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ISSUE 5 | www.bus-ex.com

CANADIAN FOCUS: micromine: xstrata technology:

The largest investment project in the history of Madagascar

special report:

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Editor’s lEttEr in touch EDITORIAL

Martin Ashcroft eDItOr IN ChIeF mashcroft@bus-ex.com Will Daynes eDItOr wdaynes@bus-ex.com

DESIGN

Matt Johnson Art DIreCtOr mjohnson@bus-ex.com Louise Culling PrODUCtION DeSIgNer lculling@bus-ex.com

BUSINESS

Richard Turner DIreCtOr OF SAleS rturner@bus-ex.com Vince Kielty DIreCtOr OF eDItOrIAl reSeArCh vkielty@bus-ex.com Sharon Rooke ADmINIStrAtION & OPerAtIONS srooke@bus-ex.com Matt Day heAD OF teChNOlOgy mday@bus-ex.com Andy Turner ChIeF exeCUtIve aturner@bus-ex.com

SUBScRIpTIONS

info@bus-ex.com

ExclusivE!

I

am delighted to present this latest magazine dedicated to the mining and minerals sector, which leads with a comprehensive and exclusive guide to the Ambatovy nickel/cobalt mining project in Madagascar; at US$5.5 billion-plus, it is the largest investment project in the country’s history.

As the project now enters the operational phase, we bring you the definitive inside story, combining a strategic view of the project with unprecedented details of individual aspects, including local community initiatives, employment opportunities, archaeological discoveries and specific programmes for the preservation and conservation of Madagascar’s unique ecosystem.

We also feature a special focus on Canada, including exclusive interviews with the Ontario Mining Association and the Coal Association of Canada, plus some of the leading mine operators and also Westshore Terminals, through which much of their output is exported.

We also look at a selection of mines in Africa and Europe, as well as highlighting some of the essential mining services providers, from bulk handling to tire pressure monitoring, software and dust control.

Infinity Business Media Ltd Suite 22, St Francis House, Queens Road, Norwich, NR1 3PN Tel: +44 (0) 203 137 7100 Fax: +44 (0) 1603 666466

www.bus-ex.com © Copyright 2012 Infinity Business Media Ltd

M.Ashcroft Martin Ashcroft eDItOr-IN-ChIeF mashcroft@bus-ex.com

BE AFRICA | 3

spEcial rEport: ambatovy

26

12 the project fact guide

Facts & figures relating to the Ambatovy mining project in Madagascar, from stakeholder involvement to community commitment.

20 executive insight

20 48

Marc Plamondon, president of the Ambatovy project, talks about reputation, motivation, and Jimi Hendrix.

26 a wealth of opportunities

Ambatovy has invested US$5.5 billion into its major nickel/cobalt mining project on the island of Madagascar, bringing with it jobs, economic benefits and infrastructure improvements.

48 local opportunities

The Ambatovy project is committed to providing jobs for local people, contracts for local companies, and training them for a sustainable future.

4 | BE mInIng & mInERAls

contEnts

74

74 an engaging approach

Ambatovy commits to operating sustainably throughout the life of the project and beyond, for the benefit of the country and its communities.

98 respecting cultural heritage J.A. Rakotoarisoa and Erick Randrianasolo discuss the discoveries made by Ambatovy’s archaeological programme.

104 the environmental imperative

98

The entire Ambatovy project is located in a biodiversity hotspot in Madagascar, so the minimisation of its impact and the restoration of the mine site are interlinked.

104 BE mInIng & mInERAls | 5

businEss showcasE

124 140

canadian focus 124 ontario Mining association

all for one & one for all

Presenting a collective face on issues affecting Ontario’s mining industry.

132 coal association of canada campaigning for coal

Changes in the regulatory environment which could see more coal mines looking to export.

140 coalspur

a remarkable vista

Over the next three years, Coalspur will start to bring North America’s potentially largest export thermal coal mine into production.

150 cardero coal

Quiet coal on peace river

150 6 | BE mInIng & mInERAls

Since acquiring the Carbon Creek asset in northeastern British Columbia, the focus is on being an owneroperated coal producer.

contEnts 158 Walter energy irreplaceable

Dan Cartwright, president of Canadian operations, talks about developing reserves of a material that society can neither do without, nor replace.

168 Westshore terMinals canada’s coal cornucopia

The largest coal terminal in Canada handles more than the combined capacity of other ports on the North American west coast.

158 188

178 treasury Metals all systems go

CEO Martin Walter talks about the advantages of the Goliath project in Ontario and the progress being made towards production.

188 orbite aluMinae

the impossible, made possible

Revolutionising the way in which alumina and other high value materials are recovered from the earth.

178

BE mInIng & mInERAls | 7

businEss showcasE mining companies 196 allana potash

the best of all worlds

Richard Kelertas explains why the Dallol Project in Ethiopia is perfectly placed to satisfy the growing demand for potash.

206 oKd

solid as a rock

196

216

Operations at one of Europe’s largest coal producers are underpinned by strong customer relationships, top-class training, and solid revenues and reserves.

216 KuduMane Manganese resources keeping it simple

Developing a mining operation in one of South Africa’s poorest regions, and keeping the local community at the core.

206

8 | BE mInIng & mInERAls

contEnts

244 mining services 226 advantage pressurepro blowing the whistle on leaks

226

Phillip Zaroor, founder and CEO, talks about the world’s first commercially available external tire pressure monitoring system (TPMS).

234 Martin engineering coMpany leading with service

Using MINExpo International 2012 to introduce a brand of electric vibrators and EVO heavy duty products for bulk handling applications.

244 MicroMine

a single source of truth

234

A software suite that draws an accurate picture to support sustainable business and sound investment decisions.

BE mInIng & mInERAls | 9

businEss showcasE

256

256 Xstrata technology a slow grind

Mineral processing manager Greg Rasmussen talks about the introduction of new mining technology to the industry.

264 dorce holding

building a better world

A global business in every sense of the word, DORCE plans to build upon all that it has achieved to date.

272 atMos global

a journey to inspire and discover excellence

272

ATMOS Global’s new VerifiedDust platform is a journey in the pursuit and discovery of environmental excellence, says its global president and CEO.

264

10 | BE mInIng & mInERAls

contEnts

events: special preview 286 Mines and Money 2012

the next generation of mining projects

The 10th annual Mines and Money London Conference and Exhibition is expected to be the biggest yet.

290

mining directory 288 drytech international the optimum dryer

An extensive in-house technology base covering industries from mining through chemical to food.

290 fero group

consolidating purchases

The largest exporter of ground support in Western Australia, and are now expanding into Africa.

292 hein, lehMann canada flip-flow, way to go

Providing solutions, design, assembly, and technical support for Liwell速 Flip-Flow Screening Machines.

294 innovative Magnetic technologies custom manufacture

292

IMT designs, manufactures and markets innovative magnetic equipment for industrial markets worldwide.

BE mInIng & mInERAls | 11

A comprehensive guide to the largest investment project in the history of Madagascar

spEcial rEport: ambatovy

thE pRojECt 40% 27.5% 27.5% 5%

lenders The project has required a great deal of financial traction to get off the ground.

Ambatovy has received US$2.1 billion in debt financing from 14 lenders. This consortium includes government-sponsored export credit agencies, international development banks,

14 | spECIAl REpoRt

shareholders Ambatovy is a US$5.5 billion enterprise held by four shareholders: Sherritt International Corporation, the project’s operator, which owns 40 percent of the shares; Sumitomo Corporation and Korea Resources Corporation, each holding 27.5 percent stakes; and SNC-Lavalin Incorporated, the project’s engineering contractor, which owns 5 percent.

and commercial banks from around the world. Ambatovy’s financing arrangement was named the “Europe, Middle-East and Africa Mining Deal of the Year” in 2007 by Project Finance International and represents the largest-ever project financing in sub-Saharan Africa.

AmbAtovy

t fAcT GUIDE standards Under the terms of the lending agreement, Ambatovy is required to adhere to stringent national and international standards for environmental management, social engagement, and other business practices.

These standards include the Equator Principles and the World Bank Group’s International Finance Corporation Performance Standards. Ambatovy is audited several times per year by thirdparty experts who report to the lenders.

the mine Ambatovy’s mine site is located near Moramanga, a city 80 kilometres east of Madagascar’s capital city, Antananarivo.

The mine is located in the central highlands of Madagascar and is connected by a 220 kilometre underground pipeline to a processing plant just outside Toamasina, the country’s main port city.

Nearly 22,000 lengths of 60 centimetre pipe were welded together to construct the pipeline, which is able to carry over 800 tonnes of slurry per hour.

When fully operational, Ambatovy will have the capacity to produce 60,000 tonnes of finished nickel, 5,600 tonnes of finished cobalt, and 210,000 tonnes of ammonium sulphate fertiliser annually over its 30 year life.

spECIAl REpoRt | 15

AmbAtovy community commitment The operational phase is expected to provide long-term employment for 6,000 people, with 2,500 directly employed by Ambatovy and 3,500 by the contractors.

In 2008, Ambatovy’s Local Resources Development Initiative evolved into ALBI, the Ambatovy Local Business Initiative. ALBI was created to fulfil Ambatovy’s commitment to a ‘buy locally, hire locally’ policy.

Ambatovy had signed more than $1.2 billion in local contracts by the end of 2010. In 2011 alone, Ambatovy spent $220 million on local purchases. More than 500 SMMEs across 54 sectors have been awarded purchase orders by Ambatovy; meanwhile, ALBI has more than 2,000 local businesses registered in a database used by Ambatovy and its sub-contractors.

The Business Training Centre, located in Toamasina, is a collaborative effort between Ambatovy, the International Finance Corporation (IFC) and Training Management Africa (TMA).

In 2010 Ambatovy began a collaboration with UNICEF to finance the Contract for School Success programme (Contrat Programme de la Réussite Scolaire, or CPRS).

heritage Ambatovy’s archaeological team has discovered 96 key archaeological sites and collected more than 4,500 artefacts.

Between 2005 and 2010 in areas between Moramanga and Toamasina the team found 4,207 clay potteries and 192 imported ceramics. Among the 262 cultural heritage sites catalogued were 126 archaeological sites, remains of 22 ancient villages, 23 burial sites, 55 sacred sites and 36 sacred stones, the oldest of which date back to the 13th century and the most recent to the 19th century.

spECIAl REpoRt | 17

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SA

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AmbAtovy biodiversity Management plans have been produced in respect of water, air, noise, soil, waste, flora, fauna and aquatic resources, and are designed to preserve the environment and advance scientific knowledge.

Ambatovy works in close collaboration with the ONE (Office National pour l’Environnement), which must approve all environmental plans before implementation.

Since 2007, a total of 140 lemurs belonging to seven species living in and around the cleared forest and refuge areas have been equipped with radio collars. Since 2009, a total of 35 new-born lemurs have been observed within Ambatovy’s conservation areas. Thirty three species of mammals other than lemurs are also monitored by the project.

Ambatovy’s amphibian and reptile management programme carries out preclearance species inventories and salvages

live animals to conservation forest refuge areas. Between 2007 and 2010 the program salvaged more than 14,000 reptiles (54 species) and amphibians (55 species) and it will continue until forest clearing operations have been completed.

A specific conservation programme has been developed for the endangered frog golden mantella (mantella aurantiaca).

Ambatovy considers mantella aurantiaca as a flagship species for its conservation efforts.

With the help of the Missouri Botanical Garden, Ambatovy has identified plant species known to exist only within the mine footprint and one or two other sites in Madagascar. These plants are categorized as Species of Concern (SOC). From an initial list of 173 SOCs, the number still requiring special salvaging has been reduced to eight species and is expected to descend to zero as the offsite surveys continue.

spECIAl REpoRt | 19

ExEcutivE insi ht Nobody’s perfect. What quality or ability do you wish you had?

There are many. However, there are strengths and weaknesses for everyone, no matter how experienced or successful. For this reason alone, a collaborative approach among a team of people to tackle various managerial issues is very effective. Each person on a team brings a unique skill set and perspective that complements the other team members, leading to a collective result that is superior to what can be accomplished individually.

What is the best business book you have ever read, and why?

Good to Great: Why Some Companies Make The Leap – And Others Don’t by James Collins, which provides some good insight into some of the common practices of great companies. Also, The Goal: A Process of Ongoing Improvement

by Eliyahu Goldratt, which is told in fictional format but creatively illustrates debottlenecking to maximise plant throughput and profitability.

president of the ambatovy project

Someone you would most like to have met, living or dead, and why?

Jimi Hendrix, who revolutionised electric guitar playing in just a few years, and to this day is still considered one of the best guitar players of all time.

spECIAl REpoRt | 21

ExEcutivE insi ht What do you consider to be your major achievement (in life or business)?

I don’t have one specific achievement that stands out above all others. I have had the good fortune of working with some outstanding people throughout my career, and when a team of people is motivated and given the appropriate resources to succeed, great things can happen.

Who or what do you think is overrated?

Communication by email. This is often relied upon by employees, and although in many cases it is more efficient to communicate by email for large audiences, for sensitive or controversial discussions, it is much better to have a conversation face to face.

What mistakes have you made (professional or otherwise), and what did you learn from them?

There have been many mistakes, but this is how you grow and develop, and eventually move forward. The biggest mistake is indecisiveness, as this prevents you from learning in order to improve yourself and your business.

Which one piece of wisdom would you pass on to your successor?

Your reputation is one of your most important assets, that takes a long time to build but can be destroyed in a moment.

Always strive to keep your reputation intact, by maintaining your ethics, principles and

“the biggest mistAke is indecisiveness, As this prevents you from leArning� spECIAl REpoRt | 23

ArmCoil’s mission is to enter into partnerships where it can add value to, supply, manage, maintain and repair electric rotating machines and transformers.

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ExEcutivE insi ht

standards in all circumstances. At times this may be very difficult, but in the long run, it will serve you well.

Who has been your inspiration professionally?

I have been inspired and encouraged by numerous leaders within Sherritt over the years, who have exemplified work ethic, creativity, and tenacity to achieve success for our company.

How would you like to be remembered after your retirement?

Retirement is a long way off… hopefully I will be viewed as a leader with integrity

and principle, who collaborated effectively with partners, colleagues and senior management teams to achieve long-term success for our company.

Do you have a quote or motto you live (or work) by?

Wherever possible, use the “KISS” Principle: Keep It Simple, Stupid.

Mark plamondon has been president of ambatovy since March 2012. before coming to Madagascar he was in charge of sherritt coal, the largest coal producer in canada. www.ambatovy.com

spECIAl REpoRt | 25

A wealth of opportunities

With a US$5.5 billion investment, Ambatovy brings jobs, economic benefits and infrastructure improvements to the island of Madagascar written by: Becky Done & Martin Ashcroft research by: Robert Hodgson

AmbAtovy

A

n island republic off Africa’s south-east coast, Madagascar is famously home to some of the world’s most fascinating flora and fauna. Perhaps less well-known, however, is that it is also home to the largest lateritic finished nickel and cobalt operation in the world. First identified in 1911, the development of the deposit in the east of the country will create jobs for the local population and make a huge contribution to the island’s economy.

Ambatovy’s capital investment in the mining project is approximately US$5.5 billion, representing the largest ever foreign investment in Madagascar, and one of the biggest in sub-Saharan Africa and the Indian Ocean region. Working capital and financing commitments are increasing the level of investment every day.

The mine is located in the central highlands of Madagascar and is connected by a 220 kilometre underground pipeline to a processing plant just outside Toamasina, the country’s main port city.

Ambatovy began as a ‘greenfield’ project, with barely any infrastructure in place before construction began. Unlike some other mining operations in Africa, Ambatovy did not intend to extract and export raw ore, but planned to refine its nickel and cobalt in Madagascar.

Consequently, its infrastructure needs substantial power generation, upgrades to roads and railways, port expansion and the construction of auxiliary facilities for processing and refining.

spECIAl REpoRt | 27

AMBATOVY

BORÉALIS Boréalis is the world leader in terms of corporate social responsibility for companies operating in the mining and oil & gas industries.

The company offers specialised software and services that allow organisations to attain their business objectives while meeting sustainability commitments, whether social or environmental.

The Boréalis offer follows a unique approach, combining software with consulting and integration services.

Boréalis employs over 160 involved employees, installed in numerous locations to work on the company’s various projects over five continents. Its head office is located in Canada, and other offices are located in Brisbane, Australia, and Ghana.

In 2010, Boréalis began collaborating with Sherritt on the Ambatovy mining project in Madagascar and implemented a web-based information management system (IMS) to mitigate the social and environmental impacts of the project. The building of various infrastructures, such as a pipeline, roads, the mine itself and the treatment plant required displacing the local population, as well as animal and vegetal species—some of which were native exclusively to Madagascar.

With the implementation of the BoréalisIMS, five core aspects were covered: 1. Boréalis helped the field Community Relations teams manage their relationship with affected people by encouraging a transparent engagement process, identifying key stakeholders and raising potential issues.

2. Boréalis supported Ambatovy Local Business Initiative (ALBI) in order to facilitate the local small businesses in assessing their actual capacity, identifying potential ameliorations and improving their skills and knowledge.

3. Since the project involved the involuntary resettlement of citizens, Boréalis helped

30 | spECIAl REpoRt

manage the displacement and compensation process for the surrounding communities.

4. Considering the many animal and vegetal species endemic to Madagascar, a central repository and monitoring system were implemented. This helped identify endangered and local species, inventory displaced species and track their evolution in a new habitat.

5. A monitoring performance module was also implemented to allow constant project supervision in order to ensure that it complied with regulations, whether mandatory by law—for instance, by lenders such as the IFC or by the Madagascar government—or to fulfill corporate initiatives.

Ambatovy’s management team is currently considering deploying the Boréalis mobile application, which will ease stakeholder field data collection and enable teams to remotely collect information even when no internet connection is available.

Jean-Yves Saint-Pierre, supervisor SCM/ ALBI, Ambatovy Project, Sherritt International, said: “The Boréalis system is an important initiative that enables our department (Supply Change Management/Ambatovy Local Business Initiative) to obtain professional lists from companies in all fields and allows them to respond rapidly to the department’s needs. The Boréalis system allows us to perform audits of these businesses in a very professional manner and above all, to compile corporate information, therefore making it easier to follow these businesses and assess their training needs. We would also like to mention the tremendous support that we have received from the Boréalis team throughout the past year.” www.boreal-is.com

AUGUST 2012 | 1

AmbAtovy

Maintenance pal 1

Ambatovy has now entered the operational Ambatovy’s mine site is located near phase, and when fully operational, it will Moramanga, a city 80 kilometres east of have the capacity to produce 60,000 Madagascar’s capital city, Antananarivo. tonnes of finished nickel, The ore body consists 5,600 tonnes of finished of two large deposits approx imately t hree cobalt, and 210,000 tonnes kilometres apart (the of ammonium sulphate fertiliser annually over its Ambatovy Deposit and the 30 year life. This will place Analamay Deposit). The nickel among Madagascar’s laterite ore is combined with most important exports, water to produce a slurry, which until now have relied which is then pumped into amount of slurried ore upon textiles, fish, and its the pipeline linking the carried per hour famous vanilla. mine to the plant site.

800

tONNeS

spECIAl REpoRt | 31

The Power of One

TM

Cummins Power Systems.

We provide your power solution.

Cummins South Africa (Pty) Ltd. is a company-owned distributor providing power generation systems, components and services in standby, prime, as well as auxiliary power to meet the needs of a diversified customer base.

The company has a service operation network of branches, subsidiary companies and independent dealers throughout the region.

The combined efforts of company owned distributor Cummins South Africa (Pty) Ltd. and Independent Cummins Dealer Madagascar Automobile recently delivered a 30MW prime power plant solution for the Ambatovy processing plant site comprising of thirty Cummins C1250 D2R generator sets,

Contact: StĂŠphane Bruno Madagascar Automobile Mobile: +261 34 05 825 31 E-mail: s.bruno@madauto.mg www.madauto.com

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0.4 kV/11 kV step-up transformers, two 20ft containerised MV cells including DMC300 control systems and MV switchgear, and two 68,000 litre self-bunded bulk fuel tanks.

Products & Services include: Diesel generator sets ranging from 8 kVA to 3300 kVA. PowerCommandÂŽ digital control electronics for system paralleling, remote operation and monitoring. n Automatic transfer switches, from 30 to 4000 amp n Enclosures, silencers and other critical accessories. n Design consulting and project management. n Prime power plant design. n Installation and commissioning services. n Maintenance contracts. n n

The global network of Cummins Power Generation guarantees a face to face relationship wherever our products are operating, providing you with a support plan to meet your needs.

Nicola Morgan-Evens Cummins South Africa (Pty) Ltd. Mobile: +27 71 670 2804 E-mail: nicola.e.morgan-evens@cummins.com www.cumminspower.com

Power Generation

AmbAtovy of 1.5 metres for almost all Nearly 22,000 lengths of its length. of 60 centimetre pipe were welded together to When it emerges from construct the pipeline, the pipeline, the slurry which is able to carry reaches the processing over 800 tonnes of slurry plant and refinery where per hour. The need for it is processed and refined Cummins Power Systems. energy-intensive pumping to produce high-grade We provide your power solution. facilities is minimal, as a nd coba lt ambatovy has now entered the n ickel operational phase briquettes for shipping much of the energy needed to Ambatovy’s customers to move the ore through the pipeline is readily provided by gravity, from the port of Toamasina.

Ambatovy is a partnership of four thanks to the 1,000 metre difference in elevation between the mine and plant site. companies—Sherritt International The pipeline is buried to an average depth Corporation and SNC-Lavalin Inc. from 0.4 kV/11 kV step-up transformers, two 20ft containerised MV cells including DMC300 control systems and MV switchgear, and two 68,000 litre self-bunded bulk fuel tanks.

Cummins South Africa (Pty) Ltd. is a company-owned distributor providing power generation systems, components and services in standby, prime, as well as auxiliary power to meet the needs of a diversified customer base.

The company has a service operation network of branches, subsidiary companies and independent dealers throughout the region.

The combined efforts of company owned distributor Cummins South Africa (Pty) Ltd. and Independent Cummins Dealer Madagascar Automobile recently delivered a 30MW prime power plant solution for the Ambatovy processing plant site comprising of thirty Cummins C1250 D2R generator sets,

Contact: Stéphane Bruno Madagascar Automobile Mobile: +261 34 05 825 31 E-mail: s.bruno@madauto.mg www.madauto.com

CUmmINS

Products & Services include: Diesel generator sets ranging from 8 kVA to 3300 kVA. PowerCommand® digital control electronics for system paralleling, remote operation and monitoring. n Automatic transfer switches, from 30 to 4000 amp n Enclosures, silencers and other critical accessories. n Design consulting and project management. n Prime power plant design. n Installation and commissioning services. n Maintenance contracts. n n

The global network of Cummins Power Generation guarantees a face to face relationship wherever our products are operating, providing you with a support plan to meet your needs.

Nicola Morgan-Evens Cummins South Africa (Pty) Ltd. Mobile: +27 71 670 2804 E-mail: nicola.e.morgan-evens@cummins.com www.cumminspower.com

Power Generation

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cummins is a diverse, community-minded technical leader in the design, manufacture, sales and service of diesel engines, power generation equipment and related components. products include diesel electrical generator sets, engines, alternators, transfer switches and control systems. cummins power generation matches the right generator set and transfer and control technologies with your power needs. With our pre-integrated onsite power system, all the power system components are designed to work together as a whole. that’s the power of one™. cummins power generation meets prime power needs by providing economical and clean prime power for various applications such as industrial or mining installations.

We design and build the solution that meets your needs, including:

• specialized solutions for challenging environments • equipment reliability and durability • options in prime mover technology diesel or natural gas reciprocating engines • system paralleling, remote operation and monitoring using our powercommand® controls technology • rental power for immediate or temporary needs • dependable aftermarket support We demand that everything we do leads to a cleaner, healthier and safer environment. the global network of cummins power generation guarantees a face to face relationship wherever our products are operating, providing you with a support plan to meet your needs. www.cumminspower.com

spECIAl REpoRt | 33

Creative Industrial Solutions

Q.I. Supply is a proud supplier of Industrial products to the Ambatovy Mine and Plant operations. We are a multilingual supplier capable of shipping worldwide.

We take pride in our customer service and are specialists at locating hard to find Industrial products.

For more information visit www.qisupply.com Our product range includes: • Industrial gaskets and seals • Expansion joints and hoses • Industrial valves and controls • Pipe, fittings and fasteners • Industrial MRO products

T: 780-450-1155 | E: al@qisupply.com | www.qisupply.com Creative Industrial Solutions and Services Madacan-SARLU is a proud service provider and supply partner to the Ambatovy Nickel/Cobalt Operations. Our priority is to provide a safe work environment for our employees while exceeding client expectations. If you need more information on our innovative industrial solutions or services visit us at www.madacan.com. Our multilingual team is available anytime to discuss your needs.

T: +261 20533 0335 | E: sales@madacan.com | www.madacan.com

AmbAtovy

processing plant

“An industriAl enterprise of this significAnce And mAgnitude hAs required A greAt deAl of finAnciAl trAction to get off the ground” Canada, Sumitomo Corporation from Japan, and Korea Resources Corporation. Sherritt is the project’s operator, with 40 percent of the shareholding, while SNC-Lavalin is Ambatovy’s engineering contractor, with five percent. Sumitomo and Korea Resources each hold 27.5 percent.

An industrial enterprise of this significance and magnitude has required a great deal of financial traction to get off the ground. Ambatovy has received US$2.1 billion in debt financing from 14 lenders, a consortium that includes government-sponsored export credit

spECIAl REpoRt | 35

AmbAtovy agencies, international development ba n k s, and commercial banks from around the world.

Ambatov y’s financing arrangement was named the Europe, Middle East and Africa Mining Deal of the Year in 2007 by Project Finance International, and represents the largest ever project financing in subSaharan Africa.

The consortium has extremely high accountability standards. As part of Ambatovy’s lending agreement, it is required to adhere to stringent national and

international standards f or env i ron ment a l ma nagement, socia l engagement and other business practices. These standards include the Equator Principles and the World Bank Group’s International Finance Corporation Performance Standards. Ambatovy is skilled workers audited several times a year by third-party experts who report to the lenders.

The transition from construction to operations has been sensitively handled

by Ambatovy, which has voluntarily

mADAgASCAr AUtOmOBIle Madagascar automobile has been founded in Madagascar since 1928. specialized in car sales, after sales, car rental ( budget rent a car) and vehicle fleet management, this long experience has helped the company in developing his presence and competence in the motoring industry in the country. as of today, Madagascar automobile covers a large sector of the market in Madagascar, with its passenger ranges as well as commercial and 4Wd vehicles. relying on the worldwide brands such as nissan, renault , renault trucks , lada , ud trucks, bluebird busses and cummins, our firm has gain its reputation for quality of product, superior driving experience and quality of service. the service department provides a

complete maintenance solution from routing servicing to high precision repairs using the latest technology and diagnosis equipments. clients have complete peaceof-mind after buying a car, knowing that we are 100% committed: we deliver services until full satisfaction. a total of over 210 people are employed by Madagascar automobile and, as part of its social responsibility efforts, the company is committed to training, educating and advancing its workforce to the maximum potential of each individual, our employees are our most valuable asset and are the driving force behind our success. www.madauto.com

spECIAl REpoRt | 37

SPECIALISTS IN SOURCE AND SUPPLY GIF Products is a supply chain company, specialising in the sourcing and supply of various standard and added value products required by Industrial, Engineering and Mining projects, on the African continent.

GIF has developed expertise across a wide range of products and services, sourced from around the world.

Our staff are highly trained and committed to project service delivery and have expertise and capabilities in Technical, Logistics and Finance disciplines.

Contact us to find out what GIF can do for you!

sales@gifproducts.co.za | www.gifproducts.co.za

AmbAtovy

haul truck

developed a comprehensive

by AIDE was determining demobilisation programme which employees would be to assist its Malagasy eligible. By the time AIDE workforce through this was announced, some period of change. The contractors had already lengths of 60 centimetre Assistance Initiative for completed their work and pipe welded together to Demobilized Workers information about whom construct the pipeline they had hired was no (AIDE), created in November longer easily available.

2010, provides former construction workers with Building the comprehensive a modest monthly allowance depending on employee database took two years and length of service, as they search for new approximately four man-years of effort. jobs. Among the many challenges faced This is understandable when you consider

22,000

spECIAl REpoRt | 39

COMMUNICATIONS

Worth its weight in gold...silver, copper, nickel, diamonds

North West Technology Inc. specialises in leading edge industrial technology infrastructure.

Our Solutions: • Fiber Optic Networks • Copper Networks • Access Control Systems • Wireless Communications • Radio Systems • Satellite Systems • Security & CCTV Systems • Fire Alarm Systems Contact us! We understand your business.

North West Technology Inc. P.O. Box 1230 | Summerland, BC CANADA V0H 1Z0 Tel: 250-494-3294 | Fax: 250-494-3215 email: info@northwesttech.ca

www.northwesttech.ca

Congratulations Ambatovy!

AmbAtovy that between 2007 and 2012, phase could not be kept on, which is almost always the more than 30,000 people worked on the construction case in new mining projects of Ambatovy facilities—the where many more builders largest private sector labour are required than operators. mobilisation in the history This meant that the rapid engagement of thousands of Madagascar. From a of workers in 2007 was small workforce at the followed just a few years beginning of construction, the numbers grew to later by a steady reduction over 10,000 workers by as construction wound mid-2008, peaking at 18,500 aerial view of processing plant down and preparation for operations began. in 2010.

