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Mines of information: The role of wireless communication in mining

2015 Issue 7

World Mining

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Editor

The

Martin Ashcroft

A broad transformation

hen times are tough, miners follow industry guidelines – they cut costs. They reduce headcount, they put projects on hold and they restrict discretionary spending. This has unwelcome effects all the way along the supply chain, as the publishing industry understands only too well, sitting firmly in the ‘discretionary spending space’. Leading management consultants, however, believe that something much more fundamental is now required. According to Deloitte’s Mining Industry Outlook 2015, “waiting for a market upswing or adopting traditional cost containment measures will not likely suffice to turn the sector around.” Spending creeps back up to historical levels, they point out, when the cycle swings upward again, driving a continuous cycle of cost cuts and cost creep. “Positioning for success will require adoption of an alternative strategy,” argues Deloitte. “Mining companies should institute a long-term cost management and operational improvement culture across the supply chain, from pit to port, by investing in technology.” Ernst & Young sees things much the same way. In Productivity in mining: A case for broad transformation, EY points out that mining productivity has been declining since 2000 and that this has largely been a deliberate choice. “Mining companies pursued production and revenue growth during the boom period in

commodity prices, and mines were developed to get product out as quickly as possible, not as economically as possible.” EY agrees that individual cost-cutting solutions are not the answer, as they often push the problem further down the supply chain. “A broad, end-to-end business transformation is required to regain competitive advantage. We also believe that innovation and technology could be a productivity game changer, as R&D in the sector has fallen behind other comparable sectors.” Most productivity increases in the past have been achieved through incremental developments in technology and the use of ever larger machinery. More recently, however, the introduction of computer technology, remote control interfaces, satellite communications and robotics have opened up opportunities for improvement on a much larger scale, but the industry has been slow to implement this kind of initiative. With the exception of a few large miners, says Deloitte, much of the mining industry has not yet adopted big data to the same degree as other capital-intensive sectors like defence and the oil and gas industry. “Real-time analysis of data from connected machines, fleets and people can open new chapters in increasing mine safety and productivity.” Our article Mines of information in this issue has more to say about wireless automation. WORLD MINING MAGAZINE www.ogsmag.com

Contents Page 18

Cover story: Mines of information

The Editor: A broad transformation

Miners in Africa & Asia more likely to switch OEMs

News in brief

Rwanda is the biggest mineral exporter

Outback area attracts Australian prospectors

Maptek markets new Sentry monitoring system

Goldgroup Mining Inc. acquisition

Could graphite be the perfect fertiliser?

Largo Resources breaks record

What China means to the world

Goldcorp & Teck to combine projects in Chile

Vale: Transforming natural resources

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News and features

News in Brief Red Eagle Mining has commenced construction at its San Ramon Gold Mine in Antioquia, Colombia. Construction will unfold over the next twelve months, with production expected to commence during the second half of 2016. Earthworks have commenced with clearing of the ground for the underground mine access and the conventional flotation/carbon-in-leach processing plant. The bulk earthworks contract has been awarded to Consorcio San Ramon Proyecto Civil, a joint venture between Medellin-based Gisaico SA and Minconstrucciones SA.

Previously prohibited outback area attracts Australian prospectors

* * *

Service contracts are increasingly important for mining equipment suppliers facing reductions in new sales. A recent Timetric survey found that nearly half (44%) of respondents prefer a maintenance only service contract for their equipment, while life cycle management is popular in the US coal and precious metals industries. Curiously, not a single iron ore respondent indicated a preference for life cycle management contracts. * * * LKA Gold has executed an exploration agreement and option with Kinross Gold USA to expand its Golden Wonder Mine beyond its current active workings. The agreement grants Kinross a fiveyear exclusive right to explore, and if successful, develop any mineral resources containing 50,000 or more ounces of gold on LKA’s properties above and adjacent to the Golden Wonder Mine near Lake City, Colorado. If such a resource is discovered, LKA will have the option to enter into a joint venture with Kinross. * * * The Uranium Producers of America (UPA) has elected Harry Anthony, recently a senior advisor with Uranium Energy Corp (UEC), as president of the national organization promoting the US uranium mining and conversion industry. An internationally recognized expert in the uranium industry, Anthony has been active in the energy arena for over 45 years He is a past board member and chief operating officer of UEC, a publicly traded company based in Corpus Christi, Texas.

nterest has grown in a previously ‘off limits’ area of the Australian outback with potential gold, uranium and copper assets. A total of 59 exploration licenses have been granted to explore the Woomera area in South Australia since restrictions on the land were relaxed. Located in the far north of South Australia, the Woomera Prohibited Area has been used as a rocket testing range and was declared a prohibited area under Australian Federal Legislation. An amendment to the Federal Bill in July 2014 has now opened up parts of the land to mining exploration. South Australian Mineral Resources and Energy Minister Tom Koutsantonis acknowledged the work of former South Australian Senator Don Farrell who had pushed for access to the area that may unlock an estimated $35 billion in potential gold, uranium and copper assets. “The level of interest shown by explorers since the legislation passed is extremely promising with 59 exploration licences submitted since last August, covering about 18,460 square kilometres,’’ he said.

“As a result of the downturn in global commodity prices the industry is facing significant challenges. But we also know the resources industry is a cyclical one. “For that reason it is crucial that we provide explorers with a regulatory framework that gives them the confidence to go out to find the next major discoveries, so when the inevitable upswing occurs they are ready to invest and create jobs for South Australians.” Stretching more than 127,000 square kilometres, roughly the size of England, Woomera potentially contains some of the world’s richest mineral and petroleum resources. Geoscience Australia estimates 62 per cent of Australia’s known copper resources and 78 per cent of the nation’s known uranium resources are located in the area and its immediate surrounds. “While defence remains the primary user of the area for testing and evaluation, the legislation sets out user access rights, an access permit scheme, compensation and cost recovery arrangements, enforcement provisions and an appeals process,” said Koutsantonis.

Goldgroup Mining Inc has acquired all of the issued and outstanding shares of 0990718 B.C. Ltd, a private company which holds the option to acquire an undivided 80% right, title and interest in the El Mozo gold project in Ecuador. The 1,776 hectare El Mozo Project is located approximately 60km south of the city of Cuenca in southern Ecuador. A total of 120 core holes have been drilled on the property by previous workers, focused primarily on three zones with near surface oxide gold mineralization. Preliminary metallurgical test work indicates these oxide zones are amenable to low cost heap leaching. WORLD MINING MAGAZINE www.ogsmag.com

