BE.Mining

INCLUDING

canada spotlight: anglo american: gem diamonds:

ISSUE No.15

bfl canada:

Optimizing Risk Excellence BFL CANADA’s new ORE service offers a way to turn uncertainty into an asset

+ mine of the month: barrick gold pueblo viejo

HERE’S WHY ONTARIO, CANADA

IS YOUR NEXT

BIG IDEA Opportunities for mineral exploration in Ontario abound. Powered by global leaders in innovation and safety standards, our mining practices are among the safest and most sustainable in the world.

With business costs lower here than in most G7 countries, Ontario suppliers are more competitive – so you can depend on quality goods and services, delivered on time, on spec and on budget. Innovation is at our core. Make Ontario your next big idea.

YourNextBigIdea.ca/Mining

$2.9B

in non-metallic minerals, including diamonds, was produced in Ontario in 2012

$2.6B in gold

$1.5B in copper

$1.4B in nickel

$787M

in other metals such as platinum and silver

Paid for by the Government of Ontario.

business excellence

Business John O’Hanlon Editor johanlon@bus-ex.com Will Daynes Editor wdaynes@bus-ex.com Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com Richard Turner Director of Sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com

Business Excellence brings you content from leading business influencers and strategic thinkers providing inspiration and guidance to help you and your business grow.

We showcase some of the best examples of successful organisations from around the world giving you a unique insight into how they operate.

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

Contributors Henry Bonner Sprott Global Resource Investments Ltd

HINT: For the best experience, click the fullscreen icon

Subscriptions & Enquires info@bus-ex.com

Jacquard House, Queen Street, Norwich, NR2 4SX. England

Infinity Business Media Ltd

The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited. Š Copyright 2014 Infinity Business Media Ltd.

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Issue No.15

lead story

“big money” entering resources

8

Rick Rule, Chairman of Sprott Global Resource Investments Ltd., says some of the ‘big money’ that was circling the resource sector has finally found a home.

12

12 mining

Mining in the Scandinavian Peninsula

The unique geology of the Scandinavian Peninsula has helped transform the likes of Sweden, Finland and Norway into some of Europe’s most important locations for mining.

canada spotlight: 18 Event preview

pdac 2014

A special preview on PDAC 2014, where the world’s mineral industry meets.

28 bfl canada

ore - and more ore

You don’t go into mining if you want to live a risk free life but effective risk identification and management are essential tosurvival. BFL CANADA’s new ORE service offers a way to turn uncertainty into an asset.

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contents

38 DNI Metals

Operating in a Polymetallic Paradise DNI Metals’ Buckton polymetallic black shale deposit represents an incredible untapped mining resource.

46 Alpha Minerals

Achieving high grades

Alpha Minerals’ strategically selected uranium and gold properties are producing the results required to take this junior exploration company to the next level.

54

38

gold: mine of the month

54 Barrick Gold: Pueblo Viejo Mine Revitalising a region

The Barrick Pueblo Viejo gold mining complex remains the biggest single investment in the history of the Dominican Republic and continues to break new ground as it begins to realise its potential.

102 agnico-eagle: Pinos Altos Mine

102

Capitalising on a golden opportunity

Led by the Pinos Altos Mine, Agnico-Eagle’s operations in Mexico’s Sierra Madre gold and silver belt continue to go from strength to strength.

114 Randgold Resources

Reaping Africa’s golden rewards

As its third quarter report for 2013 highlights, Randgold Resources’ African discoveries continue to surprise and create huge value for their stakeholders.

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Issue No.15

124 Eldorado Gold Discipline delivers

Eldorado Gold presents itself as a low-cost gold producer with a vision to create a long-term, profitable business with healthy margins using a disciplined approach to growth.

124

copper: 136 Rio Tinto Kennecott

Creating a community from copper

Rohan McGowan-Jackson, Vice President, Resource Development and Communities, explains how Rio Tinto Kennecott has utilised the vast wealth of the Bingham Canyon Mine to create a thriving, sustainable community.

152 Anglo American: Los Bronces Champions of Chile’s copper

136

Continuing along a path to becoming the fifth largest copper mine in the world and one with several decades of productivity still ahead of it.

164 Collahuasi mine

High altitude mining with broad vision Extracting minerals in the rarefied atmosphere of the high Andes is just one challenge for the world’s fourth largest copper mine.

minerals: 176 Gem Diamonds

Diamond in the rough

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Through the continued success of its LetĹĄeng mine in Lesotho, and the development of the Ghaghoo mine in Botswana, Gem Diamonds remains one of leading global producers of high value and rare diamonds.

contents

188

188 Exxaro Resources Opening new possibilities

Exxaro Resources’ world-class commodity portfolio is defined not only by the commodities that come out of the ground, but by how they have been developed with sustainability at the forefront of every decision.

mining Directory: 206 African Reptiles & Venom saving lives

It was Mike Perry’s fascination with snakes that ultimately led to the founding of African Reptiles & Venom.

206

208 banlaw

unified fuel management

Imagine a solution that ensures safe and secure fuelling, easy operation, accurate data collection and full reconciliation.

210 Bonec Lubrication Equipment earthmoving wearparts

Through innovation, our aim is to continuously satisfy our customers’ expectations.

212 servinca

one engineering and services company A company dedicated to providing engineering and construction services.

214 univar

One network. A world of solutions

214

For over 60 years Univar has connected the mining industry with the world’s premier chemical manufacturers.

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“Big M Entering Re

Rick Rule, Chairman of Investments Ltd., says some circling the resource sector Words by

8 |

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Henr

Lead story

Money” Resources

f Sprott Global Resource e of the ‘big money’ that was r has finally found a home

ry Bonner BE Mining

| 9

R

ick Rule recently commented on a couple of new investment mandates that he believes signal a positive development in the resource sector.

The first mandate is a deal for Sprott Asset Management to co-manage upwards of $110 million in funds along with Zijin Mining Group Company Limited, the largest publicly traded non-ferrous metals mining company in China. $100 million of those funds come from Zijin while $10 million is to come from Sprott Inc., Sprott Asset Management’s parent company. 1 Sprott CEO Peter Grosskopf said: “We believe the combination of Zijin’s technical strengths and Sprott’s resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold.”

In another development, Sprott Inc. announced in December, 2013, that it had been awarded a mandate to co-manage a $375 million private equity fund by South Korea’s National Pension Service with a matching $375 million commitment from the state-owned Korean Electrical Power Company (“KEPCO”), the largest electric utility in Korea.

Mr. Grosskopf said, “This mandate marks Sprott’s second entry into the growing Asian marketplace and solidifies our international reputation for expertise in natural resource investing.” He added, “We are committed to continuing to build our institutional client base as we seek undervalued opportunities in the sector.”

Sprott expects the closing of the second mandate to be completed in the first quarter of 2014.

Rick suggests these new partners give credence to the argument that the sector is undervalued. Many large statecontrolled funds are using the weakness in the natural resource market to set themselves up for future returns, but also to make strategic investments beyond the scope of merely generating a profit on investments.

Rick explained why he views this as an important development for the sector: What is interesting about both of these mandates is that they represent new capital to the sector.

Our Korean partners in particular are Asian sovereign or semi-sovereign investors looking to make the types of strategic investments that North American and European countries

“We believe the combination of Zijin’s technical strengths and Sprott’s resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold” 10 |

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Lead story

“From talking to sovereign investors in my network, it appears big money is circling the physical sector as well.

The money has not yet ‘landed,’ but it is important to know what might happen to those markets if the ‘big money’ begins to settle”

looked to make in the 1950’s and 1960’s – to secure their country’s access to natural resources and to develop the financial infrastructure in their capital markets that will allow them to play the game in natural resource businesses.

Natural resource investing that participates in financing the juniors has typically originated from small hedge funds or open-ended mutual funds, but these are often generalist, short term investors relative to the natural resources cycle.

Our new partners are long-term investors with the intention to stay in the natural resources business.

These new type of investors are more focused and long-term participants with financial and strategic objectives, with the design of providing the raw materials for the development of their respective countries.

That these private equity pools of capital are choosing to deploy capital in the natural resource sector now is an “extremely bullish” sign for the sector, says Rick, though Sprott is unlikely to rush into the sector in order to deploy this capital immediately. In fact, it will

structure the deals in a way that makes sense for these funds. Nonetheless, in the event of a recovery, Rick believes that participation from these Asian partners will help strengthen the sector and allow Sprott and its partners to invest rationally in both bull and bear markets.

There may also be more of these types of investors to come, says Rick: “From talking to sovereign investors in my network, it appears big money is circling the physical sector as well.

The money has not yet ‘landed,’ but it is important to know what might happen to those markets if the ‘big money’ begins to settle. We believe it would not take much demand for physical delivery on the futures exchanges to create a very unsettling experience for the large institutions that are short the trade.”

Contact If you are interested in learing more about investment opportunities, please e-mail Henry Bonner at: hbonner@sprottglobal.com

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Mining Scandinavia

The unique geology of the Scandinavian of Sweden, Finland and Norway into som mining, locations that are expected to g Words by

12 |

BE Mining

Wi

Mining

g in the an Peninsula

Peninsula has helped transform the likes me of Europe’s most important locations for grow in importance in the decades ahead

ill Daynes BE Mining

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Mining

M

easuring approximately 1,850 kilometres in length and with a width varying between from 370 to 805 kilometres, the Scandinavian Peninsula is one of Europe’s largest. Covering Norway, Sweden and most of northern Finland, the Peninsula we see today has been shaped through history by the impact of various Ice Ages, events that have deepened its river valleys, created the famous fjords of Norway and left only a small percentage of the land arable.

The crystalline substrate of the land and absence of soil in many places have consequently exposed vast mineral deposits of metal ores, such as those of iron, copper, nickel, zinc, silver, and gold, the most valuable of which being the deposits of iron ore found in North West Sweden. It was the discovery of such deposits that brought about the building of a railroad from North West Sweden to the seaport of Narvik in Norway. From Narvik the iron ore could be exported by ship for smelting into iron and steel in other European countries, including Germany, Belgium and the United Kingdom.

