Mining Global Magazine - May 2016

May 2016 • www.miningglobal.com

brings mining excellence to Brazil

TOP 10 MININGS E COMPANI

FINANCE Top mining companies on the Toronto Stock Exchange

PROJECTS The world’s largest gold mines

IN THIS ISSUE

EDITOR’S COMMENT

Mining trends W E L C O M E T O M AY ’ S E D I T I O N

of Mining Global. In this issue, we uncover the mining industry’s top 10 companies, according to PWC’s 2015 Review of Global Mining Trends.

Another feature looks at the world’s biggest gold mines, including The Witwatersrand Basin in South Africa, which has produced almost 40 percent of the world’s gold in the last 120 years. We also have a roundup of the top mining companies on the Toronto Stock Exchange, which presents alternative opportunities for people seeking to invest - the World Federation of Exchanges ranks the TSX as the eighth largest in the world based on its total market capitalisation of $2.2 trillion in 2014.

We hope you enjoy the issue – let us know your feedback @MiningGlobal

Lucy Dixon Managing Editor EMEA lucy.dixon@bizclikmedia.com

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CONTENTS

Features

PROJECTS

6

The world’s largest gold mines

TOP10 mining companies: The fight for survival

14 FINANCE Top mining companies on the Toronto Stock Exchange 4

May 2016

24

Company Profiles

56

AUSTRALIA Civmec

36

AUSTRALIA MACA

74

LATIN AMERICA Coeur Mining LATAM

92

LATIN AMERICA Soletanche Bachy Chile

5

PROJECTS

The world’s largest

Gold is finding a delicate footing on the stock market, but it is not out of the woods yet. We take a look at some of the largest, most stable gold mines in operation, and examine the challenges they face W ri t t e n b y: Mining Global staff

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PROJECTS MAKING DECISIONS ABOUT company or personal investments requires appropriate levels of research. When selecting investments in gold or gold mines, professionals want to work with not only the largest companies, but also with the most productive mines. These productive mines bode well for potential profits in the future. The following is a list of some of the cream of the mining crop.

MINE: THE WITWATERSRAND BASIN

Photo by James St. John - Auriferous, uraninitic, hydrocarbon-rich stromatolite rock (Carbon Leader Gold Ore, South Africa) 3, CC BY 2.0 - http://commons.wikimedia.org/w/index.php?curid=34347305

According to National Geographic Magazine, almost 40 percent of the world’s gold for the last 120 years was mined at the Witwatersrand Basin in South Africa. The mine has gold deposits dating back roughly 3 billion years.

Pennsylvania State University states that the mine produced almost 1,000 tons of gold during the 1960s, but the levels of gold production have declined over time.

Still, in recent years, the gold mine in South Africa produces roughly 320 tons of gold.

AngloGold Ashanti Ltd. uses machinery to produce gold in South Africa to reduce the potential dangers. In addition to increasing safety, advances in mining machinery helps to reduce delays in production throughout the region, according to the Wall Street Journal.

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May 2016

GOLD MINES

MINE: THE GREAT MINES OF CHINA China is one of the largest producers of gold in the world, but the gold comes from several different mines throughout the country. The World Gold Council suggests that roughly 460 tons of gold comes from China alone.

Zijin Mining is one of the largest mining companies in China for gold and other metals. The company mines almost 175 tons of gold each year.

The company primarily mines metals in China, although it also engages in international mining operations. While the growth may be slow and gradual, China will see an increase in the gold mining industry by 2018.

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PROJECTS

MINE: GRASBERG MINE

The Grasberg Mine in Indonesia is considered the world’s largest gold mine. Accord Reuters, the gold deposits in the mine are estimated to value roughly $16.2 billion.

The company with the most investment and mining operations in the area is Freepo Inc. Due to changing licensing agreements and the expiration of a previous agreem government in Indonesia, the company is renegotiating its options for future mining

While the mine is expected to show lower than average production, negotiations su company will see positive changes in the future. A key factor impacting the compan demands of the Indonesian government. The government expects to own almost 2 McMoRan Indonesia by the end of the year and has demands for 30 percent owne result, a portion of the company’s profits will return to the country for mining rights 10

May 2016

GOLD MINES

ding to

ort-McMoRan ment with the local g operations.

uggest that the ny’s profitability is the 20 percent of Freeportership by 2019. As a and licensing.

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PROJECTS

MINE: PUEBLO VIEJO GOLD MINE The Pueblo Viejo mine in the Dominican Republic is one of the largest mines for gold in the world. The mine is owned by two companies: Goldcorp and Barrick Gold Corporation. Goldcorp owns 12

May 2016

roughly 40 percent of the mine, while Barrick Gold Corporation owns the remaining 60 percent.

The amount of gold produced by the mines results in an estimated value of roughly $1.3 billion per year in exports. The mine continues

GOLD MINES

producing relatively high levels of gold, but the future of the mines depend on the possibility of maintaining workers.

A key problem with the area is the quality of the water and the risk to miners. Mining companies have invested in cleaning efforts to improve water quality and take measures to ensure any water released into the rivers does not contain dangerous elements. The water contamination requires a constant investment that impacts profitability; however, the same efforts also increase the possibility for continued

operations and profits over time.

The largest gold mines in the world produce tons of gold each year, but the possibilities for the future vary significantly based on the risks and complications.

Safety concerns impact many of the largest gold mines, while complications with governmental authorities and problems with the quality of the ore impact the future of the companies. The key to selecting the right investment is focusing on the companies that have the best strategies to balance safety of the mines with managing high productivity.

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Photo by nodomain.cc - Flickr, CC BY 2.0, http://commons.wikimedia.org/w/index.php?curid=1309639

FINANCE

Top mining companies on the Toronto Stock Exchange If you are looking to invest in a mining company, the Toronto Stock Exchange (TSX) might be the best place to start W ri t t e n b y: Mining Global staff

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FINANCE STOCK EXCHANGES OTHER than New York’s present alternative opportunities for people seeking to invest.The World Federation of Exchanges ranks the TSX as the eighth largest in the world based on its total market capitalisation of $2.2 trillion in 2014.

The number of companies on the TSX has varied over the years. There were more than 1,500 in 2014. In 2016, the two exchanges owned by the TMX Group, the TSX and the TSX Venture Exchange, listed 1,294 companies.

Out of these companies on the two exchanges, 241 are mining companies. According to a TMX report on mining, 53 percent of the financing of the world’s mining companies was done on the two exchanges in 2015.

Standard & Poor’s keeps track of 60 large companies listed on the Toronto Stock Exchange via its S&P/TSX 60 Index. There are 12 mining companies on this index. In rough order of annual revenues, they are:

BARRICK GOLD CORPORATION The Toronto-based company made just over $9 billion in revenues in 2015, according to its annual report. It’s the largest gold mining company in the world, with operations on five continents.

The annual report lists four mining sites based in the United States: the Goldstrike mine, the Cortez mine and the Turquoise Ridge JV mine, all in Nevada; and the Golden Sunlight mine in Montana. Barrick also has mines in Canada, the Dominican Republic, Peru, Chile, Argentina, Tanzania, Zambia, Saudi Arabia, and Papua New Guinea. Barrick’s leaders include Executive Chairman John L. Thornton and President Kelvin Dushnisky.

