious Metals Tsumeb, one of three subsidiaries of the Canadian company Dundee Precious Metals Inc., is the Namibian faction of the business. Its site in Tsumeb is located around 430 kilometres north of Windhoek – Namibia’s capital – and sits close to the nation’s greatest wildlife sanctuary, Etosha National Park.

Dundee Precious Metals built a smelter here in the 1960s, drawing on the rich seams of copper found in Tsumeb’s mines. Now, the plant contains two Pierce Smith Converters, a Top-Submerged Lance Ausmelt furnace, a sulphuric acid plant, and slag milling and flotation plant. 700 people are employed at the smelter – a significant portion of its 14,000 population.

The company originally began as

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January 2017

Tsumeb Corporation Limited, putting the Tsumeb plant into production in 1963 using the expertise of Newport Mining Corporation. It was soon producing over 3,500 tons of copper and 6,000 of lead a month (until the lead smelter closed in the 1990s), and the company went through a period of uncertainty as it changed hands several times and suffered a period of inactivity due to labour strikes.

The smelting plant was finally sold to Dundee Precious Metals Inc. in 2010, with the TSL Ausmelt furnace quickly converted from a lead smelting vessel to a copper one. An oxygen plant was then added to increase the efficiency of the furnace, and the sulphuric acid plant followed soon after. The latter ensures that no harmful sulphur dioxide enters the atmosphere in the treatment process.

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www.omnia.co.za

Protea Chemicals Namibia: Partnering with DPMT for a be�er future It is with great pride that Protea Chemicals Namibia partners with Dundee Precious Metals Tsumeb (DPMT) to add value to the Namibian economy and communi�es. Protea ensures that Sulphuric Acid produced at DPMT is transported safely to end users in Namibia, and our services to DPMT includes, amongst other, the following: Ÿ Ÿ Ÿ

SHEQ management and enforcement along the transporta�on route and on site.

Emergency response persons, systems and equipment strategically located along the transporta�on route.

Community, fire department and medical centre hazardous chemicals awareness training.

SHEQ and ® Responsible Care

Protea Chemicals Namibia (Pty) Ltd., as a member of the Omnia Group, is a signatory to the Responsible Care program®, maintained by the Chemical Allied Industries Associa�on. We are commi�ed to the safe and responsible handling of chemicals, with the philosophy of “cradle to grave” management. · We are commi�ed to promo�ng safety, health, responsible care, environmental and quality awareness. · SHEQ & Responsible Care management is applied through an Integrated Management System (ISO 9001, ISO 14001 and OHSAS 18001). · Our dedicated internal SHEQ department focus on internal and external training programmes with a view to con�nual improvement of overall SHEQ standards. · Spillage management and emergency response support. · A comprehensive Hazmat plan for warehousing facili�es.

Above is allowing customers to focus on the metallurgy of their process, whilst we manage their chemical supply and/or distribu�on in a safe and responsible way.

Corner of 1 Rikumbi Kandanga Road and 3rd Street, Walvis Bay T+264 64 221 540 F+264 64 221 541

4- 6 Newcastle Street, Northern Industrial, Windhoek T+264 61 214 849 F+264 61 214 846

AFRICA

Tsumeb’s smelter is a rare one in that it is able to treat and process complex copper concentrate, something few others are advanced enough for. It produces 98.5 percent pure copper blister, which is refined in Europe and Asia to be turned into metal. The other elements, arsenic trioxide and sulphuric acid, are sold to third party customers and Namibian uranium and copper producers respectively.

Dundee Precious Metals, too, is unusual in its unwavering approach

to sustainability, not something that is always a priority in the industry.

It claims to follow the highest possible standard of business ethics and social behaviour, and has implemented various continuous improvement strategies to ensure this. DPM’s excellent relationships with shareholders means that the company trusts each of them to abide by the same policies, cementing a positive reputation for everybody involved.

Some of DPM’s policies, as per the company’s website, include: •C ompliance with all applicable laws and regulatory controls.

•A n understanding of the environment in which DPM is working, and the responsibilities therein.

•B est practice approaches to environmental management, engineering, and protection to be applied evenly across the business.

•M aximisation of environmental management opportunities inherent in mineral development projects to minimise environmental risks and effects.

• Outstanding minerals development, production operations, and environmental management are a priority.

• Regular auditing and evaluation of DPM’s performance plus open and honest shareholder engagement.

•C ompany-wide application of environmental policies at all stages of production, supported with the appropriate level of funding.

