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Amalgamated Mining Group Your underground mining & tunnelling sales and rental headquarters Amalgamated Mining Group is determined to become the supplier of choice for every aspect of underground mining and tunnelling equipment sales, rentals and parts.

Issue 21 2018

World Mining

the editor

Happy New Minerals

Editor

The

his time last year, when I was writing my New Year message Happy New Mine, Archer Exploration had just applied for a mining lease for the Campoona Shaft graphite deposit on the Eyre Peninsula in South Australia. What caught my attention was the time it had taken to prepare the application, because of the catalogue of complex assessments involved in obtaining approval for a new mine. I’m sorry to say that I failed to follow the progress of the application throughout the year, but I was reminded of it recently when I came across a news story about a feasibility study on Kookaburra Gully, a graphite project on the same Australian peninsular. A mineral lease is already in place there and Lincoln Minerals is planning to construct a high-grade graphite mine after its viability was confirmed. So I checked on Archer’s application and I am delighted to report that the South Australian Government granted licences for the development of the Campoona Shaft graphite mine on 8 December 2017. It’s all happening on the Eyre Peninsular, it seems, as Renascor Resources is also planning to start mine

Martin Ashcroft

construction at its Siviour graphite project by 2020 and have the mine up and running by 2021. Another much sought after ‘modern’ resource, if I can put it that way, is lithium, the lightest metal in the world, because of its role in the electric vehicle revolution. Lithium-ion batteries, however, despite their name, contain more graphite than they do lithium. If you read the magazine every month, you may have noticed how the news content has changed over the course of last year to include more coverage of minerals like graphite and lithium. While the excitement around graphite is focused on Australia, the world’s most abundant lithium brine deposits are found on the other side of the world, in the ‘lithium triangle’ on the borders of Argentina, Bolivia and Chile. As long as the world still needs gold, silver and copper, nickel, aluminium and zinc, not forgetting diamonds and coal, we will, of course, continue to report the news about these resources. But don’t be surprised if 2018 takes us further into new mineral territory. Happy New Year! World Mining Magazine www.ogsmag.com

Contents Cover story

amalgamated mining group: the natural choice for underground mining and tunelling equipment Page 6 Page: 3 • The Editor: Happy New Minerals 6 • Amalgamated Mining Group: The natural choice for underground mining and tunnelling equipment 21 • Magellan Gold completes purchase of SDA Mill in Mexico • Atlas Copco to acquire US distributor 23 • Argonaut Gold closes Cerro del Gallo acquisition • GoldMining completes Crucero Gold acquisition in Peru 25 • Feasibility boost for Australian graphite mine 27 • Barford Equipment to enter US market with new screeners • Transformational acquisition for Aurelia Metals 29 • Contura sells coal assets in Powder River Basin, Wyoming • Alamos Gold completes acquisition of Richmont Mines 31 • Alliance Magnesium makes strategic acquisition after Canadian patent granted

• Conquest acquires Golden Rose mine

33 • NRG acquires Hombre Muerto lithium 35 • Exploration approved in Salinas Grandes

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ADVERTISERS 2 Resemin Asia 18 Rammer: Sandvik Mining and Construction 19 PMP: Prairie Machine & Parts 22 Altra Industrial Motion 24 THEJO / Phoenix Conveyor Belt Systems 26 Canary Systems 28 GEA 30 Polar Mobility Research 32 MOS Mobile Screener 34 Applied Fiber 36 TowHaul 38 GIW Minerals 40 Smith Power Products 42 Komatsu Equipment 44 Royston Lead 45 Scania Mining 50 Seeing Machines 51 Shaw Development 52 K-Line Industries 54 Elphinstone 56 NAMMCO 61 Tenaris 62 Volvo Construction Equipment 66 Teran Industries Ltd 73 AKG 84 Grupo Gracida 86 Dräger 99 Quantum Filtration Medium Pty 101 Quantum Filtration Medium Pty 109 Apex Heavy Duty 110 PW Mining 127 BAT Construction Ltd 130 World Mining Directory 133 ABB 134 United Mining Rentals 136 Rockwell Automation

contents

• Aztec drilling underway at Cervantes

37 • Breakthrough technology for converting coal into oil products 39 • Altona joins Copper Mountain to form high growth copper producer • Geophysical survey commences over Wabamisk property 41 • Alpha Natural Resources completes asset transfer to Lexington Coal

• Monarques Gold pours first gold at Beaufor 43 • Cobalt Power to buy Canadian cobalt projects

• Nevada Sunrise acquires Lovelock Cobalt

46 • Caterpillar: More than the iron 70 • AKG: Cool customers 74 • Bullseye Distributors: Mining meal solutions delivered at Oyu Tolgoi 80 • Goldcorp: Twenty, twenty, twenty 90 • Gracida Group: Striking water! 94 • BHP: Investing in a new future 102 • Newmont Mining: Creating value 112 • Anglo American: Refining assets 120 • De Beers: In pursuit of brilliance 128 • AxleWEIGHr: Weighs truck at the job site

goldcorp: twenty, twenty, twenty Page 80

World Mining Magazine Contacts, Advertising Rates & Information News & Features Editor: Martin Ashcroft martin@ogsmag.com Editor Vanessa Ward editor@ogsmag.com Sales sales@ogsmag.com General email contact info@ogsmag.com Design and Artwork Steve Lazarus artwork@ogsmag.com Managing Director Simon Ward

Advertising Rates

Double Page £6000.00 Full Page £4895.00 Half Page £2450.00 Quarter Page £1450.00 Full Page (inside cover) £6000.00 Lead Article + Front Cover £19,995.00 All advertisement rates include design free of charge. The magazine is printed in A4 format on 250gsm gloss laminated cover and 170gsm matt internal pages. The magazine is both a printed hard copy magazine and distributed electronically. Currently our global readership is approximately 93,000.

World Mining Magazine 2018 World Mining Magazine is published by Worldwide Business Media Limited, London, EC1V 2NX United Kingdom. Registered No. 6809417 England/ Wales. VAT No. 972 7492 76. All rights reserved. Reproduction in whole or any part without written permission is strictly prohibited. Liability: while every care has been taken in the preperation of this magazine, the publishers cannot be held responsible for the accuracy of the information herein, or any consequence arising from it. All paper used in this production comes from well managed sources.

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AMALGAMATED MINING GROUP THE NATURAL CHOICE FOR UNDERGROUND MINING AND TUNNELLING EQUIPMENT

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Amalgamated Mining Group is determined to become the supplier of choice for every aspect of underground mining and tunnelling equipment sales, rentals, parts and repairs. Tom Flanagan, President, and Colin Elson, General Manager, tell Martin Ashcroft how they’re going about it. The concept of the one stop shop has been around a long time, long enough to be a cliché. However there isn’t a better term to describe a supplier who can provide the full range of equipment required for any type of mining or tunnelling project. Ask Tom Flanagan, President of Amalgamated Mining Group about his vision, and he’ll tell you it’s to be “the first name people think of when they need underground mining and tunnelling equipment. We’d like to be the one stop shop for sales, rentals and parts, anywhere in the world.”

“We aim to be the first name people think of when they need underground mining and tunnelling equipment. We’d like to be the one stop shop for sales, rentals and parts, anywhere in the world.”

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That vision has been guiding the company’s growth since Flanagan established Amalgamated Mining Equipment Ltd (AME) in 1990. Originally conceived as a single company focused on rebuilding and refurbishing underground equipment, AME has evolved in less than 30 years into three distinct corporations servicing different but complementary aspects of the underground mining and tunnelling equipment market. Choosing the right machinery can be a complicated process. Understanding the application requirements is absolutely crucial. Is it better to buy a new machine with the latest technology or go for used equipment to save capital? How long will you need to use it? Would it make more sense to rent? Can you get parts for it quickly if it needs to be repaired? Does it need to be customized for your operation? After you have made those choices, where can you go to find what you are looking for?

Amalgamated Mining Group the natural choice for underground mining & tunelling equipment

“When you’re looking to expand into the global market you have to regionalise the business and build a base of equipment in each independent region. A global rental fleet is what we’re after”

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The Amalgamated Mining Group is based in Edmonton, in the business-friendly Canadian province of Alberta, Canada; one of the most popular jurisdictions in the world for oil and gas extraction. “We set up here because of the location of the city and its favourable environment for service industries,” says Flanagan. “It has everything you could want on the supply and services side of things. “The irony of it,” he continues with a chuckle, “is that Alberta is the only Canadian province we don’t do business in because there are no underground mining operations here. We started

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here for logistical reasons (ie; proximity to the transportation infrastructure connecting all the major underground mining hubs throughout North America). We deal in most provinces in Canada, and also throughout the United States and South America. We have equipment in Australia, New Zealand and parts of Europe. That’s the extent of our world reach so far. In the early days of AME, Flanagan spotted a niche in the market and began to buy new underground equipment from Caterpillar, which it converted into durable, customized underground vehicles. “The company has gone through

Amalgamated Mining Group the natural choice for underground mining & tunelling equipment

“By keeping every aspect of each purchase or rental in-house, the process is more transparent to the customer and serves to keep the equipment delivery on schedule to maximize up time”

several transformations,” says Flanagan. “We started an equipment sales division, but that soon became a sales and rental division, which is now Amalgamated Mining & Tunnelling. Then we added a parts division to back everything up.” In 2007, AME expanded the parts division, resulting in a third new company, Amalgamated Mining Services (AMS). “When we started out, our speciality was rebuilding, but then we expanded into the resourcing of parts and equipment for customers,” Flanagan summarises. “That morphed into sales and rental, which is the biggest part of our business today. We’ve always had a parts division

but we never had a dedicated parts sales force. We created AMS to service our rental and services segment that has grown exponentially over the last 8 years due to global demand.” AMS keeps a comprehensive stock of new and used spare parts to fit a wide range of equipment for all major underground mining equipment manufacturers and a full range of drilling tools (Mitsubishi, LHS, TRI-ROK, Brunner & Lay, etc). In addition, AMS carries a large stock of components (engines, transmissions, converters, axles, etc) to suit all major brands of underground mining and tunnelling equipment. World Mining Magazine www.ogsmag.com

“We have a memorandum of understanding with the two largest Caterpillar dealers in Canada”

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Amalgamated Mining Group the natural choice for underground mining & tunelling equipment

AMS represents about 15 per cent of the Group’s business, and repair and customisation around 20 per cent, with the rest being equipment sales and rental via Amalgamated Mining & Tunnelling. A glance at the web site reveals an exhaustive inventory from loaders, trucks, jumbos, bolters, drills and personnel carriers, to wheel dozers, apron feeders, buckets, truck boxes and man-baskets. AM&T has the lot. The company maintains a sales and rental fleet of between 500 – 600 underground mining specific machines in stock, but if a client cannot find what they need, it has the ability to source the item. The rental fleet includes new and used equipment and rentals are typically between 6 -18 months, according to customers’ needs, with an option to purchase. Some customers have taken as many as 40 pieces, others much fewer, depending on the size of the underground mine or tunnel and their individual needs. Most contracts are revolving rentals where AM&T will replace some units as the operation develops to give them a continuous flow of updated equipment. Any rental returns are traditionally refurbished and repaired, ready for the next rental contract. To put it all into perspective, Amalgamated Mining & Tunnelling Inc (AM&T) was formed in 1999, to focus on the sale and/or lease of new and used underground mining and tunnelling equipment. In 2007, building on the strong relationship it had developed with Caterpillar, AM&T broadened its stock with the addition of a full line of new underground Caterpillar equipment. “We have a memorandum of understanding with the two largest Caterpillar dealers here in Canada,” says Flanagan, “Finning (Canada West) and Toromont (Canada East). We purchase 30 to 40 pieces of new and certified rebuilt underground machinery from them a year, according to what our customers predict their needs will be over the next 12 months.” It’s good business for all parties as Caterpillar has the best equipment distribution and service infrastructure. World Mining Magazine www.ogsmag.com

The Amalgamated Mining Group has supplied underground mining and tunnelling equipment to various major operations throughout the Americas and Australasia. The next expansion will be geographical, rather than new products or services. “We want to develop our international rental fleet,” says Flanagan. “We are already international in the sense that we have equipment around the world, but we are striving to be more recognized throughout the industry.” Having the right equipment in the right place is the Holy Grail of this business, as moving heavy underground mining and tunnelling machinery around the world is both time consuming and majorly expensive. The key is to have the right equipment in the right area so the customer can access it in a timely fashion. “We have two yards here in Edmonton, and one in Spokane, Washington,” says General Manager Colin Elson. “We have a yard in Western Australia as well as equipment stored at various locations around the world.” The pressure on underground operations has never been greater. The regulatory laws become tighter

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every year and the price of metals and minerals is never stable for long. To achieve the highest levels of safety and productivity, underground operators need equipment that is code compliant, cost effective and easy to maintain. Wherever the equipment is from, and wherever it’s going, the logistics process is organized in-house. “By keeping every aspect of each purchase or rental in-house, the process is more transparent to the customer and serves to keep the equipment delivery on schedule to maximize up time,” says Elson, “and this minimizes any confusion and down time. We have transported equipment by ocean from as far as Australia, Africa and Europe; also via air cargo to the extreme regions of the Yukon and Northwest Territories, and by road throughout all of North America and Mexico.”

Amalgamated Mining Group AM&T maintains close relationships with customers to understand and anticipate their needs. You might not expect an international business to be seasonal, but there are highs and lows throughout the year. “For example, in November and December we get an indication from customers about their future needs,” says Elson. “They might be looking to spend money that can’t be taken forward into the next year, so that will drive our business, and then their new budgets will be released in the new year, so January, February and March would be when we see the biggest spike in spending. But overall, it’s the strength of the underground mining and tunnelling industry that dictates our business.” The company sources equipment from all over the world and is building a useful contact infrastructure with underground mining and tunnelling companies. “A lot of equipment comes to us after a mine closure, for instance,” says Elson, “where we can bid on the whole asset pool. And we don’t always stick to the mobile equipment, we also look at some of the processing equipment.

the natural choice for underground mining & tunelling equipment

“If you have an orebody that you’re not 100 per cent sure is viable, you don’t have to go out and purchase the equipment right off the bat. If you rent it first, you have the option to tailor the equipment size to match the drift or tunnel dimensions”

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“Ten years ago we would have been customizing an individual piece of equipment. As we have become more of a one stop shop, we now customize fleets to meet specific customer requirements and local underground mine and tunnel regulations”

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Amalgamated Mining Group the natural choice for underground mining & tunelling equipment

Some companies have special requirements and in those cases AME is experienced in making customised modifications to suit specific needs. “But customization has changed quite a bit,” says Flanagan. “Customization would have meant a different thing ten years ago, in that we would have been customizing an individual piece of equipment. As we have become more of a one stop shop, we now customize fleets to meet specific customer requirements and local underground mine and tunnel regulations.” One of the advantages of rental is the flexibility it brings to the operation, and that is an important factor in uncertain times. “If you have an orebody that you’re not 100 per cent sure is viable, you don’t have to go out and purchase the equipment right off the bat,” says Flanagan. “If you rent it first, you have the option to tailor the equipment size to match the drift or tunnel dimensions. For instance, if the operation starts out with 5 x 5 metre heading size, and too much dilution is encountered, the operator may decide to go with a 4 x 4 metre, or even a 3 x 3 metre heading size which would require a complete equipment fleet change out. Now the operator just needs to return the originally rented fleet and

exchange it for the appropriate size of equipment to suit. This allows the operation to continue to move forward without a costly long term investment in the wrong equipment.” There are many challenges in the underground mining and tunnelling equipment business, including market fluctuation as a result of changing commodity prices, but it’s not all bad news, as market fluctuations also help to drive the rental market. “We complain about it on the one hand,” says Flanagan, “but we’re grateful for it on the other!” Having a sound customer base located across a variety of underground mining and tunnelling geographies provides AM&T security, and this is one of the driving forces behind the next phase of Amalgamated Mining Group’s growth strategy. “Moving the equipment around is always a major challenge,” says Flanagan. “The equipment is getting larger all the time. When you’re looking to expand into the global market you have to regionalise the business and build a base of equipment in each independent region. A global rental fleet is what we’re after. That’s where we see the opportunity. We’d like to be the industry’s first choice, everywhere in the world. That’s our goal for the moment.” World Mining Magazine www.ogsmag.com

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Have a news story or press release you would like to be considered for publication in the next Word Mining Magazine? Please contact Martin Ashcroft at martin@ogsmag.com

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news

Magellan Gold completes purchase of SDA Mill in Mexico

agellan Gold Corporation has completed the purchase of the San Dieguito de Arriba Mill, Nayarit

Magellan arranged $900,000 in bridge loans in support of the purchase. “Acquisition of the SDA Mill will transform

“Acquisition of the SDA Mill will transform Magellan into a production company” State, Mexico, from Rose Petroleum plc. Total consideration for the purchase of the SDA Mill was US$1.5 million, consisting of $1.0 million in cash and $500,000 in Magellan stock, of which $100,000 in cash was paid in June 2017. In August 2017,

Magellan into a production company and is an exciting development for our shareholders,” said Magellan CEO Pierce Carson. “In November, we began limited processing operations under an interim toll agreement to process third-party ore. We intend to continue

our strategy of resuming processing operations, building production and increasing cash flow. “Now that we own the mill, we are focused on acquiring nearby sources of high-grade gold and silver ore that can be trucked to the mill for processing,” continued Carson. “We have identified and are evaluating several attractive properties for potential acquisition.” The SDA Mill is a fully operational flotation plant that also includes a precious metals leach circuit and associated assets, licenses and agreements. The mill has the capacity to process ore at a rate of up to 200 tons per day.

Atlas Copco to acquire US mining equipment distributor

tlas Copco has agreed to acquire Cate Drilling Solutions LLC, a US company that distributes and services Atlas Copco drilling equipment and components. Cate Drilling Solutions is based in Salt Lake City, Utah, and is active in the states of Utah, Nevada, Wyoming and Idaho. The company is a full service distributor for Atlas Copco surface drilling products, with a state-of-the-

art remanufacturing shop that further serves customers’ needs. It has 35 employees. “Having the strong team at Cate Drilling Solutions as part of our Group will enable us to get closer to and serve even better our mining customers in Central United States,” said Helena Hedblom, President of Atlas Copco’s Mining and Rock Excavation Technique business area. The acquisition is expected

to be completed in the first quarter of 2018. The purchase price is not materially significant to Atlas Copco’s market capitalization and is not disclosed. Cate Drilling Solutions will be part of the Mining and Rock Excavation Service division in Epiroc, the wholly-owned subsidiary of Atlas Copco that will be listed on the stock exchange in 2018 provided shareholders’ approval.

