Mining Global Magazine - January 2015

January 2015 | www.miningglobal.com

Joy Global

& Andina Digging for Growth

Mining Industry: 2015 Outlook

HOW TO: Buy & Sell Mining Equipment with Ritchie Bros.

Top 10 Mining LinkedIn Profiles You Need to Follow

SPECIAL REPORT

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editor’s comment

in this issue

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

– Charles Darwin S i n c e l a u n c h i n g i n 2 0 0 3 , Linked

has become the premier social networking service for professionals and companies alike. For the mining industry, LinkedIn has been a godsend. We take a look at the top 10 mining LinkedIn profiles to follow and how their presence is guiding a struggling sector.

Also this month: we spoke with the world’s largest auctioneer of mining equipment, Ritchie Bros., and discuss how mining machinery is bought and sold as well as the benefits of acquiring via auction.

Lastly, we take a look at the 2015 outlook for base metals and what the new year holds for the mining industry

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

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© 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 131017

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Contents

Features

8

Top 10 Global Mines: Mining LinkedIn Profiles You Need to Follow

22

MACHINERY: How to Buy and Sell Mining Equipment Via Auction

16 FINANCE Mining Industry: 2015 Outlook

5

Contents

66 Cementation Canada

32

Asarel-Medet

company profiles

African Carbon Energy

44

Europe

56

32 Asarel-Medet

True North Jems

76 EP Minerals

africa 44 African Carbon Energy

canada 56 True North Gems 66 Cementation Canada

usa 76 EP Minerals

LiebherrAustralia

84 Harrison Gypsum

94

australia 94 Liebherr Australia 106 The UGM Group 112 Association: Austmine

Latin America

116

Joy Global Peru

116 Joy Global Peru

7

M a c h i n e ry

How to Buy and Sell Mining Equipment Via AuctioN Industrial equipment auctioneer Ritchie Bros. discusses how mining machinery is bought and sold and the benefits of acquiring via auction Writ ten by: Robert Spence

8 January 2015

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M a c h i n e ry Equipment and machinery is the lifeblood of the mining industry; it’s what allows companies to expand projects, increase production, enhance safety and boost profits.

Manufacturers like Liebherr and Caterpillar have revolutionized the mining sector by building stronger, faster, smarter and safer machines.

With the help of companies like Richie Bros, acquiring these massive (and expensive) pieces of equipment has gotten a whole lot easier.

Formed in 1958, Ritchie Bros. is the world’s largest seller of new and used equipment. The company, which has operations in more than 25 countries including 44 auction sites worldwide, has simplified the buying and selling process, incorporating live unreserved

Regional Sales Manager Blair Gogowich catching bids

10 January 2015

public auctions with on-site and online bidding for complete convenience.

With $3.8 billion of equipment sold last year, Ritchie Bros. is the preeminent auctioneer of the mining industry.

How it works The process of buying and selling mining equipment via auction is quite simple. In fact, if you’ve ever purchased or sold something on eBay you’re already half way there.

At the auction, the company will drive out the mobile equipment in front of a crowd of seated bidders at the company’s auction theater. An auctioneer will introduce each item and then call for bids. When a bid is placed, the auctioneer raises the ask price. Bidding continues until no more bids are placed. Each item sells to the highest bidder, regardless of price.

“Every Ritchie Bros. auction is unreserved and open to the public,” says Mike Johnston, Group SVP (US West and LATAM) of Ritchie Bros. “Unreserved means there are no minimum bids or reserve prices. Owners and their agents are by contract not allowed to bid on their equipment. Every item is

H o w t o B u y a n d S e ll M i n i n g E q u i p m e n t V i a A u c t i o n

Ritchie Bros. equipment auctions

sold to a new owner on auction day, regardless of price.”

Bids can be made in person, live and in real-time online and by proxy. In order to bid, registration is required to be completed in person or online (www.rbauction.com).

The larger and stationary equipment is sold by photo in the company’s Virtual Ramp auction theater, where pictures of the item are shown on

a screen in front of the audience.

Potential buyers can also have items inspected by their personal mechanics to ensure machinery is up-to-par with their standards.

“We take photos of every item in the yard so potential buyers can view detailed equipment information and high-resolution photos on our website and then visit the auction site, or send a mechanic on their behalf, to conduct 11

M a c h i n e ry

“The biggest advantage of buying at an unreserved auction is that we have no sticker prices” – Mike Johnston, Group SVP (US West and LATAM) of Ritchie Bros.

H o w t o B u y a n d S e ll M i n i n g E q u i p m e n t V i a A u c t i o n

Caterpillar wheel loader being sold in Orlando, Florida a physical inspection,” says Johnston.

In addition, the company offers refurbishing services at an additional cost, including exterior and interior cleaning, sandblasting, welding, metalwork and light mechanical repair, painting, decal replacement as well as glasswork and upholstery repair.

Array of Benefits The conventional approach to purchasing equipment and machinery has always been to go through dealers of manufacturers.

Although this approach does offer benefits like manufacturer warranties and maintenance services, the perks of acquiring

equipment through auctioneers like Ritchie Bros. are enormous.

“The biggest advantage of buying at an unreserved auction is that we have no sticker prices. With no minimum bids or reserve prices, it’s buyers who set the prices, not sellers, and everything sells for true market value on auction day,” says Johnston.

“Because we forbid sellers from bidding on their own items, there’s no artificial price manipulation, making the buying process fair and transparent.”

In addition to saving money on brand name equipment, users can buy or sell at their convenience.

The process is user-friendly and 13

M a c h i n e ry adapted to make it simple for even the most novice buyer.

Tips for buying used equipment Ritchie Bros. has made it extremely easy to buy and sell mining equipment via auction. Along with providing a convenient platform, the company is keen on informing users on the process as well as providing how-to tips with options for buyers and sellers to maximize their earnings.

First impressions count: Conduct a visual inspection of the machinery, including asking questions like: Is it in good condition? How is it presented? Are any panels damaged? Has the machine been repainted? Bidders should check the condition of any ground breaking tools and engaging components for wear and tear. Make sure to inspect the drive train to identify if there are any oil leaks as well as the

Komatsu excavators selling out in the yard in Orlando, Florida

14 January 2015

H o w t o B u y a n d S e ll M i n i n g E q u i p m e n t V i a A u c t i o n

Giant Terex rock trucks being sold in Houston, condition of the pin and bush wear.

Test the equipment: Potential buyers should always operate the equipment before making a bid. Drive the machine, move it backwards, forwards, lift all the machine’s moving parts. Check the steering arms and inspect under the carriage for wear and tear. Check the position of the track adjuster to see if the tracks are worn out.

If they are, it will be tightened.

Get under the hood: Buyers should always inspect the equipment’s engine and components before bidding.

Make sure to look for excessive smoke and/or coloring. It could be a tell tale sign of engine problems. In addition, be sure to request the computer logs of the machine to check hour meters.

Do research before buying: Similar to purchasing a car or home, buyers should do their homework before signing their name.

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Finance

Mining Industry:

2015 Outlook

2014 was a rocky road for the mining sector. Find out if 2015 will be better W r i t t e n b y: R O B E R T S P E N C E

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Finance The mining industry was battle tested in 2014. The prices of iron ore and gold deteriorated, reaching record lows and forcing many companies to cut costs and postpone projects in order to survive. The volatile market forced companies to expand projects in an effort to reclaim profits while others upgraded outdated technology and machinery to improve productivity.

It was a rough year to say the least.

“We believe the situation is unlikely to improve in the near to medium term,” ANZ’s head of Australian economics, says Justin Fabo, ANZ’s head of Australian economics corporate and commercial.

While the good times for commodity prices may be a thing of the past, there are marginal signs that show otherwise. Prices are slowly moving in the right direction, global operations are starting to regain steam and there’s even speculation of a few block-buster mergers on the horizon.

Will 2015 be any different?

The future of gold Gold dropped to a new four-year low of $1,160 per ounce earlier this month and the downward spiral has 18 January 2015

many analysts expecting a grim 2015 outlook. The base metal has seen a consistent slide in price, dropping five percent in November and industry experts believe it will fall in the short term to the $1,100 mark.

There is positive news, however.

According to IBISWorld research, the price of gold is expected to increase in 2015 to an average of $1,411 per ounce as the global economy improves and inflationary pressures ease with higher interest rates. BISWorld believes 2015 will be the first for revenue growth in the gold sector since 2011.

Despite the increase, gold is expected to decline over the next five years “with higher costs contributing to profit declining to a forecast 7.6 percent of revenue in 2020. It appears gold will settle at around the $1170 mark in 2015.

Unfortunately, those prices are well below production costs.

Iron took a massive beating in 2014.

The steel-ingredient, which began declining in 2011, plummeted to double digit territory in May of this year and the outlook in 2015 is not good. Iron ore was one of the

Iron Ore production weakest commodities in 2014 and the trend is likely to continue.

“Key consumers - Chinese steel mills - still don’t seem convinced higher prices are warranted, while high iron ore port stocks and rising seaborne supply remains on offer,” Fabo said.

Analysts believe the precious metal will continue to fall in coming years, reaching its lowest point in 2017 at $70 a ton.

According to IBISWorld Research: “The industry is expected to grow at

a slower rate over the next five years through to 2019-20”, adding that “iron ore prices (in US dollars) are expected to decline slightly over the five years through 2019-20 [with] this decline expected to stem partly from higher production and output from Australian mines over the next five years.”

Many believe the drop in iron ore prices is caused by the rapid increase in supply combined with moderating growth in China’s steel production. Prices have declined nearly 40 percent from $130 a ton in 19

Finance January to $82 a ton in September.

Making the situation worse is the fact China has opened its ports to Valemax size carriers. Built by Vale, the vessels are the largest in the world and designed to carry iron ore from Brazil to around the world. Earlier this year, China Cosco signed a 25 year deal with Vale that involves 14 of the massivevessels.

