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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
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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
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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
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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
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Our success has come from working together, to build a real understanding of your vision in Vietnam. Our shared approaches to
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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
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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
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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
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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
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October 29 - 30, 2018 | Fort Worth, TX
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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
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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
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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
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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
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D U N D E E P R E C I O U S M E TA L S
FACT
Social license to operate
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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
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85
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D U N D E E P R E C I O U S M E TA L S
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“ 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
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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
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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.”
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