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news

Argonaut Gold closes Cerro del Gallo acquisition

“The concessions include areas of historical mines formerly worked for high grade veinhosted gold and silver”

rgonaut Gold Inc has closed the previously announced acquisition of the Cerro del Gallo project through the purchase of San Anton Resource Corporation, a subsidiary of Primero Mining Corp, for $15 million. Argonaut expects to be able to recover approximately $1.7 million of value added tax, which reduces the total purchase price to $13.3 million. The companies acquired as part of the transaction include approximately $22 million in tax losses. The CDG deposit is located in the state of Guanajuato in central Mexico, approximately 165 miles northwest of Mexico City in an active mining district. The property is accessible by road, rail and air services and the area benefits from a skilled local workforce, grid

power, water, sealed roads, equipment suppliers and established transport routes. The deposit consists of 12 granted, contiguous mining concessions all now owned by Argonaut. The concessions include areas of historical mines formerly worked for high grade vein-hosted gold and silver. Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets include the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada.

GoldMining completes Crucero Gold acquisition in Peru GoldMining Inc has completed its acquisition

of the Crucero Gold Project in southeastern Peru from Lupaka Gold Corp. The transaction represents GoldMining’s first acquisition in Peru, which is among the world’s largest producers of gold, copper and silver and ranks as one of the most attractive jurisdictions for mining investment in Latin America. “We are very pleased to close on our third meaningful gold resource acquisition this year, a testament to the hard work and dedication of our team in identifying and executing on our vision of consolidating gold assets in the Americas,” said Amir Adnani, Chairman of GoldMining. “Peru is a

highly regarded mining jurisdiction, and we’re keen to establish our presence in-country with the acquisition of Crucero.” The project is located 150 km northeast of the city of Juliaca in the Department of Puno, in southeastern Peru. There is a paved road from Juliaca to the town of Crucero, and the remaining 50 km to the site is accessible by gravel road. There is no power on site but the state grid passes within 8 km of the property. Historic exploration programs have focused on the A1 deposit, but geophysical and geochemical surveys have identified 10 additional targets (A2 to A11) for follow-up exploration.

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news

Australian graphite mine receives feasibility boost

high-grade graphite mine due to be constructed in South Australia next year has received a boost after a feasibility study found it was commercially viable to develop. The study found Kookaburra Gully on South Australia’s Eyre Peninsula – for which an approved mineral lease is already in place – would be able to produce a range of high quality, globally sought-after graphite products, have room for further expansion beyond its initial 10-year mine life estimate, and be established at a capital cost of around A$44 million.

The mine is 100 per cent owned by ASX-listed Lincoln Minerals Limited. “The outcomes of the feasibility study demonstrate a robust business case for the Kookaburra Gully Graphite Project and have substantially enhanced and de-risked the project’s development,” said Lincoln Managing Director Dr John Parker. Mining will be undertaken via conventional truck and shovel open-pit mining methods, using the services of a mining contractor. The mine’s graphite concentrate is expected to be packaged on-site into 25kg packets or 1-tonne

Shanghai, China, to involve project financiers, graphene nano-materials application manufacturers, investment banks and institutions, in backing Kookaburra Gully’s establishment and future. Dr Parker said China had dominated graphite production for several decades and produced about 70 per cent of the world’s supply. “However, the graphite supply chain is changing, due in particular, to potential start-ups in eastern Africa and tighter environmental controls in China,” he said. “In the long-term, as China’s economy

“The outcomes of the feasibility study demonstrate a robust business case for the Kookaburra Gully Graphite Project and have substantially enhanced and de-risked the project’s development” The feasibility study looked into the value of converting the deposit into a modern-era, open-pit graphite mine. It used a processing rate of 250,000 tonnes per annum to produce approximately 35,000ktpa of flake graphite concentrate at a metals recovery rate of 90 per cent. The project could expect to attract an average sales price of A$880-$1,350/t for standard mesh graphite products including polymer/plastic additives, lubricants, drilling fluids, friction materials and other industrial uses. Longer-term opportunities include sales into the high-growth lithium-ion battery market – value-add factors not included in the feasibility study results.

bulka bags, loaded onto pallets or into 20-foot containers then transported via truck to Port Adelaide. Graphite has seen a resurgence in price due to increased demand from applications such as lithium-ion battery technology for electric cars and the novel substance graphene. It is also at the forefront of the growing global green energy market, with a proposed solar thermal power station 250km north of Lincoln’s Kookaburra Gully project estimated to require over 17,000 tonnes of graphite. Lincoln has an agreement with Shanghai Jihai Investment Management Limited, a finance company based in

shifts towards higher value-adding manufacturing and increased demand for minus-100 mesh flake graphite used in batteries, it is forecast that China may become a net importer of flake graphite. “Over the next 24-36 months, it is anticipated that two or three natural flake graphite mines will commence operation in Africa, North America and elsewhere to replace the expected loss of natural flake graphite from China. However, these new mining operations will not be able to meet the anticipated growth in demand from the battery market as well as new technologies including graphene, fire retardants, geothermal and conductive products.” World Mining Magazine www.ogsmag.com

news

Barford Equipment to enter US market with new screeners

arford Equipment, the UK based manufacturer of mobile screeners, trailers and wheeled and tracked conveyors, is poised to enter the US market in 2018 with the

will all be focusing on the Kissimmee auction so this is a great opportunity for us to meet potential distributors and probable buyers and gauge the appeal of both of our new machines,” explained

& Frey is well known for organising prestigious equipment auctions that draw the attention of the types of buyers we are looking for and are the ideal match for us entering this sector.”

launch of the SR124 and the S104, two new track mounted screeners. It is also looking to appoint agents internationally for both the new models and its existing range. Barford Equipment is using Yoder & Frey auctioneers to prelude the new mobile screeners to the US market at its upcoming 2018 Spring Sale in Kissimmee, Florida (from 13 – 17 February). Both models will then be sold at the auction, without reserve, to the highest bidders. “The world’s construction machinery, aggregate, quarry and mining markets

Stephen Murphy, distribution manager for the Barford product range. “Barford is a well known brand in the

The two Barford models being launched are the SR124 (pictured), a tracked three way split screener, with a 12 x 4 screen box that fits into a 40ft HC container; and the S104, a tracked three way split screener with a 10 x 4 screen box that again fits into a 40ft HC container. The SR124 is built around a Caterpillar power unit. The engine on the S104 is being produced by JCB, a renowned British manufacturer and inventor of the widely popular and much copied JCB backhoe/loader. The S104 is also available with a Deutz engine.

“Barford is a well known brand in the UK and across Europe”

UK and across Europe, having built an enviable reputation and possessing a long and illustrious history. It is currently relatively unknown in the US market, but that’s about to change. Yoder

Transformational acquisition for Aurelia Metals N

ew Gold Inc has agreed to sell its Peak Mines in Cobar, New South Wales, Australia to Aurelia Metals Limited for $58 million in cash. Peak has operated for over 25 years and has a consistent history of reserve replacement, with deposits currently being mined considered to have potential for extensions. The transaction enhances New Gold’s liquidity and enables the company to focus on its Americas-centric portfolio of operating mines and development projects, which include the New Afton and Rainy River Mines in Canada, the Mesquite Mine in the United States, and the Cerro San Pedro Mine in Mexico, as well as the

Blackwater project in Canada. Aurelia Metals describes the transaction as a transformational acquisition which significantly increases the company’s precious and base metals production. Following completion, Aurelia will operate two wholly-owned producing mines and two processing facilities in the Cobar district, with two advanced development projects nearby, in Nymagee and Great Cobar. The transaction also brings increased commodity diversification with production of gold, silver, copper, lead and zinc, and a substantial expansion of exploration acreage in the highly prospective Cobar region. World Mining Magazine www.ogsmag.com

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news

Contura sells coal assets in Powder River Basin, wyoming

ontura Energy (via its subsidiaries) has sold the Eagle Butte and Belle Ayr mines in the Powder River Basin in Wyoming, along with related coal reserves, equipment and infrastructure, to Blackjewel LLC. The two mines shipped 24.5 million tons between them through the first three quarters of 2017. Contura will receive deferred consideration of up to $50 million through various royalty payments, and Blackjewel will assume all permit and reclamation obligations associated with the assets acquired, eliminating approximately $200 million in undiscounted reclamation obligations for Contura. Additionally, subject to further calculation, this transaction is expected to generate significant income tax deductions for Contura of approximately $400 million to $450 million, which would be available to offset taxable income in 2017 and future years. The company expects to incur a

“The purchaser is acquiring two solid mines with decades of minable reserves, a top-notch, professional workforce and a great operating track record”

book loss on the sale, which will be recorded in the fourth quarter of this year. “This transaction allows us to further sharpen our focus on the company’s well-positioned eastern assets and a growing met sales portfolio,” said Kevin Crutchfield, chief executive officer. “While these PRB thermal assets will not be part of our company’s operational strategy moving forward, the purchaser is acquiring two solid mines with decades of minable reserves, a top-notch, professional workforce and a great operating track record. I appreciate and commend the contributions that current and past employees in the PRB made toward that success, and wish them the very best in the future.” Contura will continue to maintain a diversified production profile comprised primarily of high-quality, metallurgical coal mines in Central Appalachia and its underground, longwall thermal coal mine in Northern Appalachia.

Alamos Gold completes acquisition of Richmont Mines

s expected, Alamos Gold has completed the acquisition of Richmont Mines in an all share transaction. All Richmont issued and outstanding common shares were exchanged on the basis of 1.385 Alamos common shares for each Richmont common share, leaving Alamos and Richmont shareholders owning approximately 77% and 23% of the pro forma company, respectively. “With the completion of the acquisition, we have greatly strengthened our asset base, cash flow generation and profitability,” said John A. McCluskey, president and chief executive officer of Alamos.

“Combined with our peer leading growth profile and debt-free balance sheet, we have solidified our positioning as a leading intermediate gold producer and are well positioned to deliver long term shareholder value.” The acquisition of Richmont adds the Island Gold Mine in Ontario to the Alamos portfolio, strengthening its position as a leading intermediate gold producer. The Canadian-based miner has three other operating mines in North America, including the YoungDavidson mine in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico.

World Mining Magazine www.ogsmag.com

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Alliance Magnesium makes strategic acquisition after Canadian patent granted “We consider this patent as the flagship for our technology”

he Canadian Intellectual Property Office has accepted Alliance Magnesium’s patent application for its hydrometallurgical process to produce pure magnesium and various by-products from rock-serpentine.

“We consider this patent as the flagship for our technology,” said Dr Joel Fournier, chief executive officer of AMI. “We are very proud of the technical progress we have made over the last five years, which has resulted in a successful pilot plant. The patent provides AMI with the protection it needs to continue its business model, including the

ongoing deployment of its commercial demonstration plant valued at more than $100 million.” AMI currently has five patent families in its intellectual property portfolio. The granting of this patent in Canada constitutes the first of several similar patent acceptances AMI expects in the coming months from other jurisdictions around the world. A week or so after the patent decision Alliance Magnesium announced that it had acquired all the shares of Magnola Metallurgy Inc. and Magnola Mining Inc, giving it full ownership of Magnola’s industrial and mining sites in Danville, Quebec. The site includes facilities and equipment from the former magnesium plant, recently valued by an independent appraiser at more than C$85 million. The property also contains a valuable residue deposit estimated at more than

100 million tons of serpentine rock, the raw material AMI uses in its production, which is made up of approximately 25% magnesium. The acquisition of Magnola provides AMI with the infrastructure needed to deploy the construction and operation of a 50,000-tonne magnesium plant by 2021. After achieving a successful pilot plant, Alliance Magnesium is in technical and financial preparation for its commercial demonstration phase I, which requires an investment of over C$100 million. “It took five years of work, investment and achievement to reach this crucial and defining milestone in AMI’s development,” said Dr Fournier. “The transaction marks the company’s clear intention to play a dominant role in global magnesium production, and confirms its position as one of the largest manufacturing projects in Canada.”

Conquest acquires Golden Rose mine property Conquest Resources Limited has completed the

acquisition of Northern Nickel Mining Inc, and with it the Golden Rose Property which encompasses the former Golden Rose gold mine, 40 miles northeast of Sudbury, Ontario, and highly prospective banded iron formations at Emerald Lake. Conquest plans to commence a property-wide surface exploration program following the completion of a private placement financing.

Conquest Resources Limited was first incorporated in 1945 and is a mineral exploration company engaged in the exploration of mineral properties in Ontario. Its principal exploration target is gold. Conquest holds an undivided 100% interest in the Alexander Property in the Red Lake mining camp in Ontario, as well as a 100% interest in the Smith Lake Property that encircles the former Renabie gold mine in northern Ontario. World Mining Magazine www.ogsmag.com

With a MOS H3 series working in-pit, the customer will not need to install and operate other equipment at the feeding hopper installation. Rock breaker booms, rollers screener and rock crusher are no longer necessary. For existing conventional feeding hopper: The installed rock breaker boom, roller screen and rock crusher can be switched off. The dumper material is sent directly from the apron feeder to the installed vibrating screen. All the OPEX expenses for these machines (electrical energy, operators, maintenance and so on) will be economized. Since the oversized waste material is already removed in-pit, the OPEX for waste disposal system will be cut. Moreover the feeding hopper will produce less noise and less vibrations, extending its operating life. For installation of a new feeding hopper: with the MOS H3 series working in-pit, the related CAPEX expenses will be optimized and significantly reduced. Rock breaker booms, rollers screen and rock crusher are no longer necessary. Also the reduction of the waste size material results in less disposal equipment.

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NRG acquires Hombre Muerto North lithium project

NRG

Metals has completed the acquisition of the Hombre Muerto North Project in Argentina from previous owners Mr Jorge E. Moreno and Mrs Alba Silvia Sala. The project is adjacent to Galaxy Resources’ Sal de Vida lithium development project

Mr. Moreno will join the board of directors of NRG Metals Argentina S.A. NRG plans to conduct an exploration program to support a mineral resource estimate for lithium on the project, and rapidly move to a development and production decision. An exploration drill

“NRG plans to conduct an exploration program to support a mineral resource estimate for lithium on the project” and FMC Corp’s long-time producing Fenix lithium brine operations. Twenty surface samples collected in 2016-2017 range from 48 to 1,064 mg/l Li, averaging 587 mg/l Li, with seven samples over 800 mg/l Li. NRG will now issue 1,000,000 common shares at a deemed value of $0.39 per common share and make a cash payment of US$100,000 to the owners. In addition,

program has been planned by the technical team, and will initially include up to eight diamond core holes. Following coring operations, large-diameter (10- to 16-inch borehole diameter) rotary-drilled production wells will be installed at the same locations as the diamond drill holes for conducting pumping tests and estimating brine extraction rates for

wellfield development. Anticipated depths for the core holes will range from about 30 to a maximum of 400 metres. The depth of the production wells will be determined from the results of the diamond drilling. A vertical electrical sounding (VES) survey may be conducted at the Alba Sabrina property on the western edge of the basin prior to drilling to confirm if and where the hole will be drilled. An Environmental Impact Study has been filed with the mining authority in Salta Province, and permits are expected in the near future. Discussions with both provinces are ongoing in regard to a zone of dual jurisdiction which affects a portion of the project area. Resolution is expected in the near future. The company intends to expand the current land package, and negotiations on the acquisition of additional land in the area are progressing.

World Mining Magazine www.ogsmag.com

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lsc exploration Approved in Salinas Grandes “The company has amassed a large portfolio of prospective lithium rich salars in the lithium triangle”

LSC

Lithium has obtained approval to commence its exploration program on the San José and Navidad concessions in Salinas Grandes, Jujuy Province, Argentina. The concessions are part of a joint venture with Dajin Resources Corp. An exploration program is currently being designed to investigate the presence of lithium bearing brine and lithologies on the property. This includes the evaluation and the integration of historical data into the exploration

target model. Thereafter, the program will potentially include geological mapping, surface sampling, a geophysical data acquisition phase and a drilling phase to confirm the target generation results, with an updated NI 43-101 mineral resource estimate planned for Q1, 2018. LSC has also entered into a binding letter of intent to purchase Alqa Lithium SA, the sole owner of the Mina Teresa project in the Salar de Salinas Grandes for US$2 million. Mina Teresa

is strategically located immediately adjacent to LSC’s tenements Cristina, San José and Mahoma. Following the transaction, LSC’s land package will represent over 50 per cent of the salar surface of Salinas Grandes in Jujuy Province. The company has amassed a large portfolio of prospective lithium rich salars in the ‘Lithium Triangle’, an area at the intersection of Argentina, Bolivia and Chile where the world’s most abundant lithium brine deposits are found.

