Mining Global Magazine - August 2015

TOP 10: Largest Open Pit Mines In The World

August 2015 • www.miningglobal.com

HASTINGS DEERING: The success behind Australia’s largest Cat dealer network

Mining Equipment + Internet Of Things

What Does it Take to Be a Responsible Miner?

EDITOR’S COMMENT

IN THIS ISSUE

“Perfection is not attainable.

But if we chase perfection, we can catch excellence” – Vince Lombardi I N T H E A U G U S T E D I T I O N of Mining

Global, we explore the Internet of Things and how this futuristic possibility could disrupt the mining sector for the better. From improving cost reductions in ore targeting and processing to energy management and maintenance, the power of loT is expected to benefit mining greatly, including helping the industry catch excellence.

Also this month, we take a look at the top mining companies to examine their approach to responsible mining and how their initiatives are working to deliver sustainable value to its people, stakeholders and host communities.

Lastly, we rank the top largest open pit mines the mining world has to offer. You won’t believe your eyes as these massive holes.

Don’t forget to check out our company profile section this month.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

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CONTENTS

Features

TOP10

LEADERSHIP

6

Responsible Mining: What Does It Take?

18

Largest Open Pit Mines In The World

TECHNOLOGY

4

August 2015

12

Mining Equipment + Internet of Things

Company Profiles AFRICA 28 IPC Coal

40

Palabora Group

28

IPC Coal

40 Palabora Group

AMERICA LATINA Grupo México

52 Primero Mining 64 Atlas Copco Chile 80 Grupo México

CANADA 92 Hastings Deering 108 Australia-Africa Mining Industry Group [Association] 116 CIVMEC 132 Glencore Technology

BRAZIL

52

Primero Mining

80

Atlas Copco Chile

64

116

CIVMEC

144 Grupo Curimbaba

92

Hastings Deering

108

Australia-Africa Mining Industry Group

144

Grupo Curimbaba

Glencore Technology

132

5

O P E R AT I O N S

Responsible Mining:

What Does It Take?

We take a look at the top mining companies to examine their approach to responsible mining and how their initiatives are working to deliver sustainable value to its people, stakeholders and host communities

Writ ten by: ROBE RT SPE N C E

MINING COMPANIES KNOW their license to operate is contingent on operating responsibly—it’s their legal obligation. However, being a responsible miner is more than just adhering to regulations and guidelines—it’s a voluntary action to go above and beyond the call of duty.

The way to truly distinguish a responsible miner is by their Corporate Social Responsibility (CSR) programs.

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August 2015

These are the initiatives undertaken by the company to either improve the living conditions (economic, social, environmental) of local communities or to reduce the negative impacts of mining projects on the environment.

Not every company is cut out to be a responsible miner. For some it doesn’t make business sense, while others simply cannot afford the financial resources. To be a responsible miner

in today’s volatile mining landscape, it takes a variety of components.

We examine some of the biggest names in the industry to find out what it takes.

Changing the perception Although public perception would say otherwise, mining companies have made significant stride in recent years to improve their

corporate policies. Slowly but surely, it’s starting to pay off.

Earlier this year, Canadian magazine Maclean ranked Kinross Gold as the top mining company on their Top 40 Most Socially Responsible Companies in Canada list. The selection marks the sixth consecutive year the magazine has selected Kinross Gold. “Operating in a socially responsible and sustainable manner is about 7

O P E R AT I O N S

Caption to the image partnership,” said J. Paul Rollinson, Kinross President and CEO. “We approach that partnership on the basis of respect and a desire to contribute to the prosperity and wellbeing of the communities where we operate. These rankings reflect the dedication of our employees to transform that commitment into tangible results when it comes to everything from local hiring, and engaging local suppliers to employing environmental best practices.”

Newmont Mining announced in July a partnership with Project C.U.R.E to provide $8 million in 8

August 2015

medical supplies, including training of personnel, in developing countries around the world. The partnership isn’t Newmont’s first contribution to the organization. The company has been helping Project C.U.R.E since 2004, contributing over $1.2 million.

“Newmont is proud to continue its support for the life-saving work Project C.U.R.E. does in developing countries around the world,” said Elaine Dorward-King, Newmont’s Executive Vice President for Sustainability and External Relations.

“Our two organizations are aligned in purpose, and our partnership gives

R E S P O N S I B L E M I N I N G : W H AT D O E S I T TA K E ?

us the means to improve lives by equipping health care professionals with the resources, tools and training necessary to help people in need.”

Canadian mining company Goldcorp is another example of what it means to be a responsible miner.

According to Todd White, Senior Vice President of Business Excellence, the company’s primary focus in responsible mining is directed on reducing energy, water efficiency and reclamation. “We have some great examples of responsible water management happening at many of our sites, especially those based in South America. We believe that responsible water usage contributes to responsible mining practices, in terms of optimizing our water use by water recycling, and limiting the introduction of fresh water into our processes.”

The trend of responsible mining continues to move forward as mining companies strive to do the right thing.

Untold benefits Responsible mining is all about letting the actions do the talking.

Surprisingly enough, mining in a socially responsible manner can actually be good for business.

Done correctly, the benefits of being a responsible miner include: • Reduced labor shortages though investing in local education and skills training; more consistent production as a result of a healthier workforce.

• Less likelihood of conflict by building better relationships with local indigenous people and artisanal miners.

• Better access to lower cost services and supplies through 9

O P E R AT I O N S regional business development; and faster access to financing because of lower perceived risk by equity markets.

• Taking action that doesn’t appear to be in the best interest of the business but rather the community in which they operate. This not only shows a very high level of authenticity but it reveals good will.

By assisting in things that don’t always make business sense, mining companies can actually build more authentic relationships with their host communities and therefore benefit themselves and shareholders in the process.

Embracing the responsibility Mining is a complex and intensive process that causes environmental and social change no matter where it occurs. It is imperative that mining companies embrace social and

environmental responsibility to give back to their host communities.

The International Council on Mining and Metals (ICMM) is one of the primary organizations dedicated to improving sustainable development performance in the mining industry.

Members are required to implement the organization’s Sustainable Development Framework, which includes integrating a set of 10 principles and six supporting position statements into corporate policy, as well as integrating transparent and accountable reporting practices.

“Our challenge is to ensure that these implications add up to a net positive contribution over the long term – to individuals, their families and communities, to the countries in which we operate and the enveloping ecosystem. In so doing, we enhance security, touching on the most basic of human and ecological needs.

“Our challenge is to ensure that these implications add up to a net positive contribution over the long term – to individuals, their families and communities, to the countries in which we operate and the enveloping ecosystem” – ICMM President, Anthony Hodge.

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August 2015

R E S P O N S I B L E M I N I N G : W H AT D O E S I T TA K E ?

We can then serve – as we need to serve - as a bridge to the future,” said ICMM President Anthony Hodge.

Transparency is another way mining companies can embrace responsibility. The Internet has put the industry on notice as it can take stories about operations and companies, and spread it worldwide at a moment’s notice. Because of this, corporations have to be accountable to a degree that was never anticipated

back in the golden years.

Responsible miners should share what they’re doing and how they’re doing it. It’s important to deliver that message, especially to advocacy groups, indigenous people, investors and other stakeholders to showcase how the company is striving to improve.

To be a responsible miner, it doesn’t take much--it simply takes the will power to do the right thing.

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TECHNOLOGY

Mining Equipment + Internet of Things

The emergence of big data has allowed miners to predict and eliminate potential problems in mining equipment. The Internet of Things is expected to take things further than anyone ever expected Writ t e n by: R O B E RT S PE N C E

IN THE 2011 film Limitless, a struggling writer obtains a mysterious pill that enables him to access 100 percent of his brain abilities, helping him to reap monetary benefits by becoming a financial wizard. For the mining industry, that mysterious pill is the Internet of Things.

The introduction Widely credited to Kevin Aston while working at Proctor & Gamble in 1999, the Internet of Things (loT) refers to a giant network of connected objects or “things.� These connected things, 13

TECHNOLOGY

Driverless vehicle which can vary from a smartphone to a mining truck, utilize embedded technology to transfer data over a network without requiring humanto-human or human-to-computer interaction. In fact, the concept aims to utilize analytics in order to replace the human decisionmaking process altogether.

The mining industry has turned the innovation dial up in the past few years, implementing newer and 14

August 2015

more diverse technologies to solve age-old questions. The big potential for loT in the mining industry lies in the equipment it uses.

In recent years, mining companies have begun equipping machinery with unique sensors and software to collect data from everyday activities. This “big data� is now emerging as potential information that can be analyzed and utilized to allow manufacturers the ability

MINING EQUIPMENT + INTERNET OF THINGS

to predict and eliminate potential problems. The Internet of Things has the power to take mining equipment and operations to new heights.

Technology research consultant Gartner Inc. expects the number of connected products in the mining industry to rise from 24 million in 2014 to 90 million by 2020. According to the consultant firm, the 25 percent increase in mining connectivity is among the fastest in the industry sectors.

New era for mining The Internet of Things is expected to ring in a new era for mining operations and equipment. With the way things are going for the commodities sector, it couldn’t be any sooner.

“Ten years ago, these were dumb bits of equipment. If the computer in the office fell over, who cared?

Now underground mines are full of optical fiber and bits of equipment that talk to one another,” said Mike Elliot of EY in Australia.

For one, loT will assist in the predictive/preventative maintenance for mining vehicles, which has become increasingly important in recent times. Through the use of

‘Technology research consultant Gartner Inc. expects the number of connected products in the mining industry to rise from 24 million in 2014 to 90 million by 2020’ sensors, companies will have the ability to monitor everything from fluid temperatures, engine speed, gear position and brake pressure.

Information from the sensors will be relayed to a remote monitoring center that will then alert the equipment operator of potential trouble before it happens. The technology will provide data analytics of the truck performance data to prevent unnecessary maintenance events and to reduce the time to repair the truck during unplanned maintenance events.

Similar to the film, loT also has the ability to empower mining equipment in order to function and 15

TECHNOLOGY

Tech 2 operate with optimal efficiency.

“Lots of these machines have been sending data for more than 30 years, but we did not have the ability to use it,” says Al Frese, solutions and technology manager for mining sales and support at Caterpillar. “Now we have that and can do it effectively across many different sites.”

US-based Caterpillar Inc. is a major player investing in the Internet of Things. Last year, the company spent $2.14 billion on product-oriented research and development alone.

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August 2015

‘For the mining industry, the Internet of Things holds unlimited potential as the future could consist of flying drones, automatic drill rigs, trains and driverless trucks’

MINING EQUIPMENT + INTERNET OF THINGS

Rob Charter, a group president at Caterpillar, has said that the company wants to surround customers with a tech-savvy suite of products and services. It’s about moving beyond simply making machines, he’s noted.

“Originally, when we built product, it was about the product,” Charter said. “What we think about all the time these days—and you’ll see it more and more in people’s thinking—is how do we make a customer successful?

And if they’re successful and they rely on us, then we’re successful.”

Unlimited potential The Internet of Things is expected to take the mining industry into a new helm of operational excellence.

In its 2013 report called Disruptive Technologies: Advances that will Transform Life, Business and the Global Economy, the McKinsey Global Institute stated that the Internet of Things will be largely used by the mining industry in the near future for data collection, monitoring process, decisionmaking and optimizing workflows.

For the mining industry, the Internet of Things holds unlimited potential as the future could consist

thiess-mining-equipment of flying drones, automatic drill rigs, trains and driverless trucks. The technology will not only optimize processes, but it will prevent accidents, predict maintenance and even help companies conserve their resources like water and electricity.

NFL coaching legend Vince Lombardi once said: “Perfection is not attainable. But if we chase perfection, we can catch excellence.”

With the mining industry adopting new technologies and taking loT under its wing, the industry could reach new levels in coming years.

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TOP 10

LARGEST OPEN PIT MINES In The World

These aren’t your ordinary mining operations. We examine the largest open pit mines the mining world has to offer Written by: Robert Spence Open-pit mining is one of the most commonly used techniques to extract minerals from the Earth. The process, which is also known as “opencast mining,” “open-cut mining” and “strip mining,” is used when deposits are located close to the surface, and entails digging or blasting from the ground level to extract ore.

Along with being highly cost effective and efficient, this digging method results in massive holes that are both impressive and spectacular for onlookers.

We showcase the largest open pit mines the mining industry has to offer >

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TOP 10

10) Escondida Copper Mine Located in the vast landscape of the Atacama Desert in Chile, the Escondida Copper Mine is one of the largest open pit mines in the world. Consisting of two open mines – Escondida Pit and Escondida Norta – the mine is 3.9 kilometer long, 2.7 kilometers wide and 645 meters deep. The mine ranks as the third deepest open-pit operation.

Owners of the Escondida mine include BHP Billiton, which owns a 57.5 percent stake, and Rio Tinto, which owns a 30 percent interest.

09) U dachny Diamond Mine The Udachny Diamond Mine, located in the Eastern-Siberian Region of Russia, is one of the largest open pit operations within Russia, and one of the largest and deepest in the world. Owned and operated

by Russia’s state-owned company Alrosa, the open-pit operation has been in production since 1971 and is scheduled to close in 2015. The mine will reopen with underground operations and is expected to commenced commercial production by the end of 2015. According to Alrosa, there is an estimated diamond reserve of 108 million carats for Udachny underground mining.