“The current regulation actually already legitimizes these vessels to berth at Chinese ports. If you look at how the ban was initiated in the first place, it will be unlikely for the government to make an official Copper production

20 January 2015

announcement with much fanfare that says the ban is loosened,” an unnamed executive from stateowned port company explained.

“Eventually, the ban will be lifted in a quiet manner. You may see a Valemax ship granted approval by a local maritime authority to dock, and that will be it. Officials realized the ban has hurt China’s economic interests, pushing up the costs for iron ore imports.”

Citigroup analysts said the price of iron ore is likely to average around $72 per ton in the first three months of next year before it crumbles into

2 0 1 5 Ou t l o o k

the $60 per ton range in the third quarter of 2015. Goldman Sachs is a little more positive as the company believes the precious metal will hover around the $80 per ton mark.

The Future of Copper Although demand for copper is steadily increasing, the overall outlook for the metal is bleak. The metal, which is expected moderate growth in the next five years, is past the point of maturity and is now in decline.

“Due to these declining grades the average run of mine (ROM) grades for

copper have actually fallen by three quarters to less than one per cent, yet at the same time annual supply increased from under one million tons to more than 16 million tons,” BHP CEO Andrew Mackenzie said.

According to IBISWorld research, the Industry revenue for copper is forecast to grow at an annualized rate of 1.5 percent over the next five years to US$7.1 billion in 2019/20”.

ANZ head of economics corporate and commercial, Justin Fabo, added that “copper looks vulnerable enough to slip back through the $7000 per ton mark as we approach the normally quiet northern hemisphere summer”.

“Operating rates at copper tube and pipe fabricators fell below 80 percent mid-year, an indication that end-user demand is weak; we would be positioned for some further downside in the short-term.”

While the slow increase in copper prices may seem like a positive turnaround, in the long-term the metal has no real future. Copper prices are expected to increase moderately before drastically declining in 2017/18. If the industry is lucky, the metal will return to minimal growth in the next period.

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TOP 1 0

Mining LinkedIn Profiles You Need to Follow

New LinkedIn Mobile App for the Everyday Professional

Written by: Robert Spence Since launching in 2003, LinkedIn has become the premier social networking service for professionals and companies alike.

The platform, which has amassed over 300 members in more than 200 countries and territories, has become the most used social media site in the world. For the mining industry, LinkedIn has been a godsend.

In addition to giving mining companies the opportunity to build relationships and user engagement through page followers, photos, videos and job openings, it’s been pivotal in showcasing the latest projects, ongoing operations, outreach programs and community initiatives for mining companies.

As one of the most important and populated social networking services in the world, utilizing LinkedIn is now imperative for the mining industry. Here are the 10 mining LinkedIn profiles in no particular order.

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top 10

Since launching in 2003, LinkedIn has become the premier social networking service for professionals and companies alike.

The platform, which has amassed over 300 members in more than 200 countries and territories, has become the most used social media site in the world. For the mining industry, LinkedIn has been a godsend.

In addition to giving mining companies the opportunity to build relationships and user engagement through page followers, photos, videos and job openings, it’s been pivotal in showcasing the latest projects, ongoing operations, outreach programs and community initiatives for mining companies.

As one of the most important and populated social networking services in the world, utilizing LinkedIn is now imperative for the mining industry. Here are the 10 mining LinkedIn profiles in no particular order.

24 January 2015

10 Barrick Gold Cor Web: Linkedin Profile

Barrick Gold is one of the top prod the world. The company also has o LinkedIn profiles on the web. With c on everything from mining projects and new initiatives aimed at commu Barrick Gold has this LinkedIn thing

M i n i n g L i n k e d I n P r o f i l e s Y o u N e e d t o F o ll o w

rporation

ducers of gold in one of the best continual updates s, workplace safety unity engagement, g covered.

09 Newmont Mining Corporation Web: Linkedin Profile

One of the biggest perks of Newmont Mining’s LinkedIn page is its information. The company has mastered the art of keeping users informed on everything from press releases, projects and programs two informative blog postings.

Their latest blog post “Why the Conflict-Free Gold Standard Matters” is a must-read.

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top 10

08 BHP Billito Web: Linkedin Profile

LinkedIn and BHP Billiton butter and jelly. The comp over 147,000 followers, is for finding job opportunit recent and ongoing proje to interviews. With pictur BHP Billiton’s LinkedIn pa

07 FreeportMcMoRan Copper & Gold Inc.

Web: Linkedin Profile

Freeport is one of the largest gold and copper mining companies in the world. They’re also one of the best at recruiting and hiring employees through LinkedIn. With continual and educational updates, users can locate available jobs as well as the latest updates on operations around the world.

26 January 2015

M i n i n g L i n k e d I n P r o f i l e s Y o u N e e d t o F o ll o w

on

n go together like peanut pany’s profile, which has s one of the best pages ties, locating updates on ects as well as listening res, videos and updates, age is one of the best.

06 WGC (World Gold Council) Web: Linkedin Profile

If you want to know anything about the world of gold, the World Gold Council (WGC) has you covered. As the leading organization for the gold market, the company’s LinkedIn profile provides everything from gold investment, jewelry and technology to government affairs and sustainability.

If it includes gold, the WGC is all about it. In addition to LinkedIn, the WGC provides fascinating information about gold on Facebook,Twitter and YouTube.

Don’t miss out!

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top 10

04 GE Transp Web: Linkedin Profile

One of the hottest Linked is GE Transportation. The a division of the General the global technology lea the railroad, mining, mari and drilling industries. Th filled with new and innov company is working to le into a safer, cleaner and q

05 Goldcorp Inc.

Web: Linkedin Profile

By far one of the best companies at utilizing social media is Goldcorp. The company, which boasts one of the best company profiles on LinkedIn, is constantly curating new and exciting content. Goldcorp features a wide array of information from community outreach programs to their most recent article about an industry-led donation for cancer research in Canada. Be sure to check out other social feeds from the company including its Twitter page, Twitter jobs page, Facebook page and YouTube channel.

28 January 2015

M i n i n g L i n k e d I n P r o f i l e s Y o u N e e d t o F o ll o w

portation

dIn profiles right now e company, which is Electric Company, is ader and supplier to ine, stationary power he company’s profile is vative ideas on how the ead the mining industry quieter future.

03 Thiess

Web: Linkedin Profile

Thiess is the leading construction, mining and services contractor in Australia. The company is also quite good at social media. Along with having one of the better Instagram accounts in the mining sector, the company has infused that magic into its LinkedIn page. Their profile has everything from engaging photos to job openings to the latest news on their community initiatives. If you enjoy watching videos, their YouTube channel is quite entertaining.

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top 10

02 Anglo American Web: Linkedin Profile

No mining company provides more interesting photos, videos and facts than Anglo American. The company’s social media platforms are bursting at the seams with compelling stories and their LinkedIn page is no different. Anglo was also ranked as the top mining company in LinkedIn’s 100 Most InDemand Employers for 2014.

If you’ve ever wondered what it would be like to work for a mining company, do yourself a favor and go to their LinkedIn page. Your future career depends on it.

30 January 2015

M i n i n g L i n k e d I n P r o f i l e s Y o u N e e d t o F o ll o w

01 ICMM

(International Council on Mining & Metals) Web: Linkedin Profile

The International Council on Mining and Metals (ICMM) is comprised of 21 of the biggest mining companies in the industry along with 35 national and regional mining associations and global commodity associations. The organization’s LinkedIn page essentially combines the best of the best from the entire mining industry into one profile.

ICMM even has their own LinkedIn group, which boasts over 3k members, and includes everything from discussions to jobs. If you’re interested in learning how the mining industry gives back to the communities in which it operates, this is the LinkedIn profile for you.

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Assarel-Medet flourishing in multiple areas Written by: Sam Jermy Produced by: James Pepper

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A s Sa r e l - M e d e t

The privately owned Bulgarian mining and processing company has not only been achieving success in business, but giving back to the local people through a strong focus on corporate social responsibility

A

ssarel-Medet Mining and Processing Complex is the first, biggest and leading company for open pit mining and processing of copper ores in Bulgaria, providing around 50 percent of the national production of the vital metal, copper.

The company is a main factor for the social and economic development and overall image of the municipality of Panagyurishte and the district of Pazardzhik, in Bulgaria. It has a definite significance for the Bulgarian economy, as one of the leading industrial organisations with an important contribution to the raw materials independence. Now over 1,300 people are working in the company and another 400 are employed in subsidiaries and joint ventures.

Assarel Concentrator Plant

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January 2015

europe

The Medet Mining and Processing Complex was commissioned on 29 December, 1964, and since 1991 has become a joint-stock company through consolidation. Its main activity is open pit mining and processing of copper and copperpyrite ores, biochemical leaching of copper and the associated trade and engineering activities.

Professor Lachezar Tsotsorkov PhD, Chairperson of the Assarel-Medet Supervisory Board, said: “We were the first company in Bulgaria to begin the mining of ores and minerals, and today Assarel-Medet processes about 13 million tonnes of ore per year, ensuring sustainable development, production and thorough utilisation of minerals at the Assarel deposit.

“We are ISO certified and work in compliance with the three major international standards for quality management, environment protection and occupational health and safety. We have traditionally been a pioneer in the mining industry with regards to the implementation of new stateof-the-art equipment and new technologies.

“The Medet Mine (1964-1994) construction started in 1961 and it was the largest open pit mine in Europe and the third largest in the world for the time. Efficient mining and processing of copper ore with copper grade lower than 0.4 percent was organised here more than 40 years ago for the first time in the world. This is a practice which was later commonly applied in the mining industry, but we were the pioneers.”

