Mining Global - September 2018

www.miningglobal.com

SE P T E MBE R 2 0 18

World Platinum Investment Council PUTTING PLATINUM IN POLE POSITION

DEVELOPING THE WORLD’S LARGEST TUNGSTEN MINE Exclusive interview with Craig Bradshaw, CEO of Masan Resources

DUNDEE PRECIOUS METALS Expansion through operational excellence

Smart Mining 1.0

A PREVIEW OF THIS MONTH’S EVENT IN TORONTO

TOP 10

LARGEST MINING COMPANIES IN THE WORLD

First choice for the sand and aggregate industry We supply: Trio® crushers Trio® vibrating screens Enduron® vibrating screens Trio® feeders Trio® washers Trio® conveyors Sand washing solutions For more information contact us on +971 4 8080244.

Get more from your quarry with Trio®. Visit www.trio.weir today

TRIO® Minerals www.minerals.weir

Copyright © 2015, Weir Slurry Group, Inc.. All rights reserved. WEIR is a trademark and/or registered trademark of Weir Engineering Services Ltd.

FOREWORD

elcome to the September issue of Mining Global magazine!

In this month’s issue, we sat down with the CEO of the World Platinum Investment Council to learn of the organisation’s mission to stimulate investment in the pinnacle of precious metals; platinum.

With decade high prices, how is the mining industry responding to the rise of cobalt? We spoke to the President of First Cobalt, a North American pure-play cobalt company, as he discusses how the company is strategically positioned to capitalise on this changing tide.

As a cyclical industry, the mining industry is currently experiencing something of an upswing. With the increased and continued demand for energy and materials that a growing global population needs in order to thrive, Mining Global looks at the 10 largest mining companies in the world by market capitalisation.

Our exclusive reports include a profile of Dundee Precious Metals, as the company looks to define what a technologically enabled and environmentally sound mining operation can look like in today’s mining world through the digital transformation of the world class Chelopech mine in Bulgaria.

As Prime Media Partners to the very first Smart Mining 1.0 conference, Mining Global sits down with the Ritika Sinha, a UAE-based entrepreneur and creator of the event, to find out more.

Enjoy the issue!

W

Dale Benton Editor dale.benton@bizclikmedia.com

w w w. m i n i n g g l o b a l . c o m

03

CONTENTS

MASAN RESOURCES

THE FUTURE POTENTIAL OF TUNGSTEN IN VIETNAM

06

26

THE WORLD PLATINUM INVESTMENT COUNCIL

Putting platinum in pole position

38

2018

the rising tide of Cobalt

60 Events

50

mining companies

68 Smart mining

74 Dundee Precious Metals Europe

88 RELIANZ

Latin America

06

SEPTEMBER 2018

A S I A — PA C I F I C

MASAN RESOURCES THE FUTURE POTENTIAL OF TUNGSTEN IN VIETNAM WRIT TEN BY

DA LE BENTON PRODUCED BY

A LE X PAGE

w w w. m i n i n g g l o b a l . c o m

07

MASAN RESOURCES

MASAN RESOURCES HAS SUCCESSFULLY DEVELOPED THE LARGEST TUNGSTEN MINE IN THE WORLD, SHINING THE SPOTLIGHT ON VIETNAM’S EMERGING MINING SPACE

L

ooking across the

leadership and a network of

global mining map,

international partners to collabo-

Canada, Australia and

rate as part of a platform to drive

Africa dominate the conversation with regards to resource rich

08

this market.

This is exactly what Masan

geographies and untapped

Resources strives to achieve.

potential. The mining industry is

Through the acquisition of a

cyclical and that in turn forces

controlling interest in Nui Phao

companies to look for new

Mining, Masan Resources has

resources and new opportuni-

worked to significantly develop

ties in new and emerging

the Nui Phao Project – the

markets. One such emerging

world’s largest tungsten mine.

market, is Vietnam.

Vietnam is a mining jurisdiction

Overseeing this development is Craig Bradshaw, CEO of Masan

that is the very definition of

Resources and General Director

untapped potential. With more

at Nui Phao. Having worked on the

than 5,000 deposits of more

project over the last seven years,

than 60 different types of metals,

under the previous CEO and

including 7% of the world’s

succeeding him in 2015, Brad-

reserves of bauxite, Vietnam

shaw has witnessed first-hand

could very well be a major

just how much potential both

mining market of the future.

Vietnam and the mine itself has to

In order to turn this possibility into reality, not only will it require investment but smart investment, SEPTEMBER 2018

dictate the global mining market.

“We’re the world’s largest tungsten mine, up there as one

A S I A — PA C I F I C

Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao

09

w w w. m i n i n g g l o b a l . c o m

A S I A — PA C I F I C

11 of the leading fluorspar mines in the

and small amounts of copper and

world as well as being the largest bis-

gold. Bradshaw notes that the

muth mine in the world too,” he says.

challenge then becomes one of

“But Vietnam has so much untapped

processing those different minerals,

potential in terms of people too with

both effectively and efficiently.

quality of life, education and infrastructure all improving.

“When you combine the resource

“It really is a challenge in being able to process those minerals and extract them at different stages of

potential with the human workforce

the process,” says Bradshaw. “I’d

potential, you really begin to recognise

argue it’s probably more

how close Vietnam is to changing the

challenging here than at

mining conversation in the world.”

any other mine in

The project produces around 3.5

the world, given

to 3.8mn tonnes of ore per year,

the nature of

including tungsten, bismuth, fluorspar

the minerals.” w w w. m i n i n g g l o b a l . c o m

MASAN RESOURCES

12 Alas, Bradshaw points to considerable success that he has overseen at the project in recent years. In 2017, Masan Resources reported a record year for production across all of its commodities, with a 5.7% increase

Click to watch: ‘MASAN with THAI TUAN’

year on year with tungsten, copper and acid grade fluorspar production increasing 13.3%, 8.5% and 7.6% respectively.

But what does Bradshaw attribute this success to? For him it is simple: it is the people and the team that he has amassed over time.

“The difference between good companies and bad companies are the people that they have and the skills that they are allowed to bring into problem solving,” he says. “When

SEPTEMBER 2018

SURFACE PROTECTION Trepax has extensive track record in the mining and other industries in South East Asia. We have also undertaken projects in Africa as well as providing solutions through partners to mine sites in Australia and other surrounding countries. Our services include a portfolio of solutions for surface protection of essential assets from static equipment such as process vessels to mechanical equipment such as mills, pumps etc.

The solutions provided include protection against wear from erosion or protection against chemical or environmental corrosion.

Trepax turn key services encompass design, supply and installation for new build projects, upgrades as well as repair and maintenance programs.

We have a reputation in the region of providing innovative solutions to solve plant problems using the combined expertise of Trepax Engineering teams and our materials supply partners all back by solid warranties.

Our vast field of knowledge, product variety and application skills has helped key clients like Nui Phao achieve long term surface protection of key assets. We are pleased to be part of Nui Phao’s ongoing success and growth, in providing them with real world solutions to their most challenging corrosion, wear and abrasion issues.

www.trepax.co.th info@trepax.co.th

MASAN RESOURCES

“We’re the world’s largest tungsten mine, up there as one of the leading fluorspar mines in the world as well as being the largest bismuth mine in the world too” — Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao

14

SEPTEMBER 2018

you look at the challenge we face, it’s a challenge made up of different techniques, different sciences and processes.

It’s a good challenge, but how do you solve it?”

Masan Resources solves this problem through a truly collaborative approach. Bradshaw believes that no one in the mining industry will come into a business and

A S I A — PA C I F I C

solve a problem with the “perfect

ently and this creates real collabora-

background” rather he looks at attract-

tive effect.”

ing and pooling people together that

This collaborative approach starts

can bring different approaches and

at the recruitment level. The mining

different viewpoints to a problem.

industry, through its labour intensive

“Collectively then, it is just about

nature, is often one that is plagued by

looking at a problem or a challenge

skills shortages or a general lack of

through different angles,” he says.

workers out there looking to embark

“They bring different core competen-

on a career in mining.

cies, different backgrounds and experiences, they approach it differ-

This is where other companies turn towards recruitment agencies or

15

w w w. m i n i n g g l o b a l . c o m

GROW WITH US Offering the highest quality products, services & solutions for the grinding & processing of minerals in the mining industry •Steel/Rubber Mill Liner •Grinding Media •Manganese Crusher •Fastener •Laser Mill Scanning www.growthsteel.com

enquiry@growthsteel.com

A world leader in performance mining reagents

85

YEARS IN THE MAKING •FLEX •SPRI •PM •TNC •XF •XANTHATES To find out more visit us on : www.ctcminechem.com

34, Clayson road, Weston, ON, M9M2G8, Canada.

