Mining Global Magazine - March 2015

March 2015

www.miningglobal.com

2015 Year of the Mega Mergers TOP10 Youngest Mining CEOs

Eagle Mine Creating a Legacy of Responsible Mining businessfriend app to Improve Collaboration in Mining Industry

Grand Marine Oil and Gas (NIG) Limited is a company in the marketing of petroleum products and provision of marine support services in the downstream sector of the Oil and gas industry.

SERVICES Vessel Owners (Oil Tankers) Provision of Barges and Tugboats Provision of Jetty facilities Marine security services Shoreline protection services Bunker and Fresh water supplies Ship chandelling and Manning services Provision of House boats Marine consultancy services

C O N TA C T U S www.gramog.org info@gramog.org +234 (0) 808 0770 004

+234 () 803 317 3144 17c, Marine Road, Apapa, Lagos, Nigeria

GRAND MARINE OIL AND GAS

(NIG) LTD

EDITOR’S COMMENT

IN THIS ISSUE

“We choose to go to the Moon in this decade and do the other things, not because they are easy, but because they are hard.”

– John F. Kennedy ON SEPTEMBER 12, 1962, President John F.

Kennedy made his famous “We choose to go to the Moon” speech at Rice University in Houston, Texas. The speech was meant to persuade the American people to support the effort of NASA to send a manned space flight to the Moon.

53 years later, we are now discussing how to mine the Moon for its bountiful, treasure-trove of untapped rare earth elements. Is the moon ripe for the picking, and if so, what is the payoff?

Also this month: while you were doing keg stands and trying to figure out where to go with your life, these young superstars were carving out their future. We break down the youngest and brightest CEOs in the mining industry.

Lastly, we examine the impact of two mega mergers expected to get done in 2015.

Don’t forget to check out our write-up on businessfriend, a new app aimed at improving collaboration in the mining industry, helping to keep companies and miners stay connected with the people and professionals that matter most.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

3

CONTENTS

Features OPERATIONS

Mining the Moon: What is the payoff?

18 8

FINANCE 2015: Year of the Mega Mergers

TOP 10 Youngest Mining CEOs

14

24

BUSINESSFRIEND FINANCE XXXX A new app looks to improve collaboration in the industry

5

CONTENTS

Company Profiles EUROPE 32 Dundee Precious Metals

CANADA 46 Lundin Eagle Mine 66 North American Construction Group 74 South East Construction

66

46

North American Construction Group

Lundin Eagle Mine

32 74

D undee Precious Metals

S outh East Construction

7

Mining the Moon: what is the payoff?

The Moon has potential for a bountiful, treasure-trove of untapped resources.

Is it ripe for the pickings, and if so, what is the payoff?

Writ ten by: ROBE RT SPE N C E

MINING THE MOON has been a hot topic of late, and for good reason.

The potential for a bountiful, treasuretrove of untapped resources has many companies pondering the possibilities.

Is the Moon ripe for the picking of rare elements, and if so, what is the payoff?

Ian Crawford, a professor of planetary science and astrobiology at Birkbeck College, London has published a new assessment of 8

March 2015

whether or not there’s an economic case for mining the Moon.

Although it’s hard to identify any single lunar resource, Crawford says the Moon does possess an abundant of raw materials that are of potential economic interest.

According to Crawford, the overall case for any future payoff from capitalizing on the Moon’s resources has yet to be made.

O P E R AT I O N S

“If the Moon’s resources are going to be helpful, they are going to be helpful beyond the surface of the moon itself.”

“It’s quite complicated,” he told Space.com. “It’s not simple at all.”

Why the Moon?

One of the main attractions for Moon mining is helium-3. According to many Chinese scientists, it could help “solve energy demand

for 10,000 years at least.”

The helium isotope, which gets embedded in the upper layer of lunar regolith by the solar wind over billions of years, could be pivotal in powering still-to-be-built nuclear fusion reactors here on Earth. In addition, there are no neutrons generated as a reaction product, meaning protons that do get generated have charge, and can therefore be safely 9

Photo credit: European Space Agency

O P E R AT I O N S

Mining helium-3 could be a practical energy source for the next 10,000 yrs contained using electromagnetic fields. These isotopes could provide a safer nuclear energy in a fusion reactor, since it is not radioactive and would not produce dangerous waste products. However, like fossil fuels, the substance is a limited resource.

“It’s a fossil fuel reserve. Like mining all the coal or mining all the oil, once you’ve mined it … it’s gone,” Crawford said.

“It’s possible that helium-3 and other solar-wind–implanted ions, like hydrogen, may be in a higher abundance in the cold regolith 10

March 2015

near the lunar poles. That would be an important measurement to make and would require a polar lander,” Crawford said.

Aside from helium-3, the prospect for other minerals is another possibility.

In 2008, NASA’s Moon Mineralogy Mapper, known as M2, was carried on India’s Chandrayaan-1 lunarorbiting spacecraft, which operated around the Moon until August 2009.

According to NASA, during the excursion, the M3 found a whole new range of processes for mineral concentrations on

M I N I N G T H E M O O N : W H AT I S T H E PAY O F F ?

‘One of the main attractions for Moon mining is helium-3.

According to many Chinese scientists, it could help “solve energy demand for 10,000 years at least.’ the moon – many of which have been unappreciated until now.

“The M3 experiment detected a new lunar rock – a unique mixture of plain-old plagioclase – plentiful in the Earth’s crust and the Moon’s highlands 0 and pink spinel, an especially beautiful arrangement of magnesium, aluminum, and oxygen that, in its purest forms, is prized as a gemstone here on Earth.”

According to Crawford, the Moon could also harbor other rare earth elements such as uranium and thorium, including other elements we’re unfamiliar with.

“It’s entirely possible that when we really explore the Moon properly we will find higher concentrations of some of these materials … materials that are not resolvable by orbital

remote sensing,” Crawford said.

He added, “To explore the whole moon at the level of detail required, that’s a big undertaking.

But long term, we should be keeping an open mind to that.”

The demand for rare earth elements (REE) is dramatically growing. In 2010, China exported roughly 97 percent of the global supply of rare earth elements, and the demand continues to grow by 10 to 12 percent per year.

The Chinese industry, however, has expressed in the past that it is not interested in selling these products to other countries in unlimited amounts on an indefinite basis. The country has stated the rest of the world should start finding its own way of obtaining them. With that said, the U.S., Canada, and other countries need to start the necessary steps to encourage domestic mining.

How will it work?

When discussing the collection, extraction and utilization of lunar resources, the single biggest question is, “how?”

“Lunar resource exploration should be based on the same methods that have guided humans on their 11

O P E R AT I O N S centuries-old exploration of terrestrial resources,” said Angel Abbud-Madrid, Director of the Center for Space Resources at the Colorado School of Mines in Golden, Colorado.

Abbud-Madrid believes resource discovery will be followed by drilling, excavation, extraction and processing operations to utilize those resources.

“For the moon, sufficient prospecting — through remote sensing — and identification of valuable resources, such as oxygen and hydrogen for in-situ applications, has been done to date,” AbbudMadrid said. Based on these findings, he said, the necessary technologies and prototypes to collect and extract these elements have been developed and tested on terrestrial analog sites.

“Thus, the time has come to demonstrate these systems on the surface of the moon,” Abbud-Madrid concluded.

In the U.S., one of the companies expecting to assist in Moon mining is Texas-based Shackleton Energy Company (SEC).

The company plans to mine the vast reserves of water ice and convert it into rocket propellant in the form of hydrogen and oxygen, which would 12

March 2015

then be sold to space partners in low Earth orbit. According to chief executive officer, Dale Tietz, the plan is to build a “gas station in space” where rocket propellant will be sold at prices significantly lower than the cost of sending fuel from Earth.

The race to the moon The race for mining the Moon is on and China is currently making the most headway. Having already successfully touched down on the Moon via its Jade Rabbit lander in December 2013, China became the first nation to successfully make a soft landing there since the 1970s.

In 2010, President Obama announced the administration’s decision to cancel NASA’s plan to return to the Moon in favor of the new and ambitious Asteroid Redirect Mission. This entails a robotic mission to grab an asteroid in outer space, bring it to the moon and place it into lunar orbit. Once there, NASA will send astronauts to explore it.