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August 2015

LARGEST OPEN PIT MINES IN THE WORLD

08) C huquicamata Copper Mine For more than a century, the Chuquicamata Copper Mine in Santiago, Chile has been producing massive amounts of copper.

Owned and operated by Codelco, the gigantic mine measures at 4.3 kilometers long, three kilometers wide and more than 850 meters deep, making it the second deepest open-pit mine in the world.

According to Codelco, the company is planning to transition operations to underground by the end of 2018, which is estimated to contain 1.7 billion tons of copper reserves.

07) Grasberg Mine In terms of gold mines, the Grasberg Mine is the Holy Grail of the mining world.

The man-made hole ranks as the largest producing gold mine in the world and the second largest producing copper mine. The gargantuan Grasberg mine is also one of the deepest mines, measuring an astonishing 550 kilometers deep.

Located in the Papua province of Indonesia, the gold mine is operated by Freeport Indonesia – a subsidiary of Freeport-McMoRan Copper & Gold – and consists of both open-pit and underground operations, producing gold, copper and silver.

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TOP 10

05) Diavik Diamo The Diavik Diamond Mine

the largest open pit mines

in 2003, the diamond mine

seven kilometers wide and

eight million carats a year.

situated on an island in the

Gras in the Northwest Terr

an unincorporated joint ve

Tinto and Dominion Diamo

06) H ull-Rust-Mahoning Mine What began as an underground mine has transformed into one of the biggest open-pit mines in the world. Nicknamed the “Grand Canyon of the North,� the Hull-Rust-Mahoning Mine in Minnesota, US measures a whopping eight kilometers long, 3.2 kilometers wide and 180 meters deep.

Since 1895, the mine has shipped more than 800 million tons of iron and removed more than 1.4 billion tons of earth and 2,000 acres of land. The mine is so gigantic that it has become a national monument for Minnesota.

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August 2015

LARGEST OPEN PIT MINES IN THE WORLD

ond Mine in Canada is one of

s in the world. Built

e measures roughly

d produces roughly

. The mine, which is

e middle of Lac de

ritories of Canada, is

enture between Rio

ond Diavik Limited

04) K imberly Diamond Mine Often referred to as “The Big Hole,� the De Beers-owned Kimberly Diamond Mine in South Africa is the largest openpit mine excavated by hand. The perimeter of the mine is 1.6 kilometers and it plunges over 200 meters deep.

Although the mine has been closed down since 1914, the gargantuan hole continues to attract visitors from around the world and is currently in progress to become registered as a World Heritage Site.

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TOP 10

03) Kalgoorlie Super Pit Bigger is always better in the mining industry, and the Super Pit gold mine in Australia is as big as it gets. The canyon-size hole - which is visible from space!

– measures roughly 3.8 kilometers long, 1.5 kilometers wide and approximately 600 meters deep! It’s the largest open-pit mine in Australia and makes our list at number three in the world. Also known as “The Fimiston Open Pit,” the gold mine is owned and operated by Kalgoorlie Consolidted Gold Mines (KCGM), a company owned 50/50 by Barrick Gold and Newmont Mining.

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August 2015

LARGEST OPEN PIT MINES IN THE WORLD

02) M ir Diamond Mine The Mir Diamond Mine in Eastern Siberia, Russia is a former open-pit mining operation that took place from 1957 until 2001. Popularly known as the “Mirny Mine,” the site produced 10 million carats of diamonds annually during its peak years of operations. Now closed, the mine is still the largest excavated hole in the world—stretching 1,200 meters in diameter and reaching depths of 525 meters.

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TOP 10

01) Bingham Canyon Mine Believe it or not, Utah is home to the largest open-pit mine in the world.

Located south-west of Salt Lake City, the Bingham Canyon Copper Mine is roughly four kilometers wide and over 1.2 kilometers deep—

that’s like two of the Willis Towers in Chicago on top of each other. First discovered in 1848, the copper mine has gained a mythical reputation for its gargantuan stature, as well as produces massive amounts of copper, including millions of ounces gold, silver and molybdenum.

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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 29

IPC COAL

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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August 2015

I

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.”

MINING

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

w w w. i p c a f r i c a . c o . z a

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IPC COAL

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,

Specialist Gas / CBM services and certified Well Cap Control – core holes to completing perm test / production wells.

Multi-Purpose Core/RC/ DTH/ Water Hammer drill rigs and associated supporting equipment manufactured by www.bohrmeister.co.za and Directional drilling www.geosonic.co.za

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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IPC COAL

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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August 2015

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.

MINING

“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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IPC COAL

“…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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August 2015

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

MINING

Company Information INDUSTRY

Junior Mining HEADQUARTERS

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 EMPLOYEES

24 REVENUE

R1.2 billion from 2011-2014 PRODUCTS/ SERVICES

Coal, Cement

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www.t eix eir aduar te.p t ger al@t eix eir aduar te.p t

“Teixeira Duarte – Engenharia e Construções, S.A.” is a Portuguese company that started operating in 1921 in the fields of Geotechnical and Foundation Engineering, which gradually extended to other fields of engineering, such as Buildings, Infrastructures, Metalworks, as well as underground, mining, railway and maritime works.

Always maintaining the imprint of a true Engineering Company, with recognized expertise in the design, innovation, construction and management of major projects and developments, it has been operating in the field of underground and mining works since 1981, mainly through its subsidiary EPOS, S.A., which, with its acknowledged experience, still has the most advanced technology and equipment for the performance of this type of works, remaining continuously active for more than 30 years in major mining projects, in the fields of prospecting and survey, infrastructure construction and exploration.

True to its performance values, Teixeira Duarte has achieved a steady and sustained growth that has allowed it to build a strong business capacity, detaining means and resources, namely human, which have enabled it to undergo multiple internationalization processes and broaden its areas of expertise.

Having achieved a turnover of more than EUR 1,500 million in 2013,

Teixeira Duarte Group currently has around 12,500 employees operating in 16 countries, in 4 continents, working in 7 different sectors, notably in Construction, Concessions and Services, Real Estate, Hotel Services, Distribution, Energy and Automotive Industry.

Teixeira Duarte has been listed on the stock exchange market since 1998, but it maintains a stable shareholder structure, mostly dominated by the Teixeira Duarte family, which, along with its history and the operational capacity of its teams and resources, gives it the confidence and responsibility to be able to continue to fulfill its mission: Execute, contributing towards the construction of a better world.

Christensen CS14 C drilling rig – Indicative graph of the drilling capacity in meters, at diameters BQ, NQ, HQ and PQ

Gold prospecting for COLT RESOURCES in Escoural, South of Portugal

Palabora Mining Compan

How Strategic Investment Se Of Palabora And The People

Produced By: Anthony Munatswa Written By: John O’Hanlo

ny (PMC):

ecured The Future e Of The Limpopo

on 41

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

South Africa’s only producer of refined copper and Limpopo’s biggest employer, Palabora Mining Company (PMC) is in expansion mode, a task it is executing with exceptional respect for both community and ecology

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Palabora Mining Company was incorporated in South Africa in August 1956 and was owned and managed by Rio Tinto until 2013 when it was acquired by a consortium led by the Industrial Development Corporation (IDC) of South Africa Limited and China’s Hebei Iron & Steel Group. Acting CEO Maboko Mahlaole was working at the company in the capacity of HR Director at the time of the acquisition, and has seen PMC pursuing new and encouraging strategies under its new owners.

Nobody could say that Rio Tinto and its minority partner Anglo American were not committed to the mine, but at the time of the recession, the implementation of an expansion plan to extend the mine’s life for a further 20 years was in doubt.

The high copper grades obtained from the original open pit mine, which created the ‘biggest hole in South Africa’ having been largely exhausted, and the $410 million underground mine, whose production capacity reached 30,000 tonnes of ore per day reaching the end of its life, a decision had to be made, and in November 2014 the board finally approved a $9.3 billion expansion programme to extend the mine at a deeper level.

The Lift II mine will be dug 450 metres below Lift I and will ensure a continuation of copper mining in Palabora to 2030 and beyond.

This long term vision had to encompass not only building the deep mine, but also addressing the beneficiation operations. As much as 30 percent of the headline cost will be taken up

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Palabora Mining copper refinery

with the addition of a new processing plant.

Copper is not PMC’s only product. Though copper had always been the main revenue earner until three years ago, when it started to earn more from magnetite, an iron ore. Today a greater share of turnover still comes from magnetite. To take advantage of this the company wants to increase its capacity to process magnetite. Two years ago it was processing a little over three million tonnes per annum (tpa) of magnetite, says Mahlaole. “Our target is to increase magnetite production to ten million tpa.” In June 2015 a new magnetite plant was commissioned that will ramp production up to six and eventually ten million tpa.

Internal logistics were also constricting magnetite production, he says. “We are working on a project that we call the magnetite expansion.

“Our target is to increase magnetite production to ten million tonnes per annum” – Maboko Mahlaole, Acting CEO

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PA L A B O R A M I N I N G C O M PA N Y ( P M C )

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Month 2014

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) Two years ago our magnetite capacity was just over 3 million tpa. The target is to be able to produce up to 10 million tpa. This project is under way, in fact we just commissioned a new magnetite plant as part of the ramp up to 6 million tpa and eventually 10 million. The higher figure will be reached by optimising the logistics internally.

We have a stockpile of around 220 million tonnes of magnetite spread over a big area – currently it’s moved by tractors, and dried using outdated fan technology.” The new plant incorporates modern drying technology, and a study is taking place on how best to optimise transportation of iron ore to the railhead of Transnet, and how the latter might help to facilitate this.

Another key part of the process is the copper smelter. Being able to produce 99 percent

SUPPLIER PROFILE

AFRICA

Working underground at the Palabora Copper mine

SASOL

Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 32 400 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of highvalue product streams, including liquid fuels, chemicals and low-carbon electricity.

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PA L A B O R A M I N I N G C O M PA N Y ( P M C )

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Month 2014

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PA L A B O R A M I N I N G C O M PA N Y ( P M C ) pure copper anode differentiates Palabora from its regional competitors, however the old smelter is reaching the end of its useful life since its emissions no longer meet South African regulatory standards. Permission is being sought to stretch its life into next year by retrofitting it with new technology. That would allow a completely new, environmentally efficient smelting plant to be sourced from China and commissioned early in 2016. There was no appetite for investing in a new smelter under the former ownership, says Mahlaole, but Hebei did not flinch at the need to invest in this plant – another long term strategic commitment.

The mine’s new-found sustainability is a winwin, he says. I think the divestment from Rio Tinto and the investment in the mine and the smelter

SUPPLIER PROFILE

AFRICA

Drilling on the face

ORYX ENERGIES

Oryx Energies is a key player in LPG across sub-Saharan Africa. In South Africa, we are proud of our partnership with Palabora Mining Company (PMC) (Pty) Ltd – where we provide value added solutions, including tank and process monitoring, as well as on-site management.

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PA L A B O R A M I N I N G C O M PA N Y ( P M C )

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PA L A B O R A M I N I N G C O M PA N Y ( P M C ) bought a new lease of life for this region. PMC has benefited from China’s policy of investment overseas, particularly in Africa. They see Palabora as a showcase for that policy, securing copper and iron ore supplies, a business success story and also a launching pad for their Africa policy. We are fortunate to be in this situation!”

Most fortunate of all in the eyes of Maboko Mahlaole is the fact that PMC will continue to be able to employ large numbers of local people, and improve life for their families.

“Unemployment in this region is over 30 percent. Fortunately at Palabora we have a training centre, accredited by the Department of Higher Learning, where we already run a lot of courses. We train fitters, boilermakers, electricians, rock breakers and other trades.

“So we have a large training footprint of our own within the business. But in the light of the expansion project, we have partnered with the contractors like Murray & Roberts and Master Drillers to put together a programme to standardise training. At the same time we brought in the community leaders and local authorities to ensure there is fairness in employment.”

Having seen the problems that can rise in large projects such as the stadium building programme for the 2010 World Cup and some of Eskom’s energy programmes, he believes it’s important not to over-fuel community expectations, while making sure that community based service providers get a fair share of the

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RD8 Raise Bore machine being constructed on site

“We brought in the community leaders and local authorities to ensure there is fairness in employment” – Maboko Mahlaole, Acting CEO

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PA L A B O R A M I N I N G C O M PA N Y ( P M C ) cake. The main contractors are encouraged to source and outsource locally, employing as many skilled people as they can rather than bringing in workers from other states or abroad.

Environmental management has always been a part of Palabora culture. “We live side by side with vulnerable fauna and flora; we need to look after that as well as the safety of our employees. For example we need to look after the Limpopo river that runs through our mine – it provides sustenance to many communities in South Africa and through into Mozambique.”

PMC has a total demand of 110MW across its site. In 2012 Palabora Copper engaged The Concentrator facility at the mining site

“If you do not pay attention to what is happening around you may not survive long as a business!”

– Maboko Mahlaole, Acting CEO

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the Australian energy consultant Ensight to review its energy expenditure, during which process it identified $20 million of potential savings. Three years on the exercise has really delivered. “We saved $5.3 million in energy costs, received R 23.1 million from Eskom in recognition of our performance, saved enough power for 77,400 households plus enough water to sustain 2,050 elephants for a year, and cut greenhouse gases weighing as much as 12,850 fully grown elephants!”

Continuing the analogies, his favourite one is that enough coal was saved to drive a steam train from Cape Town to Cairo and back, 17 times.

“It has gained us awards and set an example to other big businesses in the country. In our way we are trying to fight climate change and contribute towards good environmental practices,” he says.

