Mining Global magazine - November 2016

November 2016 • www.miningglobal.com

MINING FOR DEVELOPMENT How Lundin Mining, Candelaria has contributed to the Atacama region

10 BUSINESS RISKS FACING THE MINING

INDUSTRY IN 2017

FACING FACTS

A look at the financial climate in the mining industry

A PREMIER PRODUCTION: THE BISIE TIN PROJECT

We interview Boris Kamistra, CEO of Alphamin Resources

8 – 10 NOVEMBER 2016

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EDITORS COMMENT

A premier production H E L L O A N D W E L C O M E T O the

November issue of Mining Global!

In this issue, we look at the Bisie Tin Project in the DRC and how Alphamin Resources is on the verge of creating the world’s premier Tin project. Boris Kamstra, CEO of Alphamin talks successes, challenges and the integral role the North Kivu community have been for the development of the project.

In our second feature, we speak with Charles Gibson, Director of Mining at Edison Investment, as he takes Mining Global through the current state of the financial climate in the mining industry and how mining has taken the world by surprise and become the best performing sector on the UK market.

2016 has been a difficult year for the mining and metals industry, but what does next year bring? We look at ten business risks facing the mining and metals industry in 2017, and what companies should consider heading into the future.

Mining Global magazine – let us know your feedback @MiningGlobal

Enjoy the issue!

Dale Benton Editor dale.benton@bizclikmedia.com 3

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CONTENTS

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F E AT U R E S

PROFILE

Facing facts: Q&A looking at the financial climate of the mining industry

TECHNOLOGY

LIST

TEN BUSINESS RISKS FACING THE MINING AND METALS INDUSTRY IN 2016-17

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Alphamin Resources: BISIE TIN PROJECT

November 2016

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

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54 Ausdrill Australia

Candelaria

American Latina

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HSE Mining Australia

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FACING FACTS:

looking at the financial climate of the mining industry Charles Gibson, Director of Mining at Edison Investment Research, provides Mining Global with a look at the current financial climate of the mining industry of today, and of tomorrow Writ ten by: DALE BE NTON

Q&A

Q&A Can you provide an overview of the mining financial climate in 2016?

Who would have thought it? Less than a year after the Federal Reserve started raising interest rates and which is the best performing sector on the UK market? Mining! The Industrial Metals & Mining index, if one wants to be strictly accurate – which has risen 89% so far this year. But that is anyway followed by the pure Mining Index, which is up a still impressive 53%, beating out Tech Hardware (+49%), software (+23%) and oil (+22%) and eons ahead of sectors such as mobile telecoms, banks, food producers and general retailers (all of which have fallen). In fact, with zinc up 40% in US dollar terms, year to date, silver up 37% and iron ore up 31%, most metals have outperformed these other sectors.

Even the laggards, such as lead (+5%) and copper (-2%) have outperformed the FTSE 100 (-8%) index in US dollar terms. Not surprisingly therefore, four of the FTSE 100’s index’s top five performers so far this year are miners – Anglo American (+172% in sterling terms), Fresnillo (+128%), Glencore (+102%) and Randgold Resources (+76%) – and, with BHP Billiton (+31%) 10

November 2016

coming in at number nine, five of the top ten. In fact, the only companies missing in this tier of UK industry are Rio Tinto and Johnson Matthey.

Why has mining been the best performing sector on the UK market?

Much of the performance can be attributed to the macro-environment.

Nine months ago, the Federal Reserve had just raised interest rates and was confidently predicting four more rises during 2016. And while the market continues to expect one rate rise this year, the bare facts of the matter are that, to date, precisely none of those interest rate rises have yet come to fruition. Partly, this is to do with economics.

What does the industry look like across the world, in the U.S and China for example?

The US is growing, but it’s hardly the sort of robust growth that the world was conditioned to expect in the years before 2008/09. By contrast, conditions in the rest of the world look distinctly parlous, with Europe reaping the pain of its erstwhile strong currency strategy and China trying to

Q &A L OO K I N G AT T H E F I N AN CIA L CL IM AT E O F T HE M INING IND US TRY

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Q&A avoid a hard landing. Japan remains in its own, unique slough of despond, as if standing as a permanent rebuke about the limits of government and central bank power when trying to stimulate growth. If an easy metaphor for the world economy is the US as the engine of growth trying to drag the rest of the world out of recession/ depression, the current situation is a salutary reminder that there have been several instances in history when the trailer has dragged the truck back into recession, rather than the other way around – all of which has led to a situation in which governments are trying ever more novel ‘solutions’ to the growth problem and populations are

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November 2016

finding ever more diverse (desperate?) ways of showing their disapprobation.

How much of a role has governments and politics played in this?

As a result, migration is endemic, the UK has voted to leave Europe and America is in the midst of its most bitter election battle for decades. With the central bank arsenal now roundly depleted and with a debt-deflation purge of the system regarded as politically unpalatable, not surprisingly, politicians are adopting ever more outlandish strategies to try to spur growth. But with government finances now the worst since most countries

Q &A L OO K I N G AT T H E F I N ANCIA L CL IM AT E O F T HE M INING IND U S TRY

were last involved in a major war, almost the only option open to them (whatever route they chose) is to create money – which is where the opportunity lies for the mining companies, as producers of the ultimate real asset.

Can you provide some examples of mining companies and their contribution to the Industrial Metals and Mining index?

While past performance of the majors has been impressive however, it leaves the sector looking less than cheap, at the moment. The P/E on the FTSE Mining index is negative and its dividend yield is the fourth lowest in the market (out of 39). That

makes the second tier of companies look much more interesting. Four that Edison would highlight are Pan African, KEFI, Euromax and Cradle.

Pan African has two gold mines in South Africa – Barberton, which is a hundred years young and Evander, which is the most youthful of the Witwatersrand fields. Pan African’s interim results to December 2015 were ahead of our expectations, with strong performances at its surface operations complementing a solid recovery in the underground head grade at Evander (effectively portending its exit from a low grade period of mining).

Subsequently, management reported that production for the full year to

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Q&A June 2016 was 213,267oz gold and platinum (cf Edison’s expectation of 213,934oz and management’s prior guidance of 209,000oz) and that normalised, headline EPS (excluding financial instruments) will be 208-228% higher than in FY15 at 2.00-2.13p.

Our valuation of PAF (excluding its Uitkomst colliery) is 23.6p at Edison’s long-term gold prices. In the meantime, it continues to have the sector’s third highest forecast dividend yield, globally, of over 5% (NB FY16 results are scheduled for 21 September).