“The USA has been a little arrogant in thinking that it can lead the world to the moon, and then it pulled the rug out from under the world and said, ‘Oh now let’s go to an asteroid!’

The European Space Agency has proposed packing light: it’s teaming with Foster + Partners to test the possibility of 3D printing not just the tools, but whole lunar buildings.

“Lunar resource exploration should be based on the same methods that have guided humans on their centuries-old exploration of terrestrial resources” – Angel Abbud-Madrid, Director of the Center for Space Resources And the world said, ‘You go to an asteroid; we’re going to the moon,’” said Clive Neal, a planetary scientist at the University of Notre Dame.

According to Fabrizio Bozzato, a doctoral candidate at the University of Tamkan in Taiwan, China is poised to make lunar

mining a reality of tomorrow.

“China maintains its lunar mining would be for the benefit of all humanity,” Bozzato said.

“However, given the absence of willful competitors, it is also speculated that the Chinese intend to establish a helium 3 monopoly.”

13

Photo credit: European Space Agency

M I N I N G T H E M O O N : W H AT I S T H E PAY O F F ?

TECHNOLOGY

New App Looks to Improve Collaboration in the Mining Industry For the mining industry to improve in 2015, more collaboration and technology is imperative, and the term “Loose lips sinks ships� is no longer applicable.

Writ t e n by: ROBE RT SPE N C E

15

TECHNOLOGY 2014 WAS NOT a great year for the mining industry. It suffered from record low commodity prices and endured global stagnation with hits to productivity and profitability. In general, it struggled to find its groove.

The industry is searching for answers. On the list of possible solutions is collaboration.

“By working together, universities and industries can advance mutual interests and serve their communities,” said Samuel Frimpong, Professor and Chair of the Department of Mining and Nuclear Engineering at the Missouri University of Science and Technology.

“These two organizations can work together through collaborative

16

March 2015

research opportunities where each entity provides talent and resources to solve problems for a desired cause.”

From partnerships with universities to interactions with rival companies, collaboration is expected to play a pivotal role in helping mining companies succeed in the future. In addition, it will also help to better serve employees.

The likes of Facebook, Twitter, and LinkedIn have all been essential for miners to stay connected.

However, not everyone in the field of mining has time to switch through various networks to stay up-to-date with people and professionals that matter most.

BUSINESSFRIEND

Welcome to businessfriend, a simple and attractive app that allows users to easily execute all business and social affairs in one powerful, mobile-first platform.

“On any given day, the typical young professional can have as many as five platforms open to get them through their day,” said Glen White, Founder and CEO of businessfriend.

“We offer one complete forum that enables constant connectivity for optimal business communications.

One mobile app, one desktop, any device – no more juggling apps.”

Key features include video chat, IM, and free VoIP calls, up to two gigabytes of free Cloud storage, Digidex™contact management system, document downloading and sharing, social feed, connectivity to colleagues and peers without sharing personal contact information, easy sign-up and much more.

The app made its official debut earlier this year launching at CES 2015 in Las Vegas.

For the mining industry to improve in 2015, more collaboration and technology is imperative, and the term “Loose lips sinks ships” is no longer applicable.

‘We offer one complete forum that enables constant connectivity for optimal business communications.

One mobile app, one desktop, any device – no more juggling apps’ – Glen White, Founder and CEO of businessfriend

17

FINANCE

2015 Year of the Mega Mergers Some of the largest mining companies in the world are set to join forces in 2015. Find out which companies are expected to make the jump W r i t t e n b y: R O B E R T S P E N C E

19

FINANCE 2014 WAS SUPPOSED to be the year of mergers and acquisitions for the mining industry. Instead, it was the year of deals that never were.

Glencore sent shockwaves through the mining world last year when the commodities conglomerate confirmed it had approached Rio Tinto Group about a possible merger. Ultimately, Rio Tinto shot down the proposal which would have created an industry giant with a combined market value in the range of $150 billion.

A similar conclusion occurred with Newmont Mining and Barrick Gold. In April, the two companies had mutually agreed to terms on a blockbuster deal that would have been the largest merger the gold mining industry had ever seen. Clashing personalities, however, caused the deal to eventually collapse.

“Some of the biggest deals, which created the most excitement and confidence, were the ones that also created the most disappointment when they failed,” said Robert Leitão, head of global financial advisory at Rothschild.

“There is a huge gap between the column inches and the number of completions”.

2 0 M arch 2015

Because mergers and acquisitions are the bloodsport of the corporate world, we examine the two potential deals that will turn 2015 into the year of mega mergers.

Rio Tinto & Glencore It was heralded as the deal of the century. Rival mining companies Glencore PLC and Rio Tinto merging together to form the world’s biggest publicly traded mining company, dislodging BHP Billiton as the top.

“A Rio Tinto-Glencore combination would create market leading positions in iron ore, copper, nickel, zinc and coal as well as significant optionality around a number of lesser metals and minerals,” said Paul Gait, senior analyst for Wall Street brokerage Bernstein Research.

“Moreover, it would create the biggest and most diversified mining company on the planet. It would be a Glencore-Rio combination that would quickly become the ‘most own’ stock for anyone looking for mining exposure.”

The two would have formed a powerhouse, marrying Glencore’s commodities-trading strengths with Rio Tinto’s substantial

2015: YEAR OF THE MEGA MERGERS

‘A Rio Tinto-Glencore combination would create market leading positions in iron ore, copper, nickel, zinc and coal as well as significant optionality around a number of lesser metals and minerals’ -P aul Gait, Senior Analyst for Bernstein Research

Ivan Glasenberg, Glencore Chief Executive.

iron-ore production.

According to WSJ, discussions of a merger began last summer when shareholders of the two companies started talking.

“Glencore Chief Executive Ivan Glasenberg, one of the company’s biggest shareholders, made a personal approach to Rio Tinto Chairman Jan du Plessis over the summer and had a conceptual conversation about a possible merger, a person familiar with the situation said. The conversation was sufficiently serious that Mr. du Plessis took it to the Rio Tinto board, the person said.”

Because U.K. takeover rules prohibit companies from making new deals within six months, we believe this deal gets completed later this summer.

Glasenberg has an impressive history of buying assets at the bottom of the market, which includes Xstrata, Viterra and Caracal within the last three years.

Merger expert Ian Hannam, who helped orchestrate the merger of BHP Ltd and Billiton PLC in 2001, said the corporate marriage appears inevitable. “If not today, this deal will happen sometime in the near future,” Bloomberg quoted Hannam.

With Glasenberg at the 21

FINANCE helm, anything is possible.

Barrick Gold & Newmont Mining For years now, the world’s top two gold miners in terms of production have been in off-and-on talks to merge.

In 2015, the two will finally unite.

According to Reuters, Newmont has expressed interest in restarting merger talks with Barrick, after CEO Gary Goldberg announced that he was open to resuming discussing despite no contact between the parties since April. The two parties haven’t spoken since publicly accusing each other of ruining a deal favored by many investors. The deal, now more than ever, makes sense for Barrick.

The Toronto-based gold producer reported a monster fourth quarter loss of $2.85 billion last year, as well as announcing it will be putting its Porgera and Cowal operations up for sale.

Cowen and Co analyst, Adam Graf, said there could be some cost savings if Barrick and Newmont combine, but a big, flashy deal could leave investors worse off.

“I believe there are some synergies to be harvested in Nevada, but I think a mega-merger is not the best way to 2 2 M arch 2015

‘We continue to see the best outcome for Barrick and Newmont to be a consolidation of the companies Nevada operations. We still feel a combination creates value by accessing Nevada savings which we estimate are around $250m pa.’

-J ohn Bridges, Senior Analyst for JPMorgan Barrick Gold Corp.

Co-Chairman John Thornton was criticized by Newmont Mining for not being constructive as it ended merger talks.

2015: YEAR OF THE MEGA MERGERS

go about it,” he said. Graf believes the companies are better suited to form a joint venture, or Barrick could sell its Goldstrike complex to Newmont.

