Mining Global Magazine - December 2014 by Mining Global

December 2014 • www.miningglobal.com

Battery Powered Technology of the Future General Electric’s initiative towards battery-powered mining equipment

TOP 10 The Worlds Largest Production Mines Draglines 101: How They Do It SPECIAL REPORT

Blue sky thinking goes above & beyond for black Empowerment in South Africa

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in this issue

editor’s comment

“Innovation distinguishes between a leader and a follower.” – Steve Jobs T h e m i n i n g i n d u s t r y i s rapidly

progressing into the 21 century. Companies like General Electric are revolutionizing mining equipment to build a safer, cleaner and quieter future. We caught up with the innovators over at GE to see how the company is enhancing the mining sector through battery-powered technology. Also this month: we go inside the workings of some of the largest draglines the industry has ever seen and discuss how these gargantuan pieces of equipment operate and what the future holds for them. Lastly, we take a look at the largest mines around the world and break down the top 10 global mines based on production. You won’t believe who came in at number one.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

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TOP 10

CONTENTS

Features

Global Mines: Discover the worldâ&#x20AC;&#x2122;s largest mine by production

MACHINERY Draglines 101: how they do it

TECHNOLOGY Battery-Powered Technology of the Future

CONTENTS

Company Profiles Lundin Mining

True North Gems

EUROPE 32 Assoc.: Euromines 42 Lundin Mining

CANADA 68 True North Gems 76 Cementation 84 ArcelorMittal Canada

152

114 ArcelorMittal Canada (French version)

ArcelorMittal Canada

USA 144 Gothic Landscape

Apex Logistics

152 Apex Logistics 158 DRA Taggart

AUSTRALIA 170 Liebherr Australia

DRA Taggart

182

158

NSW Minerals Council Association

188

182 Assoc.: NSW Minerals Council Association

IPC Coal

188 Citic Heavy Industries

198

Citic Heavy Industries

AFRICA 198 IPC Coal 208 Grande C么te Operations 236 Khoemacau Copper Mining Pty Ltd

M a c h i n e ry

Draglines 101:

how they do it

Go inside the workings of some of the largest draglines the mining industry has to offer Writ ten by: Robert Spence 8 December 2014

In the world of mining draglines, not all are created equal. The heavy-duty machinery is used as a primary excavating tool in many surface mining operations worldwide. These highly productive and massive pieces of equipment offer the lowest material cost per ton and have an operating life span of 40 years. Pound for pound, draglines

are the most productive and versatile machines in the mining industry. How they work Utilized in a similar fashion as cranes, draglines are used primarily for open-pit operations to dismantle and transport materials. In strip mining operations, draglines are used to remove overburden from mines. 9

M a c h i n e ry Unlike most mining equipment, the bulk of draglines are not dieselpowered. Their power consumption relies on a direct connection to the high-voltage grid at voltages of between 6.6 and 22kV. A typical dragline can use up to six megawatts during normal digging operations. The biggest and baddest draglines ever built The mining sector has seen its fair share of extravagant dragline machinery. The industry, which boasts some of the biggest and baddest equipment the world has ever seen, has encountered some massive draglines. Manufactured in the United States, the Bucyrus Erie 2570-W dragline

Big Muskie Photo copyright: Eric Gunderson

10 December 2014

is currently the world’s largest operational dragline. Nicknamed Old Glory, the dragline is owned and operated by Peabody Energy and currently utilized at the company’s Bear Run mine in Indiana. The dragline is equipped with an impressive scooping depth of over 215 feet with a bucket capacity of 115 cubic yards. Weighing in at over 6,000 tons, the Bucyrus Erie 2570-W is over 200 feet tall with an operating radius of 300 feet. Another Bucyrus dragline to make our list, the 8200 Walking Dragline is one of the world’s largest draglines currently in operations. Nicknamed Liberty, the massive dragline weighs over nine million pounds and operates with a 160-yard bucket. This behemoth is close to seven stories high and can move roughly 250,000 pound of earth across 200 yards in less than 60 second. The “Big Muskie” was once the world’s largest earth moving machine. Built in 1969 and dismantled in 1991, the Big Muskie could move 39 million pounds of earth and rock every hour, reaching coal seams 100-150 feet down. Weighing nearly 12,000 tons, this dragline was 22 stories tall with a

D R A G L I N E S 1 0 1 : H ow T he y D o I t

â&#x20AC;&#x2DC;Pound for pound, draglines are the most productive and versatile machines in the mining industryâ&#x20AC;&#x2122;

Bucyrus Erie 2570-W Peabody boom length of 310 feet. In May 1999, the Big Muskie was destroyed with the remainder of the dragline being used as a centerpiece to memorialize the men and women who mined in Ohio. The future of Draglines E rother i c G umining n d ers on Like equipment, the future of draglines is automation. Despite the move towards

automation, draglines have remained relatively unchanged in design and control systems. Thatâ&#x20AC;&#x2122;s all about to change in the next few years. Companies like CSIRO in Australia, MineWare and CRCMining are working with the University of Queensland in Australia to advance dragline operations to automation. The companies are focusing on 11

M a c h i n e ry

“Consistency is very important, that range of variability between operators can be anywhere up to 10 or 15 percent and in dollar terms that’s very significant” –

MineWare CEO and project co-leader, Andrew Jessett.

D R A G L I N E S 1 0 1 : H ow T he y D o I t

MineWare’s features on their Pegasys software developing and implementing a new dig sequencing technology that aims to identify the best sequence of operations and movements for a dragline to excavate in the most efficient and productive way. The technology is expected to give operators instantaneous position, digging and dumping guidance, supporting them to make critical decisions around the sequencing of excavation. According to MineWare CEO and project co-leader Andrew Jessett, dragline operations will benefit from a significant improvement in productivity. “On draglines around the world, we continue to see inconsistencies in

operator sequences and techniques, which can result in variations in productivity rates in excess of 10 percent. By giving dragline operators accurate, instant guidance, we want to close the gap on these variations and improve productivity as a direct result.” He adds, “Consistency is very important, that range of variability between operators can be anywhere up to 10 or 15 percent and in dollar terms that’s very significant.” Although improving productivity and saving time and money isn’t a new direction for the mining industry, the new technology will help speed up the automation process for mining equipment. 13

TE C HN O L O GY

Battery powered LHD Hi-Cap XL vehicle

Battery-Powere Technology of th

We get to the bottom of how General Elec the mining industry through battery-pow

ed he Future

ctric is enhancing wered technology

Writ ten by: R o b er t S p e n c e

TE C HN O L O GY Since 1889, General Electric (GE) has provided millions of homes, offices, factories and retail facilities with electricity. But the company is much more than just an electric company. GE, which operates through a variety of segments such as Energy, Technology Infrastructure, and Capital Finance, has been leading the mining industry into a safer, cleaner and quieter future. Through the company’s Transportation division, GE Mining is working to maximize resources and drive efficiencies through cutting-edge technology to make mining work better.

“We’re getting rid of the diesel emissions, we’re getting rid of the noise, the heat, and the battery changing is really quick” - GE Mining Engineer Remi Desrosiers

16 December 2014

How they do it For more than a half a century, General Electric has been working to solve the world’s toughest mining challenges. Since its inception, GE Mining has been dedicated to transforming the archaic mining industry by developing newer and improved technologies. In 2012, the company acquired Fairchild International, a leading manufacturer of underground mining vehicles in Virginia. The acquisition was part of a development programs to expand GE Mining’s product offering to address roughly 35 percent of the underground mining value chain. “We highly value the industry knowledge and expertise in designing, building and servicing underground mining equipment that Fairchild brings to GE Mining,” said Lorenzo Simonelli, President and CEO of GE Transportation. “With GE’s global reach, technology leadership in clean propulsion and energy storage systems, and world-class system integration capabilities, we will bring the next generation of top performing underground mining equipment to customers worldwide.” Since the acquisition, GE’s

General Electric Fairchild Mining underground Fairchild Mining Equipment division has developed and begun offering complete lines of batterypowered scoops, diesel-powered scoops and tractors, multipurpose vehicles, longwall shield haulers, maintenance vehicles and continuous miners and haulage systems. Rise of new mining innovations General Electric’s Mining segment is working to create a safer mining future. GE’s mining division specializes in three segments of the mining

industry: propulsion systems, mining equipment and mining solutions. The company has recently begun testing its new battery-powered mining equipment, including its newly designed Load Dump (LHD) at mining company IAMGOLD’s Westwood underground mine in Canada. The new Load Dump vehicle has the potential to not only operate entirely on battery and propulsion technology, but doing so while emitting 100 percent zero emissions. “We’re getting rid of the diesel 17

TE C HN O L O GY

Top: Fairchild 35C-LS-DC Low Vein scoop. Bottom: Fairchild battery powered LHD.

emissions, we’re getting rid of the noise, the heat, and the battery changing is really quick,” says GE Mining Engineer Remi Desrosiers. Engineered to deliver superior performance in the most challenging hard-and soft-rock environments, the LHD vehicle provides lower cost of ownership including maintenance and fuel consumption while minimizing its carbon footprint. 18 December 2014

Specifications: • Total Length: 339.2 in. • Maximum Width: 99.4 in. • Height w/ Canopy: 72.0 in. • Frame Height: 51.0 in. • Minimum Ground Clearance: 11.3 in GE’s Fairchild Mining Equipment is offering the latest in battery-powered machinery including scoops, loaders, and more. The company’s line of innovative mining equipment includes:

B a t t e r y - P o we r e d Te c h n o l o gy o f t he F u t u r e

• 35C-WH-AC Battery-Powered Scoop with Variable Frequency Drive • 35C-LV-AC Battery-Powered Low Vein Scoop with Variable Frequency Drive • 35C-WHPDT Diesel Multipurpose Vehicle with Fifth Wheel Attachment • 35C-WHPD Permissible Diesel-Powered Scoop • 36S-AC Battery-Powered Shield Hauler with Variable Frequency Drive • Slide-In Permissible Maintenance Center • 35C-WHL-MV Permissible Maintenance Vehicle Looking ahead to the future The future of mining doesn’t stop with just innovative equipment. According to the company’s website, GE’s Mining division is also working with customers to provide tailored solutions that help reduce costs and enhance operational efficiencies. These include: • Remote Distributed Power: Shifting to LNG to reduce operational expenditures. • Electrolyte Cogeneration: Working to provide more energy efficiency by using heat to reduce energy intensity in heating electrolytes. • Capital Expenditure to Operational

Expenditure: Assisting companies in paying leases and provide cost-savings through energy efficient equipment, providing safer, faster revenue generation. • Potash Mining: Utilizing water reverse osmosis to increase energy efficiency. • Concentrate Drying: Replacing inefficient fossil fuels systems by using gas turbines to dry copper. • Mine Electrification: Using RailConnect 360 as a single point of contact, this will allow for more energy efficient equipment as well as increased cost and time savings. • Tailings to Energy: Producing energy through tailings waste. General Electric is also working on two new additions to its equipment

Fairchild 35C-WH

TE C HN O L O GY line. The company has developed the F330 Continuous Miner for coal mining. The Continuous Miner, which can be customized for manual or remote control operations, will allow mine operators worldwide the ability to mine a cleaner product and increase their recoverable reserves dramatically. In addition, GE is working to develop an improved high capacity hauglage system. Through extensive research and engineering, the company has developed the HI-CAP XL Continuous Haulage system, which boasts impressive features such as dual 180 degree articulating crawlers, 90 degree cross-cut capabilities, increased visibility, safety and operator comfort, and remote control capabilities. But GE isn’t done just yet. The company is also competing with

‘The battery powered scoop further underscores GE Mining’s progress towards bringing the next generation of superior underground mining equipment to the industry” - Geoff Knox, CEO of GE Mining

Fairchild “Hi-Cap XL” haulage system

20 December 2014

B a t t e r y - P o we r e d Te c h n o l o gy o f t he F u t u r e

Fairchild F330 Continuous Miner

equipment manufacturer Caterpillar to provide the mining industry with sustainable railroad locomotives. GE is currently testing freight trains which adhere to new diesel-engine exhaust regulations which will go into effect January 1 2015. The company’s early development of sustainable locomotives will give it a major edge against chief rival Caterpillar, whose efforts in the area have been subpar.

As the future of mining goes, General Electric is taking the bull by the horns and integrating new innovations to help mining companies in the most productive, most efficient, and safest way possible. Battery-powered equipment could be just what the doctor ordered. “The battery powered scoop further underscores GE Mining’s progress towards bringing the next generation of superior underground mining equipment to the industry,” said Geoff Knox, CEO of GE Mining. “We are encouraged by this rigorous testing and look forward to the future benefits this technology will bring to our customers.” 21

TOP 10

TOP 10 Glo Discover the worldâ&#x20AC;&#x2122;s lar

obal Mines rgest mine by production

Writ ten by: Robert Spence

The Cerrej贸n mine 23

top 10 Image courtesy of Peabody Energy.

Coballo Mine Coal: 16.9 million tons

Owned and operated by Peabody Energy, the Coballo Mine is one of the largest mines in the world based on production. The mine, which operates on a seven-dayper-week schedule, produced 16.9 million tons of coal in 2012. Located in Gillete, Wyoming, the coal mine began production in 1978 utilizing surfacing mining methods. The mine utilizes a cast blast, dozer-push, and truck and shovel operation with three inbound and two outbound trains for shipping. 24 December 2014

Haerwusu Mine Coal: 20 million tons

The Haerwusu Coal Mine is situated in the Inner Mongolia Autonomous Region of China. As the second biggest coal mine in the world by reserve, the Haerwusu Mine produced 20 million tons of coal in 2012. The mine, which is owned and operated by Chinaâ&#x20AC;&#x2122;s state-run Shenhua Group, is the largest open-cast coal mine in China.

G l o bal M i n es

Alegria Mine Iron ore: 21.8 million tons

Making our list at number eight is the Samarco Alegria iron ore mine. Located in the state of Minas Gerais in south-east Brazil, the mine is one of the largest iron ore mines in the world based on proven and probable reserves. The mine, which is a 50-50 joint venture with BHP Billiton and Vale, produced roughly 22 million tons of iron ore in 2012. The mine is estimated to contain 1.89 billion tons of iron ore.

Vargem Grande Mine Iron ore: 22.6 million tons

Another iron ore mine based in Brazil, the Vargem Grande Mine produced 22.6 million tons of iron ore in 2012. Owned and operated by mining conglomerate Vale, the mine is estimated to contain roughly 2.53 billion tons of proven and probable iron ore reserves. The Vargem Grande Mine is broken up into three open-pit mines: Tamandua, C apitao do Mato and Aboboras. Production at the mining complex is expected to last until 2058.

top 10

Minas Itabiritos Mine Iron ore: 31.8 million tons

Back on global production, the Minas Itabiritos Mine in Brazil makes our list at number five. The mine, which is the worldâ&#x20AC;&#x2122;s third largest iron ore mining operation, is estimated to contain roughly 2.78 billion tons of iron ore. The site is comprised of four mining deposits: Segredo, Joao Pereira, Sapecado and Galinheiro.

Sishen Mine Iron ore: 30.9 million tons

The Sishen iron ore mine produced 30.9 million tons of iron ore in 2013. The mine, which is the first (and only) mine located in South Africa on our list, is owned and operated by Kumba Iron Ore Limited. Operational since 1947, the mine is one of the biggest open-pit mining operations in the world.

26 December 2014

G l o bal M i n es

Cerrejon Coal: 32 million tons

Black Thunder Mine Coal: 92.9 million tons

Number three on our list of the most productive mines in the world is the Black Thunder Coal Mine. Located in the Powder River Basin in Wyoming, US, the surface mining complex first opened its doors in 1977 by ARCO Coal, later being acquired by Arch Coal in 1998. The mine site utilizes seven active mining deposits and utilizes the Burlington Northern-Santa Fe and Union Pacific railroads for coal shipping.

Since commencing production in 1985, the Cerrejon open-pit coal mine has produced 32 million tons annually. Located in the Guajira Peninsula of Colombia, the mine is divided into three primary deposits: Cerrejon North Zone, Cerrejon Central Zone and Cerrejon South Zone. The mine, which is owned by a joint venture partnership with Anglo American, BHP Billiton and Glencore, is estimated to contain roughly 754 million tons

Credit: T photography

G l o bal M i n es

Carajas Mine Iron ore: 104.88 million tons

Owned and operated by Vale, the Carajas iron ore mine in Brazil is the worldâ&#x20AC;&#x2122;s largest iron ore mine. In 2012, the mine produced 104.88 million tons of iron ore and is estimated to contain 7.27 billion tons of proven and probable reserves. Vale is currently implementing a $19.6 billion expansion to the mine which will include a new mine along with a complete truckless transport system and other automation systems in order to reduce emissions and fuel costs.

top 10

North Antelope Rochelle Mine Coal: 107.7 million tons

The North Antelope Rochelle Mine is the largest and most productive coal mine in the world. Owned and operated by Peabody Energy, the mine has produced more than 1.8 billion tons of coal since commencing 30 December 2014

production in 1983. The mine is estimated to contain nearly 2.4 billion tons of recoverable coal. Located in the U.S. state of Wyoming, the North Antelope Rochelle Coal Mine incorporates approximately 1,300 people and annually injects roughly $128 million into the regional economy. Over 40 percent of the United Stateâ&#x20AC;&#x2122;s coal comes from this mine.

n a m e o f t o p 1 0 a r t i c le

Credit: George Frey 31

European Association of Metal Ores & Industrial M

Self-promotion helps Euromi capitalise on continental prom Written by: Matthew Staff Produced by: James Pepper

f Mining Industries, Minerals

ines mise

E u r omi n e s

Conference field trip, Aitik mine, Sweden

â&#x20AC;&#x153;We should be doing exploration and mining and processing and supplying to the people that need those raw materialsâ&#x20AC;? â&#x20AC;&#x201C; Mark Rachovides, President

December 2014

nder the Presidency of Mark Rachovides, The European Association of Mining Industries, Metal Ores & Industrial Minerals (Euromines) is striving to lay to bed assertions of the past to encourage its members about the potential of the future. Mining in Europe, and indeed across the world, has often come in for criticism but through a strong focus on external industry collaboration and internal optimism, the association is well on its way to changing industry standards and consequently, public perceptions. Existing as a not-for-profit organisation in its current form since 1996, Euromines represents more than 40 different metals and minerals, more than 100 companies and about 350,000 jobs across its member states, and

E U RO P E

Key Personnel

Mark Rachovides President

Rachovides is positive that Europe can become a partner of choice within the mining industry. “The important thing through what we do is to point out where mining fits in the value chain and to get away from those old stereotypes,” he said. “We need a balanced, responsible approach to keep the value chains in the EU because it won’t contribute to our renaissance or our future if part of the value chain is being sourced outside when we have the ability to do it here. “We should be doing exploration and mining and processing and supplying to the people that need those raw materials. We can do the whole thing and that should make us the partner of choice because we should be showing ourselves as the leaders in terms of sustainable use of our resources.

