Mining Global magazine - September 2016 by Mining Global

September 2016

www.miningglobal.com

7 ways Anglo A culture of Natural American change: Wits Centre Resources encourages for sustainability Canada: Green sustainability in mining mine initiative

Hi-tech & aftermarket benchmarking Komatsu Mexico builds strong ties with cuttingedge products and after-market capability

TECHNOLOGY

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EDITORS COMMENT

Green with envy W E L C O M E T O T H E S E P T E M B E R issue of Mining Global,

where we shine the light on sustainability in the industry. Our leading profile this month is with Komatsu Mexico, established in April this year and a global purveyor of cutting-edge industrial products with aftermarket capability to the mining industry. What’s in a legacy? Natural Resources Canada, through its Green Mining Initiative strives to create a greener mining industry and leave behind a legacy of clean, cost effective and environmentally sound mining. We speak with Janice Zinck, Director of Green Mining and Innovation. What can the Centre for Mining and Industry at the University for Witwatersrand, Johannesburg, do for the future of the industry? Professor Caroline Digby talks to Mining Global about fixing the gap between environmental performance and long term liabilities and creating a future workforce of sustainably sound mining engineers. How does Anglo American promote sustainable practice across its organisation? We look at Anglo American’s seven steps to sustainability through its seven pillars of value. Viva Las Vegas as we profile one of the biggest events across the entire mining industry – MINExpo 2016. Some the world’s leading mining professionals and academics will be on hand to share their ideas for how to answer some of the biggest questions of the mining industry, we take a look at some of the speakers. Our final profile is on Gran Colombia Gold, a Canadian gold exploration, development and extraction company in silver deposits in Colombia. Mining Global magazine – let us know your feedback @MiningGlobal

Enjoy the issue! Dale Benton Editor dale.benton@bizclikmedia.com 3

CONTENTS

F E AT U R E S

PROFILE

Centre for sustainability in mining - a culture of change

TECHNOLOGY

KEEPING IT CLEAN: Natural Resources Canada and the legacy of sustainable mining 4

September 2016

LIST

Anglo American Seven steps to sustainability EXPO

Roll up roll up: Global industry leaders line up for the MINExpo International 2016

C O M PA N Y P R O F I L ES

Komatsu MÃ©xico Latin America

Gran Colombia Gold Latin America

PROFILE

CENTRE FOR SUSTAIN MINING - A CULTURE O As we begin our look at sustainability across the mining industry, Mining Global spoke with Professor Caroline Digby of the Centre for Sustainability in Mining and Industry and how the University of Witwatersrand in Johannesburg is creating a future workforce of sustainably sound mining professionals W r i t t e n b y : D a l e B e n to n

September 2016

NABILITY IN OF CHANGE

PROFILE IN 2004, THE mining sector was facing a crisis – one of so many in this deeply cyclical industry. Mining companies were failing to attract the top graduates and were encountering increasing difficulties in securing land, licences and the approval of communities needed for new mine approvals. “Mining companies were facing increasing risks resulting from poor environmental performance and long term liabilities,” says Caroline Digby. “The gap between the few that benefitted, and the many who paid the long-term consequences, was growing, and growing more unacceptable. “Mining leaders were determined to demonstrate that they could create shared value, they could operate responsibly and that they would chart a course of action that challenged the notion of deep, dark and dangerous as the only script for mining.” And thus, the Centre for Sustainability in Mining and Industry (CSMI) was born out of the Mining, Minerals and Sustainable Development (MMSD) global research project, “Breaking New Ground”. In the report, the MMSD project explored how the mining industry could “transition 8

September 2016

C E N T R E F O R S U S TA I N A B I L I T Y I N M I N I N G A N D I N D U S T R Y ( C S M I )

“MINING COMPANIES WERE FACING INCREASING RISKS RESULTING FROM POOR ENVIRONMENTAL PERFORMANCE”

to a position where it contributed to sustainable development.” Backed initially by companies like mining giant BHP Billiton, CSMI today trains regulators and industry practitioners alike in health and safety, risk management, environmental management and community development. “At the time, the industry safety record in South Africa was unacceptable. One of the early initiatives was to drive a concerted approach to reporting transparently on safety performance using industry benchmarks and indicators,” says Digby. Safety continues to be a major focus and numerous programmes to bring regulators, mineworkers and mining companies closer together on safety issues have been launched or supported by CSMI. Health issues have also risen up the agenda – particularly in the light of class action lawsuits against the majors. “Our research and training links safety not only to occupational health but also to the other problems so frequently associated with the health of mineworkers (AIDS, TB and silicosis).” 9

