Mining Global September 2014

September 2014

www.miningglobal.com

T OP DIAM 10

O MINE ND S

ArcelorMittal Canada World Class Performance

Inventory Management With Glencore The Mining Sector Puts Drones to Work Work Smarter The Ultimate Guide to Outsourcing

The US is Now the Preferred Destination for Gold Mining Companies

editor’s comment

in this issue

“Everything has its limit - iron ore cannot be educated into gold” – Mark Twain The price of gold is unanimous

around the world but the cost of production, unfortunately, is not.

In the September edition of Mining Global, we discuss the future of gold mining around the world and how the United States has catapulted itself to the top of the list as the preferred destination for gold mining companies.

Also this month: we take a look at the growth of drone-based surveying technology and identify the key players in the market; provide the ultimate guide to outsourcing with the do’s and don’ts by industry experts; and showcase the largest and most profitable diamond mines in the world.

Lastly, we examine how Xstrata handles inventory management and consider how the software has helped reduce downtime, accidents and profit loss for the mining company.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com 3

© 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 131017

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Contents

FEATURES

8

Operations The ultimate guide to outsourcing

14

Machinery The Mining Sector Puts Drones To Work

30

24

Finance

Glencore Enters New Era with Oracle Exadata as Platform of Choice

The U.S. is Now the Preferred Destination for Gold Mining Companies

Technology

Top 10

Diamond Mines in the World

36 5

68 SENET

Contents

156 Resources Appalaches

50

120

Cleveland Potash

CME

Company Profiles EUROPE 50 Cleveland Potash

AFRICA 68 SENET

ArcelorMittal Canada

78 Metorex

124

106 Kirloskar Oil Engines Limited

America Latina 120 Association: CME

CANADA 124 ArcelorMittal Canada

Millenium Minerals

130

xxxxxxx

146 Kirkland Lake 156 Ressources Appalaches

78 Metorex

Australia 162 Millennium Minerals 172 Association: World Coal Association

7

O p e r at i o n s

The Ultimate Guide to Outsourcing Get your mine to work smarter not harder with these do’s and don’ts for outsourcing by industry experts Writ ten by: Robe rt Spe n c e

The mining sector is a highly competitive, highly profitable global business. Mining companies are continuously looking to implement newer operation models into practice, finding more ways of increasing productivity, reducing costs and improving effectiveness.

This process is forcing management teams to confront tough choices on how to balance the needs of the individual mines as well as the broader scope of corporate goals for boosting enterprise value. Due to the remote locations, mine lifecycle, limited and specified supply market and challenging production, the industry is full of facets for outsourcing.

The key theme here is differentiating what should, and shouldn’t, be outsourced. We break down the do’s and don’ts of outsourcing in the mining industry.

Understanding your needs Outsourcing is the practice of using outside firms to handle work normally performed within a company.

The first step in outsourcing is identifying the company’s needs.

According to Niskanen Salla from the University of Oulu, outsourcing 9

O p e r at i o n s in the mining industry is guided by two contextual factors: the production factors and the capacitybased factors. The key for mining companies is to identify and assess how critical outsourced processes are to the organization.

The outsourcing process is detailed in a five stage process model. The first stage is identifying the noncore and core activities and analyzing the possible scope of the outsourcing as well as risks and benefits. Mining companies should always retain complete control over its core functions.

Second stage is the evaluation of desired criteria from suppliers.

The third stage is the selection and negotiation of an agreement with suppliers with the fourth stage being the implementation of suppliers.

The fifth and final stage is supplier performance with possibilities for continuous improvements.

To be strategic companies must first look for overall business improvements rather than simple cost cutting measures. Focusing on central activities for organizational success is the first step in identifying potential outsourcing needs.

10 September 2014

‘When done right, the benefits of outsourcing can be paramount.’ Mining operations consist of a number of processes, which vary in importance depending on the type of mine and mineral being mined.

Large teams of specialists are often required, and specialist consultants are more likely to be able to provide and coordinate such a team.

Benefits of outsourcing By outsourcing certain job functions, companies can spend more time concentrating on goals, achieving better customer satisfaction and therefore earning better profits. When done right, the benefits of outsourcing can be paramount.

Benefits include more innovation, quality, independence, reduced overheads, choice and continuity.

Outsourcing allows companies to reap the benefits of comprehensive services and added expertise.

Accenture, for example, provides mining companies with outsourced support services in a variety of commercial and IT areas. Their

Accenture give their mining perspective outsourcing application can support SAP and Ellipse applications and help mining companies create IT organizations that can control costs while delivering improved services.

Recently, Accenture teamed up with a major mining company to revitalize its automation, instrumentation and controls of the unitary operations of one of its bottleneck plants.

Accenture conducted a production analysis and was able to identify

potential production gains and cost reductions for the plant. In return, Accenture was able to decrease in process variability by 1.3 percent, increase equipment production availability by 1.8 and 3.3 percent and decrease water use by 2.1 percent.

Outsourcing equipment is another viable option for mining companies. If a company owns its own equipment it would typically need to employ a maintenance team to maintain the 11

O p e r at i o n s complex, automated equipment.

This would obviously result in increased costs. By outsourcing equipment needs, companies can therefore save on capital costs.

Another benefit is companies have more time to manage areas in its core focus. With cost saving space of outsourcing, there is more available capital for other operations.

Tips for outsourcing Before selecting an outsourcing

partner mining companies should consider certain factors. Do you and your selected partner share the same values? Does the external provider have a proven reputation? What is their financial stability? How much experience do they have?

When correctly used, outsourcing can serve as a useful tool in bolstering performance, profits and efficiency.

Some do’s and don’ts to remember when choosing what functions to outsource and who to partner with:

Consider all the factors when selecting outsourcing partners

12 September 2014

Th e U l t i m a t e G u i d e t o Ou t s o u r c i n g

‘Do you and your partner share the same values?’

Do use outsourcing as a leaner way to grow with less overhead: To maximize the benefit of outsourcing, mining companies should use it to expand their talent pool as well as save money. This allows companies to quickly adjust to changes in demand, attract better workers and stay current with technology.

Don’t outsource core workers or job functions: Core employees are the underlying center of your organization. Don’t outsource

them. They help to drive and direct the process and projects of your company. Keep the talent you have.

Do outsource skills or expertise you don’t often need: Don’t pay for the things you don’t need or use often. One of the biggest benefits of outsourcing is attaining experienced services. Companies should outsource skills or expertise they don’t often need; tools and technologies they don’t own; or special cultural, geographic or industry expertise.

13

M a c h i n e ry

The Mining Sector Puts Drones to Work Mining Global takes a look at the growth of drone-based surveying technology and identifies the key players in the market W r i t t e n b y: R o b e r t S p e n c e

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M a c h i n e ry Drones are beginning to take flight in the mining industry.

The newly adopted technology, which has been utilized for a wide array of mining activities, is taking another step forward.

“Ten years ago, I would have had a rat’s chance of convincing any mine surveyor to take a UAV on,” HeLImetrex CEO Ray Gillinder says. “These days it seems to be a lot more acceptable.”

Unmanned aerial vehicles, otherwise known as UAV, are turning the mining sector into an emerging frontier for new technology. In recent years, these miniature helicopters have helped the industry find cheaper and safer ways to map deposit sites and The newly adopted done technology, which has been utilized for a wide array of mining activities, is taking another step forward

explore for minerals via remote control.

“They are really safe, easy to use, lightweight. You can put them in a small bag and take them everywhere,” said Olivier Kung, co-founder of Switzerland’s Pix4D, which makes software to convert photographs from the smallest drones into usable data.

With the ability to monitor stockpiles, map exploration targets and track equipment, the usage of drones in the mining industry is limitless.

Cost efficiencies and benefits One of the biggest benefits of using UAV’s is the cost. Cheaper than traditional helicopters, drones are reshaping the way mining companies survey new areas, providing better

“Unmanned aerial vehicles, otherwise known as UAV, are turning the mining sector into an emerging frontier for new technology.”

–H eLImetrex CEO Ray Gillinder

16 September 2014

Headline

An artists impression of a drone in action via remote control

results for a fraction of the cost.

“It may cost $2,000 an hour to rent a helicopter,” he said. “Our costs for sending a couple of operators out with a system is under $200 an hour,” says Mike Hutt who heads UAV projects for the U.S. Geological Survey.

According to British Columbia’s Accuas Inc., drones will eventually become the future of mining operations. “I would say starting a year ago, there’s been a really big push on UAVs,” said Scott McTavish, the president of Accuas. “I think

it’s going to continue to grow.”

“It’s much cheaper technology, much higher mobility, because you can carry the equipment in a suitcase,” he said. “You’re much more flexible.”

Buddy Doyle, who first started following UAV technology in the mid 80s, says the low cost of drones will be the major selling point.

“The idea is to be an airborne data collector, best and leastexpensive, and that’s what we’re doing,” said Doyle. “The biggest hurdle, I would say, is regulatory.”

17

M a c h i n e ry In addition to surveying, the likelihood drones are used in other avenues of mining operations is a clear possibility.

“The possibilities for the application of drones in mining are seemingly endless with new uses coming to light every week and more widespread utilization being reported across the industry,” said Nigel Court, mining program and project manager for Accenture.

“We see potential benefits across the value chain, from safety and security (search & rescue, monitoring / providing information from dangerous and difficult locations) to exploration and development (such as aerial photography and remote sensing) and

View of mine from drone

18 September 2014

productivity (stockpile mapping, mine mapping & reconciliation and time lapse photography) just to name a few.

“Leading mining businesses are rapidly making these kinds of capabilities available through their use and customization of drones. Turning these ideas into results of course requires coordinated planning across the value chain and focused execution.

While we are likely on the front side of the hype cycle, we believe these capabilities will continue to mature and will transform the industry.”

Court went on to provide a prime example of time savings when using drones for mining.

“Imagine there was an issue on the rail line in the Pilbara, from the time the problem is identified to getting the worker out there to see the cause of the issue through to getting someone out there to solve it, it could be three hours or more, whereas if a drone is flown over it can reach the site in less than half an hour, take high resolution photos that can be used to identify the problem, after which someone can be sent out to fix out the problem,” he said.

“It also has the ability to take high resolution, time lapse pictures of a

“The possibilities for the application of drones in mining are seemingly endless with new uses coming to light every week” –N igel Court, mining program and project manager for Accenture site to see if fractures have appeared in the rock faces over time for early detection so that it removes much of the risk and increases safety on site.”

Rules and regulations The first step in implementing more drones in mining operations is figuring out the regulations for each country. In the United States, only public agencies can fly drones and in Canada operators must apply for regulatory waivers. In other countries, controllers must keep

drones within eye sight of operations.

Earlier this year, Territory Iron was awarded an operating certificate from the Civil Aviation Safety Authority (CASA) to use drones at its Frances Creek operation in Australia.

“We started to look at the potential for UAVs at our mine in late 2012.

Given that our team had no previous aviation or RC knowledge, we searched for a turn-key application which included hardware, software and training,” says Darryn Dow, Chief Mine Surveyor for Territory Iron.

19

M a c h i n e ry XXXX

Analysing data instantly after using the drone “This was to help integrate any system we purchased into our current mining operations with minimum disruption to our daily task lists. At that time there were few systems that ticked all the boxes we wanted, especially cost, and we finally decided on the Sensefly Ebee/Pix4D package being distributed by Haefeli Lysnar Geospatial Solutions in W.A. “We also approached CASA at about the same time, seeking direction 20 September 2014

on how to obtain the certification necessary to comply with regulatory guidelines. This lead to enrolling one of our surveyors in the BAK and PPL courses being offered by the Western Australian Aviation College in January and March 2013.

“Our first surveyor was CASA certified in June 2013, and another surveyor will be applying for his certificate in April this year. By year’s end we plan to have three certified

Th e M i n i n g S e c t o r P u t s D r o n e s t o W o r k

controllers to cover our FIFO rosters.

“We then set about applying for the operators certificate for Territory Iron. Not having completed operating manuals of this kind before, we did struggle to come to grips with the content and structure required.

Luckily for us, John Frost – CASA’s airworthiness inspector for unmanned aircraft systems – helped us simplify this process by supplying us with a preferred generic operating manual that had been developed to guide new applicants, and we tailored it to reflect our intended use.

“Risk assessment and drug/alcohol policies already existed within the company so we submitted these to show we were capable of managing

“We recently began to develop geological mapping missions which will eliminate the need for personnel to access areas of the open pit that are hazardous” – Darryn Dow, Chief Mine Surveyor for Territory Iron

our UAV system safely. Following a trip to Canberra to complete the field testing component of the submission, we were awarded our Operators Certificate in December 2013.

“To date we have flown more than 100 missions and collected data for a wide range of tasks. Monthly reporting of stockpile inventories, pre and postmining imagery of land disturbance, data capture for exploration and mine planning purposes, photo evidence of environmental and heritage compliance, as well as general presentation imagery used for site communications, account for the majority of routine use of our UAV. “We recently began to develop geological mapping missions which will eliminate the need for personnel to access areas of the open pit that are hazardous (rock fall potential) or congested (interaction with mobile mining equipment).

“From a surveyor’s perspective, I was initially skeptical that we could produce results that would adhere to the spatial accuracies we achieve with conventional surveying instruments like GPS and laser scanners.

“This has been enhanced by placing numerous ground control 21

M a c h i n e ry points within the mission area to aid the spatial corrections applied during software processing. Although we allow a slightly larger tolerance in absolute positions achieved with the UAV, the results still fall within industry accepted standards.

Now I am confident we regularly achieve a high quality result.”

Investments in drones The investment for drones is growing.

Australia’s mining industry alone spends roughly $3.7 billion a year on research and development and the ability to operate more Drone, midflight

22 September 2014

efficiently in remote regions where drones aren’t likely to be threats to high-density populations is a huge selling point for the technology.

This past year, mining computer tech company Maptek has jumped on the airborne technology, making a significant investment in the start-up DroneMetrex.

Although managing director for DroneMetrex wouldn’t disclose the exact nature of the investment, he did elaborate on the purchase.