Contact : salesctc@ctc.ca T.P: +1 416 825 4600

A S I A — PA C I F I C

mining service providers, but Brad-

challenge each other. That’s a work

shaw approaches this a little differently.

ethic we strive for and is what ultimately

“When we are trying to build a company and recruit people, we don’t

leads us to success.”

As the world’s largest tungsten mine,

just go and seek out specific agencies

the Nui Phao will both influence and

for each specific area of work in mining,”

be influenced by the market demand.

he says. “Sure, we got people who had

With its uses in cutting tool technolo-

experience across different metals and

gies used in the aerospace, defence

different processes but for me what’s

and automotive industries, tungsten is a

key is their mindset.”

key mineral now more than ever before.

“They can have the best knowledge

Bradshaw recognises this responsi-

of tungsten or fluorspar, but they need

bility to be able to supply the market

the right mindset and work ethic. That’s

and understands the key role that

what makes us unique, we have a group

Masan Resources can play in building

of people with all their different experi-

the capabilities of Vietnam’s mining

ences but they come to work and they

industry to answer to the demand.

w w w. m i n i n g g l o b a l . c o m

17

MASAN RESOURCES

18

“We’ve been successful in developing the mine and so the future for us is to be the number one producers of tungsten in the world, or within the top three. There’s no reason we can’t be based on how successful we’ve been with our current portfolio.”

— Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao

SEPTEMBER 2018

A S I A — PA C I F I C

19

w w w. m i n i n g g l o b a l . c o m

A PARTNERSHIP OF YEARS GROWING ONLY STRONGER

WE’VE HAD PLENTY OF REASONS TO CELEBRATE THROUGHOUT THE YEARS.

Our success has come from working together, to build a real understanding of your vision in Vietnam. Our shared approaches to

80 YEARS OF THE VERY BEST In 1938, Charles Warman came up with an idea that would totally revolutionise the mining industry. As soon as Warman’s pumps came on to the scene, they became the very best you could buy. If it wasn’t Warman, you were wasting your time.

Over the course of 80 years, Warman pumps spread across the globe driven by the ethos to always innovate. Soon, Warman became a global brand with a bigger influence than even the forward-thinking Charles Warman could ever have imagined. All over the world, Warman is known as the very best.

It’s always been Warman, and it always will be.

To find out more visit www.alwayswarman.weir Contact our local representative: rowan.imer@mail.weir Ph. +61 408 586 375

www.minerals.weir

Copyright © 2018, Weir Minerals Australia Ltd. All rights reserved. WARMAN is a trade mark and/or registered trade mark of Weir Minerals Australia Ltd and Weir Group African IP Ltd. WEIR and the WEIR logo are trade marks and/or registered trade marks of Weir Engineering Services Ltd.

Safety and Regulatory compliance, in a complex geography through multiple stakeholders have been the foundation of a credible partnership. Our relationship has

successfully brought the latest technology into Vietnam, and it’s just the begining for many more to follow.

A S I A — PA C I F I C

This is where Masan Resources’ strategy of acquiring assets

with Nui Phao, not just in tungsten but in other resources.

across Vietnam will prove key.

“We’ve been successful in

Bradshaw believes that as the

developing the mine and so the

company looks to the future, it will

future for us is to be the number

look to benchmark the industry

one producers of tungsten in the

through the Nui Phao mine.

world, or within the top three.

Nui Phao is the first mine in

There’s no reason we can’t be

Vietnam to operate to interna-

based on how successful we’ve

tional standards. That in itself is

been with our current portfolio.”

no small feat and it is a feat that

The mining industry is cyclical

Bradshaw feels will continue to

and one of the biggest challeng-

define the future growth of

es in the world, be it gold, copper

Masan Resources.

or tungsten, is that supply may

“There is real opportunity

one day meet the current demand

across Vietnam,” he says. “We

but it will inevitably fall into

are looking to acquire new assets

a deficit. Bradshaw is all too aware

and replicate what we’ve done

of this and points to the Vietnam

w w w. m i n i n g g l o b a l . c o m

21

MASAN RESOURCES

Naturally Special Products Producers of quality tannin based speciality products

Dispersants and depressants for mineral separation and processing

Adhesives for composite wood production

Glue-line moisture proofing additives for corrugated board

Water treatment products

Bondtite (Pty) Ltd. A NTE Group Company

www.bondtite.com | www.nte.co.za

bondsa@bondtite.com | +27 33 386 1381

A S I A — PA C I F I C

23 accounting for approximately

producer and supplier of tungsten

40% of the world’s supply of

chemicals globally.”

tungsten presenting an opportu-

“I hope Vietnam can be proud

nity for the company to play a key

of Masan Resources’ ambition

role in the future of this market.

and ability to be a dominant player

“We’re independent from other

in a global industrial sector. We

producers,” he says. “The rest of

embody the “Vietnam can do” spirit,

the world is in a deficit as the likes

and we are strongly positioned

of China rely on tungsten for its

not only to significantly increase

industrial sector.

shareholder value, but more

“Masan Resources is the number

importantly, to enhance social

one primary TC producer Ex-Chi-

economic value as a representative

na, with 36% of the non-China

of Vietnam globally.”

market, and we have clear operational plans to become the largest

w w w. m i n i n g g l o b a l . c o m

HOME T O IND U S T R Y– L E A DING DIG I TA L B U SINE S S P L AT F OR M S

HAVE YOU SEEN OUR OTHER TITLES?

LEADERSHIP SHOWCASE

THE WORLD PLATINUM INVESTMENT COUNCIL

26

Putting platinum in pole position AS THE PINNACLE OF PRECIOUS METALS, THE WORLD PLATINUM INVESTMENT COUNCIL PLACES PLATINUM WHERE IT DESERVES TO BE WRITTEN BY

SEPTEMBER 2018

DA LE BENTON

27

w w w. m i n i n g g l o b a l . c o m

LEADERSHIP SHOWCASE

O

ne of the world’s great commodities,

standing of the market through our

greater than gold or copper, is

quarterly reports and notes.”

knowledge. In the cyclical mining

sector, understanding how, why and in

as a global market authority on

what way a market is fluctuating is

platinum investment. What’s going on

crucial – as is understanding why

in the platinum space? What does the

something is not changing or responding.

supply and demand look like today

“Historically speaking, there hasn’t been sufficient information to adequately

28

“We’ve since established ourselves

and tomorrow?”

The World Platinum Investment

describe the platinum market,” says

Council was formed in 2014 by the

Paul Wilson, Chief Executive Officer of

world’s six leading platinum producers

the World Platinum Investment Council.

- currently Anglo American

“The information out there just wasn’t

Platinum, Impala Platinum,

comprehensive enough and what we

Lonmin, Northam Plati-

strive to do is lead with research, and

num, Royal Bafokeng

data, to provide an objective under-

Platinum and Sibanye-

“ OUR MISSION REALLY, IS TO HIGHLIGHT WHAT MAKES PLATINUM AN ATTRACTIVE INVESTMENT ASSET AND INCREASE THE ASSETS UNDER MANAGEMENT IN PHYSICAL PLATINUM WORLDWIDE” — Paul Wilson, Chief Executive Officer of the World Platinum Investment Council

SEPTEMBER 2018

Stillwater – to develop the market for platinum investment demand.

How does it achieve this? Through actionable insights and targeted development.

“Our mission really, is to highlight what makes platinum an attractive investment asset and increase the assets under management in physical platinum worldwide,” says Wilson.

“The challenge is understanding how people invest, and what investment characteristics of platinum will be attractive to them.

This is achieved by understanding and communicating how platinum performs in the market.”

The WPIC has established relationships with key partners to increase the range and number of platinum investment products available to meet the needs of a wide range of identified investor groupings. This was not an “easy task” but one that the WPIC was keen to take on, Wilson notes. The council has also been the driving force behind successful market development initiatives with partners such as BullionVault, GraniteShares and UK Athletics.

“Historically there has been no way for these partners to provide or promote a platinum w w w. m i n i n g g l o b a l . c o m

29

LEADERSHIP SHOWCASE

investment product in collaboration with an authority on the underlying investment asset.

WPIC offers a platform that facilitates collaboration to promote platinum as an investment asset,” he says.

WIPC has also made great strides in identifying platinum investment opportunities in China, which accounts for the largest amount of annual platinum consumption globally – close to 2 million ounces per year.

30

Earlier this year, WPIC announced its first Chinese partner – Shenzen Hengfu Yingjia. The partnership is focused on

“While China has long been the world’s

developing platinum products

largest consumer of platinum, its platinum

including platinum bars, and is

investment infrastructure has yet to be fully

a significant step forward in fully

developed,” said Wilson.

realising the enormous potential

“This is the first of a number of platinum

of platinum investment in China.

product initiatives for Chinese investors that we expect to announce in the near future.”