To this day, Sweden, Finland and Norway remain among Europe’s elite mining nations. Indeed as of December 2009, Sweden was noted to have had a total of 879 active deposits, while Finland and Norway possessed 343 and 160 deposits respectively.

Sweden’s mining legacy dates back more than one thousand years with the country today one of the European Union’s (EU) largest ore and metal producers, and far and away its largest iron ore producer.

Indeed almost 90 percent of the EU’s

14 |

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iron ore mining takes place in Northern Sweden. The country, together with Finland, also contributes significantly to Europe’s total production of gold, silver, zinc, copper and lead.

As of 2008, the production value of mining and quarrying in the Swedish part of the Barents region alone was estimated as being 2.5 billion euros, a figure that is equivalent to 66 percent of the country’s total mining production. In addition to iron ore, the active exploration for and development of Sweden’s substantial base metal and gold deposits means that mining is a direct contributor to roughly 0.3 percent of the country’s annual GDP. Unsurprisingly, given its long and successful history, Sweden’s mining sector also plays a leading role in metallurgical research and development, as well as in the development of advanced and ecological underground mining.

Much like its neighbouring country, Finland also has a long history for hosting mining operations. Copper, nickel, cobalt, zinc and lead ores as well as chromium, vanadium and iron deposits have provided raw material for the country’s metal industry for a number of years, with significant processing and refining of copper and nickel concentrates occurring at Harjavalta, zinc at Kokkola, chromium at Kemi, and iron at Raahe.

Finland has excellent geological databases, good infrastructure and readily available exploration services.

These factors make operating in Finland attractive and cost effective, with present activity concentrated in gold, platinum group metals, base metals, diamonds and industrial minerals.

Iron Ore Mine Factory Plant in Narvik Norway

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Mining

Since Finland became a member of the EU in 1995, it has enjoyed a constant exploration interest and this increased interest and seen the number of people working within the mining sector steadily expand also.

Between the year 2000 and 2008 there was a near 30 percent increase in the number of people employed directly by mining and quarrying companies, taking the number up to almost 1,400 people. Furthermore, figures taken at the end of 2008 showed that almost 67,000 people were employed with companies involved in the manufacturing of metals, machinery and equipment,

Banlaw As a Global Leader in Fuel Management Solutions, Banlaw, with over 30 years of experience and innovation in the mining industry, employs a unique end-to-end fuel management process called Fuel-Pro3.

With integrated fuel management hardware and software, end-to-end fuel asset management (ensuring safe and secure fuelling), consulting, commissioning and training, along with ongoing service and support, Banlaw Fuel Management Solutions deliver productivity, reconciliation and cost reduction like no other competing solution. Our easy, safe, accurate and innovative products and solutions are now used globally in over 29 countries.

Let the Banlaw team show you how to improve your fuel management processes. Contact us now. salesna@banlaw.com

A coal mine on the side of a mountain, Norway areas that are all very much dependent on the success of Finland’s mining sector.

In the years to come the level of activity within the mining industry across the Scandinavian Peninsula is expected to increase significantly. The continuous demand on the global mineral and metals markets has even led to some analysts to suggest that Sweden alone could triple its mining production by 2025, creating as many as 50,000 new jobs.

Such a scenario would see Swedish iron ore production more than tripling to some 90 million tonnes annually, while volumes for other minerals could conceivably double over the same period of time as continued exploration generates additional deposits. This would create a mining sector capable of generating between three and five percent of GDP growth.

If such events do unfold in not only Sweden but also across its fellow Scandinavian nations, and there is little reason to doubt that they could, then the region stands to play a hugely important role within the mining world for many years to come.

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EVENTS

Where the world’s min pdac 2013 2-5 march 2013 metro toronto convention centre - south building, toronto, canada It has been referred to as the Oscars or the Super Bowl of the mineral exploration and mining and exploration sector—the annual Prospectors & Developers Association of Canada’s (PDAC) Convention, the mineral industry’s most popular networking and educational event.

Now in its 82nd year, the convention attracts investors, analysts, mining executives, geologists, prospectors, and international government delegations from all over the globe.

In 2013, 25 per cent of convention delegates were international—reflecting the evolution of the convention from a national event into an international one.

Outside of Canada, the largest number of attendees in 2013 came from the United

States, Australia, Peru, Mexico and England.

“The PDAC Convention has really hit its stride in terms of its place in the global mineral industry,” says PDAC President Glenn Nolan. “In the early 1990s, the PDAC began to build up an international reputation.

Since then, the PDAC Convention has come to be known as the global networking opportunity for the mineral exploration and development industry.”

The PDAC Convention is actually a convention, trade show and investors exchange in one. It includes a Technical Program, variety of Short Courses and workshops, a Corporate Social Responsibility (CSR) Event Series, an Aboriginal Program, Student Program, along with numerous networking events.

The Technical Program features talks by industry experts that reflect the PDAC’s year-round advocacy work as the leading voice of Canada’s mineral exploration and development sector. The program opens on

“The PDAC Convention has really hit its stride in terms of its place in the global mineral industry” 18 | BE Mining

Special preview

ineral industry meets

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EVENTS SCHEDULE AT A GLANCE friday, February 28 7:00am - 5:30pm Registration 8:00am - 4:00pm Short Course: Exploration geochemistry: Extracting knowledge from data 8:30am - 4:30pm Short Course: Health and safety in mineral exploration 8:30am - 5:00pm Short Course: Exploration in deeply weathered terrains: Basic to advanced concepts and pragmatic techniques (Day 1) 9:00am - 4:30pm Short Course: Understanding and running and effective QA/QC program 9:00am - 5:00pm Short Course: Significant deposits of metals with emphasis on new types and future outlook (Day 1)

saturday, march 1 7:00am - 4:00pm 7th Annual Caracle Cup Hockey Tournament in Support of Mining Matters 7:00am - 5:30pm Registration 8:00am - 4:30pm Short Course: Novel applications of borehole imaging technology: Techniques for acquisition and interpretation 8:00am - 5:00pm Short Course: Primary diamond deposits: Information required to support robust business decisions related to project acquisition and investment 8:00am - 6:00pm SME Bookstore 8:30am - 5:00pm Short Course: Exploration in deeply weathered terrains: Basic to advanced concepts and pragmatic techniques (Day 2) 8:30am - 5:00pm Short Course: Investment fundamentals: Understanding mineral exploration and resource development and the relationship to company stock prices 9:00am - 5:00pm Short Course: Developing a cash flow: Best practices for converting a mineral resource into a mineral reserve (Day 1) 9:00am - 5:00pm Short Course: Significant deposits of metals with emphasis on new types and future outlook (Day 2)

sunday, march 2 7:00am - 5:30pm Registration 8:00am - 6:00pm SME Bookstore 8:30am - 10:00am CSR Event Series: The Beyond Zero Harm Framework

20 | BE Mining

Special preview

8:30am - 5:00pm Short Course: Accessing new data analysis techniques to maximize project value 9:00am - 9:30am PDAC Annual General Meeting (Members only) 9:00am - 12 noon Short Course: Developing a cash flow: Best practices for converting a mineral resource into a mineral reserve (Day 2) 9:00am - 5:00pm Letter Writer Presentations for Investors 9:30am - 12 noon PDAC Board of Directors Meeting 10:00am - 5:00pm Core Shack (Session A) 10:00am - 5:00pm Innovation Forum 10:00am - 5:30pm Trade Show & Investors Exchange 10:30am - 12 noon CSR Event Series: Getting It Right: Community engagement for junior companies 1:00pm - 2:30pm CSR Event Series: Balancing performance in uncertain times: The relationship between capital markets and environmental and social risks 1:00pm - 3:30pm Technical Program: Current developments in financial markets and public disclosure 1:00pm - 3:30pm Technical Program: Maximizing company profits and growth by acquisition 1:00pm - 5:00pm Technical Program: Commodities and market outlook 2:00pm - 6:00pm Presentation Room: Cayman Enterprise City and Walkers Global: Maximizing returns on Canadian outward investment 2:00pm - 6:00pm Presentation Room: State of Alaska: Alaska: North to opportunity!

3:00pm - 4:30pm CSR Event Series: What you need to know and do: Lessons learned from Mesoamerica 3:00pm - 5:00pm Reception Room: Beak Consultants GmbH: Advangeo速 prediction software - Exploration targeting using artificial intelligence and GIS 3:00pm - 6:00pm Presentation Room: Greenland Business Association: Greenland business event 4:30pm - 6:00pm Student Program: Convention Kickstart 5:30pm - 7:00pm Media Reception (By invitation only) 6:00pm - 8:30pm Welcome Reception 6:30pm - 8:30pm Reception Room: Greenland Business Association: Greenland business reception

monday, march 3 7:00am - 5:30pm Registration 8:00am - 6:00pm SME Bookstore 8:30am - 9:15am Opening Ceremonies 8:30am - 8:00pm Reception Room: Nordic Mining Countries: Nordic mining days: Investment opportunities and technology solutions for sustainable mining

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EVENTS SCHEDULE AT A GLANCE 8:30am - 8:30pm Presentation Room: Nordic Mining Countries: Nordic mining days: Investment opportunities and technology solutions for sustainable mining (Day 1) 9:00am - 11:00am Aboriginal Program: Rights, roles and responsibilities: Perspectives on building relationships between companies and Aboriginal/Indigenous communities 9:00am - 11:30am Technical Program: Human resource opportunities and challenges in prospecting and mining 9:00am - 12 noon Presentation Room: Australia Minerals: Australia has the minerals the world needs 9:00am - 12 noon Presentation Room: Chile Trade Commission, ProChile: Chile: Long-term opportunities for sustainable mining 9:00am - 12 noon Presentation Room: Greenland, Bureau of Minerals and Petroleum: Greenland mining projects 9:00am - 12 noon Technical Program: Geometallurgy: The critical link between the deposit and the mill 9:00am - 12 noon Technical Program: Working with BRIC countries: Exploration, operation and investment 9:00am - 5:00pm Core Shack (Session A) 9:00am - 6:00pm Presentation Room: Colombia, Republic of: Colombia mining day 9:20am - 11:30am Technical Program: Keynote Session: Sharing mineral wealth 10:00am - 12 noon Corporate Presentation Forum for Investors: Gold - Americas 1 10:00am - 12 noon Corporate Presentation Forum for Investors: Gold - Africa 10:00am - 12 noon Corporate Presentation Forum for Investors: Gold - Exploration 10:00am - 12 noon Corporate Presentation Forum for Investors: Nickel & PGM 10:00am - 5:30pm Trade Show & Investors Exchange 10:30am - 12 noon CSR Event Series: Local Procurement: Strategies, tools and the benefits for companies and communities 12 noon - 2:00pm Mineral Outlook Luncheon 12 noon - 8:00pm Student Program: PDAC-CMIC-SEG Canada Student Minerals Colloquium 1:30pm - 3:00pm CSR Event Series: Water, mining and stakeholders: Communicating with communities, government and investors 2:00pm - 4:30pm Aboriginal Program: Aboriginal Forum: Building partnerships, sharing success 2:00pm - 4:30pm Technical Program: Diamonds: Where do we go next?