PROFILE

“THROUGH THESE LINKS, CSMI CAN CONTRIBUTE TO KNOWLEDGE SHARING IN BOTH LARGE-SCALE AND ARTISANAL AND SMALLSCALE MINING SECTORS” – Caroline Digby, Director, CSMI

September 2016

C E N T R E F O R S U S TA I N A B I L I T Y I N M I N I N G A N D I N D U S T R Y ( C S M I )

Change agent CSMI’s focus is on providing both the reason and the means for change. Academic and applied research undertaken recognizes both the unique conditions of African mining and the need for internationally acceptable practice. The results of that research are translated into a suite of training and capacity-building offerings that are included in the building blocks for the next generation of mining professionals, alongside targeted interventions aimed at continuous professional development and building specialist capability. MSc level offerings include courses on mining and sustainable development leadership; environmental management in mining; SHEC systems; operational risk management and community development. These can also be taken as continuous professional development offerings through Wits Enterprise. Partnerships CSMI may operate in Johannesburg, South Africa, but what the centre aims to do is serve the wider mining industry

worldwide. CSMI attracts a large number of international participants, as well as having key links with academic institutions from Australia, Canada and the UK, something that Digby sees as a critical aspect for the future of the initiative and the industry. “The links to other international academic institutions is critical, as it creates the backdrop for the future training of the sector based on international practice and evidencebased research. There is huge potential for mining to contribute to development, articulated in the African Union’s African Mining Vision, which is now being rolled out at the country level,” says Digby. “Through these links, CSMI can contribute to knowledge sharing in both large-scale and artisanal and small-scale mining sectors.” It is with these partnerships that CSMI acts as a hub for information and the fulcrum for evidence-based research on responsible mining. It acknowledges the multi-jurisdictional differences encountered by mining companies in Africa, the challenges of regulatory implementation encountered in many mining countries and the need across 11

PROFILE the continent to improve the long term outcomes and reduce the potential for negative legacies. Pressure points The industry faces on-going pressure to prove a demonstrable positive legacy and remain a viable choice in terms of economic activity. “Despite difficult global circumstances, where it is a price taker and affected by the economic swings

Caroline Digby, Director at the Centre for Sustainability in Mining and Industry (CSMI) at Wits School of Mining Engineering

September 2016

and roundabouts of global economies such as China, the industry needs to deliver real local benefits,” says Digby. Cost reduction measures are becoming more common place across the industry and Digby believes that this is tempting companies to dismiss these legacies as “non-core issues.” “As the management of any mine or shaft closed by regulators on safety grounds, by communities on social licence issues – or after environmental infringements – can testify, the cost of remediation goes way beyond the sometimes puny fines that regulators levy,” she says. Technology and Innovation The impacts of technology and innovation are not only affecting the future of the industry, but very much the here and now. Automation is one of the largest technological changes in mining, resulting in more remote mining and fewer workers. For Africa, this presents the possibility of significant job losses – particularly amongst lower skilled workers. “Our focus is on engaging companies on the need to plan for this and retrain workers to develop portable skills,” says Digby.

C E N T R E F O R S U S TA I N A B I L I T Y

(From L to R) Nancy Coulson, Programme Manager - Health & Safety Caroline Digby, Director. Noleen Dube, Programme Manager – Socioeconomic Development. Lileen Lee, Senior Course Administrator. Ingrid Watson, Programme Manager – Environment. Pontsho Ledwaba, lead on Artisanal and Small-scale Mining

“Without this there is a danger that these workers could become the illegal miners of the future in an attempt to continue seeking out a living. Government and companies need to work together on this transition, preparing workers to move from mining into other areas of work,” she adds. Looking to the future Digby believes that mining in Africa still presents many greenfield mining opportunities. “With these opportunities comes

the challenge of the influx of people desperate for work, the need for resettlement of communities and the on-going challenge of infrastructure development - bedevilled as it often is by high expectations and low capacity of both communities and authorities to negotiate lasting beneficial agreements,” she says. “Too often this still leaves mining companies as the de-facto local authority with a long-term responsibility for a lot more than running a mine.” 13

TECHNOLOGY

Keeping it clean: Natural Resources Canada and the legacy of sustainable mining

By S.P. (Own work) [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons

Canada is a leading force in the world of sustainable mining initiatives and greener mining. Seven years in, Resources Canada and its very own Green Mining Initiative is fully committed to it vision of leaving behind a long-lasting and beneficial effect on the industry, and the world. W r i t t e n b y : D a l e B e n to n

TECHNOLOGY

“THE GOAL OF this initiative was one that was very lofty, that mining leaves behind only clean water, rehabilitate landscapes and to help the ecosystems,” says Janice Zinck, Director of Green Mining Innovation. “It’s a stretch goal, but it was based on the fact that there are still concerns from the public and others in terms of the environmental performance of the industry but also recognising that the industry needed to be more viable in terms of innovation and the ability to respond to environmental and technical challenges.”

