The source of value
Procurement executives across the globe continue to see the potential they can unlock throughout the supply chain. They understand that business today is about engaging, collaborating, adapting instantly to evolving needs, and finding new sources of value. Getting that value, however, can prove a challenge.
FOREWORD WELCOME TO THE December issue of Mining Global! In our first feature we ask how easy is it to navigate the challenging world of commodity cycles? Australian Vanadium, under the guidance of Vince Algar, looks set to capitalise on an upward swing in the vanadium market. The key to this imminent growth? A commitment to a long-term objective and vision. The treatment of contaminated water from both active and abandoned mines has come a long way over the last 40 years. During this period a variety of treatment
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methods have been developed - we take a look at the challenges ahead for water treatment in mining. Also, what are the top gold producing countries? Find out in our top 10. We also have exclusive reports on Australia’s Roy Hill, one of the world’s major resource based operations, and discuss the importance of agility in the sector. We also speak Swanson Technologies, as the company continues to expand and diversify in the Australian industry. Enjoy the read!
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CONTENTS CONTENTS
F E AT U R E S INSIGHT
06
AVL: defining a future for global vanadium
32 Grand Cote Operations
TECHNOLOGY
14 Water treatment – the challenges ahead
52 Bassari Resources
TOP 10 LIST
Headline for 24 00 the article Top 10 gold producing countries
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Roy Hill Holdings Pty Lt
CONTENTS
C O M PA N Y PROFILES AFRICA 32 Grande Cote Operations 52 Bassari Resources
AUSTRALIA 66 Roy Hill Holdings Pty Ltd 76 Swanson Industries, Inc. 84 Mineral Technologies
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Swanson Industries, Inc.
84
Mineral Technologies
INTERVIEW
AVL:
Defining a future for global vanadium Writ ten by: DALE BE NTON
IN THE MINING industry, producers and explorers quite literally live and die on commodity cycles and there are a whole host of external factors, often uncontrollable, that contribute to the fluctuating market. Commodity cycles, and the challenges they present, are inescapable. Some of the world’s largest producers have suffered in recent years through a downturn in the market, but it is often the smaller
emerging explorers that feel the full brunt of those commodity cycles. “Sometimes it’s luck,” says Vince Algar, Managing Director of Australian Vanadium Ltd. “You can’t form miracles, so you have to keep sight of a long-term objective and a vision.” That long-term objective for Algar and Australian Vanadium is to become a large scale global producer of vanadium, a metallic element that is used for metal alloys
The global vanadium market is about to explode and Australian Vanadium, through its flagship Gabanintha project, looks set to capitalise on the upward swing of the commodity cycle
like rebar and structural steel but also plays a vital role in battery technology and energy storage. Through its flagship Gabanintha Project, AVL is poised to capitalise on a significant surge in the vanadium market, following years of stagnation and low-price points. “Vanadium has probably spent the best part of the last four or five years at an all-time low in terms of value,� he says.
This low value has resulted in a significant lack of investment, which in turn has seen a long-term degradation of global vanadium supplies. This is only exacerbated by a number of large scale steel plant closures across South Africa and China, two of the largest consumers of vanadium. But, as Algar points to, central government in China has been refocusing its operations and seeking ways to reduce its carbon footprint
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INTERVIEW and carbon emissions. This has seen a gradual increase in the demand for steel and in turn vanadium. “If you can imagine then, that 30-40% of the market is producing Chinese steel rebar and China is being told to increase its use of vanadium,” Algar says. “That’s going to have a very big impact on the market and AVL will be finely positioned to capitalise on that.” Swinging for the fences At the time of writing, vanadium’s current stock market price sits at $10 per pound. Turning the clocks back to only two years ago in November 2015, where the price stood at close to $3.50 per pound and the market upswing is as clear as day. “That really transforms the economics of a project like ours,” says Algar. “We have a high-grade project, a world class resource which can extract high volumes of vanadium. As the market begins to grow, that becomes extremely attractive.” That high-grade, world class vanadium resource, is the Gabanintha Vanadium Project, located in Western Australia. Australian Vanadium has owned the project for a number 8
December 2017
“We have a highgrade project, a world class resource which can extract high volumes of vanadium. As the market begins to grow, that becomes extremely attractive” – Vince Algar, Managing Director of Australian Vanadium Ltd.
of years, owing to that low value commodity cycle, but it has always had one eye on a long-term ambition of developing the mine site to become a major global resource of vanadium. When Algar entered the company back in 2014, Gabanintha was already a well drilled site, and as the market began to rally, attention soon turned to new drilling programs in order to update the resource and provide a clear understanding of the mineral and
AVL: DEFINING A FUTURE FOR GLOBAL VANADIUM
Vince Algar Managing Director of Australian Vanadium Ltd 9
INTERVIEW
“We have revised all the previous information and data that we have, captured it and reanalysed it and were able to record that huge 96% resource increase” – Vince Algar, Managing Director of Australian Vanadium Ltd.
resource infrastructure at the site. This happened on two occasions. First up, 2015. “Our detailed drilling program back in 2015 really allowed us to move our resources from inferred to indicated resources, providing us with much more confidence in the detailed structure of the deposit,” says Algar. But, as the market continued to rally, a further study was needed and in September this year AVL announced that it had “significantly upgraded” 10
December 2017
the resource at Gabanintha. This significant upgrade came in the shape of a 96% increase in mineral resource tonnes, with the total resource now standing at 179.6Mt. This, the company stated in an announcement, strengthens AVL’s position as a globally significant high-grade vanadium deposit. For Algar, it further solidified the confidence that AVL has placed in Gabanintha. “We have improved the scale,
Australian Vanadium Low Emission and Technology Minerals conference presentation
A vanadium deposit
the size and the confidence in the project,” he says. “We have revised all the previous information and data that we have, captured it and reanalysed it and were able to record that huge 96% resource increase.” This, in effect, has provided Algar and AVL with some breathing space. Now that the resource has been upgraded, to huge success, the company can focus on the next steps towards development, namely a detailed mine plan. A resource like no other For any mining company, explorer, or producer, the importance of striking up key relationships with local
landowners and regulatory bodies cannot be understated. If a commodity cycle can define a mining company’s entire existence, then having the right permits in place and communicating with the right people is the next major hurdle that needs to be overcome. Algar admits that this is often a lengthy process, but an essential process nonetheless. “We’ve crystallised our understanding of the geology, so we can focus on the mine plan,” he says. “But even then, we must take into account the environmental requirements and foundations, the conversations with the local groups regarding our socio-economic impact 11
INTERVIEW
Gabinintha
and land agreements – all of which is essential in our progression,” All of this foundation work is part of the goal of AVL to develop Gabanintha to a point where the resource can stand alone and be recognised on a global scale as a world class, high-grade resource. As Algar states, the company is now working to “finish the home run” with regards to the necessary permitting and further studies that will be completed along the way and, even then, this is only the beginning for AVL.
