TOP 10 Companies on Social Media
Januar y 2016 • www.miningglobal.com
THE ENGINE OF MASAN RESOURCES The Internet of Things And How it will Impact the Mining Sector in 2016
EDITOR’S COMMENT
IN THIS ISSUE
“You either embrace technological change and adapt your practices to suit the brave new world - or you will wither on the vine” –Sam Walsh, CEO Rio Tinto L O C A T E D I N T H A I N G U Y E N Province in northern Vietnam,
Nui Phao is one of the world’s largest tungsten deposits outside China, with an estimated reserve of 66 million tons. As the engine of Masan Resources, CEO Dominic Heaton discusses the company’s journey in acquiring the Nui Phao project, one of the world’s largest tungsten deposits outside China, and how the company went about developing it into a world-class asset. Pressed for profits and low prices, mining companies are turning to data-based technologies to improve their business. Whether for innovation or survival, machine-to-machine communication, otherwise known as the Internet of Things, is expected to play a significant role in the mining sector in 2016 and beyond. In the January edition, we examine five proven benefits of loT and how it will turn mining into a lean, mean, profit making machine. The traditional landscape of mining activities may never be the same. In continuing with our outlook on 2016, we look at the movers and shakers of the mining corporate world and highlight some of the biggest and most influential executive names across the globe. And because social media has become the quintessential networking tool for basically everyone, we decided to pay homage to the top ten companies on social media.
Enjoy the issue! Robert Spence Editor
robert.spence@wdmgroup.com
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CONTENTS
6
Features
LEADERSHIP Top Influential People in 2016
TECHNOLOGY 5 Ways the Internet of Things will Revamp the Mining Sector in 2016
14
TOP10 Companies on Social Media 4
January 2016
20
50
Company Profiles
Cobre Panama
EUROPE 30 Mineco
AFRICA 50 Cobre Panama
USA 64 Knight Piesold
AUSTRALIA 74 Masan Resources
LATIN AMERICA 106 MASA y Stork
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MINECO
64
Knight Piesold
74
Masan Resources
106
MASA y Stork 5
LEADERSHIP
Top Influential People in 2016
The corporate side of the mining sector is filled with some of the biggest executive names across the globe. We examine some of the top leaders for 2016. Writ ten by: ROBE RT SPE N C E
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LEADERSHIP
Mark Cutifani The man, the myth, the legend: Mark Cutifani is one of the most polarizing leaders in the mining sector today. He is CEO of Anglo American as well as a member of the Board and Group Management Committee (GMC), a non-executive director of Anglo American Platinum, chairman of Anglo American South Africa and chairman of De Beers. At age 57, Cutifani has held various roles in the mining sector, including CEO of AngloGold Ashanti, COO at Vale Inco and senior executive positions with the Normandy Group, Sons of Gwalia, Western Mining
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January 2016
Corporation, Kalgoorlie Consolidated Gold Mines and CRA. With Anglo American hitting tough times like most companies in the mining sector today, Cutifani’s experience and leadership will be critical in 2016 and beyond.
MINING MANAGEMENT
Ivan Glasenberg As head of the world’s largest commodities trading firm Glencore, Ivan Glasenberg understands the commodities business better than most. The former coal trader is a Chartered Accountant of South Africa, holds a Bachelor of Accountancy from the University
of Witwatersrand, an MBA from the University of Southern California and helped orchestrate one of the biggest mining deals in history with the takeover of Xstrata in 2012.Known as a shrewd deal maker with an appetite for M&As, Glasenberg is expected to play a prominent role in the mining sector for years to come. 9
LEADERSHIP
Gina Rinehart As the only child of Lang Hancock, Georgina (Gina) Hope Rinehart is the richest woman in Australia, and the fourth in the world, with an estimated fortune of $11 billion. Known as the queen of iron ore, Rinehart is the Executive Chairman of Hancock Prospecting and the driving force behind Roy Hill, a $10 billion iron ore mining project in the Pilbara region of Western Australia that is expected produce 55 million tons annually, making it the largest iron ore mine in the world.
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January 2016
TOP INFLUENTIAL PEOPLE IN 2016
Srinivasan Venkatakrishnan Srinivasan Venkatakrishan is CEO of AngloGold Ashanti, a gold mining company with 21 operations on four continents, and is responsible for creating, communicating and implementing the organization’s vision, mission and strategy. With a BCom and an ACA from Universidad Pontificia Comillas de Madrid, Venkatakrishnan worked as the director of the reorganization services at Deloitte & Touche in London before joining Ashanti Goldfields between 2000 and 2004. He joined AngloGold Ashanti when South Africa’s AngloGold bought Ashanti, serving as CFO before being appointed CEO. Venkatakrishnan is also a council member for the International Council of Mining and Metals (ICMM), an organization that brings together 23 mining companies and 34 national and regional mining associations. 11
LEADERSHIP
Alan Davies Alan Davies is Chief Executive for Rio Tinto’s Diamonds and Minerals division. He joined the company in 1997 and has held management positions in Australia, London and the U.S. for the Iron Ore and Energy businesses. Prior to his current role, Alan was president, international operations for Rio Tinto’s Iron Ore business with global accountability for operations and projects in Canada, India and Guinea, and was also previously CFO for the Iron Ore business. Davis accepted responsibility for Rio Tinto’s Uranium business in February 2015 and is expected to become a major figure in the mining industry in the coming years.
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January 2016
TOP INFLUENTIAL PEOPLE IN 2016
Robert Friedland American mining mogul Robert Friedland is an international financier and major player in the junior mining industry. As the founder and chairman of Ivanhoe Capital, an investment firm focused on energy and minerals, Friedland has become one of the most influential leaders in the mining sector to date. Friedland is also the founder of Ivanhoe Mines, which was purchased by Rio Tinto in 2002 and renamed Turquoise Hill Resources. Friedland is expected to speak at Mining Indaba 2016 in South Africa and his influence could serve the mining industry well going forward.
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The Internet of Things And How it will Impact the Mining Sector in 2016 Pressed for profits and low prices, mining companies are investing in databased technologies to change their business for the better Writ ten by: ROBE RT SPE N C E
TECHNOLOGY
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TECHNOLOGY
Predicting downtime Because IoT makes sense of large amounts of data captured from machines, it uncovers valuable insight into the health and performance of equipment and infrastructure. For example, General Electric is developing a sensor network based on the principles of loT to monitor turbines constantly in order to reduce downtime. Mining companies can measure in real-time things like fluid temperatures, levels, pressures, contamination; bearing rotations, temperature, and vibrations; frame rack, bias, and pitch 16
January 2016
(affected by load and road conditions); engine speed and gear position; brake pressure and temperature; drive train performance; and vibrations at various locations in the truck (especially bearings). These predictive analytics help identify impending problems early in order to avoid unexpected downtimes or failures. New chapter in efficiency The Internet of Things will allow companies to improve efficiency and service by enabling physical objects like haul trucks--embedded with electronics, software and
INTERNET OF THINGS WILL REVAMP THE MINING SECTOR
sensors--to exchange data with manufacturers and other machines and connected devices. Think about it: giant trucks on programmed and responsive routes hauling ore autonomously, while drones monitor and measure surface operations and equipment is located, scheduled and monitored with adaptive feedback loops to maximize production. By improving truck availability or reducing downtime, and improving the diagnostics and troubleshooting capabilities of the mine operations and maintenance teams, companies can greatly enhance
the efficiency of mine operations. Revolutionize safety Mining is an inherently dangerous profession and safety concerns are at an all-time high. In the future, however, all that will change. Along with incorporating location/ proximity sensors and warning technology in mining equipment, companies will use the Internet of Things to integrate “people tracking, communications, video surveillance and analytics, and realtime personal health management. Simply put, the Internet of Things will
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TECHNOLOGY enable companies to continuously improve its safety by analyzing hazards, incidents, near misses and safety observations. By connecting machines, data and people together, companies can not only perform better, faster and more reliable but safety risks are a thing of the past. Decision making The Internet of Things is expected to be a catalyst to intelligent decision making in the mining sector and will overall improve how traditional processes and activities are done.
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For example, GPS tracking of material movements, as well as camera views of production, further improve the planners’ decisions, providing all production information, including materials, logistics, schedules, and energy, across the plant supply chain. The loT has the ability to streamline the flow of information, enable real-time decisions and open new opportunities in mining by simply connecting people, machines, items, and services. Seamless Automation The mining industry is already
INTERNET OF THINGS WILL REVAMP THE MINING SECTOR
leveraging the Internet of Things in wireless mining automation and connected mines projects. Since 2008, Rio Tinto has been using autonomous, self-driving mining trucks in Western Australia and Fortescue Metals Group began their journey with Caterpillar in 2012 when the miner implemented Cat’s MineStar technology in the first phase of their Solomon iron ore mine in Australia.
By integrating the Internet of Things with all of its automated activities, mining companies can create realtime multi-dimensional models from a variety of data sources including the sensors on the equipment as well as geological and other data. Therefore this system can then be used to optimize the mine’s layout, operation, vehicle paths, and so forth, coordinating all the moving pieces for the most efficient operation. 19
TOP 10
TOP 10
Companies on Social Media Written by: Robert Spence 21
TOP 10
Social media has become the quintessential networking tool for people, businesses and organizations alike. It has the power to connect brands to their consumers, inform audiences on current topics and trends, and engage audiences to interact and discuss opinions. Love it or hate it, the inexplicable world of social media has become an everincreasing part of the mining sector. We highlight the ten companies that have mastered the art of using sites like Twitter and LinkedIn in their favor. 22 January 2016
10 RIO TINTO WEBSITE LINK
Despite not having a company-ded Rio Tinto makes our list at number has found immense success elsew over 249k followers on LinkedIn and
T O P 1 0 C O M PA N I E S O N S O C I A L M E D I A
dicated Facebook page, 10. The mining juggernaut where, cultivating d 33k on Twitter.