For Maboko Mahlaole, who has been tackling employment issues for 35 years, people come first. “I am optimistic that the focus is not now solely on the individual – there is a new concern for communities. If you do not pay attention to what is happening around you may not survive long as a business!”

Perhaps that’s why PMC has seen very little in the way of industrial discontent (over a period of some turmoil in the country as a whole).

There is no migrant labour here, living in camps.

Almost all of the 2,400 employees working at Palabora live en famille within 20 kilometres of the mine, coming to work on company buses.

Company Information INDUSTRY

Copper Mining HEADQUARTERS

Limpopo, S.A. FOUNDED

2012 EMPLOYEES

2,400 REVENUE

R4 billion PRODUCTS/ SERVICES

South Africa’s large copper mine, smelter and refinery complex.

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ADVANTAGE in the Extraction of Precious Metals Written by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations at WDM Group-LATAM Intervewee: Guillermo Adrian, CEO for Primero Compa単ia Minera

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August 2015

In less than a decade, Primero’s mining activities in North America delivered superior quality, standing out from its competition and producing high revenue

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V.

M

ala Noche Resources was conceived in 2007 as a prospecting company in Mexican territory. Three years later and after the acquisition of the San Dimas mine, in the State of Durango, the venture’s commercial name became Primero Mining Corp.

The project Grey Fox

In 2010 the company became public, as its stocks entered NYSE, and soon after these were also traded at the Toronto Stock Exchange.

During the last four years, Primero has sustained growth both organically and through acquisitions, as it happened with the purchase of Cerro del Gallo mine in the State of Guanajuato, and expanding its operations into Canada, in Black Fox mine, located in Timmins, Ontario.

is currently under exploration and construction at Cerro del Gallo.

Primero currently holds a reputation as one of the main precious metal producers in North America. And even with setbacks, such as a delay from the Mexican government to grant authorization to export silver, the company maintains its projected production for the rest of 2015: · Gold production: 220,000 oz. to 240,000 oz. · Silver production: 6.5 million oz. to 7.5 milion oz.

“We expect to be granted our silver exporting license soon enough. It’s not like we have lost any

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silver, but this means we are experiencing a delay in selling, also,” expressed Guillermo Adrian, CEO of Primero Mining Corp. Adrian has a 25-year experience in the mining industry; his leadership at the forefront of Primero has been instrumental for the company when it went from a junior enterprise to become a mid-level company.

Operations in Mexico and Canada Prime Mining Corp. prospecting and mining operations are based in three locations: 1. San Dimas mine: it contains some of Mexico’s most fruitful gold and silver deposits. The quality of this mine’s extractions is first class. San Dimas is an underground mine which relies in mechanical procedures for its operations.

Key People

Guillermo Adrian CEO for Primero Compañia Minera

Venezuela-born Guillermo Adrian graduated from Simon Bolivar University (in Caracas), where he graduated as Metallurgical Engineer. Adrian’s experience spans for more than 25 years in aluminum and gold extraction in different companies in the continent. He is currently the CEO for Primero Mining Corp., a position he holds since 2013.

Side view of Primero’s plant in Mexico w w w. p r i m e ro m i n i n g . c o m

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Cutting-edge machinery for exploration

2. Black Fox complex: Canada’s richest gold deposits are located in this mine, near Timmins, Ontario. With its restructuring process finally over by 2010, this site is fit for both surface and underground mining. Black Fox provides a repair shop for heavy machinery, a laboratory, corporate offices, one water-extraction pump to combat fires and a spare building.

Inside the plant

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3. Cerro del Gallo project: 69.2 percent of Cerro del Gallo belongs to Cerro Resources NL since May 2013, the rest (30.8 percent) belongs to Goldcorp since December of that same year.

After delivering a solution to permit issues in 2015, the project is ready for development and surface extraction of copper, gold and silver.

SECTOR

Every miner is properly trained in safety measures

Also, Primero is engaged in prospecting projects in the Ventanas mining district, south of San Dimas; and in the Grey Fox gold prospecting project within the Black Fox complex.

Mexico’s Competitiveness The San Dimas mine, managed by Primero, is one of Mexico’s mining landmarks. This Sierra Madre Occidental deposit is located between the states of Durango and Sinaloa. It was founded more than 300 years ago, and it maintains a high productivity level under current management.

“Our productivity is a distinguishing factor, since we’ve been successful at increasing

“We are committed to become a mid-level company in the short term” – Guillermo Adrian, CEO for Primero Compañia Minera

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V.

extractions even with this mine’s narrow veins,” Adrian said.

San Dimas produces a daily average of 3,000 tons, with a monthly drifting of 1.24 miles (well above any similar sector’s parameters). To explain this, Adrian compared two of their projects: “The same developments that take a year for us to complete in the Canadian project, take a month around here,” the executive added about the 435 miles of regularly explored tunnels at San Dimas.

Taking the steps from being a junior enterprise to a mid-level company

Human Resource Management Primero is committed to improving the

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inhabitants’ quality of life at Tayoltita, Durango.

The municipality’s conditions are below nationwide standards for wellbeing; this is why the mining company reaches out to help in providing its population’s access to education and other resources to improve socially and economically.

Primero’s academic support consists from basic literacy lessons to scholarships for postgraduate studies, meaning its staff’s development is not an afterthought for the company. “Some of our managers were machinery operators at one point, but their effort in obtaining an education paid off; Jose Varelas, our mine manager, started as a drilling operator in Primero,” Adrian shared.

High-level procedures

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Safe. Reliable. Robust.

Servicing Mexico for more than 20 years.

Joy is a trademark of Joy Global Inc. or one of its affiliates. Š 2015 Joy Global Inc. or one of its affiliates.

www.minerodiesel.com.mx

L AT I N A M E R I C A

Primero has also displayed efforts to bring the gender gap closer by establishing integration programs, and afterwards developing technical training programs for Tayoltita’s housewives.

Many female workers started also as drilling operators and earned promotions into higher positions such as mine planning. “Members of our female staff could continue with their education in programs we made available for them and once hired by Primero they could move upwards into better positions,” said the CEO. Regarding safety, Primero has improved yearly in accident prevention as a result of providing its personnel of proper training in safety measures and operation of newer, safer equipment.

“Reducing accidents in 80 percent is no satisfactory feat for us; we keep striving to achieve improvements in this area not only through the latest technology, but also by educating and directing our staff toward a workplace safety culture,” Adrian stressed.

Commitment to the Environment Primero’s efficient tailing disposal management is optimized by a filtering system able to eliminate any trace of humidity; this process forms a dry mass that can be compacted up to 90 percent.

“Without our workforce, collaborators and employees, the mine would not exist. They are our main concern not just in terms of safety, wellbeing and social programs, but also in creating a pleasant working environment” – Guillermo Adrian, CEO for Primero Compañia Minera

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V. Compared to other companies in the sector, Primero Mining’s cyanide emissions are well below average due to purifying procedures able to eliminate cyanide almost in its entirety, with help from sunlight to eradicate cyanide from the ground. “This is a state of the art procedure for waste disposal in gold extraction, creating a distinguishing factor in our processes,� the CEO added.

Top-level procedures

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Primero is supported by Amec Foster Wheeler in the mining company’s compliance of environmentally-friendly procedures; as the British company performs quarterly inspections of Primero’s deposits.

Projections: 2016 and the Next Five Years The San Dimas mine will be subject to a 62-mile per year exploration program. Cerro del Gallo’s facility will expand to make room for their leaching processes.The Ventanas mining complex, 12 miles from San Dimas, is still in exploration stages.

Company Information NAME

Primero Empresa Minera, S.A. De C.V. INDUSTRY

Mining HEADQUARTERS

Tayoltita, Durango, Mexico FOUNDED

“We are committed to become a mid-level company in the short term,” stressed Adrian.

To achieve this goal, Primero is in search of new properties for exploration and prospecting, providing existing operations of means to double current production, bringing organic growth to the corporation. “We are also on the lookout for possible opportunities such as acquisitions, mergers and joint ventures,” Adrian stated.

2007 EMPLOYEES

1.200 REVENUE

USD $275 million WEBSITE

www.primeromining.com

Revenue from gold and silver reserves and extraction w w w. p r i m e ro m i n i n g . c o m

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Machinery Holding

GIANTS

Security and technology, two of the qualities that make up Atlas Copco Chilena vanguard equipment.

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Written by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations at WDM Group-LATAM Interviewee: Andrzej Zablocki, Senior Business Development Manager, and Charlie Ekberg, Managing Director of Atlas Copco Chilena

AT L A S C O P C O C H I L E N A S . A . C .

Atlas

Social: Celebrating the Atlas Copco Safety Day

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Copco is a global company engaged in the manufacture of industrial machinery.

Originally from Sweden, where its foundation dates back to 1873, and where the company headquarters are based in the city of Nacka.

With more than 140 years of experience manufacturing industrial equipment, Atlas Copco has a history filled with milestones, including being one of the best companies producing large mining equipment and with a global operation in more than 20 countries around the globe.

This global growth reached Chile in 1954, with the establishment of Atlas Copco Chilena, a subsidiary following the same emphasis on quality and sustainable productivity than the corporation, whose products and solutions have not only provided improvements to various mining and construction companies in Chile, but have developed the country’s infrastructure, such as the installation of new lines in Santiago’s subway, where Atlas Copco technologies made a difference in this realization.

Every innovation launched by Atlas Copco Chilena, goes hand in hand with operational safety procedures. These factors have kept the producer as a national and international leader in the industrial machinery sector.

Currently, Atlas Copco Chilena has seven branches throughout the country, and its services are divided into four business units:

L AT I N A M E R I C A

1. Industrial Tools and Assembly Systems 2. Technical Construction and Energy Transportable 3. Air and Gas Compressors 4. Techniques for Mining and Rock Excavation In addition to having big mining as some of their biggest customers, Atlas Copco Chilena has diversified its solutions, providing equipment for the food industry, and machinery for civil and construction works.

Distinctions Aside from a range of distinctive quality products associated with Atlas Copco, innovation is another hallmark the company integrates to complete an industrial evolution. As manufacturing experts, they impart workshops on the use of all new Atlas Copco technologies,

Atlas Copco technology for underground drilling

Key People

Ing. Andrzej Zablocki Senior Business Development Manager Originally from Poland, Zablocki is a Mining Engineer (Technical University in Wroclaw, Poland 1967). Currently, he serves as Senior Business Development Manager for Atlas Copco Chilena. B Between 1967 and 1970, he worked in several mining companies in Poland and Finland.

From 1970-1982, he served as product manager at Atlas Copco Finland.

With his vast experience, he has written several articles on the development of tunnels and drilling with modern technology, published in specialized magazines of Chile, Peru, Finland and Poland. He has also participated as a speaker at various seminars on the mechanization of mining in South Africa, Peru, Argentina, England, Finland, Sweden, Mexico and Poland. He is also coauthor of manuals in Mining Engineering and Civil Engineering, published in Finland.

Regarding his profession, he is a partner and participant in the activities of the Institute of Mining Engineers of Chile, Finland and Poland. For his professional work and social activities, he has received several awards, among which are: “Knight’s Cross of Merit of the Republic of Poland” (1994), “Cross of Commander of Merit of the Republic of Poland” (2004) “Medal of Recognition of the Chamber of Deputies of Chile” (2004) and in 2008, he received for the second consecutive year a recognition for his outstanding professional job in mining in Chile.

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C O M PA N Y N A M E

During the opening of the Skills Development Center - CDC

providing the necessary updates to direct operators on the best techniques when managing mega-equipment.

As major suppliers in the mining industry, Atlas Copco has set a plan of action every time a new product is incorporated into the portfolio, including post-sale services that ensure the longevity of the equipment.

Pit Viper, the best surface drilling technology in the world

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August 2015

“During workshops we not only introduce new technologies, but are aware of what these customers expect from us,� said Andrzej Zablocki, Senior Business Development Manager for Atlas Copco and an engineer who has been part of this company for more than 45 years,

SECTOR

Technical service for construction

through its branches in Poland, Finland and currently in Chile.

Developing Competencies Following a developing trend, the company will optimize their human resource through the expansion of Atlas Copco Chilena Development Centre (Centro de Desarrollo de Competencias - CDC), which focuses on increasing major technical skills in mining and excavation, based on the Mining Skills Council methodology.

Atlas Copco Chile, helping big industries in Chile

CDC plays a stepping role during the continuous training of Atlas Copco Chilena employees, and in the technical education of operators and engineers from other related companies in w w w. a t l a s c o p c o . c l

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AT L A S C O P C O C H I L E N A S . A . C .

Inside the plant in Santiago, Chile

the country, forming some of the best talent in Chile and raising national standards. “The CDC has training rooms, modern simulators for different types of equipment and real cabins. This type of training improves skills in mining equipment operators, which so many of our clients need to incorporate 70

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L AT I N A M E R I C A

into their workforce. In the near future we expect more innovation from this center,� said Zablocki.

These advances in human management, decreased staff turnover at Atlas Copco Chilena, which means that their employees are more than happy to work with a revolutionary company whose key to success is w w w. a t l a s c o p c o . c l

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AT L A S C O P C O C H I L E N A S . A . C . investing in human knowledge.

Another major participant in the formation of talent are their suppliers, who in alliance provide joint training.

Atlas Copco Chilena was recognized with the award for the best performing company in Quarry Mining

Revolutionizing the Mining Industry with New Technologies Although the mining industry ensue traditional procedures, Atlas Copco Chilena has evolved with solutions that maximize productivity, raise customer satisfaction, follow sustainable trends, and optimize deadlines at lower operating costs.