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May 2016

01

T O P M I N I N G C O M PA N I E S O N T H E T S X

TECK RESOURCES LIMITED Based in Vancouver, Teck Resources made $8.3 billion in revenue in 2015, according to its annual report. It has operations in the United States, Canada, Chile, and Peru. Its mines include: the Antamina copper and zinc mine in Peru; the Carmen de Andacollo copper and gold mine and the Quebrada Blanca copper mines both in Chile; the Frontier oil sands mine in Alberta; the Red Dog zinc mine in Alaska; the Pend Oreille zinc and lead mine in Washington state; and several steelmaking coal mines in British Columbia. The company’s leaders include Chairman of the Board Norman Keevil and President and CEO Donald Lindsay.

02

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FINANCE

03 GOLDCORP INC. Another Vancouver-based company, Goldcorp made more than $5.1 billion in revenues in 2015, according to its “Financial Highlights” report. The company has mines and projects in Canada, the United States, and Latin America, according to its website. The company projects it will produce hundreds of thousands of ounces of gold from its Canadian gold mines in Eleonore, Porcupine, and Red Lake.

It had record production from its gold mine in Penasquito, Mexico in 2015 as well as mines in the Dominican Republic, Argentina, and Guatemala. The company’s leaders include President and CEO David Garofalo and Executive Vice President Russell Ball.

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T O P M I N I N G C O M PA N I E S O N T H E T S X

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KINROSS GOLD CORPORATION Headquartered in Toronto, Kinross earned about $3.05 billion in revenues in 2015, according to its 2015 Annual Report. The company has 10 mines in the Americas, West Africa, and Russia, according to its Operations report. Its American mines include the Fort Knox Gold Mine in Alaska, the Buckhorn Gold Mine in the state of Washington, and the Round Mountain Gold Mine in Nevada. Its Paracatu mine is the largest gold mine in Brazil and one of the largest in the world. The corporate leaders of Kinross include President and CEO J. Paul Rollinson and Executive Vice President Tony Giardini.

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FINANCE

05

CAMECO CORPORATION Saskatoon, Saskatchewan-based Cameco was the world’s second largest producer of uranium in 2014, according to this World Nuclear Association report. Its McArthur River mine in Canada was the world’s largest uraniumproducing mine in the world. Two of its other mines, the Inkai mine in Kazakhstan and the Rabbit Lake mine in Canada, are also among the world’s largest producers. Cameco earned roughly $2.75 billion in revenues in 2015, according to the company’s 2015 Annual Report. Its corporate leaders include Chair of the Board Neil McMillan and CEO Tim Gitzel.

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By First Quantum MInerals (FQM) - FQM Image Library, Public Domain, http://commons.wikimedia.org/w/index.php?curid=25001646

T O P M I N I N G C O M PA N I E S O N T H E T S X

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FIRST QUANTUM MINERALS LTD.

The third Vancouver-based company on this list, First Quantum Minerals earned just under $2.7 billion in revenue in 2015, according to this press release about its 2015 performance. The company boasted that it produced a large amount of copper from its Sentinel mine in Zambia, the Kevitsa mine in Finland, the Las Cruces mine in Spain, and the GuelbMoghrein mine in Mauritania. Some of the company’s mines, including the ones mentioned above, also produce gold, nickel, zinc, and cobalt, according to its Operating Mines report. First Quantum’s leaders include Chairman of the Board and CEO Philip Pascall and President Clive Newall.

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By Agnico-Eagle - Agnico-Eagle Mines Limited, CC0, http://commons.wikimedia.org/w/index.php?curid=16231252

FINANCE

07

AGNICO EAGLE MINES LIMITED

Headquartered in Toronto, Agnico Eagle Mines made $1.985 billion in revenue in 2015 from its mining operations, according to this news release about its 2015 performance. Its mines include the LaRonde, Canadian Malartic, Goldex, and La India gold mines, with the first three in Quebec and the latter in northern Mexico. Agnico also owns the Kittila gold mine in Finland and other gold mines in Canada and Mexico. The company’s corporate leadership includes Vice Chairman and CEO Sean Boyd and President Ammar Al-Joundi.

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T O P M I N I N G C O M PA N I E S O N T H E T S X

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YAMANA GOLD INC.

Yamana Gold is also based in Toronto. Its 2015 revenue totaled $1.8 billion, basedon the sale of 1,248,401 ounces of gold, 8.9 million ounces of silver, and 126 million pounds of copper, according to its 2015 Annual Report. Its mines include the Chapada goldcopper mine in Brazil, the El Penon gold-silver mine in Chile, and the Canadian Malartic gold mine in Quebec. The company’s leaders include Chairman/CEO Peter Marrone and Executive Vice President Charles Main.

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PWC’s Top 10 mining companies:

The fight for survival

Research based on PwC’s 2015 12th annual review of the top trends in the global mining industry – www.pwc.com/mining

TOP 10 According to PWC’s 2015 Review of Global Mining Trends, the gloves are off for the big boys in the mining industry. All time low prices, all time high volumes, minimal capital investment, job losses galore – going into 2016 there were high expectations set around cost efficiency, improved capital management and, of course, new technology. The big question remains - can they reward their long suffering shareholders?

Mining Global looks at the PWC report and who is leading their fight for survival

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TOP 10

01 BHP Billiton

BHP Billiton is an Anglo-Australian multinational mining, metals and petroleum company headquartered in Melbourne, Australia. It is the world’s largest mining company, measured by 2013 revenues, and Australia’s largest company.

CEO: Andrew Mackenzie Headquarters: Melbourne, Australia Revenue: 61.2 billion AUD (2015) www.bhpbilliton.com 26 May 2016

P W C � S T O P 1 0 M I N I N G C O M PA N I E S

02 Rio Tinto

Rio Tinto Group is a British-Australian multinational metals and mining corporation with headquarters in London, United Kingdom and a management office in Melbourne, Australia.

CEO: Sam Walsh (leaving July 2016) New CEO: Jean-Sebastien Jacques Headquarters: London, United Kingdom Revenue: 34.83 billion USD (2015) www.riotinto.com

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TOP 10

03 China Shenhua Energy Company Ltd. China Shenhua Energy Company Limited is the largest coal mining state-owned enterprise in mainland China, and the largest coal mining enterprise in the world. It is a subsidiary of Shenhua Group.

Chairman/CEO: Zhang Yuzhuo Headquarters: Beijing, China www.csec.com 28 May 2016

P W C � S T O P 1 0 M I N I N G C O M PA N I E S

04 Glencore

Glencore plc is an Anglo–Swiss multinational commodity trading and mining company headquartered in Baar, Switzerland, with its registered office in Saint Helier, Jersey.

CEO: Ivan Glasenberg Headquarters: Baar, Switzerland Revenue: 170.5 billion USD (2015) www.glencore.com 29

TOP 10

05 Vale S.A.

Vale SA is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil.

Vale is the largest producer of iron ore and nickel in the world.

CEO: Murilo Ferreira Headquarters: Rio de Janeiro, Brazil Revenue: 26.05 billion USD (2015) www.vale.com 30 May 2016

P W C � S T O P 1 0 M I N I N G C O M PA N I E S

06 Coal India Limited

Coal India Limited is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India. It is the largest coal producer company in the world and contributes around 82 percent of the coal production in India.

CEO: Suthartha Bhattacharya Headquarters: Kolkata, India www.coalindia.in

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TOP 10

07 PotashCorp. of Saskatchewan

PotashCorp is the world’s largest fertiliser company by capacity, producing potash (K), nitrogen (N) and phosphate (P).

With operations and business interests in seven countries, PotashCorp is an international enterprise and a key player in helping to feed the world.