Mark Rachovides is a consultant to Eldorado Gold Corporation and until recently was Chairman of Deva Gold, Eldorado’s subsidiary in Romania. He was formerly an Executive Director of European Goldfields which was acquired by Eldorado in early 2012. Rachovides is a well-known specialist in South East Europe and Chairman of the Euromines Gold Group.

w w w. e u r o m i n e s . o r g

E u r omi n e s

Vykleky quarry in the Czech Republic after rehabilitation

“Europe is surprisingly underexplored and underinvested for exploration” – Mark Rachovides

December 2014

“That’s what we want to achieve; to set the standard that’s higher than everyone else.” Present virtues Manufacturing in Europe currently accounts for 75 percent of the EU’s exports and many of these manufactured products depend on raw materials. It is figures like these which the Association aims to make clearer to the business world moving forward.

Mining

“Europe is surprisingly underexplored and underinvested for exploration, but in terms of technology, we’re very advanced, so we are increasingly developing the ability to mine more complex deposits and have more automated machinery,” Rachovides said. “We ultimately look to a future of stateof-the-art modern mining in Europe.” The Association is therefore striving, through affiliations with organisations and

Europe is rich in natural resources w w w. e u r o m i n e s . o r g

Wealth Creation by Mineral Extraction in Europe, organised by Euromines on 3rd December 2013 in Brussels

Xxxxxxxxxx Vykleky quarry in the Czech Republic before rehabilitation

E u r omi n e s

E U RO P E

conferences at high profile events, to start getting that positive industry message across. This can only come with a collaborative and integrated drive among its members too though, and Rachovides is adamant that all are responsible in that push and none are burying their heads in the sand. “Most of our members need and do talk more about our good stewardship and the added value that we bring across the spectrum of our activities,” he added. “A lot of the criticisms are the sins of our past and we need to talk more about the virtues of our present and our future. “Our performance today in Europe speaks for itself. We have excellent health and safety records, very low numbers of fatalities and rank very highly in terms of productivity. We invent a lot of technologies used worldwide because we are constructive, responsible, intelligent people.” Globally competitive Structured through a series of committees, comprising a decision-making steering committee, a think-tank policy committee, and some more specialised sector committees – environment, health and safety, emission training standards, communication, gold mining and magnesia production – Euromines is set up to be the recognised representative for mining in Europe; a voice and point of reference in relation to the European institutions, and a sounding board for members regarding

Key Personnel

Corina Hebestreit Director Dr. Hebestreit is the Director of Euromines. She has 20 years of experience in the mining sector, from primary raw materials to marketing of end products. Over the years she has built an extensive network in the industry and academia.

Johannes Dreilsma Deputy Director of Euromines

w w w. e u r o m i n e s . o r g

E u r omi n e s

Wealth Creation by Mineral Extraction in Europe

EU mining sector can boast a wealth of deposit opportunities

December 2014

policy matters and technical issues. The main goal as a consequence of these ongoing discussions, forums, collaborations with global organisations and monitoring of international trends, is to ensure that the EU maintains and builds upon its position as a responsible and balanced source of minerals. Complementing the effective stewardship, innovation and people that the EU mining sector can boast is also a wealth of deposit opportunities where the industry can expand its footprint, and this is what Euromines will be smoothing the pathway towards

E U RO P E

Association Information A SS O C I A T I O N TYPE

Mining L O C AT I O N

Brussels founded

1996 No . o f M em b e rs

N/A

over the coming months and years. “There is certainly a lot of money in Europe and we also have a tremendous amount of intellectual capital and industrial capital in terms of making and inventing things,” Rachovides concluded. “If you look at our competitive positioning, we are heavily regulated, have a large population, not a lot of land mass, but still manage to compete in an international market on a company-by-company basis successfully. “We’ve dealt with the questions of the past and can now be innovative and adopt competitive solutions to problems of the future.” w w w. e u r o m i n e s . o r g

Ramps up base metals production Written by: Tom Wadlow Produced by: James Pepper

Lundin Mining

The mid-tier producing copper, zinc and nickel specialist has just commenced production from its $715 million investment at the Eagle Mine in Michigan and is reviewing expanding zinc production at its long-life NevesCorvo mine in Portugal

Map showing worldwide operations 44

December 2014

undin Mining is bolstering its presence across Europe and beyond with a number of promising expansions, along with exploration and mine construction projects which will see the company head towards its 500,000ton production target in the next two to three years. Such ambition is amply demonstrated by the drive to more than double zinc output at Lundinâ&#x20AC;&#x2122;s Neves-Corvo mine in Portugal, while a $715 million investment into a new nickel-copper mine in Michigan, USA, is now operational. The American acquisition from Rio Tinto extends the companyâ&#x20AC;&#x2122;s reach beyond its European heartland, where mines in Portugal, Sweden and Spain are also performing well and have life ahead of them. Away from wholly-owned operations, Lundin Mining also holds a 24 percent stake in joint ventures with Freeport in a high quality coppercobalt operation in the Democratic Republic of Congo (DRC) and in a cobalt refinery in Finland, granting vertical integration into the world of cobalt mining. While current performance and growth has been steady, CEO Paul Conibear is aware that the business needs to keep exploring for the next high-grade copper discoveries and bring more assets on board. â&#x20AC;&#x153;Our metal production is around 300,000 tons this year and I would like to get us up to 500,000 tons in the next two to three years which means

Mining

“Our metal production is around 300,000 tons this year and I would like to get us up to 500,000 tons in the next two to three years” – Paul Conibear, CEO

w w w. l u n d i n m i n i n g . c o m

Lundin Mining

Neves-Corvo

‘Approximately 220 kilometres southeast of Lisbon in the Alentejo district of southern Portugal lies Neves-Corvo, Lundin Mining’s most significant European asset’

December 2014

an additional one or two more mines,” he said. “This will lift Lundin Mining to the sort of scale we want to be at, operating five or six strong mines.” Neves-Corvo Approximately 220 kilometres southeast of Lisbon in the Alentejo district of southern Portugal lies Neves-Corvo, Lundin Mining’s most significant European asset run by its native subsidiary Somincor, and one which could have up to 30 more years of life ahead of it. Already producing 50-60,000 tons of copper and 60-65,000 tons of zinc annually from five separate ore deposits, the company is conducting a feasibility study which could see it more than double zinc output by 2017. “The study is not complete yet but we are optimistic,” Conibear added. “The global resource is more than 100 million tons of better than six percent zinc and only 1.2 million tons a year is being processed.

E U RO P E

“There is huge potential if we can get the capital investment right. Worldwide there are very few western companies who have an asset base like this, so it is a unique opportunity for us to look at something which has been underexplored over the past decade.” The study should be completed by the end of Q1 2015, with Lundin keen to get construction underway which would involve deep bottlenecking, improving shaft capacity and doubling the zinc plant above ground. The company is also looking to expand tailings management storage and advanced water treatment facilities. Despite the upcoming focus on boosting zinc production, copper will continue to provide 50 percent or more of revenues from this asset, home to 2,000 of Lundin’s 3,000 global workforce. Into the Americas Lundin Mining’s newest Michigan asset fits perfectly into Conibear’s plan to find new deposits of the highest quality. Having acquired the nickel-copper site from Rio Tinto in July 2013 for $315 million, a further $400 million has brought the project to operational status ahead of schedule with a view to it becoming the company’s eventual biggest earner. Conibear said: “This is an extremely high-grade deposit, and nickel has taken a big step forward recently as a highly valuable commodity so we are hitting the cycle at an ideal time.

60,000 Tons of copper currently being produced from the Neves-Corvo mine

w w w. l u n d i n m i n i n g . c o m

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Water reservoir Water reservoir – Neves–Corvo NevesMine, CorvoPortugal Mine, Portugal

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erint imprint of a true of a Engineering true Engineering Company, Company, with recognized with recognized expertise expertise in theindesign, the design, dnmanagement and management of major of major projects projects and developments, and developments, it hasitbeen has been operating operating in in EPOS,EPOS, S.A. S.A. which, which, ddmining and mining worksworks sincesince 1981,1981, mainly mainly through through its subsidiary its subsidiary rience, experience, still has stillthe hasmost the most advanced advanced technology technology and equipment and equipment for the for the pe works, of works, remaining remaining continuously continuously activeactive for more for more than than 30 years 30 years in major in major mining mining fpecting prospecting and survey, and survey, infrastructure infrastructure construction construction and exploration. and exploration.

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Equipment Equipment maintence maintence

anca Aguablanca Mine, Spain Mine, Spain

True to True its to performance its performance values, values, Teixeira Teixeira Duarte Duarte has achieved has achieved a a steady steady and sustained and sustained growth growth that has thatallowed has allowed it to build it to build a strong a strong business business capacity, capacity, detaining detaining means means and resources, and resources, namely namely human, human, whichwhich have have enabled enabled it to undergo it to undergo multiple multiple internationalization internationalization processes processes and broaden and broaden its areas its areas of of expertise. expertise. Having Having achieved achieved a turnover a turnover of more of more than EUR than 1,500 EUR 1,500 million million in 2013, in 2013, Teixeira Teixeira Duarte Duarte GroupGroup currently currently has around has around 12,500 12,500 employees employees operating operating in 16 countries, in 16 countries, in 4 continents, in 4 continents, working working in 7 different in 7 different sectors, sectors, notably notably in Construction, in Construction, anca Aguablanca Mine, Spain Mine, Spain Concessions Concessions and Services, and Services, Real Estate, Real Estate, HotelHotel Services, Services, Distribution, Distribution, Energy Energy and Automotive and Automotive Industry. Industry. Teixeira Teixeira Duarte Duarte has been has been listedlisted on theonstock the stock exchange exchange market market since since 1998,1998, but itbut maintains it maintains a stable a stable shareholder shareholder structure, structure, mostly mostly dominated dominated by thebyTeixeira the Teixeira Duarte Duarte family, family, which, which, alongalong with its with history its history and the andoperational the operational capacity capacity of its of teams its teams and and resources, resources, gives gives it theitconfidence the confidence and responsibility and responsibility to be to able beto able to continue continue to fulfill to fulfill its mission: its mission:

Execute, Execute, contributing contributing towards towards the construction the construction of a better of a better worldworld . .

Corvo NevesMine, CorvoPortugal Mine, Portugal

supplier profile

EPOS

Established: Early 1980’s Industry: Construction Services: EPOS - Empresa Portuguesa de Obras Subterrâneas, S.A. is a leading Portuguese company for large underground construction contracts of all types, holding an extensive experience in this type of work. Founded in 1986, the company quickly affirmed itself as the specialised contractor in its field. More than 20 years on, EPOS is today recognised in the market for the high technology of its production facilities, both human and equipment, that are clearly reflected in the high standard of its outstanding works. EPOS is confident in the future, emphasised by the ever increasing demands of the different works it has been awarded. EPOS faces its challenges, strengthened by this confidence, as it reaffirms its leadership and ongoing commitment on quality, safety, its team, cutting edge technology, respect for the environment as well as social responsibilities and the continuous improvement in profitability that guarantees the satisfaction of customers, shareholders and investors. Management: President - Dr. José Pedro Poiares Cobra Ferreira Website: www.epos.pt

Lundin Mining

E U RO P E

“Currently the life is eight years and there is a satellite deposit we are drilling now to see if we can expand the life beyond this. There are not many new mines being built these days so we are very pleased with how this has developed.” The CEO said that Lundin should be able to produce at around $2 per pound of nickel, and with prices currently sitting at roughly $8, the margins are extremely encouraging, especially given annual production is expected to reach respective amounts of 23,000 and 20,000 tons of nickel and copper. The 300 metre long, 85 metre wide and 340 metre deep high grade deposit will also produce some cobalt, platinum, palladium and gold byproducts. Just recently announced is Lundin Mining’s acquisition from Freeport of an 80 percent stake in the renowned Candelaria copper/gold mine in Chile. This $1.8 billion acquisition vaults Lundin up into the top 20 copper producers, more than doubling 2015 copper production. Lundin is pursuing upside opportunities at Candelaria with an aggressive exploration programme to extend the life of the large open pit and three existing underground mines that make up the Candelaria Mine Complex.

‘Just recently announced is Lundin Mining’s acquisition from Freeport of an 80 percent stake in the renowned Candelaria copper/ gold mine in Chile’

Closer to home Back in Sweden, Lundin Mining is celebrating its 10th anniversary of operating the Zinkgruvan zinc and copper mine, which has at least another w w w. l u n d i n m i n i n g . c o m

The company

JosĂŠ Dias Faustino, S.A. works

as an earthmoving contractor for Somincor, S.A., performing underground and surface services at the Neves Corvo mines.

Tel: 00351 286 683 268 F: 00351 286 683 051 E: jdf@grupojdf.pt Mina Neves Corvo 7780 -409 Santa Barbara de Padroes

Lundin Mining

E U RO P E

decade of life to run. This was the company’s first major asset following the Lundin Family’s discovery of its first mine at Storliden, in northern Sweden. The business started out as a junior explorer in the 1990s before making this high-grade zinc and copper breakthrough in 1999, which went into production in 2002 and provided essential capital for acquisition of additional mines. At Zinkgruvan, in the central-south region of the country, Lundin Mining has managed to ramp up extraction of ore from 700,000 annual tons to 1.2 million, with Conibear looking to gain another five to 10 percent by maximising current capabilities. “Each year we have been successful in discovering more than we’ve milled,” Conibear added. “And as well as producing 75-80,000 tons

Operations in Zinkgruvan mine

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Checking References? Ours go back more than

125 years

Heavy Industrial General Contractors Specialists in Mining Construction and Maintenance Design/Build • Boilermaking • Concrete • Demolition Ironworking • Millwrighting • Piping • Offices Nationwide With gratitude to Lundin Mining for the opportunity to help build the new Eagle Mine and reinvigorate the historic Humboldt Mill in Michigan’s Upper Peninsula. CR Meyer is proud to be a part of the region’s rich mining history.

crmeyer.com 800.236.6650

Lundin Mining

E U RO P E

of very clean zinc, the 30-35,000 tons of lead and 3-4,000 tons of copper by-products makes this mine very cost effective.” Elsewhere in Europe, Lundin is looking to shift production from seven years of open pit to underground extraction of better-quality nickel and copper at Aguablanca in southern Spain. This will commence at the turn of the year for an initial life of three years with the option to go deeper. Lundin Mining also holds a 24 percent interest in a joint venture with Freeport at Finland’s Kokkola cobalt mine. A similar stake of a Freeport partnership at Tenke Fungurume in the DRC, one of the world’s largest known copper-cobalt resources, has also been established and it delivered $140 million to Lundin in cash flow last year.

supplier profile

“As well as producing 7580,000 tons of very clean zinc, the 30-35,000 tons of lead and 3-4,000 tons of copper byproducts makes this mine very cost effective” – Paul Conibear

CR Meyer

CR Meyer is a heavy industrial general contractor with deep roots in the mining industry. More than 70 years ago they began constructing heavy industrial facilities at iron ore mines in Michigan’s Upper Peninsula. The company has since expanded across the United States to include mines that extract rare earth minerals, metals, and materials for the petrochemical industry. CR Meyer’s professional services division includes project managers, engineers, architects, and schedulers who develop solutions to control costs, maximize productivity, and complete projects safely. Website: www.crmeyer.com

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Lundin Mining

Eagle Mine

‘Eagle Mine is also home to pioneering techniques. “Water treatment is an area which the company is stepping up its activity” – Paul Conibear

December 2014

Advancing techniques As well as developing its portfolio of high-grade assets, Lundin Mining is also eager to make the most out of both tried and tested and new innovations to help see it reach future production targets. The company is trialling two enormous 60-ton Atlas Copco underground haul trucks at NevesCorvo, where advanced dewatering of tailings is also being put into practice alongside smart technologies to help give enhanced visibility of important mining processes. Eagle Mine is also home to pioneering techniques. Conibear added: “Water treatment

Mining

is an area which the company is stepping up its activity. At Eagle Mine we have two state-ofthe-art water treatment plants which I have not even seen in the base metals industry before. These have reverse osmosis capabilities and cost around $60 million. â&#x20AC;&#x153;Over in Sweden heat recovery has become a priority and something which has helped us conserve energy â&#x20AC;&#x201C; we are looking into deploying this in other locations too.â&#x20AC;? Responsible In all areas of operations Lundin Mining is committed to working responsibly and to the

60 million

Value in dollars of two state-ofthe-art water treatment plants

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Lundin Mining

E U RO P E

benefit of the localities in which it is based. The company’s corporate goals include ‘development of a high performance, motivated culture, achieving a safe, productive and healthy work environment, and to conduct business activities ethically and transparently’. Each year Lundin Mining publishes a detailed Sustainability Report, outlining achievements and areas for improvement in sectors from environment and corporate governance to social and health and safety. During 2013, overall safety record for the year included a Total Recordable Incident Frequency (TRIF) of 2.01, which represented an improvement of 20 percent over the prior year TRIF of 2.50. The target for 2014 is 1.8.

