Magazine
Anglo American: The diversified miner
Diesel/Gas Power Plant Excellence MAN - German Engineering for over 250 years. www.mandieselturbo.ca 路 Phone +1(289)835-1023
2015 Issue 5
World Mining
The Editor
Editor
The
Martin Ashcroft
FI - FA - FO - FUM Acronyms can be annoying at times, especially when people who understand them try to impress others who don’t. An acronym is worth its weight in gold, however, when it is universally understood and when it saves you having to say Fédération Internationale de Football Association every time you want to talk about FIFA – and I’ve been doing a lot of that lately. This is not a rant about football in a mining magazine, however, but a wistful warning about global organisations. Every mine impacts its communities and its environment in different ways, but there is a desire in the industry to look for global standards and solutions, just as there was in 1904 when FIFA was founded in Paris with the best of intentions. The first FIFA statutes were about unifying the laws of the game to make it fair and clear to everyone involved. Who could argue with that? Headquartered now in Zurich (convenient for the Swiss banks), FIFA is sadly not the visionary organization it once was. Mining has plenty of representative bodies organized in geographical regions or specific mineral groups, similar to FIFA’s regional confederations like UEFA or CONCACAF (Confederation of North, Central America and Caribbean Association Football). With all the permit applications and impact assessments and sustainability reports that mining companies have to deal with now, however, it’s understandable for the industry to move towards a single representative body to ‘unify the laws of the game’. There is already a strong element of ‘global creep’ going on.
The Global Reporting Initiative started in Boston in 1997, to “encourage” businesses to report on their environmental performance. The International Council on Mining and Metals (ICMM) was established in 2001 to improve sustainable development performance; it now represents 22 mining and metals companies and 34 national and regional mining and commodity associations. In 2013 the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) rebranded its Mining Standards and Guidelines Committee as the Global Mining Standards and Guidelines Group (GMSG), with an impenetrable vision statement I find quite worrying: “to become a global organization for the mining community to develop, maintain, endorse, collaborate, educate, and communicate mining industry standards and guidelines which will be supported and used by mining stakeholders to improve the safety, operational, environmental, and financial performance of the mining industry.” What a mouthful of global PR that is. I cast no aspersions on the GMSG or any other mining organization, but I do urge readers in the industry to think carefully about the representation they want. If a single organization were ever to take over the governance of your industry, you must be careful what you allow it to do in your name. Remember FIFA. And remember, when it comes to electing officials, the longer they stay at the top, the harder it is to remove them. www.ogsmag.com
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Contents Page 6 Cover story: Anglo American: The diversified miner
ADVERTISERS
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The Editor: FI-FA-FO-FUM
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Alcoa pockets Platts global metals awards
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iSolutions AMT Software improves asset performance
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A mine of activity in Eastern Europe
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Metal Tiger delivers LogrosĂĄn assay results
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Timetric survey reveals miners’ approach
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Wealth Minerals to acquire Yanamina Gold
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South32 emerges from BHP Billiton
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Circum Minerals: Ethiopia potash project
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Detecting gold at drill sites
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World Mining Magazine
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World Mining Magazine 2015
Page 18 Monthly news and features
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Anglo American The diversified miner From humble coal and iron to precious diamonds and platinum, Anglo American provides investors with a balanced portfolio of opportunities
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“Anglo American is the world’s third largest exporter of metallurgical coal”
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Anglo American is a global and diversified mining business that provides the raw materials essential for worldwide economic development and modern life. Its people use the latest technologies to find new resources, plan and build its mines and mine, process, transport and market its products, from bulk commodities and base metals to precious metals and diamonds to customers around the world. Anglo American’s diversified portfolio of products spans the economic development cycle and, as a responsible miner, the company works together with key partners and stakeholders to unlock the long-term value that those resources represent, not only for its shareholders, but also for the communities and countries in which it operates. Its mining operations, growth projects and exploration and marketing activities extend across southern Africa, South America, Australia, North America, Asia and Europe. The company was founded in 1917 by Sir Ernest Oppenheimer who had foreseen the potential to invest in gold mining on the East Rand in South Africa and raised £1 million of capital from sources in Britain and the United States, hence the company name. Subsequently Anglo American became the largest single shareholder of the now world-famous South African diamond company De Beers, and then invested in the Hudson Bay Mining and Smelting Company in Canada - its first major venture beyond southern Africa. Today, Anglo American’s stake in De Beers is 85 per cent.
Exploration
In 2014, Anglo American carried out exploration work in 19 countries and has regional exploration teams focused on key mineral belts with central oversight on commodity and project priorities. Its exploration hub offices are situated within commodity businesses so that the company can draw upon shared capabilities as part of a coordinated, collaborative strategy. Its search operations fall into two categories: greenfield exploration to find entirely new resources, and brownfield exploration to identify additional resources close to existing operations. The company benefits from developing and using world-class expertise and leading technologies that have often www.ogsmag.com
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been developed in-house. Geological, geochemical, geophysical and remote sensing tools are used to find deposits hidden deep beneath the earth’s surface, and a range of airborne technologies map out regional geological structures, with advanced software to process the data. Before putting a spade in the ground, Anglo American geologists and engineers work together using virtual mine planning systems to design the most effective, cost efficient, environmentally sound construction and operational mine plan. This work can take several years, depending on the complexities of the ore body, the physical environment of the site, its location relative to power and energy supplies and the route to market. Anglo American does not plan solely for the life cycle of the mine, but takes great care to look beyond and determine the rehabilitation of the site and the real benefits that the local communities will continue to benefit from. The technologies it uses to plan and build and rehabilitate minimise its environmental footprint while also safeguarding precious cash resources. As well as creating new products, Anglo American’s processing technologies enable it to reduce waste, save water, increase efficiency, drive innovation and, by adding value to its products, support economic growth in the areas that are mined. Processing begins with removing as much waste as possible, often using huge crushers to reduce the size of the material to help recover the valuable minerals from the ore. The minerals are then concentrated, using a range of processes that depend on the type of ore. For example, the use of gravity separation for coal, which is lighter than the waste rock, while copper can be separated using a flotation process. Having been processed, the often enormous volumes – particularly in the cases of iron ore and coal – are transported to Anglo American’s customers using the latest logistics technologies to co-ordinate and optimise its global shipping needs to deliver on time, every time. From smartphones to life-saving medication, from hybrid vehicles to remarkable jewellery, Anglo American products make all the difference to all of our lives.