Aztec’s drilling program underway at Cervantes Property

ztec Minerals has started its Phase 1 drilling program on the Cervantes gold-copper porphyry property in Sonora State, Mexico. The program will involve diamond core drilling of 14 to 17 holes totalling approximately 3,000 metres to test the gold oxide cap located in the California Zone, where 50m x 50m spaced soil sampling identified a 600m wide by 900m long gold anomaly averaging 0.44 grams per tonne. Drilling will also test the gold-copper oxide mineralization found in the Jasper target, where Aztec recently identified 92.4m of 0.62 gpt gold and 0.52% copper in trenching. Aztec will drill one hole to approximately 500m depth to test one of the geophysical chargeability/resistivity anomalies identified by the induced

polarization survey conducted last year for gold-copper sulfide mineralization. “We are excited to initiate the Phase 1 drill program now that the rain season has passed and climate conditions are good for drilling,” said Joey Wilkins, President and CEO. “We have well defined drill targets at the California and Jasper porphyry oxide goldcopper targets due to the trench sampling, soil sampling, and detailed vein mapping we have completed to date.” The Cervantes Property is held under an option to purchase agreement with Kootenay Silver, whereby Aztec can acquire up to 100% interest in the property in two stages. World Mining Magazine www.ogsmag.com

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news

Breakthrough technology for converting coal into oil products

nergy technology company Arq has patented a new process for transforming coal waste into high-value, low cost fuels. The company’s product, Arq Fuels™, contains micro-fine hydrocarbons, predominantly less than 5 microns in size, an industry-first, presenting a unique method for converting coal into oil products. Previous methods for upgrading coal relied on changing the chemical structure of coal hydrocarbons, but they have proven to be economically unviable and environmentally damaging. The trademarked Arq Technology centres on mechanical processes that turn coal into micro particles and remove over 99% of the impurities. Arq Fuels are so pure and small that they can be blended directly into oil products, without the need for expensive liquefaction. As a result, the process is ultra-low cost and able to ‘stretch-thebarrel’ whilst simultaneously reducing prices for customers. “Coal is the world’s most abundant, and lowest cost fuel, with more than 10

“The trademarked Arq Technology centres on mechanical processes that turn coal into micro particles and remove over 99% of the impurities”

billion tonnes of waste lying discarded in the US alone,” said Julian McIntyre, Founder and CEO of Arq. “We estimate that the energy trapped in global slurry lakes is equivalent to 70% of Saudi Arabia’s oil reserves. That gives our cutting-edge technology an extensive, environmentally-beneficial and low-cost feedstock from which we are making these valuable fuels. With technology, we can open up a bright and alternative future for the coal mining industry.” Arq has been granted its first patent for fuel oil compositions and processes. The company has several other patents pending. Arq’s core team is built from industry leaders in technology, science, energy and finance. It includes chairman, Richard Campbell-Breeden, formerly of Goldman Sachs, Dr Paul Snaith, who was global head of R&D Downstream at Shell, Michael Treanor who was CEO of Shell Coal, industry experts RW West and CK Lane who both have over 30 years’ experience in mining and heavy construction, and Dr Paul Groves who was a managing director of Petrofac. World Mining Magazine www.ogsmag.com

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Altona joins Copper Mountain to form high growth copper producer

opper Mountain Mining Corporation and Altona Mining Limited have agreed to combine the companies by way of a scheme of arrangement under the Australian Corporations Act 2001. CMMC will acquire the entire issued capital of Altona for approximately A$93 million. Altona will then become a wholly owned subsidiary of CMMC. Altona’s key asset is the 100% owned undeveloped open pit Cloncurry Copper Project in Queensland, Australia. Cloncurry currently has a measured and indicated mineral resource containing over 2 billion pounds of copper and an inferred resource of 1.6 billion pounds of copper. There is potential to add resources at depth and along strike in each of the deposits, and through exploration at numerous prospective targets within Altona’s land package. CMMC’s principal asset is the 75% owned large open pit Copper Mountain Mine in southern British Columbia, Canada, near the town of Princeton. CMMC has a strategic alliance with Mitsubishi Materials Corporation which owns 25% of the Copper Mountain Mine and purchases 100% of the copper concentrate produced under a life of mine offtake agreement. CMMC is on track to achieve production guidance for 2017 of 75-85 million pounds of copper. The Copper Mountain mine has a large resource that remains open laterally and at depth. “Our Copper Mountain Mine is an efficient, stable operation with a long life ahead of it,” said Jim O’Rourke, President and Chief Executive Officer of CMMC. “For some time, CMMC has patiently been evaluating cost competitive opportunities to achieve a step-change in copper production. Cloncurry exemplifies the criteria of low-risk, near-term and high quality for which we have been seeking. We intend to progress

Cloncurry into production with the aim of doubling CMMC’s copper production profile to the range of 160 million pounds (73,000 tonnes) of copper per annum with significant precious metals credits. This additional copper production is timely to capitalize on the projected strong copper cycle.” Dr Alistair Cowden, Managing Director of Altona, added: “We are delighted to join CMMC to form a new high growth copper producer. We are excited to bring CMMC’s depth of experience in constructing and operating a large scale open pit copper mine to bear upon the Cloncurry Copper Project. Altona’s shareholders will receive a premium and will also gain immediate exposure to copper production just as copper prices have recovered and market shortfalls are predicted over the near term. This is a great opportunity for our shareholders to participate in the creation of a leading mid-sized copper producer.”

“This additional copper production is timely to capitalize on the projected strong copper cycle”

Geophysical survey commences over Wabamisk property Azimut Exploration has announced that its partner

Goldcorp is starting a heliborne geophysical survey on the Wabamisk Property in the James Bay region of Quebec. The SkyTEM electromagnetic survey will be performed by Geo Data Solutions Inc, based in Laval, Quebec, to enhance target definition on the project by delineating high-quality conductors. The $325,000

budgeted for this phase of work is funded by Goldcorp. The Wabamisk Property, held 51% by Goldcorp and 49% by Azimut, hosts several gold prospects in a geological setting similar to Goldcorp’s major Eleonore gold deposit about 70 km to the north. Goldcorp has the option to earn an additional 19% interest on the property by completing a feasibility study. World Mining Magazine www.ogsmag.com

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Alpha Natural Resources completes asset transfer to Lexington Coal

lpha Natural Resources has closed the deal with Lexington Coal Company to convey properties located in Kentucky, Tennessee and West Virginia. While transferring mostly idle and non-active assets, substantial reclamation equipment and ongoing royalty payments associated with the properties, the conveyance also eliminates self-bonding in West Virginia nine years early. Self-bonding is a provision whereby coal companies that satisfy certain financial conditions can operate without posting any surety or collateral—in effect, offering only their promise to pay for reclamation once mining operations have concluded. Steven Poe, Lexington Coal’s new CEO, says the conveyance includes approximately 250 permits and bonding representing $192 million. “Having five mines that are currently in

coal production, substantial infrastructure and capital, and an experienced, talented workforce will enable LCC to accelerate reclamation on

the company continues to divest isolated assets as markets warrant. “Our management team knows the properties and permits,

“Having 100 million tons of reserves will ensure a long runway for the assets, providing job security and continued opportunities where we operate” a five year timetable with less contingent exposure for the states in which we operate,” he said. Poe also says LCC will mine to reclaim, which will lower the cost of reclamation and will bring in revenue while

and has a demonstrated track record of success,” he said. “Having 100 million tons of reserves will ensure a long runway for the assets, providing job security and continued opportunities where we operate.”

Specific economic terms were not disclosed, but LCC will receive approximately $199 million in cash and $126 million in instalment payments to assist in the fulfilment of bonding, reclamation, water treatment and other obligations. Alpha Natural Resources CEO David Stetson called the conveyance a win/win for the regulatory agencies and the communities in which the assets are located. “LCC is well capitalized to meet its responsibilities to those local communities and to do so years earlier than originally planned,” he said. “The transaction also eliminates the risks associated with selfbonding, making this a transformational deal for West Virginia.” Alpha will continue to operate 20 mines and nine prep plants in West Virginia, and the company still expects to produce 14 million tons of metallurgical and thermal coal in 2017.

Monarques Gold pours first gold at Beaufor mine Monarques Gold has poured its first gold bar from the

Beaufor mine ore since acquiring the mine from Richmont Mines on 2 October 2017. The gold bar weighs 756 ounces (23.5 kg). “Today Monarques marks a major milestone in its history as it joins the coveted status of gold producers,” said Jean-Marc Lacoste, president and chief executive officer of Monarques. “Since acquiring the assets of Richmont Mines in Quebec, we have worked hard to optimize the Beaufor Mine’s performance,

including signing custom milling contracts so that the Camflo mill may operate at full capacity. Our main goal for the Beaufor Mine is to restore the mine’s profitability and extend its life.” Monarques Gold Corp has a large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada, including the Beaufor Mine, the Croinor Gold and Wasamac advanced projects, and the Camflo and Beacon mills, as well as six promising exploration projects. It also offers custom milling services out of the 1,200 tonne-per-day Camflo mill. World Mining Magazine www.ogsmag.com

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Cobalt Power Group to buy Canadian Cobalt Projects

obalt Power Group has entered into a definitive agreement with Canadian Cobalt Projects Inc. The agreement entails the acquisition of five separate blocks of prospective mineral claims encompassing approximately 7,500 hectares located in the Cobalt Camp region of northern Ontario, along with several applications for mineral tenements in historic cobalt mining areas of southern Sweden. The claim group is in close proximity to several historic mines, including the former producing Keely and Frontier Mines, and is also near the recently announced First Cobalt/Cobalt One lands. The presence of historical showings on the properties, combined

“Global supply and demand forces continue to drive the price of cobalt to new yearly highs as additional sources are sought by the energy storage industry”

with a favourable geological setting, enhances the exploration potential for the properties. Upon completion of the acquisition, Cobalt Power will become one of the largest landowners in the prolific Cobalt Camp/Silver Centre region of Ontario. “Global supply and demand forces continue to drive the price of cobalt to new yearly highs as additional sources are sought by the energy storage industry,” comments Dr Andreas Rompel, President & CEO. “The acquisition of the Canadian Cobalt Project turns us into one of the leading players in the Ontario Cobalt Camp, a region where major battery makers are beginning to focus their attention.”

Nevada Sunrise acquires Lovelock Cobalt Mine N

evada Sunrise Gold Corporation has signed a letter agreement to acquire a 100% interest in the Lovelock Cobalt Mine in Churchill County, approximately 100 miles east of Reno, Nevada. “The acquisition of the Lovelock Mine is yet another facet of our exploration operations in Nevada,” said Warren Stanyer, President and CEO of Nevada Sunrise. “The mineral endowment of Nevada is vast and the Lovelock Mine is a hidden gem within that legacy, considering the renewed interest in cobalt during the past year. Nevada Sunrise looks forward to applying modern exploration methods to the Lovelock Mine, which in today’s terms could be judged as artisanal workings.” The Lovelock Mine property area consists of 35 unpatented claims in the Cottonwood Canyon area of Stillwater range. It was discovered by George Lovelock and Charles Bell in about 1880 and produced a limited amount of nickel, copper

and cobalt from 1883. The primary cobalt mineral was identified as “cobaltite”, a compound of cobalt, nickel and arsenic. Records of a geochemical analysis from that era indicate that the average composition of the cobaltite contained 17.30% cobalt and 13.62% nickel. The mine operated from 1883 to 1890 to the 100 foot level, reporting 500 tons of cobalt and nickel mineralized material shipped to England for processing. An English company attempted smelting on site in 1898 but little or no production was made. No further production from the Lovelock Mine is known for well over a century. Nevada Sunrise is a junior mineral exploration company based in Vancouver, BC, Canada, holding interests in nine gold and lithium mineral exploration projects in Nevada, USA. World Mining Magazine www.ogsmag.com

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CATERPILLAR MORE THAN THE IRON

World Mining Magazine www.ogsmag.com

Caterpillar offers more equipment for mining than any other manufacturer, but when you choose Caterpillar you get more than the iron. Knowledge and expertise, technologies, end-to-end services, financing, all come together to create a unique mix of solutions to meet site-specific needs. And then there’s the unparalleled support of the Cat dealer after your machine has gone to work.

he best brands have a universal quality, yet they also make a personal, emotional connection. People the world over recognise Coca-Cola and Pepsi, although if blindfolded, most could probably not say which was which. Ask them their preference, however, and they’ll tell you at once. Everyone knows Caterpillar, too. Its world renowned mining and construction equipment has been around for nearly 100 years. Tough, reliable, rugged, state-of-the-art, are words that immediately spring to my mind. But why? I’ve never driven

World Mining Magazine www.ogsmag.com

a dozer or a dump truck, let alone operated a piece of underground machinery, yet I perceive them to be such. How do they do that? Caterpillar Tractor Company was created in 1925 by a merger of The Holt Manufacturing Company and CL Best Tractor. Caterpillar Inc is now the world’s largest manufacturer of construction and mining equipment, with financial products to suite its customers’ needs. The Cat® brand itself was not registered for another 25 years, but it has since become the cornerstone of the Caterpillar brand portfolio.

“Cat® is literally everywhere. Licensed Cat brand products are sold in 150 countries and it’s said that over 50 million Cat items are purchased globally every year”

caterpillar more than the iron Cat® is literally everywhere. You see the logo on clothing, shoes and items of personal adornment, not to mention phones, watches and toys. Licensed Cat brand products are sold in 150 countries and it’s said that over 50 million Cat items are purchased globally every year. Cat products can be purchased online from branded websites or in over 100 dedicated Cat brand stores as well as 100,000 other retail outlets. The Caterpillar brand of mining equipment is geared towards total cost of ownership or the promise of ‘total life cycle value’. Cat products are designed to be reliable, durable, and of superior quality, allowing for multiple rebuilds, ease of serviceability, reparability and outstanding support, provided almost exclusively by Cat dealers – a network crucial to the brand’s sustainability. Brand awareness is a big business, but no brand would last long if the product failed to live up to its reputation. Many elements must combine to strengthen the success of a brand, not least of which are the parts that come together to assemble a piece of machinery.

Suppliers

In common with many manufacturers, Caterpillar has increasingly contracted its component production to third parties. This has many advantages, including the encouragement of competition, which drives up quality and drives down prices. It also adds layers of risk, however, from supplier financial viability and business continuity to misuse of intellectual property and any number of practical

difficulties which could cause business disruption, such as the ability to increase or decrease production levels in line with demand, maintain quality control and on-time delivery. Caterpillar believes that to remain world class, its suppliers must in turn be world class, so the company takes a great interest in promoting continuous improvement in its supply base. Caterpillar actively encourages a partnership relationship with its key strategic suppliers, recognising their progress with an award under its Supplier Quality Excellence Program (SQEP). The scheme is designed to reward quality and delivery performance in particular, examining manufacturing processes, training plans, customer service and risk management among other things. Certification is valid for a year and the facility is assessed again for recertification the following year. The awards recognise continuous improvement with a four tier grading system, which progresses from bronze to silver, to gold and then platinum. AKG, a leading supplier of high-performance cooling systems and heat exchangers, is a great example of SQEP at work. AKG has a dozen plants around the world, seven of which supply products to Caterpillar. So far this year, five of them have been awarded honours in the SQEP program. The French and Chinese plants took their first step on the ladder with bronze awards this year, while the US plant in Mitchell, South Dakota won a gold as its first award. The Indian plant stepped up to platinum after last year’s gold award, and AKG’s Latvian plant achieved a platinum level award after three consecutive golds.

World Mining Magazine www.ogsmag.com

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“Our relationship with an OEM is just as important as the product,” says Adam Jury, AKG’s Global Key Account Manager for Caterpillar, based in Mebane, North Carolina. “We have strong competitors, so you have to differentiate yourself in every way possible.” Supplier awards amount to prestigious recognition, he says, “but it’s not about achieving SQEP once, it’s about maintaining that consistency over time. With the awards we have won this year we have demonstrated the consistency that Caterpillar is looking for.” A ‘partnership relationship’ for AKG means “getting involved in projects at a very early stage and planning them together,” says Dr Armin Martin, Group Vice President, Sales and Engineering. “We work together in the research and development phase, sometimes years in advance of product introduction.” The cooling manufacturer is one of the first suppliers chosen after the engine is selected, he explains. “When you design a new machine, the first thing you do is choose an engine. The next

World Mining Magazine www.ogsmag.com

“Caterpillar actively encourages a partnership relationship with its key strategic suppliers, recognising their progress with an award under its Supplier Quality Excellence Program (SQEP)”

thing is to choose a cooler for that engine and then the rest of it follows.” It makes sense all round for critical components to be treated this way. Another key supplier, ABB, has a similar experience. The ABB facility in Sorocaba, Brazil, manufactures a range of circuit breakers used by Caterpillar to produce power generators. The Brazilian factory won its first gold award this year, joining four others around the world with SQEP certification, those being ABB facilities in the United States (platinum), Switzerland (gold), England (silver) and China (bronze). “Such approval enhances the partnership, bringing the relationship to a strategic level with great significance for new business development,” says Paolo Pescali, regional manager for Electrification Products division, South America. “ABB’s knowledge of the high standards required by Caterpillar around the world helps it to differentiate from competitors when bidding for business.”

Surface mining equipment

Customers are at the heart of the Cat brand, and to make sure the customer gets the right machine for the job, Caterpillar offers the widest choice in the industry. When it comes to surface mining equipment, the Caterpillar range includes everything you can think of, from dozers, drills and draglines to trucks, shovels, loaders and a host of support equipment. Innovative, productive and efficient, Caterpillar equipment helps its customers achieve best-in-class performance, too. For drilling, Caterpillar rotary drills and track drills, together with its advanced drilling tools and Halco high-performance hammers and drill bits, ensure there’s a Cat drill to meet every need – there are six rotary drills in the range, from the MD6240 with its basic bit load of up to 24,000 kg, to the MD6750 with bit load capacity up to 75,000 kg (up to 165,346 lb), and five track drill models.

caterpillar more than the iron

World Mining Magazine www.ogsmag.com

caterpillar more than the iron

From removing overburden to loading haul trucks, Caterpillar hydraulic shovels and excavators are proven across various mining applications. Design upgrades have reduced swing times and improved energy-efficient motion, while a sturdy undercarriage and high-level diagnostic systems reduce downtime. Caterpillar offers the widest payload range in the industry, including smaller hydraulic excavators often used in support applications. AC-drive electric rope shovels are a productive and efficient alternative for removing large amounts of overburden and ore. Numerous technological upgrades in the form of both software and machine parts make Cat rope shovels more efficient by increasing swing and lowering speeds. Draglines are the largest and most powerful machines in the mining industry, providing the fastest and most environmentally friendly means

of overburden removal. With more than 45 sets of specifications across a range of sizes, Caterpillar’s application engineers can set up customers with the machine that meets their exact needs. Wheel loaders are essential tools for earthmoving on any mine site. Cat wheel loaders offer a variety of buckets and features allowing extensive customization to meet site-specific needs. These machines offer efficient production in the toughest conditions, with five models ranging from the 988H with a rated payload of 11.4 tonnes up to the 994H which can lift up to 35 tonnes. The 994H, the largest of the Cat wheel loader line, features four loader linkage configurations and a range of buckets to tailor the machine to the job. While optimally matched to Cat 785, 789 and 793 mining trucks, the 994H has the design flexibility, capacity and durability to deliver reliable, low-cost

production in any operation. Lift configurations for the 994H include standard, high lift, extended high lift and super high lift, providing dump clearances at maximum lift that range from 19.2 feet to 23.3 feet. Cat mining trucks are the workhorses of the world’s mine sites, with a range that offers customers the ability to choose the size and type to match their operation. Moving high volumes of material at the lowest possible cost is the goal of every surface mining operation. The selection of a truck fleet is a significant investment that requires careful consideration, so Caterpillar offers a wide range of mechanical drive mining trucks that deliver what mining customers demand: physical availability, optimized payload, fuel efficiency, operator comfort, enhanced serviceability and best-in-class performance. Caterpillar also makes four models of AC electric drive trucks. World Mining Magazine www.ogsmag.com

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caterpillar more than the iron Cat off-highway and articulated trucks are built for tough mining, quarry and earthmoving applications. These flexible machines can be tailored to meet a wide variety of support functions in the mining industry. They help customers feed their production plants, manage overburden and haul dirt quickly, safely and efficiently. Articulated trucks, designed for rough terrain, include a unique Ejector model that allows for quick and clean dumping on the go. The most important machines on a mine site, however, may not always be the ones loading and hauling ore. Support equipment has a significant impact on mine-site productivity by making it possible for production machines to work quickly and efficiently. When haul roads are kept in top condition, trucks run faster, cycle times improve and more ore is produced. Good road conditions also reduce truck maintenance, lower fuel costs and reduce tire damage. Support equipment like wheel dozers, motor graders and track-type tractors are therefore key enablers to lowering cost per ton and improving profitability. Track-type tractors are some of the most versatile machines in mining —

moving material to build, maintain and reclaim mine sites. These universal machines work in dozens of different applications, climates and environments, and can be customized with tools like rippers, rakes, coal blades and reclamation blades to meet site specific requirements. Wheel dozers combine the production capability of a tracktype tractor with the all-terrain maneuverability and versatility of a wheel loader. Motor graders help create and maintain constant grade and proper drainage on haul roads, having a direct influence on mine-site productivity and costs by enabling trucks to run faster and operate more safely.