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News and features

Largo Resources breaks records at Maracás Menchen mine

argo Resources continues to break production records at its Maracás Menchen mine in Bahia, Brazil, achieving a new daily production record on Monday 23 August of 27 tonnes of vanadium pentoxide (V2O5), approximately 102% of the plant’s daily design capacity. On the same day Largo reached another production milestone of 10 million pounds of V2O5 produced since production began in August 2014, and the next day the plant produced another daily record of 29 tonnes of V2O5 - or approximately 110% of the plant’s daily design capacity. “This is an enormous achievement for Largo and the Maracás Menchen Mine,” said Mark A. Smith, president and chief executive officer. “Following a record

month of production in July of 607 tonnes, we have again set new records in August by achieving daily production rates above design capacity over two consecutive days.” Over recent months the plant has demonstrated its ability to produce at higher rates more consistently, producing at or above 20 tonnes per day (approximately 75% of the plant’s capacity) for 18 days in July, of which 11 days were at or above 23 tonnes per day, approximately 87% of the plant’s capacity. “We continue to aggressively pursue every opportunity to further enhance the Plant’s stability at these record production levels through several ongoing engineering optimization projects,” said Michael Mutchler, chief operating officer. “We are greatly looking forward

to achieving increases in our daily and monthly production rates from here.” The majority of the company’s engineering optimization projects are already in the process of being implemented, but due to long lead times (including engineering, construction and delivery) of several key items, the majority will not be commissioned and operational until the end of the third quarter 2015. Largo’s Maracás Menchen Mine boasts the highest grade vanadium deposit yet discovered and is expected to be a low cost producer. Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. With an off-take in place with Glencore, Largo is well positioned to become a leading producer of vanadium globally and is expected to generate substantial cash-flows. WORLD MINING MAGAZINE www.ogsmag.com

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News and features

Goldcorp and Teck to combine projects in Chile

oldcorp and Teck Resources have agreed to combine their respective El Morro and Relincho projects into a 50/50 joint venture. The projects are approximately 40 kilometres apart in the Huasco Province in the Atacama region of Chile. The combined project will have the interim name of Project Corridor. “Combining these two neighbouring assets is a common sense approach that allows us to consolidate infrastructure to reduce costs, reduce the environmental footprint and provide greater returns over either standalone project,” said Don Lindsay, President and CEO of Teck. “The combination of El Morro and Relincho is consistent with our focus on maximizing value from our asset portfolio,” agreed Chuck Jeannes, President and CEO of Goldcorp. “We now have an improved development approach that we expect to significantly decrease initial capital requirements and increase financial returns, while ensuring the project is developed in partnership with our neighbours, creating lasting benefits for residents in the region and our shareholders.” Based on the results of a preliminary economic assessment, Project Corridor contemplates a conveyor to transport ore from the El Morro site to a single line mill at the Relincho site. Infrastructure requirements will also be reduced by the use of a single desalination plant, a single port, a single transmission line, a single concentrator and a common tailings facility. As a result, the environmental footprint of Project Corridor will be significantly less than the combined footprint of the standalone projects. The use of a common tailings facility located at the Relincho site responds to concerns expressed by local communities regarding the location of the previously proposed El Morro tailings facility within the agriculturally important Huasco River watershed. Common infrastructure will significantly reduce project capital costs and ongoing operating costs. The initial capital cost to bring Project Corridor into production is targeted to be US$3.5 billion, with further capital required to construct future phases being funded largely from project cash flows. The feasibility studies of the standalone El Morro project and standalone Relincho project had previously estimated development costs at US$3.9 billion in

2011 dollars and US$4.5 billion in 2013 dollars, respectively. Project Corridor is one of the largest undeveloped copper-goldmolybdenum projects in the Americas. The integrated project allows for the optimization of both resources, resulting in a longer mine life of at least 32 years, based on existing proven and probable reserves, with the scope for further extensions given the significant exploration potential across the combined property. Initial stage development contemplates a single line mill and concentrator facility with an initial capacity in the range of 90,000 – 110,000 tonnes per day to produce an average of approximately 190,000 tonnes of copper and 315,000 ounces of gold per year over the first full 10 years. Project Corridor is expected to provide significant economic benefits to the local region. An estimated 4,000 jobs will be created during the construction phase and 1,400 jobs during operation. The increased mine life will provide longer-term employment opportunities and community investment. In the months ahead, project staff will be meeting with the community and indigenous peoples to explain the Project Corridor concept. In combination with community consultation, a pre-feasibility study is expected to commence in early 2016 and be completed in 12 – 18 months. Assuming a positive pre-feasibility study, a feasibility study would be initiated thereafter. Goldcorp’s El Morro project contained proven and probable reserves of 8.9 million ounces of gold and 6.5 billion pounds

of copper as at December 31, 2014. Teck’s Relincho project contained proven and probable reserves of 10.1 billion pounds of copper and 464 million pounds of molybdenum as at December 31, 2014. Based on the December 31, 2014 mineral reserve figures reported by Goldcorp in respect of El Morro and Teck in respect of Relincho, the proven and probable reserves of Project Corridor would contain approximately 16.6 billion pounds of copper, 8.9 million ounces of gold, and 464 million pounds of molybdenum.

Send your news to martin@ogsmag.com WORLD MINING MAGAZINE www.ogsmag.com

News and features

Miners in Africa and Asia more likely to switch OEMs

hile miners in Australia and North America are relatively loyal to their current OEMs, over half of those in Asia are likely to seek out a new supplier within the next five years, finds Timetric’s Mining Intelligence Center. A recent survey of buyers and senior decision-makers from over 500 mines worldwide asked respondents to outline their expectations towards switching their major equipment manufacturer within the next five years. The results show quite different potential for heavy mining equipment manufacturers to win new business and market share across the six regions surveyed. Australia has the lowest share of mining companies likely to switch from their current supplier, with 71% saying ‘definitely yes’ and ‘probably yes’ to remaining with their current supplier. Respondents were also asked to outline satisfaction ratings for their primary equipment suppliers across a range of 16 different factors covering product quality, availability of parts, and on-time delivery and installation of equipment. Manufacturers in the Australia region performed well in product quality/ reliability and the availability of replacement parts, showing the difficulty for competing suppliers to break into the current market. Results in the North American region showed 59% expecting to stay with the same manufacturer. US respondents had the highest ratings of all other countries surveyed, and with strong loyalty towards current suppliers it is a hard market for competing suppliers to crack. The Asian market, however, provides the greatest opportunities for equipment manufacturers and suppliers to win business. This region had the greatest number of respondents who anticipated switching suppliers within the forecast period, with 52% citing both ‘definitely yes’ and ‘probably yes’. This region also had the greatest share of respondents who were unsure - with 30%.