•E mployee and contractor awareness of both individual and businesswide responsibilities and obligations in line with environmental policy.

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QUALITY AT WORK GI Construction is a 100% Namibian owned and managed company.

We are a civil and bulk earth working contractor with a strong focus on delivering high quality works safely and within schedule.

www.giconstruction.net | info@giconstruction.net | Tel: +264 61 23 0443

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– Zebra Kasete, Vice President and Managing Director

AFRICA

DPM’s recognition of itself as a with Rosalia David many of these huge part of the economy in which aspects, as well as the future of it operates, emphasising the Dundee Precious Metals Tsumeb. importance of financial stability “Any international company and corporate responsibility. operating in a local community The company dedicates itself to needs to be appreciative towards the use of efficient energy, recycling their host community,” he explained. and waste minimisation, outsourcing “Corporate social responsibility is of work to local businesses where crucial to Dundee Precious Metals appropriate, Tsumeb. As ensuring a foreign operations benefit company, we believe locals and minimise in investing part of our The location risks to the community, proceeds into the community of Dundee and that environmental in which we operate. With Precious remediation and the administrative assistance Metals economic improvement from the Namibian Chamber of Tsumeb are always a priority.

Commerce and Industry’s local Improvements to branch, the Tsumeb Community infrastructure, public Trust has provided grants to health, and education over 80 small Namibian-owned regarding projectsare businesses that have in turn to be implemented early. employed and trained a significant All business practices will be number of Namibians who might conducted at the highest possible otherwise be unemployed. ethics and transparency standards.

“Dundee has contributed In summer 2016, DPMs Vice approximately N$15 million to a President and Managing Director public-private partnership with Zebra Kasete was interviewed the National Housing Enterprise to for Lela Mobile, and discussed build 67 houses for ownership by

Namibia

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our employees, with more in the pipeline. This is also in line with the Harambee Prosperity Plan theme for mining companies to continue providing houses to the communities.

We are happy and committed to work together with the government to progress this specific theme.”

DPM also awards bursaries to local students, having spent N$5 million on them already, and focuses heavily on utilising local businesses through its preferential procurement policy. The business’s

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dedication to its many continuous improvement causes is incredibly admirable, and Kasete summed up his feelings on the subject succinctly: “Managing expectations on all levels is the biggest challenge for new leaders. I must understand the commitment made by the company, and manage those expectations effectively whilst delivering on them. Despite all of the exciting challenges, I am happy that I am working for a company whose value resonates with my own.”

THE NAMIBIAN TEAM Zebra Kasete Kasete is Vice President and Managing Director, with nearly 30 years of mining and smelting experience behind him. He is a metallurgist and has a Master’s Degree in Business Administration, and has held various senior positions within the industry.

Barcelona Plaatjies Plaatjies is Director of Operations and is working towards her Honours Degree in Technology Management, with several years of experience in mining already under her belt.

Jan Kruger As the Director of Technical Services, Kruger has worked in the base metal smelting sector for several years, and provides operational support throughout the entire smelting process.

Isai Nekundi Nekundi is in charge of liasing with senior management and collaborating to develop effective relationships, with an Advanced Diploma in Business Administration behind him.

Thinus Loftie-Eaton Loftie-Eaton is Director of Finance, Supply Chain, and IT, and is responsible for strategic financial management, commercial, and supply chain management.

Arthur Scholz Scholz is the Utilities Manager, responsible for internal projects and utilities, and an invaluable asset to the sustainability side of the business.

Linus Gwala The Director of Human Resources is responsible for the development and execution of DPMT’s HR strategy, and has over 30 years of experience in the sector.

ORICA

GETS MORE BANG

FOR ITS BUCK

AFTER THE MINING BOOM

At the height of the mining boom explosives giant Orica was already looking to the future, optimising its supply chain to better cope with challenging market conditions Written by Adam Turner Produced by Erika Kracer

A

s one of the world’s largest suppliers of explosives, Orica reaped the benefits of Australia’s mining boom as its customers – Australia’s mining giants – rushed to meet the world’s seemingly insatiable demand for coal, iron ore and other precious commodities. At the time, Orica’s customers were primarily focused on security of supply to ensure they could maximise the output from their mines.

As the boom petered out the mining giants shifted their focus to becoming as efficient and competitive as possible, while producing lower volumes to meet waning demand. The flow-on effect of this downturn forced suppliers such as Orica to also refocus their efforts in order to help their mining customers adapt to the new environment, says Steven Lesser – Head of Supply Chain at Orica, Australia, Pacific & Indonesia.