09 Joy Global WEBSITE LINK
Joy Global aims to solve the mining industry’s toughest challenges. On social media the company aims to provide a viable source of information, whether in the form of articles, videos or photos.
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TOP 10
07 Liebherr M WEBSITE LINK
Liebherr Mining is brash with their desire to be a l of mining equipment, an media, especially their Fa mirror that aspiration. Fr Instagram, the company fleet of social outlets for
08 Kinross Gold WEBSITE LINK
Kinross Gold, the fifth largest gold mining company in the world, continues to utilize traditional methods of social media like Facebook, Twitter and LinkedIn to inform users on their operations in Ghana, Mauritania and Russia, while also showcasing environmental and sustainable initiatives in progress. The company has over 82k followers on LinkedIn, 12k likes on Facebook and 10k followers on Twitter.
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Mining
and unapologetic leading manufacturer nd their social Facebook page, rom Twitter to y has a dedicated everyone.
06 Thiess WEBSITE LINK
Australian born and bred, Thiess is the mining industry’s number one contractor, employing more than 11k people and operating in over six countries and 26 mines. Their global dominance is visible on social media, as evidenced by their 84k likes on Facebook and 73k follower on LinkedIn.
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TOP 10
04 VALE WEBSITE LINK
Despite closing their Twitt company Vale still accoun mining companies on soc followers on LinkedIn and
05 Newmont Mining WEBSITE LINK
As one of the few mining companies consistently updating and sharing content on social media, Coloradobased Newmont Mining has become the premier account to follow in the mining industry as it is both informative and entertaining.
26 January 2016
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ter account, Brazilian mining nts as one of the major cial media, with over 400k 471 likes on Facebook.
03 Barrick Gold WEBSITE LINK
As the world’s biggest gold mining company, Canadian miner Barrick Gold also boasts one of the biggest online presences via social media, with roughly 149k likes on Facebook, 193k followers on LinkedIn and 36k on Twitter. Barrick continues to use social platform to inform audiences on news, updates and reports.
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TOP 10
02 Anglo American WEBSITE LINK
Anglo American is one of the largest mining companies in the world, and their social media presence reflects that image. The company is a great example of how miners can blend informative updates and news, while also providing entertaining videos and imagery to convey their message and vision.
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T O P 1 0 C O M PA N I E S O N S O C I A L M E D I A
01 Caterpillar WEBSITE LINK
Firmly planted in the number one position, Caterpillar Inc. has unequivocally mastered the art of social media. The company has cultivated a massive audience via the web, accumulating over 972k likes on Facebook, 320k followers on LinkedIn, 80k followers on Twitter and even 75k on Instagram. As a result, the word Caterpillar has become synonymous with heavy equipment and machinery both in the field and on the web.
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LEADERS IN THE BALKANS Written by Lucy Dixon Produced by James Pepper
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MINECO
Mineco’s operations have helped to revitalise the industry in the Balkans, a region with a rich history of mining
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tarting off as a commodity trading company in 2003, Mineco soon expanded its operation into base metal mining and the smelting and refining of metals. It currently has three lead and zinc mines in Bosnia and Serbia – Gross, Rudnik and Veliki Majdan – with a further two projects under development. In Russia, Mineco owns the largest lead refinery in the country. The Balkans has a rich history of mining; mines opened by Romans in the 2nd and 3rd Centuries AD still operate in Artana and the Saxons mined extensively across the region (locally, Gross is known as ‘Sase’ in recognition of its origins as a 14th Century mine). Modern, industrialised mining was started by the Austrians and by the 20th
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Century the copper mines of Bor in Serbia and the Trepca lead complex in what is now Kosovo were among the largest operations of their kind in Europe. However this proud tradition of mining was dramatically interrupted by the breakup of Yugoslavia, the ensuing civil war and international economic sanctions, as Mineco’s Operations Director Dominic Roberts explains: “Unfortunately the ramifications of the civil war in the early 1990s are still felt today in many areas. All of our mines suffered to some extent in the war, particularly Gross and Veliki Majdan. Gross, for example, stopped production in 1990, it did restart in 1998 but by the time we acquired it in 2005 it was in a terrible state of repair and was running at a fraction of its capacity.” The mine is located in the Srebrenica district of Bosnia, near the Drina river. “We are the largest employers in Srebrenica with 530 people working at Gross mine and the established convention in mining is for every one direct job, you create four indirect jobs. We are effectively responsible for two and a half thousand livelihoods in a very small community and our local position is amplified by the absence of the other large employers that operated during Yugoslav times. Moreover, Gross is a model of corporate social responsibility, providing valuable support to local educational, sporting, cultural, environmental and social programmes and events. All this has generated a strong sense of pride among the staff and management of Gross and Mineco as a whole,” Roberts says. This is w w w. m i n e c o g r o u p . c o m
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LEADERS IN MINERALS PROCESS DESIGN Simpler, faster, better
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Peacocke & Simpson: processing excellence Peacocke & Simpson is an industryleading full service minerals processing solutions company. Specialists in mineral testwork, the company also offers flowsheet development, and laboratory analyses of mine samples, and represents various world-leading process equipment manufacturers. “Established in 1985, Peacocke & Simpson has vast experience in the minerals processing industry, providing RELEVANT and MEANINGFUL mineral testwork on nearly all hydrometallurgical processes for nearly all minerals. Based in mineral-rich yet underdeveloped and logistically challenging Africa, we understand that our clients require practical solutions and results, as opposed to laboratory print-outs and irrelevant research.� MINERAL TESTWORK P&S places emphasis on gravity recovery, and always explores this as a first option, when viable. In addition to being more environmentally friendly and sustainable, gravity recovery is more economical than applying costly chemistry to the mineral recovery process, and generally has a much smaller footprint and power requirement. When chemical recovery is necessary, P&S has state of the art equipment and expertise to conduct leaching, flotation and other chemical testing procedures to the highest quality. This is either done independently, in comparison with gravity recovery, or as a peripheral or downstream
process with gravity recovery, depending on the needs of each individual client. P&S pride themselves on extremely fast testwork turnaround times. Committed to client service and adding value, P&S manages everything from sample collection from site, through testwork and flowsheet development, and finally delivery/disposal of testwork byproducts - subject to the preference of each client. As part of its dedication to industry growth, the company also offers discounts on routine testwork performed for plants, ensuring that they run at optimal levels at all times. FLOWSHEET DEVELOPMENT Whether for new plants or those that have been going for decades, P&S develops flowsheets to streamline the mineral extraction process. This not only enhances overall recovery, but also minimises risk on site. EQUIPMENT REPRESENTATION P&S is the proud official testwork partner for FLSmidth (Knelson Technologies), APT, ConSep and Rocklabs, in addition to being able to test for numerous other technologies and mineral extraction processes. As the partner of these companies, Peacocke & Simpson is the best choice and most suited to perform mineral testwork for any processes which may require the above technologies. Peacocke & Simpson is ISO 9001:2008 certified and SANAS accredited.
MINECO
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EUROPE
a big part of Mineco’s role at all of its projects – initially stabilising operations, followed by a programme of investment and modernisation to realise full capacity while becoming an important part of the local economy and community. Roberts explains: “There is nothing we take more seriously than our commitment to our key stakeholders, the communities and environments which we serve.” Across its projects Mineco works hard to improve the environmental and social aspects of its operations. Gross mine has become a regional centre of best environmental and waste management practice. A recently completed $2 million investment programme has ensured the tailings dam not only meets local legislative requirements but those of the voluntary Equator Principles set by the IFC & World Bank. Earlier in the year the mine hosted the first environmental and waste management conference held in the Balkans for over 20 years. “We continue to focus on improving the health and safety conditions at all our mines,” explains Roberts. “Continuing the model of creating centres of best practice, our Rudnik mine in Serbia is similarly a regional example of excellence. Serving as a training centre for Mineco’s staff as well as a case study for the wider industry. The General Manager of the mine advises the Government of Serbia on all matters relating to metal mining, but particularly on matters concerning occupational health and safety. An impressive achievement when you w w w. m i n e c o g r o u p . c o m
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MODULAR MINERAL PROCESSING EQUIPMENT
APT, bringing projects online in lean times More than ever before the hurdles necessary to bring a new project on line, or to expand an existing one are daunting. Listed Juniors deserve a medal for their efforts and a good deal of recognition is owed for the often thankless task. There are many boxes to be checked, one of which is the plant; its design, its cost and the efficacy of the result. Nothing endorses a project more firmly to its investors than production on schedule, or even ahead of schedule.
proven capability to a larger plant size. Our latest plant, at 120tph capacity is in fact a Combo Plant and clearly demonstrates APT’s specialist knowledge in this field. Large engineering companies frequently encounter difficulty designing their products downwards, it is not as easy as it sounds. APT on the other hand has had no trouble engineering upwards and we come from a broad base of experience of over eighty plants to grow from.