Rwanda is the biggest minerals exporter in Great Lakes region

wanda produces more minerals than any country in the Great Lakes Region, says a global notfor-profit agency that has been dealing with the traceability, tracking and due diligence of the so called “conflict minerals.” According to the report by iTSCi program, by May 2015 Rwanda had produced 840 metric tons of minerals. The iTSCi is an initiative that assists upstream companies to institute the actions, structures, and processes necessary to conform to the globally instituted standards to control minerals from conflict areas. Of the 815 mining sites in Rwanda, the report says 442 sites are active while neighboring Democratic Republic of the Congo (DRC), known for vast mineral wealth, produced 826 metric tons from only 365 active mining sites. “The 2007 reforms in the mining sector and conducive environment have attracted more investors. We have more private capital and improved mining and

processing methods,” Evode Imena, state minister in charge of mining, told KT Press. This year alone, two new mining companies have already established in Rwanda including Piran Resources Ltd, injecting $22 million and Mawarid Mining Company from Oman, currently signing a deal with the government. Imena said Rwanda intends to triple its mining production capacities in the next four years, despite the current challenges of falling global prices. Rwanda has introduced a Minerals Traceability Program where all its minerals are tagged from the mining sites until their final destination. “Rwanda has fulfilled all the requirements,” said Mr. Imena, adding, “Rwanda was the first country in the Great Lakes region to commit to large-scale implementation of iTSCi in 2011.” The iTSCi program has been in development since 2008. It uses uniquely numbered tags that allow companies to confirm the actual source and trading chain of the minerals they purchase. WORLD MINING MAGAZINE www.ogsmag.com

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News and features

Maptek markets new Sentry monitoring system

he South Australian office of Maptek has sold its recently created laser Sentry monitoring system to Havilah Resources Pty Ltd which will use the system at its open cut Portia gold mine in South Australia. Founded 30 years ago, Maptek provides software, hardware and services for more than 75 mining companies around the world. The Sentry system can monitor minute mine wall movement, record stockpile volumes, conduct geotech analysis and calculate the size of potential rockfalls. Chris Giles, managing director of Havilah Resources said the Sentry product was ideal for the unique situation of the Portia mine. “The Portia mine is very unusual as the gold deposit sits about 60m to 70m below a surface of soft clay material,’’ he said. “To my knowledge no one has dug a mine through this material, at such a depth, before in Australia. Normally miners are cutting through more stable surface material, such as rock. As a result wall integrity accuracy is critical, especially for worker safety. The accuracy of this new system allows us to measure any movement in the mine walls down to

a couple of millimetres. “If the data shows a wall is burgeoning this can indicate possible future pit wall failure and the problem can be addressed safely and quickly. This system allows us to measure wall movement of just a half a centimetre, up to a kilometre away. It also provides a cost effective solution compared to expensive radar systems which can cost up to $40,000 a month to hire.’’ The automated system constantly scans walls and zones and sends the information to a surveyor or engineer via their laptop or tablet. It is also used to measure stockpiles of ore quickly and accurately. “It also allows us to work out volumes very accurately, measuring how much material has been added to stockpiles and be aligned with material taken out of the mine, right down to a couple of cubic centimetres,” said Giles. James Howarth of Maptek said the system helps replace the need for a surveyor or engineer to physically enter an active mining area to collect data and reduces the need for expensive radar measuring equipment. “Sentry can be used to alert staff when surface movements approach certain thresholds and is ideal

for detecting small movements over a long period of time to identify trends,” Howarth said. “Remote detection causes no interruption to mining activity and can be controlled from the field or the office while scans can be viewed in real time. The 3D scanning data can also be used to calculate volumes of potential rockfalls and conduct geotech analysis.” Phillip de Coursey, chief executive officer of the Resources and Engineering Skills Alliance (RESA) said the breakthrough system was good news for the mining industry. “Anything that adds to mining safety in a cost effective way is always welcomed,” he said. “Maptek continues to establish itself as a world leader in mapping technology.” He said with the industry currently facing many emerging issues and challenges, such as falling commodity prices, it was reassuring to see to companies taking a leadership role with investment and technological innovation.

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Mines of information

A constant thread throughout the history of mining has been the introduction of new technologies. Martin Ashcroft looks at the role of wireless automation, including mobile and remote control devices

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afety and efficiency were driving forces for the Ancient Greeks and Romans, and so they are for us today. With low commodity prices dominating the industry, improvements in efficiency are paramount, but new technology can now be found in every aspect of mining. 20

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Many factors influence the investments mining companies make in technology. These include the history of the industry in the region, the age of the equipment used, mine life, environmental constraints and factors regarding the workforce of the industry, among others. Mining analyst Timetric surveyed over 630 mines across six regions earlier this year to gauge their investment priorities in different areas of technology. The results show remarkable differences in strategy in different parts of the world. Operations throughout Asia are looking to invest in high-level minemanagement software, for scheduling and optimisation purposes. The European region, which also includes the former Soviet Union, is investing in technologies to handle fleet management and vehicle monitoring, showing a strong inclination towards improving equipment utilisation. In Africa, the majority of investment is in fatigue management technologies, and shows a strong focus on employee/operator safety and wellbeing. Improvements in remote control and

Mines of information always the highest priority for any mine operator. The haul trucks produce a steady stream of GPS and operational data that provides real-time tracking. Using the OnStream technology, Cirrus System uses this data to continuously monitor haul trucks as they move through the mine. When a truck approaches an intersection, a priority message is sent to an intelligent traffic controller, which then triggers a traffic light that stops opposing traffic and gives the haul truck the right-of-way so that an expensive start and stop is avoided. The technological advance here is that OnStream moves beyond prior generation technologies which depended upon human operators sitting in front of screens full of data to make the decisions that change the operation of devices. OnStream sets the stage for a new level of automation where the product completes its own information process and makes its own best decisions, bringing the integration of the internet of things a step closer. There is no doubt that mobile communications and wireless networks are the next step in improving safety, productivity and on-the-job efficiencies at mine sites around the world. “That’s absolutely true,” says Eric Brouillette, vice president of the Wireless Automation Control Solutions division of Laird, a global leader in wireless connectivity for the mining, telecom, automotive and other industry sectors. “Regardless of the type of mining – surface, open-pit, quarrying, or strip – reliable wireless communications networks can transform mining job sites, making them much safer work environments.”

“Research by mining analyst Timetric shows remarkable differences in technology strategy in different parts of the world”

machine automation technologies are at the top of the list for the Latin American region. In North America miners are predominantly looking to make improvements in collision avoidance and proximity detection technologies - another safety directed technology - but also want to improve equipment utilisation. OnStream, a US device intelligence framework provider, has been granted $2 million in funding from the Traynor Family Enterprise, a Nevada-based holding company that has backed various technology and industrial ventures. One of these, Cirrus Systems, used OnStream technology to integrate existing streams of data to reduce the operating costs of a huge Nevada mining operation. Giant haul trucks, some them carrying as much as 400 tons of ore, cross the mine continuously. Some of these trucks burn as much as three gallons of diesel fuel to travel a mile, and cost-conscious mine managers must try to reduce wasteful starts and stops. At the same time, traffic safety on busy roads throughout the mine is

Under normal circumstances, the transmission of radio waves is adversely affected by the tunnels in underground mines, and signal performance deteriorates rapidly, but consistent wireless communications can be achieved, even in underground environments, to enable voice and data communications as well as internet connectivity. For effective communication however, radio waves must be distributed consistently throughout the mine environment, both at the surface and underground. Mines need a reliable mobile network that can maintain consistent radio signalling on massive sites and deep inside tunnels that can stretch as much as four or more miles. “The best wireless solution combines conventional two-way radio technology with high-speed data transmission,” says Brouillette. “This allows mining management, supervisors and mine workers to communicate by voice and data, but it also provides consistent, reliable signal strength above and below ground for automated equipment and vehicles.” Mobile networks facilitate voice and data communications, enabling miners using wireless remote controllers to operate equipment from safe distances, improving mine safety exponentially. Data communication in the mine is used today for process control, ventilation-on-demand, blasting systems, seismic activity monitoring, tagging, email, internet connectivity and other applications. In addition to voice and data communications, a reliable wireless network also enables miners to operate giant and often dangerous equipment from a safe distance through the use of wireless remote controllers. Load haul dump portable remote control systems (often referred to as LHD) duplicate the manual controls in the cab of the load-haul-dump, allowing the operator to direct WORLD MINING MAGAZINE www.ogsmag.com