However, JP Morgan’s John Bridges and his team believe the mega merger deal still makes sense.

“We continue to see the best outcome for Barrick and Newmont to be a consolidation of the companies Nevada operations. We still feel a combination creates value by accessing Nevada savings which we estimate are around $250m pa.

This should make debt more manageable. An important question

for Newmont is what deal can be concluded with the Indonesians over its insistence that miners build smelters to upgrade concentrates to metal within Indonesia. If Newmont’s cashflow expectations from its Indonesian mine Batu Hijau suffer a haircut, it could be more interested in the savings available from a deal with Barrick.

A combination would allow the asset portfolio to be optimized or possibly spun out in one or more spincos. However, we fear spinning out less popular assets might not realize the hoped for value.”

23

Image Credit: Ron Ho

TOP 10

YOUNGEST

Mining CEOs We break down the youngest CEOs in the mining industry Written by: Robert Spence For many young professionals, the ultimate career destination is the big office with the secretary in front and the view in back.

To be a chief operating officer of a major mining company it requires the right vision and a willingness to take calculated risks. You have it or you don’t; it’s as simple as that.

The following CEOs, despite their young age, have the tenacity to operate some of the largest mining companies in the world.

25

TOP 10

09

Ivan Glasenberg Age: 58

As leader of the largest commodity trading company in the world, Ivan Glasenberg is a man among boys.

Since 1984, Glasenberg has held several positions with Glencore until becoming CEO in 2002. His strategic thinking, and successful takeovers, has earned him a net worth valued at $6.1 billion.

10

Andrew Mackenzie Age: 58

At age 58, Andrew Mackenzie is the oldest CEO to make our list.

He has spent the last 30 years in the oil and gas, petrochemicals and minerals industries. Mackenzie joined BHP Billiton in 2008, becoming CEO in 2013. The best years are yet to come.

26 March 2015

YOUNGEST MINING CEOS

07

Mick Davis Age: 56

Mick Davis is the maverick of the mining industry. Not only has he been involved in some of the world’s biggest and most formative mining deals, including the creation of BHP Billiton and its smaller rival Xstrata, but he is currently running x2 Resources, a private mining venture that aims to build new mid-tier diversified mining and metals groups. At the ripe age of 56, Davis has a chance to make another mark on the mining sector.

08

Mark Cutifani Age: 56

Mark Cutifani has been Chief Executive Officer of Anglo American since 2013. Before taking the reins of the UK-based company, he served as CEO for another mining company, South African AngloGold Ashanti.

With over 35 years in the mining industry, Cutifani makes our list at the tender age of 56.

27

TOP 10

06

Charles A. Jeannes Age: 56

Charles A. Jeannes is one of the youngest CEOs to run a top 10 mining company. Since 2008, Jeannes has been President and CEO of Goldcorp, one of the biggest producers of gold in the world. He previously held roles as Executive Vice President and Corporate Development.

05

Sean Boyd Age: 55

Seam Boyd is one of the longest tenured CEOs to make this list.

He was appointed President and Chief Executive Officer of Agnico Eagle in 1998, and has served various positions with the company since 1985. At age 55, Boyd has spent the majority of his career in the mining industry.

28 March 2015

YOUNGEST MINING CEOS

04

Donald Lindsay Age: 55

In regards to the mining industry, some could argue Donald Lindsay is a prodigy, buying his first two shares of a mining company (Leech Gold Mines) when he was 10.

In 2005, Donald Lindsay became President and Chief Executive Officer at Teck Resources Limited. He also serves as the President of Teck Cominco Alaska Incorporated, and previously served as President of CIBC World Markets as well as Head of Investment and Corporate Banking and Head of the Asia Pacific Region.

03

Nolan Watson Age: 35

Nolan Watson is one of the youngest and brightest CEOs in the mining industry.

Graduating the University of British Columbia at age 19, Watson went to work at Deloitte & Touche, quickly moving into the corporate finance department. After leaving and joining Silver Wheaton Corp., he was promoted to Chief Financial Officer, making him the youngestever CFO of a NYSE-listed company at 26. In 2008, he left the company to form Sandstorm Gold, a low-risk royalty model that provides upfront cash payments to companies that are building mines.

TOP 10

02

Brendan Cahil Age: 35

Age is only a number for Brendan Cahil. At age 35, Cahil is President and Chief Executive Officer for Excellon Resources Inc, a global exploration company with projects in Mexico. Before coming onboard with Excellon, Cahil was previously Vice President Corporate Development of Pelangio Exploration Inc., a junior gold exploration company active in West Africa.

30 March 2015

YOUNGEST MINING CEOS

01

Jordan Trimble Age: 27

When most people are just beginning their career path, Jordan Trimble is in his prime.

Since 2013, Trimble has been Chief Operating Officer and President of Skyharbour Resources Ltd., a uranium exploration company in Saskatchewan. At 27, Trimble is the youngest CEO in the mining industry.

In addition to being the big boss man for a major mining company, Trimble serves as the Head of Corporate Development and Communications at Bayfield Ventures Corp.

Jordan Trimble, CEO & President of Skyharbour Resources Ltd.

31

Dundee Precious Metals shows that

caring leads to success Written by Tom Wadlow Produced by James Pepper

33

D U N D E E P R E C I O U S M E TA L S

The Canadian miner has embedded into Bulgarian and Armenian communities thanks to its environmentally and sociallyresponsible operations, bringing with it much-needed economic boosts

D

undee Precious Metals is maximising productivity from its European assets in a responsible manner having boosted output fourfold at its flagship Bulgarian site while operating under the mantra ‘we succeed because we care’.

The company has four working projects and a number of exploration programmes spread across three continents, and is looking to cement itself as a global leader in sustainable mining operations, combining strong social work and provision of jobs for locals with environmental and operating innovations in the mines themselves.

Having begun in Toronto, Canada, 30 years ago, Dundee Precious Metals began life as an investment fund in the gold mining sector, converting into an operator when its founders

Heat exchangers, converter, absorption towers to stack

34

March 2015

Strong CSR saw Dundee embed into communities

discovered the underground sites in Bulgaria.

Now it is close to opening another Bulgarian mine and expanding its operations in Namibia, adding a Sulphuric Acid Plant to convert the emissions created by its Tsumeb smelter.

Chelopech Encapsulating what Dundee Precious Metals is about is its flagship mine at Chelopech in central-western Bulgaria.

Bought by the business in 2003, the former Soviet-run gold, copper and silver mine has been given a complete facelift to the value of $400 million which has seen overall production quadruple, with ore output reaching 2.076 million tons.

Chief Executive Officer Rick Howes believes

“This is about earning respect as a foreign company and our stakeholder engagement and environmental work has allowed us to embed into societies” – Rick Howes, CEO

w w w. d u n d e e p r e c i o u s . c o m

35

D U N D E E P R E C I O U S M E TA L S

36

March 2015

D U N D E E P R E C I O U S M E TA L S

MINING

there is even more potential to be extracted.

He said: “We are exploring the whole surrounding region and believe there is a lot more mineralisation out there. There is about 10 years of life left in its current state, but we keep adding to this all the time and it is already one of the largest gold mines in Europe.”

Dundee Precious Metals has greatly upgraded the site, replacing the 50-60-yearold systems and processes with modernised technology and solutions.

For example, a recent innovation has been the introduction of wifi to allow real time tracking of operations, crucial to monitoring productivity and staying on top of potential health and safety hazards. Partners such as HP, Cisco and Microsoft are helping to bring

SUPPLIER PROFILE

ELTRAK

ELTRAK is responsible for the full range of machinery Caterpillar , the world’s largest company of this type (earthmoving machinery, forklifts, power generators and marine engines) and has developed a network of branches throughout Greece, to provide the necessary after -sales support and to directly meet the needs that may arise in spare parts for earthmoving machines, generators (G / S), the lift machinery and shipping.

Website: www.eltrak.gr

w w w. d u n d e e p r e c i o u s . c o m

37

D U N D E E P R E C I O U S M E TA L S

further technological upgrades to the site.