Ultra-fast lead times APT realizes this and our plants have been brought into production for small to medium mines at literally break neck speed. For example, a 20tph gold plant was recently designed and built in just 14 weeks. It was then shipped to site and once there was erected, commissioned and in production in just 4 days! In another case a large 40tph gravity tower for gold recovery was erected on site in just 6 days! Through rigorous R&D our designs have been evolved to allow for a single plant that can treat the softer upper oxide material and then accommodate more competent rock from the transition and deeper levels. Called Combo Plants, these units can accept up to 50% of the feed tonnage as hard competent rock and are ideal for a startup. Modules can be added as necessary to tailor the plant progressively to a deep level unit, for example by the addition of flotation and cyanidation.
Scheematic of 120tph APT Combo plant for cassiterite recovery Exploration with production The ability now exists for a Junior Mining House or a private investor to bring a project on line at reasonable cost ahead of schedule whilst reserves are expanded to justify further investment. APT would be involved throughout the entire process from testwork through to implementation of the final modules as the project matures. This can all be designed from the outset for ease of forecasting and financial planning. Low CAPEX and OPEX
40tph Gravity Tower and CIL plant Modules allow progressive expansion The breakthrough for the Juniors is that APT have progressively expanded this tried and
In addition to the flexibility of the solution and it’s rapid startup, the value package is enhanced further by very competitive pricing – often a fraction of that paid for a conventional plant. “The reason is simple”, said Gary McFarlane, APT’s Business Development Manager. “We spend a large proportion of our engineering effort to de-complicate and unclutter our solutions so that what the client gets is a smart, robust product without bloat and waste.”
MINECO LIMITED
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Pat Willis Managing Director UK Office pat@baraconsulting.co.uk +44 7810 182 169 www.baraconsulting.co.uk
MINECO
EUROPE
consider we are in a region where records haven’t traditionally been very good. Unfortunately, I am afraid, senior managers don’t readily accept responsibility for health and safety issues so we’ve endeavored to change the culture and ensure that our managers understand that they are absolutely responsible, ultimately culpable and that the protection of the workers should come foremost in their day-to-day planning. It is also very rewarding to prove that with improved health and safety, productivity also increases through the decreased downtime associated with accidents,” Roberts concludes. It’s worth noting that 99 percent of Mineco’s staff are locals, taking advantage of the region’s specialisms that existed before the war. Roberts says: “Yugoslavia had an enviable reputation for academic excellence. The education and university system produced some very, very good engineers. The issue is that, again due to the breakup and the civil war, a lot of that experience was lost in the consequent diaspora. The engineers that stayed unfortunately lost access to at least a decade of technological advances by the rest of the mining world.” Mineco is working hard to modernise its operations wherever practical,
The Balkans has a rich history of mining
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MINECO ensuring they will comply with international best practice and educating its workforce on the technical advancements that have been made around the world. This goes hand in hand with the long-standing recognition within Mineco that its employees are, in fact, its most important natural resource, being ultimately responsible for the group’s growth and successes. The new projects that Mineco is working on are also in the Balkans, and it’s a part of the world Roberts knows quite well, having worked there firstly in the army, and then using his geology degree and project management skills in the mining industry. And it’s an area that still has enormous potential when it comes to base metal mining. “We are Balkans specialists. It’s our part of the world. We know it and we understand it. There are still opportunities remaining in the
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Balkans as it is such a heavily mineralised area, however very few of the mineral deposits are of a scale or size that any of the major mining companies would consider. For us, it is the ideal market for a mid-cap, mediumsized company to operate and expand.” Because of its complex political history, the region contains a number of brownfield sites that are still in public ownership, awaiting privatisation and regeneration. Roberts adds: “There are all sorts of legacy issues we have to deal with, but we know them and can navigate around them - that is one of our USPs. To a certain extent, it puts off the potential competition. They look at the perceived political and sovereign risks and are not prepared to take those on. Especially in mining, a sector that requires both long-term commitment and substantial investment. We
‘“We are Balkans specialists. It’s our part of the world. We know it and we understand it.” – Dominic Roberts, Operations Director
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MINECO feel confident to operate in a market where a lot of other people perhaps wouldn’t.” The same perception has caused many international banks to stay away from providing mining and project finance, so mining companies need to rely heavily on their own resources. Ironically, this has only helped Mineco to achieve organic growth as it has had to re-invest the bulk of its profits into developing new projects. Mineco’s next mine is Olovo in Bosnia, which is scheduled to open in July next year. “Olovo is a very interesting prospect. Unlike our other mines it is not a polymetallic sulphide deposit but rather a rare form of secondary mineralisation called cerussite that contains only lead. Olovo is a relatively small mine but its reserves of 1.7 million tonnes are very high grade. Its full operating capacity, in 2017, will be
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150,000 tonnes a year,” says Roberts. Olovo is another particular good example of a refurbishing a mine that was abandoned during the war, standing inactive since 1991. But while there is nothing left on the surface, the underground workings remain. “We’ve finished rehabilitating all the underground systems and we’re now in the final permitting stage for the surface infrastructure,” says Roberts. The mine will go on to employ around 200 people and bring substantial direct and indirect revenues to a community with extremely high unemployment. Another development project is located in Bosilegrad, which is a lead and zinc ore body located in the south east of Serbia. “At Bosilegrad we have over four million tonnes of resources and we’re currently undertaking all of the test work to design the processing plant,” says
“There is nothing we take more seriously than our commitment to our key stakeholders, the communities and environments which we serve” – Dominic Roberts, Operations Director
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MINECO
“We are continuously conducting due diligence on other potential projects. And to do this we operate an inhouse team that we call the Project Delivery Team” – Dominic Roberts, Operations Director
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Roberts. Having already invested in excess of $11 million, production is planned to start in 2017 following a pilot plant next summer, which will be used to confirm the technical specifications of the full project. “ßAt approximately 1,400m above sea level, this high altitude mine sits in a very remote community in the mountains between Bulgaria, Serbia and Macedonia. Unofficial unemployment is currently over 50 percent so, as with Olovo, the commissioning of this mine will make a substantial difference to the local community, where we intend to employ about 250 people,” Roberts adds. There are also two exploration projects underway, both in Bosnia. Roberts says: “The first near Gorazde – an antimony exploration project - and the second in Celebici, near Foca. As mentioned already, from our perspective in the Balkans, we don’t need to commit to greenfield explorations, because there’s such a complex history of mining enabling us to focus on brownfield opportunities. The Gorazde project is an adandoned mine and Celebici is the potential extension of an existing mine.” Roberts adds: “We are continuously conducting due
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diligence on other potential projects. And to do this we operate an in-house team that we call the PDT - the Project Delivery Team. A handpicked team of geologists and mining engineers who review and develop new projects for Mineco.” The 15-member PDT operates from Belgrade and assists Roberts in evaluating potential new projects and developing those that get the green light. It is another element of Mineco that illustrates its specialism model. “The PDT is another internal centre of excellence. While the team are all locally recruited, in keeping with our employment philosophy, they have all worked internationally at some stage in their career and been exposed to best practice
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MINECO
“Our Rudnik mine in Serbia is a regional example of health and safety excellence, serving as a training centre for all of Mineco’s staff as well as a case study for the wider industry” – Dominic Roberts, Operations Director
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and different forms of mineralisation and mining across the world.” Away from the mining operations Mineco continues its global trading activity. From its London, Zug and Moscow offices, Mineco markets not only its own concentrates, but also the output of a number of other mines in the Balkan region and across Europe and the CIS countries. Through a strategic alliance with the international commodities house, Ocean Partners, Mineco maintains a global trading presence. Completing its vertical integration Mineco owns and operates the Fregat secondary lead smelter. Located in the Moscow region, it recently became the first Russian smelter to achieve registration of its products with the London Metal Exchange. “With the capacity to recycle 170,000 tons of batteries per year and currently producing some 35,000 tons of prime lead metal, it is the largest lead refinery in the whole of Russia – something everyone in Mineco is very proud of,” says Roberts. Summing up, Roberts says: “Mineco is privately owned, with no external debt, a robust balance sheet and we enjoy healthy margins at our producing mines. We are ideally placed to take advantage of the opportunities that will present themselves over the coming couple of years. Investors reinforce their successes, and I am very confident that we will increase annual production by at least 50 percent over the next three years”.
The Fregat Smelter is one of the most modern secondary lead smelters in the Russian Federation
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Quantum speed Written by: John O’Hanlon Produced by: Kiron Chavda
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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .
First Quantum Minerals (FQM) has been around since the 1980s since when the TSX and LSE listed miner has been steadily growing its portfolio: today it operates or is developing a dozen major projects in nine countries
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ne of FQM’s flagship projects is the Trident development in Zambia, which we featured in Mining Global last year, as its Project Manager Randy Findlay was bringing the Sentinel mine to completion in December of 2014 with commissioning underway. We didn’t mention it at the time but he also found time to complete a 1.2 million tonnes per annum (tpa) smelter that was under construction at nearby Kanshanshi, the largest copper mine in Africa. This smelter, which ought to have cost around $1.3 billion was delivered within the same time frame as Sentinel with concurrent commissioning and completed at a total cost of $900 million. These are the kind of results that can be achieved using FQM’s self-perform model. It’s risky, but it’s fast, says Findlay. “We build mining projects cheaper than anyone else
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does. It’s unique to FQM that under one hard hat we manage geology, constructability studies, engineering, construction, commissioning and operations. All of those energies create a powerful dynamic that reduces the initial capex for these projects.” Typically, the methodology saves, nominally, 30 percent on major capital projects. It calls for a completely different relationship between owner and vendor, in which the latter trades some control over the build against some risk, which is taken on by the owner. It’s EPC without the C. This is not the way companies like FLSmidth (FLS) or Siemens are used to working. It takes out some of their revenue opportunity by compressing the time they are on site and the charge-out rate of a team of professionals – a big part of the bill when these are highly paid expatriate engineers. But there are marketing advantages in working smarter for them too. Findlay recalls the installation of four FLS mills at the Oyu Tolgai mine in Mongolia. It took a dedicated team of +16 engineers to complete the job. He achieved the same job at Sentinel, with no dedicated vendor operators at all. “We provided FLS South Africa, with a service contract to come in once a month for a week and audit what we were doing.” Similarly, he has shown how it is possible to build Siemens integrated mill drives in half the time normally scheduled – it is a more aggressive execution philosophy: the owner takes on more risk, and the vendor works with in
$1.3bn The cost of the the smelter at Kanshanshi, the largest copper mine in Africa The on-site construction of the 1st Mill Truss
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that philosophy. “When you reduce your timeline by 50 percent you have not only reduced cost but you can get revenue faster,� he says. In December last year Randy Findlay moved from Africa to the Cobre Panama copper project being developed by FQM subsidiary Minera Panama following its acquisition from the Canadian company Inmet in 2013. Capex for the 70 million tpa project has just been revised down by nearly half a billion dollars from $6.4 billion to $5.95 billion. This is partly because of the downturn in world markets that has brought down steel and energy prices. Copper prices are down too, of course, but while other operators are moth-balling or selling off their assets FQM, under its far-sighted CEO Philip Pascall, remains focused on the longer term Power plant overview
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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .
The secondary crusher area
certainty that prices will rise. As Findlay puts it: “Those that are well positioned, can spend their way through and pick up optimised deals in the market place from multiple sectors will be in a much better position going forward.” The way FQM executes construction selfperformance is a game changer. Cobre Panama is some 27 kilometres inland from a port area and power station currently under construction at Punta Rincon. In fact there are two power stations, supplied by Korean company SK Engineering. The design effort is supported by Chicago-based engineering firm Sargent Lundy. “We cancelled the execution part of contract
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with SK Engineering and took it over ourselves. Then on arrival in February of this year, the team revisited the engineering plan - we trimmed out almost $10 million just by optimising concrete designs.” Good examples of the benefits that can be derived by bringing execution in-house. The power station, though coal fired, uses excellent “Clean Coal” technology. It has a single 125-metre twin-flue chimney, currently being contracted by Pullman Power out of Kansas Mo, USA. The design incorporates flue gas desulphurisation (FGD), bag houses and selective catalytic reduction (SCR) filtration to remove sulphuric acid and heavy metals from the flue gas. The Punta Rincon port has been operational since the first ball mill was delivered on 23 August. Its main function will be to receive coal for the power station and export copper concentrate. “We are now working on
“Those that are well positioned, can spend their way through and pick up optimised deals in the market place from multiple sectors will be in a much better position going forward.” – Randy Findlay
Unit 1 turbine foundation top deck
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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .
“We are now working on the jetty construction which will house the conveying system to load and unload the ships.” – Randy Findlay
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the jetty construction which will house the conveying system to load and unload the ships,” says Randy Findlay. Remaining work includes heightening the breakwater that protects the wharves and completing the discharge piping for the cooling water from the power station. Up at the mine things look rather different. The topography is extremely hilly in an area that gets a lot of rain. In 2014 7.2 metres of rain fell at the port where the power stations are being built and 4.2 metres at the mine site itself. “The substrate is solid rock,” he explains. “Sometimes you have 11 or 12 metres of saprolite which is a very
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viscous soil type, but below that are good basalt structures that provide excellent foundations for the mills, crushers and stockpile vaults.� Construction is proceeding well, with many milestones being passed this year. In the milling area, all seven mill foundations are in place, which will provide the foundations for the first processing train. The three stockpile vaults, each fed by six Metso feeders, will be ready by the end of this year. The conveyor pylons are also being raised. There are only four of these but they are extraordinarily robust, to carry conveyor spans of 80 metres, with a cantilevered span that
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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .
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goes out to feed the third stockpile. The pylons contain the greatest amount of reinforcing steel – 365 kilogrammes per square metre or more than double that contained in other industrial concrete designs – that Findlay remembers encountering in his entire career. “These are enormous, and they have been optimised by our engineers so we are certain they will do the job.” Chip sealing the road from the port to the plant should be complete by the year’s end too. Completing the tailings management facility may take a little longer. It covers a large area with a series of 10 small earthen dams, on the east wall, and three or four larger dams on the north wall, he says. “We are about 42 percent finished on the TMF, tails management facility. That will go for another 18 months before it is at the finished.” With the levels of rainwater that we have seen, removing water from the tailings area is a serious long term risk. To address it a fivemetre diameter decant tunnel, 1.2 kilometres long, has to be drilled through the mountainside. However even this will be complete in time for the first concentrate to be shipped out from Cobre Panama, currently scheduled by December 2017. It’s an aggressive schedule, only achievable because of a mixture of forward thinking on the part of FQM’s leadership, using the best talent in the industry to deliver the project from the Project Manager down, and of course the company’s self-perform philosophy. And this is never done at the expense of
Key Personnel
Randy Findlay Project Manager
‘An aggressive schedule, is only achievable because of a mixture of forward thinking on the part of FQM’s leadership and using the best talent in the industry to deliver the project’
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C O B R E PA N A M A : F I R S T Q U A N T U M M I N E R A L S LT D .
3,400
The number of workers house in Camp Cobre
Development of the mill site area
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responsible mine development. Quite the opposite. The environmental and communities teams are managed by Alberto Casas, and comprise the most effective environmental and social impact teams Findlay has worked with. “As soon as we came to Panama, we enacted a policy that the Director of Projects, Zenon Wozniak, and the CEO, Philip Pascall, were engaged to approve any clearing modules that required for construction.” The intention has been to minimise clearing and retain as much natural growth as possible while developing the mine. For example, Camp Cobre, one of five workers’ camps, houses 3,400 people. Yet all the structures are arranged at different angles and elevations with as many trees possible retained between them. The result is well short of other mining projects which tend to adopt a complete clearance philosophy. When the mine site is played out in 40+ years, site is rehabilitation will be minimised. Cobre Panama will be visually the most spectacular mine ever built, asserts Findlay. When operational it will employ a total of 2,800 at the power station and the mine proper. Cobre Panama has brought in a huge amount of expertise. The flags of all 27 nationalities working here fly over the entrance. Over its 40-year mine life, though a private project, it will generate substantial percentage of Panama’s GDP going forward, more even than the Panama Canal. Randy Findlay is getting ready to hand over the remaining stages of the mine development
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to Tristan Pascall who will be the Operations Manager. First Quantum is currently hiring some new team members and Findlay is looking forward to a break. “Being a Project Manager for FQM is a total immersion lifestyle. You work 12-14 hours a day seven days in a week and for months without any break. I came here to put a team together, and I think they are doing a fantastic job and will deliver this project for Panama in the end.” With that sort of commitment, first to Kalumbila Sentinel and Kansanshi Smelter, now at Cobre Panama, he has surely earned some time with his family. However, he is being retained by FQM as a consultant. “I think I have a few projects left in me,” he says. It would seem he needs them as much as they need him.
“I came here to put a team together, and I think they are doing a fantastic job and will deliver this project for Panama in the end” – Name, Position
Cranes on the construction site for the new mill
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Innovating excellence for the mining sector Knight PiĂŠsold continues to carve out a name for itself through its inventive approach to client solutions and its knack for customer relations Written by: Robert Spence Produced by: Andy Turner
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“Our competitive advantage is in our expertise and our client relationships” – Bryan Ulrich, Senior Vice President of Knight Piésold USA
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K
night Piésold was established in 1921 when Dr. Francis Edgar Kanthack set up shop in Johannesburg, South Africa as an engineering consultant. Over the years, the company has developed into a major global consulting firm for the mining, power, water, transportation and construction sectors by delivering high quality specialty services with respect to social, environmental and economic responsibilities. Today, the employee-owned company is comprised of over 800 experienced professionals, including consulting engineers and environmental scientists, and continues to carve out a name for
USA
itself through its inventive approach to client solutions and its knack for customer relations. “We have a global reach, but we function like a boutique provider at heart,” explained Bryan Ulrich, Senior Vice President of Knight Piésold’s USA division. Pillars of strength In terms of mining services, Knight Piésold specializes in the research, design and implementation of innovative solutions for waste
management, tailings disposal, heap leach pads, rock mechanics, groundwater evaluation, water supply, water management and environmental services. “As a global company, we’re quite small compared to our competitors,” said Ulrich. “Our competitive advantage is in our expertise and our client relationships. This means that even in an industry downturn, we are managing to stay relatively busy. For example, right now we are watching after a very large tailings dam construction job at Round Mountain in Nevada. It’s possibly 2015’s largest construction project at a mine site in Nevada.” According to Ulrich, while consulting firms and their expertise can sometimes be deemed as a commodity during rough times, the real distinction for clients is how they’re treated by their consultants. “We’ve all had good and bad experiences with customer service. At restaurants, for example, we’ve all had that one waiter who seems to disappear when we need the bill. For us, we put ourselves in our clients’ shoes and strive to w w w. k n i g h t p i e s o l d . c o m
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CETCO provides expertise in transforming minerals and polymers into technologies that improve productivity and performance. From technical problem-solving to on-site supervision, CETCO consults with customers to develop long-term solutions.