“We were following our customers’ performance closely during the mining boom, specifically within the Australian market which was

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a major benefactor,” Lesser says.

“With the turn in the mining market we knew the needs of our customers would change and we needed to be prepared to handle that change.

“First we needed to focus more closely on customer forecasts and how this flowed through our sales and operations planning process.

This involves understanding specifically where demand is occurring, so we can more efficiently bring product through the channel without overstocking or having product in the wrong place at the wrong time.”

The next step involved optimising the supply chain by finding efficiencies, taking out costs and reducing the size of the organisation.

It also included Orica going back to its own suppliers – from its raw materials to logistics such as transportation – to seek support for adjusting to the subdued market.

Orica has traditionally relied on a rather linear supply chain but the optimisation process also involves making the most of the

AUSTRALIA

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Steve Lesser is currently the Head of Supply Chain, Australia Pacific and Indonesia for Orica. Lesser began his career implementing and operating outsourced supply chain solutions across multiple industries and customers for Ryder primarily in North America. In 2001, he moved from third party logistics into running the global logistics program for Borden Chemical (now Momentive and previously Hexion Specialty Chemicals) before transitioning in 2006 to Orica.

Over the past ten years at Orica, Lesser has progressed through (a) running the North America end to end Mining Services supply chain, (b) building the Mining Services global supply chain team, (c) launching the planning and logistics elements of the Singapore Hub, and (d) delivering the regional planning and logistics performance for each region across Orica. Lesser is Green Belt certified and Black Belt trained in the Lean Six Sigma methodology. He earned a Bachelor’s degree in Electrical and Computer Engineering and a MBA from Brigham Young University and previously participated on the Supply Chain Advisory Board for the Marriott School of Management.

Lesser his wife Danielle, and two of their four children currently reside in Cleveland, Queensland (near Brisbane) after splitting the first nine years working for Orica while living in Denver, Colorado and Singapore.

AUSTRALIA

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We combine our operational and commercial experience to design and execute the right supply chain strategy and function for your organisation. Our capabilities include developing supply chain and contracting strategies, inventory optimisation, cost reduction, external spend analysis and mapping, supplier performance management, outsourcing support, social procurement readiness assessments and strategy, an business performance reporting and analysis. and We deliver tangible results. We recently identified a 15% total cash cost reduction opportunity for a nickel operation by leveraging internal demand and capacity as well reducing supplier rates.

Our offices in Australia, Chile, South Africa and the UK are ready to work with you to improve your supply chain. For more information visit www.igpartners.net.au or contact Glenn Hunt on glenn.hunt@igpartners.net or +61 419 355 753

AUSTRALIA

flexibility offered by its regional supply chain networks, Lesser says. The business is looking to supply chain innovation as a way to reach new customers, or reach existing customers in new ways.

“Typically we would use our traditional plant network to meet most of the needs of one country, but now we’re re-visualising our supply chain and exploring new channels,” he says. “The key is to look at the big picture – in some situations there might be an alternative plant which appears less straight-forward to use but ends up delivering lower costs or other benefits to the overall operation.”

Orica didn’t wait until the mining downturn before it started to put

these processes in place. Instead of resting on its laurels it had the foresight to look to the future.

The business relies on SAP for Enterprise Resource Planning, along with Demand Solutions planning software which assists with statistical forecasting. At the beginning of the boom the business was already looking at ways to improve its capability, which saw its North American operations implement process integration improvements in its sales and operation planning. This involved centralising procurement to gain leverage with its suppliers, along with embracing the Lean Six Sigma process methodology throughout the organisation.

After success in North America,

“With the turn in the MINING MARKET we knew the needs of our customers would change and we needed to be prepared to handle that change.”

– Steven Lesser, Head of Supply Chain at Orica, Australia, Pacific & Indonesia w w w. o r i c a . c o m

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Since 1953

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AUSTRALIA

Orica expanded these initiatives globally, leveraging its worldwide networks and improving integration with local supply chain delivery.

While Orica’s Australian operations are heavily focused on large mining operations, its European operations are more focused on the construction sector.

Centralising elements of the supply chain around procurement and planning has helped in every vertical where Orica operates but the benefits have been particularly telling during the downturn in the mining sector, Lesser says.