The World Platinum Investment Council also acts as a communication channel and a resource for investors who are looking to invest in platinum. It commissions the Platinum Quarterly report produced by SFA Oxford; consulting analysts and engineers in mining, metals and commodities.

SEPTEMBER 2018

Platinum rock being moved on a conveyor belt

The report is designed to ensure greater

it’s something we shouldn’t try to

transparency of the global platinum market,

do. This is detailed data that is

by way of pulling together analysis on the

freely shared with the market

global above-ground stocks of platinum and

and WPIC subscribers, and our

an outlook for supply demand fundamentals.

contribution is to present the

Wilson notes that it was an important

data in a form most helpful to

decision to secure an independent third

investors and offer our view on

party to provide platinum market data.

related market developments

“SFA are Platinum Group Metal (PGM)

and dynamics. We strive to

experts and they assist us by conducting

assist investors in making more

in-depth analysis of the Platinum Market,”

informed investment decisions.”

he says.

“Ultimately, it’s objective data, which is hugely important. We don’t predict price and

“Our insights also appear to be helpful to a wide range of participants in the PGM mining industry.” w w w. m i n i n g g l o b a l . c o m

31

LEADERSHIP SHOWCASE

So, what exactly are the defining factors that affect the current platinum market? In today’s world, around 44% of all platinum is used in automotive applications mainly as a catalyst in emissionscontrol of diesel engines.

Jewellery, unsurprisingly, accounts for 32% of all platinum demand, with China representing 54% of that demand. In recent years, platinum has been utilised more and more in a variety of 32

SEPTEMBER 2018

“ THE CHALLENGE IS UNDERSTANDING HOW PEOPLE INVEST, AND WHAT INVESTMENT CHARACTERISTICS OF PLATINUM WILL BE ATTRACTIVE TO THEM. THIS IS ACHIEVED BY UNDERSTANDING AND COMMUNICATING HOW PLATINUM PERFORMS IN THE MARKET” — Paul Wilson, Chief Executive Officer of the World Platinum Investment Council

healthcare and medical applications, including cancer treatments.

Despite platinum’s prominent use in

automotive demand for platinum.

The Volkswagen emissions scandal which emerged in 2015 has created

cleaning emissions from diesel cars, still

challenges for diesel automakers and

between 30% and 50% of the passenger

it is unclear if pollution concerns will

cars on the road in European countries,

see an ongoing decline in diesel car

platinum use in electric vehicles is

sales in Europe.

becoming more prominent. Platinum is

“It is fair to say there is significant

used to generate electricity from

anti-diesel sentiment among the public

hydrogen in fuel cell electric vehicles.

and investors but I personally believe

Wilson notes that if as little as 6% of

that the impact on platinum demand is

worldwide car production became fuel

misplaced,” he says.

cell EVs then it would double the current

“Automakers know that falling diesel 33

w w w. m i n i n g g l o b a l . c o m

LEADERSHIP SHOWCASE

sales have resulted in an increase in sales of gasoline rather than battery cars. Gasoline cars emit 20% more CO2 than diesel cars and automakers face heavy fines if they miss EU CO2 targets. They are more likely to clean diesel emissions further to keep enough diesel cars in their fleet to avoid fines; some already have. We do know that higher platinum loadings is one way emissions can be reduced.”

“Go out and buy a new model diesel car right now and they will emit far less NOx (oxides of nitrogen) than EU emissions rules require.”

Wilson notes that this isn’t a universally 34

accepted mind-set, with press, consumers and even politicians still lambasting all diesel cars – even those with very low emissions.

PLATINUM ON THE GLOBAL STAGE AT ATHLETICS WORLD CUP Platinum is also becoming prominent in the world of athletics, with a platinum trophy presented to winners of the inaugural Athletics World Cup earlier this year.

Hosted at the London Stadium in the United Kingdom, the Athletics World Cup brought together 2017’s top ranked eight nations to compete in eight events. The winners were awarded the world’s first entirely Platinum Trophy, which was sponsored by the WPIC and believed to be the SEPTEMBER 2018

most valuable trophy ever made.

“Platinum is one of the Earth’s rarest and most sought-after precious metals. Therefore, it’s a natural choice for recognising the pinnacle of athletic achievement. This historic event was the first chance for platinum to be seen in this context reminding us of platinum’s long-standing premier status and that it is an investment asset.” says Wilson.

Ultimately, for Wilson, the mission and the long-term vision of WPIC is a simple one.

“We want more people to invest in platinum because it’s an attractive investment asset,” he says.

“Platinum really is an incredible precious metal and through our partnerships in China, the US and all over the world, we are cementing its position as the true pinnacle of precious metals.”

w w w. m i n i n g g l o b a l . c o m

35

S.M.A.R.T Specific, Measurable , Attainable, Realistic, Timely

is what would define “Mines of the Future”.

“Smart Mining 1.0” aims at bringing together several thought-provoking sessions that promises to be an eye-opener and spark discussion within the industry to Build Innovation Roadmap, Improve Productivity from Mine to Market and Promote Long Term Sustainability.

18+ hours of face-to-face networking

Peer-to-peer interactions

New Cutting Edge Technologies and Innovations

20+ Thought Leaders & Expert Speakers

Extraordinary value for your time

Book YoUR SEAT Now! Kindly register via our website or write to

hello@ikonnect.world

CODE : GRPSM01

20 - 21 September 2018 | The Adelaide Hotel Downtown, Toronto, Canada Our Smart Speakers

SPEAKER

SPEAKER

Joe AbiDaoud

Tobias Frank

Vice President Information Technology, Yamana Gold Inc.

CTO VALE SA

SPEAKER

FEATURED PANELLIST

Duane Parnham

Jason Kozar Director IT

Hudbay Minerals, Canada

Chairman of Board & Director Giyani Metals Corp & Broadway Gold Mining Ltd.

SPEAKER

SPEAKER

Marcus Thomson

Manager, Innovation & Prosperity Office, Centre for Excellence in Mining Innovation

FEATURED SPEAKER

Tejas Kashyap

Mineral Resource Specialist Government of the Northwest Territories, Yellowknife

SPEAKER

Terry Cutler

Vice President Cyber Security SIRCO

Arun Narayanan

Group Head- Data Analytic Anglo American

Our Smart Partners Gold Partner

Gold Partner

StrateGiC Partner

networkinG Partner

diGital Solution Partner

SuPPortinG CounCil

Start-uP Pavilion

Channel Partner

Digital Mining Solutions

SuPPortinG orGanizationS

Media PartnerS

afsea AFRICAN SUSTAINABLE E N E R GY A S S O C I AT I O N

SMART COMPUTING FOR INNOVATION

FoR PARTNERSHIP oPPoRTUNITIES: +971.4.455.8660 / +1.416.800.9976 +91.984.528.7972 partnership@ikonnect.world www.ikonnect.world

TECHNOLOGY

2018 the rising tide of Cobalt

38

SEPTEMBER 2018

39

With decade-high prices, how is the mining industry responding to the rise of cobalt? First Cobalt Corp is positioned to lead the way in the future of cobalt WRITTEN BY

DA LE BENTON

w w w. m i n i n g g l o b a l . c o m

TECHNOLOGY

2018

may very well go down in history as a key turning point for the cobalt

industry. We can already point to the rise in demand for electric vehicles (EVs) dependent on ion lithium batteries, a notable increase in cobalt operations all over the world and, perhaps most notably, one of the biggest

technology companies in the world redefining its cobalt supply chain.

It is the rise in battery technology (cobalt is a key component of lithium ion batteries) that has completely changed the industry’s outlook on the metal. In fact, Trent Mell, President and CEO of First Cobalt Corp, 40

believes that on a historic level cobalt has “somehow been forgotten”.

“Cobalt has always been seen as a by-product,” he says. “It was often overlooked and now we are seeing a lot of potential in like Canada where historically it just hasn’t been explored.”

First Cobalt is a vertically integrated North American pure-play cobalt company. Its ambition? To be the largest in the world. The company currently has three assets across North America: the Iron Creek Project in Idaho, the Canadian Cobalt Camp, and the only permitted cobalt refinery in North America capable of producing battery materials.

First Cobalt was formed with cobalt as a primary focus, even if that cobalt is still a by-product. Currently, the major source SEPTEMBER 2018

of cobalt around the world is the Democratic Republic of Congo, but Mell wants to disrupt this status quo.

“With Idaho and Ontario, we have what I think are two of the most prospective camps outside of Africa,” he says. “Our vision is simple: to mine, refine and sell cobalt in North America. It could be to Apple, to Tesla or to GM, it doesn’t matter who. There is currently no domestic supply in Canada and the US and I think that First Cobalt is positioning itself to be the first one to do exactly that.”

The company was only founded in 2017, but over the course of its first 12 months the Canadian firm has seen its market cap go from $15.3mn to over $190mn.