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KNIGHT PIÉSOLD understand as much as we can about their operations and their needs,” Ulrich said. “Because of our mentality towards customer service, we tend to get a lot of repeat business from previous clients. A lot of times when clients move on to other companies, they bring us on board at their new company. Customer service is one of our pillars of strength and it’s making a huge impact for us.”
USA
and creative thinkers. Our innovation comes from making site-specific solutions for each project, and it can sometimes be very challenging and rewarding” said Ulrich. “At the Rochester mine in Nevada, there is a general absence of clay for construction of heap leach facilities, so we’ve very carefully designed those facilities to use a geosynthetic clay layer product (GCL), rather than the traditional clay layer that goes along with the geomembrane,” said Ulrich.
Innovation continues to be another pillar of strength for the company. Sharing knowledge “Engineers are taught to be linear Knight Piésold places a huge
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KNIGHT PIÉSOLD emphasis on disseminating knowledge. “Internally, we hold training forums where several of our offices get together so we can exchange experiences and expertise on several topics. We just got back from Lima where we held a forum on tailings management. This is in addition to our normal mentoring and on-the-job-training,” Ulrich said. In addition to traditional educational channels such as publishing papers and participating in industry conferences, the company also organizes an annual event called Elko Roundtable. Since 2005, the all-day, no-cost event has been key in sharing information with clients and strategic vendors. Past topics have included heap leaching, tailings management, mine closure, sustainability, paste and filtered tailings, co-placement of mine waste, and several other themes. “The purpose of the Roundtable is to exchange ideas and information pertaining to broad topics revolving around the day’s selected subject,” said Ulrich. “Compared to traditional conferences and symposia, the 70
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Roundtable tends to provide a much less inhibited format for discussion — lively discussions and helpful tangential departures are encouraged.” Mining Engineering magazine publishes Knight Piésold’s reports from the Roundtable event on several occasions. Additionally, the event has its own web page where all presentations and publications are archived for easy reference. World-class leader The company has positioned itself as a leader in its fields, having been utilized on hundreds of projects around the world, including some of the biggest and most challenging surface and underground mining projects in the last century. One such project is the storied Yanacocha gold mine in Cajamarca, Peru. South America’s largest gold mine — and the second largest in the world —Yanacocha stretches approximately 535 square miles and is comprised of four operations: Cerro Yanacocha, La Quinua, Carachugo and Maqui Maqui. Its heap leach pads and associated ponds include a tailings storage
Tom Kerr, President, Knight Piésold USA
facility, process plants, treatment plants and several other facilities. “In terms of size and production, Yanacocha is very impressive. We’re really proud to have been a minor partner in the project,” said Ulrich. Since 1994, Knight Piésold has actively been involved with Yanacocha providing everything from conceptual to final designs, as well as construction management, quality control/quality assurance, support during permitting processes and operational support. The company is responsible for designing the heap leach pads and associated structures including ponds, access roads and
Bryan Ulrich, Senior Vice President, Knight Piésold USA
channels, as well as providing civil and geotechnical design for major infrastructures, technical support and water management technical support. “The La Quinua tailings facility — which resides in an active heap leach facility — is one of a kind,” explained Ulrich. It functions as an innovation that was developed based on the needs of the project. “The fluids in the two facilities don’t intermingle for obvious reasons, but it was a novel solution to a difficult problem of land constraints and minimizing our footprint. We designed a very similar facility for an operator in North w w w. k n i g h t p i e s o l d . c o m
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KNIGHT PIÉSOLD
Knight Piésold USA Team Directing Field Reconnaissance
America, which had an altogether different set of project needs and challenges.” Ulrich and his teams are currently working on an array of projects scattered across the globe, including a variety in Saudi Arabia, Latin America and the United States. 72
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Moving forward While the success of Knight Piésold can be told through the effective completion of the projects it undertakes, the company continues to be recognized for a wide range of achievements and accolades. In the last few years, the company has earned several top honors for
USA
engineering excellence and project management as well as recognition as a Top Employer. “We’re very appreciative of all the recognition and awards we’ve received in the past,” said Ulrich. As a sign of things to come, the company continues to undertake some of the biggest projects in the mining industry. Upcoming and ongoing projects for Knight Piésold’s global practices include: the Fort Knox Mine in Alaska; the Kinsevere Copper Mine in the Democratic Republic of the Congo; and the Palmaerejo SilverGold project in Mexico. “A lot of the projects that were identified a long time ago, which at the time were too difficult to tackle, are starting to come up and become attractive again. Design-wise, those have been some really interesting projects,” said Ulrich. “Recently, there have been some very large projects with some of the world’s big gold miners like AngloGold in Colombia, Hudbay in Peru and Rosemont in Arizona. In fact, we’re currently in the advanced design stages of creating a world-class filtered tailings facility for Rosemont in Arizona.” Moving forward, Knight Piésold will continue to focus on providing innovative solutions to its clients, while maintaining the company’s vision and values in the process. “Our goal is to have 15-20 years of rolling sustained growth and stability,” Ulrich concluded.
Company Information INDUSTRY
Mining HEADQUARTERS
460 West Silver Street, Suite 106 Elko, Nevada United States 89801 FOUNDED
1921 PRODUCTS/ SERVICES
Mining, power, water, transportation and construction
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The Engine of Masan Resources Masan Resources CEO Dominic Heaton discusses the company’s journey in acquiring the Nui Phao project, one of the world’s largest tungsten deposits outside China, and how the company went about developing it into a world-class asset. Written by: Robert Spence
Produced by: Glen White
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MASAN RESOURCE
M
asan Group, the listed parent company of Masan Resources, is one of Vietnam’s largest companies and has built leading businesses in the branded food and beverage sector and in the animal nutrition value chain. Its businesses include Masan Consumer Holdings, the producer of some of Vietnam’s
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most popular brands across many food and beverage categories, and Masan Nutri-Science, Vietnam’s largest local animal protein and feed company. Masan Group also is the largest shareholder in Techcombank, a leading joint stock commercial bank in Vietnam. In 2010, with a vision to put Vietnam on the map for transforming
MINING GLOBAL
the global tungsten industry, the Vietnamese company established Masan Resources and acquired a controlling interest in Nui Phao, a world-class polymetallic project in northern Vietnam. Since then, Masan has focused on key areas to complete investment requirements for the project and support its successful development of the
largest tungsten mine in the world. Nui Phao Located in Thai Nguyen Province in northern Vietnam, Nui Phao is the world’s largest tungsten mine, with an estimated reserve of 66 million tons. As the flagship asset to Masan Resources’s portfolio, the polymetallic deposit also includes a
Equipment at processing plant w w w . m a s a n g r o u p . cwow mw. / mc ao smapnarneysuorul .rccoem s
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Employees: 30,000
Industry: Specialty Chemicals
Established: 1863
SERVICES: Cytec Solvay Group delivers specialty chemical technologies beyond our customers’ imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. Our pioneering products perform specific and important functions for our customers bringing added value to their markets. Our products serve a diverse range of industries including mining, fumigation, electronics, and pharmaceutical intermediates. ONGOING PROJECTS: Our partnering efforts with our customers allow us to employ our unique chemistry to reduce costs, improve efficiencies, while offering sustainable approaches to these markets. We continue to bring new products to our customers that target their immediate needs, while our market focus enables us to create a next generation products to tackle the industry challenges.
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MASAN RESOURCE rare combination of economic mineralalization of fluorspar, bismuth and copper occurring with the tungsten. “I’m only aware of two or three polymetallic deposits in the world,” said Dominic Heaton, CEO of Masan Resources. “A project will typically have one, or maybe two recoverable minerals, but rarely anything like Nui Phao.” According to Heaton, the project originated when a Canadian junior mining company, out exploring for tin prospects, hit on some tungsten anomalies. “By the end of 2004, the company had advanced the project through a feasibility study, including starting the engineering and permitting process, until it sold the project to a local private equity group in 2006. The private equity group ran into trouble raising capital for the project and in 2008, the project went on to care and maintenance, until Masan Group acquired the project in 2010,” said Heaton. According to Masan’s website, Nui Phao mine’s resource was initially estimated by AMEC and re-
MINING GLOBAL
Dominic Heaton Chief Executive Officer
“FROM A PROJECT DELIVERY POINT OF VIEW, THE PROJECT HAS EASY ACCESS TO GOOD PEOPLE AND RESOURCES, GREAT INFRASTRUCTURE FOR CONTRACTORS AND IMPORTS THAT NEED TO COME INTO THE COUNTRY.” – Dominic Heaton, CHIEF EXECUTIVE OFFICER w w w. m a s a n g r o u p . c o m / m a s a n r e s o u r c e s
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One of Australia's largest wholesale suppliers of
SHIJIAZHUANG METS MACHINERY CO., LTD Quality Hose, Valves and Fittings
SHIJIAZHUANG METS MACHINERY CO., LTD (METSLURRY) manufactures slurry pumps, parts, crusher spares, rubber sheet, valves, rubber and PU parts, slurry hose, rubber and lined pipes, ceramic lined pipes, for global mining, quarrying, mineral process, power generation etc. industry. We use FARO 3D reverse engineering design, ab abrasion and corrosion materials forming technology, to supply our genuine clients longer wear life equipments and parts.