KEFI and Euromax by contrast are in the process of developing

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November 2016

their mines. KEFI is in the closing stages of financing its Tulu Kapi gold mine in Ethiopia and intends to present a syndicate-approved plan to shareholders in H216. Edison’s value of the dividends that investors can expect from the successful development of the underground and open pit mines is 2.45p/sh (in current money terms). However, it rises to 3.94p/sh in FY21 and, even further, to 5.85p/ sh in the event that management can leverage cash flows into other valueenhancing exploration opportunities on the Arabian-Nubian shield (eg in Saudi Arabia where it also has highly

Q &A L OO K I N G AT T H E F I N AN CIA L CL IM AT E O F T HE M INING IND US TRY

prospective exploration ground).

Similarly, Euromax is in the final throes of financing and permitting its mine in Macedonia. Ilovica’s resource comprises 2.9Moz gold plus 1.2bn lbs Cu (5.0Moz gold equivalent) and a recently completed DFS envisages a conventional 10Mtpa drill & blast, truck & shovel operation, followed by a consecutive flotation and cyanide leach process flow route. Since then, Euromax has announced a number of developments to further de-risk the project, including 1) convertible financing by the EBRD; 2) submission of its Environmental Impact Assessment (EIA) to the Macedonian Environment Ministry; 3) German government confirmation of UFK eligibility for the debt financiers of Ilovica; and 4) moving its listing to the main board of the TSX. Considered just as a resource, Edison estimates a value of Ilovica of US$52.0-78.8m (vs EOX’s market cap of c US$38m). On the basis of the DFS however, Edison’s valuation of EOX is C$1.05 (fully diluted).

Note that the majority of Ilovica’s costs are denominated in euros, making it a beneficiary of euro weakness.

In Panda Hill meanwhile, Cradle has a 50% interest in a unique asset

in Tanzania that is poised to become only the world’s fourth producer of niobium – a metal so unique that its price did not fall during the 2008/09 global financial crisis. Principally used to harden steels (but with a plethora of high technology applications as well), niobium is deemed ‘strategic’ by the US and ‘critical’ by the EU. Moreover, it is almost the only metal in the world in which China’s consumption is below trend for its GDP per head. Not only Panda Hill’s geology, but also the majority of its metallurgy is entirely conventional. It has excellent nearby infrastructure and three potential sources of plant water. Cradle has now advanced the project to definitive feasibility (DFS) stage. In the meantime, its partner, Tremont, has been conducting offtake and financing talks, with a view to making a final investment decision in Q416. Assuming a long-term ferroniobium price of US$35.15/kg, Edison calculates a project value for Panda Hill of US$365m, or US$1.11 per share for a 50% interest. This reduces to A$0.70/ sh assuming full dilution at a A$0.26 share price, but could increase to A$1.42/sh in the event of debt funding of its joint venture obligations.

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Alphamin Resources:

Bisie Tin Project How one company stands on the cusp of becoming the world’s leading premier tin producer

Written by: Dale Benton

TECHNOLOGY

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TECHNOLOGY

The Bisie Tin Project’s Mpama North prospect in North Kivu in the eastern region of the DRC is one of the most significant tin deposits in the world, and Alphamin Resources plans to make North Kivu the world’s premier tin producing area.

ALPHAMIN RESOURCES IS a pioneering tin exploration and mining business with the vision to be respected in the international tin mining sector, unleashing the full profit and potential of its worldclass tin asset in North Kivu, DRC. Committed to contributing to the stability and economic activity in North Kivu, Alphamin aims to bring a significant benefit to the community and other stakeholders alike.

Through the company’s flagship Bisie operation, Alphamin will supply conflict-free tin from the eastern Democratic Republic of Congo.

“Alphamin represents an opportunity to make a material difference to North Kivu and most of East Africa, it’s going to be catalytic for a whole number of roll on industries,” says Boris Kamstra, 18

November 2016

CEO of Alphamin Resources.

The Alphamin Bisie Tin Project is an operation which will develop one of the highest grade known tin deposits in the world while committing to a promise of promoting economic growth and stability in North Kivu.

A resource like no other Kamstra believes that the 4.5 percent tin orebody, which translates to around 16 percent copper equivalent or 16/17 grams per tonne gold equivalent, is an ore body strength that hasn’t been seen over the last 200 years.

“We’ve got a jewel in terms of an ore body. Look around the world, there are no producers that I know of that can provide those figures.” says Kamstra.

Alphamin is just the first of many tin producing assets in the North Kivu province, but the journey

BISIE TIN PROJECT

Boris Kamstra, CEO of Alphamin Resources.

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TECHNOLOGY to getting the ball rolling hasn’t been without its complications.

With any new mining operation, the first steps will always involve getting people, communities and governments to buy into the vision of the mine plan.

From the start, Alphamin has been lucky to have a defined premier resource in tin and significant investor backing. Kamstra admits that this is not enough to “get you over the line.”

“One needs a good team and the support of the people around you where you are building and plan to operate, particularly the politicians,” says Kamstra.

Through continuous discussions with the local government, Alphamin was allowed to show the outlook and plan for the project. The company, through these discussions, went out and generated significant results ready to move onto the next phase of production.

“One of the riskiest things for a politician to do is to back a policy or an initiative as there is risk involved.

With us however, going through the process with the government has helped us gain incredible support from them,” he says.

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November 2016

Logu Bridge - July 2016

The road to success A significant challenge for Alphamin has been the development of an access road to the Bisie Tin Project. There was already a road between Goma and Walikale, but one of the first developments for Alphamin was constructing a 30km access road that initially will be to expedite mobilisation of construction and eventually to move resources to and from the project.

Access to the site originally was only possible via a one-day walk,

BISIE TIN PROJECT

“Our approach is that we are guests of the people around us.

We happened to be born in two environments that allowed us to be more educated and affluent in the people whose backyard we are working, that doesn’t make us any better” – Boris Kamstra, CEO

or a helicopter ride in. Kamstra admits that this restricted the size of equipment needed for construction and would not present an efficient cost effective way of working.

“People believed the road development was impossible, but together with the North Kivu government, we have taken pretty poor logistical circumstances and implemented mitigating strategies to make what was once unsurmountable achievable,” says Kamstra.