Mell attributes this success to First Cobalt and its leadership team focusing on cobalt at a time where some of the major companies around the world are “playing catch-up”.

He points to a statement made by Ivan Glasenberg, Chief Executive of Glencore, in which w w w. m i n i n g g l o b a l . c o m

41

TECHNOLOGY

he warned that western carmakers

locking up cobalt supply,” Mell says.

must wake up to the limited supply

“That’s what we are doing with our

of cobalt in the world, identifying

North American operations. We locked

that recent activity from China and

up the cobalt supplies in Ontario and

streaming agreements will leave

Idaho before any other company woke

companies struggling to catch up.

up to the potential of these camps.

“We saw that headline and I think he’s right in some regards. A number of

It’s a real differentiator for us.”

Currently, First Cobalt is not actively

Chinese companies are signing cobalt

mining. Its portfolio contains a number

streaming agreements and essentially

of high potential exploration properties,

42

“ OUR VISION IS SIMPLE: TO MINE, REFINE AND SELL COBALT IN NORTH AMERICA. IT COULD BE TO APPLE, TO TESLA OR TO GM, IT DOESN’T MATTER WHO. THERE IS CURRENTLY NO DOMESTIC SUPPLY IN CANADA AND THE U.S AND I THINK THAT FIRST COBALT IS POSITIONING ITSELF TO BE THE FIRST ONE TO DO EXACTLY THAT” — Trent Mell, President and CEO of First Cobalt Corp

SEPTEMBER 2018

one of which contains more than 50 past

America, which coupled with its close

producing mines. First Cobalt has also

proximity to some of the biggest

spent the last year doing what Mell

manufacturers that will require cobalt

describes as “grassroots exploration”,

– Tesla, Apple, GMC, Honda and Ford

with modelling, prospecting, mapping

to name a few – leaves First Cobalt

and drilling programmes in order to better

finely positioned within this surging

understand and determine the potential

market. “As a company we are in

the company has within its portfolio.

a good jurisdiction and we are capital

The company also has the only

market friendly,” says Mell. “I think that

permitted cobalt refinery in Northern

the first mover advantage that we have

43

w w w. m i n i n g g l o b a l . c o m

TECHNOLOGY

44

has some really great dividends for us here in North America.”

Demand for cobalt is on the up

as future upswings in the market.

Mell recognises as much, acknowledging that cobalt is reaching decade

and the supply of cobalt looks set to

high market prices. What this does is

grow tighter and tighter, but this is

incentivise more operators, be them

an industry that is cyclical in nature.

major or junior, to find more cobalt.

Rewind the clocks back a few years

For First Cobalt, Mell can take

and cobalt did not demand a seat

comfort in the future outlook

at the table like it does today, and

for cobalt based on the solid

while it is extremely unlikely that

foundations that the company’s

this would happen again, miners and

portfolio is built upon. “Look at

organisations must always prepare

the outlook with regards to

for any potential downturns as well

EVs. Right now, billions of

SEPTEMBER 2018

45

“LOOK AT THE OUTLOOK WITH REGARDS TO EVS. RIGHT NOW, BILLIONS OF DOLLARS ARE BEING INVESTED INTO R&D AND INTO PRODUCTION AND INTO GIGAFACTORIES. THE INFRASTRUCTURE THAT HAS BEEN DEDICATED TO CURRENT EV BATTERIES TELLS YOU THAT WE ARE ON A PATH OF NO RETURN” — Trent Mell, President and CEO of First Cobalt Corp w w w. m i n i n g g l o b a l . c o m

TECHNOLOGY

dollars are being invested into R&D and into production and into gigafactories. The infrastructure that has been dedicated to current EV batteries tells you that we are on a path of no return.”

This path of no return only strengthens the notion that 2018 has been a real turning point for cobalt. Mell goes as far as saying it’s been a “crazy year”, and notes that 2019 could surpass it. “The frenzy is real,” he says. “As a miner it is unlike anything we’ve ever 46

seen before but we know there is a real need for this product.”

First Cobalt is ready for the future of cobalt. Through strategic acquisitions of North American cobalt assets, First Cobalt can not only ride this wave,

SEPTEMBER 2018

Click to watch: ‘First Cobalt 2018 Final’ 47

it can lead the way far greater than some of the current major mining companies.

Despite his enthusiasm, Mell does keep a level head on his shoulders. “We know what we

“THE FRENZY IS REAL. AS A MINER ITS UNLIKE ANYTHING WE’VE EVER SEEN BEFORE BUT WE KNOW THERE IS A REAL NEED FOR THIS PRODUCT” — Trent Mell, President and CEO of First Cobalt Corp

have to do as a company,” he says. “We have to keep our heads down and focus on our drilling programs and our exploration activities and work 24/7 to try and be the first company to be able to produce new, meaningful supply to this market.” w w w. m i n i n g g l o b a l . c o m

October 29-30 2018

Meet the industry leaders who shape the Future of Mining in the Americas Confirmed conference agenda speakers include:

Ricardo Adame

Elena Mayer

Janice Zinck

John Mullally

Afzal Jessa

Gordana Slepcev

Pamela Hackett

Arun Narayanan

Group Executive Global Communications Newmont

Chief Digital Officer Vale

President & CEO Women Who Rock

Chief Operating Officer Anaconda Mining

Platinum Partners:

President, CIM & Dir. Green Mining Research Natural Resources Canada

CEO Proudfoot

Director, Government Affairs and Energy Goldcorp

Group Head, Data Analytics Anglo American

Lanyard Sponsor:

Silver Partners:

Tech Start-up Partners:

Supported by:

Established

1909

NoticiasdeMineracao.com

WHERE? Embassy Suites by Hilton Denver Downtown Convention Center Denver, USA

ICKET T R U O Y K O BO th September 0 3 by % and SAVE 15 FM15 Apply promo

code

The Future of Mining Americas takes place from 29-30 October in Denver and has been created to connect C-suite, Heads and Managers of Mine Operations and Mining Equipment, Technology and Services (METS) providers from top enterprises around the globe to debate and define the future mining landscape on a strategic level across the Americas, enabling attendees to discover the latest innovations and technologies which are driving mine productivity, mine efficiency and mine safety.

WHY ATTEND? A packed agenda contains all the key themes shaping the future strategic direction of the industry.

Leading experts from the mining supply chain providing essential industry learning over two days.

Includes dedicated curated content with focus on Exploration, Development, Management, Infrastructure and Leadership.

Numerous networking opportunities with fellow attendees and sponsoring solution providers as over 300 people are expected to be in Denver.

To download the full agenda and register visit americas.future-of-mining.com or email events@aspermontmedia.com

T O P 10

50

mining companies With the increased and continued demand for energy and materials that a growing global population needs in order to thrive, mining companies around the world provide much-needed resources, jobs and more.

The following 10 mining companies are the largest in the world according to data related to their 2017 market capitalisation WRITTEN BY

DALE BENTON

SEPTEMBER 2018

51

w w w. m i n i n g g l o b a l . c o m

T O P 10

09

Anglo American Headquartered in London, UK and Johannesburg, South Africa, Anglo American produces about 40% of the world’s platinum, making it the largest company to do so. With additional operations in North America, Africa, South America, Asia, Europe and Australasia, Anglo American is also a major producer of precious materials such as nickel, iron ore, diamonds, coal and copper. Its market capitalisation 52

10

Fresnillo With a 2017 market capitalisation of $14.54bn, Fresnillo is the largest primary silver producer in the world. The company is also the second-largest gold producer in Mexico. Based in Mexico with its headquarters in Mexico City, the precious metals mining company incorporated in the United Kingdom (UK). It operates three silver and gold mines in Mexico: one each located in the states of Zacatecas, Sonora and Durango. www.fresnilloplc.com

SEPTEMBER 2018

was $17.33bn in 2017. www.angloamerican.com

07

Barrick Gold Barrick Gold boasted $18.28 billion in 2017 in market capitalization. Based in Toronto, Canada, the company maintains mining operations across the globe including those in Canada as well as Zambia, Papua New Guinea, Chile, Argentina, Saudi Arabia, Peru, Australia and the Dominican Republic.

It is the world’s largest gold mining company with over 75% of its production of the precious metal coming

08

from the Americas. www.barrick.com

Newmont Mining Newmont Mining, a mining company based in Colorado, United States, is the second-largest producer of gold in the world. With $17.51bn in market capitalisation as of 2017, Newmont Mining has active gold mines in Australia, Peru, New Zealand, Indonesia, Ghana and the United States. The company also mines copper and silver and maintains numerous joint venture relationships with other entities around the world. www.newmont.com

w w w. m i n i n g g l o b a l . c o m

53

T O P 10

05

Vale Headquartered in Rio de Janeiro, Brazil, Vale is the world’s largest producer of both nickel and iron ore.

