Mining Global Magazine - November 2015

November 2015 • www.miningglobal.com

Rio Tinto’s Solar Powered Weipa Mine

The Big Three: Rio Tinto, Vale, BHP

TOP10: Influential Associations

SPECIAL REPORT

Joy Global Australasia

EDITOR’S COMMENT

IN THIS ISSUE

“We’re seeing the initial interest but like most things in this industry, [mining companies] really want to see something deployed and in doing that with this project with Rio I think it’s going to be quite industry-changing in that respect” – First Solar’s Regional Manager, Jack Curtis.

I N T H E T R I E D - A N D - T R U E F A S H I O N of the mining industry,

radical ideas and strategies rarely come to fruition. For one of the world’s largest mining companies, Rio Tinto, their Weipa solar project is on track to rewrite the standards.

In partnership with the Australian Renewable Energy Agency, and First Solar, Rio Tinto has commenced the first commercial solar plant used to displace diesel at its Weipa bauxite mine in Queensland. In the November edition of Mining Global, we take a closer look at the innovative project, including cost savings for future projects, and examine how it could potentially bolster the mining industry’s confidence in renewable energy.

Also this month, we showcase the world’s largest three mining companies—BHP Billiton, Vale and Rio Tinto—and shed light on their leadership, including top management personnel, their background, and how their management team is leading the industry. Get an inside look at the men who run the biggest mining companies in the world.

Lastly, we give thanks to the 10 most influential organization in the mining industry. Find out who made the list.

Enjoy the issue!

Robert Spence Editor

robert.spence@wdmgroup.com

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CONTENTS

Features

LEADERSHIP

TOP10

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Mining Management: Inside the World’s Largest 3 Mining Companies; BHP Billiton, Rio Tinto, Vale

Most Influential Mining Organizations

MINE SITES

Mine Spotlight: Inside Australia’s First Solar-Powered Mine 4

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EUROPE

Company Profiles AUSTRALIA

40

Joy Global Australasia

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Ariana Resources plc

AUSTRALIA

54

A M E R I C A L AT I N A

66

Lynas Corporation

A M E R I C A L AT I N A

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Minera Valle Central

5

5

Nexans Chile

LEADERSHIP

Inside the World’s Largest 3 Mining Co Writ ten by: ROBE RT SPE N C E

ompanies; BHP Billiton, Rio Tinto, Vale 7

LEADERSHIP

BHP Billiton BHP is a leading global resources company with a goal of creating long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. The company is among the world’s largest producers of major commodities such as iron ore, coal copper and uranium, including interests in nickel and potash as well as conventional and unconventional oil and gas.

How is BHP’s management team leading the industry?

Australia’s biggest and most successful global company, BHP is an enterprise that continues to be the nation’s biggest taxpayer by far and is a storage of future wealth for just about every Australian with a superannuation account and a retirement to pay for. With BHP recently shedding a number of its non-core assets into a new business called South32, the company may be setting a trend others will follow. $67.2 billion 2014 PROFIT: $13.8 billion PRODUCTION NOTES: Nine percent increase in production compared from 2011 2014 REVENUE:

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MINING MANAGEMENT

Chief Executive Officer: Andrew Mackenzie Mackenzie has over 30 years of experience in oil and gas, petrochemicals and minerals. He joined BHP Billiton in 2008 as Chief Executive NonFerrous and commenced as Chief Executive Officer in 2013. Prior to BHP, Mackenzie was Chief Executive of Diamonds and Minerals at Rio Tinto, and held a number of senior roles at BP, including Vice President for Technology and Engineering, and Vice President for Chemicals.

Chief Financial Officer: Peter Beaven Joining BHP Billiton in 2003, Peter Beaven was appointed Chief Financial Officer in October 2014 after Graham Kerr was appointed Chief Executive Officer of South32. Beaven was previously the President of Copper and prior to that President of Base Metals, President of Manganese, and Vice President and Chief Development Officer for Carbon Steel Materials. He holds a Bachelor of Accountancy from the University of Natal, Pietermaritzburg, South Africa and is a Chartered Accountant.

Director: Jac Nasser Jac Nasser was appointed Director of BHP Billiton in 2006 and Chairman in 2010. Before joining the company, he spent the better part of his career with Ford Motor Company holding various leadership positions, including serving as President and Chief Executive Officer of Ford from 1998 to 2001. In addition, external appointments for Nasser include non-executive director and chairman of SABMiller plc since 2014 and July 2015 respectively, nonexecutive director and senior independent non-executive director of Marks and Spencer Group plc from 2008 and 2012 respectively until March 2015.

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LEADERSHIP

Rio Tinto Rio Tinto is a leading global mining and metals company focused on finding, mining and processing the Earth’s mineral resources in order to maximize value for our shareholders. The company has been in operations for over 140 years and specializes in commodities such as aluminum, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals, with operations in more than 40 countries across six continents.

How is Rio Tinto’s management team leading the industry?

Rio Tinto continues to combat today’s challenging market conditions with a clear and effective strategy that focuses on six key drivers: a world-class portfolio, quality growth, operating and commercial excellence, balance sheet strength, capital allocation discipline and free cash flow generation. $47.7 billion 2014 PROFIT: $6.5 billion PRODUCTION NOTES: Rio set production records for iron ore, bauxite and coal.

2014 REVENUE:

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MINING MANAGEMENT

Chief Executive Officer: Sam Walsh Following 20 years in the automotive industry at General Motors and Nissan Australia, Sam Walsh joined Rio Tinto in 1991. Before becoming chief executive in 2013, Walsh held a number of management positions during his career at Rio, including chief executive of the Aluminum group from 2001 to 2004, chief executive of the Iron Ore group from 2004 to 2009 and chief executive, Iron Ore and Australia from 2009 to 2013.

Chief Financial Officer: Christopher Lynch Lynch has nearly 30 years’ experience in the mining and metals industry. Prior to joining Rio Tinto, Lynch was chief executive officer of the Transurban Group, and his career includes seven years at BHP Billiton.

He also spent 20 years with Alcoa Inc. where he was vice-president and chief information officer, as wella s chief financial officer Alcoa Europe in Switzerland. Mr. Lynch became director of Rio Tinto since 2011 and chief financial officer since 2013.

Director: Jan du Plessis Du Plessis was appointed chairman in 2009. The South African and British citizen became group finance director of Compagnie Financière Richemont, the Swiss luxury goods group, in 1988. In 2004, he was appointed chairman of British American Tobacco plc, a position which he held until 2009.

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LEADERSHIP

Vale Vale is global mining company with a mission to transform natural resources into prosperity and sustainable development.

Headquartered in Brazil, Vales operates in over 30 countries and specializes in iron ore and nickel, including other commodities such as copper, coal, manganese, ferroalloys, fertilizers, cobalt and platinum group metals. .