Aguablanca, HSE rescue team

Key Personnel

Paul Conibear CEO Mr. Conibear has more than 30 years’ experience in corporate and asset management of all phases of mining investments in North and South America, and several African countries including the Democratic Republic of Congo. Originally from the mining centre of Sudbury, he brings a practical background of 18 years in mining project and construction management followed by 12 years as a corporate officer and director for several successful public companies including Tenke Mining Corp.

w w w. l u n d i n m i n i n g . c o m

ECOFAB RAILCAR COVERS Covering the World's Bulk Materials Proven record of reliability and safety Quick on and off application Provides 100% dry containment Superior performance with low overall cost

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Lundin Mining

E U RO P E

The company has a strong reputation as being a good corporate citizen, underlined by its support of social programmes including the Zinc Saves Kids initiative. Zinc Saves Kids is a scheme designed to improve the survival, growth, and development of undernourished children by funding UNICEFâ&#x20AC;&#x2122;s zinc supplementation and treatment programmes. This was one of many schemes funded by Lundin Mining, with overall company spend on social programmes exceeding $9 million for 2013.

The Zinc Saves Kids initiative makes a difference on the ground in Peru and Nepal

w w w. l u n d i n m i n i n g . c o m

We custom design the lubricant that your machine needs If no two machines are alike, no two lubricants should be alike either. Because of this, at Repsol we make a customized lubricant for your machinery, based on its needs, and always in accordance with the strictest of international standards and the certifications of the most important manufacturers.

Subsidence, Stability, Seismicity, Water, Safety Sydney Tel +61 412 135 782

www.beckengineering.com.au Melbourne Tel +61 488 440 964

Berlin Tel +4930 8507 3699

Lundin Mining

E U RO P E

As of January 2013, 0.1 percent of company revenues are being channelled into the Lundin Foundation. Conibear explained in the Sustainability Report 2013: â&#x20AC;&#x153;In addition to the provision of traditional community investment programs in the areas of health, education and community infrastructure, the Lundin Foundation provides seed grants, technical assistance and risk capital to highpotential small and medium-sized businesses and social enterprises with a view to generating wealth and employment needed to alleviate poverty on a sustained basis.â&#x20AC;?

Working together

Lundin Mining is committed to protecting the environment w w w. l u n d i n m i n i n g . c o m

Lundin Mining Such ongoing work will only continue to strengthen the companyâ&#x20AC;&#x2122;s reputation as a sustainable miner, something which the CEO is determined to preserve and enhance moving forward.

Zinkgruvan, rescue simulation training

Looking forward As well as helping to improve the lives of others, Lundin Mining also invests heavily into developing its own base of employees and prospective workers. This often involves offering work to locally-based people, providing an instant economic boost to the areas operated in. Equally as important as adopting the latest

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M.J. VanDamme, Inc. is a

construction firm involved in mining support, farming, and civil construction. www.mjvandammeinc.com

Illuminating solutions for day or night. www.provincelighting.com

M i n i n g G l o bal

â&#x20AC;&#x2DC;As well as helping to improve the lives of others, Lundin Mining also invests heavily into developing its own base of employees and prospective workersâ&#x20AC;&#x2122;

Itaque consed quam aspero et modite

w w w. l u n d i n m i n i n g . c o m

Uncovering new highgrade deposits is also key to future growth

“..the group has a great exploration record over the past 15 years but Mother Nature is tough – it takes time” – Paul Conibear

December 2014

proven mining techniques and training existing workers is nurturing the mining engineers and directors of tomorrow, something which the company’s successful graduate scheme is actively pursuing. “We hire a lot of young people; last summer we had 58 students and when they come on board we cycle them through our mines to gain on the job training,” Conibear said. “It has been extremely successful, as every new grad has been deployed and we don’t get them back as they really demonstrate their value to the operations. “Quite a lot of our graduate hiring comes from Portuguese and Swedish universities and we will attract American and Canadian students with the Eagle Mine. We are based in some outstanding locations for young people to start their working

Lundin Mining

E U RO P E

Company Information Industry

Mining h ea d q u a r te r s

Toronto, Canada founded

1994 employee s

3,000

careers.” Uncovering new high-grade deposits is also key to future growth, with Lundin Mining spending $35-50 million a year on exploration, primarily in pursuit of copper. Around half of this is spent around the company’s existing sites with the rest being invested in the likes of Peru, Chile, Turkey and Romania. The outcomes of these works could be pivotal to Conibear’s ambitions. He concluded: “Being growth oriented brings its challenges, the greatest of which being to find quality investment targets. There are plenty of affordable exploration projects but the grades are hard to find. “That said the group has a great exploration record over the past 15 years but Mother Nature is tough – it takes time.”

revenue

$727.8 million (2013) p r o d u ct s / s e r v ice s

Copper, zinc and nickel specialist

w w w. l u n d i n m i n i n g . c o m

True North Gems

Partnerships Provide Pivot Role in True North Gemsâ&#x20AC;&#x2122; Bid for Greenland Mining True North Gems is creating a legacy of social responsibility through key partnerships and a steady commitment to sharing the benefits of its business with the local community Written by: Robert Spence

Produced by: Bobby Meehan

T r u e No r t h Gem s

reenland is home to some of the most pure sapphire and ruby gems in the world. The country, which has notoriously been hesitant to allow mining activities in the past, recently awarded an exploration permit to True North Gems – a junior exploration company based in Canada. The company plans to not only succeed in finding profitable gems but make a positive impact in the local community as well. Through key partnerships and a steady commitment to sharing the benefits of its business, True North Gems is striving to become the 70

December 2014

world’s premier producer of Rubies and Pink Sapphires by creating a legacy of social responsibility. Partnership with LNS Greenland In March, True North Gems was awarded a 30-year mining permit for the Aappaluttoq Ruby deposit in Southwest Greenland. The mining project, which has an initial mine life of nine years, will range from an open-pit mine to a gemstone grading and processing facility. To finance the infrastructure costs, the company needed to secure a financial partner. “We wanted to engage with

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someone who had an interest in focusing on the quality of the ruby- and sapphire ore, not just the quantity,” says Bent Jensen, General Manager of the Aappaluttoq project. “Normally, you want to focus on the volume and get the most out of the ground. With us, that’s not the case. We want to protect the mineral ore as much as possible.” The company set off in search of an investor with the same mindset, experience, and financial backing to fit its needs, and the Leonhard Nilsen and Sonner AS Group (LNS) had all the attributes.

“We wanted to engage with an operator that would focus on the motive. We quickly came to the conclusion we needed to get an operator who would also be an investor,” says Jensen. “That’s why they’re interesting. They have the experience building and operating mines, the financial backing we need, and they were initially involved in the gold mining here in Greenland. So they have a relationship with the community.” True North Gems and LNS Group through LNS Greenland signed a deal for the latter to invest a total of $34 million into the project through w w w. t r u e n o r t h g e m s . c o m

OIL SUPPLY COMPANY FOR ALL OF GREENLAND We supply oil to mining and oil industries

Contacts Energy Manager Tage Lindegaard tal@kni.gl

Logistic Manager Niels Chemnitz niz@kni.gl

All types of liquid petroleum products TNG_polaroil_promo_196x137mm.indd 1

With a 30 year proven track record in the Artic, Ramboll is the region’s leading consultancy. As a strategic partner to customers in the building, transport, oil & gas, energy, mining and society building sectors, we deliver optimised solutions that are environmentally and socially responsible. www.ramboll.com/arctic

meeting arctic development challenges (delivering sustainable solutions)

P.O. BOX 3030 ∙ 3911 SISIMIUT ∙ GREENLAND PHONE: +299 86 24 44 ∙ FAX: +299 86 23 96

11/11/14 15.10

T r u e No r t h Gem s mine infrastructure and capital loan. The deal included: • Building a port. • Building a complete and modern camp for approx. 48 workers. • Building Fuel depot, Explosive Depot, Heli-pad and workshop. • Building a Process Plant. • Building approx. 8.5 km of roads to tie all facilities together. • The completion of all infrastructure, which will enable planned production to commence in 2015. • Once construction is completed, LNSG will be in charge of the daily operation of the mine-site. In return, LNS will receive 7 percent initial ownership in the Greenlandic company True North Gems Greenland (TNGG) and upon completion of the infrastructure and reaching operational status LNS will have earned the right to a further 20 percent ownership. Bringing their total ownership to 27 percent. “We had other interesting investors but we chose LNS because we saw the Group as the ideal partner for the project. At the end of the day, we wanted what was best for the not only the project, but

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also the community” says Jensen. “We see it as a very strong joint venture.” Community involvement True North Gems has completed the Impact Benefit Agreement (IBA) negotiations and all parties have executed a ground breaking accord. The Company has also finalized the subsequent operating and closure plan for the Aappaluttoq Ruby deposit. As part of its agreement, the company plans to engage with the local community and provide training and economic benefits from the project. “If you look at our social impact assessment report, we raise the possibility of hiring local people right from the start,” says Jensen. “This is a decision we made a long time ago as we wanted to engage with the local community to make sure they benefit from this project. When we have a mandate we strive to adhere to it.” For the project, the company has planned to hire roughly 80 workers of which the company has committed to ensure that at least 75% of these will be local employees in which they would train and w w w. t r u e n o r t h g e m s . c o m

T r u e No r t h Gem s

implement in various functions of the operation. According to Jensen, after initiating the Hearing Process, receiving exploitation permitting and approvals of Exploitationand Abandonment Plans from the Greenland government, the company had received 300 74

December 2014

unsolicited applications from the local community. â&#x20AC;&#x153;We couldnâ&#x20AC;&#x2122;t believe it. Over 300 people applied for positions within our company all on their own. I think the community is starting to trust us and our commitment.â&#x20AC;? In regards to training, the company quickly realized most of

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the community had already been trained in the mining industry. “In 2009, the Government opened a mining school. The school is responsible for running a training program called Common Core. Over 300 people have passed the course. We quickly realized there are a lot of people who already have the skill sets needed,” says Jensen. Living up to their promises To further enhance the community, True North Gems is developing a local recruitment strategy which focuses on pre-employment, recruiting and employee retention and employee development initiatives. The company is also planning to launch an array of cultural awareness, community well-being and health and safety programs in an effort to address local issues. In addition, the company is working with the local community to minimize any negative environmental impacts of the project. With pivotal partnerships in place, True North Gems is building the platform for a successful mining operation through trust and integrity. According to Jensen, by building relationships through trust and open communication, True North Gems is working to provide social, cultural and community support, which will benefit both the community and the company. “We’ve already hired our first set of local-based employees. The people of Greenland can now see we live up to our promises.”

Company Information Industry

Mining h ea d q u a r te r s

Vancouver, British Columbia

w w w. t r u e n o r t h g e m s . c o m

Cementation A New Way of Building Mines Canadaâ&#x20AC;&#x2122;s premier mining contractor Cementation is changing the way mine contracting is carried out Written by: Robert Spence

Produced by: Bobby Meehan

C eme n tatio n

Cementation raise boring team with underground set-up.

ementation is an underground mine contracting and engineering company that provides an extensive array of services for clients throughout North and South America. Based in Ontario, Canada, the company has a unique structure, one that is well suited for technically challenging projects. “We set out to do something different,” says President of Cementation, Roy Slack. “We wanted to change the way mine contracting is carried out.” The company started by focusing on three key aspects: safety, relationships 78

December 2014

and the way it implements contracting. “We wanted this to be an industry with zero harm so we aligned our vision to focus on safety,” says Slack. “Secondly, we wanted to restructure the relationship between us and the clients and avoid adversarial relationships. We really try and understand what the client wants from a project standpoint and we align ourselves with these goals. Lastly, we wanted to change the way contracting is done by providing a true design-build service for Clients. Traditionally, different groups would work on different stages of a project; we wanted to

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establish both continuity and one point accountability through a strong engineering service within our contracting group. “These are the changes we wanted to make.”

corporate values as well as legislated requirements specific to the jurisdictions they work in. Cementation has also developed a risk management protocol. “We’ve developed a system for hazard recognition. The people in Safety our group have a lot of long-term Above all else, Cementation is experience and they’ve the ability to committed to safety. The company recognize hazards,” says Slack. “We recognizes that a safe contractor is wanted to implement that insight more attractive to both employees into this program.” and clients and this aligns with the The program is structured to have company’s goal of being both an project managers coach their teams employer and contractor of choice. on safety precautions and provide “We wanted to be the employer of insight for recognizing potential choice and we’ve worked extremely hazards. The goal is to establish and hard at that,” says Slack. “We support a culture of safety. wanted to align employee goals with “In safety, we talk about structure corporate goals in order to help our and culture. Safety culture is the people succeed. We have a strong mindset of the people: the attitude, training program in and out of office. the respect and the ability to work We believe safety is the right way together,” says Slack. to work and we believe in treating “Structure is also very important; employees with respect. If benefits if it is missing you’re in trouble. come from that, good, but we look at Structure includes a strong it as simply the right way to work.” orientation program, ongoing To maintain the highest level training and evaluation, along with hazard recognition and detailed of safety, the company has work procedures.” implemented training programs developed from its internal w w w. c e m e n t a t i o n . c o m

C eme n tatio n Relationships Relationships are the lifeblood for contractors. They play a vital piece in keeping clients up-todate with progress and changes in projects as well as occurring repeat business. With that being said, Cementation is focused on maintaining and growing its relationship with clients as well as employees. Along with building quality client and vendor relationships, the company strives to maintain solid employee relationships. Cementation has implemented a wide array of programs for helping employees succeed. In Canada, the company has developed and utilized a leadership development program for employees. For this program the company utilizes the

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Harvard Manager Mentor program for leadership development, a unique e-learning platform that gives employees an opportunity to receive customized programs geared at their specific training requirements. “It’s a computer based training program, but then we establish various forums where the trainees can get together to review and discuss the content,” says Slack. “Another aspect of the program is Lunch & Learns, where we bring in different departments to present on what they do – it’s sort of like an internal cross-training program. We want everyone to understand what each department is involved in.” Slack adds, “The training program was developed with our employees and supervisors in mind. We enlisted

Cementation raise boring team set-up on surface at AuRico Gold’s Young-Davidson Project near Matachewan, Ontario.

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C eme n tatio n

Inspecting bored shaft at AuRico Goldâ&#x20AC;&#x2122;s Young-Davidson Mine near Matachewan, Ontario.

December 2014

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a number of people in the program with a set number of courses to help them develop the skills required to succeed.” Along with nurturing quality relationships, Cementation is focused on cultivating meaningful partnerships. The company has developed numerous Aboriginal partnerships across the Canadian landscape to support and develop the Northern communities that those partners live in. Recognized as a “partner of choice” for First Nations and Inuit groups, the company has created opportunities for Aboriginal groups by creating jobs, training and resources to succeed. According to Slack, the ‘New Miner’ program was implemented nine years ago in an effort to introduce new people into the industry, including the First Nations partners. “The program is an excellent tool for extensive training. It includes roughly three months of classroom indoctrination and nine months working on site. Participants are paid the entire time and they’re expected to treat the training as a job, which it is. We’ve had nothing but success with the program.” By staying true to its vision and goals, Cementation has become the mining contractor of choice for both clients and employees. By achieving excellence in safety, performance beyond expectations and quality long-term relationships, the company has provided the mining industry with a different approach to the way mine contracting can be carried out.