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December 2017
Defining the future With the growth of the vanadium market over the last four years, Algar firmly believes that it will only continue to do so as more and more uses for the resource emerge and the demand continues to rise. With Gabanintha, AVL will be in a key position to capitalise on this market growth but more importantly, define it. “We want to get to a point of finalising our mine plan, having all the funding and permits in place and then get to production within
AVL: DEFINING A FUTURE FOR GLOBAL VANADIUM
“The market has a long time to run and with Gabanintha we have a project that can run alongside that and play a key role in defining the future vanadium space” – Vince Algar, Managing Director of Australian Vanadium Ltd.
the next five years,” he says. “The market has a long time to run and with Gabanintha we have a project that can run alongside that and play a key role in defining the future vanadium space.” Algar believes that Gabanintha can and will become a world class asset that will supply the oncoming demand for vanadium for the next 10 to 20 years and through the updated resource it’s hard to argue that the project certainly has the capacity to do so. AVL has certainly come a long way since just a few short years ago and Algar admits that while one cannot predict how and when
a commodity cycle may enter an upward swing, you have to keep the long-term goal in sight. “There’s a lot of short-termism in our industry,” says Algar. “And sometimes it’s difficult to navigate at times, particularly as a young emerging company or when operating in an emerging market. “But you have to keep sight of that long-term goal and when investors see that, and they see the progress you have made and what you can offer, then success will follow. That’s what we have at Gabanintha. We have world class resource, a crystal-clear vision and most importantly, we understand exactly where the market is.”
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TECHNOLOGY
WATER TREATMENT
– the challenges ahead W r i t t e n b y D R R I C H A R D C O U LT O N
Siltbuster Process Solutions is a recognised world authority in treating mine water. CEO Dr Richard Coulton explains the sources of mine water contamination, the techniques used treat it and the challenges which remain
TECHNOLOGY
“A key water treatment strategy is to minimise the amount of contaminated water generated in the first place” – Dr Richard Coulton, CEO
THE TREATMENT OF contaminated water from both active and abandoned mines has come a long way over the last 40 years. During this period a variety of treatment methods have been developed. Cause of contamination Apart from suspended solids, the principal contamination from most mines is due to the oxidation of 16
December 2017
pyrite-bearing minerals exposed to oxygen. This results in three products, all of which are water soluble and need to be treated: Ferrous Iron (Fe2+); Sulphate (SO42-) and acidity (H+ ions). In addition to iron, other metals such as zinc, manganese, aluminium and - depending on the rock geology - cadmium, arsenic, copper or other metals can be released into solution.
AT PARYS MOUNTAIN NORTH THE DISSOLVED IRON CONCENTRATION EXCEEDS 500MG/L NEARLY 200 YEARS AFTER CLOSURE 17
TECHNOLOGY Timing Whilst significant contamination can be generated during active mining, it tends to peak immediately after mine closure, as accumulated oxidation products are flushed out of the rock mass on flooding the mine. These then decline exponentially over a number of years to a residual value which typically remains stubbornly higher than pre-mining concentrations. For example, the iron concentration in water from the flooded Wheal Jane
“Whilst significant contamination can be generated during active mining, it tends to peak immediately after mine closure” – Dr Richard Coulton, CEO
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December 2017
Mine in Cornwall, UK, peaked at several thousand mg/l when the mine first flooded and over the subsequent 20 years declined to less than 70mg/l. Whilst the flushing period can be relatively short, the long-term legacy may need treatment for decades to come. For example, at Parys Mountain North Wales (one of the largest copper mines in the world in the 1800s), the dissolved iron concentration in the water still seeping from the mine exceeds 500mg/l nearly 200 years after closure. Whilst this concentration is exceptionally high, and reflects historical mining practices which had little regard for environmental issues, it’s a sobering indication of the potential long-term legacy from uncontrolled mining. With the length of the flushing period and the residual contamination concentrations difficult to predict, it’s often advisable to operate a temporary treatment system post closure, until the long-term contamination load, and best treatment strategy, can be determined. Beyond this, given the variability in water quality, different treatment options may need to be adopted during the active,
Wolf Minerals’ new tungsten mine near Plymouth in Devon
immediate post closure and longterm post closure phases. Minimising the problem A key water treatment strategy is to minimise the amount of contaminated water generated in the first place. This typically involves exclusion of oxygen from the reactive materials by flooding and sealing excavations; placing waste materials under water; covering rock dumps with a layer of low permeability material to prevent water and oxygen ingress; or mixing
pyritic material with acid buffering/ neutralising materials to reduce the amount of acidity generated. Treatment solutions How the residual contaminated water is treated depends on the contamination load and the required treated water standard. Treatment has principally focused on pH correction to circa neutral values and removing dissolved metals. Where there’s a relatively low concentration of contamination, 19
TECHNOLOGY
Treatment to oxidise iron and correct pH passive systems can be deployed. These rely on naturally occurring processes to remove the metals and buffer the pH. For instance: oxidation of iron to insoluble ferric hydroxide using aerobic wetlands; precipitation of metals as sulphide by means of sulphate reducing bacteria in anaerobic wetlands; or the addition of alkalinity to the water by percolation through beds filled with crushed limestone
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(anoxic limestone drains - ALD). Passive systems have a life of 10 to 20 years before they need to be replaced, during this period minimal maintenance is required. For waters with either a very low pH and/or containing high concentrations of dissolved metals, active treatment using conventionally engineered treatment systems is required. These involve the continual input of reagents to remove the contaminants
and the ongoing disposal of the sludge generated by the plant on a ‘continuous little and often’ basis. Active treatment plants either use lime to raise the pH and precipitate the dissolved metals in the form of hydroxides, or use biological activity in the form of sulphate reducing bacteria to effectively reverse the pyrite oxidation process which caused the contamination and precipitate the dissolved metals as insoluble sulphides. Challenges which remain However, some challenges remain, including the treatment of waters containing low level concentrations of zinc and cadmium, tightening of the treatment standards for arsenic and selenium and reduction of sulphate concentrations to sufficiently low concentrations. Zinc and cadmium cannot be adequately removed using the methods commonly employed for the removal of iron and aluminium. For low levels of contamination, anaerobic wetlands can be used, but this has been restricted due to odour issues caused by the excess hydrogen sulphide gas created by
sulphate-reducing bacteria venting to atmosphere. Research is focusing on both alternative methods for the treatment of low level zinc and cadmium concentrations. Over recent years, the discharge standard for arsenic has been reduced due to concerns about short and long-term toxicity, making treatment more challenging. Dissolved arsenic is present as either Arsenite (As3+) or Arsenate (As5+). Arsenate is more easily removed from solution than Arsenite, thus most processes rely on an oxidation stage (using a reagent such as hydrogen peroxide) prior to its removal from solution. Removal is then typically achieved using co-precipitation with the iron, usually already present in the mine water. Alternative methods include ionic exchange, reverse osmosis or the use of adsorptive media such as granulated ferric hydroxide. The challenge is to better understand the optimum conditions for arsenic removal and develop control philosophies that achieve this at minimum cost. The discharge standard for selenium has also been reduced, forcing some mines to modify their 21
TECHNOLOGY