2:00pm - 5:00pm Corporate Presentation Forum for Investors: Gold - Americas 2 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Silver 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Base Metals 1 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Uranium

22 | BE Mining

Special preview

2:00pm - 5:00pm Technical Program: Mineral economics: Approaches to understanding and managing uncertainty and risk 2:00pm - 5:00pm Technical Program: Wealth in weathered rocks 2:00pm - 6:00pm Presentation Room: Brazil, Agency for the Technological Development of the Brazilian Mineral Industry (ADIMB): Brazilian mining day 2:00pm - 6:00pm Presentation Room: McCarthy Tétrault: McCarthy Tétrault presents: Legal challenges facing the mining industry today 2:00pm - 7:00pm Presentation Room: India, Ministry of Mines: India: Opportunities galore for exploration and mining 3:30pm - 5:00pm CSR Event Series: The role of government in company-community relationships: Lessons from Peru 3:30pm - 5:30pm Student-Industry Forum 4:30pm - 5:30pm Aboriginal Program: Networking Reception 6:00pm - 7:00pm Awards Evening Reception 7:00pm - 9:45pm Awards Evening Dinner & Presentations 9:45pm - 11:30pm Awards Evening Coffee & Liqueur Networking Reception 7:00am - 5:30pm Registration 8:00am - 10:00am Reception Room: GE Capital: Effective cost control and growth strategies for mining in the global economy 8:00am - 12 noon Presentation Room: Geotech Ltd.: GEOTECH: Bigger is better - Mapping deeper than ever before 8:00am - 12 noon Presentation Room: Montt Group SpA.: Chilean seminar: Legal due diligence of mining claims in Chile 8:00am - 6:00pm SME Bookstore 8:30am - 10:00am Capital Markets Program: Private equity’s role in the evolving landscape of mineral exploration and development 8:30am - 12 noon Presentation Room: Nordic Mining Countries: Nordic mining days: Investment opportunities and technology solutions for sustainable mining (Day 2) 8:30am - 12 noon Presentation Room: Canadian Northern Economic Development Agency (CanNor): Canada’s North: Resource development opportunities 9:00am - 12 noon Aboriginal Program: Examining Aboriginal issues in the mineral sector: The current landscape in Canada 9:00am - 12 noon Technical Program: Jackpot at 2200 Ma West Africa 9:00am - 12 noon Technical Program: Peruvian porphyry copper belts and deposits 9:00am - 5:00pm Core Shack (Session B)

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EVENTS SCHEDULE AT A GLANCE 9:00am - 6:00pm Presentation Room: Canada-Peru Chamber of Commerce: Peru: A mining country and much more…INVEST NOW! 10:00am - 12 noon Corporate Presentation Forum for Investors: Royalty Companies & Prospect Generation 10:00am - 12 noon Corporate Presentation Forum for Investors: Diamonds 10:00am - 12 noon Corporate Presentation Forum for Investors: Exploration and Development 10:00am - 12 noon Corporate Presentation Forum for Investors: REE & Electric Metals 10:00am - 5:30pm Trade Show & Investors Exchange 10:30am - 12 noon Capital Markets Program: A fine balance: The role of regulators in facilitating capital-raising and protecting the integrity of capital markets 11:00am - 2:00pm Life Member Luncheon (By invitation only) 11:30am - 1:30pm Student-Industry Networking Luncheon 11:30am - 8:30pm Reception Room: Canada-Peru Chamber of Commerce: Peru: Investment Centre

TUESDAY, MARCH 4 12 noon - 2:00pm Panel Luncheon 2:00pm - 3:00pm Capital Markets Program: An exchange with the exchanges: The role of stock exchanges in facilitating capital-raising 2:00pm - 5:00pm Aboriginal Program: Aboriginal participation in the mineral industry: Considerations and complexities 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Gold - Americas 3 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Gold - Eurasia & Australasia 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Ferro Metals & Fertilizers 2:00pm - 5:00pm Corporate Presentation Forum for Investors: Base Metals 2 2:00pm - 5:00pm Open Session: Mineral exploration in Canada: Cold weather, family and a holiday 2:00pm - 5:00pm Technical Program: Abitibi breaks 2:00pm - 5:00pm Technical Program: Geophysics 2:00pm - 5:00pm T echnical Program: Zinc 2:00pm - 6:00pm Presentation Room: Dassault Systèmes GEOVIA Inc.: What mining can learn from technologies proven in other industries by Dassault Systèmes 2:00pm - 6:00pm Presentation Room: FTI Consulting: Mining disputes: Lessons and best practices 2:00pm - 6:00pm Presentation Room: Kazakhstan, Kyrgyzstan and Tajikistan Mineral Resources: Mining in central Asia

24 | BE Mining

Special preview

2:00pm - 9:00pm Presentation Room: German Mineral Resources Agency, Deutsche Rohstoffagentur (DERA): The mineral resources value-added chain: More efficiency with German technology 3:00pm - 5:00pm Women in Mining International Networking Reception 3:30pm - 5:00pm Capital Markets Program: Indigenous/Aboriginal equity participation in mineral exploration 4:00pm - 5:30pm CSR Event Series: Resource Nationalism: Moving beyond a narrative of threat 5:00pm - 7:00pm S-IMEW Alumni Reception (By invitation only) 5:30pm - 6:30pm CSR Event Series: Closing Reception 7:00pm - 9:00pm President’s Reception (By invitation only) 9:00pm - 12:30am Mining Night

WEDNESDAY, MARCH 5 7:00am - 12 noon Registration 8:00am - 10:00am Reception Room: Whittle Consulting Pty Ltd.: Money mining 8:00am - 11:30am Short Course: Mineral disclosure standards under NI 43-101 8:00am - 12 noon Presentation Room: The World Bank, SEGOM Unit: Recent developments in mining and sustainable development in Latinamerica 8:00am - 12 noon SME Bookstore 9:00am - 12 noon Core Shack (Session B) 9:00am - 12 noon Presentation Room: Mauritania, Ministry of Petroleum, Energy and Mines: Mauritania 2014 9:00am - 12 noon Technical Program: Alternative financing sources for junior resource companies 9:00am - 12 noon Technical Program: New discoveries and developments 9:00am - 12 noon Technical Program: South Africa: An anniversary, new challenges and opportunities 9:00am - 12 noon Technical Program: Specialty metals and industrial minerals 9:00am - 12 noon Trade Show & Investors Exchange 9:00am - 5:00pm Presentation Room: Canada Eurasia Russia Business Association (CERBA): CERBA Russia and Eurasia Mining Conference 2:00pm - 5:00pm Short Course: Alternative financing strategies for challenging times 2:00pm - 6:00pm Short Course: DMEC workshop series: Risk in exploration, measuring it and how to avoid ruin 6:00pm - 7:00pm Gala Party Reception & Silent Auction 7:00pm - 12:30am Gala Party Dinner & Entertainment

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EVENTS

“The Trade Show features over 400 companies, organizations and governments promoting technology, products, services, and mining jurisdictions worldwide” Sunday, March 2, with the “Commodities and Market Outlook” session, and includes other sessions such as “Maximizing Company Profits and Growth by Acquisition,” the keynote session on “Sharing Mineral Wealth,” “Geometallurgy,” “Working with BRIC Countries,” “Geophysics,” and “Alternative Financing Sources for Junior Resource Companies.”

26 | BE Mining

The CSR Event Series, which is open to the public and free to attend, provides a forum for learning and discussion and covers a range of issues related to corporate social responsibility in the mineral exploration and mining industry.

The Aboriginal Program offers a one-of-akind opportunity for Aboriginal communities and companies, as well as representatives

Special preview

from the mineral industry, to come together and network, foster relationships and share knowledge. It enhances industry awareness of Aboriginal affairs, and showcases success stories of partnerships and economic development. The steady increase in the direct involvement of Aboriginal communities in the mineral exploration and development industry in Canada means the program will continue to gain importance.

As part of the PDAC’s work to address the mining industry’s looming human resources crunch, the PDAC has developed a comprehensive Student Program at the convention. The program offers students a unique opportunity to network with industry professionals from all over the world. In 2013, the convention attracted over 1,600 students from across Canada, the U.S. and internationally.

The Trade Show features over 400 companies, organizations and governments promoting technology, products, services, and mining jurisdictions worldwide. The opportunity for convention attendees to learn about the global mineral sector while walking the aisles of the Trade Show floor is a phenomenal chance to learn about the technologies and trends that are shaping the industry.

The Investors Exchange, which is open to the public and is free to attend, is the leading investment show dedicated solely to the mineral industry. The Investors Exchange gives an insider’s look at opportunities

for business development, joint ventures, property acquisitions and financing within the mineral sector, and attracts banking executives, brokers and analysts, fund managers, government representatives, retail and institutional investors, senior mining executives, and students. It includes over 530 exhibitors, the Prospectors Tent, samples and claim results of independent prospectors, and the Core Shack featuring the latest mineral discoveries from around the world.