Going underground

As miners go deeper underground they need safe, reliable equipment designed to handle demanding conditions. The Cat product line includes drills, loaders and trucks for hard rock applications, customized systems for longwall mining and precision-engineered products for room and pillar operations. No two mines are the same, especially when it comes to underground

operations. Every mine’s individual conditions are unique, so Caterpillar does not offer one-size-fits-all solutions. Its underground systems are designed specifically, whether for hard rock or longwall operations, and individual products can be customised to fit a particular mine. At the MINExpo event in 2016 Caterpillar reinforced its commitment to underground mining with new products like the R1700K LHD, the AD22 truck, the new Cat® Rock Straight System, and a high torque drive system for longwall. The new Cat R1700K underground loader features multiple engine configurations, a new ergonomic operator cabin and greater payload to help miners drive down costs and boost productivity. With a compact profile, efficient power train and rugged construction the new R1700K delivers a payload of 15 tonnes (16.5 tons), 20 per cent more than the previous model and supporting efficient three-pass loading of the 45-tonne-capacity (50-ton-capacity) Cat AD45B Underground Truck. After rigorous field testing is completed this year, the R1700K will be commercially launched in 2018.

World Mining Magazine www.ogsmag.com

â&#x20AC;&#x201A;â&#x20AC;&#x201A;World Mining Magazine www.ogsmag.com

caterpillar “Cat mining trucks are the workhorses of the world’s mine sites, with a range that offers customers the ability to choose the size and type to match their operation”

more than the iron

World Mining Magazine www.ogsmag.com

“The Rock Straight System is the first commercial continuous mining and hauling system for underground hard rock applications, and it is now commercially available after extensive field testing”

World Mining Magazine www.ogsmag.com

Also at MINExpo 2016, Caterpillar announced a new, smaller, underground truck to its hard rock mining product line. The new 22.0-tonne-payload AD22 articulated dump truck is the smallest in the Cat product line, but it is designed to deliver the productive performance and durability of its proven, larger counterparts. The AD22 makes best use of proven Cat components, such as the C11 ACERT diesel engine and it shares major components with a number of Cat machines to help ensure good parts availability and reduce inventory costs. The wide body design makes loading faster and easier. Multiple dump body sizes are available to optimize the truck for all mining applications suited to this size class. The Cat® Rock Straight System is a fully mechanized longwall system designed for continuous mining of flat and tabular deposits and reefs of hard rock minerals. The system combines the use of a hard rock shearer that uses Cat Activated Undercutting Technology, which is specifically designed for the extraction of bedded hard rock deposits. A low-profile hard rock chain conveyor and hard rock hydraulic roof supports complete the system, which delivers simultaneous cutting, loading and hauling—controlled by the proven Cat longwall automation system. The Rock Straight System is the first commercial continuous mining and hauling system for underground hard rock applications, and it is now commercially available after extensive field testing. The efficient mining system is designed to replace conventional drill-and-blast operations in low heights, ranging from 1.3 to 2.0 meters (4.2 to 6.6 ft) and in bedded deposits such as some types of platinum, copper and gold deposits.

Global footprint

Caterpillar's global reach and presence is unmatched in the industry, serving customers in more than 180 countries with more than 300 products. More than half of the company’s sales are outside the United States, and it operates more than 500 locations worldwide if you count manufacturing, marketing, logistics, service, R&D and related facilities. Cat products may be manufactured around the world, but they are all assembled in Caterpillar owned facilities, following the same stringent Cat Production System at every location to ensure consistent quality. Caterpillar established its first major facility outside the United States more than 60 years ago in the UK. Today, the company employs more than 10,000 people there in 20 major facilities. The UK is one of the largest bases for Caterpillar outside the US, and its UK businesses export a significant portion of their manufactured products to a wide variety of customers and markets. The company soon opened facilities in a number of other countries in the EAME region such as Belgium, France, Germany, Italy, The Netherlands, Switzerland, Russia, Poland, South Africa and the United Arab Emirates. The EAME Region is an important manufacturing base and the largest Caterpillar distribution division outside of the United States with approximately 25,000 employees, of whom most are in the European Union within 36 manufacturing locations. Caterpillar's presence in the Asia Pacific region includes Australia, China, India, Japan, New Zealand, South Korea and Southeast Asia. Nearly 20 per cent of Caterpillar's employees and nearly 30 per cent of its global dealers are located in the Asia Pacific area. Caterpillar manufactures medium wheel loaders for the North American market in Aurora, Illinois, but also produces them in Japan, Brazil, India and China. Large wheel loaders are manufactured exclusively in the United States on three separate assembly lines in Aurora, Illinois. Caterpillar has four major plants in the Peoria area: the Mapleton Foundry, where diesel engine blocks and other large parts are cast; the East Peoria factory, which has assembled Caterpillar tractors for over 70 years; the Mossville engine plant, built after World War II; and the Morton parts facility. Major facilities in Europe include Grenoble and Echirolles in France, where track type tractors, track type loaders, wheeled excavators and undercarriage components are made. A facility in Hungary handles fabrications and buckets, and in the UK, mini excavators are made in Leicester, articulated dump trucks at Peterlee and Perkins engines in Peterborough. Cat underground products are made in four key locations: Luenen, Germany; Zhengzhou and Langfang, China, and Rayong, Thailand. Caterpillar has made significant investments in its manufacturing footprint in Thailand in recent years. The Underground Mining Facility started production in October 2012, while Caterpillar’s Rayong Tractor Facility started production in May 2013, mainly for export to global customers. Roof supports for underground coal mining are designed by an experienced team in Germany, from where the castings are also sourced. The roof supports are subsequently built and assembled by a skilled team in Zhengzhou, China. As weld quality is critical on roof supports, to ensure consistent high quality the leadership team in Zhengzhou created a welding school within the facility.

caterpillar more than the iron

World Mining Magazine www.ogsmag.com

GREAT INDIVIDUALLY

SUPERIOR TOGETHER Maximize your output with Volvo’s outstanding combination of EC950 and A60. Volvo’s new flagship EC950E crawler excavator has already proven to be extremely competitive in its 95 ton weight class. The new A60H is the world’s largest and most powerful articulated hauler. On their own, these heavy weight machines will take productivity for any type of hard rock or earthmoving operations to new levels. Let them work together and you will never want to separate them. www.volvoce.com

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Automation

There’s more to Caterpillar equipment than size and strength, however. It’s also getting smarter. Automation is changing the way mines and quarries operate, and Caterpillar now offers equipment from fully autonomous haulage systems to remote control dozers to automation technologies that can be retrofitted to competitors’ machines. Miners are keen to adopt automation. Taking operators out of hazardous areas reduces the risk of accidents, which is not only important for the people who might otherwise have been hurt – it

World Mining Magazine www.ogsmag.com

reduces downtime, too. Mine sites that put autonomous technologies to work have experienced a number of valuable benefits, including increased productivity, higher equipment utilization and less machine damage. Caterpillar is developing autonomous mining truck technology for an expanded range of models, including other brands. At a Cat® MineStar™ Command for hauling demonstration earlier this year at the company’s facility in Arizona, Caterpillar announced a project to adapt hardware and software for retrofitting the Komatsu 930E mining truck with Cat autonomous

technology. This interoperability initiative is driven by mining companies’ goal of reducing mining costs using their existing fleets. Cat MineStar System is a comprehensive suite of mining technology products, consisting of a number of configurable capability sets for both surface and underground mines that allow customers to scale the system to their needs. The system helps manage everything from material tracking to sophisticated real-time fleet management, machine health systems, autonomous equipment systems and more.

caterpillar more than the iron

“Cat MineStar System helps manage everything from material tracking to sophisticated realtime fleet management, machine health systems, autonomous equipment systems and more”

World Mining Magazine www.ogsmag.com

THE RIGHT ATTACHMENT F

Headquarters 8693 NW 70th St, Miami, FL 33166

PH (305) 594 - 4700 sales@teranindustries.com

Midwest Location 6A Terminal Road, Peru, IL 61354

Fax (786) 749 - 2682 www.teranindustries.com.

The names and logos Caterpillar速, Komatsu速, John Deere速, Volvo速 or any other original equipment manufacturers are registered trademarks of the respective original eq

FOR THE RIGHT JOB AT THE RIGHT PRICE

1 YEAR LIMITED WARRANTY MODEL

APPLICATION

IMPACT FRECUENCY (bpm)

Dia. Of Tool (mm)

THH100

For Cat Skid Steer - 226/246 - Box Type

800-1400

THH200

For Cat Skid Steer - 246/262 - Box Type

700-1200

THH300

For Cat Skid Steer -262/299 - Box Type

600-1100

THH430BH

For Cat 416/428 Backhoes JD310/410 Case 580

400-800

THH430BEX

For Cat 307/308 - Box type

400-800

For Cat 311/312/314 - Box Type

350-700

100

For All 12-16 Tons Excavator 65mm Pin

350-700

100

For Cat 315 - Box Type

400-530

125

For All 14-20 Tons Excavator 70mm Pin

400-530

125

For Cat 320 “B” Linkage - Box Type

400-800

135

THH2000PC

For All 18-26 Tons Excavator 80mm Pin

400-800

135

THH2200B “CB”

THH800 THH800EC THH1600 THH1600PC THH2000B

For Cat 325D “CB” Linkage - Box Type

350-500

140

THH2200B “C”

For Cat 325 “C” Linkage - Box Type

350-500

140

THH3000B “D”

For Cat 330 “D” Linkage - Box Type

350-700

150

THH3000BJD

For All 28-36 Tons Excavator 90mm Pin

350-700

150

THH3200B “DB”

For Cat 336D “DB” Linkage - Box Type

300-450

155

For All 34-42 Tons Excavator 100mm Pin

300-450

155

For Cat 345 - Box Type

250-400

165

THH3200BJD THH3500B “TB”

quipment manufacturers. All descriptions, numbers and symbols are used for reference purposes only. Teran Industries, Inc. is not affiliated with the brand mentioned above.

On surface mine sites, autonomous trucks help make cycle times more consistent while ensuring that equipment operates within prescribed parameters. Underground, operators based in remotely-located control stations load and dump material under tele-remote control. Then, their load-haul-dump machines steer autonomously during hauling, preventing accidental contact with mine walls. In some cases, sidewall collisions that would normally result in machine damage have been reduced to zero. Productivity is also improved through improved equipment utilization, uninterrupted by shift changes or, in underground operations, the need to evacuate areas for ventilation after blasting.

World Mining Magazine www.ogsmag.com

Three coal mines running complete Cat Longwall Automation systems in Australia have improved their coal output by 90% without compromising safety or availability. One mine has set a production record by producing 330,000 tonnes (363,762 short tons) in a single week. The benefits go beyond increased production – improved safety, increased machine availability and increased component wear life are also possible with a complete longwall system. For customers who continue to use human beings to operate machinery from the cab, advancements are continually being made to improve safety. One recent development is the Cat Driver Safety System (DSS), a non-intrusive, in-cab fatigue

detection technology that instantly alerts operators the moment fatigue or distraction is identified. Fatigue detection technology works by monitoring eye-closure duration and head pose. If the DSS detects a fatigue or distraction event, the operator is immediately alerted through configurable in-vehicle seat vibration and / or audio alarm. The fatigue or distraction event is sent to a 24-hour monitoring centre to classify and confirm the event, where it is analysed by Caterpillar experts who can provide suggestions to improve operational efficiency. Cat Smartband wearable technology is also available to enable workers to monitor sleep and fatigue levels themselves. The technology monitors

caterpillar more than the iron

“The global Cat dealer network is quite unparalleled, delivering expert service, integrated solutions, aftersales support, fast and efficient parts fulfillment, world-class remanufacturing capabilities and more”

the worker’s sleep and wake periods and converts the data into an effectiveness score – viewable by the employee at any time with the push of a button. If a score is approaching 70% – the employee is considered to be fatigue impaired. Caterpillar Safety Services can help mine managers integrate this technology and will guide them in leveraging the data to build a robust fatigue management system. A Fatigue Risk Assessment (FRA) was carried out at the Aurora, North Carolina, mine of Potash Corp to understand the feasibility of implementing the DSS to reduce operator fatigue and distraction and to increase the safety of the haul truck drivers. Potash Corp has since

implemented a full installation of the Driver Safety System.

Services

As well as being the world’s leading manufacturer of equipment for the mining industry, Caterpillar is also the leading provider of a number of support products, services, knowledge and solutions that make it definitive one-stop shop for miners. Its service portfolio includes financing, innovative trade arrangements, and rental and used products to help customers get the equipment they need. It also provides generator sets to help customers power their operations, rail products and services to transport materials around the world, and a line of on-highway

and bare chassis trucks that can be customized to meet specific support needs. And then there’s the dealer network, one of the biggest differentiators for the brand. If the Cat product line is unmatched in the industry, when it comes to service and support, the global Cat dealer network is quite unparalleled, too, delivering expert service, integrated solutions, after-sales support, fast and efficient parts fulfillment, world-class remanufacturing capabilities and more. One of the strengths of the Caterpillar brand, they say, is that they are as committed to the truck you bought yesterday as the one you’ll buy tomorrow. That’s why customers return to Caterpillar in such numbers. World Mining Magazine www.ogsmag.com

AKG COOL CUSTOMERS AKG is a leading supplier of highperformance coolers and heat exchangers across a multitude of applications, including mining equipment and machinery, in which capacity five of its global plants have earned awards from Caterpillar’s supplier quality excellence program (SQEP) so far this year.

ounded in Germany in 1919, AKG now operates twelve manufacturing facilities around the world. The company has an international reputation for custom quality heat exchangers, and its products serve the construction, forestry, agriculture, on-highway, compressor, material handling, industrial, off-highway, and

World Mining Magazine www.ogsmag.com

mining markets, including major manufacturers of mining equipment such as Hitachi, Komatsu – and, of course, Caterpillar, with whom it has had a close relationship for 35 years. Seven of AKG’s global plants supply products to Caterpillar, and so far this year, five of them have been awarded honours in CAT’s supplier quality excellence program (SQEP). AKG’s Latvian plant has been awarded platinum level, the highest honour available, after achieving gold for the previous three consecutive years. The Indian plant was promoted to platinum after last year’s gold award, and the US plant in Mitchell, South Dakota won gold as its first award. AKG’s plant in China won a bronze, and just at the time of writing it was announced that its facility in France had also been recognised with a bronze award. “Our relationship with an OEM is just as important as the product,” says Adam Jury, AKG’s Global Key Account Manager for

“It’s not about achieving SQEP once, it’s about maintaining that consistency over time” Caterpillar, based in Mebane, North Carolina. “We have strong competitors who make good products, so you have to differentiate yourself in every way possible.” Supplier awards amount to prestigious recognition, he says, “but it’s not about achieving SQEP once, it’s about maintaining that consistency over time. With the awards we have won this year we have demonstrated the consistency that Caterpillar is looking for.” Companies often refer to a ‘partnership relationship’ with their customers, but what does this mean in practice? “For us, it means getting involved in projects at a very early stage and planning them together,” says Dr Armin Martin, Group Vice President, Sales and Engineering. “We work together in the research and development phase, sometimes years in advance of product introduction.” The cooling manufacturer is one of the

first suppliers chosen after the engine is selected, he explains. “When you design a new machine, the first thing you do is choose an engine. The next thing is to choose a cooler for that engine and then the rest of it follows.” The coolers are always individual to the engine, he explains, so if there are two different engine versions for the same dump truck, there would have to be two RFQs (requests for quotation), because every engine functions differently. As the design of the machine evolves, therefore, it’s important for the cooler supplier to follow every stage of development. “When they add components to the machine, the performance of the engine changes and the requirements of the coolers change,” explains Martin. “It can take up to seven or eight iterations before the machine is fully developed, so we keep talking with them over the development of every project.” The AKG plant in Latvia is the first to achieve Caterpillar’s platinum award. It began to do business with CAT in 2012 and earned its first gold award after two years, going platinum this year after three successive golds. What does that say about the company? “It says we have very high quality, and a delivery performance not far short of 100 per cent,” says Gerhard Ritzmann, plant manager and managing director since the factory opened in 2005.