treatment process. Like arsenic, selenium is present in two oxidation states, selenite (Se4+) or selenate (Se6+). Two methods are commonly used for its removal, either chemical reduction of selenate to selenite followed by co-precipitation with iron, or biological reduction to precipitate it as insoluble selenium. The biological process has found favour particularly where the raw mine water concentrations are relatively low. Other options include ionic exchange and reverse osmosis. Again, the challenge is to develop selenium removal systems that minimise cost and maximise sustainability. Treatment standards for sulphate vary both nationally and on the level of dilution possible in the receiving watercourse. Typical values, particularly in more arid regions, are less than 200mg/l, making treatment challenging for more heavily contaminated mine waters. The addition of lime to neutralise acidity and precipitate dissolved metals also helps reduce the sulphate concentration by the formation of gypsum. However, depending on the method of metal removal used 22
December 2017
Siltbuster Process Solutions water treatment system at the world’s 4th largest tungsten site
“Over recent years, the discharge standard for arsenic has been reduced due to concerns about short and long-term toxicity, making treatment more challenging” – Dr Richard Coulton, CEO and the amount of lime added, gypsum precipitation typically only reduces the sulphate concentration to between 1600mg/l and 2400mg/l, often significantly exceeding the required water quality standard. Options for reducing the sulphate concentration to below the required standard include: nanofiltration/ reverse osmosis, which is limited due to the need to prevent fouling of the membranes and the disposal of the reject waste brine generated; ionic exchange, which has the same disadvantages; barium sulphate precipitation, which can achieve very low residual concentrations but is costly; biological sulphate reduction, which is most effective at an elevated temperature and relies on methanol or another source
of carbon to feed the bacteria – it is used on a few applications for metal recovery but has not found favour due to operational costs; and ettringite precipitation, which elevates the pH of the water using lime and an external aluminium source to form insoluble ettringite – this has attracted interest but is considered costly and operationally complex. Mine water treatment has come far but meeting stricter discharge standards on potentially toxic metals, and reducing sulphate concentrations, particularly in arid regions, still needs to be addressed. A lot of technology already exists to meet these standards – the challenge is doing this in a way that’s affordable to both the mining industry and society as a whole. 23
TOP 10
GOLD PRODUCING COUNTRIES Mining Global takes a look at the countries with the highest gold output in metric tonnes Written by OLIVIA MINNOCK
TOP 10
INDONESIA (100MT)
The Grasberg mine stands as the nation’s richest gold mine, holding an estimated 25.8mn oz and more than 26bn lbs of copper. Despite reported labour conflicts, Indonesia increased its gold output from 97MT in 2015 to 100MT in 2016, restoring the Asian country as a top 10 gold producer for two years in a row. Indonesia had slipped from the list in
2012 and 2013. Although a major gold player, the nation’s Grasberg mine has primarily American ownership. However, a recent deal appears to have opened the door for the U.S. Freeport-McMoRan outfit to transfer a controlling stake to Indonesia. Super Structures of the World: The Grasberg and Ertzberg Mines
UZBEKISTAN (100MT)
The nation’s top mine, Muruntau, continues to be one of the world’s largest open pits and a steady producer for the central Asian country. Uzbekistan has been a top 10 gold player for the last decade despite little gold exploration being undertaken. It has hovered around 100MT for four years running and 26
December 2017
10 09
appears to be steadily and modestly increasing production. Muruntau has remained its primary gold producer since its discovery in 1958. Gold is the country’s number one export at a reported $1.88bn.
Uzbekistan’s top mine, Muruntau, continues to be one of the world’s largest open pits
TOP 10 GOLD PRODUCING COUNTRIES
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MEXICO (125MT)
Mexico has been an economic riser in terms of GDP and manufacturing during the last decade. Its gold mining production has remained relatively steady. It dipped 10MT from 2015 to 2016 and stands at 125MT. The lower yield has been attributed to Goldcorp experiencing problems at the country’s top mine, Penasquito. But those numbers stand in stark contrast
07
to just a few years back when the total output was a meagre 92MT in 2014 and the North American country did not make the top 10 list in 2011. Gold discovery has been increasing and it is expected to remain a top producer going forward. The Story of Peñasquito
SOUTH AFRICA (140MT)
Shrinking reserves, increased labour expenses and abrupt production stops have contributed to South Africa’s gold production decline. The shortfall stood at only 5MT from 2015 to 2016, but in 2006 South African led the world in gold production at 272MT annually. Still, there are reportedly vast untapped resources yet to be
unearthed and the world’s deepest gold mine is located in Mponeng, South Africa. The operation is said to have produced upwards of half of all the gold in the world. South Africa’s Mponeng Gold Mine
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TOP 10
06
PERU (150MT)
The South American country saw modest growth from 2015 to 2016 to the tune of 5MT. It has held steady at number five or six for more than a decade although it produced a high of 208MT in 2005. Peru has faced significant struggles with gold mining in the 21st century. Operations have
increased 400% but many are located in the difficult terrain of the Peruvian mountain tops. The country has also sustained reported damage to natural resources in the Amazon and illegal mining remains a challenge. Peru is the 11th largest exporter of gold with exports valued at $6.2bn.
CANADA (170MT)
This North American country has been on the rise in several economic factors and gold ranks among them, bucking the downward trend of some other gold leaders, Canada increased its output by 17MT from 2015 to 2016 after dipping from 2014. The country appears to be a gold riser and outfits such as the Agnico Eagle Mines are
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05
expected to expand operations and new ground is expected to be broken in areas such as Nunavut which go online in 2019.
Bucking the downward trend of some other gold leaders, Canada increased its output by 17MT from 2015 to 2016
04
TOP 10 GOLD PRODUCING COUNTRIES
UNITED STATES (209MT)
Gold appears to be rebounding
been coming out of neighbouring
under the de-regulation of the Trump
Nevada, which yields 78% of the
Administration after dropping 5MT from
country’s total output. The United
2015 to 2016. The downshift has been
States maintains a massive supply of
attributed to the shuttering of some
gold under lock and key in famed vaults
small outfits in Nevada and ownership
such as its Fort Knox holding. The
changes of other operations. Although
amount of US gold holdings reportedly
many think about the California Gold
equals to 75% of all other nations. The
Rush in terms of America’s primary
US also exports the most gold of any
location, the majority of US gold has
top 10 producers at $17.7bn.
03
RUSSIA (250MT)
Although Russia stands as a gold mining leader on the rise, it continues to import gold. Having leapfrogged the United States in terms of production, Russia still has vast unmined gold resources in Siberia. With approximately one-sixth of the Earth’s total landmass, Russia has
plans to ramp up its gold operations. Over the next 10-12 years, reports indicate that Russia intends to raise its total output to 400MT. The massive nation that stretches two continents has the second largest gold reserves in the world.
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TOP 10
02
AUSTRALIA (270MT)
Up to two-thirds of all the country’s gold is culled from mines in Western Australia. These operations are based out of Perth with the most productive open mining operations residing in the “Golden Mile” of Kalgoorlie-BoulderFimiston. The location has a strong concentration of gold and nickel reserves. The largest gold mines in the “Golden Mile” region include the Boddington Gold Mine which was
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opened in 1987 and is set to produce 850,000 ounces of gold per annum for the 20 years expected to be left of its life, and the Kalgoorlie Superpit Gold Mine, which has produced 800,000 ounces per annum over the past 25 years. Overall, the gold mining industry accounts for $13.5bn in exported revenue for the country. Last year, Australia’s gold production backslid by 8MT.
TOP 10 GOLD PRODUCING COUNTRIES
01
CHINA (455MT)
China continues to lead the world in gold production. Its 2016 mining output totalled 445MT. Topping all other nations in production for the past decade, the Asian superpower also emerged as the world’s largest gold consumer. The majority of the country’s mining operations are located halfway between Shanghai and Beijing. The China National Group
is responsible for approximately onefifth of all Chinese gold production. China National Group also has gold mining interests abroad and other mineral mining operations such as African copper. China has increased its mining initiatives by 10% annually and is expected to continue production accelerations to meet domestic demand.