It also produces kaolin, copper, potash, cobalt, ferroalloys and bauxite. The company boasted a market capitalisation of $40.17bn in 2017 and is one of the country’s largest logistics operators.

In addition to its mining operations, Vale also operates an expansive network of logistics solutions comprised of ports, 54

06

Coal India With a market capitalisation of $24.62bn as of 2017, Coal India is a state-controlled enterprise headquartered in West Bengal, India. The company is the world’s largest producer of coal and contributes about 82% of the country’s total coal production. It operates 81 mining areas that span eight states of the country. These are comprised of a combination of open cast, underground and mixed mines. www.coalindia.in

SEPTEMBER 2018

railroads and ships to better transport its products. www.vale.com

03 China Shenhua Energy China Shenhua Energy is both the largest state-owned mining company in Mainland China and the world’s largest coal mining enterprise. In addition to producing and selling coal and electric power, China Shenhua Energy also operates coal mines and an integrated seaport and railway network that it uses to transport coal. Operating pri-

04

Glencore Xstrata

marily through its subsidiaries, China Shenhua Energy maintains both underground and open cut mines that enable it to sell millions of tonnes of coal each year. In 2017, the company posted

Glencore Xstrata is headquartered in Switzerland and was ranked as the

a market capitalisation of $62.4bn. www.csec.com

tenth largest company in the world according to the Fortune Global 500 list. Not only is Glencore Xstrata the country’s largest company, it’s also the world’s largest commodities trading company. It maintains a 60% share of the world’s internationally tradeable zinc and 50% of its copper. The company also produces ferroalloys and nickel. Glencore Xstrata posted a market capitalisation of $51.37bn as of 2017. www.glencore.com

w w w. m i n i n g g l o b a l . c o m

55

T O P 10

56

02

Rio Tinto Rio Tinto, as one of the largest metals and mining companies in the world, posted a market capitalisation of $73.79bn in 2017. A multinational firm, Rio Tinto has its headquarters in Melbourne, Australia and London. Though it supports operations on six continents, the bulk of its activities are centred in Canada and Australia. Rio Tinto devotes the major portion of its operations in the extraction of minerals such as iron ore, uranium, copper, aluminium, diamonds and coal. The company also expends significant resources to refining iron ore and bauxite. www.riotinto.com SEPTEMBER 2018

57

01

BHP Headquartered in Melbourne, Australia, BHP is the largest mining company in the world based on its market capitalisation of $87.86bn in 2017. In addition, the company is the third-largest in Australia with more than $38bn in revenue during that same year. In addition to potash, coal, copper, iron ore, nickel and uranium, BHP also sells and markets natural gas and petroleum. It has mines in the United States, Australia, Canada, Peru, Mexico, Columbia and Chile. www.bhp.com

w w w. m i n i n g g l o b a l . c o m

The ONLY Event Dedicated To

PROCUREMENT AND SOURCING FOR THE MRO CATEGORY

Sa Re

October 29 - 30, 2018 | Fort Worth, TX

ave and extra 25% with code PMRO18SCD. egister at procureconmro.com

EVENTS & A S S O C I AT I O N S

Mining Global looks at the key industry events for the rest of 2018 and early 2019 WRITTEN BY STUART HODGE

22–25 SEPTEMBER

SEG 2018: Metals, Minerals, and Society 21–22 SEPTEMBER

60

[ KEYSTONE, USA ]

Smart Mining 1.0

The SEG 2018 Conference looks ahead

[ TORONTO, CANADA ]

at the metals and minerals required to

Disruption & Digital Transformation is

meet the demands of society. This year’s

a reality and mining is going through

event will feature some fascinating ple-

one of the most intense periods of

naries on breakthroughs in economic

change and transformation.

geology; integrating geology, geochem-

As mines move towards advanced

istry, and geophysics; integrating mineral

digital technologies to support safer

and petroleum systems approaches to

and more productive mines, implemen-

sedimentary basins; and the implications

tation challenges continue to persist.

for society.

“Smart Mining 1.0” will bring together

The wider focus of the event, which

several thought-provoking sessions

also incorporates field trips, technical

that promise to be an eye-opener and

sessions and workshops is on the

spark discussion within the industry to

state of knowledge in important ore

transform with clarity and confidence

deposit types and the future of

into Mines of the Future.

research, education, and exploration.

www.ikonnect.world/SmartMining

www.seg2018.org

SEPTEMBER 2018

02–04 OCTOBER

Operational Excellence & Risk Management

18–20 OCTOBER

The Operational Excellence & Risk Man-

China Mining Conference and Exhibition 2018

agement Summit is Europe’s only event

[ TIANJIN, CHINA ]

dedicated to operational excellence in

From this session, China Mining

hazardous industries. Taking place in

Congress and Expo will be hosted

London 2-4 October, this executive level

by China Mining Association and

conference will bring together over 100

organized by Tianjin Minexpo Co., Ltd.

Heads of Operations, HSE, ORM and

China Mining consists of three parts —

Operational Excellence from manufac-

Conferences, exhibitions and

turing, energy, chemicals, resources,

featured events.

transportation and more – all industries

The conferences attract the world’s

facing high levels of operational risk.

policy makers and the industry leading

At the event you’ll be able to hear from

voice in presenting the hottest topics

over 40 world class innovators, all pre-

and providing insightful information.

senting at the event and there to show

The topics also cover mining industry

you how to adopt the culture, systems

trends, the global mineral commodity

and processes of the world’s Highest

market, domestic and international

Reliability Organisations.

investment opportunities, sustainable

www.opexsummiteurope.iqpc.com

mining development, geological surveys,

[ TBC, LONDON ]

mining technologies and equipment, etc.

www.en.chinamining-expo.org w w w. m i n i n g g l o b a l . c o m

61

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences from around the world

62

19–21 NOVEMBER

Complex Orebodies Conference 2018 [ BRISBANE, AUSTRALIA ] Aiming to attract a wide range of industry

supply must be met by the mining of

leaders, Complex Orebodies looks to

increasingly difficult deposits.

address one of the greatest future

Corporate leaders, operators, service

challenges for mining – that demand

providers, financial institutions and

for raw materials will continue to grow

researchers will attend and share their

as supply begins to diminish.

perspectives and unique solutions to

Future supply of raw materials will

the variety of challenges across the

come from a combination of new mine

entire range of development activities

discoveries, and much of the future

www.complexorebodies.ausimm.com

SEPTEMBER 2018

22–23 NOVEMBER

Mining Investment

25–26 FEBRUARY 2019

Mining Investment London is a strategic

Mining Investment Middle East

mining conference and exhibition for

[ SHERATON DUBAI CREEK HOTEL ]

the leaders of the mining, quarrying

Mining Investment Middle East is

and construction materials industries,

a strategic mining conference and

bringing together 200 attendees from

exhibition for the leaders of the

15 countries.

mining, quarrying and construction

Ministers, mining companies, investors

materials industries, bringing together

and service providers travel from all over

170 attendees from 18 countries.

Europe, Americas, Asia, Middle East

Ministers, mining companies, inves-

and Africa for two days of partnering,

tors and service providers travel

networking and business matching.

from all over Middle East, Asia,

Join us at an invaluable platform to

Africa, Europe and North America for

seek new partnerships, new business

two days of partnering, networking

and new opportunities.

and business matching.

www.mininginvestmentlondon.com

mininginvestmentmiddleeast.com

[ LE MERIDIEN, LONDON ]

w w w. m i n i n g g l o b a l . c o m

63

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences from around the world

25–26 MARCH

Future of Mining Sydney [ SYDNEY, AUSTRALIA ] 64

03–06 MARCH

PDAC 2019

[METRO TORONTO CONVENTION CENTRE, CANADA ]

The Future of Mining will bring together C-suite, Heads and Managers of Mine Operations, METS and Support Services from top enterprises around the globe to debate, come up with

PDAC: The World’s Premier Mineral

answers and define the current and

Exploration & Mining Convention is the

future mining landscape.

leading convention for people, compa-

The Future of Mining will address the

nies and organizations in, or connected

key strategic and operational questions

with, mineral exploration. In addition to

that matter from project/operations

meeting over 1,000 exhibitors, 3,495

level management through to the

investors and 25,606 attendees from

boardroom. This event is designed to

135 countries, you can also attend

step away from the traditional trans-

technical sessions, short courses and

actional conference model to provide

networking events.

a transformational experience.

www.pdac.ca

www.sydney.future-of-mining.com

SEPTEMBER 2018

23–25 APRIL

27–29 MARCH

Mining World Russia 2019

ResourceStocks Sydney 2019

[ MOSCOW, RUSSIA ]

[ SYDNEY, AUSTRALIA ]