“That long-term planning meant that these improvements were already in place to help us make

the most of the boom, and they continued to serve us well as we started to adjust to the change in capacity and focus on taking cost out,” he says. “What we’ve learned along the way is that it’s important to get that right balance between a global functional model and a local execution model.

“The change in the mining market required us to be even more focused at the local level, improving our execution efficiency and restructuring to have a completely integrated supply chain through the region.”

Rethinking its approach to the supply chain also saw Orica move towards bringing in external talent

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Rocky’s Own Transport are proud supporters of Orica Operating since 1985, Rocky’s Own Transport Co is a unique and renowned consistent provider of high quality transport and logistic services across Australia.

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AUSTRALIA

with experience in other industries, diversification opportunities starting with hiring Lesser back in within a specialised vertical like 2006 as Vice President, Supply explosives manufacturing for the Chain based in Colorado. As mining industry, optimising its Orica’s new supply chain initiatives supply chain affords Orica the were implemented globally, he opportunity during the downturn shifted to Singapore to oversee to reach new regions and target the global changes as Senior Vice President, Global Supply Chain.

“In that global role I was hiring the talent which started us down this path, bringing in new people with prior experience in other industries – primarily around supply chain change – mapping that experience to our industry,” he says.

“This was a shift for Orica, from using – Steven Lesser, Head of Supply Chain at Orica, Australia, more internal talent, Pacific & Indonesia but bringing in that external experience has certainly smaller players which weren’t a helped our efforts to reshape the priority in a high-growth market. supply chain to be more agile and “We’ve always had a mix of large responsive to market conditions.” global customers and smaller While there are limited players, but the decrease in

“Reshaping our supply chain has certainly made that a smoother transition than if we were only geared up to support the major players and didn’t have the ability to effectively engage with the smaller end of the market which is looking for smaller volumes.”

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demand gives us an opportunity to reprioritise and better serve those smaller players,” Lesser says.

“Reshaping our supply chain has certainly made that a smoother transition than if we were only geared up to support the major players and didn’t have the ability to effectively engage with the smaller end of the market which is looking for smaller volumes.”

One key lesson from the mining downturn is that it is critical for the supply chain not only to operate efficiently but also be tightly

linked to the business strategy.

“In a market where our focus has shifted from security of supply during the boom to taking out cost in the downturn, a purely functional approach to the supply chain would have left the business more vulnerable to disruption,” Lesser says.

“Instead Orica is well-placed to ride the market back up or to continue to adjust to changes, with an agile supply chain that’s designed to handle whatever challenges the market throws at it.”

AUSTRALAI

“In a market where our focus has shifted from security of supply during the boom to taking out cost in the downturn, a purely functional approach to the supply chain would have left the business more vulnerable to disruption.�

Sustainable resources Written by Nye Longman Produced by Jack Pascall

79

Utilising unmatched expertise, Euromax is delivering its flagship copper-gold mining project in Macedonia while making a significant contribution to the local community

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EUROPE

N

estled in the verdant hills of south eastern Macedonia are the villages of Ilovica and Shtuka which together sit on one of the nation’s largest copper-gold porphyry deposits.

Spotting the opportunity to develop this lucrative resource back in 2012 after selling European Gold Fields to Eldorado Gold Corp, Canadian-owned Euromax Resources stepped up to the challenge and the current management team moved in. Four years down the line, and with all but one of the necessary permits and assessments completed, construction of a bulk tonnage open pit mine is almost ready for the go-ahead. Business Review Europe speaks to Patrick Forward, Chief Operating Officer at Euromax Resources, and examines how the project has been engineered to be a profitable success, and how the company has placed sustainability at its core.

“We recognised it was actually a business necessity to get the project finance we want, but it is actually, I think we have proved it, relatively easy to do that,” he says.

The Ilovica-Shtuka mine The long term goal of Euromax is to grow to become Europe’s leading gold and base metal mining company, with the Ilovica-Shtuka mine as its flagship project that will employ 500 locals. In line with this ambitious goal, the company and its experienced

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BANKABLE METALLURGICAL TESTING ACHIEVING IMPROVED PROCESSING AT THE ILOVICA PROJECT GLOBAL NETWORK

Based upon given preferences for the circuit configuration, SGS then used previously generated kinetic data to provide computer simulation of the requested CIL circuit providing;

SGS offers a very broad range of valueadded solutions, which reduce risk, enhance value and maximise returns at each step of the mining value chain.