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MINING TOGETHER BUILDING TOGETHER
THE GCO FAMILY
Written by Ben Mouncer Produced by Richard Deane
Grande Côte Operation’s new CEO Jozsef Patarica took on the reins at the Senegalese mineral sands mine earlier this year and, in an exclusive interview, explains his collaborative vision for its future
The mine’s dredge moves seven to 10km per year
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AFRICA
W
hile sustainability and technology sit at the heart of TiZir’s vision for its Grande Côte Operation (GCO) in Senegal, the mine’s new Chief Executive Officer Jozsef Patarica maintains that the most vital component of its makeup is its people. In fact, Patarica, who took over ultimate responsibility for the mineral sands mine in June, goes as far as describing GCO’s workforce as “one, big family”. Extending down more than 100km of Senegal’s west coast, GCO has been mining for zircon, ilmenite, rutile and leucoxene since its ambitious project kicked off production in 2014, 10 years after MDL was commissioned by the government to explore opportunities in the region. Senegal’s much-envied economic stability, along with the mine’s proximity to Dakar – it rests 150km northeast of the country’s capital city – means that GCO has come across very few obstacles in gathering a skilled, motivated
w w w. m i n i n g g l o b a l . c o m
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OUR CORE VALUES ARE THE FOUNDATION OF GLOBAL AFRICINVEST
OUR NUMBER ONE FOCUS IS ADDING VALUE TO OUR PARTNER : GCO GRANDE COTE OPERATION GLOBAL AFRICINVEST WIN WIN PARTNERSHIP
HSE-INTEGRITY TEAMWORK PRODUCTIVITY
GCO-GAI WIN WIN PARTNERSHIP : GLOBAL AFRICINVEST TEAM AT THE DIOGO SITE FOR GRANDE COTE OPERATION HAS BEEN DESIGNED TO PROVIDE MAXIMUM PRODUCTIVITY TO OUR PARTNER :
BEST EQUIPMENT QUALIFIED PERSONEL WELL EQUIPPED WORKSHOP ON SITE CORE VALUES
WE THINK LIKE OUR CUSTOMERS WE ARE ACCESSIBLE, ACCOUNTABLE AND TRANSPARENT EVERY MOMENT MATTERS :SAFETY ALWAYS FIRST WE ARE GOOD ENVIRONMENT STEWART WE FOCUS ON HAVING THE BEST INDEPENDANT MAINTENANCE TEAM ON SITE : PRODUCTIVITY + EXPANSION IN QUALIFIED PERSONNEL IN ORDER TO INCREASE PARTNER SATISFACTION +
WE OPERATE WITH INTEGRITY WE SEEK CONTINUOUS IMPROVEMENTS OUR OVERRIDING CONCERN IS THE SAFETY OF OUR PEOPLE AND THE ENVIRONMENT www.global-africinvest.com
HOW DO WE ADD VALUE TO OUR PARTNER
GCO :
OUR COMPETITIVE DURABLE ADVANTAGE : BRAND NEW OR 90 % NEW EQUIPMENT ; SUPPLIER TECHNICIEN ON SITE FOR MAINTENANCE ; HIGHLY QUALIFIED EXPERTS CONTRACTS WITH SUPPLIERS WHICH PROVIDE WARRANTY PLUS EXPERT TECHNICIEN ON SITE. EVERY NEW CONTRACT WE PROVIDE BRAND NEW EQUIPMENT TO OUR PARTNERS KARAKAENA Project Open Pit (From day one till today)
AT GLOBAL AFRICINVEST WE ARE DEFINED BY OUR CHARTER WHICH FOUNDATION IS OUR CORE VALUES WHICH REPRESENT WHO WE ARE. ON TOP OF OUR SOLID FOUNDATION IS OUR MISSION AND COMMITMENT TO OUR
Project PARTNERS AND OUR BUSINESS STRATEGYKARAKAENA IN Open Pit (From day one till today) ORDER TO ACCOMPLISH OUR VERY IMPORTANT MISSION. A FEW EXAMPLE OF WHAT WE DO :
G R A N D E C Ô T E O P E R AT I O N S S A
talent core to run its operation. “The key thing that I see here is that there’s a very strong sense of family at GCO; we want to work together to always improve the business. As a family, we’re quite proud of what we can achieve and what we have achieved,” says Patarica. “GCO directly employs about 670 people, including expats for the development and training
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of our local workforce. “For me, Senegal is an amazing place. There’s a lot of mineral wealth in the country and the government is very serious about developing the mining industry. The Senegalese are very welleducated, hardworking people with an interest in training and continuous improvement. Additionally, turnover has been pretty low.”
AFRICA
“The key thing for me is creating a sustainable business for Senegal. We’re here for the long haul” – Jozsef Patarica, CEO Grande Côte Operation
GCO partakes in a number of community activities
GCO portside operations
w w w. m i n i n g g l o b a l . c o m
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AFRICA
GCO mines around 50mn tonnes of sand every year
That sense of togetherness is something that Patarica hasn’t closed off to just GCO and its employees – it’s a philosophy he has introduced with the mine’s partners and suppliers. Patarica heads a quarterly meeting with representatives from each of the mine’s contractors to offer them an overview of the business’s performance, as well as to share ideas for facing key issues. “All of our partners are equal, even if they have different roles and different scales of influence,” he adds. “We spend a lot of time on
sustainability but we also talk about productivity, and it makes them more a part of the business. It’s something I truly believe in. Just because someone’s a contractor or supplier, it doesn’t mean they don’t need to know how the business is performing and what they can do to contribute.”
Sustainability and CSR At the centre of the mine’s operation is its award-winning, automated dredge, which moves at a rate of 25-30m per day or, depending on the topography of the landscape, up to seven to 10km per year.
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G R ANDE CÔ T E O PERAT I O N S SA
To maintain this smooth progress along the mine path requires a considerable amount of forward-planning and cooperation with local villages and hamlets affected by the mine path, an area of focus that is of paramount importance to the CEO. “It’s absolutely critical. With the leadership team, we’ve spent a lot of time going out into the local villages, into the local community and understanding what they need and how we impact on them,” says Patarica. “There’s quite an active planning process that looks well ahead and it’s all interlinked with the social department in terms of what we need to do when relocating people, and what we need to do to allow people to cross the mine path once we’ve moved through.” GCO has developed what it called its Project-Affected People village (PAP), a resettlement area for local people where it has built solar-powered concrete buildings supplied with a water system. Around 98% of the ore that is dredged is immediately returned back to the dune system which GCO restores via an innovative rehabilitation programme that ensures the rapid regrowth of vegetation. With a minimum mine life of 25 years, such initiatives are imperative if GCO is to reach its sustainability goals.
Antti Maentausta Production Support Manager
Bruno Delanoue GCO Chairman
Jacques Leclerc Head of Department – Safety
Michael Rose Area Manager Mining
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AFRICA
Jozsef Patarica CEO
Prior to joining MDL, Jozsef spent eight years as a Director of ASX listed Bassari Resources Limited focused on discovering and developing multimillion ounce gold deposits in the Birimian Gold Belt, Senegal, West Africa. He is a mining professional with a strong track record in the mining industry spanning 24 years. He has been involved in management, project evaluation and operational roles throughout his career in a number of mining centres across Australia and Senegal. He was involved in the development and operational management of the Fosterville Gold Mine (BIOX) in Victoria where he successfully transitioned the operation from open pit to underground mining. Prior to Fosterville, Jozsef was part of Placer Dome’s Corporate and Project Development Group based in Australia. He was part of the team for Newcrest involved in the construction and commissioning of Cadia Hill Gold Mine in NSW and, whilst in Western Australia, he was part of the team which successfully constructed and commissioned the Stage 3 expansion of the Fimiston Plant for Kalgoorlie Consolidated Gold Mines. Jozsef has a Bachelor of Engineering, Master in Business Administration (Technology Management) and is a member of the Australian Institute of Company Directors and Australasian Institute of Mining and Metallurgy.
