Magazine
On the cover
De Beers: From discovery to desire
De Beers has been involved in all aspects of the diamond business since 1888 and is recognised internationally as the industry leader. Page 6
In this issue
From data to information: Soldata slope stability monitoring solutions make mines smarter and safer. Page 18
Mining in Canada The mining industry’s economic contributions to Canada remain strong during the downturn. Page 20
News & Features Page 34
2016 Issue 11
World Mining
• Mining • Oil • Construction • Industrial
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• The Editor
Neighbourhood watch
Editor
The
A
fter interviews with 1409 CEOs in 83 countries, PwC published its 19th Annual Global CEO Survey last month. Subtitled Redefining business success in a changing world, one of the many insights it reveals is a trend I had paid little attention to before; CEOs are increasingly widening the scope of what they take into account when measuring their success. Any action that delivers competitive advantage is well worth taking, and CEOs are always looking for new ways to do this. Advantages tend to diminish with time, as additional increments become harder to squeeze out of the same resources, and as competitors catch up. So, along with their traditional concerns about safety, efficiency, costs and the rest, CEOs are increasingly turning to ‘softer’ issues like customer service and community relationships to distinguish their brands. Quoted in the PwC report, Richard Goyder, managing director of Wesfarmers, Australia put it this way. “When we measure success at Wesfarmers, clearly we look at the financial performance: our
Martin Ashcroft
profits, our cash flows, our return on capital or equity, our dividends we pay to shareholders. But at the end of the day, the most important measure for me is our reputation.” Nearly a quarter of CEO respondents said their company had recently begun to take more account of its impact on society. The mining industry has been in the vanguard of this trend for some years, and deserves congratulation for the progress it has made on environmental and social issues. I don’t know how many miners there were among PwC’s 1409 CEOs, but it sounds like a lesson miners learned some time ago is gradually filtering through to the rest of the world. But if we know it pays to be a good neighbour, the next question is, how much does it pay? “If you can’t measure it you can’t manage it” has become an old chestnut, but it’s still relevant, nevertheless. As reputation grows in value as an aspect of company performance, the search is on for ways to measure these ‘soft’ factors. By the time PwC is ready to publish its 20th CEO survey, I expect there will be a whole new industry of vendors peddling good neighbour schemes. •
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Contents.......... Page 6 De Beers:
From discovery to desire
Page 34: Monthly news & features
3
The Editor: Neighbourhood watch
6
De Beers: From discovery to desire
18
Soldata: From data to information
20
Mining’s contribution to Canada
22
Outlook for mergers and acquisitions
24
A flat year for mining
26
Adrok: The virtual borehole
54
Waterfall Security Solutions
30
Expander System: No more pivot wear
70
Terex Finlay launches new impact crusher
Horizonte Minerals Commercial Metals Co. Sandvik Gerald Metals Tahoe Resources RNC acquires Salt Lake Mining Honeywell Process Solutions SNC-Lavalin Orvana: El Valle mine Kootenay and Northair Atlas Copco Richmont Mines ABB drive systems
ADVERTISERS Page: 2 Industrial Vacuum Systems 10 Rockwell Automation 11 Soldata 28 Rockwell Automation 29 Adrok Group 32 Expander Systems 36 TerraMar Networks 38 Wolseley Industrial Group 39 Conductix Wampfler 40 GEA 42 Hawk Measurement 44 Polar Mobility Research 46 Queri International 47 Minpro Int. / Kippertool 48 Mining Expo China 2016 50 Canary Systems 52 Dok-Ing 53 Monarch Vulcanising Systems 66 IDS Corporation 67 Seeing Machines 72 Puritech 76 United Mining Rentals 78 Greenfield Handlers 79 Kentz 80 Pavilion8
........................... News & Features Editor:
Martin Ashcroft martin@ogsmag.com Editor
Page 26:
Vanessa Ward editor@ogsmag.com
Adrok: The virtual borehole
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World Mining Magazine 2016
Page 34:
Monthly news & features
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De beers from discovery to desire De Beers has been involved in all aspects of the diamond business since 1888 and is recognised internationally as the industry leader. The company is dedicated exclusively to the exploration for, and mining and marketing of diamonds •
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S
ince the first diamond rush back in the 19th century, De Beers has been a name synonymous with diamonds. De Beers’ operations today are focused on open pit and on alluvial/marine mining, and to a lesser extent on underground mining. It has open pit mining operations in Botswana, Canada and South Africa, while marine operations are located in the sea off the coast of Namibia. Diamonds are most commonly found in kimberlites and lamproites, remnants of ancient volcanoes that brought diamonds up to the earth’s surface. De Beers’ success comes from identifying and excavating the 15 per cent of kimberlites and lamproites that actually yield diamonds. 8
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• De Beers and regarded as one of the most successful in the world, contributing to the transformation of a mainly agricultural country into a nation with one of the highest economic growth rates in the world. Formed in 1978, it has become part of the fabric of Botswana, enabling its people to unlock the value of their precious natural resources and the potential of their country. The business contributes about 30 per cent of Botswana’s GDP and 50 per cent of the government’s revenues. It’s the country’s main foreign exchange generator and largest private employer, with 95 per cent of employees being Botswana citizens. The search for diamonds there began with the discovery of three small alluvial diamonds along the Motloutse River in 1955. It was not until 1967 that De Beers’ geologists, exploring near the village of Letlhakane, found diamond-rich ores. Today, Debswana operates four open-pit mines: Jwaneng, Orapa, Letlhakane and Damtshaa. Jwaneng is the world’s richest diamond mine by value and is on its way to becoming one of a handful of global super-pits. Orapa, with the world’s second largest diamond-producing kimberlite pipe, is the planet’s largest open-pit diamond mine. Damtshaa was placed into care and maintenance in December 2015. Debswana has been recognised by leaders around the world for how a true partnership between a well-managed government and a commercial enterprise can create value for both the country and the company.
“De Beers has open pit mining operations in Botswana, Canada and South Africa, while marine operations are located in the sea off the coast of Namibia”
Open pit mining
The most common method of diamond recovery, De Beers’ open pit mining operations are impressive in terms of engineering and use the most advanced methods to uncover the diamond ore that is already close to the surface, before breaking it up for processing. Although this is a relatively simple process, the ore has to be carefully exposed and broken up to ensure maximum diamond yield. Working closely with its machinery suppliers De Beers has some of the most technically advanced methods and equipment in use today. De Beers operates open pit mining alone or in partnership in Botswana, Canada and South Africa.
Botswana
Debswana Diamond Company, the world’s largest diamond producer by value, is a 50/50 joint venture between De Beers and the Government of the Republic of Botswana. It’s a public-private partnership now in its fifth decade
The word Jwaneng in Setswana means ‘a place of small stones’ but its significance to De Beers and the people of Botswana is huge. It has been described as a “gem in the world of gems”. Situated in south central Botswana, about 160 miles south west of Gaborone, the open-pit mine’s high-grade ore contributes between 60 per cent and 70 per cent of Debswana’s revenue. It is mined at a depth of 350 metres, focusing on three kimberlite pipes and a smaller satellite deposit. Jwaneng is expected to yield more than 204 million carats, from around 181 million tonnes of ore, over its remaining life. In 2018, Cut-8 will become the main source of ore for Jwaneng and extend the life of mine until at least 2035. Letlhakane is Debswana’s deepest mine, lying within the Orapa kimberlite area. It was discovered when Orapa was being sampled and evaluated, and was the second mine opened by Debswana. The mine is managed from De Beers’ Orapa operation, 50 miles away, where its diamonds are processed at the completely automated recovery plant. Letlhakane, which means ‘little reeds’ in Setswana, was opened in 1975 and is in Botswana’s Boteti district, 190km west of Francistown. The Letlhakane open pit operation is expected to produce around 1.2 million carats, from 6.2 million tonnes of ore, for the remaining three years of its life. Treatment of tailings will begin in 2016 and will see the mine running for a further 24 years, producing an estimated 21 million carats from 83 million •
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“Debswana Diamond Company, the world’s largest diamond producer by value, is a 50/50 joint venture between De Beers and the Government of the Republic of Botswana” tonnes of ore. Orapa, which means ‘the resting place of lions’ in Setswana, is De Beers’ oldest operating mine in Botswana and the largest open-pit diamond mine in the world. The mine is an important contributor to De Beers’ total production, and is second only to Jwaneng in volume. Located in central Botswana, about 240km west of Francistown, Orapa’s kimberlite covers an area of 118 square kilometres at the surface. It has the world’s second largest diamond-producing kimberlite pipe, which is actually made up of two separate pipes (or intrusions) that coalesced near the surface about 93 million years ago. Over its 15-year life, Orapa is expected to produce around 153 million carats from 205 million tonnes of ore.