Key Personnel

Professor Lachezar Tsotsorkov PhD Prof. Dr. Lachezar Dimitrov Tsotsorkov is Chairman of the Supervisory Board of “Assarel-Medet” - the largest and structural-enterprise in the municipality of Panagyurishte and Pazardzhik.

Winner of the highest state distinction “Stara Planina - first degree” and the prize “Manager of the Year 2009”.

w w w. a s a r e l . c o m

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Asarel Medet Plc

Oxide dump

Assarel mine

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January 2015

Mining

Assarel mine

Proud history, progressive future Today Assarel-Medet has many examples of how it has built on its initial front-running qualities in the mining industry. The company has been successfully implementing a program for removal of previous environmental damages, caused prior to the company’s privatisation, which was funded by the government based on an agreement with the World Bank.

It annually invests significant funds in new technologies, environmental projects, human capital development and ensuring the highest standard of occupational safety and health.

Since 1999, more than €350 million has been invested in these areas, and the implemented ecological projects account for €40 million.

The firm has three treatment plants, one of them was built after its privatisation.

“We were the first company in Bulgaria to begin the mining of ores and minerals, and today AssarelMedet processes about 13 million tonnes of ore per year” – Professor Lachezar Tsotsorkov PhD, Chairperson of the Assarel-Medet Supervisory Board

w w w. a s a r e l . c o m

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VERTIMILL速 an efficient and economical grinding technology

QR code for smartphones

A s Sa r e l - M e d e t Assarel-Medet was successfully certified on the voluntary standard for sustainable development of the mineral raw-material industry and received the first certificate for this. It was awarded to the Executive Director at Assarel-Medet, Eng. Delcho Nikolov by Dr Corina Hebestreit, Executive Director of EUROMINES, on the 29 September 2014, during the European mining business forum in Plovdiv.

The purpose of the standard is to evaluate companies in ten aspects - growth and efficiency, quality and innovations, health and safety at work, caring for employees, partnership and development of local communities, transparency and accountability, environmental management, emissions and wastes, conservation of biodiversity, energy and climate protection.

supplier profile

europe

Waste rock conveyor

Metso Minerals

Metso is a leading process performance provider, with customers in the mining, oil and gas, and aggregates industries. Metso’s cutting-edge services and solutions improve availability and reliability in minerals processing and flow control, providing sustainable process and profit improvements. Metso is listed on the NASDAQ OMX Helsinki, Finland.

In 2013, Metso’s net sales totaled EUR 3.8 billion. Metso employs approximately 16,000 industry experts in 50 countries. Expect results.

Website: www.metso.com

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BUILD YOUR FUTURE forward thinking. inventive techniques.

Lexcel Nig. Ltd is a forward-thinking, multi-disciplinary construction company committed to delivering the best solutions in building and construction within the oil and gas industry. Lexcel is a major player in the Execution of the Multi million Dollar Golf Estate (above right) Construction project in Port Harcourt Nigeria.

We offer the following services: Design • Building • Civil Works • Highway Engineering • Dams Pre-Post Construction • Oil & Gas Services With our business model, you get the talent without the overhead, assuring you of responsiveness, flexibility and results.

Contact Us:

LEXCEL House: #2 Owhor Street, Off Liveration Stadium Road, PO Box 7415, Port Harcourt, Rivers State, Nigeria Plant Yard: Plot 478 Peter Odili Road, Trans Amadi Industrial Layout, PHC

Tel: +234-84-747122, +234-8033093560 Email: alexn.lexcel@gmail.com Web: www.lexcelgroup-ng.com

A s Sa r e l - M e d e t The achievement in all aspects was verified by an external auditor, as the audit was carried out by “TÜV Rheinland”-Bulgaria. The standard is structured in five levels for achieved results as even the first of them requires full coverage of legal norms. Each next level provides additional company policies, measures and commitments that upgrade the legal requirements and take into account what is the compliance with the best practices in the world.

Sustainability and CSR Since the privatisation of the company, Assarel-Medet has won more than 50 awards.

The numerous national and international awards obtained are a token of the high

europe

‘Assarel-Medet has won more than 50 awards. The numerous national and international awards obtained are a token of the high prestige and social trust it has gained’

Outdoor Museum Exposition

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Asarel Medet Plc

Water Treatment Plant for mine water

“Assarel-Medet endeavors to ensure a dynamic, successful and sustainable corporate development” – Professor Lachezar Tsotsorkov PhD 42

January 2015

prestige and social trust it has gained.

Professor Tsotsorkov said: “Since 1989 the company has built in the municipality of Panagyurishte over 1,000 apartments, two schools, two kindergartens, a stadium, cultural centre, dozens of shops, ski run and ski lift, sports grounds, correction of Luda Yana river, covered market, reconstruction of Tsar Osvoboditel Square and the city park, sewage and street lighting, repair of churches and much more.

A s Sa r e l - M e d e t

europe

“The company and its shareholders donate funds annually for construction of infrastructure projects and development of health, culture, education, social activities, sports and tourism in the municipality of Panagyurishte.

All of this has radically improved the city’s landscape and significantly increased the standard of living in the municipality.

“Manifested in a long-term plan, and in accordance with the highest standards and good practices, Assarel-Medet endeavors to ensure a dynamic, successful and sustainable corporate development, focusing upon good solid traditions, initiative, innovations and environmental thinking.”

Assarel-Medet JSC is actively involved in international business organisations and associations such as the World Mining Congress, and the European Business Congress. It joined the UN’s Global Compact for Sustainable Development in 2003 and it presented itself as a company which takes care for human rights protection, labour conditions and environment which also gives support in studies dedicated to humankind’s progress.

The company illustrates the modern understanding for corporate social responsibility by showing commitment to the dynamic development and life standard improvement into reality in Panagyurishte. With this refreshing outlook, Assarel-Medet is sure to win many hearts and minds on the way to renewed business excellence.

Company Information Industry

Mining headquarters

Bulgaria founded

1964 e mp l o y e e s

1,700 revenue

Not disclosed products/ services

Mining

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African Carbon Energy

Propels South Africa to the Forefront of Underground Coal Gasification Written by: Tom Wadlow Produced by: Anthony Munatswa

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A f r i c a n Ca r b o n E n e r g y

The Theunissen project in the Free State province will become a vital contributor to the country’s electricity supply with the first 50 megawatt plant set to become operational in 2017

Schematic layout showing the scale of mining a very deep (370m) coal seam

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January 2015

A

frican Carbon Energy (Africary) is putting South Africa at the forefront of Underground Coal Gasification (UCG) by developing a one billion-tonne coal deposit at Theunissen in the Free State to fill a vital gap in the country’s electricity supply.

The junior miner, based in Pretoria and founded in 2007 by current CEO Johan Brand and late business partner Eliphus Monkoe, had pooled together their expertise in mining, exploration and gasification to establish a diversified commodities technology supplier in Southern Africa.

Working to register as an Independent Power Producer (IPP) with the Department of Energy, Africary is championing a technique that had been commonplace several decades ago, and one which holds several advantages over conventional coal mining which has now become the mainstream.

A F RIC A

Brand, a former government certified mining engineer at Sasol and an important part of its UCG development, outlined his ambitions.

He said: “My vision is to optimise the whole coal to electricity value chain. My aim is to safely and efficiently transform our valuable coal resource into a transferrable energy commodity which can be sold to meet local demand. In South Africa we are experiencing a huge electricity demand for what is a large and growing economy, and with aging Eskom power stations we are running out of supply.”

Theunissen Central to Brand’s objective is arguably the largest coal deposit in the Free State province near Theunissen, bought from BHP Billiton in 2012, and one ideally suited to UCG due to its coal being at an average depth of 350 to 500m.

16 Number of years the projects 50MW power station can be kept running with coal converted syngas

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A f r i c a n Ca r b o n E n e r g y

This is arguably the largest coal resource in the Free State province

Having acquired surface rights, Africary has access to 600 hectares, but has completed exploration drilling on a 100 hectare area to obtain a measured resource of roughly four million tonnes of coal. Production at this first site will make use of very efficient syngas-rated gas engines, and the plant is set for operation in 2017.

“This is enough to run our 50 Megawatt (MW) power station for 16 years, and if you consider that we still have 996 million tonnes of Inferred coal left, we are here for the long run,” Brand said. “It is a whopping large resource.”

The South African Department of Energy (DoE) recently unveiled a 2,500 MW coal base load IPP

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A F RIC A

(Independent Power Producer) programme, with Africary set to contribute 50 MW within three years and a further 1,000 MW by around 2022, comprising two systems of roughly 500 MW based on combined cycle gas turbine technology.

The bidding process for the DoE IPP contracts for the first 50 MW operations will start next year, and Africary will be using its strategic alliance partners, CDE Process Engineering and Aqua Alpha Directional Drilling, to implement the UCG syngas handling technologies and horizontal drilling.

Africary has a proven track record stretching before the 2012 acquisition. In 2009 it supported

Above: Graphic explaining the horizontal drilling layout of a UCG site

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A f r i c a n Ca r b o n E n e r g y

UCG Area showing farm land above the UCG site

What is considered a good UCG potential resource? > Coal seam depth of over 200 metres > Coal thickness of more than 3 metres > Ash content less than 60% > Minimal discontinuities > Isolation from valued aquifers

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January 2015

Australian ASX listed Wildhorse Energy with investment, technology and management skills for a proposed UCG Project in Europe. The whole Africary team has also a long track record with Sasol which is the world’s largest coal mining gasification company, producing 150,000 barrels of oil every day from coal gasification.

Why UCG? Underground Coal Gasification is a mining method that extracts previously stranded coal reserves in-situ, through a gasification process by constructing at least two horizontal boreholes, where one borehole is used to inject air/oxygen to convert the coal into syngas and another to bring the syngas to surface.

It is an economically and environmentally viable option for mining deep reserves (200 metres or deeper), and with two thirds of the planet’s coal unable to be mined through conventional techniques it is the most promising technology for the future.