A community can play the most

important role in the success of mining operations. For North Kivu, the Bisie Tin Project represents an opportunity to create not only a premier tin producing area, but also create industry.

“Our approach is that we are guests of the people around us.

We happened to be born in two environments that allowed us to be more educated and affluent in the people whose backyard we are working, but that doesn’t make us any better,” says Kamstra.

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TECHNOLOGY

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November 2016

BISIE TIN PROJECT

Creating an industry As a mining company, the ability to influence a surrounding environment is enormous. This influence can be dictated by a wide range of inputs that need to be supplied or, in what Kamstra describes as “reverse engineering”, by creating industries.

“As an example, if your workforce requires a uniform, then as a company you can source this locally, bring in the material and create sewing groups. That right there is work for the community brought upon by you as a company,” “The more your business is integrated into the area you’re operating in, the more robust your business model,” says Kamstra.

As a mineral production company Alphamin, like many within the eastern DRC, is regulated through conflict mineral legislation. Conflict mineral legislation is in place as due diligence guidance for responsible mineral supply chains. For Kamstra, Conflict Mineral legislation is instrumental in creating opportunity that he believes Alphamin can fulfil.

“Tin is a strange commodity in many ways in that there are not many mines that can produce it,” he says.

“There’s quite a big artisanal production with very few smelters that can upgrade it and yet tin in minute quantities makes up things on your desk, cell phones, computers, cars etc. many of those are made by very large corporates, such as Apple or Microsoft for example.”

Kamstra believes that as a result of this there is a constriction in the supply chain, constriction that can be squeezed if there are problems in the supply of the material. For the larger corporations such as Apple, Microsoft and Samsung complying with conflict mineral legislation can prove difficult and the Conflict Free sourcing initiative is in place to assist those companies in finding smelters and refiners validated as “conflict free”.

Constriction and conflict free Alphamin will be presented with an opportunity to provide the Conflict Free Sourcing Initiative with a mine plan which will show a full breakdown of how much tin Alphamin will extract as well as a metals balance throughout the plant. This allows Alphamin to verify all of the tin that is produced from the plant.

“This makes it very simple for us as 23

TECHNOLOGY a smelter to have a very solid stream of conflict free material within their system with a great degree of certainty and that can be passed on to the larger companies,” says Kamstra.

The conflict legislation does not stop there. As is common place in the DRC, trucks hauling resources can and have been seized and for Alphamin, the legislation and close communication with the government allows the company to remain in control, even if the worst case scenario were to happen.

“We can alert the tin community that we’ve lost X tons of material and we will have the full specifications of it. The people who have it will now be restricted as to who they can sell it to, as the main stream smelters will not be partial to buying it,” says Kamstra.

What this effectively does is sterilise the economic value of the material and Alphamin’s mine in anyone else’s hands.

“There’s a kind of in built insurance policy that should any of our material

“For the first time everyone in Walikale can almost taste a future that’s going to be a better future for their children and families than it ever was for them.

It’s a wonderful backdrop to be working against” – Boris Kamstra, CEO

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November 2016

BISIE TIN PROJECT

be liberated from us, it effectively economically sterilises it from the world at large,” says Kamstra.

Only the beginning Looking ahead to the future, the Bisie Tin Project will begin construction in early 2017 with a minimum construction phase of 11 months. Kamstra and Alphamin has outlined the production reaching full capacity in 2019. The project has a 12-year mining licence, but Kamstra is firmly of the belief that there is

Soil sampling program

potential to go on beyond that.

“The only reason we have 12 years is simply because we decided that’s enough and we stopped drilling,” says Kamstra.

“There’s plenty more tin deeper underground, but at the time the drill rigs we had on site were fairly light. As soon as we start producing capital we will get larger equipment to begin drilling further,” Looking back, Kamstra highlights a level of momentum, enthusiasm and excitement surrounding the project. The support of investors, the local community and government has been and will continue to be instrumental in the development of the Bisie Tin Project.

“There is an excitement and enthusiasm around the project that’s infectious. For the first time everyone in East Africa can almost taste a future that’s going to be a better future for their children and families than it ever was for them. It’s a wonderful backdrop to be working against.

“It is quite extraordinary. There haven’t been many projects that have achieved this kind of general momentum, enthusiasm and excitement.” He concludes.

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Ten business risks facing the mining and metals industry in 2016-17 Download Ernest & Young’s full report for a deeper insight into business risks facing mining and metals

TOP 10

They say that money makes the world go around, none more so for businesses operating in such a volatile market like the mining and metals industry. 2016 has been a challenging year for mining companies, be it raising capital or mitigating debt.

But, 2017 is a new year, and here we look at ten business risks facing the mining and metals industry in 201617 according to Ernst & Young, a global business service solutions provider based in the UK.

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TOP 10

Cash optimisation Market volatility and the unpredictable and never ending shifting of commodity prices creates uncertainty.

Uncertainty, quite naturally, represents risk.

Mining companies are facing an increasing challenge to think long term, there is such a limited visibility of pricing and demand and how it will change that companies just cannot afford to risk their balance sheets.

EY states that cash is king again and mining companies can manage the liquidity of their balance sheets through sustainable cost reductions, but importantly, ones that do not dissolve value.

These same reductions should instead look to increase a focus on working capital and improve the capital effectiveness.

28 November 2016

TEN BUSINESS RISKS

Capital access For many, if not all mining companies, raising capital is one of the biggest issues. According to EY, the total capital raised in 2015 was 10 percent lower YOY. Add to this that loan finance to the sector was also declining and those that did secure loans were using them to refinance existing infrastructure as opposed to delving into new projects.

Companies are facing limited access to capital as banks are only offering financing to mining companies what can guarantee the security to back the debt. In essence, a bank isn’t willing to take a risk on a mining company that can talk the talk, but not walk it.

Heading into the new year, mining companies will be looking at alternative sources of finance and in some cases, realigning portfolios to mitigate this challenge.

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TOP 10

Productivity Working hard or hardly working? Productivity is to this day one of the top three risks that mining companies and miners are struggling to improve on. EY identifies asset productivity as a particular focus, with a “volume at any cost” during the mining boom generating a focus on “production at any cost.”

Productivity in 2016 often manifested itself under the guise of making mines larger. The bigger the mine the greater the complexity, which required silos and different skill set requirements. Whittle it down and essentially you’re left with a disconnect across your operations.