Canada
De Beers operates two mines in Canada: Snap Lake and Victor and also has an advanced exploration project called 12
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Gahcho Kué. Snap Lake, which was placed into care and maintenance in December 2015, is an underground mine in the Northwest Territories. Victor operates open-pit mining in northern Ontario. Ten per cent of diamonds, by value, from the two mines are made available for sale to local manufacturers as selected by the local governments. These diamonds are extracted from ‘economically viable’ categories to help provide a stable supply for this relatively new industry in Canada. The mines are in environmentally delicate, sparsely populated regions that have been cared for by Aboriginal communities for generations, so De Beers has been careful to combine local traditional ecological knowledge with its leading-edge environmental programmes to create a legacy worthy of diamonds. Since 1995, exploration, environmental studies and other work have been underway, leading to the development of the proposed Gahcho Kué diamond mine. The Gahcho Kué project, located at Kennady Lake about 280km north east of
• De Beers
Yellowknife and 80km south east of the Snap Lake Mine in the Northwest Territories, is a joint venture between De Beers (51 per cent), which is also the operator, and Mountain Province Diamonds Inc. (49 per cent). Exploration so far has indicated that three kimberlite deposits currently have potential to be mined. Full construction began in the winter of 2014/2015, with operations scheduled to begin in the second half of 2016. Over its estimated 13-year life, Gahcho Kué is expected to yield around 54 million carats, on a 100% basis, from around 35 million tonnes of ore. Northern Ontario’s extreme weather conditions make the Victor mine a major challenge. Located in a sub-Arctic region, the winter road that brings supplies and heavy mining equipment to this corner of north eastern Ontario is open only six weeks of the year. Victor, an open pit, is Ontario’s first and only diamond mine and is De Beers’ second in Canada. A remote fly-in/fly-out location in the James Bay Lowlands, the mine is about 90km west of the remote coastal community of
Attawapiskat First Nation. De Beers has signed community agreements with four local First Nations communities and contracts worth more than C$350 million have been awarded to local Aboriginal businesses and joint venture partners since the start of construction and operations. Almost 2.5 million carats from more than 11 million tonnes of ore are expected to be produced over Victor’s remaining five-year life. South Africa De Beers Consolidated Mines (DBCM) is the pioneer of the South African diamond industry and where the De Beers story began. It’s a 74/26 per cent partnership between De Beers and Ponahalo Holdings Limited, a broad-based black economic empowerment operation. Through this partnership, DBCM is representative of a wide range of South African communities, including retired workers, disability groups and leading empowerment business people. DBCM, formed in 1888 in Kimberley, is South Africa’s largest rough diamond producer
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“Jwaneng is the world’s richest diamond mine by value and is on its way to becoming one of a handful of global super-pits” and has more than one million hectares under licence. Today, DBCM has two mining operations, Venetia and Voorspoed, plus surface diamond recovery at Kimberley. Venetia is South Africa’s largest diamond mine, while Voorspoed, one of the country’s newest mines, occasionally turns up large and exotic coloured diamonds. Kimberley has been associated with diamonds since the mid-19th century when mysterious, shiny ‘pebbles’ first appeared in South Africa’s Northern Cape region. The first diamond found in South Africa, called the Eureka, was discovered less than 30 miles away and, within a few years, the mining town of Kimberley had become the centre of Africa’s first diamond rush. The largest rough diamond recovered here was a 93-carat stone that produced a 45-carat gem. Although De Beers mining operations ended here before the millennium, the Group retains a presence in Kimberley through various other businesses, including De Beers Sightholder Sales South Africa, the Ecology Division, 14
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the Microdiamond Laboratory, the Big Hole, the Technical Training Centre, the Pension Fund and Benefit Society functions. Venetia is an open-pit mine and the country’s largest producer of diamonds. The mine is in Limpopo Province in the north east corner of South Africa. Open-pit mining is likely to run until 2021 and preparations are already under way to convert to underground mining, which is expected to extend the life of the mine to 2046 and provide an estimated 94 million carats from 132 million tonnes of ore. The Limpopo Province is one of South Africa’s most economically deprived areas, and De Beers is working with the country’s Department of Agriculture and the Musina municipality on a number of job creation projects. Voorspoed is an open-pit operation and occasionally produces large and exotic coloured diamonds. It’s located about 30km north east of Kroonstad in the Free State Province and all diamond processing is carried out at De Beers’ onsite
• De Beers
facility. When it opened in 2008, Voorspoed became the first major new diamond mine in South Africa in almost two decades. It’s the first of a new generation of 21st century mines that will meet the highest standards in environmental and social performance. The life of mine at Voorspoed is seven years, during which De Beers expect to recover more than four million carats from almost 20 million tonnes of ore. Operations are expected to reach a depth of 360 to 420 metres. Activities at Voorspoed, licensed until 2023, should generate more than R1 billion in salaries, services and local products.
Alluvial and marine mining
Namdeb Holdings is a 50/50 joint venture between De Beers and the Government of the Republic of Namibia. It’s the largest producer of gem quality diamonds in the country. Ninety-five per cent of the diamonds produced are gem quality, averaging the highest per carat value of any diamonds in the world. Established in 1994, Namdeb Holdings Group
is made up of Debmarine Namibia (offshore) and Namdeb Diamond Corporation (on land). It is one of the country’s largest taxpayers and the biggest foreign exchange generator, contributing one in every five Namibian dollars of foreign earnings. It adds more to the country’s GDP than all other mining activities combined. Diamonds have been part of Namibia’s economy for more than 100 years. They were discovered by a railroad worker named Zacharia Lewala near Lüderitz in 1908, a discovery that prompted a diamond rush. The deposits along Namibia’s coast and ancient riverbeds are so rich that early prospectors could sometimes find stones glittering on the sandy surface of valley floors. The job of finding, recovering and processing diamonds is more complex today, but Namibia’s resources of high quality diamonds remain substantial. De Beers and its partners conduct land-based alluvial mining operations in Namibia’s northern and southern coastal regions, and marine-based mining in the Atlantic Ocean off the Namibian coast. Alluvial
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and marine mining activities cover 15,789 square kilometres and include nine mining licences.
Offshore and coastal
The diamonds distributed along Namibia’s coast reflect millions of years of prevailing winds, currents and tides. Two million years ago, natural forces carried stones westward along the ancient course of the Orange River and northward along Namibia’s Atlantic beaches. Namdeb operates a fleet of five motor vessels that can be thought of as floating mines, capable of retrieving diamond-bearing materials from the seabed and processing them to a diamond-rich concentrate. They are, mv Debmar Atlantic, mv Debmar Pacific, mv !Gariep, mv Grand Banks and mv Mafuta. A sixth, exploration and sampling, vessel, the mv Nujuoma named after Namibia’s founding president Sam Nujoma - is currently under construction. In addition, two chartered 16
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vessels, mv Coral Sea and mv Explorer, are also used for exploration and sampling. Unlike land-based mining operations, which include end-oflife planning for environmental restoration, rehabilitation of the seabed and the marine environment occurs naturally over time. De Beers’ environmental team oversees strict guidelines for the vessels – covering everything from how they mine to how they dispose of every piece of waste produced on a vessel. By monitoring changes to the environment over time, they are able to build up a greater knowledge of the natural variability of the environment and the impact of marine mining. Namibia has the richest known marine diamond deposits in the world, estimated at more than 80 million carats. They represent around 65 per cent of Namdeb Holdings’ total diamond production and 90 per cent of its diamond resources. Marine diamond mining now produces more in annual volumes than the country’s land-based diamond mining.
• De Beers
“The winter road that brings supplies and heavy mining equipment to the Victor mine in north eastern Ontario is open only six weeks of the year”
The southern coastal mining area reaches from the mouth of the Orange River, near Oranjemund, north to Chameis Bay, a distance of about 100km. Namdeb is currently mining an area within 15km of the southern limit of its mining licence. Diamonds occur in raised Pleistocene beaches from 25m below mean sea level to more than 30m above. The ancient bed of the Orange River, extending inland about 50km, is also an important source of diamond-bearing gravels. The vigorous sorting action of wind and waves, pushing diamond-bearing gravels north along the coast, has created a natural variation in the grades of ore. Namdeb finds fewer but larger stones in the south and a higher concentration of smaller stones to the north. Operations between Elizabeth Bay and Lüderitz include land-based and offshore operations in a coastal strip known as the surf zone. At Elizabeth Bay, barren, finer-grained sands are removed to mine thin layers of diamond-bearing material.
Land-based mining operations are supplemented with beach and shallow water marine mining. Marine contractors work with divers to mine gravel from the seabed at depths of seven to 30 metres. The gravels, screened and bagged at sea, are taken to a contractors treatment facility near Lüderitz for further processing. Most of the diamonds mined by De Beers are sold following processing, but De Beers has in recent years developed its ‘Forevermark’ range of the highest quality diamonds which it sells through De Beers Diamond Jewellers retail operation. The Group also serves the industrial market through Element Six, a joint venture with Umicore. Element Six develops and produces synthetic diamond materials for industrial use. De Beers’ two R&D operations in South Africa and the United Kingdom are working to ensure that the Group remains a rare diamond itself – a business that has always and will continue to be the leader in its field.
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From data to information
Soldata slope stability monitoring solutions make mines smarter and safer
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t’s hard to imagine an industry more safetyconscious than mining. It’s an inherently dangerous industry, and in open pits and tailings dams, one of the major concerns is slope stability. Accidents can be catastrophic and the risk of collapse increases as mine sites get older, so integrated geotechnical monitoring becomes of paramount value to mining companies. 18
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Managing slope stability is a complex process, so a comprehensive slope monitoring system, providing real-time data from multiple sources around the pit, is a key tool for geotechnical engineers and should represent an integral part of every geotechnical risk assessment plan. Such a system will trigger early warnings of slope failure and other high-risk situations, promote a more holistic understanding of the openpit environment, and provide valuable information to help determine any remedial action required. A comprehensive monitoring solution consists of a broad range of complementary technologies, including satellite, radar, prisms, GPS, piezometers and in-ground geotechnical sensors, each providing its own unique set of information. Unfortunately, these are often run as isolated systems on separate computers by individual users, leading to inefficient and possibly ineffective management and analysis of data. Potential slope failures are most effectively detected by analysis of a combination of data types, so it is important for these to be managed in a single integrated platform. While simply combining different sets of data will not necessarily deliver significant benefits, a proper and comprehensive integration of data has proven to be a game changer. Soldata delivers a comprehensive and integrated monitoring solution that is optimised for each site and customised for each organisation. Its integrated sensor data and information
• Soldata
Soldata delivers a comprehensive and integrated monitoring solution that is optimised for each site and customised for each organisation. Its integrated sensor data and information management platform Geoscope is the backbone of its services and installations, providing bespoke user interfaces and processes to follow the customer’s procedures. management platform Geoscope is the backbone of its services and installations, providing bespoke user interfaces and processes to follow the customer’s procedures. Geoscope integrates any type of data in a single space and allows for remote monitoring of multiple sites at corporate level to deliver an unparalleled degree of standardisation and with it, cost reduction. The deployment of Geoscope creates an efficient situational awareness within the organisation with a common understanding of site status. Resources can be spent on solving issues and making the right decisions, rather than on collecting or managing data. An example of Geoscope at work can be found at Debswana Diamond Company, a major enterprise operating multiple diamond mines in Botswana. Contributing 33% of the country’s GDP and 80% of foreign exchange earnings, maintaining production is critical. To mitigate the risk of collapse, the Debswana Diamond Company chose Soldata to upgrade its monitoring systems and install, then maintain, its Geoscope platform at four locations with consolidation at its headquarters.