A F RIC A

Brand added: “It was the mainstream method from around 1940 to 1960 in the former Soviet Union, which had 15 power stations and plants mining over 15 million tonnes of coal, of which one is still operational in Uzbekistan. In South Africa Eskom is operating their first UCG pilot since 2007 at Majub Power Station by cofeeding the syngas into a boiler, and is currently involved in the EIA and permit application processes to increase the size to 100 MW.” “About 80 percent of the energy in the coal comes out in the gas to surface, making UCG a very efficient mining process. At the

CEO Johan Brand inspecting a

Key Personnel

Johan Brand CEO Johan Brand is a business and project management specialist that has the ability to find commercial cost effective results and his innovation on technical and business aspects often leads to ground breaking solutions.

He was previously an employee of Sasol for 13 years and held the position of UCG Business Manager between 2006 and 2009, responsible for the establishment and management of UCG as a Sasol business unit. Brand has worked throughout South Africa, other parts of Africa and Europe for large multinationals and start-ups.

Theunissen coal roof exploration core

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A f r i c a n Ca r b o n E n e r g y The power station will consist of gas engines each in its own self-contained containerized units

“This is a complete breakaway from South Africa’s traditional mining industries of opencast or shaft mining” – Johan Brand 52

January 2015

same time no person has to be underground whilst you can implement high extraction mining, bringing great safety benefits.”

The syngas is contained deep underground inside the coal mine by operating the process at a lower pressure than the hydrostatic pressure surrounding the coal strata, meaning that surface leakages are prevented, while ash is also kept from producing smoke and other environmental hazards like leaching.

MININ G

The process also uses a tenth of the water used by an equivalent sized boiler systems.

“It doesn’t require much manpower to run either,” Brand said. “The boreholes are predrilled and last for eight to 10 years, so there will only be a few people looking after the gas cleanup equipment and power generators. The rest operates autonomously via computer control.”

“This is a complete breakaway from South Africa’s traditional mining industries

Click to see an aerial view of the plant

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A f r i c a n Ca r b o n E n e r g y

Above: Exploration drilling at the Theunissen UCG site

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of opencast or shaft mining, which are both very labour intensive and require huge amounts of upfront capital.�

Together with the likes of Exxaro, Eskom and Sasol, Africary founded the South African UCG Association, designed to champion the technology and create industry standards and training schemes, propelling the country to the forefront of the global industry.

A F RIC A

Poly Generation Brand’s vision for the company is to move into poly generation, combining electricity production with the creation of chemical products such as ammonia, fertilisers and liquid fuels.

The greatest challenge that the CEO overcame on this project was to find the sweet spot of connecting three divergent areas of constraint – a suitable coal resource, a productive, save and environmental mining technology and a lucrative market.

He concluded: “With any resource and technology, it can only be effectively utilised when there is a suitable market for it. The one thing about syngas is that by itself it is not a commodity people would buy directly. Either you have to turn it into natural gas or electricity or some other fuel or chemical. I was fortunate enough to come from an environment doing exactly this, making many products from syngas.

“As a junior mining company we are very excited to compete for projects of such a scale. We get support from local banks as they know the current government (DoE and Eskom) IPP initiative is the sovereign 30 year off taker for the electricity.

“What UCG needs is countries and companies that are willing to build a value chain around it.

To lead the way we have worked hard to become UCG specialist that can design, integrate, operate and own the whole value chain.”

Company Information Industry

Mining headquarters

Pretoria founded

2007 e mp l o y e e s

Less than 10 revenue

None, as we are in project development phase products/ services

Mining, Underground Coal Gasification

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True North Gems

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

Produced by: Bobby Meehan

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True North Gems

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

Through key partnerships and a steady commitment to sharing the benefits of its business, True North Gems is striving to become the 58

January 2015

world’s premier producer of Rubies and Pink Sapphires by creating a legacy of social responsibility.

Partnership with LNS Greenland In March, True North Gems was awarded a 30-year mining permit for the Aappaluttoq Ruby deposit in Southwest Greenland. The mining project, which has an initial mine life of nine years, will range from an open-pit mine to a gemstone grading and processing facility. To finance the infrastructure costs, the company needed to secure a financial partner.

“We wanted to engage with

CANADA

someone who had an interest in focusing on the quality of the ruby- and sapphire ore, not just the quantity,” says Bent Jensen, General Manager of the Aappaluttoq project.

“Normally, you want to focus on the volume and get the most out of the ground. With us, that’s not the case. We want to protect the mineral ore as much as possible.”

The company set off in search of an investor with the same mindset, experience, and financial backing to fit its needs, and the Leonhard Nilsen and Sonner AS Group (LNS) had all the attributes.

“We wanted to engage with an operator that would focus on the motive. We quickly came to the conclusion we needed to get an operator who would also be an investor,” says Jensen. “That’s why they’re interesting. They have the experience building and operating mines, the financial backing we need, and they were initially involved in the gold mining here in Greenland.

So they have a relationship with the community.”

True North Gems and LNS Group through LNS Greenland signed a deal for the latter to invest a total of $34 million into the project through w w w. t r u e n o r t h g e m s . c o m

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airgreenland.com

We know the drill

With decades of experience acquired from Arctic operations, Air Greenland is your reliable and dynamic partner for exploration.

You will benefit from the fact that we are part of the Greenlandic society. We have the advantage of a broad network. We know the local requirements and we have an infrastructure in the form of hangars and aircraft all over the country.

We aim to provide a high level of service and this means that every single job is specifically tailored to suit the customer’s requirements.

Our 12 robust AS-350 helicopters can handle almost any task. It is the ideal helicopter for sling operations with our experienced and competent long-line sling pilots. Our 8 Bell 212s with their versatile and spacious cabins, are effective in mobilizing your exploration camp.

Our Dash 7s are very flexible combi/cargo aircraft that can meet all passenger and cargo requirements.

With its unparalleled STOL capability, it matches the short runways all over Greenland and it is capable of landing on frozen lakes and other simple runways.

We are simply your sustainable choice in Greenland.

You just have to ask.

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True North Gems

CANADA

mine infrastructure and capital loan.

The deal included: • Building a port.

• Building a complete and modern camp for approx. 48 workers.

• Building Fuel depot, Explosive Depot, Heli-pad and workshop.

• Building a Process Plant.

• Building approx. 8.5 km of roads to tie all facilities together.

• The completion of all infrastructure, which will enable planned production to commence in 2015.

• Once construction is completed, LNSG will be in charge of the daily operation of the mine-site.

supplier profile

AIR GREENLAND

Greenland’s national airline Grønlandsfly was founded in 1960.

The company changed its name to Air Greenland in 2002 and has undergone rapid development during the last 50 years: From seaplanes to jet planes; and from helicopter services to scheduled services with fixed-wing aircraft. Then, as now, Air Greenland operates in Arctic airspace, which presents a unique range of challenges.

Website: www.airgreenland.com

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

Contacts Energy Manager Tage Lindegaard tal@kni.gl

Logistic Manager Niels Chemnitz niz@kni.gl

All types of liquid petroleum products TNG_polaroil_promo_196x137mm.indd 1

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

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SECURITY PROVIDER TO TRUE NORTH GEMS GREENLAND

Contact: Lars.Andersen@gl.issworld.com Phone: +299 556 450

SECURITY SERVICES

At ISS, we believe that great service comes from motivated employees, who understand your purpose and empathise with your needs.

True North Gems

CANADA

“If you look at our social impact assessment report, we raise the possibility of hiring local people right from the start,” says Jensen. “This is a decision we made a long time ago as we wanted to engage with the local community to make sure they benefit from this project. When we have a mandate we strive to adhere to it.”

For the project, the company has planned to hire roughly 80 workers of which the company has committed to ensure that at least 75% of these will be local employees in which they would train and implement in various functions of the operation.

According to Jensen, after initiating the Hearing Process, receiving exploitation permitting Community involvement and approvals of ExploitationTrue North Gems has completed the Impact Benefit Agreement (IBA) and Abandonment Plans from the Greenland government, negotiations and all parties have executed a ground breaking accord. the company had received 300 The Company has also finalized the unsolicited applications from the local community. subsequent operating and closure “We couldn’t believe it. Over 300 plan for the Aappaluttoq Ruby people applied for positions within deposit. As part of its agreement, our company all on their own. I think the company plans to engage with the community is starting to trust us the local community and provide training and economic benefits from and our commitment.”

In regards to training, the company the project.

In return, LNS will receive 7 percent initial ownership in the Greenlandic company True North Gems Greenland (TNGG) and upon completion of the infrastructure and reaching operational status LNS will have earned the right to a further 20 percent ownership. Bringing their total ownership to 27 percent.

“We had other interesting investors but we chose LNS because we saw the Group as the ideal partner for the project. At the end of the day, we wanted what was best for the not only the project, but also the community” says Jensen.

“We see it as a very strong joint venture.”

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True North Gems quickly realized most of the community had already been trained in the mining industry.

“In 2009, the Government opened a mining school. The school is responsible for running a training program called Common Core. Over 300 people have passed the course.

We quickly realized there are a lot of people who already have the skill sets needed,” says Jensen.

Living up to their promises To further enhance the community, True North Gems is developing

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a local recruitment strategy which focuses on pre-employment, recruiting and employee retention and employee development initiatives.

The company is also planning to launch an array of cultural awareness, community wellbeing and health and safety programs in an effort to address local issues. In addition, the company is working with the local community to minimize any negative environmental impacts of the project.

With pivotal partnerships in With a 30 year proven track record in the Artic, Ramboll is the region’s leading consultancy.