Company Information Industry

Mining h ea d q u a r te r s

Ontario, Canada founded

1998 employee s

1000

w w w. c e m e n t a t i o n . c o m

ArcelorMittal Mining Can

World Class Performance

Steve Wood of ArcelorMittal Mining Canada G.P. discusse expansion project at its Mont-Wright mine, including major improvements and future plans to be best in class Written by: Robert Spence

Produced by: Aaron Wells

nada G.P.

es the companyâ&#x20AC;&#x2122;s successful r investments, continuous

A r celo r M ittal M i n e s C a n a d a

MW Mine avec sautage 86

September 2014

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Expansion projects in the mining industry are no easy task. Successfully implementing new objectives into operations requires the successful planning, integration and execution. Under the helm of Steve Wood, ArcelorMittal Mining Canada G.P. is currently perfecting the skill. Founded in 1957, ArcelorMittal Mining Canada G.P. is the largest mining division of the multinational

corporation, ArcelorMittal. The company has become the leading supplier of iron ore and steel in Canada, producing approximately 60 percent of the countryâ&#x20AC;&#x2122;s total production. Expansion of the future ArcelorMittal Mining Canada G.P. currently operates two large openpit mines: Mont-Wright Complex and Fire Lake. The Mont-Wright mining complex w w w. a r c e l o r m i t t a l . c o m

supplier profile

The Castech-Plessitech Group

Located in Quebec (Canada), The Castech-Plessitech Group is a young, dynamic and experienced team that contains over 200 employees. Since 1931, Castech-Plessitech is present in many sectors such as: Mining, Aluminum, Pulp and Paper, Industrial, Hydro and Wind energy. The Group is unique because of its complete value added manufacturing services: •

Engineering Department

•

Ferrous castings up to 40 000 lbs in all types of alloys and irons

•

Machining of parts

•

Welding

•

Assemblies with lifting capacities of 100 tons

•

Screw conveyors

•

Finishing and painting

•

Overload and wide load transportation

•

Installation on site

Website: www.castechinc.com – www.plessitech.com

A r celo r M ittal M i n e s C a n a d a is a highly systematic operation comprised of an open-pit mine, an ore crusher and concentrator facility along with a train loading system. The mine is linked by a companyowned rail to the Port-Cartier industrial complex. Located roughly 55 kilometers from Mont-Wright is the Fire Lake mine. Because of the high demand for iron ore, the mine has become an additional deposit for the ArcelorMittal to operate at. In 2011, the company undertook one of the largest expansion projects in Quebec. The project, which was completed last year, entailed expanding infrastructure at the Mont-Wright mine to increase production from 16 to 24 million tons of iron ore by end of 2013. “We hit the run rate of 24 million late last year in November and things look good to make 24 million again this year,” says Steve Wood, president of ArcelorMittal Mining

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Canada G.P. He continues, “It’s pretty phenomenal to get those rates right after an expansion project. It’s an exciting time in terms of expansion and maximizing benefit of our investment.” Part of the latest expansion involved the commissioning of new spiral lines and a concentrating plant with additional upgrades to the railway and port in Port-Cartier. Wood believes with a few minor improvements ArcelorMittal can reach an even higher production rate. “We can see a day where with a few minor tweaks we can go above name plate capacity,” says Wood. Overall, the expansion project included: • Commission of new spirals line at concentrator • New trucks and maintenance shop operational • Additional rail sidings completed • New concentrator completed

“Our job here is to get world class levels of performance in every aspect of the business in terms of productivity, maintenance, and reliability of equipment” – Steve Wood, President of ArcelorMittal Mines Canada w w w. a r c e l o r m i t t a l . c o m

1 866 444-9944 | hewitt.ca

MAC 18-14A

WHEREVER THERE’S MINING, WE’RE THERE

THE BROADEST PRODUCT LINE IN THE MINING INDUSTRY

MAC 18-14D

Wherever there’s mining in Quebec and in Western Labrador, you’ll find Cat products hard at work – drilling and digging, loading and hauling, grading and dozing. You will also find a Hewitt Equipment Limited branch, providing unmatched support, expert service and integrated solutions. Superior products. World class service. One source.

MAC 18-14D

supplier THE BROADESTprofile PRODUCT LINE IN THE MINING INDUSTRY

Hewitt Equipment Limited

19-08-2014 13:41

Founded in 1952, Hewitt Equipment Limited is the authorized Caterpillar Dealer for Quebec, Western Labrador and the Maritime Provinces in Canada. Hewitt has the expertise to deliver the world’s largest mobile mining equipment and act as a partner to help customers achieve success in their projects. Hewitt also provides the following services: • Assessment and continuous improvement: Hewitt’s mining experts perform a wide range of evaluations on site, while assessing processes and operational performance, enhancing productivity measures and identifying gaps and areas of improvement. • Best practices implementation: Hewitt and Caterpillar have developed throughout several decades of field experience an outstanding portfolio of best practices, in areas such as Maintenance & Repair, Application Component Life and Service Contract Management. • One stop shop: Hewitt achieves important synergies, leveraged by the supply of the largest variety of mining equipment and parts, volume discounts, processes optimization, and the access to a large pool of expertise and technical resources.

Hewitt, Service par Excellence +1 514-6303100 Visit our Website: www.hewitt.ca

A r celo r M ittal M i n e s C a n a d a • New stacker-reclaimer and shiploader in commissioning • Concentrate production exceeded 2Mt in December 2013 • Shipments of 1.987 Mt in December 2013 • Costs benefiting from scale The province of Quebec is benefiting from the expansion as well. Income taxes and mining rights revenues will account for over $3 billion, which will assist the government through 2039. Quebec will also profit from increased export capacity of goods overseas, consolidation of the mining sector in general and community development. Job creation in Canada is another benefit of the expansion. Over 8,000 jobs were created during the construction of the project and another 600 permanent jobs

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have been implemented since the completion of the expansion. Investments To get the project rolling ArcelorMittal has invested significantly to the tune of $1.6 billion, including an array of new equipment and technology to expand the production rate and increase efficiency. “We purchased new equipment; hired additional people; increased our processing capacity; added another large line, increased our capacity for concentrate by 50 percent, and put in a new processing mill and more spirals,” Wood continues, “We also purchased 13 Caterpillar 797 400 ton trucks to assist in moving larger volumes in less time.” The 400 ton trucks are equipped

“It’s pretty phenomenal to get those rates right after an expansion project. It’s an exciting time in terms of expansion and maximizing benefit of our investment” – Steve Wood, President of ArcelorMittal Mines Canada w w w. a r c e l o r m i t t a l . c o m

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Irrigation NORCO Inc. is a leader in the realm of land reclamation and revegetation. Using broad agronomic principles, we change sterile mining wastes into young natural prairies. Thanks to the various works we accomplish in the field, sterile mineral substrate becomes a genuine living soil.

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Irrigation Norco

Established in 1993, we are a firm which specializes in land reclamation, revegetation and offering a wide variety of agricultural engineering and agronomic services. The combination of these services allows us to offer our costumers several products of the highest quality.

Website: http://www.irrigationnorco.com

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A r celo r M ittal M i n e s C a n a d a with an 18-step staircase to reach the driver’s cabin with each truck being utilized to transport crude iron ore to a breaker where it will undergo its first transformation. According to Wood, part of the expansion also included investing in its rail line to streamline production. The company railway transports iron ore concentrate from Mont-Wright to Port-Cartier and is renowned throughout the North American rail industry for its reliability and innovation. “We also wanted to amplify the capacity of our rail line so we purchased more locomotives and

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cars, extended some siding that allows us to haul more to port, expanded our capacity to load ships by putting in a new ship loader and stacker as well as a modified conveyor. The future is all about cycle times and reliability,” says Wood. “We want to replicate what we’ve done in the past. We have some of the smartest people in the industry.” Along with acquiring the best equipment possible, technological investments were also made. “We’ve installed the best available technology in terms of planning, dispatching of equipment at mines

Soucy

The introduction of this long family history journey began May 7, 1931, when Mr. Adelard Soucy clears itself a ground of Témiscouata street in Rivière- du- Loup, in order to install its smelter. It manufactured at that time , seamers crank to seal the lids of home canning. Two to three employees then specialized in machinery repair.

Website: www.adelardsoucy.com

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and monitoring progress on a daily, hourly and real-time,” says Wood. “We’re in the process of perfecting it. We know where we can be and we’re working towards it.” Continuous improvement According to Wood, ArcelorMittal is continuously looking to improve in all phases of operations. “Our job here is to get world class levels of performance in every aspect of the business in terms of productivity, maintenance, and reliability of equipment.” With the expansion completed, daily records show potential in system for further growth in: • First sustain 24Mt and chase the “shifting bottleneck” to maximize system potential • Incremental investments for debottlenecking

supplier profile

Port Remorqueurs

Porlier Express

Established on Québec’s North Shore since 1953, Porlier Express offer different services such as: terminal operations, stevedoring, railcar transloading and heavy equipment services. From our installations located at Mont-Wright, Labrador and various ports (Sept-Îles, Port-Cartier and HavreSaint-Pierre), our local and specialized teams offer you direct or intermodal integrated solutions adapted to the specific needs of the region and the industries (mining, smelter, petroleum and chemical).

With Porlier Express, you can be assured of peace of mind ! www.porlier.com (418) 962-3073

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We are a dynamic company specializing in industrial and commercial electricity Kilotech Control Inc. is the prime contractor or subcontractor in collaboration with various partners trust. As electrical contractors for over 30 years, we are able to achieve a complete product into electricity through our multidisciplinary team, while ensuring the complete satisfaction of our customers. Our reputation is that of a company that meets the initial conditions and timing of contracts awarded. Business confidence, Kilotech Control Inc. strives to continuously improve its standards and remain leaders from different donors item. We are able to perform electrical work, instrumentation and control, work line, high voltage and fiber optic, our company offers a full range of services that adapt to specific customer needs, regardless of the size of the project.

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1739 RUE GRANDE CHICOUTIMI, QUEBEC G7K 1H8 TEL: 418-545-6189 FAX: 418-545-7173

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180, RUE NAPOLEON SEPT-ÎLES, QUEBEC G4R 3M5 TEL: 418-968-3006 FAX: 418-968-4009

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A r celo r M ittal M i n e s C a n a d a as required: • Mt Wright mine optimization, Fire Lake expansion (richer ore) and crusher debottlenecking • Rail winter reclaim capability, long train capability, additional sidings • Additional conveyor capacity at port • Significant cost benefits from scale • Potential to expand beyond 30Mt at low capital intensity The company believes over time, with various improvements, the expansion has the potential of producing 100 million tons a year. Wood comments, “We believe there’s an opportunity to do even better. By applying some world class management techniques, training and improving productivity, we think we can hit

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Kilotech

We develop, import and distribute a full assortment of scales to service all types of scale dealers, under the Kilotech brand name. Furthermore, we also carry other quality brands such as Tanita. We focus solely on weighing and measurement products, allowing us to concentrate on a more personal level in servicing our dealers’ needs. Our front line team is ready and able to answer any questions you may have regarding weighing and measurement products. After all, they’ve combined over 50 man years of sales experience and 40 man years of technical support experience between them. We have an established network of distributors across Canada and the U.S. Website: www.kilotech.com

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Crushing and Screening Heavy Civil Construction

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a higher rate of potentially 27-28 million tons and eventually more”. He adds, “Going forward, we’re continuing to work out the bugs so we’re more reliable and consistent in our production.” ArcelorMittal Mining Canada G.P. is continuously striving for excellence and accomplishes this by employing initiatives to not only reach their goals, but exceed them. With the help of employees and extensive training, the company is leading a number of teams in processes for operational excellence. According to Wood, “it helps engage employees. They’re the ones with the ideas and know how things need to run. We want to take their suggestions and implement them. We’re going to do some retraining, reorganization of work and

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PROVIDING SOLUTIONS, CREATING VALUES Applied Industrial Technologies provides solutions and creates value for customers. We supports the manufacturing and maintenance operations in every industry segment. We offer technical expertise, repair services, and a complete offering of Bearing,

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A r celo r M ittal M i n e s C a n a d a work methods so our productivity is best in class and everything is running consistently.” Though the company can’t control certain things, such as ore grade, it still provides superior service in everything it can control.

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“We’re benchmarking ourselves in terms of equipment availability, utilization, productivity workforce and best practices,” says Wood. “We can’t change the ore body but we plan on being world class in everything we can control.”

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Rock-solid litigation expertise At De Grandpré Chait, we advise our clients at every stage of the litigation process before all levels of court in Canada. Whether a case goes to trial or is resolved through arbitration, mediation or negotiation, our experienced lawyers are committed to helping clients achieve the solution that best resolves the dispute at hand. Our expertise extends to a vast array of contentious issues, such as: • Construction claims and litigation • Commercial disputes • Insolvency and financial restructuring • Debt collection • Insurance and liability

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A r celo r M ittal M i n e s C a n a d a The company works toward ambitious goals, including their zero-thirty-thirty goal. Wood explains that this goal, “entails zero harm, 30 million tons a year and 30

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dollars a ton. It’s an aspiration we work every day on. That’s what our operational excellence teams are doing – identifying the potential and engaging teams to achieve it. We

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From pit to port Helping our clients realize maximum value from their investments

Our extensive experience in the iron ore industry includes: mining, crushing, beneficiation (gravity and magnetic), flotation, fines agglomeration, pelletizing, and sintering; rail, port, materials handling and feed and product blending; process and logistics dynamic simulation; market studies, and process optimization. To learn more visit hatch.ca.

CONSULTING  PROJECT DELIVERY  TECHNOLOGIES  OPERATIONAL PERFORMANCE

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Expanding the horizon with the highest quality railway products. We supply new, relay and reconditioned track material for all of your track construction and maintenance needs.

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Is a proud partner of

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A r celo r M ittal M i n e s C a n a d a don’t think we’ve reached our potential yet.” Transforming tomorrow As a leading supplier of iron ore, ArcelorMittal is also committed to setting global standards for future generations. The company strives to provide the leadership, quality and sustainability that will transform tomorrow’s steel and mining industries for the better. ArcelorMittal’s focus on sustainability reaches far beyond just Canada and the company is firmly committed to minimizing its environmental repercussions. The company has developed a sustainable development policy aimed at maintaining its international leadership position and being a strong advocate of Towards Sustainable Mining (TSM), a Mining Association of Canada (MAC) initiative. In doing so, the company works to implement corporate Environmental Management System in line with ISO 14001; actively communicate and cooperate with governments, the public and communities of interest; and reduce greenhouse gas emissions. The company’s commitment to sustainable development derives from five fundamental principles: health and safety, profitability, improvement, commitment, and respect. It’s as simple as that.

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Company Information Industry

Mining

ArcelorMittal is the world’s leading steel and mining company. Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel products in all major markets including automotive, construction, household appliances and packaging. ArcelorMittal is present in more than 60 countries and has an industrial footprint in over 20 countries.

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ArcelorMittal Mining Can

Performance de niveau intern

Steve Wood d’ArcelorMittal Mines Canada G.P. discute du d’agrandissement de la société dans sa mine de Mont-Wrig majeurs, les améliorations continues et les projets futurs p Écrit par : Robert Spence

Produit par : Aaron Wells

nada G.P.

rnational

u florissant projet ight, y compris les investissements pour ĂŞtre les meilleurs

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A r celo r M ittal M i n e s C a n a d a

MW Mine avec sautage 116

September 2014

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La mine est reliée par une ligne de chemin de fer qui appartient à la société au complexe industriel de Port-Cartier. À environ 55 kilomètres de Mont-Wright, on trouve la mine de Fire Lake. En raison de la forte demande de minerai de fer, la mine est devenue un dépôt supplémentaire où ArcelorMittal exerce ses activités. En 2011, la société entreprise a entrepris l’un des plus grands projets d’agrandissement de Québec. Le projet, qui a été complété l’an dernier, a impliqué l’expansion des infrastructures à la mine de Mont-Wright afin d’augmenter la production de 16 à 24 millions de tonnes de minerai en fer avant la fin 2013. Agrandissement de l’avenir « Nous avons atteint le rythme ArcelorMittal Mines Canada G.P. annualisé de 24 millions en fin exploite actuellement deux grandes d’année dernière en novembre mines à ciel ouvert : le complexe de et les choses se présentent bien Mont-Wright et Fire Lake. pour atteindre 24 millions cette Le complexe minier de Montannée encore » a indiqué Steve Wright est une exploitation Wood, le président d’ArcelorMittal extrêmement systématique Mines Canada G.P. Il continue, « composée d’une mine à ciel ouvert, C’est assez phénoménal d’obtenir d’un concasseur à minerais et d’une ce rythme tout de suite après installation de concentration avec un projet d’expansion. Ce sont un système de chargement par train. des moments passionnants sur

es projets d’agrandissement dans le secteur minier ne sont pas une tâche facile. Parvenir à transformer de nouveaux objectifs en opérations exige de réussir la planification, l’intégration et l’exécution. Sous la houlette de Steve Wood, ArcelorMittal Mines Canada G.P. perfectionne actuellement ces compétences. Fondée en 1957, ArcelorMittal Mines Canada G.P. est la plus grande division minière de la multinationale ArcelorMittal. L’entreprise est devenue le fournisseur principal de minerai de fer et d’acier du Canada, produisant environ 60 pour cent de la production totale du pays.