For more information about PDAC 2014 visit: www.pdac.ca

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canada spotlight:

and mo

You don’t go into mining if life but effective risk identi are essential to survival. service offers a way to turn

written by: Jo research by:

28 | BE Mining

BFL CANADA

ore ore

you want to live a risk free ification and management BFL CANADA’s new ORE n uncertainty into an asset

ohn O’Hanlon James Boyle

BE Mining | 29

Red Chris mine construction site. Photo provided by Imperial Metals Corporation

BFL CANADA

B

FL CANADA is a no-nonsense insurance brokerage and risk management firm, founded by Barry F Lorenzetti in 1987 and now the largest employee-owned and operated commercial insurance broker and consulting services firm in the country, with offices in nine major cities from Vancouver in the west to Halifax in the east. Though BFL is active in upward of 20 vertical business sectors, one of the most important of these is mining, mineral processing and exploration.

BFL has always provided its mining industry clients with an outsourced risk management service covering every aspect of operations from initial exploration through construction and operation of a mining facility. Its core business, after all, lies in the insurance field, but this is a company that likes to add value.

When we covered the company’s activities a year ago we saw the strong growth of the company under its leadership team including Vice President and National Practice Leader – Mining for BFL CANADA’s operations Janet McLean. Today we want to look at how Janet, a specialist in risk transfer – the insurance side of the business and alternative risk financing – has been joined by Michael Yip to develop an enhanced service that they describe as representing something of a paradigm shift for the company and its client base.

Michael Yip joined BFL in 2012 as National Practice Leader – Enterprise Risk Management (ERM), BFL’s strategic consulting arm. His area of expertise is enterprise risk management and strategy advice. With 20 years of consulting experience in strategy, integration of strategy and risk management for Fortune

BE Mining | 31

500 companies, including major projects for mining clients. He takes the strategic view, from operational risk management at the mine site level up to how that contributes and helps drive profitability and success for the corporation as a whole. “My focus is working with colleagues like Janet McLean, who represents the risk transfer side of the equation. We complement each other because I have the strategic perspective of the industry, seeing market trends in terms of business drivers. Janet brings a very tactical approach to addressing those risk management factors in the mining industry.”

So they make a great team! And that team has been very busy over the last 18 months or so. Let’s look at the problem, he suggests.

“Insurance is a necessity – you clearly need to insure for the many hazards facing any mine operation. That is a significant expense for most mining companies. But the business implications of these and more intangible risks are ignored by many professional service advisers. We can insure 20 percent of our risks but the question I ask is how can we address the other 80 percent?”

That is the role of enterprise risk management (ERM), he asserts. Traditionally insurance is seen as a necessary evil, in case disaster strikes. Seen as an integral part of the

ERM process it undergoes a transformation.

“I am working with clients to not view risk as inevitably associated with loss,” emphasises Yip. “Risk involves uncertainty, sure enough, but let’s lose the preconception that it has to threaten profitability: see it as an opportunity to capitalise on an event!”

Over the last six months Janet McLean and he have been busy developing a new service that reflects this thinking. ORE (Optimizing Risk Excellence) can be applied in any

“We can insure 20 percent of our risks but the question I ask is how can we address the other 80 percent?”

32 | BE Mining

BFL CANADA

Wolverine mine site. Photo courtesy of Yukon Government

business vertical, but it’s not this is very important as part just the acronym that makes of our service communications it particularly applicable to with our clients. Commodity price graphs are a big deal. mining and minerals. After a year getting to understand But setting up hedging The year BFL was BFL’s capacity in different programs or alternative founded verticals, Michael Yip adapted financing arrangements and a platform he had spent years working with lenders to be developing to BFL’s unique more creative with respect to business ethos and made it mining-specific. your risk profiles will assure the investment Six months later it is available to clients, and community and lenders that you are ahead of it has already started to benefit the companies that risk and are addressing it.” Retrenchment in Canada that he and McLean work with. is not the only game in town – demonstrating So how can risk be seen as opportunity? a proactive management style gains any How can elements that are uncontrollable, company credit in difficult times – after all immitigable even – commodity pricing for investors are used to taking the long view. example – be turned to advantage? “It may His experience in multitudes of industry seem an esoteric concept to take a positive verticals, large small, national, multinational, view of fluctuations in world gold prices, but Yip brings valuable best practice experience

1987

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BFL case study It’s hard to find a manufacturer that has not gone through a lean process these days, and many have gone the whole nine yards with Six Sigma and TQM thinking. Mining operations could stand to benefit from this too, he believes. “I was engaged to conduct an operational risk assessment for a Middle East mining operation with three or four mine sites. We had our engineers go in and do all the practical reviews, but the board of the corporation was concerned that they did not have a handle on the bigger picture.

Were they efficient? Were they maximising economies of scale that could directly impact their bottom line – revenue as well as profitability? So we recommended that we step back and take a more strategic assessment of the organisation, and look at other industries facing a similar risk profile.

As well as Lean Six Sigma, which they were already considering, we encouraged them to look at supply chain issues. For example, where is the product going – do you have that addressed? Do you have the Michael Yip, National Practice Leader – Enterprise Risk Management (ERM)

34 | BE Mining

Janet McLean, Vice President and National Practice Leader – Mining

contractual risk issues under control – in other words are you looking at who you are doing business with?” McLean comments “Mining operations like most industries today, operate 24/7 with little time to send contracts through for input from the CFO or risk manager, as a result many opportunities to mitigate or transfer risk are missed by not amending contract language before it is signed. ORE addresses this and many more issues that our clients value.”

Taking a broad, business-centric assessment to this organisation resulted in a much heightened view of its risk profile, he says.

“What started out as a very granular, day to day, specific type of risk assessment turned into a much more strategic view of the operations, which led to significant branding efforts, greater competitive market penetration and in the end positioned them to be a much stronger player.” This company set out on an M&A trajectory, buying up smaller mines in the area: the process positioned it for a much stronger operational and strategic base.

BFL CANADA

Wolverine mine site. Photo provided by Yukon Zinc Corporation

to the industry. “Mining operations indeed meld together. That is essentially at the are somewhat unique but at the end of the core of one of the main services Janet and day they face fundamental business risks, I are building within BFL. It works with the similar risks to a manufacturing operation, mining organisations at the management and as an example. I encourage clients to take strategy level and at the operations level and a much more grounded perspective of risk it works to create a very tailored risk profile management, having experienced quite a lot depending on the need of the audience.”

This service works with mining operations of success in the past.” Mining companies are always interested to learn how their ‘peers’ to create a risk profile that is marketable. deal with prevalent risk issues Underwriters, accountants, – and where appropriate, banks, potential lenders benchmark those practices. and investors whether This type of strategic institutional or private all thinking underpins BFL’s ORE need to understand the service. “Being an ex-banker strength of a company’s myself and coming from the operational best practices.

Industry verticals consulting side I understand So it works at both ends, served by BFL how the two worlds can the tactical side focused on

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“Risk involves uncertainty, but let’s lose the preconception that it has to threaten profitability: see it as an opportunity to capitalise on an event!” operations and risk transfer, and the strategic side which takes into consideration the investment community, lenders and potential joint venture partners or M&A targets.

Mining operations can be rather inwardlooking, Michael Yip thinks, often failing to consider how the financial markets view them.

McLean comments, “The recent commodity pricing rally still has a long way to go to reach ideal levels, affecting stock prices, creating

36 | BE Mining

a very attractive M&A environment among mining and exploration companies. ORE is an excellent and affordably appropriate tool that, among other things, assists in both the evaluation of a targeted company for capital market’s assessments and the insurance market’s underwriting process post-merger that works to position the risk and its management in the best possible light.”

A panoramic risk profile is very desirable

BFL CANADA

Red Chris mine construction site. Photo provided by Imperial Metals Corporation

to outside providers like bankers and the financial and insurance markets. The majors tend to grasp this fact more readily than the juniors and to engage with BFL’s offering, so McLean and Yip are tailoring ORE to them.

“The positive aspect of having this type of assessment at the front end is that investors and bankers see it this way. You may have a great resource, your core samples may be fantastic, but if it is going to cost you a billion dollars to build an operating mine to access it, is it really worth developing? The younger juniors don’t necessarily have the head office depth to do all these analytics.”

The team is currently providing a scaled and modified version of the ORE service to a mining operation in northern Canada, as part of the commercial insurance services

that BFL offers. On top of that package the client benefits from Michael Yip’s engagement to explore how they can better position themselves to the capital markets and make introductions to lenders. “That is just an example of the expanded collaboration that Janet and I have,” he says. “Through the introduction of my services ORE is trying to capitalise on relationships that are still highly operational and tactical, but we are now able to provide a more strategic element as we work with clients right through their mine development life cycle.”

For more information about BFL CANADA visit: www.bflcanada.ca

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canada spotlight:

38 | BE Mining

DNI Metals

Operating in a Polymetallic Paradise DNI Metals’ Preliminary Economic Assessment of its Buckton Zone Property has confirmed a number of the company’s predictions, the main one being that the Buckton polymetallic black shale deposit represents an incredible untapped mining resource

written by: Will Daynes research by: Peter Rowlston

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Typical ridgeline outcrop of the black shale

DNI Metals

W

hen we last spoke to President and CEO of DNI Metals Shahe Sabag towards the end of 2011 his company had just achieved a significant milestone in its history, identifying the first mineral resource from one of its six mineral systems located within the 2,720 square kilometre property the company holds in the Birch Mountains, north of Fort McMurray adjacent to the oilsands deposits of northern Alberta, Canada.

“In the months and years following the discovery of the Buckton Zone, we set out to expand the mineral resource several times over with the intention of building enough critical mass to carry out a Preliminary Economic Assessment (PEA),” Sabag explains.

“The result of these activities is that the Buckton resource has grown to around a five billion tonne critical mass, with part of it upgraded from the Inferred to the Indicted resource category.”