Local people from the surrounding are of the Dundee sites

38

March 2015

Giving Back The key to success at Chelopech, and indeed all of the company’s work, has been the careful integration into the project communities, both in a social and environmental sense, convincing the local populations that Dundee Precious Metals is a positive influence in their areas.

MINING

Key Personnel

Richard Howes President & CEO

Chelopech has seen the implementation of a number of sustainable innovations. This includes a new staged flotation reactor from Woodgrove Technologies, reducing power consumption of the flotation process by 50 percent. Air consumption is reduced by 80 percent and the amount of floor space required is 50-60 percent of that taken up by conventional equipment. “We have proven it is a no brainer, and are

Rick Howes is a Professional Mining Engineer with over 34 years’ experience in the mining industry.

His extensive industry experience includes progressive technical, operating, management and project roles in many of the largest Canadian underground mines and mining companies throughout Canada and most recently internationally.

w w w. d u n d e e p r e c i o u s . c o m

39

amecfw.com

growing new technology

Amec Foster Wheeler is pleased to be working with Dundee Precious Metals on the Krumovgrad Project in Bulgaria.

A Paradigm Shift In Flotation

staged flotation reactor providing major reductions in

connected excellence in all we do

Perth +61 8 9347 4777  Ashford +44 1233 653600  Vancouver +1 604 664 4315  Johannesburg +27 11 840 7300  Brisbane +61 7 3033 5600  Lima +51 1 221 3130  Toronto +1 416 592 2 2102  Saskatoon +1 306 975 0444  Santiago +56 2 2957 7700

Refractory competence for the nonferrous metal industry

RHI is the leading global partner for the nonferrous metal industry.

We offer the complete programme of most exclusive products and service ranges from basic and non basic bricks, carbon blocks, as well as non shaped products, prefabricated products, slide gate plates and purging plugs.

Our clients can rely on our state-of- the-art all inclusive solutions for processes, lining concepts, special machinery equipment and repair systems as well as computer simulations like CFD, FEA and thermodynamic calculations to support the improvement of metallurgical processes and furnace integrity.

EXCELLENCE IN REFRACTORIES

• Footprint • Capital investment • Operating cost • Power and air

416 751 4848 www.woodgrovetech.com woodgrove@woodgrovetech.com

Realizing the full potential of maintenance in mining and minerals processing

We understand the unique maintenance and business challenges of the mining and minerals processing industry. The harsh environments and uncompromised focus on safety, equipment reliability and efficiency mean that world-class maintenance practices are paramount. With over 25 year of experience working for some of the leading companies in the industry we have proven that we can add significant, sustainable value in both greenfield and brownfield operations. From embedding superior safety practices and building a true maintenance culture, to optimising maintenance cost and improving plant performance, our people continue to make the difference for our customers.

If you would like to know more about our change of name from ABB Full Service, or the maintenance management services we provide, please visit us at www.quantservice.com Quant is a global leader in industrial maintenance. For over 25 years, we have been realizing the full potential of maintenance for our customers. We are passionate about maintenance and proud of ensuring we achieve our customers’ goals in the most professional way.

www.rhi-ag.com

www.quantservice.com

D U N D E E P R E C I O U S M E TA L S the first company to use this technology on a broad basis.” Howes added. “It is fullyinstalled at Chelopech and the big miners like Vale (Brazil) are now testing it. We will use it wherever we can as there are so many environmental and economic benefits to it.”

Other examples include systems which treat and recycle 100 percent of the water used at Chelopech with zero discharge, and a new conveyor to transport materials from the mine to the surface, replacing the use of trucks, leading to a 40 percent reduction in diesel use in 2013.

On the social side, building relationships with governments and local populations has been the most important challenge that Dundee Precious Metals has had to overcome. In 2013 the company spent $3.2 million on community investment and was recognised as the most generous financial donator in Bulgaria.

“This is about earning respect as a foreign company and our stakeholder engagement and environmental work has allowed us to embed into societies,” Howes said. “Convincing them that we will continue to invest was a challenge, but we have been successful and that is proven by the fact we are now working on a second project in Bulgaria.”

The company’s social responsibility is no better demonstrated than by its Chelopech English Language School, which was acquired with the mine and now attracts Bulgaria’s brightest students having seen significant investment. All

MINING

Rick Howes

“It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods” – Rick Howes, CEO

w w w. d u n d e e p r e c i o u s . c o m

41

D U N D E E P R E C I O U S M E TA L S teachers are Dundee Precious Metal employees.

Across all sites Dundee Precious Metals takes on local workers and provides them with training in the key skills required, encouraging promotion from within and embracing six core values – dignity and respect, continuous improvement, transparency, environmental responsibility, safety and community investment. Including contractors the company employs around 4,000 people.

A worker at the mine

Kapan and Krumovgrad In the southeast of Armenia, the Kapan underground mine has been modernised like Chelopech since the company acquired

Premier Supplier of Marine Metals and Plastics to Princess Yachts

Sylmar Technology is dedicated to the supply of high quality solid surface products for domestic and commercial use. In addition to the supply of its key brands maia, minerva and Avonite, Sylmar Technology also offers turnkey solutions for all your solid surface needs.

The range of work undertaken ranges from one-off individual retail projects to the full design and fabrication of components delivered to your production line.

Whatever your requirements – we can help.

Contact Sylmar or visit our website now for more details. sales@sylmar.co.uk | 01773 521300

Contact your LOCAL Blackburns today...

01752 612 400 plymouth@blackburnsmetals.com

42

March 2015

www.sylmarsolidsurfaces.com

MINING

it in 2006, requiring a big focus on skills training and addressing language barriers.

Last year 403,000 tons of gold, copper, silver and zinc ore was produced, and although the mine is markedly smaller than its Bulgarian partner, there is excellent expansion potential.

Howes said: “We think we can double it in size, and though the decision to fully invest has not been made yet we are doing the studies and evaluations – within the next year or two we will have made a final call.”

Another exciting prospect is Dundee Precious Metals’ first open pit project, the second Bulgarian venture located just outside of Krumovgrad in the southeast of the country.

The site will be built by local contractors and a much-opposed cyanide method for extracting gold has been removed from any plans for the development, with Howes keen to showcase this as a pioneering example of an environmentally-sensitive mining operation.

Production should begin in early 2018.

“The life of the mine is about eight years and we are still exploring the area in the hope of expanding this further,” Howes added. “It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods.”

Dundee will also be starting its first open pit project in 2017 or 2018

Namibia There is also exciting work taking place in Namibia, home to Dundee Precious Metals’ w w w. d u n d e e p r e c i o u s . c o m

43

“The uranium mines require the acid to leach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world� – Rick Howes, CEO

44

March 2015

specialised smelter which processes complex copper concentrates produced at Chelopech, having once served the notorious Tsumeb copper mine.

Since buying the site in 2010 having been a customer of the previous owner, the company has invested around $350 million on modernisation, $242 million of which on a sulphuric acid plant which converts smelting emissions into product which is then sold onto Namibian clients.

Rossing Uranium Limited has already signed a five-year contract for 225,000 tons a year of sulphuric acid for use in its uranium mine, with local logistics operator TransNamib doing the transportation work by train.

Weatherly International is another customer

MINING

signed up, with the total annual production of 40,000 tons already completely sold.

“There are about 1,200 contractors on site at the moment completing the project,” Howes said. “The uranium mines require the acid to leach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world.”

The site has already seen emissions reductions of more than 44 percent over the course of 2013, with the new plant set to boost this figure even further.

Tsumeb is also improving its energy efficiency, with an 18.7 percent energy intensity decrease seen across 2013.

Chelopech saw a 10.6 reduction while Kapan achieved a 7.3 percent drop.

By continuing to pioneer greener mining techniques across all of its growing and impending production sites in Bulgaria and Armenia, Dundee Precious Metals will continue to build on its collaborative work with local communities and bring vital wealth and resources to local populations.

Such principles will not be sacrificed as the company continues to grow, with Howes determined to lead the way as a responsible miner with a worldwide presence in the future.

He concluded: “You must earn the right as foreign company to mine another country’s resource – being an investor of choice is hugely important, and people want us to stay.”