With over 70 years of experience and a truly global presence, SGS has earned the reputation as the leading supplier of proven, technologically advanced metallurgical services. From metallurgical laboratories located on six continents, SGS provides the optimal, environmentally sustainable flowsheet for mining operations around the world.

• • • • •

LOCAL EXPERTISE The expert team at the SGS metallurgical laboratory in Cornwall, UK completed a successful Preliminary Economic Assessment for Euromax Resources‘ Ilovica project in 2012. As development of the metallurgy continued, there was a need to adjust the flowsheet and SGS continued work on the project through the Pre-Feasibility and Definitive Feasibility phases.

Around fifty-six rougher and cleaner kinetic flotation tests were conducted on a master composite to optimise conditions. Using the optimised conditions, a flotation test was conducted on each of the fourty variability domains to determine metallurgical response. Nine locked cycle tests were conducted on different composites from the deposit to determine the copper and gold recoveries before a pilot plant was conducted to generate leach feed.

Having worked on several similar projects in the same region, the SGS team identified similar challenges arising between projects, however; on Ilovica the value streams were added through leach optimisation. The leach feed stream represented only a small fraction of plant feed. To minimise cost and time delay a pilot plant was used to generate material while providing useful scalability information on the flotation process at the same time. The bulk of the leach optimisation work was then performed using standard bottle roll tests.

The principal technical services that SGS focused on for the project included: • • • • • • •

Float optimisation Leach optimisation Tailings management Cyanide destruction Comminution circuit sizing Pilot plant testing Geometallurgy

SGS tested a range of variables including pulp density, cyanide dosage, controlled DO2 content, Lead Nitrate dosage, and pre-oxygenation time. Once the leach stage had been optimised carbon equilibrium isotherms were provided and the data was used to select a carbon addition rate for subsequent carbon kinetic loading tests.

Tank sizes Number of tanks Pulp Carbon retention times Predictions of loaded carbon values

SGS provided geometallurgical information on the deposit through the testing of variability samples with respect to comminution, flotation and leaching data. This allowed mapping of the metallurgical response of the deposit and provided the opportunity to optimise mine planning with consideration of this data. In addition, 80th percentile grindability data was then used to design an Autogenous grinding circuit using JKSimMet™ software.

TRUSTED EXPERTISE SGS‘s demonstrated success in metallurgical and process design has provided thousands of companies with effective flowsheets and practical technical solutions to processing problems. From that core capability, we continue to provide the processing industry with innovative approaches to geometallurgy, process modeling, production forecasting and processing optimisation. minerals.cornwall@sgs.com www.sgs.com/mining

TRUST PROVEN EXPERTISE TO HELP YOU OPTIMISE YOUR MINING OPERATION At SGS, we deliver technical expertise, sustainable solutions and effective services that enhance your operation at every stage. Our laboratories are part of an extensive network with leading-edge technology to help you achieve your goals, whether that means getting to market faster, or making the most of your existing operation.

On six continents we have metallurgical laboratories providing bankable testing to support projects around the world from scoping studies through to Definitive Feasibility Studies. Our recently acquired team at SGS Bateman adds expert modular plant design, engineering, procurement and construction management to our already wide range of services that support you from concept to commissioning. To help increase the value of your operation, our Mine and Plant Services experts are ready to improve efficiencies, resolve process issues and optimise recoveries.

Whether you are in the early stages of planning, have been operating for several years, or are looking to restart, trust SGS to help you manage the risks and maximise the returns. That is getting the competitive advantage.

CONTACT US minerals@sgs.com www.sgs.com/mining

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EUROMAX RESOURCES

“A project of this size can move the add percentage points of the GDP of a country that size” – Patrick Forward, Chief Operating Officer

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EUROPE

teams are looking to lead the European mining industry for social and environmental responsibility, and for health and safety.

The mine, which has proven sulphide ore reserves of 198.1 million tonnes, is optimally situated, as Forward explains: “We like the area and we like the deposit particularly because we like the copper porphyries. It has got good infrastructure, a well-educated workforce, good logistics, proximity to a smelter and we knew how important all of that was from developing the Skouries deposit further to the south when we were at European Goldfields.

“The deposit has great continuous mineralisation and it is very amenable to open pit development. It was a perfect combination of being on entirely state owned forestry ground, a little bit up in the hills and only 17 kilometres from a reasonable sized town. We weren’t looking at displacing anyone - there is a good workforce available and good infrastructure locally. That’s what attracted us in.”