Fully operational at the Jwaneng site, this represents 160 million data points per day. Data is processed in real-time to trigger alarms where appropriate, and consolidated to yield reports with a minimum of clicks. The same solution is currently being deployed at Orapa, Letlhakane and Damtshaa mines to create a uniformed monitoring solution at the corporate level with the vision of establishing a global remote monitoring centre in the Gaborone headquarters. Soldata has also pioneered integrated sensor-based monitoring systems for use in tunnelling and underground constructions, developing a unique and proven integrated monitoring platform that major mining companies around the world have now adopted.
SOLDATA GROUP www.soldata-mining.com info@soldata-mining.com •
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Mining’s contributions to Canada The mining industry’s economic contributions to Canada remain strong during the downturn, according to a new report from the Mining Association of Canada
D
espite market volatility and downward pressure on commodity prices, the mining industry continnues to make a healthy contribution to the Canadian economy during the downturn, according to a new report from the Mining Association of Canada (MAC). “The findings of this report serve as a reminder that even during a downturn, the mining industry plays a vital economic role in Canada’s rural and remote communities and in our largest cities,” said Pierre Gratton, President and CEO, MAC. MAC’s latest annual Facts & Figures report revealed the industry directly employed more than 375,000 people in 2014. The mining industry also remains the largest private sector employer of Aboriginal peoples in Canada on a proportional basis, with employment levels poised to increase as the industry develops. The report also found the mining industry is deeply interconnected to other sectors of the Canadian economy, with more than 3,700 companies supplying goods and services to the Canadian mining industry. In 2014, Canada’s mining sector contributed $57 billion to the national GDP, up from $54 billion in 2013, and mining industry exports continued to account for upwards of 20 percent of the Canadian total. The report notes several policy areas that are essential to securing the estimated $140 billion in potential new mining investments that could come to fruition over the next decade in Canada. “A downturn is not a time for governments to lose focus on mining,” added Gratton. “There are actions that can be taken now so that Canada is well positioned to attract new investment and seize growth opportunities when the cycle improves, as it invariably will.” 20
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These policy areas include: • Ensuring the regulatory process is robust and efficient, and includes meaningful consultation with Aboriginal communities; • Addressing the costs of operating in remote and northern Canada where infrastructure is lacking. The introduction of new tax measures and/or a northern-specific fund within the proposed Canada Infrastructure Bank can help facilitate the building of critical infrastructure; • Enhancing funding for Aboriginal skills training initiatives to enable Aboriginal peoples to access wellpaying and highly-skilled jobs in mining; and • Supporting the industry’s innovation priorities to facilitate continuous improvement in the sector’s environmental and health and safety performance. Meanwhile, the Conference Board of Canada is downgrading its 2016 growth forecast for Canada as the economy continues to suffer from the further deterioration in oil prices. The Conference Board’s Canadian Outlook: Winter 2016 estimates that the economy grew by 1.2 per cent in 2015 and is forecast to grow by just 1.7 per cent in 2016. “Although much of the recent weakness was contained to the energy sector, other areas of the economy, such as household spending, exports and manufacturing have failed to pick up the slack,” said Matthew Stewart, Associate Director, National Forecast. “Stronger economic growth will not happen until next year when a recovery in the non-energy sector is finally expected to take hold.” A copy of the MAC report can be downloaded from www.mining.ca/facts-and-figures-2015.
• Mining Association of Canada
Goldcorp’s Eléonore Mine •
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Outlook for mergers and acquisitions A new report from Ernst & Young expects distress and divestments to dominate mining deals in 2016
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inancial distress among mining and metals companies will shape merger and acquisition (M&A) activity in the sector in 2016, with divestments expected to pick up pace on the back of volatility and uncertainty on the timing of a recovery, according to a new EY report. The report, A new normal, or the bottom of the cycle? Mergers, acquisitions and capital raising in mining and metals, 2015 trends and 2016 outlook, notes that after the fifth consecutive year of declining deal volume and values, increasing levels of financial distress will trigger more divestments, spin-offs, joint ventures and possibly hostile takeover bids. The report warns that with a glut of assets, scarcity of capital, selective buyers and market conditions forcing accelerated sales, getting divestment processes right will be paramount to achieving a sale for even the best quality assets. 22
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“A company’s positioning on the cost curve is critical in the current market conditions,” says Lee Downham, transactions advisory leader for EY Global Mining & Metals, “so presenting robust information to potential buyers is pivotal in order to provide confidence that cost reduction and productivity measures are sustainable. “Similarly, anticipating transaction risks such as separation and regulatory and joint venture approvals takes on greater importance in this market. Prospective buyers are thin on the ground and they will reduce valuation, or even walk away, if these issues aren’t adequately addressed.” Global mining and metals deal volume sank in 2015 to its lowest level since at least 2000, with just 358 deals completed. Excluding the $8.7b BHP Billiton demerger of South32, overall deal value globally dropped to $40.0b, with a strong bias to
• M&A outlook
BHP Billiton: Mount Arthur
domestic deals and assets in developed markets. “Perhaps the greatest concern within the industry is that nobody is sure how long the current downturn is going to persist,” says Downham, “and companies cannot sit back and wait for an improvement in market conditions. This is forcing many corporates to downsize portfolios and be pragmatic on valuation, which in turn will create deal activity.” Key transaction trends expected in 2016 include: • More deals will be completed by private capital, but only the best assets will attract their focus and pricing will remain disciplined. • Deferred consideration will grow in popularity due to limited buyers and extreme price uncertainty. • Spin-offs as a means to package and divest assets have increasingly been featured in boardroom discussions and will
remain high on the strategic agenda, but the level of working capital required will see few actually completed. • Increasingly, mergers and joint ventures will be pursued, with the key focus on de-risking and preserving capital. The necessity to de-risk and preserve capital will drive deals to completion. • Ongoing price volatility could see hostile takeover bids from better capitalized entities, but only where the takeover target operates desirable, low-cost assets in stable jurisdictions. “It’s likely there will be material ownership changes across the sector in 2016,” says Downham, “with new players taking on positions, larger players downsizing portfolios and some businesses not surviving.” A full copy of the report is available online at ey.com/mining •
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A flat year for mining Timetric’s Mining Intelligence Center expects 2016 will be a flat year for mining, with little recovery in pricing for gold, copper and iron ore
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n 2015 the price of gold fell 9.5%, copper 25.8% and iron ore a phenomenal 32.9%, but Timetric believes 2016 could be less volatile, with these three commodities forecast to be stable throughout the year. After 2016, moderate growth for copper and iron ore is forecast through to 2020, but the gold price is expected to remain flat at around $1000/oz.
Copper
In 2016 copper should trade at around $5,300/t. Demand will start to match supply as a string of production cuts filter through the supply chain. Global copper consumption is projected to grow at a compound annual growth rate (CAGR) of 2% from 2014 to 2020 to reach 24.7Mt, with China accounting for more than half of the global consumption by 2019. Growth in China is mainly due to the expansion of electricity networks, as well as its rapidly increasing urbanization. In addition, the country is encouraging its industrial sector 24
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to produce advanced products such as cars and consumer electronics, which will further drive the country’s copper demand. In 2016 and then for the rest of the period due to substantial production growth expected from Peru, Zambia and the DRC, global copper mine production is projected to grow at a CAGR of 3.9% over the forecast period, to reach 23.8Mt in 2020.
Iron Ore
Iron ore prices should trade below $50/t throughout 2016, with severe overcapacity afflicting the industry, exacerbated by reduced steel production in China. The big three, Vale, Rio Tinto and BHP Billiton are expected to increase their share of global supply, at the expense of smaller players. Global iron ore consumption is projected to grow at a CAGR of 1.6% over 2015 -2020, to 1.8Bnt in 2020, mainly driven by demand from the Indian and Chinese steel sectors, supported by their construction sector activities.
• Mining forecast
Goldcorp’s Eléonore Mine Continued ramp-ups in previously committed investment in Australia and Brazil, by companies such as BHP Billiton, Rio Tinto and Vale, together with Hancock Prospecting and its Roy Hill project, will continue to drive production growth in the short term.