Company Information INDUSTRY

MINING HEADQUARTERS

Toronto, Canada FOUNDED

1980s EMPLOYEES

2,800 (4,000 with contractors) REVENUE

Not disclosed PRODUCTS/ SERVICES

Mining

w w w. d u n d e e p r e c i o u s . c o m

45

a subsidiary of

Lundin Mining –

Eagle Mine Creating a Legacy at Eagle Mine As sole owner, developer and operator of the Eagle Mine, Lundin Mining is creating a legacy of responsible mining Written by: Robert Spence

Produced by: Bobby Meehan

47

LUNDIN MINING – EAGLE MINE

Drill Core

Situated in the western Marquette County of Michigan’s Upper Peninsula, Lundin Mining’s Eagle Mine is gearing up for an exciting 2015 year.

The underground nickel and copper mine, which was purchased in 2013 from Rio Tinto, has produced more than 218,642 tons of nickel and copper ore since commencing production in July 2014. Over its estimated eight year lifecycle, the mine is expected to produce 360 million pounds of nickel, 295 pounds of copper and small amounts of other metals.

In building Michigan’s first 48

March 2015

new mine in decades, Lundin is dedicated to safety, protecting the environment and putting local people to work. The mine has been a shining example of the legacy Lundin Mining is striving to create.

Creating a legacy Founded in 1994 and headquartered in Toronto, Canada, Lundin Mining Corp. is a metals mining company with operations and development projects in Chile, Portugal, Sweden, Spain and the United States, producing copper, zinc, lead and nickel. Lundin also has a 24% interest in the Tenke Fungurume in

CANADA

Ball Mills

the DRC and 24% interest in the Kokkola Refinery in Finland. Both with Freeport.

Lundin’s goal for Eagle was to build, operate and close a low cost, efficient modern mine.

Because company-community relations were strained from inception, the company recognized it needed to be transparent with the community.

“We set out to be very transparent with the community and make this project a two-way engagement,” says Mike Welch, General Manager of Eagle Mine.

In the beginning of 2010, the company commissioned a series of focus groups to identify the issues of importance to the community when it came to new mining projects.

The series was facilitated by external consultants with the aim to assist Eagle Mine

“It’s about boots on the ground, it’s about engagement, it’s about positive reinforcement, and it’s about understanding how they do their job” – Mike Welch, General Manager of Eagle Mine

w w w. e a g l e m i n e . c o m

49

Building the Midwest Bacco Construction Company, Michigan’s oldest prequalified contractor, is very proud to be an integral part of the Upper Michigan’s rich mining history. Bacco Construction’s unique array of expertise surpassed the Eagle Mine’s needs for an all-encompassing contractor. Upper Michigan and Northern Wisconsin’s best choice for comprehensive mine site development.

MailiNg addrEss PO Box 458 N3676 North US-2 Iron Mountain, Michigan 49801

PhoNE Fax Ph 906-774-2616 Fx 906-774-1160

for 100 Years

Email: bacco@baccocc.com | www.baccocc.com

n g f n n

16 60

SUPPLIER PROFILE

BACCO

Bacco Construction Company, a contractor established in 1915 and incorporated since 1930, is Michigan’s oldest Department of Transportation prequalified contractor and is once again very proud to be an integral part of the Upper Peninsula of Michigan’s rich mining history. Bacco Construction Company began ground breaking operations in July 2010 for the Eagle Mine portal in the Yellow Dog Plains of Marquette County and continued with mine site development. Upon building a great working relationship with Eagle Mine representatives, the scope of work Email: for Bacco Construction expanded onto the Humboldt bacco@baccocc.com | www.baccocc.com Mill ore processing facility development which will be completed with final pavement and restoration in the spring of 2015. Bacco Construction Company is a proud partner and supporter of the mining industry.

Bacco Construction’s wide range of construction methodology and all-encompassing capabilities pairs extremely well with the needs for establishing mine site facilities. The vast array of construction expertise for the Eagle Mine includes: mass excavation, landfill construction, crushing operations, piping and utility placement, GPS mapping, concrete and foundation work, multi-plate culvert/portal construction, concrete and asphalt pavements, rail spur construction, and site restoration. Bacco Construction Company also completed 12 miles of entirely new roadway construction and 22 miles of reconstruction as part of a joint venture to service the Eagle Mine. Bacco Construction Company is Upper Michigan and Northern Wisconsin’s best and only choice when it comes to comprehensive mine site development.

Website: www.baccocc.com

LUNDIN MINING – EAGLE MINE in understanding the strengths, weaknesses, opportunities and threats of mining from the community’s perspective. The focus groups ultimately provided a social baseline of the views the community held about new mining projects in the region. “I think every operation has to look at what their own community’s concerns and interests are, and what is the best way for all parties to communicate,” says Welch.

“We now do these focus groups every two years and we keep building that knowledge capacity to understand what the community concerns are and how we can improve our performance in the community.”

Secondary initiatives With constructive feedback from the focus groups, Eagle Mine has developed environmental and

MINING GLOBAL

community programs aimed at addressing the community’s interest.

In an effort to build community trust and confidence, the company has developed a community scorecard which allows community members to rate Eagle’s performance in five areas– environmental performance, local hire, safety, communication and engagement, and community development.

During town hall meetings community members receive an update on Eagle’s operation, ask mine representatives questions and then use electronic clickers to score the company’s performance as: “exceeds expectations”, “meets expectations”, “below expectations”, or “need more information”. The scoring is provided real-time during the meetings – for complete transparency the results go up on a screen for everyone

“We now do these focus groups every two years and we keep building that knowledge capacity to understand what the community concerns are and how we can improve our performance in the community” w w w. e a g l e m i n e . c o m

53

Industrial Services, Inc.

Our core mining management staff has more than 150 years combined mine maintenance, operations and repairs in mining and mine processing facilities.

A FULL SERVICE HEAVY INDUSTRIAL GENERAL CONTRACTOR

Safety ... Quality ... Driven

We pride ourselves on the partnerships built from our relationships with owners and clients. We believe the relationships we build are the key element to our success.

• • • • • • • •

Mining Services Millwright Services Iron Working Conveyor Work Rigging/Heavy Rigging Certified Welding Kiln & Dryer Maintenance Optical & Laser Alignments

• Concrete Work • Equipment Installs & Relocation • Maintenance Assistance & Outage Work • Demolition • Management /Job Planning • Earth Moving

Project Planning

Conveyor Work

Heavy Rigging Mining Services Alignment

Safety is our top priority in the performance of all our tasks, start to finish. We commit to providing a safe work environment for employees, fellow contractors, subcontractors and your facility.

4305 W. US 2 Iron River, MI 49935 Phone: (906) 265-2100 Fax: (231) 344-5919

www.faindustrialservices.com info@faindustrialservices.com

LUNDIN MINING – EAGLE MINE in the room to see. After scoring, community members are asked for comments on how the company can improve or what else they would like to see from Eagle.

Next, the company takes the results and publishes them on their website and in the local paper. If there are areas of improvement identified, Eagle creates an improvement plan and publishes that too. Every six months the company will go back to the community and conduct the scorecard again.

“Historically, there have been

SUPPLIER PROFILE

CANADA

perceived risks to such an open and frank style of communication, however that has not been a consideration and all our efforts have been of full value,” says Welch.

He added, “For us, this works. The community has appreciated the opportunity for two-way dialog and as time moves on, community concerns have dampened. People have come up to us and thanked us for the transparency of the project.

This has helped build more trust in our community relationships.”

Taking it a step further, Eagle helped develop an independent

FA INDUSTRIAL SERVICES

Safety...Quality...Driven Capabilities: Industrial Maintenance, General Contracting, Structural Steel Repairs, Steel Erection, field fabrication, mining services, conveyor work, boiler grates, rigging/ heavy rigging, optical & laser alignments, concrete work, project management, Equip installs, machinery moving, demolition, kiln and dryer maintenance and more Website: www.faindustrialservices.com

w w w. e a g l e m i n e . c o m

55

WATCH YOUR RESULTS IMPROVE

SUSTAINABLY

Together, we improve safety, productivity, and quality results.

When operational performance is a priority…

How do we help companies across North America improve operational or financial performance in a sustainable way?