To speed up this industrial modernization, the company has trained several technicians in various Atlas Copco locations. “Three years ago we began transmitting this automation in mining, in both open pit and underground mining. Today we are developing several projects to introduce this new equipment with companies such as Codelco, Anglo American and Pucobre,� said Zablocki.

Equipment: Technological solutions for mining, construction and various industries

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August 2015

Growth Expectations Currently, Chile is experiencing one of the most important changes in the mining sector, with mega projects being redesign from open pit to underground mining due to the new environmental model.

Although Chile has some of the largest mines in the world, with 32 percent of the global

L AT I N A M E R I C A

copper production and 30 percent in global reserves of this mineral, only 35 middle-size mines have an underground operation, something that indicators translates into 12 percent, but by 2023 this could triple followed by a sustainable trend up to 40 percent. “Companies are redesigning their projects with the new regulation of underground mining given environmental problems, so there is a high need for both vertical and horizontal mining developments,� said Zablocki, indicating that in the case of rigs, the company has been recognized as a world leader for years.

In the next five years, Atlas Copco Chilena would increase demand mainly in Scooptram equipment, such as the new generation ST14 / 18 and low profile trucks 60 (MT65) or with more tonnes, to continue with big projects in Chile.

THE INTERVIEW

B

usiness Review America Latina, also had a second interview with the CEO of Atlas Copco Chilena, Charlie Ekberg. Ekberg is an economist from Swedish who began his career with Atlas Copco Group in 1986, since then he held various posts in the area of finance and

Key People

Econ. Charlie Ekberg Managing Director of Atlas Copco Chilena The new CEO of Atlas Copco Chilena, is of Swedish origin and started his career in the Group in 1986. Ekberg has held various positions in the area of finance and business control. He has extensive international experience in countries like the US, UK, Sweden, South Africa, Chile and Ecuador.

The executive served as CFO for Drilling Solutions (ADS) of Atlas Copco division since 2008. Prior to his current position, he held the post of Manager of Business Development for Industrial Technique and General Manager of the Production Unit Tooltec in Rock Hill, South Carolina. Previously, he was the controller at the Chicago Pneumatic (CP) division, between 1999 and 2006.

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AT L A S C O P C O C H I L E N A S . A . C . business development. “Since my incursion in Atlas Copco group I developed my international career in the US, UK, Sweden, South Africa, Chile and Ecuador. I was the controller for the Chicago Pneumatic (CP) division between 1999 and 2006, then I took over as CFO for Drilling Solutions (ADS), a division of Atlas Copco in Garland, Texas, since 2008 until my return to Chile,� said the CEO. A look inside the premises of Atlas Copco

Here are some of his answers and business projections.

BRAL: Which technological advances the company plans to launch in 2016?

EC: For the remainder of 2015 and 2016, Atlas Copco Drilling Solutions will be working on several automation projects with international mining companies operating in Chile, we are focused on obtaining performance indicators that directly benefit the productivity, safety and life of rigs. These projects include Pit Viper operative fleet and managed from the office, an operator managing multiple teams and to the full autonomy. Additionally, we are planning to Introduce a remote operation at about 300 meters, from a safe distance in high-risk areas.

In 2016, we will consolidate multipurpose equipment, designed for diamond and reverse air exploration, and we will finalize the construction of water wells.

In terms of equipment for underground mining,

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the Underground Rock Excavation division is launching in late 2016 or early 2017, the new rig Boomer S2C, with Rig Control System (RCS) technology, which will replace Boomer 282.

In drilling surface, we plan to fully incorporate between the remainder of this year and 2016, the BenchREMOTE (remote control) technology in D65 SmartROC equipment.

These innovations in exploration launching in 2016, are mainly related to the incorporation of technology in telecontrol equipment. Such as Rod Handler (RH) technology for Christensen CT-20 equipmente; Rig Control System (RCS) and RH (Rod Handler) technology for Diamec, plus equipment for underground operations and we are also launching Christensen CS-140 machinery.

Distribution Center La Farfana

BRAL: Regarding added value, what can you offer to your clients?

EC: In addition to the technology we have, our teams in Chile have first class infrastructure that allows us to meet the requirements of our customers. We have headquarters in Santiago, where we perform service workshops in the areas of mining, construction, compressors, etc.

We also have a modern distribution center located in 5,000 m2, keeping in stock 9,000 sow products and spare parts. Our logistics capabilities allow us to ensure optimal delivery times to our seven branches throughout the country. w w w. a t l a s c o p c o . c l

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AT L A S C O P C O C H I L E N A S . A . C .

And to complement the work we do every day with our customers, we have a modern Skills Development Center, which allows train technical staff from both the company and customers. Inside a center larger than over 1,700 m2, we offer state-of-the-art equipment such as simulators and technical laboratories that allow maintenance and operational training in similar real environments.

Front view

BRAL: As a major supplier of mining equipment, what makes a competitive difference in logistics?

EC: Clearly what made the difference in our service and has been transformed into a fortress, is the efficiency of our supply chain, this refers to the response times, supply factory lead time and delivery time in Chile.

Also the human resource is vital, and it is this resource that gives life to the supply chain. The training and education of capital in Atlas Copco has been vital in this respect.

The company’s success depends not only on how well you play, but also how well you compete throughout every channel.

BRAL: What are some of your sustainable initiatives?

EC: One of the core values of our company is to provide market-friendly products and services to the environment.

In Chile we have triple certification under ISO

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14001, ISO 9001 and OHSAS 18001, these are worldwide standards that has put Atlas Copco in the 23rd position among the latest Global 100 Index, which includes the 100 most sustainable companies in the world; and it has been built consecutively in the index of sustainability of Dow Jones, so that the commitment to sustainable productivity is not only on paper but also put into practice every day. Our teams are looking to meet this commitment in sustainability by generating significant savings in energy consumption; and by using machinery that delivers a maximum operating safety, either through ergonomic designs for better performance, or simply by incorporating new technology and equipment that can be handle completely by the operator.

We have further developed products that take advantage of renewable energy such as solar lighting towers, which have an excellent performance in mining.

BRAL: What is the importance of suppliers, local partners and strategic alliances in the success of Atlas Copco Chilena?

EC: Our suppliers are very important for business continuity; they collaborate in services provided

by Atlas Copco and are customer focused by meeting deadlines and delivering a product or service quality. Additionally, our suppliers are always thinking about the satisfaction of our clients, they are very important in each process; they function as a significant link to complete all w w w. a t l a s c o p c o . c l

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AT L A S C O P C O C H I L E N A S . A . C .

Atlas Copco Chilena, celebrating 60 years of growing with Chile, 1954-2014

objectives of the group Atlas Copco. All this is reflected from the company that makes the toilet, to the ones that maintain cleanliness and order in every job or workshop, etc.

As we know, the delivery of a product or service to buyers requires building relationships not only with customers but also with key suppliers in the supply chain of the company. This chain consists of superior partners (group of companies that promote raw materials, components, parts, information and expertise to create a product or service) and lower members (are marketing or distribution channels customer focused).

L AT I N A M E R I C A

From the above we can discern that the suppliers, local partners and strategic alliances are vital to the success of Atlas Copco.

Company Information NAME

BRAL: What is your feeling after receiving performance recognition in the sub-segment Quarry of the fourth ranking of suppliers made by the mining industry in Chile?

EC: This recognition, which is delivered through the good comments made by our clients, make us realize that we made a first class job in the country and through the concrete proof of technological advances with improvements applied to equipment, and good after sales services that make the difference in the relationship with our constituents. To appear in this ranking is undoubtedly a reflection of the success we’ve had with our operations in Chile.

“In the workshops we do not only introduce new technologies, we want to know what our customers expect from us by exchanging ideas”

Atlas Copco Chilena S.A.C. INDUSTRY

Mining, construction and industrial equipment HEADQUARTERS

Santiago, Region Metropolitana, Chile FOUNDED

1954 EMPLOYEES

837 REVENUE

USD $260 million (2014) WEBSITE

www.atlascopco.cl

– Andrzej Zablocki, Senior Business Development Manager w w w. a t l a s c o p c o . c l

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Value from

MINING invested in energy and infrastructure Grupo Mexico’s mining operations result in railways and other infrastructure resources to provide business and community development, with the sight on the opening of the energy sector.

Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group - LATAM Interviewee: Xavier Garcia de Quevedo Topete, President of the Infrastructure Division for Grupo Mexico

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GRUPO MEXICO

T

Social initiative: Providing healthcare services to the community

he key to Grupo Mexico’s burgeoning ventures is the integration of business units able to relate and support each other, taking part in a large, wholesome scheme.

The construction company that started it all during the 1940s became a mining company after a quarter of a century. The mining operation evolved into surface mining, which brought Grupo Mexico the opportunity to invest abroad.

Afterwards, the corporation broadened its reach toward the freight trains industry, experiencing constant growth from 9 to 25 percent, after investments of more than $5 billion over a 17-year span.

Since the mid-2010s, Grupo Mexico is aware of upcoming business opportunities and other positive changes derived from the country’s energy reform, since its Infrastructure division already took part on the construction of a wind farm and two combined cycle power plants, among other ventures.

Efforts by Grupo Mexico have resulted in taking the country up the ladder among the largest copper, silver, molybdenum and zinc producers, globally.

“We believe in the Mexican energy reform, our organization has the capability to discover new oil fields and increase its production,” shared Xavier Garcia de Quevedo, President of the

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Infrastructure Division for Grupo Mexico. Garcia de Quevedo was first hired for Grupo Mexico in 1969; he has witnessed the corporation’s growth and diversification since the days in which mining was its only activity.

Key People

Business Units Benefitting Own Companies and Clients Grupo Mexico’s successful mining operations currently take place in Mexico (La Caridad and Cananea, both in the State of Sonora), in the U.S. (ASARCO surface mining operations, foundries and copper refineries in Arizona and Texas), and in Peru through Southern Copper Corp. (Toquepala, Cuajone and the Ilo metallurgy plant). The corporation trades as GMEXICO in its home country’s stock exchange. New extraction ventures are on their way in Argentina and

Xavier Garcia de Quevedo President of the Infrastructure Division for Grupo Mexico He joined this corporation as an engineer of metal production in 1969. He is also the former President of Minera México and the Northamerican mining company Asarco Co. Under the management of Garcia de Quevedo, he developed a new business unit, rail freight in 1988. He is currently Chairman of the Division of Infrastructure at Grupo Mexico, and among his tasks is the development of mining projects. Additionally, he participates as a member on the boards of all the companies of Grupo Mexico.

García de Quevedo has served as president of the Mining Chamber of Mexico (2006-2009) and he is also member of the executive committee.

Greenhouse w w w. g m e x i c o . c o m . m x

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Truck drivers in Buenavista del Cobre copper mine

Power generation plant

Ecuador, also; and most recently, Grupo Mexico was tendered the Aznalcollar extraction project in the Iberian Pyrite Belt, located between the south of Portugal to Sevilla, in southwestern Spain.

These set of projects Grupo Mexico’s main assets to keep the corporation atop the three largest copper producers on the world.

The freight railroad operation, settled mainly in Mexico’s northwest, is an important network quite by itself by extending into eight important cargo ports located in the Pacific Ocean, the Gulf of California and the Gulf of Mexico; it’s also a link to five border crossing stations to the U.S. This network provides Grupo Mexico of leadership among Mexican railways.

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SECTOR

Human resource at Buenavista del Cobre in Sonora

Grupo Mexico’s coveted stocks and satisfying financial reports for shareholders are the result of interrelated factors: operating in different business areas such as mining, freight trains, energy, infrastructure, gas and oil drilling, and industrial construction. These business units are driven by a constant increase in efficiency, cost reduction, and development and career advancement opportunities for its human resource.

“To sustain our leadership, we must strive on continuous performance improvements, benchmarking, as well as relying on the best possible technology,” Garcia de Quevedo explained.

“Opportunities exist, but we must look and develop them...

We are more satisfied when we create jobs and generate value” – Xavier Garcia de Quevedo, President of the Infrastructure Division at Grupo Mexico

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GRUPO MEXICO

State-of-the-art technology in mining

Energy Reform: More Than Hoping Into the Bandwagon

Sustainability in Grupo Mexico: entire families take part on

Grupo Mexico is serious about the country’s energy reform; the particular feel voiced by its high management about upcoming changes, is for mining to be granted the same relevance energy receives, considering similarities between both sectors.

reforestation efforts

The corporation’s experience in drilling trails back to 1959, both for oil and gas reservoirs located on land and sea. Recent investments of $1.2 billion were destined to six offshore platforms and three land rigs, enabling Grupo Mexico to take part in the opportunities brought by this reform.

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Grupo Mexico’s exploration

“Proper policies and regulations for the sector can create the best conditions to make the most out of these sectors,” the executive pointed.

Environment and Community High management at Grupo Mexico shares the same philosophy with the rest of the organization: every business unit is concerned with finding a balance of compatibility between mining activities and a genuine care for the environment and surroundings.

“Mining grew in an important way due to suitable policies in recent years” – Xavier Garcia de Quevedo, President of the infrastructure Division at Grupo Mexico

Before beginning any new project, the company establishes a relationship with communities surrounding their projects; this way, Grupo Mexico gets to know the inhabitants’ needs and w w w. g m e x i c o . c o m . m x

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QUIMICA TEUTON, S.A. DE C.V. Qu铆mica Teut贸n is a 100% Mexican private Company with 27 years of history in operations serving the mining industry.