CEO: Jochen Tilk Headquarters: Saskatoon, Canada Revenue: 8.03 billion USD (2012) www.potashcorp.com

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P W C � S T O P 1 0 M I N I N G C O M PA N I E S

08 Anglo American Anglo American is one of the world’s largest mining companies.

Their portfolio spans iron ore and manganese, metallurgical and thermal coal, copper, nickel, niobium and phosphates, platinum and diamonds.

CEO: Mark Cutifani Headquarters: London, United Kingdom Revenue: 20.46 billion USD (2015) www.angloamerican.com 33

TOP 10

09 Freeport-McMoRan Copper & Gold

Freeport-McMoRan is a premier U.S.-based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.

CEO: Richard Adkerson Headquarters: Phoenix, AZ Revenue: 15.88 billion USD (2015) www.fcx.com

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P W C ” S T O P 1 0 M I N I N G C O M PA N I E S

10 Grupo México

Grupo México is the largest mining corporation in Mexico and the third largest copper producer in the world through ASARCO. Ferrocarril Mexicano, the company’s rail transport division, operates the nation’s largest rail fleet.

CEO: Germán Larrea Mota-Velasco Headquarters: Mexico City, Mexico Revenue: 10.1 billion USD (2012) www.grupomexico.com 35

AMONG

THE MACAWS MACA Ltd has recently entered the mining market in South America with great success and is rapidly making itself part of the Brazilian mining ecosystem Written by: John O’Hanlon | Produced by: Glen White

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MACA

Volvo fleet at Antas

M

ACA are industry leaders throughout Australia known as a competent and established contractor specialising in earthmoving, civil work and specialised crushing and screening work for mining projects. It is widely acknowledged that the mining industry is having a hard time, particularly the Western 38

May 2016

Australian iron ore sector. Projects are running at capacity to get as much upside from volumes as possible, but long term prospects remain gloomy.

STRENGTH IN DIVERSE PROJECTS MACA’s management, noting current mining market trends,

AUSTRALIA

diversified at the time of the global financial crisis, diversifying across commodities through gold, nickel, iron ore and diamond projects in Western Australia. Its most timely and visionary action was to look abroad; in 2013, it sent a team to Brazil to explore opportunities in the country’s vibrant mining economy.

“Our systems and structure

weren’t in place to venture abroad,” said Mitch Wallace, General Manager for MACA Brazil Operations, “but we looked closely at the Tucano project for Beadell Resources, an Australian company that had a gold project up in Amapá State in the northern region of Brazil.

The following year we came over to Brazil in earnest and, in November w w w. m a c a . n e t . a u

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BEING THE FIRST KEEPING THE LEAD Equipamentos Agrícolas Volvo.

Fifty years ago the world’s first articulated hauler rolled off the Volvo production line in Braås, Sweden. Fondly known as ‘Gravel Charlie’ this machine would be the first step on a fifty year journey which has seen Volvo haulers transform earthmoving and transport operations in the construction sector.

Fifty years later and the Volvo articulated hauler line up is still leading the way.

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Volvo Dealer for SP, RJ, ES, MG, GO, DF, TO, MA, PA, AP, AM and RR

Volvo Construction Equipment

Dump trucks at Tucano

Tucano

Resource

Gold

Client

Beadell Resources Limited

Location

AmapĂĄ State - Brazil

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May 2016

started our first project for Beadell, which was to provide mining services through management and plant rental for Beadell at its Tucano project.�

Tucano is an established gold mine that has been producing for Beadell since 2012, and from it, Beadell produced more than 122,000 ounces in 2015. It is a huge project, covering 2,500 square kilometers that hold reserves of 5 million ounces and with expansions highly likely. Convinced that they could make a difference, the MACA team injected capital into the project and set about doing the work they

AUSTRALIA

know best.

Though they are on the same latitude, Brazil and Western Australia are very different environments. The most apparent difference is the weather: very rarely is a WA project held up by rain, whereas North of the Amazon River, annual rainfall is measured in meters as opposed to millimeters, most of it falling between January and May. Generally, service providers simply shut down during these months, but MACA understands that the primary goal of every miner in the world is to move ore, and that for every ton of

Wet season at Tucano site

ore delivered to the stockpile results in seven or eight tons of waste matter that has to be shifted. “It was hard getting things moving last year,” said Wallace. “One truck with a flat tire sat submerged in mud up to its front bumper for eight weeks.

Our focus was to safely establish haul roads and operating systems so we could operate through the wet season.”

With Tucano well under way, MACA started its second Brazil contract in November 2015: a five-year deal to support Avanco Resources at its Antas project in the

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MACA

state of Pará. This is a high grade – better than three percent – copper project with gold credits. MACA currently has 75 direct employees on site engaged in mining services, plant management and drill and blast activities. At present, this is a surface mine, but MACA plans to diversify in underground mining services and hopefully continue support and grow with its client Avanco.

In both cases, according to Wallace, MACA has chosen to work with a client it already knows well.

“We like working with small and mid

SUPPLIER PROFILE

AUSTRALIA

tier clients because you know the management is not going to change: we can build a strong relationship with them. We are aligning ourselves with the mid tier people and growing with them,” he said.

SOURCING LOCAL AS SETS In all, the company employs around 150 national employees directly and manages as many as 500 across both projects. This is in addition to the 16 expatriates in training and technical advisory roles.

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Turnaround at Tucano commenced. Improved operational efficiency and exploration potential will underpin future growth.

Beadell Resources Limited is an ASX listed gold producer with forecast gold production in 2016 of 145,000 – 160,000 ounces from its 100% owned Tucano mine, North of Brazil.

Tucano has an existing multi-million ounce JORC gold resource with significant exploration potential.

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MACA

sustainable employment here in Brazil, and continuously improve mining practices ,” said Wallace.

“This will be achieved through continuous improvement, upskilling our workforce and introducing safe and efficient mining practices. One of the prevalent barriers throughout South America is that people are operationally single-tasked. It’s our goal to introduce a multi-skilled and diversified workforce. We have identified some quick fixes

AUSTRALIA

and long-term solutions, and will implement programs so that we can keep continuously improving.

Brazilian people are passionate and enthusiastic about learning new things, and we have to be able to offer an attractive package to source and retain the best people within the sector.”

Working in Brazil and negotiating recruitment, tax and contract law issues is complex, and having a competent local partner is vital.

Start of shift - Toolbox meeting in Tucano

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MACA

MACA was fortunate in being able to form an association with FFA Legal and its founder Luis Azevedo, a well-respected mining geologist and corporate attorney.

“The support FFA has provided MACA has enabled us to focus on what we do best: provide reliable and safe support services to our clients and the broader resource sector. Without the team at FFA, we wouldn’t have been as fortunate in experiencing the early success we have seen,” said Wallace.

“Procurement and best practice asset management is our bread and butter at MACA and my background throughout the last 20-25 years,” he added. Operating in Brazil is a completely different ball game

AUSTRALIA

with barriers to entry designed to encourage local manufacturing places and huge restrictions on importation and foreign investment.

The majority of large mining equipment needed for mining is not made in Brazil though, and imported goods are extremely expensive.

For example, a earthmoving tire is typically 60% more expensive in Brazil than in Australia. Wallace said that the outlook does look promising, however, given that a change in government could create a possibility of changes within Brazil.

Many service providers will try to save and cut costs by sourcing equipment off shore, but Wallace does not agree with that strategy.