By empowering their people to lead and make the changes needed in both systems and behaviors. We accomplish this by combining consulting, coaching, and training to integrate “soft” with “hard” skills.

Get your ROI fast.

We achieve our agreed-upon return on investment, often before our mandate is completed. And your people’s selfreliant, continuous-improvement approach sustains your results long after we’ve left.

Unleash your people’s potential.

Unleash your organization’s results.

For a free consultation on how we can help you and your organization reach and sustain world-class results, contact us today.

OUR PROMISE OF PERFORMANCE

A 300% + ROI A Fast Return

Sustainable Results Self-Reliance

T: 514-521-3999 Toll free: 1-877-662-4547 E: info@mobilisperforma.com

mobilisperforma.com

LUNDIN MINING – EAGLE MINE

CANADA

program to conduct environmental monitoring of its mining operation. The program is called the Community Environmental Monitoring Program (CEMP) and it provides the community with third party verification monitoring at the mine, mill and along the transportation route.

The program is administered by the Marquette County Community Foundation (MCCF) and the Superior Watershed Partnership (SWP) who work in unison to monitor Eagle’s environmental performance.

MCCF provides an oversight board and serves as the pass-through of funds from Eagle to SWP while SWP is responsible for monitoring the company’s environmental performance.

All together the program serves to strengthen

County Road 550 Marquette County

SUPPLIER PROFILE Employees: 15

MOBILIS PERFORMA INC.

Established: 1998 Industry: We help companies improve operational performance (safety, quality and productivity) and their bottom line, sustainably, through customized training, advising and coaching in best-practice management systems and leadership. We do not impose a recipe; with you, we design a “fit for purpose” solution.

Recent and On-going Projects: Lundin Mining, Eagle Mine: Successful operational readiness and ramp-up including daily, weekly, and monthly reporting of production, quality and safety KPIs as well as leadership/active supervision coaching to foster the right conversations around results.

Glencore, Raglan Mine: Reduce waste of resources by 15% through better management/ communication systems and active supervision.

Glencore, Raglan Mine: 45% improvement in main ramp drilled meters per day for a new underground mine.

Management: Pierre Capistran, Managing Partner For a free consultation on how we can help you and your organization reach and sustain world-class results, contact us today.

Website: www.mobilisperforma.com

w w w. e a g l e m i n e . c o m

57

BEYOND WHAT YOU’LL FIND IN A TYPICAL

CONSTRUCTION COMPANY

With over 116 years of experience in the mining and heavy industrial markets, Gundlach Champion has proven track record of providing preconstruction and project delivery systems that accommodate a diverse range of clients.

Services Offered Preconstruction | Design/Build | Construction Management | General Contracting Markets Served Industrial | Commercial | Public Facilities | Healthcare | Education

CONTACT US

MAIN OFFICE 180 TRADERS MINE RD | IRON MOUNTAIN, MI 49801 | (906) 779-2303 BRANCH OFFICE 200 5TH STREET | CALUMET, MI 49913 | (906) 337-0700

WWW.GCFIRST.COM

LUNDIN MINING – EAGLE MINE

CANADA

relationships in the community and build trust within the local stakeholders. Whether it’s a community scorecard or independent environmental monitoring, the community has a say in how Eagle Mine operates.

One common goal As mentioned before, one common goal among the company and the community is safety. The company employs roughly 355 employees, which includes full-time Eagle employees and contractors, making safety a top priority for the company.

Derived from portions of the DuPont Safety System, the company employs the health and safety program Visible Felt Leadership. The program integrates a one-on-one engagement

Humboldt Mill

Concentrate Loading w w w. e a g l e m i n e . c o m

59

Free private consultation for solid waste, septic waste & recycling disposal needs.

Fast and on time, same day service.

Local company keeping local money local.

Efficient and effective from start to finish.

304 N. M-553 Marquette, Michigan 49855

Phone 906-249-4500

Fax 906-249-4501

Know Your Watershed est. 1998

n o r t h j a c k s o n c o m p a n y | 3 07 s o u t h f r o n t s t r e e t, s u i t e 10 5, m a r q u e t t e , m i 49 8 55 c o r v a l l i s T e l : 5 4 1 -2 0 7 - 3 7 3 5 | m a r q u e T T e : 9 0 6 -2 2 5 - 6 7 8 7 | w w w . n o r T h j a c k s o n c o . c o m

LUNDIN MINING – EAGLE MINE approach to making safety personal.

“We use the leadership program as an engagement tool. When we talk about zero harm, what we’re saying is we’re engaging each employee individually with the philosophy that every injury is preventable,” says Welch. “It’s a mandate that this management and operations team has taken on.”

According to Welch, one key tool of the program is Pre-task Hazard Assessment. Because environments change every day, the program ensures all work is being performed safely by assisting employees and contractors in continuously

CANADA

observing their surroundings to identify potential safety hazards.

“It’s about boots on the ground, it’s about engagement, it’s about positive reinforcement, and it’s about understanding how they do their job,” says Welch.

“We all have a common goal and these safety programs and initiatives are a continuation of the common goal.”

Along with Pre-task Hazard Assessments, Lundin encourages their team to interact and converse with other employees and contractors about the tasks they’re completing, as well as observations

Eagle Mine w w w. e a g l e m i n e . c o m

61

Contact Us: +1 705.699.3 40 0 info@ xps.ca w w w. x p s .c a

XPS would like to congratulate Lundin’s Eagle Operation on the successful commissioning of their mine and mill.

XPS is a metallurgical consulting and testwork business with exper tise in: Nickel, Copper, Zinc, Gold, PGMs, Industrial Minerals and Rare Ear th Elements.

LUNDIN MINING – EAGLE MINE and desired behaviors recognized.

“Many of the contractors we’ve employed weren’t used to the rigorous safety standards we required while working onsite,” says Welch. “They had to change their own culture in order to meet our requirements.”

“We’ve had contractors in the past who’ve brought our training and tools to new operations and other sites they work on. It goes to show the lasting impression we’re having on people.

One of the company’s first commitments to the area was a local hire goal of 75% during operations.

While the area has a lot of talented, hard workers, it didn’t necessarily have the people with the exact skills needed to commission and start an operation. Lundin had to be strategic with its training so that it could hire people from the local community and skill them up for the job. Today, Eagle has a local hire percentage of 84 percent.

Eagle partnered with Northern Michigan University to develop specific training programs for its employees. Classes include Bearing & Power Transmission, Welding

CANADA

Testing, Conveyor Maintenance, Basic Pump Maintenance, Manual Alignment, Laser Alignment, Hydraulics, and Welding Training.

Last but not least, Eagle is funding a Technical Middle College (TMC). The Middle College will provide high school students in the area the opportunity to earn a high school diploma and an associate’s degree at no cost to the student. The program offers students the opportunity to pursue an associate degree in six career areas: Clinical Sciences, Industrial Maintenance, Electrical Technology, Building Technology, Automotive Service Technology, and Heating, Ventilation, Air Conditioning and Refrigeration.

Operations at Eagle Mine Although Lundin has commenced production at Eagle Mine, the company is still currently ramping up production to reach its nameplate capacity.

Current operations include a long hole stope mining method, which requires a main decline tunnel, a primary ventilation system and an emergency secondary w w w. e a g l e m i n e . c o m

63

LUNDIN MINING – EAGLE MINE

Mine Entrance

egress to the surface. Once ore is mined from each stope, it is then backfilled with a cemented/ aggregate/sand mix to maintain structural integrity before mining the remaining stopes in the section.

The ore is transported 66 miles by semi-trucks to the Humboldt Mill.

At the Mill the ore is crushed (three stages) and then ground into a fine slurry whereby the nickel and the 64

March 2015

copper are floated, thickened and filtered to produce separate nickel and copper concentrates. This is where the process ends at Eagle.

The concentrates are shipped to off-site facilities for smelting and refining before they can be used to manufacture the products that fuel society.

Not to be outdone, Lundin implements some of the most

CANADA

recognized and respected technology and equipment onsite. The company couples the latest equipment including crushers, grind mills, float circuits, filter presses and pumps with stateof-the-art programmable logic controls (PLC), DCS systems, and collects nearly 5,000 data points throughout the process. All-in-all, this mill is wired for success.