Many companies that undergo a complete transformation will break down silos as the first and in some cases most important step. EY advises that the key to long term sustainable productivity improvement is by looking at assets through the lense of a business system, the relentless pursuit of loss and by supporting the players already existing within the organisation who are critical in productivity transformation.

30 November 2016

TEN BUSINESS RISKS

Social license to operate The best and most successful mining companies are active participants in community engagement. There is true value in operating in tandem with communities and there is a clear mutual value creation there. Unfortunately in some regions, mining is associated with environmental damage, conflict and even death.

For a mining company, all across the sector, to maintain a strong social license to operate, sustainability needs to fit into long term planning. Measure success or KPI’s with productivity outcomes as well as remuneration structures.

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TOP 10

Transparency How much does a mining company really contribute to local economies and societies? By providing local communities, governments, and even detractors of the industry a clear access to information, a company can essentially prove to the world that it is 100 percent true to its word.

Think of the impact that will have on an investor. If a mining company experiences payment disputes, like some currently are, the information to end those disputes or instil faith in that company is readily available.

But if it isn’t, is an investor really going to simply take the company’s word for it? That’s a lot of trust that could backfire dramatically.

And what does transparency achieve? Greater confidence from investors and trust from stakeholders, crucial to longevity of mining organisations.

32 November 2016

TEN BUSINESS RISKS

Switch to growth Commodity prices, whether strong or weak, can often dictate a mining company’s outlook on the future. EY states as much, mining companies very often think pro-cyclical short term. But it is important for companies to remember to think of the future and future growth. It’s not enough to survive, growth is what will make a company stand tall above competitors.

For that to happen, companies must understand the options available to them. Understand the market, invest (not literally) in time spent watching and analysing the market so that if an opportunity arises, a mining company is in prime position to capitalise on it and ultimately boost long-term shareholder value.

EY recognises that this may very well include downsizing portfolios in order to realise capital, but it is important to remember that this will effectively allow a company to use that capital to support future growth opportunities.

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TOP 10

Access to energy Energy consumption, according to EY, can account for 15 – 40 percent of the total operating budget of a mine.

When choosing an energy source, cost is essential.

Mining companies then must do more to identify, prioritise and implement the best option to ensure long term tangible and intangible benefits.

34 November 2016

TEN BUSINESS RISKS

Joint Ventures Joint Venture (JV) agreements, if managed well, can deliver undeniable value to stakeholders.

They can improve the value of portfolios and, in some cases, joining forces can provide access to reserves and capabilities that only a JV can provide.

As with anything, there is risk. In this instance, the risk lays quite clearly at the fact that it could go wrong and a company could face huge disruption which will result in loss of time and money.

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TOP 10

Cyber security In the modern world, technology in any industry is increasing and for the mining industry technological innovation is moving towards more cloud based data storage and analytical solutions.

An increased cyber space creates an increased risk of cyber-attack.

IT and operational technology in the mining industry are becoming one and the same and so security must be strengthened.

Companies will need to understand the risk exposure across both IT and OT and ensure that there is significant time and money invested in understanding how important it is to prevent cyberattacks on financial, reputational and intellectual property.

36 November 2016

TEN BUSINESS RISKS

Innovation Sticking with technology, innovation presents a different kind of risk.

Innovation is without a doubt a key enabler of productivity improvement as well as providing a competitive edge. When the market improves, mining companies should look at and collaborate on innovation with other companies within the sector, other sectors, service companies and academic institutions.

Ey believes that companies should align innovation programs to strategy, have a clear management program, have the right structure, processes and systems in place, and most importantly, not to just focus on technology.

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Mining: a factor pushing forward for Atacama’s development

Written by Mateo Rafael Tablado Produced by Taybele Piven Interviewee Sergio Armstrong, CEO for Minera Candelaria

MINERA CANDELARIA

Lundin Mining leads a very productive copper operation through Candelaria, contributing to the Atacama region and its population

M

inera Candelaria (Candelaria Mining) is the Lundin Mining Corporation’s most important operation. This mining complex has established itself as a powerful economic and social driving force in the Atacama Region. It was first to erect and operate a desalination plant in Atacama and signed an agreement with the township of Tierra Amarilla, vowing that their mining and processing operations there would help the community develop economically and socially.

In November 2014, Lundin Mining acquired 80 percent of Minera Candelaria. Following this transaction, the Candelaria district (consisting of

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November 2016

the open pit and North Candelaria, Santos and Alcaparrosa underground mines) became the corporation’s most important asset in terms of production and number of workers.

Lundin Mining is growing via acquisitions in the same way that Candelaria’s mining district has.

Lundin boasts corporate operational technical support in areas such as risk prevention, environment, resources, planning, processing, and community relations.

“Candelaria is a leader in the region’s mining sector and in the development of social contribution projects,” said Mr. Sergio Armstrong, Candelaria’s CEO. Mr. Armstrong graduated as a Metallurgical Engineer from the University of Concepcion,

MINING

obtained a postgraduate degree in Human Resource Management at the University of Santiago, and is a graduate of the ESE (Higher Business Studies) Business School’s Advanced Management Program from the University of Los Andes.

He has been recognized by Chile’s Colegio de Profesionales Expertos en Seguridad Minera (College of Professional Mining Security Experts) for his contribution and commitment to preventive safety management.

Sergio Armstrong, CEO for Minera Candelaria

“Candelaria is a benchmarking labor resulting in no harm to individuals, operational excellence, respect for the environment and mutual growth along with its surrounding community”

Open pit and underground copper, gold and silver Candelaria’s mining operations are located in the township of Tierra

- Sergio Armstrong, CEO for Minera Candelaria

w w w. c a n d e l a r i a . t r a b a j a n d o . c l

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MINING

Amarilla, 18 miles south of Copiapo in Chile’s Atacama region. Its main product is copper concentrate, while gold and silver are among their marginal yields. In addition to the open pit operation, it has the North Candelaria, Santos and Alcaparrosa underground mines.

Approximately 230,000 tons are extracted daily from the Candelaria mining district, of which about 75,000 tons are minerals that are sent to the Candelaria and Pedro Aguirre Cerda concentrator plants for processing. In 2015, Candelaria reached a production of 181,040 tons of copper and 102,500 ounces of gold and 1.8 million ounces of silver.

About 70 miles away, in the city of Caldera, is the Punta Padrones Clean Mechanized Port which ships copper concentrate intended for international markets. The Seawater Desalination Plant is also among

the Punta Padrones Port facilities.