Chemical products sales for ore concentration (Cu, Mo, Pb, Zn, Fe, Au, Ag, etc) Product portfolio applies to diverse unit operations in the mining industry such as grinding, floating, thickening, filtration and water treatment.

www.quimicateuton.com.mx

GRUPO MEXICO

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priorities in order to benefit the community and landowners. Some of the towns and villages near the corporation’s mining projects host a “Casa Grande” community center, where locals are able to share resources they would hardly have access to had Grupo Mexico chosen not to engage in a project in their area.

Another priority for Grupo Mexico and its vast engineering staff is to continuously upgrade their machinery, as it is no secret that the latestgeneration equipment will inflict a less negative impact on the environment.

First class iInfrastructure

“It should be a priority to develop some kind of scheme in which mining and oil drilling coexist in protected environments,” the executive stressed.

Required Skills for Candidates Each of Grupo Mexico’s business unit carefully detects and chooses highly skilled professionals.

These individuals embark on successful careers, developing leadership and becoming fully involved in the company’s endeavors and projects. This selection process is a key factor to accomplish set goals in every business unit.

“Much of our group’s success and growth owes to our efforts in developing the best elements a staff could have,” Garcia de Quevedo said.

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GRUPO MEXICO The Future Remains Positive for Grupo Mexico

Efforts of the Grupo Mexico Foundation

Having developed three successful business units in continuous growth, Grupo Mexico must maintain on top of every feat leading to new business opportunities which may contribute to its operations network, thus benefiting also other industry sectors.

Mining operations are currently under expansion; the Buena Vista del Cobre project (in Sonora, Mexico) is expected to surpass the million tons of copper mark during 2015. The Tia

L AT I N A M E R I C A

Maria mine (Arequipa, Peru) is projected to deliver 120,000 tons of copper, once local authorities concede the required permits. Also in Peru, the Toquepala mine’s expansion received a $1.4 billion investment to maintain productivity at a 100,000 tons a year average.

Company Information NAME

Grupo Mexico INDUSTRY

Latest explorations include the “El Arco” copper deposit, in the Baja California peninsula; the area in which “El Arco” is located is being provided of the necessary infrastructure before beginning excavation and mineral extraction.

The tender earned to work in the Iberian Pyrite Belt, along with current ongoing projects and production levels could triplicate Grupo Mexico’s zinc production.

Mining, Transportation, Energy, Construction, Infrastructure HEADQUARTERS

Mexico, Distrito Federal, Mexico FOUNDED

1942

The Infrastructure division is also involved in a very important project: the construction of a highway between the cities of Salamanca and Leon, both in the State of Guanajuato, of the “Bajio” zone, where an important industrial cluster (mainly automotive) is located, keeping busy all currently available routes.

EMPLOYEES

29,800 REVENUE

USD $10 billion WEBSITE

Upcoming business opportunities for Grupo Mexico would exist as a result of the current reforms and the grade in which the new laws could ease trade and infrastructure development.

“We are seeking other companies that share our same values and goals, that share a desire to invest in Mexico,” Garcia de Quevedo concluded.

www.gmexico.com.mx

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Hastings Deering

An inside look at the largest Cat dealer network in Australia

Strong supplier relationships and a belief in core values has allowed Hastings Deering to deliver high-quality products and outstanding customer service for over 80 years Written by: Jennifer White

Produced by: Glen White

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Dean Mehmet, CEO

“Our organization is here for a reason, and that is to make our customers better at what they do” – Dean Mehmet, CEO

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egend has it that the opportunity to launch one of Australia’s most impactful organizations occurred by chance: Harold Hastings Deering, a British-based fighter pilot during WWI, reportedly landed his plane in an AEC factory yard and refused to leave until the company had agreed to let Deering distribute their trucks and buses throughout Australia.

Sounds more like a seized opportunity than an optimized occurrence.

SECTOR

Founded in 1932, the Hastings Deering Group has spent the last 80 years successfully navigating the mining and construction sectors by maintaining a similar sense of ambition and vision. Today, with nearly 5,000 employees spread across four countries, Hastings Deering is the largest Caterpillar dealer network in Australia, and one of the brand’s premier distributors across the globe.

This “one-stop-shop” offers the highest quality equipment, parts and attachments as well

Hastings Deering is the largest Caterpillar dealer network in Australia

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HASTINGS DEERING

Field Service – regional footprint (this is from a recent commercial engines shoot with Santos)

as support-based services that include maintenance, repair and technical training, to the mining and construction sectors.

Hastings Deering also applies innovative, technology-enabled solutions to these offers so as to help customers improve productivity, safety and profit.

“Our organization is here for a reason, and that is to make our customers better at what they do,” explained CEO Dean Mehmet, who joined Hastings Deering in 2012 with an impressive background that included senior roles at BlueScope Steel and Shell Australia.

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Industry challenges Mehmet’s intimate knowledge of the industry coupled with his passion for leading others has proven vital to his role as CEO of Hastings Deering, especially as he and the leadership team work to overcome the negative repercussions that have surfaced as a result of recent industry-based fluctuations.

“A large part of our business supports mining in Australia, and while we’ve experienced more than a decade of sustained growth within that industry, the recent global slowdown has been quite dramatic,” Mehmet explained.

Navigating this industry-wide

AUSTRALIA

decline has not been done without casualties: Hastings Deering has experienced two workforce reductions in just 18 months, and an estimated 12,000 jobs have been lost throughout Queensland overall.

According to Mehmet, Hastings Deering relied on the company’s core values to help throughout this time, remaining transparent and preserving integrity through honest and open communication with team members.

“We continue to explain what is going on to our staff – whether we like it or not – and what impact it has on our organization and the individuals we employ. There are no surprises.”

“Technology is becoming more and more advanced, and we feel that these ever-changing innovations require us to stay ahead of the pack and provide better training” – Dean Mehmet, CEO

Rebuilding post-decline Mehmet and the leadership team at Hastings Deering know that the storm is not over but are w w w. h a s t i n g s d e e r i n g . c o m . a u

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Providers of Choice for Light Commercial Vehicle Rental and Lease Solutions Corefleet, a sister company to Hastings Deering and part of the Sime Darby group of companies, is a leading national fleet services organisation.

With a network of branches across Australia, Corefleet is recognised as a supplier of choice in the provision of light commercial vehicle rental and lease solutions.

CORPORATE OFFICE 18 Bellows Street, Welshpool WA 6106 PO Box 612, Welshpool DC WA 6986 T: +61 8 9333 4333 F: +61 8 9333 4334 E: info@corefleet.com.au

Visit corefleet.com.au Freecall: 1800 636 544

Perth (WA) • Ginbata / Roy Hill (WA) • Port Hedland (WA) • Kalgoorlie (WA) • Karratha (WA) • Newman (WA) Brisbane (QLD) • Mackay (QLD) • Blackwater (QLD) • Moranbah (QLD) • Singleton (NSW) • Sydney (NSW)

HASTINGS DEERING

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stepping up as industry leaders to help prevent another dramatic downturn.

“After reductions, the most difficult thing about this [industry decline] has been trying to communicate with staff and customers that we need to do something different; the super cycle is over and the market is demanding change,” Mehmet admitted. “We’ve spent a lot of time educating our people about the current state of the market and what this means for our business.”

The promotion of capital expenditure is just one example of the comprehensive approach

taken by Hastings Deering.

While the customer is always the priority, supporting the growth and sustainability of the industry overall is also important to Hastings Deering, which is why the leadership team places emphasis on such an approach.

“For new equipment, capex is very tight and many customers have been very cautious, but there will come a time when the old equipment will need to be retired and new equipment will need to be positioned in the marketplace,” Mehmet said. Many of Hastings Deering’s customers

SUPPLIER PROFILE Employees: 100 - 200 COREFLEET (SIME DARBY FLEET SERVICES) Established: 1965 Industry: Mining & Mining Services, Civil Construction/Infrastructure, Oil & Gas Services: Light commercial vehicle rental and lease solutions, light commercial vehicle mechanical services, light commercial vehicle custom design for mining & industrial applications Ongoing Projects: Goldfields gas pipeline expansion, Iron Ore mine in the Pilbara, Operating Coal Mine in the Bowen Basin, Road Infrastructure expansion in Sydney and surrounding region Management: • Des Wilkinson , Managing Director • Jason McDonnell , General Manager , Sales & Operations • David Berryman, National Business Development Manager Website: www. corefleet.com.au w w w. h a s t i n g s d e e r i n g . c o m . a u

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PROBLEMS WITH POOR QUALITY SIGNS THAT WERE WASHED OUT IN 3 MONTHS!

SOLUTIONS! OUR PRODUCT LIFESPAN HAS BEEN PROVEN TO LAST MORE THAN 3 YEARS!

WE'RE THE LEADER IN INNOVATIVE MINE SIGN PRODUCTS THAT HAVE BEEN TESTED AND PROVEN: • Hi-Vis Pin Stripe Kits (for chassis and bodies) • Metal-Back Hi-Vis I.D.’s (6 sizes in height) • Flexible Hi-Vis I.D.’s • Day/Night Illumination I.D.’s (front, rear and sides of dump trucks, water trucks, service trucks, dozers, graders, etc) • Light Vehicle Specialist - Never replace an I.D. ever again, guaranteed!

• Roof Top Boxes for dozers and graders that last

Phone: 07 3208 3440 Fax: 07 3299 2297 Email: info@minesigns.com.au

7/22-26 Allgas Street Slacks Creek QLD 4127 ABN: 42 120 655 987

www.minesigns.com.au

HASTINGS DEERING

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have purchased equipment within the past five or six years, so the company remains focused on maximizing the productivity of those current machines.

“Regardless of how new the equipment is, there is still a requirement for customers to repair and maintain it,” Mehmet continued, “so our product support business continues to help our customers to get the best production from their business.

“At the same time, we have different options to help our customers get new equipment outside of the traditional manner. For example, we’ve implemented additional solutions for invoicing and funding in an effort to help our customers invest and, in turn, support the continued growth of the industry overall.”

SUPPLIER PROFILE

– Dean Mehmet, CEO

MINE SIGNS

Mine signs have become the choice for Mine Signage throughout Australia, With its patented process and innovative solutions, including the day /night highly visible LED I.D solutions and the Robust selfadhesive labels which are the choice for the leading OEM’s .Mine signs are very passionate about solutions that work in the mining environment which increase safety and production and are the best choice for lowering ongoing cost, as the whole of life cost are significantly REDUCED by using the products.. Guaranteed.

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Australian manufacturer of Earthmoving Attachments for Skid Steer Loaders, Backhoes, Tele Handlers and Excavators - Backed by 30 Years Experience

• 4-in-1 Buckets • Loader Buckets • Excavator Buckets • Concrete Buckets • Dozer Blades • Swing Hoes • Tilting Hitches • Rock Grabs • Grass Slashers

• 4-in-1 Brooms • Enclosed Brooms • Open Broom • Angle Broom • Rippers & Hitches • Pallet Forks • Spreader Bars • Spare Parts • Service

MELBOURNE Ph: 03 9775 1965 Fax: 03 9770 8054 3/90 Colemans Road Carrum Downs VIC 3201

For expert advice, quality earthmoving equipment and outstanding after sales service, contact Norm Engineering today! sales@normeng.com.au • www.normeng.com.au

“Hydraulic Rear Ripper” and “Loader Bucket”

BRISBANE Ph: 07 3376 3177 Fax: 07 3376 3201 21 Spine Street Summer Park QLD 4074

HASTINGS DEERING

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The role of smart technology This ongoing desire to support customers was the primary catalyst behind the implementation of smart technology: It wasn’t until the team asked, “How do we use technology to help our customers improve?” that the idea of connected equipment was given life.

“We have a lot of equipment that is monitored by a core team of people back in our reliability center, and we can give real-time advice to customers when there is an issue with a piece of equipment.

“For example, we had a customer with a large piece of equipment

that was being monitored. We noticed a sensor going a bit haywire back in our reliability center, so our condition monitoring analyst phoned the customer to let him know that something was not right.

If it hadn’t been fixed, it very well could have resulted in a catastrophic failure that we later determined would have cost around $1 million in unscheduled and lost production,” Mehmet revealed.

A match made in (mining and construction) Heaven As the largest Caterpillar dealer network in Australia – and one of the

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NQCranes has been at the forefront of the Australian overhead crane industry for over 25 years. With 8 locations around Australia, our services include crane and hoist supply, design, manufacture, servicing and repairs.

HIGH PERFORMANCE - HIGH VERSATILITY

1300 761 822

sales@nqcranes.com.au www.nqcranes.com.au

PRECISION CNC MACHINING MILLING BORING PTA BUILD UP

FABRICATION INCLUDING WELD BUILD UP WORK FITTING – OVERHAULING OF COMPONENTS METAL SPRAY

YOUR ONE STOP ENGINEERING WORKSHOP

“We use the latest technology to offer fast, accurate and high quality workmanship to minimise down time and increase productivity and efficiency for clients.”

Telephone: +61 7 4942 1777 1 Silverton Court, Paget Mackay QLD 4740

Email: office@wernerengineering.com.au Web: www.wernerengineering.com.au

HASTINGS DEERING

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top distributors across the globe – Hastings Deering is able to provide customers with the most up-to-date, cutting-edge advancements in the industry.