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MASAN RESOURCE estimated in 2011 and 2014 by Cube Consulting, in accordance with the JORC Code. A total of 376 holes were used for resource estimation conducted by Cube Consulting in 2014, of these 78 holes, 8,762 meters were drilled since the previous re-estimation in 2011. In terms of logistics, the project is well-situated as it stretches over an area of 9.21 kilometers in the Dai Tu District, accessible by road via Highway 37, railway via Vinarail railway system, and the Hai Phong port and the new Cai Lan port. “From a project delivery point of view, the project has easy access to good people and resources, and great infrastructure for contractors as well as any imports that need to come into the country,” said Heaton. “Some further works are being done, including better access, but the
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MINING GLOBAL
Engineers working at open pit
METSLURRY
METSLURRY has been committed to supply high quality, value-added manufacturing and services for pumps, valves, and other equipments used in mining processing plant. Till the end of 2014 we have already supplied over 70 direct plants in over 30 countries around the world. Our vision is “ to be your spare parts warehouse”. While mutual respect, honesty and integrity are the policies we apply on what we do and how we conduct our transactions with our valuable clients. Masan Group is our high cherished partner, and we have achieved mutual benefit in our four years cooperation. Meeting the international standard regarding quality, warranty and guaranty policies is our aim to pursue. We are turning to add more products to METSLURRY products portfolio. To be your pumps partner first coming along with other equipments upon request makes us to be your true warehouse and stock in need for your cost down activities. Website: www.metslurry.com
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IN PARTNERSHIP TO BRING SMART, INNOVATIVE SOLUTIONS Today’s mining industry requires smart, innovative and profitable processing solutions. At the world-class polymetallic Nui Phao project, Outotec is proud to be in partnership with Masan Resources.
Learn more about our sustainable solutions at www.outotec.com
MASAN RESOURCE
MINING GLOBAL
Engineers working at processing plant
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OUTOTEC
At the world-class polymetallic Nui Phao project, Outotec is proud to be in partnership with Masan Resources. To date, this partnership has led to bulk sulphide flotation circuit improvements through modifications to competitor equipment. Further improvements are planned next year with Outotec’s SkimAir flash flotation cell. The flash cell will process conventional flotation tailings material prior to the tungsten gravity circuit. This innovative circuit redesign demonstrates the benefits of close partnerships between Masan Resources and Outotec. We now look forward to building on these successes and identifying further opportunities for circuit enhancement. Delivering safety, plant availability, performance and ongoing Services support will result in Nui Phao achieving greater business operational efficiencies, reducing costs and improving viability at this flagship site in Vietnam. Our offering is based on decades of technology leadership. We are dedicated to developing and tailoring sustainable technology solutions and life cycle services for our customers in two business areas: Minerals Processing, and Metals, Energy & Water. w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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“Trepax is proud to be a part of the Nui Phao success story. We have provided peace of mind to the mine site by protecting their key process assets from wear and corrosion.”
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logistics overall are pretty good.” Nui Phao is an open-pit mine with a low strip ratio, making it one of the lowest-cost long-life producers of tungsten in the world. There is also potential to extend the mining life of Nui Phao past the current plans of 20 years.
practices, and tie this to a proven local execution team. “For us, it wasn’t just about having the right people, but rather having the right people in the right role, at the right time,” said Heaton. “For Nui Phao, we needed to build an experienced team to execute our game plan.” The Dream Team Along with the hiring of Heaton, Because execution is the key to Mason Resources secured an success, Masan Resources set instrumental element of the out to meticulously develop a team execution team when they retained of international mining industry Deputy General Vu Hong as part of professionals with extensive regional the acquisition in 2010. experience in building and operating “Mr. Hong has an extensive projects with international best background and experience with
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TREPAX INNOVATION COMPANY Employees: +300 Established: 1985 Industry: Turn Key Specialist Surface Protection Contractor & Supplier Services: Design, supply and professional installation of quality surface protection solutions for many key industries throughout South East Asia Ongoing Projects: Power Generation, Mining, Chemical Process, Engineering, Warehousing, Industrial Production, Commercial Buildings, Food and Beverage Industries Management: Mr Pongdet Serechetaphongse (CEO), Mr Paul Greenhalgh (Director), Ms Chawtip Lipivechkulkij (Director) Website: www.trepax.co.th w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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MASAN RESOURCE
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the project at hand — covering both the social and environmental side of things, including relationship with key people within the community,” said Heaton. Responsible for all Compensation &Resettlement (C&R) activitiesand external relations, Hong has worked on the Nui Phao project since 2004, as well as managed resettlement efforts for over 3,000 families during his career. Heaton brought in Dale Smith as Construction Director and Craig Bradshaw as General Director, adding key components to its team. “Dale was a vital part in the construction aspect of Nui Phao. He created a plan on how we could
SUPPLIER PROFILE
Workers working at processing plant
DEISTER CONCENTRATOR LLC LIMITED
When it comes to gravity table concentration, Deister Concentrator is the company of choice for excellent performance. With proprietary technology, Deister tables are sometimes copied, however performance is never duplicated. Deister works closely with those responsible for every stage of project development. With tables ranging in size from lab to single, double and triple deck tables, Deister’s goal is to recommend the proper sizing and configuration to achieve the highest recoveries possible at the lowest operating cost. As with tables, the Deister cyclones – available in sizes from 2” to 42” – are designed for maximum performance while focusing on customer needs. Deister works with customers to analyze feed rates and particle sizes to determine proper sizing. Whether it’s tables, cyclones, sieve bends or any equipment manufactured by Deister, the focus is the customer and a commitment to quality. Deister recently opened an office in Cornwall, England. For further information, contact Deister at w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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Huntsman Performance Products is a global manufacturer and marketer of specialty reagents for mineral processing and hydrometallurgy. With more than 40 years’ experience in the global mining industry, we have a track record for introducing innovative new products to market. Worldwide, our mineral processing reagents are used to extract base and precious metals, industrial minerals (phosphates), iron ore, mineral sands and coal. POLYFROTH® frothers, POLYMAX® dispersants, UNIMAX® depressants, POLYPRO® collectors, POLYSIL® coagulants, UNIDRI® filter aids, UNIBIND® dust suppressants and GLYTHERM® heat transfer fluids.
www.huntsman-miningchemicals.com
FLOTATION & HYDROMETALLURGY PRODUCTS FOR THE MINING INDUSTRY
MASAN RESOURCE
MINING GLOBAL
Mining engineer superintending loading operations in open pit
SUPPLIER PROFILE
HUNTSMAN
Huntsman’s Performance Products division is a leading global producer of intermediate chemistries and technologies. Masters of molecular science, we create chemical building blocks — with unique features — that simplify the production and improve the functionality of differentiated formulas employed across diverse consumer markets and industrial applications. From kind, gentle additives for skin and hair care formulations to powerful additives that boost the performance of fuels and engine oils, our performance chemistries enable continual innovation in products that shape and influence daily life. With manufacturing sites and technical teams located around the world, Huntsman Performance Products combines global reach with in-depth regional and sector-specific support. Serving major, well-established industries alongside niche, emerging markets, we manufacture more than 2,000 specialty chemicals and license in excess of 35 process technologies – giving our customers a broad scope to create sustainable, differentiated solutions for a fast-changing world. Visit our Website www.huntsman.com and for mining www.huntsman-miningchemicals.com w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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The longest successful track record of active trading in the non-ferrous raw material industry
SWITZERLAND
Geneva HQ
AUSTRALIA
INDIA
Brisbane
New Delhi
BULGARIA
MEXICO
CHILE
PERU
Lima
Agents:
CHINA
RUSSIA
BRAZIL
HONG KONG
SOUTH AFRICA
Sofia
Santiago Shanghai Hong Kong
Mexico
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Johannesburg
KOREA TURKEY
Transamine Since 1953
www.transamine.com
http://twitter.com/Transamine_HQ
MASAN RESOURCE do the project, as well as building contingency plans around that.” Heaton said. “Bringing on Craig allowed us to look forward into the project, while conducting all the necessary activities to get started. We needed someone with one eye on the long-term while being mindful of the decision making going in the heat of resettlement and construction.” Next the company brought Russell Griffin as Sales & Marketing Director to start building the customer demand ahead of operations, then added former Finance Director with Glencore Xstrata, Wayne Apted, as CFO in 2014.