How is Vale’s management team leading the industry?

Vale adopts management procedures compatible with the regulations of the markets in which it operates and seeks to guarantee international standards of transparency. At Vale, innovation continues to be the foundation for its development, which helps to create and achieve their vision of being the most important natural resources company in the world by creating long-term value. $37.5 billion 2014 PROFIT: $657 million PRODUCTION NOTES: Became the world’s largest producer of nickel in 2014 2014 REVENUE:

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MINING MANAGEMENT

Chief Executive Officer: Murilo Ferreira With over 30 years’ experience in the mining sector, Murilo Pinto de Oliveira Ferreira has spent his entire career at Vale. He commenced his professional career in 1977 as a financial and economic analyst with Vale, and was appointed as president and CEO in May 2011.

Chief Financial Officer: Luciano Siani As Vale’s Chief Financial Officer, Luciano Siani has an extensive professional experience in the areas of finance, capital markets and strategic planning. Before being appointed CFO, Siani held the positions of global director of Strategic Planning and global director of Human Resources and Governance for the company.

Director: Galib Chaim Galib Chaim took up the post of executive director, Capital Projects in November 2011. He has worked at Vale and its subsidiaries since 1979, notably in capital project management, international project implementation and corporate relations with government and private sectors. He graduated in engineering at Universidade Federal de Minas Gerais and obtained an MBA in business management at Fundação Getúlio Vargas, both in Brazil.

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MINE SITES

Rio Tinto Powered W

Writ ten by: ROB Edited by: JENN

The Weipa Solar Plant in Queensland is expect company’s bauxite mine, processing facilities and daytime electricity. Take a look at the future of m

o’s Solar Weipa Mine

BE RT SPE N C E NIFER WHITE

ted to generate enough electricity to power the d roughly 20 percent of the associated township’s mining operations as the energy world knows it.

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MINE SITES OWNED BY RIO Tinto, the Weipa bauxite mine is located on the Western Cape York Peninsula in Queensland, Australia. The mine, which officially commenced production in 1969, is operated by Rio Tinto Aluminum (subsidiary) and produces roughly 16.3 million tons of bauxite annually.

In September 2015, Rio Tinto announced the launch of the Weipa Solar Plant — Australia’s first commercial diesel displacement solar plant — that will generate electricity for the mine, processing facilities and associated township.

Mine overview Mining activities at Weipa officially began in the late 1950s, following the discovery of the vast bauxite resource by a geologist named Harry Evans in 1955. The town of Weipa was constructed by Rio Tinto Aluminum in the 1960s to house its mining workforce, but today is the regional hub of the Western Cape, hosting many businesses and government services.

Operations at Weipa consist of two continuous mining operations at East Weipa and Andoom, two beneficiation plants, 19 kilometers 16

November 2015

of railway to transport mined bauxite to the port area, two stockpiles and two ship loaders. Some product is shipped to international customers, but the majority of Weipa bauxite is supplied to the Queensland Alumina Limited and Rio Tinto Aluminum Yarwun refineries, both located in Gladstone, Queensland.

There are 11 Traditional Owner groups represented in the area, and Rio Tinto continues to operate in consultation with the Traditional Owners of the region. The company operates under three Indigenous agreements — the Western Cape Communities Co-existence Agreement (WCCCA), the Ely Bauxite Mining Project Agreement (EBMPA), and the Weipa Township Agreement — to provide economic, education and employment benefits to the community, including cultural heritage support and formal consultation processes with the traditional owners of the land.

At Weipa, indigenous employment is a key focus area for Rio Tinto, with around 22 percent of the workforce representing local Aboriginal and indigenous Australians.

In addition, the company is a

R I O T I N T O ’ S S O L A R - P O W E R E D W E I PA M I N E

“The Weipa Solar Plant is that it provides the opportunity to demonstrate that PV-diesel hybrid projects can also be as reliable as stand-alone diesel-powered generation” – J ack Curtis, regional manager of First Solar, Asia Pacific

Some product is shipped to international customers however the majority of Weipa bauxite is supplied to the Queensland Alumina Limited and Rio Tinto Aluminum Yarwun refineries major contributor to the regional economy, including significant investment in local infrastructure to support the Weipa township.

Solar power The Weipa solar project involves the two-stage construction and operation of a 6.7MW solar photovoltaic (PV)

solar farm at the bauxite mine, and will see the solar plant generate up to 2,800 megawatts of electricity annually that will supply 20 percent of the town’s daytime electricity demand.

“We expect the energy from the solar plant will help reduce the diesel usage at Weipa’s power stations and save up to 600,000 17

MINE SITES

Rio Tinto’s solar-powered Weipa Solar Plant - construction timelapse liters of diesel each year,” said Rio Tinto general manager, Weipa Operations, Gareth Manderson.

Until now, Rio Tinto’s bauxite mines at Weipa have been powered by two diesel-engine plants, which provide the electricity to the mine, the town of Weipa and the neighboring community of Napranum.

The hybrid system, owned by U.S.-based PV manufacturer First Solar, will link the electricity generated by the 18,000 advanced photovoltaic or PV modules to Rio Tinto’s existing mini-grid. Integration 18

November 2015

is through a new control system — FuelSmart solutions — which enables concurrent diesel and PV dispatch.

Believe it or not, this is the first time a commercial diesel displacement PV system has supplied power to a remote Australian mining operation on such a scale.

“It is already widely acknowledged that solar electricity is typically cheaper than diesel-powered electricity, particularly in remote locations. The significance of the Weipa Solar Plant is that it provides the opportunity to demonstrate

R I O T I N T O ’ S S O L A R - P O W E R E D W E I PA M I N E

that PV-diesel hybrid projects can also be as reliable as stand-alone diesel-powered generation,” said Jack Curtis, First Solar’s Regional Manager for Asia Pacific.

“This is the largest project of its kind almost anywhere in the world for this type of application, which is serving mining load or mining electricity needs with a hybrid solar/diesel system,” said Curtis. “It’s certainly the first of its kind as it relates to working with a company of Rio Tinto’s size.”

Under a power purchase agreement with First Solar, Rio Tinto will buy the power for a period of 15 years.

“This power purchase arrangement is an opportunity to trial the introduction of an alternative power source such as a solar plant into a remote electrical network like the one here in Weipa,” said Manderson.

The second stage of the project—if approved--would add an additional 5 MW of solar PV and take total renewable capacity to 6.7 MW. This would boost the fuel-saving potential to approximately 2,300,000 liters of diesel on average each year, reducing Weipa’s greenhouse gas emissions by around 6,100 tons per year.

At peak output, this is expected to cover 20 percent of daytime electricity demand, and the inclusion of 4 MWh of battery storage will increase the overall supply of renewable energy.