World Russia is the most representative

The ResourceStocks Sydney Event

international exhibition of machines and

builds on the success of gold, silver,

equipment for mining and processing

copper and energya mineral digital

industry in Russia in terms of composi-

investor hubs, to curate meetings

tion of participants and visitors.

of investors and projects within the

Organised by The ITE Group, Mining

Precious Metals (Gold & Silver), Base

World Russia is an efficient business

Metals (Copper and Zinc) and Energy

platform for communication between

Minerals (Lithium, Cobalt and Graphite)

manufacturers and suppliers and

commodity groups around the world.

experts in mining facilities, mining

A combination of private investment

and reining plants as well as wholesale

meetings, structured networking and

trading companies from across

interactive discussion groups and key-

Russia’s industry.

note speeches provides an exclusive

With seminars on how to become a

opportunity for attendees to focus on

mining supplier of choice, to conferences

the best global opportunities in an

on IT and automation, mineral deposit

immersive two-day event.

exploration technologies and future

www.resourcestockssydney.com

trends, the 235d international Mining

The “Best Exhibition in Russia”, Mining

World Russia is one to mark in the diaries.

www.miningworld.ru/en-gb w w w. m i n i n g g l o b a l . c o m

65

Smart mining

As Prime Media Partners to the very first Smart Mining 1.0 conference, Mining Global sits down with Ritika Sinha, a UAE-based entrepreneur and creator of the event, to find out more 68

SEPTEMBER 2018

S

eptember heralds the start of another season of conferences and events across the globe in the mining industry.

Industry leaders, explorers and developers, contractors and financiers from all over the world converge to promote not only their projects and plans, but to discuss the latest industry trends and the future of the industry.

This year however, there is a brand-new event which has attracted a small but very select cast and promises to offer a uniquely

Event speaker: Marcus Thomson, Centre for Excellence in Mining Innovation

relevant platform for mining technology and innovation professionals. Scheduled for September (20-21), The Adelaide Hotel in Toronto will play host to the very first Smart Mining 1.0.

69

Organised by iKonnect, the brain-child of UAE-based entrepreneur, Ritika Sinha, the aim of Smart Mining 1.0 is to bring senior executives from some of the world’s most renowned mining operations and service companies to network and exchange

Event speaker: Leon Cosgrove, Wipro

knowledge and strategic information over a series of seminars, panel and round-table discussions and Q & A sessions with a view to fostering greater collaboration and thought-sharing within the sector.

Ritika has leveraged her considerable experience as a conference organiser and expertise in both mining and IT to put together an impressive speaker-list of some of the mining industry’s most innovative thinkers.

Event speaker: Elena Mayer, President and CEO, Women Who Rock w w w. m i n i n g g l o b a l . c o m

SMART MINING 1.0

Ritika, tell us about yourself and your connection with the mining industry?

70

First and foremost, I call myself a “mining enthusiast” as I have been associated with the mining industry for the past six years.

Over the course of my career I have been responsible for conceptualising and executing events for mining all around the world, which have touched upon a variety of topics including: IT, innovation, health & safety, water management, energy efficiency and sustainability to name just a few.

Organising this event and getting it of off the ground has taken a lot of time and effort, but I would personally like to thank Mining Global for giving Smart Mining 1.0 a space The Adelaide Hotel, Toronto

Event speaker: Dr Sean Dessureault, “Innovation Evangelist” SEPTEMBER 2018

to be recognised on the world stage and partnering with us for the inaugural event.

It is key to work together to promote events like Smart Mining 1.0 and so I extend a big thank you to all of our event sponsors for making this possible as well as our speakers I couldn’t be happier with the line-up.

Tell us more about the core idea behind Smart Mining 1.0?

There couldn’t be a more exciting time for the mining industry than right now.

Technology is evolving at a greater pace than we could ever have anticipated, and for mining to keep up it is important to innovate and be “S.M.A.R.T.” Innovation is not just about technology; it’s about changing our mindsets and imaginations.

What is your definition of S.M.A.R.T.?

Event speaker: Diego Molina, Open Mineral

The Smart Mining 1.0 concept came to light through an idea that, in order for mining to transform, targets and visions must be goal “Specific”, should be “Measurable”, “Attainable” and have “Realistic “expectations resulting in “Timely” growth.

Themed as “Building Mines of the Future Together” Smart Mining 1.0 intends to bring the best minds in the business year on year to create a platform for the industry to gain knowledge, learn and network. w w w. m i n i n g g l o b a l . c o m

71

SMART MINING 1.0

We hear that major Canadian players such as Hudbay, Agnico Eagle and Lundin are involved…

Relevant stakeholders are considered essential for developing a shared vision for the mining industry. The idea is to bring all stakeholders involved in mining from associations, academia and regulatory bodies to exchange ideas and create a collaborative approach that can translate into business suitability.

72

The event has also attracted sponsorship from major technology companies such as AWS, Hitachi Solutions, Wipro and Microsoft.

Do you feel this is indicative of the increasing role that technology and digitisation is playing in today’s mining industry?

Technology is changing at an incredible pace and bringing the right technology providers gives our attendees an opportunity to pick solutions that are the right fit for their business.

Our sponsors are bringing best in class services and real time success stories that will benefit attendees. Some great sessions surrounding IoT technologies will change miner safety, enabling digital mine – worker mobility solutions & devices, using artificial intelligence and machine learning to SEPTEMBER 2018

improve productivity and much more will be discussed by our partners over the two days.

Is Smart Mining 1.0 a oneoff event?

No, as the name suggests, we hope to build on the success of the forthcoming event with a series of conferences around the globe. Smart Mining 2.0 is already being set up for the end of September 2019 in Canada.

We are also working to have an extended series of Smart Mining

73

in South America in 2019, where we hope to attract speakers of the quality of Vale’s Tobias Frank, Lundin’s Oscar Cueva and Antamina’s Rafael Estrada, who will all be with us in Toronto.

Smart Mining promises to be a fascinating opportunity to discover some of the most innovative ideas being developed and implemented within the sector and there is still time to register to the event.

Visit the Smart Mining 1.0 website for full event details as well as a comprehensive list of speakers.

Mining Global will be reflecting on the two days in Toronto in a post-event special focus with exclusive interviews with CEMI’s Marcus Thomson, Michel Lamba from Stornoway Diamond and Wipro’s Leon Cosgrove, among others, so be sure to watch this space.

w w w. m i n i n g g l o b a l . c o m

74

SEPTEMBER 2018

EUROPE

DUNDEE PRECIOUS METALS:

EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

w w w. m i n i n g g l o b a l . c o m

75

D U N D E E P R E C I O U S M E TA L S

THROUGH THE TRANSFORMATION OF THE HISTORIC CHELOPECH MINE, DUNDEE PRECIOUS METALS LOOKS TO GROW THROUGH OPERATIONAL EXCELLENCE

I

n the mining industry, there is a belief for some that it is often the smaller exploration and mining companies that take the biggest risks which define

and redefine the status quo.

Dundee Precious Metals (DPM) defines its vision as a progressive gold mining company that unlocks

76

and delivers superior value through innovation and strong partnerships with stakeholders.

One of the company’s goals, is to grow its current mining production to around half a million ounces of gold per year over the next few years. It looks to achieve this by developing a number of projects across its portfolio, which includes exploration and development projects in Bulgaria, Canada and Serbia.

“Part of our strategy is built around possessing the capability to execute projects on time and within budget,” says John Lindsay, Senior Vice President, Project Development. “But it’s also about having the ability to scope a project and to actually understand what makes a project the right project.”

Dundee Precious Metals strives to deliver excellence in sustainability and to create value for all its shareholders, be they investors, government or the SEPTEMBER 2018

EUROPE

“PART OF OUR STRATEGY IS BUILT AROUND POSSESSING THE CAPABILITY TO EXECUTE PROJECTS ON TIME AND WITHIN BUDGET” — John Lindsay, Senior Vice President, Project Development

77

local community. It aims to deliver this excellence through its commitment to its six core values; safety, dignity and respect, environmental responsibility, community investment, continuous improvement and transparency.

Nikolay Hristov, SVP, Sustainable Business Development, believes this commitment plays a key role in propelling Dundee forward as a company.

Hristov played a lead role in the company’s rehabilitation of its Chelopech mine, located in Bulgaria. Chelopech is an historic mining operation with production starting back in 1954. Over the course of its lifetime, w w w. m i n i n g g l o b a l . c o m

D U N D E E P R E C I O U S M E TA L S

more than 19 million tonnes of ore

located very close to the nearby village,

have been produced.

not a single square meter of land had

Dundee Precious Metals acquired the mine in 2003 and since then,

between the community and the other

has reinvested the vast majority of

surrounding communities, not just that

its profits to transform the mine into

village, has been a very important com-

a world class operation.

ponent in this journey which is at the very

This transformation started by re-examining the environmental impact of the mine.