It was during these expansion activities that the company went on to discover and carve out a second mineral resource, Buckton South, a zone located seven kilometres south of Buckton. DNI expects one day to link up the two zones. The Buckton South ‘maiden’ resource is a half-a-billion tonne starter and the perfect example to industry watchers that there are other zones on the property that can be successfully drilled and measured to carve out additional mineral resources.

The PEA study for the Buckton Deposit was launched in mid-2013, the results of which were released in December, with the technical report following on 17 January, 2014. The PEA

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$1.6 Billion Estimated pre-tax value of the Buckton operation

Geo mapping sampling another vertical cliff face outcrop of the black shale

42 | BE Mining

itself demonstrates that the Buckton Deposit has the potential to be a significant long term supplier of uranium and rare earth elements, in addition to nickel, cobalt, copper and zinc.

It also indicates that the envisioned Buckton operation possesses a net present pre-tax value of $1.6 billion at a six percent discount rate, with an 8.7 percent internal rate of return. The mining operation has the ability to generate an average of $349 million in pretax net cash flow annually over its 64 year mine life, representing aggregate life of mine revenues of $75 billion. The PEA identified several key opportunities to significantly enhance economics and DNI is confident that several can be implemented with minimal additional work or expenditures.

“With completion of the Buckton Deposit PEA we have concluded what we set out to achieve in 2008, and that was to take at least one of the six zones we hold and demonstrate that it does contain a mineable mineral resource,” Sabag continues. “This places us at a crossroad as it were, at which we must now decide in what direction we move forward from here.”

Situated within an active mining area, where other players are mining oilsands as opposed to metals, and with access to considerable existing infrastructure, the

DNI Metals

2012 summer drilling program

location of the Buckton Deposit could hardly be more ideal. Whereas from a logistical, technical and scientific point of view the Buckton project has been relatively smooth sailing, the principle challenge that DNI Metals has found itself facing involves bridging the knowledge gap regarding just what type of mineral deposit it has on its hands.

“The first challenge we faced is that what we have here is a metals property in Alberta, a part of the world known for oil and gas.

That means that the first hurdle to clear involves informing people that yes there are indeed metals present in Alberta,” Sabag says.

“The next hurdle revolves around introducing people to the novel leaching techniques that we are using; things like bio-leaching and bio-heap leaching. Once that is cleared, it is then a case of explaining the unique qualities possessed by polymetallic deposits, and the fact that there have been countless example over the last 200 years of mining history in North America of deposits delivering multiple metals whose value is locked up in the aggregate value of the multiple metals contained. So, bridging the knowledge gap through constant communication has certainly been our biggest challenge to date.”

“The PEA demonstrates that the Buckton Deposit has the potential to be a significant long term supplier of uranium and rare earth elements” BE Mining | 43

“Our strategy from day one has been to develop one of our six zones to the PEA study stage before ultimately either vending it out or advancing it further in collaboration with a third party�

Shahe Sabag inspecting shale

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DNI Metals The 2,720 square kilometres of area held by DNI not only contains the aforementioned Buckton and Buckton South zones, but also four other assets dubbed Asphalt, McIvor West, North Lily and Eaglenest. Each of these contains a zone with the potential to deliver the kind of black shale polymetallic deposit found at Buckton if explored and developed accordingly.

“Buckton and South Buckton are undoubtedly our highest priority assets at present, as can be seen in the way we have taken the former and moved it ahead as fast as possible toward a PEA,” Sabag states. “While it is fair to say that with similar levels of attention the other properties have the potential to become Buckton sized assets in their own right, we have no immediate intentions to rush into development of these, rather our approach right now is for the Buckton Deposit to be a template for what can be achieved elsewhere on the property.”

Since the PEA study of Buckton was released in December, DNI Metals has received considerable positive feedback from both its shareholders and from various financial analysts. Now, with another milestone achieved, thoughts turn to the short and long terms futures of the company and its assets.

“DNI Metals is an exploration and development company, not a mining

Aerial view of ridgline shale outcrop

company,” Sabag highlights. “As such we have no aspirations to becoming a producer, and our strategy from day one has been to develop one of our six zones to the PEA study stage before ultimately either vending it out or advancing it further in collaboration with a third party. So our immediate game plan involves following up on various discussions we have had in the past with potential interested third parties with the aim of enlisting their collaboration. Once this is in motion we can turn our attentions toward what we hope will be the next successful project at the property.”

For more information about DNI Metals visit: www.dnimetals.com

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canada spotlight:

Alpha Minerals

Achieving high grades Alpha Minerals’ strategically selected uranium and gold properties are producing the results required to take this junior exploration company to the next level

written by: Will Daynes research by: Peter Rowlston

BE Mining | 47

L

ocated in the Canadian Shield of northern Saskatchewan and Alberta, Canada, the Athabasca Basin is the world’s leading source of high grade uranium and currently supplies approximately 20 percent of all that used across the planet. Covering some 100,000 square kilometres of Saskatchewan, and a small portion of Alberta, the surface of the basin consists of sandstone sediment varying from 100 to 1,000 metres in depth. It is at the base of this sandstone that uranium ore has been mostly found since it was first discovered in the region in the 1940s.

Today a number of high-grade uranium mines are scattered across the basin. One company whose own activities are primarily focused on the discovery and delineation of deposits in the region is Alpha Minerals. A junior mineral exploration company with strategically selected uranium and gold properties in North America, it has a proven record for making high-grade discoveries, including the recent near-surface discovery at Patterson Lake South.

The Patterson Lake South (PLS) property is the most advanced of Alpha Minerals’ projects in the Athabasca Basin, which collectively cover an area of over 170,000 acres. The project, which includes 17 claims that straddle the south-western margin of the basin, is a 50/50 joint venture between Alpha Minerals and Fisson Uranium Corporation.

To date, a total of 156 boulders and 32 soil samples from the property have been submitted for assay. Of the 188 geochem samples, 33.5 percent were found to contain less than one percent of triuranium octoxide

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Alpha Minerals

Geovector Management GeoVector Management Inc. provides mineral exploration consulting and project management services worldwide.

We provide comprehensive project evaluations that integrate the practical application of resource and reserve estimations with economic analyses, incorporating all disciplines, including environmental, community and aboriginal impacts.

We manage all aspects of programs in all phases of the mineral exploration cycle, for a wide variety of deposit types.

We manage multidisciplinary studies from metallurgy to environmental issues first hand. GeoVector implements

quality control programs to ensure your data is accurate and verifiable.

We carry out work under the most stringent environmental, health and safety guidelines and within budget constraints. Work sites managed by GeoVector are safe, clean and cost efficient. www.geovector.ca

G E OV E C TOR M A NAG E M E N T I NC . P ROV I DE S M I N E R A L E X P L OR AT ION C ON SU LT I NG A N D P ROJ E C T M A NAG E M E N T SE RV IC E S WOR L DW I DE .

With over 115 years of cumulative industry experience ranging from grass-roots exploration to advanced pre-development programs, we seamlessly integrate geological, geophysical and geochemical project databases for a complete multidisciplinary approach in the search for economic ore deposits. www.geovector.ca

Alpha Minerals

“The Patterson Lake South (PLS) property is the most advanced of Alpha Minerals’ projects” (U3O8), 26.6 percent contained between one and ten percent and 39.9 percent had over ten percent. The highest grade assayed at 40 percent U3O8. Since the autumn of 2012, the company has carried out regular drill assays, the latest of which were released in August 2013. This event involved the drilling of an additional five holes on the Properties R39OE zone, which returned 54 metres of 9.08 percent U3O8, which included 21.5 metres of 21.76 percent U3O8 and assays of up to 52.2 percent.

In addition to the PLS property, Alpha Minerals can also lay claim to both the Cluff Lake and Hook Lake assets within the Athabasca Basin. The former covers a collective area of 41,380 acres, within which the company operates under a joint venture with Rio Tinto.

The project itself adjoins the former Cluff Lake open pit mine, which was responsible for producing 63 million pounds of U3O8 at a grade of 0.93 percent during its lifetime.

Meanwhile, located northeast of the company’s PLS discoveries, Hook Lake

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covers some 32,000 acres of land within the basin. The area, known to be prospective for unconformity hosted uranium deposits, has been subject to comprehensive exploration in the past by the likes of UEM Inc., Cameco Corporation and Imperial Oil Limited. This has seen it subjected to airborne ground geophysical surveying, geochemical sampling and diamond drilling totalling over 2,400 metres. These tests have helped identify 17 electromagnetic conductors with a total strike length of 80 kilometres. Three of these conductors have been drill tested, with one intersecting 0.24 percent U3O8 over 2.5 metres.

In addition to its uranium activities, the company holds two gold assets, the Donna Gold Property in British Columbia and the Mikwam Gold Property in Ontario. The former lies within one of the largest clusters of anomalous values in stream sediments for gold and its typical pathfinders found anywhere else.

Alpha Minerals obtained and reviewed various reports concerning past exploration work conducted on the Donna property.

These indicated a strong linear zone of gold values intersected by four trenches over a distance of 250 metres and open on both ends, to the North West and South East.

Corresponding soil samples ranging from trace to 4,200 parts per billion of gold were found covering and surrounding this area.

Initial drilling of targets related to the known gold zones was completed by the company in 2010. The results indicate a strongly anomalous zone that extends west from the trenching and is as yet undrilled further to the west along the soils anomaly.

“There is much for Alpha Minerals to be positive about as we approach the New Year�

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Alpha Minerals

Understandably the company was and is very encouraged by this initial drill programme as it further identified the targets on the western side of earlier trenching and a gold anomaly in soils that extends more than 1,600 metres along the height of land between the Kettle River and Yeoward Creek, which are both historical gold placer producers.

The Mikwam Gold property on the other hand lays North East of Timmins, on the Casa Berardi Deformation Zone. An area of historical gold and other precious metals mineralization, the zone has in the past played host to exploration work costing in excess of $12 million, carried out by companies such as Newmont. The property remains on trend with the nearby Casa Berardi gold mine,

operated by Hecla Mining, while recent drill programme highlights include identifying 4.10 g/t gold over 19.0 metres, 4.99 g/t gold over 13.0 metres and 6.32 g/t gold over 5.6 metres.