Anglo American diverse products Iron ore and manganese: In a world of declining quality iron ore supplies, Anglo American’s iron ore operations are positioned to supply premium products to its customers, helping meet ever-growing demand. It has large, high quality iron 10
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“In 2014 Anglo American delivered the first ore on ship (FOOS) from its Minas-Rio iron ore project in Brazil”
ore resources in South Africa and Brazil. In manganese it has a 40% share in both Samancor Holdings and Tasmanian Electro Metallurgical Company (TEMCO), in South Africa and Australia respectively. Samancor Holdings is the world’s largest producer of manganese ore and among the top global producers of manganese alloy. In South Africa it has a majority share (c.70%) in Kumba Iron Ore, a global leader in the seaborne lump and fine ore markets. The ore is exported via the port of Saldanha Bay to China, Europe, Japan and
South Korea. In Brazil, Anglo American has developed the integrated Minas-Rio operation, which supplies iron ore pellet feed products that boast an unusually high iron content (c.67%), and very low levels of contaminants. During the second half of 2014 Anglo American announced the delivery of first ore on ship (FOOS) from its Minas-Rio iron ore project, within the targeted budget. The first cargo of more than 80,000 tonnes of iron ore for the pellet feed market was destined for
Anglo American
customers in China. Anglo American is now focused on achieving a safe ramp-up to the 26.5 Mtpa capacity over the next 18-20 months and on the regular cycle of license and permit renewal required for a mining operation of this scale in Brazil, as the company moves into operational mode. Coal: Anglo American’s coal portfolio is geographically diverse and well matched to the pattern of growing demand worldwide. The company has high quality
assets producing the particular products its diverse customers need, in both metallurgical coal (for steel manufacture) and thermal coal (for electricity generation). Anglo American is the world’s third largest exporter of metallurgical coal, operating in Australia, Canada, Colombia and South Africa. It wholly owns and operates seven thermal coal mines in South Africa, and holds a 73% shareholding in Inyosi Coal, a broad-based black economic empowerment (BEE) company. Its South
African operations supply both the export and domestic energy markets. From the Richards Bay Coal Terminal, it exports throughout the Atlantic, Mediterranean and Asia-Pacific regions. In Colombia, it has a one-third shareholding in Cerrejón, the country’s largest thermal coal exporter. Anglo American’s coal operations in Australia serve customers throughout Asia and the Indian sub-continent, Europe and South America. The mines are located on the east coast, in well-established locations www.ogsmag.com 11
with direct access to rail and port facilities. In Australia, Anglo American’s flagship metallurgical coal project – Grosvenor – has hit another milestone with the first coal sale loaded on the MV Spring Aeolian bound for India. On 7 February this year, just over 19,000 tonnes of Grosvenor’s coal product was shipped after being transported from the site in Moranbah to Dalrymple Bay Coal Terminal near Mackay, a 195km journey. The Grosvenor product was part of approximately 78,000 tonnes of Moranbah North Hard Coking coal loaded on-board the MV Spring Aeolian which is now on a 22 day voyage to India. This coal sale came about through the Grosvenor team’s outstanding efforts in establishing the underground roadways, conveyors and mining panels as they prepare for the longwall mining machinery installation. Following the recent tunnel boring machine breakthrough, the longwall is expected to be in full mining production in 2016. Copper: Anglo American’s copper business is helping meet high demand across the developing world, which is expected to increase as these new economies mature and their consumers demand copper-dependent products. The company has interests in six copper operations in Chile and produces copper concentrate, copper cathode and associated by-products such as molybdenum and silver. Its aim is to develop and operate long-life, costefficient, socially and environmentally responsible mining operations. In Chile it owns the Mantos Blancos and Mantoverde mines and has a 50.1% interest in Los Bronces and El Soldado mines and the Chagres smelter, which it manages and operates. It also has a 44% share in the Collahuasi mine. In Peru, Anglo American has an 81.9% interest in the Quellaveco project located in the south of the country and a 100% interest in the Michiquillay project in Northern Peru. Urban and industrial growth in China, India and other Asian economies will continue to drive the demand for copper on a large scale. Across all its copper operations, creating lasting value for the host communities is a priority for Anglo American. It won the prestigious ‘More for Chile’ award for its Emerge enterprise development programme, which has supported more than 50,000 jobs in small and medium sized businesses. Nickel: The nickel business is well placed to serve the global stainless steel industry, 12
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“Urban and industrial growth in China, India and other Asian economies continues to drive demand for copper” which depends on nickel and drives demand for it. Anglo American has assets in Brazil, with two ferronickel production sites – Barro Alto and Codemin, in the state of Goiás. The stainless steel industry uses two-thirds of the world’s nickel production and virtually all ferronickel produced each year. The balance is used mainly in the manufacture of alloy steel and other non-ferrous alloys. At Barro Alto and Codemin Anglo American is focusing on ways to improve output and reduce costs, extending the lives of both
operations by making them more efficient. People are the heart of the business and in 2013 it was recognised as one of Brazil’s top 35 companies to start a career with, and one of the 150 best to work for. Niobium: Anglo American is one of the world’s three largest niobium producers, with its operations located in Goiás state, Brazil. With demand tied to the market for high strength and speciality steels set to increase, Anglo American is preparing for continued growth, with its sights set
Anglo American
on becoming the world’s second largest producer of niobium. It mines the majority of niobium ore from the Boa Vista open pit. It is processed in Catalão and Ouvidor and ferroniobium is exported to major steel plants in Europe, North America and Asia. Anglo American has invested $325 million to expand the Boa Vista operation. The Boa Vista Fresh Rock project will increase production capacity to 6,800 tonnes per year once ramp up is completed and is set to make it the second largest producer of
niobium worldwide. The company will also start processing the ore in Catalão, when the project comes on stream. The growth in demand is being driven by China and India and, more moderately, by the US and Japan. Phosphates: Brazil is the world’s fourth largest market for phosphate fertilisers. Anglo American’s phosphates business is based in the agricultural heartland of Brazil and plays a key role in helping to produce the food the world needs. It is an
integrated operation that covers mining phosphate ore, refining it to produce P2O5 concentrate and processing into intermediate and final products. With an almost limitless domestic market (Brazil imports more than half of its phosphate fertilisers), Anglo American will continue to expand its operations, with a focus on low cost, high return projects. It has access to about 15% of Brazil’s known phosphate resources and the Chapadão mine in Ouvidor has some of Brazil’s highest grades of phosphate ore, expected to last www.ogsmag.com
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Anglo American Platinum Improves Asset Performance with iSolutions AMT Software The Mogalakwena mine is the flagship of Anglo American’s Platinum portfolio. Located in the north-western part of South Africa in Mokopane, Limpopo. Mogalakwena represents one of the largest platinum reserves in South Africa having estimated reserves of 264.9 million oz of platinum. The mine produces around 350,000 oz of platinum/year. Over the past two years, Anglo has been on a mission to reduce operating costs and improve equipment availability and utilisation. Significant improvements have already been achieved by implementing a number of business initiatives that have raised productivity and reduced costs, maximising the value delivered from Mogalakwena, with minimal additional capital expenditure. One of the headline initiatives has been the deployment of specialised mining asset management software (AMT) from iSolutions. Anglo estimate that the AMT software initiative will lead to a further 1% improvement in equipment availability, translating to a cost saving of ZAR80m (AUD 8.3 m) per annum. Fully integrated to Anglo’s SAP PM Module, AMT provides dynamic life cycle costing, budgeting and forecasting, condition based maintenance and other analytical services from work order information collected in SAP and conditioning monitoring systems. There have been immediate benefits from deploying AMT. One such benefit is that the Anglo maintenance team have been able to easily identify high risk components and/or overdue maintenance tasks that can be prioritised and actioned to avoid high cost failure events. Besides the short-term gains, AMT will deliver further benefits across multiple timeframes. In the medium term AMT will use specific reliability and performance data to identify and prioritise reliability engineering projects. This will help focus resources to achieve the maximum return on investment. Further, a greater visibility of component change out schedules will allow better inventory optimisation and planning, particularly for large, high value components. The savings are significant. For a mine such as Mogalakwena that has an estimated life of another 40 years, AMT will provide benefits well into the future. Using up-to-date life cycle models to drive mine forecasting and budgeting, AMT will support smarter life-of-mine investment decisions with its ‘what-if’ scenario analysis tools. This includes determining the most economic disposal points to realise the full value of assets at the lowest cost per ton.