“When we acquired the mine there wasn’t much thought given to the environmental impact of the operation,” 78

been rehabilitated. So, the relationship

says Hristov. “Even though the mine is

core of our strategy.”

As a mining operation, the importance of a relationship with a local community and the local government can be the difference between success and failure.

Hristov believes that the key to achieving environmental sustainability

Click to watch: Video timelapse Krumovgrad August 2018

SEPTEMBER 2018

NEXT GENERATION BLASTIQ™

INTEGRATED TECHNOLOGY SOLUTIONS TO OPTIMISE EVERY BLAST

Reduce the overall cost of drill and blast operations

Improve productivity

Improve safety

Facilitate regulatory compliance

The next generation BlastIQ™ Platform is a cloud-based digital platform designed specifically to enable continuous improvement of blasting outcomes.

From pre-blast modelling through to post-blast measurement and analysis, the BlastIQ™ Platform delivers the data, benchmarks and insights needed to ensure sustainable, cost effective improvements in blast performance.

To learn more about the BlastIQ™ Platform and how it can support your operations today, please contact your local Orica representative, or visit orica.com/BlastIQ

D U N D E E P R E C I O U S M E TA L S

is born through stakeholder relationships and he identifies the local community as a key stakeholder.

This is echoed by Lindsay. “It’s doing well by doing good. So, if we do the right things in the communities and the countries that we work in then we will succeed as a business. This is a progressive and a credible company that’s going to benefit communities and that allows us to grow.”

A mining company can walk the talk with regards to having a social licence to operate, but it has to be able to point to some consid80

erable successes or achievements that prove it is delivering on its promises.

For Dundee Precious Metals, the most convincing proof that it is indeed doing things right is the company’s Krumovgrad development project in south-eastern Bulgaria. With the company targeting first gold production

“THE RELATIONSHIP BETWEEN THE COMMUNITY AND THE OTHER SURROUNDING COMMUNITIES, NOT JUST THAT VILLAGE, HAS BEEN A VERY IMPORTANT COMPONENT IN THIS JOURNEY WHICH IS AT THE VERY CORE OF OUR STRATEGY” — Nikolay Hristov, Senior Vice President, Sustainable Business Development

SEPTEMBER 2018

EUROPE

81

in late 2018, and adding more than

would not be successful.”

100,000 ounces per year to the compa-

The company took the project

ny’s production portfolio, Krumovgrad

back to the drawing board, taking

is a project that was “unlocked” by

into consideration the community

applying the company’s community

feedback and retooling its plans

relationship model, that was developed

based on redesigned tailings and

over the years at Chelopech.

processing flowsheet in order to

“It has a long history,” says Lindsay.

“We presented an initial project back in 2010 but there were a number of

successfully develop Krumovgrad as a sustainable operation.

“It demonstrated to the community

concerns from the local community

that we are a company that is pre-

regarding a tailings system and the

pared to listen and prepared to walk

processing method. It was clear that

the talk,” he says. “Originally we were

if we continued down that path we

trying to manage these discussions w w w. m i n i n g g l o b a l . c o m

PROVEN PERFORMERS D U N D E E P R E C I O U S M E TA L S

MINING SAFELY. MINING MORE. MINING RIGHT.

Cat mining machines move more than half the material at mines around the world. The reason? They move more material at a lower cost. Our off-highway trucks, front shovels, wheel loaders and dozers combine time-tested design with the latest in proven technology. So you get faster speeds on grades for higher productivity and greater fuel efficiency. The machines have integrated information systems and data you can use to extend component life, improve your mine`s efficiency and lower your operating costs.

To start moving more, learn more. Contact your Cat Dealer today or visit www.cat.com/mining.

Industrial Equipment and Structural Steel

Skymont was founded in 1999 with main activity of steel fabrication for the mining, chemical and oil & energy industries.

Our goal is to offer high quality products, loyal customer support, implementation of innovative materials and technologies in the following areas: • Parts fabrication. Laser cutting, punching,

machining, press machine, spindle.

• Steel structure fabrication.

• Fabrication of industrial steel equipment.

• Assembly of steel structures, equipment and installations.

+359 38 622999 diana.kondova@skymont.bg milena.vasileva@skymont.bg

www.skymont.bg

Over the years, we have become a reliable partner for global companies like Siemens, Dundee Precious Metals, General Electric, Cullum, Clarcor.

Skymont is certified under EN ISO 9001:2015, EN ISO 14001:2015, BS OHSAS18001:2007, EN 1090-2 EXC3, EN ISO 3834 Part 2.

EUROPE

remotely and we soon realised we

While Chelopech is not the compa-

needed to be talking face-to-face

ny’s only operation, it is a cornerstone

with people in the community. It really

of Dundee Precious Metals’ vision

paid dividends for us and gave us far

of delivering superior value through

more credibility as an organisation.”

innovation and strong partnerships.

In addition to the strong support of

Innovation is key to Chelopech as

local communities, Dundee’s approach

the company has invested heavily in

has garnered the support of other

developing the mine to be one of the

like–minded partners: In 2016 the

most digitally enabled mining opera-

European Bank of Reconstruction

tions in the industry today.

Development (EBRD) invested slightly

Dundee Precious Metals implemented

more than $43 million in the company

a ubiquitous wireless network throughout

and noted at the time that the “partner-

the mine, as well as innovative hardware

ship will enable us to work together to

solutions that send execution information

further raise standards in the mining

from the underground mine directly to

sector, focusing on innovation, sustain-

the surface to capture, monitor and gain

ability and employment opportunities”.

valuable insights. w w w. m i n i n g g l o b a l . c o m

83

D U N D E E P R E C I O U S M E TA L S

FACT

Social license to operate

84

It is incumbent on all mining companies to find ways of operating responsibly, and to demonstrate social and environmental responsibility in credible and consistent ways.

Operating responsibly has many faces, including maintaining strong relationships with our stakeholders and minimizing harm to the environment.

It also includes ensuring that our employees are treated well, that they go home to their families safe and healthy, and that we strive to build sustainable communities that survive long after mine closure.

Dundee Precious Metals Chelopech EAD is anchored by its values. The Company continuously pursues progress and development of the mining industry based on technologies, sustainable development and

SEPTEMBER 2018

concerted effort to protect the environment, as demonstrated by a number of international awards.

Our corporate wide community investment policy focuses our community spending toward local development, based on dialogue with local leaders. Our Krumovgrad project will be a model of best practice social and environmental management, and serves as a demonstration of our six Core Values: Safety, Dignity & Respect, Environmental Responsibility, Community Investment, Continuous Improvement, and Transparency.

These, together with the strategic imperatives support the Company’s brand promise: We Succeed Because We Care. — Nikolay Hristov, Senior Vice President, Sustainable Business Development

EUROPE

85

w w w. m i n i n g g l o b a l . c o m

D U N D E E P R E C I O U S M E TA L S

86

“ CHELOPECH IS A FANTASTIC CASE STUDY WHEREBY TECHNICAL AND TECHNOLOGICAL TRANSFORMATIONS OCCURRED SIMULTANEOUSLY. IT IS A TRUE TESTAMENT THAT TECHNOLOGY AND TECHNICAL PROWESS CAN BE IMPLEMENTED SUCCESSFULLY IN MINING” — Theophile Yameogo, VP of Digital Innovation.

“Chelopech is a fantastic case study whereby technical and technological transformations occurred simultaneously,” says Theophile Yameogo, VP of Digital Innovation. “It is a true testament that technology and technical prowess can be implemented successfully in mining.”

With technology evolving at such an immense rate, so too must companies such as Dundee Precious Metals. As the company looks to the future of technology in mining through artificial intelligence, machine learning and the Industrial Internet of Things (IIoT), it can do so based on the solid foundation of what it has achieved at Chelopech.

“Technology is a never-ending human endeavour. So is our work at Chelopech,” says Yameogo. “As a company we will always build on our past successes to enable and drive new realities and accomplishments.”

But as both Lindsay and Hristov stress, digitisation is all well and good but means nothing without an operational model that can enable and unlock the true value of technology.

“We have spent a lot of time developing a very structured, disciplined operating model that defines how we do our business,” says Hristov. “It’s easy to say we will digitalise but what does that mean? You need to have an underlying process in place.”

SEPTEMBER 2018

EUROPE

87

For Lindsay this operating model is one of if not the most important developments at the company, as he feels it is something that the company will implement across all of its existing and future operations.