Partnership with ARENA Established by the Australian Government, the Australian Renewable Energy Agency (ARENA) has made a concerted effort to encourage investment in mining renewables projects in Australia and bolster mining industry At Weipa, indigenous employment is a key focus area for Rio Tinto

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MINE SITES confidence in renewables.

In partnership with Rio Tinto, ARENA has provided $3.5 million to support the first stage of the solar project. ARENA has also committed up to $7.8 million towards the potential second stage, following the completion and sustained operation.

“The success of phase one is set to create a precedent for industry by demonstrating that solar PV is a viable option for powering off-grid locations like mine sites in Australia,” said ARENA CEO Ivor Frischknecht.

ARENA actively invests in renewable energy projects in Australia, supporting research and development activities and helping to boost job creation and industry development, and increase knowledge about renewable energy.

“Similar ARENA-supported projects now underway, or in the pipeline, will build on the landmark project at Weipa and further prove the reliability of integrating renewable energy solutions in off-grid locations while helping to drive down costs and the need for subsidy,” Frischknecht said.

ARENA is also working with Rio Tinto and First Solar to collect wisdom, information and data 20

November 2015

Reducing project power costs remains one of the biggest challenges for miners

“This Australian project will potentially bolster the mining industry’s confidence in renewable energy as a reliable offgrid power source” – I vor Frischknecht, CEO, Australian Renewable Energy Agency (ARENA)

R I O T I N T O ’ S S O L A R - P O W E R E D W E I PA M I N E

accumulated throughout the development and construction of the project. According to ARENA, the knowledge will be shared with the renewable energy industry to help reduce costs of future projects, as well as increase confidence and encourage further investment in renewables for the mining industry.

“This Australian project will potentially bolster the mining industry’s confidence in renewable energy as a reliable off-grid power source,” said Frischknecht.

Reducing project power costs remains one of the biggest challenges for miners going forward. Volatile commodity prices have put immense pressure on companies to reduce risk and costs in order to remain competitive, but renewable energy solutions have the potential to change that.

In a tradition-based industry like mining, radical ideas and strategies rarely come to fruition.

This one, however, has the makings to revolutionize the industry.

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TOP 10

TOP10 Most Influential Mining Organizations We highlight the most influential organizations in the mining sector.

Written by: Robert Spence

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TOP 10

10.) Mine Safety and Health Administration One of the most important organizations in the United States is the Mine Safety and Health Administration (MSHA). While technically part of the United States Department of Labor, MSHA plays a critical role in enforcing safety across the mining sector, while helping to eliminate fatal and nonfatal accidents, minimize health hazards and promote safety and health conditions.

09.) W orld Gold Council The World Gold Council (WGC) is a market development organization that works to stimulate demand for gold, develop innovative uses and take new products to the market. The WGC is everything gold and their voice is heard throughout the entire mining industry.

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NAME OF TOP 10 ARTICLE

08.) The AusIMM The Australiasian Institute of Mining and Metallurgy (The AUsIMM) represents 1,400 individuals in the global mineral industry. Since 1893, the Association has provided services to professionals engaged in all aspects of the global minerals sector

07.) World Coal Association With members such as ArchCoal, Anglo American, Glencore, BHP Billiton, Rio Tinto, Caterpillar Inc. and Joy Global, the World Coal Association (WCA) is the premier organization for the coal industry.

The WCA strives to demonstrate and gain acceptance for the role coal plays in achieving a sustainable and lower carbon energy future.

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TOP 10

06.) Nevada Mining Association As one of the oldest trade association in the world, the Nevada Mining Association aims to provide accurate and credible information about mining in Nevada--the leading mineral producing state in United States.

The Association conducts education and lobbying on behalf of mining companies and related industries, and strives to build relationships and get involved in current issues related to the Nevada mining industry.

05.) Euromines Euromines plays a fundamental role in Europe’s mining industry.

In addition to acting as an interface between the European extractive industry and the European authorities and international or intergovernmental bodies, Euromines strives to promote the benefits of the mining sector and its value of both the product and the industry to society.

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NAME OF TOP 10 ARTICLE

04.) M inerals Council of Australia The Minerals Council of Australia (MCA) represents Australia’s exploration, mining and minerals processing industry, both nationally and internationally. The Association aims to support public policy and operational practices for a global competitive minerals industry.

Members of the MCA represent 85 percent of Australia’s annual mineral production and more than 90 percent of mineral export earnings.

03.) Prospectors and Developers Association of Canada The Prospectors and Developers Association of Canada (PDAC) represents the mining industry’s voice in Canada. Founded in 1932, the PDAC has a rich history of promoting a responsible, vibrant and sustainable Canadian mineral exploration and development sector. The Association’s primary role includes advocacy, information and networking.

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TOP 10

02.) National Mining Association As the voice of America’s mining industry, the National Mining Association (NMA) represents U.S. mining before Congress, the administration, federal agencies, the judiciary and the media. The Association dedicates its resources to focusing on policymaking, regulatory and permitting matters, including litigation.

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NAME OF TOP 10 ARTICLE

01.) International Council on Mining and Metals Since 2001, the International Council on Mining and Metals has served to improve performance in the global mining and metals sector. With 21 of the biggest names in mining, the ICMM aims to drive economic, social and environmental progress through innovative initiatives, programs and guidelines in order to strengthen the contribution of mining, minerals and metals to sustainable development.

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Company logo goes here

Ariana Res Forges Ah plans for T Gold Mine

Written by Sheree Hanna Produced

sources head with Turkish e

d by James Pepper

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ARIANA RESOURCES

A British-based mineral exploration and development company has reached maturity with two major projects ripe for production.

A

riana Resources PLC has invested $8 million within its joint venture to establish a new open-pit gold mine in western Turkey and just recently formally announced that construction works have started in the Kiziltepe sector.

Kiziltepe is part of Ariana’s Red Rabbit Gold Project, which contains a JORC compliant resource of 475,000oz Au equivalent (ounces of gold and the gold equivalent of silver) within the Kiziltepe and Tavsan Sectors located 75 kilometers apart with its joint venture partner Proccea Construction Company.

Commencement of works on the site marks five years since the formation of the joint venture culminating in a series of works already undertaken including the feasibility study, environmental impact assessment, other technical studies and the securing of various permits.

Dr Kerim Sener, Ariana’s Managing Director,

Kepaz - A Current Soil Sampling Area

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EUROPE

Workers Unloading The Site Perimeter Fence

explained that work had begun on securing the site with the erection of a perimeter fence, and that the forestry department had started clearing trees within areas in which permits had been sought.

He said: “We are initiating a drilling program in the foundation area of the designated mine site so we can calculate the volumes of concrete for the foundations and so on.

“Land acquisitions are essentially complete although there are a couple of other smaller parcels of land we are still working on, but not absolutely required for the operation to proceed, so there is quite a bit of activity on the ground at the moment.

“In terms of overall timeline, we hope to complete the first gold pour certainly by this time next year.”