While originally based on necessity – Cat needed a local company to partner with when expanding into the Australian market – the relationship between Hastings Deering and Caterpillar today is beneficial for everyone involved, especially the customer.

“We are two organizations that act as one for our customers,” Mehmet said. “We take the global strength of Cat and use it to provide our customers with the highest quality products and services. By applying our local skills and knowledge, we have created a comprehensive product/service offering that really is industry-leading.”

continues to reference the company’s core values as the true foundation of the culture at Hastings Deering.

[SIDEBAR] Hastings Deering: Core Values 1. No harm 2. Integrity 3. Transparency 4. Care Maintaining consistency and alignment across all branches is key to upholding the company’s values, thus creating a positive and culture.

“By communicating the same key messages, we can get everyone to recognize Hastings Deering as one organization with one goal as one team, or oneHD [One Hastings Deering],” Mehmet explained.

Continued growth The leadership team at Hastings Quality products require quality Deering also understands that the people growth of organization can only Mehmet bases the ongoing be successful if those supporting success of Hastings Deering on a the expansion are growing as well. number of things, including supplier From the Hastings Deering Institutes relationships and technological of Technology, which focuses on advancements; however, he future industry leaders, to on-the-

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Field Service – our people and mining equipment

job training courses and workshops for current staff, Hastings Deering believes in education.

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“We’ve always had a successful apprenticeship program with over 440 apprentices currently working

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for Hastings Deering, and we train these students to become highly-qualified technicians.

“We also take time to train our employees.

Technology is becoming more and more advanced, and we feel that these ever-changing innovations require us to stay ahead of the pack and provide better training,” Mehmet said.

A man who believes that all good leaders inspire others by being an example, Mehmet himself took additional steps to “train” for his new role: He joined Hastings Deering in 2012 as COO before stepping up to become CEO in 2014.

“My initial foray into the business as COO was done to provide me with the opportunity to understand how this business works operationally. To spend a couple of years focusing on the engine of the business before focusing on some of the more functional activities was important to me,” he explained.

Ensuring continued growth isn’t just for individual members of the Hastings Deering team: The corporation as a whole is subject to review in the name of improvement.

“We’ve modified and made improvements to our own business to better serve our customers’ needs,” Mehmet revealed. “We’ve had to use lean methodologies to try to improve the deficiencies in our business, but doing so allows us to provide better quality service to customers. We look to ourselves to see what we can improve to benefit the customer from a quality and cost perspective.”

Company Information INDUSTRY

Mining, Construction HEADQUARTERS

Kerry Road Archerfield Brisbane Queensland, Australia, 4108 FOUNDED

1932 EMPLOYEES

~4,000

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Australia Africa Mining Industry Group AAMIG establishes its credentials Written by: Liam Forman

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AAMIG AAMIG establishes its credentials During the four years since being incorporated, the Australia-Africa Mining Industry Group (AAMIG) has established itself as the peak industry body supporting the Australian resources sector operating in the countries of Africa.

AAMIG now has more than 100 members representing explorers, mineral and energy companies, and suppliers of goods and services.

The organisation has carved out an important role for itself in three key areas: • Providing a forum for members to network and share African operational experiences in responsible business practices, • Advocating at an industry level on behalf of its members, and • Assisting members to engage with Australian and African Governments as well as important institutions and other organisations.

Australia’s Footprint in Africa Over the last decade and a half, the footprint of the Australian resources sector on the African continent has grown dramatically with now, more 110

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than [150] ASX-listed companies active on over [1,000] projects in [38] of the 54 countries of Africa. This increased activity has resulted in Australian companies discovering more than $700 billion worth of mineral and coal resources during the five-year period from 200813, accounting for more than one quarter of discoveries globally by ASX-listed resource companies.

Non-Technical Risk Notwithstanding such technical success, for companies to be successful in Africa, in a manner that will be sustainable, they must deal effectively with a number of non-technical risk issues, some of which are Africa-specific. These issues include political and social risk, security and health issues, institutions that often lack capacity to function well, poverty and the adverse behaviour it encourages including bribery and corruption, the occasional unpredictable behaviour of host-country security forces, and many others.

These issues often present as new and unfamiliar challenges to companies from Australia, the

AUSTRALIA

solutions for which are often found only through the “school of hard knocks�. In fact, some might say that unless one has been tested with something going horribly wrong, it may be hard to know how to position oneself to deal effectively with some of the more complex issues that can arise in Africa.

AAMIG provides networking opportunities where members can combine their individual experiences and use this to help position the Australian industry as a whole, with a leveraged international competitive advantage.

Social Licence to Operate

AAMIG promotes the concept that developing and maintaining a Social Licence to Operate is one of the most effective ways to mitigate African risk, particularly political and social risk. It starts with the meaningful engagement of both the host Government and the communities in which one is working.

An increasingly important aspect of developing a Social Licence to Operate is recognising that companies cannot help people permanently with never-ending hand-outs, or by doing for them, things that they could, should, and want to do for themselves. w w w. a a m i g . c o m

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Rather AAMIG helps members to move the social development approach away from a “handout” and the inevitable “sense of dependency” that results from that approach, and more towards a “helping hand up”, and a “sense of ownership, empowerment and selfreliance” for local communities.

Many in the industry now understand that such an enlightened approach to corporate social responsibility (CSR) can be much more than a cost, a moral obligation or a charitable deed – it can be a 112

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source of significant opportunity, innovation and competitive advantage.

Furthermore, AAMIG believes that CSR that is supported by good economic fundamentals is likely to be much more sustainable than that which is driven by moral appeal, philanthropy, licence to operate, reputation or externally imposed box ticking imperatives.

Industry Alignment with the Africa Mining Vision The Africa Mining Vision (2009), a collaborative effort by African

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leaders envisages: “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development”.

AAMIG promotes the view that all mining companies in Africa have an obligation to support this worthy aspiration, enabling the people in the local communities surrounding their operations, the opportunity to be engaged meaningfully and reach their full potential, no matter what that might be. In doing so, companies will find it is simply good for business. One of AAMIG’s roles is to ensure that this happens.

AAMIG’s Guiding Documentation In order to provide greater depth of understanding of the operating concepts being promoted, AAMIG has selected a set of international Guiding Documentation, which is intended to cover the key issues of political and social risk, health risk, governance and human rights and security.

AAMIG has also developed a Social Aspects Management

Handbook and a Gap Analysis Toolkit that complement the guidance drawn from internationally recognised sources such as the World Bank, United Nations, OECD and ICMM. Collaboration with other organisations AAMIG assists members to have meaningful connections with organisations they would not normally be involved with. For example, a number of members of AAMIG are involved with USAID, Chatham House and Public Health England in the IDRAM Initiative, an emerging infectious diseases program, the aim of which is to better prepare a group of copper mining companies in the Katanga Copperbelt, Congo (DRC) to be able to respond more appropriately to emerging zoonotic diseases including in the worst possible cases, outbreaks of Marburg and Ebola.

Collaboration with Governments An Associate Membership of AAMIG for African Governments has been established in order for members w w w. a a m i g . c o m

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AAMIG to meet with African Government delegations biannually to discuss issues of common concern affecting the industry. A key focus is helping to improve the host country understanding of the requirements for attracting direct foreign investment, including the stability of investment regimes, adherence to the rule of law, fiscal regulation and governance.

AAMIG also encourages proactive engagement with the Australian Federal Government and Heads of Mission to African countries and supports the Australian Government’s Economic Diplomacy policy. AAMIG provides the venue for members to be able to work with Australian Government departments and agencies (such as DFAT, ASIO, AG, AFP etc) with the aim of developing an Australian collaborative position for such initiatives.

AAMIG has provided a number of submissions to the Australian Federal Government on major issues including the issue of the facilitation payment defence, Australia’s overseas diplomatic representation and the taxation of 114

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Australian expatriates deployed to African projects.

AAMIG members are involved in actively supporting international initiatives that the Australian Government has signed up to, such as the Millenium Development Goals (MDGs), Extractive Industries Transparency Initiative (EITI) and the Voluntary Principles on Security and Human Rights (VPSHR).

Creating Shared Value Notwithstanding the commonly expressed view that more can be done for communities, the resources industry alone cannot solve and pay for all of the complex challenges faced by African governments and their local communities. As an industry, AAMIG promotes the need to identify and focus on opportunities to create shared value; where socio-economic development has meaningful benefits for society, and is also valuable to business.

AAMIG promotes the concept that creating shared value will ensure continued support by industry.

Opportunities to do this are all around us if we look; for example; enhancing local agricultural

AUSTRALIA

production capacity, encouraging local small business enterprises supplying goods and services, micro-financing opportunities to generate new small business enterprises etc. Goods and services provided locally, rather than imported from another country are likely to result in significant economic benefit both to remote mining operations and the surrounding local communities.

Such enlightened approaches to engaging at the local level create value and in turn make companies more attractive in financial and investment markets (because of reduced operational risk). They also protect value already created through successful exploration and development programs by generating a sense of ownership and empowerment in the local communities that will reduce social and security risk and enhance the ability to sustain the business activity.

Company Information INDUSTRY

Mining HEADQUARTERS

Suite 9, 1297 Hay St, West Perth 6005 FOUNDED

1995 KEY PEOPLE

Trish O’Reilly CEO

Final Comments AAMIG’s efforts are directed towards building positive and productive relationships between business and governments, local communities and society in general, establishing a greater sense of collaboration resulting in a move away from treating business success and social welfare as a zero-sum gain.

With business success comes the opportunity for significant socio-economic development. Poverty reduction needs to be aligned with regional economic growth in order to be successful. AAMIG’s purpose is to help the resources industry to be engaged productively with all relevant stakeholders to ensure that this happens to the benefit of all. w w w. a a m i g . c o m

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Civmec Global strategy, universal success

CEO Pat Tallon discusses Civmec’s history of growth, current projects, and plans for the future Written by: Sasha Orman Produced by: Bryan Giles

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C O M PA N Y N A M E

Civil works site at Marandoo

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stablished in 2009, Civmec has seen a rapid rise to the top of its game. With a keen business strategy and a multi-disciplinary approach, it has become a leading construction and engineering services provider to Australia’s booming resources and infrastructure industries. With several major projects under its belt, Civmec is now poised for even further growth at home and on the global stage.

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Strategy from the start Civmec has enjoyed growth quarter after quarter, and not by happenstance. Strategy has been built into the company from Day One, starting with location. “When we established this business in 2009, a big component for us was to secure a location at the Australian Marine Complex so we had direct access to the wharf to offer greater transport options for our clients,� says Civmec CEO

SECTOR

Pat Tallon. Since constructing a 29,300 square metre manufacturing workshop as a home base at the wharf, Civmec has since expanded to more than 120,000m of prime waterfront land, through the further establishment of a Surface Treatment Facility, Specialist Subsea Facility and Operational Readiness Facility.

But location is just one of three key factors that Civmec attributes to its swift success. Another key is its focus on collaborative partnerships,

whether with clients and employees or valued subcontractors and suppliers like steelmakers BlueScope Steel and Onesteel.

“We work with them to develop innovative solutions that will increase productivity and ultimately reduce cost,” says Tallon. Working closely with clients and suppliers, Civmec creates an invaluable environment of transparency and trust.

“We picked the right clients and the right partners,” says Tallon. w w w. c i v m e c . c o m . a u

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PROUD SUPPLY PARTNERS OF CIVMEC BlueScope Distribution is proud to be associated with Civmec, providing quality steel products and supply solutions.

As the market leading sales and distribution arm of BlueScope Limited, partnering with local businesses to deliver a reliable, Australian made product is our priority.

Our depth of stock available for next day-delivery is unrivalled in WA, and allows us to support our customers facing increasingly constrained delivery schedules. The scale of our operations and warehouse delivers a competitive price and industry leading range.

Having an experienced team of steel professionals working with our customers allows us to deliver supply solutions to combat increasingly competitive landscape of the Australian steel market.

BlueScope Distribution’s core products and markets: • • • •

Mild Steel Plate High Tensile Plate Laser Plate Quench & Tempered Plate

MANUFACTURING

PROCESSING

• • • •

Tubular RHS Commercial & ERW Pipe Sheet & Coil Merchant Bar

WAREHOUSING

DISTRIBUTION

BlueScope Distribution

9 Bradford Street, Kewdale WA 08 6250 1000 bluescopedistribution.com.au

BlueScope Distribution, XLERPLATE® and XLERPLATE LITE® are registered trademarks of BlueScope Limited.

SUPPLIER PROFILE

Since 1915 the steel industry has been an essential part of Australia and its economy. BlueScope’s heritage traces back to the very beginning.

Our history has always been in steelmaking - but the future lies in selling Australian innovation, technology and expertise to the booming Asian and global growth markets.

BlueScope’s business has been built on the strength of our global partnerships, global networks and global brands.

Our track record of successful global partnerships enables us to prosper in widely diverse markets. In India, we have established a joint venture with the highly respected Tata conglomerate, a joint venture in Saudi Arabia is opening new opportunities in that expanding market, in North America, our 50:50 North Star BlueScope Steel joint venture with Cargill continues to perform strongly, and our joint venture with Nippon Steel - NS BlueScope Coated Products - will open exciting new markets and opportunities in Asia.

Equally important are our successful partnerships with our customers. Many of our customers are Fortune 500 companies, and we can help them realise significant savings in the total cost of their buildings by reducing construction schedules.