Safety and life as a value Candelaria has undergone an interesting transformation in terms of workplace safety. The first stage, lasting five years, saw the reactive culture transform into a proactive one concerned with security in three main areas: • Visible leadership: interaction with team members and identifying opportunities for improvement.

• Training: prepare the workforce through internal courses and certifications.

• Control: set goals and key indicators to ensure proper performance.

During the second stage, which also lasted five years, safety became a value. Currently, its main focus is enshrining the concepts of personal responsibility, self-care and selfdirected work teams, where each

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team member is a security leader.

The ultimate goal being attaining a Zero Injury production process.

Cutting edge technology: operational and administrative support Minera Candelaria’s open pit enjoys MESH (WiFi) communications technology, useful in obtaining data generated by sensor shovels, loaders and haul trucks (CAEX).

The MEM system monitors CAT truck fleet operations. Slope stability is monitored via four next-generation radars.

Meanwhile, the concentrator plant uses an online X-ray copper grade system; while the primary crushing and flotation circuits rely on a top-grade control system that optimizes the process.

Another resource for efficient monitoring is the IP Visualization Suite platform which provides concentrator plant as well as port real-time process variables at all times, even remotely.

Presently, the Head Office system is being used to better monitor transport equipment fuel consumption.

Administratively, Candelaria’s SAP system centralizes and controls finances, human resources, maintenance, costs, projects, supply and storage information, as well as inventory management, materials and services procurement.

Suppliers: partners in the path to development Beyond service and product deployment, Candelaria’s purveyors must align to the company’ principles and practices in areas such as work safety, environmental care and compliance with government regulations, among others.

Candelaria has established successful strategic alliances with vendors to ensure that the parts and consumables supply chain run smoothly. Its underground mining operations boast exceptional maintenance of its fleet and outstanding personnel services.

The company is currently implementing a Supplier Development Program (SDP) aimed at microentrepreneurs in Tierra Amarilla, Copiapó and Caldera, in conjunction

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Minera Candelaria

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with other agencies such as the Production Development Corporation (CORFO) and the Corporation for the Development of Atacama (CORPROA).

Accurate position profiles and community integration The recruitment processes are guided by a complete description of every position, in which hard and soft skills are included. Candidates can consult job openings and apply via Candelaria’s website, and must then undergo interviews.

Candelaria mining has established itself as an important employment

generator in the area, not only because of the hired local workforce but the use of goods and services from local suppliers. Today, they provide more than 4,000 direct jobs.

Despite the dip in the copper market, jobs have been maintained thanks to reduced costs, increased productivity and innovation commitments.

“We favor hiring our own operators from the neighboring Tierra Amarilla township,” said Mr. Armstrong.

Environment and resources: optimal water management Caring for the environment is a

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cornerstone for Minera Candelaria, Sustainability in the whose operations are certified environment Minera Candelaria’s Social under ISO 14001 standards.

Investment Program emphasizes the All its facilities use monitoring, development of sustainable projects in control and analysis programs. areas of health, education, productive The company’s water management activities, has resulted in infrastructure, the consumption environment and of 85 percent culture, which reclaimed water. have contributed Thanks to the to improve the desalination quality of life plant, running of neighboring since January communities.

2013, water from “We are building the Copiapo local, transparent River is no longer and inclusive necessary for relationships with production our communities,” processes.

– Sergio Armstrong, CEO for Minera continued Mr. The 2015 water Candelaria Armstrong. balances The excellent indicate that 85 relations percent of the Candelaria has established with water required for operations the community have not gone is reused or recycled water, 12 unnoticed. Institutions and the percent is desalinated water and communities of Tierra Amarilla 3 percent is treated water. and Copiapo are thankful for Candelaria’s support following the

“Our suppliers are essential to our operation, as they add value in different areas of our processes”

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flood happening on 25 March, 2015.

Investments and upcoming goals Lundin Mining has important plans for Candelaria. The operation is expected to receive a US$ 400 million investment for the Candelaria 2030 business continuity project, which involves the construction of the Los Diques tailings basin, as well as strengthening the tailings driving system and installation of a borrow pit.

Underground mining operations will strive to consolidate new resources.

Candelaria’s permanent goal, however, is to maintain high

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performance operations with low operating costs, generating positive cash flow margins within today’s decrease in copper prices.

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TRANSFORMING A MINING SUPPLY CHAIN Ausdrill has taken advantage of the downturn in mining, taking the opportunity to grow a culture of innovation and lean thinking: this has partly been achieved through an IT-driven, end-to-end transformation in its supply chain Written by John O’Hanlon Produced by Glen White

AUSDRILL

F

ounded in 1987 by Ron Sayers with just a single drill rig at Kalgoorlie, Ausdrill has grown to become one of Australia’s top 200 companies, listed on the ASX and counting the major mining companies including AngloGold, BHP Billiton, Barrick, Gold Fields and Newmont in its client list. Its rapid growth has been achieved mainly by acquisition, and today the group embraces 19 businesses located across Australia as well as major interests in Africa including a half share, with Barminco, in African Underground Mining Services (AUMS).

Ausdrill has been affected in common with the entire mining services sector by the retrenchment in exploration and production following the recent slump in commodity prices.

Though Africa has bounced back and Australian gold prices have firmed this year sparking renewed activity, in all its markets Ausdrill is facing greater competition. As Group Contracts and Procurement Manager Ashley Carey puts it, smaller players are desperate for any work to keep them going and

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are creating a price environment that, though unsustainable, skews the market in the short term.

Carey and his colleague, financial controller Renée Harrold, have taken a lead role in easing the company through some very difficult times and refining its procurement processes and culture to a point where it can take full advantage of the upturn that can’t fail to materialise in this notoriously cyclical business. As Carey says: “The downturn has been a blessing in disguise: it has brought the supply chain to the top of the agenda. Without the downturn we may not have had the traction to drive the changes we’ve made over the last two years. Bad times breed good businesses and that is very true in our case.”