Gold
Between 2014-2019, global demand for gold is expected to increase at an average annual rate of 4% reaching 5,119t. According to the World Gold Council, China’s annual gold demand is expected to grow by 20%, from 1,132t per annum in 2013 to 1,350t in 2017. The rise in demand for refined gold from Asian countries is mainly expected from its jewelry sector, with factors such as wealthy citizens, low gold prices and a supportive government playing major roles. In the medium term global gold mine production is projected to grow moderately at a compound annual growth rate of 2.5%, reaching 3,353t in 2020. Production is expected to grow
as a result of low-cost operations increasing their production; producing higher ore grades and increasing production rates aimed at lowering the average production cost. In Russia, gold production is projected to increase in the medium term in 2018, with the development of new upcoming mines scheduled to be completed by 2017, including Kinross’ Dvoinoye mine (7t); Polyus Gold’s Natalka mine (15t); and Norlisk Nickel’s Bystrinskoye mine (6t). Similarly, Canada is expected to take over as the fourthlargest gold producer, as huge production is expected to commence from its gold mines - Detour Gold’s Detour Lakes mine, Goldcorp’s Eléonore mine and Newgold’s Blackwater mine - by 2018. However, long-term growth is expected to enhance gradually, as exploration and programs on low-cost expansion are likely to be in focus for attaining low operating costs and improving return on investment.
http://www.mining-ic.com •
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Adrok
The virtual borehole Providing less boring, innovative exploration solutions for the mining industry
A
sk a miner involved in exploration to write a wish list, and near the top would be a better way to identify mineral deposits, without having to drill a dozen holes a mile deep to get a hit. The most successful miners tend to be those who keep their finger on the pulse of innovative technology, and some of them have already discovered Adrok, a cutting edge service technology company headquartered in Edinburgh, Scotland, with exclusive global patents for atomic dielectric resonance (ADR) imaging – a new technology specially developed for use in the mining, oil & gas and civil engineering sectors. Techniques that reduce exploration and production costs deliver competitive advantage to the early adopters, so innovation is a major source of value creation for natural 26
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resource companies. Adrok uses ADR technology to supply pioneering geophysical services for the location, identification, mapping and exploration of subsurface natural resources. The ADR scanner penetrates both soft and hard rock up to a depth of 5km. Being lightweight, field-rugged and portable, it’s cheap and easy to move around, so it can be used equally easily in any terrain from any kind of vehicle. The ADR scanner can improve operational efficiency by massively reducing the cost of exploratory borehole drilling. Its environmental credentials are first class, too, as it causes no damage to the subsurface and it’s a very low energy technology (using less energy than a smartphone). For the technically minded, Adrok’s technology has been developed to provide data outputs relating to: (i) stratigraphy (such as seismic imagery) (ii) information on rock characteristics (like well logs) and (iii) rock petrography (including cores). It measures subsurface dielectric permittivity, and spectral
• Adrok
(energy, frequency and phase) and material resonance, from ground level, without physically boring the ground. These electrical measurements produce what Adrok has dubbed “the virtual borehole”. For the layman, the scanner sends a narrow beam of energy into the ground using micro and radio waves. Different substances interact with the energy in different ways, so when the waves are reflected back they are analysed to identify the types of rock they have passed through. Adrok’s technology can be used onshore and offshore, in extreme environments and locations where traditional techniques cannot be applied. The company has recently won a multi-million pound deal to develop a subsea Adrok ADR scanner to be deployed from an ROV in the North Sea. This solution is particularly attractive for exploration companies planning to carry out subsea mining operations, who need to find innovative solutions at a sustainable cost, including technologies to pinpoint exploration targets, rank prospects
and extract the natural resources from the ground. The 200 projects that Adrok has carried out around the world have allowed a variety of operators to enhance their mining production, locate deeper minerals and identify the limits of mineral veins. Furthermore, Adrok’s technology is always subject to continuous improvement and is now able to measure temperature, a feature that brings additional capabilities and options for other energy sources (eg, geothermal). “Several of the most exceptional discoveries were not just the result of great fieldwork and exploration strategy, but were also attributable to bold new ideas or technology deployment that led explorers to new frontiers,” says Adrok CEO Gordon Stove. “The Adrok scanner is portable enough to be used in all terrains on any transport – be it desert, jungle, or mountain – on a boat, plane, helicopter or truck. Our ambition is to change the way our industry explores for its resources – even water. We aim to be the must-use scanner for all geophysical explorations.” •
WORLD MINING MAGAZINE www.ogsmag.com
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Can you reduce reagent consumption 5% per ton? Yes, with Pavilion8ÂŽ. Control and optimization of the flotation process Pavilion8 MPC flotation solution directly controls product quality and waste losses, drives recovery and line capacity with accurate dynamic processing models and provides real-time visibility of real-time production performance.
Discover how to take operations to the next level with a solution from Pavilion.
Discover.rockwellautomation.com/Mining Pavilion8 is a registered trademark of Rockwell Automation, Inc. Copyright Š 2015 Rockwell Automation, Inc. All Rights Reserved. AD2015-48-US
BY BOAT. BY AIRCRAFT.
BY TRUCK. BY HELICOPTER.
ON MOUNTAINS. DESERTS. ICY WASTES AND JUNGLE. THROUGH ROCK. LIQUID. AIR. TO A MUCH GREATER DEPTH. OUR VIRTUAL BORING MEANS LESS NEED FOR EXPLORATORY BOREHOLES. SO WHATEVER WE HUNT FOR. WHEREVER WE GO.
IT’S LESS BORING
WITH ADROK
FURTHER, DEEPER, FASTER, GREENER, CHEAPER.
THE ADROK DEEP SUBSURFACE EXPLORER.
Our ambition is simple - to fundamentally change the way our industry explores for its resources. Because we believe our technology is a game changer. We invented the innovative Atomic Dielectric Resonance (ADR) scanner - a breakthrough in the exploration industry. Sending a narrow beam of energy into the ground using micro and radio waves, the beam reflected back has a fingerprint that positively identifies and maps hydrocarbons and minerals. This reduces the need for drilling lots of exploratory boreholes and can SAVE UP TO 90% OF THE COST of drilling projects. Our exploration projects have taken us around the globe in search of oil, gas, water, coal and other minerals. The company has expanded from our head office in Edinburgh in the UK to Houston in the US, Canada and Australia and we are continuing to grow our business worldwide. If you would like to talk to us about we can make your exploration projects greener, cheaper, faster, deeper and better please contact us at revolution@adrokgroup.com or visit www.adrokgroup.com
ADROKGROUP.COM
Expander system The long term, cost-effective solution to pivot wear
A
nybody who has owned or operated equipment will be aware of the problem of pivot wear. When a straight pin is installed in a pivot, no matter how close the initial tolerance is, there’s bound to be some movement between the pin and the lug ear hole. Over time, this movement causes wear, which commonly turns what was a round hole slightly oblong. Eventually, this pivot wear will compromise the functionality and safety of the equipment, necessitating repair. 30
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In the past, the only repair method available was welding and line boring to bring the hole in the pivot lug back to its original diameter and tolerance. The problem with welding and line boring, beyond the high cost and significant downtime, is that it’s only a temporary solution. The wear problem will repeat itself, meaning another weld and line bore will be required at some point. This is a pattern that will continue for the life of the machine.
“When you torque the fasteners, the tension washers push the expansion sleeves up the tapered part of the pin, thereby locking the system into the lug ears and eliminating the movement that causes pivot wear. Problem solved – once and for all.” The Expander® System is an alternative repair solution for pivot wear. It’s usually cheaper and faster than welding and line boring, but most importantly, it’s a permanent solution – not a stopgap measure. It’s a one-time repair that essentially lasts for
• Expander System
Compared to welding and line boring – the traditional method of dealing with pivot wear – Expander System is usually cheaper, faster and can be installed in the field, which minimizes downtime. More importantly, it’s also a permanent fix designed to last for the life of the machine.
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No More Line Boring
®
The Expander®System installs directly into worn pivots without the need for costly welding and line boring – even if holes are worn oval. Each assembly is designed to fit your specific machine make, model and position. The assembly pin-body is tapered at both ends, and when the fasteners are tightened, the tension washers force the expansion sleeves into the worn lug holes. The sleeves conform with the wear pattern to permanently eliminate the wear problem, so you get a perfect fit every time. Stop endlessly replacing pins, and opt for a long-term solution that will expand your bottom line – The Expander®System.
See how it works
Contact Expander today to find the perfect-size pins for your mining equipment.
www.ExpanderSystem.com The Global Leader in Pivot Engineering
Sweden: Expander System Sweden AB +46-(0)120-299 00
Germany: Expander Deutschland GmbH +49-(0) 611-977 74-306
USA: Expander Americas Inc. +1-888-935-3884
info@ExpanderSystem.com www.ExpanderSystem.com
• Expander System
Expander System eliminates pivot wear by locking in place a tapered pin through the use of slotted expansion sleeves.
the life of the machine. “The standard expansion system consists of an assembly including a pin body that’s tapered at both ends, two slotted expansion sleeves, two tension washers and two fasteners,” explained company President Roger Svensson. “When you torque the fasteners, the tension washers push the expansion sleeves up the tapered part of the pin, thereby locking the system into the lug ears and eliminating the movement that causes pivot wear. Problem solved – once and for all.”
“To demonstrate our confidence in the product, we offer a 10-year, 10,000-hour warranty” Svensson founded Expander System in 1986. Soon after, the company was awarded the Nobel Prize for Innovation and Development. Expander System has been granted numerous
patents in the years since, as it continually works to improve the product. “To demonstrate our confidence in the product, we offer a 10-year, 10,000-hour warranty on the locking mechanism of Expander System,” says Svensson. “But based on years of field testing and results from end users, we fully expect it to last much longer than 10,000 hours, even in the most abrasive environments.” The Expander System is usually sold as an aftermarket part, but major machine manufacturers also use it as a factory “firstfit” OEM part for construction, mining, forestry and offshore oil and gas rig equipment. The products fit, or can be custommade to fit, every machine in the world – from the smallest to the largest, and any make, model or manufacturer.
For more information, a dealer locator or ordering instructions, visit www.ExpanderSystem.com •
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Monthly news & features •
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Asset tracking and fleet management Land, Sea, Air
High quality solutions to help you run an efficient fleet operation
Wide range of hardware
Real time fleet visibility
Improve fuel economy
Enhanced Driver Safety
Planned maintenance
Cellular and satellite tracking devices collect information even in remote areas
Track vehicles, trailers and plant
Cross-check mileage with fuel card data, or integrate with on-board computer
Monitor poor driving behaviour. Receive panic alarms in an emergency
Receive alerts when service is due and track expenditure
Insights delivered to your inbox Extensive range of reports and graphs
CONTACT US TO ARRANGE A NO-OBLIGATION DEMO sales@terramarnetworks.com | www.terramarnetworks.com
• News & features
News in Brief Horizonte Minerals has been
awarded four new concession areas adjacent to its Araguaia nickel project, giving it a total of 16 active concessions measuring over 110,000 hectares. The company currently has an additional three concessions with a total area of 5,998 hectares under application. The Araguaia nickel project is being developed as the next major nickel project in Brazil, with targeted production by 2018.