Gold Finger Ariana Resources PLC was founded in 2002

“Ariana Resources PLC has invested $8 million within its joint venture to establish a new open-pit gold mine in western Turkey and just recently formally announced that construction works have started in the Kiziltepe sector.”

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ARIANA RESOURCES

Ore Stockpile in Kiziltepe

10 Number of Employees at Ariana Resources

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and picked up its first licenses in Turkey in early 2004 before becoming an AIM-listed company on the London Stock Exchange in 2005. Its longterm strategic plan is to develop its exploration portfolio through grassroots exploration, license acquisition and resource development.

In the past 10 years the company has dramatically evolved to become one that has successfully defined a total resource of 1.5 million ounces of gold in Turkey, Europe’s largest gold producer with eight operating gold mines.

Turkey lies within the globally significant Tethyan metallogenic belt hosting some of the world’s largest gold, silver and copper deposits.

Today, Ariana Resources PLC has two major projects in Turkey: the Red Rabbit Gold Project, and another joint venture with Eldorado Gold in the Artvin Province in northeastern Turkey.

EUROPE

Economically Sound The Red Rabbit project requires Proccea to contribute $8 million during the three phases of development culminating in the establishment of the mine at Kiziltepe. In return Proccea will receive a 50 percent equity stake in the project.

The project has $33 million in debt financing raised through the Turkish bank, Turkiye Finans Katilim Bankasi A.S. Sener, who is also a director of Australia-based private mineral exploration consultancy, Matrix Exploration Pty. Ltd, is confident the project is economically viable, particularly with the current fall in oil prices.

At the time of the project’s feasibility study, oil prices were in excess of $100 per barrel, but since those prices have crashed the knock-on effect has been to reduce the mining contractor’s costs.

He said: “There has been a balancing out between the current market price for gold and the lower costs of oil. The current gold price of around $1,110 an ounce and with an oil price at $45 means the project remains economic.

“Gold prices are expected to rise steadily over the next eight years which is the current life of the Kiziltepe mine.

“Another factor which will affect the overall economics is that we expect to identify further resources we can optimise and ultimately feed through the process plant at the tail end of mine life as well as developing the surrounding project areas.”

Turkey lies within the globally significant Tethyan metallogenic belt hosting some of the world’s largest gold, silver and copper deposits.

w w w. a r i a n a r e s o u r c e s . c o m

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ARIANA RESOURCES

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EUROPE

Live long and prosper The target is to keep the Kiziltepe plant running in excess of 10 years through further discoveries and for this reason the Tailings Storage Facility (TSF) has been designed with a capacity of 15 years.

As an Adjunct Research Fellow at the Centre for Exploration Targeting at the University of Western Australia, Sener is also involved in a number of research projects including investigating the potential for magmatic mineral systems on Mars to determine the prospectivity of the Martian crust.

Back on earth, Sener also believes there is potential for underground mining on the Red Rabbit Project although much of the current drilling is focused on the top 100 metre of the deposits.

“There are indications that those deposits do continue at depth and one of our exploration targets will be to start testing deeper levels in the years ahead, because the grade and width of the veins suggest there is potential for underground operations in places,” he said.

In the longer term, it is planned to develop a second mine at Tavsan and ultimately produce from both simultaneously at a rate of 50,000 oz Au per annum.

Sener said: “We believe there is potential to do that, but it will take a few more years to get through resource development stage and feasibility of Tavsan. We would rather finance through cash flow than to go back to the

“Ariana’s second project in Turkey is its joint venture with Eldorado Gold.

It is located in Artvin Province in the northeast of Turkey where Ariana Resources has defined more than a million ounces of gold”

Examining minerals

w w w. a r i a n a r e s o u r c e s . c o m

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ARIANA RESOURCES Kerim Sener Managing Director Kerim graduated from the University of Southampton with a first-class BSc (Hons) degree in Geology in 1997 and from the Royal School of Mines, Imperial College, with an MSc in Mineral Exploration in 1998.

After working for Independence Gold Mining Pvt. Ltd. (Lonmin Zimbabwe) he completed a PhD at the University of Western Australia. During his PhD, in 2000-2003, he worked with ASX-listed Northern GoldXxxxxxxxxx NL in the Northern Territory and on a variety of exploration consultancy projects in Western Australia.

In 2009, he completed his military service in Turkey.

He is a Fellow of The Geological Society of London, Member of The Institute of Materials, Minerals and Mining, Member of the Chamber of Geological Engineers in Turkey and a member of the Society of Economic Geologists.

Kerim is a director of Matrix Exploration Pty. Ltd., a private mineral exploration consultancy based in Perth, and is also an Adjunct Research Fellow at the Centre for Exploration Targeting, University of Western Australia.

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market to raise new development funds.”

Looking to sell Ariana’s second project in Turkey is its joint venture with Eldorado Gold. It is located in Artvin Province in the north-east of Turkey where Ariana Resources has defined more than a million ounces of gold.

At present the joint venture companies are exploring the possibility of vending the project to another company or selling it out right.

“We have had a number of expressions of interest from Turkish conglomerates seeking to get into the gold space,” explained Sener. “We have signed confidentiality agreements with 10 of them now and they are reviewing data.”

EUROPE

Company Information INDUSTRY

Mining And Mineral Exploration HEADQUARTERS

London, UK FOUNDED

2002 EMPLOYEES

10

Due to the somewhat less certain political situation in Turkey, which has an interim government in place until the elections are held this November, no hard and fast decisions are expected just yet. “We are keeping that on care and maintenance at this stage and doing a little bit of exploration and continuing discussions with these groups so that when the time is right we will hopefully be in a position to sell that project in due course.�

In keeping with its strategy of exploration and development Ariana Resources has also established a subsidiary company called Asgard Metals Pty Ltd to focus specifically on non-gold resources mainly in Turkey but also looking at critical and specialty metals in other areas.

REVENUE

Not Disclosed PRODUCTS/ SERVICES

Gold Exploration And Development Company

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Joy Global Australasia

Rising to the challenge: Joy Global looks to diversify into new commodities Safety, reliability and efficiency continue to be the hallmark of Joy Global, as shown through the company’s Australasian division.

Written by: Robert Spence Produced by: Glen White

o

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JOY GLOBAL AUSTRALASIA

J

oy Global has established a fierce reputation for meeting the rigorous demands of the mining industry by providing innovative and reliable equipment, systems and direct services.

Founded in 1884, the equipment maker specializes in developing and manufacturing systems, equipment, parts, and services for underground and surface mining. Joy Global has become a worldwide leader in highproductivity mining solutions by helping miners optimize their costper-ton of ore produced. Through the integration of smart technology, Joy Global is now on the forefront 42

November 2015

of helping companies optimize the performance of an entire mining operation.