September 2016

The Green Mining Initiative was created in May 2009 by Natural Resources Canada (NRCan), a governmental body which aims to strengthen the responsible development and use of Canada’s natural resources. NRCan specialises in the fields of energy, forests and minerals and metals to meet the country’s global commitments to sustainable development of natural resources. There’s also a business and

KEEPING IT CLEAN

economic case to be explored with the Green Mining Initative, something that Zinck admits is one other aspect of the GMI. “A lot of the practices or best practices and what we call green mining technologies have cost savings and cost advantages when you apply them and look at energy efficiency,” says Zinck. “Energy is one of the biggest costs for any mining operations and at the same time of reducing energy consumption you’re reducing environmental impact

particularly greenhouse gas emissions and generally energy consumption as a whole.” The GMI is led through NRCan but is a multi-stakeholder initiative in that it has an external body that acts as an advisory council. This council is made up of industry representatives from the Canadian mining industry, consultants, academics and other various government officials. This collaborative effort allows oversight on the projects that are delivered through the initiative as well as ensuring that all vested interests are 17

TECHNOLOGY

at the table when these projects are developed and technologies rolled out. Implementing change in an industry that has been operating for decades will bring with it problems and challenges. Regulatory challenges, cost challenges, but Zinck believes that one huge challenge is proof of concept. “We often talk about the industry being risk adverse but that is only one part of it, an adoption of a new technology is not necessarily always going to be due to risk. And risk is not always coming from those who are the adopters. There are regulatory risk and challenges that need to be overcome,” says Zinck “If you take a new technology that’s green and hasn’t been adopted before, there’s the issue of being first. Realistically, no one wants to be the first adopter of a new technology

September 2016

because if you are then you’re the one who has to go through the whole proof, whether it will respond and deliver what’s expected of it in terms of environmental performance.” As for regulatory challenges, Canada has a strong and stringent environmental regulatory process that controls and often dictates the way in which new technologies and new processes are both developed and implemented. One particular challenge that has presented itself to the GMI has been reacting, responding and in some ways staying ahead of what Zinck describes as the “innovation curve.” “There is always the challenge in moving technologies along the innovation curve. From early stage concepts or at the R&D stage to actually implementing them, these things could make perfect sense at those early

KEEPING IT CLEAN

“...an adoption of a new technology is not necessarily always going to be due to risk” – Janice Zinck, Director, Green Mining Innovation stages and then moving them through to demonstration and adoption is one of the major challenges we’ve had to overcome,” says Zinck. Challenges and success are two sides to the same coin. In the seven years since the GMI was put in place, the initiative has seen a number of considerable successes and achievements. Collaboration between those various vested interests has been crucial in the development of the initiative, and Zanick recognises this as one of the major successes. “It has allowed us to recognise that there needs to be greater collaboration amongst the various stakeholders and that certainly been happening more now and is

one of the stronger areas of success.” Naturally, the major successes for the GMI have been the technologies developed to progress and further this drive and vision of a cleaner legacy. “There have been technologies that have looked at the reduction of energy in both underground mining ventilation and comminution. There have been technologies, or applications that have taken barren mining land and utilised waste from other industry such as residual organic waste or municipal waste on the tailings in order to produce a secondary land use - an energy source for production of bio energy. “We’re talking about taking a barren, sterile operation which in some cases is considered a liability and turning it into a profitable secondary land use.”

TECHNOLOGY

“We are always looking at things to make sure that we have that offer of dual benefit of environmental reduction but also some kind of cost competitive advantage. It definitely enters into it in more of a positive way” – Janice Zinck, Director, Green Mining Innovation 20

September 2016

KEEPING IT CLEAN

In the current mining climate, cost reduction is crucial. With so many company’s coming to terms with the impact of a declining market, how does this impact GMI? – not at all, as green mining and cost reduction go hand in hand. “We are always looking at things to make sure that we have that offer of dual benefit of environmental reduction but also some kind of cost competitive advantage. It definitely enters into it in more of a positive way,” says Zinck. “Green mining is not simply about the environmental side, it’s a best practice when you can look at a process that’s going to reduce impacts for environment as well as an economic advantage, the two of them are very streamlined together.” The Green Mining Initiative is Canada’s answer to a greener mining industry, but they are not alone. Other countries are upping their efforts to create a more sustainable industry, Tekes, in Finland for example has its own Green Mining programme to make Finland a global leader in the sustainable mineral industry by 2020. Zinck believes that countries can learn from Canada and vice versa, as new entrants into the green mining

market can only be good for the future of the industry, specifically standardisation of best practices. “I think there certainly could be an inventory of best practices and identification/certification in some ways of performance technologies,” says Zinck. “As more of the industry becomes more global, there are less players and costs become the bottom line. It’s becoming more and more challenging to make profits so standardisation of best practices could really minimise the number of uncertainties in the market.” Working collaboratively across the globe is crucial, Zinck believes, to creating that vision of a sustainable mining industry. “Look at best practices globally, not only in Canada, that we can share together. In South Africa, Australia and Finland. They have their own best practices and collectively we can pull together. We can move towards identification of best practice globally. “We try to look for opportunities to have that kind of global presence and recognising that as the industry is becoming a fully global industry – we can’t be working on these green and sustainable initiatives in isolation.” 21