“What do we take away from Chelopech as a business?” he asks. “I think it’s that operating model and the ability to apply that operating model in other projects and other operations gives us an edge. It really sets us up very well to be able to exploit the opportunities that are available through digitisation both now, and in the future.” w w w. m i n i n g g l o b a l . c o m

Caterpillar’s dealer of choice in Colombia

WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

Three years after embarking on a Colombian customer centric business RELIANZ continues to deliver success to the mining industry

RELIANZ

A

s a company that promises

values are built upon a simple founda-

to deliver the lowest cost per

tion of going above and beyond the

ton to mining companies by

customers expectation.

providing leading mining equipment,

“We need to be offering more than

RELIANZ has a clear goal to become

mining products to our customers,”

the preferred supplier of Caterpillar

says Martin Briggs, President of

solutions in Colombia.

RELIANZ, Colombia. “It has to be

To achieve this ambition, it requires a strong level of strategic direction

loading and hauling tools, we need

and leadership.

to deliver a full suite of services,

For RELIANZ, with a broad portfolio of mining customers across Colombia, the key to becoming the supplier of 90

about more than just traditional

product support and solutions for our customers here in Colombia.”

As President, Briggs can call upon

choice is broken down into a number

a wealth of experience in the mining

of core strategic values.

industry, having worked with Caterpillar

The values of the business are:

dealers previously in Australia. In 2012

safety, integrity, excellence, reliability,

he took on the role of Vice President

adaptability and teamwork. These

of GECOLSA, the largest distributor

SEPTEMBER 2018

L AT I N A M E R I C A

“we need to deliver a full suite of services, support and solutions for our customers here in Colombia” — Martin Briggs, President of RELIANZ, Colombia

w w w. m i n i n g g l o b a l . c o m

91

RELIANZ

92

of Caterpillar equipment in Colombia and it was in 2015 that the company decided to centralise its mining services.

This is where RELIANZ was born, assuming the operation of the company’s mining division and becoming the largest distributor of Caterpillar products to the Colombian mining industry. Briggs also made the move, taking on the role of President and leading the journey to become far more customer centric across Colombia.

As the leading supplier of Caterpillar equipment, maintaining a strong collaborative relationship with their key supplier CaterpilSEPTEMBER 2018

“ We also want to be recognized as one of the leading Caterpillar mining dealers globally” — Martin Briggs, President of RELIANZ, Colombia

L AT I N A M E R I C A

Capítulo #4 : NUESTRA MISIÓN 93

lar is crucial in order to be the

and service that they would expect from any

supplier of choice.

Caterpillar dealer globally,”

Briggs recognises as much and

“They also recognise that there is an alliance

notes that the relationship the two

at play between ourselves, Caterpillar and the

companies share is “seamless.”

customer. All three components of this alliance

“We maintain a very strong and open relationship with Caterpillar,

have an obligation to each other to make the relationship a success.”

they are an integral part of both

The relationship with a global leader like

our success and our commitment

Caterpillar reinforces the ambition of RELIANZ

to the customer,” he says.

to be a far more customer centric business.

“Our customers see that. They

RELIANZ is guided by Caterpillar’s global

recognise that through our

strategy, but through its closeness to the

partnership, they can expect the

Colombian mining market it can navigate any

same high level of performance

local challenges and develop w w w. m i n i n g g l o b a l . c o m

RELIANZ

a keen understanding of the particular market demands.

This in turn allows RELIANZ to be almost entirely customer driven, providing the best possible service to the customer because it recognises what the customer needs.

“It’s important to have dealers that are embedded in their territory,” says Briggs. “We have a long understanding of Colombia and working with local people, 94

local solutions and how best to implement the global solutions into the local market.”

One such area in the mining industry that is changing and requires an agile understanding of, both on a global level and in Colombia, is technology.

Technology is redefining the mining industry, which in turn is redefining the mining customer.

Historically, technologies such as hauling equipment have been implemented in a way that is driven purely by uptime; production at any cost.

But the mining industry is SEPTEMBER 2018

L AT I N A M E R I C A

95

w w w. m i n i n g g l o b a l . c o m

RELIANZ

cyclical and while that has proven successful in the past, the changing market and challenges of sourcing and managing capital has changed the conversation significantly.

“To put it simply, the last five years leading up to 2016/17 has seen a retracting market. This has made customers rethink their approach to our solutions,” says Briggs.

“It’s now production at the lowest cost. It’s not just a change in mindset, it’s a change in maintenance strategy, in repair

96

strategy and operating strategy.

“We as a dealer have to recognise that those changes are happening, the reasons behind them and we then must understand how we can adapt our business to meet the changing demands of the customer.”

This is where the company’s core strategy around human capital plays a crucial role.

RELIANZ provides extensive onsite solutions to assist with maintenance and repair as well as operation of the Caterpillar technology.

SEPTEMBER 2018

L AT I N A M E R I C A

97

Colombia is not isolated from the challenges

offer job security, a safe working

of the global mining industry and one of those

environment and creating a

key challenges has and will continue to be the

culture of drive and innovation.

availability of skilled labour. RELIANZ places

This doesn’t stop at our technical

a great deal of investment into creating

staff, right through the company

internal development training programs,

we create a strong sense of unity

training schools and continuously retraining

and this goes out to the compa-

its own employees.

nies that we work with too.”

This then “seeds” the labour pool as RELIANZ

Safety, and creating a safe

trains its customers in order to develop their

working environment, is one of

skillsets and capabilities to operate technology

the core values of RELIANZ. The

and improve efficiency at its site.

company makes its approach to

“We strive to be the employer of choice,”

safety visible at all levels of its

says Briggs. “So, we do everything we can to

strategic planning process and w w w. m i n i n g g l o b a l . c o m

RELIANZ

“ We always have safety at the front of everybody’s mind” — Martin Briggs, President of RELIANZ, Colombia 98

ensures that safety is at the very

that be meaning starting every meeting that

forefront of the company culture.

we have with a safety share with the group

2017 represented a key year for

or starting every shift with a tool-box talk. We

this as RELIANZ can proudly point

always have safety

to completing one full year with

at the front of everybody’s mind,” he says.

zero lost time injuries (LTIs).

“There are also regular cross-functional

Briggs believes that the key to this

inspections into various and different work

success, has been the aligned

areas. To me this is essential, because a fresh

company approach to safety.

set of eyes often picks out something that

“We drive a culture of safety right from the top down, whether SEPTEMBER 2018

people have overlooked in their workplace.”

Briggs notes that this approach to safety

L AT I N A M E R I C A

99

is one of the key differentiators for the

from the company’s area of

business as customers can recognise that

influence, to investing in local

it is a business with them, their families and

schools and infrastructure,

their livelihoods at heart.

Briggs is proud of the role that

RELIANZ doesn’t simply want to be another company that has its safety processes in order,

RELIANZ plays in giving back to the community.

it wants to be the benchmark across Colombia.

“We work in collaboration with

This approach doesn’t end with safety.

our customers and work together

As a supplier to the mining industry, RELIANZ

to ensure that we are in alignment

recognises and invests into corporate social

with regards to our community

responsibility programmes. From employing

work,” he says. “Again, this w w w. m i n i n g g l o b a l . c o m

Specialists in

SUPPLY CHAIN SOLUTIONS WHO ARE WE?

SOE 360º was formed following GECOLSA’s decision to split its business units, taking charge of all support and supply chain services which have contributed to the consolidation of the latter as the heavy machinery market leader in Colombia

Our Services: National and International Business & Logistics

Free Zone

Warehousing and Operations

Purchasing & Inventory Management

Av Americas 42 A – 21, Bogotá, Colombia | Tel +57 1 4824360 | iader.ospina@soe360grados.com.co

L AT I N A M E R I C A

shows that we are doing our very best

as a certified ‘Best in Class’ Mining

to promote and foster best practice in a

Dealer of the Future.

challenging industry. We support good

Despite this sustained growth,

mining, which develops trust from our

Briggs understands that it cannot rest

customers.”

on its laurels.

RELIANZ is only three years into this

“We want to be the clear leader in the

growth journey but it can already point

industry as well, but we also want to be

to considerable successes that it has

recognized as one of the leading Caterpil-

achieved along the way as proof that it

lar mining dealers globally,” he says. “We

is growing in the right direction.

will continue to push the boundaries and

It’s commitment to safety, human

better understand our customers’ needs.

capital and CSR, has enabled RELIANZ

“Were people to ask where are the

to develop into a trusted business and

Caterpillar dealers that are delivering

one that customers prefer and actively

the most value to our customers, I want

seek out to work with, becoming the

us to be in that top handful of dealers

first Caterpillar dealer to be recognised

that are achieving just that.”

w w w. m i n i n g g l o b a l . c o m

101

Defining Tyre Management Kal Tire’s Mining Tire Group specialises in a complete range of tyre management services in over 20 countries. Our skilled workforce performs according to our global safety and operating standards, and focuses on extracting the maximum value from tyres and related assets for mining customers.

As an independent tyre dealer with 45 years’ experience, we ensure customers get the right product for the right application. Through continuous innovation, we are able to meet the evolving needs of mining customers and help them make the most of their tyre investments.

KalTireMining.com