As a strategic partner to customers in the building, transport, oil & gas, energy, mining and society building sectors, we deliver optimised solutions that are environmentally and socially responsible. www.ramboll.com/arctic

meeting arctic development challenges (delivering sustainable solutions)

CANADA

Company Information Industry

Mining headquarters

Vancouver, British Columbia

place, True North Gems is building the platform for a successful mining operation through trust and integrity.

According to Jensen, by building relationships through trust and open communication, True North Gems is working to provide social, cultural and community support, which will benefit both the community and the company.

“We’ve already hired our first set of local-based employees. The people of Greenland can now see we live up to our promises.”

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Cementation A New Way of Building Mines Canada’s premier mining contractor Cementation is changing the way mine contracting is carried out Written by: Robert Spence

Produced by: Bobby Meehan

67

C e m e n tat i o n

Cementation raise boring team with underground set-up.

C

ementation is an underground mine contracting and engineering company that provides an extensive array of services for clients throughout North and South America. Based in Ontario, Canada, the company has a unique structure, one that is well suited for technically challenging projects.

“We set out to do something different,” says President of Cementation, Roy Slack. “We wanted to change the way mine contracting is carried out.”

The company started by focusing on three key aspects: safety, relationships 68

January 2015

and the way it implements contracting.

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

CANADA

establish both continuity and one point accountability through a strong engineering service within our contracting group.

“These are the changes we wanted to make.”

corporate values as well as legislated requirements specific to the jurisdictions they work in.

Cementation has also developed a risk management protocol.

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

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C e m e n tat i o n Relationships Relationships are the lifeblood for contractors. They play a vital piece in keeping clients up-todate with progress and changes in projects as well as occurring repeat business. With that being said, Cementation is focused on maintaining and growing its relationship with clients as well as employees.

Along with building quality client and vendor relationships, the company strives to maintain solid employee relationships.

Cementation has implemented a wide array of programs for helping

supplier profile

CANADA

employees succeed. In Canada, the company has developed and utilized a leadership development program for employees. For this program the company utilizes the Harvard Manager Mentor program for leadership development, a unique e-learning platform that gives employees an opportunity to receive customized programs geared at their specific training requirements.

“It’s a computer based training program, but then we establish various forums where the trainees can get together to review and discuss the content,” says Slack.

“Another aspect of the program

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C e m e n tat i o n is Lunch & Learns, where we bring in different departments to present on what they do – it’s sort of like an internal cross-training program. We want everyone to understand what each department is involved in.”

Slack adds, “The training program was developed with our employees and supervisors in mind. We enlisted a number of people in the program with a set number of courses to help

CANADA

them develop the skills required to succeed.”

Along with nurturing quality relationships, Cementation is focused on cultivating meaningful partnerships. The company has developed numerous Aboriginal partnerships across the Canadian landscape to support and develop the Northern communities that those partners live in.

Recognized as a “partner of

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

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C e m e n tat i o n

Inspecting bored shaft at AuRico Gold’s Young-Davidson Mine near Matachewan, Ontario.

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January 2015

CANADA

choice” for First Nations and Inuit groups, the company has created opportunities for Aboriginal groups by creating jobs, training and resources to succeed.

According to Slack, the ‘New Miner’ program was implemented nine years ago in an effort to introduce new people into the industry, including the First Nations partners.

“The program is an excellent tool for extensive training. It includes roughly three months of classroom indoctrination and nine months working on site. Participants are paid the entire time and they’re expected to treat the training as a job, which it is. We’ve had nothing but success with the program.”

By staying true to its vision and goals, Cementation has become the mining contractor of choice for both clients and employees. By achieving excellence in safety, performance beyond expectations and quality long-term relationships, the company has provided the mining industry with a different approach to the way mine contracting can be carried out.

Company Information Industry

Mining headquarters

Ontario, Canada founded

1998 e mp l o y e e s

1000

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How

EP Minerals

A Long History, A Modern Approach

w the industrial minerals company impacts the world over.

Written by: Ian Hanner Produced by: Bobby Meehan 77

EP Minerals

EP Minerals Lovelock, Nevada plant

O

ver the course of its storied 171-year life, EP Minerals has grown to become one of the more exciting and progressive industrial minerals companies in the United States—and it’s just getting better.

Founded in 1843 by Edgar and 78

January 2015

Stephen Conkling, the company originally went by the name Eagle.

In 1916, Judge Oliver Picher merged the company with his own lead mining business to create EaglePicher Lead, the forerunner of modern day EP Minerals.

In the years since, the ambitious

USA

Loader and equipment at the Lovelock, Nevad mine

minerals company has acquired a series of highly valuable assets, such as a large diatomaceous earth (DE) deposit and factory in Clark, Nevada. In 1959, the company commissioned a DE producing plant in Lovelock, Nevada, which remains the largest DE producing plant in the world to this day.

That plant was upgraded in 1993 with a perlite expander, officially bringing the company into the perlite business. A new DE plant was built and commissioned in Vale, Oregon in 1985. In 2013, EP Minerals acquired the Moltan Company and with it additional mines and

processing facilities in Nevada and Tennessee. Finally, in 2014, a new perlite facility was opened in Blair, Nebraska. “We have six plants, close to 600 employees, plus or minus, and with that we sell all over the world and to about a hundred countries,� said Al Kaczanowski, vice president of marketing.

What They Do EP Minerals doesn’t just sell its products in bulk. The company maintains a full-scale R&D department devoted to the development of cutting-edge, w w w. e p m i n e r a l s . c o m

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Where Quality & Service is our mission!

Nevada Owned Company “Securing Your Product From The Inside Out” since 1988

GTG Packaging is a distributor for many major manufacturing firms, that produce only the highest quality packaging and shipping materials available on the market today. Our fully stocked, 32,000 sq ft warehouse, proudly services the Business, Industrial, Agricultural, and Mining markets.

Customer service 775-355-0233 650 Innovation Dr. Ste. A | Reno, NV 89511 | www.gtgpackaging.com

PACKAGING EQUIPMENT/ MACHINERY PALLET STRETCH WRAP MILL PRODUCTS POLYFOAM POLYETHYLENE PRODUCTS HEAT SHRINK FILM CONTAINERS BOXES CORRUGATED LABELS ADHESIVES CUSTOM PACKAGING STRAPPING TAPES BUBBLE WRAP ENVELOPES BAGS PELASPAN LOOSE FILL PACKING MOVING & STORAGE SUPPLIES

EP Minerals products, such as AXIS DE and AXIS Ceramic soil amendments, AgReady fertilizer carrier, DEsect insecticide and NXT-2 arsenic remediation product.

While perlite and absorbent clays are a large part of the company’s business, the cornerstone of their product offerings is DE. Though this material is regularly present in almost everyone’s life, its applications are often overlooked by those not involved in the sector.

“We sell DE into well over a hundred markets,” said Gregg Jones, president. “Our largest market is beer filtration, [which]

USA

would be a radically different process if DE wasn’t available. Same thing goes for wine and juices.”

He added that DE is an essential component in high-quality paints, giving them a matte finish.

“We also sell it as an animal feed,” Jones said. “It’s used for filtration in biodiesel and in the oil and gas industry. It goes into catalysts, polishes, and even facial scrubs. It is used to filter corn syrup, citric acid, sugar, vegetable oil and soy sauce.

It’s really a key ingredient in almost every food and beverage that gets filtered, and the reason they use it is that it’s extremely versatile.”

supplier profile

GTG Packaging

GTG Packaging is a local distributor for many major manufacturing firms that produce only the highest quality packaging and shipping materials on the market today! This website contains a general listing of the materials carried by GTG Packaging and The Box Store. If an item you need is not listed, please call to check on it’s availability.

Website: address goes here as the last entry

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EP Minerals The list goes on: maple syrup, fertilizers, pet litter, pharmaceuticals, swimming pool filters and more.

In addition to the many applications for EP Mineral’s DE, their absorbent clay is regularly used on baseball fields as well.

“The product that’s used a lot on baseball fields is calcium bentonite.

That’s the red clay that goes around the field,” Jones said. “That’s a product that’s important in the United States, Caribbean countries and Japan.”

we’ve just rolled that out across the whole organization. “ He added, “All of us, including me, have things to work on that we don’t do so well today; leave your ego at the door, practice blameless problem solving and listen generously.”

How They’re Evolving While EP Minerals’ facilities obviously don’t date back to the company’s origin 171 years ago, some of their infrastructure has become dated none-the-less. In an effort to maintain the quality of their products, the company announced Who They Are a wide range of facilities upgrades, Many companies refer to themselves as “family companies” some of which have already been completed. or having “family values,” but ultimately most fail to display those “We put a new dryer on one values. EP Minerals appears to be end of our kilns at Lovelock—a very big investment that improves an exception.

“We’ve spent a lot of time defining the quality of the product coming out of the process,” Jones said. what behaviors represent our “A big investment in our Clark culture today and what we want it plant to make what we call our to be in the future and we call that natural powders and some of the the EP Way,” Jones said. “These technology we put in there was new fundamentals [cover] how we to us. It gives a better particle size interact with each other, how we distribution and better control of the treat our customers and how we make decisions on a daily basis, and product overall for the marketplace.”

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The company recently finished construction on a perlite plant in Nebraska.

“We’re shipping ore from Nevada—our own mine, our own perlite ore facility— and we’re shipping it in railcars to Nebraska,” Jones said. “It gives us a nice centrally located perlite facility to supply what is a pretty big market in the Midwest.”

He added that among other improvements, the company is also investing heavily in their exploration group to facilitate the discovery of new ore deposits.

Among those investments are technologies that improve their overall drilling ability.

It would be wrong in every sense of the expression to refer to the veteran company as an up-and-comer or say they were “on the path” to success—they’ve been there for some time.

Rather, it’s important to point out all the ways they’re already present in the market around us, and that they have no intentions of slowing down.