“We’ve built a mapping system from the ground up, everything is designed for the drone from

Th e M i n i n g S e c t o r P u t s D r o n e s t o W o r k

the start,” Tadrowski said.

“Other companies are building drones and then putting mapping systems in them, but no-one’s ever going to be able to do it properly that way,” he said.

“We design the whole system to be the same as DGPS, with real time, kinematic surveying… we’re getting elevation accuracy of 25mm, but we’ve actually been getting better than that.

“Our competitors are getting about half a meter to a meter accuracy, although they’ll try to tell you different, but no-one will do it with their hand on their heart.”

‘We design the whole system to be the same as DGPS, with real time, kinematic surveying… we’re getting elevation accuracy of 25mm, but we’ve actually been getting better than that’ – Tadrowski , Managing director for DroneMetrex

Geological layer scheme Rio Tinto, for example, has been aggressively working to build its Mine of the Future incorporating drones in a wide array of activities.

The company’s representatives said Rio will begin employing UAV for exploring, mapping and surveying later this year. Rio Tinto’s use of drones could exponentially speed up the use of UAV’s in the industry.

While still in its infancy, drones are expected to make a major impact in the mining industry in terms of productivity, cost and efficiency in future years.

23

TECHNOLOGY

Glencore Enters New Era with Oracle Exadata as Platform of Choice

Among hundreds of customers in Europe, Glencore has chosen Oracle Exadata database systems to boost their mission-critical computing platforms, reducing both downtime and profit loss Writ ten by: Robe rt Spe n c e

25

TECHNOLOGY Housed between the towering peaks of the Swiss Alps and the rugged Jura Mountains, lies a sleeping giant: Glencore International PLC. Regarded across the globe as a leader in mining and commodity trading, Glencore operates around the clock, seven days a week, to produce an expansive amount of metals and minerals, energy and agricultural products.

Founded in 1974 by Marc Rich in Switzerland, the company has evolved from initially focusing on the physical market of metals, minerals and crude oil into a diversified natural resources group through acquisitions

26 September 2014

of farming, mining, smelting, refining and processing reduction assets.

A commodity marketer such as Glencore needs to be capable of making the proper decisions based on the latest information available.

Market volatility, weather conditions and political uncertainties are just a few factors that can drive a trader to success or failure. But, thanks largely in part to early adoptions of technologies that bring a competitive edge to Glencore’s IT infrastructure, this giant is one that will remain a force to be reckoned with.

Glencore runs a solid backbone of trading and risk management

G l e n c o r e E n t e r s N e w E r a w i t h O r a c l e Exa d a t a

platforms and reporting databases.

In fact, more than 200 different IT solutions operate at Glencore on a daily basis, allowing for a dynamic decision making process when it comes to the company’s global distribution business. But one platform is turning the company into a data powerhouse.

Oracle Exadata – a database appliance with support for both transactional and analytical database systems – was incorporated by Glencore last year upon careful review and consideration.

“We considered Oracle Exadata solutions before it gets fully certified on SAP ECC 6.0, enabling a leading edge solution to support a major accounting program change, but certification was an essential prerequisite for our company,” stated Sveto Putincanin, head of IT engineering and operations at Glencore, in a report.

According to Oracle, Oracle Exadata’s architecture features scale-out industry-standard database servers, intelligent storage servers, and a high-speed InfiniBand internal fabric that connects all servers and storage.

Oracle Exadata Database Machine X4-2 Upon acceptance of the system, Glencore began a complete roll-out of the platform, upgrading its global data warehouse environment to the new, SAP-based global financial solution with the Oracle Exadata Database Machine.

The roll-out program was completed in two phases: incorporation and deployment. The first deployment exceeded Glencore’s expectations as it harmonized with the current platforms Glencore had in place and increased performance almost instantaneously. Key complexity was visibly reduced, simplifying the operating system and removing administration from the equation. Oracle Exadata alone 27

TECHNOLOGY replaced production, testing and development machines with an adequate SAN environment.

Prior to integration, reports were generated overnight due to the mass amount of data received and processed, now, with Oracle Exadata, Glencore is able to turn around information in less than an hour.

“This is very valuable in our competitive industry which depends heavily on market information and how you can anticipate change.

Being able to quantify and correlate any technical improvement with the Glencore overall financial performance is quite difficult. Nevertheless, I

Using Oracle Exadata, Glencore is able to quantify and correlate incoming data in less than an hour

28 September 2014

consider that we have today a key component for future successes,” said Cyril Reol, CIO of Glencore.

“We saved on resources as well, particularly as the platform only needs to be administered by one team instead of four previously. It will clearly pay off in all our subsequent activities,” added Putincanin.

Glencore’s Global Accounting Program aimed to streamline its accounting and financial processes worldwide and was initially deployed in their headquarters of Baar, Switzerland for its global metal, minerals and coal market.

The program has since been instituted across other operations, including oil and gas divisions in the United Kingdom, United States and Singapore, and their agricultural business in The Netherlands.

“We now have a SAP-certified solution and a single provider supplying the operational support for all its components. Additionally, we can administer and further develop our IT infrastructure more efficiently thanks to the Oracle Exadata solution, making our team even more effective in the future,” said Putincanin.

By embracing Oracle Exadata,

G l e n c o r e E n t e r s N e w E r a w i t h O r a c l e Exa d a t a

“This is very valuable in our competitive industry which depends heavily on market information and how you can anticipate change” –C yril Reol, CIO of Glencore Glencore achieved multiple successes. Users can now more quickly access the reports they need to market their products in the best way; both hardware and software components interoperate seamlessly; and system operation is simpler overall as the server, operating system, firmware and storage are perfectly aligned.

Glencore is the third largest global mining company by market capitalization, producing and marketing over 90 bulk commodities in over 50 countries. As a fastgrowing, successful company, Glencore consistently relies

on the latest technologies to improve its competitive edge.

“As a leading integrated commodities producer and marketer, we need to source, process, refine, transport, store, finance and supply materials needed by industries around the world. Consequently, each decision related to performance maximization becomes more critical and complex, particularly in today’s outlook. Oracle Exadata is the best solution to ensure optimal performance and a fully integrated platform that will support our company’s fast growing pace and success story,” concluded Reol.

29

Finance

The U.S. Is Now The Preferred Destination For Gold Mining Companies

According to a new report, gold mining companies are earning more from U.S. based mines than anywhere else in the world Writ ten by: Robert Spence

Blasting at AngloGold’s Cripple Creek and Victor open pit

31

Finance The price of gold is the same around the world but the cost of production unfortunately is not.

According to a recent article by Forbes’ columnist Tim Treadgold, gold mining companies are earning more from U.S. based mines than anywhere else in the world.

“In the commodity world the value-gap is best illustrated by that universal material gold, with the cost profile of one company demonstrating why the U.S. is a preferred destination for new mine developments,” he writes.

Numbers never lie In his article Treadgold uses South African miner AngloGold The US division of AngloGold produces gold at $765 per ounce, nearly $100 an ounce less than it’s operations in Africa

32 September 2014

Ashanti (JSE:ANG) as a prime example of why the US is the preferred destination for gold mining.

The company, which has four major divisions (South Africa, Africa, Australia and the Americas), reported a four percent increase in gold production to over one million ounces for the second quarter of 2014.

When breaking down production and cost between the four divisions, however, the clear cut winner was the Americas unit.

According to Bank of America Merrill Lynch, the division produced gold at $765 per ounce, almost $100 an ounce less than AngloGold’s operations in Africa – which should be the cheapest mining destination.

AngloGold’s African operations produced gold at $846/oz and the company’s Australian mines at $850/oz.

“When it comes to future investment it is likely that proposals from the Americas division of AngloGold will win a capital allocation ahead of other divisions simply on the question of costs, a situation which could soon attract the attention of environmental groups opposed to most forms of mining,” Treadgold says.

‘Simply put, the United States has become the go-to destination for gold mining companies’

AngloGold’s Cripple Creek and Victor open pit New gold reporting metrics Initiated by the World Gold Council (WGC), mining companies and investors have adopted new metrics for cost reporting and efficiency called all-in sustaining costs, or AISC. [For further information, click here] These metrics being used more frequently to capture a point-intime look at what it costs to run a gold mine and generate today’s revenue. This includes everything from G&A expenses and sustaining

capital for mines are they age.

“The way companies are using the metrics to describe their performance and to educate employees about the real costs of mining, assisting them to make better cost decisions, is really helping companies to improve their financial performances, while simultaneously improving cost disclosure to investors and interested parties,” WGC director Terry Heymann.

While the majority of companies 33

Finance

“The way companies are using the metrics to describe their performance and to educate employees about the real costs of mining, assisting them to make better cost decisions, is really helping companies to improve their financial performances, while simultaneously improving cost disclosure to investors and interested parties� – WGC director Terry Heymann

Mining corporations like Cliffs and Apache are being targetted by activist funds demanding the sale of high cost operations like iron ore mining and turn to more profitable operations such as gold mining in the US

G o l d M i n i n g C o m pa n i e s P r e f e r t h e U . S .

and investors have approved these reporting metrics, not everyone is sold.

Randgold Resources’ (LON:RRS) CEO, Mark Bristow, slammed the reporting tool saying ASIC was just “jiggery-pokery.”

“Why does the gold industry have to be different? What’s the reason? It’s because we are not profitable, so we try to make ourselves look profitable,” said Bristow.

He added that the gold mining company that had originally promoted and adopted the AISC concept by the WGC had since resigned from the council.

Randgold Resources’CEO, Mark Bristow, has publicly critised the foundation of AISC

Going for the gold So why is gold so much cheaper to produce in the Americas?

The consensus is generally associated with third-world countries and their economy.

Treadgold cites two major companies and their way of thinking behind the US being a better destination for gold mining.

“Cliffs Natural Resources and Apache Corporation have been targeted by activist funds demanding the sale of high-cost, low-profit, assets in Australia with Cliffs under pressure

to sell an iron ore mine in Western Australia and Apache planning to sell a 13% stake in a big Australian liquefied natural gas project being developed by Chevron Corporation.”

Many investors have spotted the value gap developing between international mining and oil operations and those in the United States. And many of them are selling off their international assets to reinvest the capital back into U.S. based projects.

Why? Simply put, the United States has become the go-to destination for gold mining companies.

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TOP 1 0

Top10

Diamond Mines in the World Mining Global showcases the largest and most profitable diamond mines in the world Writ ten by: Robert Spence

37

top 10

10

Botuobinskaya (Russia)

Located in the Yakutia region of Russia, the Botuobinskaya diamond is estimated to contain roughly 70 million carats. The mine, which is scheduled to commence production in 2015, is owned and operated by Nyurba mining and processing division of ALROSA. The company began the first phase of the stripping operation in late 2012. The operation will last three years with mining operations expected to begin in the fourth quarter of 2015. The Botuobinskaya mine will produce 1.5 million carats of diamonds annually for more than 40 years.

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September 2014

09

Orapa (Africa)

As the world’s largest diamond mine by area, the Orapa diamond mine is located 240km west of Francistown city in Central Botswana. The open-pit mine is estimated to contain 85.7 million carats of diamond reserves.

Orapa commenced production in 1971 and underwent expansion in 1999 to double its previous capacity. Owned and operated by Debswana, a partnership between the De Beers Company and the government of Botswana, the site is the oldest of the four diamond mines operated by Debswana.

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top 10

Jwaneng is the richest diamond mine in the world by value

08

Jwaneng (Africa)

Another major diamond mine is Botswana is the Jwaneng site, which is located 160 miles south-west of Gaborone in south central Botswana. The mine, which has been in production since 1982, is another partnership owned and operated site by the De Beers Company and the Government of Botswana. Regarded as the “richest� diamond mine in the world in terms of value, the Jwaneng mine is estimated to contain roughly 88 million carats of diamond reserves. Since 2010, the mine has undergone a major expansion (Cut-8) to extend the mine’s life cycle until 2025.

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September 2014

Diamond Mines in the World

07

Grib (Russia)

Located in the north-western part of Russia, Grib is an open-pit diamond mine estimated to contain over 98 million carats. The mine is expected to become the largest diamond mine in Russia in terms of size.The Grib mine is owned and operated by Lukoil through its subsidiary Arkhangelskgeoldobycha (AGD). With production commencing in June 2013, the site is planned to go underground after 16 years of openpit operation. Grib is the first new non-alluvial diamond mine to produce more than one million carats per year.

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top 10

06

Venetia (South Africa)

Owned and operated by De Beers, the Venetia diamond mine is estimated to contain more than 102 million carats. Located in the province of Limpopo in South Africa, the site is both an open-pit and underground mine producing roughly 3.066 million carats of diamonds in 2012. With deposits consisting of 12 kimberlite pipes, the Venetia mine is the largest diamond producing mine in South Africa.

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September 2014

Venetia diamond mine is estimated t

to contain more than 102 million carats

05

Catoca (Africa)

Located in Angola, the Catoca is the fifth largest diamond mine in the world. Operated by Sociedade Mineira de Catoca, the mine is a joint venture with state-owned diamond company Endiama (32.8 percent), ALROSA (32.8 percent), China and state oil producer Sonangol (18 percent) and Odebrecht of Brazil (16.4 percent). The mine is estimated to contain 130 million carats of mineable diamond. The Catoca mine accounted for 70 percent of Angola’s total diamond output.

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top 10

04

Argyle (Australia)

The Argyle mine in Western Australia is estimated to contain 140 million carats of diamond. Owned and operated by Rio Tinto, the mine has been in production since 1983 with peak production expected to hit 20 million carats a year. The Argyle mine is currently transitioning from an open-pit mine to underground, becoming the first block cave mine in Western Australia. The mine is expected to produce until 2020.

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September 2014

Diamond Mines in the World

03

Mir (Russia)

Before decommissioning in 2001, the Mir mine was the largest diamond mine in the world. Discovered in 1955, the Mir diamond mine is owned and operated by ALROSA and estimated to contain 141 million carats of diamonds. Underground operations recommenced in 2009 and the site is expected to produce one million carats in 2014.