THE TASTE OF EXPERTISE 02 is a contractor for institutional catering and hotel trade, specialised in base camps and platforms, in West Africa. We are a breath of fresh air for everyone looking for quality services adapted to their needs, in particular in an unwelcoming working place. 02 fully manages your working environment and offers a whole package of support services, with maximum flexibility. We respect our clients needs and requirements, our only limits being the existing law, safety and environmental compliance.
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For more than 40 years, SODIAL has developed its expertise in food distribution and expanded its services in order to meet all the needs of its customers.
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SODIAL S.A. employs more than 160 people in its different sites and relies on a complete fleet of 83 vehicles. Remote sites, isolated locations, desert areas, hotels and restaurants: for many years, SODIAL has taken up the challenge to supply food including in the most remote regions. SODIAL relies on different assets that make the company a complete and efficient partner. Workforce, relay, fleet, catalogue and storage space: we have been able to develop our resources in order to offer an irreproachable service.
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Driven by technology While the state-of-the-art dredge is one of the mine’s main time savers, Patarica is determined to embrace further technologies to maximise efficiency, from production through to its rail network and its presence at the Port of Dakar. “We want to be leaders in terms of innovation,” he spells out. “We have a business intelligence project that we’ve initiated across the mine in particular, but we are expanding it through the entire value chain from pond to port. “We’re aiming at standardising our time usage models and then looking to implement a software system where we can analyse data and then using that data to make decisions, to be more proactive rather than reactive.
Rail is a key mode of transport for GCO
“We want to be able to use our information to predict what is going to happen and to then make changes to make sure we maximise productivity and foresee and mitigate risk.”
Premium zircon GCO mines around 50mn tonnes of sand every year, making it the biggest mineral sands operation of its kind in the world. Its orebody consists primarily of ilmenite and zircon, with smaller but high-value quantities of rutile and leucoxene. The majority of its ilmenite is delivered through its integrated logistics system to its titanium and iron ilmenite upgrading facility in Norway, which is owned by holding company TiZir. Zircon is produced in either a standard
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LA PERFORMANCE DANS LA QUALITÉ ET LA SÉCURITÉ • Company specialized in a range of industrial services relevant to the mining sector, cement plant, oil-processing plant etc. • King on win-win partnership all the way from project preparation, realization phase, completion, commissioning etc. • Service providers of qualified and dynamic workers in various fields
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or a premium quality, and Patarica revealed his team at the mine’s Mineral Separation Plant (MSP) has recently uncovered a useful method of developing more premium zircon without incurring any additional capital.
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“The team has looked at existing equipment and has optimised the circuits to create significantly more value by improving run time, utilisation and premium production output,” he explains. “These changes have increased the amount of premium zircon that we can deliver to the market. We actually get a higher price for that zircon as well; so, for no additional capital outlay we generate more revenue. There’s no other mine in the world that can deliver the premium quality zircon that we can.”
ALLUVIAL DREDGES LIMITED DESIGNERS OF THE DREDGER ‘YEENE’ FOR THE GRANDE CÔTE OPERATIONS IN SENEGAL AND THE DESIGNERS AND SUPPLIERS OF THE VESSEL’S 27,500 CU.M/HR CENTRIFUGAL DREDGE PUMP.
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G R ANDE CÔ T E O PERAT I O N S SA
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“With the leadership team, we’ve spent a lot of time going out into the local villages, into the local community and understanding what they need and how we impact on them” – Jozsef Patarica, CEO Grande Côte Operation
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PROCUREMENT AND INDUSTRIAL PRODUCTS Suppliers of equipment for Mining, Construction, Utilities, Oil & Gas, Ports & Agriculture
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The future Though GCO has enjoyed a successful start to its production cycle, Patarica is determined not to let standards slip. Continuous improvement is demanded from the top down, and a six-person mine optimisation team is in place to make sure adjustments are continually made for the better. The team has a blend of experience, with mechanical, electrical and geological expertise fuelling a unit that strives to find improvements. Runtime is at the top of its priority list. “The team has a number of projects in progress and is driven by the key issues that cause the longest amount of down time. That’s their
A GCO resettlement village
mandate,” adds Patarica. “The key thing for me is creating a sustainable business for Senegal. We’re here for the long haul and we’ve got to get a return for our shareholders and key stakeholders and through that process we have to create a lot of value internally within Senegal.”
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Serving
Senegal
Inside Bassari Resources’ Makabingui gold project
Written by Dale Benton Produced by Richard Deane
Through its flagship gold mine, Bassari Resources looks set to transform and shape the future of the emerging Senegalese mining space
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O
ne of the most exciting spaces in the current mining industry right now, is Senegal. As more and more mineral exploration companies invest in the West African continent, Senegal really is an emerging market with incredible potential. For Bassari Resources, an Australian listed gold company currently transitioning from explorer to producer, the company is strategically placed to shape the future of this market and capitalise on its mineral potential. The company has identified some 30 gold anomalies in the Bassari permits in the underexplored Senegal Birimian greenstone gold belt in West Africa, which borders the
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CREATING AND SUSTAINING HIGHPERFORMANCE ASSETS THROUGH BEST PRACTICE ENGINEERING
Mincore Pty Ltd is an Australian company providing engineering services in the mining and minerals processing industries. Mincore’s core business is offering a LEAN and FIT FOR PURPOSE SERVICE approach to project management and engineering for the development of base metals, coal and metalliferous mines and associated infrastructure. Mincore has a global supply chain offering least cost solutions. Additionally Mincore provides specialist consulting engineering and construction services for modifying and upgrading existing production facilities.
Mincore have formed an alliance with Redstar Construction to deliver a successful project for Bassari Resources
www.mincore.com.au +61 3 9017 6340
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Makabingui currently hosts a mineral resource which comprises 11.9mn tonnes averaging 2.6 g/t gold for a contained 1mn ounces of gold
countries of Mali and Guinea. The company is currently focused solely on the development of its flagship Makabingui Gold project, with a targeted production date of early 2018. The Makabingui Gold project consists of an ore reserve of 860,000 tonnes at 5.7g/t for 158,000 ounces of gold. These reserves all fall within Makabingui’s resource of 1mn ounces of gold at 2.6g/t. In addition, drilling has identified 8km of strike at Makabingui South.
A tale of two studies As the company has completed two independent feasibility studies, Alex
Mackenzie, Executive Chairman, will call upon over 30 years in the mining industry to fully develop the project and hit that Q1 2018 production date. The first feasibility study was conducted at Makabingui in 2014, but due to an extended period of time and significant delays, Mackenzie found that in order to push forward with the
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BASSARI RESOURCES
Studies in 2014 and 2017 confirmed the Makabingui project to be economically viable. Once financing is in place, the project will be ready to take to the next level of development.
development and transition into a producer, a new bankable feasibility was needed in 2017. “So we had a study in 2014,” he says. “Then we had an application for exploitation/production permit, which takes time. Then an environmental study, and then it needed to go for governmental approval, and suddenly here we are in 2017.” Both the 2014 and 2017 studies showed similar excellent economic results, being a low cost,
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highly profitable operation with significant free cash flow At the time of writing, Mackenzie, having received a term sheet from West African bank, Coris, to fund the low capex of US$12mn, is waiting for the bank to now present a formal loan agreement document in order to take the next steps towards bringing Makabingui live. The goal for Bassari does not simply end at bringing Makabingui into production and making the transition towards being recognised as a significant gold player in West Africa and beyond, Mackenzie is very keen to stress that for him, Bassari is a developer, not a seller. “I’d like to follow the likes of
“I believe this Senegal/Mali belt in which our permits lay will very much be the next great gold greenbelt in the world”
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– Alex Mackenzie, Executive Chairman Randgold and convert Bassari into a major mine player in Senegal,” he says. “This Senegal/Mali belt which our permits cover will, I believe, very much be the next great gold greenbelt in the world. Makabingui and the work we can achieve with the project will play a big role in getting us there.”