While the operations will create Demobilisation presented many challenges employment for 6,000 people, the majority and risks, including the possibility of of people engaged during the construction strikes, slowdowns and the destruction of Re fle x Blue

Hex. Cy an

Cool Gray 11

s pots

NOrth WeSt teChNOlOgy north West technology congratulates ambatovy on the completion of its plant and mine construction project in Madagascar. north West technology has provided extensive communications infrastructure to this project throughout the five-year construction phase. our work included the installation of the very first satellite dish through to the installation and commissioning of the site-wide fibre optic network. We also supplied and installed the data network, telephone, access control, cctv, process control and fire alarm systems. it has been a pleasure to work with the ambatovy partners on this project. north West technology specialises in leading edge industrial technology infrastructure.

We design, supply and install solutions

for the mining, oil and gas, and forestry industries, as well as smaller industrial applications and larger commercial projects.

We have clients all over the world, many in quite remote locations. our canadian projects have been in northern bc, northern alberta, saskatchewan, labrador and baffin island. some of our international project locations have been in nevada, usa, venezuela, panama and Madagascar.

Members of our team have also worked on projects in africa, the Middle east and asia. north West technology inc. was formed in edmonton, alberta, canada in 2003. our head office is now located in summerland, british columbia, canada. www.northwesttech.ca

spECIAl REpoRt | 41

S AT I S FA C T I O N S I M P L I F I E D CANADIAN FLYERS

WORLD AVIATION

SERVICES

Canadian Flyers World Aviation Services is a private aircraft management provider offering extensive experience and support for the global mining and resource sector. Whether looking to purchase your own aircraft or simply charter one to support your resource project, make Canadian Flyers World Aviation Services your first call.

Contact details: Dario Matrundola Telephone: +1 905-642-2774 Mobile: +1 416-995-9464 Email: dmatrundola@rogers.com

Managing an aircraft can quickly become a full time job and one which requires specialized knowledge and experience. We take control of your aircraft’s flight operations; importation, government licensing, providing pilots, engineers, safety management system, hangarage and itemized monthly billing of all the associated operating costs. No hassles and no wasting your company’s resources. Canadian Flyers World Aviation Services is the total solution for the management of your aircraft.

The Ambatovy project, one of the world’s largest lateritic nickel mines located in Madagascar, chose the experience of Canadian Flyers World Aviation Services to provide for their specialized aviation requirements. We imported, manage and operate Sherritt’s DHC-6 STOL aircraft providing quick, hassle free, dependable regular daily scheduled service between the capital city Antananarivo, their runway at the mine site near Moramanga and 220km down the slurry pipeline, to their new runway at the Ambatovy refinery and headquarters located next to the port city of Toamasina. We organized and provided approved GPS instrument approaches into the private runways for assured access and for the ability to provide on call medical evacuation services.

Our experienced management and pilots represent unquestionably the highest calibre of the aviation world and operate your aircraft as such. Take safety to the next level with the Canadian Flyers World Aviation Services team.

AmbAtovy

excavation work

property, all of which could threaten the company’s reputation.

In 2008, Ambatovy’s Local Resources Development Initiative evolved into ALBI, the Ambatovy Local Business Initiative. One of ALBI’s objectives was

to assist in the creation and growth of local businesses so the company could source more of its supplies in Madagascar, generate local employment opportunities, and help former construction workers find new jobs.

“one of Albi’s objectives wAs to Assist in the creAtion And growth of locAl businesses so the compAny could source more of its supplies in mAdAgAscAr” spECIAl REpoRt | 43

PLACEMENT and MANAGEMENT of HIGHLY SKILLED FILIPINO MANPOWER since 1986

The right PEOPLE in the right PLACE at the right TIME Tel: (+632) 725 9979 ; Fax: (+632) 725 9980 - Email: manpower@euroasia.com.ph www.euroasia.com.ph

Allow us to do what we do best, for your benefit!

• Austral Associates, a South African company was established in 1985 and actively exports into Africa and the Indian Ocean Islands • We have established sources of supply in South Africa, India and China, enabling us to buy at a range of prices to suit our Clients’ needs • Key market sectors are agriculture & milling, mining, industry, fishing and aquaculture • The company offers an efficient, competitive service based on a developed network and experienced personnel

AUSTRAL ASSOCIATES CC International Trade Facilitators

Olivier Le Clezio

 0027313121305 / 0027825700414  exports@austral.co.za

AmbAtovy In 2010, ALBI created eUrOASIA PhIlIPPINeS, INC (ePI) a farm school to train established in 1986 in Manila, by french and filipino for mer con st r uc t ion shareholders, epi has proven track records of excellent workers who might services, tailored to each requirement, ranging from decide to return to or standard human resources to more complex options for embark upon agricultural the management of filipino workers. activities. Over 3,000 since 2009, on ambatovy project alone, epi has already deployed more than 500 qualified filipinos in more than 60 have already undertaken expertise fields for the construction and operation of the the training, and many dMsa nickel processing plant and related facilities. thousands more have epi’s manpower recruitment capacity, management registered for future expertise and continued strong partnership with its client classes. The courses help contribute to the success of its venture in Madagascar. demobilised workers and www.euroasia.com.ph others to improve their skills and knowledge in agriculture, livestock, accounting and business administration. A network of model farms helps with technical assistance.

Ambatovy has also contributed to the creation of three bulk purchasing centres, two in Toamasina and one in Moramanga.

These centres buy fruit, vegetables, and dried goods from local farmers and resell them to customers, including Ambatovy. An estimated 5,000 farmers from the regions of Atsinanana and Alaotra Mangoro and 3,000 farmers from other regions of the country supply these centres with up to 125 tonnes of fruit and vegetables per month. anjoma market tamatave

“in 2010, Albi creAted A fArm school to trAin former construction workers who might decide to return to or embArk upon AgriculturAl Activities” spECIAl REpoRt | 45

AmbAtovy Local producers also supply Ambatovy with eggs and frci enables ambatovy to better manage its it environment, including software, systems, security and over poultry. At the height of 2,000 computers. We provide consulting, implementation construction, Ambatovy services and training for end-users and it engineers. our was purchasing 80,000 mission is to help our clients improve their operations and eggs and 6,000 chickens efficiency. frci is a recognized Microsoft partner in africa per week. with numerous certifications and regional awards. our “Our latest initiative is to teams are fluent in french and english. work with farmers to form www.frci.net them into associations,” says CSR program service manager Jennifer Burt Davis. “They can then receive subsidies, about $5,000 per association, from a World Bank Project, but in order to qualify they need to have a market for their goods.”

The farmers living in the mine’s project zone enjoy a direct benefit from Ambatovy’s presence. “That’s really critical for us,” says Burt Davis. “Through the produce they are growing and the animals they’re raising, they have a connection with our employees and our catering service, and we can assist them to create higher quality products.”

Thousands of farmers now supply the bulk purchasing centres, which buy agricultural produce directly from them, and the farmers benefit from having access to a stable market.

FrCI

6,000 number of chickens purchased per week at the height of contruction albi farm school, toamasina

spECIAl REpoRt | 47

The Ambatovy project in Madagascar is committed to providing jobs for local people, contracts for local companies, and training them for a sustainable future written by: BeCky DONe & mArtIN AShCrOFt research by: rOBert hODgSON

AmbAtovy

A

major benef it f rom Ambatov y’s mission in Madagascar has been the creation of direct and indirect jobs, which has provided a major boost to the local economy. The operational phase is expected to provide long-term employment for 6,000 people, with 2,500 directly employed by Ambatovy and 3,500 by the contractors. A vast range of additional indirect opportunities will also be created in sectors such as food production, transport and waste management. A sign of how welcome these opportunities are among surrounding communities is that more than 28,000 job seekers have already been registered.

Ambatovy is committed to hiring as many local people as possible, and thousands of Malagasy employees have received construction, technical, and administrative training to enable them to assume positions during the operations phase. Providing vocational training for local communities has been a priority, with candidates who meet the necessary requirements being given priority to fill long-term skilled positions in operational areas including plant operations, eng ineering, hea lth a nd safet y, environment, finance, administration, external relations, maintenance and logistics, and potentially others.

The approach of the company’s training department has been to combine self-taught training, computer-based learning, and instructor-led classes,

spECIAl REpoRt | 49

Our expertise in mining places us at the forefront of the industry. Whether you need technical advice on steel manufacturing processes, a strategic partnership in coal and coke trading or guidance on risk reduction, maximizing profits or improving efficiencies in precious or base metal mining or extraction, we are readily available with an international service.

Mining and minerals sector services from SGS: Delivering competitive advantage for you Email us at minerals@sgs.com | www.sgs.com/mining

AMBATOVY AmbAtovy

ENIVRONMENTAL SERVICES As the world’s leading inspection, verification, testing, and certification company, SGS is an expert in monitoring and supporting the mining environment. Using a combination of global resources and full-time local specialists, our projects ensure that clients are free to focus on their core businesses while we help them to create a sustainable environment.

One such project involves the air monitoring station set up by SGS Environmental at the Ambatovy nickel mine near the city of Moramanga, 80 km east of Antananarivo, the capital of Madagascar. The Ambatovy plant processes nickel and cobalt from mine slurry.

The process of separating the nickel and cobalt from the raw material mined from the ground gives rise to air pollution, which can be damaging to the surrounding environment and community. While Madagascar is a biodiversity-rich country, it is one of the poorest countries in the world, in which the local people are highly dependent on natural resources for their livelihood. These factors combine to create a challenging context for a large mining operation like Ambatovy.

As a responsible mining enterprise, Ambatovy adheres to stringent environmental standards including the Equator Principles, the World Bank Group’s IFC Performance Standards, and the principles of the Business and Biodiversity Offsets Program (BBOP). Where possible, all efforts have been made to remove pollutants before emitting to the atmosphere and ensure the surrounding community benefits from mining activities. A key element of Ambatovy’s Environmental Management Plan involves the appropriate mitigation and monitoring of any

issues identified during their Environmental and Social Impact Assessment.

This is where SGS Environmental Services comes in. In compliance with Ambatovy’s environmental policy, SGS Environmental has installed an air monitoring station to monitor the ambient air conditions in and around the Ambatovy plant. The station’s protocols are the result of world-class equipment imported from the US and SGS Environmental’s extensive experience in the mining industry in Africa.

In March 2011, the station was shipped via sea from Durban Port to Tamatave, Madagascar.

After clearing customs, the container unit arrived at the plant in April 2011. Special gases had to be shipped separately afterwards, as per maritime law. These arrived in May and June 2011. Expert SGS staff arrived at the plant in August 2011 to install, commission, and calibrate all the equipment, as well as to train the Ambatovy staff in the operation of the air quality monitoring station. The station is currently monitoring a number of pollutants including SO2, NOx, NH3, H2S, and PM-10. It provides Ambatovy with valuable information so that, as mining activities progress, the surrounding environment is carefully monitored to ensure long-term sustainability.

SGS Environmental’s competitive advantage lies in its key offerings – experienced ambient air experts working with local staff who specialise in designing, installing, and running air projects in African countries, through the use of global resources. For operations like Ambatovy, SGS Environmental is the perfect partner in environmental sustainability. www.sgs.com/environment

OCTOBER 2012 | | 512 spECIAl REpoRt

AmbAtovy enabling employees to Malagasy engineers, who develop skills on the job learned their craft from and paving the way for Ambatov y’s expatriate professiona l g row t h . technicia ns, while The training department ma intena nce subjects comprises a team of are taught by technical experts from Canada.

35 professionals, including These courses help to trainers, sector-training transfer skilled trades coordinators and training advisors.

Maintenance training to the local workforce, The Ambatovy Training equipping employees with Centre in Toamasina has a fully equipped the knowledge to become electricians, workshop for operations and maintenance millw rights, pipef it ters, welders, training. All operators are instructed by instrument technicians, boilermakers and

COmPlIANt DOCUmeNt AND reCOrDS mANAgemeNt being compliant with different standards, such as iso9001, poses a challenge to any organisation that needs to implement standards in order to do businesss. i-Kno helped ambatovy in regards to edrMs to do just that. the challenge was not to implement and be compliant, but to what extent to automate the process. iso9001 does not dictate how you should implement or what should be automated; but rather what should be measurable. implementing a compliant edrMs could amount to millions of dollars if approached in the wrong way. by selecting key components to automate and properly designing those components without going into analysis paralysis, costs can be kept to a minimum and the right compliance achieved.

only by implementing a single approval process, excellent revision numbering according to organisation policies and ensuring documents present such information accurately, could the right information be presented to the right people at he right time. finding the right document is a key component of the edrMs, as the wrong information can lead to disaster. implementing simple, yet accurate, searching capabilities ensures that users at all levels can find the right document, regardless of where the document is located. it is not a question of compliance, but rather, how compliance enables an organisation to reach its goals. www.i-kno.com

spECIAl REpoRt | 53

g n i n i M r o f s n Solutio Procurement, storage and implementation of hazardous chemicals At your service, at your mining and processing locations COROI has close to 50 years experience in hazardous products and is ISO 14001 and OHSAS 18001 certified. Safety is paramount and we’ve invested heavily in storage platform safety.

For many years, we’ve serviced industries with the implementation of hazardous chemicals be it water treatment plants, power generators or the mining sector; such as the Madagascar Ambatovy Project.

COROI is in position to assist you with: • Procure hazardous chemicals • Supply chain management • Implement hazardous chemicals into your own facility • Chemical waste management In most locations around the world.

COROI s.a.s Rue de l’ Armagnac 97420 Le Port Reunion Island Tel: +262 262 421524 mining-services@coroi.fr

AmbAtovy planners. Courses consist of six to eight months coroi has close to 50 years experience in managing of technical training, hazardous products. followed by additional We service the industry being water treatment plants, courses related to health power generators, but also waste management. and safet y, lang uage safety is and remains paramount. over the years we skills, IT, and on-the-job invested massively in safe storage platforms , equipments, human resources,‌ to insure our sites, technologies and learning. people respond to the highest standard.

Early last year Ambatovy hazardous chemicals are managed in such way, the onsite launched its Technical employees and the surrounding populations are not at risk, Excellence Program, a the facility operates at its best level and the environment training initiative created is preserved for the present but also coming time. coroi for graduates aged 17 to 22 has this experience and is able to assist you wherever your from technical colleges in business is. mining.services@coroi.fr the region of Atsinanana.

The 18 month course, followed by a two-month internship, is designed to help new graduates to develop industrial operating skills for future employment at Ambatovy or elsewhere. A similar initiative is under development in the Moramanga area.

Between 2011 and 2015, Ambatovy is aiming to train around 200 operators for work at the plant site.

Ambatovy is committed to skills development to help foster a selfsustaining, well-equipped community that will be able to flourish long after

COrOI

17 tO 22 age of graduates from ambatovy’s technical excellence program laboratory

spECIAl REpoRt | 55

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VIZIYA Ambatovy knows that a well-run maintenance organisation makes the difference between success and failure. That’s why Ambatovy uses VIZIYA’s WorkAlign© Scheduler to manage its maintenance resources.

“The Scheduler’s intuitive user interface and advanced features helps planners get the job done quickly and easily,” says Dean Comand, VP Operations. “With an implementation measured in days, we immediately started to see the benefits.”

With the ability to edit and schedule multiple work orders at a time, and realtime staff utilisation reports, the Scheduler enables dramatic increases in craftsperson productivity. More productivity means more work gets done—while also reducing overtime

and use of contractors. Most importantly, better control and improved personnel utilisation means that the assets are better maintained. Well-maintained assets fail less often, and all of these savings go directly to your bottom line.

At VIZIYA, we know maintenance.

Our WorkAlign© family of products is there to help. We bolt on to your existing maintenance system and give you what you need for your world-class organisation. 43,000 users and 570 sites across six continents can’t be wrong.

Contact VIZIYA now to find out what we can do for you.

E. info@viziya.com www.viziya.com

SEPTEMBER 2012 | | 572 spECIAl REpoRt

AMBATOVY

VIZIYA Mining profit is the difference between two very large numbers Mining is hard. It takes a huge investment in capital and personnel. While revenue can be high, expenses always threaten to be higher. In the past, as the economy flourished, mining companies increased their profitability through production expansion.

There wasn’t always time to fully optimise operational spending. In today’s uncertain economy, profit growth requires careful attention to finding new operational efficiencies.

Mining is no longer armies of workers with picks and shovels, but rather it is automated machinery, and people to maintain that machinery. More than any other industry, mining draws a straight line between good maintenance, and operational profitability.

At VIZIYA, we have the pleasure of working with many of the world’s largest and best mining companies. Below are some common threads among these world-class maintenance operations.

possible with the effective planning and scheduling of the maintenance craftspeople. How many times has the maintenance team started a job only to find out that not all of the required parts were on-hand, or how often has the maintenance person arrived at the equipment, only to find out that it is in use and unavailable for maintenance?

Unfortunately, maintenance systems are notoriously deficient when it comes to maintenance planning and scheduling. While this is not an issue if you have a small maintenance team, and only a few work orders each day, mining operations are big— with maintenance staff measured in the hundreds, and work orders in the thousands. Planning and scheduling success requires effective tools. Do not compromise: investment in maintenance planning and scheduling is a strategic necessity.

Reporting It all starts with reporting. If you don’t know where you are, and you can’t track how you are improving, you are not going to get results. While it sounds easy, in practice, reporting is hard. Your maintenance data is spread far and wide across your ERP system’s database, and finding the right information involves specialised knowledge about maintenance reporting needs, a detailed understanding of the database layout, and a full mastery of the automated toolsets required to create a reporting system. It turns out that this collection of skills is rare, and it is much easier and more effective to work with a partner to help you create your solution. Building a reporting system is not for the faint-hearted. Do not compromise: good reporting is a necessary element for any successful maintenance operation.

Vendor management A critical area that is often neglected is vendor management.

Use your reporting system to create a vendor report card. Which vendors give you the fewest early life failures? Which vendor’s equipment costs the least to maintain? Are vendor part shortages consistently prolonging equipment outages? Are the vendor’s recommendations for preventative maintenance effective? You’d be surprised at how willing your vendors are to work with you on the areas that are important to your business.

Finally, a special note about warranties. Our products are in use at over 550 sites across six continents, and we have yet to find a maintenance organisation that is happy with their warranty claims efforts. This is a sad state of affairs. Warranty claims are like money lying around on the floor. Don’t wait.

Get out there and build a warranty claims process to send someone out there and pick it up. The project payback can be measured in hours.

Labour utilisation After you have succeeded in building an excellent maintenance reporting system, the first thing you will likely see is that substantial improvements are

Sean Licata Sean Licata is VP of Business Development at VIZIYA Corp.

SEPTEMBER 2012 | 1

AmbAtovy

“there is no project of this size Anywhere in the country” the surrounding community. In 2008, however, the business community was somewhat unprepared for the opportunities this project would provide. “When we started, this was truly a greenfield operation,” says Gerald Perina, head of Ambatovy’s Business

Improvement Programme. “Although there is a smaller mining operation in the south operated by Rio Tinto, there is no project of this size anywhere in the country. So finding contractors was difficult because there were limited businesses within the country that had

spECIAl REpoRt | 59

D.H. Lyons A I R

Q U A L I T Y

M A N A G E M E N T

S E R V I C E S

D. H. Lyons provides a range of air quality consulting services to industrial, government and municipal clients.

• Industrial air quality consultant since 1990 • Worked with industries across Canada, the United States, South America and internationally.

Primary Services offered: • Air Quality Impact Studies • Air Quality Management Plans • Air Emission Inventories • Regulatory Air Dispersion Modelling • Environmental Compliance Approval Applications • Greenhouse Gas Emission Reduction Verification Studies • Technology Evaluation • Peer Review and Expert Witness Testimony Areas of Technical Expertise: • Air Emission Inventories • Air Dispersion Modelling • Regulatory Compliance Issues • Industrial Permitting • Air Pollution Control Technology Strategies and Selection • Continuous Emission Monitoring System Selection • Ambient Air Monitoring and Source Sampling Techniques

Industrial Sectors serviced: • Aggregate handling and processing • Automotive parts manufacturing • Chemical process industry • Fossil power generation • Industrial surface coating • Metallurgical industries • Iron and steel • Petroleum and petrochemical • Pharmaceutical product manufacturing • Pulp and paper • Solid waste management

D.H. Lyons was part of the environmental design team, working with SNC-Lavalin Inc. and Sherritt International Corporation • Developed a revised air emission inventory for all major air emissions sources from the main plant • Used air dispersion modelling as a design tool to help refine the size, height and location of various exhaust stacks around the facility to ensure their proper performance and ability to meet the required environmental air quality and occupational health and safety standards for the following areas of the project:

• Diesel generator power plants for the project main site, mine site and pumphouse • Ammonia storage and hydrogen plant startup • Slurry neutralization tanks • Sulphide precipitator flare • Hydrogen sulphide scrubber • Material loading and transfer operations at the port of Toamasina

D.H. Lyons | Air Quality Management Services | 60 Heintzman Street, Suite 1327 | Toronto, ON M6P 5A1 Phone: (416) 761-9472 | FAX: (416) 761-1916 | Mobile: (416) 993-9472 | Email: dhlyons@ca.inter.net

AmbAtovy

Maintenance at the refinery

the necessary experience.� has provided a much-needed boost to ALBI offers small, medium, and micro Madagascar’s economy and entrepreneurs. enterprises (SMMEs) training and capacity Ambatov y had signed more than building aimed at improving the quality $1.2 billion in local contracts by the end of of their products and services, which 2010. In 2011 alone, Ambatovy spent $220 million on local purchases. will help make them more competitive More than 500 SMMEs in the marketplace. across 54 sectors have been Now one of the largest awarded purchase orders consumers of products and

by Ambatovy; meanwhile, services in Madagascar, ALBI has more than Ambatovy works hard to 2,000 local businesses identify local companies registered in a database capable of responding used by Ambatovy and its amount signed in local to company and market sub-contractors. contracts by 2010 needs. This approach ALBI has already assisted

$1.2

BIllION

spECIAl REpoRt | 61

Protecting Your People Is Our Priority Managing health risk in challenging environments

Working in remote or developing areas exposes your employees to risk, especially if existing support services are limited. International SOS will help you manage and reduce the health and security risks facing your employees. Operating in over 70 countries worldwide, you have access to our global footprint and infrastructure.

We have over 25 years experience in partnering with global and local corporations in various sectors of the industry and can provide comprehensive health and security solutions that can be integrated into your sites across all operations.

• On-site medical services • Medical consulting services • Site health reviews • Medical risk assessments • Occupational health services / programs • Medical evacuations • Security services

• Medical supply chain services • Routine medical support • Site clinic services • Remote site staffing • Medical training • Integrated malaria control program

For more information contact: Tel +27 541 1000 or Email: SATsales@internationalsos.com Address: 72 New Road, Midrand, Johannesburg, South Africa. www.internationalsos.com

Worldwide reach Human touch www.internationalsos.com

AmbAtovy employment-generating small sewing companies based in Toa masina enter pr i s es eng a g ed which each employ 40 in the ma nufact ure people. A LBI helped of u n ifor m s, drum to select these and pallet fabrication, contractors and provides egg production, a nd t hem w it h ongoing ag r icu lt u ra l produce technical and ma rketing. A mbatov y provides uniforms to each administrative support. employee, consisting of uniform manufacture A n o t h er e x a m pl e two shirts, two pairs of of ma ximising loca l trousers, and two coveralls. Rather than opportunities relates to the manufacture selecting a large industrial supplier, of pallets. Using wood from a pine Ambatovy decided to award an annual forest near Moramanga, Ambatovy uses contract for 4,000 uniforms to two methods consistent with eco-certification

INterNAtIONAl SOS With a strong presence in africa and over 25 years’ experience in the industry, international sos plays an integral part in the health and safety operations of many energy, oil and mining companies worldwide. the ambatovy mining operation in Madagascar has been a client of international sos for the past 5 years. international sos provides approximately 8,000 ambatovy employees with access to international standard healthcare services, through two clinics on site with a staff complement of 30 nationals and 14 expatriate medical employees. services include site health reviews at remote sites; health impact assessments; and community health projects, as well as first aid and advanced training and medical evacuations. on-site healthcare facilities include the set-up and management of

clinics, occupational health programmes and primary and emergency care. as a leader in the industry, international sos clients benefit from the integration of on-site staff with the assistance centre network. international sos has 27 assistance centres worldwide that provide 24/7/365 medical assistance to many companies globally. international sos is the world’s leading medical and security services company, operating from over 700 sites in 70 countries with 10,000 employees, led by 1,100 physicians and 200 security specialists. international sos risk management solutions are specifically tailored to meet any business need. services are fully integrated and just one phone call offers 24/7 access to comprehensive advice and assistance. www.internationalsos.com

spECIAl REpoRt | 63

Smart Line Integration security system integrator has been appointed by Ambatovy to design and provide integrated solutions for Ambatovy Plant in Madagascar.

The offered solution is a combination of access cards with fingerprints, PDA-mobile identification anywhere on the plant and integration between HR and access control system.

We are based in South Africa and we provide off the shelf and/or security customised solutions for the African region.

Smart Line Integration (Pty) Ltd 1st Floor Helvetia House, Greenvale Road, Wilbart, Germiston, 1401, South Africa PO Box 4337, Edenvale, 1610, Gauteng, South Africa Tel: +27 11 450 1939 Fax +27 11 450 4895 Email: info@sligroup.co.za

Web: www.sligroup.co.za

Callidus Process Solutions

Madagascar has been suporting Ambatovy in the managment, maintenance, servicing and diagnostics of valves, actuators, and instrumentation, specialized welding and coating solutions. Calidus provides employment, training and workshop facilities locally. www.callidusgroup.com.au

‘Delivering expertise through experience’ - anon

AmbAtovy

local companies manufacture the uniforms

standards to harvest the efficient use of natural wood required for the resources, and sustainable manufacture of up to forestry stewardship.

140,000 pallets per year Since 2008, the company at full plant capacity. The provided local SMMEs with more than 4,000 pallets are fabricated in hours of mentoring and Toamasina and used for contract awarded to two 5,700 hours of technical the shipment of Ambatovy local companies training in accounting, products. A total of 950 project ma nagement, jobs have been created by this initiative; 800 in leadership, quality control, forestry and factory work and 150 in contract administration, procurement, transportation and handling. In addition environment, health and safet y, to creating stable employment, this industrial relations, change and growth approach has other advantages including management. improved environmental management, This level of human investment was

4,000

UNIFOrmS

spECIAl REpoRt | 65

For the best in Detection and Analysis

Fixed systems Compact and cost effective portables

Cal Gas

On line analysers

T: +27 11 8943134 F: +27 11 8943156 E: Gemtech@netactive.co.za www.gas.co.za

AmbAtovy AMBATOVY necessary give potential Lorem toipsum dolor minim veniam, quis nostrud local suppliersconsectetur a chance to sit amet, exercitation ulla mco win business.elit, Early in adipisicing sedon do laboris nisi ut aliquip ex the project it was found ea commodo consequat. eiusmod tempor incididunt that whenet local businesses Duis aute irure dolor in ut labore dolore magna were for reprehenderit in voluptate aliqua.invited Ut enimtoadbid minim work, they failed get the velit esse cillum dolore veniam, quis tonostrud contracts, because eu fugiat nulla pariatur. exercitationeither ullamco laboris tnisi hey lacked qua lit y Excepteur sint occaecat ut aliquip ex ea commodo control, unaware consequat.were Duis aute irure cupidatat non proident, sunt how a response dolortoinprepare reprehenderit in in culpa qui officia deserunt to a bid,pariatur. or weren’t set up This is a caption this is a caption mollit anim id est laborum volnulla Excepteur properly as acupidatat business.

A sint occaecat non Lorem ipsum practical dolor sittraining amet, new initiative has been proident, sunt in culpa qui officia deserunt consectetur adipisicing elit, sed do eiusmod implemented year to add emphasis businesses.” mollit anim idthis est laborum Lorem ipsum these tempor incididunt ut labore et dolore to thissit effort.

“This is why weadipisicing set up the magna The BTC, in Toamasina, offers dolor amet, consectetur aliqua.located Ut enim ad minim veniam, Business says on financial accounting, to elit, sed doTraining eiusmod Centre tempor (BTC),” incididunt ut courses quis nostrud exercitation ullamco how laboris Perina, to train staff ad in prepare a tender, control, and labore et“primarily dolore magna aliqua.the Ut enim nisi ut aliquip ex eaquality commodo consequat.

GEMTECH Gemtech is a high-tech, South Africa-based company specialising in all aspects of gas and various environmental monitoring equipment. We provide a full range of portable and on-line detection equipment as well as full service and on-site assistance.

Our range includes gas, emissions, weather, moisture and particulate detectors. We have a full range of available technologies and currently supply in

Angola, Madagascar, Congo, Mozambique, Ghana, Nigeria and Tanzania; and we provide advice and design parameters when needed.

Well situated near OR Tambo International Airport, we have excellent access to courier and infrastructure supplies.

We currently supply Ambatovy’s requirements for personal H2S detectors with the Gas Alert Clip Extreme zeromaintenance unit with the Microdock automated test and reporting stations, as well as the calibration and test gases for Ambatovy’s equipment ranges.

E. Gemtech@netactive.co.za www.gas.co.za

spECIAl REpoRt SEPTEMBER 2012| |671

Established in 2006, Bambalela Bolts (Pty) Ltd is a supplier of an extensive range of FASTENERS, standard range holding is over 9000 items. We also fabricate HD Bolts, U-Bolts and Stud bolts in a range of grades to your requirements.

Bambalela Bolts (Pty) Ltd supplies to local companies in South Africa and to Projects all over Africa and beyond.

The company is based in Johannesburg South Africa.