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The benchmark in agricultural machinery conveyance.

AGRITRANS Serving the Southern African Agricultural Industry T: +27 58 813 1303 • F: +27 86 689 7623

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September 2014

www.agritrans.co.za

Diamond Mines in the World

02

Udachny (Russia)

One of many diamond mines owned by ALROSA, the Udachny mine in Russia is on pace to become the largest diamond mine in the world. Located in the Yakutia region of Russia, Udachny is estimated to contain over 152 million carats of diamonds.

Discovered in 1955, the mine is one of the deepest open-pit mines in the world, producing 10 million carats of diamonds a year.

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top 10

01

Jubilee (Russia)

Ranking number one on our list, the Jubilee diamond mine in Russia is the epitome of producing mines.

The site is estimated to contain more than 153 million carats of recoverable diamonds, including 51 million carats of probably underground reserves. Owned and operated by the Aikhal mining and processing division of state-owned ALROSA, the site is an open-pit mine operating at depths of 320 meters with expectations of eventually reaching 729 meters. In 2012, the Jubilee diamond mine produced 10.4 million carats of ore.

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September 2014

Diamond Mines in the World

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Cleveland Potash remain at forefront of the mining industry Pioneering work with an extremely rare mineral and sustained investment in resources have seen the UK-based company thrive Written by: Sam Jermy Produced by: James Pepper

Photo credit [link]: Michael Jagger

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C l e v e l a n d P o ta s h

Pioneering work with an extremely rare mineral and sustained investment in resources have seen the UK-based company thrive

Boulby mine

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September 2014

C

leveland Potash, the world’s first commercial producers of the rare evaporate mineral, polyhalite, is currently undergoing a £250 million investment in a revamping its facilities, which has created new jobs.

The 80-acre Boulby mine, in North Yorkshire, England, is currently two year’s into a five-year project which will include the upgrade of existing underground machinery fleet such as larger continuous miners, drills, bolters, conveyors and shuttle cars.

A proportion of the investment will go towards strengthening mine infrastructure to support the polyhalite extraction. It is reopening old roadways

Mining

Main plant

and widening out existing roadways as well as commissioning, building and augmentation of underground bunkers.

The firm, which is a subsidiary of Israel Chemicals (ICL), has undertook numerous improvement works at the surface too; everything from the ÂŁ16m rock shaft head tower renewal to improve hoisting and capacity potential to 5.3 million tonnes, to logistical improvements at its Tees Port facility. Significant investment is also planned to improve the efficiency of the surface potash process plant.

Phil Baines, Managing Director and General Manager of Cleveland Potash, said: “We are very

Arches at Boulby

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AMCO is a specialist contractor providing sustainable, multi-disciplinary solutions to the Infrastructure, Environmental and Energy sectors.

Within Infrastructure we operate in the specialist areas of mining services and moving structures, such as lock gates and swing bridges. Our Environmental business is focused upon flood defence. In the Energy sector our clients include all the major utilities such as E.ON, SSE and Magnox; for whom we create and maintain assets in nuclear, coal, gas, hydro and wind. With over 1,000 in-house staff we deliver nationally but are organised regionally.

‘We add value by combining innovation with commercial awareness’

www.amco-construction.co.uk

C l e v e l a n d P o ta s h

Mining

much improving all facets of the company and the site. Part of our plan was to specifically increase the workforce underground.

“This facilitates four potash mining teams to work at any one time and independently deploy salt mining crews to push out the strategic roadways.

“We’ve actually completed that employment programme now and it has grown the workforce by about 120 over the past 18 months, bringing our underground workforce to more than700, with nearly 1,200 employees in total.”

The company’s under-

World leaders A significant development of Cleveland Potash is the polyhalite seam, which sits beneath the potash. The North York Moors coastline is home

supplier profile

ground workforce has increased to more than 700, with an overall total of just under 1,200

Amco

Amalgamated Construction (AMCO) provides a diverse range of specialist construction and engineering services. We create and maintain assets for both public and private sector customers in the specialist sectors of rail and engineering.

AMCO has evolved through a combination of structured acquisition and organic growth into a ‘contractor of choice’. Our business relationships are based on trust, mutual respect, best value, whole life costs and continuous improvement.

Website: www.amco-construction.co.uk

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C l e v e l a n d P o ta s h

Saltmine

“With any emerging, new product you have to prove that this new product is just as effective, safe and is generally okay compared to more established brands” – Phil Baines, Managing Director & General Manager

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September 2014

to a previously unheard amount of polyhalite deposit, and is something which makes the organisation unique. It is the only one in the entire world mining the rare material used as a speciality fertilizers.

Part of the five-year plan is to ramp up the annual polyhalite production tonnage to 600,000 by 2017.

Borehole information on the mine dates as far back as the 1930’s. Planning permission was granted in a joint venture between Chartered Consolidated and ICI Chemicals which started shaft sinking in 1969.

The first potash were hoisted in 1973, fullproduction came about in 1975 but it was not until recently that polyhalite started to be extracted commercially.

Baines said: “We put two drifts down from the current salt horizon within the mine, in the central area, about three years ago now.

“There’s millions of tonnes of it and at this stage, its looks relatively stable and strong, and we have proved you can machine cut it and support the infrastructure very well.

“The compressive strength can be up to 150mpa compared 30mpa for the potash so it is significantly stronger but we have been working on it for two years now, and the mine has stood as firm as an office.

“We also have a third mineral called carnallite so we have multiple options that take different processes which gives us much more flexibility

Mining

Key Personnel Ronnie Shushan Chairman Phil Baines General Manager and Managing Director Steven Degen Director Rainer Marx Director

Aerial view of the mining operation at Boulby

Howard Clark Sales & Marketing Director

with our business plan.�

The potassium chloride chemical, known as muriate of potash (MoP), is a product that typically contains 60 percent potash and is the most widely used form. This fertiliser aids in the formulation of vegetative matter and root production so international markets are quite comfortable as a result as this.

Polyhalite on the other hand, is a more complex equation as there is no previous market or trading values to go by.

Baines said: “With any emerging new product you have to prove that this new product is just as w w w. c l e v e l a n d p o t a s h . c o . u k

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connecting cleveland potash to service and product SUPPORT As well as supplying Cleveland Potash with world class electrical products and systems, Ampcontrol understands the value of lifecycle support in ensuring optimised performance and safe reliable operations of all underground equipment.

Our highly specialised engineers and service teams are on hand to help our customers extract maximum value from their electrical investments.

We do this through: • Onsite services • Repairs and overhauls • Auditing and testing • Preventative and predictive maintenance • Training packages

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At ESTMA we are customer oriented, flexible, speedy and safe.

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C l e v e l a n d P o ta s h

Mining

effective, safe and is generally okay compared to more established brands.

“So it’s just the same with this polyhalite, we have the potential to mine it and up the tonnage and slowly we have got to develop the market.

“It’s not going to be straightforward and it is a different product as although it is a fertiliser, polyhalite has got different constituents and has different uses so it is going to be steady and a waiting game.

“Over the last seven to 10 years, we have done agronomic trials with the polyhalite and it’s fair to say that every single pot test and trial it has not shown any detriment to any crop.”

Polyhalite contains magnesium and calcium sulphate too and lighter, lumpier soil is where it has optimum effectiveness. It has excellent

Down in the mine

Face cleaned up ready for drilling - Polyhalite

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We have the experience, knowledge, expertise and capability to deliver turnkey cost effective solutions for a multitude of applications.

With over 150 years of experience Qualter Hall is known worldwide for their engineering support to the mining industry, providing consultancy, design, manufacture, installation, commissioning and service support for a multitude of applications including mine shaft systems, mine winders, haulages and underground transportation systems.

www.qualterhall.co.uk | admin@qualterhall.co.uk | +44 (0) 1226 205761.

C l e v e l a n d P o ta s h

Mining

potential as an organic fertiliser, as well as a sulphate, which could work to Cleveland Potash’s benefit as UK and European soil tends to be sulphur deficient.

The firm’s main product is 2-4mm granular potash made from a compaction process, and fertilizers are very much the core product. It can also mine anything between 500,000 and one million tonnes of rock salt, helping to de-ice UK and US roads in winter time.

Company development New technology and equipment such as the flexible conveyor train, which helps to mine a much greater tonnage, enables Cleveland Potash to achieve improved efficiency.

The underground diesel fleet is 150 vehicles strong and there is an onsite diesel vehicle

1   Million tonnes of rock salt can be mined by the company

Underground vehicle

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C l e v e l a n d P o ta s h

Clearing up face ready for drilling

The company has invested in new equipment

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Month 2014

Mining

workshop. Once it goes underground, nothing comes to the surface for services.

In co-ordination with parent company ICL, Cleveland Potash has garnered major international clients such as GrowHow, Yara International and Roullier Groupe and sells to clients as far away as Brazil. It does not ordinarily sell to Asia because its sister mine Iber Potash does this.

When Baines joined the organisation a decade ago it was on the back of the closure of the Selby coalfield and he soon capitilised on the skillset readily available.

He said: “Some were doing schooling on their own and doing degrees in engineering. It was evident to me there were people who had been here 30 years who were really good, practical guys.

“I really set about trying to formalise this. I’m now President of the Midland Institute of Mining Engineers and through this, I promote best practice and strive to develop people.

“Over the last seven to 10 years, we have done agronomic trials with the polyhalite and it’s fair to say that every single pot test and trial it has not shown any detriment to any crop.”

“The (Polyhalite) compressive strength can be up to 150mpa compared 30mpa for the potash so it is significantly stronger…but the mine has stood as firm as an office” – Phil Baines

Operations Inside Boulby mine

– Phil Baines w w w. c l e v e l a n d p o t a s h . c o . u k

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Engineered to Increase Productivity Deep underground, in mines around the world, our machines are hard at work. Joy Global’s proven solutions for performance, reliability and direct service are a few of the reasons why our customers achieve record-setting production and efficiency that reach beyond their expectations.

JoyGlobal.com Joy Global, P&H and Joy are trademarks of Joy Global Inc. or one of its affiliates. Š 2014 Joy Global Inc. or one of its affiliates. All rights reserved.

J & J WARD Ltd.

The Wheels of Industry

Our Head Office and Control Centre is at Patrick Brompton Address: J & J Ward Limited, The Garage, Patrick Brompton, Bedale, North Yorkshire, DL8 1JP Tel: 01677 450000 Fax: 01677 450003 Website: www.jandjward.com

C l e v e l a n d P o ta s h

Mining

“Through the Institute and HM Inspectorate of Mines, we looked at competence and leadership in particular.

In the past five years staff have been sponsored to go to Camborne School of Mines to do Msc in Mining Engineering, and various staff such as geologists, surveyors, mechanical and electrical engineers have been supported to broaden their knowledge by undertaking postgraduate study.

Every workman has the NEBOSH working safely qualification and has a minimum two training days a year, and the avenue to go from workman to supervisor and middle-management

“A massive strategic advantage from a logistics sense is being just 30 kilometres away from the deepwater Tees Port in Middlesbrough” – Phil Baines

Staff have been sponsored to go to Camborne School of Mines to do Msc in Mining Engineering

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all the way up to the upper echelons of Cleveland Potash is quite fluid.

Most people live within a 20 mile radius and many businesses on its vendors list are firms from within Cleveland. It donates funds to local football, rugby and cricket clubs, as well as the RNLI and Air Ambulance charities’ illustrating how ingrained Cleveland Potash is in the local community.

Loading facilities at Tees dock

66 September 2014

Looking forward Every company has its business and operational challenges and for Cleveland Potash it is going to be its cost per tonne, as it is a big mine with extensive facilities and expensive running costs.

Mining

Company Information Industry

Mining headquarters

Cleveland, UK founded

Planning permission granted in 1968 employees

1,200 revenue

World commodity, global prices affects it too of course but Baines has faith in its business plan.

He added: “A massive strategic advantage from a logistics sense is being just 30 kilometres away from the deep-water Port in Middlesbrough, as it can load anything from 1,100 tonne to 65,000 tonne Panamax vessels at Tees dock. It makes us accessible to a wide range of clients.

“Going forward Cleveland Potash will be developing the market for polyhalite, maintaining the level of potash production and looking into carnallite more. Further exploration and maintaining its reserve base is of paramount importance.”

£162 million (2012) products/ s e r v ic e s

Potash fertilizers for agriculture

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SENET Excels in Africa and Beyond with World-Class Projects and Technology Written by: Joel Levy Produced by: Anthony Munatswa

d

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Senet

The South African mining project management and engineering specialist has won plaudits for its quality and custom engineered solutions, including its ability to carry out work in some of the most remote and infrastructurelight locations

Solvent Extraction

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September 2014

M

inerals Processing, Project Management and Engineering specialist SENET has earned an outstanding reputation from the industry for its experience in operating throughout Africa and beyond.

For 25 years, it has provided detailed, multidiscipline engineering, procurement, logistics management and construction services to the mining, mineral processing, infrastructure and materials handling industries worldwide.

The latest example sees SENET commencing engineering work on the Yanfolila processing plant and associated infrastructure in southern Mali, after winning a contract with Hummingbird Resources, which acquired Gold Fields’ interests in April this year.

Hummingbird Chief Executive Officer (CEO), Dan Betts pointed to SENET’s “extensive experience in West Africa, as well as over three years’ experience working on the Yanfolila project (under Gold Fields)” as the deciding factors in his company’s choice.

SENET’s success in this region, and indeed the entire continent, can be attributed to its wide-ranging services and the quality, bespoke solutions it delivers to clients.

In an industry still feeling the impact of the global downturn, it is important to excel, and while SENET remains a smaller proposition to the project-industry giants, General Manager of Commercial, Darren Naylor noted that SENET’s customer-focused approach certainly

Mining

SENET offices

differentiates the company and enhances the quality of the services that it provides. The smaller-scale nature of the operation affords the company a greater intimacy with its clients, and Naylor sees this as one of the company’s key advantages over some of its rivals.