Powered by partners For any mining company, a strong relationship with the government in which its operations are based is crucial. If one does not gain the government and community’s trust, an operation can fail before it has even started. Also, a good relationship with local Senegal partners such as WATIC and Sengold Mining are imperative.
Mackenzie is a wellrespected name amongst the mining world, having worked as a chartered accountant with a special focus on the mining sector and sitting on the board for a number of mining companies across Senegal, Ghana, Ecuador, Brazil, Solomon Islands and Australia. Perhaps his most noteworthy work saw Mackenzie discover the mineral potential of the Sabodala Gold mine, the first and currently only large-scale gold mine in operation in Senegal. It was this significant role in the development of Sabodala that has
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Email: info@redstar.construction
Red Star Construction is a privately owned construction company, incorporated in Burkina Faso, focused on servicing the West African region. Red Star provides services to exploration, mining and infrastructure clients in all areas of construction and maintenance services. We have the capacity to undertake earthworks, concrete works, buildings construction, camp maintenance, structural/mechanical, piping installation and transport services.
I N F O @ R E D S TAR .CO NST R U CT IO N
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earned Mackenzie the respect of the Senegalese government, as well as the mining ministers. “That relationship is vital,” says Mackenzie. “I got Sabodala off the ground with Nic Limb and Jeff Williams of Mineral Deposits (MDL), along with my friend Peter Spivey [Non-Executive Director]. The government fully supports our company and provides me with a sense of freedom to help develop Makabingui and in return, shape the future of Senegal.” Of course, Mackenzie is not alone. As noted, he recruited Peter Spivey, a successful mine developer who was instrumental in the development and construction of the $250mn Sabodala mine. For the day-to-day operations, Mackenzie will require more than 200 members of staff to help bring
Makabingui into production. For this, the company calls upon the expertise of Mincore Australia, one of the most successful mining and engineering contractors in Australia, Redstar, a construction company specialising in West Africa, and Vanture International, key supplier of mining equipment. “Mincore really are outstanding.
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BASSARI RESOURCES
“I want to emulate Randgold in terms of the impact it has made in Mali. It’s not all about making money. We have a real opportunity here with our work on the Birimian green belt to help transform a third world country, and that is what is truly satisfying” –2 Alex D Mackenzie, 6 e c e m b eExecutive r 2 0 1 7 Chairman
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They have incredible experience and some of the best mining engineering people in the world working in Australia,” says Mackenzie. “Of course, there’s Peter, who has developed a number of mines in West Africa, and will bring a number of his best mining people to work on Makabingui, so we are really well placed on that front.”
The needs of the many As an Australian listed mining company, Mackenzie is all too aware of the its responsibility to provide more than just a mining operation to Senegal. A mining company can live or die on its relationship with local government, and a key element of that lies in its responsibility to be a good corporate citizen. “I am incredibly proud of our social contributions as a company,” says Mackenzie. “We’ve always been conscious of our impact to the local community and we have committed more than $1.5mn on community engagement and infrastructure alone. Having a good, win-win relationship is the only way it can work.” One such example of the company going the extra mile in order to benefit the local community has seen it take a unique step, one that allows for artisanal mining to continue to take place within Bassari’s mining permits.
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MINING
“We have allocated an area where artisanal miners can continue to operate in order to continue generating cashflow,” he says. “Most organisations ban this, but we allow that in order to enable the local community to thrive and to prosper for itself, and not just through our direct work with Makabingui.”
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Number of employees at Bassari Resources
Informing an industry As Makabingui approaches production, Mackenzie will soon begin to think about developing a number of deposits that fall under the company’s many identified anomalies along the Birimian green belt with one in particular that could surpass Makabingui and truly define the Senegalese mining space. We’ve done some initial drilling already and found resources at around 100,000 oz of gold at Konkoutou,” he says. A number of large international mining companies and consultants have actually stated that Konkoutou
could develop into a multi-million ounce deposit. This is all potential of course. Mackenzie’s focus right now is 100% on bringing Makabingui into production and establishing Bassari as a major player in the West African mining space. “As I said before, I want to emulate Randgold in terms of the impact it has made in Mali,” he says. “It’s not all about making money. We have a real opportunity here with our work on the Birimian green belt to help transform a third world country, and that is what is truly satisfying.”
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MAINTAINING AGILITY IN MINING Written by Fran Roberts Produced by Josef Smith
With integrated mine, rail and port facilities, which have the capacity to deliver 55Mtpa, Roy Hill is one of the world’s major resource based operations, which will deliver enormous benefits to the broader community for years to come. Barry Fitzgerald, Chief Executive Officer, explains more
ROY HILL HOLDINGS
A Day in the Life of a Truckie
“R
oy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year. Headquartered in Western Australia, we are the only independent iron ore operation with significant local ownership,” advises Barry Fitzgerald, Chief Executive
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Officer of Roy Hill Holdings. The industry has suffered a difficult time of late, and one set to continue according to HSBC, which predicts that prices will likely correct further in the current quarter, seeing the benchmark price for 62% fines fall below US$60 a tonne over the first half of next year. As the single biggest player within
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“Our unique and best-inclass integrated demand to supply chain operating, reporting and monitoring system ensures a holistic view across the entire organisation from mine to port” – Barry Fitzgerald, Chief Executive Officer Australia’s iron sector, Roy Hill has understandably taken measures to protect against the negative effects of any market volatility. “When we set up our business four years ago, market conditions were very different. At Roy Hill, we regularly review our business strategy and work within the parameters of the changed market environment. We act,
refocus and maintain our agility so we can adapt and respond to market changes,” Fitzgerald comments. “Our unique and best-in-class integrated demand to supply chain operating, reporting and monitoring systems ensures a holistic view across the entire organisation from mine to port. We maintain constant contact with our customers on
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The perfect partner; Knowledge, responsiveness, innovation & complete solutions
Schenck Process Australia Pty Ltd Ground Floor, 65 Epping Road, North Ryde NSW 2113, Australia T+ 61(0)2 98 86 6800 Australia Wide: 1300 724 362 sales@schenckprocess.com.au www.schenckprocess.com.au www
It is the many years of experience supporting the mining industry, especially in the Pilbara region, that positions Schenck Process to be supplier of choice; proudly delivering vibrating equipment, including integrated gates, hoppers and feeders to the Roy Hill Mine and Port. The complete performance solution included our Screenex panels to work in harmony on every Schenck Process vibrating screen. A highpoint was the Roy Hill Train Load Out. Schenck Process adopted an innovative hybrid technology for this system. The silo and structure were manufactured and delivered to site in large modules to minimise site resources and installation time. Schenck Process is extremely proud to be part of the Roy Hill project and safeguarding the future success of this operation through our continued service and support.
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Roy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year
matters of product quality. “As a margin driven business, we focus on innovation and business improvement methodology to foster efficiency, effectiveness and engagement regardless of price. This discipline and drive to recruit people who understand our values of Lead, Care, Think, and Perform positions us well to weather an uncertain market.”