Our global networks are another great BlueScope strength, with more than 100 facilities in 17 countries, employing over 16,000 people serving thousands of customers.

CIVMEC

AUSTRALIA

“We grew fast but it is sustainable and with every move into new areas—whether it be location or capability—we ensured the business was ready for it.”

The right projects Civmec has been involved in an array of ambitious key projects that highlight its interdisciplinary strengths, from metro-based infrastructure in Elizabeth Quay to refractory installation with INPEX’s Ichthys Project in Darwin.

Civmec’s capabilities are tested even further with progressive projects under current construction like Shell’s Prelude Floating Liquefied Gas Facility (FLNG). Civmec was awarded a master service order contract by frequent collaborator Technip in August 2014.

“This is one of the most exciting projects globally as it is the first FLNG project in the world,” says Tallon. “Our involvement includes the supply, fabrication and testing of subsea components for the development. The main challenge is to deliver these products to the high quality and high specification expected from our client, Technip, and the owner, Shell.”

CEO Pat Tallon CCIWA Presentation

SMP Works on Yandi Sustaining project

“Every Civmec location is strategic to ensure we are well-positioned to service our clients and the sectors” – Pat Tallon, CEO w w w. c i v m e c . c o m . a u

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SUPPORTING AUSTRALIA’S BEST WITH THE RIGHT GEAR FOR THE BIG JOBS

Onsite Rental Group congratulates Civmec on being awarded “Company of the Year” by Subsea Energy Australia. And just quietly, we’re stoked that Civmec has chosen us to be their sole equipment rental solutions provider and we support the shared growth of our businesses. 

OUR KNOWLEDGE YOUR CHOICE

134040 onsite.com.au

CIVMEC

AUSTRALIA

Even more recently, Brookfield Multiplex Engineering and Infrastructure Pty Ltd awarded Civmec with the new Perth Stadium Steelwork Package contract, a contract that includes the fabrication and installation of roughly 14,500 tonnes of steelwork for the highly anticipated new Perth Stadium. “This project is evidence of how globally competitive Australia can be when it comes to fabrication, while providing client surety of delivery,” says Tallon.

Pursuing growth abroad As a key part of its efforts to stay competitive and offer a high level of service, Civmec has been expanding to meet the needs of clients overseas. “Civmec growth strategy has always involved expanding overseas when the business

SUPPLIER PROFILE

Henderson workshop

ONSITE RENTAL GROUP

Our Knowledge, Your Choice is the tagline that sums up Onsite’s philosophy. Onsite employs product specialists for every product in every region of Australia to offer expert advice on equipment application (Our Knowledge).

Onsite also remains 100% independent of equipment manufacturers so our product specialists are free to offer unbiased advice on the right product for your project or application (Your Choice).

Our Knowledge Your Choice underpins every aspect of Onsite’s business.

Website: www.onsite.com.au

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CIVMEC

Aerial view of Civmec facilities in Henderson

was ready,” says Tallon. “We have been successful in making Civmec competitive here so naturally we want to ensure the expansion overseas provides the same result.”

To help in ensuring a smooth and successful expansion plan, Civmec has looked to smart strategic partnerships with synergistic businesses like Technip.

“Through various projects including Prelude and the Wheatstone spool package, we have developed a strong working relationship with Technip,” says Tallon, noting that acquisition of Technip’s Indonesian subsidiary PT 126

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Global Industries is currently in the due diligence phase. “If complete, this acquisition will strengthen our working relationship and offer Civmec further opportunities to work with Technip on projects worldwide—as well as giving us the opportunity to expand our offering to other clients globally.”

Increasing growth domestically While Civmec has turned its sights overseas, cementing opportunities in Australia is as high a priority as ever.

To maximise its domestic growth strategy, Civmec recently opened new offices in Sydney and Gladstone.

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Accropodes for Wheatstone project

According to Tallon, the Sydney office will allow Civmec to further pursue infrastructure projects along the Eastern Seaboard, sustaining capital and maintenance opportunities in the mining and oil and gas sectors, and defence work through Civmec DLG, an incorporation in conjunction with local Indigenous company David Liddiard Group. While initially taking a short-term lease at Gladstone, this will allow Civmec to deliver maintenance and refractory projects within the region to leverage off already delivered and ongoing projects —in the area to ensure the Gladstone site becomes a permanent strategic location .

“Every Civmec location is strategic to ensure we are well-positioned to service our clients and the sectors,” says Tallon. “The offices in Sydney and Gladstone feed into our growth strategy as

“We have identified many infrastructure opportunities all across Australia and we are targeting to win” – Pat Tallon, CEO

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Welding super duplex LNG piping

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we look to expand our geographic footprint nationally.”

continually reinvest in its capabilities is a principle that applies to its people as much as its technology.

The multi-disciplined Civmec “At Civmec, we really foster personal difference and professional growth,” says The traits that set Civmec apart from Tallon. “My philosophy when it the competition are the same traits comes to people management is to that are considered at Civmec to be challenge people to be innovative true points of pride for the company. and give them the direction and “Our main differentiator is our freedom to realise their true multi-disciplined service offering, potential. where we are able to apply our Of course there is also the ever-expanding capabilities across smart logistics of its geographical sectors,” says Tallon. “Additionally, positioning—all means to better we pride ourselves on our ability serve clients. “Our strategic location to treat all parties—whether at the Australian Marine Complex client, subcontractor, supplier or provides direct access to the wharf,” employee—as stakeholders.” This notes Tallon. “Combined with our stakeholder state of mind extends to various other strategic locations, this Civmec operating on an “open door” enables us to mobilise to site faster policy of transparency and honesty, which gives Civmec a competitive ensuring that clients and employees edge.” have access to senior management.

Civmec’s commitment to Building and moving forward

“The future looks bright as we grow our geographic footprint and continue delivering vertical packages thanks to our multi-disciplinary, ever-expanding capabilities” – Pat Tallon, CEO w w w. c i v m e c . c o m . a u

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CIVMEC

Gorgon Wharf Construction Caissons

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Civmec already has a strong history of growth, but that growth is far from over. Moving into the future, Civmec has designs for multiple development paths.

“A large focus for Civmec moving forward is to increase our market share in the Infrastructure and Subsea sectors,” says Tallon, citing a desire to maintain the momentum it has established through its recent and ongoing projects. “We have identified many infrastructure opportunities all across Australia and we are targeting to win.”

Further growth in the Subsea sector will be facilitated through Civmec’s recently completed Specialist Subsea Facility in Henderson, which will help the company meet a rising demand for ability to work with exotic materials and subsea manufacture. “With involvement on Gorgon, Wheatstone and Ichthys with clients such as Technip, FMC Technologies and GE, we hope to grow this business and our reputation for delivering high quality subsea structures to the oil and gas industry,” says Tallon.

In any discipline, Civmec understands that the most significant key to growth is the relationships that it cultivates. “Civmec continue building strong working relationships with clients to ensure ongoing works,” says Tallon. “The future looks bright as we grow our geographic footprint and continue delivering vertical packages thanks to our multi-disciplinary, ever-expanding capabilities.”

Company Information INDUSTRY

Construction and engineering modularization HEADQUARTERS

16 Nautical Drive Henderson WA, Australia 6166 FOUNDED

2009 EMPLOYEES

1500 approx REVENUE

$430 Million PRODUCTS/ SERVICES

Construction

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Glencore

Enhancing Processes in the Mining Industry

Glencore Technology’s Chief Technology Officer Reinhar Viljoen discusses the importance of collaboration in the mining industry and opens up about the importance of branding and marketing Written by: Robert Spence Produced by: Vince Kielty

rdt

GLENCORE

IsaKidd robotic CSM

A

s one of the largest commodity traders and mining companies in the world, Swiss-based Glencore has maintained a rich lineage of innovative technology through its existence in the mining sector.

The company has leveraged its experience and knowledge from its own operational sites to develop and market new solutions to meet the mining industry’s evolving demands.

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Their competitive advantage for the last 30 years has been Glencore Technology. Spawned from the merger with Xstrata, Glencore Technology continues to be a dominant player in marketing technologies for the metals and mineral processing industries.

Industry experts Glencore Technology specializes in developing and marketing supportive technologies for the

AUSTRALIA

mineral processing and metals smelting and refining industries.

The company has developed proven technologies such as ISASMELT and IsaKidd, which are patented processes widely used in the smelting, electrowinning and copper refining industry today.

Additional technologies include IsaMill, a fine and mainstream grinding technology, the Jameson Cell flotation technology and the Albion Process leaching technology.

“We’ve initially developed specific copper processing technology,” said Reinhardt Viljoen, Glencore Technology’s Chief Technology Officer.

“However, we’re now also involved in the broader design of smelters and refineries and our technology is applicable to other base metals like zinc, lead, nickel, etc. Our technology has also delivered improved processing performance in the precious metal industry, with the gold and platinum industry specifically applying Glencore Technology’s IsaMill and Albion Process Technology.”

In terms of supporting technologies for clients, Glencore

Technology has designed and developed the ZipaTank™.

According to Viljoen, The ZipaTank is an innovative approach to slurry storage and leaching tanks that incorporates modular components and mechanical joins to provide all the benefits of a traditional welded tank, but with lower costs, reduced installation times and far greater flexibility.

“The tank is mechanically bolted. Anyone with a minimal amount of skill and supervision can bolt it together. Its scalability makes it very exciting for clients as it can accommodate most projects and even be reused for other projects.”

In addition, Glencore Technology has developed the HyperSparge™, a proven and cost effective system for delivering air, oxygen or other process gases into tanks or vessels for leaching or oxidation processes.

“A lot of these technologies started off from issues we experienced in our copper and zinc operations,” said Viljoen.

The key ingredient For Glencore Technology, innovation

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Your Partners for Mining

Your Partners fo

r Mining

50 years experie nce with horizontal & ve rtical agitated bead mills

ISAMILL – Largest Agitator Bead Mill in the World The patented ISAMILL is a transformation in grinding technology based on high intensity stirred milling.

The ISAMILL  was developed for fine grained orebodies that needed a step change in processing efficiency to be economic.  significantly reduces the  energy requirement and  media and capital costs of fine grinding.

Just as importantly, the processing advantages of inert grinding greatly improve metallurgical performance compared with conventional steel media.

NETZSCH-Feinmahltechnik GmbH Sedanstraße 70 95100 Selb Germany Tel.: +49 9287 797-0 Fax: +49 9287 797 149

www.netzsch.com/gd

GLENCORE

AUSTRALIA

starts with collaboration.

“Here in Australia, and all across the world, collaboration is a key ingredient to being innovative. We have a very supportive and collaborative group here at Glencore Technology and everyone brings something to the table,” said Viljoen.

Collaboration helps Glencore Technology continuously find new ways of identifying and developing technologies to improve processing in the mining industry as well maintaining a wide range of existing applications in the mining industry.

Along with working internally with Glencore operations, Glencore Technology partners with other companies to collaborate in building innovative technologies that improve processing.

SUPPLIER PROFILE

Hypersparge

NETZSCH

Employees: 850 (approx. 3300 worldwide – complete NETZSCH group) Established: 1873 The Grinding & Dispersing Business Unit, one of three business units of the global NETZSCH Group, offers a comprehensive program for the many challenges in mechanical process engineering. Here the Business Unit is primarily involved in the areas of wet and dry grinding, mixing, dispersing, de-aeration and classifying. The laboratory- and production-scale machines, as well as complete production lines, are used in almost all areas of industry, such as the forward-looking nanotechnology, the production of ink, minerals or foods.

The bundling of processing know-how, our extensive machine program, solutions for customer-specific problems and our global presence are unique and hence the strength of the business unit.

Website: www.netzsch-grinding.com

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Specialists in design, fabrication, welding and installation of Carbon Steel, Stainless Steel & Specialty Alloy Pressure Equipment, including:

www.nrgpiping.com.au

• Shop Pipe Spooling • Pressure Vessels • Pipe Supports and Structures • Field Welding and Mechanical Installation • Stainless Steel; Austenitic, Duplex and Super Duplex • Alloys; Chromoly, Monel, Hastelloy and Titanium • Carbon Steels; Standard, Low and High Temperature

Phone: +61 7 3807 1119 | Fax: +61 7 3807 9722 | Email: sales@nrgpiping.com.au

GLENCORE

AUSTRALIA

For example Netsch GmbH, Glencore Technology’s partner in the development of the IsaMill Technology.

“Once we identify a need, we run a very lean operation. We know what we’re good at and we stick with it. We excel at commercializing technology and identifying needs.

We work with the universities as well carrying out our own research and design to take those ideas to the next level in a very functional and commercial way,” said Viljoen.

“We take great pride in developing processes that are operationally proven and that

deliver value to our customers sustainably, such as our fine grinding processes that give mining operations the ability to liberate more of their valuable minerals.”

According to Viljoen, collaboration doesn’t always create innovation; it has to be driven by the needs of the industry and operations.

“We’re heavily driven by our internal Glencore operations to provide them with the expertise we have, and present potential opportunities commercially as we identify them. The mining industry is very conservative. Productivity is a key focus and you need to ensure

SUPPLIER PROFILE NRG Piping Pty Ltd is a forward thinking leading company with an enviable reputation for quality and reliability in the design, fabrication, installation and maintenance from heavy specialty metals.

With proven quality management systems that are certified to ISO9001:2008 and industry qualified management and personnel, NRG has over 25 years’ experience offering a range of engineering project services nationally and internationally specialising in Oil and Gas, Mining, Power, Water Treatment & Petrochemical industries.