“This is what the customer wants.” AKG Latvia supplies 30 or 40 different coolers to Caterpillar, including oil coolers, radiators, charger coolers and fuel coolers. Orders vary widely, week by week, depending on the machines that Caterpillar itself has taken orders

AKG Cool customers

for. “With this kind of complexity, quality and delivery performance are paramount,” says Ritzmann. ”You need to develop a production system that can follow the demands of the customer.” Such a system is often known as lean manufacturing, a way of working based on the legendary Toyota Production System, which AKG has adopted. Make to order is a fundamental element of lean manufacturing, as is continuous improvement. To be considered truly ‘lean’, a manufacturing facility must have this embedded in its culture. “You don’t have to look for big improvements,” says Ritzmann. “You must find thousands of small improvements.” One aspect of the Japanese inspired system that is not easily learned in Western culture is ‘jidoka’, the principle that work should stop immediately a problem becomes evident. In the traditional Western factory, stopping the line used to be almost a hanging offence, but in the enlightenment of the Toyota Production System it’s seen quite differently, as it allows an aberrant process to be corrected before any defective products are made. “To develop this culture is difficult because people are not designed for stopping,” says Ritzmann. “People are designed

for working around an abnormal situation. We start teaching jidoka when we first hire people, so it’s part of their induction into the company. That way people learn that it’s OK to stop when something is wrong. They get into trouble if they don’t stop!” Even if someone stops the line mistakenly, this is not a hanging offence either, as it identifies a training need, which leads to another small improvement. AKG’s facilities are all equipped to

“You need to develop a production system that can follow the demands of the customer” a high standard, so the quality of the product can be guaranteed around the world. In practice, however, as Caterpillar manufactures different machinery in different places, AKG’s plants tend to specialize accordingly, but they have to be ready to adapt when the need arises. “Our two US plants supply up to a dozen Caterpillar sites in the US,” says Adam Jury, “but they are relocating production of one of their machines to Indonesia. What makes us a good fit with Caterpillar is that we have a global manufacturing footprint that matches that of CAT’s. We have very consistent technology,

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“Our new modular cooling system uses a special kind of air cooling fins, with a very high performance with low cooling air pressure drop. That allows us to slow down the fan speed to reduce the engine’s fuel consumption”

tooling and quality levels across all of our plants, so we can easily transfer products from one location to another without significant investments.” Caterpillar’s European footprint is different from the US, Jury explains. The Dortmund plant in Germany is CAT’s global base for mining shovels, whereas in the US they build mining trucks and large dozers. No matter how good you are, nothing stays the same for long, however, especially with a system in which continuous improvement is a fundamental philosophy. “We have recently been working on our new modular cooling system (MCS),” says Hans Palm, AKG’s New Product Introduction Director, based in Germany. Coolers in AKG’s existing range are all single units, but the company has patented a cost effective method of plugging together individual modules that adds great flexibility and versatility. “How we put the cooler together is completely new in the market,” explains Palm. “There are other modular systems, but we have a special plug and seal connection which is a new development. We can use this connection for oil coolers, charger coolers and for radiators. The connectors are made of different materials according to their application and the modules are put together in a different way for each piece of mining equipment.” A great advantage here is that the configuration of the individual modules can be adjusted to make them adaptable to different ambient conditions. So if an OEM sells a piece

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of equipment for use in the Pilbara region of Western Australia, it might need its cooling system configured a little differently from the same machine sold in Northern Canada. “We can accommodate different ambient temperatures and dusty environments,” explains Palm. “We can fit them to meet any specific ambient conditions. But the cooler fits into the same envelope so they don’t need to redesign their surrounding structures for different conditions. We just rearrange them and plug them together in a different way.” New product development also has to keep pace with ever tighter emissions standards and other regulations, and these are just some of the drivers behind continuous product improvement. “Our new modular cooling system uses a special kind of air cooling fins, with a very high performance with low cooling air pressure drop,” explains Palm. “That allows us to slow down the fan speed to reduce the engine’s fuel consumption. We have also developed anti-clogging fins. That means that we have less fouling in our cooling systems, so the cooling performance is always near 100 per cent. And you don’t have to clean it so

often. And the weight of our coolers is usually also lower than other systems.” AKG is currently working on a major technological investment programme, as Dr Armin Martin explains. “We have a network of engineering offices all over the world that are interconnected. We have international teams working on particular projects because a requirement of a major customer is often for the same machine to be produced in different locations. It should be exactly to the same spec and the same quality. So we have global key account teams that cover all the locations from where a customer requires our products. We have seven global key account teams, of which Adam’s Caterpillar team is one.” This team communicates with the customer’s engineering department and all the AKG facilities where the cooler has to be produced, in order to develop a common design that can be produced in the different AKG factories. “We have a research and tech centre here in Germany,” Martin continues, “and we are currently investing a

couple of million dollars into a centre in America. Some of our research and development activities are also now in Asia because some of the big mining firms, like Komatsu and Hitachi, do their research in Asia, and they want us to be close. We have an engineering office in Japan, so we can talk in Japanese to their engineers.” As it approaches its centenary, AKG’s growth has been entirely organic, and the North American market currently represents a little over a third of its global business. “Our plan is to grow our Asian market to a third, so we have a third in North America, a third in Europe and a third in Asia,” concludes Dr Martin. “We hope to achieve that by 2025.

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bullseye distributors ltd MINING MEAL SOLUTIONS DELIVERED AT OYU TOLGOI Of all the logistical tasks in managing a modern mining operation, getting a constant supply of quality nutritious food to fuel the appetites of thousands of miners isn’t the first problem which normally springs to mind. But no mining company should ever underestimate the importance in morale and performance of getting good food - on time, day after day - to those who do one of the toughest jobs on the planet.

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bullseye distributors ltd

MINING MEAL SOLUTIONS DELIVERED AT OYU TOLGOI

aced with the fact that meal delivery to mining teams was at best a low-tech part of an otherwise meticulously planned high-tech operation, one British company saw an opportunity to put the experience it gained in the UK social care sector to the test by offering mining operations the chance to switch to a simple but highly effective meal delivery system. And now the system has been proven across the globe at giant operations such as Oyu Tolgoi in Mongolia and Ambatovy in Madagascar. Bullseye Distributors works closely alongside mining management and their contracted catering operations to provide tailored meal delivery solutions based on its sustainable sealed tray system. It not only gives protection and sealed-in nutrition for meals delivered to remote operations but it also reduces food wastage and eradicates spillage along the way. But the company goes further by including kitchen team training on how to get the best out of their system as well as advising and implementing every part of the process - and even resolving packaging and food waste issues in some of the most ecologically sensitive areas of the world.

Ambatovy

“Regular, nutritious food delivery is essential. We believe our system will significantly contribute to the mine’s efficiency and productivity”

At its first mining site operation, Bullseye’s close working relationships resulted in a revolution in food quality and service on the Indian Ocean island of Madagascar at the Ambatovy mining project. It came about because the operation demanded that there was minimal down time around the lunch break, which meant that pack meals were essential. However, the workforce was very dissatisfied with the existing system. In addition, those behind Ambatovy were committed to contributing to sustainable development in Madagascar – a unique eco system - far into the future and long after they have left. This commitment dovetailed perfectly with Bullseye’s philosophy even down to the smallest detail in adopting ecofriendly meal trays for the 1,700 workers there who need a healthy, nutritional meal three times a day. And now the same proven approach has taken off at the Oyu Tolgoi mine in the remote Gobi Desert in Mongolia. Bullseye meal trays are made from eco-friendly paper pulp and the separate compartments are sealed with film lids by purpose-designed Bullseye machines. This means that food such as a typical three course lunch of meat with rice, vegetables and salad and dessert or fruit can be delivered to even the remotest parts of the mine without affecting quality and presentation. Before these new trays were introduced it was not possible to include sauces or juices with the meals as these would run into other foods in transit. Now the meals, which are freshly made and packed under clinical conditions in a central kitchen, can be sealed, stacked and shipped to workers without the problems of the past and with the big advantage of reducing the need to transport workers to central feeding points. The system also brings flexibility of scaling up food delivery at times of workforce expansion or during the construction of new facilities at the mine. Bullseye has even designed and produced tailored, thermallyinsulated, delivery bags to transport each consignment directly from the kitchen and helped design the labelling and tracking system necessary to ensure prompt personalised food delivery World Mining Magazine www.ogsmag.com

even to the remotest parts of the mine. And at the end of the process, the used paper pulp trays and food residues can be collected and separated afterwards for recycling or beneficial recovery. As Peter Prior of Bullseye, which developed the packed meal system for social care meal deliveries, explains: “When we were first approached to resolve a meal delivery problem in the mining sector, we identified a number of issues preventing not just a sustainable meal delivery but also affecting the quality of food and presentation. The old-fashioned polystyrene food boxes they were using not only meant meals got cold quickly but were also difficult to transport and food quickly became messy and mixed together, losing its appeal. The polystyrene was also not environmentally friendly and so contributed to waste disposal problems. Throughout the day, miners work hard and deserve good food and our system allows this. At Oyu Tolgoi by 2021, around 6,000 workers will extract nearly half a million tonnes of copper and 425,000 ounces of gold every year. For them, regular, nutritious food delivery is essential. We believe our system will significantly contribute to the mine’s efficiency and productivity.” The Bullseye trays also allow the full range of cooking and storage options as they can be frozen to minus 40°C and heated to 205°C in conventional or microwave ovens. But the new thinking in food packaging and delivery also brought other advantages. It allowed the site catering team the freedom to reconsider the possibilities of new ingredients and sauces. On this basis, they were able to create a new range of menus with greater choice and appeal. Since he launched his range of food trays and associated

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bullseye distributors ltd MINING MEAL SOLUTIONS DELIVERED AT OYU TOLGOI equipment in the UK in 2009, Peter Prior has captured markets in sectors ranging from care homes and meals-on-wheels to prison cells and the production sites of environmentally conscious ready-meal makers. But the global reach of his simple web site is what led to the enquiry for a solution in Madagascar and, more recently the Bullseye reputation spread to Oyu Tolgoi. Now the interest goes even further as Bullseye took the big step to exhibit at MINExpo 2016 in Las Vegas Nevada, USA. As Peter says, “The interest in what we offer was phenomenal with many saying that food delivery is an area that is one of their biggest headaches. Because mining in remote and highly sensitive areas attracts attention in the media and elsewhere, being at MINExpo convinced us that even the giant corporate operations have to pay attention to the finest detail in every aspect of the impact they make. Now it is clear from our discussions that they are seeking the greenest route to feeding their employees and helping improve food quality into the bargain. Just as importantly, by using our eco tray system, we can help ensure there is no residual food and packaging waste problem left behind as a nasty taste in years to come.” Bullseye can be contacted on + 44 1525 863911 or in the UK on 0800 011 2311. The email address is info@ bullseyedistributors.co.uk and the web site is www.bullseyedistributors.co.uk

“Even the giant corporate operations have to pay attention to the finest detail in every aspect of the impact they make”

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TWENTY TWENTY TWENTY In January this year Goldcorp unveiled an ambitious five year growth program to drive increased net asset value per share. The target is to increase production, increase gold reserves and decrease costs by twenty per cent – each.

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Goldcorp is a leading gold producer focused on responsible mining practices with safe, low-cost production throughout the Americas. In 2016 the company focused on decentralization and restructuring to drive accountability down to the mine site. This included strengthening the management team, upgrading the quality of the portfolio and committing over $1 billion in new growth projects. These changes resulted in an ambitious 20/20/20 five year growth strategy, announced in January 2017, which aims to deliver a 20% increase in production, a 20% increase in gold reserves and a 20% decrease in all-in sustaining costs. It has been a busy year, therefore, for Goldcorp’s development projects and established mines alike.

n Canada, Goldcorp has four producing mines (three in Ontario and one in Quebec) and three development projects. The Porcupine operation is in Timmins, Ontario, one of the world's great gold producing camps. The Red Lake Mine, one of the world’s largest gold mines, is located in another prolific gold district, approximately 150 miles northwest of Dryden, Ontario. Musselwhite mine is a fly-in/fly-out operation in northwestern Ontario, 300 miles north of Thunder Bay, while Éléonore is a

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major new mine in an exciting goldproducing district in the James Bay region of Québec. The Borden project near Chapleau in Ontario is approximately 100 miles west of Goldcorp's Porcupine mine. The project has the potential to further enhance the long-term economics of Porcupine, as ore from Borden will be transported to Porcupine’s low-cost mill complex, to simplify permitting for Borden and at the same time reduce the site’s footprint. Goldcorp is developing Borden

to become Canada’s first all-electric underground gold mine, resulting in an improved health and safety performance and reducing its environmental impact. Goldcorp is teaming up with Sandvik Mining and MacLean Engineering to provide battery-powered underground vehicles for almost all the requirements at the site. Its new mining technology will range from battery-operated drilling and blasting equipment to electric bolters, personnel carriers and ultimately a 40 metric tonne battery

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powered haul truck. At Borden, construction of surface infrastructure to support the development of the exploration ramp is now complete. The current infrastructure will be able to support the mine once production begins. Ramp development has reached 300 meters and is on schedule. The bulk sample is expected to commence in October 2018. Bulk sample extraction and critical mine production development will be conducted concurrently. The mine is expected to begin commercial production in the second half of 2019. At Redlake, the High Grade Zone (HGZ) has been the backbone of the operation, with an average grade of more than two ounces of gold per tonne. Despite its location in one of the world’s most prolific gold districts, however, the HGZ is expected to be depleted by 2020, but there are two key growth projects, Cochenour and HG Young that are advancing through the company's investment framework and have the potential to provide new sources of ore over the long-term. The focus at Red Lake is on asset optimization and cost reduction efforts. Continued transition to mechanized mining, bulk mining and

material movement automation is expected to result in lower grades and lower mining costs. Rationalization of the infrastructure is also underway to reduce costs. Exploration will continue to focus on the high-grade HG Young and Cochenour deposits. World Mining Magazine www.ogsmag.com

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At Musselwhite, the materials handling project is half way to completion and advancing as planned. The $90 million investment involves the construction of an underground winze and associated infrastructure. This will significantly reduce high-cost uphill truck haulage between the winze and underground crushers, leading to improved energy efficiency, reduced ventilation requirements, enhanced production schedule and the potential to extend mine life. The project is

a threefold increase in ore storage capacity at different locations, providing operational flexibility while delivering continuous product to the mill. The project remains on schedule and completion is expected in the first quarter of 2019. Éléonore, Goldcorp’s most recent mine, achieved its first gold production on 1 October 2014 and declared commercial production with effect from 1 April 2015. The focus now is on increasing underground mining

rates, mill throughput and improved dilution through adjustment of stope design. The production ramp-up to full capacity is expected to continue into 2018. A life of mine study is underway to determine the sustainable mining rate from the Roberto deposit. In the fourth quarter of 2016 the production shaft was commissioned and is expected to drive efficiencies and reduce operating costs. The mine is expected to make a significant contribution for many years to come.

“At Musselwhite, hoisting, crushing, rock breaking and chutes have the ability to operate from multiple locations including underground, surface and long distance tele-operation from Thunder Bay” expected to increase production by 20 per cent while reducing operating costs by approximately 10 per cent. During the third quarter of 2017, the materials handling project achieved a key milestone transitioning from lateral development to the construction and build phase. All equipment has been engineered with full automation capabilities. Hoisting, crushing, rock breaking and chutes have the ability to operate from multiple locations including underground, surface and long distance tele-operation from Thunder Bay. The current schedule will allow for increased efficiency, reduced ramp traffic and balanced power consumption, complemented by World Mining Magazine www.ogsmag.com

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For generations, miners have relied on DrĂ¤ger and our quality products. We remain committed to supplying innovative and integrative safety concepts to improve mine safety. Passion and Know-How perfectly linked together. www.draeger.com/mining

“In Mexico, Goldcorp’s 100 per cent owned Peñasquito mine is the country’s largest gold producer, consisting of two open pits - Peñasco and Chile Colorado containing gold, silver, lead and zinc”

The Coffee project is located in west-central Yukon, in the remote northwest of Canada, approximately 80 miles south of Dawson City. The property can currently be accessed only by air or the Yukon River, but once on site, a 15 mile all-season road connects the Coffee barge landing site, airstrip, camp and gold deposits. Coffee is a high-grade, open pit, heap leach mining project in a top tier mining jurisdiction. Goldcorp acquired the project in July 2016, and has since accelerated and expanded the scope of exploration. Goldcorp acquired the project not only for the high-grade Coffee gold deposit itself, but also to participate in the development of the growing mineral wealth within the highly prospective Tintina Gold Province which is endowed with approximately 150 million ounces of gold across Yukon and Alaska. Activities are currently focused on review and optimization of the Kaminak feasibility study, planning for upgrades to site infrastructure, consultations with First Nations and initial studies to support the permitting processes. Government support for increased investment in the Yukon mineral industry is evidenced by the recent joint announcement from Yukon Territory and Canadian Federal Governments of a C$360 million program for the Yukon Resource Gateway Project which will help upgrade over 400 miles of road

infrastructure to access mineral-rich areas of the Yukon, including the Dawson Range where the Coffee Project is located. Goldcorp has expanded the 2017 exploration budget to approximately C$20m through a recently implemented acceleration plan to capitalize on the success of the drilling programs so far this season, and to provide adequate resourcing to the Coffee exploration team to achieve Goldcorp's long-term objective to develop a camp that could produce 400,000 to 500,000 ounces of gold per annum. Mexico In Mexico, Goldcorp’s 100 per cent owned Peñasquito mine is the country’s largest gold producer, consisting of two open pits - Peñasco and Chile Colorado - containing gold, silver, lead and zinc. The focus at Peñasquito is on optimization to drive consistent results. Over the next three years, mining activities in the pit are expected to be focused on lower grade ore in the upper parts of the Peñasco pit while stripping is emphasized to ensure an economically optimal pit shell design to maximize the net asset value of the operation. By 2019, Peñasquito is expected to increase metal production over prior years on a gold equivalent basis due to higher amounts of by-products mined in the Chile Colorado pit. In 2020-2021, Peñasquito’s gold

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production is expected to benefit from an improvement in mined grades as it recommences mining higher grades at the bottom of the Peñasco pit. The Pyrite Leach Project at Peñasquito was approved by the board on 27 July 2016 and is being advanced towards first gold in the first quarter of 2019. The project is expected to increase overall gold and silver recovery by treating the zinc tailings before discharge to the tailings storage facility. PLP is expected to recover approximately 40% of the gold and 48% of the silver currently reporting to the tailings. PLP is expected to add annual incremental production of approximately 100,000 – 140,000 gold ounces and approximately 4.0 – 6.0 million silver ounces for the life of the mine. In addition, Goldcorp expects to complete the prefeasibility study on Eco-Tails by the first quarter of 2018. The Eco-Tails project has the potential to save in excess of 125 million m3 of water and reduce sustaining capital requirements of the tailings storage facility during the life of the mine, representing estimated savings of $10 to $15 million annually. The financial benefits of this project are not only significant for Peñasquito but as the technology is developed further, consideration of its application to other large projects, such as the Cerro Casale/Caspiche Joint Venture, could lead to major financial, social and environmental benefits. World Mining Magazine www.ogsmag.com

Chile

On 24 November 2015, Goldcorp and Teck Resources Limited announced the completion of their agreement to combine their respective El Morro and Relincho projects into a 50/50 joint venture with the interim name of Project Corridor. In June 2016, the project was officially renamed as NuevaUnión. A prefeasibility study is being finalized on NuevaUnión which is expected to be completed early in the first quarter of 2018. Considerable progress has been made to combine the Relincho and El Morro projects and consolidate infrastructure, which is expected to result in a more robust combined project with a reduced environmental footprint, substantially reduced capital expenditures and an optimized plan including innovative technologies

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such as an autonomous mining fleet, low energy consumption process plant design, and hybrid conveyance system. While the prefeasibility study remains to be finalized, the many trade-off studies completed as part of the process have resulted in incorporating several value enhancing opportunities, increasing confidence in the overall business case. In June this year Goldcorp agreed with Barrick Gold to merge their interests in the Maricunga Gold Belt in the Atacama Region of northern Chile, through a 50/50 joint venture. The arrangement involved a number of elements, including the acquisition by Goldcorp of Kinross Gold Corporation's 25% interest in Cerro Casale and 100% interest in the Quebrada Seca exploration project. Goldcorp also acquired Exeter

Resource Corporation to take over its 100%-owned Caspiche project, approximately 10 kilometers to the north of Cerro Casale. Caspiche was then also entered into the joint venture. "The Caspiche project is located in the heart of Chile's northern mining district," said David Garofalo, President and Chief Executive Officer of Goldcorp. "With the acquisition of Caspiche and 50% of Cerro Casale, we envisage the two deposits being jointly advanced with Barrick, similar to our existing arrangement with Teck Resources at NuevaUnión. This joint venture structure with Barrick has the potential to allow us to consolidate infrastructure to reduce costs, reduce the environmental footprint and provide increased returns compared to two standalone projects. With our

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combined technical and financial strength, we see significant potential to increase net asset value per share and deliver value for all partners and stakeholders." The lessons learned as part of the prefeasibility study at NuevaUnión will be beneficial as the joint venture advances through the prefeasibility stage.