“We are proud to have been able to continue these relationships with their South America offices. Companies such as Liebherr and Orica were very quick to assist us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.”

– Mitch Wallace, General Manager (Brazil Operations)

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EXECUTIVE MANAGEMENT

CHRIS TUCKWELL Managing Director and Chief Executive Officer B Eng (Construction)

MITCH WALLACE General Manager (Brazil Operations)

GEOFF BAKER Executive Director of Operations

TIM GOOCH General Manager (Mining) B Eng (Mining)

PETER GILFORD Chief Financial Officer / Company Secretary BCom, CA

MAURICE DESSAUVAGIE General Manager (Civil) B Eng (Civil)

MACA

“We have always sourced our equipment through OEM suppliers to secure their support. Our relationship with Tracbel and its CEO Luiz Gustavo R. Magalhães Pereira has been unbelievably helpful to us. Without his assistance and support, we would not be where we are today,” Wallace said.

Tracbel is a family-owned business, based in Minas Gerais and with 25 branches covering 75 percent of Brazil. Tracbel is a

AUSTRALIA

licensed dealer for many OEMs, including Volvo and Michelin.

MACA has always been proud of its long standing relationships with many companies in Australia.

Loyalty, customer services and reputation are often more important than price. “We are proud to have been able to continue these relationships with their South America offices,” said Wallace.

“Companies such as Liebherr and Orica were very quick to assist

Mitch Wallace and Geoff Baker with expats at the Antas site

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51

CO M AM CA PA N Y N A M E

First load at Antas site

us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.”

A C O M PA N Y WITH A HEART There are plenty of opportunities for expansion in Brazil, and MACA’s 52

May 2016

contracts department is working on prospects at present, but the company won’t overstretch itself at the expense of its existing clients.

The two projects in the North take up a lot of time, even for a hands-on company like MACA. Travel around Brazil is challenging and commuting between Rio de Janeiro—where

AUSTRALIA

Antas

Wallace’s office is located—and Amapá State is several thousand kilometers and therefore absorbs a lot of valuable time.

Though Wallace spends extended periods away and only gets to see his family back in Australia once every three or four months on average, boredom is never his

Resource

Copper

Client

Avanco Resources Limited

Location

Pará State - Brazil

problem. MACA is a company with a heart, actively supporting a range of Not-for-Profit organizations and community programs. Wallace manages to find time to contribute to these efforts. The Hawaiian Ride for Youth (HRFY) began in 2003 when a small group of recreational cyclists in Australia decided to raise w w w. m a c a . n e t . a u

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MACA

Orica provides market-leading customer solutions to improve productivity and resource efficiency in the mining, quarrying, oil and gas and infrastructure sectors. An Australian company with a global footprint, Orica has a diverse workforce of over 14,000 people, with operations in more than 50 countries and customers in more than 100.

Orica’s value of No Accidents Today underpins our commitment to the safety, health and wellbeing of our people and customers, the environment, and the communities in which we operate.

orica.com

funds for Youth Focus to assist in the prevention of youth suicide, depression and self-harm.

“2016 was my fourth HRFY. Though working abroad made training a little difficult, the sacrifice required to ride a few kilometers became insignificant, compared to the suffering many young people face with life’s challenges,” Wallace said. “I flew back to Australia 54

May 2016

Ride to Conquer Cancer

on March 23 to be a part of this amazing event that reaches out to so many young people.”

HRFY is held annually in March across five days, with riders covering over 700 kilometers. “On our journey, we stop at high schools to engage the students in the issues of youth suicide, depression and self-harm and the services that Youth Focus provides. The riders

AUSTRALIA

Company Information NAME

MACA INDUSTRY

Mining HEADQUARTERS

Welshpool, Western Australia BRAZIL PROJECTS

Tucano Resource - Gold Antas Resource - Copper

also share their personal stories and experiences as many have been touched in some way by these very personal issues,” he said.

Another bike ride, the MACA Ride to Conquer Cancer 2016 in support of the Harry Perkins Institute of Medical Research, takes place in Perth. Last year 300 MACA riders raised $1.2 million for this cause. This may not seem very relevant to Brazil, but cancer is a global problem, and among others Tracbel’s Luiz Gustavo Pereira is enthusiastically supporting the event.

MINING SERVICES

Load and Haul Drill and Blast Crush and Screen Materials Handling

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AN AC

C g the ag

ATTITUDE OF ACHIEVEMENT

Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains gile philosophy that is keeping the company ahead in challenging times.

Written by: John O’Hanlon | Produced by: Glen White

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E

stablished late in 2009, Civmec wasted no time in making itself the go-to multidisciplinary service provider to the Western Australia (WA) contracting market, winning its first contracts to construct two 400T precast intake pump structures for the Binningup Desalination Plant and site civil works in the same year. 2009 also marked the start of construction of its waterfront facilities on the Australian Marine Complex (AMC) at Henderson south of Perth.

Today, Henderson is the largest undercover fabrication facility of its kind in Australia at 120,000 square metres. Roughly a quarter of the facility is dedicated to the fabrication, assembly and commissioning of smart modularised structures up to 4,000 square metres and 18 metres high under a single roof. “It couldn’t be in a better location,” says Civmec CEO Pat Tallon. “We can do pretty much anything that any customer can throw at us, and we can do it very efficiently and very quickly.”

According to Tallon, all of Civmec’s sites, spread from 58

May 2016

Western Australia to New South Wales, Queensland and the Northern Territories, were chosen for optimum access to ship, road and rail logistics. In its first four years, Civmec targeted the booming mining and offshore oil and gas (O&G) sectors. Despite recent falls in commodity prices, which have hit Australia’s iron ore, coal and hydrocarbons sectors particularly

CONSTRUCTION

Civmec Henderson

hard, the solid reputation Civmec has gained with the oil industry, such as providing the subsea manifold for Apache’s Coniston project, have ensured a healthy continuing order book.

“The contracts are smaller than they were before, but there is still a requirement for innovative expertise – and smaller jobs require just as much project management input as

the larger ones,” says Tallon.

It’s a similar story in mining. Low prices mean that the majors are typically working their plants to their nameplate capacity and beyond as volume takes the place of margin.

The emphasis of the iron ore market has shifted to some extent from China to fast growing markets including India and developing African and Asian economies. w w w. c i v m e c . c o m . a u

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Building with strength, performance and passion.

Holcim is one of the world’s leading construction materials companies, delivering cement, aggregates and concrete in over 70 countries. With strength, performance and passion we have been supporting Australia’s construction industry for the past 100 years.

Previously known as Readymix in Australia our products have built some of our country’s most iconic landmarks from major infrastructure, civil and mining projects right through to residential. Our 3,000 people located at 300 sites help us deliver. With strength, performance and passion. www.holcim.com.au | ph (02) 9412 6600

Strength. Performance. Passion.

AUSTRALIA

However there is still a significant level of confidence among companies like Rio Tinto, which has partnered with Civmec on important projects and the huge Hancock Prospecting’s Roy Hill development in the Pilbara, where Civmec was called in when an overseas fabrication contractor failed to deliver. A large package of work was involved, including three structural steel modules up to 160 tonnes, platework, conveyors, extensive cabling, electrical switchrooms and up to 620 Civmec personnel to

deliver the job on a tight nine-month schedule.

“We are happy with our performance at Roy Hill, because it proved we can deliver technically and commercially on a job like this,” says Tallon.