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supplier profile

The Castech-Plessitech Group

Engineering Department

•

Ferrous castings up to 40 000 lbs in all types of alloys and irons

•

Machining of parts

•

Welding

•

Assemblies with lifting capacities of 100 tons

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Screw conveyors

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Finishing and painting

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Overload and wide load transportation

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Installation on site

Website: www.castechinc.com – www.plessitech.com

A r celo r M ittal M i n e s C a n a d a le plan de l’expansion et de la maximisation des retombées de nos investissements ». Une partie du dernier agrandissement a permis la mise en service de nouvelles lignes en spirale et d’une usine de concentration et a apporté des améliorations supplémentaires à la voie ferrée et au port de Port-Cartier. Wood estime qu’avec quelques améliorations mineures, ArcelorMittal peut atteindre un taux de production encore plus élevé. « Nous voyons se profiler le jour où avec quelques ajustements mineurs nous dépasserons la capacité nominale » indique Wood. Dans son ensemble, le projet d’expansion comprenait : • la mise en service de nouvelles lignes en spirale au concentrateur • de nouveaux camions et un atelier de réparation opérationnel • la réalisation de voies de garage

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ferroviaires supplémentaires • l’achèvement du nouveau concentrateur • la mise en service de nouveaux engins de mise et de reprise au tas et chargeurs de navire • la production de concentré a dépassé 2 Mt en décembre 2013 • des chargements de 1.987 Mt en décembre 2013 • des économies d’échelle La province de Québec profite également de l’expansion. Les impôts sur le revenu et les revenus des droits miniers représenteront plus de 3 milliards de dollars, qui profiteront au gouvernement jusqu’en 2039. Le Québec bénéficiera aussi d’une augmentation de sa capacité d’exportation d’articles à étrangers, de la consolidation du secteur minier en général et du développement de la communauté. La création d’emplois au Canada

“Notre travail ici est d’obtenir des niveaux des niveaux de performance de niveau international dans chaque aspect des activités en termes de productivité, entretien et fiabilité des équipements ” – Steve Wood, Président d’ArcelorMittal Mines Canada G.P. w w w. a r c e l o r m i t t a l . c o m

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1 866 444-9944 | hewitt.ca

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Hewitt Equipment Limited

19-08-2014 13:41

Hewitt, Service par Excellence +1 514-6303100 Visit our Website: www.hewitt.ca

A r celo r M ittal M i n e s C a n a d a

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constitue un autre des avantages de l’expansion. Plus de 8.000 emplois ont été créés pendant la construction du projet et 600 autres emplois permanents ont été mis en place depuis l’achèvement de l’expansion.

et plus de spirales », ajoute Wood. « Nous avons acheté aussi 13 camions Caterpillar 797 de 400 tonnes pour permettre de déplacer de plus grands volumes en moins de temps ». Les camions 400 tonnes sont Investissements équipés d’un escalier de 18 Pour débuter le projet, ArcelorMittal marches pour atteindre la cabine du a investi de manière significative aux conducteur et chaque camion est environs de 1,6 milliard de dollars, utilisé pour transporter du minerai y compris un éventail de nouveaux en fer brut vers un concasseur où il équipements et technologies pour subira sa première transformation. développer le taux de production et Selon Wood, une partie de augmenter l’efficacité. l’expansion a également consisté « Nous avons acheté de à investir dans sa ligne ferroviaire nouveaux équipements ; engagé pour rationaliser la production. des personnels supplémentaires Les chemins de fer de la société ; augmenté notre capacité de transportent le concentré de minerai traitement ; ajouté une autre grande en fer de Mont-Wright à Port-Cartier ligne, augmenté notre capacité de et sont connus dans le secteur concentré de 50 pour cent et installé ferroviaire nord-américain pour leur de nouvelles usines de traitement fiabilité et leur sens de l’innovation.

“C’est assez phénoménal d’obtenir ce rythme tout de suite après un projet d’expansion. Ce sont des moments passionnants sur le plan de l’expansion et de la maximisation des retombées de nos investissements ” – Steve Wood, Président d’ArcelorMittal Mines Canada G.P. w w w. a r c e l o r m i t t a l . c o m

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Revegetation through innovation.

â&#x20AC;&#x153;Felix qui potuit rerum cognoscere causasâ&#x20AC;? 418.409.0190 | revegetation@irrigationnorco.com | www.irrigationnorco.com

A r celo r M ittal M i n e s C a n a d a

supplier profile

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Irrigation Norco

Website: http://www.irrigationnorco.com

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ISO 9001: 2008 SOUCY INDUSTRIEL

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A r celo r M ittal M i n e s C a n a d a « Nous avons en outre voulu amplifier la capacité de notre ligne ferroviaire, aussi avons-nous acheté plus de locomotives et de wagons, étendu certaines voies de garage qui nous permettent de plus transporter vers le port, augmenté notre capacité de chargement des navires en installant un nouveau chargeur de navires et empileur ainsi qu’un convoyeur modifié. L’avenir portera sur les durées des cycles et la fiabilité » précise Wood. « Nous voulons reproduire ce que nous avons fait dans le passé. Nous avons certaines des personnes les plus intelligentes du secteur ».

supplier profile

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En plus d’acquérir les meilleurs équipements possibles, des investissements technologiques ont également été réalisés. « Nous avons installé la meilleure technologie disponible sur le plan de la planification, de la répartition des équipements aux mines et du suivi des progrès sur une base quotidienne, horaire et en temps réel », ajoute Wood. « Nous sommes en train de perfectionner le processus. Nous savons ce que nous pouvons être dans l’avenir et travaillons à le devenir ». Amélioration continue

Soucy

Website: www.adelardsoucy.com

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Your business partner on the Terminal Operations

Stevedoring

Railcar Transloading

Heavy equipment Services

Porlier Express oďŹ&#x20AC;ers direct and intermodal integrated solutions since 1953. www.porlier.com

A r celo r M ittal M i n e s C a n a d a Selon Wood, ArcelorMittal cherche constamment à améliorer toutes les phases des opérations. « Notre travail ici est d’obtenir des niveaux de performance de classe internationale dans chaque aspect des activités, en termes de productivité, entretien et fiabilité des équipements ». Après l’achèvement de l’expansion, les rapports quotidiens montrent le potentiel du système pour une plus ample croissance : • Premièrement en maintenant le niveau de 24 Mt et en faisant la chasse aux « goulots d’étranglement » pour maximiser le potentiel du système • Investissements progressifs en tant que de besoin pour désengorger : • Optimisation de la mine de Mt Wright,

supplier profile

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Port Remorqueurs

Porlier Express

With Porlier Express, you can be assured of peace of mind ! www.porlier.com (418) 962-3073

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CHICOUTIMI

1739 RUE GRANDE CHICOUTIMI, QUEBEC G7K 1H8 TEL: 418-545-6189 FAX: 418-545-7173

SEPT-ÎLES

180, RUE NAPOLEON SEPT-ÎLES, QUEBEC G4R 3M5 TEL: 418-968-3006 FAX: 418-968-4009

www.kilotech.net

A r celo r M ittal M i n e s C a n a d a expansion de Fire Lake (minerai plus riche) et désengorgement du concasseur • Récupération de la capacité ferroviaire en hiver, capacité de trains longs, voies de garage supplémentaires • Capacité supplémentaire de convoyeur au port • Importantes économies d’échelle pour les coûts • Potentiel d’augmentation au-delà de 30 Mt à basse intensité en capital La société estime qu’au fil du temps, avec diverses améliorations, l’expansion a le potentiel pour produire 100 millions de tonnes par an. Wood commente, « Nous croyons qu’il y a une possibilité de faire encore mieux. En appliquant quelques techniques de direction de

supplier profile

canada

Produits Boulettes

Kilotech

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Crushing and Screening Heavy Civil Construction

ÉQUIPEMENTS

Lalancette operating since 1970

Tailings Operation Machinery Rental Transportation

PROSYGMA.CA Phone: 450 442-5100 | Toll-free: 1 800 736-6160 370, Chambly Rd, # 300 Longueuil (Qc) J4H 3Z6

CONSULTING SERVICES | TRAINING | RELIABILITY AND MAINTENANCE EXPERTISE

WE HAVE THE TOP CALIBRE PROFESSIONALS THAT YOU NEED!

Our highly qualified and experienced professionals are at your service for all of your reliability and maintenance needs.

Proud partner of ArcelorMittal

STAY CONNECTED

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classe mondiale, en entraînant et améliorant la productivité, nous pensons que nous pouvons atteindre un plus haut taux, potentiellement 27-28 millions de tonnes et par la suite encore plus ». Il ajoute « En avançant, nous continuons à résoudre les problèmes et devenons donc plus fiables et plus cohérents dans notre production ». ArcelorMittal Mines Canada G.P. s’efforce continuellement de viser l’excellence et accomplit ceci en employant des initiatives non seulement pour atteindre ses objectifs, mais pour les dépasser. À l’aide de ses employés et d’une formation approfondie, l’entreprise conduit un nombre d’équipes dans des processus d’excellence opérationnelle. Selon Wood, « cela aide à impliquer les employés. Ce sont eux qui ont les

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A r celo r M ittal M i n e s C a n a d a idées et savent comment les choses doivent fonctionner. Nous voulons suivre leurs suggestions et les exécuter. Nous ferons du recyclage, de la réorganisation du travail et des méthodes de travail, de façon que notre productivité soit la meilleure de

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sa classe et que tout fonctionne de manière fiable ». Bien que la société ne puisse pas contrôler certaines choses, comme la teneur de minerai, elle fournit toujours le meilleur des services pour tout ce qu’elle peut contrôler.

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A r celo r M ittal M i n e s C a n a d a « Nous évaluons notre performance en termes de disponibilité d’équipement, utilisation, productivité de la maind’œuvre et meilleures pratiques, » dit Wood. « Nous ne pouvons pas changer le corps de minerai mais nous planifions d’être de niveau international pour tout de que nous pouvons contrôler ». La société s’est fixé des objectifs ambitieux, y compris son objectif

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zéro-trente-trente. Wood explique que cet objectif « implique zéro blessure, 30 millions de tonnes par an et 30 dollars la tonne. C’est une aspiration vers laquelle nous travaillons tous les jours. C’est ce que nos équipes d’excellence opérationnelle font -– identifier le potentiel et impliquer les équipes pour y parvenir. Nous ne pensons pas avoir déjà atteint notre potentiel ».

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From pit to port Helping our clients realize maximum value from their investments

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Expanding the horizon with the highest quality railway products. We supply new, relay and reconditioned track material for all of your track construction and maintenance needs.

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A r celo r M ittal M i n e s C a n a d a Transformer demain En sa qualité de fournisseur principal de minerai en fer, ArcelorMittal s’engage également à établir des normes mondiales pour les générations futures. La société s’efforce de fournir le leadership, la qualité et la durabilité qui transformeront les secteurs de l’acier et minier de demain vers le mieux. La concentration d’ArcelorMittal sur la durabilité va loin au-delà du seul Canada et la société s’est fermement engagée à minimiser ses répercussions écologiques. La société a développé une politique de développement durable visant à maintenir sa position de leader international et à être un ardent défenseur de Towards Sustainable Mining (TSM), une initiative de l’Association minière du Canada (Mining Association of Canada - MAC). Ce faisant, la société travaille à la mise en œuvre d’un système de gestion de l’environnement de l’entreprise en conformité avec la norme ISO 14001, à communiquer et coopérer activement avec les gouvernements, le public et les communautés d’intérêt et à réduire les émissions de gaz à effet de serre. L’engagement de la société au développement durable dérive de cinq principes fondamentaux : la santé et la sécurité, la rentabilité, l’amélioration, l’engagement et le respect. C’est aussi simple que cela.

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Company Information Industry

Mining

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Gothic Landscape Erasing the mining footprint With over 30 years in the landscape business, Gothic Landscape is taking the mining industry by storm through its family-oriented culture and dedicated division of environmental restoration Written by: Robert Spence

Produced by: Bobby Meehan

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Gothic Landscape

ine reclamation is one of the most critical elements of mining. Done right, it can provide a wealth of opportunities for the environment and surrounding communities. For more than 30 years, Gothic Landscape has built a solid reputation for creating some of the most beautiful restoration landscape 146

December 2014

projects in the mining industry. The company, which specializes in erasing the mining footprint through its environmental restoration division, and in desert salvage and restoration, has been a focal part of helping companies performs mine reclamation projects around the United States. Through its eco-friendly initiatives,

MINING

key partnerships in the industry, and family-oriented culture, Gothic Landscaping is taking the mining industry by storm. It’s all about family Since the company’s inception in 1984, Gothic Landscape has remained a family-owned and operated company based in Los

Angeles, California. Founded by Judy and Louis Georgio, the company’s name derives from Gothic Avenue in the San Fernando Valley where the Georgio family lived when the company was first got its start. Today, the company operates in four US states (California, Arizona, Nevada and Utah) and has become w w w. g o t h i c l a n d s c a p e . c o m

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Gothic Landscape one of the leading landscape contracting firms in the mining industry. Gothic provides a range of landscape services including commercial design, production/infrastructure, custom and model homes, public works, erosion control and mining restoration. The company, which is still run by the Georgio family with sons Jon (President/CEO) and Ron (President – Gothic grounds Management), is continuing its legacy of being a family-oriented business. Gothic has extended its family culture to include thousands of dedicated landscape professionals who are committed to quality, safety and respect for the environment.

With five acres of decorative landscaping rock and over 40 different materials to choose from, no job is too big or too small for Angel Rock & Sand! 13158 Palmdale Road Victorville, CA 92392 Ofﬁce: 760-245-7788 Fax: 760-952-2131 Hours: M-Sa 7-4 Su 9-2

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Clairemont Equipment is the most diversified equipment rental and sales company for all of your construction, maintenance and industrial needs. We strive to provide competitive pricing and excellent customer service. Corporate 858.278.8351

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Green initiatives Gothicâ&#x20AC;&#x2122;s commitment to going green is irrefutable. The company is dedicated to reducing its carbon footprint by conducting business in the most environmentally responsible method. Gothicâ&#x20AC;&#x2122;s testament to sustainable initiatives includes restoring, preserving and improving the environment through a range of landscape construction service. Gothic has been a prominent figure in the mining industry. The company has made key partnerships with companies in the sector, helping to perform a range of landscape activities including mine reclamation, pollution prevention plans and water conservation initiatives. Slowly but surely, Gothic Landscape have been implementing a range of environmental-friendly initiatives in place to curb its carbon footprint. In 2011, the company commenced plans to convert its management vehicles to fuel-efficient cars. The strategy, which aims to drastically lower fuel consumption, is expected to be integrated company-wide by the end of 2014. The company is also introducing a fleet of propane mowers to its arsenal in a bid to gradually replace the gaspowered mowers that dominate the industry. Gothic has also begun taking steps towards its water conservation initiatives, which are designed to reduce water dependence. The companyâ&#x20AC;&#x2122;s Gothic Grounds Management division has changed its method to irrigation management. The renewed approach includes: customized w w w. g o t h i c l a n d s c a p e . c o m

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Gothic Landscape

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reporting with forecasted schedules, water usage by station and monthly reports; comprehensive water audits; and implementing certified irrigation technicians with knowledge and expertise in all irrigation control systems. The company’s key division in the mining sector is its environmental restoration line. It’s become their specialty, helping the industry replicate surrounding native landscapes through strategic planting and soil grading. The company’s ability to create a healthy ecological balance for mine site reclamation has put Gothic Landscape on the map as the go-to landscaping contractor for the mining industry.

Company Information Industry

Mining headquarters

Valencia, CA founded

1984 employees

5000

Keeping lasting relationships As a member of the Nevada Mining Association, Gothic Landscape works in partnerships with some of the largest mining company in the United States. The company also partners with industry leaders to offer the newest, state-of-the-art irrigation technology available. Gothic’s vision remains much the same as it was in 1984. The company wants to create lasting partnerships with clients by ensuring mutual success through outstanding personalized service and problem solving. As it did when the company first began, Gothic’s passion, focus and commitment remains stronger than ever.

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Apex Logistics LLC

Apex Logistics: Moving the Mining Industry With a renewed outlook on company culture and technology, Apex Logistics is working to become the premier shipping carrier for mining companies Written by: Laura Close Produced by: James Hayes

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A pe x L o g i s tic s L L C

pex Logistics is the largest and most diverse bulk transportation company in the Western United States. But the company is more than just a trucking service. Apex prides itself on providing clients with a tailored freight forwarding plan that’s right for their needs. The company blends 154

December 2014

logistics consultation with unique shipping services to provide superior quality transportation. “Our specialty is in transportation and management of bulk commodities,” says Denny Wyatt, Managing Director of Apex Logistics. “But our specialized services include management inventory, ordering and installing

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Internet-based silo measuring devices to control inventory. If we’re transporting your inventory, we know exactly where it’s at.” Upgrading company culture Apex realizes the age of the truck driver is getting older. The company, which says the average American truck driver is 45, has initiated a new effort in attracting younger applicants. “After speaking with applicants and absorbing

“Safety performance is a critical part of our company culture.” – says Wyatt

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a lot of the information that comes out of the trade magazines, we discovered the next generation of drivers wants to be paid on performance,” says Wyatt. “We made the transition 90 days and it’s been absolutely unbelievable. We went from having 10-12 applicants a month to over 50 a month. Our turnover rate, after training, has dropped from 50 percent to 20 percent.” By far the most important aspect of the company’s culture is safety. It’s engrained in everything they do, and everything they strive to do. “Safety is huge for us and it’s a major part of our training program,” says Wyatt. “All of our employees go through a full week of classroom training that covers everything from what we require to what the federal laws require.” The safety and training programs also serves as a way of indoctrinating employees into Apex’s company culture. “Safety performance is a critical part of our company culture,” says Wyatt. “Our division managers and driver managers meet with drivers every single quarter to sit down with them oneon-one to discuss their driving performance as well as discuss any safety concerns they may have. It’s been a key function in teaching our employees how important safety is to us.” In the January edition of Mining Global, we’ll continue our discussion with Denny Wyatt and examine how the company’s revitalized approach to technology is benefiting Apex Logistic tremendously.