Office number +27 11 822 6415 Cellphone (Mobile) number +27 (0) 83 378 6259 Email tania@bambalela.co.za | Website www.bambalela.co.za

AmbAtovy

training centre

health and safety; and there are classes and seminars free of charge with followups that go hand-in-hand with quality audits. An audit is carried out within the local business, weaknesses and strengths are identified, and then further courses are recommended which are followed by

further audits in due course. Companies which have made improvements as a result of these courses are then in a better position to be awarded contracts, which fulfils Ambatovy’s policy to procure as much as possible within the country, and ensures that the companies concerned

“All of our business development hAs to be on A self-supporting bAsis, so thAt when we’re not here, the businesses will continue” spECIAl REpoRt | 69

AMBATOVY AmbAtovy tempor incididunt ut labore ipsumanddolor areLorem both qualified able sit do amet, consectetur et dolore magna aliqua. Ut to the work. adipisicing sed do enim ad minim veniam, The BTC is aelit, collaborative quis nostrud exercitation eiusmod temporAmbatovy, incididunt effort between ullamco laboris nisi ut ut labore et doloreFinance magna the International aliquip ex ea commodo aliqua. Ut enim(IFC) ad minim Corporation and consequat. Duis aute irure veniam, quis nostrud Training Management dolor in reprehenderit in exercitation ulla mco Africa (TMA). Introductory voluptate velit esse cillum laboris nisiwere ut aliquip sessions held ex in dolore eu fugiat nulla ea commodo consequat.

August in Toamasina, pariatur. Excepteur sint Duis aute A nta n a n airure r i v o dolora nin d reprehenderit by in voluptate Moramanga officials This is a caption this is a caption occaecat cupidatat non proident, sunt in culpa qui velit esse cillum dolore from the Supply Chain albi supported local business eu fugiat nulla pariatur. Excepteur sint officia deserunt mollit anim id est laborum.

Management Department occaecat cupidatat non proident, in Lorem ipsum dolor sit amet, consectetur (SCM/ALBI) of Ambatovy, duringsunt which Ambatovy has also partnered local culpa qui officia deserunt mollit anim id adipisicing sed foreign do eiusmod tempor contractorselit, with nationals, the Centre received over 500 applications: ensuring ut that the foreign nationals est laborum.

Lorem 150 ipsum sit amet, incididunt labore et dolore magna aliqua.

315 in Toamasina, in dolor Antananarivo areenim passing on training thenostrud locals. consectetur adipisicing elit, sed do eiusmod Ut ad minim veniam,toquis and 54 in Moramanga.

INORGANIC VENTURES Inorganic Ventures is a producer of chemical certified reference material (CRM) specializing in preparing custom inorganic standard solutions designed for a variety of applications. These include ICP, ICP-MS, ion chromatography, and atomic absorption. These highly regulated and highly sensitive processes require incredibly accurate and consistent measurements, which mean your testing equipment requires extremely accurate and consistent calibration. We specialize in the formulation of custom inorganic solutions and we excel in providing service and support tailored to our customers’ specific needs. In short, “we flex to your specs”.

For over a decade, Inorganic Ventures has been ISO Guide 34, ISO 17025, and ISO 9001

accredited. These quality standards are the core of the analytical testing community and Inorganic Ventures continues to lead the industry in obtaining and developing these quality standards.

Our vast experience in custom blending allows us to create precise, distinctive CRM blends quickly and ship them anywhere in five business days or less. If your needs are not unique, we offer a wide selection of stock inorganic CRMs that ship the day you order.

Our European distribution center in Madrid serves as a gateway for any international orders to provide our customers with fast delivery at competitive transportation costs anywhere in the world.

www.inorganicventures.com

OCTOBER 2012 | | 712 spECIAl REpoRt

MAKE YOUR ASSAYS FASTER AND WITH GREATER ACCURACY WHILE LOWERING COST Glass Expansion has been manufacturing sample introduction components for ICP emission and mass spectrometers since the early 1980s. Today we support instruments from 16 manufacturers, providing sample introduction systems for over 50 different ICP and ICP-MS models. Many major ICP manufacturers supply our products as standard. Our products are widely used and embraced by recognised analysts in the ICP industry, and are recognised as ‘industry standard’ products. Our intimate understanding of the relationship between the various sample introduction components, together with our ability and expertise in manufacturing high quality nebulizers, spray chambers, torches, and other ICP components, means that we can offer you a complete solution to your ICP sample introduction needs.

Glass Expansion offers consumables and accessories for ICP optical and mass spectrometers • Nebulizers • Spray chambers • Torches • Interface cones • Pump tubing • Enhanced productivity accessories

Americas: Tel: 508-563-1800 | Fax: 508-563-1802 | e-mail: geusa@geicp.com | www.geicp.com International: Tel: +61 3 9320 1111 | fax: +61 3 9320 1112 | e-mail: enquiries@geicp.com

AmbAtovy “Their contract renewals are based on how well glass expansion designs, manufactures, and distributes they carry out internal consumables and accessories for icp spectrometers. these training of nationals: spectrometers are used in a wide range of applications most companies are pretty involved in the measurement of elemental concentrations, from successful,” adds Perina. environmental analysis to mineral assay to quality control.

Ambatov y has also of the many spectrometer modules, glass expansion is focused on the sample introduction system. its established continuous products are designed to provide high precision and improvement ta rgets accuracy. it also offers components and accessories for its contractors over which enhance both the ruggedness and productivity the next two years. “We of the spectrometers. glass expansion has a staff of need to encourage the technical experts ready and able to recommend the best development of sustainable components for a customer’s specific needs. businesses,” says Perina, www.geicp.com “not businesses that are only doing business with us, but with other companies as well.”

Eventually, for all these initiatives to be successful, the objective has to be that businesses can be self-supporting even after the mine has closed.

“All of our business development has to be on a self-supporting basis, so that when we’re not here, the businesses will continue,” Perina confirms. The challenge is to create a business plan that gets them off the ground, but while Ambatovy might be the biggest customer at the moment, others will emerge when Ambatovy is no longer around.

glASS exPANSION

6,000 PeOPle long term employment potential local produce supplier

spECIAl REpoRt | 73

An EngAgIng AppROAch P

oised to become one of the world’s largest lateritic nickel mines by 2013-2014, Ambatovy is likely the most ambitious industrial undertaking in the history of Madagascar. Aiming to produce 60,000 tonnes of refined nickel and 5,600 tonnes of refined cobalt every year over its thirty year life, there has never been a mining project of this scale in Madagascar before, and the project partners (Sherritt International

74 | spECIAl REpoRt

Corporation, Sumitomo Corporation, Korea Resources Corporation and SNC-Lavalin Incorporated) are committed to managing it responsibly.

Ambatovy’s far-reaching corporate social responsibility (CSR) programme therefore has three main strategic objectives, explains CSR program service manager Jennifer Burt Davis. “The first looks at meaningful stakeholder engagement and relationship building; the second looks at the mitigation

AmbAtovy Ambatovy is committed to operating sustainably throughout the life of the project and beyond, for the benefit of the country, its communities and wildlife written by: BeCky DONe & mArtIN AShCrOFt research by: rOBert hODgSON

of, and compensation for, potential impacts; and the third is around demonstrating and contributing to socio-economic benefits in our operation zones.”

This strategy reflects the company’s core values, which include creating and maintaining an organizational culture where health and safety is a top priority, along with respect for the social and cultural values of its stakeholders, sustainable economic development, and protection of

the natural environment. Inherent in these values are high ethical standards and a spirit of transparency, teamwork based on mutual respect, trust, and constructive relationships, and a commitment to continuous improvement. Also central to Ambatovy’s policy of good corporate governance is the objective to foster credibility and trust by complying with principles developed to protect investors, employees, and the general public.

spECIAl REpoRt | 75

Foley Hoag LLP— Corporate Social Responsibility and the Extractive Sector Turning Globalization Challenges into Competitive Advantages As the only law firm in the United States with a Corporate Social Responsibility and Risk Management Practice, Foley Hoag is singularly equipped to help clients put human rights principles and aspirations into practice in a manner that minimizes uncertainties and maximizes business opportunities. To this end, we assist clients in managing legal risks, safeguarding corporate reputations, and turning the challenges of globalization into a competitive advantage.

Visit our Corporate Social Responsibility and the Law Blog at www.csrandthelaw.com.

Foley Hoag LLP Seaport West 155 Seaport Boulevard Boston, MA 02210-2600 tel: 617 832 1000 fax: 617 832 7000

www.foleyhoag.com Attorney advertising. Prior results do not guarantee a similar outcome.

Foley Hoag LLP— Corporate Social Responsibility and the Extractive Sector Turning Globalization Challenges into Competitive Advantages As the only law firm in the United States with a Corporate Social Responsibility and Risk Management Practice, Foley Hoag is singularly equipped to help clients put human rights principles and aspirations into practice in a manner that minimizes uncertainties and maximizes business opportunities. To this end, we assist clients in managing legal risks, safeguarding corporate reputations, and turning the challenges of globalization into a competitive advantage.

Companies in the mining industries face the complex challenge of conducting their operations in a manner that not only respects national and international laws, but also observes voluntary standards and industry guidelines concerning social and environmental issues. This challenge is exacerbated by the fact that exploration and extractive activities around the world present increasing legal and reputational risks in the areas of human rights, labor rights, security practices, and the rule of law.

Foley Hoag’s Corporate Social Responsibility Practice helps companies in the extractive industries to identify risks and understand the implications and requirements of a wide range of international guidelines and standards. We help clients monitor and benchmark their efforts against the relevant standards applicable to the extractive sector, as well as industry best practices, and to develop strategies to manage business risks.

Foley Hoag Senior Advisor John Ruggie, Former U.N. Special Representative on Business and Human Rights, helps mining companies implement the U.N. Guiding Principles, which he developed, and which enable companies to meet international best practices while mitigating risk. Foley Hoag also serves as thought leaders on the issues of indigenous peoples. We advise clients on international law and national standards, and how to implement consultation and consent processes.

Our attorneys are experts in advising corporate leaders on how best to guide their operations to achieve both business objectives and the highest levels of compliance with critical human rights standards. We also assist companies in building effective channels of communication and positive relationships with key stakeholders, including non-governmental organizations, the media, unions, socially responsible investor groups, and indigenous communities. In addition, we help clients establish partnerships with international organizations that foster social and marketplace stability in the developing countries in which they operate.

Foley Hoag’s Corporate Social Responsibility Practice Group •

Creates legal strategies and business policies that incorporate respect for human rights, comply with existing laws and voluntary codes, and “close the gap” between a company’s commitment and its business activities

•

Conducts periodic monitoring of extractive projects to ensure compliance with the local and national laws, company standards, and fundamental human rights, especially with regard to workers, local communities, and the nexus of security concerns and human rights protection

•

Undertakes human rights risk assessments and corporate social responsibility due diligence reviews of current and potential projects to evaluate legal and reputational risks

•

Analyzes conflicts with local communities, and designs plans and programs to minimize risks and maximize mutual benefits

•

Helps to incorporate key corporate social responsibility standards into the prevailing legal regimes and related contracts used in extractive projects

Looking for Insightful Commentary?

Visit our Corporate Social Responsibility and the Law Blog at www.csrandthelaw.com.

AmbAtovy Prior to construction, training, local procurement, Ambatovy conducted a environmental protection thorough environmental and biodiversity offsetting. a nd socia l impact Community relations are assessment, which involved crucial to the success of an a comprehensive analysis of operation with far-reaching all of the project’s impacts. implications for the local population, so Ambatovy A wide range of Malagasy works particularly hard to stakeholders were consulted recognize its stakeholders, in order to gain an insight into how negative impacts school equipment communicate with them could be avoided, managed or donation, Moramanga proactively and effectively, and manage stakeholdermitigated, and how positive impacts could be maximised. Ambatovy related risks as a means of cultivating a has since worked to create and implement broad level of active support from everyone. a wide range of policies and programmes Affected stakeholders are afforded a real covering job creation, capacity-building and influence on project activities and the

mACrOtek INC. for over 80 years Macrotek has provided cost-effective and energy efficient system solutions for the control of particulate, fume, and odour from industrial process exhaust gases. as a leader in the air pollution control industry, we are proud to be part of the innovation and ambition ambatovy brings to Madagascar. our continued partnership with ambatovy strengthens our mission to provide customised solutions to our worldwide clients, optimising energy efficiency, exceeding regulatory requirements, and delivering results unique to each environmental need.

Macrotek specialises in custom designed air pollution control systems using wet and dry technologies. our customised product line of

quench systems, scrubbers, absorbers, and particulate collectors can be used as standalone control equipment or fully integrated pollution control systems designed for specific applications.

Macrotek has a proven track record within the mining industry and ensures high removal efficiencies, flexible design, and durable construction within a wide range of chemical applications. our fully customised, site-specific packages repeatedly outperform conventional designs, with results exceeding industry standards and the most stringent environmental regulations. info@macrotek.com www.macrotek.com

spECIAl REpoRt | 79

www.galana.com

Our energy to serve you

High quality products & prompt delivery Industrialforniture SRL is a company which supplies piping material such as pipes, flanges, fittings and valves in carbon, stainless steel and special materials for the construction and maintenance of industrial plants in the chemical, petrochemical, mining, energy, naval, paper and off-shore sectors.

Industrialforniture SRL with the “Valve Division� produces ball and plug valves up to 24�

AmbAtovy creation of community gAlANA grOUP support, with ongoing since the beginning of this project in 2008, galana has engagement activities developed a significant expertise in the mining sector and ranging from the provision of particularly with ambatovy. information to involvement a tight co-operation between ambatovy and galana has in joint decision-making. been established with the supply of naphtha for its factory Ambatovy has conducted in tamatave as well as the supply of diesel at the mine site in Moramanga (see photo on the opposite page). substantial training with this scale of project was new in Madagascar, ambatovy and its social agents on how galana learned from each other and brought their expertise to conduct meaningful and knowledge together to optimize operations. dialogue, in an attempt galana expresses its endeavour to be continuously linked to build genuine, longwith ambatovy and be recognized as a key player and lasting relationships supplier for the mining sector. with governments, local www.galana.com authorities and communities.

“We have about 60 social agents, supervisors and co-ordinators on the ground,” says Burt Davis, “and we look upon them as our ‘nervous system’.” If something happens within the community that affects a stakeholder’s livelihood or the project itself, the social agent reports back up the chain of command so the appropriate response can be made.

Ambatovy’s engagement activities are both proactive and responsive. The company initiates weekly, monthly or quarterly meetings with stakeholders who fall within its scope of engagement. The tangalamena (local elders) are consulted clean water

“if something hAppens thAt Affects A stAkeholder’s livelihood or the project itself, the sociAl Agent reports bAck so the AppropriAte response cAn be mAde” spECIAl REpoRt | 81

HK- JURIFISC is a reputable multi-service law firm incorporated under the Laws of Madagascar.

HK-Jurifisc is the main company of the “HK Group” composed of twelve companies having their own specialisation.

HK-JURIFISC is a law firm providing efficient and accurate advice and assistance to its client in the following legal and tax areas: • Corporate Matters • Taxation • Free Trade Zone Regulation • Real Estate Transactions • Executive Employment Matters • Banking and Insurance Law • Mining and Energy Law, Petroleum Code (upstream and downstream) • Financing Transactions and Securitization • Other commercial transactions Tel: (261) 20 22 337 97 / (261) 20 22 541 91 Email: admin.k@hk-jurifisc-mada.com

www.hk-jurifisc-mada.com

AMBATOVY AmbAtovy culpa officia deserunt feature onAmbatovy a quarterly basistext.... and definesqui a complaint as “a Lorem ipsum dolor sit amet, mollit or anim id est laborum. meetings are regularly held claim grievance filed by with government ministries consectetur adipisicing elit, Lorem ipsum dolor amet, an individual or asitgroup within the adipisicing communities sed do eiusmod consectetur elit, and agencies, suchtempor as the affected the operations National ut labore Environment incididunt et dolore sed do by eiusmod tempor magna aliqua.National Ut enim ad incididunt ut labore et dolore Office (Office pour of the company.”

Grievances minim veniam, quis nostrud magnainclude aliqua. Ut enim ad l’Environnement, ONE) and can allegations of physical financial exercitation ulla mco minim veniam,orquis nostrud the Ministry of Mines. laboris nisi utoperation aliquip ex exercitation ullamco laboris No mining of damage; health, safety, and ea nisi ut aliquip ex eaconcerns; commodo this commodo size can avoidconsequat. impacting book donation environmental Duis aute irurewith dolor its in harassment; and aute improper consequat. Duis irure communities reprehenderit in voluptate or isimmoral individual or dolor in Any reprehenderit in Thisgrievance is a caption this a caption behaviour. activities, so Ambatovy has a robust velit esse cillum dolore assessing, and community thatvoluptate velit esse cillum mechanism for reporting, feels negatively affected by eu fugiat nulla Excepteur sint Ambatovy’s addressing all pariatur. complaints.

Ambatovy dolore eu fugiat nullacan pariatur.

Excepteur activities file a complaint. occaecat cupidatat non proident, sunt in sint occaecat cupidatat non proident, sunt

HK GROUP (HK-JURIFISC) HK Group consists of twelve companies performing a range of services involving the establishment of companies and their ongoing activities in Madagascar. For instance: HK-Jurifisc (see facing page) Cabinet Hanna Gräfin Keyserlingk: • Intellectual property services International Business Center (IBC): • Local implementation offices for companies under subletting contracts • Management contracts • Tax representation agreement for expatriates’ salaries income tax (IRSA) HK-Log Services: • Work permits and Resident Visas; particular assistance to the Ambatovy Project in the

mobilization of more than 5000 expatriate workers of different citizenship HK-Interface: • Payroll process • Salary income tax payment • Social security obligations HK-FCM: • Business Process outsourcing (BPO) HK-Labor Broker and HK-Lab International • Human resources management HK-REC • Receivable recovery and debt collection Tel: (261) 20 22 337 97 / (261) 20 22 541 91 Email: admin.k@hk-jurifisc-mada.com www.hk-jurifisc-mada.com

OCTOBER 2012| |832 spECIAl REpoRt

SOLUTION FOR HIGHNESS

ECHAF+ sarl ECHAF + is established in Madagascar since 2010. We are the local representative of ENTREPOSE MILLS INTERNATIONAL, one of the European leaders in industrial scaffolding. We are patented to CE regulation according to R408 recommendations and French Syndicate of Building and are up to obtain ISO 9001 regulation.

ECHAF + has mainly established a contract with AMBATOVY PROJECT MADAGASCAR. We realize a whole set of structures of various sizes and high to satisfy the requirements of our customers. We are in contact with our engineering consulting firm situated in Paris, where from we realize all the studies and the calculation notes necessary and compulsory according to the required standards.

Contact us: Email: echaf@moov.mg +261 53 307 56 +261 34 02 123 23

SCAFFOLDING REGULATION

MADAGASCAR AMBATOVY PROJECT

AmbAtovy

public consultation

Grievances within communities may be if the complainant does not agree with filed with any field worker or through the the outcome at this stage. Solutions may be leading local authority, or affected parties in the form of compensation or rectification. can email or call a toll-free number. Forms can also be filed at Ambatovy offices in social investment Antananarivo, Moramanga, or Toamasina. Ambatovy carries out its social investment The process thereafter is structured and activities in two ways. “One is quick-impact aims to be prompt in its donations in infrastructure response with a receipt and development; and or a comprehensive reply the second is longer-term sent within 30 days of programmes around health, reg ist rat ion .

Where education and livelihoods,� necessary, an investigation explains Burt Davis. number of social will take place and a Education is a major agents, supervisors solution be proposed, with issue in Madagascar, and co-ordinators further action considered with two-thirds of the

60

spECIAl REpoRt | 85

PowerFlex® 7000 medium voltage drives.

PowerFlex® 7000 medium voltage drives.

When energy e

cy is high on your agenda, the PowerFlex 7000

should be highe on your Enabling s agenda, starting variable-speed When energy cy list. is high on your theand PowerFlex 7000 controlbe of high processes withlist. high power demands, theand PowerFlex 7000 should on your Enabling s starting variable-speed helps reduce energy costs,ofcomponent count, maintenance and motor wear. 7000 control processes with high power demands, the PowerFlex To d out more about saving count, with medium voltageand drives please visit helps reduce energy costs,energy component maintenance motor wear. http://ab.rockwellautomation.com/Drives/Medium-Voltage To d out more about energy saving with medium voltage drives please visit http://ab.rockwellautomation.com/Drives/Medium-Voltage Colin Morris, 011 654 9707, cmorris@ra.rockwell.com

Copyright © 2012 Rockwell Automation, Inc. All Rights Reserved.

Copyright © 2012 Rockwell Automation, Inc. All Rights Reserved.

AMBATOVY AmbAtovy Ambatovyliving feature text.....Lorem ipsum population in severe dolor sit and amet, consectetur poverty many children,adipisicing elit, sed do eiusmod incididunt ut labore particularly in tempor rural areas, et dolore magna school. aliqua. Ut not attending Inenim ad minim veniam, quis nostrud exercitation ullamco 2010 Ambatovy began a laboris nisi ut aliquip ex ea commodo collaboration with UNICEF consequat.

Duis aute for irure dolor in to finance the Contract School Successinprogramme reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Excepteur (Contrat Programme de la Scolaire, non or proident, sunt sintRéussite occaecat cupidatat CPRS).

Theofficia programme in culpa qui deserunt mollit anim id est laborum.

Lorem ipsum dolor sit amet, has significantly contributed to improved consectetur elit, sed do eiusmod access to adipisicing primary school education, retention rates andutparent/community tempor incididunt labore et dolore participation in enim education.

Its veniam, aim is magna aliqua. Ut ad minim

quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididuntschool ut labore et dolore magna aliqua. equipment donation, toamasina Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip to encourage administrators, teachers, ex ea commodo consequat.

Duis aute irure parents and students through community dolor in reprehenderit in voluptate velit contracts and action plans to drive their esse cillum dolore eu fugiat pariatur. own local educational goals nulla and activities.

ROCKWELL AUTOMATION FLEXES ITS MV MUSCLE WITH DRIVE CONTROL FOR MADAGASCAR NICKEL MINE Over the past year, Rockwell Automation in South Africa has been using its internal medium voltage (MV) resources, consisting of certified MV engineers, to commission 26 Allen-Bradley PowerFlex 7000 MV variable speed drives (VSDs) for the Ambatovy large-tonnage, long-life nickel and cobalt mining enterprise in Madagascar.

Rockwell Automation in France, supplied the mine with 12 and 14 Allen-Bradley PowerFlex 7000 VSDs, which are fitted on either side of a 220 km pipeline that conveys nickel slurry from the open pit mine in the hills, to the processing plant below.

Nearly 22 000 lengths of 60 cm pipes were welded together to form the pipeline that connects the mine with the processing plant. The pipeline has a proven design, similar to pipelines operating elsewhere in the world, and is capable of transporting 826 tonnes of slurried ore per hour.

The MV VSDs from Rockwell Automation control pipeline flow and pressure throughout the 1 000-metre elevation difference.

“The pipeline’s length and the heavy nature of the slurry require that very large 3,2 MW motors are installed. The customer further required flow control to assist with a smoother hydraulic profile and help with greater energy efficiency,” says Colin Morris, Branch Manager, Sub-Sahara Export, Rockwell Automation.

The PowerFlex 7000 VSD, which operates at 6,6 kV with ‘Direct to Drive’ technology, was chosen as it could connect directly to the customer’s reticulation without the use of transformers.

This further contributes to energy efficiency, and by using ‘true’ MV components, also allows for excellent reliability. The VSD communicates directly to the customer’s control system, which enables optimal process control.

Visit http://ab.rockwellautomation.com/Drives/ Medium-Voltage, call +27 11 654 9707 or email cmorris@ra.rockwell.com, hscraukamp@ra.rockwell.com

spECIAl OCTOBER REpoRt 2012| |872

AmbAtovy

table donation at ambodisaina school, tamatave

Meetings take place at the start of the school year in which the interested parties discuss school results and learning conditions with a view to improving the school in general, and retention rates, in particular. Action points might include anything from improving the school environment to setting up a school canteen, or addressing students’ attitudes towards

attendance. The actions required are then integrated into the school’s action plan.

Progress is reviewed once during the school year and again at the end of the year.

Ambatovy also runs donation and sponsoring programmes in response to requests it receives for donations. It has also worked with a US-based NGO, CURE, which receives donations of medical equipment

“educAtion is A mAjor issue in mAdAgAscAr, with two-thirds of the populAtion living in severe poverty And mAny children, not Attending school” spECIAl REpoRt | 89

Your Total Fire Protection & Life Safety System Provider Vipond Inc. is a leading International, Fire Prevention and Life Safety Solutions provider.

Our purpose is “building safe and secure environments in which to live and work”.

Since 1945, we have provided innovative fire protection solutions to reduce the risk from fire for every type of hazard through early detection and suppression. Vipond is “Your Total Fire Protection and Life Safety System Provider”, specializing in design, supply, fabrication, and complete turn-key installations.

Vipond Inc. International Division

T. 905-564-7060 E. paul.gagne@vipond.ca

AmbAtovy in the United States.

Following a government feluWa Multisafe hose-diaphragm pumps are study on the needs of successfully applied for high and low pressure duties, such hospitals in the country, as autoclave feeding, sulfuric acid, thickener underflow, Ambatovy funded the choke water, seal water make-up, underground mine transport of ten containers dewatering or tailings disposal. of medical equipment from if mining and processing is done at different sites, the slurry is additionally pumped from the mine site to the processing the US to Madagascar. It plant through slurry pipelines. also carries out work in at the heart of Multisafe pumps are two hoseeducation, HIV awareness diaphragms, arranged one inside the other. they fully and child protection, enclose the linear flow path of the product and provide for a working with several local double hermetic sealing from the hydraulic drive end.

NGOs who are assisting feluWa: excellence in mining pumps. with the implementation www.feluwa.com of selected programmes.

One local NGO called ODDIT, which is attached to the Catholic Church, is carrying out water and sanitation work in schools.

FelUWA

cultural heritage Madagascar’s cultural heritage is a crucial part of its national identity, and Ambatovy is therefore committed to making sure that any cultural heritage sites, archaeological artefacts or remains are respected in accordance with local customs, scientific procedures, and International Finance

2010 ambatovy began a collaboration with unicef to finance the contract for school success programme information kiosk, Moramanga

spECIAl REpoRt | 91

The clock is always ticking Petropipe (PPI) Company is known foremost as a specialist for the supply of critical or very urgent items that you may experience difficulties in sourcing. At PPI “the clock is always ticking”, so that we can ensure our service for critical requirements on projects is second to none.

PPI is set up to provide urgent and last minute requirements to Oil & Gas refinery project sites covering Valves, Piping, Spooling, Actuation, Instrumentation and Control Equipment etc. that site work invariably needs during the “as built” final construction and commissioning stages as well as for shutdowns and emergency maintenance.

However over the last 7 years we have also increasingly moved into the Mining and Metals sector supporting a number of Mega-Projects around the world.

PPI specializes in supporting these urgent requirements. Unlike other supply companies in the region it is those items which are difficult to source quickly that we target, providing Specialist Material or Trims, Large Bore Piping, High Pressure and / or High Temperature Materials.

Petropipe International Middle East

Office 3401 Liwa Heights Jumeirah Lakes Towers Plot No. W3, PO Box 643638, Dubai, United Arab Emirates

T. +971.04.434.1322 | F. +971.04.434.1323 Director: Robert Wood – E. robwood@petropipe.co.uk

AmbAtovy

archaeological surveys were carried out at cultural heritage sites

C or p or a t ion (I F C) Rakotoarisoa, was regularly Performance Standards on monitored by national experts appointed by the cultural heritage.

Malagasy government.

Prior to the construction During construction of phase of the project, archaeological sites the pipeline, all sites were archaeological surveys discovered by ambatovy were carried out at cultural reassessed for any previously heritage sites and with undiscovered items of the help of community archaeological interest or members, rigorously documented and value and in some cases the pipeline was mapped. In locations where remains or then re-routed to avoid particular sites. artefacts were found, Ambatovy followed The archaeological team works closely cultural practices, local traditions, and with the Universities of Antananarivo and scientific protocols to ensure minimal Toamasina and other institutes such as the disruption during their relocation. All of Museum of Art and Archaeology, and a the work during the construction phase, partnership agreement has been signed with which was led by Professor Jean AimĂŠ the Centre for Ethnological and Linguistic

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Supplying Mining Chemical Solutions Manufacturers and suppliers of: • xanthates – pellets and liquids • specialty liquid thio mineral collectors, • froth formation chemicals,

• depressants for unwanted minerals, • polyacrylamide powder flocculants • fit-for purpose make-up facilities

All backed by our highly skilled technical, engineering and R&D teams.

At Senmin, we go beyond being a chemical supplier – we supply innovative solutions to our customers.

Senmin International (Pty) Ltd T: +27 11 246 6300 E: enquiries@senmin.co.za www.senmin.co.za

AMBATOVY AmbAtovy Comnisquiam fugitas Ecaessitangible ut molo di Studies and Research brought benefits in Toamasina for adit, the to the veliquid area’s esendandel heritage. plignitatur reperaecae accupide Ambatovy’s archaeological ut qui occaeriaest maxim idenet alis endene volorem conservation andvolo treatment lam new quaectis volo quianda ex plat i s discovered dolupiciat of archaeological team has 96 keyi aliate qui que conempor discoveries. academic simus autenduAn ntesequi con archaeological sites and seceperovit aut book commissioned by et dita dit, quossi consequid collected moreomnim than 4,500 harum adit verferspere Ambatovy will document artefacts.