World class provider In the wake of the declining commodity cycle, the equipment maker has begun expanding its capabilities into new markets to not only serve other sectors, but also become less exposed to mining downturns. Moving forward, a top priority for Joy Global is to diversify.

“By diversifying, we can become less exposed to the effects of a commodity downturn like we’ve seen in the past,” said Jason

MINING

Savage, President of Joy Global Australasia, a significant link in the company’s global supply chain.

“What we’re seeking as a business is to diversify into more commodities and become less of a coal equipment provider. Our end goal is to serve all commodities through our world class equipment and services.”

Joy Global has recently emerged into the hard rock market with a slew of acquisitions. Last year, the company acquired the underground hard rock mining assets of Mining Technologies International Inc. (MTI), helping to established itself as a

key component in many hard rock mining operations worldwide.

Joy recently made a move to further bolster its position as a first tier supplier to the underground hard rock mining market, acquiring France-based Montabert S.A.S. Globally known for rock drill products and rock breakers, the Montabert acquisition gives Joy access to the company’s global distribution of rock drill products and rock breakers.

“They have historically sold their products through dealers in a broad range of markets,” said Savage. “We absolutely intend on leveraging their w w w. j o y g l o b a l . c o m

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As the company begins its journey into new markets, Joy is gearing up to launch an array of “game changing” equipment to the sector.

“We’re preparing to launch the world’s first hard rock driver in HD, as well as proven electric drive technology in conjunction with an energy storage system,” said Savage. The energy storage system will have the capability to store energy while the machine is operating, as well as idling. According to Savage, companies will be able to reduce their diesel consumption by 20 per cent, while releasing more energy into the drive train to drive faster cycle times.

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SUPPLIER PROFILE

THE TIMKEN COMPANY

The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world.

In a business where daily production is measured in thousands of tons, mine equipment manufacturers and the companies that operate and maintain mining equipment rely on Timken to keep their equipment on the job and deliver maximum performance. From longwall shearers and shaker screens to massive draglines and shovels, Timken delivers solutions for mining applications, large and small, throughout the world. With 14,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion. w w w. j o y g l o b a l . c o m

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JOY GLOBAL AUSTRALASIA energy, companies can actually improve their performance while saving money,” Savage said.

Customer-driven solutions For Joy Global, satisfying the demands of its customers is as equally as important as delivering superior equipment. The company remains steadfast on leveraging its knowledge of applications to better assist companies in achieving their desired results, and boasts one of the world’s largest direct service networks.

“We have a proficient global network of highly trained service

SUPPLIER PROFILE

MINING

personnel,” said Savage. “Our services have a direct connect to the support personnel such as design and engineering to suit the customers’ needs, as well as the workforce, to locally customize our products to solve specific regional problems.”

Joy Global continues to push the envelope with new technologies for the mining industry. The introduction of JoySmart Solutions combines the company’s direct service model with something the mining industry has notoriously shied away from — technology. The automation and analytics that make up JoySmart

SKF AUSTRALIA PTY LTD

SKF delivers innovative solutions to equipment manufactures and production facilities in every major industry worldwide. Having expertise in multiple competence areas supports SKF Life Cycle Management, a proven approach to improving equipment reliability, optimizing operational and energy efficiency and reducing total cost of ownership. These competence areas include bearings and units, seals, lubrication systems, mechatronics and a wide range of services, from 3-D computer modelling to cloud-based condition monitoring and asset management services.

SKF’s global footprint provides SKF customers with uniform quality standards and worldwide product availability. Our local presence provides direct access to the experience, knowledge and ingenuity of SKF people.

Website: www.skf.com

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AMPCONTROL A JOY GLOBAL PREMIER SUPPLIER Ampcontrol partners with Joy Global to provide quality mining solutions that improve safety and efficiency. Together we power, light, monitor and control some of the biggest, most complex mines in the world.

Visit ampcontrolgroup.com

Specialising in but not limited to:

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JOY GLOBAL AUSTRALASIA Solutions are taking Joy’s customers to new levels of performance by maximizing production, lowering costs and helping keep people from harm’s way.

“We’re utilizing this information to enhance performance, as well as linking to automation and predictive maintenance,” said Savage.

Partnering with IBM, Smart Services allows Joy Global to analyze and compare operating data from its worldwide fleet, helping to identify anomalies in machine performance and continuous improvements in products. The end result is a combination of

MINING

improved availability, utilization and productivity, while also reducing operating costs.

According to Savage, the analytics produced allow Joy to better partner with its customers to provide direction and anticipate service needs, as well as optimize machine productivity to drive results and improve overall mine performance.

“We’re developing algorithms that can look at operational data measurements off the machine and detect trends and predict potential.

The smart connected products include predictive technologies aimed at taking people out of harm’s

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49

JOY GLOBAL AUSTRALASIA way through the use of automation.”

Using data-driven intelligence, and the Internet of Things (loT) — a powerful new concept that will revolutionize the way the world works — Joy Global has established a key differentiator between itself and its competitors. Joy’s Smart Services aims to optimize mine performance by prioritizing maintenance, increasing utilization and reducing downtime for the equipment most critical to a mine’s operation.

Maintaining Joy’s message Comprised of Australia, Thailand, Indonesia and New Zealand, Joy

MINING

Global Australasia employs more than 1,200 staff and continues to be a dominant and reliable asset for the Pacific region mining sector.

“We’re thankful to say we have a lot of deep seated, long serving employees here at Joy Global Australasia. They have a deep passion for innovation and products and they pride themselves on what they supply,” said Savage.

As the hallmark of Joy Global, innovation continues to be a living, breathing entity in Australasia.

According to Savage, that mentality is collectively driven throughout the organization, encouraging people to

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JOY GLOBAL AUSTRALASIA

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November 2015

MINING

push the boundaries of technology.

“We see ourselves as a technology and service company. As a culture, we are innovators and we’re driven by new products and solutions,” said Savage. “It comes right from the top here at Joy Global and we maintain that common message here in Australasia.”

Investing in employees is an aspect of Joy Global Australasia’s success. Along with common training programs, the company trains staff in various programs such as leadership skills, operational excellence, lean methodology in manufacturing and other sources in the business.

“We don’t just talk to the talk,” said Savage.

“We talk about having smart people and we actively strive to provide the necessary training and resources to ensure employees are top notch. We’re not a ‘hire and fire’ type of business.

We have immense pride in what we do and our employees reflect that passion.”

Joy Global Australasia is also an active participant in giving back to its surrounding communities. According to Savage, the company is involved in various programs such as cancer and mental health research, and readily contributes through donations and community involvement.

“We try to be unbiased with our community involvement. Joy is an active contributor in communities around the world and we maintain that message here in Australasia,” Savage concluded.