LIST

ANGLO AMERICAN SEVEN STEPS TO SUSTAINABILITY W r i t t e n b y : D a l e B e n to n

Anglo American as a business has historically been a leader in encouraging sustainable mining practices. To discover more about how the company puts ideas into practice, we spoke with Anglo American, to see how the business is continuing to encourage sustainability.

From shrinking its environmental footprint to encouraging socio-economic development in developing communities, the business is striving to deliver sustainability through each of its seven pillars of value. 23

LIST ANGLO AMERICAN AS a business has historically been a leader in encouraging sustainable mining practices. To discover more about how the company puts ideas into practice, we spoke with Anglo American, to see how the business is continuing to encourage

sustainability in a difficult pricing environment. From shrinking its environmental footprint to encouraging socio-economic development in developing communities, the business is striving to deliver sustainability through each of its seven pillars of value:

01/ Safety and health According to Rene Aguilar, group head of safety, Anglo American “has a zero harm vision.” Through stringent workforce safety and health programmes, it aims to make safety a way of life, inside and outside of the workplace. • The company recently won a prestigious IABC Gold Quill Award for its annual Global Safety Day. The final activity last year took place in October 2015 and involved all employees and contractors across Anglo American. • Anglo American also runs the world’s largest private sector testing and treatment programme for HIV and AIDS. In 2015, a record 88 percent of HIVpositive employees were enrolled in the programme – a more than 10% increase on the previous year.

September 2016

S E V E N S T E P S T O S U S TA I N A B I L I T Y

02 / Environment Anglo American has reiterated its commitment to manage the environment in such a way that host communities benefit from the mining activities today and in the future. â&#x20AC;˘ For the third consecutive year, Anglo American exceeded its 2020 water savings target of 14 percent achieving an estimated 16 percent water saving against projected water usage. â&#x20AC;˘ Through its ECO2MAN energy efficiency programme Anglo American is also reducing its own carbon footprint. In 2015, in relation to its business as usual consumption, Anglo American was able to reduce its GHG emissions by 22 percent thereby exceeding its reduction target. This amounted to 4.6 million tonnes of avoided CO2e, which is equivalent to displacing the emissions of nearly one million passenger vehicles. 25

LIST

03 / Socio-political The heart of the brand is “real mining, real people, real difference”, so it’s no surprise that the business endeavours to make a lasting positive contribution to the communities that house and support its operations. • Since 1989, Anglo American has been pioneering approaches to supporting small- and medium-sized enterprises (SMEs), starting with empowering black South African entrepreneurs, extending into Chile in 2006, and more recently into Brazil, Botswana and Peru. • The company has supported 110,780 jobs since 2008 in 62,394 SMEs, providing more than $130 million in funding.

September 2016

S E V E N S T E P S T O S U S TA I N A B I L I T Y

04 / People In chief executive Mark Cutifani’s words, “people are the business.” The miner is looking to resource its organisation with an engaged and productive workforce and empowers leadership to deliver results and improve business resilience. • The business has a range of external and internal development programmes currently running which have received an investment of more than $100 million in 2015. • In an increasingly competitive market for skills, the company is investing in developing a pipeline of future talent through our support of 3,500 graduates, bursars, apprentices and trainees. 27

LIST

05 / Production In a difficult pricing environment, the business is constantly looking to innovate in order to make mining safer and more efficient, and to extract its metal reserves in a sustainable way that creates value. • To support performance improvements and to encourage more sustainable mining methods, Anglo American developed a new approach to innovation, FutureSmart™. FutureSmart™ will accelerate the company’s ability to use innovation and technology to address its critical challenges and find safer, more efficient, environmentally friendly and sustainable ways to unlock mineral value, and has already encouraged idea sharing in water conservation. • The Los Bronces copper mine in Chile employed an innovative approach to production challenges in 2015 after it found itself constrained by water supply limitations. The team upgraded a water transportation system, which transports water via a 56-kilometre pipeline from the Las Tórtolas tailings dam to Los Bronces, using a special water-recycling system. Los Bronces is currently recycling more than 78% of the water that it uses.