Argentina

“Cerro Negro delivered $50 million in annual sustainable cost savings in 2016 through its optimization work and is expected to add another $25 million in 2017”

One of Goldcorp’s newest mines, Cerro Negro is a high-grade gold mine in the Santa Cruz province of Argentina with several vein structures, including Mariana Central, Mariana Norte, San Marcos and Eureka. First gold was poured on 25 July 2014 with commercial production achieved on 1 January 2015. The Cerro Negro complex has been steadily increasing production from the Eureka and Marianas Central mines to achieve a throughput rate of 3,000 tonnes per day. Production is expected to increase to nameplate capacity of 4,000 tonnes per day when the Marianas Norte and Emelia mines are brought on line. The pre-feasibility study on the optimal mine design, development execution plan and production schedule has been completed. The plan has development at Mariana Norte continuing to ramp up through 2017, with first ore production expected in 2018. Development of the Emilia vein is expected to begin in the second half of 2017 and is expected to replace

production from Eureka in 2019. The production ramp-up to 4,000 tonnes per day is expected to be achieved during the second half of 2018. Cerro Negro delivered $50 million in annual sustainable cost savings in 2016 through its optimization work and is expected to add another $25 million in 2017. Accelerated development of an additional mining front is being contemplated that would allow Cerro Negro to potentially increase plant throughput by 10% to 20% beyond nameplate capacity of 4,000 tonnes per day. The Cerro Negro processing plant was designed for future expansion at a relatively low cost due to preconstructed infrastructure, including foundations for additional leaching tanks, that could accommodate higher throughput at low incremental capital investment. An expansion concept study is expected to be completed by the end of 2018. "The significant progress we have made on our development and exploration projects has given us increased confidence in our 20/20/20 objectives and identified new opportunities for outperformance at Cerro Negro, Peñasquito and Coffee," said Garofalo. "We are also pleased with the substantial progress of our longer-term projects Century, NuevaUnión and Cerro Casale/ Caspiche that are poised to provide meaningful long-term gold production and value growth." World Mining Magazine www.ogsmag.com

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Gracida Group striking water! Not a phrase mining companies like to hear. Striking gold is what they count on. In the case of Peñasquito Goldcorp Mine in Mexico, in mid-March of 2017, they did both.

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oldcorp were excited with the discovery of new seam in 2016, with a very high concentration of gold. The problem, however, was that it was found at an elevation much lower than what was currently being mined, and as such they knew they were going to encounter significant water issues. These issues provided both a cost implication as well as a logistical one in securing the collection and removal of the water, but considering the price of gold it was too rich to ignore.

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That’s when they called Gracida Group, (www.gracida.net) based out of Guadalajara, Mexico. Gracida was asked to do a complete feasibility study and provide a cost effective solution required to access the seam. Eduardo Juarez, Sales Executive, and Bud Nichols, Operating Partner of Gracida, responded to the request and visited the mine site to gather accurate information and to assess the overall challenge. The real problem was that the desired level of the pit was elevation 1485 and the discharge point was 2000 elevation, making it a total of 515 meters in static elevation that needed to be overcome. In normal mining conditions this may not be a difficult application, but in this situation it was determined that steel piping would not be the mine’s best choice due to the route and conditions in which the pipe would need to be installed over very rugged terrain. The pumps also needed to be portable and capable of being moved away from the blasting zones, and then reinstalled as needed in an efficient and safe manner. Neither electric

gracida group striking water

submersibles, nor vertical turbines, would fit these demands. Multiple HDPE lines would be the pipes of choice for quick and safe installation in the mine’s rough and variable conditions, however, as HDPE has limited PSI ratings, it was necessary to set up a series of pumping systems to keep the PSI produced by the pump below the maximum working pressure of the HDPE pipe. The proposal was to install pumping stations at approximately 128 meters of static discharge head each. Each pumping station would have a holding pond capable of storing up to 90,000 liters. At a desired rate of 50 lps this would give each pumping location 30 minutes of storage as needed to keep the pumping systems in operation. It was determined the best pumps for the application would be the GPUMP Model G-V-64C-D-XH, automatic priming, driven by a 300HP diesel engine, produced by ESG Power Equipment Corp, a sister company of Gracida based in the US. Each pump has a shut off head rating of 219 meters

and a maximum flow rate of 90 lps. The duty point on this application for each pump required 50 lps @ 135 meters, including the loss in the pipe system. Gracida was awarded the project and delivered the first pumps within 7 days from receipt of the order. Gracida was contracted to install, test and operate the system 24/7 as well as undertake extensive safety training required by the mine, all while the pumps were en route to Peñasquito. Over the following month, Gracida installed two additional pumping stations for a total of three systems each having 4 pumps and producing a combined flow rate of 150 lps at a total of 515 meters. The solution to the problem was a complex one, but Peñasquito are delighted with Gracida’s expertise and professionalism, that even with the demanding environment they have been able to continually access the seam and keep up with the Gold production schedule.

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BHP

INVESTING IN A NEW FUTURE Having spun out most of its former Billiton assets into a new entity, South32, BHP Billiton, now rebranded as BHP, is still among the world’s top producers of major commodities, including iron ore, metallurgical coal and copper, with substantial interests in oil, gas and energy coal.

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BHP

a world leader in the diversified resources industry, follows a strategy to own and operate large, long-life, lowcost, expandable, upstream assets diversified by commodity, geography and market. The strategy has been in place for over a decade and has enabled BHP to deliver superior margins throughout economic and commodity cycles.

A diversified, low cost, tier one asset base enhances the resilience of BHP’s cash flow by reducing its exposure to any one commodity or currency and provides for more predictable and robust financial performance. It also allows the company to invest in and grow its business throughout economic cycles. As a large, global organisation BHP has the capacity to help grow local businesses and foster the long-term development of suppliers in its host communities. A primary example of this can be found in Chile, where BHP is successfully building new relationships with local suppliers through a program that seeks to create lasting business and technological capabilities and increase suppliers’ economic value. Specifically, the program engages local suppliers to develop innovative solutions to manage at least one aspect of mining identified as critical by BHP operations – such as water, energy, human capital, maintenance, air quality, acid mist control or leaching. Effectively managing each of these areas is essential to tackling operational challenges.

KEY DEVELOPMENTS Escondida

In Chile, BHP operates the Escondida mine, a leading producer of copper. Located in the Atacama Desert in northern Chile, Escondida is a copper porphyry deposit that also produces gold and silver. Its two open-cut pits currently feed two concentrator plants which use grinding and flotation technologies to produce copper concentrate, as well as two leaching operations (oxide and sulphide). BHP is currently completing three major expansion projects at Escondida, despite some operational setbacks. The projects are set to deliver increased production to an extra 150,000 tonnes of annual copper production for a development spend of just under US$200 million.

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bhp investing in a new future

Spence Growth Option (SGO)

BHP recently announced capital expenditure approval of US$2.46 billion for the Spence Growth Option (SGO) at the Spence open-cut copper mine in northern Chile, which will extend the mine life by more than 50 years. BHP Chief Executive Officer Andrew Mackenzie said the SGO project supports BHP’s strategy to deliver near-term, valuable copper production. In the first 10 years of operation, incremental production from SGO will be approximately 185 ktpa of payable copper in concentrate and 4 ktpa of payable molybdenum, with first production expected in the 2021 financial year. The current copper cathode stream will continue until the 2025 financial year. The project will convert 1.3 Bt of measured and indicated mineral resources to hypogene sulphide ore reserves. SGO was rigorously evaluated using BHP’s capital allocation framework and, at mid-case consensus prices, has an expected internal rate of return of 16 per cent and an expected payback period of 4.5 years from first production. “Execution of the Spence Growth Option will create long-term value for shareholders in one of our preferred commodities,” said Mackenzie. “The project significantly extends the life of our Spence operation and unlocks

the potential of the large, quality resource. SGO has been extensively studied and we have made significant improvements to project cost and design so that it is able to compete in our portfolio of attractive development options.”

“In September, BHP celebrated two significant milestones at Olympic Dam with first ore from the high-grade underground expansion into the Southern Mining Area (SMA) and the first copper cathode produced from its heap leach research and development trials”

Olympic Dam

Olympic Dam has one of the world’s largest ore bodies. Located 560 kilometres north of Adelaide,

Australia, it is one of the world’s largest deposits of copper, gold and uranium and also has a significant deposit of silver. Olympic Dam operates a fully integrated processing facility from ore to metal. In September, BHP celebrated two significant milestones at Olympic Dam with first ore from the highgrade underground expansion into the Southern Mining Area (SMA) and the first copper cathode produced from its heap leach research and development trials. Olympic Dam Asset President Jacqui McGill said BHP is taking steps towards unlocking the potential of one of the world’s largest orebodies. “The move into the SMA forms the foundation of Olympic Dam’s long-term expansion plans, and successful tests of the heap leach copper extraction technology have the potential to support an increase in production to over 450,000 tonnes of copper a year,” she said. A series of larger scale experiments and testing on the heap leach process are being undertaken over the next three years. Ms McGill said today’s milestones came on the back of BHP’s recent media announcement to invest approximately A$600 million this financial year, to support underground development and upgrade surface processing facilities for long-term growth. World Mining Magazine www.ogsmag.com

Nickel West

BHP has given the Kalgoorlie region a boost by revealing that its Nickel West unit is restarting development work at its 2012 Venus nickel discovery. The decision means BHP will push ahead with access drives from the nearby Perseverance underground mine to Venus with its near 200,000 tonnes of nickel. Nickel West is a fully integrated mine-to-market nickel business. All nickel operations (mines, concentrators, a smelter and refinery) are located in Western Australia. BHP is one of the world's largest nickel miners, the fifth largest refined nickel producer and a global supplier of nickel to the stainless steel industry. Austenitic stainless steel, or nickelcontaining stainless steel, promotes a more stable and ductile structure that contributes to corrosion resistance.

OTHER OPERATIONS Pampa Norte

Pampa Norte consists of two wholly owned operations in the Atacama Desert in northern Chile: Compañía Minera Cerro Colorado Limitada and Minera Spence S.A. Both sites produce

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high quality cathodes by processing copper oxides and sulphides through leaching, solvent extraction, and electrowinning.

Antamina

“BHP’s coal business produces thermal coal primarily for use in the electric power generation industry and high quality hard coking coal for use in the international and domestic steel industry”

BHP owns 33.75 per cent of Antamina, a large, low-cost copper and zinc mine in north central Peru. Antamina byproducts include molybdenum and lead/bismuth concentrate and small amounts of silver.

Western Australia Iron Ore

A jewel in BHP’s crown, Western Australia Iron Ore (WAIO) is an integrated system of four processing hubs and five mines, connected by more than 1,000 kilometres of rail infrastructure and two separate port facilities in the Pilbara region of northern Western Australia. At each mining hub – Newman, Yandi, Mining Area C and Jimblebar – ore from mines is crushed, beneficiated where necessary, and blended to create high-grade hematite lump and fines products. BHP is one of the world’s leading iron ore producers, selling lump and fine product from Australia. In pursuing

bhp investing in a new future

ongoing growth plans, BHP Iron Ore is committed to working with its local communities to support sustainable development in the region and ensure their needs are incorporated into the company’s expansion plans.

Queensland Coal

BHP’s coal business produces thermal coal primarily for use in the electric power generation industry and high quality hard coking coal for use in the international and domestic steel industry. With operations strategically located in areas with seaborne access, the business delivers logistical advantages to its customers. BHP has access to dedicated deep-water ports allowing the use of large capacity vessels to further build on regional

logistic advantages. Queensland Coal comprises the 50/50 BHP Mitsubishi Alliance (BMA) and BHP Mitsui Coal (BMC) assets in the Bowen Basin in Central Queensland, Australia. BMA is Australia’s largest coal producer and supplier of seaborne metallurgical coal. BMA operates seven Bowen Basin mines (Goonyella Riverside, Broadmeadow, Daunia, Peak Downs, Saraji, Blackwater and Caval Ridge) and owns and operates the Hay Point Coal Terminal near Mackay. BMC owns and operates two opencut metallurgical coal mines in the Bowen Basin – South Walker Creek Mine and Poitrel Mine. BMC is majority-owned by BHP, with twenty percent held by Mitsui and Co.

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“This product has consistently proved to effective & efficient and can recommend DMI-65 for the purpose of removing manganese & iron from a contaminated water source.” Mark Botica - Water Services Supervisor - FMG Quantum Filtration Medium Pty Ltd www.dmi65.com james@dmi65.com / +61 1300 303 281 World Mining Magazine www.ogsmag.com

New South Wales Energy Coal

New South Wales Energy Coal consists of the Mt Arthur Coal open-cut energy coal mine in the Hunter Valley region of New South Wales, Australia. The site produces coal for domestic and international customers in the energy sector. In addition to its Australian operations, there are thermal coal operations located in South Africa, the United States and South America.

Cerrejón

BHP has a one-third interest in Cerrejón, which owns, operates and markets one of the world’s largest open-cut export energy coal mines, located in the La Guajira province of Colombia. Cerrejón also owns and operates integrated rail and port facilities, through which the majority of production is exported to customers in Europe, Asia, and North and South America. BHP’s Coal business has delivered over US$3 billion of productivity gains since 2012 and is targeting another US$600 million by the end of the 2017 financial year. With long life reserves, a strong portfolio of undeveloped resources and key infrastructure, the coal business has the flexibility to continually expand BHP’s production capacity in line with customer needs.

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bhp investing in a new future Samarco

BHP and Vale each has a 50 per cent shareholding in Samarco Mineracao SA, which operates the Samarco iron ore operation in Brazil. Samarco comprises a mine and three concentrators located in the state of Minas Gerais, and four pellet plants and a port located in Anchieta in the state of Espirito Santo. Three 400-kilometre pipelines connect the mine site to the pelletising facilities. As a result of the tragic dam failure at Samarco in November 2015, operations at Samarco are currently suspended.

“With long life reserves, a strong portfolio of undeveloped resources and key infrastructure, BHP’s coal business has the flexibility to continually expand its production capacity in line with customer needs”

Jansen Potash Project

BHP’s potash activities are aimed at potash project development. Its interest in potash is via development projects largely within the Canadian province of Saskatchewan and BHP has exploration rights to over 14,500 square kilometres of highly prospective ground in the Saskatchewan potash basin. The Jansen Project, located 140 kilometres east of Saskatoon, Saskatchewan, is its most advanced project and is in the feasibility study stage.

Today, an unrivalled portfolio of high quality growth opportunities will ensure BHP continues to meet the changing needs of its customers and the resources demand of emerging economies at every stage of their growth. The diversification of the BHP portfolio continues to be its defining attribute.

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At the Ulan Coal Mine, NSW., Osmoflo are now using the water filtration media technology known as DMI-65, a catalytic filter media that is designed to remove high concentrations of manganese from the feedwater supply when operated in the presence of chlorine. Experience to date has found that DMI-65 is the best available catalytic material for removing high concentrations of manganese and iron to pre-treat and protect UF and RO technology. A reverse osmosis (RO) plant and Ultra-Filtration (UF) pre-treatment system provided by Osmoflo currently treats water from East Pit, which is a large capacity surface dam. This enables the water to be recycled back into the ecosystem along with on-site irrigation.

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newmont mining creating value Newmont has grown steadily by acquisition and diversification, often through joint ventures with other well-established companies. Today, Newmont’s portfolio includes significant operations in North America, South America, Australia and Africa, with a robust exploration and project pipeline to add to its global presence.

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ounded in 1916 and publicly traded since 1925, Newmont has approximately 30,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru and Suriname. Newmont is an industry leader in value creation and the only gold producer listed in the S&P 500 index. Its purpose – to create value and improve lives through sustainable and responsible mining – is guided by five core values: safety, integrity, sustainability, inclusion and responsibility.

OPERATIONAL OVERVIEW

Newmont’s 100 per cent owned operating assets include the Boddington and Tanami mines in Australia; Ahafo and Akyem operations in Ghana; and in

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the United States, the Cripple Creek & Victor (CC&V) mine in Colorado and four operating complexes (Carlin, Long Canyon, Phoenix and Twin Creeks) in Nevada. Operations where Newmont owns 50 per cent or more and/or is the manager or operator include KCGM in Australia (50 per cent); Yanacocha in Peru (51.35 per cent); and Merian in Suriname (75 per cent). Newmont’s optimized project pipeline consists of promising growth opportunities in each of its four operating regions.

Africa

Newmont’s presence in Ghana includes the Ahafo mine in the Brong-Ahafo region and the Akyem operation in the Eastern region near New Abirem. Newmont began working in Ghana with the acquisition of Normandy Mining in

2002. Production commenced in 2006 at its Ahafo mine and in 2013 at its Akyem mine.

Australia

Newmont also began operating in Australia in 2002 with the acquisition of Normandy Mining. Its presence in the region comprises three operations in Australia – Boddington, Tanami and Kalgoorlie. Currently, Newmont is progressing expansion of its Tanami mine in the Northern Territory of Australia.

North America

Newmont’s North American operations are in Nevada and Colorado. It owns or controls approximately 2.6 million acres in Nevada and 41,000 acres in Colorado. Of these totals, about 125,000

newmont mining creating value acres of private and public land in Nevada and 6,000 acres in Colorado are reserved for mining use. Portions of that acreage have already been reclaimed, are undergoing reclamation or remain undisturbed. Newmont’s North America operations account for around 40 per cent of the company’s worldwide gold production.

South America

Newmont’s South American operations are centred in the Yanacocha mining complex in Peru. Options to extend mine life at Yanacocha include promising sulphide and oxide deposits. In Suriname, Newmont has begun construction of the Merian mine to increase profitable gold production and establish a foothold in a prospective new mining district.

OPERATIONAL DEVELOPMENTS Ahafo

“Earlier this year Newmont announced plans to extend profitable production at its Ahafo operations by building a new underground mine and expanding plant capacity by more than 50 per cent”

Earlier this year Newmont announced plans to extend profitable production at its Ahafo operations by building a new underground mine and expanding plant capacity by more than 50 per cent. The Subika Underground mine is expected to produce 1.8 million ounces of gold over an 11-year mine life, and features ore grades of 4.7 grams per tonne. The mill expansion is expected to improve margins and support profitable production at Ahafo through at least 2029. “We are building on strong performance and solid infrastructure by investing in the next generation of profitable production at Ahafo,” said Gary Goldberg, President and Chief Executive Officer. “The Subika Underground mine will also create a platform to support even longer-term growth. Recent exploration results demonstrate considerable upside within the Subika deposit and adjacent Apensu Deeps deposit.”