Between 2005 quist quidunt ibeaqui reriti prerorp am reprate molorro the work and findings, occae which and 2010orehendenim in areas between ium voloreperro ea dendi solendi genducil intbyipicto are authenticated two Moramanga and Toamasina Malagasy dolupturiae archaeologists non perfernam assusteam et pedi verferis vercipi the found 4,207 clay quam utem nullum tatiorio. and Itatibe atiosto appointed by the government sacred stone discovery potteries 192 imported volestrum fuga. Itatio bla This is a caption this is a caption ceramics. experro eserum of Madagascar.

Amongque the etus 262 duntur millupt aquiasfew previous cultural heritage corepudandit As there had been sites cataloguedmagnien were 126 diciis dita ditatio totatur, queofnamuscidit sites, remains 22 ancient autemol uptiorro quatium fugiae. data Ovit archaeological archaeological studies andsum historical litassequias essussites, ut faceri sam, 23 burial 55 sacred sitessequi and autae sequi quehas sit villages, linked to theomnisquid region, theeosanducid mine project eum et est, quis que pel etur? dempore hentius esequos et ut ex expeliam

SENMIN With a history that dates back to the late 1950s, Senmin International of South Africa is a mining chemicals manufacturer and services provider.

Senmin maintains headquarters in Johannesburg and a state-of-the-art manufacturing facility in Sasolburg.

The company currently services Namibia, Zimbabwe, Zambia, DRC and Botswana in addition to South Africa, and is branching out into Ghana, Tanzania, Madagascar, Morocco and Egypt.

With strategic partnerships in place with global mining leaders such as Anglo American, Impala Platinum, Lonmin, Sasol, Rio Tinto, Xstrata, BHP Billiton and now DMSA, Senmin is rapidly becoming the preferred flocculant supplier in Africa.

The Senmin polyacrylamide plant is the world’s first industrial scale manufacturing facility

where biotechnology is used to manufacture polyacrylamides. It’s a zero effluent plant with an energy consumption that is considerably lower than other processes.

Apart from flocculant for tailings treatment, Senmin’s flotation products aid in the beneficiation of platinum, diamonds, coal, gold, uranium, nickel and copper.

Senmin upholds ISO9000:2003 and 9001:2000 certifications for quality management systems, five-star accreditation with a NOSCAR award for safety in 2011 and ISO1400 and 1401 accreditation for environmental management.

The company maintains internal oversight of its supply chain with all purchasing and logistics management taking place in Sasolburg.

E. enquiries@senmin.co.za www.senmin.co.za

BE EMEA| |952 spECIAl REpoRt

Present throughout the African continent

Fan Coil Air Treatment Control

Edmonton Electric has been serving the Edmonton area since 1956 in the Construction, Design Build, and Service industry. Safety and customer satisfaction is our goal for every project.

Brent Connell

Partner, PEC, CME, General Manager bconnell@edmonton-electric.com

Steve Smith

Partner, CME, Service Manager ssmith@edmonton-electric.com 8011 Argyll Road, Edmonton, Alberta, T6C 4A9

T: 780-463-4911 | F: 780-463-8233

Chiller Heat Pump

Few main customers  SIRTE OIL COMPANY (LIBYA)  SHELL (QATAR)  ESSO (EXXON MOBIL TCHAD)  SONATRACH (ALGERIA)  SNC LAVALIN (ALGERIA)  DYNATEC (MADAGASCAR)  TECHNIP (NIGER)  SHERRIT INTERNATIONAL...

(MADAGASCAR)

We are representative of CARRIER® products. We strive to provide high quality products, spare parts and aftersales services.

Supply of heating ventilation, air-conditioning and industrial refrigeration systems. Engineering and audits, systems design, maintenance contracts, startup, commissioning.

Contact us: Marseille (France) Tel. +33(0)4 91 69 12 12 georges.sapet@ldfs.com engineering@fact.ldfs.com

C NS Sarl Sells representative in Madagascar of: DES- CASE Corporation filters:

Desiccant Breathers Dependable lubricant protection features color

Committed to Predominant Services, consistently conform to the specification & contractual requirements agreed in the supply of various mechanical & electrical materials for Nuclear Power Plant, Mining & Petro-chemical Plant since 1995.

Mechanical Processed Products Pipes, Fittings & Valves Various Spare Parts & Components Electrical materials & Explosion-proof Equipments, etc.

Contact : Head office, South Africa : +27 82 856 1511 Office in Korea : + 82 (070) 8226 1511 E-mail: wooree@telkomsa.net

Fluid Handling Our flow Guard line of fluid handling products MONOPOL Paints Marketing by a responsible engineer of a full range of technical paints, chemicals, surface preparation products and binder systems.

Use for industry, refinishing and building On demand: Specific paints, carrying out of personalized tints…

Phone/Fax: 00 261 20 53 311 25 | 00261 20 53 339 95 Mail: cns@moov.mg | cnsmonopol@moov.mg

AmbAtovy

environment team

“internAlly we’re tAking on the role of ensuring sociAl responsibility right Across the project” 36 sacred stones, the oldest of which date back to the 13th century and the most recent to the 19th century.

Ambatovy aims to contribute to a broader understanding of history by sharing the results of its work and submitting them for discussion. In 2011, an international conference and workshop entitled Sociocultural Archaeology and Anthropology from the Mangoro to the Ivondro presented the discoveries made between Toamasina and Moramanga by Ambatovy during the construction phase to an audience at

the Malagasy Academy in Tsimbazaza, with the aim of also initiating a debate on excavation strategies and improving archaeology in eastern Madagascar.

In conclusion, Burt Davis comments that corporate social responsibility is relevant to everyone in the organisation, not just the CSR department. “In Ambatovy it is everyone’s business—it’s not just down to one department, and this is something that we’re trying to press home to everyone. Internally we’re taking on the role of ensuring social responsibility right across the project.”

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E

ven before the start of the construction phase, a major concern of the Ambatovy Project was the preservation of the cultural heritage of Madagascar, one of the components to be considered in obtaining the environmental permit.

The population showed its deep attachment to ancestral values during A mbatov y ’s sur veys a nd public consultations. Ambatovy did everything during this stage to honour the trust of the population. Cultural and religious sites and archaeological remains have been spared from any form of degradation. In addition, in order to safeguard the integrity of the cultural heritage, Ambatovy decided to preserve them during construction. Without this precaution some sites of enormous value, in terms of understanding Madagascar’s past, would have been lost forever.

Today, Ambatovy has not only fulfilled its mission of preservation but has also contributed significantly to improving the knowledge of the history of Madagascar and in particular the eastern region between the mine in Moramanga and the plant in Tamatave. Hundreds of archaeological sites covering the period from the ninth to the nineteenth century were updated. The archaeological team was able to collect over 4,000 relics, most of which are composed of local pottery shreds, imported pottery, glass and bones.

A first analysis of these remains showed physical evidence of the importance

98 | spECIAl REpoRt

Ambatovy

Respecting cultural heritage Ambatovy has contributed significantly to improving the knowledge of the history of Madagascar written by: J.A. Rakotoarisoa and Erick Randrianasolo

NOROSOA

“

“

INTERPRETATION ANDTRANSLATION

In addition to Teaching and Continuous Training, we also provide interpretation work in English-French, FrenchEnglish – i.e., liaison, conference (simultaneous), consecutive.

Email:nrakotomena@gmail.com Tel:261 32 07 715 35 or 261 33 14 240 36

ARO: the Leader of the insurance market in Madagascar ARO combines experience and expertise through its 37 years of existence.

ARO is member of GLOBUS: a pan-African network of insurers that supplies a global offer of insurance products/ services to multinational clients with interests throughout Africa ARO is rated AA by GCR (South Africa)

“Live and work with serenity”

AmbAtovy of trade between the rAJONSON rAkOtOmeNA NOrOSOA highlands of the hinterland norosoa is a small company offering language services. with the east coast. These our current contract with ambatovy mainly consists in findings are currently providing training to ambatovy employees in using the being temporarily stored english language, but we have also provided translation in a small area of CEREL work under the same contract.

(Centre for Ethnology and the company has various teachers/trainers capable of delivering training to a variety of skill levels. our teaching Linguistics Studies and staff are mostly postgraduates with academic and Research) at the University professional training, as well as years of experience. of Toamasina. norosoa company also holds many years of experience Fina l ly, for 2013, in interpretation and translation work and is qualified as A mbatov y pla ns to authorized by the courts and tribunals of Madagascar. construct a building nrakotomena@gmail.com to house the museum collection and make it available to researchers and the general public. These substantial findings were made through the implementation of a specific methodology at each stage of construction. Two major imperatives had to be addressed: avoid site spoliation without delay to construction. To this end, the archaeological team informed the local population about the imminence of the work and verified that all sociocultural barriers were lifted. For sensitive monuments such as burial sites, expiatory rituals were organized to ask for the ancestors’ blessing and protection. a selection of relics collected The arrival of earthmoving equipment by the archaeological team

“AmbAtovy plAns to construct A building to house the museum collection And mAke it AvAilAble to reseArchers And the generAl public” spECIAl REpoRt | 101

The results of the archaeological works will be the subject of a scientific publication

AmbAtovy

4,000+ number of relics the archaeological team was able to collect to involved areas was always preceded by the archaeological team to report the monuments to those responsible for construction. A permanent dialogue between the Ambatovy team and that of SNC-Lavalin and its contractors helped to establish a climate of trust.

Site va lor isat ion work a nd archaeological investigation must be pursued in order to obtain the social and cultural license from the population to whom the company is accountable. It is important and urgent to show them that we have fully complied with all their requirements. All cultural and sacred sites have been identified and inventoried. The Ministry of Culture and Heritage is expecting concrete action for the protection and valorisation of the sites, the most important of which will be subject to rehabilitation or even a development project with the involved communities.

The results of the archaeological works will be the subject of a scientific publication which is being developed

by Professor Jean-AimÊ Rakotoarisoa who created and led Ambatov y’s archaeological team between 2005 and 2009.

spECIAl REpoRt | 103

The environmental

imperative The entire Ambatovy project is located in a biodiversity hotspot in Madagascar, so the minimisation of its impact and the restoration of the mine site are interlinked

written by: Becky Done & Martin Ashcroft research by: Robert Hodgson

AmbAtovy

T

o approach the inevitable environmental issues that accompany a project of this size and scale, Ambatovy is employing two strategies.

The first is to mitigate impacts through responsible engineering and technology; and the second is to offset residual impacts with conservation efforts.

Management plans have been produced in respect of water, air, noise, soil, waste, flora, fauna and aquatic resources, and are designed to preserve the environment and advance scientific knowledge. The organisation has committed to implement adaptive, environmental management plans to ensure compliance with national and international standards throughout construction, operations and closure; to minimise all residual impacts through the implementation of a best-practice mitigation hierarchy and offsets programme; to manage environmental risks by enhancing stakeholder involvement through transparency, continuous consultation and timely feedback with the public on emerging environmental issues; and to track operational performance and emissions to ensure that compliance levels are met and that operational control systems are functioning optimally.

Ambatovy works in close collaboration with the ONE (Office National pour l’Environnement), which must approve all environmental plans before implementation.

ONE reviews Ambatovy’s performance on a regular basis through intensive field verification, making recommendations

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Industrial Magnetic Solutions

IMT Vertical Magnetic Conveyors are used to convey ferrous materials vertically instead of using traditional bucket elevators or incline belt conveyors.

• Power fluctuation or failures will not affect the magnetic field • Guaranteed magnetic strength for the life of the application • Minimal footprint compared to traditional conveying systems • No power consumption for magnetic bed • Low maintenance • Simple to service • Minimal capital cost • Dust suppression • Reduced product degradation

Innovative Magnetic Technologies Inc. #1 3308 Appaloosa Rd. Kelowna, BC Canada V1V 2W5 Tel 250-491-5806 | Fax 778-753-6234

www.imt-inc.com

AmbAtovy for improved compliance and imposing sanctions if warranted.

“The entire project is located in a biodiversity hotspot in Madagascar, so the minimisation of our impact and restoration of the mine site are interlinked,” explains environment manager Andrew Cooke.

“The fundamental point to note is that we apply a tool called the ‘mitigation hierarchy’ which is the standard approach required of projects funded by the World Bank, for example. This means that firstly,

we do our best to avoid impacts—and that includes the project design; then we try to minimise any impacts from our construction and operations; and finally we will restore any impacted sites.”

Ambatovy’s Biodiversity Management Plan (BMP) encompasses scientific conservation actions for orchid targeted flora, fauna and aquatic resources, using the following key objectives: no net loss of biodiversity and preferably a net gain; no loss of species and no net reduction in

INNOvAtIve mAgNetIC teChNOlOgIeS INC. iMt designs, manufactures and markets innovative permanent magnetic equipment for industrial markets worldwide. iMt supplied ambatovy with six permanent magnetic conveyors that vertically convey the nickel and cobalt briquettes. iMt’s vertical Magnetic conveyors are utilized to convey ferrous materials vertically instead of using traditional bucket elevators or incline belt conveyors. some of the advantages of this conveying method are; minimal footprint compared to traditional conveying systems, guaranteed magnetic strength for the life of the application, no power consumption for magnetic bed, low maintenance, simple to service, minimal capital and installation costs and reduced product degradation. the

height of the vertical Magnet conveyors supplied to ambatovy ranged from 6,500mm (21ft) to 21,100mm (69ft). the iMt product line consists, but isn’t limited to, suspended plate Magnets, cross belt separators, Magnetic head pulleys, plate separators, Xhd in-line chute separators, vertical Magnetic conveyors, drum separators, vibratory Magnetic separators, and Magnetic rakes. iMt’s product line is continuously expanding due to its innovative approach to solving industrial challenges. iMt equipment is available in ceramic (ferrite) or rare earth (standard or high temp) configurations. www.imt-inc.com

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Electrical Services

... to the UK and Worldwide.

Different languages, different measurement systems, different business cultures... whether it’s within Europe or around the world, international contracts present unique challenges.

R&M’s worldwide distribution network is far reaching with branches in Kazakhstan, Azerbaijan and in Dubai UAE, we are successfully servicing major International companies with long-term contracts covering oil & gas exploration and production, petrochemical applications, marine maintenance and mining.

“R&M ‘Exports Division’ has expanded its already vast global list of export destinations in successfully securing electrical contracts for the largest nickel mine in the world – Ambatovy – based in Madagascar”.

R&M Exports Division Unit 1 & 2, 362A Spring Road, Sholing, Southampton Hampshire SO19 2PB Tel: 023 8068 5668 Fax: 023 8068 5673 Email: exports@rm-electrical.com www.rm-electrical.com

« Your

YOUR FRESHNESS « Your freshness I S Ois our U Business” R BUSINESS OCEFROID is an HVAC firm located in

OCEFROID is an HVAC firm located in Toamasina, Madagascar, specialized in Toamasina, Madagascar, specialized installation and maintenance. in installation and maintenance.

We developed a strong partnership with Ambatovy Project since 2009 and OCEFROID is now handling more than 70% of HVAC facilities for the entire project.

We developed a strong partnership with Ambatovy Project since 2009 and OCEFROID is now handling more than 70% of HVAC facilities for the entire project.

E-mail: gefrank2000@yahoo.fr Office: +261 20 53 307 02 Mobile: +261 32 07 936 79

E-mail : gefrank2000@yahoo.fr Office : +261 20 53 307 02 Mobile : +261 32 07 936 79

OCEFR Toama installa

We dev Ambat OCEFR of HVA

E-mail Office : Mobile

AmbAtovy

lemur, propithecus diadema

“one exAmple of AmbAtovy’s work to preserve biodiversity is its lemur mAnAgement progrAmme” the population of any endangered species; minimised impacts on flora, fauna and aquatic resources; increased conservation of rare habitats; priority habitat viability assured by maintaining or increasing ecosystem connectivity; and close links between Ambatovy’s biodiversity activities and regional initiatives.

One example of Ambatovy’s work

to preserve biodiversity is its lemur management programme, which is designed to maintain population viability of Madagascar’s most famous inhabitants within the mining area. To do this, Ambatovy has been employing the capture, mark and radio-track technique. Since 2007, a total of 140 lemurs belonging to seven species living in and around the cleared forest

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COWAN INTERNATIONAL Since 1954 Cowan International’s reputation has been built on delivering solutions and surpassing expectations.

Our clients keep coming back to us with their staffing needs because they know we are committed to finding qualified, top performers to fill their roles. Finding the right caliber professional to fill a job at the right time is our specialty and it’s what our clients demand.

Cowan works in partnership with both clients and candidates to put people in their sweet spot. We know candidates fear getting lost in a sea of applicants.

Our global team collaborates 24/7 to represent your best interest. Whether you are in Thailand, Brisbane, BC, Washington

or Johannesburg we have professionals at arm’s length, ready to answer your questions and get you into your dream job.

We pride ourselves on building long-term relationships and providing world-class service. Cowan doesn’t just get the right person in the right job. We make travel arrangements, book medicals, facilitate family adaptation. We stay in touch long after a position has been filled, and we know when our clients are about to embark on a new project long before they call us.

Cowan provides human resource solutions to the global mining, metals and resources community. www.cowaninternational.com

Cowan International is a Canadian owned mining recruitment agency serving clients across the globe since 1954. We specialize in locating top talent for hard-to-fill positions. Long established, Cowan is a leader in recruitment for domestic and overseas mining projects and operations. www.cowaninternational.com

AmbAtovy

technician tracking lemurs

and refuge areas have been equipped with habitat connectivity, allowing lemurs to radio collars. This has enabled technicians cross trails and roads cut by mining activity. to follow and monitor 181 individual lemurs A community-level assessment also helped (carriers of radio collars and members of evaluate local hunting pressure on wildlife the groups without collars) and design suitable refuge from 48 groups. This radioareas. tracking methodolog y Since 2009, a total of enables the monitoring 35 new-born lemurs have of lemur movement and been observed within behaviour and determines Ambatovy’s conservation whether they are able to areas. Of these, 16 came number of lemurs from groups that were adapt to a new home range currently being displaced to special refuge over time. Tree-top bridges monitored areas. The relatively high were installed to maintain

181

spECIAl REpoRt | 111

AMBATOVY AmbAtovy ullamco Ambatovy feature text to go here... veniam, quis nostrud number of recent offspring strategyexercitation for the endangered Lorem ipsum dolor lemurs sit amet, consectetur laboris nisi utnorthern aliquip ex ea commodo indicates that these shrew tenrec is adipisicing elit, sedadapted do eiusmod tempor consequat. Duis aute developed. irure dolor in have successfully also being to their new environment. incididunt ut labore et dolore magna aliqua. reprehenderit in voluptate cillum To ensurevelit theesse continued A y minim has veniam, also quis nostrud dolore eu fugiat Utmbatov enim ad nulla pariatur.

Excepteur viability of amphibian and developed biomedical reptile species affectedsunt by exercitation ullamco laboris nisi ut aliquip sint occaecat cupidatat non proident, h a ltcommodo h m on it or i n gDuis aute irure in culpa qui officia the deserunt project,mollit Ambatovy’s exe ea consequat. anim id systems to help ensure amphibian and sitreptile dolor in reprehenderit in voluptate velit est laborum. Lorem ipsum dolor amet, the long-term survival management esse cillum dolore eu fugiat nulla pariatur. consectetur adipisicing elit, sedprogramme do eiusmod of lemur sint populations carriesut out pre-clearance Excepteur occaecat cupidatat non tempor incididunt labore et dolore species inventories and proident,by sunt culpa qui officiathe deserunt magna aliqua. Ut enim ad minim veniam, affected theinproject. mouse lemur, microcebus salvages ullamco live animals mollit animthree id est laborum. laboris Thirty species Lorem ipsum quis nostrud exercitation to conservation refuge areas. of mammals than lemurs are also dolor sit amet,other consectetur adipisicing elit, nisi ut aliquip ex eaforest commodo consequat.

Between and 2010 the program sed do eiusmod labore Duis aute 2007 irure dolor in reprehenderit in monitored by thetempor project,incididunt includingut endemic salvaged velit more reptiles et dolore aliqua.

Ut enim ad minim voluptate rodent andmagna carnivore species.

A conservation essethan cillum14,000 dolore eu fugiat

VIVO ENERGY MINING: DIGGING DEEP TO PROVIDE CUSTOMERS WITH BEST OVERALL OFFER ON THE MARKET Vivo Energy is the new power behind the Shell brand in Africa. A joint venture between Vitol, Helios Investment Partners and Shell, we are here to offer customers the very best of Shell’s products and services, including supply reliability, technical expertise, and unmatched customer service, in 13 African countries (and counting). In doing so, we employ – and seek to share – industry-leading health and safety standards, and are committed to delivering Shell’s high-quality fuels and lubricants in an environmentally and socially responsible manner.

We are particularly adept at servicing the mining sector, offering a comprehensive range of fit-for-purpose fuels, lubricants and greases to some of Africa’s biggest mining houses for the last 80 years.

Drawing upon our innovative services and technical expertise, we are constantly looking to adapt our offer to our customers’ evolving needs; to hone in on exactly those products and services which make all the difference to our customers’ businesses, and by the same token, to our continued market leadership.

“We look upon Vivo Energy not just as a reliable fuel and lubricants supplier, but as a partner of choice – a company that goes beyond the call of duty, putting their technology leadership and technical expertise at our disposal in helping us reduce our costs, get better use from our machinery, and improve the overall efficiency of our operations,” says Ambatovy.

www.vivoenergy.com

NOVEMBER 2012| |1132 spECIAl REpoRt

MINING AND MINERAL PROCESSING EQUIPMENT ITT has over 160 years of experience in providing lined slurry and process pumps, valves, control and preventive condition monitoring solutions for mining and mineral processing.

ITT has an extensive installed base of Goulds Pumps equipment at Ambatovy mine site and plant site, mainly to pump abrasive slurries and acids.

ARIS in Madagascar is ITT Goulds Pumps distributor and provides fluid technology and industrial process equipment, parts and services.

Aftermarket Services Together, ITT and ARIS are partnering in Madagascar to provide plant performance solutions for rotating equipment locally and to best serve Ambatovy. www.gouldspumps.com

AmbAtovy

the endangered mantella aurantiaca

(54 species) and amphibians (55 species) and it will continue until forest clearing operations have been completed.

In particular, a specific conservation programme has been developed for the endangered frog golden mantella (mantella aurantiaca). Ambatovy has supported regional surveys to identify the distribution of the frog and its critical habitats and is

working with experts to identify the steps required to maintain viable populations in the mine area. Ambatovy considers mantella aurantiaca as a flagship species for its conservation efforts.

As well as its animals, Madagascar is also home to some rare or unique species of plants, so Ambatovy also has a flora management programme, too. Excavating

“A specific conservAtion progrAmme hAs been developed for the endAngered frog golden mAntellA (mAntellA AurAntiAcA)� spECIAl REpoRt | 115

YOUR RISKS, OUR EXPERTISE !

TARGE RISQUES MANAGEMENT is the first and most important private organization in risk management in Canada.

Recognized by the ministry of education, the Canadian military forces and the Nuclear power plant, our team of experts and teachers is made of competent and experienced emergency responders. Our engagement to our customers is to provide them with the highest level of protection against hazard by an integrated offer of expertise, training, emergency response, research and development. The holders, the upper management and the team members know that our customers are better protected.

Phone: 1-450-258-4460 | E-mail: info@targerm.ca | www.targerm.ca

A company working in partnership with Ambatovy to produce service and quality to the industry.

We are a company with high levels of management to ensure industry standards are conformed to at all times Specialities • Health and safety • Site management / supervision • Full Documentation and analyses of project Areas of working • Mainstream Construction - Independent teams able to undertake any level of construction • Mainstream Electrical - High Medium to Low voltage, Instrumentation, IT/fibre fire systems • Mainstream Mechanical HVAC and all pipework

www.mainstream-group.org

I N T E R N AT I O N A L

AmbAtovy the ore requires forest tArgeS rISk mANAgemeNt clearing, so, with the help targes risk Management is proud to train all emergency of the Missouri Botanical responders working on the ambatovy project. We are leaders Garden, Ambatovy has in industrial risk management. our integrated approach of identified plant species expertise, training and interventions provides our customers known to exist only within with responsible protection solutions that allow them to the mine footprint and achieve better results. your risks, our expertise! www.targerm.ca one or two other sites in Madagascar. These plants are categorized as Species of Concern (SOC).

For these SOCs, Ambatovy has developed a comprehensive ex-situ conservation program including whole-plant salvaging, seed collection, plant propagation, and the development of living collections for progressive rehabilitation of the mine footprint. Searches for viable populations of SOCs are also being conducted in the mine conservation forests. This search effort is ongoing and has resulted in the progressive reduction in the number of species requiring ex-situ conservation. From an initial list of 173 SOCs, the number still requiring special salvaging has been reduced to eight species and is expected to descend to zero as the offsite surveys continue.

Another area of environmental concern for Ambatovy is waste minimisation and recycling. Where recycling options aren’t orchid

“As well As its AnimAls, mAdAgAscAr is Also home to some rAre or unique species of plAnts” spECIAl REpoRt | 117

Our proximity to the mining world has helped our Cegep to recently develop two major training projects for the Xstrata Nickel mining corporation in New Caledonia, Koniambo project, as well with the Sherritt Corporation for its Ambatovy (Madagascar) project. This was one of our main projects, and further, we continued working with Sherritt for implanting their training center in Toamasina.

AmbAtovy

plant conservation

available, the responsible Waste at the plant site is disposal of waste is carried mainly mineral pollutants ranging from acids to out. The project complies alkalines. Like all mining with all the international projects, the operation regulations relating to species of concern generates tailings, the hazardous waste, which (soc) identified within sterile material remaining is treated appropriately— the mine footprint after the nickel has been sometimes by incineration, extracted. These materials sometimes by export. On the whole, however, the are neutralised so they’re no project isn’t a great generator of hazardous longer acidic, and then they are pumped to a waste: essentially earth is being extracted secure tailings lake which will eventually be from the land and processed into nickel, replanted and covered over with vegetation and the project is not generally dealing at the end of the project life. with complex organic pollutants.

Ambatovy does generate water waste,

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Purcee has supplied equipment to Africa, Central America, South America, North America, Asia and Eastern Europe

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Phone: +1-403-660-0395 | e-mail: Les@purcee.net

AmbAtovy

orchid

“After the mine closes All AreAs will be restored And replAnted in order to blend in with the surrounding forest As fAr As possible” which is enriched by a number of different minerals because of the extraction process.

This is discharged into the ocean using a diffusion mechanism, or outfall. By this means a high dilution factor is achieved, which means Ambatovy has a relatively small zone of impact from the outfall— only a matter of tens of metres—and outside that zone, levels of minerals are potentially reduced to the ambient levels of seawater.

“This way we avoid impact in coral reefs and fisheries,” confirms Cooke.

Mine closure, of course, is always a major concern in terms of aesthetics and functionality. “We have a mine footprint of about 1,500 hectares which is a series of pits, roads and other areas,” says Cooke. “After the mine closes these will all be restored and replanted in order to blend in with the surrounding forest areas as far as possible.”

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Frog, mantella crocea

AmbAtovy There are a lot of technical challenges involved in this process, however. Ambatovy is working on an ultramafic site where the soils are very alkaline, so it is taking special measures to restore soil and then re-plant it with native species on an ongoing basis.

Ambatovy also has in place a comprehensive communit y-based restoration plan which looks closely at the restoration of the mine site in terms of benefits to the region. The south end will consist of community forest and production forest, and the north end will be biodiversity forest, designed to replace loss of ecological function—in other words, it will be habitat for lemurs and other wildlife. The mine site is surrounded by an area of forest that is around three times the size of the mine site footprint itself, and this forest is unoccupied.

“It’s near-primary forest and it will be maintained as a conservation area,” says Cooke. “The fact that we have a green ring around the footprint will help restoration over time, and this is an important part of our restoration strategy.”

Ambatovy is open to visitors, so if you want to see the operation for yourself, you can. Welcoming visitors helps to consolidate the process of transparency.

Before setting out on a guided tour, visitors are briefed on Ambatovy’s activities as well as its commitment to social and environmental stewardship. for more information about ambatovy visit: www.ambatovy.com

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cAnAdiAn focus:

All FoR onE & ONE fOR ALL Despite the contribution mining makes to any economy there are always plenty of hoops to be climbed through as we learn in conversation with one of Canada’s representative bodies written by: AlAN SWABy research by: rOBert hODgSON

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ontario mining association

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Detour Gold has the largest undeveloped gold reserve in Canada

ontArio mining AssociAtion

I

t’s an outstanding achievement for any organization to survive for more than 90 years without any significant change in role. It shows it must be giving its users exactly what they are looking for. In this particular case, the organization referred to is the Ontario Mining Association (OMA) which, according to its president Chris Hodgson, has always had a mandate to keep the mining industry competitive.

“We lobby on behalf of members,” he says, “by presenting a collective face on issues such as energy, the environment, health & safety and particularly in the search for an efficient regulation process.”

In Ontario, mining puts $10.7 billion directly into the economy and much, much more when all the indirect contributions such as lawyers and brokers are added into the mix. So you’d think that an industry which contributes so much to the economy would be shown the red carpet by the regulatory bodies. But it isn’t. According to Hodgson, it now takes the best part of 10 years from identifying a minable ore deposit to going into production. In one instance, it took the government four years simply to nominate someone to act as overseer of environmental matters. That was even before the lengthy process of applying for permits began.

Part of the problem is that each Canadian province has control over who does what and where. There is some interest within Canada’s federal government in the strategic issues associated with mining but the nittygritty of issuing exploration and mining permits lies with provincial legislators. As

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such, the mining industry in each province has its own representative body helping members make their case to the bureaucrats.

“One of our most important and pressing roles,” says Hodgson, “is to get that approval time period compressed. If we don’t get development times down by half to around five years maximum, Ontario will not reap the full benefit of the current window of opportunity and nor will Canada.”