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S E V E N S T E P S T O S U S TA I N A B I L I T Y

06 / Cost The roll-out of Anglo Americanâ&#x20AC;&#x2122;s Operating Model to six of its operations in 2015 had a positive impact in many areas of its value chain, and continues to make Anglo American a more productive business. While the Operating Model is an essential enabler for delivering production targets, and ultimately for reducing its operating costs, at its heart is the discipline of planned work, which has also been proven across many industries to deliver substantial benefits in safety and environmental performance. 29

LIST

07 / Financial In the midst of unprecedented organisational changes, the company is prioritising long-term sustainable returns to shareholders. Over the next 12-24 months, Anglo American will adjust its focus to concentrate on a much-reduced portfolio of 16 core operating assets that produce diamonds, platinum group 30

September 2016

S E V E N S T E P S T O S U S TA I N A B I L I T Y

metals and copper. These mid- to late-cycle metals and minerals will afford the Group greater exposure to fast-growing consumer sectors, such as ‘next wave’ clean-energy and hardware technologies. By focusing on De Beers, Platinum and Copper, Anglo American’s core portfolio will comprise highly competitive assets that are positioned to deliver significant upside potential. 31

Roll up roll up: Global

industry leaders line up for the MINExpo International 2016 Hundreds of mining experts, global leaders, key influencers and mining professionals will gather in Las Vegas for MINExpo 2016, the worldâ&#x20AC;&#x2122;s largest exposition showcasing some of the latest innovative technologies and best oractuces the world has to offer to the mining industry. Here, we take a look at some of the industry leaders offering their expertise Writ ten by: DALE BE NTON

MINEXPO INTERNATIONAL 2016, sponsored by the National Mining Association, is the largest show of its kind in the world â&#x20AC;&#x201C; a two-day expo that showcases innovative technology and the expertise of mining leaders. From September 26-28 this year, hundreds of mining 32

September 2016

industry professionals and sector leaders from over 1800 companies will be in Las Vegas connecting with fellow professionals to try and solve some of the biggest challenges the industry is facing, before looking closely at the road ahead. There will be an Opening Session,

MINEXPO 2016

bringing together mining industry leaders to discuss the impacts of recent market conditions and the industryâ&#x20AC;&#x2122;s significant role in global development, prosperity and sustainability In addition to the opening session, 20 education sessions will be taking

place tackling the difficult and pressing issues that plague the current mining industry, led by some the most renown names across the sector. Below is a list of confirmed speakers for the Opening Session of the MINExpo:

MINEXPO 2016 Phillips S. Baker, Jr., president and ceo, Hecla Mining Co. The CEO and President of Hecla Mining Co., the largest primary silver producer in the U.S. Mr Baker is an Attorney, Certified Public Accountant and Certified Cash Manager. He holds a Master of Business Administration and JD degrees from the University of Houston.

September 2016

Harry M. “Red” Conger, president and COO – Americas and Africa Mining, Freeport-McMoRan Inc. President and Chief Operating Officer for Americas and Africa Mining, Freeport-McMoRan Inc. one of the top 10 producers of coppers in the world, accounting for approximately eight percent of total worldwide copper production. Conger is a

GLOBAL INDUSTRY LEADERS

registered Professional Engineer in both Arizona and Colorado. Kevin S. Crutchfield, CEO, Contura Energy, Inc. CEO of Contura Energy, created to acquire and operate Alpha Natural Resourcesâ&#x20AC;&#x2122; core operations in Northern Appalachia, the Powder River Basin and Central Appalachia. He is

currently the chairman of the National Mining Association and previously served as chair of the American Coalition for Clean Coal Electricity. Ted Doheny, president and CEO, Joy Global Inc. Ted Doheny is CEO and President of Joy Global Inc., a mining machinery and services company serving 35

MINEXPO 2016 directors of John Bean Technologies Corporation (NYSE:JBT). He serves as a United States representative to the International Energy Agency’s Coal Industry Advisory Board and is a member of the U.S. Department of Energy’s National Coal Council Advisory Committee.

surface, underground and hard rock customers worldwide. Since taking the reins at Joy Global in 2013, Doheny introduced Joy Operational Excellence processes, driving innovations to move the needle across the organization and for Joy Global’s customers. Innovations include the company’s JoySmart Solutions, industry-leading, fully integrated services to take mining customers to higher levels of safety and performance. Doheny is a member of Joy Global’s board of directors. He also is a member of the board of 36