Company Information INDUSTRY

Mining FOUNDED

1884 PRODUCTS/ SERVICES

Mining equipment

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Lynas Corporation The Comeback Kid

As an integrated source of rare earths from mine to customer, Lynas has experienced highs, lows and everything in between. With a new CEO at the helm, the company is now positioned for long-term success.

Written by: Robert Spence

Produced by: Jeffrey Bailey

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C O M PA N Y N A M E

Bagging plant at Mt Weld

F

or Lynas Corporation, rare earth elements continue to create huge opportunity, and challenge.

The Australian-based company is putting the finishing touches on a considerable corporate turnaround, traveling a tough road of repositioning itself as a major player in the rare earths market, which has been historically dominated by China.

Driving the turnaround is Amanda Lacaze, appointed CEO in June 2014 . With Lacaze at the helm, 56 November 2015

Lynas is poised for a breakout year.

Back story Originally formed in 1983, Lynas has gone through a whirlwind of changes in recent years. The company undertook its first mining campaign in 2008, developing the Mount Weld mine in Western Australia, one of the largest and highest-grade known deposits of rare earths in the world. “In 2010, rare earths looked like a runaway market with the price spiking at more than six times

SECTOR

the current prices,” said Lacaze.

“Lynas raised significant funding and accelerated construction of the LAMP facility in Malaysia seeking to take advantage of this boom.”

According to Lacaze, when the rare earths bubble burst in late 2011, the company’s corporate structure and style of operations weren’t adjusted to the new market settings. In addition, ramp up of production at the LAMP facility was delayed by both operating challenges and legal challenges.

The result by the middle of last

year was a business that had consumed a huge amount of debt and equity funding in developing both the mine and the larges processing plant, but was yet to show a return on that investment.

“When I joined, production was unstable. We had high costs and were very cash consumptive. We had to reset our cost base and improve our operating performance while dealing with a market that was significantly less profitable than before.” w w w. l y n a s c o r p . c o m

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LY N A S C O R P O R AT I O N

AUSTRALIA

Rebirth of Lynas Appointed CEO in June 2014, Lacaze’s first plan of action was to establish a strategic framework to put its financial house in order.

“When I first started, Lynas had corporate offices in Sydney, KL and Perth as well as the facilities in Mt Weld and Kuantan. We decided it was best to ensure our people were co-located at our production facilities with a small number in Perth. This improved teaming and business efficiency and also deliver lower costs,” said Lacaze. “Shutting down some of the offices proved significant savings for us.”

Another critical component in the turnaround was reducing the company’s headcount.

According to Lacaze, the unpopular move can actually spark improvement.

SUPPLIER PROFILE

Amanda Lacaze, CEO and Managing Director

SIBELCO GROUP

Founded in 1872, the Sibelco Group has grown into a multinational business with more than 245 mining and production facilities worldwide. In 2012, Sibelco acquired QMAG Limited, one of the world’s most trusted producers of high grade Caustic Calcined Magnesia (CCM).

Sibelco has partnered with Lynas from early 2014 to provide our Caustic Calcined Magnesia (CCM) and is helping Lynas effectively stabilise their production process and maximise RE recoveries. At Sibelco we pride ourselves on our capabilities in operations management, process engineering and research and development. We have a team of highly qualified and experienced technical experts in the hydrometallurgical industry, who work closely with Lynas staff to improve process efficiency and increase the value in use of our magnesia.

Sibelco has a global portfolio of customers and our magnesia products are sold and delivered to over 30 countries worldwide. We provide tailored logistics solutions through our global network of service providers and the global Sibelco presence. Through our QMAG product range, Sibelco Australia is well positioned to deliver further growth and support our magnesia customers long into the future.

Website: www.sibelco.com.au w w w. l y n a s c o r p . c o m

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LY N A S C O R P O R AT I O N

A shift supervisor turns on pumps at LAMP 60 November 2015

AUSTRALIA

VP of Production Kam Leung stands next to concentrate ready for shipment to Malaysia

“My experience is there are many times when reducing your headcount improves your results.

When you start, people find it counterintuitive; however, when you have many people working together and they’re not fully utilized, they become accustomed to not doing their best work every day. It’s also not at all satisfying for staff to feel they don’t have productive work to do,” Lacaze said.

“We worked really hard to create a culture of performance. Quality of action is something we focus on and I’m a big believer that there is no substitute for hard work.”

With the framework for a concentrated workforce in place, production is now profitable and sales revenues continue to grow.

“As CEO, one of the most important aspects of my job is getting everyone in the Lynas team to do the best job possible,” Lacaze said.

As a sign of the good times to come, Lynas recently announced a restructure and debt agreement with its 2 lenders. The deal, according to Lacaze, is a natural next step for the company.

“We’ve come a long way: We’ve fixed production issues, we’ve improved engagement with our w w w. l y n a s c o r p . c o m

61

Industry: FM Global - International Freight Forwarder and Licensed Customs Brokers with offices in Australia, Malaysia and throughout South East Asia and Indian Subcontinent, offer a diverse range of personalised, reliable and competitive services tailored to our customers’ needs.

Services: FM Global specialises in oil/gas and mining related shipments. We understand the remoteness associated with the mining industry, tailoring a logistics package suitable to our client’s requirements.

Ongoing Projects: FM Global in Australia and Malaysia are providing a full range of logistics services door-to-door for the Lynas/LAMP facilities to accommodate the movement of all cargo.

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LY N A S C O R P O R AT I O N

AUSTRALIA

customers, and now this new debt restructure puts us in a position to complete the turnaround.”

Driving the change For Lacaze and her team, diversity is a large contributing factor to drive positive change.

“My executive team comprises three women and 6 men. We have Australians, Malaysians and others from various European countries.

It’s a good combination with varying backgrounds,” said Lacaze. “I want diversity in our company whether it’s gender, experience, age, ethnicity. It is my experience that

SUPPLIER PROFILE

varied experience leads to richer discussions on issues and new and different ways to address business challenges.”

As surprising as it sounds, Lacaze had no prior experience in the mining industry, having spent the majority of her career focused on marketing.

“Over the past 15 years, I have primarily worked in the IT&T industry.

When I took this job many people in the industry wondered how I would run a rare earths business.

My approach is that I knew how to manage performance, and I knew how to run a profitable business. I

FM GLOBAL LOGISTICS PTY LTD

Employees: 13 Established: 1st August, 2005 Management: • Brad O’Donnell – Managing Director • Mike Fairnie – Business Development Manager • Tania Stamboulakis – Project Manager Website: www.fmgloballogistics.com.au

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Excellence in design and project delivery.

Your partner in operational support.

www.hatch.com.au

Hatch is focused on working with clients to assess, plan and build for name plate production their most strategic investments. We bring together in-house engineering, smart technologies, quality project and construction management, operational support experience for small, medium and complex projects around the world.

Hatch is proud to be supporting Lynas Corporation’s Mt Weld Plant and their ramp up to being the world leader in rare earths production.