He said: “Larger companies have a tendency w w w. s e n e t . c o . z a

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Low Voltage Switchboards(Pty)Ltd is a large independent South African switchgear-assembly manufacturer, supplying mining and heavy industry, predominantly in Africa, but as far afield as Turkey and Russia.

SPECIALISING IN THE MANUFACTURE & REPAIR OF WOODEN PALLETS, DECKS, BOXES & CRATES. TIMBER AGENTS. ISPM15 REGISTERED

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www.lvsb.co.za

Senet to apply a template approach to their clients’ projects, while SENET can offer a unique service covering the entire project lifecycle, with a tailor-made solutions approach, specific to the particular requirements of the customer.”

Expanded services SENET has had experience in its DNA since its founding in 1989 by a group of engineers and project managers with many years’ practice in Design, Project & Construction Management of Turnkey Materials Handling and Minerals Process Projects.

Having initially focused its offering on materials handling systems and gold processing facilities, SENET has over the years substantially grown its capabilities to include process plant designs including Copper, Cobalt, Uranium, Coal and Iron Ore. A “saturated” domestic mining market led the Greenstone-based company to spread its wings from South Africa into the rest of the continent, and it now has extensive project and construction experience throughout Africa, including in some of the most remote and infrastructure-light countries.

With the Copper sector performing strongly in the DRC, it is a location that is becoming increasingly important for SENET, which continues to expand these operations into neighbouring Tanzania and Zambia.

Some of SENET’s larger African projects

Mining

“Larger companies have a tendency to apply a template approach to their clients’ projects, while SENET can offer a unique service covering the entire project lifecycle, with a tailormade solutions approach, specific to the particular requirements of the customer” – Darren Naylor, General Manager of Commercial

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Senet

Key Personnel

Hugo Swart Managing Director

Darren Naylor General Manager of Commercial

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September 2014

include the Mutanda Copper-Cobalt project in the DRC, from 2009 – 2013, which through four phases of development saw the capacity of the plant expand to 200ktpa of LME Grade A Copper cathode; and the Bisha Gold-CopperZinc project in Eritrea, from 2010 – 2013, which also developed through multiple phases of 2Mtpa CIL Gold and 2.4Mtpa of Copper concentrate.

Further afield SENET has successfully delivered projects in North, South and Central America, Asia and the Middle-East.

African operations It is however the African continent that has provided a majority of SENET’s experience, and its ability to successfully execute projects in remote African locations has been possible as a result of the company leveraging its global experience in cross-border logistics, freighting and construction activities.

The company boasts an array of technical specialists and consultants with specialised knowledge in a broad spectrum of process plant designs and materials handling systems design. SENET’s procurement expertise along with its well-developed supplier network allows for local and international sourcing, which when coupled with optimised engineering designs, has enabled the company to be at the forefront of low Capex projects.

SENET also boasts multidisciplinary erection expertise, with numerous project

Mining

Electrowinning Copper Cathodes

installations having been executed over the years: a function necessitated by the challenges of the African continent.

SENET is also an innovator and is considered to be a leader in Heap Leach technology as well as in Copper Solvent Extraction and Electrowinning process design and installation

Solvent Extraction

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Senet

“I believe that any company needs to grow to stay relevant, because without growth, you will eventually die”

(SX EW). The company developed a range of proprietary equipment for Heap Leach Stacking and Agglomeration Equipment in the early 1990s, which has enjoyed global success and continues to retain its leading position, with technically robust and economically attractive options.

SENET’s SX EW experience leverages patented technology to offer the lowest cost design worldwide, with multiple installations and proven capability.

– Hugo Swart, Managing Director

Long-termism Despite the financial downturn in 2008,

Electrowinning house

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September 2014

Mining

SENET’s workload continued to increase, and has since reflected sustained growth. Staff numbers are fluid depending on the ongoing operations, but the total currently stands at 320, comprising a skilled workforce which the company complements with local contractors to make use of their specific regional knowledge.

Many of the permanent workforce have been with the company since the beginning, and the retention of skilled staff has been fostered by a positive culture and opportunities to progress in the company. “If somebody wishes to progress in the company then the opportunities are certainly there,” said Managing Director, Hugo Swart.

SENET understands that its success is largely attributable to its employees, supplier networks and long-standing clients and will continue its expansion and growth opportunities into new markets by continuing to nurture these relationships.

Sustainable growth SENET’s management remain focused and are optimistic about the long term sustainability of the company. Now in its 25th year, SENET is well positioned to continue its growth path and plans to do so in a controlled and sustainable manner, retaining the differentiators that have won it such respect to-date.

“I believe that any company needs to grow to stay relevant, because without growth, you will eventually die,” Swart concluded.

Company Information Industry

Mining headquarters

Modderfontein, South Africa founded

1989 employees

320 revenue

Undisclosed products/ s e r v ic e s

Engineering / Mineral Processing

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Metorex’s

Multi-Million Dollar Expansion Plan to Increase Copper Production Written by Sheree Hanna Produced by Anthony Munatswa

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M e t o r e x ( P t y ) Lt d

The mining company based in South Africa with assets in Zambia and the Democratic Republic of Congo is buoyed up for growth following take-over by Chinabased Jinchuan

Workers at the Chibuluma Mine which produces approximately 19,000 tons of Copper in the form of concentrate 80

September 2014

J

ohannesburg-based mining company Metorex has launched a multi-million dollar investment programme with an ambitious goal of reaching a target of producing 250,000 tonnes of copper a year in 10 years’ time.

Following its takeover by Chinese mining company Jinchuan in 2012, this established midtier mining group, which is a US$400 plus million revenue business with assets in both Zambia and the Democratic Republic of Congo (DRC), is very much on the expansion path.

The company has immediate projects in hand which are set to take the current annual copper production rate of 55,000 tonnes a year to 80,000 tonnes in the next 18 months and then exceed 100,000 tonnes within five years.

These projects are coupled with a strategic plan aimed at creating greater efficiencies within the company’s supply chain which is centred at its South African headquarters.

Mike Benfield, Chief Financial Officer, said: “Our target is that in 10 years’ time we will be producing 250,000 tonnes of copper a year.

“That is a lofty target that we have set ourselves but we believe we will achieve this through a combination of developing the projects and deposits that we have in our current portfolio and by acquisition with the backing of our Chinese parent company, Jinchuan Group International Resources, which is listed on the Hong Kong Stock Exchange.”

Mining

Workers inspecting samples at the Chibuluma Mine

Existing operations Metorex owns two operating mines; Chibuluma in Zambia, which began production in 1955 and currently produces around 18,000 tonnes of copper in concentrate a year, and Ruashi, a copper and cobalt mine in Katanga province in the DRC. Chibuluma was acquired by Metorex in 1997 through a Government privatisation programme and is often referred to as Zambia’s model mine.

The copper concentrate from the mine is sold to Chambishi Copper Smelter in Zambia where it is converted into copper blister and moved into the market.

Benfield said: “It is a mature mine nearing the end of its life and as a consequence is one of very few mines in Zambia which is tax paying. “We have discovered a smaller satellite deposit

The Chibuluma Mine currently extracts ore from an underground operation feeding an efficient well run concentrator

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M e t o r e x ( P t y ) Lt d

Mining

about a kilometre and a half away from Chibuluma and we are about to open that up so we can effectively extend the life of Chibuluma for another six or seven years.�

Some 400 people are employed at Chibuluma and Metorex is keen to hang onto its operations in Zambia, consequently the company will invest some $24 million on the decline development required to access the recently-discovered ore body. “Extending our operation in Chibuluma will give us more time to continue our exploration efforts in the area. We have an experienced staff compliment, who are performing well and we very much want to keep them within the Group and maintain our operational presence in Zambia.�

Chibuluma Mine

Workers at the Chibuluma Mine

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Chibuluma mine

M e t o r e x ( P t y ) Lt d

Mining

Copper and Cobalt The Ruashi mine employs 2,500 people and currently produces 38,000 tonnes of copper cathode and 4,400 tonnes of cobalt a year.

“There are plans to take the copper production up to between 45,000 and 50,000 tonnes a year as we de-bottle neck the process plant,” explained Benfield.

Over and above the two existing operating mines, Metorex has three major projects in the pipeline including its new Kinsenda mine where it has embarked on an investment of $322 million to develop the mine and build a process plant to bring into operation in late 2015.

The Kinsenda Project currently ranks as one of the world’s highest grade copper deposits with

Ore is conveyored for inspection

Key Personnel

Michael Benfield BCom, BAcc, CA(SA)

Chief Financial Officer Mike joined Metorex on June 1, 2012 having previously been the CFO of Bateman Engineering NV since May 2010.

He was previously the CFO of the Mineral Recovery Division of Bateman, a position he held for over two years.

During this period he became very involved in the operations of the Group’s mineral processing plants. He has held senior financial management positions with Ster-Kinekor, Investec Bank and Super Group.

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BRAS SECURITY is a Private, Limited Company dealing in Security in the DRCongo, Zambia and Tanzania.

The Company is Congolese/ Belgium and started it’s first roots in 2002. The staff is composed with multicultural personnel bringing together Zimbabweans, Congolese, Belgians. The guards are recruited according to the official standards and undergo theoretical and practical training by skilled, experienced trainers.

BRAS SECURITY also specializes in the escorting of minerals to South Africa, Dar es Salaam, Mozambique, NamibiĂŤ, Zambia.

BRAS guards are posted in plants, mining sites, residences and any other properties. Several patrols are carried out 24h a day, 7 days a week by our armed security team. www.brassecurity.com

YOUR SAFETY...OUR BUSINESS

supplier profile

Bras Security

Established: Started in 2002 in Lubumbashi, the BRAS Security Services’s House is a brillant result of a equitable collaboration between a Congolese and Belgian partners. We are currently very present in the copper Capital but also in Kolwezi, Likasi, Lonshi, Sampwe, Kasenga and in Zambian territory throughout its railways and roads Escort Service.

Industry: Security Services: • Create, control and supervise an evacuation plan as well as developing the sit emergency procedures.

• Optimise the management of crisis situation in order to minimise their impact on the company’s capital, its industrial activity and its human resources.

• Guarding of real estate, industrial, mining and private sites.

• Railways and road escorts from DRC to Zambia, Chirundu, Victoria Falls, Livingstone, just to Beithbridge (South Africa).

• DOGS Section.

• Alarm quick response (panic button), CCTV, Access Control, Tracking System, Radio Communication.

Management: Ngoy Kazembe - General Manager Website: www.brassecurity.com

M e t o r e x ( P t y ) Lt d

Mining

declared mineral resources of 20.7 million tonnes at a grade of 5.6 percent copper.

Kinsenda is situated within the DRC near the border town of Kasumbalesa and was purchased

by Metorex in the mid-2000s.

At the time it was taken over, it was a flooded mine, previously run by a Japanese Mining consortium and then by the Congolese government, and Metorex ultimately gained control with the intention of opening and mining it.

With the purchase came 400 employees and the challenge of dewatering the mine before any new development could take place.

“We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body, which is our current focus, but over time we will move into the eastern ore body, the previous operators having mined the central areas” said Benfield.

Employment opportunities Construction work on the project began in April 2013 and it is anticipated copper production will begin in late 2015, with expected production levels in the order of 25,000-26,000 tonnes of copper concentrate a year.

Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda.

The projects’ environmental impact assessment and associated management plans

‘We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body’

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60 years of experience at your service

Your Logistics Partner Comexas Afrique is your key partner in logistics, warehousing, customs clearing and shipping representation in the Dem. Rep. of Congo.

www.comexas.cd

M e t o r e x ( P t y ) Lt d

Mining

were submitted to DRC authorities in 2011 and all approvals required by the DRC Mining Law have been obtained.

Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi.

The project area contains at least two known mineralised zones, one of which known as Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007.

Following the initial discovery of the high grade mineralised zone, the property has been extensively drilled and has declared a mineral resource at 31.7 million tonnes at a grade of 2.8 percent copper and 0.9 percent cobalt.

supplier profile

‘Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda’

Comexas

Comexas Afrique has been active without interruption in Democratic Republic of Congo since 1953 in the area of logistics, customs clearing and air/road/maritim transport for both import and export. Comexas Afrique is also ship agent for several maritim commissioning.

Key words of Comexas Afrique are : « PROFESSIONNALISM - PRECISION - EFFICIENCY - FLEXIBILITY » Website: www.comexas.cd

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YOUR NEEDS ARE OUR PRIORITY Group SIL is a registered petroleum trading company based in Lubumbashi, DRC and is involved in the importation, transportation, storage and distribution of petroleum products to mines, commercial customers and retail sites.

For enquiries please contact: Mutombo Irung Stephane : +243 81 333 51 52 • stephane.irung@groupsil.cd Kyoni Guy : +243 97 001 17 22 • guy.kyoni@groupsil.cd

mining@nucleussc.co.za Tel: +27 (0) 11 783 3290 Fax: +27 (0) 11 783 1310

Crafting and Managing Intelligent Supply Chain Solutions Road– normal / abnormal • Seafreight • Airfreight – schedule / charter • Rail • Freight Forwarding • Project Management • Procurement • Crating • Full management of pre shipment and export documents • Full cross docking operation: • South Africa - Covered 5,800m2 • Zambia – Covered 1,800m2 • DRC - Covered 2,000m2

M e t o r e x ( P t y ) Lt d

mining

Challenges ahead Benfield said: “It is a very high grade copper cobalt deposit. In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that.

“This will be an underground mine, but the challenge for us will be accessing the ore body, which currently is estimated to take about four and a half years to get to.

“We are trying to work out a way of getting to it faster so that it will improve the returns and valuation of the mine, ultimately we should be in production in about five years’ time.”

Finally, Metorex’s Lubembe project, which is located near to the Kinsenda mine, is a much larger deposit, but of lower grade ore.

A scoping study completed in early 2012

supplier profile

‘Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi’

Metorex Nucleus

Main text goes hereMining and can be a block of copy - if there desire to Services: Nucleus Logistics provides high levelsis ofno service indent theseeking copy with headings.supply Main text goes here and can be a block to clients world-class chain management solutions. of copy - if there is nointegrates desire to indent the copy with headings.