A case for refinement With plenty of work around, and the highest standards of customer service, there had not been the incentive to introduce what might be called joined-up thinking. There was very little communication between the businesses in the group, and

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Ron Sayers

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“Without the downturn we may not have had the traction to drive the changes we’ve made over the last two years” – Ashley Carey, Group Procurement Manager

Ashley Carey Group Procurement Manager Since 2010, Ashley Carey has led procurement at the Ausdrill Group and overseas all procurement related activities, direct materials purchasing as well as sourced products and services. Ashley started out as a hydraulic engineer, working primarily in the agricultural and mining industries where he was picked up by Ausdrill to focus on cost reductions in all technical categories. In a short time Ashley had worked his way through the organisation and now sits as the head of procurement for the group which has operations in 8 countries around the world. Ashley has overseen a dramatic transformation within the Ausdrill procurement function driven primarily by the most dramatic mining industry downturn in a generation. The transformation includes the implementation of a best of breed procure to pay system, moving toward a fully centralised procurement function, large scale operational cost reductions and the completion of a comprehensive supplier rationalisation project.

Ausdrill is now well positioned as an industry leader on many fronts in the procurement space and with an upturn imminent can take full advantage of its new structure.

when it came to procurement, every one of some 58 individuals scattered across Australia was entirely focused on his or her own cohort of users and suppliers. The supply chain function was entirely process driven: suppliers may have been taking advantage of that segregation and charging higher prices, and service levels were not as good as they might have been. “Our first task was to understand what we were spending money on, and look at the total global spend of the group,” he says.

Not surprisingly this exercise delivered sizeable savings. It also highlighted that suppliers were not always realising the spend level they anticipated. Capturing procurement data across the group began to give insight into the supplier community.

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“Coupa is probably the most cost effective software available on the market … it is a cloud based solution that works” – Renée Harrold, Financial Cotroller But the first thing to tackle was the group-wide structure. “We started on a three and a half year project to centralise procurement,” Carey says.

“We built a communication channel through a basic SharePoint based requisitioning system, and rolled that out in a small group of companies, reducing their procurement workforce

Renée Harrold Financial Controller Renée is a CPA qualified Accountant currently based in Perth, Western Australia. Having completed a degree in Accounting and Finance at Edith Cowan University she works extensively in Western Australia and throughout West Africa in the Mining Services sector. Renée takes a hands on approach when developing operational focussed financial solutions in the mining & energy services sector.

from eight to two. It was the start of something big for Ausdrill.”

This was a key moment because it enabled his team to convince the board, generally conservative in attitude, of the enormous savings potential of IT – he identifies this as the point where innovation tailored to the business, as opposed to taking the cue from its large mining clients, started to be accepted as a strategy that could be applied across the group.

Coupling with Coupa After 42 months, Ausdrill had a centralised procurement function, administered by thirteen people, four in Kalgoorlie, one in Queensland and eight in Perth. The workload is w w w. a u s d r i l l . c o m . a u

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$744 Million no lighter than when 58 people were needed to handle it, despite the market downturn he points out. The quest for technology-based solution was clearly essential, though arriving at the right one took some effort. The industry has a number of incumbent solutions including Ariba, Quadrem and Basware – Ashley Carey and the team embarked on a two year project to identify the best partner for Ausdrill, visiting government, private, finance sector and of course mining users to analyse exactly how these solutions integrated with their core systems and how easy they were to use. In the end, it was a bold decision to pioneer a system that had not previously been adopted by any Australian company.

There was a risk to choosing a cloudbased solution when Ausdrill’s existing Pronto ERP system had not been asked to integrate with any external

Ausdrill annual revenue (12 months to 30 June 2016)

software, but in the end the US based Coupa ‘value-as-a-service’ platform ticked all the boxes including scalability, flexibility, ease of use and return on investment. “Coupa is probably the most cost effective software available on the market,” says Renée Harrold. “Since we adopted Coupa, more of the majors in Australia are looking at it. It is a cloud based solution that works.” She and Carey have been jointly project managing the phased implementation and have found it infinitely adaptable.

It delivers on the original requirements – for example it took only 18 months to roll out to some 1,300 users in 18 diverse businesses, and since it takes up little bandwidth it’s ideal for field use over tablets and handheld devices – but like a mining resource ‘open at depth’ it can be expanded by its users.

Phased implementation helped

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the businesses to digest the new programme gradually agrees Ashley Carey. “We introduced electronic requisitioning through from a request to a purchase order. The actual receipting of goods was still

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happening in our Pronto ERP and we simply matched that back in to Coupa so we didn’t have to train any of our stores people on how to receipt. On the supplier side, we tried it out in a couple of larger businesses, so about

AUSTRALIA

“We tell them that you can search like you do on Google and buy like you do on eBay” – Renée Harrold, Financial Controller

70 percent of the invoices for these two subsidiaries are now loaded direct by their suppliers. Part of the vendor optimisation programme we are embarking on now will look at how to integrate their systems with ours so

it takes out more manual handling.”

Training was relatively straightforward, continues Renée Harrold. “Ashley and I conducted one hour sessions in rooms around Australia. We showed the team the procure-to-pay picture

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and how Coupa sat in that picture. is not limited by geography by We then presented some examples helping other Coupa users around relating to the people we were training the globe. “It’s almost like a crowd – for example with workshop fitters sourcing platform,” says Harrold we would focus on the types of parts who represented Ausdrill at the San they work with. We set up a Coupa Francisco Coupa Inspire event. “Users blog and discussion forum on our can log on and download features that intranet where people could find a they like and find useful. They can get one page ‘how to’ guide, print it into the community and influence out and put it on the wall. its future - that is how it has That was enough to get developed, by being led them started using by the users rather the system. We tell than presented as a them that you can centrally prescribed search like you do package.” on Google and buy The investment Number of like you do on eBay.” decision has been employees at vindicated, adds Carey.

Ausdrill Innovation allowed “The Coupa overlay Coupa users are Coupa has been the bedrock of our developers, a fact quickly picked transformation, allowing us to refine up at Ausdrill, which won a Coupa and automate our processes. Our Innovation Award in May this year for target is 70 percent automation of the the way it has rolled out the system procurement processes, and that will and pushed out its boundaries. One only need four full time procurement of Ausdrill’s systems administrators officers, balanced by a few more James Bargerbos was declared people in the group dedicated to Coupa Community Champion for contract management and cost demonstrating that community optimisation. That is the next step in

3,800

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AUSDRILL making this a truly lean company.”

Attention has now turned to a vendor optimisation programme. Here the target is to knock a nought off the current 4,000 strong vendor base, with 80 percent of the spend focused in between 50 and 80 key partners.

“We are taking this journey hand in hand with these vendors because we want them to reap the benefits of cutting out manual processes and communicating effectively over systems that talk to one another.

Our vision is to be able to transact seamlessly with these partners, with minimal human intervention.”