NRG offers project dedicated off site manufacturing facilities in conjunction with onsite installation services where our clients are guaranteed capacity and quality ensuring a safe, efficient, cost effective engineering service to your project delivering profits to your bottom line.

Website: www.nrgpiping.com.au w w w . g l e n c o r e t e c h n o l o g y. c o m . a u

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Skids, Test Rigs and Wear Parts for the Mining Industry Automated Systems and Equipment CNC Machining and Fabrication Controls and Systems Integration Project Management

DESIGN & MANUFACTURING ENGINEERS

Est. 1962

J C Smale is a diversified applied technology company that offers special industrial production, materials handling and processing systems. All J C Smale special industrial plant and equipment is designed, built, installed and commissioned specifically to customer requirements.

J C Smale also provides on site services for retrofit, rework and upgrade to customers’ existing plant and equipment.

We specialize in:  PU LINED, NI PLATED, RUBBER LINED, HARDOX & STAINLESS STEEL COMPONENTS FOR THE MINING INDUSTRY - WORLDWIDE  PRODUCTION PLANT & EQUIPMENT  ROBOT SYSTEMS  TEST RIGS, MATERIALS HANDLING SYSTEMS  COMPLETE ELECTRICAL CONTROL SYSTEMS Industries serviced: mining, brick, light rail, and paint.

Proud Supply Chain Partner of Glencore Technology for Over 20 Years

Turnkey Manufacturing Technologies 9-23 Commercial Rd, Notting Hill, Vic 3168, Australia Ph: +61 3 9544 7188 Fax: +61 3 9543 7927 Email: jcs@jcsmale.com No 19 Jalan Bukit 5 Bandar Seri Alam, Malaysia

www.jcsmale.com

GLENCORE

AUSTRALIA

you’re responding to the needs of the operational guys.

“With the introduction of automation technology, advanced process controls and simplicity of operations will become a big factor in coming years. Automation is complicated but new technologies will simplify the process,” said Viljoen.

“Equipment design needs to be very simple but robust. To maximize productivity, the need is to be innovative around designing equipment and running it with minimal attention.”

In addition, the company continuously strives to find new and

SUPPLIER PROFILE

more efficient ways of doing things, even if it takes them outside the realm of the mining sector.

“We’re continuously looking for other applications in the mining industry or even if it applies outside the industry. We are always looking for new ideas in terms of solving issues that come up within those disciplines – grinding, flotation, smelting and refining,” said Viljoen.

Branding One of the most underrated aspects of the mining industry is branding. For Glencore Technology

JCSMALE & SONS

Employees: 58 Established: 1962 Industry: Engineering and Design for Heavy Clay, Mining, Automotive, Light Rail, Adhesives, Paint and Plasterboard Services: mechanical, electrical and general engineering services Management: Ken Smale - Managing Director, Ross Smale - Engineer - Electrical, Colin Smale - Engineer – Applications, Gordon Smale – Manufacturing Manager, Ron Hill – Group Financial Controller Website: www.jcsmale.com

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GLENCORE

Albion Process

it is especially important.

“You miss opportunities if you don’t. Being active in the market and letting people know what your capabilities are is extremely important, especially if you want to grow. During the mining boom you could get away with a passive approach. You can’t do that now. Branding yourself is very important and we actively strive to do just that,” said Viljoen.

“With the change in the mining industry, and the mergers, there has been a lot of change in our structure. As a result, our presence in the

A world that lasts forever Outokumpu is a global leader in a wide range of high performance stainless steels, with manufacturing plants and sales companies located throughout the world.

P: 61 7 3267 7266 | E: ken.hayes@outokumpu.com

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www.outokumpu.com/australia

AUSTRALIA

Company Information INDUSTRY

Mining HEADQUARTERS

Brisbane, Queensland, Australia FOUNDED

1984 EMPLOYEES

85

Jameson Cell

market as Glencore Technology has been more of a gradual change. One of my key focuses as Chief Technology Officer is to get our branding well established.”

According to Viljoen, forming a presence in the market is an important step in growing as a company as well as delivering on your promise.

“We’re motivated by continuous improvements.

We maintain long-term relationships with our all our customers to ensure we’re delivering on the promises we’ve made. For us, client feedback is extremely important and these relationships help us to leverage their opinion into making advancements. A key part of our business is making improvements around our customers.”

PRODUCTS/ SERVICES Glencore Technology develops, markets and supports technologies for the global mineral processing and metals smelting and refining industries.

These technologies include ISASMELT™ and ISACONVERT™ smelting processes, BBOC™ precious metal refining, IsaMill™ fine-grind and mainstream grinding technology, IsaKidd electrowinning and electrorefining technology, Jameson Cell flotation technology and the Albion Process oxidative leaching technology.

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Curimbaba Mining:

Conscious exploration Focused on sustainability, the group concentrates its efforts in transforming natural resources into prosperity for future generations Written by: Flรกvia Brancato | Produced by: Cristiano Ruy

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G R U P O C U R I M B A B A LT D A .

Curimbaba Mining complex

I

t was under the watchful eyes of the founder Benedito Moreira Curimbaba and his older son Sebastião Curimbaba in the 40s, that the Curimbaba Group took its first steps in the city of Poços de Caldas, Minas Gerais state. The rocky soil—which was not proper for agriculture activity—drew attention to the area for mineral extraction and processing, later targeted for fertilizer sale. The first company of the group, Curimbaba Mining, was founded in 1961 and bauxite exploration and processing took off.

Operating in the industrial, agricultural and transport segments, today Curimbaba Group consists of seven companies in Brazil five abroad and operates in nearly 20 segments such as abrasives, agrochemicals, ceramics, 146

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Q U A L I D A D E , D E S E N V O LV I M E N T O E I N O V A Ç Ã O

refractory cements, casting, among others, without losing primarily focused on the extraction and mineral processing activities. In addition to the Brazilian structures installed in Poços de Caldas and São Paulo state—in the cities of São João da Boa Vista and Guarulhos—the industries are also represented in the United States, South Africa, Germany, Spain, Argentina, Colombia, Mexico, Venezuela, Uruguay, Korea, Israel, Taiwan and Thailand.

“I believe that the work of Curimbaba Foundation shows our commitment to society” – Director of operations of Curimbaba Group, Leonardo Curimbaba

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CURIMBABA MINING

Curimbaba Mining complex

CURIMBABA MINING - The ore mining and beneficiary, has three units (Ponte Preta, Vera Cruz and Campo do Meio) in Poços de Caldas.

Currently, Curimbaba Mining and its affiliates in Brazil employ more than 1,000 people, generating at least 3,000 indirect jobs in the country. With a production capacity of 375,000 tons per year of sintered bauxite, activated bauxite, sintered refractory clays, bauxite-based proppants, the company is a supplier to many industrial and commercial segments, particularly the oil and gas industry, the petrochemical industry, surface blasting, ceramic for electrical welding, refractory and abrasive products, treatment of mineral oils and biodiesel, micromelting and casting. “Most of the production of proppant and molten oxides, around 80 percent, is exported 148

August 2015

BRAZIL

“Most of the production of proppant and molten oxides, around 80 percent, is exported to the United States, Middle East and South America” – Director of operations of Curimbaba Group, Leonardo Curimbaba

CURIMBABA MINING AND ITS AFFILIATES IN BRAZIL to the United States, Middle East and South America,” explains the director of operations of Curimbaba Group, Leonardo Curimbaba.

ELFUSA - In an area of approximately 160,000 m², the mineral processing industry is responsible for producing and marketing more than 20 kinds of products for use in the ceramic markets, abrasives and refractories. With global operations, about 40% of its production is exported to over 30 countries. As the ISO 9001 certification holder, Elfusa guarantees the quality

They employ more than 1,000 people, generating at least 3,000 indirect jobs in the country

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Big Bag with mining product 150

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BRAZIL

of their products, processes and management methods, and is located in São João da Boa Vista, state of São Paulo.

OLGA S / A - Based in Guarulhos, São Paulo state, it is considered the largest manufacturer of mechanical surface treatment products in Latin America. Acquired by the group in 1980, it currently has a production capacity of over 580 tons per month of liquid and solid mass, as well as and ureic and polyester chips, in addition to about 15,000 discs and wheel pieces and 25,000 liters of chemical compounds, making it a national market leader in its segment.

ALCACE TRANSPORTS - Operating in the transportation of general cargo with specialized labor and equipment leasing, the company’s headquarters is located in Pocos de Caldas, gathering offices, warehouses, workshops and a parking lot. It serves more than 40 cities in the state of São Paulo and other regions in the states of Rio de Janeiro, Minas Gerais, Sergipe, Rio Grande do Norte and Salvador.

BRITA CALDAS - The company produces a crushed and sorted phonolite from Poços de Caldas’ plateau, which has excellent features that surpass the materials available in the market.

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CURIMBABA MINING

Curimbaba mining facility

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Founded in 2000, Brita Caldas provides solutions for medium and large size construction, asphalt paving and concrete markets, selling from crusher run aggregate and grit to pebbles and gravel.

TARUMÃ - Founded with the goal to serve the group’s needs in providing firewood and charcoal, the company took advantage of its massif forest and is currently responsible for planting 400,000 eucalyptus seedlings annually that are used in the cellulose market, its main activity. Through a specialized structure, Tarumã still recovers degraded areas, taking responsibility for cleaning and maintenance of the group’s rural properties.

YOORIN FERTILIZERS - The acquisition of Yoorin in 2010 marked the history of the group, placing it into the agribusiness industry as a thermophosphate manufacturer. Featuring a high-tech and agronomic efficiency proven by various official research bodies in Brazil, the product is a fertilizer obtained from electrofusion process. With the assets acquisition, the Curimbaba Group also acquired the rights to the brands Yoorin, N -YOORIN, Yogen, YOOKARIN and H-MASTER—all nationally and internationally recognized for its products and agronomic efficiency as well as high productivity results.

North American companies - Curimbaba Group has four companies in the United States. Sintex Minerals & Services along with Dakota transload are responsible for the marketing of proppant throughout North America.

The US Electrofused Minerals, located in Pittsburgh, is responsible for marketing and production electrofused oxides for blasting markets, abrasive and refractory. Electro Abrasives, located in Buffalo, is responsible for producing silicon carbide shaped such as macrograin (8-220 mesh) and micrograin (230-2500 mesh).

The Sublime Technologies Pty is a company located in South Africa and responsible for the production of crystalline and metallurgical silicon carbide. It has a capacity greater than 45,000 tons per year and is a major supplier of raw materials for Electro Abrasives. The Sublime meets not only the market in South Africa, but the entire global market for silicon carbide. w w w. c u r i m b a b a . c o m . b r

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ENVIRONMENTAL RESPONSIBILITY In addition to the reforestation work and degraded areas recovery through Tarumã, Curimbaba Group has other activities focused on care and maintenance of the environment. In Elfusa, for example, the industrial park is equipped with an efficient pollutant containment system and on the banks of the Jaguari-Mirim River, which is located next to the plant, over 4000 seedlings of native trees were planted as a restoration project of the riparian forest.

When it comes to Curimbaba Mining, it has been maintaining a nursery where about 100,000 saplings of 120 different native species are grown annually. Every year, nearly 15% of these plants are used only in rehabilitation own mining areas, and about 50,000 seedlings are donated to local farms. In addition, bauxite deposits explored by the company are rehabilitated simultaneously with the exhaustion of the mining fronts.

The creation of Private Natural Heritage Reserve Fazenda das Pedras East, located in the Municipal Park of Serra de São Domingos, is another important feature in terms of environmental responsibility. The environmental rehabilitation project includes a restoration process of the 264 hectares of the reserve where nature trails and recreation areas will be built so the Environmental Education Program participants can visit the reservation, which is maintained the Mining Curimbaba.

VISION With a mission to offer high quality services to the industrialized minerals and fertilizers sectors, the group focuses its business on the effective

“Above all, together with the business consolidation, the company is always looking for productivity optimization to generate value to shareholders, customers, suppliers and employees in a sustainable way” – Director of operations of Curimbaba Group, Leonardo Curimbaba 154

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Curimbaba Mining entrance - Cam

use of reserves and vertical integration, ensuring the long-term supply.

Above all, along with the businesses consolidation, the company is always looking for productivity optimization to generate value to its shareholders, customers, suppliers and employees sustainably.

In general, Group Curimbaba’s investments are focused in strengthening its automation processes. In 2012, investments were made in Yoorin Fertilizers, and then on mineral deposit in Goiás. Always looking for improvements of its the industrial park, productivity growth is an expected result by the Group.

SOCIAL RESPONSIBILITY “I believe that the work of Curimbaba Foundation shows our commitment 156

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Company Information INDUSTRY

Mining HEADQUARTERS

Poços de Caldas, MG Brazil E S TA B L I S H E D

1961 EMPLOYEES

550 PRODUCTS/ SERVICES

mpo do Meio unit

Mining products MANAGEMENT

to society,” said Leonardo. The Curimbaba Foundation was founded in 2008 and is responsible for meeting the social needs of Poços de Caldas and region.

The Foundation’s goals are focused on schools, hospitals, nursing homes, kindergartens and cultural movements. There are currently over 60 organizations benefited from donations made

by Curimbaba Foundation. All requests are first analyzed prior to receiving benefits. The work of the Foundation has deeply affected the local community.

President: Sebastião Curimbaba Director of operations: Leonardo Curimbaba Ferreira Administrative Director: João Justo

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