Embracing change Western Australia accounts for about 98% of Australia’s Economic Demonstrated Resources (EDR) of iron ore, which is around 28bn tonnes. As such, the state government plays an important role in the operations at Roy Hill. “In addition to continuing to drive our costs lower, it is imperative that both the state and commonwealth
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ROY HILL HOLDINGS
Roy Hill Launches Second Wave of Pink Trucks in Support of Breast Cancer Research and Awareness
Downer Proud Partner to Roy Hill Downer Mining has been supporting the Roy Hill Project since the commencement of mining on site and is proud to be continuing that successful relationship into the future. With a broad range of services from mining consultancy through to specialised blasting and tyre management, Downer provides a full and comprehensive service offering in-house. Focused on delivery of high performance and cost efficiency, Downer is able to deliver consistent results in close collaboration with our customers.
For more information go to downergroup.com
Address: Level 6, 130 Stirling Street, Perth WA 6000 Phone: 08 6212 9500
AUSTRALIA
governments continue to work with also limited by the capacity of its the industry to reduce compliance leadership to thrive in a world that is costs and the regulatory burden that increasingly volatile and complex. is imposed on the sector,” Fitzgerald It is imperative that organisations continues. “Collaboration with prioritise vertical leadership other companies and engaging with development over horizontal skills government to ensure that policy development,” observes Fitzgerald. shifts occur to support future growth, expansion and investment is key.” The digital economy The compliance costs and Australia has the world’s largest regulatory burden – Western estimated reserves of iron ore with Australia has enacted 54bn tonnes, 28% of health and safety regimes the world’s estimated that apply specifically 190bn tonnes. As such, to mining workplaces, the country’s majors can which impose strict rules benefit from effectively aimed at establishing a supporting METS high level of safety and (mining equipment, carry significant penalties technology and Number of for non-compliance – services). “Increasingly, Employees at often impact the viability Roy Hill Holdings METS are seeking to of mining projects. adapt and position “The willingness to themselves as relevant embrace change, consider innovation in the digital economy. This is in design and identify modern creating opportunities for them technologies must be improved. to play a more substantive role This approach to improvement and within the value, or supply chains, innovation should be integrated into of majors,” states Fitzgerald. organisational culture. The ability “Investments by METS into research for organisations to transform is and development and data analytics
1,700
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ROY HILL HOLDINGS
has the potential to unlock value in the supply chain.” Indeed, supply chain development is seen by many to be key to the future of the mining industry. “Our integrated operating model has redefined how Roy Hill works day to day. Our unique approach breaks down traditional barriers by realigning everything we do according to five interdependent and interconnected systems (supply, demand, people, improvement governance), allowing us to take a holistic view of our operations,” Fitzgerald elaborates. “Supply places our maintenance teams as core business and optimises the flow of parts, contractors and Building the Roy Hill Project Time Lapse
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equipment to maximise availability and reliability. We recognise that the digital economy is offering greater opportunity to change the world of work and this has led to improvements in supply chain capability.” Driving innovation Not content to follow the crowd, Roy Hill has pioneered the use of new practices within its operations. “In a shift from standard industry practice, we have decided to ‘in-source’ our supply system – centralising our maintenance planning and engineering services then housing all supply system functions together to increase collaboration. This is a critical step in
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improving the throughput relationships between our suppliers and our customers,” reveals Fitzgerald. “At Roy Hill, we have been futureproofing from the start with significant investments in technology and attracting and developing our people. With technology as a foundation of our business, we have been driving key innovations by collaborating with suppliers to stretch software and services beyond the limit of current thinking, thus providing bestpractice across the business.”
Fe iron ore of which 1.2bt is +55% Fe, enough to sustain a mine life of more than 17 years. With this in mind, Roy Hill is already looking to the future. “We are focused on reaching sustainable 55Mtpa production, and continuing to get the best results from our people and our assets every single day,” enthuses Fitzgerald. “Over the next 12 months, we will bring on another 300 employees, taking our total to around 2,000 employees.”
Sustainable production Roy Hill has a defined mineralisation of more than 2.2bt of +50%
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DIGGING
DEEP TO EXPAND ITS MINING FOOTPRINT Written by Niki Waldegrave Produced by Bryan Gilles
Swanson Industries sees a rich future in Australia, with the world-leading mining business continuing to expand and diversify
S WA N S O N I N D U S T R I E S
S
wanson Industries is a worldleading provider of hydraulic cylinder manufacturing, remanufacturing and repair services for mining and mobile industries. With the global headquarters in the US in Morgantown, West Virginia, Swanson provides a vast array of products and services for several industries globally, including fluid power, mining – open cut and underground – coal
mining, off-highway, and steel. It also produces hydraulic drilling mining products and mechanical parts and offers machining and plating services from its various sites around the world. Swanson Australia has been able to benefit from the depth of experience in Swanson WV, and the parent company – which is owned by AEA Investors LP – recognises the huge potential Down Under.
KEY FACTS ABOUT SWANSON INDUSTRIES • Swanson Plating Company was founded in 1964 • It was renamed Swanson Industries Inc in 1999 • In 2006, Swanson Industries added hydraulic cylinder manufacturing to its services • Swanson Industries’ relationship with international corporations such as Caterpillar Inc. is an example of its global expansion • In 2012, Swanson Industries added AEA Investors as an equity partner in its business
• The partnership allows Swanson to expand and invest in its existing facilities while securing acquisitions that will advance the firm’s position in key global markets • In 2014, Swanson Industries added Jarvie Engineering in Australia to its portfolio of investments • It bought Waratah Engineering in 2016, thus further cementing its Australian footprint
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S WA N S O N I N D U S T R I E S
Swanson Industries / Cylinder Express MINEXpo 2016 Video Tower
Mining Equipment Repairs • • • • •
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The coal mining industry is buoyant, being Australia’s second largest export earner, contributing, on average, $40bn a year, and the mines that invested in new capital equipment pre2012 now require renewals, repairs or replacements by law. The acquisition of Waratah Engineering, formerly trading as Kopex Waratah, based in Argenton in NSW when Swanson Industries bought it in 2016, has been an important one. With Waratah’s suite of capital equipment and its experience in remanufacturing longwall roof support systems and mobile equipment, the
partnership fulfilled another step in a strategy to be a full-service supplier to the Australian mining markets. To help the smooth transition, executives moved over to help the process carry out as smoothly as possible. Waratah’s facility specialises in major, on-the-ground mining machinery like hydraulics cylinders, and other large and complex pieces of kit that can take anywhere from three to seven or eight months to build from start to finish. Due to the acquisition, the workload capacity has increased by three or four times, and Beal expects to continue
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S WA N S O N I N D U S T R I E S
that trajectory for at least the next two years. Swanson is looking to expand and diversify its four sites, three of which are in New South Wales – Lambton, Georgetown and Argenton ¬– and one in Mackay, Queensland, even more to become a full-service supplier to the Australian mining markets and beyond. The site in Lambton, Newcastle, is a mirror image of the one in West Virginia – diverse, and manufacturing multiple cylinders and shafts for various mines. While it doesn’t do the full repair of that equipment, it removes all the parts that need machining, like shafts from molters to build
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up and laser clad. It also does a lot of open cut work and deals with the Tomago aluminium smelter. Swanson Georgetown Chroming Facilities is an area that is expanding, and being constantly being upgraded. The business recently outgrew its facility in Glenella and has moved to new premises in Paget, the production hub for mining industry. One of the new site’s major advantages is a gigantic 2,220 sqm workshop and a 6,700 sqm yard.
It should set a new benchmark with regards to hydraulic cylinder overhauls in Queensland, and there is more opportunity to expand in the territory over the next 18 months, with Swanson planning to diversify in Western Australia as well. The company is looking to target gold and metalliferous mines, open cut and underground, with Western Australia offering an opportunity to execute this vision.