* * *
Commercial Metals Company
has received a new source air permit from the Oklahoma Department of Environmental Quality, authorising the construction of a technologically advanced micro mill in Durant, Oklahoma. CMC can now begin construction to prepare for installation of the mill equipment, which was ordered late last year. Commissioning of the micro mill is expected to occur during the fall of 2017. * * *
Sandvik, the engineering group in
tooling for metal cutting, mining and construction, has chosen digital technology services company Mindtree to design, set up and manage a geography hub that will serve to consolidate and streamline Sandvik’s global operations. Mindtree and Sandvik will work together on building efficiencies and economies-of-scale across Sandvik’s global organization, providing the scale necessary to build, operate and reinforce its service management capabilities. * * *
Gerald Metals and Shanghai Pengxin Investment Co have formed a joint venture to work jointly in procuring, producing and marketing raw and refined copper and cobalt materials. Gerald will procure the optimal supply of copper and cobalt concentrates necessary to support Pengxin as it expands its existing production capabilities. Pengxin is expected to increase its annual copper cathode production to as much as 7,000 tons of cobalt metal annually when the expansion is completed.
Tahoe Resources to acquire Lake Shore Gold
T
ahoe Resources Inc and Lake Shore Gold Corp have entered into a definitive agreement under which Tahoe will acquire all of the issued and outstanding shares of Lake Shore Gold. Under the terms of the agreement, all of the Lake Shore Gold issued and outstanding common shares will be exchanged on the basis of 0.1467 of a Tahoe common share per each Lake Shore Gold common share. Upon completion of the transaction, existing Tahoe and Lake Shore Gold shareholders will own approximately 74% and 26% of the pro forma company, respectively, on a fully-diluted in-themoney basis. Lake Shore Gold operates the low-cost Timmins West and Bell Creek mines in Timmins, Ontario, Canada. Together with Tahoe’s world class Escobal mine in Guatemala and its low-cost La Arena and Shahuindo mines in Peru, the combined company will become a premier Americas-based precious metals producer. The combined company will have a strong diversified producing platform anchored by Tahoe’s Escobal mine, one of the world’s largest and highest grade silver mines, along with its low-cost growing operations in Peru and Ontario. Kevin McArthur, Executive Chair of Tahoe, said, “The combination with Lake Shore Gold enhances Tahoe’s position as the new leader in precious metals by adding another low-cost operation in Timmins, one of the most prolific gold camps in the world.
We are impressed by the long-term presence and see tremendous regional opportunities going forward. We look forward to continuing the strong relationships that Lake Shore Gold has fostered in Timmins with local stakeholders. Finally, I am very pleased to welcome Alan Moon, the current Chair of Lake Shore Gold, to our board of directors upon completion of the transaction, as well as Tony Makuch, the current CEO of Lake Shore Gold, to Tahoe’s management team as president of Canadian operations.” Tony Makuch, President and CEO of Lake Shore Gold, added, “The combination with Tahoe represents a unique opportunity for our shareholders to gain exposure to a highquality portfolio of long life producing mines with substantial mineral reserves. Today’s announcement of an initial resource at our 144 Gap Deposit is a perfect example of the long-term growth potential of our Timmins portfolio. Tahoe’s strong balance sheet and superior cash generating capabilities will provide Lake Shore Gold with the financial resources to unlock the enormous growth potential of our asset base.” The arrangement agreement has been unanimously approved by the boards of directors of Tahoe and Lake Shore Gold, and each board recommends that their respective shareholders vote in favour of the transaction. It is anticipated that both shareholder meetings and closing of the transaction will take place in early April 2016. •
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Products and Services for the Global Mining Industry
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HDPE Pipe and Fittings and fusion equipment
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Valve Actuation
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Approved Manufacturer List and in house testing facility ■
Global Supply Contract capability
WOLSELEYINDUSTRIALGROUP.COM ©2015 Wolseley. All Rights Reserved.
Rugged Energy & Data Transmission Systems Motor Driven Reels • Monospiral and Level-Wind configurations • Rugged and dependable magnetic coupler for dusty environments
Cable Festoon • Corrosion-resistant, long-life rollers; precision sealed bearings • Systems customized for the application • Preassembled option, for easy installation
Conductix-Wampfler has one critical mission: To keep your bulk material handling operations running 24 / 7 / 365. You need proven, worryfree energy solutions - and Conductix-Wampfler has them. Our systems provide reliable electric power and water to bucket wheel excavators, face shovels, drill rigs, spreaders, stacker/reclaimers, barge and ship loaders/unloaders, bulk conveyors, tripper systems. Conductix-Wampfler systems are rugged, low maintenance, and time-tested in tough, dusty environments. All products are backed by the largest sales and service network worldwide! www.conductix.com
Cable Chain • Rugged design for demanding environments • Long operating life • Custom-configured
Proven Drying, Cooling & Calcining Systems for the Mining and Minerals Industries
GEA offers a complete range of proven industrial drying and thermal processing systems for the Mining and Minerals Industries. Working with GEA means having a solid partnership every step of the way, from process testing and design throughout project execution to the start-up and operation of your plant. With thousands of references worldwide, we maintain our leading position by focusing on product quality, system reliability, energy savings and emission control.
GEA Phone: +45 21478382 Email: chemical@gea.com www.gea.com
engineering for a better world
GEA Group
• News & features
Update on RNC acquisition of Salt Lake Mining
O
n 1 February this year, Canadian miner Royal Nickel Corporation agreed to acquire a 67% interest in Western Australian nickel-gold producer Salt Lake Mining Pty Ltd for 32.5 million RNC common shares plus C$2.5 million in cash. The acquisition is expected to close in March 2016. SLM is a private company whose main asset is a 100% interest in the Beta Hunt Mine, a low-cost nickel and gold producer located in the prolific Kambalda mining district of Western Australia. SLM acquired Beta Hunt for $10 million in 2013, resuming nickel production in 2014 and gold production at the end of 2015. Nickel ore is delivered to BHP Billiton’s Kambalda concentrator, while gold is treated at St Ives, owned by
Gold Fields of South Africa. RNC has now announced that SLM has sold its non-core 100%-owned Widgiemooltha and Carr Boyd exploration projects for a cash payment of A$1.6 million plus a future contingent payment of A$0.6 million. The announcement says that all conditions of the sale have been satisfied and funds deposited in SLM’s bank account, but does not identify the purchaser. The sale has a significant cash flow impact for SLM. The combination of cost savings and additional cash will give it the flexibility to continue to develop the Beta Hunt gold resource, in pursuit of a target to generate sustained annual production in excess of 45 koz of gold when mining in the Western Flanks zone begins in the second half of 2016.
“RNC supports the prudent decision to divest of non-core exploration projects by SLM at this time,” said Mark Selby, President and CEO of RNC. “This transaction will put SLM in a stronger position to focus on the continued development of the Beta Hunt Mine.” Royal Nickel Corporation is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and precious metal properties. RNC’s principal asset is the Dumont Nickel Project in the Abitibi mining camp in Quebec. It also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project in northern Quebec.
Honeywell Process Solutions
enabling plant managers, supervisors and others to stay connected to their enterprise – wherever they are in the world. The app brings relevant metrics and the tools to resolve issues directly to mobile devices, helping to improve efficiency and safety. Honeywell recently conducted a customer mobility strategy survey
which identified that the top three operational areas that generate the most interest in mobility are processing facilities, field service and logistics. The survey also revealed that customers are investing in mobility in three key areas: information visibility, improved field service workflow and safety compliance.
(HPS) has launched a new app providing plant managers immediate notifications and real-time plant performance data and analytics direct to their smartphones. Honeywell Pulse™, part of Honeywell’s Industrial Internet of Things network, is the company’s newest technology
•
WORLD MINING MAGAZINE www.ogsmag.com
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Level Measurement Difficulties? We Can Help.
Experience maintenance free operation with HAWK’s advanced measurement technologies! Our sales and support team are here to help. Contact us to learn how we can provide solutions for your level measurement needs at 978-304-3000 or info@hawkmeasure.com.
Hawk Measurement I 96 Glenn Street, Lawrence, MA 01843, USA I www.hawkmeasure.com
• News & features
S
SNC-Lavalin awarded contract by Emirates Global Aluminium
NC-Lavalin has been awarded an engineering services contract by Emirates Global Aluminium (EGA) to provide operations support services to EGA’s two aluminium smelters in the United Arab Emirates – Emirates Aluminium (EMAL) and Dubai Aluminium (DUBAL). SNC-Lavalin will provide engineering packages and manpower services to DUBAL and engineering and project management services to EMAL Engineering to ensure optimal delivery of a portfolio of projects and operations support. The services will cover all
engineering disciplines and project management areas. Under the new agreement, all engineering work and support services will be executed by SNC-Lavalin employees in the Middle East and by its aluminium smelting and power specialists in Canada and the United States. The mandate covers a period of three years, ending in July 2018. “We have partnered with EGA and its operating subsidiaries for 12 years, having delivered major expansion projects to DUBAL and subsequently the EMAL Smelter Complex in Abu
Dhabi (Phases I and II),” said José J. Suárez, president, mining & metallurgy. “We are now extending our partnership and will bring additional value to DUBAL’s energy optimization projects, where we are replacing existing pots with more energy-efficient ones,” added Etienne Cabanes, senior vicepresident & regional manager, Europe, Middle East & North Africa, Mining & Metallurgy. “Our focus will be on unlocking additional value through our services and delivering quality work with the highest standards in health and safety.”