With both its uranium and gold assets now producing sustained results, an event that at one point this year saw its shares hit a peak of $5 dollars per share, having previously been at a low of $0.20, there is much for Alpha Minerals to be positive about as we approach the New Year.

For more information about Alpha Minerals visit: www.alphaminerals.ca

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mine of the month:

barrick gold: pueblo viejo

Revitalising a region The Barrick Pueblo Viejo gold mining complex remains the biggest single investment in the history of the Dominican Republic and continues to break new ground as it begins to realise its potential

written by: Will Daynes research by: Vince Kielty

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barrick gold: pueblo viejo

F

or many years tourism and agriculture have been the traditional drivers of economic growth for the Dominican Republic. However in more recent times a third pillar has been slowly emerging and developing and that is mining. Today the sector is a cornerstone of the country’s economic prosperity, with the mining industry’s contribution to its GDP rising by as much as 74 percent in 2011 alone.

Located approximately 100 kilometres northwest of the capital city of Santo Domingo, the Pueblo Viejo mine represents one of its most significant investments to date and the largest foreign investment in Dominican Republic history, with mine construction capital of approximately $3.8 billion. With declared reserves of 23.7 million ounces of gold, Pueblo Viejo holds by far the richest deposits of gold ever identified in the country. The site, which is a sulphidic refractory gold deposit, is currently being developed to a 24,000 tonne-per-day design capacity.

The mine comprises two major oxide deposits known as Monte Negro and Moore, and three other small deposits. Moore is the largest deposit and is separated from Monte Negro by 500 metres of barren mud-stones.

The mine had been in production since 1975. It was operated by the state-owned mining company Rosario Dominicana. The mine had produced more than five million ounces (moz) of gold and 22moz of silver in its operational life. The mining operations had to be halted, however, in 1991 due to low gold and silver prices and a lack of

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We are a company dedicated to the Engineering procurement and construction of projects, with a wide expertise that covers the most important sectors of the construction industries, such as Mining, Energy and Infrastructures.

SERVINCA was founded on December 29th, 1979, at its headquarters located at Santo Domingo; Dominican Republic.

During 33 years of experience our professionals have specialized in developing projects covering a wide range of disciplines,, such as Electrical Power generation, transmission and distribution networks, Steel Infrastructures, Mechanical & Industrial Installation. Piping and Civil works, including Engineering, Management, Procurement and Construction.

K136 Project, PVDC Pueblo Viejo, Dom. Rep.

“SERVINCA have reached a total of 1,200,000 man hours without lost time incident PVDC BARRICK”

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DOMINICAN REPUBLIC PVDC GOLD MINE Cotuí Santo Domingo SERVINCA OFFICE

Award nomination for energy industry CADOCON, PVDC BARRICK, Dominican Republic

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

Engineering & Construction Services Our vast experience has become to be the best solution for the development of sustainable projects, with a large availability of professionals in all applicable Engineering areas, such as Civil, Electrical, Hydraulics and Mechanical, assuring full compliance to our customer by delivering quality and costs efficient products.

SERVINCA was selected as the best company of the year in row energy industry for three consecutive terms (2002-2012) by the Dominican Chamber of Construction (CADOCON), catapulting Servinca well as the leader in energy and other areas of engineering in the Dominican Republic.

Business Philosophy Our major commitment is to comply with the highest quality standards, ensuring the safety of our workers and the environment with a strict scheduling plan for the on time delivery of our projects.

The good results obtained in the Engineering, Procurement, Management and Construction of large projects are resultant products of our own integrated management system, implemented by a specialized organization structure oriented to results that fulfills and supersede the client´s expectations.

“Our quality System is implemented and adjusted to each project to meet the best Engineering practices, followed by a strict Occupational safety and environmental plans carried by our Professional staff, whose experience and integrity are the main elements that has contributed to the success of SERVINCA, positioning our company as leader in the construction industry”.

CADOCON 2013 Company of the Year Awards in the Energy Sector SERVINCA S.A.

METRO SANTO DOMINGO line I y II, Emergency Power Generation plant, 40MVA and Substation 138KV/40MW.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Services we offer

ELECTRICAL AREA

SERVINCA, with over 33 years experience in the engineering and construction sector, has the ability to provide a high quality service in multidisciplinary projects complying with top standards for quality, health and occupational safety and environmental protection, while maintaining a key position in the construction industry current market. The main key activities covered by our business experience are:

• Erection and EPC Power transmission lines in high, medium and low voltage.

• Erection and EPC in Energy generation and distribution: Diesel, Gas, combined cycle power plants , Hydroelectric, and renovables projects.

• Erection and EPC Electrical Substations.

• Electrical equipment installations.

• Fiber optic communication networks.

EGE HAINA 40 MW COAL POWER PLANT Installation of new precipitators, Barahona, Dominican Republic.

BARRICK PVDC GOLD MINE F336 Underground piping, 25 Kms of pipelines installed.

MECHANICAL AREA • Industrial Mechanical installation and Fabrication.

• Hydro mechanical projects.

• Potable water, sewer systems, fire protection and freshwater pipeline systems.

• Fabrication, supply and installation of steel structures, fittings, supports, etc.

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• Thermal insulation of piping and Industrial Painting.

• Pump stations.

• Water treatment plants.

• Sheet pilling.

• Drilling and construction of water wells.

• Fire Alarm and Protection Systems.

• Installation and maintenance of HVAC systems.

METRO SANTO DOMINGO Power Generation plant, 40 MVA.

METRO SANTO DOMINGO - Construction of tunnel and electrical installations for Metro Substations – 350 Lineal meters.

PINALITO HYDROELECTRIC DAM 69KV Transmission lines and 50 MVA Substation, Dominican Republic.

CIVIL AREA

ELECTRICAL AREA

• Excavation.

• Earthworks • Filling and compaction.

• Sandblasting.

• Encofrados.

• Piles.

• Shotcrete.

• Industrial electrical installations in general: Beer plants, airports, water treatment plants, cement plants, gold mine process plant, metro stations and others.

• Instrumentation, panels, installation devices, control and instrumentation cable, panels, installation devices, control cable pulling, testing and inspection.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

MANUFACTURING SERVICE

Our fabrication Workshop, located in Santo Domingo, Hato Nuevo, is specialized in the Design, Manufacture, Repairing and Technical Assistance for metal mechanical projects, covering a wide rage that includes: Hydro mechanical Elements for Dams such as Gates Takes, Radial Gates, Grills, Overhead Cranes, Shields, Cofferdams, Penstocks, Suction tubes, Speed Reducers and Power Transmission mechanical equipment.

FABRICATION WORKSHOP Capacity of over 2000 Tons / months, Hato Nuevo, Santo Domingo.

MONCION HIDROELECTRIC DAM 50 MVA, Dominican Republic.

PELIGREE HYDROELECTRIC DAM Haiti, ALSTOM, 3 x18 MVA.

Our fabrication capacity is also oriented to Manufacture Mechanical parts, Design and Manufacture of Metal structures. Pipes, Dismantling Joints, Expansion Joints, Bifurcations, metal Coatings and accessories.

JIGUEY – AGUACATE HYDROELECTRIC DAM 50 MVA, Dominican Republic.

LAS BARIAS HYDROELECTRIC DAM 2.5 MVA, Santo Domingo.

MONTE GRANDE AND SABANA YEGUA - Hydroelectric and irrigation Dams, 8 MVA and 15 MVA, Dominican Republic.

VALDESIA HYDROELECTRIC DAM 15 MVA, Santo Domingo.

ENGINEERING DESIGN SERVICES:

INDRHI AND INTERNATIONAL WORLD BANK IRRIGATION PROJECTS Lote 10, Jima Camu siphon and irrigation pumping system, La Vega, Dominican Republic.

• Design of mechanical installations.

• Distribution System Design and delivery of water, wastewater and storm drainage.

• Design of steel structures, doors, fittings, supports, etc..

• Engineering and construction of concrete piles, drilling wells, infiltration wells, etc..

• Electrical systems in general.

• Supply and transportation of local and imported • Materials related to electromechanical installations.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Profile

SERVICIOS DE INGENIERIA, SERVINCA, was contracted by BARRICK Pueblo Viejo Dominicana Corporation for the construction of 30 Kms – 4¨ to 36¨ HDPE and carbon steel underground piping utilities for the potable, freshwater, firewater and storm sewer systems of the Gold mine Process plant site. =SERVINCA is proud to be part of the construction of the 34.5kv Overhead Transmission Lines for BARRICK PVDC process plant site and surrounding areas, with the responsibility of the Engineering, Procurement, Management and Construction of over 35 Kms - 34.5KV and 4.16KV Over Head line systems.

HDPE Termofusion Work – F336 Project , PVDC

SERVINCA received in the month of October 2013 the award for best company of the year three times in a row in the Energy Sector awarded by the Dominican Construction Chamber (CADOCON).

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As a general contractor specialized in the Engineering, Procurement, Management and Construction of Electrical, Civil and Mechanical Works, SERVINCA executed several projects at PVDC in the disciplines of Piping, Metal-Mechanical, Steel Structure Fields and others such as Sheet Piling, Geomembrane, Geotextile, Gabions and Concrete Structures.

K136 ProjectBARRICK PVDC

F336 ProjectBARRICK PVDC

We have successfully executed Electrical, Instrumentation, Fiber Optic Networks, Substations, Pole mounted Transformers, Civil Works, medium and low voltage installations along the process plant site.

BARRICK PVDC electrical systems are built with the highest quality standards, providing an efficient service that meets the top international mining levels.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

With over three years working in the construction of one of the most important projects in the Dominican Republic, BARRICK Pueblo Viejo Dominicana Corporation Gold Mine, SERVINCA have consolidated the position as a leader company in the Industrial-Mining market, providing cost efficient EPC solutions adhered to the highest quality and safety standards of the mining industry.