A TA L E O F D I V E R S I F I C AT I O N Nevertheless the downturn is a fact, with Tallon explaining the importance of planning from the outset to diversify from year five onwards and to widen the

SUPPLIER PROFILE

HOLCIM

Products and services Holcim operates right across the Australia supplying construction materials from a network of more than 200 concrete plants, 900 mixer trucks, 60 quarries, 16 Humes precast manufacturing plants, and mobile and on-site contracting facilities.

We offer an extensive array of premix products designed to achieve specific properties based on their application, transport and construction requirements. Mobile concrete batching and on-site operations service major projects and remote rural communities. Holcim provides an extensive range of technical and testing services backed by laboratory facilities in all major locations.

The quarry products available from our operations throughout Australia including rail ballast, aggregates, gravels, road pavement materials, and manufactured and natural sands.

Our Humes business is Australia’s longest serving precast concrete manufacturer and specialises in providing engineered precast and pre-stressed concrete.

For more information visit us at: www.holcim.com.au

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CIVMEC

Construction work at Elizabeth Quay

focus from O&G and mining to infrastructure and defence. The Perth waterfront used to be an under-utilized asset, but now WA’s capital city is finally making the most from it with the $2.6 billion Elizabeth Quay Project, which covers nearly ten hectares of prime riverfront land between Barrack and William streets in the heart of the city.

The project creates a magnificent precinct featuring a newly dug 2.7 hectare inlet surrounded by a split level promenade, shops, cafés, restaurants and other exciting entertainment venues. Civmec 62

May 2016

secured a major package of work on Elizabeth Quay in July 2014, laying down a marker that it had arrived in the infrastructure space.

“The job initially involved the supply of precast marine fascia panels, a very visible, architectural part of the development involving dramatic curved shapes around the whole perimeter. This led to the award of an iconic steel structure, the two architectural arches supporting a pedestrian bridge. Not many people could have delivered the level of quality they needed,” Tallon says.

AUSTRALIA

Perth Airport Project

Moving from the heart of Perth to the gateway of Perth Airport, Civmec has recently undertaken important parts of the road development around the airport.

It has also delivered significant fabrication work at the new Virgin Australia terminal, a world-class facility and the most significant project in Perth Airport’s current $1 billion redevelopment.

These high-profile jobs helped Civmec to secure another contract that will put it very much in the spotlight. In March 2015, Civmec was awarded the contract to deliver the steelwork that is part of the construction of the $1.1 billion Perth Stadium, due to open in 2018. The contract involves the fabrication, surface treatment and installation of over 4,500T of w w w. c i v m e c . c o m . a u

63

Perth Stadium Project team reviewing the project schedule

“WE CAN DO PRETTY MUCH ANYTHING THAT ANY CUSTOMER CAN THROW AT US, AND WE CAN DO IT VERY EFFICIENTLY AND VERY QUICKLY.” – Pat Tallon, CEO 64

May 2016

structural steelwork that makes up the stadium superstructure. In June 2015, Civmec was also awarded a further contract on the Perth Stadium to part supply and install precast elements including seating platforms and step units.

“The stadium contract is the latest in a series of projects where Civmec is taking a major role in the development of new infrastructure for Perth,” says Tallon.

AUSTRALIA

Civmec employees conducting quality checks in the Henderson workshop

SUPPORTING N AT I O N A L S E C U R I T Y All this demonstrates how successfully Pat Tallon and Jim Fitzgerald have led the company from a startup in 2009, through its listing on the Singapore Stock Exchange in 2012, to what is fast becoming a dominating position in the Australian civil contracting market. In a joint venture with Sedgman, Civmec secured its

first full EPCC (Engineering, Procurement, Construction and Commissioning) contract, on the expansion of BHP Billiton’s Jimblebar iron ore mine in the Pilbara. The $145 million contract involves the installation of a new primary crusher and additional conveying capacity which will employ approximately 270 personnel at its peak. “We secured this job on the back w w w. c i v m e c . c o m . a u

65

Steel Grating

Balltube Industrial Handrail

Civil Drainage

FRP Grating

NEW

Galintel® Steel Lintels

Galserv® Hot-dip Galvanising

NEPEAN Building & Infrastructure, a division of NEPEAN is the proud home of Australia’s leading brands Weldlok®, Galintel® & Galserv® servicing the Industrial, Civil, Mining, Building & Construction markets.

With two major manufacturing plants supported by two hot-dip galvanising facilities and a diversified range of products, NB&I is the most reliable and flexible metal products manufacturer in the industry.

of delivering to clients through the EPCM process,” he explains. “It puts us into a different space: under EPCM, the client hired an engineer to manage the project, then the engineer hired the contractors.

Under EPCC the client specifies what they wants and we come in, take over the design, liability and the risk and build the plant at a fixed, lump-sum price. It’s better for the client because it delivers cost savings by cutting out the engineer in the middle.”

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Mastermesh Perforated & Expanded Metal

FastClamp Modular Guardrail Fittings

Weldlok® www.weldlok.com.au Galintel® www.galintel.com.au Galserv® www.galserv.com.au

Civmec’s expansion across Australia, as well as its positioning on the SGX, will place it in good stead when it comes to its next planned strategic leap; expansion into the economies of Southeast Asia. Tallon does not propose to rush this move, however for the coming year, he plans to keep the focus firmly on the home market.

This is to take advantage of their recent acquisition of the country’s largest privately-owned engineering and shipbuilding company, Forgacs

AUSTRALIA

along with its purpose-built shipyard at Tomago on the Hunter River, just 160 kilometres to the north of Sydney. The 22.7-hectare site includes 535 metres of river frontage with two ship basins. It is hard to overstress the significance of this move, since it gives Civmec the capability to be involved in defence builds over the coming years.

The Australian government has just announced that it will spend $150 billion over the next decade to include a doubling of its submarine fleet to 24, three additional destroyers, nine new frigates and twelve offshore patrol boats. This acquisition, added to Civmec’s own excellent reputation for making durable structures for longterm subsea performance, gives Civmec the opportunity to become deeply involved in the government programmes including submarines.

A strong contender to design these vessels is Germany’s Thyssen Krupp, working with Siemens for their power plants. It has been suggested that Civmec would be favourite to build the pressure hulls.

“We wanted to get into fabrication

and precast on the east coast,” says Tallon. “There are so many opportunities for these activities particularly in NSW, so we are planning to create a facility that mirrors the Henderson site. It will be a major building block in our growth programme and will make up for the shortfall in mining and O&G contracts.”

Submarine hull section unveiled at Civmec Henderson

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C O M PA N Y N A M E

James Finbarr Fitzgerald

Patrick J

Executive Chairman

Chief Exec

DOING RIGHT

BY THE PEOPLE While diversification and geographical expansion when the time is right remain strategic goals, Tallon zealously guards his company’s founding principles, which put people first. One of his mantras is “hire for attitude, not skills,” a philosophy that plays well in Australia’s journey to a fairer 68

May 2016

society. If a potential employee shows commitment and positivity, any lack of skills can be rectified.

“We were all apprentices once,” says Tallon.

In April 2014, Civmec was accredited as a Registered Training Organisation (RTO). The training facility at Henderson, as well as managing apprenticeship and graduate programmes for

SECTOR

John Tallon

Kevin James Deery

cutive Officer

Chief Operating Officer

employees, offers free skills training to indigenous groups.

It’s not so much, Tallon says, that Civmec and all its Australian clients have a statutory requirement to employ indigenous personnel and subcontractors, as this is something the company tries to do as a matter of principle. It’s that a diverse and non-discriminatory workforce helps to advance the right development of

the society as a whole.