Essentially, Nucleus key logistical processes, such as transport, project management procurement, If you needwarehousing, to create a new paragraph then justand hit return and a to reduce overall separating rulelogistics appearscosts.. for segregating the paragraphs.

With an in understanding of customs regulations African The text indepth this box aligns from the bottom up.

Adjust theoftext box height states andbut of the mining industry’s requirements, of course, leave the position of logistical the box sooperational that the bottom of the box Nucleus is well placed to add value and accountability to the mining has a y co-ordinate of 742pt. sector across Africa Website: address goes here as the last entry Email: mining@nucleussc.co.za

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M e t o r e x ( P t y ) Lt d

Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007

“It is a very high grade copper cobalt deposit.

In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that” – Michael Benfield, CFO

94 September 2014

confirmed the potential to mine and process mixed sulphide and oxide ores. The mineral resource of 93 million tonnes at a grade of 1.9 percent copper will eventually be mined by open pit methods.

“We anticipate this project will cost somewhere between $500 million and $600 million and think that we may start it within the next five years,” said Benfield.

The Chinese factor While the history of Metorex’s two operating mines extends back over many decades, the company itself was founded in 1975 by a consortium including Simon Malone which acquired Rand London Mines and subsequently became known as Metorex.

Mining

The financial crisis impacted the business requiring it to divest of all of its South African assets leaving it focused as a base metal miner in Africa.

Its fortunes have turned around somewhat dramatically following its acquisition by the China state owned entity, Jinchuan Group, which is providing the capital and support for its varied investment projects.

Metorex officially ceased trading on the Johannesburg Stock Exchange in January 2012 and in November 2013, Jinchuan successfully incorporated Metorex into Jinchuan Group International Resources Company Ltd, a Jinchuan subsidiary listed on the Hong Kong Stock Exchange. “From that point onwards Metorex became Jinchuan’s African platform to develop further

Ruashi is a copper and cobalt mine in Katanga province, located within the Democratic Republic of Congo

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Wealth Unearthed When you unearth copper, you help move energy that can change the world.

This is the kind of wealth AEL Mining Services is proud to help you unearth. Advancing, constantly evolving and defining the furture of explosives in the mining industry.

Tel: +243 99 5366 257 www.aelminingservices.com

Hass Lubricants, tough and versatile! ‌.Because what goes in matters

M e t o r e x ( P t y ) Lt d

Mining

Workers keep the generators going 24/7

assets and acquire assets through the Metorex brand that are primarily focused on base metals,” said Benfield.

“Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities. So now it has become the spring board to raise the capital and create the platform for Metorex to grow in Africa.”

In China, Jinchuan owns and operates a massive nickel deposit, which has still got a mining life of 50 years’ plus around which a whole integrated city has established itself.

Jinchuan also holds a 51 percent stake in a South African platinum mine in the north west province and a few other assets outside of Africa.

“Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities” – Michael Benfield

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SONOREX Providing 40 years of procurement & logistic services to the mining industry in Africa

Contact details: P.O. Box 6793, Roggebaai, 8012, South Africa Tel (+2721) 421 1738 / 425 1020 • Email - info@tradimex.co.za

Turn-key Laboratory Solutions Design • Project management • Installation • Commissioning • Training & facility management • Containerized or built infrastructure • Sampling & Laboratory audits • Proficiency Testing Schemes

www.tramecon.com admin@tramencon.com

M e t o r e x ( P t y ) Lt d

Mining

Technical support Since the acquisition, apart from financing of projects, Jinchuan has extended its technical support and advice to Metorex. “I think by and large Jinchuan has left Metorex to manage the African environment, and although we have a few Jinchuan secondees here that are helping to build a bridge between the two companies and cultures we are operating fairly autonomously.� said Benfield.

In order to maximise efficiency and productivity, Metorex is tackling two major hurdles that come with operating in central Africa, a skills shortage and long, logistical supply chain. “The skills shortage in Africa is immense with mines in Africa, depending on the scale of their operation, employing people with the skills from

supplier profile

Women serving food at the Ruashi Mine

Tramecon Metorex

Main text goes here and can be a block of copy - if there is no desire to Tramecon provides Turn-key Laboratory Solutions, including design, indent the copy with headings. Main text goes here and can be a block project management, installation, commissioning, staff training & of copy - if there is no desire to indent the copy with headings. facility management. The facilities can be either containerized or built If you need to create a new paragraph thenexpansions just hit return a infrastructure.

We also assist with facility andand upgrades, separating rule appears for segregating the paragraphs. including change management and technical training. Quality related services include: Sampling andthe Laboratory audits, based on ISO The text in this box aligns from bottom up.

Adjust the text box17025 height and relevant standards.

Method validations of course, butcommodity-linked leave the positionISO of the box so that the bottom of theand box SO implementation. has17025 a y co-ordinate of 742pt.

Website: www.tramecon.com, address goes here aswww.qotho.co.za the last entry

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Energising the Future!

Amalgamated Power Solutions is a leading electrical and mechanical engineering company specialising in providing comprehensive p ower generation solutions to industries in both South Africa and Southern Africa. www.amalgamatedpowersolutions.com

Robinson International Limited Group is a worldwide company established in London, United Kingdom in 1982.

The group supplies Cargo Inspection, Marine Surveying, Analysis/Testing and related services to a broad range of clients in 100+ countries.

OUR SERVICES: • • • •

• •

INSPECTION SAMPLING LABORATORY ANALYSIS CAPABILITIES: We analyse - Minerals (Metals and Ores) - Water (drinking water, waste water, ground water) - Used oil / Fuel - Soil LOADING SUPERVISION ISSUING OF EXPORT AND ORIENTATION CERTIFICATES

drc-enquiries@robinsoninternational.com

M e t o r e x ( P t y ) Lt d

Mining

many other countries,” said Benfield.

“For example we have a small contingent of South Africans, Australians and British citizens working at our mines, although it does vary from mine to mine, but the majority of the work force are local employees.”

Benfield explained that part of Metorex’s strategy was to ensure continuity with its ex-pats, so as not to lose their expertise, through helping them develop their careers at the company’s various locations.

Centralising efforts In a bid to counteract skills and supply chain issues, the company has established a central services operation called Metorex Commercial Services (MCS) at its headquarters in

“The skills shortage in Africa is immense with miners in Africa, depending on the scale of their operation, employing people with the skills from many other countries” – Michael Benfield

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M e t o r e x ( P t y ) Lt d

Operations at the Kinsenda mine

“Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right” – Michael Benfield

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September 2014

Johannesburg.

MCS has begun by bolstering technical skills at an administrative level including its accounts payable function which is controlled and supported from the head office.

It has also sought to centralise its procurement activities leveraging more scale by being the procurement service provider for all of its operations, thus aiming to secure better price points from suppliers and ultimately getting costs per unit down.

“Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right,” explained Benfield.

“We have a well thought-out supply chain management strategy which we are aiming to develop, managed from Johannesburg and then integrated into our various operations.”

Mining

Key Personnel

Staff pumping water from the mines

John Ferreira

BEng (Metallurgy), MBL

Supplies are predominately sourced in South Africa but chemical reagents to extract ore through the copper process come from other parts of the world.

The challenge of connectivity is one that the company is also endeavouring to constantly improve in order to allow good communication across its operations.

“In Africa there are issues with internet and telecommunication connectivity which can be a challenge for us,” said Benfield. “We are looking at standardising our communications from our headquarters in Johannesburg through to our sites in Central Africa.

“We are also looking at Chinese procurement.

The Chinese have an amazing track record for doing things quicker for less and we believe that their quality is constantly improving ensuring that supplies are fit for purpose, reliable and cost effective.”

Chief Executive Officer Previously Executive Chairman of Bateman Engineering NV, John joined Metorex in 2012.

His experience spans from Africa to Europe and the Far East. John spent six years at BHP Billiton Group as the General Manager of two of their chrome operations before moving to the corporate office where he spent six years as the Vice President responsible for Samancor Chrome operations in South Africa.

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M e t o r e x ( P t y ) Lt d

“Looking after its employees and the communities in which it operates is always regarded highly by the company which has developed a strong set of values it adheres to�

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Mining

Forging partnerships However, Metorex has high standards for its suppliers and only seeks to enter partnerships with those companies that are reliable and provide reliable components and services.

With regard to the construction works being carried out at the Kinsenda project, Metorex has partnered with South African based project management and engineering group, DRA, a diversified construction and infrastructure company Group Five, civil contracting firm Safricas, which is based in DRC, the MCK mining company based in the Katanga Province and component supplier, Outotec.

Looking after its employees and the communities in which it operates are always regarded highly by the company which has developed a strong set of values it adheres to.

“We have an acronym – PALETZ which is our mantra,” said Benfield. “P is for people focus, A is for accountability, L is for the long term perspective, E is for excellence in everything we do, T is for teamwork and Z is for zero harm.

“We have a vision and that is to grow a sustainable African-focused base metal mining company that offers opportunity for the development of our employees and communities, delivering to shareholders’ expectations and contributing to the development of our world,” concluded Benfield, quoting from the Metorex mission statement.

Company Information Industry

Mining headquarters

Gauteng, South Africa founded

1975 employees

2,400 revenue

US$ 400 million products/ s e r v ic e s

Copper and cobalt

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Kirloskar Oil Engines Limited set

for major global expansion

India’s leading diesel engine and genset manufacturer is enriching lives at home and in Africa across fields from agriculture and construction to power generation and mining Written by: Tom Wadlow Produced by: Anthony Munatswa

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K i r l o s k a r Oi l E n g i n e s Li m i t e d

‘From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines’

Engine testing and assembly line 108

September 2014

I

ndia’s Kirloskar Oil Engines Ltd is on a drive to become a truly multinational business and ‘touch the world’ by powering vital industries with reliable engines and a second-to-none after sales service.

From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines for service industries, infrastructure projects and defence establishment among many other important sectors, and is the flagship company amongst the 33 major group companies.

It is leaving a positive legacy abroad in places such as Africa where agriculture and mining are being fuelled by its industry-renowned diesel engines.

This accompanies that which has already been achieved at home, where Kirloskar Oil Engines has greatly enhanced the farming sector since 1946 and holds a 34 percent share in the market for power generators through its brand “Kirloskar Green Gensets”.

Facilitating this vital society-building output is a core focus area, with emphasis also laid on enhancing the cutting edge research and development (R&D) facility.

Healthy relations with workers and strong adherence to corporate social responsibility and providing education to India’s population in environmental and sanitation issues are also key areas where the organisation continuously pays

mining

Engine testing and assembly line

key attention.

In being a peoples’ business, Kirloskar Oil Engines Limited is far more than just a provider of reliable diesel engines.

Key Personnel

World-class factories Generating the company’s revenue are four sites across India producing engines of three to 11,000 horsepower, the oldest of which is in Pune alongside its headquarters.

In 2006 it invested US $175 million into a factory in Kagal, 300 kilometers from head office. Vice President of Exports Sunil Walunjkar said: “Here we have a 200-acre area and a world class single plant of 40,000 square metres with a capacity of 60,000 engines annually of 20 – 750 HP.

Sunil Walunjkar, Vice President, Exports

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Leading the way in Electric Power Generation LEROY-SOMER, the worldleading specialist in industrial alternators and drive systems, designs and manufactures highly innovative eco-technological solutions to serve the industrial and large-scale commercial sector markets. www.leroy-somer.com

America - Europe - India - China/Asia

When it comes to cu�ng‐edge dynamic fuel technologies, Stanadyne sets the global standard of excellence. Across the power genera�on, construc�on, agricultural, automo�ve, and other industries, Stanadyne fuel injec�on equipment make engines cleaner, more efficient, and more powerful.

At the forefront of tomorrow’s technology for over 135 years the �mes and technologies have changed. However, one thing remains constant — the passion and commitment of Stanadyne’s people and their focus on helping the world’s greatest engine companies become even greater.

To learn more, visit us at www.stanadyne.com.

Fueling InnovaƟon

K i r l o s k a r Oi l E n g i n e s Li m i t e d

mining

“We have another location in Rajkot on the western part of India where we manufacture our smaller three to 20 horsepower engines for irrigation and agro-industrial applications.”

The final base is the large engine facility at Nashik, capable of manufacturing diesel engines in range of 2,400 – 7,200 HP for Marine and Power Generation applications.

KOEL high-selling

Enriching lives in Africa As in India, agriculture dominates the economy of many African countries with maize being the most important food staple on the continent.

Kirloskar Oil Engines Limited provides engines to power hammer mills continent-wide to 25 nations including Algeria, Nigeria, Tanzania, Uganda, Rwanda, Zimbabwe, Zambia and Angola. These mills crush the crop into a useable powder, helping to feed millions of people.

In Senegal, more than 2,300 Kirloskar diesel engine-driven pumps and over 20 drip irrigation systems across the Senegal river have increased the annual rice production from less than 100,000 tonnes to 460,000 tonnes by increasing the irrigated land from 24,500 hectares to 85,000 hectares.

Another key industry supported in Africa is underground platinum and gold mining. “South Africa is one of our major markets and we work with various mining houses like Aquarius Platinum, Anglo Platinum, Impala Platinum, Glencore, Lonmin Platinum, Goldfields and

and desirable Varsha pumpset

4R 1040 TBS III Engine used for diverse industrial applications

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K i r l o s k a r Oi l E n g i n e s Li m i t e d

Engineers’ training session

“If the customer is satisfied in aftersales service then they will buy again and again” – Sunil Walunjkar, Vice President, Exports

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Harmony Gold,” Walunjkar said.

The company produces a range of engines for equipment spanning LHD (Load-Haul-Dumper) vehicles, Drill Rigs, roof bolters, dump trucks and Low- Profile utility vehicles and Personnel Carriers to transport workers.

Walunjkar highlighted two reasons for continual success in Africa. “The first reason why we are successful here is because the mines work 15-16 hours a day and the production equipment has to

mining

run continuously, the engines must be reliable,” he said.