Orvana announces new mineral resources at El Valle
O
rvana Minerals has identified a new oxides zone at its El Valle gold-copper mine in northern
Spain. The Villar Zone was recently discovered following drilling extended to test for mineralization that may have been shadowed by the existing oxides A107 Zone containing mineral reserve and resource estimates. A total of 11 drill holes totalling 1,223 meters were completed with 10 out of the 11 holes intersecting mineralization.
indicated resources at 5.9 g/t gold for 17,785 gold ounces and 14,969 tonnes of inferred resources at 3.1 g/t gold for 1,506 gold ounces. The Villar Zone is within the existing mining leases and will not require additional permitting if designs and financial modelling shows that reserves can be generated in this area. Orvana is also pursuing exploration activities, such as mapping, sampling and geophysics on certain investigation permit concessions in the vicinity of El Valle.
The drilling was part of an exploration program that commenced in 2015 and is continuing through 2016 depending on underground site access and scheduling priorities. Drill hole spacing in the Villar Zone ranges from 15m to 40m. Based on this spacing and the confidence in the sampling, the mineral resource estimate includes measured, indicated and inferred classifications. The mineral resource estimate shows 94,448 tonnes of measured and •
WORLD MINING MAGAZINE www.ogsmag.com
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Heavy Duty Heating and Air Conditioning systems built for maximum operator comfort and safety! Used on Extreme Machines and Mining Equipment. Built to perform in all extreme climate conditions!
Whatever the weather... our A/C systems keep your crew cool in summer, warm in winter!
POLAR P-1332/332 SPLIT AC SYSTEM
POLAR P-5070 ROOFTOP A/C ALL ELECTRIC
High Capacity Split System with ceiling mounted in-cab evaporator unit and remote mounted electric driven compressor/condenser unit. This system is suitable for Shovels, Drills, Safety Shelters or small Office Trailers found in mines and job sites around the world.
High Capacity A/C used in the oil field, Mining, Military, Cranes and off-road Heavy Equipment Applications. This unit is designed for rugged environments and extreme temperature conditions found in mines and job sites around the world. •
Cooling Capacity: 24,000 BTU
POLAR P-9977 ROOFTOP A/C Build to last, the P-9977 is designed to eliminate operator fatigue by creating a comfortable cab environment that is dust free and temperature controlled. It requires very little maintenance because of its robust design and heavy duty construction. •
Cooling Capacity: 20,000 - over 30,000 BTU
(depending on compressor drive)
• Cooling Capacity: 45,000 BTU
•
• Heating Capacity: Electric Elements 3.3 kw
Heating Capacity: 3.3 kw Electric Heat Elements
•
• Works in ambient temperatures of 50OC / 122OF
Works in ambient temperatures of 50OC / 122OF
•
Works in ambient temperatures of 50OC / 122OF
•
• Electrical Options: 200—240VAC 1 or 3 ph, 50 or 60Hz, 480VAC 3ph, 50/60 Hz
Electrical Options: 200—240VAC 1 or 3 ph, 50 or 60Hz, 480VAC 3ph, 50/60 Hz
•
•
Corrosion resistant, rugged construction
Options: • 12 or 24vdc • Integrated hydraulic drive compressor making the P-9977 a fully self contained unit.
•
Options: RESPA pressurization/ recirculation filtration
•
Corrosion resistant, rugged construction
•
Options: RESPA pressurization/ recirculation filtration
•
Heating Capacity: 16,000 - 40,000 BTU
(please call for options)
• Engine or electric driven compressor configurations • Glycol or Polar Reverse Cycle heat • RESPA pressurization / recirculation filtration
POLAR MOBILITY RESEARCH LTD. Calgary, Alberta Canada Toll Free 1.800.309.8155 • Phone 403.279.3633
info@polarmobility.com | www.polarmobility.com
Do you require intrinsically safe or NON Electric Air Conditioning? Contact us to learn more about our POLAR VORTEX line of Heavy Duty Heater/ Air Conditioning Systems.
• News & features
Kootenay and Northair to combine Mexican silver assets
K
ootenay Silver Inc. and Northair Silver Corp. have entered into a definitive agreement under which Kootenay will acquire all of the issued and outstanding common shares of Northair. The agreement replaces the binding letter agreement previously announced on 13 January 2016. Northair shareholders will receive, for each common share of Northair held, 0.35 common shares of Kootenay, plus 0.15 of a tradable warrant to purchase Kootenay common shares at an exercise price of $0.55 for a period of five years from closing. Upon completion of the transaction, Northair will become a wholly-owned subsidiary of Kootenay, and former shareholders of Northair will hold
approximately 40% of the shares of Kootenay on an outstanding shares basis. The arrangement will require approval of at least two-thirds of the votes cast by Northair shareholders and optionholders voting together as a single class at a special meeting of Northair, which is expected to occur on 14 April 2016. The deal will consolidate some high profile silver resources in Mexico – a unique portfolio of high-quality resource-development staged assets headlined by Kootenay’s Promontorio and La Negra projects and Northair’s La Cigarra project. “This is a well-planned consolidation that has the potential to provide both companies and their shareholders with far reaching benefits well into the
future,” said Kootenay President and CEO James McDonald. “Combining the Promontorio, La Negra and La Cigarra projects will immediately position Kootenay as one of Mexico’s preeminent, asset based, silver development companies. Moreover, the support of a newly invigorated treasury and growth plan will allow us to prioritize the expedited development of both the La Negra and La Cigarra projects, as we continue to advance our generative project portfolio and pursue further strategic opportunities in the sector.” Both Kootenay and Northair boards of directors recommend that their shareholders and option-holders vote in favour of the arrangement.
Atlas Copco has developed a
load and engine RPM, resulting in an estimated fuel saving of up to 15% compared to the FlexiROC D60. “What we have in the SmartROC D60 is robustness and intelligence working together to achieve optimum performance and cost efficiency,” says Mike Wentworth, product manager for Atlas Copco in the US. “The result is that the owner gets more holes per shift and consistently high productivity.”
drill rig that is robust enough and smart enough to tackle aggregate and limestone quarrying, as well as surface mining and construction drilling. SmartROC D60 is a highly versatile down-the-hole (DTH) rig that can be used in a wide variety of applications and challenging drilling conditions. Another major advantage is the low fuel consumption, achieved through intelligent control of the compressor •
WORLD MINING MAGAZINE www.ogsmag.com
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ARTS CULTURE & PEOPLE
bne November 2015
Let me introduce you to QuERI How can we use QuERI? The mining and extractive industry faces challenges in light of current economic conditions worldwide, QuERI’s integrated approach to demand for primary products from coal to mining support activities and investment demand can provide the insights that only a globally integrated model of industrial activity can provide. Let us help with your forecasting and strategic insight needs. Drill down to the underlying factors driving demand for primary products. Let us develop a unique plan to provide the type of data useful for companies that need short, medium and long-term data in support of costly capital investments. Only QuERI’s integrated global model provides the links between industrial activity in one country and market demand (intermediate and final demand separately forecast) and international trade in commodities. ISIC3 Aggregates Coal Mining Metal Ore Mining Metal Ore Mining Metal Ore Mining Nonmetallic Minerals Mining Nonmetallic Minerals Mining Nonmetallic Minerals Mining Mining support activities Mining support activities Refined petroleum products Coke oven products Coke oven products Coke oven products Refined petroleum products Basic chemicals, except fertilizers Machinery for mining and construction Machinery for mining and construction
What does QuERI include? Standard packages offer access to complete databases covering more than 400 industries for 72 countries with updates quarterly. Databases cover production, market demand (intermediate, consumption, investment, and governments), imports and exports, prices, employment, and productivity. Given the complexity of the mining and extractive industry, specially developed company unique packages can be developed to provide more insightful analysis including drilling down to likely demand for key industry groups for single commodities using the integrated input-output models included in the forecasting model. Let us craft a package that meets your needs for both data and consulting.
NAICS 6 Detail Coal mining Iron ore mining Copper, nickel, lead and zinc mining Gold, silver and other metal ore mining Stone mining and quarrying Sand, gravel, clay and ceramic and refractory minerals mining and quarrying Other nonmetallic mineral mining and quarrying Support activities for oil and gas operations Support activities for other mining Petroleum refineries Asphalt paving mixture and block manufacturing Asphalt shingle and coating materials manufacturing Petroleum lubricating oil and grease manufacturing All other petroleum and coal products manufacturing Petrochemical manufacturing Construction machinery manufacturing Mining and oil and gas field machinery manufacturing
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• News & features
Richmont increases mineral reserves R
ichmont Mines has announced an increase of resources for year ending 31 December 2015 at its Island Gold Mine in Ontario, and Beaufor Mine in Quebec. Island Gold added 378,000 ounces to reserves (net of depletion of approximately 55,000 production ounces), an increase of 206% with average reserve grades increasing by 29% to 8.26 g/t. The Beaufor Mine reported a 95% increase in mineral reserves to 63,850 gold ounces (net of depletion) at a mineral reserve grade of 6.57 g/t. “We are very pleased with the success of our delineation drilling program at Island Gold where we converted nearly 80% of the resources from the Lower C Zone that were included in the 2015 preliminary economic assessment (“PEA”) to reserves, significantly derisking this core operation,” said CEO Renaud Adams. “We now have more than seven years
of mine life based on reserves ahead of us, along with significant exploration potential both laterally and at depth,” he continued. “In 2016 we will be focused on converting the remaining PEA resources and completing our 2015 exploration
Island Gold and the Beaufor mines, a solid balance sheet, and an experienced management team, Richmont is in its strongest position in its 25 year history as gold producer.” “The success of our drilling program has increased our reserve inventory by almost 200% to over 625,000 ounces with reserve growth being reported from both our operations,” said Daniel Adam, vice-president, exploration. “In 2016, I look forward to ongoing success from our exploration programs, especially the deep directional drilling program at Island Gold where we expect that we will continue to confirm the high-grade potential of this deposit below the 1,000 metre level. At the Beaufor Mine we successfully converted ounces to reserves in the Q Zone and are confident that this deposit has the potential for additional reserve and resource growth as well as mine life extension.’’