September 2016

Gary Goldberg, president and CEO, Newmont Mining Corp. President and CEO of the Board of Directors of Newmont Mining Corp, one of the world’s largest gold producers. Prior to joining Newmont, Mr. Goldberg was President and Chief Executive Officer of Rio Tinto Minerals, and served as Chairman of the National Mining Association in the United States from 2008 to 2010. Denise C. Johnson, group president for resource industries, Caterpillar Inc., and Chair, MINExpo INTERNATIONAL® 2016 Group president for Resouorce industries at Caterpillar Inc and Chair of MINExpo International 2016. A member of numerous outside boards, including Gearbox Group, Inc., The Center for Prevention of Abuse and OSF Saint Francis

GLOBAL INDUSTRY LEADERS

Hospital. Also serves as the Executive Sponsor of the Caterpillar Armed Forces Network Resource Group. The education sessions will cover a wide range of topics related to the current mining industry climate. The sessions are designed to try and answer the questions that the mine industry is asking and being asked, is coal preparation still relevant? What will the journey to automation look like? How will the industrial internet drive and increasingly efficient mining operation? The sessions will also cover latest trends in mine safety, exploration, underground and surface mining

techniques and ambitions as well as looking at the big question surrounding deep sea mining. The confirmed industry leaders hosting these sessions will share case studies, successfully anecdotes and cautionary tales, product profiles, breaking down and looking at new applications that can take the industry forward â&#x20AC;&#x201C; all with the goal of attendees and mining professionals to network and be inspired by their peers. For a full breakdown of who will be where and when at the MINExpo International 2016, visit: www.minexpo.com/education-sessions 37

HI-TECH and AFTERMARKET BENCHMARKING

Komatsu Mexico builds strong ties with the countryâ&#x20AC;&#x2122;s mining sector and other industries, supported by cutting-edge products and after-market capability

Written by Mateo Rafael Tablado Produced by Taybele Piven Interviewee Eduardo Bennett, CEO for Komatsu Mexico

K O M AT S U M Ă&#x2030; X I C O

omatsuâ&#x20AC;&#x2122;s history dates back to 1921 in the city from which it takes its name, starting as a repair shop for mining equipment. Based on excellence and tech innovation principles,

September 2016

Komatsu has positioned itself as a global purveyor of industrial equipment and vehicles for sectors such as mining, construction, oil & gas, among others. After a 25-year presence in Mexico

L AT I N A M E R I C A

via distributors, and following the acquisition of MAKOMEX and Road Machinery between April 2015 and February 2016, Komatsu Mexico was established in April 2016 with 60 percent of shares held by Komatsu and 40 percent by Mitsui.

Settling in Mexico consolidates the company in a key market. Komatsu Mexico takes advantage of the countryâ&#x20AC;&#x2122;s development potential in sectors such as mining, infrastructure, and energy, among other industries, by bringing a

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K O M AT S U M Ã&#x2030; X I C O

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series of safety standards and principles known as the “Komatsu Way”, which establish guidelines regarding employee and community relations, as well as respect for the environment. “Our workforce in Mexico has witnessed a change in safety, training and the opportunity for development,” said Eduardo Bennett, President of Komatsu Mexico. Mr. Bennett has been working at Komatsu since 1993; he developed his skills at the Chile and Peru operations; he also served Komatsu’s executive committee in Colombia, and performed as Number of employees at General Manager of Komatsu’s Komatsu México Latin American financial division. He was appointed to his current position in Mexico on December 1st, 2015.

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Thrust from tech innovation The constant evolution of new systems and machinery is a hallmark of Komatsu worldwide. For a few years now, three percent of revenue is invested in Research and Development. The KOMTRAX system is one of these efforts’

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“e-Emphasys empowered our expansion and growth. We are doing more—with less.”

See how we can give your business a competitive edge:

For a real-time demo, contact ventas@e-emphasys.com

“e-Emphasys’ exclusive focus on the equipment distributor industry has provided us with comprehensive tools and technologies, improved our operational efficiency, and provided more visibility for better decision making. The Advanced MARC module has helped us to easily manage complex service contracts and billing for our mining customers, and have significantly improved our contract profitability. With e-Emphasys Service Scheduler, our dispatchers have cut their time spent dispatching.” — Victor Manuel Gomez Director, I.T. Komatsu Maquinarias Mexico S.A. de C.V. Dealerships across the world are experiencing incredible business benefits after migrating to the proven ERP from e-Emphasys. For more insights on increasing your operational efficiency and gaining substantial competitive advantages, please visit www.e-Emphasys.com

results. In addition to a GPS tracking system, KOMTRAX equipment’s sensors transmits real-time data such as equipment’s hours of operation per day, changes in engine temperature, oil, and other data, which enables scheduling preventive maintenance and foreseeing possible mechanical failures, among other information. Also, the Komatsu autonomous truck is a reality; hauling mining

September 2016

equipment by way of a complex plan rather than an operator. Much of the equipment created by Komatsu, such as their hydraulic excavators, is powered by hybrid technology, using kinetic energy, stored to keep propelling to the operating machine, reducing the use of fuel, lessening an impact on the environment.