“The second is after-sales service. We fix problems in the shortest possible time, minimising loss of productivity. As a company we do not believe in selling just a product. If the customer is satisfied in after-sales service then they will buy again and again.”

Kirloskar Oil Engines Ltd. is also powering mining in Botswana, Zimbabwe and Zambia with

SL90 FMUL Certified fire fighting engine

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Above: Kirloskar Oil Engines supplies “Industrial Engines” which is widely used to

a view to opening up possibilities in the Ivory Coast, Tanzania and Ghana where the focus is more on open-pit as well as underground operations.

power the application of the “Drill Rig”

“There should be no fear of failure.

You can think exponentially, freely and try out various ideas, so long as integrity is in place” – Sunil Walunjkar 114

September 2014

Enriching lives at home Back in India the company’s engines have been upholding the country’s most important economic sector, farming.

It has spearheaded the world’s largest irrigation scheme and brought the Green Revolution to more than 4,600 towns and villages in droughtprone Saurashtra in Gujarat on the west coast.

Walunjkar added: “When we say enriching lives what we mean is that our products and services will benefit the lives of those using it. Take today’s farmers, his grandfather was also using Kirloskar

All engines are designed in-house and undergo rigorous testing procedures

pump sets.

“We run through the generations and our products last for 50 years without any problems.

Our pump sets will help you to get a more fruitful crop which will benefit peoples’ lives.”

Agriculture aside the company’s diesel engines power over 80 different applications across a spectrum of industries and Kirloskar Green’s Gensets form the backbone of satellite, cellular and telecommunications operations. In addition Kirloskar Green Gensets widely caters to specific power requirements across sectors like hospitals, hospitality, IT, infrastructure, banking and many more.

Engine design prototypes are tested across a range of

Industry-leading research A key part of Kirloskar Oil Engines Ltd. reaching

facets

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K i r l o s k a r Oi l E n g i n e s Li m i t e d

The company supplies engines for firefighting applications

“Different counties have different emission norms and we test that our engines fit the requirements of their destinations” – Sunil Walunjkar

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September 2014

its global ambition is its industry-leading R&D department, made up of 200 highly skilled and efficient engineers in Pune and recipient of US $10 million of investment over the past two years.

All engines are designed in-house and undergo rigorous tests across a range of facets. One important area is noise solation, where the company has been successful in making its engines meet the Indian legal noise requirements of under 75 decibels within one metre of the machine.

It also has had a state of the art in-house Emissions lab since 2001 that helps in designing and maintaining the products to the regulatory requirements of exhaust emissions. “Different counties have different emission norms and we test that our engines fit the requirements of their destinations,” Walunjkar added.

mining

State of the art testing facility

“In Europe and North America the rules are more stringent than India and we are currently not selling big there but are designing products to meet those norms – soon we will get into these markets.�

The company is however supplying engines for firefighting applications into France, and is the only Asian company to have industry-recognised FM and UL certified diesel engines.

Load Haul Dumper, extensively used in underground mining segment, is one of the most demanding

Limca Book of Records A dedicated and happy workforce is behind the development, construction and after-sales service of Kirloskar Oil Engines Ltd, whose industrial relations is of record-breaking caliber.

Core values of integrity, creating wealth for all and worker empowerment filter through the ranks of the organisation.

applications that KOEL engines are successful in

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K i r l o s k a r Oi l E n g i n e s Li m i t e d

Kirloskar Oil Engines Limited facilities

“India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues” – Sunil Walunjkar

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September 2014

The company has featured in India’s Limca Book of Records for being the only business to sign on time wage agreements before the standard three year cycle is up on seven consecutive occasions. The company’s 3,000plus employees are also given personalised evaluation and training programmes based on required skills.

This feeds an exemplary health and safety record, with a raft of industry certificates including Indian Army certification, for which it is a key provider of diesel engines, which are used for various applications.

The company also looks after people across the country, as well as the environment through its extensive Corporate Social Responsibility programmes.

mining

Company Information Industry

Diesel Engines (For-Agri Pumpsets, Industrial Engines and Generating Sets) headquarters

Pune, India founded

One such initiative is Vasundhara, which for the past eight years has involved 20,000 volunteers from the workforce and Indian public and 250 NGOs working on various environmental issues. Another is WaSH, a sanitation education programme whereby employees go into schools and provide vital tuition in the importance of hygiene.

Walunjkar added: “India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues.” With a driven employee base and industry-leading products, Kirloskar Oil Engines Ltd. can truly look to ‘touch the world’ by 2025. “There should be no fear of failure. You can think exponentially, freely and try out various ideas, so long as integrity is in place,” Walunjkar concluded.

KOEL Founded in 1946 (Kirloskar Group 1888) employees

3,000+ revenue

US $400 million products/ s e r v ic e s

Diesel Engines, Agri Pumpsets and Generators

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Mining Chamber of Ecuador: History and Expo Written by: CME Produced by: Gerardo Sosa

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MINING CHAMBER OF ECUADOR

Mining projects

T

Javier Cruz Plata, CME President and Maria Dolores Iturralde, Executive Director

he Mining Chamber of Ecuador was founded in 1979, in Quito, Ecuador. It was established as an entity that promotes and encourages the development of the mining activity in the country as a priority industry, as well as any activity related to the exploration and exploitation of non renewable natural resources and any work related to the mining industry. It also represents the interests of its members, assuring the effective exercise of their rights.

Currently the Mining Chamber of Ecuador has over 100 partners including companies and natural persons, all involved in mineral

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L AT I N A M E R I C A

prospection, exploration, processing mineral plants, smelting, refining and marketing of minerals obtained in Ecuador. Our Partners represent technical and legal assistance or consulting mining companies developing work in the field of metallic and non-metallic resources associated to our Chamber.

“Major national and international mining companies that are developing work in the field of metallic and non-metallic resources are associated to our Chamber�

Company Information NAME

Mining Chamber of Ecuador INDUSTRY

Mining HEADQUARTERS

Ecuador FOUNDED

1979 KEY PEOPLE

Javier Cruz (president), Lorena Alvarez Castellanos (General Coordinator) NUMBER OF MEMBERS

100+ ADDRESS

Av. 12 de Octubre N26-97 y Abraham Lincoln Edificio Torre 1492, Piso 12, Oficina 1203, Quito, Ecuador EMAIL

info@cme.org.ec WEB

www.cme.org.ec

Award of the National Assembly of Ecuador to the Mining Chamber of Ecuador, for its 35 years of institutional life. Mr. Patricio Donoso presented the award to Mr. Javier Cruz Plata, President of the Chamber. w w w. c m e . o r g . e c

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ArcelorMittal Mining Can

World Class Performance

Steve Wood of ArcelorMittal Mining Canada G.P. discusse expansion project at its Mont-Wright mine, including major improvements and future plans to be best in class Written by: Robert Spence

Produced by: Aaron Wells

nada G.P.

es the company’s successful r investments, continuous

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A R C E L O R M I T TA L M I N E S C A N A D A

MW Mine avec sautage 126

September 2014

CANADA

Expansion projects in the mining industry are no easy task.

Successfully implementing new objectives into operations requires the successful planning, integration and execution. Under the helm of Steve Wood, ArcelorMittal Mining Canada G.P. is currently perfecting the skill.

Founded in 1957, ArcelorMittal Mining Canada G.P. is the largest mining division of the multinational corporation, ArcelorMittal. The company has become the leading supplier of iron ore and steel in Canada, producing approximately 60 percent of the country’s total production.

Expansion of the future ArcelorMittal Mining Canada G.P. currently operates two large open-

pit mines: Mont-Wright Complex and Fire Lake.

The Mont-Wright mining complex is a highly systematic operation comprised of an open-pit mine, an ore crusher and concentrator facility along with a train loading system.

The mine is linked by a companyowned rail to the Port-Cartier industrial complex. Located roughly 55 kilometers from Mont-Wright is the Fire Lake mine. Because of the high demand for iron ore, the mine has become an additional deposit for the ArcelorMittal to operate at.

In 2011, the company undertook one of the largest expansion projects in Quebec. The project, which was completed last year, entailed expanding infrastructure at the Mont-Wright mine to increase w w w. a r c e l o r m i t t a l . c o m

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SUPPLIER PROFILE

The Castech – Plessitech Group is a dynamic young, but experienced, team, offering turn-key products related to foundry, machining and welding assembly. Castech – Plessitech is present in many industrial sectors such as: mining, aluminum, pulp and paper, hydro and wind energy and industrial.

The Group is unique because of its complete value added manufacturing services: design and drawing, ferrous castings up to 40,000 lb in mild steels, alloy steels, stainless steels, manganese steels, ductile and grey irons and specialty and abrasion resistant alloys; machining of parts, fabrications or castings from small to large, assemblies, screw conveyors reparation or new manufacturing; finishing and painting; installation on site; and all this with excellent after sales services.

Website: www.castechinc.com

A R C E L O R M I T TA L M I N E S C A N A D A production from 16 to 24 million tons of iron ore by end of 2013.

“We hit the run rate of 24 million late last year in November and things look good to make 24 million again this year,” says Steve Wood, president of ArcelorMittal Mining Canada G.P. He continues, “It’s pretty phenomenal to get those rates right after an expansion project. It’s an exciting time in terms of expansion and maximizing benefit of our investment.”

Part of the latest expansion involved the commissioning of new spiral lines and a concentrating plant with additional upgrades to the railway and port in Port-Cartier.

Wood believes with a few minor improvements ArcelorMittal can reach an even higher production rate. “We can see a day where with a few minor tweaks we can go above name plate capacity,” says Wood.

Overall, the expansion project

CANADA

included: • Commission of new spirals line at concentrator • New trucks and maintenance shop operational • Additional rail sidings completed • New concentrator completed • New stacker-reclaimer and shiploader in commissioning • Concentrate production exceeded 2Mt in December 2013 • Shipments of 1.987 Mt in December 2013 • Costs benefiting from scale The province of Quebec is benefiting from the expansion as well. Income taxes and mining rights revenues will account for over $3 billion, which will assist the government through 2039. Quebec will also profit from increased export capacity of goods overseas, consolidation of the mining sector in general and community development.

“Our job here is to get world class levels of performance in every aspect of the business in terms of productivity, maintenance, and reliability of equipment” – Steve Wood, President of ArcelorMittal Mines Canada w w w. a r c e l o r m i t t a l . c o m

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1 866 444-9944 | hewitt.ca

MAC 18-14A

WHEREVER THERE’S MINING, WE’RE THERE

THE BROADEST PRODUCT LINE IN THE MINING INDUSTRY

MAC 18-14D

Wherever there’s mining in Quebec and in Western Labrador, you’ll find Cat products hard at work – drilling and digging, loading and hauling, grading and dozing. You will also find a Hewitt Equipment Limited branch, providing unmatched support, expert service and integrated solutions. Superior products. World class service.

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SUPPLIER THE BROADESTPROFILE PRODUCT LINE IN THE MINING INDUSTRY

HEWITT EQUIPMENT LIMITED

19-08-2014 13:41

Founded in 1952, Hewitt Equipment Limited is the authorized Caterpillar Dealer for Quebec, Western Labrador and the Maritime Provinces in Canada. Hewitt has the expertise to deliver the world’s largest mobile mining equipment and act as a partner to help customers achieve success in their projects. Hewitt also provides the following services: • Assessment and continuous improvement: Hewitt’s mining experts perform a wide range of evaluations on site, while assessing processes and operational performance, enhancing productivity measures and identifying gaps and areas of improvement.

• Best practices implementation: Hewitt and Caterpillar have developed throughout several decades of field experience an outstanding portfolio of best practices, in areas such as Maintenance & Repair, Application Component Life and Service Contract Management.

• One stop shop: Hewitt achieves important synergies, leveraged by the supply of the largest variety of mining equipment and parts, volume discounts, processes optimization, and the access to a large pool of expertise and technical resources.

Hewitt, Service par Excellence +1 514-6303100 Visit our Website: www.hewitt.ca

A R C E L O R M I T TA L M I N E S C A N A D A Job creation in Canada is another benefit of the expansion. Over 8,000 jobs were created during the construction of the project and another 600 permanent jobs have been implemented since the completion of the expansion.

Investments To get the project rolling ArcelorMittal has invested significantly to the tune of $1.6 billion, including an array of new equipment and technology to expand the production rate and increase efficiency.

“We purchased new equipment; hired additional people; increased our processing capacity; added another large line, increased our capacity for concentrate by 50 percent, and put in a new processing mill and more spirals,”

CANADA

Wood continues, “We also purchased 13 Caterpillar 797 400 ton trucks to assist in moving larger volumes in less time.”

The 400 ton trucks are equipped with an 18-step staircase to reach the driver’s cabin with each truck being utilized to transport crude iron ore to a breaker where it will undergo its first transformation.

According to Wood, part of the expansion also included investing in its rail line to streamline production.

The company railway transports iron ore concentrate from Mont-Wright to Port-Cartier and is renowned throughout the North American rail industry for its reliability and innovation.

“We also wanted to amplify the capacity of our rail line so we purchased more locomotives and cars, extended some siding that

“It’s pretty phenomenal to get those rates right after an expansion project. It’s an exciting time in terms of expansion and maximizing benefit of our investment” – Steve Wood, President of ArcelorMittal Mines Canada w w w. a r c e l o r m i t t a l . c o m

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A R C E L O R M I T TA L M I N E S C A N A D A allows us to haul more to port, expanded our capacity to load ships by putting in a new ship loader and stacker as well as a modified conveyor.

The future is all about cycle times and reliability,” says Wood. “We want to replicate what we’ve done in the past. We have some of the smartest people in the industry.”

Along with acquiring the best equipment possible, technological investments were also made.

“We’ve installed the best available technology in terms of planning, dispatching of equipment at mines and monitoring progress on a daily, hourly and real-time,” says Wood. “We’re in the process of perfecting it. We know where we can be and we’re working towards it.”