Company Information Industry

Logistics and Supply Chain h ea d q u a r te r s

Adelanto, California founded

1967 employee s

410

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DRA Ta

DRA Makes Strategic Acqu to Expanded Skill Set Wi

DRA is a south African-based engineering group that spe industry. Earlier this year the company acquired Taggart with high expectations and a po Written by: Lindsey Ryan

aggart

uisition and Looks Forward ithin the Mining Industry

ecializes in project management for clients in the mining t Global and the consolidated team leaves DRA excited ositive outlook for the future.

roduced by: Bobby Meehan 159

stablished in 1984, DRA Group Holdings Proprietary Limited (DRA) began as an electrical and control company. Over the past 30 years the company has narrowed its focus on its strong engineering capabilities and has since become a leader in the African mining industry for its project management and mine

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design. The company is now known as a multi-national, multi-disciplinary organization with the experience and expertise to offer an entire spectrum of mining services to customers. The organization is one of the largest project management enterprises in Africa and this South African founded group of companies is composed of w w w. d r a i n t e r n a t i o n a l . c o m

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Air Pollution Control Solutions. IWI Incorporated has over 44 years experience providing solutions for air pollution control systems. Our friendly customer service department delivers superior engineered system solutions, an extensive line of high quality products, professional project management, and 24/7 on-call emergency services. Visit us at www.iwiinc.com to find out how we can be your air pollution control solution today.

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DR A Ta g g a r t

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professional engineers who manage, design and construct mines for clients in various mining areas around the world. DRA Group prides itself on its commitment to safety and operates under ISO standards. On July 31, 2014, DRA Group agreed to acquire Taggart Global, a worldwide leader in engineering, construction and operation services. This strategic acquisition will be very beneficial to DRA Group because Taggart already specializes in many of the same fields as DRA Group. Taggart supplies similar engineering, construction and project management services to clients in the mining industry and has office locations around the world as well, thus expanding DRA Groupâ&#x20AC;&#x2122;s global footprint. Moving forward, all DRA Group business that

supplier profile

IWI Incorporated

IWI Incorporated, Since 1972 has been providing solutions for a wide variety of industries. We have a extensive line of products, including Dust Collectors, Overhead Cranes, Hoists, Conveyors, and Control Panels. We provide complex engineered solutions for air purification and material handling. We work with Private and Public Companies, Universities, and the Government. Our projects have an installation base throughout the world. Website: www.iwiinc.com

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takes place in the Americas will be consolidated with Taggart and the company will be conducting business known as â&#x20AC;&#x153;DRA Taggartâ&#x20AC;?. Taggart Global was founded in 1993 and has built strong client relationships with companies in the mining industry, specifically involving coal. In July 2013, Taggart Global was purchased by Forge Group, however the company went bankrupt only six months into the acquisition. Over the period of time between the end of the partnership with Forge and being acquired by DRA Group, Taggart Global did remain operational and now that they are DRA Taggart, they have the opportunity to begin investing more money into their operations. DRA Group is excited to be combined with Taggart and looks forward to the new areas in

supplier profile

Alpha Control

Alpha Control Fabrication & Manufacturing has built a reputation as a premier provider of custom steel fabrications. For serious projects and critical applications, our customers have come to rely upon our quality workmanship. Alpha Control has assembled two shops and a staff with over 100 years of combined steel fabrication to provide unlimited capabilities. Alpha Control Fabrication & Manufacturing serve the needs of nearly every industrial market segment, with exceptional knowledge of our clients requirements. Website: www.alphacontrolfab.com

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New Solutions to Old Problems

Continuous filters and processes for industrial liquid-solid separation Peterson Filters Corporation designs and manufactures high quality industrial vacuum filtration equipment for the mining and process industries, including innovative custom accessories that enhance their operation.

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the industry that the acquisition will take them. For example, Taggart has experience and presence in the coal industry which DRA Group is eager to become involved in. â&#x20AC;&#x153;Taggart has an excellent reputation in the global coal preparation and clean coal technology markets, and has expanded its skill set into the power sector, ports and terminals, bio fuels, mineral sands, as well as the mining and aggregate industries. We are excited to partner with Taggart and accelerate their growth in the worldwide coal preparation and material handling markets,â&#x20AC;? said Paul Thomson, CEO of DRA Group. Overall, DRA Group is looking forward to the new opportunities that will be presented as the businesses work together and combine markets. In the announcement of the acquisition, Richard L. McCormick, Jr., Chief Executive Officer of DRA Taggart, states, â&#x20AC;&#x153;Our integration into the DRA Group provides us with a global platform from which we will both continue to serve our existing client base, and also actively pursue opportunities to build and operate coal, metals and mineral processing and materials handling facilities for w w w. d r a i n t e r n a t i o n a l . c o m

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DR A Ta g g a r t

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Company Information Industry

Mining h ea d q u a r te r s

Pennsylvania founded

1984 employee s

350

mining companies and utilities worldwide.” He continues, “We are thrilled to be a part of DRA as we together pursue new opportunities in the mineral processing and power generation marketplace.” An additional benefit from the acquisition is that almost all of the Taggart employees will remain on board, as the management team within Taggart will not be changing, only the ownership of the company, and the Taggart management group will also share an equity stake in the new union of businesses.

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Liebherr-Australia:

Liebherr-Australia: Technology Driving Efficiency in Manufactu

The companyâ&#x20AC;&#x2122;s high quality, 100 percent Liebherr-mad company culture. Written by: Laura Close Produced by: James Hayes

y and Innovation uring for Mining

de products exemplify Liebherrâ&#x20AC;&#x2122;s

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L ie b h e r r - A u s t r alia

Mining is a major part of LiebherrAustraliaâ&#x20AC;&#x2122;s business plan, although the company has several other divisions successfully operating in the country. Since the onset of the mining boom, Liebherr has been extremely successful with earth moving, mining and crane sales, leading to an expansion of their facilities, including a recently completed, dedicated remanufacturing location in Adelaide. Liebherr-Australia, part of the global, family-owned company Liebherr Group, began its tenure in Australia in the 1970s with the 172

December 2014

dealership network. In 1981, the Australian affiliate of the company was officially incorporated, and the commencement of their own operations under the Liebherr name. Liebherr-Australia Head Office moved to the current location in Adelaide in the 90s. Remanufacturing c allows Liebherr to repair of all of their own components, which offers the customer a quality end product at a reduced cost. Liebherr promotes a vertical integration model which allows l control of our cost and component life, in turn

aus t r al i a

reducing costs for the end-user. “Our key customers that Liebherr-Australia predominately work with are tier-one mining houses which largely deal in iron ore and coal said David Pichanick, the general manager of sales and marketing at Liebherr-Australia. “The company has been very successful with the likes of BHP, Glencore, Fortescue Metals Group, Leighton Group, and Downer to name a few. We’ve put such a big installed population of machinery out in those two commodities of late, and that machinery is working

even harder now, despite the price of both coal and iron ore dropping. Both our parts and support business will continue to grow” New Facilities Liebherr-Australia recently invested over $170 million to complete new support facilities in Sydney and Newman Western Australia. Existing properties in Mackay, Mt. Thorley, and Perth were expanded to accommodate the company’s goal of continuing to meet our customer needs. The crowning jewel of the w w w. l i e b h e r r. c o m . a u /

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Always at the Cutting Edge Focusing on Customer Service & Satisfaction

SPECIALISING IN: Eight Cad Cam Profile Machines, Multi-Head Oxy Cutting, Laser Cutting, High Definition Plasma Cutting, Surface Grinding, Plate Rolling, Bending, Drilling and Machining Services Available, Plate Sales, Aluminium and Stainless, Waterjet Cutting.

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ADELAIDE PROFILE SERVICES APS ALUMINIUM & STAINLESS

T +61 8 8384 6449 F +61 8 8326 1756 E sales@adelaideprofile.com.au www.adelaideprofile.com.au

L ie b h e r r - A u s t r alia company’s expansion efforts is the remanufacturing facility in Adelaide. Construction started in January of 2013 and was completed in August of this year to a cost of around $80 million. The facility will be hiring around 138 new employees over the next year and a half out of the South Australian job market. “The rebuild centre focusses on all of our major components for our mining operations in Australia and New Zealand,” said Pichanick. “All of the spare parts and components from the machinery will be sent back to Adelaide for remanufacture and then go back into the distribution outlets around Australia. Our business had a very decentralised model previously; however we are now consolidating everything under the one roof. The disassembly area includes a wash-bay, shot-blast, disassembly work-cells, quality control station and machining. There are over 2,000 locations for pallets in the SEU warehouse, as well as cylinder and rod storage, a place for REMAN planning and a production office. The assembly area includes a paint booth, another quality check station, 12 wall-travelling cranes and

aus t r al i a

four overhead gantry cranes. 100 Percent Liebherr Vertical integration is one of Liebherr Group’s strategies. As the Liebherr family built the brand and the business, they have consistently found ways to develop the company’s own technology in house; the machinery the company offers is much more efficient and cost-saving for the end-user because of this business strategy. “The most important thing for us is controlling the quality and reducing the cost where we can,” shared Pichanick. “We can do this because of our vertical integration model. We want to be able to provide our customers with the lowest cost per tonne on the market through the product lifecycle You’ve got to have a good quality machine that’s reliable, but to maintain our reputation it has to be the most cost-effective machine on the market. Liebherr-Australia has built that reputation.” A way the company successfully reduces costs is through their innovation process. When a prototype is made, it’s already been w w w. l i e b h e r r. c o m . a u /

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L ie b h e r r - A u s t r alia well designed and engineered that it goes to work right away. With research and development undertaken in house, and a high regard for innovation, LiebherrAustralia are able to produce the right machinery the first time around, instead of needing several prototype models. This success is only possible with direct customer feedback and input through the research and development process phase. Partnership with Detroit Diesel Although the goal of Liebherr is to

design and produce 100 percent company-made products, they still work with outside suppliers on some components. Detroit Diesel is a major supplier for engines, and supplies the engine for the previous generation of the company’s electric powered mining truck; the largest in the world. “This specific truck is very dependent on the engine,” commented Pichanick. “The reliability and the innovation that Detroit Diesel supports us with is incredible. They make a very good product, and are on the same

“The location will be a total rebuild centre for all of our major components for our mining operations in Australia and New Zealand,” said Pichanick. “All of the spare parts and components from the machinery will be sent back to Adelaide for remanufacture and then go back into the distribution outlets around Australia. We used to use various subcontractors to take care of this process, but now we will be able to do everything in house.” 176

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aus t r al i a

precise, safe, and energy efficient: drive and control technology from Bosch Rexroth moves machines and systems of any size. The company bundles global application Evolution of Product Life experience in the market segments After fourteen years in production of mobile applications, machinery and over 350 units globally, Liebherr applications and engineering, ensures its T 282 Series Haul truck factory automation, and renewable continues to provide business energies to develop innovative partners the latest in technology, components as well as tailored through strategic investment in system solutions and services. product evolution. The highly Offerings such as Bosch Rexroth’s efficient IGBT Drive System and hydraulics, electric drives and its class-leading payload to weight controls, gear technology, and linear ratio ensure maximum productivity motion and assembly technology all and performance. from one source have proven to help In May 2014, Liebherr proudly Liebherr achieve a more efficient launched the next exciting evolution and effective product evolution. for the T 282 Series Haul Truck: the T 282 C Extended Life Profile, which A Passion To Work is the result of an extensive Liebherr “The most important thing in any international collaboration project, business is you have to value your focussed on enhancing and increasing people. A lot of companies forget the T 282 C product life cycle. This they are successful only by the delivers increased economic machine great people they have. You have to life, resulting in substantial reductions give them a career and an exciting in total cost of ownership for Liebherr and enjoyable place to work. business partners. Liebherr-Australia does that.” Liebherr credits Bosch Rexroth Pichanick was very passionate with helping them along their when talking about how the evolutionary journey. Economical, company treats its employees. wavelength as Leibherr-Australia when it comes to making sure we are delivering what we need to for our customers.”

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L ie b h e r r - A u s t r alia Liebherr-Australia has many employees that have length of service dating 10 to 20 years at the company, and one man who just celebrated his 50 years of service with the company this year! “You know what sets Liebherr apart? We have a culture where everyone is driven by the customer’s needs and passion for the long term outcome. It’s all about our Core Values! “Our employees just want to be people that serve their customers” said Pichanick. They want to do a good job and are very proud of what they do. We all build trust in, and we respect each other for who we are and what we can bring to

aus t r al i a

the company. If everyone’s committed 100 percent every day to giving the customer what is promised, and people enjoy what they’re doing, we consider it a success.” The Liebherr Way Like any successfully run company, Liebherr is in the business of meeting the high expectations of their customers. The company is not only selling a product, but the support and maintenance of the product for its lifespan. To keep their customers coming back, Liebherr provides not only exceptional service but also high-quality

“We want to not only in supply Australia, but the rest of the mining world with our product. Australia is the benchmark for the rest of the world of mining, so if we get it right here we can get it right for the rest of the world. There are a lot of Australian mining companies that are mining and other parts of the world. That’s why we put so much energy into doing so well in Australia.”

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customer support and interaction. The company provides almost complete visibility into the design process for the customer, allowing them to provide feedback throughout the process. “We listen to the customer and develop a product they really want,” said Pichanick. “There’s so much passion in the business, and that’s a big part of the reason we’ve become so successful and enjoy what we do. Everyone that works at the company is proud and really wants 180

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to become part of that journey to become successful. The customers really enjoy it as well; they get great visibility into our business. They see the simplicity: if there’s a problem, it gets fixed very quickly. That’s just the way the business works.” Liebherr-Australia doesn’t offer the whole range of products their competitors have. Although they manufacture for the niche market of digging and hauling dirt, it’s one of the most important parts of the mining process. Their goal

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throughout is to offer the most cost efficient and effective model that produces throughout its entire lifespan. By developing their products alongside their customers, they produce the product that the customers need and want, not a product the customer must adapt to. As for growth, the Liebherr organisation thinks long-term for the strategic plans. “The third generation of the Liebherr family is now coming through the business,” said Pichanick. “. We must continue to build our reputation in order to grow and continue our success. If the family continues to invest the way they do, we will always be one step ahead of the pack. All of the company’s research and development is self-funded. For an innovative, technological efficient company like us, this strategic plan will carry us far.”

Company Information Industry

Mining h ea d q u a r te r s

Para Hills West, South Australia founded

1981 employee s

600 revenue

$600 - $700 Million

For the Future Liebherr’s goal is to be the best leading supplier and to support business for mining equipment. This goal isn’t just for Australia, either. “We want to not only to continue to supply the Australian market, but grow our product and position from a global perspective Australia is somewhat of a benchmark for the rest of the world in mining, so if we get it right here we can get it right for the rest of the world. As there are a lot of Australian mining companies that are mining and other parts of the world. That’s why we put so much energy into doing so well in Australia.”

p r o d u ct s / s e r v ice s Since its inception in Australia in 1981, Liebherr-Australia has expanded rapidly, with offices throughout Australia and New Zealand. The company sells and supports a range of in-house designed, produced and maintained products include crawler cranes, mobile cranes, deep foundation machines, earthmoving equipment and mining equipment.

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Minerals Council Asso

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he NSW Minerals Council is the leading industry association representing the stateâ&#x20AC;&#x2122;s minerals industry, providing a united voice for our members. Mining has and will continue to be a key economic driver for 184

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the state. Thatâ&#x20AC;&#x2122;s why the NSW Minerals Council works closely with government, industry groups and business and community leaders to foster a sustainable mining industry in NSW. The NSW Minerals Council supports the development of a

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strong and diverse state economy and an effective regulatory framework in which the industry can operate profitably and make a meaningful contribution to the state and the people of NSW. Every year the NSW Minerals Council surveys its members to

determine the economic benefits of mining to NSW. The results for 201314 will be released in November. In 2012-13 the survey found that 26 NSW Minerals Council member companies directly spent around $12.8 billion on wages, goods, services and community contributions in NSW. w w w. n s w m i n i n g . c o m . a u

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This direct spending included $3.1 billion spent on the wages and salaries of over 23,000 mining workers, and over $9.7 billion in spending on goods and services with over 10,500 local businesses across the state. When broken down by ABS region, the survey found that 186

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direct and indirect mining industry spending contributed around 36 per cent of the Gross Regional Product (GRP) of the Hunter, 19 per cent of the GRP in the Central West, 30 per cent of the GRP of the Far West of NSW, 17 per cent of the GRP in the Illawarra and 4 per cent of the GRP in Northern NSW.

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Mining is an integral part of the economic and social fabric of NSW, particularly rural NSW. Mining has been part of our state for more than 200 years, providing jobs, independence and wealth. No state has played a more prominent role in the history of Australian mining than NSW. Coal mining in Australia began near Nobbys Head in Newcastle in the 1790s, with the first coal shipment leaving Newcastle in 1799. “It’s true, NSW mining has had a tough 18 months, with a fall in commodity prices, a stubbornly high Australian dollar and uncertainty with regard the NSW planning approvals regime. However, mining does have a bright future in our state and will continue to deliver jobs and economic stability to regional communities across the state,” NSW Minerals Council CEO Stephen Galilee said. “Our state has some of the best quality coal and minerals in the world. We have an experienced and highly accomplished mining workforce, and the world’s largest coal export port. So while mining in NSW is experiencing short-term challenges, the long term prospects are good, provided we can continue to meet the future demand,” Mr Galilee said. In 2013 and 2014 the NSW Minerals Council partnered with the Newcastle Knights. Stay current with all our latest news: http://www.nswmining.com.au/menu/media/ news/2014

Company Information Industry

Mining h ea d q u a r te r s

Sydney Australia founded

1982 K ey P eople

Mr Stephen Galilee, CEO & Mr David Moult, Chairman p r o d u ct s / s e r v ice s

The NSW Minerals Council is the leading industry association representing the state’s minerals industry, providing a united voice for our members.