A shift supervisor instructs a tunnel furnace worker

64 November 2015

AUSTRALIA

did need to learn about rare earths – and I made it my business to learn as much as I could from the experts in our company and at our business partners as quickly as possible,” said Lacaze.

Company Information INDUSTRY

Setting the tone For Lacaze, the job of the CEO is to cultivate the energy and spirit of the organization.

“I update all my staff every quarter on all important aspects of business performance. I do this in small groups so we can talk in detail and I can be sure that everyone knows what’s going on with the business and we build trust in each other.

People in this organization are working harder than they’ve ever done in their lives and I want them to be successful,” said Lacaze.

“The result is we bring the sum total of our experience from all those areas and therefore we’re able to have rich conversation.”

Lacaze remains very positive about the future for rare earths and for Lynas.

“Rare earth minerals are used extensively in growing markets including environmentally significant segments such as energy efficient cars and the new technology in wind turbines,” said Lacaze. “ Lynas offers users environmental assurance from mine to finished product and this will become increasingly important as the market grows.”

With the right pieces in place, Lynas Corporation is now poised to become a fully-integrated provider of rare earths for the long-term.

Mining Global HEADQUARTERS

Level 1, 7 Tully Road East Perth Western Australia Australia, 6004 FOUNDED

1983 EMPLOYEES

650

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PROFIT

TAILINGS in COPPER COUNTRY from

Copper and molybdenum are Minera Valle Central’s sought-after rewards after an arduous job of processing the country’s copper tailings

Written by: Rebecca Castrejón Produced by: Taybele Piven Interviewee: Don Christian Cáceres Meneses, Gerente General de Minera Valle Central

L AT I N A M E R I C A

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M I N E R A VA L L E C E N T R A L ( M V C )

M

inera Valle Central (MVC) came together in 1992, when a Chilean group of entrepreneurs decided to making a profit from the tailings of copper ores.

More than 20 years later, the company specializes in tailings reprocessing through innovative methods, recovering significant amounts of copper and molybdenum through the “cascade floating” hydraulic monitoring method. MVC contributes to Chile’s industrial and economic development and is a profitable venture for its stockholders, parent company Amerigo Resources, and its employees.

copper regulations, where ore was processed between 1977 and 1987.

In 2015, MVC began processing tailings from Cauquenes Dam, also within Codelco’s El Teniente Division. The first phase of this project began in September of this year. Once started, the second phase is projected to double the company’s annual production, thanks to a contract that runs through 2037.

CURRENT OPERATIONS MVC is currently processing tailings at a rate of 130,000 tons per day at the Division El Teniente tailing dams, managed by Chile’s state-run mining company Codelco, under a 0.11 percent for copper.

The company’s tailings-processing operation at Colihues Dam works under 0.23 percent for total 68

November 2015

Megastructures for mineral production

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Since becoming an affiliate with Canada’s Amerigo Resources, Ltd., MVC’s activity has increased, earning a leading role in mineral extraction and tailings. The company has also seen growth from significant investments in machinery, training, monitoring systems, latestgeneration equipment and strict enforcement of safety policies among its workers and operations.

UNDER NEW MANAGEMENT Minera Valle Central (MVC) is currently led

by Mr. Christian Caceres, a 23-year veteran of the mining industry. Caceres is a civic engineer,

Key People

Christian Onetto CEO for Minera Valle Central Minera Valle Central (MVC) is currently led by Mr. Christian Caceres, a 23-year veteran of the mining industry.

Caceres is a civic engineer, graduated from the University of Santiago, Chile. He also earned a MBA at Santa Maria University and a certification course in Management Control from the University of Chile.

He previously worked for MVC as engineering manager (20042007) and operations manager (2008-2010), before becoming VP of Operations. He was appointed as CEO for the company last October.

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M I N E R A VA L L E C E N T R A L ( M V C )

Aerial view of Valle Central’s facilities

L AT I N A M E R I C A

“Once the second phase of expansion is completed, the Queuquenes project will provide us of a yearly copper production rate of 40,000 tons” – Christian Caceres, CEO for Minera Valle Central

M I N E R A VA L L E C E N T R A L ( M V C ) graduated from the University of Santiago, Chile. He also earned a MBA at Santa Maria University and a certification course in Management Control from the University of Chile.

He previously worked for MVC as engineering manager (20042007) and operations manager (2008-2010), before becoming VP of Operations. He was appointed as CEO for the company last October.

“I’ve worked for Valle Central for more than 20 years in different operations, engineering areas, and management. Most of my experience is related to tailings, in areas such as production, control, management, deployment of new systems and plant expansions,” Caceres added.

A DECADE’S WORTH OF MILESTONES

1.

L AT I N A M E R I C A

After completing the MVC acquisition, Amerigo’s investments were directed to an immediate plant expansion for tailings processing.

2. MVC is now able to process the older tailings in the dams.

3. MVC has put a focus on molybdenum recovery from concentrated minerals.

FORESEEABLE REVENUE FOR CURRENT AND UPCOMING INVESTMENTS MVC has experienced growth from significant investments during 2015. Phase I for the Cauquenes Dam extraction project was completed in October. Once completing Phase II, which is already underway, the mining company is set to double its annual 20,000-ton copper production.

Since Canadian corporation Amerigo Resources acquired MVC, it has become possible for the Chilean company to achieve milestones that weren’t previously in Current operations, reinforced by sight, such as: the completion of Phase I, enable w w w. m i n e r a v a l l e c e n t r a l . c l

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M I N E R A VA L L E C E N T R A L ( M V C )

Tailings extraction

MVC to process 60,000 tons of tailings per day, to be processed at the existing plant at Cauquenes.

“We are very excited with the completion of Phase I; we hope to obtain the $70 million funds for the next stage to finally complete this project,” the CEO said.

COMPANY CULTURE: SAFETY FIRST, SAFETY ALWAYS Safety is a relevant factor for MVC’s success. Its zero accident record during the last year is a result 74

November 2015

of the company’s efforts to strictly enforce safety policies and provide constant, detailed training to every worker for accident prevention.

The company’s main safety programs include: risk prevention, continuous improvements in surveillance from managers, on-site coaching, performance evaluation for suppliers and other associated companies, accident simulation drills, proper diffusion of company culture and environmental impact management. Team performance is rewarded through incentives,

L AT I N A M E R I C A

Tailings processing from El Teniente Division and Colihues dams

and workers are provided training for mining operations and other empowerment skills.

“Our safety records are excellent.

The accident rate for 2015 seems well below the industry’s average, and one of our lowest in years,” added Caceres.

SUSTAINABILITY AT MVC In 2014 MVC created a Sustainability Department, to ensure the company’s maneuvers do not inflict any unnecessary damage to

the environment. The company’s residues are properly managed by a specialized, certified industrial waste management company, and every emission is under constant monitoring by this department.