“I think it’s worth noting that a lot of businesses are selling commodities and they don’t have a lot of interaction with the end-use markets,” Jones said. “One thing that we’ve always been focused on, and its part of our growth story, is not only understanding our markets that we sell into and understanding the value that our products contribute to those applications, but working on new applications. That’s what’s always gotten me interested in the business: the constant opportunity to find something new and figure out how we can sell into a new space.”

Company Information Industry

Mining headquarters

Nevada founded

1843 e mp l o y e e s

600

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83

Harrison Gypsum The World of Gypsum

Harrison Gypsum discusses how the company has developed into the largest producer and supplier of gypsum in the United States Written by: Robert Spence

Produced by: Bobby Meehan

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Ha r r i s o n G y p s u m

Wirtgen 2200SM Continuous Miner (Milling Machine) 86

January 2015

USA

Overview of Bouse Junction Mine in Northern Oklahoma

S

ince 1956, Harrison Gypsum has been a prominent figure in the gypsum mining sector.

The company has made a name for itself by maintaining a consistent and high level of product quality.

They operate four gypsum mines in Oklahoma, one mine in North Texas and three limestone mines – two in Oklahoma and one in South Kansas. The company also operates a number of hard rock quarries and pits in South Texas.

Used as a fertilizer and constituent in many forms of plaster, gypsum is a soft sulfate mineral composed of calcium

sulfate dihydrate. The use of gypsum is prevalent in the oil and gas industry as a road aggregate, and widely used as a calcium additive for yeast food products like bread.

Harrison Gypsum has developed into one of the largest producers and suppliers of gypsum in the United States by integrating a family-oriented approach, careful acquisitions and continual investments in mining equipment and infrastructure.

From the beginning Born and bred in Oklahoma, the w w w. h a r r i s o n g y p s u m . c o m

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Wichita Falls, TX 940-767-8212

Ha r r i s o n G y p s u m

USA

High Purity Gypsum Rock being pushed up w w w. h a r r i s o n g y p s u m . c o m

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Ha r r i s o n G y p s u m Harrison Gypsum Company started from humble beginnings. The mining company, which originally formed under the name Cement Gypsum Company, started as a small family operation supplying gypsum to local neighbors in the community. Commencing its first mine (Mine No.1) in 1955, the company changed its name in 1956 to reflect its overall commitment to the mineral.

Along with a family-oriented approach to business, Harrison

WATCO

Companies

Watco Companies is proud to serve our great Customer Harrison Gypsum.

Watco Companies is a transportation services provider offering rail, mechanical, and terminal and port services.

WWW.WATCOCOMPANIES.COM

Gypsum believes pursuit of consistent quality leads to cost effective mining and operational efficiencies. This dedication to quality and efficiency has aided Harrison Gypsum in becoming one of the top gypsum producers around the U.S. In fact, in 1994 the U.S. Department of the Interior Publication named the company’s Gypsum No. 2 mine the largest single gypsum mine in the United States.

In continuation of their dedication to quality products, Harrison

USA

in South Texas for an undisclosed sum. The acquisition became ACG Materials, which now operates six mines producing aggregate material used to build and maintain roads.

The company includes a grinding operation that produces gypsum products for a multitude of enduse applications – including food grade calcium sulfate. Additionally, a state of art plaster plant that produces both alpha and beta hemihydrate plasters which are used in construction products, ceramic products and dental formulations in also included within the division.

The company also supplies soilstabilization products and steel products manufactured for the energy market.

“We are very excited about this next stage of growth for Harrison Growing through acquisitions Gypsum. Our new Eagle Ford Harrison Gypsum is content on operation will ... help us capitalize growing its business through on the significant growth occurring acquisitions. The company, which in South Texas,” said Russ Harrison, is keen on furthering its success CEO of Harrison Gypsum. “Our by incorporating new projects to its repertoire, has acquired a wide expertise in mining aggregates and array of companies in recent years. existing customer relationships should bring significant benefit to In early 2013, the company ACG Materials.” purchased the assets of Pinnacle Materials LLC’s Eagle Ford Division Gypsum established Allied Custom Gypsum Inc. in 1987, a customized service aimed at providing customer-based solutions for quality gypsum products. As its own entity, Allied Custom Gypsum Inc. provides custom products and a series of ground gypsum products including flame retardant fillers, animal feed additives, agricultural and turf products, and a high purity food and pharmaceutical grade gypsum to select markets in the industry.

“We take pride in offering flexible responsive services to our customers, while also maintaining consistent quality standards that produce a premium product,” says Kris Kinder, Vice President of Operations at Harrison Gypsum.

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Heavy loaders managing windrows of gypsum that milled from a prepared production pad

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Along with acquiring new businesses, Harrison Gypsum is committed to capital investments.

The company has made multiple investments to upgrade to modern mining equipment and improve infrastructure, helping the company expand projects, gypsum reserves and production capacity. The company also utilizes a preventative maintenance program that ensures dependable operation and minimal downtime.

Company Information Industry

Mining headquarters

Oklahoma founded

Striving for perfection Along with acquisitions and company culture, the success of Harrison Gypsum boils down to quality products. The company has created a system that assures every possible measure is taken into account to maintain a consistent and high level of product quality.

The company thoroughly tests deposit sites to ensure the resultant ore is up to par and suitable for use. In addition, selective mining techniques are utilized to ensure recovery of gypsum is maximized and contaminants and substandard rocks are prevented and discarded.

Additional, Harrison Gypsum controls all aspect of mining, processing and packaging operations.

This guarantees a high level of quality and product confidence along with customer satisfaction.

1955

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Liebherr-Australia:

Technology and Innovation Dri Manufacturing for Mining

The company’s high quality, 100 percent Liebherr-mad company culture.

Written by: Laura Close Produced by: James Hayes

riving Efficiency in

de products exemplify Liebherr’s

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Mining is a major part of LiebherrAustralia’s business plan, although the company has several other divisions successfully operating in the country. Since the onset of the mining boom, Liebherr has been extremely successful with earth moving, mining and crane sales, leading to an expansion of their facilities, including a recently completed, dedicated remanufacturing location in Adelaide.

Liebherr-Australia, part of the global, family-owned company Liebherr Group, began its tenure in Australia in the 1970s with the 96

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dealership network. In 1981, the Australian affiliate of the company was officially incorporated, and the commencement of their own operations under the Liebherr name. Liebherr-Australia Head Office moved to the current location in Adelaide in the 90s.

Remanufacturing c allows Liebherr to repair of all of their own components, which offers the customer a quality end product at a reduced cost. Liebherr promotes a vertical integration model which allows l control of our cost and component life, in turn

au s t r al i a

reducing costs for the end-user.

“Our key customers that Liebherr-Australia predominately work with are tier-one mining houses which largely deal in iron ore and coal said David Pichanick, the general manager of sales and marketing at Liebherr-Australia.

“The company has been very successful with the likes of BHP, Glencore, Fortescue Metals Group, Leighton Group, and Downer to name a few. We’ve put such a big installed population of machinery out in those two commodities of late, and that machinery is working

even harder now, despite the price of both coal and iron ore dropping.

Both our parts and support business will continue to grow” New Facilities Liebherr-Australia recently invested over $170 million to complete new support facilities in Sydney and Newman Western Australia.

Existing properties in Mackay, Mt. Thorley, and Perth were expanded to accommodate the company’s goal of continuing to meet our customer needs.

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Always at the Cutting Edge Focusing on Customer Service & Satisfaction

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

34 Aldenhoven Road Lonsdale S.A. 5160 P.O Box 94

ADELAIDE PROFILE SERVICES APS ALUMINIUM & STAINLESS

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

Li e b h e r r - A u s t r a l ia company’s expansion efforts is the remanufacturing facility in Adelaide.

Construction started in January of 2013 and was completed in August of this year to a cost of around $80 million. The facility will be hiring around 138 new employees over the next year and a half out of the South Australian job market.

“The rebuild centre focusses on all of our major components for our mining operations in Australia and New Zealand,” said Pichanick.

“All of the spare parts and components from the machinery will be sent back to Adelaide for remanufacture and then go back into the distribution outlets around Australia. Our business had a very decentralised model previously; however we are now consolidating everything under the one roof. The disassembly area includes a washbay, shot-blast, disassembly workcells, quality control station and machining. There are over 2,000 locations for pallets in the SEU warehouse, as well as cylinder and rod storage, a place for REMAN planning and a production office.

The assembly area includes a paint booth, another quality check

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station, 12 wall-travelling cranes and four overhead gantry cranes.

100 Percent Liebherr Vertical integration is one of Liebherr Group’s strategies. As the Liebherr family built the brand and the business, they have consistently found ways to develop the company’s own technology in house; the machinery the company offers is much more efficient and cost-saving for the end-user because of this business strategy.

“The most important thing for us is controlling the quality and reducing the cost where we can,” shared Pichanick. “We can do this because of our vertical integration model. We want to be able to provide our customers with the lowest cost per tonne on the market through the product lifecycle You’ve got to have a good quality machine that’s reliable, but to maintain our reputation it has to be the most cost-effective machine on the market. Liebherr-Australia has built that reputation.”

A way the company successfully reduces costs is through their innovation process. When a w w w. l i e b h e r r. c o m . a u /

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Li e b h e r r - A u s t r a l ia prototype is made, it’s already been well designed and engineered that it goes to work right away.

With research and development undertaken in house, and a high regard for innovation, LiebherrAustralia are able to produce the right machinery the first time around, instead of needing several prototype models. This success is only possible with direct customer feedback and input through the research and development process phase.

Partnership with Detroit Diesel Although the goal of Liebherr is to design and produce 100 percent company-made products, they still work with outside suppliers on some components. Detroit Diesel is a major supplier for engines, and supplies the engine for the previous generation of the company’s electric powered mining truck; the largest in the world.