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for about 30 years at current production rates. Being located close to where the phosphates are used saves on transport and import taxes and allows the company to respond quickly to its customers. Platinum: New technology and legislation continues to drive demand for platinum in the car industry – both through use of auto catalysts and through increased use of fuel cells. Anglo American provides the world with about 40% of newly mined platinum, making it the leading primary producer of platinum group metals (PGMs). Its operations are located in the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe. With extensive www.ogsmag.com 16
ore reserves, Anglo American is set to remain a leading PGM producer and aims to sustain a competitive and profitable business that supports its communities’ needs over the long term. In South Africa, the company is optimising and reconfiguring its portfolio to create a more profitable, sustainable and socially acceptable company. Once complete, it expects to have operations at Mogalakwena, Tumela, Dishaba, Twickenham (a mine in development) and Der Brochen (a project-phase mine). In Zimbabwe, it owns and operates the Unki platinum mine. Anglo American has joint venture operations at the Modikwa, Mototolo, Kroondal and Bokoni mines in
South Africa and has interests in the Royal Bafokeng Platinum and Pandora mine. It also owns smelting and refining operations in South Africa, which treat concentrates not only from its wholly owned mines, but also from its joint venture partners and third parties. Diamonds: Anglo American owns 85% of De Beers, the world’s leading diamond company, the remaining 15% being owned by the Government of the Republic of Botswana (GRB). Through De Beers and its partners Anglo American produces about a third of the world’s rough diamonds by value, employing more than 20,000 people around the world. Rough
Anglo American
“Anglo American has an 85 per cent stake in De Beers”
diamonds are sold to world-leading diamantaires through Sightholder sales and auction sales operations. Anglo American markets polished diamonds through the ‘Forevermark’ brand and sells finished pieces through De Beers Diamond Jewellers, while it designs, develops and produces industrial diamond supermaterials through its Element Six business. It has diamond mines in four countries: Botswana, Canada, Namibia and South Africa. In Botswana, Anglo American works in partnership with the GRB via a 50:50 mining joint venture, Debswana, with operations including Jwaneng, one of the world’s richest diamond mines.
In Canada, De Beers has operations at Victor in Northern Ontario, at Snap Lake and also has a 51% interest in the Gahcho Kué project in the Northwest Territories. In Namibia, De Beers operates in partnership with the Government of the Republic of Namibia through Namdeb onshore and offshore through Debmarine Namibia. In South Africa, De Beers’ mining takes place through De Beers Consolidated Mines (DBCM) in which its partner, Ponahalo Holdings, has a 26% shareholding. The majority of South African production comes from the Venetia mine, with the balance from the Voorspoed and Kimberley mines.
Sustainability and responsibility
As a responsible miner Anglo American understands that it is a custodian of precious resources. It recognizes the need to work together with its key partners and stakeholders to unlock the long-term value that those resources represent for its shareholders, who own the business, but also for the communities and countries in which it operates. Why? Because it believes that attractive returns are sustainable only if it can also deliver value to society.
World Mining Magazine
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News and features
Metal Tiger delivers assay results for Logrosán JV
Wealth Minerals to acquire Yanamina Gold Property in Peru
Natural resources investment company Metal Tiger has confirmed tungsten mineralization in its first series of assay results for the Logrosán Gold and Tungsten Joint Venture project in Extremadura, Spain. “The initial focus within this drilling campaign was to identify near surface Tungsten mineralization and we are delighted to confirm that the work has already achieved this initial objective,” said Cameron Parry, CEO of Metal Tiger. “The team on the ground is continuing to drill expeditiously and expand our tungsten mineralization knowledge at Logrosán. We look forward to releasing more findings with regard to tungsten as well as results from the gold targets in due course.” The first batch of external results consists of 28 assays from six holes. Significant intersections of tungsten mineralization were found in three holes located on two profiles, ranging from 0.08% to 0.20% WO3. The tungsten concentration of workable ores typically starts from 0.1% WO3. Over the past 18 months, Metal Tiger’s joint venture partners in Logrosán Minerals Ltd, Mineral Exploration Network (Finland) Ltd, have carried out more than 40,000 soil samples, covered thousands of linear kilometres with ground magnetic survey and assessed electro-magnetic tomography. Tungsten mineralization has been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes. In order to achieve 50% ownership of Logrosán Minerals Ltd, Metal Tiger will fund up to €500,000 in exploration work over the balance of 2015.