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A reliable wireless network enables miners to operate giant and often dangerous equipment from a safe distance through the use of wireless remote controllers

Diagram courtesy of Laird 24

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Mines of information processing, and other applications where direct line of sight is neither feasible nor safe. Operators of vehicles in low-ceiling mines can use video monitor assists, which give them a clear view of the front or the rear of the vehicle. Driven by the transmission, the forward and reverse view is selected automatically. Laird’s contribution to the development of mobile technology is SIAMnet, a communication system designed for underground mines which allows people and computers to communicate with each other. The system is easy to configure, install and service, says Brouillette, because it is based on cable television standards. Key features include Wi-Fi access points for reliable, consistent signals for tablets/laptops, smartphones, remote controllers, and other devices, and IP cameras that provide live streaming and real-time images for miners, playing a crucial role in safety and security. Tagging systems enhance safety by identifying miner locations in the event of an emergency and other applications can be enabled by PLC and other automation systems including remote I/Os for safe-distance control of mining equipment, VOIP telephones (hardwired or wireless) and support for any ethernet-based application.

“OnStream has been granted $2 million in funding from the Traynor Family Enterprise, a Nevada-based holding company that has backed various technology and industrial ventures”

the equipment from a safer location. They offer up to five digital proportional functions, and provide smooth and precise control of the vehicle in the most demanding environment. Wireless networks can enable the use of handheld remote controllers to safely operate excavators and bulldozers that are used in dangerous conditions such as unstable terrain, blast areas, or in areas at high-risk of falling debris. Remote controllers can also be used to manage all critical vehicle functions, such as ignition, steering, transmission, acceleration, braking, blade control, dump bed control, excavator bucket and boom and other functions without the need for an operator’s physical intervention. Multiple units can share each radio frequency. Video remote control systems can give the operator clear video pictures of the work zone, when he or she is not in visual contact with the equipment. The camera system provides accurate and safe control with up to three highly accurate camera inputs, and can be used with LHDs, bolters, scoop trams, etc, chemical

In South America, Barrick Cortez used geotechnical instrumentation and real-time wireless telemetry to improve mine safety and efficiency, choosing a world-class wireless system developed by Mine Design Technologies and Newtrax Technologies which virtually eliminates manual readings by continuously monitoring over 300 instruments and relaying the data to a central interface at mine operations. Long term mine planning is particularly challenging at Barrick Cortez. Not only is the mine one of the world’s largest gold operations, but it comes with the added complexity of operating above and below ground simultaneously. To ensure safety and productivity, Barrick’s geologists and engineers rely on accurate and timely data from over 280 wells and piezometers on surface, in addition to more than 100 hydrology and geotechnical instruments underground. Monitoring so many data points in the mine required the team to travel regularly to take manual readings. This was a time intensive process and could be quite difficult as many instruments were in remote locations. Barrick engaged Mine Design Technologies and Newtrax Technologies to come up with a solution. Mine Design Technologies is focused on the development and deployment of geotechnical instrumentation for challenging mining environments, while Newtrax Technologies based in Montreal, Canada, specialises in ultra-long life wireless telemetry and networking systems. The MDT and Newtrax solution consisted of a world-class multi-hop wireless telemetry system which continuously monitors sensors and relays the information back to a central web interface using ethernet gateways, MineHop wireless nodes and geotechnical and hydrology instruments. WORLD MINING MAGAZINE www.ogsmag.com

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Both above and below ground the system works as a mesh, with each node not only collecting data but also acting as a repeater to send data back to the central web server. Each wireless node can monitor multiple instruments and is completely plug and play. It begins sending data to the engineer’s desk as soon as it connects to the mesh network. Installing a MineHop node is simple. When the node is turned on, it automatically connects to the network. Status LEDs alert users where network signal is strong or weak. The user picks a location where the signal strength is good and mounts the node in place using tie wraps. The process is repeated until network connectivity is extended to the target location for instrumentation. The system at Barrick Cortez saves time and money, while ensuring that the mine engineers and geologists get the data they need to properly plan for safe and efficient operations. “Some of our piezometers can be in some pretty remote locations here, so having a wireless network allows us to download the data 28

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remotely, so that we don’t have to travel to every piezometer and download that data,” said mine geologist Jeremiah Larocque. “It turns a 15-minute commute into a 2-minute commute,” added underground geotechnical officer Luis Rodriguez. Pennsylvania based Rajant Corporation is a pioneer in kinetic wireless mesh technology and was brought in to resolve communication issues at the Asarco Ray mine in Arizona. Asarco Ray is a large open pit copper mine with historical underground operations dating back to the 1880s. The Ray operations consist of a 250,000-ton per day (tpd) open pit mine equipped to support both a 30,000 tpd concentrator and a 20,000 tpd concentrator. Asarco Ray covers an area of about 21 sq. miles, a coverage area roughly three miles wide and seven miles long. The site is located in a valley, with a staggering 2,400 ft. deep pit that presents a major challenge for implementing any type of minewide wireless network. Space constraints and little to no line-ofsight are additional difficulties.

Mines of information throughput and dealing with its challenging geography. During the period Asarco Ray spent shopping for a new wireless network, it discovered that Rajant had a proven track record of success implementing kinetic mesh networks at other operations facing similar needs for scalability and mobility. Rajant’s wireless BreadCrumb® nodes enable voice, data and video communications to “hop” from node to node with very little administrative overhead burdening the network. Finding a way to avoid network disruptions was paramount, and the team was impressed by the way the Rajant network could rebuild and “heal” itself based on whatever wireless nodes were available. The fact that the network intelligence is distributed across all BreadCrumb nodes, rather than relying on a single controller node to drive communication, was a significant differentiator. Asarco Ray deployed the Rajant network in May 2014, and it soon paid off, allowing the company to elevate its mine-to-mill process oversight to an entirely new level. Officials can now track the amount of energy it takes to drill, helping the organization determine the best ways to blast and process the rock. Sadly, after the price of copper hit a six year low at the end of August, Asarco announced it is to cut operations at the Ray complex, resulting in around 30,000 tonnes per year lower production.