In following with its community transparency plan, Lundin strives to ensure all water at the mine is up to the highest standards. The company employs a robust water management program with a reverse osmosis water treatment plant.

“All the water we treat is discharged as drinking quality water, or better,” says Welch. “That’s the standard the community wanted and we wanted to ensure we delivered.”

As sole owner, developer and operator of the Eagle Mine, Lundin Mining is creating a legacy of responsible mining by taking the community into consideration, incorporating transparency into operations, and providing one of the safest mines in the United States.

“Our biggest obligation during and after we’ve completed operations at Eagle Mine is to make sure we’ve maintained our credibility with the community,” says Welch.

He adds, “When you look back and think of Eagle Mine, it won’t be that we mined for eight years. Our legacy will be: did our employees go home safe, were we protective of the environment and did we have the trust of the community.”

Company Information INDUSTRY

Mining Global HEADQUARTERS

Champion, Michigan, United States FOUNDED

1994 (Lundin Mining) Eagle was discovered in 2002, commenced production in Q3 2014.

EMPLOYEES

355 REVENUE

Not Disclosed

w w w. e a g l e m i n e . c o m

65

North American Construction Group

Bigger is Always Better

With one of the largest equipment fleets in all of Canada, North American Construction Group is looking to expand into emerging markets and carve out a name for itself Written by: Robert Spence Produced by: Michael Magno

67

NORTH AMERICAN CONSTRUCTION GROUP

I

n the heavy construction and mining industries, massive amounts of land must be cut out to make room for new projects. When it comes to the equipment needed to move this land effectively and efficiently, the term “bigger is better� certainly applies.

North American Construction Group is one of the largest providers of heavy construction and mining services in Canada. Founded in 1953, NACG specializes in the resource industries like oil, gold, diamonds, coal with an expertise in hard rock and oil sands mining, overburden removal, 68

March 2015

dam construction, roadworks, underground utilities, mine site development, and mine reclamation.

Coupled with an unmatched commitment to safety and training, the company has earned a reliable and trustworthy reputation by blending its knowledge and experience that clients seek with a fleet of equipment that match project needs.

Best of the best NACG has a proven ability to meet customer requirements from consultation to completion. The company is able to do so because

CANADA

it employs one of the strongest workforces in all of Canada. With a staff of over 1,500 (sometimes exceeding more than 2000 at peak times), the company has earned a reputation for acquiring some of the best talent in the industry. It’s one of the main reasons clients continue to work with NACG. “We do a lot of prescreening, fitness for work test, drug and alcohol testing, and police record checks,” says Lambert. “We try and use as many tools as we can to make sure the person we’re hiring matches the skills and physical requirements of the job.”

In addition to matching the right workforce to the job, NACG employs a robust safety regime that is second to none in their field. The company’s motto – Everyone Gets Home Safe – is integrated through a healthy work environment

“We try and use as many tools as we can to make sure the person we’re hiring matches the skills and physical requirements of the job” – Joe Lambert, Chief Operating Officer, NACG

w w w. n a c g . c a / h o m e

69

as well as extensive training and leadership programs.

“From the top to the bottom of our business, we see safety as a core value,” says Joe Lambert, chief operating officer at North American Construction Group. “In the markets we work in and the clients we have, safety is a license to operate. It’s a moral obligation to our employees besides just making good business sense.”

The company is committed to developing and maintaining the strongest safety systems and

training programs available. A shining example would be its Leadership for Safety Excellence program.

“The Leadership program works to improve skills and leadership throughout the company with particular focus on front line supervision,” says Lambert. “Front line supervision has a tremendous amount of influence on the overall safety of the company. So, investing in the development of those people and safety programs is core for us.”

The difference between North

CANADA

American Construction Group and others is simple: they have the corporate expertise to help companies meet their goals, and the right employees and equipment to get the job done on time, on budget, and safely.

Big, bigger, biggest If that wasn’t enough, NACG maintains one of the largest independently owned equipment fleets in the region. The fleet includes over 400 pieces of modern equipment, including haul trucks, shovels, excavators, dozers, graders, loaders and related earthworks machinery.

“Our fleet is one of the largest in Canada. There aren’t a lot of other companies that can compete at that scale of equipment,” says Lambert.

“Our mining equipment gives us an advantage, especially with high volumes of earthmoving.”

The company’s diverse collection of equipment gives it the ability to respond quickly to changing client requirements, while also providing clients with the most efficient, timely and cost effective blend of equipment possible.

“We keep a balance of small and large equipment. There’s seasonality and changes, and so we might have a lot of smaller civil works in the summer and more bulk earthworks in the winter,” says Lambert. “It’s just a balance of keeping everything busy.”

In addition to being one of the largest fleets in Canada, it’s also one of the most advanced. The company integrates a wealth of technological w w w. n a c g . c a / h o m e

71

NORTH AMERICAN CONSTRUCTION GROUP

components to ensure equipment is as efficient as possible.

“We have real-time monitoring on all equipment that allows us to receive notifications of what’s occurring in the machine,” says 72

March 2015

Lambert. “It helps us in measuring and monitoring equipment performance and the mechanical capabilities.”

According to Lambert, the company heavily invests in

CANADA

equipment failure analysis.

“We have major components that can cost hundreds of thousands of dollars. When a component fails early, we have reliability teams and maintenance technical experts that can identify those failure mechanisms and work with our vendors and suppliers to get design changes.”

Expanding markets The future of North American Construction Group will see the company expand into new markets, including hydro-electric, infrastructure, and civil.

“When we look to diversify whether roadworks or infrastructure jobs, we’re looking for areas that have a large volume of earthworks,” says Lambert. “We offer a competitive advantage in that area compared to most.”

Along with diversifying their portfolio and positioning themselves across multiple regions in Canada, North American Construction Group is going to continue doing what’s it’s been doing for the last 60 years – being a heavy civil and mining contractor.

According to Lambert, the company will continue doing what it’s been doing for the last 60 years despite the lower-than-expected oil prices.

“In our business, being safety focused, cost-conscious and driving efficiencies is something we do every year, whether boom or bust in the oil pricing.”

Company Information INDUSTRY

Mining and construction HEADQUARTERS

Zone 3, Acheson Industrial Area 2-53016 - Hwy 60 , Acheson, Alberta, Canada FOUNDED

1953 EMPLOYEES

1,500 PRODUCTS/ SERVICES

Not Disclosed

w w w. n a c g . c a / h o m e

73

South East Construction

The Easy Button for Compan

An unrivaled dedication to continuous improvements, safe become the service provider of choice Written by: Robert Spence Produced by: Bobby Meehan

n

nies

ety and client trust is helping SEC

75

SOUTH EAST CONSTRUCTION

Heavy Civil Construction and Site Development for Mining

L

ocated in the prairie providence of Canada, Saskatchewan, South East Construction (SEC) is a multitrade industrial construction company specializing in the Potash mining and milling industry. The company, which began in 1986 as a contractor to local Potash mines in the area, has transformed into an all-in-one service provider for a wealth of industries. “We looked at our core business and realized there was a lot more we could provide to clients. We decided to revamp ourselves from being just a contractor, to being a service 76

March 2015

provider,� say Mike Silvernagle, chief operating officer of South East Construction.

New businesses In 2010, the company began diversifying its business. It commenced an array of divisions within the company adding concrete, carpentry, electrical, earth works and site services to its repertoire.

The company also has it hands in construction and maintenance, conducting structural steel and piping for companies as well as maintenance and sites service

CANADA

Storm Water Management, and Buried Services

work, including snow removal, road maintenance, water and waste removal. SEC also has a fully integrated steel fabrication and painting facility equipped with an industry leading PythonX robotic CNC plasma cutting machine as well as a full service paint shop.

South East Construction is trained and certified CWB certified, Boiler Branch Certified, ISNet registered, SCSA Certified and a member of the Saskatchewan Construction Labour Relations Association.

“It doesn’t matter what people want, we want to be the easy button for companies.”