“We instruct our work force on this area’s goals, while at the same time reaching out to the surrounding community, improving our relationship with them,” said the CEO.

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M I N E R A VA L L E C E N T R A L ( M V C ) LOCAL SUPPLIERS “As a contribution to the surrounding communities, we do our best to partner with local suppliers. Working with them brings development to the surrounding communities. Some supplies or materials must be brought from other places, but the services we require for everyday operations are supplied by local companies, mostly,” Caceres said.

IMPORTANT ENDEAVORS FOR THE SHORT TERM Even after the Queuquenes dam project completes its second phase, MVC will keep searching for tailing deposits in Chile and abroad. A recent agreement has been reached already with a mining company in Peru for tailings processing.

“The Queuquenes expansion will provide us of a yearly copper

L AT I N A M E R I C A

production rate of 40,000 tons,� the CEO concluded.

Company Information NAME

Minera Valle Central (MVC) INDUSTRY

Mining HEADQUARTERS

Rancagua , Rancagua, Chile FOUNDED

1992 Minera Valle Central production plant EMPLOYEES

320 REVENUE

US $180 million WEBSITE

www.mineravallecentral.cl

After initial filtering and separation, thicker minerals undergo trituration through eight closed-circuit trituration chambers

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NEXANS CHILE

Amazing innovations in the cable and electricity conductors sector Nexans and the Madeco brand are the difference in value added cables for mining, energy and other sectors.

Written by: Mateo Rafael Tablado, Editor Produced by: Taybele Piven, Director of Operations at WDM Group - LATAM Interviewee: Renzo Ghidini, CEO for Nexans Chile

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November 2015

NEXANS CHILE

N

exans supplies cables and solutions to the mining sector -one of the most important industries in Chile, the world’s leading copper producer-, for the manufacturing industry, clean energy sources, telecommunications, for the energy sector, construction and infrastructure, and for the transportation industry, among

Improved resistance, an innovation within the sector

others. Nexans Chile is globally supported by 100 production plants, four research laboratories, and its staff is constantly trained to keep up to date with new technologies.

BECOMING AN IMPORTANT PARTNER TO EVERY CLIENT Nexans Chile and the MADECO brand -now known as “MADECO BY

L AT I N A M E R I C A

NEXANS”- is the undisputed leader as suppliers of electrical cables in Chile. The company’s developments to their products’ added value have become a global benchmark for Nexans.

Key People

This is a result of the close relationship between the company with both clients and purveyors. One Renzo Ghidini CEO for Nexans Chile An Industrial Engineer, Ghidini graduated from the Pontificial Catholic University of Chile, where he also achieved a Masters in Communication. His tenure in Nexans began in 2010 as Director for Sales and Marketing, soon after he was appointed VP of this same area for the South American market, until finally being named the company’s CEO in March 2015.

Ghidini worked for commercial airline LANChile between 1997 and 2008, where he worked up to the Director of Operations for North America position.

Other industries in which Ghidini has displayed his knowledge and experience include the energy sector for the Enersis power co.

(2008-2010), operating in Chile, Argentina, Brasil, Colombia and Peru.

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NEXANS CHILE

Supplying Chile with the highest quality for cables

of the most important collaborative relations is held with CODELCO (National Corporation for Chilean 82

November 2015

Copper) and with thier commodity suppliers, accomplishing important developments according to

L AT I N A M E R I C A

conditions in the products’ use. “Close relationships with clients

and suppliers is a key factor to optimize our products and create effective solutions enabling us to w w w. n e x a n s . c l

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“Close relationships with clients and suppliers is a key factor to create effective solutions enabling us to increase business value” – Renzo Ghidini, CEO for Nexans Chile

L AT I N A M E R I C A

increase business value for clients and ourselves,” Ghidini remarked.

The development of the Powermine cables line of products is a very good example of this team effort as these cables are resistant to high heat levels and extreme environments, which are the typical mining conditions in Chile.

INNOVATION IS THE KEY TO EXPANSION Nexan Chile strives to improve every product, displaying creativity by optimizing products which at some point may not seem as a subject to any more improvements.

other indicators.

3. Reflective covering, used in underground mining.

4.

The construction sector is benefitted by easy to slide cables for lesser difficulty in installation. This cables are also marked in length, which allow concise management and control.

“We are dedicated to improve our users’ experience and safety with our cables,” Ghidini added.

Some of the company’s latest and most unique innovations include: 1.

2.

Radio-frequency identification (RFID) cables, ideal for scarce visibility conditions or any conditions in which cables are missing or becomes difficult to locate.

Cables with optical fiber, able to send across data about the area’s temperature and

Optical fiber solutions

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RFID cables

EXPORTACIONES: ESFUERZO INCESANTE Sense of opportunity is a must for Nexans Chile’s operations. Endless efforts have been performed to expand into other LATAM markets such as Panama and other countries in Central America, and also countries that share free trade agreements with Chile. Only the Ecuadorian and Venezuelan markets present difficult obstacles, as their imports policies have impeded many companies to increase their exports into these countries.

Nevertheless, Nexans Chile has profitted from the opportunities to export into China and Sudafrica.

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November 2015

“Our wish is to penetrate into Panama and other Central American countries, since exports are favored by several trade agreements,” the executive stated.

MAJOR INVESTMENTS FOR TRAINING “Training and updating our staff on new technology is one of our most regular tasks,” Ghidini explained as he stressed on the importance of having a skilled workforce.

Nexans Chile is regularly investing in constant training programs for employees to become skilled at recently-deployed technology. The Nexans Excellence Way program

Nexans cables

“Our current goals include improving internally, increase our abilities and reach out to our clients by creating new projects together” – Renzo Ghidini, CEO for Nexans Chile

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NEXANS CHILE also provides staff members of knowledge about increasing efficiency in processes as well as in energy and waste reduction. The internal promotion program offers employees yearly certifications in their specialty and a career development plan.

THE FUTURE FOR NEXANS CHILE Nexans Chile foresees a four percent raise in investments for

2016, and also an increase in exports to Colombia and Peru during this same period.

Another prediction is that in 2017 and 2018 larger investments will take place in Chile, requiring the company’s products and services.

The company is currently performing internal efforts to detect areas to improve, developing new features to distinguish their products and keeping constant contact with their clients.

L AT I N A M E R I C A

“We need to be prepared when large investments take place again in country, we expect this to happen in Chile between 2017 and 2018,” Ghidini finalized.

Company Information NAME

Nexans Chile INDUSTRY

Value added cables from copper and other materials HEADQUARTERS

Santiago, Santiago, Chile FOUNDED

Comprada en 2008, afiliadas en 1944 Nexans Chile earned the Energy Efficiency approval EMPLOYEES

500 REVENUE

US $200 million WEBSITE

www.nexans.cl

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