With construction at the mine

billed for completion in the next two years, Euromax is working with key industry partners to ensure that it is not only delivered on time and on budget, but also to the satisfaction of the local community and to international environmental standards.

The fact that it already had an approved EIA indicated that there was much approval for the project, both locally and in the country as a whole.

“Although we had been working in

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EUROMAX RESOURCES

the area, we didn’t know Macedonia itself; what we found was a country that really wanted to develop its natural resources,” Forward says.

“When we sat down with ministers and the Prime Minister, we immediately realised that there was a desire to attract foreign investment and develop their resources; a project of this size can add percentage points to the GDP of a country that size.”

to deliver on key outcomes.

Forward explains: “We have, through the local technical university, got experts on air and water, dust, noise, and socio-economic professors as well. For water services, we worked with WSP Parsons Brinckerhoff; we particularly chose to have them as dedicated water experts who would be able to talk to all the engineering needs of the project and the environmental impacts.

Sustainability “They manage For Euromax, water on-site but Number of employees at Euromax Resources measuring the also talk to the successful construction environmental and of the project hinges on social impacts of the delivering an operation that has project and make sure that as little an impact on the environment all of the other stakeholders are as possible and, moreover, makes taken care of with respect to water. a positive contribution to society WSP has been absolutely brilliant at large. To achieve this end, the in training up our own people.” miner has examined every link in An important partner was the chain – from studying the social Geops - a drilling contractor used and archaeological impact of the for the project’s drilling, resource, project, all the way through to geotechnical and hydrological engaging with specialist partners work. “Geops has been responsive,

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“We have, through the local technical university, got experts on air and water, dust, noise, and socio-economic professors as well” – Patrick Forward, Chief Operating Officer

EUROPE

offered very competitive rates and world class quality,” says Forward.

“They have also managed to train up local people as part of their drill operating teams and help us manage community issues relating to drilling.”

SGS was another key partner, Forward explains; its expertise was vital to delivering metallurgical test work over the four years of development. “This has included helping us optimise the process route, establish recoveries and reagent levels, characterise tailings and characterise waste rock,” he says. “The characterisation of tailings and waste rock is a vital part of making sure that our mining waste facilities, including the tailings management facility, conform to the highest international standards.

“SRK has made sure this concept can be applied in a practical way through detailed design and execution of the mining operation.”

This partner was responsible for executing the post-feasibility study

mine design, delivering a range of objectives including geotechnical analysis, pit optimisation and design, haulage design and fleet selection, as well as cost estimation and mine waste management.

“The fact that all of our mine waste is used in the construction of the embankment for the tailings management facility means that we have a reduced footprint,” Forward explains. “The embankment is entirely rock filled and uses the ‘downstream’ construction method which is the most conservative approach available.”

In the four years spent developing the Ilovica-Shtuka mine, Euromax has demonstrated that sustainability isn’t simply a matter of compliance, more an active, positive contribution to the locality. By developing the project in line with the highest international standards, and through working with local and national stakeholders, Euromax has ensured that the project’s positive legacy is secured for the long term.

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Leadership in Integrated Solutions for Mining, Infrastructure and Energy

Written by Mateo Rafael Tablado, editor Produced by Taybele Piven Interviewee Dr. Martin Jorge Dieck Assad, CEO for MADISA

MADISA’s business divisions and territorial presence are why this industry leader can provide outstanding comprehensive solutions in Power Generation, Machinery, Maintenance and Services

M

ADISA is Mexico’s largest Caterpillar distributor, a global brand whose equipment, machinery and vehicles serve the construction, mining, energy, oil and gas, agriculture, marine and infrastructure sectors, among others.

In 2016, MADISA celebrated its 70th anniversary. MADISA continues to stand out thanks to excellent customer support and accompaniment despite market movements. Not surprisingly, its customer base is remarkably loyal.

Distributing leading brand products such as Caterpillar and Exxon Mobil lubricants in Mexico is key to MADISA’s continued success. It currently has 70 branches throughout the country.

MADISA is headed by Dr. Martín

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Jorge Dieck Assad, CEO. Dr. Dieck is an industrial engineer who earned a PhD in Operations Research and Finance from the University of Texas at Austin while working for the local power company. Upon completing his studies, Dr. Dieck was offered a position there but he instead chose to return home and impart and further develop his knowledge in Mexico.