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Aftermarket: strength and distinction The ability to respond to after-sales requirements is of vital importance for the company. Komatsu supports its clients through excellent work and craftsmanship, supplying timely and effective delivery of replacement parts and providing preventive maintenance and repairs to the machinery working currently out on the market. “Komatsu and other brands produce hi-tech equipment, but the question here is, who’s able to deliver on time when equipment needs parts or service? That is our challenge,” said the executive. EMS service centers Komatsu Mexico is able to provide outstanding service thanks to their Electro Mechanical Shops (EMS), conveniently located in Cananea, Sonora and in Saltillo, Coahuila.

These facilities service Komatsu industrial vehicles and machinery, both for preventive maintenance and repairs. EMS specialize in supplying and installing hydraulic components, blowers, machining, mace and dowels, power generators, welding, rotating pieces, running gear and drive wheels. Vertical integration, key element to the supply chain Komatsu Mexico’s resources supply both machinery and its replacement parts. The latter are stocked in the company’s warehouse in Tennessee, USA, from where Komatsu delivers to the Latin American markets, especially Mexico. Hydraulic excavators are shipped from Germany, Japan and the US. The entire operation in the Americas benefits from Komatsu’s warehouses in Panama, whose inventory is able to supply the entire region in the shortest

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K O M AT S U M É X I C O

Year founded

1921 México Year founded

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possible response time (less than three weeks). Moreover, Komatsu’s resources now include Joy Global, a mining equipment manufacturer newly acquired in a transaction to be completed by mid2017. Joy Global allows Komatsu to offer a product line that also includes underground mining. “This network opens a great opportunity for synergy within our organization,” said Mr. Bennett. Supplier classification The links between Komatsu and its suppliers is initiated by its stakeholders, integrating strengths. Following the certification of strategic suppliers, is the implementation of continuous improvement

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programs and solidifying its position as a preferred supplier. Areas such as logistics and transportation, and support areas (information technology and public relations, for example) are subject to assessments and certifications, allowing for the opportunity of using these providers regionally. Saltillo Training Center The training center located in Saltillo can host 60 people. In addition to accommodation facilities,

this center has simulators and equipment that can replicate actual operations of Komatsu products. Komatsu personnel as well as client operators and technicians are trained here. Community outreach, fertile ground At company level, Komatsu Mexico has been given the task of establishing links within the Mexican mining sector after creating a relationship with the Mexico Mining Chamber (CAMIMEX);

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“Who’s able to deliver on time when equipment needs parts or service? That’s our challenge” –Eduardo Bennett, President of Komatsu Mexico

September 2016

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K O M AT S U M É X I C O

TRIANGLE INDUSTRIAL CORPORATION

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ONE-STOP SHOP Hardchrome Plating ▼ Hydraulic Cylinder Fabrication ▼ Hydraulic Pump Repair ▼ Water Jet Cutting

they also seek to establish closer ties with the industrial, energy, construction, and oil & gas sectors in order to work joint projects.

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520.792.4973

www.triangleindustrial.com 2560 N. Coyote Dr., St. 108 • Tucson, AZ 85745

PROUDLY SERVING

KOMATSU

September 2016

Possibilities in a country like Mexico Komatsu Mexico predicts strong growth in the country. To keep pace, they are preparing strategies that can deliver double-digit growth. Consequently, they plan on expanding their coverage in the country beyond the eleven branches and two workshops currently operating.

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300 Million

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K O M AT S U M É X I C O

“We are here to stay, we a looking to establish long-t business relationships” – Eduardo Bennett, CEO for Komatsu Mexico

September 2016

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are term

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Integrating goldâ&#x20AC;&#x2122;s value in Colombia Written by Mateo Rafael Tablado Produced by Taybele Piven Interviewee Lombardo Paredes, CEO of Gran Colombia Gold

Gran Colombia Goldâ&#x20AC;&#x2122;s available resources and experience turns into gold, along with efforts to bring scattered minor mining operations into becoming lawful enterprises

GRAN COLOMBIA GOLD

September 2016

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ran Colombia Gold is a Canadian company whose efforts are focused on the exploration, development and extraction of gold and silver deposits in Colombia. In addition to yielding results and large revenues generated from largescale mining activities, Gran Colombia Goldâ&#x20AC;&#x2122;s operation is characterized as going beyond complying with the countryâ&#x20AC;&#x2122;s standard operating procedures. The company also contributes to the development of communities involved in small-scale mining so that their operations are not only regulated and conducted in accordance with the law, but knowledge is likewise transmitted to facilitate and increase production. Gran Colombia Gold projects are based on a long-term vision, in operations that not only monitor and take care of financial aspects but also its workforce.