Last year the company got together with the David Liddiard Group (DLG) to create a joint venture subsidiary that will principally engage in securing and providing construction and engineering services with indigenous participation, for projects within the Australian defence sector.

Civmec DLG takes this w w w. c i v m e c . c o m . a u

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CIVMEC

View of the Yandi project where Civmec delivered site civil works, fabri and structural mechanical and piping installation ser

engagement one step further, says Tallon. “DLG was a company that wanted to develop its people. So we came together to combine our understanding and experience in both industry capability and indigenous participation to ensure that each project is able to demonstrate authentic engagement with local Indigenous communities.

We aim to upskill the local workforce, ensuring a sustainable 70

May 2016

economic benefit wherever we deliver projects.�

As Tallon points out, in the defence sector there’s really only one customer. Work must be able to meet very exacting standards in quality, execution and capacity but the government is more committed to indigenous sourcing, and the new entity will be well placed to win defence work.

As a further step towards positive

ication, modularisation rvices

AUSTRALIA

“WE GOT THE EPC BHP JIMBLEBAR CONTRACT ON THE BACK OF DELIVERING TO CLIENTS THROUGH EPCM. IT PUTS US INTO A DIFFERENT SPACE.” – Pat Tallon, CEO

The team at Nammuldi afterwthe w wsuccessful .civmec.com.au installation of the train loadout bin

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CIVMEC

Civmec made two donations to Dreamfit during FY2015 from savings attributed to the achievement of specific safety performance targets by our employees

community involvement, DLG contracts will incorporate long-term maintenance agreements so that the communities will benefit for many years post-execution. “We are focused as a company on doing the right thing socially,�

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he says. “We are very aware that many employees spend long periods away from their families in remote areas, so we try to involve families as much as we can. We send out progress reports and other materials to the families to keep

AUSTRALIA

Company Information INDUSTRY

Construction, Engineering and Modularisation HEADQUARTERS

Henderson, WA - Australia E S TA B L I S H E D

2009 EMPLOYESS

1500 approx REVENUE

$499 Million (SGD)

them updated and we’ll always help if someone needs to come home in an emergency.

Environmentally, we aim to use renewable energy sources wherever possible, utilise sustainable waste management and endeavor to leave a site in as good or an even better condition than we found it.” w w w. c i v m e c . c o m . a u

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SHINING LIKE GOLD AND SILV New ore discoveries, skills, and resources upgrades are key factors to Coeur Mining’s successful Latin America operations

Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: Alberto Reyes, Vice-president to Latin America for Coeur Mining

VER

COEUR MINING

C

oeur Mining is the largest silver producer based in the United States, as well as an important gold producer. It has two important operations in Latin America: Palmarejo in Mexico and San BartolomĂŠ in Bolivia. Operations in Mexico produce both gold and silver, while the San BartolomĂŠ mine only produces silver; the latter is located in Cerro Rico and considered one of the richest silver producers in the world, in operation since the 16th century.

Around four million oz are expected to be produced in Palmarejo by the end of 2016

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Coeur Mining’s operations in Latin America are lead by Alberto Reyes, a Canadian of Latin American descent and mining expert who has worked for different companies in operations around the world. Australia, South Africa, Ghana, Brazil and Southeast Asia are just some of the countries where Reyes has worked, increasing his knowledge within the trade and earning certifications. Reyes graduated from the Laurentian University in Ontario as a mining

Key People

Alberto Reyes Vice-president to Latin America for Coeur Mining Coeur Mining’s operations in Latin America are lead by Alberto Reyes, a Canadian of Latin American descent and mining expert who has worked for different companies in operations around the world. Australia, South Africa, Ghana, Brazil and Southeast Asia are just some of the countries where Reyes has worked, increasing his knowledge within the trade and earning certifications.

Reyes graduated from the Laurentian University in Ontario (Canada) as a mining engineer, where he also obtained the Hard Rock Underground Common Core certificate.

He has worked for Newcrest Mining (obtaining his Lean Six Sigma certification during this tenure), GoldFields LTD, Luna Gold and other companies. He obtained his Chartered Professional engineer certificate as firstclass mine manager at the Australian Institute of Mining and Metallurgy.

w w w . c o e u r. c o m

COEUR MINING

Coeur Mining’s investments for each operation include -in addition to moving and installing equipment- important training for its workers

engineer, where he also obtained the Hard Rock Underground Common Core certificate. He has worked for Newcrest Mining (obtaining his Lean Six Sigma certification during this tenure), GoldFields LTD, Luna Gold and other companies.

He obtained his Chartered Professional engineer certificate as first-class mine manager at the Australian Institute of Mining and Metallurgy. His current role is Coeur Mining’s vice president for Latin America operations.

“The university was able to sponsor me, so I could get the ‘Common Core’ from the beginning, which is required in Ontario to work

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Palmarejo mine in Chihuahua, in northern Mexico, open pit and underground operations producing gold and silver

in underground operations. It was important to obtain this certification, since it provided me of the basics and highest standards in mine safety,� said Reyes.

Palmarejo: above original expectations The Palmarejo mine is located in the State of Chihuahua in northern Mexico. Coeur Mining began work in this mine around 2009, both for open pit and underground mining operations.

Later explorations found deposits near Independencia and Guadalupe; the first one became a viable project after an acquisition from Paramount Mining in April 2015. These newfound

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COEUR MINING

“We have been succe

leadership culture wi – Alberto Reyes, Vice-president to Latin America for Coeur Mining

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L AT I N A M E R I C A

essful in deploying a

ithin our operations�

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COEUR MINING deposits add high grade value and reserves to Palmarejo operation.

The “Ambassadors” program detects workers with leadership skills, providing them special

Infrastructure for the Guadalupe underground mine was deployed and set up to ramp up operations, achieving commercial production in record time. These operations have proved themselves to have great potential to offer high grade material, especially in comparison with previous open pit efforts.

and extensive training

One of the challenges brought by this discovery was to achieve full production. In addition, the staff that had previously worked in open pits had to adapt their skills to underground operations with different equipment and machinery.

“The staff completed the transition, and this production success is a result of the transition itself,” said Reyes.

The transition towards underground operations was gradual but safe. Today, workers process between 2,500 and 3,000 tonnes per day, with the aim of increasing to 4,000 or 4,500 tonnes per day. The current reserves come in at 9.1 million tonnes, generating 44.9 million ounces of silver and 690,000 ounces of gold.

San Bartolomé: millennial legacy in Bolivia Coeur Mining began operations in 82

May 2016

L AT I N A M E R I C A

San Bartolomé in 2008; it has a stable production, having produced up to 7.5 million ounces in a year, setting yearly average production at 6 million ounces. The mills in San Bartolomé receive around 2.3 million tonnes, and once filtered, process about 1.6 tonnes. This mine’s production cycle is estimated to end between 2019 and 2020.”

Currently, Cerro Rico has an 8.2 million tonnes reserve to be processed, which equals about four years of production.

“This doesn’t mean that we are not looking for other areas to work at, but our new challenge is how to increase our reserves,” said the executive.

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COEUR MINING

Coeur Mining prefers local hires for their Latin American operations

Adaptability within the market’s fluctuations One of the most important achievements for Coeur Mining has been its adaptability during the recent downturn in the stock market. This environment enabled cost revisions, successfully modifying the operations with no need of extreme measures such as large layoffs.