Wealth Minerals Limited has entered into a formal share purchase agreement with Coronet Metals Inc. to purchase its subsidiary Coronet Metals Peru SAC, thereby acquiring the Yanamina Gold Property consisting of five mining concessions in the department of Ancash, Peru. Vancouver-based Wealth will issue 1,000,000 shares to Coronet in two tranches, 750,000 on the closing date, and 250,000 shares six months later, and will take on a number of contractual obligations. Wealth Minerals is an early stage mineral exploration company listed on the TSX Venture and Frankfurt Stock Exchanges. This acquisition is typical of the company’s policy. “We are acquiring gold projects in stable geopolitical locations with low exploration risk,
attractive grade and potentially low capital requirements,” said Henk Van Alphen, president and CEO. While Wealth Minerals is not a development company, it does insist on reasonable potential for near-term production. The mineralization at Yanamina was originally explored by Arequipa Resources in the early 1990s. Barrick acquired Arequipa in 2000 and subsequent changes of ownership were accompanied by channel sampling and diamond drillholes until Yanamina was acquired by Coronet in 2011. No further exploration has been carried out since then. Once it has obtained the appropriate permits, Wealth intends to complete resource expansion and definition drilling at Yanamina. www.ogsmag.com
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News and features
Circum Minerals set to make impact with world class Ethiopian potash project
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aving proved up to 4.2 billion tonnes of potash resources, Circum Minerals’ Danakil project in Ethiopia is set to make a big impact on the market. “Circum has proven up a major worldclass potash project in the Danakil Basin in Ethiopia,” said chairman and co-founder Stephen Dattels. “Given its location on the doorstep of the Asian markets this discovery has the potential to dramatically change the dynamics of the potash industry and become a future source of significant supply of potash.” Circum acquired a 100% interest in an exploration license encompassing 365 square kilometers in the Danakil Basin in 2013. The project has a measured and indicated resource of 2.6 billion tonnes of potash salts at depths of 150 to 400 meters. The inferred resource is another 1.6 billion tonnes, giving a total resource of 4.2 billion tonnes of potash salt. With seismic data indicating a potential
11-13+ billion tonnes of potash rich mineral salts, the Danakil project promises to be one of the world’s largest undeveloped potash mineral deposits, and one of the lowest cost operations, thanks to the shallow depths and hot climate which lend themselves perfectly to a low capital and low operating cost in-situ leaching and solar evaporation process. The definitive feasibility study for Phase 1 of the project is scheduled for completion in July 2015. The Phase 1 Project Plan is to produce 2 million tonnes per annum of muriate of potash (MOP) and 0.75 million tonnes per annum of sulphate of potash (SOP). MOP ex-mine cash costs are expected to be around US$75-$100 per tonne and SOP ex-mine cash costs are expected be among the lowest in the industry at between US$110 and $150 per tonne. The Ethiopian government is fully behind the project. It is currently upgrading local roads and has recently completed a
paved road from the city of Mekele (where Circum’s logistics base is located) to the Danakil Basin. It has also agreed to build a re-enforced concrete main production haulage road for potash transport out of the Danakil Basin to the main rail line, a distance of approximately 400km. The Ethiopian Electric Power Corporation has indicated that a feasibility study to expand the national grid from the city of Mekele to the Danakil region is underway. The primary exit from Ethiopia will be the port of Tadjoura in Djibouti, which Circum claims will have the lowest transportation cost of any major potash producer to the Indian, Malaysian, Indonesian, Thailand and South Chinese markets. Discussions are underway with the Djibouti Government-owned Port Authority for Circum to be allocated an area for product storage facilities at the brand new bulk terminal at the port expected to be completed in the first quarter of 2016. www.ogsmag.com 23
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News and features
Alcoa pockets two Platts Global Metals Awards
US-based Alcoa, a global leader in lightweight metals technology, engineering and manufacturing, collected two titles at the third annual Platts Global Metals Awards, which recognize exemplary performance in a dozen categories across the steel, metals and mining complex. Picking up Metals Company of the Year and Industry Leadership Award: Aluminum, Alcoa was one of 12 winners from four continents honoured at a blacktie gala in central London attended by nearly 200 industry executives. The independent judging panel were unanimous in selecting American aluminum giant Alcoa for the 2015 Metals Company of the Year title, commending the company for its decisive move away from a commodity focus to an emphasis on innovation and the downstream high-end growth markets of automotive, infrastructure and aerospace. Contributing to its Industry Leadership Award win was Alcoa’s continued commitment to environmental efforts while simultaneously delivering 13 consecutive quarters of improved financial performance.
CEO of the Year, one of the programme’s most coveted awards, went to Mario Longhi, head of United States Steel Corporation (US Steel). Judges were inspired by Longhi’s clarity of vision, sound judgment and powerful motivational skills as he steered the company out of the financial doldrums and back to profitability. Tadeu Nardocci, senior vice president of Novelis and president of Novelis South America, picked up this year’s Lifetime Achievement Award, with judges impressed by his diverse career touching every aspect of the metals industry. The winner of the Rising Star Award, which recognizes vision, growth and ambition in a newer company, was Egyptian Steel and the Industry Leadership Award for Raw Materials & Mining went to India’s state owned NMDC Ltd, the country’s largest iron ore miner and one of the lowest cost producers in the world. The company’s recent success is a product of the mechanization of its mines and its continuous focus on reducing cost of mining through improved operational efficiency.
2015 Platts Global Metals Award winners: • • • • • • • • • • • • •
Breakthrough Innovation of the Year: New Steel CEO of the Year: United States Steel Corporation (US Steel) – Mario Longhi Corporate Social Responsibility Award: Teck Resources Deal of the Year: International Coal Venture Pvt. Limited (ICVL) Industry Leadership Award – Aluminum: Alcoa Industry Leadership Award – Base Metals: Hindustan Zinc Ltd. Industry Leadership Award – Raw Materials & Mining: NMDC Ltd. Industry Leadership Award – Scrap & Recycling: NEMAK (Premium Alloys Unit) Industry Leadership Award – Steel: JSW Steel Ltd. Lifetime Achievement Award: Novelis – Tadeu Nardocci Metals Distributor of the Year: Klein Steel Service Inc. Rising Star Award: Egyptian Steel Metals Company of the Year: Alcoa www.ogsmag.com
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News and features
A mine of activity in Eastern Europe There is a lot happening in the European mining industry, and not only in resource-rich Scandinavia. Eastern Europe is promising, too. For the first time in 2015, Hungary will invite bids for coal mining concessions. Lignite and brown coal account for about 80% of the country’s total coal reserves, making these the most important indigenous sources of energy. Ukraine also has generous energy resources, including 31,800 million tonnes of proven coal reserves. Ukraine’s Energy Strategy to 2030 envisages increasing the installed capacity of coal– fired power plants, ensuring a bright future for the mining sector. The Czech government recently announced its support for the renewal of uranium mining, just as Asia moves ahead with nuclear power and investors are looking for high volumes of uranium. Poland’s estimated coal production in 2014 was up by 2% compared to 2013. Several European energy companies are currently active in the Polish energy sector. The Europe Mining 2015 Summit, taking place in Amsterdam on 17-18 June, will provide country-focused presentations to enhance knowledge of the latest market trends and monitor the latest mineral resource developments in the region. There will also be special focus on Poland, Europe’s coal-producing giant.
Timetric survey reveals miners’ approach to equipment parts
A recent survey by Timetric of 100 key decision-makers at operating mines throughout Europe and the former Soviet Union (FSU) reveals a costconscious approach towards spending on equipment parts, particularly in noncritical areas. The survey divided parts into three categories, strategic parts, non-strategic parts, and processing equipment parts. The results show the dominance of OEMs in the strategic parts and processing equipment segments, while independent third-party suppliers have significant shares of non-strategic parts. Sixty percent of the mines sampled use OEMs exclusively for strategic parts, increasing to 66% using OEMs exclusively for processing equipment parts. When it comes to non-strategic parts, however, 27% of mines use thirdparty suppliers solely and 39% use a mix of OEMs and third-parties. The penetration of third-party suppliers in the non-strategic parts industry shows that although mining companies are currently reluctant to sacrifice quality for cost for their more important parts, they are looking to cut costs in the less critical areas.