“The success of our drilling program has increased our reserve inventory by almost 200 per cent” programs with a view to adding nearmine resources to the east and west of the PEA deposit area and confirming the high grade extension at depth. With reserve growth reported from both
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• News & features
ABB drive systems chosen for Toquepala Copper Mine ABB
is to provide variablespeed drive systems to the Toquepala copper mine as part of Southern Peru Copper Corporation’s (SPCC) brownfield optimization and expansion projects. The expansion project aims to double the mine’s concentrator milling capacity from 60,000 to 120,000 tons per day. ABB is supplying two 25-foot gearless mill drive systems (GMD) of 15MW and two complete high pressure grinding rolls (HPGR) drive systems of 2,650 kW. By removing critical mechanical components like ring-gear, pinion and gearbox, the GMD systems are about 4 per cent more energy efficient than traditional fixed-speed mill drives. The HPGR drive systems feature RollXtend™ technology, aimed at extending the rollers’ overall life time and ease maintenance actions by application-specific control features.
GMDs. ABB was chosen for its stateof-the-art, application-specific drive solutions with market unique features, and for its expertise in grinding applications, with 125 GMDs and 63 HPGR references worldwide, and a large number of installed or ordered units in Peru, including Toquepala. Another key factor is the strong service team based within the country providing support to customers. “With a long track record of working with SPCC, ABB is very pleased to be continuing its successful partnership in helping the customer improve mining efficiency and productivity,” said Roger Bailey, managing director of ABB’s process industries business. “The robust solution being supplied combined with our best-in-class service offering, will provide the highest throughput, reliability and availability for the copper mine.”
For the optimization project, ABB is supplying an additional complete HPGR drive system with the same
“The robust solution being supplied will provide the highest throughput, reliability and availability for the copper mine” ratings and characteristics as for the expansion. This is the first time Grupo Mexico, SPCC’s holding company, will use •
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WATERFALL SECURITY Solutions
protecting the connected mine Andrew Ginter, vice president of industrial security at Waterfall Security Solutions, tells Martin Ashcroft how automated mines can protect themselves from the increasing threat of cyber attacks •
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Y
ou’re working underground when you hear the alarm. The ventilation system has failed. You’ll have to evacuate. It might come back on in a few minutes but you don’t take chances underground. You head for the surface, grumbling. In the control room, the operator is surrounded by screens and keyboards, but try as he might, he can’t get the ventilation system to start up again. He has no choice. It’s everybody out. What he doesn’t (and may never) know, is that his computers are not responding because he’s no longer controlling them. Someone else is doing that, half a world away, thinking about what he will do with the money he makes in the market after disrupting this mine’s production plans. It may sound like a plot from a James Bond film, but the risks are real and the mining industry is beginning to engage experts like Waterfall Security Solutions to protect them from this kind of attack.
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• Waterfall Security Solutions that enables all our mines, ports and rail systems to be operated from a single location,” and that the company is “the world’s largest owner and operator of autonomous haulage system trucks.” In September last year the company declared that its autonomous truck fleet was 12 per cent more productive than its manned fleet. In the same statement, Rio also said that the use of autonomous drills had resulted in an operational saving of 8 per cent. Now, with AutoHaul, Rio has introduced the world’s first fully-autonomous heavy haul, long distance railway system. The average mining company is not nearly as advanced as this, but internet connectivity is a growing trend. There’s no doubting the efficiency improvements it brings, but it may also attract the attention of international criminals. Every time a mine announces a new connectivity programme, unless it has the appropriate level of protection, it is saying, “here I am, come and hack me.” “Almost every industry is becoming more heavily automated, using more and more standard computing and networking components,” says Andrew Ginter, VP industrial security at Waterfall Security Solutions. “Every time you do something like that it increases your vulnerability. The Industrial Internet of Things (IIOT) is coming to mines. It’s the latest buzz word, along with ‘Cloud’.”
Opportunities
I
n its relentless pursuit of improvements in safety and efficiency, industry inevitably turns to the latest technology. In the 21st century, this is internet connectivity. The philosophy is simple. The more data we get, the more control we have. The more we can measure, the more we can improve. And so it goes. Canadian miner Goldcorp has deployed a solution from Cisco Systems to achieve the insight and control it wanted across its Eléonore mine. “Having a proper tracking system gives us the ability to support ventilation on demand,” said Pascal Morin, Manager, Technology and Communications at Goldcorp. “At any time and in every area, it allows us to send the exact volume of air where we need it, when we need it.” You see where I’m coming from? Rio Tinto is another company setting the pace towards ever more connectivity with its Mine of the Future programme. In an essay on the subject on its corporate website, Rio proclaims that its Operations Centre in Perth is “a state-of-the-art facility
Automation technology is a slow growth market, he explains, so when something new comes along, like IIoT or the Cloud, everyone jumps on it. “IIoT is just a continuation of the trend towards more computers. The opportunity now is in what is being automated. The most modern mines are now using driverless vehicles. This is a new opportunity for automation. Cloud is another one. You put your data up there and analyse it. Seeing the data remotely and diagnosing problems remotely becomes a new service industry. Vendors rush to set up services where they reach into their customers’ networks, gather all kinds of data and analyse it, then send their conclusions back and get paid for it. This is a new kind of business opportunity that didn’t exist before.” You’ve probably seen some of the advertising. ‘What if you could get complete visibility and control over everything that’s going on at every site in real time?’ they say. And what if this makes it possible for somebody else to do the same? is something they don’t say. A business opportunity for miners and their suppliers is also an opportunity for criminals. “The trade off between increased connectivity and increased vulnerability is one that businesses in many industries are failing to take into account,” says Ginter. “They see the benefits more clearly than they see the risks.” While reports of stolen bank details and credit card numbers are becoming commonplace on our TV news, we don’t hear so much about cyber attacks on infrastructure or industrial assets, but this doesn’t mean they’re not happening. A multinational industry giant with customers all over the world will naturally be reluctant to admit voluntarily that its security has been breached. Furthermore, attackers who don’t want to be discovered will disguise their interventions so their victims don’t know they have been attacked. “This is why we don’t hear about attacks,” confirms Ginter, “but if you look at the surveys, 70 to 80 per cent of people say they have been compromised in
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• Waterfall Security Solutions
“If the operator can control the mine by pressing buttons, anyone who takes over those computers can do the same”
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“If someone attacks the server in the vendor’s headquarters, they could take control of your trucks” the last 12 months and an even greater number expect to be compromised next year.”
The risk is everywhere
I ask if the greater risk is in remote operations rather than simply monitoring and data analysis. But I should have known. The risk is everywhere. “Think how monitoring works,” says Ginter. “When you gather all of your information into a database, it just sits there until you ask it to do something. Even with monitoring, you have to send commands to the database. Now people are sending commands from their central Cloud monitoring site into databases at customers’ sites all over the world.” Quite simply, every message that anyone sends to anyone else (or by extension, any piece of equipment sends to a database) is a risk. The more connectivity you have, the more messages you have, and the more you are at risk. “There’s been a whole industry developed around stealing corporate 60
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secrets,” says Ginter. “The question that people are asking now is, has it already happened or how soon will it happen that a whole industry develops around attacking industrial sites? If the operator can control the mine by pressing buttons, anyone who takes over those computers can do the same.” If you have automated vehicles, you introduce another vector for cyber attackers. The marketing noise surrounding them is deafening. You know the kind of thing. ‘Our remote monitoring system is standard equipment on most new machines,’ is typical of the messages they scream it at you – but at the same time, they scream them at the criminals, too. “The leading equipment vendors have connections to their own machines,” explains Ginter. “They all have a server somewhere connected to all their heavy equipment, extracting operational data about the air in the tyres or the condition of the engine. Even if you don’t have a fully automated mine you are still at risk if someone attacks the server in their headquarters, because they could take control of your trucks.”
• Waterfall Security Solutions
Let’s be clear, when we refer to cyber attacks, we’re not talking about teenagers fooling around in their bedrooms. “We generally grade adversaries according to their capabilities,” says Ginter, “which you can measure in terms of talent and financial resources. You find more ‘hacktivists’ with an axe to grind in mining than you do in other industries and they can be very clever, but they tend to be volunteers who don’t profit financially from what they are doing. They can be well organised, they can be very smart and persistent, but they tend to have limited financial resources. Contrast that with organised crime. They have all the attributes of the hacktivists, but they also have money, because they profit from their activities.”
All software can be hacked
So how easy is it, I wonder, to hack into an industrial control system? Ginter puts it into perspective. “Everything I’ve said can be summed up into two statements. One: every message
that any computer sends to any other computer could be an attack. Two: All software can be hacked. “I wrote software for 25 years,” he explains. “I didn’t deliberately put bugs into all the software I wrote, but all the software I wrote had mistakes in it. All software has bugs and some bugs are security holes. You just have to find the mistake.” Finding the mistake can take time, but some people spend their lives looking for security holes. “It can take months to find a new mistake in a thoroughly studied system like a Microsoft operating system,” says Ginter, “but most industrial control systems have not been studied in this way. There are lots of bugs to be discovered in these industrial systems but anyone who does study them in their spare time and then finds something is threatened with legal action by the vendor’s lawyers. In the IT world, if you report a bug to Oracle they thank you for telling them and give you a substantial reward. In our industry they sue you! “We’ve talked about autonomous vehicles but what I worry
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“The trade off between increased connectivity and increased vulnerability is one that businesses are failing to take into account”
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about in the underground mines are the safety systems,” Ginter continues. “All it takes is a command to say ‘turn off the blowers’ or ‘turn off the water pumps’ and you have a dangerous situation. There are risks there that people need to be designing their networks to address and I don’t see much of it happening.” While the next target depends on the specific motivation of the next cyber attacker, it would be a mistake to base security defences on the likelihood of an attack. What’s unlikely today may be more likely tomorrow, but tomorrow may be too late to prevent the attack. “Prudent security practitioners defend against wellknown attack capabilities,” says Ginter. “They do not defend against the motive of the moment. Motives can change in a heartbeat. Somebody can suddenly get a bee in their bonnet and decide to come after us. Capabilities evolve much more slowly. So industrial sites today are looking at the capabilities 64
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in the threat environment and defending against them before someone develops a motive to use those capabilities against those sites.”