“In a world-first under the next phase of its Mine of the Future programme, Rio Tinto is now able to precisely identify the size, location and quality of ore in real time by retrieving data from automated trucks and drills operating in its mines”

Diagram of WACS-SIAMnet-BRO from Laird

The vast majority of the mine haulage operation involves lifting material out of the pit to the dumps or crushers (vertical hauls up to 1,800 ft.). The elevation change adds an additional complexity and communication with trucks, shovels and other equipment can be difficult. The ability to collect complete and accurate data is critical to the company’s success. The team evaluates the performance level of drills on rocks and also uses data to determine the best scenarios in which to employ different methods, such as crushing and blasting. While the organization had multiple systems collecting data, the company’s ability to collect accurate and in-depth data was called into question. That uncertainty eroded trust. No one wanted to make decisions based on faulty data. Plagued with an inability to prove it was collecting all the data needed to make critical business decisions, Asarco Ray investigated the cause of its communication issues. The legacy wireless network was subsequently found to be inadequate. The mining company’s primary concerns were coverage,

On the other side of the world, Rio Tinto in Australia has developed a three-dimensional mapping technology to capture a crucial advantage in the recovery of mineral deposits. In a worldfirst under the next phase of its Mine of the Future programme, Rio Tinto is now able to precisely identify the size, location and quality of ore in real time by retrieving data from automated trucks and drills operating in its mines. RTVis™ creates 3D images of mine pit activities that previously could not be measured and has led to greater ore recovery through sharper boundary identification, more accurate drill blasting, reduced explosives, improved waste classification and enhanced dig rates. “This technology allows us to quickly and easily view, compare and evaluate data to paint a picture of what’s under the ground,” said head of innovation John McGagh. “It’s like an ultrasound image of the deposit delivered in real time, something that we could never do before.” Despite falling metal prices, forward-thinking mining companies continue to develop and implement new mobile technologies to protect miners and improve productivity and efficiency above and below ground.

WORLD MINING MAGAZINE www.ogsmag.com

BOOYCO ELECTRONICS OVERALL PDS EQUIPMENT EFFECTIVENESS HELPS ENSURE SAFE AND PRODUCTIVE MINING OPERATIONS

he current economic climate is pushing mining companies to reduce their costs. Unfortunately, highly capital projects such as pedestrian detection system (PDS) technology is an area often compromised as a result, leading to safetyrelated accidents and operational downtime. The investment in a quality PDS system promises to reduce these two issues and ultimately contribute to a safe and productive mine.

Poor quality equipment compromises overall equipment effectiveness and often leads to higher running costs and capital outlay in the long run, particularly if the system does not comply with legislated guidelines or only offers machine-to-machine interaction. 30

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Booyco Electronics has been and remains at the forefront of PDS technology in the South African mining industry since 2006. “Our fit-for-purpose, ISO and legislation-compliant PDS technology, which we continuously improve and upgrade, offers world class overall equipment effectiveness which in turn ensures pedestrian safety,” says Martin Vermaak, operations manager at Booyco Electronics. He believes that the mining sector’s lack of education on legislated compliance requirements for PDS technology is contributing towards their uninformed decisions when choosing a system.

Booyco Electronics “Booyco Electronics can assist customers to translate the legislated guidelines into actionable activity to become compliant as well as manage their risks. Only when customers understand compliance requirements as well as the available technology can they make informed decisions. Until then, the industrywide implementation of PDS technology remains an issue.” “Once informed, the purchase of a reliable PDS from a reputable original equipment manufacturer such as Booyco Electronics will become a natural choice, ultimately ensuring overall, world-class equipment effectiveness and the reduction in potential pedestrian and vehicle collisions,” Vermaak continues. The Booyco PDS equips miners with two-way RFID tags and vehicles or other static danger zones with VLF antennae. This creates stable fields of a predetermined size and shape in front of and behind the vehicle. Upon entering this danger zone, either a static danger zone or an approaching vehicle, the pedestrian’s tag immediately triggers a warning signal and relays an audible and/or visual warning alarm to the equipment operator. The company’s overall PDS equipment effectiveness also offers significant production advantages Vermaak continues, specifically performance indicator functionality. The incorporation of Booyco PDS technology can maximise production uptime by providing holistic views of equipment availability, i.e. vehicle losses or breakdowns, as well as shift and material volume performance. “In essence, our equipment should contribute towards machine availability and performance uptime while reducing loss impacting occurrences such as nuisance alarms. Further to this it also provides data to determine such sources of loss.” To ensure its system continues to perform optimally after installation, Booyco Electronics offers additional 24/7 product maintenance and repair support through its service teams, on site or in close proximity to site, again preventing operational downtime challenges when implemented. The company has offices in six mining-strong geographical locations across South Africa, offering full service level agreements and technical support from a local base. “Our core equipment is also supported with peripheral products that are engineered to help customers managing their equipment and personnel safely; such as lamp room testers which test cap lamps for battery capacity, and the visual and audible performance of the Booyco pedestrian personal device,” Vermaak concludes.

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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.

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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.

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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

Could graphite be the perfect fertiliser?

Graphite plays an important role in our mobile world of battery-powered gadgets, but it may also help us grow our plants

rare form of graphite is currently being researched in South Australia as a potential soil conditioner. Initial research by the University of Adelaide has shown this particular type of graphitic carbon contains critical slow release macro and micronutrients essential for healthy plant growth. Archer Exploration Pty Ltd currently has a number of graphite deposits on Eyre Peninsula in the northwest of South Australia and has submitted a draft mining lease proposal for the development of its first planned mine at Campoona Shaft. However, it is another of Archer’s graphite deposits, the Sugarloaf deposit, which has been getting a lot of attention lately because its graphite has unique physical and chemical characteristics that may make it ideal for use as a dry land soil conditioner. Archer Exploration managing director Gerard Anderson said the Sugarloaf graphite deposit was identified as ‘unusual’ at an early stage. “This particular graphite occurs as fine matted porous accumulations, the very low crystallinity sets it apart from our other graphite deposits in the Cleve area,’’ he said. 34

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“Last year we entered into a research collaboration with the University of Adelaide’s School of Chemical Engineering for a two-year, $200,000 research program to assess this form of graphite and identify commercial uses for it focusing on large scale uses in agriculture.”

“The problem with current broad acre fertilisers is that nutrients can be lost in certain weather conditions” According to Anderson, carbon compounds such as biochar and peat are already widely used to improve soils. Soil conditioning includes improving soil structure, adding essential nutrients for plant growth, aiding the storage of nutrients and improving moisture retention. “The problem with current broad acre fertilisers is that a large

Graphite

percentage of the nutrients can be lost or become unavailable to plants under different weather situations,” Anderson said. Farmers can find up to 70 per cent of fertiliser washed away after a heavy rain. Early research has shown that essential macro and micro-nutrients contained in this unique graphite are released slowly under leaching conditions and remain in the soil to provide longer-term nutrient hits to plants during the growing cycle. “The research findings to date are highly promising and we are close to taking the next step of plant trials to determine the optimum dosage rates and whether this translates into significantly improved plant health and grain yield,” he said. The research comes at a critical time for dry land agriculture across the world. “The projected medium-term impact of global warming is for drier growing conditions,’’ Anderson said. “No till farming is currently providing a buffer against drier conditions but more ‘forward leaps’ will be needed to sustain and increase cereal production and Sugarloaf graphite may well be one of those transforming leaps.” The next step will be to define optimum dosage rates then to

commence plant trials to quantify the impact of adding the carbon on plant health and crop yield. If successful, field trials would be undertaken. The Sugarloaf graphite has similarities to another form of carbon found in Russia that has been used to fertilise soils for quite some time. Anderson said Sugarloaf has an exploration target of 40-70 million tonnes of 10-12% total carbon that could be converted to a resource with further drilling. The research project has also tested the impact of graphene coatings on conventional fertilisers. These molecular coatings significantly reduced the release rates of the nutrients. The University of Adelaide recently provided a brief reference to the research in a paper on the subject in New York and it immediately gained interest from global fertilizer companies. “We know there is international interest for the product and once we are able to quantify its impact on plant health and crop yields, we believe there will be further interest in the project,” said Anderson. www.archerexploration.com.au WORLD MINING MAGAZINE www.ogsmag.com