CANADA

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PORLIER EXPRESS

Established on Québec’s North Shore since 1953, Porlier Express offer different services such as: terminal operations, stevedoring, railcar transloading and heavy equipment services. From our installations located at Mont-Wright, Labrador and various ports (Sept-Îles, Port-Cartier and HavreSaint-Pierre), our local and specialized teams offer you direct or intermodal integrated solutions adapted to the specific needs of the region and the industries (mining, smelter, petroleum and chemical).

With Porlier Express, you can be assured of peace of mind ! www.porlier.com (418) 962-3073

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We are a dynamic company specializing in industrial and commercial electricity Kilotech Control Inc. is the prime contractor or subcontractor in collaboration with various partners trust. As electrical contractors for over 30 years, we are able to achieve a complete product into electricity through our multidisciplinary team, while ensuring the complete satisfaction of our customers.

Our reputation is that of a company that meets the initial conditions and timing of contracts awarded. Business confidence, Kilotech Control Inc. strives to continuously improve its standards and remain leaders from different donors item.

We are able to perform electrical work, instrumentation and control, work line, high voltage and fiber optic, our company offers a full range of services that adapt to specific customer needs, regardless of the size of the project.

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A R C E L O R M I T TA L M I N E S C A N A D A According to Wood, ArcelorMittal is continuously looking to improve in all phases of operations.

“Our job here is to get world class levels of performance in every aspect of the business in terms of productivity, maintenance, and reliability of equipment.”

With the expansion completed, daily records show potential in system for further growth in: • First sustain 24Mt and chase the “shifting bottleneck” to maximize system potential • Incremental investments for debottlenecking as required: • Mt Wright mine optimization, Fire Lake expansion (richer ore) and crusher debottlenecking • Rail winter reclaim capability, long train capability, additional sidings

SUPPLIER PROFILE

CANADA

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KILOTECH

We develop, import and distribute a full assortment of scales to service all types of scale dealers, under the Kilotech brand name. Furthermore, we also carry other quality brands such as Tanita. We focus solely on weighing and measurement products, allowing us to concentrate on a more personal level in servicing our dealers’ needs. Our front line team is ready and able to answer any questions you may have regarding weighing and measurement products. After all, they’ve combined over 50 man years of sales experience and 40 man years of technical support experience between them. We have an established network of distributors across Canada and the U.S. Website: www.kilotech.com

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PROVIDING SOLUTIONS, CREATING VALUES Applied Industrial Technologies provides solutions and creates value for customers. We supports the manufacturing and maintenance operations in every industry segment. We offer technical expertise, repair services, and a complete offering of Bearing,

Material Handling, Mechanical Power Transmission products, Fluid Power products, and Specialty products.

For more information contact us at 1-418-296-5575 or visit our website at www.appliedcanada.com

SOLUTIONS ONLY LEADER IN THE DISTRIBUTION OF INDUSTRIAL

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A R C E L O R M I T TA L M I N E S C A N A D A • Additional conveyor capacity at port • Significant cost benefits from scale • Potential to expand beyond 30Mt at low capital intensity The company believes over time, with various improvements, the expansion has the potential of producing 100 million tons a year.

Wood comments, “We believe there’s an opportunity to do even better. By applying some world class management techniques, training and improving productivity, we think we can hit a higher rate of potentially 27-28 million tons and

CANADA

eventually more”.

He adds, “Going forward, we’re continuing to work out the bugs so we’re more reliable and consistent in our production.”

ArcelorMittal Mining Canada G.P. is continuously striving for excellence and accomplishes this by employing initiatives to not only reach their goals, but exceed them.

With the help of employees and extensive training, the company is leading a number of teams in processes for operational excellence. According to Wood, “it helps engage employees. They’re the ones with the ideas and know

Port Chargeur de navire et homme w w w. a r c e l o r m i t t a l . c o m

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Rock-solid litigation expertise At De Grandpré Chait, we advise our clients at every stage of the litigation process before all levels of court in Canada. Whether a case goes to trial or is resolved through arbitration, mediation or negotiation, our experienced lawyers are committed to helping clients achieve the solution that best resolves the dispute at hand.

Our expertise extends to a vast array of contentious issues, such as: • Construction claims and litigation • Commercial disputes • Insolvency and financial restructuring • Debt collection • Insurance and liability

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Miller Thomson’s Construction and Infrastructure Group Understanding the mining industry’s construction needs

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Our Construction and Infrastructure Group is a leading provider of legal services for construction and infrastructure projects across Canada. We understand the wide range of issues facing the sector and how they specifically impact mining companies.

And with more than 80 lawyers in key cities across Canada, we can provide tailored solutions to your industry’s unique business needs.

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A R C E L O R M I T TA L M I N E S C A N A D A how things need to run. We want to take their suggestions and implement them. We’re going to do some retraining, reorganization of work and work methods so our productivity is best in class and everything is running consistently.”

Though the company can’t control certain things, such as ore grade, it still provides superior service in everything it can control.

“We’re benchmarking ourselves in terms of equipment availability,

CANADA

utilization, productivity workforce and best practices,” says Wood.

“We can’t change the ore body but we plan on being world class in everything we can control.”

The company works toward ambitious goals, including their zero-thirty-thirty goal. Wood explains that this goal, “entails zero harm, 30 million tons a year and 30 dollars a ton. It’s an aspiration we work every day on. That’s what our operational excellence teams are

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From pit to port Helping our clients realize maximum value from their investments

Our extensive experience in the iron ore industry includes: mining, crushing, beneficiation (gravity and magnetic), flotation, fines agglomeration, pelletizing, and sintering; rail, port, materials handling and feed and product blending; process and logistics dynamic simulation; market studies, and process optimization.

To learn more visit hatch.ca.

CONSULTING  PROJECT DELIVERY  TECHNOLOGIES  OPERATIONAL PERFORMANCE

A R C E L O R M I T TA L M I N E S C A N A D A doing – identifying the potential and engaging teams to achieve it. We don’t think we’ve reached our potential yet.”

Transforming tomorrow As a leading supplier of iron ore, ArcelorMittal is also committed to setting global standards for future generations.

The company strives to provide the leadership, quality and sustainability that will transform tomorrow’s steel and mining industries for the better. ArcelorMittal’s focus on sustainability reaches far beyond just Canada and the company is firmly committed to minimizing its environmental repercussions.

The company has developed a sustainable development policy aimed at maintaining its international leadership position and being a strong advocate of Towards Sustainable Mining (TSM), a Mining Association of Canada (MAC) initiative.

In doing so, the company works to implement corporate Environmental Management System in line with ISO 14001; actively communicate and cooperate with governments, the public and communities of interest; and reduce greenhouse gas emissions. The company’s commitment to sustainable development derives from five fundamental principles: health and safety, profitability, improvement, commitment, and respect.

It’s as simple as that.

CANADA

Company Information INDUSTRY

Mining

ArcelorMittal is the world’s leading steel and mining company.

Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel products in all major markets including automotive, construction, household appliances and packaging. ArcelorMittal is present in more than 60 countries and has an industrial footprint in over 20 countries.

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Kirkland Lake Gold Kirkland Lake Gold Maintains Standards

Kirkland Lake’s mission statement is to produce gold in a s sustainable and profitable manner Written by: Andrew Rossillo

Produced by: Bobby Meehan

ns High Grade

safe,

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C O M PA N Y N A M E

K

irkland Lake Gold operates in Northern Ontario, Canada, one of the safest mining jurisdictions in the world. The Company mines one of the highest-grade ore bodies in the world at 0.44 opt (14 g/t) with massive exploration and growth potential in the immediate area.

Kirkland Lake’s mission statement is to produce gold in a safe, sustainable and profitable 148

September 2014

manner such that the Company generates a return on investment for its shareholders while providing benefits to all stakeholders with the goal of improving the lives of their employees and the residents within the communities that they operate. The Company remains true to this mission statement by considering safety, sustainability and profitability in every decision they make within the business each and every day.

SECTOR

Kirkland Lake operates with the core values of safety, trust, respect, equity, environmental, teamwork and social responsibility. “We want our employees to go home in the same condition as they came to work. Subsequently, safety is at the forefront of every decision we make while all meetings start with a safety talk. In the workplace we believe in trust through honesty, commitment and open dialogue and communication,” says Kirkland

Lake’s CEO George Ogilvie.

“We respect everyone’s contribution no matter how small and regularly reward and acknowledge our employees when we see good results and the right behavior. More often than not it requires a team effort to get the best results. We also treat our people with dignity. All of these values are part of how I conduct myself as the CEO so that they can cascade down into the business. Environmental w w w. k l g o l d . c o m

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Kanuck Rock Drill Services Manufactures and repairs mining products which include rock drills, component rebuilding, custom machining, mechanical drawings, manufacturing drill parts, air motors, jackleg and stoper airlegs. Owned and operated by Lawrence Beaucage. Mr. Beaucage has been employed in this industry for over 35 years. Kanuck Rock Drill Services serves the Sudbury Region, and Northern Ontario Areas.

For more information please visit our website at www.kanuckrockdrillservice.ca

WE SERVICE NORTHERN AREA OF ONTARIO, CANADA

Your Northern Ontario Provider.

North Star Linen can supply your operations with a wide range of coveralls and uniforms to suit your work environment. From high visibility coveralls, Arc Flash coveralls, to regular coveralls and uniforms, we have a great selection available for you.

North Star Linen offers the Locker System to facilitate the distribution, control inventory and losses. Our weekly program also includes bins or carts to manage the soiled inventory.

Phone: 705.335.2208 I Toll Free: 1.800.461.5756 I Fax: 705.335.6875 E-mail: uniforms@northstarlinen.com I www.northstarlinen.com

KIRKLAND LAKE GOLD stewardship and sustainability is also a very important core value for us; which is highlighted in our main energy conservation program. We take our social responsibility very seriously and subsequently invest in the community and groups when the right opportunities present themselves.”

A concrete example of how these values are applied to their employees includes the Company’s improved management: “I think the management here is enjoying the new management style. I encourage collaboration amongst managers and staff, support and consider new ideas or suggestions on how we can improve. Now it’s much more of a partnership and collaborative process where we determine the targets and hold ourselves accountable and responsible for our results towards our targets. And we’re constantly monitoring, giving positive recognition and feedback when we’re doing well, as well as addressing weaknesses through discussion and action planning.”

Continuous Improvement Among the many factors that

MINING

help keep Kirkland Lake among the leaders in the mining industry is their dedication to continuous improvement. This includes raising cut-off grades and stopping the practice of mining incremental tonnage, which is mineralization not in any reserve and resource category, but previously was mined when encountered.

Something that is unique to the Kirkland Lake Gold Camp is their high reserve grade of 0.44 ounces per ton. “Prior to my appointment, mined grades were significantly below reserve grades. This was creating an adverse effect on costs and margin. Stopping this practice has increased our calendar year grade to 0.39 ounces per ton, a significant improvement over the 0.30 ounces per ton the Company was averaging prior to January 2014,” says Ogilvie.

The primary methods of achieving these particular results through continuous improvement include tighter dilution control, tighter scrutiny with onsite requests for capital (managers required to show IRR, payback and NPV’s and other justifications on capital requests), w w w. k l g o l d . c o m

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UNITED PERSONNEL CARRIERS UNITED PERSONNEL CARRIERS

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KIRKLAND LAKE GOLD and aggressively looking at new ore sources on our existing land package to feed the mill and lower costs.

In addition, Ogilvie shared a particularly promising element regarding improved productivity through new equipment: “We’re looking at productivity gains in the mine department. In some areas where we should be more productive, we ordered new electricity powered equipment from Atlas Copco. Typically, all the drilling is done with handheld

MINING

drills, which operate through compressed air, which is very inefficient and not particularly effective...so once our new electric drills arrive we think in the second half of the calendar year we should see better productivity.”

Operations Kirkland Lake Gold Camp has been producing for a very impressive 100 years. One of the most recent releases from the company provided details regarding why we might be able to expect 100 more.

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Pro Filtration offers the most complete line of industrial filtration products and services on the market today. Through years of experience, Pro Filtration is able to optimize your filtration requirements, it being through our in-house expertise or our on-site visits. Our knowledge and

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ABF Mines began operations in 1995 with a dozen employees working mainly in the mining sector. Thanks to its innovative vision, the company has grown steadily to remain in the forefront in the industry. Since its inception, always excels in the mining sector in industrial mechanics and was able to expand its services in related areas such as forestry , building , engineering , plumbing , electrical and welding.

138, Chemin des Boisés Val-d'Or, Québec J9P 4N7

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According to the report, it included near-surface mineralization within 1,000 feet of surface of 152,000 oz. gold (104,000 oz. indicated and 48,000 oz. inferred category) at 0.35 opt grade.

“We believe this represents an expansion opportunity in the future; which could be mined cost effectively while the mill has excess capacity.

Subsequently, one exploration drill is currently expanding the resource with a second doing in-fill drilling with the hope of having a mineable reserve in 12 months with plans to

MINING

Company Information

mine the orebody at that time. All of this could be completed with minimal capex and could be undertaken quickly once given the green light due to the near surface proximity.”

INDUSTRY

Mining

Next Phase of Development The strategy for Kirkland is to return the mine to producing at its historical grade averages of 0.4 – 0.44 ounces per ton. The Company also plans to lower unit costs through scale and efficiencies and return to generating free cash flow. Once this is achieved the company will look to further increases output through self-funded exploration and development of other sources of ore from their current property position.

“The Company’s share count of 70 million shares in issue, 83 million fully diluted permits that once the company’s production is steady state and generating significant free cash flow significant return on investment would be seen by shareholders,” says Ogilvie.

With its new business plan in place, the Company has a strong focus on higher grade.

The Company expects to return to breakeven and profitability in the next several quarters. Once profitability has been returned any future uplift in the gold price will result in a corresponding uplift in free cash flow, meaning greater return on investment for shareholders. All signs point to Kirkland Lake being a solid investment.