“This specific truck is very dependent on the engine,” commented Pichanick. “The reliability and the innovation that

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

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Liebherr credits Bosch Rexroth with helping them along their evolutionary journey. Economical, precise, safe, and energy efficient: drive and control technology from Bosch Rexroth moves machines and systems of any size. The company bundles global application experience in the market segments Evolution Of Product Life of mobile applications, machinery After fourteen years in production and over 350 units globally, Liebherr applications and engineering, ensures its T 282 Series Haul truck factory automation, and renewable energies to develop innovative continues to provide business components as well as tailored partners the latest in technology, system solutions and services. through strategic investment in Offerings such as Bosch Rexroth’s product evolution. The highly hydraulics, electric drives and efficient IGBT Drive System and its class-leading payload to weight controls, gear technology, and linear ratio ensure maximum productivity motion and assembly technology all from one source have proven to help and performance.

Liebherr achieve a more efficient In May 2014, Liebherr proudly and effective product evolution. launched the next exciting evolution for the T 282 Series Haul Truck: the A Passion To Work T 282 C Extended Life Profile, which “The most important thing in any is the result of an extensive Liebherr business is you have to value your international collaboration project, focussed on enhancing and increasing people. A lot of companies forget they are successful only by the the T 282 C product life cycle. This delivers increased economic machine great people they have. You have to give them a career and an exciting life, resulting in substantial reductions and enjoyable place to work. in total cost of ownership for Liebherr Liebherr-Australia does that.” business partners.

Detroit Diesel supports us with is incredible. They make a very good product, and are on the same wavelength as Leibherr-Australia when it comes to making sure we are delivering what we need to for our customers.”

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Li e b h e r r - A u s t r a l ia Pichanick was very passionate when talking about how the company treats its employees.

Liebherr-Australia has many employees that have length of service dating 10 to 20 years at the company, and one man who just celebrated his 50 years of service with the company this year!

“You know what sets Liebherr apart?

We have a culture where everyone is driven by the customer’s needs and passion for the long term outcome.

It’s all about our Core Values! “Our employees just want to be people that serve their customers” said Pichanick.

They want to do a good job and are

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very proud of what they do. We all build trust in, and we respect each other for who we are and what we can bring to the company. If everyone’s committed 100 percent every day to giving the customer what is promised, and people enjoy what they’re doing, we consider it a success.”

The Liebherr Way Like any successfully run company, Liebherr is in the business of meeting the high expectations of their customers. The company is not only selling a product, but the support and maintenance of the product for its lifespan. To keep their

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

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Li e b h e r r - A u s t r a l ia

customers coming back, Liebherr provides not only exceptional service but also high-quality customer support and interaction.

The company provides almost complete visibility into the design process for the customer, allowing them to provide feedback throughout the process.

“We listen to the customer and develop a product they really want,” said Pichanick. “There’s so much passion in the business, and that’s a big part of the reason we’ve become so successful and enjoy what we do. Everyone that works at the 104

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company is proud and really wants to become part of that journey to become successful. The customers really enjoy it as well; they get great visibility into our business. They see the simplicity: if there’s a problem, it gets fixed very quickly. That’s just the way the business works.”

Liebherr-Australia doesn’t offer the whole range of products their competitors have. Although they manufacture for the niche market of digging and hauling dirt, it’s one of the most important parts of the mining process. Their goal throughout is to offer the most

au s t r al i a

cost efficient and effective model that produces throughout its entire lifespan. By developing their products alongside their customers, they produce the product that the customers need and want, not a product the customer must adapt to.

As for growth, the Liebherr organisation thinks long-term for the strategic plans.

“The third generation of the Liebherr family is now coming through the business,” said Pichanick. “. We must continue to build our reputation in order to grow and continue our success. If the family continues to invest the way they do, we will always be one step ahead of the pack. All of the company’s research and development is self-funded. For an innovative, technological efficient company like us, this strategic plan will carry us far.”

Company Information Industry

Mining headquarters

Para Hills West, South Australia founded

1981 e mp l o y e e s

600 revenue

For The Future Liebherr’s goal is to be the best leading supplier and to support business for mining equipment.

This goal isn’t just for Australia, either.

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

$600 - $700 Million products/ services Since its inception in Australia in 1981, Liebherr-Australia has expanded rapidly, with offices throughout Australia and New Zealand. The company sells and supports a range of in-house designed, produced and maintained products include crawler cranes, mobile cranes, deep foundation machines, earthmoving equipment and mining equipment.

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UGM Australi

Cost-effective options f

CEO Paul Hartcher discusses the company’s re how it’s set to turn the coal sector on fire.

Written by: Robert Spence Produced by: James Hayes

ia:

for coal producers

ecent acquisition and

TH e UG M G r o u p

Night shot of mining operations

T

he coal industry in Australia is seeing cost and production pressures and this belt-tightening has impacted upon the mining services sector, but one mining service company has used the buoyancy of the past to position itself to not only ride through current travails, but to continue the success of the past with additional, strategic, insector diversification.

The Australia-based mining services company the UGM 108

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Group, which has a long history of specialized operational and advisory support and training to some of Australia’s largest mining companies, has acquired the ADDCAR Highwall Mining Technology from Arch Coal and the move for ADDCAR, from ownership by a coal producer to a contracting base (with Engineering and OEM capabilities) is seen as the appropriate melding of corporate focus and product delivery internationally.

au s t r al i a

ADDCAR UGM completed the acquisition of ADDCAR Technologies in February 2014 and the $21 million acquisition from Arch Coal gives UGM all licenses, patents and technology related to ADDCAR’s systems, including the manufacturing facility New Beginnings in Ashland, Kentucky. UGM currently Beginning in 1997 as a single service has four contract mining operations provider for underground mining, across the USA and Australia. the UGM Group has built a stout “Whilst we acquired ADDCAR from reputation for developing cost Arch Coal in 2014, we’ve been effective and reliable relationships involved in the technology since with clients. The company, which 2008, and I have been personally offers a comprehensive range of involved since 1996” said Hartcher. underground mining services, “The strategy we’ve put in place for specializes in engineering, plant ADDCAR is to not only incorporate and equipment hire, projects it into our contracting business but and construction, safety and to also educate the industry as to environmental management, and the possibilities this technology diesel services. offers to optimize resource Headquartered in Australia, the realization across the globe as this company also has a Corporate system is the most productive and Advisory arm, Engenicom, which the leader in resource recovery provides mining engineering, through the patented guidance resource assessment, environmental, system that keeps the entries in line safety and project management and in-seam services to mining related industries The new addition also adds to such as rail, power, port and of UGM’s commitment to not only course, coal mines. providing quality mining services,

“We think there’s a grand opportunity for the ADDCAR technology, not just here in Australia and the traditional American market, but internationally as well” said Paul Hartcher, Managing Director of the UGM Group.

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TH e UG M G r o u p but innovating and implementing new ideas.

“Whilst our underpinning business base is as a contractor, we have a strong tradition of focusing on innovation and we are excited about the opportunity this acquisition affords us to enhance the technology and broaden the applications”.

ADDCAR acquisition will serve as a means to introduce the product to the North American market and ever since the events surrounding the Sago mine disaster, removing conductivity corridors from roadways has became an imperative and this product delivers that outcome.

Additional products such as the UGM Tow-Hitch, designed to be attached Innovation to LHD vehicles and remove the need UGM has developed the only nonfor operators to physically connect steel, FRAS (Fire Resistant Anti-Static) trailers, will also be marketed in the pipe for use in explosive atmospheres USA building upon UGM’s knowledge such as underground coal mines. The and experience in the underground mining sector.

ADDCAR Innovation is well underway and despite the system being the only one that can mine greater than eight degrees and achieve 500 metres plunge depth, development is well • Mining • Fabrication underway to surpass the current PRECISION MANUFACTURED • Petroleum • Design PARTS, REPAIRS AND • Coal • Machining capability of sixteen degrees.

FABRICATION FOR OVER 35 YEARS! Riggs Machine provides fabrication, repair and design services to the coal, steel, power and petroleum industries.

• Milling • Turning • Boring

• Steel Mills • Rolling Mills

Ph: +1 606 324 0090 3850 Belford Street, Ashland, KY 41101, USA

www.riggsmachine.com

Working With Glencore UGM signed a five year highwall mining contract with commodities giant Glencore earlier this year.

The deal is expected to help Glencore produce one million tons of coal a year at its operation.

The company’s ADDCAR System

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equipment has completed its move from the Kentucky facility to Glencore’s Newlands Mine in the Bowen Basin. With operations due to commence later this year, the ADDCAR System is helping lead the resurgence of Highwall mining in Australia.

The new system in Glencore’s operations will provide: • 90,000 tons per month consistently • Productivity: 27/30 ktonnes per employee year • Penetration: +500 meters • Seam heights: 0.9 meters – 8 meters

Company Information Industry

Mining Global headquarters

Warners Bay, NSW Australia e mp l o y e e s

300

Future Endeavors The future is looking bright for the UGM Group. The company, which has an array of projects lined up, is gearing up to take its ADDCAR technology to the next level.

“What attracted us to the ADDCAR system is we knew what it was, and we saw it as a technology that if taken by someone who knew it, it could be enhanced,” said Hartcher.

“Since 1993 the system has mined roughly 100 million tons of coal. I don’t think people realize the potential of this technology.”

Hartcher adds, “We’ll have five more systems operating in the next three years.”

With the new system in place, UGM is working to bring the combination of ADDCAR and engineering to Australia’s coal industry.

products/ services

UGM Australia is a diversified professional services company supporting mining and related industries including ports, rail and power generation.

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Austmine:

The Leading Industry B the METS Sector Written by: Megan Edwards, Membership and Communications Manager

Body for

A u s t mi n e

Sedgman Benga coal handling and preparation plant. Mozambique, Africa

A

ustmine is the peak industry body representing the Australian Mining Equipment, Technology and Services (METS) sector. Our members develop and supply innovative, 114

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safe and cost-efficient products and services to the mining and mineral processing industry globally.