“Mining companies throughout Europe and the FSU rely mostly on OEMs for strategic parts,” says Nez Guevara, senior mining analyst at Timetric’s Mining Intelligence Center (MIC). “Where nonstrategic parts are concerned, companies are increasingly looking to cut costs and purchase products from independent third-parties. Where issues regarding OEMs’ after-sales service and the availability of parts have been identified, there is a greater potential for OEMs to lose market share to third-parties.” Timetric surveyed 100 buyers and decision makers from 100 mines throughout Europe and the former Soviet Union and its report Maintenance and Aftermarket Preferences in Mining for Europe and the former Soviet Union, 2015 is published under its Mining Intelligence Center.
Send your news to martin@ogsmag.com
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BHP/ South32
South32 emerges from BHP Billiton’s non-core assets www.ogsmag.com
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South32 was born out of unwanted assets, but its $15 billion valuation puts it in the world’s 20 largest mining companies. 30
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brand new mining company, South32, has emerged overnight following simultaneous meetings of BHP Billiton’s shareholders in Perth and London on 6 May. Over 98 percent voted in favour of the demerger. Formed from BHP Billiton’s ‘non-core’ assets, South32 will focus on alumina/aluminum, thermal and metallurgical coal, manganese, nickel, and precious metals. “The demerger of South32 simplifies BHP Billiton’s portfolio while retaining the benefits of scale and diversification. We believe that the demerger will create two successful companies in BHP Billiton and South32,” said BHP Billiton chairman Jac Nasser. “The demerger of South32 is a major step forward in the evolution of BHP Billiton and our board believes it will create long-term value for our shareholders. The demerger will see a reduction of BHP’s portfolio from 41 assets in 13 countries to 19 assets in eight countries. The assets divested to South32 are: • Australia: Cannington, GEMCO, Illawarra Metallurgical Coal, TEMCO and Worsley. • Southern Africa: South African Energy Coal, Hotazel, Metalloys, Hillside and Mozal; • South America: Cerro Matoso, Mineração Rio do Norte and Alumar. Although South32 could be described as a collection of unwanted assets, its $15 billion valuation will put it in the world’s 20 largest mining companies. Platts managing editor for steel & steel raw materials, Paul Bartholomew, shares his insights on the demerger in a special report: Making sense of South32: A major new mining company emerges.
BHP/ South32 BHP Billiton’s strategy under CEO Andrew Mackenzie, Bartholomew points out, is “to focus primarily on its four pillars strategy, namely iron ore, petroleum, copper and coal, with potash as a potential fifth. But assets within this commodities portfolio need to be long-life, high-quality and large-scale. The assets that make up South32 did not meet such criteria.” The assets identified for demerger are estimated to comprise only 10% of BHP’s current asset base. Given the priority of iron ore, which contributes more than 50% of total revenues, the South32 assets may have struggled to compete for attention and may in fact be undervalued, says Bartholomew. After enjoying some $9 billion in capex between 2009-2013, however, “the new company’s mines, smelters and projects have not been neglected in terms of investment, and are generally viewed by the market as good assets. Receiving greater love and attention, however, could result in an improvement in efficiencies and productivity, while a shift towards regional rather than global operational models could help bring down labour costs.” For the new, streamlined BHP, capital tied up in its non-core assets can be invested in its core businesses or returned to shareholders. South32 will be headquartered in Perth, Western Australia, and will also have a regional head office in Johannesburg, South Africa. Former BHP CFO Graham Kerr will be the new company’s chief executive officer, while BHP director David Crawford becomes chairman. BHP chose the name South32 as most of its assets are located in the Southern hemisphere, with Australia and South Africa being connected by the 32nd parallel south line of latitude.
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Finding gold
The gold detectives Jack Baldwin reports on a highly sensitive method for detecting gold at drill sites Researchers at the University of Adelaide’s Institute for Photonics and Advanced Sensing have developed a portable method for detecting trace amounts of gold in ore samples - on-site at the drilling rig. Using advanced photonics, Dr Agneszka Zuber and Associate Professor Heike Ebendorff-Heidepriem’s method can find gold nanoparticules at detection limits a hundred times lower than current methods such as X-ray diffraction (XRD) and X-ray fluorescence (XRF). “We are working on two optical methods. One of them uses fluorescence and the other is absorption,” says Dr Zuber. “The most popular methods are XRF and XRD. These methods work but the problem is the level of detection is quite high - around five to ten parts per million. It means that some ore deposits can just be missed. Our
aim is to detect gold in parts per billion.” The project could save explorers from missed opportunities when drilling for gold. It’s a timely project, as gold isn’t limited to use in jewellery - it’s an increasingly important and in-demand component in electronics and medical devices. Dr Zuber and Associate Professor Ebendorff-Heidepriem have already been able to detect trace amounts down to 70 parts per billion of gold in water, and are currently undertaking tests on real rock samples. “The project we are working on is sponsored by the Deep Exploration Technologies Cooperative Research Centre (DET CRC). They have a drilling site in Brukunga, close to Adelaide, and we have used drill samples from there. They
are preliminary, but the first results are promising.” The only comparably sensitive method of detecting gold in such low concentrations at the moment is with Inductively Coupled Plasma Mass Spectrometry (ICP MS). That is a large off-site machine. Samples have to be sent to the lab and prepared through special methods such as fire assay and acid digestion before testing. Results can take weeks to arrive. “It’s about time and place,” Dr Zuber says. “The point is to analyse it quickly and at the place of drilling. We can achieve similarly sensitive results with a very small setup with a very easy to use method.” This article first appeared in The Lead South Australia and is used with permission.
Figure A shows no fluorescence and no gold nanoparticles. Figure B shows a green fluorescence, indicating the presence of gold particles. www.ogsmag.com
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Q & A: Mark A. Smith, President & CEO, Largo Resources Largo Resources describes itself as the only ‘pure play’ producer of vanadium, a rare metal used in steel alloys to add strength and aid resistance to corrosion and abrasion. Mark A. Smith became President & CEO on 1 April 2015 and is now focused on ramping up production at the company’s Maracás Menchen Mine in Brazil. What made you decide to join Largo? Vanadium is a specialty metal used to produce specialty steels, which is the most exciting place to be in the steel industry. Largo has a world class vanadium resource, proven metallurgy and great people. These three attributes, when put together correctly, in my experience, have always resulted in success. I believe we are on the cusp of success already and with the overwhelming passion and commitment everyone on the Largo team has, I strongly believe we will get there.