“Everyone has learned how to work in a more efficient and safe way. This has not only been transmitted within the operation, but throughout communities around us,” said Reyes.

L AT I N A M E R I C A

Technology Due to its surface, operations at San Bartolomé do not require a full array of high-tech machinery to extract minerals; still, the processing area is 80 to 90 percent automated. This innovative system has detectors for moisture, metal concentration, cyanide and pH levels, and is also enabled to monitor energy consumption. This data tracks any trends that indicate any adjustments and other measures that need to be taken.

For exploration tasks, technology contributes to be the most efficient processes of underground exploration, using laser beams, temperature sensors, and gas meters to send data to the surface.

Suppliers Coeur Mining’s key suppliers include vendors of replacement parts, lubricants and fuel, elements that guarantee a proper use of equipment. Other key supplies include explosives for detonations, and catering services.

The company’s vendors have been supportive during the decline in metals prices, open to renegotiate and cooperate with Couer Mining to, examine areas where savings would not impede in obtaining the same results.

“We work with suppliers able to share our same values, and they must adhere to the responsibilities of our company,” said Reyes. w w w . c o e u r. c o m

Key People

Tony C. Astorga Director of Supply Chain Management at Coeur Mining Tony C. Astorga joined Coeur in June 2012 and now serves as the Director – Supply Chain. Before joining Coeur, he served as the Contracts Manager for Barrick Gold of North America, Inc. working with various teams to standardize processes, improve contractor safety, and support CAPEX and OPEX projects throughout the region. Having originally working in various operational and maintenance support roles, Tony’s supply chain career has allowed him to serve various managerial roles (in Materials, Purchasing, Commodities, Service, Contracts and Supply Chain) working for companies such as ASARCO, Phelps Dodge (now Freeport-McMoran), Rio Tinto, Hecla, Barrick and now Coeur Mining Inc. Tony is a member of the Institute of Supply Chain (ISM) and holds a Bachelor’s and a Master’s degree in Business Administration.

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Organizational culture Coeur Mining invests in resources that help create the best possible employees with essential skills.

A version of the BENG Common Core is currently taught to underground workers at Palmarejo, a significant investment resulting in a four-week intensive training course.

Other incentives include scholarships for the company’s workers and their children.

Ambassadors: the leadership program Coeur Mining’s Ambassadors program detects workers with leadership traits. Once identified, these leaders join the Ambassadors program and undergo training in Chicago, where they are taught an overview of the company’s financial aspects, mining and engineering operations, and other skills by hired specialists. These ambassadors are then in charge of dispersing this message to the operations personnel, both verbally and by example in their work.

“We find those individuals with leadership traits, able to communicate their ideas, who can impact positively the rest of the workforce. These professionals display their passion while carrying out their regular duties, this is the reason why everyone else follows them. They are the current leaders at Coeur,” said Reyes, who participates in this program as an instructor.

Coeur Mining’s staff has completed excellent transitions from open pit mining to underground operations

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L AT I N A M E R I C A

RSC: supporting the immediate environment The communities surrounding Coeur Mining’s operations not only benefit from the company’s service requirements, but also from the sustainable development programs carried out by the company.

Coeur Manquiri, the operation in San Bartolomé, has developed different programs along with the neighboring community, such as a trout farm, which has already benefitted members of the community. Additionally, the company has built and supports schools in the area, and has also helped locals in building greenhouses and helping into the creation of different means to achieve sustainability within the community not just during the mine’s productive cycle but also in the future.

Forecasts Coeur Mining’s current operations in Latin America look promising. Between 3.8 and 4.3 million ounces are expected to be obtained from the Palmarejo mines by the end of this year. These numbers are based on findings at Guadalupe and Independencia, taking into consideration previous production and planned machinery deployment expected to produce by late 2016. The goal for the mid-term is finding a third source at this site and getting it into production before 2020.

Coeur Mining’s operations in Latin American are set in Palmarejo (Mexico) and San Bartolomé (Bolivia)

Exploration activities in Palmarejo led to ore findings in Guadalupe and Independencia

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REFINING THE FUTURE www.elemetal.com/refining

Inquiries:

Conor Dullaghan, President cdullaghan@elemetal.com + 1 - 740 - 286 - 6457 x713

L AT I N A M E R I C A

Company Information NAME

Coeur Mining INDUSTRY

Latin America HEADQUARTERS

Chicago, Illinois, EE.UU. FOUNDED

1928 EMPLOYEES

Coeur reports several areas near Guadalupe with new deposits, known as Los Bancos, La Nación, La Bavisa and Las Ánimas, which promise to become productive.

“All these places are exploration targets that have provided promising preliminary data. We want to keep expanding them, so that they become important resources and reserves,” the executive said.

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1,200 (LATAM only) REVENUE

US $280 million (LATAM only) WEBSITE

www.coeur.com

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SUCCES

works from un

A long history of innovation and contribution to large projects in t country comes to fruition for Soletanche Bachy Chile

Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interveiwee: Ing. Arnaud Chapuis, Gerente General en Soletanche Bachy Chile

SSFUL

nderground

the Andean

S O L E TA N C H E B A C H Y C H I L E

S

oletanche Bachy is the result of a merger that took place in 1997 between two French companies: Soletanche, founded in 1931, and Bachy, created in 1926. 2016 marked 50 years that the company —which focuses on mining and construction— has been present in Chile. In 2007, Soletanche Bachy became part of the Vinci SA group of companies, whose business units are also engaged in various specialties in the fields of construction, mining, infrastructure, tunnels, geotechnics, as well as products and related activities.

Soletanche Bachy is not the only company from the Vinci group that has established itself in Chile. Due to its 50-year presence in the country, Soletanche Bachy provides an important support for other group companies, such as Bessac, Freyssinet, Vinci Airport and Vinci Construction Grand Projets, among others, in its territory.

Soletanche Bachy Chile has been a pioneer in introducing to the country most of the technology related to soil and geotechnical engineering in general. Applied knowledge, as well as the machinery and equipment at the disposal of Soletanche Bachy, are for more than just building foundations; they are also used by other sectors, such as construction and energy. For example, the mining industry relies heavily on the company for the development of tunnels and other underground infrastructure.

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Key People

Some notable projects that the company has recently participated in include: •

Angostura Hydroelectric in 2012: Chile’s largest and deepest diaphragm wall, with a surface of 54,000 m2 (33.55 miles2) and a depth of 70 m (230 feet).

•

Pascua Lama Chile-Argentina mining project developed by Barrick Gold, currently detained: this site boasts the world’s tallest stem wall with a height of over 4,000m

(2.5 miles).

• ALMA Observatory in San Pedro de Atacama: building the foundations of the observatory’s antennas, at an altitude of 5,000 m (over 3 miles).

•

El Teniente Mine, managed by CODELCO and awarded in conjunction with the Vinci Construction of Major Projects division: construction of access tunnels began in 2011 with an investment of US $400 million.

“Vinci is one of the leading construction and concession groups worldwide and has several subsidiaries in the country. We are its oldest subsidiary in Chile, and we support other Vinci subsidiaries in the country,” said Arnaud Chapuis, General Manager of Soletanche Bachy Chile.

w w w . s o l e t a n c h e b a c h y. c l

Arnaud Chapuis CEO for Soletanche Bachy Chile Chapuis studied civil engineering at the Ecole Centrale de Paris and Polytechnic University of Madrid. He has been at Bachy Soletanche since 1996 and first worked in Chile from 1997 to 2000. From 2000 to 2011, Chapuis worked at BESSAC, another Soletanche Bachy subsidiary group. Throughout his career, he is noted for handling all the special technology that Soletanche Bachy disposes of, as well as TBMs (tunnel boring machines or “moles”) and micro-TBMs used

by BESSAC. He has been General Manager of Soletanche Bachy Chile since 2011.