The supplier community needed some convincing to get them on board. Carey and Harrold travelled the length and breadth of Australia

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with a roadshow at which every vendor had the opportunity to learn at a face to face session and have their questions answered. Some reluctance was to be expected.

Suppliers often have to pay fees to access client systems, and even have a percentage of each invoice passed to them. With that in mind, Coupa is free to Ausdrill’s vendors.

Ausdrill has become a more dynamic company at all levels.

It is more competitive. This is a business on a never-ending quest for improvement. By the end of this year all the Australian businesses should be equipped with the hardware they need to move out of paper-based requisitioning and getting used to completing a purchase in minutes

AUSTRALIA

instead of hours. In 2017 Carey wants to see Coupa rolled out to the African business, something that will present a new set of issues to integrate it with the Pulse ERP used there.

The system has already paid for itself, but Harrold and Carey are hungry to see it do much more. “As a global company, we need a global procurement programme.” Coupa is delivering value in ways not foreseen when the decision was made to invest in it. The data from the field is already making management information and schematics available across Australia, and further innovation in in sight. For example, in the near future Ausdrill’s field staff will be able to order purchases directly from exploded diagrams – meaning a part can be

ordered at a touch with no form filling.

Coupa is just a tool, but it is one that has given all its users the ability to proactively pare down cost, save time and make processes leaner and more dependable. They will have to get used to taking more control over the outcomes of their work, but that change is gathering traction, says Ashley Carey. “Other contractors in Australia are looking at what we are doing and taking notice. The more people we can get behind us the more we can push the tool to do more things. I have no issues making the mistakes and overcoming them because I am convinced that will help us stay ahead of our competitors.”

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Values-based approach keeps HSE Mining on top Written by Sarah Megginson Produced by David Kulowitch

HSE MINING

“We’re preparing ourselves to be absolutely match fit, for when new opportunities come along and conditions improve” – Allan Fidock, Managing Director

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Key People Allan Fidock

A leading provider of large-scale mining solutions to Australia’s major resources companies, HSE Mining has embarked on a continuous improvement program that has seen it emerge as a flexible, safe, lean and client-responsive company

Managing Director Allan has worked at HSE Mining since 2014 and as the Managing Director, leads and oversees the entire business including financial management, strategic planning and operational control. His key responsibilities are: • Driving the organisational strategy and values, with improving safety of fundamental importance

HSE

Mining is known for its expertise in providing prestripping and mining services in coal, iron ore, copper, zinc, nickel and gold mining. It also owns and operates significant fleets of ultra-class and ancillary equipment.

In the last two years, the company’s focus on improving every aspect of the way it does business has been its strongest asset.

As a mining services operator that provides everything from supply equipment to human capital to maintenance, HSE Mining is a small but agile player in the mining industry, which gifts it the ability to be flexible and responsive in line with clients’ requirements.

This unique point of difference has allowed the company to “emerge a stronger and fitter company after what has been a pretty

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• Building long term relationships with clients to establish HSE Mining as a trusted partner • Identifying and isolating key business issues and developing these to realise strategic improvements with demonstrable outcomes • Actively contribuing to the communities in which its employees live and work With over 35 years’ industry experience, including committee appointments as a board member of Australian Coal Industry Research Ltd and Queensland Resources Council, Allan provides the company with significant knowledge of operating mines of a substantial output.

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tough 18-24 months in the resources sector,” says Managing Director Allan Fidock.

Fidock, who has worked in the mining industry since 1980, began his career with HSE Mining in August 2014, first as General Manager of Mining Services and then as Managing Director.

“We pride ourselves on our nimbleness to accommodate our clients’ requirements. We aim to provide the right solution they require, whether it’s the supply of equipment, expertise or a total service provision solution, so we are flexible in our approach,” he explains.

“Recently, like all of our clients and competitors, market conditions have forced us to relentlessly drive improvements in our operations. There were a number of areas where we could see we could substantially improve.”

“The first area of focus was improving our safety performance. I am pleased we have made substantial improvements in lead and lag indicators, which I believe are now industry leading. This result is a credit to our employees who benefit from a workplace where incidents are uncommon and they can finish their work days without injury.

During the past two years we’ve spent considerable effort embedding safety as part of our day-to-day operations, because we understand that safety excellence equals operational excellence. Safe operations are essential to attract and keep the

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Key People

Paul Gold Finance Director Paul has worked at HSE Mining since 2014 and is responsible for the Finance function. He is a commercially focused CFO who has developed a disciplined approach to his work. A clear understanding of good business practices including timely reporting, strong project management disciplines, a focus on quality, risk and stakeholder management. His key responsibilities are: • commercial management • strategic planning • management and financial reporting • budgeting, planning & forecasting • risk management • company secretarial and legal • board and executive reporting • procurement • interest in business process improvement with a systems focus Paul has been with the Swire group for over six years and has over 25 years’ professional experience.

“We needed to have more assurance around our procurement, both in terms of ensuring we’re getting right quality for the best price … and also ensuring a consistency and timeliness of supply and managing our risk” – Allan Fidock, Managing Director

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best employees and for customers to consider you for contracts.”

“Outside of safety, our improvement program has focused on improving processes to maximise efficiencies, reduce costs and increase productivity.”

HSE Mining has focused on four key areas: inventory management,

strategic procurement, maintenance cost management and data capture.

At the outset, there was only one way to tackle inventory management, Fidock explains, and that was to strip back to basics.

“We analysed item by item what we had on hand, what we were ordering and if we were using the

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HSE MINING

Year founded

1999 parts we were ordering. The goal was to understand what stock we have in place across half a dozen sites, so we could implement an easily repeatable process to improve our inventory program,” he says.

“Now we’re systemising that process across our sites, so we’ll

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have a standard approach.”

In taking count of inventory across various sites, “there were a few surprises”, Fidock admits. For instance, he found that they had more stock than they expected, in terms of both quantity and value.

“It’s been a very valuable process,

Key People

MINING

Chris Elston Executive General Manager People and Culture Chris has worked at HSE Mining since 2014 and is responsible for the People and Culture function including strategic advice and operational support to the National Leadership Team/Senior Site Leadership teams on the full continuum of HR practices. His key responsibilities are: • Development of a strategic People and Culture plan that includes as sub sets, a Workforce Plan, Learning and Development Plan and an Internal Communication Plan • Close collaboration with the Managing Director to develop and implement a restructure of the Leadership Team in order to position the company to meet future business challenges

as we’ve been able to fully understand the breadth of assets we have at each of the different locations where we have contracts. For our customers, this means faster, leaner asset maintenance as we can source a part from another site rather than having to order immediately from the supplier,” he continues.