The window of opportunity he is referring to is the super cycle of demand when real prices are pushed higher. It happened in the 1880s when the United States was developing its roads, railways and cities. It happened again after WWII and we are right in the middle of another at the moment as China builds three new cities the size of Melbourne each year and while India and Brazil are just as busy developing into industrialized economies. “Outside of these peaks,” says Hodgson, “although the price of commodities might appear to rise, their relative value has actually trended downwards for the past 200 years. We are in an upward cycle at the moment but economists estimate that we have another 20 to 25 years and then the window will shut again. The country can’t afford to spend half of this time deciding what it should do.”

On the face of it, the government is saying the right things about encouraging new mining ventures and there are targets for opening up new mines over the next decade. But after a number of very high profile ecological problems, there is understandable caution and nobody wants to be associated with a legacy of environmental issues. Nevertheless, “mines can be built and opened within three or

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ontArio mining AssociAtion

vale has launched a massive investment program in ontario

four years,” says Hodgson, that there are significant chromite deposits there – “so it’s just not acceptable the only known source in that the application and permit process takes as long the whole of North America. or even longer.”

But approval for the $3.3 billion development The fancifully named Ring of Fire (supposedly has not come easy. direct contribution chosen by a Johnny Cash fan Despite the potential of of mining to ontario’s transforming that remote rather than any indication economy part of Canada, in the of volcanic activity) is a same way that oil sands case in point. Located about transformed Alberta, the 1,500 km northwest of Toronto in very inhospitable country, this project has had plenty of environmental is a 4,000 square kilometer swath of boreal and social hurdles to clear. In fact, from forest, rich in valuable minerals such as the outset the site was picketed by a group nickel, copper and platinum group metals. of First Nation activists angry over a lack The first samples were taken in 2007 and of consultation. For a while, access to caused an immediate stir. It’s now known the region was prevented by blockading

$10.7 BIllION

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the frozen Koper and McFaulds Lakes which were the only available landing strips at the time. Even if events progress smoothly, it will still be at least another three years before the mine becomes productive; a timescale, according to OMA, that is far too long.

But it’s not just regulatory matters that keep the very lean OMA organization busy. It’s hard to believe that the

mining industry is now only bettered by the teaching profession in terms of safety. The industry has a target of zero accidents and has already managed to make a 96 percent improvement from where things were at their worst. The OMA has been the pivot around which a tri-partite strategy has been developed between the government, labor unions and mine management to develop a

“One of our most important and pressing roles is to get the approval time period compressed”

Osisko Mining poured its first gold at the Canadian Malartic mine on 13 April 2011

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ontArio mining AssociAtion

bestech’s engineering solutions help save cash and the environment

regime of training, vigilance and nonnegotiable adherence to H&S rules.

“We are able to keep our staff down to just seven,” says Hodgson, “as most of the policy work is decided at committee level by representatives of the 79 member companies we represent. It’s here where we thrash out such matters as improving energy efficiency and how best to minimize environmental impact.”

Although the mining industry is a very important source of employment - 27,000 individuals directly and as many as 100,000 indirectly – the OMA knows how important it is to maintain public support. The public affairs committee has a program of events designed to engage the public in the mining industry. A Teachers’ Mining Tour takes

place an annual basis so that teachers can learn more about the realities of modern, high tech, environmentally responsible mining in Ontario.

Those with a greater interest in the arts can also be involved thanks to the annual film making competition run by the OMA (So You Think You Know Mining) with cash prizes of more than $36,000 for the best entries. But of course, the greatest cash prize will be a successful mining industry which will benefit not only Ontario but the whole of Canada. for more information about ontario Mining association visit: www.oma.on.ca

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canadian focus:

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coal association of canada

CAmpAIgnIng

fOR cOAL Ann Marie Hann, president of the Coal Association of Canada, talks about changes in the regulatory environment which could see more coal mines looking to export

written by: mArtIN AShCrOFt research by: rIChArD hAlFhIDe

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D

espite the activities of Nova Scotia and Saskatchewan) depend environmental pressure groups on coal for 60 percent or more of their and the growth of alternative electricity generation. “Notwithstanding energy sources in recent years, that, the federal government seems intent coal remains the primary fuel on moving with its climate change agenda,” for electricity generation in many parts of the said Hann, “and has identified coal power world. Canada is in the privileged position of generation as one of the first issues it wants having almost nine billion tonnes of proven to tackle. It came out with draft regulations coal reserves and a vast untapped potential last year which, for all intents and purposes, of another 193 billion tonnes. Annually, the could shut down several coal fired power industry contributes over $5 billion and plants in Canada, mainly because of the 42,000 jobs to Canada’s economy. time frame it is suggesting.”

The legislation, due to take effect in July, The organisation responsible for representing the interests of the coal 2015, sets a limit of 45 years for the life of industry in the country is the Coal a power plant built before 2015. At the end Association of Canada, of that time (or the end of whose members are by their current commercial no means confined to the contracts) they will either 23 coal mines currently have to meet stringent operating there. “We emissions levels, convert to represent the full spectrum natural gas or shut down.

Many of Canada’s power of companies engaged in the coal industry,” said plants are approaching that canadian coal industry’s CAC president Ann Marie age already. “The first plant contribution to the Hann, “everything from that would have to come economy exploration, development under that test will have to and production of coal to be compliant by 2016/17,” transportation via the railways, terminals said Hann. “The only way that coal can and ports, and other suppliers of goods and comply with the regulations (and it’s the same in the US as well) is with carbon services to the industry.”

The biggest issue relating to domestic capture and storage technology, but right coal production in Canada at the moment, now there is no commercial technology she explained, was new draft legislation available to make that happen. By default which threatens the future of a number we’re really forcing power plants in Canada of coal fired power stations. While some to convert to natural gas.

“We’ve been working with the electricity provinces are fortunate to have alternative energy sources like hydro or nuclear power, sector trying to explain to the government three of Canada’s ten provinces (Alberta, that the industry supports the objective

$5

BIllION

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Coal Association of Canada

Ann Marie Hann - President of the Coal Association of Canada

canadian national railway is one of two national railways in canada which help get coal to market

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to reduce greenhouse gas emissions,” said Hann, “but we have to do this in a little more orderly and systematic fashion.”

She points out that there are significant resources left in the ground and that the coal industry generates substantial revenues for the government as well as considerable employment. “Most of this employment is in rural areas where there are really no alternative employment opportunities. So what we’re asking of the government is that, although we are prepared to apply the toughest standards known globally, to go beyond that, to set a standard that is absolutely impossible for the industry to comply with either now or in the near future is really not an ideal position. Right now the whole discussion is environmental, which is obviously a very important aspect, but it has to include economic and social considerations as well.”

There are two forms of coal mined in Canada, namely thermal coal used in power generation and metallurgical coal used in steel-making. ‘Doing Business in Asia’ was a prominent topic at the Coal Association of Canada international conference in Vancouver, British Columbia, held in early June of this year. Speakers included a steel producer from Japan and a buyer of both thermal and metallurgical coal from China.

“Environment Canada’s proposed regulations are going to change the dynamic of the domestic coal industry in North America,” said Hann, “because until now most thermal coal produced in Canada has been used domestically. But now we’re going to see more exporting of Canadian thermal coal.”

coAl AssociAtion of cAnAdA

canada’s high quality, premium low-sulfur coal is sought out by consumers around the world

Exporting is the logical alternative, of course, but it’s not always as straightforward as it might appear. The location, nature and scale of thermal coal production in Canada limits the industry’s ability to be agile.

“The challenge with the existing mines is that they weren’t established with the idea of exporting, so they have limited access to critical transportation infrastructure, such as rail and ports. Most of these mines are located next to power plants because those are their customers. It might seem like an obvious answer to tell mines to export if they can’t sell their coal locally, but it’s not

going to be economical for some of them to export. As a result, they’ll simply have to shut down.”

There has been investment in infrastructure over the last few years, she said, and governments and the railways and terminals have been increasing capacity, but the market potential for export to Asian countries is such that much more will be needed. “Infrastructure is high on our list of things that we need to address if we are going to capitalise fully on the Asian market potential,” she said. Further investment could be seen as a business opportunity for

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Coal arrives by train at Westshore Terminal near Vancouver British Columbia, Canada. Â Efficient rail and port networks are critical to get Canadian coal to Asian markets

coAl AssociAtion of cAnAdA

“infrAstructure is high on our list of things thAt we need to Address if we Are going to cApitAlise fully on the AsiAn mArket potentiAl” the ports and terminals, of course, “but given the magnitude of the number of dollars involved, they’ll likely need government support as well.”

There is plenty of coal in Canada to satisfy Asian demand, and new mines are also currently being built. In Alberta, for instance, Coalspur Mines Ltd. is constructing what it claims will be the largest thermal mine in Canada when it’s fully up and running in 2015. “They already have their rail and port contracts in place and are now looking to secure their markets,” said Hann. And Asia is ready to do business. After widespread flooding in Australia and Thailand over the past couple of years proved extremely disruptive, China in particular is keen diversify its sources of supply.

While new legislation is presenting domestic challenges that cannot be met, however, it is something of a doubleedged sword. The federal government just introduced measures to streamline the environmental regulatory process as part of its new Jobs, Growth and Longterm Prosperity Act. Where there is duplication or overlap between provincial and federal regulations, for instance, the federal government is now willing to defer authority to the province if it is satisfied

that a particular province can undertake a full and proper assessment.

“Many pieces of environmental legislation and regulations are impacted by the new Act,” said Hann. Environmental assessment, fisheries legislation, and water management are among many elements now rolled in under the umbrella of this new legislation.

“The Act will have a significant impact,” said Hann. “It goes so far as to put timelines on decision-making. It’s very positive news.”

There have been many horror stories about the time it takes to get some projects approved, but the new legislation should boost the confidence of mining companies and investors.

“The message we’re trying to get out is that the Canadian coal industry is open for business,” Hann concluded. “The prospects are very bullish over the medium and longer term.

We are producing a good quality product, we have governments onside from a regulatory perspective and we have the supporting infrastructure elements being worked on, so this all bodes well for a strong Canadian export coal industry going forward.” for more information about coal association of canada visit: www.coal.ca

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cAnAdiAn focus:

A REmARkABlE

vISTA

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coalspur

written by: gAy SUttON research by: rIChArD hAlFhIDe Over the next three years, Coalspur will start to bring North America’s potentially largest export thermal coal mine into production.

President and CEO Gill Winckler explains what makes this prospect so exciting

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The formation of Coalspur was based on a passion for finding the next big discovery

coAlspur

L

ike many mining companies, the formation of Coalspur was based on a passion for finding the next big discovery, and the lease holdings it has acquired in the coal rich region of Hinton, Alberta, seem to be living up to expectations. Listed on both the Australian and Canadian stock exchanges, Coalspur is scheduled to begin mine construction on the Vista Coal Project in 2013, and to bring its high quality, low sulphur thermal coal into production during 2015. Coalspur’s wider portfolio of coal leases near Hinton contains a good pipeline of further undeveloped coal prospects which should ensure the company’s longterm future in the region.

“Our priority at the current time is Vista,” said president and CEO Gill Winckler, “which will have an ultimate production capacity of 12 million tonnes of coal per annum over a mine life of 28 years.” This design is based on a feasibility study completed in January this year that demonstrated a marketable reserve of over 313 million tonnes of high grade export coal from a recoverable reserve of 566 million tonnes. “What that gives us is the potential for one of the largest undeveloped export-grade thermal coal projects in North America. We plan to develop the project in two phases which will enable us to adopt a graduated production profile to allow for the development of markets for our products. The two phases also provide us with the ability to efficiently and effectively obtain all the necessary regulatory approvals for the project.”

The economics of coal production are

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vista will operate as an open cut mine

“the geology is relAtively strAightforwArd, the resource is well understood And the processing is simple” very straightforward, and relate directly to the quality and depth of the coal, the mining method, and the cost of logistics to transport the coal to its destination market.

In all of these, Vista is very well placed as compared to other new thermal coal developments around the world. The coal seams at Vista start near the surface where mining is cheapest and they dip away gently at an average of 7o to the north east. “This

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geological advantage allows us to operate Vista as an open cut mine. We will have an attractive strip ratio over the life of the mine and a very low strip ratio for the early years, which will contribute considerably towards making Vista a low cost operation,” she continued.

From the logistics perspective Vista is close to the Canadian rail network. CN (Canadian National Railway) runs directly

coAlspur

Map of vista coal project

through Hinton on its way to the port of Prince Rupert on the west coast, and the company has signed a memorandum of understanding with CN to transport the coal 1,200 km to Ridley Terminals at Prince Rupert at very competitive prices.

Currently, Coalspur is planning to export 100 percent of its output to the major industrial regions of Japan, China and Korea, which are currently predominantly supplied from Australia and Indonesia. “An interesting point about this is that although you would not realise it from looking at a map, it’s a slightly shorter shipping distance to Japan from Ridley Terminals than it is from Newcastle, Australia.”

The financial prospects for Vista are therefore very persuasive, and

the financial prospects for vista are very attractive

the current market conditions amply illustrate this. Coal prices have fallen by some 25 percent over the last nine months, forcing many of the major coal producers to cut back on production and marginal operators to cease production completely. Prices are f luctuating at around US$87 to US$92 a tonne.

Set against this the FOB cost for Vista—the cost of producing the coal and transporting it to port—is just C$67 a tonne over the life of the mine, and will be even lower initially. “This is significantly better than most other new developments, so we’re very well positioned on the cost curve,” Winckler said. “Meanwhile, most analysts and industry specialists believe that prices have now bottomed out and

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Phase one will bring the mine into operation during 2015

coAlspur is well understood and the should slowly climb back processing is simple.” to around US$110 a tonne by 2015 when the Looking to the future, mine is scheduled to Coalspur properties in the Hinton area have a commence production.” expected mine good long-term pipeline The development of life of vista of coal prospects. Close Vista over the next six to Vista are two further years is being handled resources at much earlier in t wo phases, w ith detailed engineering for the first phase stages of development. Vista Extension currently in progress. The timeframe is a continuation of the Vista coal seam going forward is to gain final regulatory as it dips deeper, and this would require approval for phase one by the end of underground mining in the future. “We’ve the first quarter next year and then completed a concept study on Vista Extension which estimates that it should go into construction.

Pha se one, which w ill cost be able to provide a further 3.8 million approximately C$870 million, will bring tonnes per annum over 28 years. Next the mine into operation during 2015, year we will undertake further work on ramping up from a couple of million this area and begin examining how we tonnes of coal in the first year to five can integrate Vista Extension with Vista.”

Vista South, located some 6 km south million tonnes per annum by 2016. Phase two, costing a further C$370 million, west of Vista, covers approximately 23,000 will be primarily funded from phase one hectares and exploration has identified cash flow, and will increase production measured and indicated coal resources of to Vista’s ultimate design capacity of 12 471 million tonnes. In the longer term, the million tonnes per annum by 2018. company has two further lease holdings “We have a very robust project,” in the area that will become the focus of Winckler said. “From a technical exploration further down the line.

“Once we’re operational with the first perspective, it is not complex: the geology is relatively straightforward, the resource phase of Vista, we will have a workforce

28 yeArS

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coAlspur of about 500 people. Hinton is a very attractive town located near the Rockies and Jasper National Park, and it will be just a short commute to Vista.” Already home to some 10,000 people, Hinton can provide support services and infrastructure for the mine and its staff. The Hinton region has been associated with coal mining for over 100 years.

A little further afield lies the town of Edson which has 10,000 residents and is also within commuting distance. Meanwhile, the capital of Alberta, Edmonton, is a two and a half hour drive by four-lane highway.

“We have many stakeholders in the Hinton region,” Winckler said, “and we are fully engaged with the local community and regulators to ensure that we are and always will be a socially responsible corporate citizen. We continually work on building strong relationships and open communication with local stakeholders, sharing project details and welcoming local input throughout the development and regulatory process.”

Winckler is confident that the attractiveness of the location, along with the nature of the work, should attract the best quality staff. “After all, it’s always exciting to be part of a new project and not many people have the opportunity to see something through from the outset,” she concluded.

the geology is relatively straightforward

for more information about coalspur visit: www.coalspur.com

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canadian focus:

Quiet coal

on peace river Since acquiring the Carbon Creek asset in northeastern British Columbia Cardero Resource Corp. focus is on being an owner-operated coal producer committed to responsible and sustainable mining written by: John O’Hanlon research by: Richard Halfhide

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Cardero Coal

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Coal core

cArdero coAl

C

ardero has a vision, and That leaves 12 percent to fuel the steel plants delivering that vision is Michael in China, India, Korea and Japan.

Hunter, the dynamic and vastly For a long time thermal and met coal experienced president and CEO were priced almost at par, explains Hunter. who brought the world class “Even as recently as 2003 there was not a asset to the company back in 2009. Carbon massive separation. At that time we were Creek is the oldest coal deposit in British selling high grade met coal for $42 loaded Columbia, having first been explored as early into the boat. I doubt you could mine it as 1909, but it remained largely undeveloped for that price today!” By 2005 the market until the 1970s, when a fairly extensive changed as China went from being a net drilling program took place. During the exporter to a net importer of coal. Though downturn of the following decade interest prices fluctuate day to day the current declined, then from the 1990s and early differential stands at around $210 for met 2000s the deposit became the subject of a coal as opposed to $70 for thermal. legal dispute.

Michael Hunter is a very rare animal, Enter the Coalhunter (the name of a coal man who speaks Chinese, studied Hunter’s company, which secured the asset Chinese at the University of Alberta, has visited China regularly by bringing together the and has even worked for rival parties around the a Chinese coal brokering same table). Faced with the need to raise development company, Canadian Dehua. capital Coalhunter was on “As the only Caucasian there the point of going public I had no choice but to get a proportion of certain level of proficiency!” when Hunter and Henk van metallurgical coal in Alphen, CEO of Cardero, He’s an admirer of the world supply decided that these two achievements of China in companies already had the pulling 600 million people, chemistry to make a success of the mine. twice the entire population of the USA, out “In 2011 I folded the company into Cardero. of poverty creating in just two decades the It was the best thing for everyone. And largest middle class in history. In turn this Cardero acquired a world class asset.” created a huge demand for energy from So what is so great about Carbon thermal coal, he says. “And it creates a huge Creek? Firstly, it is top grade coking, or demand for met coal too, because they have metallurgical, coal. Around 88 percent of huge infrastructure requirements.” global coal resources are thermal coal, an Suggestions that China’s thirst for met oxidized coal that has calorific value but coal will peak then collapse are way off does not have the capacity to make coke the mark, he believes. “The truth is that which is part of the steel making process. steel production tends to settle at about 80

12%

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percent of peak, and 80 percent of China’s estimated peak demand is still a multiple of what they consume today.” Add to that the demand from Korea and Japan, countries with significant steel production and virtually no domestic coal and the market for metallurgical coal begins to look very sustainable indeed.

The other great thing about Carbon Creek is that it is very quiet compared to other deposits in the Peace River coalfield. That’s a technical term that needs unpacking. The coal deposits are more or less flat when laid down in the Jurassic era, around 100 million years ago. Since then a lot of tectonic activity has folded and broken them so that some coal seams are highly fractured and deformed. But Carbon Creek is quiet, which means that the resource containing some 137 million tonnes of minable coal has remained even and relatively flat from where it outcrops, and continuing underground. In British Columbia that is unique.

This means that the coal lends itself to both surface and underground mining. The plan is to start with conventional truck and shovel mining and to continue with that for two or three years, transitioning to highwall mining, a technique that extends the life and viability of the surface resource.

About 60 percent of the resource lies well below the surface though, and that will have to be reached after about the seventh year of mining by a traditional ‘room and pillar’ operation. There will be a blend of methodologies, he says, but none of them particularly challenging, thanks to the amenable layout of the coal seams.

With the fundamentals of market and accessibility in place, there remains

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cArdero coAl

hudsons hope

one key element before Christie’s appointment in investors will take the risk May was followed closely of putting their money by the signing of a 15 year into any resource. That is agreement with Ridley performance. Cardero has Terminals at Prince Rupert already delivered, in just for the shipment of Carbon over a year, progress enough Creek’s coal. Also in May, tonnes of coal resource to gain the confidence of the the environmental baseline at carbon creek market that the mine will be for the project was accepted, in production by its target and in June it received its mining license from the date of 2014. “We have been fortunate in achieving some key milestones Province of British Columbia. “Those four here over the last year,” claims Hunter. key factors have allowed us to do in the The first of these was to get the right last seven or eight months what often takes people in place, and a key appointment was several years to accomplish,” says Hunter.

The pace is not about to slacken. A prethat of Angus Christie as chief operating officer, an industry heavyweight with recent feasibility study will be out at the end of experience in the Peace River coalfield. October this year, followed by a bankable

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ceo henk van alphen, sr geologist skender sulaj, Marian Myers

“we hAve worked very hArd to stAy on trAck And our objective to 2014 is to stAy there, show we cAn breAk the mold, And fAst trAck the project to production” feasibility study at the end of June 2013.

“That will put us into a position to submit a mine application about the middle of 2013.” Allowing for the normal six-month processing period, he expects to be granted a license to operate by the British Columbian authorities by the end of next year, on target for first coal in the second half of 2014.

A beneficiation plant will be built on site to ensure that the coal is consistent, a key

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requirement of steel producers. “With met coal you have to hit your exact specifications every time.” Once clean, there are two potential routes to Prince Rupert, either by truck and train or by barge through Lake Williston to a railhead at Mackenzie; either way it will be delivered efficiently to Prince Rupert and the seaborne market.

Like most successful CEOs Hunter believes that people create success or

c

cArdero coAl

coal from reclaimed adit location

failure. “I have no interest in mediocrity,” he says. So he wants to augment his team with the top talent in the business, not the best on the job market. Recruitment, he says, is about paying people enough so they are not always looking for a better deal. Retention is another matter. From 1993 Hunter spent almost a decade working for Bullmoose mine at Tumbler Ridge, much of it as a union representative. “We had two mines close to one another. One had about 30 percent turnover a year; the other three to four percent. The difference was in how the management team treated the workforce.”

People who feel they are genuinely valued for their opinion will enjoy going to work and perform better, he believes.

In defiance of normal practice the blasters

core inspection

at Bullmoose took no instruction from the engineering team; they designed every blast throughout the life of the mine. “Who knows the geology and the quirks of the deposit better than the guys doing the job in the field? Use their expertise!” So the culture of this organization, and the speed with which it has shown it can deliver, depends on the consensus of every member of the workforce at Carbon Creek. “We have worked very hard to stay on track and our objective to 2014 is to stay there, show we can break the mold, and fast track the project to production.” for more information about cardero coal visit: www.cardero.com

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canadian focus:

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Walter Energy

Irreplaceable Dan Cartwright, president of Walter Energy’s Canadian operations, talks about developing reserves of a material that society can neither do without, nor replace written by: Alan Swaby research by: Dan Finn

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wAlter energy

P

truck being loaded at brule

rospecting for natural resources is such a hit and miss affair that finding anything must come as a great relief. When new deposits of coal are found to consist of metallurgical rather than thermal grades, however, the champagne really starts to flow.

“At the moment, iron and steel can only be made with the coke that comes from metallurgical and pulverized coal injection (PCI) coal, which makes it a very valuable, long term asset,” says Dan Cartwright, president of Walter Energy’s Canadian operations.

The three mines in northeast British Columbia, operating under the Walter Energy banner, are located between the towns of Chetwynd and Tumbler Ridge, some 425 miles north of Vancouver.

Walter Energy completed the $3.3 billion purchase of Western Coal in 2011 and set about optimizing the mines’ performance.

When the sale was made, Western had proven and probable reserves of 140 million tonnes and output in 2010 measured 2.1 million tonnes. In the first year of Walter Energy’s regime, Western’s production doubled to 4.2 million tonnes and since the appointment of Cartwright earlier this year, the mine has even more ambitious production targets.

“It’s been something of a roller coaster ride,” he says, “with demand driven largely

by China – and also prices.” The talk now, though, is that inflation in China is once again under control and the brakes that had been applied to slow the economy down

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wAlter energy are being released. “This year we will probably see a sMs equipment is one of canada’s leading providers of total output of 4.6 million equipment solutions and services for the construction, tonnes which will gradually forestry, mining, and utility industries. to help increase to 6 million over customers meet their needs, sMs has established the coming few years, and alliances with suppliers around the world. sMs we plan to be producing 10 equipment is a full-line distributor of heavy industrial equipment and offers a variety of services at their million tonnes by 2020.” branches located throughout canada.

The Canadian operations www.smsequip.com are welcomed by customers as a reliable alternative to the world’s major coal supply areas and Walter’s Canadian output has been adopted as a key blend in half of the world’s ten largest steel mills. As well as hard coking coal, Walter also mines ultra-low volatile pulverized injection coal. Pulverized coal injection has been known since the 19th century but only entered commercial production less than 50 years ago when demand caused the cost of coke to jump.

It is a technique that allows for cheaper coal to be used and in turn, reduces costs.

The three projects in Canada are all relatively new and at various stages of development. The most advanced is the Wolverine mine, which has been in production for five years. Brule is a couple of years behind and Willow Creek is in the latter stages of development.

SmS eqUIPmeNt

$3.3 BIllION purchase of western coal in 2011 Warren Mcdonald at Willow creek

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164 | BE mInIng & mInERAls

The geology is complex and produces another kind of roller coaster ride. In certain places, the coal seam breaks through the surface of the ground only to dive away again to depths of 100 metres in other spots.

All along the seam there are faults to be contended with.

This part of British Columbia is deep in the Rocky Mountains and of outstanding natural beauty, providing a paradise for the fishing and hunting community. As such there is even more onus on Walter to carry out operations with the utmost environmental sensitivity, making careful mine planning key to both increasing productivity and taking care of the surrounding countryside.

“It’s a surface mining operation,” explains Cartwright, “but that doesn’t mean it’s as

wAlter energy

Willow creek south view

simple as just following the seam. The quality characteristics of the coal vary from point to point and it’s necessary to blend different grades to meet customers’ requirements. It becomes a complex juggling act to keep trucking distances short while making sure that reclamation takes place as swiftly as possible.”

Walter Energy is a US company based in and around Birmingham, Alabama. Its other

mining interests tend to be in the tail end of the Appalachian Mountains. As such, Walter had had no dealing with representatives of Canada’s First Nation population, yet seems to have developed good relationships. “We work very closely with the First Nation peoples,” says Cartwright. “Their requests are reasonable and straightforward. They want us to put the land back to what it was before mining began, to provide them

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job opportunities and to give as many opportunities as possible to develop First Nation owned businesses that can be sustained beyond the life of the mines.�

The local people have been caught before by sharp practices when restoration of the land resulted in grass mountains rather than slopes covered by trees and other native vegetation. So part of the deal at Walter is the development of a greenhouse

business as a joint venture with the First Nation bands where seedlings of native plants are being grown and nurtured ready for replanting.

The location of the mines is fortunate in that they are within 20 miles of two established communities. In total, Walter employs around 1400 staff, more or less equally divided between the three sites and of these, about 20 percent are First

“We have introduced new working practices that make the sites safer and new technology to keep a real time eye on how equipment is functioning�

Laura Avery at Willow Creek

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wAlter energy

truck carrying coal at brule

Nation people. It’s always difficult on capital intensive projects like mines to be able to purchase very much from local suppliers, but Walter does what it can in this respect to bolster local businesses.

With known reserves, the mines have a maximum life of 12 years so Walter is spending heavily to find new reserves. As well as prospecting in its own territory, Walter is in a 50/50 joint venture with Anglo in an adjacent block which could produce five million tonnes a year (Walter’s share) for the next 20 years.

In the meantime, the emphasis is on making the current mines more efficient.

“This really means working smarter,” says

Cartwright. “We have introduced new working practices that make the sites safer and new technology to keep a real time eye on how equipment is functioning. It’s about taking out unpredictability from the way we work, which in turn means a lower cost structure that will allow us to benefit from the lower portions of the market cycle.

This will provide better job security for our employees and work for the benefit of all our stakeholders.” for more information about Walter energy visit: www.walterenergy.com

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canadian focus:

Canada’s coal

Westshore is far and away the largest coal terminal in Ca than the combined capacity of other ports on the North Am

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Westshore Terminals

l cornucopia

anada handling more merican west coast

written by: John O’Hanlon research by: Dan Finn

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I

f Denis Horgan, VP and general manager of Westshore Terminals, has a few problems, they are mainly high class problems. Westshore stands in a privileged position in the North American coal value chain, which is characterised these days by a slackening in domestic demand balanced by a healthy export market. Coal falls into two main categories – thermal coal burnt to produce energy and the higher spec coking or metallurgical coal needed to produce steel. Both are badly wanted by countries like China, which shifted from being a net exporter to a net importer of coal in 1995, or Korea and Japan, two steel producing countries that have little in the way of domestic resources themselves.

Canada, particularly the provinces of British Columbia and Alberta, has enormous coal resources – between them the Peace River and Kootenay coalfields alone are estimated to hold more than two billion tonnes. Westshore’s largest customer Teck has six operating coalmines in the region, and expects these to be producing for 25 years as a minimum. At present rates of use Canada has 200 years of coal reserves. Then there’s the United States. Forced to export more of the coal from its western coalfields in Wyoming and Montana it has no really viable coal ports on its western coastline from which to ship coal to Asia. Westshore, though, is just over the border and easily accessible by rail.

Westshore Terminals is 42 years old this year. It is one of a handful of profitable standalone coal terminals in the world – most are owned by shipping groups or

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Three major railways serve Westshore including Canadian National

Westshore Terminals

Seen

Contact us today and put your company in the spotlight!