In addition to helming MADISA for fifteen years now, Dr. Dieck previously worked for the Vitro group, where - under his leadership - some of its companies received notable recognition, such as the National Quality Award. Dr. Dieck also has a passion for teaching and has taught Masterlevel Management courses at the prestigious Monterrey Institute of

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3,200

Number of employees at Mรกquinas Diesel, S.A. de C.V.

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URBANIZATION: * WATER SUPPLY * ASPHALT AND CONCRETE PAVEMENTS * HIGHWAY * TELEPHONE NETWORK * HIGH AND LOW TENSION ELECTRICAL INSTALLATIONS * WATER PLANT TREATMENT

EDIFICATION: * PROJECTS * BUILDINGS * BRIDGES * SCHOOLS * HOSPITALS * DEPOTS * HOUSING DEVELOPMENT * RESIDENTIAL MAINTENANCESIAL

MBG CONSTRUCTORA S.A. DE C.V. EARTHWORKS: * EARTHENWARE * ROADS OF TERRACES * OUTFALL CANALS * DRAGS * OIL PLATFORMS

www.mbgconstructora.com www.mbgmaquinaria.com

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Technology and Higher Education (ITESM, in its native Spanish), and served on various boards at ITESM and the Regiomontana University.

He is currently on the board of Monterrey’s first polytechnic, the Polytechnic University of Apodaca.

A full range of equipment for all sectors

MADISA offers Caterpillar equipment for different uses, providing unparalleled resources to the mining, construction, oil and gas, infrastructure, energy and other industries. It sells and rents new and used equipment (in excellent conditions): power generators, tractors, forklifts, loaders, excavators, bulldozers, crushers, sieves, compressors, drills, underground mining equipment and cranes. Aftersales services includes parts replacement, maintenance, repairs, methods to improve productivity and operating costs, and also offers customer-tailored financing.

Expanding across the board

As MADISA continues to expand across the nation so does its range of products and services.

Acquisitions that have enabled the company to expand territorially and the addition of new products and services make up the following key moments: • Introducing the line of Mobil brand lubricants in 1998. MADISA is today the largest Exxon Mobil distributor in Mexico, the

“Our collaboration programs allow us to define actions and strategies to maintain our leadership” – Dr. Martín Jorge Dieck Assad, CEO for MADISA

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ESTABLISHED 1969

INNOVATING

EVER SINCE GOING ABOVE AND BEYOND FOR YOU From introducing the world’s first aerial work platform in 1970 to developing the largest self-propelled boom lift ever made, JLG is taking innovation to new heights and improving how people in Mexico and around the world get the job done.

Experience the undisputed global leader in access equipment.

Visit www.jlg.com/en-br/JLG

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– Dr. Martín Jorge Dieck Assad, CEO for MADISA

leading brand in the automotive, diesel and industrial sectors.

• The creation - in 2003 - of the Power Systems Division, which provides solutions for the oil, marine and energy segments, is created, installing over 700 megawatts of energy.

• The Agricultural Division emerged in 2010, currently a leader in the sector.

• MADISA acquires MAQSA in 2016. MAQSA is Chihuahua and Durango’s Caterpillar dealer.

MAQSA acquisition and its new scope

The MAQSA acquisition positions MADISA as one of Latin America’s largest CAT dealers. MADISA provides know-how, added value and assurance to its new territory as well as rental services and products for all sectors. MAQSA facilities now have greater flexibility to serve its customers in the states of Chihuahua and Durango.

“MADISA’s strength and MAQSA’s scope will allow us to break into the territory with more effective

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“For 70 years, we’ve kept pushing forward, delivering the best support in our industry” – Dr. Martín Jorge Dieck Assad, CEO for MADISA

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solutions,” said Dr. Dieck.

Power generation

MADISA has also been working for the energy sector since 2003. The company has already installed more than 700 Mw in energy projects for different industries of all sizes, with projects ranging from 0.5 Mw to 50 Mw. MADISA has contributed to the implementation of diesel, natural gas, mine gas, landfill biogas,

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cow dung biogas, and even pig manure biogas generated systems. Industries such as mining, quarrying, aggregates, brick, steel, aluminum, metallurgy, textile, pharmaceutical, agricultural, food and services, among others, have benefited from MADISA. The company has also provided energy to urban developments that previously has no access to the public services’ power grid.

Factors that make the difference

A network of 70 locations nationwide offering each a complete line of services is only one of the many reasons that MADISA stands above the rest.