Austmine promotes its members’ capabilities, connects with the international mining

au s t r al i a

community, drives export and champions innovation.

Austmine has been working for 25 years to have the Australian METS sector recognised as the world’s leading source of

advanced technology for the mining industry. Austmine members provide the global market with the industry’s best practice innovations and world leading solutions. w w w. a u s t m i n e . c o m . a u

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Joy Global leaving a

footprint in most South American mining projects

The sale of mining equipment is the starting point toward complete service cycles as a partner for the mining industry.

Written by: Rebecca Castrejon and Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: Cesar Cruz-Saco, CEO, Joy Global Peru

Joy Global (Peru) S.A.C.

O Offices in Peru

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ne of the world’s leading companies in supplying equipment and machinery for the mining industry began its productive journey about 130 years ago in Milwaukee, Wisconsin. Back in 1884, Joy Global Inc. first offered repair services and machinery assembling for manufacturing companies.

Their business line has certainly transformed since its establishment by now offering heavy machinery solutions to major mining companies, providing a vast array of blasting, crushing, excavating, loading, and hauling machinery, as well as original replacement parts for such equipment. Joy Global’s sales and rentals are a necessary resource for coal mining, copper extraction, iron mining, oil sands, gold extraction and other mining activities.

During the corporation’s 100 year-plus history, Joy Global’s products and services have settled in different markets worldwide; its presence is very important in Latin America, specifically in countries such as Brazil, Chile, Mexico and Peru, where the corporation has subsidiaries.

The corporation’s Peruvian affiliate opened in 1977, following through with the goal of supplying innovative products and solutions for mining, also covers neighboring countries such as Colombia, Ecuador and Bolivia.

Joy Global’s product line in Peru offers P&H electric shovels, drills, draglines and front-end loaders; heavy-duty air conditioning systems and consumables and G.E.T. hardware, among other

L at i n A m e r i c a

products. “For years, we’ve been perceived as an equipment and replacement part sales division, but we are changing that by becoming service providers, supporting our clients according to their needs and problems,” said Cesar CruzSaco, CEO for Joy Global Peru.

Cruz-Saco graduated from the Pontifical Catholic University of Peru. During his 15-year tenure in Joy Global he has been in charge of operations in Peru and Chile; he was named CEO in 2007. Cruz-Saco previously served the education, food and chemical sectors.

Specialized Staff

Key People

Cesar Cruz-Saco CEO, Joy Global Peru Cesar Cruz-Saco, current CEO of Joy Global Peru, is a mechanical engineer graduated from Pontifical Catholic University of Peru (PUCP) in 1984.

He quickly positioned himself as the Manager of Services for P&H MineProServices Peru SAC, were he was responsible for the assembly and support of P&H equipment in the country. By January 2005 he was working as the Technical Manager for Joy Global Chile, and in July 2007 he took over as the CEO of Joy Global (Peru) SAC. Prior to his introduction in the mining industry, CruzSaco worked in education, agriculture (cocoa processing), and fishing.

Global manufacturing w w w. m i n e p ro . c o m / M i n e P ro / P e r u . h t m

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Joy Global (Perú) S.A.C.

Within construction of La Joya Service Center in Peru Familiathe JOY-GLOBAL

Joy Global mining simulators

Joy Global offers high level support to clients in Peru and Colombia through a qualified staff of more than 50 employees. This personnel is properly trained in mining equipment applications, assembly, LCM (MARC’s) maintenance and repair contracts, operational and mechanical/electrical audits and training, overhaul services, equipment diagnostics, repair, troubleshooting and general technical support, among other services. “Major mining can only be possible when moving thousands of tons per day, a task which can only be performed by heavy machinery,” stated CEO Cesar Cruz-Saco.

New Products In recent years, Peru has experienced constant

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minería

Minería subterránea

growth, and the mining sector is no exception; after years of successful underground mining, surface mining is now about to be fully developed, an endeavor demanding specialized vehicles and equipment able to convey a heavier load and higher operational speed.

Joy Global Peru is now offering electric shovels able to carry 400 tons, loaded in 3 steps to convey 135 tons per cycle in 30 seconds. These are some of the P&H brand products available through Joy Global’s manufacturing, marketing and direct sales efforts. Also available is new, diesel/electric hybrid equipment; low-cost fuel and lower carbon-dioxide emissions are not the only advantage offered by this new machinery, but these also become reliable resources when mining at locations where taking electric power

“We have been viewed as vendors, but we want to be seen as a service company by helping customers solve their problems” – Cesar Cruz-Saco, CEO, Joy Global Peru

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c o mpa n y n am e

Used P&H, Model 2300XPC

“Big mining is possible if you can move thousands of tons per day, and that is only possible with the right equipment” – Cesar Cruz-Saco, CEO, Joy Global Peru

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supply (or a power plant) becomes difficult and expensive. “We constantly strive to offer solutions able to lower costs for our clients and increasing their productivity,” summarized Cruz-Saco about efficiency resulting from new products in the company’s catalogue.

Closing the Gap from the End Client Joy Global’s leverage is a result of being an equipment manufacturer, which allows a distributor-less scheme by dealing directly with end clients. Every single problem with their units worldwide is logged in a database available to their technicians all over the globe. If a certain troubleshooting symptom is present in a vehicle manufactured and sold in Peru, and that same

sector

Joy Global personnel

symptom (and solution) is registered as previously happening in, say, the Australian branch, the fix will be faster. The client support and service department’s goal is to reduce inactivity due to equipment failure or repair time. “It’s a top priority for our service staff to receive worldclass training, with asserted knowledge about possible problems caused by regular use of our equipment,” Cruz-Saco said.

Growth from Regional Development During 2008 -Cruz’s first year as the affiliate’s CEO-, Joy Global reported $34 million in revenue; at the end of 2014 this figure sums up to $235 million. This figure’s only way seems to be up, since there is a projected growth through the year

Underground Mining

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Joy Global (Perú) S.A.C.

L at i n A m e r i c a

2020 based on copper extraction. The world’s largest copper supplier is Peru’s neighbor Chile, whose production is five times Peru’s; but new agreements and investments foresee a growth which in five years will take this figure just below or at the same level as Chilean copper production.

“Peru’s mining potential is not fully developed yet; in recent years the country has experienced constant growth and our company has made the most out of this fact,” said Cruz.

La Joya, in the Heart of Peru’s Mining Country

Rotary drilling

Construction for Joy Global Peru’s new service and supplies megacenter in the La Joya district in the Arequipa province is to be concluded on March 2015, opening during the following month. A $40 million investment, this multifunction center will become a storage facility for replacement parts, a repair shop and equipment monitoring headquarters able to service vehicles and machinery also for industries other than mining. “La Joya was strategically selected due to its location in the Pan-American Highway, and its vicinity to merchant seaports and mining centers in south Peru,” said the executive.

Improvements from Technology Upgrades Joy Global’s research and development department produced PreVail remote health w w w. m i n e p ro . c o m / M i n e P ro / P e r u . h t m

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Electric mining shovels for high productivity mining

Joy Global (Perú) S.A.C.

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monitoring system, able to offer real-time details about equipment use, potential troubleshooting, productivity and performance as well as operator’s practices and tendencies, among other data. This system can be accessed from remote computers and a mobile phone app. “With PreVail, there’s no need to use valuable time for vehicle inspections, the system offers a complete array of data figures to evaluate machinery’s efficiency and proper performance,” Cruz said.

P&H uses drilling

Suppliers

compressors

Joy Global provides opportunities for local supplies that meet requirements of both Joy Global and the end client.

The company has established a partnership with FUCSA Cast Chilca, SA to allow this smelter company to commercialize Joy Global’s components in Peru and the rest of the region.

“We seek suppliers in the countries where we operate to assist the development of this industry, locally,” said Cruz-Saco.

Social Activities The nearly 40 years of Joy Global collaborating with Peru’s mining sector have allowed them to participate in developments and improvements within the mining practice.

Joy Global’s hybrid equipment (Diesel & w w w. m i n e p ro . c o m / M i n e P ro / P e r u . h t m

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Joy Global (Peru) S.A.C.

Within the construction of La Joya Service Center in Peru

Equipment 2800xPC

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January 2015

Electric) provides savings in fuel, lubricants and tires. “Reducing this consumption means long-life components, which makes us environmentally friendly,� said Cruz-Saco.

But beyond the rules of its industrial operation, Joy Global shares a concern for the communities where it operates. The company cooperates with nearby schools by offering specialized courses.

Joy Global Peru also facilitates the introduction of local suppliers in new projects, for example, in the construction of La Joya Service Center in Peru, Joy Global will hire local providers for industrial inputs (lubricants, etc.) and sewer services, telecommunications, transportation and food.

L at i n A m e r i c a

The Future of Joy Global in South America The development of mining in Peru, and consequently of Joy Global in South America, depends on the proper distribution of ‘canon’, an income tax for industrial activities. It is important to acknowledge that mining is now governed by standards that contribute to reduced environmental impact in the communities where it is exercised, and through the collection of taxes for this activity, the country is developing its infrastructure.

The future of mining in Peru is promising, and Joy Global business activities would benefit from this growth.

“We are not just suppliers of mining, we are partners of the miners,” said the General Manager.

“We are not just suppliers of mining, we are partners of the miners”

Company Information Nam e

Joy Global (Perú) S.A.C. Industry

Mining equipment and machinery headquarters

San Isidro, Lima, Peru founded

1977 e mp l o y e e s

250 website www.minepro.com/MinePro/Peru.htm

– Cesar Cruz-Saco, CEO, Joy Global Peru

w w w. m i n e p ro . c o m / M i n e P ro / P e r u . h t m

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