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What China means to the world

he statistics on China are impressive. In the 1990s it was an afterthought when we talked about the global economy – 2.7% of world production of traded products, 1.5% of exports to the world of traded products, 1.7% of imports of traded products, but just .007% of world imports of mining and minerals including crude petroleum – hardly the most important country when you talked about oil or mineral prices and demand. If you wanted to talk about the country of the future you pointed to Japan. In the Japanese case the world looked quite different. Its share of world traded products output was 21% in that same year. It controlled 11% of world exports of these products and six per cent of world imports of traded goods of which it consumed 22% of imports of crude and primary minerals. Of course, the nation everyone wanted to catch up to was the United States. In 1990 its share of world output of traded products (primary products and manufactures) equalled 21% of world output of these products. The US wasn’t a major exporter nor importer of these products with just 11% of world exports and 15% of world imports. Its share of imports of minerals and crude totalled 25%. Over the next twenty five years – to today – there has been a relatively rapid role reversal between the United States, Japan and China. China’s share of world traded goods production increased to 21%, its share of exports to the world to 12%, but for the primary products industry it has grown from barely a player in imports in 1990 (less than 1%) to taking 15% of total imports of crude, coal and ores. Thus when China sneezes the rest of the world’s mineral suppliers in rich and poor nations alike will catch 38

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a cold. Why is China, rather than Japan, a special case? The reason involves the massive size of its population. When I started building a world trade model for the maritime transport industry with bilateral trade flows, I did an article (back in the late 1980s), with a graphical comparison between what the per capita consumption of China was for various products compared to the United States, then I made another graph showing what China’s demand for worldwide products, including minerals, would be, if it were to emulate the consumption of minerals and manufactures of the United States. Not surprisingly, the Chinese column chart went off the page— total role reversal. My question then, and the question of today, is whether there is enough copper, aluminium, oil, coal, iron ore, etc. in the world to allow China, India and half a dozen other emerging markets to reach the consumption patterns of countries like the United States, Japan and Western Europe. I believe Chinese economists have duplicated that graph. It is the reason they know that the country that controls resources will be the country that wins the global sweepstakes. Unlike most Western mineral suppliers, cash poor, capital starved, run by chief financial officers rather than entrepreneurs with long range plans, the Chinese, like the Japanese before them, understand the importance of developing new resources and controlling these resources to support internal rather than global needs. So I imagine that when the price of oil and iron ore and copper falls, the Chinese companies, backed by low

China & the world

Dr David Blond explains why Chinaâ&#x20AC;&#x2122;s long term economic approach will continue to be successful cost loans, will buy up Western interests and develop new mines, because their time horizon is well beyond the present period. I published an economic thriller last year (The Phoenix Year,

The country that controls resources will be the country that wins the global sweepstakes Wattle Publishing, 2014). In this novel there was a sudden collapse of the Chinese property market combined with a rapid slowdown in the Chinese economy as stock markets fell sharply over the build-up period in the novel between 2015 to the end point of the first part of the trilogy in 2016. Crude prices fall to $30 (from a high when it was published of around $100) with raw material prices collapsing as well, inducing a collapse in Asian countries dependent upon Chinese, mineral suppliers in Africa and Latin America, and a global growth recession. When asked recently about how I came to this conclusion when the first draft of this version of the novel was first written

(around 1987), I referenced the Japanese example of boom and bust, combined with the knowledge that what goes up must come down. But China may be a special case which defies economic growth gravity for a long, long time. The long term economic forecast for China is for growth to slow from todayâ&#x20AC;&#x2122;s 7% to 4% after 2020. I think we may find that this slow down, projected for so long and by so many market economists, may prove to be based as much on hubris as facts about Chinaâ&#x20AC;&#x2122;s economic system. To be a great power, China must offer its people the benefits that come from being first in the gate, like the West, so they will find a way to grow. The seeds of that continued positive growth were laid in the massive pollution that came during this rush towards greatness; if they are smart they will power the next spurt of growth by finding a way to limit and reverse industrial pollution, economise on the use of raw materials and find new technologies that allow more of their people to improve their standard of living without destroying the world eco-system to get there.

Dr. David L Blond is President of Quantitative Economic Research International WORLD MINING MAGAZINE www.ogsmag.com

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Vale: Transforming natural resources into prosperity and sustainable development Founded in Brazil in 1942, Vale is the worldâ&#x20AC;&#x2122;s second largest mining company, with a presence in 35 countries on five continents through its mining operations, mineral surveying and commercial offices. Underground area at Sudbury Operations. www.ogsmag.com

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Companhia Vale do Rio Doce (Freshwater River Valley Company) or Vale, as we know it now, was founded as a public company by the Brazilian Federal Government on 1 June 1942. Privatised in 1997, it was still known as CVRD until 2007. Its origins can be traced back to the turn of the 20th century, however, when the Itabira Iron Ore Company was authorized to prospect for iron in the Minas Gerais region. The company was the successor to the Brazilian Hematite Syndicate and over the course of its existence it witnessed many political upheavals, rises and falls in the international economy, changes in legislation and, above all, nationalist movements. The workers of Itabira created their own dialect, guinlagem de camaco (or “monkey language”), to avoid being understood by their foreign bosses. As time went by, the Itabira Iron Ore Co., which grew up around the Vitória-Minas Railroad, acquired the profile of the men who ran it. Percival Farquhar – who is said to have kept the first dollar that he earned, mounted in a frame next to his bed, beside a photograph of his parents – was one of them. Farquhar was a legendary figure, someone whose life seems like something from a work of fiction. Some consider him a capitalist genius, others, an opportunist.

“Percival Farquhar acquired the Itabira Iron Ore Co. in 1919” Born in the city of York, Pennsylvania, in the United States, he came to Brazil after working on railroad construction ventures in Latin America and he acquired the Itabira Iron Ore Co. in 1919. The paths taken by the company – especially those that, using the railroad, would transport ore to the sea and to fortune – were always intimately connected with Farquhar’s trajectory and personality. The businessman was the main protagonist in hard political battles and was the target of nationalist campaigns concerning the right to extract ore in Brazil. 42

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Cauê Itabiritos Project, in the state of Minas Gerais, Brazil: Aerial view of the plant and mine pit .

Vale’s primary business is mining, but to support its growth and for the distribution of its products, Vale has built a large logistics network, comprising railroads and ports which distribute minerals and other products all over the world. Vale also operates its own network of hydroelectric plants and natural gas plants, for its own consumption and to achieve energy efficiency.