What are the highlights of your 34 year career in the mining and metals sector? There are many highlights, but being associated with people who have strong personal values, are loyal and care about what they are doing; people with an unrelenting willingness to undertake the hard work necessary for success, are clearly the strong points in my memory. I would be remiss if I also did not point out the multi-year record we set (over seven years during my time there) at the Molycorp Mountain Pass facility for having no lost time incidents and almost completing Project Phoenix (it wasn’t quite finished when I left) with over five million man hours of contractor work without a lost time incident. 34
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Interview
Maybe knowing what a difference we make by producing basic materials that significantly improve people’s daily lives and doing it in a way that they don’t really even know, is also a highlight.
What do you see as your greatest professional accomplishment? Being respected for my values as a human being (excellence, trust, honesty, integrity, creativity and safety - the first letters of which spell ETHICS) and respecting others who have the same basic qualities.
How has your experience prepared you to lead Largo? I have had the pleasure of leading mature organizations in full production, organizations that are just starting up, and organizations in between. Largo is on the cusp of success and I feel my personal values, my ability to motivate people toward a common purpose, and my ability to communicate accurately to people inside and outside of the company, will make a difference.
Largo commenced production at its Maracás Menchen Mine in August 2014 and is currently ramping-up production. What challenges do you expect, and how do you plan to address them? Every start up has its issues. Taking a project from its original concept, through a feasibility study, through detailed engineering, through construction, and then placing it into operation, can be both rewarding and challenging. The Largo team is really getting to know its process at Maracás and is developing good, long term solutions to change the parts of the system that are causing reliability and consistency issues. My job is to make sure the right culture exists at the mine to allow the people who know best to make the right decisions and ensure they have all the resources they need to make improvements. Our people have some of the best and most relevant experience in the
world when it comes to producing vanadium. Simply put, we need to let them do their job.
What are you most enthusiastic about? Our people! As noted above, we have some of the most respected people in the world in terms of vanadium experience. When we create an environment of trust and confidence, our full potential will be realized. When our full potential is realized, we will create the shareholder value our shareholders expect and deserve. This all takes hard work, commitment and passion. I am enthusiastic because our Largo team exemplifies all of these characteristics.
Where will the company be in a year’s time? Most importantly, we will have a culture of success in the company. Along with that culture will come a company that is safe and sends each of its employees home at the end of every shift the same way they came into the shift; we will have consistent production and sales of vanadium that meet or exceed our goals as well as our shareholder’s expectations, and our team won’t be satisfied - because they know there is still a better way and they will want to find it!
How do you see the vanadium market? Like most materials in the resource industry, vanadium has seen a reduction in its sales price. To me, the good news is that demand remains strong and the uses of vanadium continue to expand. I feel this lower price environment is temporary. The resource industry understands the simple economics of supply and demand and usually acts quickly to correct any imbalances.
Have you a message for Largo’s investors? I have an absolute open door policy and I hope our investors know they can call, email or come see me any time. Our investors deserve honest answers to their questions at all times and I have a strong desire to make sure they get what they deserve. www.ogsmag.com 35
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Rio Tinto: A global leader in mining, metals and minerals Rio Tinto has been unlocking the world’s mineral resources for more than 140 years, aspiring to be industry’s most trusted mining partner
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Rio Tinto is a leading global mining group that focuses on finding, mining and processing Earth’s mineral resources, its goal being to deliver strong and sustainable shareholder returns from a portfolio of world-class assets and pipeline of projects. The company has been unlocking the world’s mineral resources for more than 140 years. It takes a long-term, disciplined approach to its business, developing and running long-life, low-cost, expandable operations that are capable of delivering value throughout the cycle. The nature of its business means that Rio Tinto’s operations often last for many decades. Indeed, some of its mines have been in operation and generating value for more than a century. Rio Tinto’s major products are aluminium, copper, diamonds, gold, industrial minerals (borates, titanium dioxide and salt), iron ore, thermal and metallurgical coal and uranium. Metals and minerals are transformed into end products that contribute to higher living standards and economic development and Rio Tinto is present at every point in the development
The largest aluminium smelter in Australia is the Boyne Smelter, producing over 570,000 tonnes of aluminium per annum
cycle, from the iron ore that builds the fundamental infrastructure of our cities, to the copper and borates in the smartphones that keep us connected. Construction, communication, recreation, transport, healthcare and renewable energy: all these industries, and many more, rely on the supply of metals and minerals that Rio Tinto produces. Under its Group-wide organisational structure Rio Tinto’s four product groups – Aluminium, Copper & Coal, Diamonds & Minerals and Iron Ore – are supported by its Exploration and Technology & Innovation groups. www.ogsmag.com
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Rio Tinto Aluminium
Building on more than a century of experience and expertise, Rio Tinto Alcan is a global leader in the aluminium industry. Its fully integrated facilities include high-quality bauxite mines, largescale alumina refineries and some of the world’s lowest-cost, most technologically advanced primary aluminium smelters. Light, strong, flexible, non-corrosive and infinitely recyclable, aluminium is one of the most widely used metals. Its largest markets are transportation, machinery and construction. Bell Bay Aluminium is situated on the mouth of the Tamar River, approximately five kilometres from George Town and 45 kilometres from the city of Launceston, Tasmania. Bell Bay Aluminium has been in operation since 1955 and was the first smelter built in the southern hemisphere. The smelter produces around 180,000 tonnes of aluminium each year and operates 24 hours a day, 365 days per year.