Buriticá

In May, Newmont announced an agreement to invest approximately US$109 million for 19.9 per cent ownership of Continental Gold Inc, supporting near-term development of

the high grade Buriticá gold project in Colombia. The investment also covers three other exploration assets in this prospective gold district. The Buriticá deposit consists of two major vein systems that remain open along strike and at depth. Continental has declared proven and probable reserves of 3.7 million ounces of gold, averaging more than eight grams per tonne. Construction of the underground mine and process plant is to begin in the second half of 2017 with commercial production targeted for early 2020. “We’re investing in a world class asset and exploration prospects, in alignment with our goal to create long-term value for shareholders,” said Goldberg. “We’re impressed with the quality of the deposit, the calibre of the management team, the community’s support for the project and the prospects for future growth. Our team is looking forward to joining forces with Continental to make the most of these opportunities.” Newmont has agreed to purchase 37.38 million common shares of Continental in a non-brokered private placement at a price of C$4.00 per share. Terms of the investment agreement include Newmont’s right to participate in future equity issuance to maintain its ownership stake; the two companies establishing joint technical and sustainability committees and a strategic exploration alliance; and Newmont holding a seat on Continental’s board of directors.

Long Canyon

Late in 2016 Newmont reached commercial production at Long Canyon, a high grade oxide mine in an emerging gold district located less than 100 miles from its existing Nevada operations. The company declared commercial production based on sustaining plant availability of more than 85 per cent, and achieving a minimum of 70 per cent of modelled leach recovery. The project was completed two months ahead of schedule for an investment of just under $225 million, which is about $50 million below budget. The first phase of development is expected to produce between 100,000 and 150,000 ounces of gold per year over an eight-year mine life at estimated costs applicable to sales of World Mining Magazine www.ogsmag.com

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“Late in 2016 Newmont reached commercial production at Long Canyon, a high grade oxide mine in an emerging gold district located less than 100 miles from its existing Nevada operations”

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between $400 and $500 per ounce, and all-in sustaining cost of between $500 and $600 per ounce. The project was optimized by taking a phased development approach, relying on refurbished instead of new equipment, and building a leach facility rather than a mill. At current gold prices, the project is expected to generate a 26 per cent rate of return with a payback period of just under four years. The operation includes a surface mine and heap leach pad which currently holds one million tons of ore at an average estimated grade of 1.13 grams of gold per ton. The project was funded through free cash flow and available cash balances, and leverages Newmont’s existing infrastructure, expertise and strong stakeholder relationships in Nevada.

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newmont mining creating value

Merian

“Construction of Merian commenced in August 2014, and commercial production was achieved on 1 October 2016, on schedule and US$150 million under budget”

In another operational development Newmont inaugurated the open-pit Merian gold mine in Suriname, which is expected to give a boost to the small, economically struggling South American country. The mine has gold reserves of about 5.1 million ounces and its annual production is expected to average between 400,000 and 500,000 ounces during the first five full years of operation. Suriname’s state-owned oil company, Staatsolie, has a 25 per cent stake in the mine. Construction of Merian commenced in August 2014, and commercial production was achieved on 1 October 2016, on schedule and US$150 million under budget. “Never before did our country have the courage to participate as an equal partner in such a mining

venture,” President Bouterse told hundreds of guests and mine employees at the opening ceremony. “This significant investment of a multinational of a magnitude and capacity like Newmont, proves that our small economy is able in bearing huge foreign direct investments which are indispensable to meet with the challenges and requirements of our economy in these days.”

Prospects

In 2017 Newmont joined the race to develop a new mine in the Canadian Yukon territory, home to the Yukon gold rush where thousands staked their fortunes back in the late 1800s. The Denver-based company recently signed an agreement with Yukon-focused explorer Goldstrike Resources, to World Mining Magazine www.ogsmag.com

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Working in partnership with international mining companies, PW Mining is a major contractor in the development of Africa’s Goldfields. We have completed mining projects in Ghana for AngloGold Ashanti, Gold Fields, Wexford Goldfields, Satellite Goldfields and Resolute. Our civil engineering division works successfully for Newmont in Ghana. Other contracts have been undertaken in Burkina Faso, Mali, Sierra Leone and Tanzania. Our expertise is geared to support large and small operations in the remotest and most testing conditions. Contact: Tony O’Neill PW Mining International Ltd., 10 Abidjan Avenue, East Legon, Accra, Ghana.

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Tel: +233 302 518112 - 6 Fax: +233 302 518117 Email: pwg@pwmil.com

newmont mining creating value

develop its flagship Plateau property. With the US$39.5-million earn-in agreement, Newmont joins rivals Agnico-Eagle which last December bought a stake in thousands of mining claims in the White Gold district, and Goldcorp, which purchased Kaminak Gold and its Coffee project last May for $520 million, in their pursuit of prospective Yukon gold properties. Under terms of the agreement, Newmont can earn up to an 80% share in the Plateau property – described as a “newly discovered gold system consisting of more than 2,000 claims covering 350 square kilometres,” through up to $39.5 million in exploration spending, including a feasibility study by 2027. It expects to boost its exploration expenditure on advanced projects by 22% by the close of 2017, with about two-thirds going to fund more brownfields and greenfields exploration.

“The Plateau agreement strengthens our long-term growth pipeline and leverages our world class exploration capabilities,” said Goldberg. “We’ve added more than 125 million ounces of gold reserves by the drill bit over the last 16 years and about three-quarters of our reserves are located in North America and Australia. We will continue to invest in opportunities that combine the best value with the most favourable technical and geopolitical attributes.”

Sustainability

As a core value, sustainability – serving as a catalyst for local economic development through transparent and respectful stakeholder engagement and as responsible stewards of the environment – is a deeply ingrained principle that guides Newmont’s actions and supports its purpose to create value and improve lives through sustainable and responsible mining. Newmont’s

strategy is based on the premise that strong sustainability performance throughout the mine lifecycle delivers value for its business, shareholders and stakeholders. Meeting the needs of the present without compromising the needs of the future requires Newmont to understand and effectively manage its broad profile of social and environmental risks. Newmont’s sustainability strategy is aligned to the three platforms of its business strategy: • Secure the gold franchise, • Strengthen the portfolio, • Enable the strategy though effective management of both current and emerging threats and opportunities. Newmont was named the mining industry leader in overall sustainability by the Dow Jones Sustainability World Index in 2015 and 2016.

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anglo american refining assets Anglo American celebrates its 100th anniversary this year. After a year of austerity, its return to profitability heralds the next century in style

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alking about Anglo American’s end of year results for 2016, Chief Executive Mark Cutifani reflected on a tough but successful year. “We got there. We delivered it,” he said, with relief and pride in equal measure.

While austerity has become a way of life in some European economies, Anglo American set out a plan at the beginning of 2016 to become fitter and leaner over the course of one year – and they did it. When investors questioned whether the company could survive the downturn in metals prices, Anglo scrapped its dividend and decided to shrink the business by selling assets, to concentrate

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on three core commodities: copper, diamonds and platinum. “The decisive and wide-ranging operational, cost, capital and portfolio actions we set out in 2016 – to sustainably improve cash flows and strengthen the balance sheet – have enabled us to reduce net debt by 34% to $8.5 billion,” said Cutifani, “significantly below our $10 billion target. “The $1.5 billion sale of the niobium and phosphates businesses further supported our balance sheet recovery goal and, combined with the sale of a number of coal and platinum assets during the year, we received $1.8 billion of disposal proceeds in 2016.” Anglo American put a number of other major assets up for sale in 2016, but despite strong interest, its reluctance to let them go cheaply meant that some prospective transactions were not

completed. The company is now in a position, however, where it no longer needs to make disposals to reduce debts.

Iron ore

Among the businesses previously considered non-core are Anglo American’s iron ore mines in South Africa. Anglo business unit Kumba Iron Ore, the fourth largest iron-ore producer in the world and the largest in Africa, owns the Sishen mine (through its subsidiary Sishen Iron Ore Company). Sishen is the company’s flagship operation and one of the largest open pit mines in the world – some 14km long. Located in central South Africa in the Northern Cape, Sishen produces a high quality lump ore and a premium fine ore, with sufficient reserves to sustain a 19-year life of mine. Mining is by opencast methods and the ore is

anglo american refining assets

“Iron ore is transported from the Sishen and Kolomela mines to Saldanha Bay along an 861km rail system linking the Sishen mine to the dedicated deepwater port and bulk loading facilities”

transported to the beneficiation plant where it is crushed, screened and beneficiated. The jig plant at Sishen mine is the largest of its type in the world. Kumba Iron Ore also owns 51.5% of the Kolomela mine. Located around 90km south of the Sishen mine, near Postmasburg in the Northern Cape Province, the name means ‘to dig deeper’ or ‘to persevere’. Kolomela lump iron ore is in demand because of its excellent physical strength and high iron content. Kolomela exceeded expectations in 2016, producing 12.7Mt, benefitting from increased throughput as a result of further plant optimisation. The mine, which was originally designed to produce 9Mtpa, is on track to produce between 13Mt and 14Mt in 2017 without significant additional capital expenditure. The mine is targeting a 20% improvement in fleet efficiency for 2017 to offset cost inflation. Kolomela’s life of mine decreased from 21 to 18 years, however, as a result of the planned ramp-up in production. Over the past two years Kumba implemented key interventions to reset the cost base and preserve cash. This entailed moving from a volume to a value based strategy by reconfiguring the mines to reduce the amount of waste mined and to reduce costs in all operational areas. A substantial workforce restructuring was completed and some 2,500 full-time employees and contractors left the company. The strong set of results delivered in 2016 reflects not only the benefit of higher iron ore prices, but the progress made in the execution of this strategy. “It has been a successful year for Kumba, despite challenging and volatile iron ore markets,” said Themba Mkhwanazi, CEO of Kumba Iron Ore. “We acted quickly to restructure the business, reset the cost base and stabilise operating performance. “The rise in prices and realising full value for Kumba’s premium product, together with our cost reductions, resulted in improved margins and strong cash flow generation. With total production of 41.5Mt, both Sishen and Kolomela exceeded operational guidance following a successful restructuring. Controllable costs were

reduced by 34% lowering our average cash breakeven price to $29/tonne. “This year’s excellent performance has enabled us to build a strong balance sheet and a net cash position of R6.2bn. This will support a conservative capital structure and place us, as a single commodity miner, in a strong position to deal with potential further market volatility.”

Logistics

Every day of the week, iron ore is transported from the Sishen and Kolomela mines to Saldanha Bay along an 861km rail system linking the Sishen mine to the dedicated deepwater port and bulk loading facilities, which are among the most efficient and advanced logistical systems in the world. The port at Saldanha Bay is the only dedicated iron ore export facility in South Africa and is larger than the country’s other four major ports combined (Durban, Cape Town’s Table Bay, Richards Bay and Port Elizabeth). The system is owned and operated by Transnet (the South African parastatal transport company) and is regarded as a model of integrated planning and cooperation between the public and private sectors in South Africa. Massive trains weighing 34,200 tonnes leave the mines every nine hours, each train having five to six locomotives and 342 wagons containing iron ore. The wagons are offloaded at the Saldanha port, and from there the ore is transported via conveyor belt to stockpiles, onto a vessel waiting in the harbour, or to the ArcelorMittal South Africa Saldanha stockpile. The ore quay at Saldanha has two berths where two vessels of 310,000 deadweight tonnage can simultaneously tie up at the iron ore jetty. The terminal operates 24/7 and has the capacity to offload 10,000 tonnes per hour onto a vessel. From arrival to departure an ore vessel carrying 170,000 tonnes will be in Saldanha Bay for just 24 hours.

Brazil

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operation, with the mine, beneficiation plant, 529km slurry pipeline and dedicated export facility at the port of Açu. Anglo owns 100% of Minas-Rio, and 50% of the port facility. First ore on ship (FOOS) was achieved on 25 October 2014, ahead of schedule and with total project capital expenditure expected to be $0.4 billion below the revised budget of $8.8 billion. Also in Brazil is Anglo American’s nickel business unit, comprising two operating assets, Codemin and Barro Alto, both ferronickel producers in the state of Goiás. Barro Alto’s processing plant was built at a capital cost of $1.9 billion and commissioned in 2011. Located about 170km northwest of Brasilia, and 150km from the Codemin operation, Barro Alto produced 30,000 tonnes of nickel in 2015.

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The Barro Alto nickel deposit was discovered in the late 1960s and Anglo American completed its purchase of the deposit for $35 million in 2002. The company began to mine in Barro Alto in 2004, initially transporting the nickel to the Codemin plant for processing, before the Barro Alto plant was built. Barro Alto’s two furnaces were rebuilt in 2015 to address certain design flaws. Following the successful rebuild the nickel business achieved a production record in 2016 of 44,500 tonnes, an output increase of 47% compared to 2015. At Codemin, production was in line with 2015 at 9,000 tonnes.

Coal

While coal did not fit in Anglo American’s strategic portfolio in 2016, work nevertheless continued on its prestigious Grosvenor project in

Australia. The project was approved for development at the end of 2011, and delivered its first coal from its underground longwall in May last year, seven months ahead of schedule and more than US$100 million below budget. The $1.95 billion Grosvenor longwall project site is located approximately 190 kilometres south-west of Mackay, Queensland, adjacent to Anglo American’s existing Moranbah North facility. The project involved developing a greenfield underground coal mine, producing up to 5 million tonnes per annum of coking coal for export, and is the first underground coal mine in Queensland to use a tunnel boring machine to develop the drifts, or access tunnels. At full capacity, the Grosvenor longwall is capable of producing 7.5

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“Our priority for 2017 is to deliver further productivity improvements while maintaining capital and cost discipline in order to be in a position to resume dividend payments”

million saleable tonnes per year, and has an anticipated mine life in excess of 30 years. Metallurgical coal is an essential ingredient in blast-furnace steel production and accounts for around 70% of global steel output. Emerging markets, particularly in the Asia-Pacific region, continue to drive demand for metallurgical coal — for infrastructure, housing and consumer goods. “We have delivered the Grosvenor metallurgical coal project ahead of schedule and below budget, with an outstanding safety record and in line with our environmental obligations,” said Seamus French, CEO of Bulk Commodities for Anglo American. “The Grosvenor mine project has taken more than seven million man hours to construct, with almost 6,000 personnel inducted onto the project. We

began the installation of the longwall just 24 days before its first shear and production of coal – a truly remarkable feat and a result of the team’s technical expertise and the modular approach we have taken to our underground longwall operations in Australia. We look forward to shipping the mine’s high quality product to our steel customers across Asia as production begins to ramp up in the months ahead.”

Copper

Copper is one of Anglo American’s core commodities, and the company has interests in four operations in Chile, producing copper concentrate, copper cathode and associated by-products such as molybdenum and silver. In Chile, Anglo has a 50.1% interest in the Los Bronces mine, which it manages and operates, and a 44% share in the World Mining Magazine www.ogsmag.com

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Collahuasi mine; Anglo also manages and operates the El Soldado mine and Chagres smelter (50.1% interest in both). In Peru, the company has an 81.9% interest in the Quellaveco project. Copper’s unique properties make it a vital material for urban and industrial growth. Around 60% of total global demand is for electrics – wire, cables and connectors, including in vehicles and consumer electronics. 20% is used in construction: water pipes and roof sheets benefit from copper’s resistance to corrosion. Copper’s thermal conductivity is also useful in air conditioning and refrigeration.

Platinum

Anglo American is the leading primary producer of platinum group metals (PGMs), providing the world with around 40% of all newly mined

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platinum. All of its operations are located in the Bushveld Complex in South Africa, with the exception of Unki mine on the Great Dyke formation in Zimbabwe. Anglo is optimising and reconfiguring its PGM portfolio, which when complete will give it a ‘best in class’ core operating footprint at the Mogalakwena and Amandelbult mines in South Africa and Unki in Zimbabwe, alongside its joint venture interests in Bafokeng-Rasimone, the Mototolo mine and Modikwa mine in South Africa. Also in South Africa, Anglo owns smelting and refining operations which treat concentrates from its joint venture partners and third parties as well as its wholly owned mines. Mogalakwena, located in Limpopo, South Africa, is the world’s largest openpit platinum mine, covering an area

of 137 square kilometres, with a life of mine expected to extend at least until 2040. Amandelbult consists of Tumela and Dishaba, two underground mines located between the towns of Northam and Thabazimbi in Limpopo, on the northwestern limb of the great Bushveld mineral complex.

Diamonds

Anglo American owns 85% of De Beers, the world’s leading diamond company. The remaining 15% is owned by the Government of the Republic of Botswana (GRB). Through De Beers and its partners the company produces about a third of the world’s rough diamonds by value, employing more than 20,000 people around the world. Anglo’s diamond mines are located in four countries: Botswana, Canada, Namibia and South Africa. In Botswana,

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the company works in partnership with the GRB through a 50:50 mining joint venture, Debswana, with operations including Jwaneng, one of the world’s richest diamond mines. In Canada, De Beers has operations at Victor in Northern Ontario and a 51% interest in the Gahcho Kué project, also in the Northwest Territories. In Namibia, De Beers operates in partnership with the Government of the Republic of Namibia through Namdeb onshore and offshore through Debmarine Namibia. In South Africa, De Beers’ mining takes place through De Beers Consolidated Mines (DBCM) in which its partner, Ponahalo Holdings, has a 26% shareholding. The majority of its South African production comes from Venetia mine, located in Limpopo, and South Africa’s largest producer of

diamonds. An underground mine is currently being developed beneath the existing open pit to extend the life of Venetia beyond 2040. In Canada, Gahcho Kué, the world’s largest new diamond mine in the last 13 years, officially began commercial production on 2 March 2017. The mine, a joint venture with De Beers Group (51%) and Mountain Province Diamonds (49%), is expected to produce approximately 54 million carats of rough diamonds over its lifetime. Anglo American’s performance in 2016 seems to have preserved its reputation as a diversified miner, which it might have lost had it sold off all its non-core assets. “Overall, it’s clear that as a result of our decisive actions in 2016, and the results delivered by our people across the company, Anglo American is now more

robust, with a stronger balance sheet and more competitive cost structure around a world class diversified asset base,” said Mark Cutifani. He also had a warning, however. “Despite our significant progress, it is critical that the lessons of recent years are applied and, although there is confidence in the long-term outlook for our products, the balance sheet must be able to withstand expected price volatility in the short to medium term. We will continue to refine our asset portfolio over time to ensure our capital is deployed effectively to generate enhanced returns. “Our priority for 2017 is to deliver further productivity improvements while maintaining capital and cost discipline in order to be in a position to resume dividend payments for the end of 2017, and to restore an investment grade credit rating.” World Mining Magazine www.ogsmag.com

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de beers in pursuit of brilliance De Beers, the name synonymous with diamonds, is investing in the future with a series of multi-million dollar projects designed to boost diamond production and benefit the communities in the areas in which it operates. Join us for a glimpse into its sparkling future.