Iron ore

Vale is the world’s largest producer of iron ore and pellets, raw materials essential to the manufacture of steel. Iron ore is found in nature in the form of rocks, mixed with other elements. By means of various industrial processes incorporating cutting-edge technology, iron ore is processed and then sold on to steel companies. The iron ore produced by Vale can be found in houses, cars and

Vale

household appliances. Vale is investing in technological innovations and developing initiatives to prevent and minimize the environmental impacts that mining causes.

“Vale’s Carajás Mine holds 7.2 billion metric tons of iron ore in proven and probable reserves” The company’s aim is to set the benchmark in the sustainable management and use of natural resources. Vale’s Carajás Mine is located in the state of Para in

northern Brazil. Fully owned by Vale, the mine holds 7.2 billion metric tons of iron ore in proven and probable reserves. The Carajás region boasts the richest reserves and concentrations of iron ore anywhere in the world and was discovered entirely by accident in the late 1960s when a US Steel helicopter was forced to land on a hill in the area to refuel. Surveyors on board noted the baron state of the hill and subsequently discovered that the iron content was as high as 66 per cent. Other mineral deposits were discovered later; Carajás is rich not only in iron ore but also ores for manganese, copper, tin, aluminium and even gold. Over the years improvements to safety, reliability and productivity at Carajás have been achieved by implementing an automation project at Vale’s laboratories in Carajás and São Luís. The results of many laboratory processes can now be compiled automatically, thanks to the WORLD MINING MAGAZINE www.ogsmag.com

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“Vale has nickel mines in Brazil, Canada, Indonesia and New Caledonia, as well as fully owned and joint venture refineries in China, South Korea, Japan, the UK and Taiwan”

internal development of a software program that acquires data directly from equipment, such as weighing scales. “By replacing manual with automatic recording, Vale has eliminated possible errors and improved the reliability of results. Previously, an operator would note down iron ore weights on a piece of paper before entering the data into the computer. Now the process is much faster,” explained specialist technician Rodolfo Pizol, who developed the software in partnership with analyst Sandra Dutra. As well as avoiding rework, the program automatically sends data to the system, without the intervention of the person doing the activity. The benefits of this automation include a reduction in total testing time, increased reliability in the computation of results, and faster decision making. The software can be used across Vale’s whole operations base. 46

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Nickel

Vale is also the world’s largest producer of nickel, one of the most versatile metals in existence. Hard and malleable, nickel resists corrosion and maintains its mechanical and physical properties even when subjected to extreme temperatures. Vale mines high-quality nickel, which is especially valued for its applications in plating and batteries. It gives bathroom taps and shower heads their bright metallic finish. It’s in everything from coins to cars. It can also be found in your mobile phone and the rechargeable batteries that power it. Vale’s nickel mining and metals division is headquartered in Toronto, Canada. It produces nickel, copper, cobalt, platinum, rhodium, ruthenium, iridium, gold and silver. Vale has nickel mines and operations in Brazil, Canada, Indonesia, and New Caledonia, as well as fully owned and

Vale

Copper Copper has been used by civilizations since 8000 BC and is regarded as one of the most important metals used by modern industry. Prized for its ability to conduct heat and electricity, it is an element that helps make the world the way we know it, and it is a key focus of Vale’s investment. Malleable, resistant to corrosion and high temperatures, recyclable and with the best electrical and thermal conductivity of any commercial metal, copper is highly valued for its application in power transmission and generation, building wiring as well as practically all electronic equipment, including mobile phones and television sets.

Voisey’s Bay mine and concentrator, Newfoundland and Labrador

joint venture refineries in China, South Korea, Japan, the UK and Taiwan. In June this year one of these, Vale Nickel (Dalian) Co., Ltd. (VND), located in the commercial and industrial city of Dalian in China, was awarded the accolade of “Demonstration Company on Occupational Health” by the Administration Bureau of Safety Working of Jinzhou New District, China. Vale is one of eight companies selected from thousands of companies in the district. In order to promote occupational health and protect the health rights and interests of workers, Dalian launched a two-year campaign across the city in 2013. During the campaign, each district of the city was asked to grade companies in its area across 10 benchmarks. The highest mark is 100 points and only those companies that achieved more than 90 points would be awarded as a

“Demonstration Company”. This award, combined with the company’s years of expertise in sustainability, show that VND is highly committed to employees’ health and safety. In line with Vale’s global strategy, VND carries out direct communication campaigns every year to continuously enhance employees’ awareness of health and safety.

Coal

As a substance essential for the transformation of iron ore into steel, Vale’s mined coal is primarily used in the steel industry as well as for the generation of electricity. The company has operations and projects in Mozambique and Australia, countries that are expected to grow the most in terms of the global coal supply. It is also participating in two joint ventures in China. Some of the world’s richest coal deposits are located at WORLD MINING MAGAZINE www.ogsmag.com

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“ MUCKPILE.”

GET THE MAN OFF THE

The Narrow Fletcher Model N3114-AD/E Roof Bolter is designed for bolting in stope conditions as narrow as 6.5’ (2 m). This machine finally presents narrow stope mines with the opportunity to replace jacklegs and “get the man off of the muckpile.” Drilling, resin insertion, and bolting is all done from the canopy protected operator’s basket that is mounted on a boom that lifts and swings to allow multiple installations. Basket swing allows parallel offset and maneuvering around tight corners. Man-in-basket design allows maximum versatility in bolt type and length. Designed to allow access to tram compartment and drill platform from both sides of machine.  Heavy-duty system assures long life  Maximum reliability and productivity  Diesel tram/electric drill with inch tram capability from bolting platform

www.jhfletcher.com - 304.525.7811 - sales@jhfletcher.com - www.facebook.com/JHFletcherMiningEquipment J.H. Fletcher & Co. cannot anticipate every mine hazard that may develop during use of these products. Follow your mine plan and/or roof control plan prior to use of the product. Proper use, www.ogsmag.com 57 maintenance and continued use of (OEM) original equipment parts will be essential for maximum operating results. 2014 J.H. Fletcher & Co. All Rights reserved.

“The Moatize Mine in the Tete Province of Mozambique has been producing coal since July 2011”

Moatize in the Tete Province of Mozambique. Vale has held the concession to explore coal deposits in this region since 2004 and the Moatize Mine has been producing coal since July 2011. It represents Vale’s biggest investment within the segment. One of the biggest challenges in Moatize is logistics. Vale has invested in two African railroads, Sena and Nacala Corridor, which connect to two ports in order to transport the mine’s output efficiently. The Nacala Corridor project connects the Moatize Coal Mine to the Port of Nacala, with a transport capacity of 18 million metric tonnes of coal per year. This line includes a 237-kilometre stretch that passes through Malawi, Mozambique’s neighboring country, and is 912 kilometres long. The 575-kilometre Sena railroad connects Moatize to the Port of Beira, in the south of Mozambique, with a transport capacity of 6 million metric 50

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tonnes of coal per year. With a targeted production volume of 12 Mtpa of hard export coking coal and 2 Mtpa of export thermal coal, the mine is starting to bring much needed economic growth to the region. The planned upgrade of rail and port facilities will also bring broader economic benefits to the region. In Australia, Vale has two major current operations. The first is the Carborough Downs underground mine in central Queensland in the Bowen Basin. Vale has been operator of the mine since 2007 when the company entered the Australian market and acquired assets from AMCI Holdings. The mine produces predominantly hard and semi-hard coking coal with pulverized coal injection (PCI) as a secondary product. The site is expected to continue producing until 2019, with further potential for the extension of the mine life beyond that timeframe.