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westshore terminAls

both of Westshore’s deep sea berths will be kept busy in the last quarter

governments. The facility covers 133 acres $49 million equipment upgrade in 2007 on a man-made island at Roberts Bank pushed capacity up from 23.5 to 29 million out in the delta just over 20 miles from tonnes per annum and a $53 million project Vancouver and is linked to the mainland by involving the replacement of the single a road and rail causeway. Six trains a day rotary railcar dumper with a new tandem dump their cargo which is transported by dumper together with other improvements high-speed conveyor to stockpile using one such as equipment automation and new of the four giant stackerredesigned transfer chutes, reclaimers Westshore has will increase the capacity to on site, although these days 33 million tonnes per annum around 30 percent of the by the end of the year. “We incoming coal is directed shipped more than 8 million straight onto ships waiting tonnes of American coal last at one of the terminal’s two year, mostly from Montana. deep water berths.

We could easily ship a So what is the problem? further 20 million tonnes if area of westshore “We are turning away we had the capacity.” terminals facility business,” says Horgan. A It is always heartbreaking

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Ships up to 170,000 tonnes can be loaded at Berth 2

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for a business to have to turn away so much potential income, but Westshore is approaching maximum efficiency as an operation, which is cause for congratulation.

“Rail car dumping was our bottleneck, but following the installation of a new dumper and ancillary equipment, we are now more or less right-sized.”

Some equipment could do with updating and upsizing – one of the older stackerreclaimers is 40 years old, but all four yard machines have been automated and can now be controlled centrally. The automation system followed has been used at Western Europe’s largest bulk terminal, the Rotterdam EMO (Europees Massagoed-Overslagbedrij) for the last eight years, he adds. Operations are driven by a rigorous continuous improvement (CI) philosophy that was an integral part of the debottlenecking operation. Drives, belting and gearboxes were upgraded, and in April this year four of the seven major transfer towers on the site were replaced.

With ships booked in daily and the size of these ships having increased over the last five years to a point where 170,000 tonnes is commonplace, the pressure is on to process stocks as efficiently as possible. “Despite the pressure we have managed to operate without any significant delays over recent years,” claims Horgan. This is in contrast to Australian ports, for example, where ship queues are the bane of the bulk shipping companies.

Historically Westshore has been primarily a shipper of coking coal, with thermal coal representing only about 10 percent of throughput. However over the

westshore terminAls

Mv tanya loading at dusk at berth 2

past couple of years shipments of thermal coal have increased dramatically with the advent of US coal from the Powder River Basin, to the extent that in 2011 thermal coal represented 40 percent of shipments through the terminal. Demand for coking or met coal is still strong and increasing, and in 2011 Westshore signed several long term agreements with its customers. In September 2012 the agreement with the biggest customer of all, Teck, was extended from 2016 to 2021. Under the new agreement Teck will ship between 16 and 19 million

tonnes of coal a year through Westshore, at a fixed rate per tonne and not at variable rates based on the sale price of the coal as in was the case prior to April 2011.

Coal from each of Westshore’s customers has different characteristics and cross contamination is totally unacceptable – as Horgan explains. “Any mistake could be a million dollar mistake so we don’t make any! There are a lot of checks and balances in place.” Managing the storage and onward shipment reliably is a vital part of Westshore’s customer relationship and

“Any mistAke could be A million dollAr mistAke so we don’t mAke Any!” BE mInIng & mInERAls | 175

Westshore’s fourth and newest monster Stacker-Reclaimer 44

westshore terminAls is only one part of its good stewardship portfolio. Though it’s on an offshore island the terminal is only three miles from residential communities on the shore and there’s a vigilant environmental lobby ready to draw attention to any pollution Westshore might cause. “We spend a lot of time on dust control. Historically we have relied on rain guns and if it is going to be windy we wet the site down thoroughly.”

Rain guns are rather like agricultural irrigation sprayers, mounted on the ground.

They are augmented by five 125 foot spray towers within the stockpile area and 38 mast sprayers around the perimeter.

Bulk ports the world over are moving toward greater equipment automation, where remotely-operated machines, such as stacker-reclaimers, are becoming the norm.

Westshore, says Horgan, will continue to embrace these advances so that it can remain competitive as Canada’s premier coal export terminal and the busiest single coal export facility in all of North America.

The company is a member of CETOA, the Coal Exporting Terminals Operators Association, an international body that shares best practices and innovations. At its latest meeting in Norfolk, Virginia in late September Denis Horgan was not short of best practices to share with other operators from America, Australia, South Africa, Indonesia and Colombia. for more information about Westshore terminals visit: www.westshore.com

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cAnAdiAn focus:

All SySTEmS go CEO Martin Walter talks about the advantages of the Goliath project and the progress being made towards production

written by: JOhN O’hANlON research by: DAN FINN

178 | BE mInIng & mInERAls

trEasury r asury mEtals

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I

n these tough economic times, it is hardly surprising that a great deal of attention is being focused on natural resources and any country lucky enough to have oil, coal or mineral reserves feels a lot more secure for that. Just how much can be derived from Canada is a matter for speculation, but there’s huge interest in the known resources.

A recent report1 focusing on just one district, northwestern Ontario, estimates the value of un-mined gold in those projects expected to be producing by 2017 to be, at the April price of $1,630 an ounce, at $6.2 billion. The price at the time of writing is hovering around $1,750, having come close to $1,800 in October. As a result Canadian federal and provincial authorities, not to mention investors, are paying close attention to the companies that have any chance of delivering those ounces to the market.

High on the list is Treasury Metals, owner of the Goliath project in the Kenora district, close to Dryden. Treasury listed on the Toronto Stock Exchange in 2008, upon resolution of a somewhat complicated conflict of interests between Teck, Corona and Laramide Resources. The 50 squarekilometre property, containing 1.7 million ounces of gold, is a large prospective and relatively underexplored land position in Canada, a mining-friendly country with its well regulated and well understood regulatory framework. Much of Canada is remote and energy, manpower and accessibility can be a big cost factor; and with so many lakes and rivers, underground work is often difficult, too. Goliath is all on dry land, only a mile and a half from the

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Treasury Metals

A driller examines the quality of recently drilled core

1.7 mIllION ounces of gold at goliath

rory, a senior project geologist, planning drill holes on the tMl property

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Trans-Canada Highway and served by power lines, water and gas supplies.

These factors contribute to smoothing the passage of the project towards first gold production in 2014. “One of the beautiful things about our location,” points out CEO Martin Walter, “is that we can source everything needed for a project this size from either Dryden or Thunder Bay – all within 3-4 hours’ drive to the east.” Drilling and engineering consultants, sourcing of equipment and expertise – all these are readily accessible, he says.

The energy with which Walter and his team have pursued this project is phenomenal. When Business Excellence last visited Treasury Metals in May, we commented: “The Treasury Metals management team takes a cautious approach, admitting that until the project has been the subject of a full feasibility study nobody can be absolutely certain it will be economically viable.” At that time Walter said: “We have some work to do, though now mainly on engineering design rather than metallurgy.” That work has moved ahead quickly since then. In July an updated preliminary economic assessment (PEA) confirmed that the project can achieve an annual production rate of 80,000 ounces

treAsury metAls

tMl staff and management gather for a shot in front of the ‘swimming pool’; a sunken pit where the ore body arrives at surface

from the high grade resource of around 3 grams per tonne of ore, and that the average cost per ounce will be below $700.

Since the PEA also confirms a mine life of ten years with capital payback within 18 months at July gold prices and an achievable capital expenditure to get the mine up and running of around $90 million, Walter is now going all out to get through the remaining steps without delay. The first of these is to commission a full feasibility study (FFS). A number of engineering companies have already submitted their proposals to deliver an FFS that will incorporate detailed mine design, plant specifications and

extraction processes. Whoever is chosen to carry that out, he says, will be working very closely with the professionals that make up Treasury’s team right up until the feasibility report is complete.

In September Treasury Metals completed a bought-deal $6 million financing with Canaccord to fund further development.

Through the financing, the company notably attracted high-quality institutional investors.

All the money banked will go ‘into the ground’, since Treasury Metals is in the happy position of receiving $1 million each year from its interest in Goldcorp’s Cerro Colorado gold mine in Mexico. These

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royalties take care of a portion of the costs of the company, so in a rare scenario among juniors, investors know that the money they put forward is all used to add value to their asset. “The money we raised is earmarked for three principal purposes: getting the full feasibility study concluded as thoroughly and quickly as humanly possible, continuing

the drilling program and pushing forward our land acquisition strategy,” says Walter.

They are wasting no time. The 16 kilometres that were targeted during 2012 turned up some very encouraging results, culminating in August with the announcement that it had revealed a new body of gold bearing ore associated with the main deposit and

“We live here too, and we want people to know that they will benefit in more ways than just through employment opportunities”

TML has developed a proposed site plan

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treAsury metAls

tMl recently executed a strategic acquisition of two additional properties along the strike line

potentially increasing the amount of ore that can be reached by open pit mining in the early stages of the operation. It also focused on areas that merit more drilling, so a further drilling program along with infill and expansion drilling commenced near the end of October. By the time a revised resource estimate is published by Treasury Metals, the Goliath gold project should amount to more than two million ounces. And though Goliath is the priority, we should not forget that Treasury owns another gold project to the south of Dryden. Aerial and electromagnetic surveys were done there in 2011; an initial drilling program has already started there to find out exactly what lies below the surface.

The team is working on a Project Description Document. The PDD is the document Treasury needs to kick start the permitting period for ultimate production, explains Walter. “It describes the operation, the processing and extraction methods, tailing dams and storage dams and where the waste rock will be piled, as well as environmental efforts and the company’s consultations and information meetings with area stakeholders.” Towards the end of October, Dryden’s communities will have an opportunity to find out more details about the project and what Treasury Metals hopes to bring to this part of northwest Ontario. “We live here too, and we want people to know

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TML completed its 60,000 metre in-fill drilling program for 2010 & 2011; an additional 20,000 metres are planned for 2012

treAsury metAls that they will benefit in more ways than just through employment opportunities.” Direct and indirect employment arising from a Treasury Metals mine will have a big effect on the local economy, which needs to replace the traditional timber and pulp industries as these contract. The company could generate up to as many as 1,000 direct and indirect jobs. Additionally the environmental strategy being adopted will reassure the community that here is a company that is serious about clean mining. The PDD should be submitted this year and at that point the permitting process will start.

Treasury Metals wants to own the land above the deposits as well as the mineral rights to be able to drill where it needs to, so this will be the final destination for part of the recently raised capital. Its newly acquired 160 hectares brings the company’s land holding on Goliath to more than 50 square kilometres.

“Owning surface rights makes it much easier to explore and develop the project, and should also signal to all our many stakeholders that Treasury Metals is very serious about bringing this project to production,” says Walter.

Mining in Northwestern Ontario: Opportunities and Challenges September 27, 2012 Commissioned by Ambassador’s Northwest, with support from the City of Thunder Bay, Thunder Bay CEDC, Thunder Bay Ventures, Thunder Bay Chamber of Commerce, Northwestern Ontario Municipal Association, Lakehead University and Confederation College of Applied Arts and Technology.

1

for more information about treasury Metals visit: www.treasurymetals.com

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canadian focus:

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Orbite Aluminae

The impossible,

made possible How one company is revolutionising the way in which alumina and other high value materials are recovered from the earth written by: Will Daynes research by: Daniel Finn

Be mining & minerals | 189

B

e it its breath-taking natural beauty, cultural diversity or its rich heritage that still resonates through a predominantly French-speaking population, there is much that the world already knows about Canada’s largest province, Quebec.

What is perhaps less well known is the fact that Quebec holds the distinction of being the world’s third-largest producer of aluminum, behind China and Russia.

Running along the south shore of the Saint Lawrence River, Quebec’s Gaspé Peninsula is the home of the Grande-Vallée property, a large aluminous clay deposit boasting a conservative estimate of one billion tonnes of indicated mineral resources in the first 100 metres of depth in one sector alone, as defined under NI 43-101. It is here that one Canadian company can today be found using state-of-the-art technology to revolutionise the industry.

“Technology,” explains Richard Boudreault, president, chief executive officer and director, “is what sets Orbite Aluminae apart. Fundamentally, we are a cleantech company that is striving to make the unobtainable available.” The technologies used by the company for producing smeltergrade alumina from aluminous clay are widely recognised as the best and most environmentally sustainable to replace a significant portion of the higher-cost alumina that smelters across Quebec import annually.

“When we extract clay from the ground,” Boudreault continues, “over 99.9 percent of the material in the deposit is turned into a sellable product or steam, whether it is

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Lava laboratory

Orbite Aluminae

alumina, pure silica, magnesium or rare earths.” Producing high-purity alumina is another of the company’s foremost concerns.

This hugely in-demand material is used to manufacture LED lights and is found in all sorts of electronic devices including lithium ion batteries.

Another element that is becoming of increasing importance is scandium.

Generally used as a catalyst, scandium has a high potential for use within the aluminum and the electrical fuel cell industries.

Perhaps more importantly, it is a material that, when combined with aluminum, becomes a part of a hexagonal crystalline structure that possesses similar structural, electrical and thermal qualities as titanium, but at a fraction of the cost and weight.

“Aluminum-scandium is definitely going to become the next big thing in the aluminum industry,” Boudreault says, “because it is very likely to impact the aluminum-lithium used around the world within the next five years.” Until now, the fact that scandium has only been produced in a small region of Scandinavia and Russia in soviet-era mines made this future scenario look impossible.

Now that Orbite Aluminae has access to this once unobtainable material it expects to produce enough scandium to meet pent-up global demand.

Across the planet, alumina is becoming

more difficult to extract as the sources of high quality bauxite are being depleted.

Good sources of bauxite are characterised by having a minimum amount of silica present. When dissolved in a caustic solution, silica combines with aluminum and iron, binding solidly to become red mud, a highly toxic waste product of the 125 year old Bayer process. Typically, for every tonne of alumina recovered, two tonnes of red mud is produced during the Bayer process.

Increasingly frequent accidents involving

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orbite AluminAe

aluminous clay deposit

red mud have blighted be converted into alumina,” many countries, destroying Boudreault enthuses, “it lives and the environment also allows for the recovery in the process. of other materials such as Orbite Aluminae has scandium, gallium and rare of clay deposit material therefore developed its earths during the recycling turned into a sellable own red mud remediation loop. This recovery process product process using hydrochloric has been so successful that acid. After reacting with the we will soon be in a position acid, rather than bind with to produce the equivalent the aluminum and iron, the silica which is of the world’s total annual production not soluble in hydrochloric acid, falls to the of gallium from just one of our facilities in bottom of the mixture and is filtered out, that same time period.” avoiding the creation of red mud. In this Orbite Aluminae’s red mud remediation unique technology, the acid is recycled at programme follows the same principle over 99.75 percent and reused in the process. that exists throughout the company and “Not only does our process enable that is making the most out of the material virtually all of the aluminum present to in the ground. What it plans to do now is

99.9%

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introduce this concept to the wider world by exporting and licensing its technology outside of Canada.

The question this does beg however is, why would Orbite Aluminae want its competitors to gain access to its technologies? The answer is surprisingly simple. “In the very near future,” Boudreault says, “we expect to see the costs associated with transporting alumina to outweigh the

price of alumina itself. When that happens, producing alumina locally will be a much more sensible option.”

With the demand for high purity alumina soaring, Orbite Aluminae is already being challenged to increase its anticipated production levels. In order to meet this demand, the company is currently in the process of constructing its first, of what it expects to be several, high purity

“With ten of these SGA plants we would be able to provide 50 percent of the alumina imported into Quebec”

Orbite products

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orbite AluminAe

ground breaking ceremony, hpa plant

alumina plants, which is expected to be commissioned by the year’s end.

“The HPA plant will bolster our financial resources needed to take the business to the next level, which is the building of our first $500 million smelter-grade alumina (SGA) plant,” Boudreault states. “With ten of these SGA plants we would be able to provide 50 percent of the alumina imported into Quebec. Furthermore, we will make available high quality separated rare earths, rare metals and other strategic materials from a reliable and sustainable source.

We expect the first of these plants to be operational in late 2014.”

“Apart from producing alumina and high-value by-products, the market is

only now starting to recognise the waves being made by our red mud remediation programme,” Boudreault concludes. “On another front, we have also shown that we can treat fly ash generated at coal-fired power plants in our process to recover the alumina and other high value elements it contains. This is another way in which we are essentially turning garbage into plough share and is just one of many exciting developments we plan to bring to the global market in the near future.” for more information about orbite aluminae visit: www.orbitealuminae.com

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written by: Martin Ashcroft research by: Marcus Lewis

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Allana Potash

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Water well drilling on the western portion of Allana Potash license, Dallol Project

AllAnA potAsh

T

he race is on to satisfy accelerating world demand for potash, and in this Olympic year Allana Potash is in gold medal position as its Dallol Project in the Danakhil region of Ethiopia has the finishing line in sight.

Potash is a generic name for a variety of potassium salts, the most common being potassium chloride (KCl), also known as muriate of potash (MOP) and sulphate of potash (K2SO4) or SOP. Around 95 percent of global production is used in fertiliser to improve water retention, yield, nutrient value and disease resistance of food crops such as fruit and vegetables, rice, wheat, sugar, corn, soybeans, palm oil and cotton.

The world’s largest producer of potash, by some distance, is Canada, with the largest consumers being China, the United States, Brazil and India. So why is a Canadian exploration company putting all its resources into developing a potash operation in Ethiopia?

There are many answers to that question, and they all combine to put Allana Potash in a very strong position to supply the growing fertiliser markets in China and India—with Ethiopia’s location on the horn of Africa being virtually next door, compared to Canada or Russia.

First of all, there is an abundance of potash in Ethiopia, where it was first mined in the fourteenth century. “We secured some very interesting drill results from a company called Parsons and Co, an exploration company that was operating in Ethiopia in the 1960s,” said Richard Kelertas, senior vice president, corporate development. “They

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had done well over a hundred drill holes in the depression where we are operating and the results looked extremely promising.”

Until relatively recently, he explained, the principal method of mining for potash was deep shaft, which was not particularly suitable in this region of Ethiopia which is subject to very hot temperatures, so the property had been abandoned. The Dallol Project, however, is perfect for solution mining, a method which pumps brine into drill holes to dissolve the potash, then pumps the resulting solution to the surface where it is transferred to evaporation ponds to dry before final processing to remove the salt.

With the potash deposits being relatively shallow and a hot climate that allows for natural solar evaporation, Allana benefits from minimal capital expenditure and low operational costs into the bargain.

Another bonus is that at a time when some governments have been revoking promises they made to mining operators, the Ethiopian government has been extremely helpful. “When we first looked at it three or four years ago, the infrastructure left a lot to be desired,” said Kelertas. “But we had assurances from the Ethiopian government that they were going to upgrade the road system, and they came through on that. All things considered, low cost, low cap-ex, low op-ex, and the fact that the resource was

quite substantial and shallow led us to go ahead with exploration work a couple of years ago. Most of our drilling has been in the western areas on the salt plain,” he continued, “and there’s enough there for a million tons a year for thirty or forty years.”

The advantages of the climate are quite significant. “This is one of the hottest places in the world,” said Kelertas, “but that helps us keep our op-ex costs very low. We do not have to build expensive evaporators as you do in cooler parts of the world. We’re using

“There’s enough there for a million tons a year for thirty or forty years” 200 | Be mining & minerals

AllAnA potAsh

potash salt and halite crystallization in pilot test evaporation ponds

solar evaporation ponds, involved, but here’s where where the energy from the solution mining scores again. sun evaporates the potash “With a solution mine, the brine. There are some environmental footprint implications to operating is almost nil. It’s only the in a hot climate but plant facility, the pumping, whatever energy you’re the advantages far outweigh total project cost going to use, the drill sites, the disadvantages.”

The project’s desert the well sites and the piping. location has other Other than that there’s no advantages, too, from an environmental excavation work, and no emissions to speak of. point of view. There’s no flora and fauna and Allana employs a lot of Ethiopians in its there is only a small indigenous population, exploration and development operations so which is actively engaged in the development. a small village has sprung up close to the Concerns about sustainability in potash site, where temporary housing, a school, and mining are just the same as they are in any a medical clinic have been built. “Once we mining operation, said Kelertas, especially start construction that village is going to when open pit or deep shaft mines are get a lot bigger, so we’ll be working closely

$800 mIllION

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Water well drilling

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with the local authorities, with the village elders and community leaders to make sure that all the local customs are followed,” said Kelertas. “We’ve done a good job on that from the beginning and we have a great relationship with all levels of government, so there haven’t been any issues.”

The only environmental issue that could require further work is in terms of water usage, he added, and work is being done on that now. Water can be a contentious issue in highly populated areas – like for instance in Saskatchewan, Canada, but the Danakhil region has plenty of water and no other end users competing for it.

“There’s no agriculture anywhere near us, and no human settlements apart from our village,” said Kelertas. “We’re doing a lot of hydrological work to find out exactly where the water is and how much we’re going to need, but we don’t see any issues.”

Allana, with advisor BNP Paribas, has already put together over $600 million in soft commitments for debt financing from a group of development financing institutions and export credit agencies.

The full bankable feasibility study being undertaken by German exploration consulting company ERCOSPLAN will be finished by the end of this year, and once that has been analysed the funding will be firmed up. Kelertas also expects to have a couple of offtake agreements signed up by then, too, and Allana’s two anchor partners, Liberty Minerals & Mining and The International Finance Corp (IFC - a subsidiary of the World Bank) will also confirm their pro rata share of debt and

AllAnA potAsh

allana potash camp in early 2012

equity financing, so construction of the mine could start in the first half of 2013.

The total project cost with all contingencies (15-20% contingencies are included) is about $800 million. There is no need for gigantic evaporators, but huge solar evaporation ponds have to be built.

“We’ve already put up six pilot ponds and we’re doing the evaporation rate testing right now,” said Kelertas. “Really all you need is a processor, and conveyors to take the raw crystals from the evaporating ponds over to the separators.” The largest portion of the $800 million is for production ($664.4

million) which itself is dominated by the brine processing plant at $188 million.

Also included in the cost projection is $90 million for a new port facility in Djibouti.

Ethiopia is a land-locked country, but its neighbour Djibouti already has a port facility and plans are in place for a new port to be constructed at Tadjoura. “The Arab Fund for Economic and Social Development and the Saudi Fund for Development have financed the Djibouti Port Authority to build the new port facility in Djibouti,” said Kelertas. “This is on the north side, the other side of the bay from the current site – so we don’t have to

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Core drilling for potash

“We’ve already put up six test ponds and we’re doing the evaporation rate testing right now” stand that $90 million any more but we still include it just in case in our cap-ex total.”

Transportation to the ports will initially be by truck – a 600 km journey. “We’ll be shipping two to four large tandem trailer units an hour (two trailer units and a cab, with 40 metric tons in each trailer),” said Kelertas. The product will be stored at the port to be loaded either on container or bulk loading ships.

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Allana is not counting on using rail in its cost calculations, although that option is a distinct possibility before too long.

The Ethiopian government has signed rail construction contracts with the Indian and Chinese governments (a billion dollars each) to build a rail line from Mek’ele to the capital Addis Ababa and from Weldiya to the new port. “That’s under construction right now,” said Kelertas, “and there is a proposal

AllAnA potAsh

camp prep kitchen

road rehabilitation work by the government of ethiopia, dallol project

for a line directly from our project all the way down to the new Djibouti port – that would be again about 600 kilometers, and it would cut our transportation costs in half versus truck. But again, we’re not figuring that into our numbers yet.”

The rail line from Mek’ele to Addis Ababa is expected to be finished by 2014/15 and the line down to the port by 2016/17.

If there were three or four potash projects operating in the region, the pressure on the roads would be unsustainable, so rail will be essential in the long run, but Allana expects to be the only project in operation as early as 2014.

“Two years ago there were 110 potash projects throughout the world being considered for development,” said Kelertas.

“Maybe five over the next five to ten years will be built and operating. Our view is we’re the closet to the international markets that want our products, we are probably closest to production of potash, we are the most cashed up, we’re going to have lowest cap-ex and op-ex, and we’re operating in a mining friendly jurisdiction which is also geopolitically an anchor nation in the horn of Africa. We’re in almost the best of all possible worlds and any negatives we have are far outweighed by the positives.” Sounds like a winner to me. for more information about allana potash visit: www.allanapotash.com

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oKd

solId As A ROck Operations at one of Europe’s largest coal producers are underpinned by strong customer relationships, the continued implementation of topclass training and safety measures, and solid revenues and reserves written and researched by: rIChArD hAlFhIDe

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Klaus Dieter-Beck, CEO

okd

C

oal represents the Czech Republic’s only significant indigenous energy resource; and as such, its importance to the economy in relation to export revenue and employment cannot be understated, and is as crucial today as it has been for the last two centuries.

OKD operates as a subsidiary of New World Resources Plc (NWR), headquartered in the Netherlands and one of Central Europe’s leading hard coal and coke producers. As well as OKD, NWR also owns OKK Koksovny, a.s.

(OKK), which is Europe’s largest producer of foundry coke. The company is listed on the London, Prague and Warsaw Stock Exchanges and can also be found on the FTSE 250 Mining Index.

Today, OKD produces coking and thermal coal, mainly for the steel and energy sectors, and is the only producer of bituminous coal in the Czech Republic. As such, it represents both the history and the future of this most traditional of industries. A nod to the past is hard to ignore: generations of men have mined the same area in the OstravaKarviná, in the east of the country.

“We are mining in old infrastructure: some of the shafts are close to 100 years old. The new shafts are 25 years old, but on average each is 40 to 50 years old,” says OKD’s CEO, Klaus Dieter-Beck.

The current operations of OKD are split between four operating mines. The Karvina and Darkov mines are the largest sites, with Karvina holding the title of the largest deep mine in the Czech Republic.

The CSM mine in Stonava and Paskov

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

okd mine in the Staric area of Ostrava make up the other cantoni Motor s.a. offers a full range of motors from operating sites which when 0,04kW up to 5000 kW – standard and special application pooled together, offer a motors: high voltage motors, explosion-proof motors, brake total reserve of about 200 motors, single-phase motors, motors for fans, slip ring million tonnes. It is not just motors, crane motors, motors with foreign cooling, marine the age of these mines that motors, traction motors and high efficiency motors ie2, ie3 and nema premium efficiency. creates a challenge to those www.cantonigroup.com who work at them but also the diverse nature of the geology, as Beck explains. “Our seams range from 80 centimetres up to almost eight metres in height, which poses its own challenges. Each year we go deeper and deeper. We are currently close to 1,000 metres, and it’s here that we face additional technical challenges in terms of air conditioning and rock pressure. In fact, we are in one of the most bounce-prone areas in the world.”

In many people’s eyes, coal mining still conjures an image of pick hammerwielding men with coal dust-covered faces, but today this could not be further from the truth. OKD has embraced the future and is rightly regarded as a truly modern company, utilising and often designing the latest technologies. Within the modern coal mining industry the greatest investments are generally split between new innovation

CANtONI mOtOr S.A

€200 mIllION okd’s average annual capex Mining machinery in use

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for performance or for safety, although the two are intrinsically linked. If maximum efficiencies are to be realised, it is imperative that continual improvement be the watchword. This is not lost on Beck. “We are investing permanently in new equipment, spending on average €200 million each year in CAPEX. This brings in new levels of technology for our investment programme, and it will also help develop new coal field access in the future. Our level of investment

today has tripled from six or seven years ago, when I first came here.”

It is clear that OKD’s investment strategy has led the company into a bright and ambitious new era. Despite the rise of alternative forms of energy in some countries, coal remains the only viable energy source for both the energy and steel sectors in this area of Eastern Europe and this is something that will not be changing any time soon. By Beck’s own admission,

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okd

the company invests heavily in safety programmes

“the long-term outlook six or seven years ago was not so bright, but there is now a different perspective. There are huge resources here: last year we exceeded 11 million tonnes again and we plan for the next 20 years to mine coal.”

One of the main foundations that enable OKD to plan for a profitable future lies in its relationships with its customers, which have been forged over many years. A key advantage that OKD’s operation has over many of its rivals is that it mines coking coal for the steel industry and thermal coal for power in equal measures, thus creating a more flexible supply model.

The companies it supplies represent some of the major blue chip organisations in

the region, all located within an excellent logistical infrastructure—companies such as Arcelor Mittal, Moravia Steel, US Steel, CEZ, ThyssenKrupp and voestalpine.

The latter recently granted OKD with an award in recognition of the relationship the two companies share, as Beck explains: “We were rewarded for being their Supplier of the Year. They know we deliver on time; and they are pleased with the quality. We talk, we meet, and we quickly eliminate any problems that arise.

After safety, the customer is our number one priority.” Beck speaks of simple and honest principles but there is no doubt that they are a recipe for success.

As Beck makes clear, the issue of safety

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should always be the main concern for any modern day mining house. This is especially true when mining underground to the depths witnessed at OKD’s properties. The company invests heavily in programmes to minimise the risk of accident and injury, one of its major initiatives in recent times being ‘SAFETY 2010’, which focused on providing all staff with the very latest personal safety gear including hi-visibility

work wear, personal lamps and detection devices—vital for the rescue of workers should an accident occur.

OKD is also well known for its Productivity Optimisation Programme (‘POP 2010’).

Between 2008 and 2010, POP 2010 saw OKD mines equipped with the most sophisticated gateroad and longwall technology, worth nearly CZK10 billion. All underground coal mining might be hazardous if not properly

“there Are huge resources here: lAst yeAr we exceeded 11 million tonnes AgAin And we plAn for the next 20 yeArs to mine coAl”

operations underground

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okd

Mining machinery in use

managed; but the workforce at OKD face additional challenges specific to the region, which are bounces related to the extraction of coal seams in connection with sandstone layers in between.