SUPPLIER PROFILE
MINING GLOBAL
“We’ve assembled a worldclass management team where everyone played a critical role in getting this project off the ground and into production,” Heaton said. “If you have a clear vision of goals, as well as of your weaknesses and strengths, you have the ability to bring others in and align them with your goals.” Overcoming Challenges The success of Nui Phao didn’t come easy for Masan Resources, as the key milestones included acquiring funding, resolving community resettlement activities
TRANSAMINE
Founded in 1953, Transamine is headquartered in Geneva Switzerland with offices covering five continents and communicating with long term relationships, miners, smelters and refiners. Transamine is the world oldest independent and privately help commodities trading company. A world reputation of employees loyal to core values of integrity and reliability. Transamine works closely with major financial institutions for more than sixty years and look forward to burnishing further as the team takes full stride into the future. Website: www.transamine.com
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GRINDING AND PROCESS PLANT SPECIALISTS CMi Technical Services is a provider of specialist Installation, Operational and Maintenance support. We offer our clients access to mechanical, electrical and process experts, all closely supported by our highly experienced management team. Our broad range of experience not only applies to Grinding and Crushing circuits, but also includes expertise in CIL, Flotation, Thickening, Beneficiation, Gold Room and Wash Plants to suit today’s diverse commodities; such as Gold, Copper, Nickel, Iron Ore, Bauxite, Manganese, Coal and more. • • • • • •
Construction and Installation Teams Commissioning Support Process Plant Operation and Maintenance Laser Alignment Vibration Analysis Thermal Imaging
At CMi, your business is our KPI.
Phone: +61 (8) 6263 4437
Fax: +61 (8) 6263 4444 Email: info@cmitech.com.au Street Address: 44 Kings Park Road, West Perth WA 6005 Mailing Address: PO Box 1645, West Perth WA 6872
www.cmitech.com.au
MASAN RESOURCE
MINING GLOBAL
and training its workforce correctly to run the most efficient operation possible. Funding represented the first challenge for Masan. In 2011, US-based private equity group Mount Kellett Capital Management LP invested $100 million for a 20 percent stake in Masan Resources, including parent company Masan Group, committing over $125 million towards the development of the project. Other investments included $115 million from the Vietnam Development Bank, $90 million by a syndicate of local commercial banks and $80 million by the Standard Chartered Bank, all refinanced in 2015 with local currency bonds at lower costs with longer tenure “Because of Masan Group’s track record and credibility with the private equity
SUPPLIER PROFILE
Open Pit
CMI TECHNICAL SERVICES PTY LTD
At CMi Technical Services we have built our reputation through simply providing personnel of value for our clients. This has transpired into a broad range of experience in Operations and Maintenance of Processing Plants. Our core applies to Grinding and Crushing circuits, however diversified growth has led to include expertise in CIL, Flotation, Thickening, Beneficiation, Gold Room and Wash Plants to suit todays diverse commodities; such as Gold, Copper, Nickel, Iron Ore, Bauxite, Manganese, Coal and more. Widespread experience across Australasia, Africa, Europe, Middle East and South East Asia means CMi can provide you with the following; • Construction and Installation Teams • Vibration analysis • Commissioning support • Thermal imaging • Specialist maintenance teams for Grinding Mills, Rotary Scrubbers and Crushers • Maintenance trades support and labour supply • Operational and Mechanical Training and Assessment • Operational readiness • Safety management systems. • Engineering design for modifications or small expansion projects (de-bottle necking) • Shaft, Bore and Geometric laser alignment www.cmitech.com.au
WITH SGS, NOTHING FALLS THROUGH THE CRACKS SGS’ world class technical expertise and extensive experience supports the commissioning and operation of mines and plants. Our integrated, global approach of specialized solutions and traditional services supports the entire asset lifecycle at any stage and in any location. SGS services enhance value, mitigate cost and maximize your return on investment. Trust SGS as your independent partner for reliable in-plant and production services to help improve efficiency and the bottom line of your operation. Contact SGS today, minerals@sgs.com or www.sgs.com/mining. SGS IS THE WORLD’S LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY
MASAN RESOURCE
MINING GLOBAL
community and leading banks, we were able to obtain a hearing with some different groups to present our case and educate them on the project. The fact that we were able to raise debt capital for an unhedgeable commodity in a challenging global environment is a testament to the potential of Nui Phao.” said Heaton. The second step in furthering the project was the Compensation & Resettlement (C&R) process, affecting seven communes and roughly 1,530 households in six project sectors. Because Masan was commencing a project that originally started in the early 2000s, the company chose to focus on rebuilding the relationships with the three layers of government and the community.
SUPPLIER PROFILE
Mining engineer supervising blast hole rig operation
SGS
SGS offers an extensive range of integrated technical services for the mining sector, from exploration to closure. We can help you meet technical milestones faster and get to market sooner, with the confidence that your reports meet industry requirements. Partnering with SGS gives you an independent, ethical partner who you can trust to provide transparent and unbiased support to help you gain a competitive advantage. A broad overview of our technical services for hard rock, soft rock and energy minerals includes; • Geological Services • Analytical Services • High Definition • Mineralogy • Metallurgical Testing • In-Plant and Production Services • Process Design and Engineering • Plant Audits and Optimization • On-Site Laboratories • Inspection and Trade Certification Services • Environmental Sustainability SGS has a vast, global network of laboratories, proven experience and unmatched technical expertise. Our value added solutions contain cost, mitigate risk and enhance value.
Website: www.sgs.com/mining
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Focusing on the
World Goal with the
Real Commitment SUMMA
N.K. CONTRACTING CO., LTD. 53/96 Rangsit-Pathumthani Rd., Tambol Baan-Klang Amphur Muang-Pathumthani, Pathumthani 12000, Thailand
Fabrication and Erection Work Machine Installation, Piping and Insulation Work
Nui Phao Mining Company Ltd. Steel Platework Fabrication and Pipe Spool Rubber Line
Lycopodium Minerals Pty Ltd Terra Nova Technologies, Inc. Bouly Heap Leach Project Bouly HL Stacking System Project – 1903-4000 Platework Conveyors Fabrication Fabrication Work – 48” Heap Leach System
Ausenco Services Pty Ltd Tonkolili Iron Ore Project – Wet Season Mitigation Work
Tel: 66 2 567 1341 Fax: 66 2 567 1346 Email: marketing@summa.co.th ; summa@summa.co.th ; factory@summa.co.th
www.summa.co.th
MASAN RESOURCE “Vu Hong’s understanding of what commitments have been made previously has been vital to ensuring we maintain our standards within this project,” said Heaton. “His relationships with all levels of community and government have been invaluable to us.” Led by Hong, Masan utilized a progressive resettlement approach with three objectives in mind: minimize impact of land acquisition and other socially adverse impacts, ensure that affected people maintain or improve their economic standards, and ensure project benefits are shared with the people
SUPPLIER PROFILE
MINING GLOBAL
affected by the project as well as surrounding communities. As part of its commitment, Masan created three resettlement sites: Nam Song Cong, Hung Son 3 and Dong Bong, including an additional site, Hung Song 2 Site, to support the resettlement and economic restoration programs. In total, Masan will resettle 1,925 households over the life of the project, making it the largest resettlement project in the province and one of the largest in Vietnam. Next, Masan undertook its training development works. To achieve this the company partnered with the
MINING GLOBAL
We, Summa N.K Contracting Co., Ltd. has provided general contracting services to customer with decades of experience in a wide range of Industrial plants such as Pulp & Paper Mill, Steel plant, MDF & Plywood plant, Starch plant, Power plant, Mineral plant, Glass & Ceramic industries, Petrochemical plant etc. The category of our services provided shall be dedicated but not limited to: • Fabrication and Erection work • Machine Installation • Piping & Insulation work • Electrical work • Civil work Summa N.K. Contracting Co., Ltd. is committed to provide the high quality of services to meet the requirement of the customer and assuring their satisfaction with the most cost effective. Website: www.summa.co.th w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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SPECIALTY METALS + CHEMICALS TN P t i t gr f i iti i M
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International Quality at Regional Costs Geotech international are specialized geotechnical engineers and contractors working throughout Southeast Asia supplying geotechnical insitu testing including Lugeon permeability testing; and instrumentation design, supply, installation, and performance monitoring to international mining companies
Geotech International Pte. Ltd. 133 New Bridge Road # 25-08 Chinatown Point Singapore 059413
Telephone: +84 4 3513 2763 Email: geotech@geotechinternational.com
www.geotechinternational.com
Geotech International Vietnam Co., Ltd. So 11, Ngo 51 Hoang Cau O Cho Dua, Dong Da District Hanoi, Vietnam
MASAN RESOURCE
MINING GLOBAL
provincial Department of Labor and Social Affairs to develop and deliver a 15-month paid vocational traineeship program for about 250 projectaffected people. “The training program was a great example of us stepping back to review the necessary requirements and then going about achieving it. Because the workforce was ready in advance, the delays in commissioning allowed us to further their training,” Heaton said. The Centerpiece With all pieces in place, Masan Resources focused on accelerating the project into development — commencing the C&R process, signing Jacobs Engineering and awarding contracts. Construction started in mid-2011 and was
Operations staff
Operations staff in process plant w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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Valves
Queensland South Australia Western Australia
(Australia) Pty Ltd
AHF VALVES (AUSTRALIA) PTY LTD are proud to assist Nui Phao Mining Company with Process Valves and I-Tork Automation products for the world’s largest tungsten mine. AHF VALVES also takes it’s hat off to respect the Masan Resources/NPMC design engineers, plant instrument & maintenance engineers, trainees/operators & procurement personnel that gave AHF VALVES the opportunity together which was focussed on improving plant production campaigns, by showing innovation, commitment, affordability and integrity to obtain positive improved outcomes together.