Solutions
For modern sabotage-oriented protection, there are solutions available. Waterfall Security Solutions is a cyber security specialist that produces hardware-enforced security products, focused on preventing the cyber sabotage of ICS (industrial control system) networks. The hardware part of the solution is called a unidirectional gateway. “We have a family of products but our flagship product is the unidirectional gateway,” says Ginter. “The gateways enable safe network integration. They let businesses monitor their control system equipment, but make it physically impossible to send any attack back in to those critical networks. “We claim 100 per cent protection against network attacks coming from external networks,” he continues. “While there
• Waterfall Security Solutions
“Every year we have more sophisticated attackers, so we need more sophisticated defence mechanisms. This is what we are offering”
is no technology that can prevent absolutely all attacks, these silent, online, network-based attacks are the workhorse of cyber sabotage, and are the specific risk that comes with increased network connectivity. Our gateways eliminate that specific threat vector entirely.” When a unidirectional gateway becomes the only connection between a more trusted network and a less trusted network, he explains, data travels one way only, so nothing gets back in to the ICS network. Waterfall makes the data available for anyone who needs it, by replicating industrial databases and devices. “Anyone who wants the real-time data can ask the replicas and get the same answer they would have had by asking the live systems,” Ginter explains. “They get the same answer from the replica as the control system equipment would have given them, without ever sending a message to the control system and putting that equipment at risk.
“We represent an evolutional alternative to the firewall technology,” he adds. “Firewalls are network routers with filtering capabilities. They pass messages between networks. They try to determine if a message is good or not, and if they think it is they send it on. When they fail to recognise something bad in a message, they send that attack straight through. As their security is based on software and logic, firewalls are susceptible to be circumvented and designed to fail. “When more things are connected it creates more vulnerability,” concludes Ginter. “Every year we have more sophisticated attackers, so we need more sophisticated defence mechanisms. This is what we are offering.” The benefits of connectivity are not to be denied, and nobody is saying ‘don’t do it’, but we must make sure that criminals do not also benefit from our new, enabling, network connections.
www.waterfall-security.com •
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Terex® Finlay launch NEW I-140 impact crusher The NEW Terex® Finlay I-140 direct drive ø1270mm x 1240mm (Ø50” x 48”) horizontal impact crusher with variable speed gives operators unprecedented levels of production in both recycling, mining and quarrying applications. The robust and proven Terex® CR032 chamber gives excellent reduction ratios and high consistency of product shape.
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A
significant engineering approach being introduced in this model is the material flow through the plant. The flow of material has been significantly improved by increasing the width of components as the material moves through the machine. The machine features an advanced electronic control system that monitors and controls the speed of the rotor and regulates the heavy duty vibrating feeder (VGF) with
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integrated pre-screen to maintain a consistent feed of material into the impact chamber for optimal crushing conditions. Material from the integrated pre-screen can be diverted to a stock pile via the optional by-pass conveyor, or it may join the crushed product on the main belt. The standard hopper capacity of 6m³ (7.5yd³) places the machine at the forefront in this competitive market sector. “The introduction of the Terex® Finlay I-140 represents a significant step change in our family of impact crushers. Our field test results of extensive testing have recorded significant productivity increases depending on the application, over the model that it replaces. The enhanced material flow process of the plant represents a significant step change to our engineering ethos and in due course will be extended to encompass our range of impact crushers” said Alan Witherow, Product Manager.
• Terex Finlay
Key Features: •
• • •
The ease of material flow through the machine has greatly improved with each component of the machine increasing in width as the material moves through the machine. Fully hydraulic apron setting assist provides convenient and efficient adjustment of the aprons. Heavy duty vibrating feeder (VGF) with integrated prescreen removes dirt fines and sizes bypass material for reprocessing. Optional under crusher vibratory plate feeder with wear resistant liners aids material discharge flow.
If you require anymore information please contact: Brian Pauley Marketing Manager T:+44 (0) 2882 418 768 M: +44(0) 7766 417 602 F:+44 (0) 2882 244 294 E:brian.pauley@terex.com Terex Finlay Drumquin Road, Omagh, Co. Tyrone, N. Ireland, BT78 5PN
www.terexfinlay.com •
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ION-IX
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Advanced ION EXCHANGE Technology Why use ION - IX ? TM
ION-IXTM is the ideal new system for: ●
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Highest recovery of precious metals Steady product & efluent stream Reduced chemical and water usage Lowest O&M costs
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Reduced chemical & water usage Lower waste volumes, higher concentration of metals recovered Compact footprint Reduced resin inventory Flow rates of up to 500 m3/h per valve possible
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ION-IX Hydrometallurgy TM
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What Puritech does... Plant design The engineering of continuous countercurrent ion exchangers CCIX includes: ● ● ● ● ● ● ● ●
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ION-IX
What Puritech builds... Nickel Laterite Nickel is a hard, silver white metal. It is mainly used in the manufacturing of stainless steel, steel alloys and superalloys. Nickel laterite can be found in large amounts in the tropics and comprises 73% of the world nickel resources.
Nickel - Cobalt Separation A 200 m3/h Ni/Co Separation plant has been designed and installed in Africa by Puritech. By using a split elution, the Nickel is separated from the Cobalt stream. A double or triple adsorption zone allows removing the desired metal almost completely.
Zinc Recovery The Zinc chloride can be removed from pickling acid. ZnCl2 will form a stable complex which is removed by anion resin. The resin is afterwards eluted with water.
Uranium & Rare Earth Applications Hydrometallurgy is used more and more as the first choice to recover precious metals. Some of the applications are: Uranium Lithium Rhenium Germanium Gold & silver ● ● ● ● ●
TM
What can United Mining Rentals offer your company? At a time when fiscal responsibility is becoming exponentially more important, in an industry where the highest safety standards and productivity must be maintained, providing your operation with the best fleet at a minimal cost is fundamental to any successful and profitable business. United Mining Rentals (UMR) has over 30 years of experience in the Mining & Tunnelling Industry and we are proud to offer rental and ownership opportunities for the full range of new Sandvik and Normet equipment. We trust you will find the product that suits your Mining or Tunnelling operation, backed by the numerous advantages associated with theUMR rental, or rent with an option to purchase models that will reduce cost of ownership and help maintain productivity.
Our full range of new Sandvik and Normet products are backed with full Factory Warranty, Technical Support, OEM Parts and a global network of local and regional OEM service centres. With such a robust range of support services, renting with UMR reduces maintenance costs and guarantees availability hence improving productivity for our customers whilst also eliminating rebuild down time. Striving to provide quality at a reasonable price, UMR offers an innovative model of flexible rental or rental/purchase options tailored to suit every kind of end user in the Tunnelling and Mining industries, allowing customers to avoid tying up capital and invest it in the future purchase of rented equipment. Our rental/purchase option offers an attractive allowance for paid rentals against pre-agreed purchase price easing upfront capital spending and is a way of investing in the ownership of the Equipment at a pre-determined date.
For all mining equipment rentals visit www.unitedminingrentals.com
EUROPE United Mining Rentals Ltd. Coolfore Road, Ardbraccan, Navan, Co. Meath, C15 KXY3, Ireland.
NORTH AMERICA United Mining Rentals Ltd. Suite 1200, 220 Bay Street, Toronto, Ontario, M5J 2W4, Canada.
Tel: +353 87 1491945 Tel: +1 647 267 8193 Email: info@unitedminingrentals.com www.unitedminingrentals.com Our philosophy at UMR is simple – Downtime costs money. This philosophy inspired our aim to provide solutions to one of the major contributors of downtime in the mining and tunnelling industries: low availability of equipment. To ensure our customers don’t experience any downtime, we offer rentals and rent to purchase plans for new Sandvik and Normet equipment on a global basis, making use of the vast network of Worldwide Service Centres provided by two of the world leaders in Mining and Tunnelling Equipment. We also offer the option of bridging units to keep our customer’s operations running smoothly until their new rental unit arrives. We recognise that each customer has different requirements so we offer very flexible terms. Our first option is rent to purchase which allows for purchase of the equipment following a minimum one year rental period with a percentage of the rental payments deductible from the pre-agreed purchase price. Another option we offer is variable term rental from a minimum of 1 year upwards allowing the customer long term rental, consisting of 2-3 years allowing the customer to return the equipment with no commitment to purchase. We also offer a “Rolling Replacement” option, which allows the customer to return equipment to UMR following a 3 year rental and replace with new equipment for another 3 year term or pre-agreed period.
RENTALS AVAILABLE: Trucks and Loaders Underground Drilling & Bolting Roadheaders Exploration & Surface Drilling Lifting & Installations Scaling & Charging Underground Logistics Spraying
Our business model is designed with Mining Companies & Tunnelling Contractors in mind, who often have short or long term contracts, as well as Start-up mining operations which may wish to defer spending capital on expensive equipment for use in another area until positive cash flow is realized. Fixed rental payments simplify budget planning, and can be 100% Tax deductible against business income. By using a reliable rental provider such as UMR for a long term rental the costs of acquiring, running and maintaining the right equipment for the job can be greatly reduced, as renting equipment can generate significant savings by avoiding depreciation, the total cost of the purchase price, and unnecessary unit and component rebuild costs. UMR Equipment comes with a managed service tailored to each customer’s requirements covering bridging units, full technical support and immediate reaction to warranty issues ensuring availability at all times. Making that vital decision whether to buy or rent is not just a matter of budget, but of business strategy. So weigh up the numbers, and make the right decision for your business.
For all mining equipment rentals visit www.unitedminingrentals.com
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Discover.rockwellautomation.com/Mining Pavilion8 is a registered trademark of Rockwell Automation, Inc. Copyright Š 2015 Rockwell Automation, Inc. All Rights Reserved. AD2015-48-US