Easy button In an effort to become the easy button for companies, SEC continuously strives to be better. The company confides in management and team members to find new ways of improving productivity, efficiency and pricing for clients.

“Continuous improvements is learning from one another and continuing to resource consultants and people within our company to help us build what we’re trying to do,” says Silvernagle. “We have a continuous improvement meeting weekly and part of the meeting is focused on changing each w w w. s e c o n . c a

77

A Company Built on Integrity, Safety & Quality Pryme Concrete Construction Inc. offers concrete services to include but not limited to new construction, demolition, restoration and general contracting.

We handle a variety of industrial and commercial projects in central Saskatchewan, Canada.

Bryce Field President-Owner

Reg Field Superintendent-Owner

Pryme Concrete Construction Inc. | Office: 306-743-2290 | Fax: 306-743-2254 | Email: pryme@sasktel.net GRAVEL • CONCRETE • EXCAVATION • AGGREGATE

Brockman Enterprises a supplier of transit redi-mix concrete along with many excavating services, including track-hoe work for trenching, tracksteer/loader work for landscaping and snow removal in the winter months.

We specialize in sand and gravel products along with screening, washing, and crushing of the products.

Chilly’s Water & Septic Inc. is an experienced water, septic and hydrovac service provider located in Saskatchewan, specializing in a variety of services within the mining, excavation and service industry at competitive rates.

Proudly serving Humboldt and area for 89 years 306-682-4340 | Fax 306-682-2413 Email: brockmanenterprises@sasktel.net

P.O Box 388 | Stockholm, SK SOA 3Y0 | Canada 306-793-3060 | fax 306-793-3061 chillyswaterandseptic@hotmail.com www.chillyswaterandseptic.com

SOUTH EAST CONSTRUCTION section to be more efficient, more streamlined and overall better for the client.”

According to Silvernagle, the goal behind its continuous improvement plan is to build trust among clients.

“It boils down to how fast you can do business when the trust component is there. Once you have trust, the speed at which you can do business is remarkable.

We’ve proven the way we do business works.

The company recently invested over a quarter of a million dollars into software programs to better control costs. The investment allows SEC to be more thorough, detailed and conscious of where every penny is going.

“Trust with the client is built through safety, productivity, and cost-effectiveness,” says Silvernagle. “We made the software investment to help us control our costs so we could lower rates and provide clients with the best deal possible.”

“Our clients want to know we are managing there money properly. Trust among the client is vital, and if you have that, the client retention follows.”

Other continuous improvements

CANADA

include personnel. Within its organization, SEC has highly qualified people, including Construction Manager, Project Managers, Superintendents, General Foreman, Health and Safety Manager, Safety Administrators as well as numerous long term employees in foreman and tradesman positions.

However, unlike most companies, SEC doesn’t just look at qualifications.

“It’s all about character and Integrity in our business,” says Silvernagle. “I’ll browse resumes but I like to look future employees in the eye and see if they’re personal, intriguing and what they’re built like.

Character is everything to me., and we want employees that will drive to ensure our clients are looked after” Safety driven company South East Construction is committed to a strong health, safety, and environmental program that protect employees, subcontractors, clients, property and members of the public from hard.

The company has an extensive training program for new employees w w w. s e c o n . c a

79

YOUR BUSINESS RUNS 24/7.

SO DOES TR PETROLEUM. Locally Owned and Operated in Saskatchewan for over 35 years

FAST, RELIABLE SERVICE WHERE AND WHEN YOU NEED REFUELING. NO SPILLS, NO SHORTAGES, NO STRESS. TR Petroleum brings what your industry needs to stay running—from Oil & Gas, Mining, Agriculture, Forestry, and Construction to local service stations and more.

Nordic Industries is the largest fencing installer, manufacturer and wholesaler, in the province. Efficient production, diversity of products, large supply of stock and a reputation for experience and quality is what makes Nordic Industries the answer to all your fencing needs.

Since 2001, we’ve built our business by providing reliable service, and putting our clients and safety first.

1323 FLETCHER ROAD SASKATOON, SK S7M 5H5

nordicfence.com Saskatoon, SK 306-653-3663

Saanichton, BC 250-652-0022

Prince Albert, SK 306-763-5185

You’re building the future.

We’re here to help.

P 306-668-1033 F 306-668-2282

trpetroleum.com

E trpetro@shaw.ca

trust EarnEd through PErformancE

™

You need the right equipment, at the right place, branch network, we are ready to help you round the clock service and support means the equipment will work just as hard as you do.

Wolseley Industrial Canada (formerly Goodman Industrial) is proud to supply Pipe, Valve and Fitting products and services to the Potash Mining Construction industry.

4010 Thatcher Avenue Saskatoon, SK S7R 1A2 306-374-3666

1390 Longman Crescent Regina SK S4N 6J4 306-721-6288

UnitedRentals.com 800.UR.RENTS © 2014 United Rentals, Inc.

wolseleyindustrial.ca two Locations saskatoon | 17 Wurtz Ave, Saskatoon, Saskatchewan 306-931-2900 | Mike Perrin - Sales Manager Esterhazy | 931 Gonczy Ave, Esterhazy, Saskatchewan 306-745-6453 | Michelle Shire - PVF Sales Manager

SOUTH EAST CONSTRUCTION that encompass a wide range of training and safety initiatives in the workforce. Along with a traditional orientation with the company, SEC has new employees go through its Safe Start program for training.

“The main question we ask is ‘what would happen if you didn’t come home tonight?’ As we force them to write this down, it’s amazing what happens. It hits home for people,” says Silvernagle. “After two weeks on the job we bring them back to finish the safety program. It not only helps refresh them and hold them accountable, but it shows we care about their well being.”

SEC focuses on daily assessments. This includes daily job requirements as well as everyday job hazards. It’s reviewed daily with the employee and foremen to ensure employees understand the risks each day and for each job.

In addition, South East Construction has a corporate safety manger that ensures the company goes above and beyond the call of duty in safety.

“We take safety very seriously and we like to reward employees who’ve been exceptional in that department,” says Silvernagle. “We elect an employee at each site who has gone above and beyond the safety bar and reward them a gift. We like to make it personal to show we care.

CANADA

South East Construction provides snow clearing, waste management, materials handling, and disposal

Underground Mine

Recent projects and plans for the future South East Construction is engaged with Potash Corp and Mosaic in a collection of new and

Construction

w w w. s e c o n . c a

81

SOUTH EAST CONSTRUCTION

www.di-techinternational.com P: 204 222-7400 F: 204 222-9933 E: info@di-techinternational.com

Established in 1984, Di-Tech is a company that understands the customer, is paramount to our success.

Main Office 1864 Springfield Road Winnipeg, Manitoba Canada P: 204 222-7400

SERVICES: • • • • • •

Wire Sawing Core Drilling Flat Sawing Wall Sawing Specialty Services Robotic Breaking

Black Rock International United States P: 1-855-284-1579

CANADA

ongoing projects around Canada. The company is involved in numerous Structural Steel , Mechanical and electrical projects on surface and underground.

“We are local to 5 mines in our area. We wouldn’t be were we are today if it wasn’t for Mosaic and PCS. They have helped us grow and supported us all the way.

Since 2011, SEC has been providing site services for the exciting new Jansen Potash mine for BHP Billiton. These services include snow removal, Dust control, Janitorial, misc carpentry, offloading , electrical maintenance, and land management. There workforce has grown to include construction of roads, ponds, potable water, septic and Hydrovac services, road building as well as concrete foundations.

“BHP Billiton’s commitment to safety and operational efficiencies is serious and it forced us to be better at what we do,” says Silvernagle.

“BHP is an outstanding client to work for and we are extremely proud to there” One of the larger, and more challenging, projects South East Construction has undertaken was rebuilding the Tazin Lake Dam for SaskPower.

“It was extremely challenging but it really represented who we are. It was a job we had no experience in but our team stuck together and got it done. The project turned out great and through all the challenges it really showed our integrity as a company.”

Company Information INDUSTRY

Construction HEADQUARTERS

Esterhazy Saskatchewan, Canada FOUNDED

1986 EMPLOYEES

51-200

w w w. s e c o n . c a

83