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GRAN COLOMBIA GOLD

The company has been operating efficiently and productively in recent years not only from within, but has been interacting with the rest of the mining sector and the

September 2016

surrounding area. When Lombardo Paredes arrived in February 2014, he set to consolidate the companyâ&#x20AC;&#x2122;s finances, restructuring debts whilst modernizing mining operations.

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Mr. Paredes is a mechanical engineer and holds a Master’s degree in Economic Analysis and Financial Economics. With over 20 years of experience, he has also worked in the

“Our main purpose is to obtain metals at a lower cost under global safety standards, bringing accidents to a minimum and achieving production goals” – Héctor Meléndez, Mining General Manager for Gran Colombia Gold

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GRAN COLOMBIA GOLD

oil sector, holding important financial and development positions for Petroleos de Venezuela and affiliated companies. Mr. Paredes’s work has had a positive and impressive impact on Gran Colombia Gold’s financial and technical aspects as well as human resources. High production at lower costs Gran Colombia Gold is currently developing the Segovia and Remedios operations (both in Antioquia) and Marmato (Caldas) projects. Gran Colombia Gold bases its vein mining using the electrohydraulic drilling system, facilitated by selective and highly cyclical mining. This secure system makes ore available 24 hours a day, seven days a week. The latest figures show that between April and June 2016, Gran Colombia Gold produced a total of 38,229 ounces of gold, 21 percent more than their first quarter; for a total of 69,718 ounces of gold in the first half of 2016. Total gold production for 2016 is estimated to be between

September 2016

120,000 and 138,000 ounces. By project ... • Segovia: 57,883 ounces of gold produced during the first half of 2016 - of which 31,884 were between April and June, it is on its way to reaching between 96,000 and 110,000

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ounces by the end of the year. â&#x20AC;˘ Marmato: 987 tons were processed per day, generating a production of 6,345 ounces of gold in the second quarter of this year, bringing the total to 11,835 ounces for the first half of 2016. The year-end

projections for this mine total between 24,000 and 28,000 ounces. Technology for productivity Gran Colombia Goldâ&#x20AC;&#x2122;s machine pool is best described as being: efficient and causing low environmental

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September 2016

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“The company values disciplined, committed, honest individuals being part of our team” – Lombardo Paredes, CEO for Gran Colombia Gold

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GRAN COLOMBIA GOLD

“Technical management’s purposes are optimizing every process, bring costs down and improve revenues” – Rufino Pérez, Technical Manager for Operations at Gran Colombia Gold

September 2016

impact, equipment that has the necessary specifications required for each mining operation, and able to maximize productivity all the while using energy and fuel in a way that causes minimal environmental impact. This equipment includes different types of drilling jumbos, seven ton capacity underground mining trucks, sprayed concrete equipment for rock support, and jacklegs for narrow vein secondary drilling. Engineering and design is supported by Vulcan and Surpac, specialized 3D mining software. Integration of local resources In collaboration between Gran Colombia Gold and The United States Agency for International Development (USAID), Gran Colombia Gold is involved in integrating and formalizing unregulated mining operations carried out in the surrounding area; moreover, it looks within the local population to supply its labor force

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and uses local service providers. Additionally, the company has development processes in place when capacity or experience constraints hinder work with suppliers. Human Resource Management Gran Colombia Gold is committed to homegrown talent when filling vacancies and uses specialized management agencies when required. The company has a succession planning program whereby internal

people are identified and developed with the potential to fill key business leadership positions in the company. Gran Colombia Gold also benefits from the collaboration of institutions such as the National Service of Learning (Colombia) (SENA, its local acronym), a government initiative that looks to boost technological development of Colombian companies. Internally, its open environment enables more than 1,900 direct

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GRAN COLOMBIA GOLD

September 2016

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employees to express their views to senior management. Links with the community and small-scale mining Gran Colombia Gold has many community contribution programs in place, including, empowering women entrepreneurs, elimination of child labor, preservation of biodiversity and water resources, implementation of the Global Mercury Project (GMP) and recognizing health as a fundamental right. Gran Colombia Gold is likewise working to regularize and formalize

50 of its Small Mining Productive Chain units within the next five years. The GMP has reduced more than 50 tons of mercury in mining operations during the last three years, directly benefiting 42 thousand inhabitants in the Segovia region, a city with the worldâ&#x20AC;&#x2122;s third highest mercury contamination levels. Gran Colombia Goldâ&#x20AC;&#x2122;s environmental management for the first half of 2016 reached 60.78 percent of the targets set forth for the entire year, with a planned investment of US $2.073 million.

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