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Citic Heavy Industrie

CITIC HIC Continues to Dominate as a Heavy Machinery Manufacturer

CITIC HIC is a market leader in China with equipmen successfully in China and around the world (includin America, Africa and Australia). Written by: Andrew Rossillo Produced by: James Hayes

es:

a Mining and

nt operating ng Asia, Europe,

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C itic Hea v y I n d u s t r ie s

Large automatic welding machine

itic Hic Began its stellar track record of success back in 1958. After more than 50 years of evolution and development it has become a significant global supplier of mining, cement and metallurgical equipment. Their manufacturing facilities are located in Luoyang, China, and Pontevedra, Spain. CITIC HIC has offices in Australia, Brazil, Canada, Chile, India, South Africa and Spain. CITIC HIC is the second-largest manufacturing facility in China. As part of this, the company is especially proud of its 18,500t forging press, which is the 190

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world’s largest, capable of handling a 400 tonne single piece forging. In addition, their large casting workshop can pour one of the world’s largest single steel castings. “We have a melting capacity which is virtually unheard of in the western world, equaling 900 tonnes of molten metal that we can pour,” says Citic HIC CEO Rajiv Kalra. These robust and comprehensive facilities help enable the HIC to produce over 200,000 tons of quality equipment annually. “We design equipment according to both standard designs and made-toorder designs,” says Kalra. “The made-

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Sino AG Mill

to-order designs usually include large grinding equipment for applications in the mining industry, mainly copper, gold and other base metals.” CITIC HIC also produces premium grinding mills, scrubbers, crushers, kilns, coolers, hoists, reducers, steam turbines and compressors. CITIC HIC also manufactures heavy castings and forgings, as well as electric/hydraulic control and lubrication systems. Their factory in Luoyang covers more than 3 million square meters, of which 2 million square meters is under cover. It has a total workforce of approximately 10,000 employees, of which more

than 1,200 are engineers. Major Mining Equipment “The largest of the grinding equipment that we have supplied so far are 12.2 metres in diametre and 11 metres long,” says Kalra. “Each of these has 28 megawatt drives (28,000 kilowatts). There are six of these being supplied in Australia, two of these lines are in operation right now, and the other four are set for operation by the end of this year. CITIC HIC has the capability to design and manufacture Grinding mills up to 13.7 m (45 ft) diameter with 35 MW gearless drives and 12.8 w w w. c i t i c - h i c . c o m

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C itic Hea v y I n d u s t r ie s m (42 ft) diameter with dual 12 MW drive geared mills.â&#x20AC;? Mining Industry Jaw Crushers

â&#x20AC;&#x153;As far as the standard equipment is concerned, we also produce giant jaw crushers. These are used after the mining companies complete their blasting. They bring their blast material to giant dumpers, and the dumpers feed directly into our giant crushers. On average, the blast material is approximately 1 to 1.5 metres in size. Our giant crushers process the materials down to approximately eight inches in size,â&#x20AC;? explains Kalra. The company also produces the highly impressive CITIC-HIC AJ (Auto Jaw) Range of single toggle jaw crushers. These incorporate the use of a hybrid cylinder (patent 192

December 2014

pending) toggle system. The new design of toggle system has made the operation and maintenance of the jaw crusher simpler and safer than other jaw crushers currently available in the market. The traditional tension rod system has been eliminated and replaced by a hybrid cylinder- the toggle arrangement not only allows for the equipment to be easily adjusted. This design also provides tramp relief for the equipment which adds another level of protection to the machine and minimises potential damage to the crusher when tramp material enters the crushing chamber. An added advantage of this system, the crusher is able to be adjusted while the machine is running reducing which improves the availability and productivity of the crusher. The toggle system has also been designed with maintenance in mind, the toggle system pivots outward to create easy access to the toggle area for maintenance purposes. Largest Design and Manufacturing

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Sino Grinding Mills Lines

Kalra points out a unique element to the Company’s approach, highlighting that they are “likely the largest company in the world in our specific industry who does the design and the manufacturing.” CITIC STIRRED MILL (CSM)

features to handle wide range of regrind and fine grinding applications. Three units of CSM1200 are currently under manufacture for project in South America, there units will replace the existing conventional regrind mills in copper mine.

CITIC STIRRED MILL (CSM) 3D MODEL CITIC has developed a range of vertical stirred mill with advanced

About Sino Iron Project The massive Sino Iron project is being developed at Cape Preston, 100 kilometres southwest of Karratha in Western Australia’s Pilbara region. It is the largest magnetite mining and processing operation in Australia. The Sino Iron project is focused on delivering a world class magnetite iron ore development which will add value to the Western Australian economy through w w w. c i t i c - h i c . c o m

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C itic Hea v y I n d u s t r ie s significant downstream processing, employment, community benefits and international technology transfer while balancing social and environmental considerations. Once operating, the project will mine about 140 million metric tons

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each year and the processing plant will handle approximately 80 million tons of material. This material goes through in-pit crushers before being transported to the concentrator. The crushed ore then enters giant grinding mills, the most powerful in

supplier profile Business Friend Businessfriend is the place where social networking leads to productivity. The site connects employees with one another, wherever they may be, and empowers your team(s) with the necessary tools to collaborate and conduct business in their own unique way. Website: www.businessfriend.com/

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C itic Hea v y I n d u s t r ie s

Technical Centre

the world. There will be six grinding mill lines, each using an autogenous (AG) mill 12.2 m (40 ft) diameter Ă&#x2014; 11 m (36 ft) long with a 28 MW gearless motor followed by a 7.9 m (26 ft) diameter Ă&#x2014; 13.6 m (44.6 ft) long ball mill, each with two 7800 kW 196

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motors (44 MW in each of six lines) and standing more than 17 meters high. The final product from these large regrind ball mills using small grinding media will be approximately 28 microns. The mills will produce a fine ore stream which enters

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magnetic separators to become a concentrate. The concentrate will be thickened and stored before being pumped 25 kilometers to the port, where it is filtered to reduce moisture. From there, the concentrate will be exported for use in steel making. The world’s largest AG mills (12.2 m diameter × 11 m long with 28 MW drives) and six 7.9 m diameter × 13.6 m long ball mills with dual 7.8 MW drives are designed and manufactured by CITIC HIC.

Company Information Industry

Mining h ea d q u a r te r s

Luoyang, China founded

CITIC SMCC Process Technology CITIC SMCC Process Technology Pty Ltd (CITIC SMCC) is a newly formed subsidiary company of CITIC HIC Australia, following the exclusive 100 percent acquisition of SMCC Pty Ltd and its IP by CITIC HIC Australia 100% owned by CITIC Heavy Industries Co. Ltd. China (listed on the Shanghai stock exchange) on 6th July 2012. CITIC SMCC is based in Brisbane, Queensland Australia, and has commenced to provide technical services to various mining projects since January of 2013, mainly in the area of communication circuit design, technology and equipment selection, and optimization of mineral processing plants. The formation of CITIC SMCC will expand the CITIC HIC’s current technical services and provide more complete solutions to its customers with the best suited solutions for milling technology selection, comminution circuit design and plant optimisation.

1965 employee s

+10,000 revenue

$2 Billion p r o d u ct s / services CITIC Heavy Industries Company Ltd (CITIC HIC) began in 1956 under the name of Luoyang Mining Machinery Plant, in Luoyang China. In 1993 it was merged into the CITIC Group to become CITIC Heavy Machinery Company Ltd. CITIC HIC was one of 156 “Important Projects” initiated under the Chinese Governments first “Five Year Plan”. Now more than half a century later, CITIC HIC has become the largest mining machinery manufacturer and one of the largest heavy machinery manufacturers in China.

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Atlantis Mining SA machinery at Elandspruit and Kromdraai

IPC Coal Blue Sky Th Beyond for Black Empow Written by: Matthew Staff & Produced by: Anthony Munatswa

hinking Goes Above and werment in South Africa 199

I P C C oal

The South African Mining Company has set itself apart in a congested industry over the past six years, all the while ensuring that it enriches the lives of others as well as its own development

Kromdraai opencast mining area

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PC Coal is differentiating itself in a competitive junior mining market through a combination of turnkey products and services, Blue Sky thinking and an unparalleled devotion to Black Empowerment, both internally and in the surrounding region. Based in Durban, with its’ operational centre in Witbank, Mpumalanga (within 30km of its’ coal mines), IPC Coal’s progressive history has been driven by a succession of strategic acquisitions and sales, enveloping an expert developmental process for collieries in the surrounding area which have seen large-scale profit enhancements in each individual case. IPC Coal itself was founded in 2008 as a domestic marketing company for coal originating from Nucoal Mining and its flagship Woestalleen Colliery in Middelburg, Mpumalanga. Chief Operating Officer at the time, Paul Erskine played a pivotal role in the success of that operation and now, in his role as Chairman of IPC Coal, he can reflect on the platform that Woestalleen provided. “I was involved in 2005 with the Investors, where we purchased Woestalleen Colliery for around R65 Million before selling it on four years later for R650 Million, a 1,000 percent increase,” Erskine explained. “We built Nucoal Mining from 65,000 tons a month production to eventually 350,000 tons per month, and IPC was responsible for all the local distribution of the coal to all the guilt-edged, top boiler companies.”

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Following the sale of the Woestalleen site in 2009 and a subsequent foray into a charitydriven bucket list adventure for Erskine, he then returned to open up the Elandspruit Colliery which was mined out by May 2013, as well as the neighbouring colliery in a joint venture with Nungu Colliery where 13 million tons of coal remains. One Stop Shop IPC Coal’s journey stems from the 2004 Mining Rights Act in South Africa when Black Empowerment was brought in, subsequently breeding the junior mining sector, away from the major mining organizations on the continent. To differentiate itself from the 18 or so other companies in the niche market though requires an entrepreneurial flair which Erskine was quick to pick up on and implement by making Elandspruit Colliery Wash Plant

Key Personnel

Paul Erskine Chairman In July 2006 Paul Erskine negotiated the take over and management buyout of Woestalleen Colliery for R65 million. He was appointed COO of Nucoal Mining. Woestalleen Colliery was to become Nucoal Mining’s flagship. Paul arranged with Frazer Alexander to set up Phases 2 and 3, which was the expansion of the washing plant at Woestalleen from 65,000T to 350,000T per month. He arranged R150 million worth of funding which completed the capital expenditure required to take Woestalleen to a 2.4 million Ton coal exported. He also negotiated the acquisition of Vuna Colliery / Zonnebloem Coal Reserve in 2006 which had 26 million tons of coal. He was instrumental in negotiating a 3 million ton / 5 year Eskom contract for middlings. By 2009 the Woestalleen Colliery had more than 20 million tons of reserves and a fully operational 350,000T washing operation but lacked the export allocation for its 2.4 million tons of coal capacity. Paul approached Coal of Africa, a listed company on the AIM and JSE and by December 2009 Nucoal was successfully sold to Coal of Africa for R650 million. Paul decided to do his “Bucket List” and most of his adventures can be seen on his website at www.paulerskine.co.za

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I P C C oal

Aerial view of the Elandspruit Nungu opencast area

IPC Coal a one stop shop coal provider. “We’ve gone further down the value chain where we take it from Prospecting Rights now, which is really at the Blue Sky level, and we undertake the drilling, geology, environmental studies and the final Mining Rights Application,” he said. “My job is to operate the mines and make sure we turn them around so that the Investors get a really good return.” This approach has fostered a strong reputation in the coal hub of Middelburg, with Investors attracted by the proposition of flexible entrance into the project, whether it’s from early development, Mining Rights stage,

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We offer 24/7 operations with 24 hour live streaming camera surveillance “finger on the pulse” working environment, patented above ground mud sump system which requires no-dug mud sumps. Mud and/ or air drilling with BOP, Rotating Head and 140 bar Booster. Environmentally compliant. www.infin.co.za

Container kitchen sponsored by IPC Coal

or even through to the marketing phase. Throughout the whole service provision though exists IPC Coal’s most prized assets, its sub-contractors. Erskine continued: “Every single part of our business is sub-contracted out. Companies like Atlantis Mining who carry out all our mining operations have something like R250 million worth of equipment, so instead of learning the business that they have mastered, we rely on them and add value for each other.” Atlantis Mining has subsequently mined more than 26 million tons of coal under Contracts that Erskine that has placed with them. This epitomizes the successful model which also incorporates a separate transport division, marketing, in-house sales operation, Social and Labour, Health and Safety and Engineering sub-Contractors, all of whom have worked alongside Erskine on a long term basis to foster

“Companies like Atlantis Mining who carry out all our mining operations have something like R250 million worth of equipment, so instead of learning the business that they have mastered, we rely on them and add value for each other” – Paul Erskine, Chairman

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I P C C oal

First blast at Kromdraai

“Once you unlock those Blue Sky standalone projects, that’s where the true value comes in” – Paul Erskine

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a mutually beneficial and trustworthy team. Blue Sky thinking IPC Coal’s expertise in the junior mining sector is to attain groups that are at a Mining Rights stage, to then structure the proposition, raise the money and to get the mine up and running within three months of signing the Contracts. By that point, the mine will have begun making a return on the investments put into it, completing the cycle. However, to separate itself from market competitors requires the ability to identify ‘out-of-the-box’ deals, as Erskine explained: “We look for opportunities where we know that there are washing plants and coal in the area, knowing we can put it together because of the people that we know.

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“Some we take equity stakes in and raise funding for, but my main focus now is to look towards Blue Sky Prospecting Rights business because of the early entry and low value. “The drilling, exploration process and environmental studies per mine only costs around R3 Million, so once you package those and validate everything and put it all together, you’ve spent a relatively low amount on a project which you can either sell for R15 per mineable in situ ton or mine them out. “Once you unlock those Blue Sky standalone projects, that’s where the true value comes in, to complement my bread and butter business which still exists at the operating mines of Elandspruit and Kromdraai.”

R3 million Cost of drilling, exploration process and environmental studies per mine

Removal of overburden at Kromdraai

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I P C C oal

“…in everything we do, we’re trying to pass on that expertise, to enrich people in our organisation” – Paul Erskine

The Learners of Amaoti School outside Durban

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Domino effect Having such a positive influence on Black Economic Empowerment through its’ core operations is one thing, but IPC Coal prides itself just as much on its own Corporate Social Responsibility influence through the Domino Foundation. Instead of enriching a particular black individual or company, IPC decided to enrich an organization in the form of the Domino Foundation, which helps fund children’s homes, feeding programmes, literacy initiatives and life skill development. “It is an incredibly ethically, well run, accountable foundation,” Erskine said. “I have also set up the Mbuyelo Jesu trust which holds 30 percent of IPC Coal’s shares so that the funds that run through it are given to the Domino Foundation, and we work very closely with them on a project by project basis.” This footprint and foundation through

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Company Information Industry

Junior Mining h ea d q u a r te r s

Jonathan Erskine (CEO) receiving a Certificate

Durban, South Africa

of Appreciation from Amaoti School founded

everything the company does has bred exponential growth over the past six years, and Erskine is confident that it is initiatives such as this which fit into the same Black Empowerment ethos which helped develop the business from the beginning. “I also run a programme where I take on exprisoners once they are released, to train them as either drivers or weighbridge operators, within one of our sub contracted companies, because everyone is redeemable and because others wouldn’t take a chance on them, their loyalty towards you is unquestionable. Erskine concluded: “This is just another contribution that we make and in everything we do, we’re trying to pass on that expertise, to enrich people in our organization. “As we expand, instead of sourcing human resources from outside, we find people from inside and move them up the chain, and that’s why it’s called ‘Domino’.”

2005 employee s

24 revenue

R1.2 billion from 2011-2014 p r o d u ct s / s e r v ice s

Coal, Cement

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Aerial view of the Grande C么te mining area

Boosting the Senegalese Economy with a Globally Significant Mining Project Written by: Matthew Staff Produced by: Anthony Munatswa 209

G r a n d e C Ô te O pe r atio n s

Grande Côte’s 36MW power station

The TiZir Limited and Senegalese Government-owned company has spent much of the past decade planning for one of the world’s biggest mineral sands mining ready to bring the fruits of its success to the local region

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rande Côte Operations has begun production in one of the world’s largest dredging operations as it aims to achieve economic prosperity, not only throughout its 15 year-plus lifecycle of the mine, but also far beyond that to Senegal and the local population. Stretched four kilometres wide and 100 kilometres long, the Grande Côte site has been a long time in the planning under the guidance of owners, TiZir Limited, and the Senegalese Government who owns the remaining 10 percent; both of which have played an integral role in supporting all stages of the operation’s development. The origins of what is now a globally significant mine, goes back to 2006 when

se c t o r

Mineral Deposits Limited gained the tenure, followed quickly by a similar successful tender for a gold project, also in Senegal. While the gold mine took off immediately, Grande Côte was slowly developed in the background in regards to logistical planning, locating resourcing and carrying out feasibility studies; all of which culminated in the key ownership agreement which has funded the project to where it is today. Chief Executive Officer, Simon Finnis explained: “Mineral Deposits Ltd (MDL) signed an agreement with ERAMET, a large industrial company with an ilmenite smelter in Norway, as a joint venture partner. “MDL then merged the Grande Côte project

Simon Finnis

CEO Grande Côte Operations

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G r a n d e C Ô te O pe r atio n s This map shows the existing rail currently being refurbished and the new 22km rail spur link to the mineral separaton plan

“It’s very important to us that we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite” – Simon Finnis, CEO

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into this joint venture, forming the company, TiZir Limited which now owns the smelter in Norway and 90 percent of the project here in Senegal. “Now that the construction effort is over we can look towards producing what some people have reported as six percent of the world’s mineral sands products from this Grande Côte mine.” Ramping up production Located 50 kilometres north of Dakar, Grande Côte runs parallel with the ocean for the entire 100 km length of the mining concession, making it a globally significant mineral sands deposit. The mine itself was constructed over a two year period, at a cost of $650 million, finishing

Africa

in March 2014 and will mine relatively low grade 1.7 percent heavy mineral sands. Now in the “ramping-up”, commissioning phase of the project, Finnis is eager to start seeing the fruits of the organisation’s labour. “The project itself is fully integrated and starts off with us mining a large sand dune with our dredge.” he said. “We then process that sand through a mineral concentrator - a floating wet concentrator – which separates the sand from the heavy minerals using gravity techniques, creating a heavy mineral concentrate. “This concentrate is pumped to a storage area, and we place the clean sand, using pumps, pipelines and stackers, behind us. “What you end up with is a big pond where we take from the front and put it in the back, so the whole pond continues to move along the mine path following the ore body.” The mining operation will, at full production, mine and process at a staggering production rate of 55 million tonnes per annum. Over a projected lifecycle of at least 15 years, this equates to more than a billion tonnes of resources, with nearly 800 million in reserve. The heavy mineral concentrate is then trucked to the operation’s mineral separation plant where it is put through further stages of processing, all of which culminates in approximate annualised production of 575,000 tonnes of ilmenite (two grades), 80,000t of Zircon (two grades) and smaller amounts of Rutile and Leucoxene.