Vale Employees watch the stockyard at Moatize Coal Mine

Manganese and ferroalloys Manganese, the fourth most widely used metal in the world, is present in the composition of many everyday objects and Vale is a leading producer of manganese, an essential steelmaking input, and also of ferroalloys (combinations of iron and one or more chemical elements), such as manganese itself. Nearly 90% of manganese output is used in the steel industry, but its applications also include the manufacture of fertilizers, animal food and cars.

“The Eagle Downs Coal Mine in Queensland is expected to produce an average of 4.5 mtpa of coking coal in the first ten years of full production”

The second is The Isaac Plains open cut coal mine, a 50/50 joint venture between Vale and Sumitomo. Situated approximately seven kilometres from Moranbah in Queensland’s coal rich Bowen Basin, the mine is managed by Isaac Plains Coal Management. The current mining lease, covering an area of more than 2,900 hectares, was granted in December 2005 with first coal mined, processed and railed for export in 2006. The operation’s products include pulverized coal injection (PCI), thermal coal and coking coal. With proven resources of 44Mt and a further 22Mt of measured and indicated resources, Isaac Plains has an expected mine life of more than 10 years. Investment in the coal industry is an important part of Vale’s broader growth strategy and the Australian coal business has an important role to play in delivering the WORLD MINING MAGAZINE www.ogsmag.com

goals of the global business. Vale has a strong pipeline of greenfield exploration projects in the Bowen and Galilee Basins, and a number of pipeline projects on the cards in Queensland. Key projects for Vale Coal Australia include the Belvedere Coal Project, located near Moura and approximately 175 kilometres from the Port of Gladstone. The project, planned to be an underground longwall operation, has immense potential, offering a large, good quality, metallurgical coal resource. Vale’s second key project is the Eagle Downs Coking Coal Project, in which Vale has a 50% stake. Eagle Downs is an approved underground longwall coal mine project, currently under construction, located approximately 20 kilometres southeast of Moranbah in Queensland’s Bowen Basin. It’s estimated that when completed the Eagle Downs Coal Mine will produce an 52

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average of 4.5 mtpa of coking coal in the first ten years of full production from one underground longwall (2017 – 2026).

Partnerships

Besides a wholly owned operational portfolio that spans the globe, Vale has a strong history of international partnership. This year it celebrates a link with Japan that has developed over more than sixty years. In 1953, a small batch of ore from Vale was shipped to Japan via the Port of Santos, in São Paulo state, so that potential buyers could test the product. In sending this load to Japan, Vale began to write another page in its history. Two years later, the company began regular sales of iron ore to Japan. The first shipment of nine thousand tons was the beginning of a successful

Vale

Fertilizers Global demand for food is increasing, while the space available on the planet to grow crops is decreasing. To tackle this issue Vale is one of many businesses producing fertilizers - substances that raise crop yields and enable larger harvests. The relationship between this sector and mining is simple: two of the main inputs for making fertilizers – potash and phosphates – are extracted from the ground through mining processes.

Refinery façade at Vale Nickel Dalian, China, a joint venture of Vale and Sunhu Chemicals

relationship. Since then, more than 1.2 billion tons of iron ore have already been sold to Japan.

“The Isaac Plains open cut coal mine in Queensland’s Bowen Basin is a 50/50 joint venture between Vale and Sumitomo”

into joint ventures, investment in ferrous minerals, coal, logistics, steel, fertilizers and base metals. This 60-year relationship has changed the pattern of global navigation, has helped to lead Japan toward being an impressive global economic power and has transformed Brazil into a major exporter of raw materials in the world. Japan, China, the African continent – all are benefitting from the expertise that Vale brings to the world of mining. Vale’s mission – to transform mineral resources into prosperity and sustainable action, guides all of its actions. The company belief is that it shares a responsibility to seek sustainable development wherever it operates by responsibly managing the effects of its activities.

The partnership has intensified so much that it has gone well beyond the expansion of trade flows, translating WORLD MINING MAGAZINE www.ogsmag.com

WORLD MINING MAGAZINE

MEDIA PACK 2015-2016 About us: Our reader numbers globally (for both our printed and electronic magazine version: Argentina 2890 Australia 8495 Brazil 3416 Cameroon 905 Canada 3860 Chile 2095 China 4265 Denmark 802 Egypt 1162 Finland 556 France 794 Germany 905 Guinea 1460 Iceland 302 India 1005 Indonesia 202 Italy 306 Japan 815 Kazakstan 3269 Mexico 4906 Netherlands 204 New Zealand 1812 Norway 801 Peru 1309 Poland 952 Romania 1901 Russia 2805 Saudi Arabia 3516 South Africa 9650 Spain 1805 Sweden 250 UAE 2665 UK 1065 Ukraine 690 USA 8190 Vietnam 707 Zimbabwe 2917 Other/unspecified 9401 TOTAL 93050

World Mining Magazine is produced by Worldwide Business Media Limited. It is published monthly and distributed in hardcopy print to over 23,750 readers and over 69,000 in electronic format globally. Our total readership is just over 93,000 and grows daily. As well as direct distribution to our readers, we also offer customers the opportunity to have the magazine distributed to destinations of their choice, increasing their chances of response and making sure their advertising material is seen by the right people. World Mining Magazine is the media partner and supporter of many exhibitions and conferences worldwide and additional copies of the magazine are printed and distributed at these events. Worldwide Business Media Limited was founded in 2009 and produces monthly magazines for the mining, oil, gas and shipping industries. We hope this media pack offers the information you need and if you require more please contact us.

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Put your company on the front cover and become the lead story, reaching out to our 93,000 readers across the globe

Previous companies who have taken this option include BHP Billiton, Rio Tinto, Anglo American, Barrick Gold and many more companies have booked in for our future issues. This complete package includes: Front Page (dedicated to your company) 12-18 Page Lead/ Main Editorial Full Page Advertisement All editorial and advertisement design Total price: ÂŁ14,500 (Discounted options are availableplease contact us for more information) This package is available for all our editions including our editions distributed at our supporting and partnering exhibitions/conferences.

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All companies who take this option will also be given magazines to distribute on their own behalf. Previous customers have found this particularly useful for exhibitions and conferences and when new products have been developed.

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World Mining Magazine offers its customers the opportunity to feature as the front cover and the main/ lead article of the magazine. This gives companies the opportunity to discuss their operations and developments in more depth and reach our large global audience of over 93,000 at a fraction of the cost it would take to publish sole brochures.

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