Other attributes that give MADISA a competitive edge include: • Having Mexico’s largest fleet of rental machinery. MADISA holds distinguished rankings on a global and local scale. The company places 82nd (both in 2016 and in 2015)

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1865 Madisa 20 year anniversary ad.indd 1

12/16/2016 10:56:55 AM

COMMITTED TO OUR CUSTOMERS Congratulations On 70 Years Of Excellence Thank you to MADISA for providing 70 years of industry-leading customer service and support. No matter the challenge, you can expect MADISA to deliver unmatched expertise and superior solutions.

Keeping your business strong and running, that’s how we’re built. www.cat-lift.com © 2016 MCFA. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge”trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. All registered trademarks are the property of their respective owners. Some products may be shown with optional equipment.

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“Our decisions always consider how could we increase the value we offer to our clientele” – Dr. Martín Jorge Dieck Assad, CEO for MADISA

among the top 100 machinery rental companies in the world according to International Rental News (IRN) Magazine. In Latin America, MADISA rose from 12th place in 2015 to 8th place, competing not only with

regional companies, but also with local affiliates to global companies.

• MADISA’s parts inventory exceeds US$70 million and is composed of more than 50,000 part numbers.

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Se unen al festejo del

70 ANIVERSARIO

THE LEADER MANUFACTURER OF FOUNDATION EQUIPMENT MOUNTED ON CATERPILLAR BASES!

Además nos congratulamos por la brillante adquisición de una empresa tan importante como MAQSA. Es un orgullo para nuestra compañía proveerles llantas de alta calidad y así contribuir al éxito de MADISA. La sinergia de grandes empresas es sinónimo de calidad, servicio y compromiso.

ATENTAMENTE:

WWW.CZM-US.COM 145 East Industrial Boulevard Pembroke • GA 31321 • USA

Phone: 1(912)200-7654

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CONE CRUSHERS • JAW CRUSHERS IMPACT CRUSHERS • SCREENS PORTABLE PLANTS • TRACK PLANTS MODULAR SOLUTIONS

TELSMITH.COM

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20/12/2016 11:

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• Its logistics system allows for parts to become available within up to three days.

• Replacement parts as well as two parts repair centers with cutting-edge technology.

• Customer tailored financial support thanks to Caterpillar Credit.

• Maintenance contracts integrated at various levels, including those that guarantee machinery availability.

• More than 1,000 product specialist technicians.

• Its own lubricant and fluid laboratory to ensure a predictive maintenance approach.

• GPS technology via the LINK VISION system. Every machine is equipped with sensors that send data to remote computers to monitor equipment status, performance, productivity and maintenance times.

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Technological support

MADISA uses technology to not only equip its sales force with resources such as tablets to easily access data and graphics, but has also developed applications to help its staff show the customer the benefits and characteristics of each product.

MADISA uses other tools to ensure operational logistics, boasts a data warehouse and uses applications that analyze company-generated information to improve productivity.

“We see technology as a strategic enabler in our operations,” said Dr. Dieck.

Strategic partners: a key factor for integrated solutions

MADISA regards its suppliers as strategic partners. In addition to being a pioneer when it comes to

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technical innovation and quality, MADISA is praised for their product support and personnel training.

“Working together with our strategic partners makes all the difference and really sets us apart,” revealed Dr. Dieck.

Intensive training

Our technically qualified personnel is thanks to in-depth training conducted at MADISA training centers in Monterrey, Mexico City, and now, following the MAQSA acquisition, in Chihuahua. Each of the training centers —which include dormitories and a meal area for those in intensive training programs—is able to produce twelve qualified technicians a month.

Meanwhile, business training programs teach the sales force to show customers how to get the

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best operating costs and make the most out of the equipment.

“Training is a strategic differentiator able to make our staff stand out from the rest,” said the CEO. MADISA has formed a partnership with the National School of Technical Vocational Education (CONALEP).

Along with this institution, the Diesel Technician Program was developed, opening in 2010 from which graduates are currently employed.

Aligned environmental responsibility

guide and support each customer so that their operations are also as environmentally friendly as possible.

Projections

Success and growth experienced in 2016 have set a precedent for MADISA, regardless that several markets that the company serves are experiencing somewhat tough times. MADISA is confident about its immediate future, for despite the country’s previous crises, it has flourished and emerged stronger.

The company trusts it will continue to do so without exception.

MADISA facilities manage their toxic waste adhering to certifications granted by Caterpillar, which awards degrees and has awarded MADISA’s Monterrey parts repair center the highest honors (five stars).

CAT support allows staff to

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