AHF VALVES (Australia) – Global Performance – Valve & Automation Core Business:
CALL US: +61 7 5539 6540
EMAIL US: enquiries@ahfvalves.com
WWW.AHFVALVES.COM
MASAN RESOURCE completed in less than two years, with commercial production starting during the first quarter of 2014. Since then, Masan Resources has focused on increasing production rates, resulting in more consistent processing throughput and recovery levels. Now in production, Nui Phao is the largest producer of tungsten and among the largest producers of acid-grade fluorspar and bismuth in
MINING GLOBAL
the world. “We became the largest producing tungsten miner in the fourth quarter of 2014,” said Heaton. “Nui Phao accounts for 30 percent of the world total supply of tungsten and is also the largest single fluorite mine outside of China and Mexico, accounting for 6-7 percent of total global supply.” Masan Resources has successfully secured the majority of
A part of open pit and crusher w w w. m a s a n g ro u p . c o m / m a s a n re s o u rc e s
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C O M PA N Y N A M E
Mining engineer supervising blast hole rig operation 104 January 2016
MASAN RESOURCE its revenue stream by aligning with key players in each of its product sectors. In 2012, Masan signed an offtake agreement with NYSE listed CMC Cometals to sell its acid-grade fluorspar to the global industry. Similarly, bismuth is supplied to the world’s largest consumer of bismuth, 5NPlus under a multi-year supply agreement. In copper, Transamine has partnered for the sale and toll conversion of copper concentrates “Both companies have been great partners to work with since we started the project” said Heaton, adding “They have worked with us and introduced out in the market place making sure we met with the right customers at the right time.” Similarly, in 2014, Masan Resources signed a joint venture with H.C. Starck, a global manufacturer of technology metals, to both form a joint venture producing value added tungsten chemicals, as well as purchase a significant share of the tungsten production. “These contracts all represent an interesting partnership play and customer relationship in tungsten, bismuth and fluorspar,” Heaton said. By the end of 2020, Masan Resources aims to become a $2 billion company by achieving growth through mergers and acquisitions in the short term, and mineral exploration for the intermediate and long term. “The Nui Phao project is the engine of Masan Resources,” said Heaton. “I expect big things to come in the next few years.”
Company Information
INDUSTRY
Mining Global HEADQUARTERS
106 Hoang Quoc Viet St., Cau Gaiy Dist., Ha Noi, Vietnam FOUNDED
2010 EMPLOYEES
1,000 – 1,500 PRODUCTS/ SERVICES
Resources
MASA Y STORK:
reliability in asset managemen for mining, petrochemical, energy, and oil & gas sectors.
Mecanicos Asociados’ high standards, paired with suppor from STORK become Colombia’s solution for asset management and maintenance
Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: Carlos Lozano, President for MASA y STORK Colombia
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MASA Y STORK
M Determination and capacity are part of the company staff’s DNA
ecanicos Asociados S.A.S. (MASA y Stork) began operations in 1983, providing integral services for asset management to the oil & gas, mining and energy sectors. The company installs the most advanced safety systems in its clients’ facilities, positioning itself at the leadership of HSEQ-certified companies in Colombia. Other services provided by MASA include facility maintenance, upgrades and optimization. In 2007, MASA was acquired by Stork Technical Services, a Dutch global company known for its experience in fuel management since the 19th century. Becoming part of Stork was instrumental in bringing Colombia more than a century’s
Support received from Stork Technical Services makes a difference from basic tools and equipment to labor procedures
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experience in the latest generation machinery, tools, equipment, and other resources supplied by the Dutch company. Currently, MASA y STORK provides top-level services to Equion and Ecopetrol, Colombia’s top petroleum companies. MASA y STORK operates under ISO 14001:2004, ISO 9001:2008 and OHSAS 18001:2007 certifications, and as well as under STORK’s global internal standards. Carlos Lozano, President for MASA y STORK Colombia since 2013, specializes in management for complex organizations. His experience in the petroleum sector goes back to 1985, working for different companies, such as Woodgroup, Ecopetrol and BP. “I am currently enrolled in an MBA program at the Los Andes University,” Lozano said. MASA y STORK operates at the same pace as the local market does, dependent on the highs and lows of the commodities’ global market. This sometimes results in renegotiations, in order to keep providing high quality services at a competitive price. Flexibility is a key trait to possess within this sector; strongholds and weaknesses must be detected in order to determine timely solutions for every client’s procedures. Creating win-win dynamics and project tracking ensures client retention. “There have not been any shortcomings in our service’s quality. We understand our clients’ needs and create affordable alternatives,” the executive said.
Key People Carlos Lozano President for Mecanicos Asociados S.A.S. Lozano is a mechanical engineer, graduating in 1984 from Colombia National University. In 1985 he began working at the Caño LimonCoveñas oil pipeline, found by Occidental Petroleum Corp. in 1983 and currently Ecopetrol’s property, where Lozano worked also. He also worked for BP and Woodgroup, the last 15 years in the latter before joining MASA y STORK as president in 2013. Aside from engineering, Lozano earned an MBA from Monterrey Technological’s EGADE business school (School for management graduates) managerial development program. At the close of 2015 he was enrolled in the Los Andes University MBA program. 109
MASA Y STORK
“Mecánicos Asociados w business in their chain corporate p
– Carlos Lozano, President for
Operation optimization and cost reduction through technology Some of the forthcoming adjustments at MASA y Stork include remote surveillance for their clients’ facilities, reducing the need for 100 percent onsite presence of security teams. Current times and technology allows experts to perform centralized monitoring, assisting onsite squads. “We are introducing technology to provide remote assistance to our staff at every facility, increasing our efficiency, optimizing our resources and providing real-time data, resulting in timely solutions,” Lozano said. 110
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was already a very solid n supply purchases and procedures”
r Mecanicos Asociados S.A.S.
The STORK factor: key differentiation over the competition Evaluation of possible suppliers for MASA y STORK is performed by a third party, which guarantees compliance with the company’s standards. Operations running under STORK’S umbrella increase surveillance levels on any area, providing leverage to Mecanicos Asociados S.A.S. tech support. The company also offers steam turbine manufacturing, increasers, valve maintenance and other services to help the Colombian operation to work self-sufficiently. “Mecanicos Asociados was already a very solid business in their supply chain purchases and w w w. m a s a t e a m . c o m
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MASA Y STORK corporate procedures before becoming STORK’s acquisition,” the president explained.
The highly-skilled personnel at MASA y Stork is trained to minimize possible risks and accidents
Above the standard As separate companies, MASA and STORK both comply with global and domestic standards such as the ISO 14001, ISO 9001 and OHSAS 18001. Both companies are certified with a 95 percent grade – well above the required 85 percent — by the Colombian Safety Counsel and the Colombian business unit for Asset Management Solutions
One of MASA y Stork’s major abilities is the detection of improvement areas
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Ltd. The company’s CSR operation is also looking forward to obtain the ISO 26000 certification as well as ISO 55000. Accident and risk prevention: everyone’s social responsibility Among the efforts carried by MASA y STORK to reach the community, the MAXLISTO program stands out the most. This series of programs are directed to children, educating them about accident prevention. “We think that training children from schools in our surrounding communities about industrial safety can have a positive effect on their parents, so they return home safe and sound,” Lozano said. The company’s “Plan Padrino” (Godfather Plan), carried out in different communities where MASA y STORK works, is an integration resource for community members joining the company’s staff, each being personally assisted by a MASA y STORK experienced employee. “This program has also contributed to a decrease in the accident rate among our staff,” the executive said. The immediate future The president of MASA y STORK Colombia foresees 2016 to be a challenging year, due to recession in the energy sector. But the company’s flexibility and sense of opportunity are traits well suited to such market conditions. Having
Contar con una amplia participación del mercado es fruto del esfuerzo y dedicación para brindar las mejores soluciones en cada compromiso
Offshore and firm soil reliability
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since
Specialized importers of industrial equipment and tools
SOLUTIONS FOR ASSEMBLY AND INDUSTRIAL MAINTENANCE
We are authorized importers of : R
R
R
HYDRAULIC EQUIP
TUBBING TOOLS
HOISTS
R
HAND TOOLS
HAND TOOLS
NEUMATIC TOOLS
POWER TOOLS
HYDRAULIC AND DRILLING TOOLS
R R
POWER TOOLS
R
R
LIFTING EQUIPMENT
ELECTRIC DIAGNOST
WASHERS
Main office: Bogotá Carrera 25 # 17-64 pbx: 57 -1- 201 05 55 ventas@fisa.com.co Branches in Colombia: Calí, Medellín, Barranquilla, Cartagena, Bucaramanga
www.fisa.com.co
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established contact with businesses within sectors different from those served regularly, and the company is already in negotiations to take its know-how to Peru’s mining and petroleum refining sectors and Bolivia’s gas industry. It is also considering a limited engagement in Ecuador, since the country’s laws allow foreign companies to offer nothing more than projects and consulting services in the oil and mining industries. This strategy will not only expand the sectors currently served by the company, but also retain current clients, thus maintaining the MASA y STORK’s leadership and market share. The company will also begin EPC operations, which can enable its growth within the region. “We have a significant amount of signed commitments and clients, and due to the market’s current conditions, we look forward to maintaining the same level,” said Lozano.
Company Informtaion NAME
MASA y STORK INDUSTRY
Integral services for mining, oil and gas, and energy sectors HEADQUARTERS
Carrera 7 # 74-56, Bogotá, Distrito Capital, Colombia FOUNDED
1983 acquired by STORK in 2007 EMPLOYEES
6,000 REVENUE
US $300 million WEBSITE
www.masateam.com
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