SERVINCA have achieved a total of 1,200,000 Manhours milestone achievement without lost time incidents for all projects executed at BARRICK Pueblo Viejo Dominicana Corporation by December 2012, result obtained by the proper risk evaluation and implementation of our own Health, Safety and Environmental plans.

Lifting Pole Maneuver - 34.5KV and 4.16KV OH Line Systems K136 Project, PVDC

“Our extensive experience is supported

by a group of highly qualified professionals, with the use of specialized certified tools and plants, that ensures the constant improvement of our company vision and provides cost efficient Engineering solutions to our clients in the Construction Industry�

The construction process of BARRICK PVDC process plant site is completed and commissioned, starting full production process since 2012. SERVINCA is pleased to be selected by BARRICK as one of the main general contractors to support the operation process by providing Engineering, Procurement, Construction and Maintenance services for the operation and extension of the process plant site facilities.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Your Partner for Power With over 50 years of experience and operating from over 190 locations around the world, Aggreko is the world leader in providing interim power plants.

No matter what industry you work in, we offer complete turn-key project management including equipment, installation, maintenance and operation by highly experienced engineers to ensure reliable and flexible power.

Whether you need a few megawatts of power for a remote site or a few hundred megawatts of base load power to support the national grid, Aggreko delivers a power solution that is tailored to your needs, wherever and whenever you need it.

Aggreko, Power Specialists in the Utilities, Mining and Oil & Gas Industries Head Offices Americas (USA) T: +1 281 985 8200

Europe, Middle East & Africa (UK) T: +44 1543 476100

Aggreko operates from over 190 locations throughout the world.

For the location nearest you, please go to: www.aggreko.com/contact

Asia Pacific (Singapore) T: +65 6862 1501

barrick gold: pueblo viejo appropriate technology to Aggreko process the ore.

Aggreko, the world leader in the provision of temporary The Dominican power and temperature control solutions, provided a Government first invited reliable source of commissioning, construction and backup tenders for the project in power from 2011 to 2012 for a period of 18 months to the 2001. One key aspect of the Pueblo Viejo Gold Mine in the Dominican Republic. work required remediation Aggreko supplied a Full Turnkey 30MW Power Plant at the mine in Cotui, Sanchez Ramirez province, which was used of the site which had as a source of electricity for the commissioning of facilities been badly damaged by and large- horsepower motors and to provide critical earlier abandoned mining backup power for construction. operations. The other centred “Aggreko was selected because of their technical expertise on the development of new and global experience. Our goal was uninterrupted / operations to extract and guaranteed power and Aggreko delivered that in a safe, process the gold containing reliable and professional manner,” said Richard Williams, Senior Project Director at Barrick. sulphurs of the mine. www.aggreko.com The tender was initially won by Placer Dome Inc., which was subsequently acquired by Barrick. By 2009 the complex negotiations to develop Pueblo Viejo were complete and a 60/40 consortium with Goldcorp – the Pueblo Viejo Dominicana Corporation (PVDC) – in which Barrick holds the controlling interest, was busy constructing this multi-billion dollar facility.

Barrick Gold carried out the feasibility study and appointed Ruscan Environmental Sciences of Canada to perform the environmental and social impact

23.7 million Declared reserves (in ounces) of gold at Pueblo Viejo

Construction in progress on the primary ore crusher, ore stacker foundation, and ore reclaim feeder chamber

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GyM develops and among others. In 2 companies like: Ba Joint Associations o Our core values Co

Av. Paseo de la Rep

d executes a broad range of Projects in Latin America in various contractual forms: turnkey, BOOT, BOO, EPC, 2012, we have executed over 65 million man hours. Since 2005 we have built concentrators for the largest mining arrick Gold, BHP, Freeport McMoran, Goldfields, Teck, Xstrata Copper, Newmont, etc. These have been built, either in or as subcontractors, with the most important EPCM contractors such as Bechtel, Fluor, Jacobs, SNC Lavalin, etc. ommitment, Quality, Efficiency and Reliability are part of our integrated service for our customers.

pĂşblica 4675 | Lima 34, PerĂş | www.gym.com.pe

BARRICK GOLD PUEBLO VIEJO

GYM S.A.* GyM completed over 5.5 million man hours on the job without any Loss Time Incident (LTI) “GyM has worked with large EPCM contractors in other countries,” said Mr. Victor Cuadros, COO of GyM’s Electromechanical Division and sponsor of the project. “However this was our first experience in a mining GyM S.A., established in 1933, is the largest project outside South America. The heavy contractor in Peru, and has executed works rainfall, extreme weather conditions and the in several Latin American countries like Chile, difficulties encountered in finding local skilled Dominican Republic, Bolivia, Panama, etc. personnel were some of the challenges we GyM provides construction services such faced. “While other contractors were leaving as earthworks, concrete works, structural the job, we supported the client by providing erection, mechanical installation, electrical manpower and skilled workers to finish what and instrumentation works to the mining was impossible for others. We not only brought industry as well as the oil & gas, energy and in skilled workers, but also we established infrastructure sectors. GyM is well known for a training program for Dominican personnel its “ahead of schedule policy” that goes beyond from areas around the project who actively contractual obligations. participated in the execution of the work.

GyM’s scope of work in Pueblo Viejo included Our experience working with local communities two main activities: in the past 30 years was fundamental to • Concrete and civil works: Earthworks, accomplish what was done in Pueblo Viejo. installation of concrete, foundations for the At the end of the project, we executed more crushers, conveyors, recuperation tunnels, than twice the initial scope of work due to thickeners, etc. The scope also included the the client’s satisfaction for our outstanding construction of five anti acid brick tanks for performance.” acid storage, each of 19 meter diameter, using Stebbins technology. GyM completed over www.gym.com.pe 57,000 m3 of concrete works • Mechanical works: GyM performed the structural erection and equipment installation for the wet area which included , four ball mills, and a smaller SAG Mill in the regrinding area. GyM installed 8,000 tons of steel structures and 2,600 tons of equipment. *GyM, a Graña y Montero company.

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barrick gold: pueblo viejo

Mine equipment being assembled at Pueblo Viejo

assessment, and associated infrastructure had to be cleared and restored. A massive studies. Understandably for a project of clean-up effort was required as a result of this size a number of challenges had to be the improper closure of a former mine on overcome in bringing the the property in 1999. mine to where it is today, not Initial findings showed heavy metal concentrations, least of all the challenge that 3 centred on leading one of acidity and sediment in the mining industry’s most local water ways. The ambitious environmental primary sources of soil and Amount of soil removed water contamination were rehabilitation projects. to rid the ground of contaminants the historic open mine Before the building phase pits, waste rock piles, the could commence, the land

130,000m

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BARRICKgold: GOLD PUEBLO barrick pueblo VIEJO viejo HATCH

Hatch has worked with Barrick around the world to deliver engineering, procurement and construction management services to marquee projects such as the Pueblo Viejo gold project in the Dominican Republic and the Goldstrike Roaster Facility in the United States.

The Pueblo Viejo project is a refractory gold deposit in the Dominican Republic with sizeable levels of silver and copper to be recovered using pressure oxidation technology. The mine is approximately 100 kilometres northwest of the country’s capital city, Santo Domingo. The mine’s life is expected to be more than 25 years with annual production of about one million ounces per year during the first five years.

Hatch provided EPCM services for the pressure oxidation facility and air separation unit (ASU), including four autoclave trains and a 4,000-tonne-per-day ASU plant. At 780 tonnes each, the brick-lined autoclaves are some of the largest ever built. The logistics included delivering the autoclaves by sea from the manufacturing facility in Malaysia. All told, the project teams have achieved about 4,000,000

hours of work without a lost-time injury.

Pueblo Viejo poured its first gold in the third quarter of 2012—on schedule and within capital guidance. The mine is ramping up to commercial production, expected in December 2012.

At Barrick’s Goldstrike Roaster Facility in Nevada, Hatch was retained to provide full EPCM services. Engineering was split into basic engineering, including vendor and detailed engineering. Process design included process definition development and construction of a METSIM process simulation.

The Goldstrike Facility is a greenfield ore gold processing plant located on the Carlin Trend, the most prolific gold mining area in the western hemisphere, northwest of Elko, Nevada.

The facility consisted of primary and secondary crushing, ore storage, reclaim to dry grinding, whole ore roasting, gas cleaning, carbon-inleach with carbon stripping and gold refining, also included are tailings treatment and disposal. www.hatch.ca

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barrick gold: pueblo viejo abandoned plant facilities and tailings storage areas. The Margajita River that passes through the hills near the site had been dubbed the “Coca-Cola river” by locals because of its dark colour—the result of having absorbed so much acid rock drainage from the former mine.

The final team consisted of Barrick Gold employees, hazardous materials experts and new employees hired locally and specially trained for the operation. One of the first tasks was to take over a thousand samples to define soil in the area into different categories and determine future treatment and landfill options. Buildings on the property also contained different types of

Interior of the autoclave building

maerz Maerz Ofenbau AG was founded in 1950 in Zurich, Switzerland, by Austrian magnesite producers to design and sell open hearth furnace technology to the world-wide steel industry. In 1965 Maerz began the design and construction of a patented “MAERZ® Parallel Flow Regenerative (PFR) Lime Kiln” with high thermal efficiency and superior lime quality. It finally became the generally known “MAERZ® Kiln”, continuously improved with - again patented – new features. Since March 2006 Maerz is a member of the German based ThyssenKrupp Resource Technologies GmbH, a world-wide renowned supplier for kilns and grinding technology to the cement and minerals industries. Today Maerz offers designs for PFRKilns with nominal capacities between 100 and 800 tpd and with firing systems for all types of

liquid, gaseous and pulverised solid fuels.

Maerz has so far designed and constructed over 600 MAERZ® Kilns in more than 65 countries around the world. In 2009 Barrick - Pueblo Viejo Dominicana Corporation - awarded Maerz the contract for the installation of three heavy fuel oil fired PFR lime kilns with a capacity of 500 tpd each of burnt lime. Burnt lime is required for the neutralization of the gold processing plant’s tailings. Maerz supplied all material and equipment for the kilns whereas PVDC took care of the erection of the lime plant.