The Bell Bay Aluminium smelter produces around 180,000 tonnes of aluminium a year and operates 24 hours a day, 365 days per year Its main metal products are ingot, block and T-bar. Boyne Smelters Limited (BSL) is the largest aluminium smelter in Australia. Located approximately 20km south of Gladstone at Boyne Island on the Central Queensland coast, BSL produces more than 570,000 tonnes of aluminium per annum. Gove Operations Bauxite Mine Alumina Refinery: The Rio Tinto Alcan Gove Operation is located on the Gove Peninsula in north east Arnhem Land, in the Northern Territory. The operation is situated on extensive deposits of highgrade bauxite, a burnished red ore with high aluminium oxide content. Bauxite mining began in 1970, feeding both the Gove alumina refinery and the export market. Gove produced 8 million tonnes of bauxite in 2013, and 2.3 million tonnes of alumina. In November 2013, Rio Tinto announced that it intended to suspend alumina production at Gove and focus on its bauxite operations after determining the refinery was no longer a viable business in the current market conditions. Alumina production was curtailed during 2014, but bauxite exports have continued as the refinery production is suspended. www.ogsmag.com
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Rio Tinto Queensland Alumina Limited (QAL), was commissioned in 1967 with an annual production rate of 600,000 tonnes of alumina. Today, QAL remains one of the world’s largest alumina refineries, producing some 3.96 million tonnes of the world’s best smelter grade alumina per year. QAL’s bauxite supplies are mined in Weipa in far north Queensland and shipped around Cape York and 2,000 kilometres down to QAL in Gladstone. Here, the alumina is produced through the continuous four-stage “Bayer Process” involving: Digestion – dissolving bauxite’s alumina content – bauxite is finely ground in mills, and then mixed with a recycled caustic soda solution and steam in digester vessels operating at high temperature and pressure. This dissolves the alumina content of the bauxite and the solution is then cooled in a series of flash tanks. Clarification – settling out undissolved impurities - the impurities, which remain undissolved, are allowed to settle as a fine mud in thickening tanks. After several washing stages to recover caustic soda, this
QAL employees and community volunteers plant approximately 2,000 new trees a year to revegetate the plant’s process residue areas residue is neutralised with sea water and pumped to storage dams. The solution of alumina in caustic soda is further clarified by filtration. Precipitation – forming alumina crystals - precipitation involves the recovery of alumina crystals from the caustic solution. In open-top tanks, the solution is stirred by mechanical agitation and seeded with previously precipitated alumina to assist crystal growth. Calcination – high-temperature drying of alumina - the precipitated material (called hydrate) is washed and calcined at temperatures exceeding 1,000°C. This forms the dry white anhydrous aluminium oxide powder, alumina, which is cooled and conveyed to storage. Water is essential to QAL’s refinery operations. Since the commissioning of Queensland’s largest water recycling project in 2002, QAL continues to recycle the majority of Gladstone city’s wastewater. In 2011, QAL started construction to source treated effluent from Boyne Island and Tannum Sands for use in the refinery. QAL’s waste transfer facility allows for the www.ogsmag.com 43
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Rio Tinto segregation of on-site waste and recycling of materials including metal, cardboard and wood. In 2012, the facility recycled 85 per cent of the 6,060 tonnes of materials brought to the facility. Land revegetation of the plant’s process residue areas continues each year in the buffer zone between QAL and the community. Each year, QAL employees and community volunteers plant approximately 2,000 new trees. Long-term revegetation work on the former residue disposal area continues to be extremely successful with a large supply of grass for dust control and shelter for native animals. Tomago Aluminium: Part of the Hunter Region for 30 years, Tomago Aluminium is located around 13km north west of Newcastle, New South Wales. The smelter produces around 540,000 tonnes of remelt ingot, T-ingot, extrusion billet and rolling slab per year. Ownership of Tomago is 51.55% Rio Tinto Alcan, 36.05% Gove Aluminium Finance Ltd and 12.40% Hydro Aluminium. Tomago primarily produces ingot, T-ingot, billet and rolling slab. Weipa: Rio Tinto Alcan owns and operates the Weipa bauxite mine on western Cape York Peninsula in Queensland. In 2014, the mine produced 26 million tonnes of bauxite. Rio Tinto Alcan Weipa operates under three indigenous mining agreements: the Western Cape Communities Co-existence Agreement (WCCCA), the Ely Bauxite Mining Project Agreement (EBMPA) and the Weipa Township Agreement. These agreements provide economic, education and employment benefits as well as cultural heritage support and formal consultation processes between the company and the traditional owners of the land. The Weipa operations consist of two continuous mining operations at East Weipa and Andoom, two beneficiation plants, 19 kilometres of railway to transport mined bauxite to the port area, two stockpiles and two ship loaders. Rio Tinto Alcan Weipa owns and operates two diesel engine power stations (26 megawatts and ten megawatts). These supply the mine, Weipa town and the neighbouring community of Napranum. The operations’ main administration, warehouse, laboratory and ship loading and port facilities are located at Lorim Point on the Embley River. The Weipa port can service post-Panamax vessels up to a capacity of 83,000 tonne cargoes. Some product is shipped to international customers but the majority of Weipa bauxite is supplied to the Queensland Alumina Limited and Rio Tinto Alcan Yarwun refineries, both www.ogsmag.com 45
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Rio Tinto located in Gladstone, Queensland. These refineries produce alumina as feedstock for Australian aluminium smelting operations and for sale on the international market. Rio Tinto Alcan has mined and shipped bauxite from Weipa since 1963. The original (northern) bauxite reserves are gradually being depleted and with continued demand for bauxite, the business has identified significant reserves south of the Embley River. A key milestone for the future of the Weipa operations was reached with the state government approving the South of Embley project. Rio Tinto Alcan Weipa is a major contributor to the regional economy, including significant investment in local infrastructure to support the Weipa Township. The Weipa Town Authority manages the township with the support of local traditional owners under the Weipa Township Agreement. The Authority is made up of elected community representatives, a traditional owner representative and appointed Rio Tinto Alcan Weipa personnel.
The Weipa port in Queensland can service post-Panamax vessels up to a capacity of 83,000 tonne cargoes Indigenous employment is a key focus area for the business, with around 22 per cent of the workforce representing local Aboriginal and indigenous Australians. The company is committed to improving quality employment outcomes for local Aboriginal employees, and focusing on developing existing and potential local Aboriginal leaders across the site. Yarwun: Rio Tinto Alcan Yarwun is a world-class alumina refinery situated ten kilometres north west of Gladstone in central Queensland. Construction began in 2002 and the first shipment of alumina was made in late 2004. The refinery was the first greenfield refinery to be built in the western world in 20 years. The aluminium ore bauxite is transported from Rio Tinto Alcan’s mining operations in Weipa on Western Cape York to be processed into alumina at the Yarwun refinery, which is 100 per cent owned and operated by Rio Tinto Alcan. Recent expansions have more than doubled production at the Yarwun refinery to 3.4 million tonnes of alumina per year, making Rio Tinto Alcan one of the world’s leading alumina producers. Yarwun’s alumina is shipped to customers in Australia and overseas, including the Middle East. www.ogsmag.com 47
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Rio Tinto Copper & Coal
The Copper and Coal group is made up of nine world-class operations and two high-value growth opportunities in the copper sector. The group aims to create shareholder value by reducing costs, leveraging technology to make its operations safer, more productive and more sustainable, and focusing its portfolio on low-cost, high-value operations and growth opportunities. Copper’s malleability, strength and conductivity make it useful in a range of building and electrical applications, and it is found in nearly every home and vehicle. In addition to this core product, Rio Tinto generates additional revenue from valuable copper by-products: gold, silver and molybdenum. Coal is a cost-effective and abundant energy source, and Rio Tinto is a leading supplier to the seaborne thermal coal market. Rio Tinto Coal Australia is one of Australia’s leading mining organisations, with a highly successful record in developing and managing world-class coal operations. It is a wholly owned member of the Rio Tinto Group. Rio Tinto Coal Australia produces both thermal and coking coal from its five operations – in the Hunter Valley in New South Wales and Queensland’s Bowen Basin – for international export. In Queensland the company operates the Hail Creek and Kestrel mines. In New South Wales, Rio Tinto Coal Australia manages Coal & Allied’s operations at Mount Thorley Warkworth, Hunter Valley Operations and Bengalla.