After this process concluded, the next step was a more strategic procurement program, a part of the

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• Undertaking a cultural transformation to evolve into a contemporary organisation underpinned by a strong values set • Developed and implementing a reengineering of labour rates With over 30 years HR experience, Chris has a strong focus on driving high performance capability across the business and building talent strategies.

Chris leverages networks across HSE Mining and with external stakeholders to build alignment and ensure that company values are maintained.

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business that HSE Mining “hasn’t had as a capability up until now”.

“We felt we needed more assurance around our procurement, both in terms of ensuring we’re getting the right quality for the best price for the parts and materials we procure for our business, but also ensuring a consistency and timeliness of supply and managing our risk, in terms of supply contract terms and conditions,” Fidock says.

“Over time we’ve had many, many different suppliers for similar parts so we needed to rationalise: what are the key groupings and how can we get a more orderly arrangement around the companies we trade with?

“We are still assessing our current spend, looking at key suppliers, and approaching them for opportunities for improved contracts,” Fidock adds.

“The key here is to work closely with suppliers to find the most timely and

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“…we’ve spent considerable effort embedding safety as part of our day-to-day operations, because we understand that safety excellence equals operational excellence”

Tod Mathews Executive General Manager Operations

– Allan Fidock, Managing Director cost effective outcome, not simply a cost reduction which can be counter productive when the ultimate result needs to be sustainable for all parties.”

There’s much commonality across the areas of inventory management and procurement, and they go hand-in-hand with HSE Mining’s third pillar of process improvement: maintenance cost management.

“Maintenance is something we’ve always been really proud of, in terms of our ability to properly maintain equipment to a great standard. But that said, everything is open to review,” Fidock says.

“Those are the key areas we’re working through now, to give us confidence that we’re moving in the right direction.”

Lastly, the final piece of the puzzle as HSE Mining consolidates, is a revamp of its data capture and processing systems.

“Historically, the integration of our claims

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Tod has over 25 years’ mining experience covering various commodities including coal, gold, nickel, and chromium.

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Tod oversees the daily operations, including production and maintenance, of our mining contracts by exercising leadership that empowers site project managers in the delivery of client requirements and maximises the capacity and resources of HSE Mining.

As a first priority, Tod champions our safety culture and integrates safety into all operational activity to ensure visible safety leadership at all times.

Tod drives productivity improvements and cost saving activities across operations, continually identifying and implementing strategies to maximise resources and deliver the best results for HSE Mining and its clients.

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data into a format that suited our client was proving to be problematic, and we could also see opportunities to improve our efficiencies and capture our own data better,” Fidock explains.

“For instance, each of our contracts has different conditions around payment, and at the end of each month, we need to collate data accurately to ensure claims are provided to our clients efficiently and effectively. We now have a program to capture the right data and provide our customers with the information they need quickly, consistently and efficiently, while also leveraging that information to continue improving our own processes.”

There remains “a whole range of opportunity out there” to adopt further technologies, to enable processes within their business that have historically been largely paper-based, and Fidock is exploring opportunities to streamline day-to-day operations.

All of these elements, which have been focused on driving excellence in operations and continually improving processes, have combined to put the company in the position of strength it is in today.

“The driver behind these programs is the fact that we’re preparing ourselves to be absolutely match fit, for when new opportunities come along and market conditions improve,” Fidock says.

The relatively new ownership structure is also helping HSE Mining to build upon a firm foundation for future success.

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Key People

Keith Butler General Manager Safety Keith has over 30 years’ experience in heavy industry, civil construction, mining, oil and gas including 10 years’ experience in Queensland Government in occupational health, safety and human resources. His expertise and role at HSE Mining is based on the following key areas: • strategic safety management • behavioural based safety and BBS program development • safety, quality and environmental management systems and third party accreditation • project planning, project builds and safety, quality and environmental planning • safety leadership, coaching and mentoring • injury management and common law management • risk management and incident investigations Keith has been with HSE Mining since 2014 and holds a Masters of Applied Science (OSH & Environmental) Management, Graduate Certificate of Employment Law, Graduate Certificate of Risk Management, Bachelor of Business, Diploma OHSM and Diploma of Project Management. Keith is also currently completing his final year of Doctor of Health Science with QUT.

Supporting Clients to Develop, Plan & Implement Occupational Health, Safety & Wellbeing Systems, Programs, Initiatives & Compliance

4cRisk has been a solutions provider to the industrial sector for over 6 years, supporting projects up to $2b during the construction and operational phase with development, planning and implementation of medical screening, compliance systems and providing all risk mitigation services in relation to employee health.

OUR CAPABILITY IS DEFINED

BY OUR EXPERIENCED, SKILLED & QUALIFIED PEOPLE OUR MOBILITY IS DEFINED BY OUR REACH: AUSTRALIA, PAPUA NEW GUINES, NORTHERN AFRICA, ASIA

International Lubricant Distributors (ILD) has proudly been supplying SINOPEC Premium Lubricants to HSE for over seven years.

HSE together with ILD have developed innovative supply solutions ensuring lowest cost per litre supply, reduced down times, extended drain intervals past and beyond industry best performance along with exceptionally maintained oil cleanliness and a complete lubrication solution to service HSE’s ever expanding fleet.

ILD-SINOPEC are changing the way companies procure, use and manage lubricants within the civil, mining and transport industries.

For more details, Call ILD today on: 1300 558 939, or visit:

www.ilddirect.com

MINING

“Three years ago, HSE Mining was has not been a difficult process – bought by the Swire group. Previously because that culture and values we were owned by one entrepreneurial already exist in our business.” and successful individual who As well as reinforcing its started the business 25 values, new ownership years ago. We have has put a floor under evolved from that HSE Mining’s financial Approximately foundation into stability, he adds. a business now “This is still a owned by a very very competitive large international, market. Everyone Number of Employees family-owned is really tentative at HSE Mining company,” Fidock says. around calling the “Swire brings a strong recent improvements in values base to our business. commodity pricing as the ‘end’ We’re in the middle of reinforcing the of the bad period, but regardless strong values of what is a 200-year-old of economic conditions, our goal is family business and for us, integrating to continue to operate safely, cost those values into the way we work effectively and cost efficiently.”

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