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The art
and science of separation
Mineral Technologies is a subsidiary of Downer EDI Limited, giving it global reach and the backing it needs to develop innovative process solutions for the mining industry Written by John O’Hanlon Produced by Bryan Giles
MINERAL TECHNOLOGIES
W
hatever minerals a mining company is after, there has to be a process, or a chain of processes, of separation. From its origins 75 years ago extracting heavy minerals from the local sands on Australia’s East coast, Downer’s Mineral Technologies business soon started developing its own equipment, started selling it to other mining companies and evolved into a process solutions specialist, designing, testing and manufacturing the machinery needed to gain the best possible grades and recovery at a reasonable cost. Mineral Technologies does not try to compete with the very largest mine building contractors, preferring to stay focused on niche areas, taking pains to understand both the process and the customer’s company’s issues. It is frequently called in when margins are tight and a case has to be made – it will design the plant, test the process at its Australian labs, develop a flowsheet and come up with a guaranteed process for the customer. “We pride ourselves on being flexible and thorough when
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developing a package,” explains General Manager of global sales Ken Roberts, who joined the company in January 2017, bringing with him over 30 years of experience in both mining operations and equipment sales. There’s no denying that the mining industry has been in the doldrums for some years now, however this has not entirely been a bad thing for Mineral Technologies, which has seen demand for some of its specialised services hold up well, as the need to cut costs and optimise revenues has never been more pressing. As well as mineral sands, it has provided costeffective process solutions for iron ore, silica sands, coal, chromite, gold, tin, tungsten, tantalum and many other minerals in Australia, the Americas, Africa, Europe and south Asia. Tailings dumps can be a perennial headache for miners. “We are getting more into retreatment of old tailings ponds and dumps,” says Roberts. “Remediation is more and more closely regulated by governments but it needn’t be a burden – it can create value for the customer too.” A good example – the two tailings
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“We pride ourselves on being flexible and thorough when developing a package”
Ken Roberts General Manager – Global Sales
Ken is a graduate of the Haileybury School of Mines in Canada and spent his first eleven years in operations with notable companies which included Barrick Gold, Placer Dome & Unimin. He was involved with eight operations during that time and was in the commissioning team of three of those including Minera Alumbrera in Argentina. Ken held positions of increasing responsibility from Operations Metallurgist through to Plant Superintendent. He then joined Outokumpu (now Outotec), FLSmidth and Eriez Flotation where upon leaving he was VP North America, Director North and Central America and Director Global Sales respectively. Ken is honoured to have been awarded the Canadian Mineral Processor’s Ray MacDonald Volunteer Award (2017) & Bill Moore Special Achievement Award (2009). Ken joined Mineral Technologies in January 2017.
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Sales and Support
MD LC3 Coal Spiral
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Mobile Mining Unit (MMU) - 1 beneficiation plants it delivered to the Australian iron ore producer Arrium, enabling it to transform variable low-grade tailings stockpiles into high grade iron ore product. In recent years, Mineral Technologies has become the ‘goto’ provider for relocatable, modular plants which incorporate core process technology into new lowcost configurations. Roberts sees endless opportunities here. Putting in a modular mining unit (MMU), which can process a predicable number of tonnes per hour (tph) for a few years and then be moved to another site, makes a lot of sense, saving the customer the capital cost of civil works and construction for a conventional plant and providing a dependable revenue stream. Mineral Technologies is delivering a mobile mining unit to a major mining project in Florida, and is working on developing more such units for customers that are mining mineral sands. “It moves on tracks and has a hopper above to take the feed – it shreds the material to a pumpable size then delivers it to the processing plant via a pipeline.”
Mobile Mining Unit (MMU) - 2
Mineral Technologies’ research and development team has become widely recognised for innovation in minerals processing. It uses the latest design technologies such as rapid prototyping, and its Ansys 3D printing and design verification software transforms desktop concepts into fullscale equipment inside the laboratory.
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MINERAL TECHNOLOGIES
“The new CT1 spiral separator is very exciting, and we will be showing it all around the world over the next 12 months” – Ken Roberts, General Manager – Global Sales
No two mining projects are dealing with exactly the same ores, so this customised equipment design service is the best way for them to achieve optimum grade and recovery. Spiral separators and shaking tables have been around for a long time, but innovation is always able to deliver better performance. With over 50,000 visitors and 500 exhibitors, the International Mining Exhibition (EXPOSIBRAM) and the Brazilian Mining Congress bring
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together hundreds of entrepreneurs, government and private organizations every two years and this year, from 18 to 21 September, it was chosen as the launch pad for Mineral Technologies to introduce the industry to a new type of spiral separator - the CT1. “It’s very exciting, and we will be showing it all around the world over the next 12 months. We call it our compact turbo spiral and it increases throughput up to fourfold, on the same footprint.” Being enclosed, it is spillage and noise free, he adds. Its small footprint and modular nature means customers can reduce both capex and opex while maintaining metallurgical performance. Conventional plants containing five, six or more spiral stages can be replaced by a three stage CT1 flowsheet. Fewer processing stages means reduced power consumption and a decreased need for peripheral equipment such as pumps, motors, control circuitry, sumps, intermediate launders and distribution systems. Plants with fewer processing stages are easier to operate, easier to control and quicker to commission.
AUSTRALIA
MD CT1 Compact Spiral, Demonstration Unit
The Australian factory of Mineral Technologies is the world’s largest spiral manufacturing plant, and it is getting busier. The company is investing in equipment and people to speed up throughput and keep lead times down, but the growing popularity of modular units including the CT1 is helping here too, according to Roberts. “The CT spiral is a bit different from a conventional plant – it goes together like Lego. We can take them apart and have them assembled on delivery, which makes the delivery process a lot cheaper and quicker.” Being able to tap into the synergies of the global Downer group is important to potential customers, Roberts acknowledges. With iron ore mining gradually regenerating in Australia, he recently met with one of the largest players together with other Downer businesses such as Downer Mining and Downer Rail to develop a project. Downer’s financial clout adds flexibility in contracting options such as leasing, and that is something that fits well with the growth in modular plants. “We can reconfigure them and fit them to another customer’s needs.
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MINERAL TECHNOLOGIES
Reading Magnetic WHIMS, Herculano, Brazil
From Concept to Reality
For 50 years, Australian owned and operated Tooltech Plastics Pty Ltd has provided TOTAL WEAR SOLUTIONS for our client partners. Specialising in the processing of engineering polymers and polymer alloys that are able to withstand the highly abrasive nature of processing valuable minerals and ore.
Design Machine & Tool
CONTACT US: 19-21 Antimony Street Carole Park, QLD 4300 info@ttpplastics.com.au 07 3271 1755
Mould E n q u iries W elcom e
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www.ttp p la stics.com .a u
AUSTRALIA
We can put them in containers and assemble locally, and this is of real benefit to our customers. It allows them to rethink the flow, reduce the tonnage, and reduce the capital outlay – all key considerations for them.” The Downer group ‘Zero Harm’ policy is also an important
differentiator, he concludes. Customers, especially in jurisdictions like Australia and the USA, have to take ethical sourcing seriously, and audit their entire supply chain to ensure that safe practices apply throughout. They can have complete confidence when dealing with Mineral Technologies.
Reading Magnetic 24-Pole WHIMS Unit
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Austwide Mining Title Management Pty Ltd provides expert advice and assistance to explorers and miners throughout Australia on how to secure title to land and how to maintain that valuable interest. Austwide has been servicing the exploration and mining industry for over 25 years now and is one of the largest and most experienced of any mining title management organisation in Australia.
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