Diamonds & Minerals
The Diamonds & Minerals group comprises mining, refining and marketing operations and projects across six sectors. Rio Tinto Diamonds is one of the world’s leading diamond producers, active in mining, sales and marketing. Rio Tinto Minerals is a world leader in borates, with mines, processing plants, commercial and research facilities. Dampier Salt is one of the world’s largest producers of seaborne salt. Rio Tinto Iron & Titanium is an industry leader in high-grade titanium dioxide feedstocks and the uranium business, made up of Energy Resources Australia and Rössing in Namibia. The Diamonds & Minerals portfolio also includes the Simandou iron ore project in Guinea. Argyle: Rio Tinto owns and operates the Argyle diamond mine in the remote East Kimberley region of Western Australia. The mine has been operating since 1983 and has produced more than 800 million carats of rough diamonds. It is one of www.ogsmag.com 49
Rio Tinto the world’s largest suppliers of diamonds and the world’s largest supplier of natural coloured diamonds. Dampier Salt: A joint venture between Rio Tinto, Marubeni Corporation and Sojitz, Dampier Salt Limited (DSL) is located in the hot, dry climate of northern Western Australia. The Dampier operation, established in 1967, was the first DSL site. Dampier is currently the largest producer of the three sites with a capacity of 4.2 million tonnes per annum. The Lake MacLeod site was acquired in 1978 and has the greatest potential for expansion of the three sites. Its current production capacity is 2.9 million tonnes per annum. The Port Hedland operation was acquired in 2001 and has a production capacity of 3.2 million tonnes per annum. DSL’s approach to salt production involves extracting seawater (the primary resource for Dampier and Port Hedland) or naturally occurring underground brines (at Lake MacLeod). The evaporative power of the sun and the wind is then used to crystallise pure sodium chloride (salt) in a series of ponds called crystallisers. Approximately once a year, each crystalliser is harvested by a mechanical harvester after 20 to 40 centimetres of salt has been deposited. The salt is then washed to remove impurities and stockpiled for shipment. Dedicated stockpile and ship-loading facilities are located at Mistaken Island (Dampier) and the port of Port Hedland. Dampier Salt also operates its own port at Cape Cuvier. The majority of the salt DSL produces is used by the chemical industry. These chemicals are then used in the processing and manufacturing of other products across the automotive, construction and electronic industries. A smaller percentage of DSL’s salt is used in food processing Energy Resources of Australia Ltd is Australia’s longest continually operating uranium mine and one of the country’s largest uranium producers. Uranium has been mined at Ranger for more than three decades and it is one of only three mines in the world to have produced in excess of 100,000 tonnes of uranium oxide. Ranger began commercial production of drummed uranium oxide (U3O8) in 1981. In November 2012, mining in the operating Pit 3 ended. ERA has now begun the transition from open cut mining to underground exploration of the Ranger 3 Deeps mineral resource and potential underground mining. ERA sells its product to power utilities in Asia, Europe and North America under strict international and Australian Government safeguards and nonproliferation conditions to ensure that www.ogsmag.com 51
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Rio Tinto Australian uranium is only used for peaceful purposes. It maintains long-term relationships with customers and meets their energy needs by providing consistent and reliable supply of uranium oxide. The Simandou project provides access to one of the world’s largest untapped (over 2 billion tonnes), high-grade iron ore resources in the world. It can sustain a mine life in excess of 40 years and has the potential to make Guinea one of the world’s top iron ore exporters. Rössing is the world’s longest-running open pit uranium mine. Operating since 1976, Rössing has produced the most uranium of any single mine. Rio Tinto manages and owns a 68.58 per cent stake in the mine. It is located 12km from the town of Arandis, which is 70km inland from the coastal town of Swakopmund in Namibia’s Erongo Region. Walvis Bay, Namibia’s only deep water harbour, is
The Argyle diamond mine in Western Australia has produced more than 800 million carats of rough diamonds 30km south of Swakopmund. Uranium was discovered in the Namib Desert in 1928, but it was not until intensive exploration in the late 1950s that much interest was shown in the area. Rio Tinto secured the rights to the Rössing deposits in 1966. Ten years later, Rössing Uranium, Namibia’s first commercial uranium mine, began operations. Rössing produces and exports uranium oxide from Namibia to nuclear power utilities around the world.
Iron Ore
Rio Tinto’s Western Australian and Canadian operations are undergoing expansion programmes. The company is also investing in new projects, ensuring it is well positioned to benefit from continuing strong demand from China and other Asian markets. Pilbara, Western Australia: The Pilbara is a large, dry, thinly populated region in the north of Western Australia. It is known for its Aboriginal peoples, its ancient landscapes, the red earth, its vast mineral deposits (in particular iron ore) and as a global biodiversity hotspot for subterranean fauna. Rio Tinto’s Pilbara operations include a world-class, integrated network of 15 iron ore mines, four independent port terminals, a 1,700 kilometre rail network and related infrastructure and are designed www.ogsmag.com
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Rio Tinto
to respond rapidly to changes in demand, supported by its operations centre in Perth. Rio Tinto is expanding its operations in the Pilbara to epic proportions while introducing next generation technologies to deliver greater efficiency, lower production costs and improve health, safety and environmental performance.
Sustainable development
Rio Tinto’s global vision is to be a company that is admired and respected for delivering superior value, as the industry’s most trusted partner. Its operations allow Rio Tinto to create mutual benefit with the communities, regions and countries in which it works and it is always looking for new answers to complex global and local challenges, which include resource scarcity, climate change, community employment and regional economic development. To achieve its sustainable development goals, Rio Tinto works hand-in-hand with partners and communities on the ground, where it matters most. Supporting the business is a company of world-class people who are the foundation of its success. This 60,000-strong workforce, across more than 40 countries, pulls together as a powerful team where a culture of innovation is nurtured. With headquarters in the UK, the Group comprises Rio Tinto plc. – a London and New York Stock Exchange listed company – and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
World Mining Magazine
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World Mining Magazine
Be on the front cover and have the lead 12-28 page editorial of an edition of your choice and our reach 93000 readers across the globe
Previous companies who have taken this option include BHP Billiton, Rio Tinto, Anglo American, Barrick Gold and many more companies have booked in for our future issues. This complete package includes: Front Page (dedicated to your company) 12-18 Page Lead/ Main Editorial Full Page Advertisement All editorial and advertisement design Total price: ÂŁ14,500 (Discounted options are availableplease contact us for more information) This package is available for all our editions including our editions distributed at our supporting and partnering exhibitions/conferences.
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If you would like to appear as the front cover and lead article please contact us at info@ogsmag.com or editor@ ogsmag.com
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All companies who take this option will also be given magazines to distribute on their own behalf. Previous customers have found this particularly useful for exhibitions and conferences and when new products have been developed.
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World Mining Magazine offers its customers the opportunity to feature as the front cover and the main/ lead article of the magazine. This gives companies the opportunity to discuss their operations and developments in more depth and reach our large global audience of over 93,000 at a fraction of the cost it would take to publish sole brochures.
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