The fact that such natural geological conditions occur in this part of the world holds OKD up as an example to the wider coal mining community. Beck explains that OKD is not ‘shy’ when hiring expert consultants in the fields of rock mechanics, process improvement and training related to safety and new technologies. The unique conditions also mean that many international manufacturers approach OKD to request their equipment be tested in the extreme conditions of its mines, in the

knowledge that should equipment perform well here, it will do so anywhere else: a true testament to the workforce of OKD and the results it achieves.

Under Beck’s leadership, the short and medium term outlook for OKD is secure and it seems that everything is in place.

“We have solid customer relationships, an experienced and knowledgeable workforce and management team, a solid reserve and solid revenues every year—what else could you want?” he concludes. for more information about oKd visit: www.okd.cz

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kEEpIng IT SImpLE Kudumane Manganese Resources is developing its mining operation in one of South Africa’s poorest regions, and is keeping simplicity and the local community at its core

written by: BeCky DONe research by: JON BrADley

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Kudumane Manganese Resources

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Sechaba Letaba, CEO

kudumAne mAngAnese resources

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outh Africa-based Kudumane Deepwater Port becomes operational Manganese Resources is the outside Port Elizabeth, it will become latest mining operation to enter the preferred exit point for the mine’s the competitive manganese ore product. Production of manganese ore industry. Located near Hotazel from the project is expected to eventually in South Africa’s Northern Cape Province, increase to two million tonnes per annum the mining operation will produce and later 2.5 million tonnes per annum, manganese from the rich deposits that with the introduction of underground characterise the region. The project is operations in 2019. The expected life of located about one kilometre from Hotazel the mine is 10 to 15 years for the open pit and about 50 kilometres from Kuruman. or combination mining operations, after Kudumane Manganese Mine is owned which underground mining will continue

by Kudumane Manganese Resources, for an estimated 30 years. a joint venture between two BBBEE The project infrastructure consists of compa n ies, Dirleton an open pit or combination Minerals & Energy and the open pit and underground Northern Cape Manganese mine, a crushing and screening plant, mine Company (NCMC), which own equal shares in the residue disposal storage and firm. Hong Kong-based facilities, and various other manganese multinational support infrastructure Asia Minerals Limited and services. cost of kudumane (AML) owns a 49 per cent The project will be in project full production by the share in both companies, end of 2013, with the first and is the project’s technical partner. AML will market and sell the phase being bulk sampling activities manganese globally and has arranged all followed by production. “We are currently project financing in its role as technical at the first stage of the project, which and marketing provider. Bold Moves and is pursuing bulk sampling,” explains NWC Manganese are also shareholders in Kudumane Manganese’s project manager NCMC and Dirleton.

Schalk van der Merwe. “That will be The R1.5 billion project will consist of complete by December. Then we will be both open pit and underground mining, building the rest of the infrastructure, with the intention of shipping an initial including a railway siding for future 1.5 million tonnes of manganese ore loading of the manganese, housing, offices, out by both road and rail to the harbour workshops and stores. We’re just spending at Port Elizabeth each year. When the money at this stage!”

Coega Industrial Development Zone and The infrastructure to be developed as

r1.5

BIllION

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BLUE CHIP MINING & DRILLING

2009 Fabriek St, Kuruman Industrial Area, Kuruman Email: martin@bluechipmining.com | Telephone: 053 7122858

kudumAne mAngAnese resources

traditional dancers - setswana

part of the project includes 5.3 kilometres of railway siding, an automated 3,500 tonnes-per-hour rapid loading station, road trucks with a loading capacity of 300 tonnes per hour, a crushing and screening plant, and storage facilities to handle the mine’s residue. Plans are also underway to construct a sintering plant, which will allow the mine to ship out the ore after undergoing this pre-smelting process.

Other infrastructure being developed includes roads and general developments in and around Hotazel such as housing, schools, and a hospital.

As the project is located in the remote and harsh environment of the Kalahari Desert, bulk services had to be laid down from scratch at the outset. “That has been our biggest challenge,” admits Van der Merwe, “getting bulk services in such as

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RESTORING BUILDINGS, BUILDING COMMUNITIES

Tel: (051) 403 0400 Fax: (051) 4030450 info@ruwacon.co.za www.ruwacon.co.za P.O.Box 13596, Noordstad 9302, 6 Mimosa Street, Bloemfontein

Heard Tell us about your company and we’ll tell everyone else www.bus-ex.com

kudumAne mAngAnese resources water and electricity.”

Ho w e v er, d e s pit e ruwacon has a reputation for being a dependable, the challenges, it is the professional company operating according to industry simplicity of the project standards, international best practices and uncompromised that defines it, says Van business ethics. ruwacon recently entered the mining der Merwe. “The operation industry by engaging in a civil earthworks project with is a simple set-up with Kudumane Manganese resources in preparation for the construction of a railway line and internal roads. no major technolog y our scope of expertise ranges from construction, involved—it is a simple maintenance and repair as well as civil contracting blast-and-haul mining making us one of the preferred construction companies process. The plant itself is to a growing number of clients in the mining industry. also very simple. There’s ruwacon’s mission is to complete every project no technology involved successfully, within budget, on schedule and with in the first phase: for the impeccable quality. www.ruwacon.co.za next five to seven years, it is a simple process. This keeps the level of capital investment low as well.”

The operation occupies one of the poorest regions in the whole of South Africa, and Kudumane Manganese hopes that its social and labour plan will have a positive impact on surrounding communities. “The social and labour plan makes provision for many different activities we must undertake according to the Mining Charter in South Africa.”

Under the Mining Charter, mines should work together and pool their resources in order to maximise their benefit to an

rUWACON

2013 end of year target for full production Minister shabangu

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individual area, he explains. “So we’re now negotiating with other mines to see what is already in place; and at the same time we’re talking to local communities to see what is outstanding and what we still need to do.”

The company has recently met with the regional council to identify the activities in which it can participate. The mines in the area are looking at developing Hotazel; as well as the housing, schools and hospital, the mines hope to bring in a better water supply, as the current supply is not sufficient for the population. Also on the agenda is the renovation of electrical power lines. “This is the poorest part of our country, and anything that is of assistance is greatly appreciated by everybody,” says Van der Merwe. “There’s a lot of participation locally and a welcoming environment, ensuring everybody benefits.”

The company also has a robust plan in place to employ local people. “As part of our social and labour plan, 80 per cent of our skilled workers must come from the local community; then we aim to ensure that through skills transfer, 100 per cent of our workers will come from the local community in the future. We will achieve this through giving out bursaries, training, or whatever is needed; but eventually that’s our goal.”

The bulk of workers will be sourced from within the region’s John Taolo Gaetsewe District Municipality. Once fully operational, the project will give preference to the locally unemployed wherever possible, and only where local employees cannot be sourced with the requisite skills and experience will national recruitment take place.

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kudumAne mAngAnese resources

suzuki, the late Mr sisulu, former chairman of KMr, Minister & others

Specific areas that will benefit from the employment of between 200 and 300 people directly and up to 300 indirect employees will be the Joe Morolong Local Municipality, the District Management Area, Hotazel as a whole and thereafter the rest of the province. Up to 500 people will be employed during the construction phase.

In terms of the environment, the operation’s simple nature means that risks are fairly easy to assess, says Van der Merwe. “In essence there’s not a lot of waste from our mine. However the biggest risk is fuel: we store a lot of fuel on-site for our equipment, so that’s our biggest environmental risk. The rest is simple,

it’s all from the mine—issues such as dust, for example. But there’s no hazardous material from the mine itself.”

The key to success on this project has been keeping things simple and costs down, says Van der Merwe. “The biggest thing for us is making sure our capital is low. You need to be a low-cost producer and if you can’t do that you’ll be priced out of the market. In a sense, there is nothing exceptional about our project: it’s really very simple,” he concludes. for more information about Kudumane Manganese resources visit: www.kmr.co.za

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Advantage PressurePro

Blowing the whistle

on leaks Even though the need to have properly inflated tires is widely understood, it is an area that is often ignored—but there is help at hand written by: Alan Swaby research by: Richard Halfhide

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Russian distributor SKD working in the field with a customer

AdvAntAge pressurepro

A

tire blowout on a freight truck is disruptive enough, what with time lost for both the driver and vehicle, not to mention irate customers with unfulfilled delivery schedules. But just imagine how much devastation an unexpected tire problem would be on some of the mining industry’s earth moving vehicles.

“On some of those larger tires,” explains Phillip Zaroor, founder and CEO of Advantage PressurePro, “it can take several hours just to let the air out. By the time you’ve changed a damaged tire, you could have lost an entire shift and that could represent tens—if not hundreds—of thousands of dollars of lost production.”

Not surprisingly, then, more and more mining companies are taking a keen interest in PressurePro, the world’s first commercially available external tire pressure monitoring system (TPMS); and Zaroor is expecting PressurePro to be in great demand at the company’s forthcoming MINExpo booth, where the message of longer tire life, greater fuel economy and more efficient tire pressure maintenance is sure to strike a chord.

Twenty-one years ago, this product simply didn’t exist. But after deciding that early retirement wasn’t nearly as interesting as he expected, Zaroor was fortunate enough to meet an engineer who had patented, but still not built, a TPMS system. “We bought the patent,” he says, “and then worked with a company to develop the first generation of PressurePro. It met all three of my criteria

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for a business and product: it targeted a very large market; it filled a growing need; and the market could be readily segmented enabling us to develop them one by one as time and resources allowed.”

Regardless of the size of wheel, PressurePro works in much the same way. A small sensor, weighing about 15g (0.5oz), screws onto the tire valve and takes pressure and temperature readings every seven seconds which are then transmitted to a monitoring panel located in the cab updating readings every five minutes. An immediate alert is sounded when pressures drop by 12.5 percent and 25 percent low, and for 25 percent to 45 percent high (user settable), as well as upon a high temperature of 200F. “In the best scenario for the driver,” says Zaroor, “he is alerted to the need to get some air into the tires; but it could also save their life by avoiding a puncture or worse, a blowout. By monitoring the time between the first and second alarms, the driver can tell just how fast the tire is going down and therefore how seriously the tire is damaged.”

In the beginning, the recreational vehicle market was the first to be tackled and it proved a good choice, keeping the company well occupied for the first decade. By then, the trucking industry had started to take

an interest and not only was PressurePro onto the second generation, it had defied the outward flow of manufacturing jobs to the East by bringing production back to the US. “We don’t manufacture ourselves,” explains Zaroor, “in fact, we have a staff of only seven taking care of engineering and sales. Instead, we prefer strategic partnerships in everything we do. Our manufacturing partner is based in

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AdvAntAge pressurepro

six wheel monitor with sensors

Lansing, Michigan, where there is a talented workforce with lots of production skills learnt in the Detroit auto industry.

We are very satisfied with the partnership we share with our manufacturing firm as well as the high quality of production and quality control they provide and have been for years.”

Zaroor is also very complementary about the cooperation and assistance the company receives from component suppliers such as GE, Microchip and Lectronix. “Officially we are on the fourth generation,” he says, “and work on the fifth is just about to start. But in reality we are making fine adjustments all the time as our component suppliers provide new and better technology for our use.”

As well as a growing number of end users who have gotten wise to the benefits of TPMS, the message has also gotten through to legislative bodies. TPMS is now mandatory on all new automobiles in the US and will also be made mandatory in Europe soon as well as being considered in several other markets including China. However, in their wisdom, car manufacturers have tended to buy the least expensive option which is not always the best. Not surprisingly there are now other TPMS products on the market—all of which are Chinese knock-offs of PressurePro and have neither the quality nor the options provided by PressurePro. “A typical 22.5 inch tire,” he explains, “does 500 revolutions every mile. It has to endure heat and cold, sun and rain and lots

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russian distributor sKd in the field with a mining customer

“the lifecycle cost of pressurepro is recognised As A frAction of Anything else on the mArket” of vibrations. The copycat products fail by themselves in short order and eventually customers find their way to us to try ours and find that even though there is a small premium to be paid, the superior components we use are more reliable and last for years, not months—sometimes up to three times longer. The lifecycle cost of PressurePro is recognised as a fraction of anything else on the market and is appreciated by customers

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who are not spending time working on cheaper imitations that require more attention and maintenance.”

At the other end of the price scale, some manufacturers, including some of the larger tire manufacturers, are selling their own TPMS systems but rather than costing the $150 cost for a typical PressurePro sensor, competitor products can have a price tag that is $800 to

AdvAntAge pressurepro

sensor with protective plates

$2,200 per sensor and a much shorter life. PressurePro is working with several of the largest tire manufacturers on their line of large commercial tires and manufacturers such as Eurotire offer PressurePro along with their tires.

“Mine operators,” says Zaroor, “have found that even having a monitor in the cab doesn’t always get the driver to stop and take care of the tires. So telemetry— or the ability to transmit tire information by radio to someone else or to monitor a vehicle as it passes a set area — has become very important to the fleets and we have partnerships with well over 45 of the leading telematics providers around the world. ” So the end result of all this work is that

Monitor in cab of mining equipment

globally, there is something in the order of nine million tires protected by PressurePro (40 percent of all units are exported all over the world to mines, quarries and other commercial applications). Since its second year in business, PressurePro has always been profitable and in the past five years, growth has never been less that 10 percent and at times has doubled or more. Within three years, Zaroor expects the company to realize revenues of $200 million or more; but this will only be a fraction of the savings end users will accrue. for more information about advantage pressurepro visit: www.advantagepressurepro.com

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Martin Engineering Company

Leading

with service Martin Engineering is expecting to make a big splash at MINExpo International 2012 by introducing its own brand of electric vibrators and newly developed EVO heavy duty products for bulk handling applications written by: John O’Hanlon research by: Marcus Lewis

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Martin Transfer Point Systems upgrade belt conveyors by eliminating dust and spillage, reducing maintenance, extending component life and improving conveyor performance

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eponset, Illinois is an unlikely place to find an equipment manufacturer that does the most rugged type of material handling anyone could imagine. It may be in the same state as Peoria and Chicago but it’s a tiny town set amid cornfields; nevertheless, this is where in 1954 founder Ed Peterson chose to move the business he’d set up ten years earlier a few miles down the road in Kewanee. The problem he solved then was just the same as anyone faces today if they are handling materials that won’t pour easily – what do you do to empty your hopper, clear your truck bed or get the cement out of a mixer? Standard practice was to lay into the container with a hammer or a two-by-four and shake the stuff free.

Peterson figured there had to be a better way and came up with a vibrator you could attach to the system so it would never block. Vibration is normally a bad thing in mechanical systems; this is one of the few instances in engineering where vibration actually promotes flow. So Martin Engineering still lives in Neponset, with the difference that it now occupies a huge industrial campus that houses its world class manufacturing, administrative and research facilities. The company remains in family hands and Edwin H Peterson, the founder’s son, is its chairman. And rural Neponset is a destination for businesses from every continent with materials handling problems to solve.

Many of them operate mines. According to US managing director Mark Huhn,

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most of the firm’s products sell into the mining industry, and it is the largest single destination for vibration products.

“Historically, we developed a significant business in North America selling to OEMs of vibratory equipment. We also sell vibration products to end users to promote flow in bins, silos and hoppers, help move product out of railcars and many other applications.”

No mining or power station coal handling operation can fail to know all about Martin Engineering’s belt cleaners.

The bane of conveyors is ‘fugitive material’ that either falls off the belt or is carried back to the point of transfer or delivery and these products make sure the material stays where it is meant to be. Martin Engineering does not supply the conveyor or its most expensive component, the belt, but the engineered products that go onto it like belt cleaners, trackers to keep it centered and transfer units that make the belt last longer and work at maximum efficiency. “We enhance their equipment,” says president and CEO Scott Hutter. “We can put products to reduce spillage or mitigate dust onto a brand new system or install them later. Our partners don’t just want to buy a belt cleaner; they want to

buy a clean belt! We sell them the product and the service. We install it and maintain it under the MartinPLUS contractual agreement, and come in regularly to keep the equipment adjusted properly.”

For more than 25 years Martin Engineering sold electric vibrators as the exclusive distributor in North America for a European manufacturer, but two years ago this arrangement was terminated. “It was

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the center for innovation (cfi) at Martin’s world headquarters in neponset, illinois

apparent to us that as a global commodity that needs to be company with business units effectively recycled. “A lot of in every part of the world it our mining customers are no longer made sense for us very excited about putting to be limited in our market our electric vibrator product like that,” says Huhn. in their applications and “We wanted to be active that is why we are showing cost of center for in the global OEM market it at MINExpo,” says Hutter. innovation (cfi), as we had been in The new products were opened in 2008 the States and under the developed at the $5 million existing agreement we Center for Innovation (CFI) couldn’t do that.” opened in 2008. It was The decision was taken to develop a new conceived largely as a product development range of electric vibrators, which have facility but has proved to be much more applications in mining and in particular complex. It was instrumental in working the oil & gas sector. A typical application is out the processes for manufacturing the on shale shakers, the screens that separate electric vibrators and has proved to be a cuttings from drilling mud, an expensive global facility where customers can come

$5

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for specific bulk handling solutions. Case studies from around the world are shown on the company website. “It is unique for a company our size to have an innovation center like our CFI and we can get products to market much quicker because of it,” says Hutter.

In the last decade Martin Engineering has gone global. Ten years ago, says financial director Ron Vick, 80 percent of

its sales were in the US. “We grew from being a company that just thought it was global to one with over half its turnover in other markets, and consequently with less reliance on the US market.” That has helped the company grow as the US coal industry slowed. It now has manufacturing and distribution facilities in every major mining economy around the world including South America, Germany, China, South

“As mining mAjors globAlize they wAnt to work with someone who hAs representAtion Around the world And we Are there wherever they Are”

Martin’s new capabilities include sophisticated dynamometer testing that allows the company to map the shape and values of an electric motor’s torque curve

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Martin opened a new service center in gillette, Wyoming to provide factory-direct parts, sales and service 24-7 for the mining industry in powder river basin area

Africa, Mexico, India, Turkey, UK, France and Indonesia. Australia is served under a licensing agreement going back decades, and the company is reviewing opportunities, Vick says, for future penetration into Russia, the last remaining major market in which it has no settled presence.

The electric vibrators will attract a lot of interest from overseas visitors to the show, looking for efficient ways to power screens from a manufacturer capable of being more a partner than a supplier. They make sense of the entire product portfolio.

Where product development is concerned, though, visitors will want to take a close look at the new EVO range of heavy duty products specifically designed for mine duty applications whether surface or below

ground. “For some time we have been hearing from our mining customers that they need to increase the speed and capacity of their conveyors,” says Hutter. “We have responded with our mantra of haul mass which talks about moving more material faster. We are unveiling a heavy duty line of all our transfer components at MINExpo – and I think they will find we have answered their challenge!”

The company’s great advantage, he believes, is that though there are competitors in every local market, Martin Engineering is the only one that is present everywhere coal is mined. “As mining majors like BHP Billiton and Vale globalize they want to work with someone who has representation around the world and we

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mArtin engineering compAny are there wherever they are.” In addition to recently opening a new facility in Gillette, Wyoming to service the Powder River Basin region, Martin Engineering has just moved into brand new premises in China where it has had a presence for a decade. The 4,000 square meter facility is complete with manufacturing and R&D and the business there supports 100 employees and 20 fully trained Martin service technicians. Two years ago Martin decided to move into India, acquiring a company in Goa and building a standalone business unit for production of Martin products in Pune.

Future growth will come from expanding the company’s footprint in those areas where market share is lower, says Vick.

“As the market base consolidates, customer loyalty helps us. We need to keep closer to the customer, and providing innovative solutions along with in-field service at the customer site are critical differentiators for our company. Some products like air cannons and cleaners are getting commoditized; many companies can make it and sell them. But it is the application knowledge that Martin people possess that provides the competitive advantage. The breadth of our product offerings is only effective if we can solve our customer’s problems. Our expertise and the service we provide will always be the lead value to our customers.” at the upcoming Minexpo international 2012, Martin will be showcasing its new evo® heavy duty product line specifically designed for mine duty applications

for more information about Martin engineering company visit: www.martin-eng.com

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A sInglE

SOURcE Of TRUTh MICROMINE produces a software suite that draws an accurate picture to support sustainable business and sound investment decisions written by: JOhN O’hANlON research by: rIChArD hAlFhIDe

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MICROMINE products are found in the majority of mines in Australia

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uestion: wherein does a mine project’s value lie? Answer: the quality of its resources and the effectiveness of the plan for exploiting these.

Well, that is part of the answer. Further down the line the many thousands of active mining projects depend on their ability to attract investors on the world’s stock exchanges and venture markets. At the one end there is the mass of data generated by historic explorations, current and recent drilling programs and the researches of geologists; at the other there are individual institutions and governments keen to push forward but wondering which projects are going to fly and which may crash. How can they know?

So many questions, and who can blame the major and minor players for talking up the projects on which they have hung their hats? Investors rely on analysts, though, to make sense of the data put out by the mining companies. That is where MICROMINE comes in. The company had its origins on a boat gathering ocean floor data in Australian waters for an oil and gas (O&G) company.

At the time, 1986, the data had to be faxed onshore. The three mining surveyors on the boat, including managing director Graeme Tuder, knew there had to be a better way so they pooled their expertise, developed the 3D modelling program that is now Micromine and incorporated the company in that hottest of mining hotspots, Perth.

From there the company spread throughout Australia, where its products are to be found in the vast majority of

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mines, from the coalfields of the Hunter Valley and Bowen Basin to the open pit iron ore mines in the Pilbara – and every type of smaller project, too. Now it is true to say it is present in every mining hotspot in the world from Russia, China and South Africa to the Americas, with two offices in the US and a major presence in Vancouver, Canada.

That growth came not from business development but through consulting.

“Micromine Consulting Services delivers competent person reports compliant with international and local reporting standards such as JORC, NI43-101, SAMREC, SEHK (Chapter 18, Hong Kong), China MLR, Mongolian Standard, GKZ Standard and PERC Code,” says Rhonda Bulmer, sales manager for North America. “Often it came out of Pitram and Micromine Consulting because we dominate underground mining as a product of choice globally.”

The defining factor and the unique proposition of MICROMINE is that unlike most of its competitors, MICROMINE’s products weren’t adapted from existing IT platforms – every one of its offerings from the original exploration and mine design product Micromine to Geobank, the data management system and the operations management tool Pitram was designed

from the bottom up by miners and mining geologists. Bulmer thinks this has a lot to do with the global success MICROMINE has had. “Both the methodology and the terminology are familiar to mining professionals – they are comfortable with it.” Even Geobank, which was acquired from BHP Billiton in 2000, has the same pedigree; it was created by geologists for geologists.

“It is a logical geological database!” she

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MicroMine products are designed by miners and mining engineers

explains epigrammatically, infrastructure design. It does “which means it naturally two things; it gives a visual takes the user on the journey single model by uniting a that a professional geologist multiplicity of design inputs would need to go on.” to a project, reducing error estimate number of Rhonda Bulmer came and making best use of time, exploration companies to MICROMINE in 2009 and it introduces intelligent working within canada processes.” attracted by the opportunity to exercise her enthusiasm The bugbear of mining, for business information and construction too for modelling – she describes herself as a BIM that matter, has always been that the most evangelist – in a company that really buys pertinent questions were never asked into that concept and whose tools are tailor until too late in the process, resulting in made for clients who see BIM as the future extensions, variations and reworking, she of mining design and implementation. “BIM continues. “BIM brings critical issues to the works for any process that has a design beginning so you can eradicate them or at attached – from underground resource least reduce them; and we all stay honest design right through to above ground round the table so that we all know what is

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going on: that is what I am promoting, and that is why I joined the mining industry!”

Her terminology is revealing – she uses the words honest and truth a lot and sees the MICROMINE proposition as offering that source of truth right through the process from data management to funding decisions.

Take Geobank. Data is a minefield in more ways than one! A mining company inherits

tranches of historical data then adds to it by running its own drilling programme: then it has to make sense of these disparate blocks of information. “Geobank is like the machines that sort out different notes in a bank – it lines up the data so you can count it more easily.” The biggest competitor, she says, is the familiar Excel spreadsheet, but apart from its catch-all design (and the fact

“bim brings criticAl issues to the beginning so you cAn erAdicAte them or At leAst reduce them”

pit and block model

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Mine and orebody models

that it comes at no more than the cost of an MS Office licence) it is not as infallible as its proponents suggest. MICROMINE ran one client’s data through Geobank and discovered not the handful of errors expected but 40,000 of them, including intervals missing, duplications, and big holes in the data. “Geobank picks all that up so when the time comes to visualise the model, you have a very accurate picture to report back to the public and the shareholders.”

So even if a company outsources its data management – perhaps especially so – it is worth its while to install Geobank to be able to present clean data to the analyst. It keeps them honest. And Geobank is the most cost effective solution around. The nearest data

extraction competitor charges up to $60,000 to implement, which is four times dearer than Geobank – and Geobank like its sister products is modular and can be customised to the client, unlike the competing ‘fixed databases’ where what you see is what you get. “What we really hang our hat on,” asserts Bulmer, “is that we work first with the exploration company, then the geologist and the exploration manager to grow with that business. Early stage companies haven’t got a lot of money but they need to codify their asset because that’s what will get them the money!”

Having conquered Australia where MICROMINE products are widely used to support target generation through to

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mine operation and it is now a partner as wide open simply because of the in the ACARP Project, an initiative by rate of growth of mining there. There the Australian Coal Industry to establish are estimated to be more than 2,000 a Borehole Data Logging Standard, the exploration companies actively working company has established an unassailable within Canada alone and these are the lead in many vital markets such as South companies MICROMINE is keen to work Africa and Indonesia. In China and Mongolia, with. “Canada is the biggest mining growth when mining companies submit resource area in the world. We understand that there documentation or reports is a distrust of software on drilling campaigns, companies among the they are required by the mining community – they government to supply it in a have seen them as predatory Micromine file generated by and a lot less interested in the Micromine 3D product supporting their products – a truly breathtaking than they are to sell them.” the idea for micromine began to be developed achievement.

MICROMINE’s strategy Now Canada is seen will be to make itself known

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open pit and underground mine design

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“we Are prepAred to invest A lot of time And Add A lot of vAlue to get our customers up to speed” in the first place by taking roadshows to the main mining cities, running seminars and workshops and making a big splash at all the industry exhibitions.

Another product that will appeal in Canada is Field Marshal which backs up Geobank, exists on a handheld and collects in-field data. For people who are used to coming in from a day’s logging on

paper, cross-eyed and only too aware of the errors that are bound to creep in, Field Marshal is the ideal way to capture data accurately and then upload it to the parent database. It is cheap, and once bought it is the property of the client – no need to buy an annual licence.

The sales team has already been doubled and will double again, she says – expect to see another office opening in the east. In particular, she intends to deliver an exemplary level of ongoing support to customers old and new in Canada, walking every step of the way with them.

“If we just came in as a one hit wonder we could expect a lot of single sales but not a viral take-up, because people would not know how to make it work for them.

We are prepared to invest a lot of time and add a lot of value to get our customers up to speed.” But new users invariably comment not only on the logicality of the programme from an industry point of view but on how user-friendly it is, she says. “The Windows interface is familiar to everyone, and there are wizards to take you through different tasks so you don’t have to rely on your memory of the training you did six months ago!”

Even upgrades and new releases, a

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Both the methodology and the terminology are familiar to mining professionals

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40,000 errors found in one client’s data

constant headache for subscribers to the major platforms and often seen as a big hidden cost, are just another service in MICROMINE’s world, included in the annual licence fee. “Prior to the release we run half day workshops and seminars in the evening to familiarise users and to help them understand how it might affect their workflow. We will also run transition workshops and go to the clients and talk them through these changes.”

In any case, like the core product, changes are mainly user generated, Bulmer adds.

The most recent release of Micromine has an entire segment around Google Earth.

“People wanted to be able to put a plan view directly into Google Earth and see what it looked like – did it butt up against the forestry restrictions or the cultural buffer that has been put on the property, for example?” In one case this revealed a georeferencing error that would have crossed a watercourse – a good example of how Micromine is an open model and a two way street, she points out. for more information about MicroMine visit: www.micromine.com

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Xstrata Technology

A SLOW

GRIND

Mineral Processing Manager Greg Rasmussen talks about the role of one of the leading exponents in new mining technology in the introduction of new ideas to the industry

written by: Alan Swaby research by: Robert Hodgson

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IsaMill in use at Anglo Platinum mine in Amandelbult, South Africa

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alph Waldo Emerson promised that if we built a better mousetrap, the world would beat a path to our door. It’s a common theme, though, within the mining industry, that customers aren’t so easily weaned away from the technology they know and love.

Xstrata Technology can trace its roots back for over 30 years and many of the new technologies it has developed have been wrought and tested at Xstrata-owned mining sites. Many of its brand names carry the ‘ISA’ prefix – testimony to their origin at Mt Isa, one of Australia’s most successful mines.

It’s now the job of Greg Rasmussen, Mineral Processing Manager for Xstrata Technology Canada to spread the message throughout North and South America from his office in Vancouver. “Xstrata is first and foremost a mining company,” he says. “The 70,000 strong workforce is divided between six operational divisions and 75 mining and smelting plants with interests in base and precious metals and coal. But through Xstrata Technology, we have no problem in marketing our processing advantages to what are essentially competitors. The technology is there to create greater productivity and efficiencies to serve society as a whole. And from a practical point of view, the more feedback and knowledge we can get from as wide a range of applications as possible, the more we are able to continuously improve the technologies.”

The Canadian office was opened four years ago at the same time as the office in

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Santiago, Chile. The 25 staff in both centers have years of operational experience and can talk to customers with an insider’s perspective. Discussions about process plant cover both brand new projects and upgrading of existing facilities. They encompass how old machinery can be replaced with newer smaller designs or how a parallel stream can be added to increase output with minimal disruption.