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he history of De Beers dates back to its foundation by Cecil Rhodes in South Africa in 1888. Run by the Oppenheimer family for most of the 20th century, De Beers is recognized internationally as the industry leader.

Now owned jointly by Anglo American (85 per cent) and the Government of the Republic of Botswana (GRB –15 per cent), De Beers is dedicated exclusively to the exploration for, and mining and marketing of rough diamonds, and is the world’s largest diamond producer by value, with mining operations in

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Botswana, South Africa, Namibia and Canada. Diamonds are usually found in kimberlite pipes formed millions of years ago under intense pressure and high temperature, deep below the earth’s surface. Volcanic eruptions propel the diamonds upwards, embedded in the rock, which was named kimberlite after the first recognized diamond deposits were found in Kimberley, in the Northern Cape Province of South Africa in the 1870s.

South Africa

While the original ‘Big Hole’ in Kimberley is now a museum, De Beers’ flagship property in South Africa today is the Venetia Mine in Limpopo Province, the country’s largest producer of diamonds. The diamond-bearing ore at the current Venetia Mine is expected to

be depleted by 2021, so De Beers is currently investing over US$2 billion (R20 billion) to convert the open pit mine into an underground operation to extend production well into the 2040s. The underground mine is De Beers’ biggest single investment in the country’s diamond industry, and is scheduled to begin production in 2021, climbing to full production in 2025, when it will treat about 132 million tonnes of ore containing an estimated 94 million carats. The project was approved in 2012 by the De Beers and Anglo American Boards. Environmental authorisation was granted in July 2012, and the Environmental Management Plan was approved by the Department of Mineral Resources in October of that year. The final outstanding regulatory clearances were obtained in February 2013, clearing the way for excavation

de beers in pursuit of brilliance work to begin in the year that De Beers celebrated its 125th anniversary. Two vertical shafts, each seven metres in diameter, are being sunk to a depth of 1,080 metres, an operation that will take until 2018. The tunnel decline from the surface providing access to the underground mine has reached more than 1,000 metres in length. “The development of the underground mine at Venetia is a massive financial commitment in our operational capabilities, and a major investment in the safety of our people,” said Head of Venetia Underground Project Kevin Botha at the time. “It is a huge undertaking, and while we’ll need to bring in certain specialist skills from both Canada and Australia, we’ll be recruiting locally to meet the bulk of our labour requirements. We’re expecting to have more than 1,000 people from the surrounding Limpopo region employed on the project.”

Botswana

“While the original ‘Big Hole’ in Kimberley is now a museum, De Beers’ flagship property in South Africa today is the Venetia Mine in Limpopo Province”

Diamonds were discovered in Botswana in 1967, barely a year after the former British Protectorate of Bechuanaland gained its independence. In 1969, De Beers and the GRB (Government of the Republic of Botswana) formed the De Beers Botswana Mining Company, a 5050 joint venture which became known as Debswana. Fifty years later, Botswana is the second-largest diamond producing country in the world by value and third largest by volume. Debswana is the single largest contributor to the country’s gross domestic product, export earnings and government revenues, and is the largest private employer in Botswana. Debswana has diamond mining operations at four sites: Orapa, Letlhakane, Damtshaa and Jwaneng. These four mines have contributed significantly to the economic growth of Botswana, as well as producing revenues responsible for lifting the country from one of Africa’s least developed to an international development success story. Orapa itself is an open pit mine and is the largest diamond mine in the world by area. It is the oldest of the four mines operated by the company, having begun operations in July 1971. The mine is located on two kimberlite pipes that converge near the surface, covering 1.18

square kilometres at ground level. The mine was expanded in 1999, doubling its previous capacity, and now produces approximately 11 million carats (2200 kg) of diamonds a year. The processing plant at Orapa also processes the ore produced at the Letlhakane and Damtshaa diamond mines. It is in the expansion of Jwaneng, however, one of the world’s richest diamond mines by value, in which De Beers is currently investing. The name means place of small stones but Jwaneng is one of the world’s richest diamond mines and generates up to 70% of De Beers’ revenue in Botswana. Jwaneng has been expanded seven times since it opened in 1982, which is why the latest development is known as ‘Cut-8’, a project which will extend the life of mine to at least 2033. Cut-8 is expected to become the main source of ore for Botswana’s Jwaneng mine in 2018. This latest expansion will increase the depth of the mine from 400 metres to 650 metres, making the pit 2.7km long and 1.8km wide. The expansion will elevate the mine to ‘super-pit’ status, making it one of the largest open pit mines in the world. The new mine is expected to provide access to an estimated 93 million carats of mainly high-quality diamonds from about 84 million tonnes of ore mined. But before a single diamond can be found, about 500 million tonnes of rock surrounding the diamond-bearing ore must be removed. Every day, more than 340,000 tonnes of waste rock and 23,000 tonnes of ore are removed during work on Cut-8.

Canada

De Beers has carried out exploration activities in Canada since the 1960s, but it was 2008 before it opened its first mine in the country. The Snap Lake Project, approximately 220 kilometers (roughly 140 miles) northeast of Yellowknife in the Northwest Territories, just south of the tree line, was De Beers’ first mine outside Africa, but was put into care and maintenance in December 2015. De Beers’ second Canadian mine is Victor, located in the James Bay Lowlands of Northern Ontario (the first diamond mine in Ontario), approximately 90 km (55 miles) west of the coastal community of Attawapiskat. World Mining Magazine www.ogsmag.com

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“De Beers is the world’s largest diamond producer by value, with mining operations in Botswana, South Africa, Namibia and Canada”

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Construction of the mine began in February 2006, and the official opening was held on 26 July 2008. Production at Victor continues according to plan, but the current excitement in the country’s diamond industry has been generated by De Beers’ third and largest mine in Canada, Gahcho Kué, located at Kennady Lake, about 280km northeast of Yellowknife. The mine is a joint venture between De Beers (51 per cent) and Mountain Province Diamonds (49 per cent), and is expected to produce approximately 54 million carats of rough diamonds over its lifetime. Gahcho Kué is an open-pit mine, comprising three pits and covering 1,200 hectares. Full construction started in the 2014/15 winter and the mine officially opened on 20 September 2016. Production ramp up began on 1 August 2016 and commercial production was

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officially declared on 2 March 2017. Production is expected to last 13 years, averaging 4.5 million carats a year from around 35 million tonnes of scheduled material. “Today marks a significant landmark for De Beers in Canada as Gahcho Kué becomes an important contributor to the Group’s global production,” said Bruce Cleaver, CEO, De Beers Group. “That the mine has reached this landmark, on budget and ahead of schedule, is testament to the partnerships that have worked together since construction began. It’s a result of these partnerships that the mine is set to deliver socio-economic benefits of more than C$5 billion to the economy of the Northwest Territories over its lifetime.” In any construction project, delivery of equipment and materials is a challenge to logistical expertise. The construction of a mine in the Northwest

Territories is infinitely more complex than most. Permanent roads would be prohibitively expensive to build, so an ice road was built to enable the delivery of supplies - about 2,500 loads each year of fuel, construction supplies, mining equipment and other materials. Anything the mine required that needed to be delivered by road, had to come up the ice road in an eight week window in the coldest part of the winter. To access the kimberlite deposits at Gahcho Kué, the water level is being lowered in part of Kennady Lake, one of thousands of small lakes in the region. Some sections will be partitioned off and drained to reach the kimberlite by building a series of dykes, ditches, berms and ponds. But, as the water level is lowered, clean water is pumped into another watershed north of the lake. Gahcho Kué, which means place of the big rabbits or hares in the local

de beers in pursuit of brilliance

“Anything the mine required that needed to be delivered by road, had to come up the ice road in an eight week window in the coldest part of the winter”

Chipewyan language, began in 1995 when Mountain Province Diamonds discovered the first kimberlite deposit, known as 5034. Three other deposits were discovered by De Beers Exploration two years later, with two of them, the Hearne and Tuzo kimberlites, having excellent economic potential. Extensive drilling and analysis followed and environmental permits were sought and granted for 5034, Hearne and Tuzo. Canada is the world’s third largest diamond producer by value and the fifth largest by volume. Underpinned by a US$1 billion capital investment, the development of Gahcho Kué between 2006 and 2015 has already provided a C$440 million boost to the NWT economy, according to a recent socioeconomic impact study conducted by EY on behalf of De Beers. More than 90 per cent of Gahcho Kué’s economic impact will be delivered once

the mine becomes fully operational, equivalent to a further C$5.3 billion in Gross Value Added to the North West Territories. Including its supply chain impacts, the mine supported more than 2,700 jobs in 2015, with employment at the site representing more than 10 per cent of employment in the NWT’s extractive industries. 2016 was a busy and significant year for De Beers, and for its CEO Bruce Cleaver. “I have been working closely on the Gahcho Kué project since I joined De Beers a decade ago,” he said, ”and to see it happen so soon after I took the reins as CEO made me very proud. The opening was a very special occasion, with leaders from the First Nations communities who are hosting our mining activities joining us for it. We are a business that relies on partnerships, and our partnerships with communities of this kind are critical.” World Mining Magazine www.ogsmag.com

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NEW PATENT PENDING AXLEWEIGHR IN-MOTION AXLE-SCALE - WEIGHS TRUCK AT THE JOB SITE! Rinstrum’s new In Motion Axle Scale is a fast, accurate and economical way to weigh trucks and verify your net payload. The patent pending precast concrete design is semi portable and can be moved from jobsite to jobsite. Contractors, farmers, and plant managers will find this low cost scale indispensable to their operations. At 1/3 the price of a full length scale Rinstrum’s axleWEIGHr is excellent value Payload:

Always know what payload you are carrying. Roll across the scale at 2-3 mph and the easy-to-use controller will totalize the net payload for each truck as it passes over the scale. Up to 250 different trucks can be stored in memory. A door mounted printer records all transactions and data is captured to digital memory via USB storage drive, or Ethernet connection.

Convenient: The small footprint of this scale easily

integrates into the flow of traffic. No need to stop on the scale. Simply drive across at a constant speed (2-3 mph) and the scale will automatically do the rest.

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24 YEARS

Data Driven: The system will record total gross

vehicle weight by truck ID, commodity, time and date. Use the optional truck ID clicker system to identify the truck and select the commodity on the large remote display. Each trucks tare weight is saved in memory and then recalled when the truck crosses the scale for single pass operation. Data can be printed or stored to a convenient USB storage drive for easy transport to the office PC.

Economical: About 1/3 of the cost of a full length

Safe:

An accident with an overloaded vehicle is serious business. Know your axle weights and your total vehicle weight before you leave the jobsite. Stay under the legal load limit and be safe.

Accurate: On average better than ±0.5% repeatability

can be expected. Company testing as well as extensive field trials have shown that with flat and level concrete approaches ±0.2% or better accuracy can be achieved.

truck scale, the axle scale is great value for the user that does not have legal for trade requirements. Save time and expense by not driving to a faraway truck scale and install the axleWEIGHr at the job site.

About Rinstrum Inc.: Rinstrum has been

designing and manufacturing weighing systems for over 20 years. Our global manufacturing network has facilities in the United States, Germany, Australia and Sri Lanka in addition to an extensive network of dealers, OEM’s and service companies. Our Troy Michigan facility proudly manufactures the axle scale and other weighing products in the United States.

For more information please contact us at: Call Toll Free 1 877 829 9152 or +1 248 680 0320 from outside the United States Rinstrum in-Motion Axle Scale – Proudly made in the USA www.rinstrum.com World Mining Magazine www.ogsmag.com

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world mining directory the directory for the global mining industries drilling & blasting

electrical equipment

Doran Manufacturing Lee Demis Director of Business Development 2851 Massachusetts Avenue Cincinnati, OH 45225 Ph: (513) 699-6230 Email: Demis_Lee@Doranmfg.com Web: www.doranmfg.com

Dyno Nobel 2795 East Cottonwood Parkway Suite 500 Salt Lake City, UT 84121 Phone: 800-732-7534 Fax: 801-328-6452 Email: marketing@am.dynonobel.com Customers in the mining industry choose Dyno Nobel for quality products, reliable service and technical expertise. Dyno Nobel is the market leader in North America with facilities in Australia, Canada, the United States, Indonesia, Mexico, South America and Papua New Guinea. With a customer driven focus, Dyno Nobel develops practical products that will benefit customers in real time. Customers can count on real solutions to their pain points of today, helping them to reduce costs and increase production. Renowned for excellent safety performance and innovative explosive products and services, Dyno Nobel continuously delivers groundbreaking performance through practical innovation.

Established in 1953, Cincinnati, Ohio based Doran Manufacturing LLC. is a global leader in tire pressure monitoring systems and other transportation safety technology. Doran 360TM TPMS continuously monitor tire pressure and temperature data using wireless valve stem-mounted tire pressure sensors. Doran TPMS data can be integrated with telematics to communicate tire pressure and temperature data off equipment via wifi, gps and more for remote visibility of tire data. LumAware Advanced Photoluminescent safety products include Personal Protective Equipment (PPE – Helmets, Safety Vests) Exit Signage and more that makes workers performing tasks in low light/no light conditions safer, and illuminates exits and escapeways in emergencies.

drivetrain solutions

geotechnics

Formed in 1997, Canary Systems provides integrated geo-monitoring solutions for a broad range of mining applications, including open pit, tailings, SW-EX, and underground. We help clients better manage risk, monitor performance, and increase the safety of their operations by tying together the loose ends: the hardware required for automatic or semi-automatic data acquisition – and the software to collect, store, and analyze data in a simple and efficient way on a single combined powerful platform. We provide turnkey solutions – including system architecture, hardware and software development, telemetry, and instrumentation – as well as individual components customized to and augmenting existing project needs.

Canary Systems, Inc. Mining Group 4732 Oracle Road, Suite 112 Tucson, AZ 85705 USA Tel: 520.887.9800 info@canarysystems.com www.canarysystems.com

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• World Mining Directory mineral processing

GEA Group Peter-Müller-Str. 12 40468 Düsseldorf Germany Tel +49 211 9136-0 chemical@gea.com GEA is one of the largest supplier for process technology and components for sophisticated production processes for many industries worldwide. Across a broad range of mining and mineral operations, GEA offers technologies, equipment & services in evaporation and crystallization, drying, cooling, calcining and conditioning, classification, thickening and dewatering, crud treatment and solvent extraction and wastewater management.

Salter Cyclones Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems. Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

MINPRO

MINPRO International have subsidiary offices in 4 countries all of which have the same business, supplying mineral processing equipment and engineering for the mineral processing industry worldwide. Our main products are AKER Flotation Machines; Hydraulic Roller Mills, Semi Mobile Modular Concentrators, Hydro Cyclone Batteries as well as Polyurethane wear parts for the mineral processing industry. We deliver complete new mineral processing installations, renovation and upgrade existing mineral processing plants, retrofitting the AKER flotation mechanisms in existing flotation machines as well as engineering services and consultancy

Tel: +48 515 368 833 Minpro International Sp. z o.o. www.minpro.com

Want to advertise in the World Mining Directory for 12 months? • Small Advertisement (12 month placement) Total price: £595.00 • Large Advertisement (12 month placement) Total price: £795.00 For more information please contact sales@ogsmag.com mining equipment rentals

United Mining Rentals (UMR) was born out of a specific niche in the market for both short and longer term rentals for both new and used, Sandvik & Getman equipment for both underground & surface mining and also tunnelling applications. Coupled with +35 years of experience in the mining business, UMR provides both sales and rental of new & used mobile equipment for various mining & tunnelling operations across the world. In addition, our sister company, QME Mining Services Division (which operates as an International mining and tunnelling contractor), also operates a large fleet of predominately Sandvik equipment.

Tel. +353 (0)87 149 1945 www.unitedminingrentals.com

mining technology

Adrok is a cutting edge service technology company headquartered in Edinburgh, Scotland, with exclusive global patents to Atomic Dielectric Resonance (ADR) imaging technology. This innovative technology has been developed for use in Oil and Gas, Mining and Civil Engineering sectors. Adrok’s technology has been used in several projects around the world to explore the sub-surface geology and locate accurately and identify precisely the fluids present at great depths providing high resolution without drilling the underground. This subsurface imaging scanner generates ‘virtual borehole’ logs of subsurface geology from the surface. It is lightweight, field rugged and portable, to enable cost-effective mobilisation.

49-1 West Bowling Green Street Edinburgh, EH6 5NX (Scotland, UK) Tel: +44(0) 131 555 6662 Email: info@adrokgroup.com Website: http://adrokgroup.com/

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world mining directory process water treatment

software

Canary Systems, Inc. Mining Group 4732 Oracle Road, Suite 112 Tucson, AZ 85705 USA Tel: 520.887.9800 info@canarysystems.com www.canarysystems.com

Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems.

sump

Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

scales & weighing equipment

IVAC Industrial Vacuum Systems Ltd., manufactures a powerful pneumatic powered vacuum/ delivery system that allows you to pick-up and deliver your most difficult materials. The materials can be wet or dry including gravel, sand, slimes, sludge’s and water. The powerful, virtually maintenance free vacuum system is able to deliver the materials short or long distances, even up too kilometres through a pipeline or hose. Its is ideal for sump & ditch clean-up, tanks, under conveyors, around crushers and mills anywhere shovels, vacuum trucks or water hoses are being used for your clean-ups today!

Contact: Brad Fryburger Brad.Fryburger@rinstrum.com +1 248 680 0320 Website: www.rinstrum.com

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IVAC Industrial Vacuum Systems Ltd. 35-111 Chartrand Avenue, Logan Lake, BC V0K 1W0 Canada Phone 604-628-3367 Email zereko@zereko.com http://industrialvacuumunit.com

Motors, drives, mechanical power transmission â&#x20AC;&#x201C; all from one supplier.

We have delivered reliable products to the mining industry for decades and being a valued partner with our customers is something we care about very deeply. One way we can help increase reliability is to make sure all the components in your system fit together seamlessly. When you are specifying a power train for your application, we can design and deliver a complete solution with variable speed drives, motors, couplings, bearings, gearing and pulleys. Take your energy efficiency to the next level with the best possible cost of ownership. With our expertise and extensive product and service offering you can ensure safe processes for machines and people. To learn more, call ABB or visit www.abb.com/powertrain-mining.

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

Are equipment trips slowing down your ore? Operate to constraints to maximize flow. Pavilion8ÂŽ drives your operation to maximum potential The Pavilion8 Material Flow Management application provides real-time visibility of complex multiple conveyor systems in a mining facility. By taking advantage of existing data, the application improves performance by initiating preventive or corrective measures prior to a system trip.

Discover how a Pavilion solution can help you operate your facility at maximum efficiency.