Grande Côte Operations With construction complete and mining underway, the Grande Côte Mineral Sands Project is one of only a few major new projects globally that is set to take advantage of the supply-constrained mineral sands sector. Grande Côte is located in Senegal, west Africa. Having gained independence in 1960, Senegal enjoys a stable and investor friendly political and social environment. The government of the Republic of Senegal is a valued partner and holds a 10% free carried interest in the project.

Mineralisation

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www.total.com

You know where to turn

supplier profile

total senegal

Total is one of the largest major integrated oil and gas companies in the world, with products marketed in 150 countries. The Group is also a first rank player in chemicals. Its 100,000 employees put their expertise to work in every part of the industry â&#x20AC;&#x201C; exploration and production of oil and natural gas, refining and marketing, gas and new energies, trading, and chemicals. With nearly 15,000 service stations worldwide, Total is among the largest refiners & marketers in Western Europe and the leading marketer in Africa. Total is a major player in the specialty products business (lubricants, aviation fuels, marine fuels, heavy fuels, liquefied petroleum gas, bitumenâ&#x20AC;Ś) and one of the leading traders of oil and refined products worldwide. Total is committed to meeting growing energy demand while consistently acting as a responsible corporate citizen. Total is actively preparing for the energy future by progressively expanding its offerings and developing complementary next generation energy activities, with a focus on solar. As a result of strong partnerships with mining companies in 40 countries worldwide, Total has developed mining solutions based on a range of high quality products with integrated services. TOTAL MINING SOLUTIONS adds value to mining customers by maximizing equipment availability, increasing productivity and thus, reducing their overall costs. Supplying around 200 mining sites worldwide, Total is a partner of choice for mining companies. Website: www.total.sn

G r a n d e C Ô te O pe r atio n s Reaching new scales While inevitable that each of these products will ebb and flow in regards to market demand over the course of the mine’s lifecycle, the flexibility of Grande Côte means that the range of products available from the operations will allow a rise in certain customer interest in one mineral to offset any shortcomings from another. This is also testament to the sheer scale of the project, as Finnis explained. “The project is of such a scale that using equipment that had been previously used elsewhere wasn’t an option. Everything we built was brand new and purpose designed. “It’s a brand new industry in Senegal but not in Africa necessarily. The processes we’re using are common and the same goes for the equipment. However, the scale is not common. “From a mining perspective, it’s twice as large as any single dredging operation in the world so it’s a very significant project.” Ensuring that all construction and mining requirements were available onsite has been

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Grande Côte Operations is the largest of its kind in the world

“The project is of such a scale that using equipment that had been previously used elsewhere wasn’t an option. Everything we built was brand new and purpose designed” – Simon Finnis, CEO w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s

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Your Supply Chain Partner for Engineered Projects, Fully Integrated Under One

Umbre

EPL Group is a specialist end-to-end procurement and supply chain organisat delivers a unique approach for improved project performance outcomes, reduc costs and shorter delivery times. Our lean offering seamlessly ties into engine and construction workflows via our globally available Real Time Project (RTP) for visible, traceable and reportable material management across all discipline

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a pivotal component of the mine’s potential success, and has recently lent itself to dealing with early challenges and teething problems. Minor redesigns of the project and the implementation of new equipment is something that Grande Côte has been able to respond to quickly and effectively to ensure that optimum productivity is returned to within as short a time as possible. Finnis continued: “It’s very important to us that

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Overlooking the initial dredged pond

we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite, to be as efficient as possible. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve built a large facility at the port to store our finished products and load the vessels, as well as building a power station onsite to provide our electrical needs. We also have a camp, power lines and our own water system to ensure we have everything we need, built ourselves.â&#x20AC;? w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s

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Supply chain management Continuing in this vein, Grande Côte has also taken the same internal approach to its supply chain, and especially its distribution channels via rail. “From this point of view, we have also installed a brand new railway from the mine to Mecke to connect in with the national rail network, and have refurbished the line from there to Dakar Port, which we are also managing as we transport minerals to the port,” Finnis said. “It’s been quite difficult because we’re introducing brand new trains and brand new roads and a different culture from the point of view of maintaining that rolling stock in Sengeal.” As a consequence, $50 million has been invested into the rail builds and refurbishments

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$50m Has been invested into Grande Côte’s Supply Chain

with the operation having received a concession from the Government to manage it internally. Finnis continued: “The rail development has led to a key risk being eliminated in getting our products to port. The roads here may be a lot better than in other African countries but it is still quite difficult from a traffic and efficiency standpoint. 700,000 tonnes per year heading to port is not feasible via trucks.” For such a large scale operation, supply chain considerations have played an integral 224

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Locomotives and rolling stock are part of GCO’s fully integrated logistics solution from mine to ship

role from the outset, with Grande Côte requiring the correct skills and equipment throughout the construction phase. In regards to the large amounts of steel, pipework, cables and dredges being purchased, availability simply isn’t there in Senegal, so a lot of the essential components were imported. However, the operation’s dedicated local focus was accounted for in terms of labour via nearby contracting companies. “From a purchasing perspective now, we try and w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s

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G r a n d e C Ô te O pe r atio n s purchase locally as much as possible, keeping availability and price in mind,” Finnis added. Employ and train The theme of local commitment and corporate social responsibility (CSR) is one that resonates throughout everything that Grande Côte does, and becomes especially prevalent in regards to employment and people management over the entire lifecycle of the mine. Similarly to the supply chain situation, the skill sets aren’t available in a lot of key operational areas, but this certainly does not mean that Grande Côte has cast aside the premise of local workers, and is instead devoting much of its efforts to developing and promoting the best that the surrounding region has to offer. “It is true that in some areas the skill sets just aren’t there; there aren’t the people who can operate certain items of plants, so our philosophy is to employ and train,” Finnis said. “We have a highly skilled set of expats here doing the training for us and there are very well educated people here who will continue to grow in the organisation. “Skill sets in areas like some trades, instrumentation and high tech plant aspects we don’t see exist, so we have to make sure we tailor our training and expatriate support for areas like that. “We are looking long term and building for the future so that in a couple of years the

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“It is true that in some areas the skill sets just aren’t there; there aren’t the people who can operate certain items of plants, so our philosophy is to employ and train” – Simon Finnis

Grande Côte aim to train local people

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G r a n d e C Ô te O pe r atio n s local guys will have received the high levels of guidance and mentoring required to take over from the expats and to run things themselves.” Local focus CSR and sustainability doesn’t just stop at employment opportunities either, with a tailored sustainability department set up to cover areas of environmental considerations, health and safety procedures, community initiatives and corporate aid. “Beginning with the Grande Côte workers, in a perfect world we employ people locally rather than from Dakar so they can go home every night to their families, get plenty of rest and come to work refreshed and happy,” Finnis said. “We have therefore started a housing

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“Beginning with the Grande Côte workers, in a perfect world we employ people locally rather than from Dakar so they can go home every night to their families, get plenty of rest and come to work refreshed and happy” – Simon Finnis

Operators undertaking exploration drilling

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scheme so our workers can afford to buy and own their own home over a number of years. “We have set this up with BHS, a Senegalese institution that specifically targets the support of housing projects, where they will purchase land and we will assist in getting our people approved for mortgages which is usually a difficult process. We will look out for them and do what we can to help them get their own home in the local area, close to where they work.” A strong health and safety adherence promotes this ethos further, with hazard identification a pivotal factor not only for the organisation’s direct employees, but also the local population in general.

Grande Côte’s philosophy is to employ and train

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Finnis continued: “It is not uncommon in Senegal to see things like people riding around on the roofs of buses, and other hazardous behaviours but of course we can’t accept that because of the safety risk to our people. “We therefore spend a lot of time training and planning to make sure that everything is not just as environmentally efficient as possible, but is also as safe as possible.” Market acceptance Following the eight years of hard work, the next key phase to dictate the overall success of Grande Côte will be the market’s acceptance of the organisation’s products, something which Finnis anticipates being a relatively smooth transition, based on feedback already received. “Every time you introduce a new product, customers need to get used to that and we’ve sent some trial parcels to various places like China and North America over the past year,” the CEO explained. “We have seen acceptance of the products on a trial basis and we hope to do long term business with them, on ilmenite especially. From a zircon perspective we already have some long term partnerships in place.” There will inevitably be a period of time now while prospective customers assess the products coming out of Grande Côte but there is likely to always be a product among the range which is performing well to ensure the ongoing success of the overall operation.

Sampling

“Every time you introduce a new product, customers need to get used to that and we’ve sent some trial parcels to various places like China and North America over the past year” – Simon Finnis

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Zircon and rutile storage at the Mineral Separation Plant

New track from the MSP to MĂŠckhe nears completion

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G r a n d e C Ô te O pe r atio n s “The products we’re going to make are high quality and they will gain market acceptance,” Finnis said. “There will always be periods in the industry when the market is soft and then times where it’s good. It’s just a case of getting from one period to the other as smoothly as possible. “For instance, the market is robust on the zircon side of the business right now but soft in the ilmenite market.”

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Company Information Industry

Mining h ea d q u a r te r s

Senegal, West Africa founded

World class business While many companies have short and medium term goals, the lifecycle of this mine means that Grande Côte can look even further ahead at the bigger picture, and Finnis believes that much of the organisation’s overall targets will be visible within just five years, especially in regards to its influence on Senegal. “In five years’ time we will be a well-known and well understood business in Senegal,” the CEO concluded. “We’ll be an integral part of the community, providing a continuous revenue stream and providing jobs to local people. “In just a few years, the number of expats will be reduced, the expertise of the locals will be increased and we will be providing a platform for the people of Senegal to go on to bigger and better things in the future as well. “We’ve come in and built a world class business and it deserves to be managed to the highest levels possible.”

2006 employee s

950 revenue

N/A p r o d u ct s / s e r v ice s

Mineral Sand Mining

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Khoemacau Copper Mining

Prepares for National Development and International Success Written by: Matthew Staff Produced by: Anthony Munatswa

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The Cupric Canyon subsidiary has spent the past few years discussing, planning and drilling in Botswana, and is now ready to move towards the start of construction next year followed by production in 2017

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he Khoemacau Project is in full swing having been rigorously planned over the past five years, and is now gearing up for the construction phase in line with its goal of beginning production in 2017. Formed under the global Cupric Canyon Capital company following the acquisition of Hana Ghanzi Copper Ltd in early 2013, Khomecau has subsequently built upon the work already being carried out in the region knowing that the expertise available within the Cupric Canyon organisation would be a perfect match for the project. After a review of more than 250 projects throughout the world, the Khoemacau Project was chosen based on very selective criteria, as Chief Executive Officer, Sam Rasmussen explained: “We’re a private company, and our goal is to create value for all of our stakeholders while maintaining the highest industry standards for safety and the environment. “The benefits of developing an operation such as this in Botswana included the quality of the project, the ease of operating here, the attractive labour force, the transparency and lack of corruption in the country and the investor-friendly mining code and legislation that exists here. “We identified what Hana had done up to that point and we were very impressed with the results. Although the M&I (measured and indicated) reserves were low at the time, we had a very strong sense for the project’s upside potential which has since been confirmed.”

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About Us Khoemacau Copper Mining (Pty) Ltd (“Khoemacau”), previously known as Hana Ghanzi Copper (Pty) Ltd, a subsidiary of Cupric Canyon Capital LP (“Cupric”) has been exploring and developing the GhantsiChobe Copper Silver Project (“Khoemacau Project”), located in the Kalahari copper belt within the Ghantsi and North West Districts.

Core retrieval at Zone 5

Planning ahead Hana’s drilling campaign hit a scale of 30,000 metres, a figure which the Khoemacau Project has quickly and effectively surpassed having reached numbers between 150,000 and 200,000 metres in just a 24 month period to bring it up to a satisfactory M&I reserve level. This means that Rasmussen and his team can turn their attention towards the next stage of the project; namely preparing for construction with a view to production in 2017. “We are just finishing the feasibility study and are now transitioning to the FEED (front end engineering design) stage,” the CEO said. “Cupric

Activities at the Khoemacau Project have now successfully completed the 70,000 metres infill drilling programme at the North East Fold and Zone 5.

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We offer the following methodologies in Exploration Drilling and Grade Control: Reverse Circulation Drilling Diamond Drilling Air core Drilling Large Diameter Drilling RAB Drilling

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K H O E M A C A U C O P P E R M I N I N G P T Y LT D is strongly committed to the project and we are prepared to begin construction once we have received government approval.” This planning forms arguably the most integral stage of the entire project, with the infrastructure and logistical challenges all addressed, building up to the commencement of production. “In the next three months there are some construction activities that will commence related to the development of water supply, temporary power generation and the camp,” Rasmussen continued. “Once this is completed, we can focus our attention on underground mine development and surface facilities.” There is now a fully functioning camp to cater for the 300 employees already working on this initial infrastructure, and the challenge now is to take the next step towards the larger structure, incorporating equipment, drainage, traffic considerations, power supply and water volume requirements. Competitive product Building toward the company’s 2017 goal, Khoemacau recently submitted an application for a mining licence and expects to receive approval before the end of 2014. This would confirm the rewards of an investment that has totalled around $160 million up to this point, including the cost of acquiring Hana Mining Ltd., Khoemacau’s parent company. Now officially a medium sized mining project,

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Batanani Muyoba (Bates) explains project geology

Apprentices on board attending their first quarterly feedback meeting

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K H O E M A C A U C O P P E R M I N I N G P T Y LT D the Company can partially turn its attention toward the end product and marketing-related matters. “The final product from the mine is a coppersilver concentrate, the content of which is 40 percent copper and 347 g/t silver,” Rasmussen explained. “Our payable product will be 50,000 tonnes per annum of copper, contained in 125,000 tonnes of copper-silver concentrate from the operation.” Not only is Rasmussen excited about the volume of production, but also the cleanliness of the concentrate which will surpass many competitors in terms of quality, which means that more than one buyer is already at the door, years in advance. Local responsibilities Running parallel with the ongoing focus on future economic success and continuous improvement has always been the Khomecau Project’s commitment to the region in which it operates, a dedication that was earmarked from the beginning simply in naming the subsidiary. “’Khoemacau’ is a combination of five words from the sandman tribes that live on the central Kalahari Game Reserve here, meaning ‘hills of the people’, and it was chosen by a local school after we got the local communities involved to help us name our project,” Rasmussen said. “Assisting the nearby communities and people is very important when mining companies operate

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Key Personnel

Sam Rasmussen CEO Sam is a seasoned professional in the copper industry, most recently serving as General Manager of the Los Bronces copper mine in Chile. He has held various operational and technical roles with Freeport-McMoRan Copper and Gold (and its predecessor Phelps Dodge Corporation) for more than 16 years. Sam was General Manager of the TenkeFungurume project in the Democratic Republic of Congo, responsible for development and operation of copper and cobalt processing facilities.

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K H O E M A C A U C O P P E R M I N I N G P T Y LT D

Overview of main camp in the Banana Zone

“It’s the philosophy of the company; if we don’t have the expertise we develop it, if we don’t have something we build it” – Sam Rasmussen, CEO

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in small communities, so we’ve made a point of carrying out socially responsible activities like building schools, wells, houses and even clinics.” This local emphasis translates to its own employment strategies too, with more than 90 percent of the current workforce of 300 coming from Botswana. Despite a shortage of skills in some areas, Khoemacau is certainly not taking an ‘out of sight, out of mind’ approach and is instead devoting itself to the training and development of indigenous, willing workers to build for the future of the mine in the hope that operations will be

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Company Information INDUSTRY

Mining HEADQUARTERS

Gaborone, Botswana FOUNDED

2013 EMPLOYEES

300 REVENUE

Not disclosed

managed almost exclusively by Botswana in the years ahead. “It’s the philosophy of the company; if we don’t have the expertise we develop it, if we don’t have something we build it,” Rasmussen concluded. “It may take five or 10 years but you’ve got to think long term, and our development plan for the project is consistent with this philosophy. “In five years’ time I’m positive I’ll be able to report back that Khoemacau successfully started up in 2017 and continues to exceed production expectations, all while operating smoothly and safely and empowering the people of Botswana.”

PRODUCTS/ SERVICES

Copper Mining

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