“The unfortunate reality,” says Rasmussen, “is that new mining projects are likely to be linked with lower grade ores that at one time wouldn’t have been considered. But the non-stop demand for minerals means we have to find ways to exploit these deposits which invariably involves ever more complex processes.

If this is to be done economically, it calls for more efficient technologies and

“We have no problem in marketing our processing advantages to what are essentially competitors”

IsaMill uses a ceramic medium which wears ten times slower than steel

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Morenci copper Mine, arizona

cyclones as a means of techniques to minimize grading and separating environmental impacts.” material. “Cyclones are At the start of all very inefficient,” says processing circuits is the need to crush and mill the Rasmussen, “and often lead xstrata’s global mined ore. Lower grades to material unnecessarily workforce often need finer grinding re-entering the grinding and it was, in fact, the process. The horizontal need to grind material down to less than design of IsaMill lends itself to a smaller 7 microns which led to the development footprint and less energy usage than of IsaMill. “Conventional mills use alternatives and enabled us to rapidly steel balls as a grinding material,” says scale up to larger 3MW and 8MW mills.

Rasmussen. “This can often lead to For the first time we were able to offer complications in the metallurgy. IsaMill the advantages of inert stirred milling to uses a ceramic medium as small as 1mm, high tonnage, mainstream grinding. The which wears ten times slower than steel Xstrata philosophy is to develop easy to and is metallurgically inert.” operate technology and in the case of IsaMill also does away with IsaMill, easy to maintain plant where a

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team of just two are able to complete a disc and liner change in eight hours.”

There are now 113 IsaMills installed worldwide, although the Americas are lagging well behind in this respect. “Four years ago,” recounts Rasmussen, “when we opened the office, we had only four IsaMills in North America. Now there are 22 due to be in operation by 2013 including the seven projects underway at the moment.”

In order to simplify the supply chain, only the most critical components are imported from Xstrata’s manufacturing plant in Germany. Ancillary equipment such as motors and gearboxes and as much of the steelwork and electrics as possible are sourced from suppliers close to the project location.

Another process originally developed for Xstrata but today widely used throughout the mining industry is the Jameson Cell flotation process, driven by fluid mechanics.

In the late 1980s, conventional column cells were failing to meet Xstrata’s needs and metallurgist Professor Jameson was called on to take a fresh look at flotation techniques. The first commercial installation was completed in 1989 and produced fine bubble generation without external equipment or spargers and intensive mixing

without mechanical agitation.

With their high throughput in small tanks, the cells provide fast response and easy process control for a wide range of product grades and recoveries. Since then it has been continuously improved and is now on version IV, said to combine the original advantages of small footprint and small bubble size but with more robustness and operator friendly use.

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anglo platinum’s amandelbult mine, south africa

Part of the problem coarse grinding, they can all purveyors of new significantly underestimate technology encounter is the grinding needs below 100 understandable concern microns. In our tests we use that however good the story representative samples and isamills installed might sound, it could fail to provide accurate scale-up worldwide data on both power and live up to expectation once put into practice. Rasmussen product size distribution.” and his team address this So it seems that Ralph problem with proven one-to-one direct Waldo Emerson was wrong, but inventors scale-up from laboratory test-work. “In ball the world over have always known this. mill laboratory tests, for example,” he says, Innovation always needs to be accompanied “25mm balls in a small laboratory ball mill by patience and persistence. will have different trajectories and interact differently with the shell lifters and ore for more information about particles than in a large production ball mill.

Xstrata technology visit: While techniques such as the Bond Work www.xstratatech.com Index and ‘scale up factors’ are useful for

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Building a better

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dorcE holding A global business in every sense of the word, DORCE plans to build upon all that it has achieved to date.

Deputy general manager Dr. Ferzat Mercan discusses how it intends to do so written by: WIll DAyNeS research by: WIll kIrBy

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26.000 person residential city, Al Mafraq, UAE

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he legacy of DORCE as a structural works, DORCE also conducts company can be traced back to all manner of engineering tasks required 1982, with the founding of parent for civil and electro-mechanical works on company, ALÇE Prefabricated site. “In addition to its contracting services, Steel Construction Industry and DORCE also owns one of the largest Trade. What began as a small workshop prefabricated, steel structure manufacturing operation based in the Turkish capital of facilities in the world.

Ankara producing minor steel construction “As the many hundreds of projects that works and steel furniture, quickly evolved have been successfully realised over the years to become a key supplier of prefabrication prove,” Mercan continues, “we have always steel structures to some of Turkey’s biggest been a company that embraces innovation. construction companies.

Nevertheless, what I would identify as The foundations on which DORCE was DORCE’s most important characteristic is built truly began to take shape prior to its its ability to work quickly and effectively establishment in 1989 when under even the most difficult its owners purchased ten of conditions.” acres of land in Saraykoy In destinations across the on which they built its globe DORCE has been able to realise projects under not factory. Initially employing 40 people, it was only five only intense geographical construction sites years later, in 1994 that environments, but also being simultaneously the company began to in the face of man-made managed at present expand internationally. conditions such as political “As of today,” states deputy instability and civil war. “At general manager, Dr. Ferzat Mercan, “we present,” Mercan states, “we have several are a holding that simultaneously manages large construction projects under way in 32 on-going construction sites in four Iraq. At the same time we continue to take continents. From our 13 branch offices on work in a number of other countries and agencies we manage more than 550 that present complex political and natural engineers and technical supervisors, and conditions, including Sudan, Niger, Nigeria and Mauritania.” some 3500 workers.”

DORCE provides engineering, Africa is certainly becoming an ever procurement and construction (EPC) increasing source of work for DORCE, with services for projects that require high the company involved in four on-going EPC quality solutions to operate in extreme and design and build projects. In Mauritania environments. While providing these it is carrying out the 8400 person, Tasiast services to projects that encompass residential village project for mining workers conventional construction and steel and engineers as well as a pre-engineered

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process buildings and concrete office building project. Meanwhile in Guinea DORCE has temporary construction camps being established in 23 different locations and in Niger it is undertaking work on the Imouraren Uranium Plant worker camp project. Such projects are executed through its sub companies and branch offices. These assets have helped contribute towards successful operations in the likes of Algeria, Libya, Equatorial Guinea, Morocco, Cameroon and Democratic Republic of Congo.

“Africa is a very important market for us,” Mercan explains, “primarily due to its vast amount of natural resources such as oil and gas and minerals. Across the continent one will find numerous developing countries that are embarking on large construction projects involving mass housing, industrial

facilities and other infrastructure projects.

On top of this, many of the world’s leading oil and gas, mining and construction companies operate in these developing nations and that makes Africa a huge market for DORCE.” At the heart of the company’s African growth strategy is an advanced expansion execution plan that encompasses three core themes, those being local manpower, local procurement and local services. When undertaking projects in Africa, DORCE prefers to use local resources as much as possible. “DORCE has always subscribed to the idea of improving local employment and of utilising local manpower,” Mercan enthuses. “Through the appropriate training we integrate local workers with our own qualified personnel and construction technology.”

Similarly, DORCE prefers to utilise local

The 8400 person, Tasiast residential village project for mining workers and engineers in Mauritania

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“dorce’s most importAnt chArActeristic is its Ability to work quickly And effectively under even the most difficult of conditions” procurement means and local services when undertaking work in Africa. “When we are awarded a new project,” Mercan says, “basic services that we require to take place at the project site are often provided locally. Such services include the maintenance of tools and the providing of water and electricity, while the personal needs of our employees are sourced from local markets. What our local supply and recruitment business model does is to enable low income individuals to develop themselves and their abilities.

This is something we are understandably proud of.”

What it can be equally proud of is the safety excellence award that was presented to DORCE Prefabricated Building and Construction Industry Trade for completing five million man-hours without any accident or incident during its Tasiast project, which in on-going in Mauritania.

During the first week of December the company will be turning some of its focus to London where it will be exhibiting at the Mines and Money Exhibition. “We believe this event to be the most important for the global mining industry,” Mercan says, “providing a huge opportunity for companies to promote their own innovative products and services. We exhibited there in 2011 and found it to be a hugely beneficial experience indeed.”

With the vast majority of the major decision makers in the mining world expected to attend, Mercan clearly has high hopes for this year’s exhibition. “Our fundamental goal over the course of the five days is to highlight the importance of prefabricated and steel building systems to potential mining customers. Furthermore we intend to spread the word about our own ability to operate in extreme conditions and under the

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Pre-engineered steel process buildings and concrete office buildings, Zouerate, Mauritania

dorce holding strictest of government regulations.”

If you take a tour through DORCE’s production facilities you will find that the world’s leading manufacturing technologies are being used on a daily basis. “It is unquestionable that as technological developments continue, we will follow these and be one of the first parties to put new innovations to use,” Mercan says.

Additionally, the company is aiming to further draw attention to its contracting abilities. Today in Iraq DORCE is involved in a public housing turnkey project that consists of 1416 houses and 11 social facilities.

At the same time it has 20 on-going vehicle station projects underway in 18 Iraqi cities and has recently signed a contract with the government of Basra to construct a reinforced concrete university hospital.

“As we continue to grow,” Mercan concludes, “South America and Australia are also becoming two of our newest target markets, with serious steps having been taken to establish a visible presence there.

We already have four hospital projects under way in Venezuela and these will be an important reference point as we aim to capture new business opportunities.

Between our growth in new markets and the increase in projects we expect to see coming from the mining sector, we feel that the future is very bright for DORCE indeed.” for more information about dorce holding visit: www.dorce.com.tr

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atmos global

A jouRnEy to InspIRE And

DIScOvER ExcELLENcE ATMOS Global’s new VerifiedDust platform is a journey in the pursuit and discovery of environmental excellence, says its global president and CEO Dr Orestis Valianatos research by: JAmeS BOyle

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Overview of the Spotted Quoll nickel site

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s dust management and dust control activities become more complex in the fast-paced technological environment of the mining industry, it is important for mine site operators to have access to practical evidence-based knowledge and information that enhances their ability to select strategically important clusters of dust management methods for their active or proposed mining operations.

Headquartered in Melbourne, Australia, ATMOS Global™ (ATMOS Australia Pty Ltd) is a wholly Australian-owned global consulting company specialising in advanced dust impact forecasting, dust management and dust control. The company has built a strong brand identity from its work with a wide range of businesses across a broad range of industries to accurately assess complex air quality risks associated with their operations, increase the efficiency of the recommended risk mitigation measures, and improve their environmental strategy and communications.

ATMOS Global’s clients include large multinational blue chip companies and emerging companies, as well as government regulatory agencies. The company has been developing and pioneering advanced three dimensional (3D) numerical weather prediction and complex air quality modelling, forecasting and management tools for almost two decades. Embracing innovation to advance scientific and technical research, ATMOS Global maintains a forward-looking philosophy by exploring emerging issues of importance to the air quality and business

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DUStPACk atmos global’s new services line-up structure

dr orestis valianatos, ceo, atMos global

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fields in collaboration with leading scientists and engineers in academia, business and non-profit research organisations. ATMOS Global has become globally renowned for its long-term and consistent investment in developing innovative air quality management systems for the industry.

“ATMOS Global aims to be the air quality modelling and forecasting industry’s innovative leader on a global scale,” says the company’s global president and CEO Dr Orestis Valianatos. “Our forwardlooking commitment to being the best is driven by our heritage, central values and global aspirations.”

ATMOS Global recently announced the global launch of the first-of-its-kind new global initiative VerifiedDust™, an ‘Evidence-Based Dust Management and Dust Control Verification Program™’. Its aspiration—“A journey of 1,000 mines, one mine at a time”—was inspired by ATMOS Global’s 2020 vision born from the desire to make a difference.

The international VerifiedDust program is essential to making successful local-level dust management plans a reality by providing stakeholders with an insightful understanding of leadingedge dust management and dust control

Atmos globAl

on site at Western areas’ cosmic boy nickel concentrator

technologies that can be used for mine sites located anywhere in the world and the broader operational framework in which these dust management and dust control technologies are used.

VerifiedDust is a platform for engaging mine site operators with a systematic dust management and dust control framework that will support them in selecting the most suitable and sustainable approaches for their mining operations to ensure compliance with the relevant legislation, improve the company’s image, and increase profitability.

After undertaking a methodical and

thorough verification process on an annual basis, ATMOS Global awards the VerifiedDust accolade (valid for 12 months) to mine sites that are using cutting-edge dust management technologies and demonstrating an ongoing control of their dust emissions.

“Our VerifiedDust global program uses rating grids to provide mining operators with a practical and complete set of defined choices, specifications and actions that will bring immediate environmental benefits.

VerifiedDust is awarded by ATMOS Global based on a three-level rating scale of 3, 4

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“Our forward-looking commitment to being the best is driven by our heritage, central values and global aspirations” and 5 stars,” explains Dr Valianatos.

VerifiedDust came to life last year with Western Areas NL’s Spotted Quoll (Tim King) Open Pit Project (located in Western Australia), which was nominated as a joint finalist with ATMOS Global/ATMOS Australia for one of the most prestigious awards for environmental excellence in Australia: the Golden Gecko Awards for Environmental Excellence (Western

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Australian Department of Mines and Petroleum, 2011). VerifiedDust (five stars) has been awarded for 2011, 2012 and 2013 to three of Western Areas’ mine sites: Spotted Quoll, Cosmic Boy and Flying Fox. Western Areas is Australia’s class leading nickel producer. Its main asset is the 100 per cent owned Forrestania Nickel Project, 400 kilometres east of Perth. Western Areas’ primary nickel mines at Forrestania

Atmos globAl

the spotted Quoll project has reduced dust deposition by using dust impact forecasting from atMos global

are Flying Fox and Spotted Quoll. Flying Fox is one of the highest grade nickel mines in Australia and has been in production since 2006. Spotted Quoll commenced high grade nickel ore production via the Tim King open pit during the first half of 2010. The Spotted Quoll underground mine development (the Hanna Decline) commenced in April 2011. Ore from both mines is processed at the Cosmic Boy nickel concentrator, which has a throughput of 550,000 tonnes per annum. Western Areas is also an active nickel explorer in Western Australia, Canada and Finland.

ATMOS Global’s Air Quality and Climate Change Academy™ is dedicated to the mining industry and supports the VerifiedDust multi-industry program, taking the

form of ongoing ‘outside the classroom’ training and education. The Academy is a highly specialised and workplace-specific innovative instructional platform that delivers information and knowledge using an expert training architecture integrating formal and informal learning activities. It also uses the best process and technology to deliver timely and engaging learning solutions that provide real-time answers to employees’ work-related enquiries.

“The Academy opens the door to an optimal learning structure that closes the learning-doing gap by providing our clients with a hands-on approach to understanding and mastering the use of ATMOS Global’s world’s first advanced air quality management and dust management

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platforms,” says Dr Valianatos. “It makes life better for people on and off the job and sustains the ‘human engine’.

“In the new world order, employees need to utilise the training and development opportunities offered by their organisations aimed at motivating and enhancing their performance and providing them with the skills required before they undertake a new task,” Dr Valianatos continues. “Employees

are not only seeking to work for companies like Western Areas that provide novel training opportunities—they are staying there, because of these systematic and ongoing development opportunities.”

The VerifiedDust program expands the portfolio of ATMOS Global’s elite research consulting services and world’s first multi-component systems that deliver more than 25,000 site-level

“We did not invent forecasting, we invented successful dust impact forecasting”

The Flying Fox mine uses ATMOS Global technology to determine optimal allocation of dust management strategies

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Atmos globAl

Western areas’ cosmic boy nickel concentrator uses atMos global’s web-based daily dust impact forecasts

management strategies dust impact forecasts based on an analytical every year: ATMOS-5D+™, DustAlert+™, DustFinder+™ approach that balances both a nd R i sk B a l a nc e +™. current environmental This is achieved 24/7 management priorities and number of site-level through ATMOS Global’s future corporate goals. We dust impact forecasts ‘Center for Global and did not invent forecasting, delivered by atmos Site Specific Dust Impact we invented successful global annually dust impact forecasting,” Forecasting, Management and Control’™; all these says Dr Valianatos. systems are being showcased this year ATMOS-5D+ is an ‘Integrated 5D Global at MINExpo 2012 in Las Vegas. and Site Specific Dust Impact Forecasting “ATMOS Global’s new dust impact Management Platform for Mine Haul Road forecasting centre has the global Dust Control’™, a world first platform that operational capability to allow mining the company sees as a revolutionary catalyst, companies worldwide to undertake, facilitating the enhanced understanding on a daily 24/7 basis, a ‘forward value and control of dust emissions and marking evaluation’ of their site specific dust the emergence of what it terms a new ‘sixth

25,000

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Trucks at Cosmic Boy site

sense’ era in dust management. “Dust Management 5.0 is a concept coined by ATMOS Global that depicts the convergence of the digital and the physical world,” confirms Dr Valianatos.

DustAlert+: ‘Artificial Intelligence Multi-factor Multi-parameter Dust Impact Early Warning System’™ is an artificially intelligent ‘digital guardian’, an advanced dust mitigation strategy that allows mine

site operators to automatically anticipate potential dust impacts well before they happen and intervene to control dust impacts in a convenient and timely manner, either to prevent them or to reduce their consequences.

Also in the portfolio is the DustFinder+, an ‘Ultra Intelligent Dust Assessment and Management System’™, a first-of-its-kind robust cross-channel dust management

“ATMOS Global’s artificially intelligent dust management systems represent a quantum leap improvement over traditional ‘reactive mechanical automation’” 282 | BE EMEA

Western

Atmos globAl

areas’ spotted Quoll nickel mine

platform that allows mine operators to build serial source and activity specific (including drilling and blasting, bulldozing, excavating, loading and unloading, ore crushing and screening, conveying, waste rock handling, topsoil stripping and stockpiling activities, dust lift-off from exposed mining areas, stockpiles and haul roads) and site-wide dust management optimisation (‘what-if’) scenarios, to continually assess and monitor a range of possible dust control actions and outcomes of allocating resources among a broad set of alternatives and act to improve efficiency and productivity in the critical areas of mining operations.

RiskBalance+ is a first-of-its-kind philosophy that helps mine site operators compile ‘Evidence-Based Dust Management

aerial view of the flying fox nickel mine

Plans’™ that are straightforward and resultsoriented. “The RiskBalance+ philosophy supports ATMOS Global’s artificially intelligent dust management systems built on the intelligent systems theory that allows systems to communicate with and learn from their environment in a ‘space-time continuum’, before, during and after potential dust impacts occur,” explains Dr Valianatos.

“ATMOS Global’s artificially intelligent dust management systems represent a quantum leap improvement over traditional ‘reactive mechanical automation’.”

This constellation of transformative dust management technologies has been assimilated in the company’s new services line-up structure, intuitively named the DustPack™: ‘Evidence-Based Dust

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Earth moving at the Spotted Quoll nickel mine

Atmos globAl Management’™ for ‘any Mine, Anywhere, Anytime’. This could be the next big thing in mining. According to the level of complexity required by mine site operations, the DustPack is available in three high-tech options: Gold, Silver and Bronze.

The DustPack (Gold version) was instrumental in assisting Western Areas to reduce the total annual dust deposition recorded at the location of an environmentally sensitive receptor situated in the close proximity of the Spotted Quoll pit by 24.2 per cent (all factors considered) while the total annual ore mined has increased by 44.3 per cent for the open pit site (2010 versus 2011)—an outstanding environmental performance. “In addition to the evident benefits that mine sites enjoy by using DustPack to map, measure and coordinate the use of their dust management resources, reducing water, energy and labour cost associated with the use of water trucks for dust control, they also reduce the overall haul road maintenance costs, downtime on repairs and fuel consumption of haul trucks, as well as increase productivity by extending tyre life—all crucial elements in the efficiency equation for mining operations,” says Dr Valianatos.

ATMOS Global also uses green energy from GreenPower-accredited sources to offset by 100 per cent the carbon emissions related to its energy consumption. for more information about atMos global visit: www.atmosglobal.com

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EVENTS

the next generation MINES AND MONEY LONDON 2012 2-6 December 2012 Business Design Centre, Islington, London The 10th annual Mines and Money London Conference and Exhibition is expected to be the biggest yet, with over 3000 mining investors and developers crowding into the Business Design Centre.

Europe’s largest mining investment deal-making forum, Mines and Money London helps mine developers to raise capital and investors to discover

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high potential mining investment opportunities from around the world.

As the markets start to look towards recovery in 2013, Mines and Money London will feature an expanded exhibition of over 260 exciting mining investment prospects from multi-billion dollar producers to small-cap explorers.

Helping guide your investment decisions, Mines and Money London also features an extensive conference programme, bringing together the international expertise of leading fund managers, industry analysts and mining

Special preview

n of mining projects

investment entrepreneurs, including Evy Hambro, one of the world’s most influential mining fund managers, Catherine Raw, portfolio manager at Blackrock World Mining Fund and Robert Friedland, chairman, Ivanhoe Capital Corporation.

The investment keynote speech Outlook for mining investment: Identifying catalysts for recovery and growth will be given by Evy Hambro, while Rob McEwen, chairman & CEO of McEwen Mining will speak on Finding and funding the next-generation of mining projects.

In-depth panels and analysis sessions

will provide high-value market intelligence to help you find growth opportunities in today’s volatile markets, as will superb networking opportunities with nightly drinks receptions. The unmissable blacktie Mines and Money London Gala Dinner on the evening of 5 December will feature the presentation of the 2012 Mining Journal Outstanding Achievement Awards. for more information about Mines and Money london 2012 visit: www.minesandmoney.com

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the optimum dryer covering the full spectrum of industry, from mining through chemical to food

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stablished in 1983, Drytech International is a dynamic company dedicated to specialising in hightech engineering for the drying and processing industries.

This philosophy extends from laboratory and pilot plant facilities, turnkey installation and, ultimately, to developing the optimum drying conditions for client applications.

Drytech International’s extensive in-house technology base covers the full spectrum of industry, from mining through chemical to food.

Our product range consists of spray drying, rotary, flash, conveyor / tunnel, cabinet, freeze and all configurations of fluid bed dryers.

The secret of Drytech International’s success lies in the concept and design of its range of equipment. Drytech International has successfully developed numerous

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complex processes based on existing technology, and has created many innovative design concepts. Drytech International is unique in the industry in that it is not dedicated to any particular type of equipment or process, so is not restricted in its approach to these challenges.

Drytech International’s reputation as a company providing well engineered, ruggedly constructed systems, capable of excellent performance, has grown both in the African and international business environment. Although each system varies according to client specifications, state-of-the-art technology has made the Drytech International’s range the preferred choice for drying, calcining, cooling & similar thermal processing requirements around the world.

Drytech International has become an internationally recognised

DryteCh INterNAtIONAl

partner due to its ability to focus on the development, engineering, construction and commission of turnkey installations. The company also provides sound and innovative consulting services with technical advice on all areas relating to process and plant / upgrading of existing plant to higher efficiencies / supply of equipment / full turnkey project / supervision of erection / commissioning / process development.

The final objective is to create the perfect balance between price, specification and performance. This includes criteria such as availability,

wear, optimising maintenance, operator interaction, and fuel efficiency. Cost-effective, flexible, reliable, customised solutions are what you can expect when Drytech International becomes your thermal processing partner!

DryteCh INterNAtIONAl 50 Mimetes road, denver, Johannesburg t +27 11 622 2773 f +27 11 615 1801 e info@drytech.co.za www.drytech.co.za

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consolidating purchases fero and deltaflex have joined forces to become the largest exporter of ground support in Western australia, and are now expanding into africa

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estern Australia’s Perth might be one of the world’s most isolated large cities, but it is at the very hub of the world’s underground mining industry. Fero Group is at the heart of this vibrant industry by manufacturing and supplying the complete range of products that an underground mine would need to purchase to operate.

Fero, a privately owned-andoperated Australian business, is finding that remote mine sites across the globe want to consolidate their purchases, save time and create logistic savings when purchasing ground support and accessory type products. Fero and Deltaflex have joined forces to deliver the heavy ground support on the bottom of the load then pack all the light

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type volume such as poly pipe and ventilation ducting on top. This has enabled both Fero and Deltaflex to be the largest exporter of ground support in WA. Fero will open a new manufacturing facility in Queensland to manage all of its ground support volume on the East Coast of Australia plus Asia-Pacific and the American regions.

In line with the company’s growth strategies Fero will open a new office in Johannesburg in January 2013.

Group sales manager Philip Martin said, “Due to the growth in West Africa mine sites we supply we wanted to base our technical staff closer to the action and Johannesburg is the hub of African mining. I see this as the start for us in Africa and see other offices opening up as we start to partner with various mine sites who want Fero & Deltaflex to hold

FerO grOUP

stock in their respective countries.�

Fero designs and manufactures in-house in Perth using Australian hot roll coil made by Bluescope steel, along with other Australian products. Fero is no stranger to underground mining and the Australian construction industry.

With more than 40 years of trading, Fero has been offering professional and competitive services, extensive industry knowledge and experience, superior quality, innovative solutions, attention to detail and efficient turnaround times. Fero is a national and international manufacturer

and supplier of superior quality steel products. Its anti-corrosion services are critical to WA’s mining, construction, infrastructure and marine industries.

FerO grOUP 44 chisholm crescent, Kewdale Western australia 6105 t +61 8 9453 0000 dd +61 8 9453 0032 f +61 8 9453 0050 M +61 433 330 166 e philip.martin@fero.com.au www.fero.com.au

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flip-flow, way to go hein, lehmann canada sells and services the liwell® flip-flow screening Machines

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or many years the LIWELL® FLIP-FLOW machines have classified difficult to screen feed materials in mining applications such as hard rock mines, (reducing the crusher discharge to a feed size before the mill), coal, coal slurry, coke, petrol coke, crushed dolomite and limestone, iron ore, salt and potash, slag and aluminum slag, silica, and sand, gravel and ores.

All LIWELL® screening machines operate on the unique “Flip-Flow” principle. No other machine uses it.

The outer and inner screen boxes move against each other in a linear motion, driven from a single shaft with excenters at approximately 600 rpm. The opposing action tensions and releases the special screen mats.

The change in shape of the apertures and the high forces will dislodge particles before they peg.

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The machine itself is subjected to only 2–3 g, while the material being screened is exposed to acceleration of about 50 g. The screen deck operates free from blinding or plugging, even with difficult materials. Conventional circular or linear motion screen machines generate significantly less force at 3g to 6g.

LIWELL® machines continuously operate without additional cleaning, yield uniform results, and use low wear polyurethane screening mats.

These high efficiency screening machines will provide you with the highest technical standard with very low operating costs.

Different types and designs of LIWELL® machines and screen mats provide a solution for any difficult screening application. As well as the single deck LIWELL®, we have a double deck LIWELL® machine that can add flexibility in product

heIN, lehmANN CANADA

development. The KT LIWELL® has a conventional top protection deck, on which we can install any screening system such as perforated steel, modular rubber or polyurethane systems. In conjunction with the LIWELL® “Flip-Flow” bottom deck, this machine can make short work of your screening objectives. Our LIWELL® machines can be mounted on a trailer with ancillary equipment such as a feed bin and conveyors to make it a mobile answer to your operation.

With Hein, Lehmann you will

receive customized solutions, complete design and assembly, technical support before, during and after start-up, as well as after-sales support and service with assured supply of spare parts. heIN, lehmANN CANADA INC. 4395 fraser street, ste. 130 vancouver bc, v5v 4g4 p (604) 879-3804 f (888) 809-3022 www.heinlehmann.ca

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innovative magnetic solutions iMt designs, manufactures and markets innovative magnetic equipment for industrial markets worldwide

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he IMT team is committed to providing industry with custom manufactured magnetic equipment that meets and exceeds our client’s expectations in performance and ease of use. IMT’s custom designed systems are manufactured to reduce installation time and costs. IMT provides on-site consultation to provide the most beneficial solution to your magnetic equipment requirements and also offers industrial facilities project management, downtime, cost analysis and turn-key installation.

State of the art magnetic manufacturing equipment ensures the quality standards of our magnetic products. In addition, our computer aided core designs provide the most efficient and strongest magnetic cores for your application. mining Mining requires separation equipment to extract tramp metal before crushers,

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pulverizers, grinding circuits and other sizing equipment. In addition to protecting this equipment IMT’s magnetic separation is used to reduce wear on impeller pumps and other conveying components. Other IMT magnetic products include magnetic conveying, magnetic fasteners and temporary patching solutions. biomass, co-gen and recycling The bio mass, co-gen and recycling industries use many forms of separation.

IMT’s permanent magnetic equipment provides years of dependable and effective solutions to these evolving industries. IMT’s equipment protects grinders, hogs, chippers, presses and pelletizers from the damaging effects of tramp metal contamination while providing a metal free product. wood processing and pulp and paper Wood processing includes sawmills, OSB, chipping and hogging facilities,

INNOvAtIve mAgNetIC teChNOlOgIeS

plywood and remanufacturing plants.

IMT’s magnetic separation solutions are being utilized extensively by these industry segments to protect and increase life of presses, grinders and chipping equipment from tramp metal contamination. bulk handling Bulk handling and ship loading facilities often require IMT’s magnetic separation equipment to purify product before shipment to customers. Materials such as grains, wood chips, coal and other bulk materials are susceptible to metal contamination from the conveying and handling process.

IMT’s separation systems offer cost

effective and efficient solutions to these challenges.

IMT will introduce some exciting magnetic innovations in the near future. As the developers of five internationally registered patents, we offer industry the next generation of patching, fastening and separation technology.

INNOvAtIve mAgNetIC teChNOlOgIeS #1 - 3308 appaloosa rd Kelowna, bc v1v 2W5 canada t (250) 491-5806 www.imt-inc.com

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