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Ralco Hydroelectric Plant, curtain wall injections... successfully

Chapuis studied civil engineering at the Ecole Centrale de Paris and Polytechnic University of Madrid. He has been at Bachy Soletanche since 1996 and first worked in Chile from 1997 to 2000. From 2000 to 2011, Chapuis worked at BESSAC, another Soletanche Bachy subsidiary group. Throughout his career, he has been noted for handling all the special technology that Soletanche Bachy uses, including tunnel boring machines. He has been General Manager of Soletanche Bachy Chile since 2011.

creating harmony between concrete

The foundation of great works

and nature

Soletanche Bachy’s broad portfolio of services fall into five major categories:

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· Special foundations and geotechnical work · Soil improvement · Drilling and exploration drilling · Tunnels and underground works · Consulting and geotechnical engineering

Soletanche Bachy Chile is known for its geotechnical activities such as the construction of diaphragm walls, ground anchors, rock injection systems, construction of deep foundation building systems and tunnel construction using the pipe jacking method.

El Teniente Mine, managed by CODELCO ...

Soletanche Bachy has the technology and equipment

Advantages from technology

needed to overcome such challenging soil

One factor distinguishing Soletanche Bachy from the competition is the technology to which w w w . s o l e t a n c h e b a c h y. c l

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“Our business does not only fulfills our inves

true success comes from sh

– Arnaud Chapuis, CEO fo

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become successful if it stors’ expectations:

haring beyond the company�

or Soletanche Bachy Chile

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S O L E TA N C H E B A C H Y C H I L E

TBMs and micro-TBMs as well as exclusively used proprietary technology ... These are some of the advantages of Soletanche Bachy and its subsidiaries

Chile-Argentina Pasca Lama mining project

the company has access. Its cutting-edge technology stems from its parent company and its French subsidiary dedicated to the manufacture of specialized geotechnical equipment.

Through its sister company, Bessac, proprietary technology and know-how is provided in systems of mechanized excavation, pipe jacking and tunnel boring machines (TBMs) and micro-TBMs. They have developed machinery and systems such as the PlintoDrill, used for dam foundations, and hydrofracturing systems in Chile. The parent company has also developed innovative equipment such as the Baya, a hydraulic power shovel used for constructing diaphragm walls for deep excavation in difficult soil conditions.

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L AT I N A M E R I C A

Geotechnical works, tunneling, drilling and exploration, consulting and engineering ...

Soletanche Bachy lays the groundwork for well-done projects

The company has automated monitoring and control of injection equipment, highlighting the advantages offered by its Spice system. “Historically speaking, we have been pioneers in the development and introduction of geotechnical technology in Chile,� explained Chapuis.

Global support and excellent regional coordination Bachy Soletanche is divided into seven regional offices positioned worldwide. This setup allows for efficient coordination in terms of staffing, availability of machinery, knowledge, and w w w . s o l e t a n c h e b a c h y. c l

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Marina Arauco Mall in Viña del Mar, a successful turnkey excavation project

techniques. Subsidiaries in each specific area share their resources and knowledge. Moreover, the French parent company provides financial and technological support.

This parent company houses a committee of experts that provides technical advice as well as a laboratory that helps local subsidiaries determine the materials needed for each project.

Casa Costanera shopping mall in Vitacura... A building’s lasting safety begins with well-laid foundations

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“We have close coordination in terms of personnel, equipment, and level of engineering between the various Latin American subsidiaries,” said the executive.

L AT I N A M E R I C A

Meeting global supplier standards Soletanche Bachy specializes in providing geotechnical engineering services worldwide.

They focus on building materials, specifically on the different concretes needed for any type of soil and project.

The company has worked diligently to acquire these suppliers. While Chile barely develops standards or norms regarding material grades for certain projects, Soletanche Bachy ensures that their suppliers meet the global standards also met by the company itself.

Soletanche Bachy is active in the mining industry and works with Chilean suppliers of mining drilling equipment that can achieve depths of up to 1,500 m (one mile).

“We develop high efficiency products in-house, and we analyze specifications and work closely with Chilean concrete producers to meet these specifications,” said Chapuis.

Versatility and safety in the workforce The current development of Chile’s mining and construction activities requires Soletanche Bachy to have partners that are able to work in various fields, able to specialize in operating

“We strive to maintain a

sustainable

business,

on top of our work’s

quality and safety conditions” – Arnaud Chapuis, CEO for Soletanche Bachy Chile

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“We give priority to people who share the company’s safety and quality standards, and transparency and teamwork ethic”

L AT I N A M E R I C A

the company’s exclusive machinery and have the flexibility to transition between mining, construction and soil remediation.

Beyond the company’s ability to easily provide their staff with technical training, recruiting individuals who are able to share in the company’s commitment to safety policies, high quality standards, transparency and teamwork is prioritized.

Soletanche Bachy regards safety training as the most important requirement, since it is what distinguishes the Vinci group from the rest.

The same safety standards are shared by the mining clients whom the company usually works with: BHP Billiton, Barrick Gold, state-owned CODELCO and Anglo American, among others.

Other training programs are developed in conjunction with Vinci’s parent company in Paris, in addition to occasional exchanges of business professionals between this office and other regional and global subsidiaries.

Soletanche Bachy and the Vinci group’s overall global support involves technology and strategic knowledge

“Nos diferenciamos por ser una empresa de vanguardia con ventaja tecnológica que ofrece proyectos integrales a nuestros clientes” – Arnaud Chapuis, Gerente General de Soletanche Bachy Chile w w w . s o l e t a n c h e b a c h y. c l

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S O L E TA N C H E B A C H Y C H I L E Environment and CSR, beginning in-house

Soletanche Bachy’s,

Soletanche Bachy employees can benefit from purchasing Vinci company shares at an employee rate. The company also provides funding to some for ongoing studies and educational pursuits.

as well as the mining companies with which it works with, utmost priority is worker safety training

In respect to the environment, the company looks to use increasingly energy efficient equipment to ensure that fuel is not wasted. Many of its regular operations for the mining sector involve environmental mitigation work such as leakage prevention.

MAYOR SEGURIDAD EN PERFORACIÓN DE SONDAJES Los nuevos equipos SMART DIAMEC equipados con manipulador de barras automático, establecen un nuevo estándar en la perforación de sondajes diamantinos.

L AT I N A M E R I C A

Soletanche Bachy has established relationships with communities who work locally as well as remotely (for operations performed in northern Chile). For example, the warehouse and workshop in Santiago, the capital, are located near communities and schools. As such, cultural workshops are created and local festivities are celebrated together.

Maintaining leadership Bachy Soletanche adapts its efforts according to the current Chilean market. Successful operations in 2016 solidify the status the company has earned in the country. The work quality it has always been known for as well as prompt delivery that complies with worker and customer safety regulations is continually ensured.

Company Information NAME

Soletanche Bachy Chile INDUSTRY

Mining, construction, engineering, geotechnics, foundations, digging, tunnels HEADQUARTERS

Santiago, Capital, Chile FOUNDED

1966 in Chile EMPLOYEES

450 in Chile WEBSITE

www.soletanchebachy.cl

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