FOUNDED

2001 EMPLOYEES

250-499 REVENUE

$100M - $250M

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Ressources Appalac Gold mining returns to Nova

With a commitment to the local community and its people, helping put Nova Scotia back on the map for gold mining Written by: Robert Spence

Produced by: Bobby Meehan

ches

Scotia

, Ressources Appalaches is

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R e s s o u r c e s Appa l a c h e s

Founded in 1994, Ressources Appalaches specializes in the exploration and development of mining properties in the Appalachian region of Canada. The company is primarily focused on the exploration and development of its Dufferin Mine in Nova Scotia, which is acquired in 2009.

Headquartered in Quebec, the company prides itself on building a team of knowledgeable and experienced professionals that assists in providing cost-effective solutions to its Canadian projects.

Ressources Appalaches strives to support local communities as well as employ local people.

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September 2014

Dufferin Gold Mine Located on the eastern shore of Nova Scotia, the Dufferin Gold Mine was acquired by Ressources Appalaches in 2009 for $4 million.

Since then the company has spent $4 million in exploration work including $10 million to upgrade pre-existing infrastructure to bring the mine back into production.

From December 2013 to April 2014, the company purchased all of the equipment needed to start mining. “We currently employ a gravity circuit at the mine, recovering 75 percent of resources and the other 25 percent being recovered by a flotation device,� says Doug Keating,

CANADA

mine manager at Dufferin. “We are hitting 300 tons a day and we should be able to double that by 2016.”

Existing mining infrastructure on site includes permits, gravity and flotation processes, underground access, surface infrastructure in place, and accessible roads.

The 100 percent underground mine is comprised of core drilling and some surface drilling for exploration purposes.

In June, Ressources Appalaches announced its crushing unit and processing plant had begun processing ore at the Dufferin site.

According to CEO Alain Hupe, “producing ore from a second face

at vein #1, the start of the crushing unit and gravity line at the Dufferin processing plant are all very significant steps to produce the first Dore during May. Following this milestone, we will continue ramping up production to 300 tons per day as planned”.

The mine, which is currently producing 300 tons of gold per day, will yield 20,000 to 25,000 ounces of gold per year.

Continuous improvements One of the company’s many objectives is supporting its local communities.

The company works hard to support areas in which it operates as well as

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R e s s o u r c e s Appa l a c h e s

give back to the community.

“We strive in supporting local businesses and hiring local people,” says Keating. “Our employees here at Dufferin are 95 percent Nova Scotian and we work hard to bring jobs to the local community.”

Along with hiring locals, the company is fully committed to providing onsite training and safety programs.

“Our number one focus is safety,” says Keating. “We provide ongoing training to all of our employees and it

never stops.”

According to Keating, hiring experienced miners has helped the company find new cost-effective measures for its operations.

“One of the perks of having experienced employees is their knowledge. Our team combined has over 100 years of mining experience and has helped us find new ways of saving money and improving operations.”

Although the mining infrastructures were already in place, Ressources

CANADA

Appalaches has invested in a variety of new measures at the mine to increase productivity while reducing costs. The company has recently invested in a new efficient air compressor system and heat exchange system, all of which were presented by employees.

And because the company doesn’t use any treatment chemicals such as leaching, the company can easily control its discharged water, helping the company reclaim about 98 percent of its used water.

Company Information Industry

Mining headquarters

Quebec, Canada founded

1994

Future plans With operations in place, Ressources Appalaches is looking to ramp up production. The company is steadily implementing short-term goals to hits its projected goals for Dufferin in the next few years.

“We’re planning to grow gradually,” says Keating. “Our goal by the end of 2015 or early 2016 is 600 tons of gold a day.”

Currently, the company has a 95 percent recovery from its milling plant and will continue upgrading its facilities to maximize gold production.

“We’ve had some early test indicators that show our recovery mill can improve from 95 percent to 99 percent of recovery,” says Keating. “We want to continue to improve on that” The Dufferin gold mine is a prime example of how Ressources Appalaches is working to bring gold mining back to Nova Scotia.

“The Dufferin mine shows we can step up to the plate and make an operation viable,” says Keating.

employees

75

https://twitter.com/ ResAppalaches

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Millennium Minerals Lim

Millennium Minerals Limited Fast Rising Gold Production

Building on immense momentum and significant produc from Nullagine Gold Project Written by: Andrew Rossillo Produced by: James Hayes

mited:

d Continues n

ctivity

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The Company produced approximately 64,000 ounces gold in 2013.

Millennium Minerals Limited is an emerging metals company focused on the exploration and development of a large tenement portfolio in the East Pilbara region of Western Australia.

“We are a greenfield organisation and we sit on gold fields that we control completely. And these gold fields are seriously underexplored, so we have a lot of organic growth potential. We’re making some money in this type of environment,” 164

September 2014

says Millennium’s CEO Brian Rear.

The Company’s gold project contains a 1.91 million ounce gold Mineral Resource situated within nine deposits on granted mining leases. The largest deposit is Golden Eagle, located approximately 10 kilometres south of the township of Nullagine and contains 42 percent of the total Mineral Resource inventory.

Mine construction commenced in July 2011 with first gold poured 30 September 2012. Commercial

production was declared from 1 January 2013. The Company produced approximately 64,000 ounces gold in 2013. The current Ore Reserve as of March 2014 contains 464,000 ounces gold.

the following: A stage one reserve of 10.45 Mt at 1.7g/t containing 567,000 ounces, using a cut-off grade of 0.5g/t, a mine life of seven years, producing 504,000 ounces from the process plant, and an ore reserve estimate totalling 16.3 Nullagine Gold Project million tons at 1.4 grams per ton for Millennium Minerals owns and 741,000 ounces of gold. operates the Nullagine Gold Project The Nullagine Gold Project in West Australia’s East Pilbara has just come off its first full region. Results from initial feasibility year of gold production. “We studies of the operation indicated commissioned late September of w w w. m i l l e n n i u m m i n e r a l s . c o m . a u

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Our main product is QUALITY and SERVICE

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Mi l l e n n i u m Mi n e r a l s Li m i t e d the previous year, so we ramped up very rapidly. January of last year, we went to commercial production and we had a good run,” says Rear.

Mine design and scheduling is driven to maximise gold production for an annual throughput of around 70,000 ounces. Millennium aims to maximise gold recovery closer to 100,000 ounces per annum.

“We invested about $30 million

supplier profile

au s t r al i a

dollars of cash into the operation. We also raised approximately $7 million for that as well. We also put about $19 million back into the continuing development of the project. We paid about 25 percent of our debt as well.

Our official profit was around $41 million,” says Rear.

Treatment Plant The ore treatment plant is located

Redline Drill & Blasty Pty ltd

Employees: 22 Established: 2005 Industry: Drilling & Blasting Contractor - Mining & Civil Services: Delivering Drilling & Blasting Services to Mining & Construction industry.

We tailor services specific to the project requirements, including; Project Management Drill & Blast, Drilling, Shot firing, Labour hire Field Service Technicians, Freight (Hotshots) A quality service focused on Safety Goals, Production Schedules, Completion Deadlines and Budget Constraints on every project we undertake.

Ongoing Projects: Millennium Minerals Limited - Nullagine Gold Project Midwest Vanadium Pty Ltd - Windimurra Vanadium Project Management: Kurt Kjellgren - Director Ron Sutton - Director Paul Pendlebury - Operations Manager

Website: www.redlinedb.com w w w. m i l l e n n i u m m i n e r a l s . c o m . a u

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WPH Plant Hire Crushing Services A progressive mining services provider

At WPH we deliver innovative turnkey project solutions that match our clients’ specialised needs. Our reputation as an industry leader in the Western Australian mining and civil construction is the result of over 100 years cumulative experience in successfully delivering plant hire, fleet solutions, crushing and screening, and personnel support for our clients across the state.

We operate in a number of sectors which include: • Mining and Minerals • Industrial • Construction and Civil works • Bulk Haulage WPH Plant Hire Crushing Services Level 1, 195 Great Eastern Highway Belmont WA 6104

Phone: 61 8 9437 9911 Email: enquiries@wph.net.au www.wph.net.au

Mi l l e n n i u m Mi n e r a l s Li m i t e d approximately 10 kilometres south of the Nullagine gold mining operations. As the area is one of the hottest in Australia, work areas and equipment conditions are designed to take into account these adverse climatic issues.

Ore is mined and delivered from open pits to a 150,000 tonne capacity stockpile where a front end loader rehandles the ore into a ROM (run-

supplier profile

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of-mine) crusher feed bin. “We’re looking at where we need to tweak the process to make sure we can get our tonnage up into that area,” says Rear. Separate smaller stockpiles account for varying material hardness and grade, allowing for blending and throughput optimisation.

Crushed material is transported using conveyor belts to a coarse ore stockpile.

WPH Plant Hire Crushing Services

WPH are committed to providing the highest quality service to our clients.

Our ability to deliver safe, on time, on budget and innovative turnkey solutions, coupled with our outstanding customer support and world-class equipment sets us apart from other contractors.

WPH has three main business divisions; 1.

Plant Hire

2. Crushing and Screening services 3. NEMMS Joint Venture – An Indigenous contracting division Currently underpinned by long term contracts with Rio Tinto and Millennium Minerals, WPH has a demonstrated capability of moving and processing large volumes of material safely and cost effectively.

It comes with great pride that WPH was awarded the Nullagine Gold project for Millennium Minerals. The 5 year contract is a fully maintained solution, consisting of two 80t fleets, one 100t fleet and all ancillary equipment.

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Mi l l e n n i u m Mi n e r a l s Li m i t e d

Our main product is QUALITY and SERVICE

Boliver International in partnership with the Sino Grinding Group of companies promotes our forged steel grinding media for both SAG and ball mills on a global level, providing its clients with regular on-site technical support, whilst proactively carrying out advanced research and development to meet specific milling operations.

Specialist Support for the World’s Mining Industry

Boliver International

Sino Grinding Industries Pty Ltd

T: +61 8 9317 6177

T: +61 3 9545 0199

E: neill@boliver.com www.boliver.com

E: enquiry@sinogrinding.com.au www.sinogrinding.com

Two variable spread apron feeds draw from the stockpile feeding the SAG (semi-autogenous) mill, ensuring a constant supply.

Slurry from the mill is pumped to a cluster of hydrocyclones where it is split into two streams — overflow and underflow. The overflow feeds onto vibrating trash screens to remove oversized material which is returned to the mill. Undersized material continues into the leach circuit.

The underflow returns to the mill. A proportion of the

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Company Information Industry

Mining headquarters

West Perth, Western Australia employees

120 Minning site 2014

revenue

103 Million

underflow flows over a vibrating screen and undersized materials report to a concentrator to remove any free gold. The screened oversize is directed back to the mill feed chute, while the concentrator tails are returned to the mill discharge launder. The cyclone overflow from the trash screens passes into a CIL circuit of tanks. The first three tanks are fitted with oxygen injection to accelerate gold absorption.

Moving forward, Rear informed that the Company is looking forward to “improving our margins and generating sufficient cash to get into a position to take advantage of all the potential of our gold fields.�

products/ s e r v ic e s

Millennium Minerals Limited’s core purpose is to create a profitable mid-tier gold producing company generating value for shareholders whilst continually seeking additional opportunities to increase shareholder value through further development of organic growth opportunities.

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World Coa Association: The WCA is the global network for the Written by: Laura Close

al : coal industry.

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“OUR MISSION IS to defend and grow markets for coal based on its contribution to a higher quality of life globally, and to demonstrate and gain acceptance that coal plays a fundamental role in achieving the least cost path to a sustainable low carbon and secure energy future.” – Milton Catelin, Chief Executive, WCA The World Coal Association (WCA) is a global industry association formed of major international coal producers and stakeholders. The WCA works to demonstrate and gain acceptance for the fundamental role coal plays in achieving a sustainable and lower carbon energy future.

Membership is open to companies and not-for-profits with a stake in the future of coal from anywhere in the world, with member companies represented at Chief Executive or Chairman level.

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The WCA has four core goals that shape our work.

1. To demonstrate that coal is an abundant, low cost energy source critical to meeting the energy needs of a low carbon world.

2. To demonstrate that coal is essential to building sustainable societies through the use of coal products, such as steel and cement.

3. To influence international bodies and national governments to support investment in low carbon coal technologies – including improved energy efficiency and carbon capture, use and storage – in support of international climate objectives.

4. To ensure that the World Coal Association and its Member s are recognised and valued as constructive and responsible participants in

A U STR A L I A

Economic Forum and national governments.

The WCA has been influencing policy at the highest level for almost 30 years.

international environmental, climate and energy security forums.

The WCA provides a voice for coal in international energy, environment and development forums, presenting the case for coal to key decision-makers, including ministers, development banks, NGOs, international media, the energy industry, business and finance and research bodies.

The WCA produces material that improves understanding of the vital role of coal, organises workshops, holds meetings with senior policymakers, and develops policy positions to inform international policy discussions in bodies such as the European Commission, European Parliament, United Nations Framework Convention on Climate Change, UN Environment Programme, World Bank, World

WCA Leadership The WCA’s leadership team is headed by a Chairman elected for a two-year term, currently

Milton Catelin handing out the award for Leadership on Mining Safety to a representative from the Shenhua Group.

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W o r l d C o a l A s s o ci at i o n Harry Kenyon-Slaney, the Chief Executive of Rio Tinto Energy.

There are three Vice-Chairmen and a Chief Executive, supported by an Executive Committee.

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Company Information Industry

Mining

WCA Work Programme The WCA’s activities are shaped by the work of two committees.

Every WCA Member can sit on these two committees and have a major input into the WCA’s work programme.

The Energy & Climate Committee’s role is to develop WCA policy on issues relating to energy access, energy security and climate change and to develop and oversee projects to implement those policies.

The Resources Committee develops WCA policy on issues relating to coal’s sustainability as an essential resource in a modern economy and develops and oversees projects to implement those policies.

WCA Members play a pivotal role in shaping the future of the global coal industry.

headquarters

London founded

1985 employees

Chairman: Harry Kenyon-Slaney, Chief Executive Rio Tinto Energy,Chief Executive: Milton Catelin products/ s e r v ic e s

Non-profit, global industry association formed of major international coal producers and stakeholders.

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