After completing erection work, start up and commissioning of the Maerz lime kilns started in July 2012. By the end of 2012 all three kilns had reached the industrial production stage thereby successfully completing commissioning. www.maerz.com

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barrick gold: pueblo viejo hazardous waste that had to be categorized and disposed The Chemithon Corporation has over 58 years of of in a safe manner. experience in providing sulfur related chemical process Approximately 130,000 technology, R&D, engineering, design, process equipment cubic metres of soil manufacturing and a full range of services to its customers. were removed to rid the Chemithon is committed to developing new and innovative ground of contaminants. technologies and equipment for use in producing SO2 to meet the chemical demands required by modern mining Bioremediation, a process operations. Chemithon is honored to have been selected by that relies on microorganisms the Barrick Gold teams to supply the sulfur burning SO2 gas to return altered land to plants for use in gold mining at both the Pueblo Viejo and the natural environment, the Pascua Lama Mine sites. was successfully www.chemithon.com used to treat almost 100,000 cubic metres of hydrocarbon contaminated soil.

In addition to the clean-up of hazardous substances within the mining areas, it was proposed that the clean-up of the surrounding areas would cost the Dominican Government an additional $75 million and the company would contribute $37.5 million with the other half coming from state funds. In the end, Barrick offered to take on the full estimated cost of remediation of the surrounding areas to help improve local living conditions.

To complement the clean-up, Barrick has also sponsored a significant reforestation project in the area.

The Chemithon Corporation

12,000 A large majority of people working at Pueblo Viejo are from the Dominican Republic

Direct and indirect jobs the mine will support in its lifetime

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EXCLUSIVE RENTAL Motor Plan S. A. is the exclusive representative of the multinational franchises National Car Rental and Alamo Rent A Car in the Dominican Republic. It is one of the leading and fastest growing car rental companies in the country and has almost forty years in the car rental market since its opening on December 17, 1973.

Motor Plan S.A. acquired the National Car Rental franchise in 1974, this brand mainly focuses on serving the corporate market.

In its beginnings, it started operating in Las Americas International Airport, main airport terminal in the country, as a solid option for the retail customers arriving to the Dominican Republic. As the business grew, offices where opened in Santo Domingo, Santiago,

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La Romana, Punta Cana and San Francisco de MacorĂ­s, forming a network of eighteen points of sale which support the transportation needs of customers from different businesses located throughout the country. In 2001, Motor Plan acquired the Alamo Rent Car brand, consolidating its position in the car rental retail tourism sector.

Grupo Ambar, a multinational vehicle group with more than 90 years’ experience in the market, is the parent company of Motor Plan and is one of the leading vehicles distributors in the Dominican Republic with brands such as Nissan, Infinity, Chevrolet and Suzuki. Grupo Ambar includes Santo Domingo Motors, Ambar Motors, and Auto Ambar, vehicle companies

BARRICKgold: GOLD pueblo PUEBLO viejo VIEJO barrick

in the Dominican Republic, Puerto Rico, Virgin Islands and Venezuela respectively; Equipos Diesel, representative of recognized brands of generators, construction equipment, agricultural vehicles and equipment and trucks; Todopieza, distributor of brands of auto parts and after-sales articles for vehicles; and Motor Crédito, a bank that is among the national leaders in the vehicle financing market.

Motor Plan, with its brand National Car Rental, began its business relationship with Placer Dome in the year 2003. Placer Dome was initiating its work in the Pueblo Viejo mine, later to be acquired by Barrick Gold. In order to satisfy Barrick Gold’s needs of renting a fleet in optimum conditions, functional at all times and given the location of the mine far from the service centers, Motor Plan created its modality of onsite service. With this, offering preventive maintenance in the client’s facilities thus minimizing time of service, prolonged interruptions and transportation of the fleet to another city.

After forty years, Motor Plan continues innovating, creating new products and services which help customers improve their operations providing new business opportunities and solutions. j.muniz@grupoambar.com www.nationalcar.com.do

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SAFETY AND ENVIRONMENT Banlaw’s highly skilled and experienced technicians are up to date with the latest mine safety and environmental standards and operations.

Banlaw staff have never had an LTI at a client site in over 30 years.

FUEL MANAGEMENT SOLUTIONS Banlaw is a global leader in fuel management solutions. They are specialists and have the people, products and system capabilities to help your operations control its fuel usage from ‘buy to burn’, globally and locally, saving time and money.

A Global Leader in Fuel Management Solutions Easy Safe Accurate Innovative BANLAW’S IN-HOUSE FUEL MANAGEMENT SPECIALISTS If you want to stay on top of your fuel management without employing your own fuel administrator, Banlaw’s expert staff can be a more efficient and a cost effective alternative. They can be based on site or come in to conduct periodic inspections, maintenance and calibrations. There is often a benefit in having an independent third party manage your facilities, separate from your fuel supplier and your staff.

Banlaw’s facilities management and maintenance services are supported by a global help desk servicing from Africa to the Americas and staffed by specialists who can solve issues on the spot. The Help Desk also proactively monitors the health of your system, alerting you to issues before you even notice them on the ground.

ONGOING SERVICE AND SUPPORT Your refuelling systems need to be properly maintained to ensure you gain the maximum benefit from them.

Regular inspection is also a legislative requirement in some countries for some systems.

After installing new systems, Banlaw can execute a service agreement to make ongoing support cost effective and efficient so you get the most from your new system or we are on call to visit just when you need us.

BANLAW MANUFACTURES A VARIETY OF INDUSTRY LEADING REFUELING HARDWARE WITH FLOW RATES AS HIGH AS 1000 LITRES PER MINUTE

INNOVATIVE PRODUCTS AND SOLUTIONS Banlaw FuelTrack™ provides precise monitoring, reconciliation and centralised reporting of any machine or vehicle’s fuel or lubricant use.

Banlaw FillSafe™ allows for the transfer of fuel at rates of up to 1000 litres (265 gallons) per minute with zero overfill, zero tank pressure and zero spillage during refuelling.

Banlaw LubeCentral™ is a scalable system that makes the transfer of oil and other fluids a clean, efficient and safe operation. Easy to use push to connect, flush face, oil and coolant fittings will reduce contamination and increase flow rates whilst eliminating spills.

Contact us: salesna@banlaw.com | www.banlaw.com

barrick gold: pueblo viejo

Plant site at Pueblo Viejo

Banlaw

Imagine a fuel management solution that is built on 30 years of experience and innovation in the mining industry. Imagine a system that ensures safe and secure fuelling, easy operation, accurate data collection and full reconciliation. Imagine a solution that transmits your fuelling information automatically, accounting for every litre of fuel from “buy to burn”... That system is Banlaw FuelTrackTM. Banlaw’s highly skilled and experienced technicians are up to date with the latest mine safety and environmental standards and operations.

Banlaw is a global leader in fuel management solutions. We are specialists in the mining sector and have the people, products and system capabilities to help your operations control its fuel usage from ‘buy to burn’, globally and locally, saving time and money. salesna@banlaw.com

Barrick also has a proud record of helping to improve the health status of the area through its use of a communitybased approach to partnership with local agencies. Cholera and dengue fever are endemic in the locality and since 2009 Barrick has funded a health prevention educational programme that reached tens of thousands of people. Two hundred Dominicans, mainly young people, were trained to work with the local municipalities of Cotuí, Fantino and Maimón. The teams visited households with the goal of educating residents on hygiene, family, and environmental health.

The importance of this programme has been recognised as a significant factor in reducing the presence of dengue fever in the province, according to the local Health

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CENTRAL DRILL PARTS & MACHINERY, INC. www.centraldrill.com

Incorporated in 1987, Central Drill Parts started as a source of parts and service for the drilling industry. Over the years we have diversified into other industries. We provide parts and service for the following industries: • Blasthole drilling • Water well drilling • Aggregate & quarry drilling • Underground mining equipment • Construction • Road Construction • Mining

barrick gold: pueblo viejo Department. Since the Central Drill Parts & Machinery completion of the second Central Drill Parts & Machinery has been in business for phase of the programme, 25 years serving the drilling industry, including blast hole, which was sponsored by the down the hole and water well drilling. We supply air-ends, Ministries of Labour and drill string, pump drives, new and rebuilt pumps, and many Public Health, Barrick and other components for drills from different manufacturers. the local municipalities of We provide new and reconditioned drill parts and supplies, a full line hydraulic repair shop with testing capabilities, Cotuí, Fantino and Maimón, hydraulic cylinders, pumps, motors, valves, cylinder packing there have been no reports kits, and custom built Gates hydraulic hoses. of cholera or dengue fever www.centraldrill.com cases in the region.

In August 2012, Barrick Gold Corporation announced that the Pueblo Viejo mine had achieved first gold production, with ore being processed through the first two of four autoclaves.

“Bringing this mine successfully into production on schedule, within capital guidance and with an excellent safety record is the result of tremendous efforts from across the company,” said Jamie Sokalsky, President and Chief Executive Officer of Barrick at the time. “Pueblo Viejo is a world-class asset, one of only a handful of mines that will produce more than one million ounces of gold per year. We expect it to be a major contributor of low cost production to Barrick for decades to come.”

Five months later, in January 2013, Efforts are now concentrated the company announced it had achieved on building a working mine

“SERVINCA is a company dedicated to providing the highest quality engineering and construction services to each of its clients” BE Mining | 83

barrick gold: pueblo viejo

The process plant site at Pueblo Viejo where gold, silver and copper will be processed

commercial production at the mine. Pueblo With commercial production achieved, Viejo was completed at a capital cost of Barrick is now in the midst of plans to $3.7 billion and created more than 11,000 ramp up to full capacity in the first half direct jobs during the of 2014. Barrick’s share of full-year 2013 production construction phase of the from Pueblo Viejo is project. The operation is expected to support about anticipated to be about 2,000 direct jobs plus nearly 500,000 ounces of gold at 10,000 indirect jobs over its all-in sustaining costs of 25-plus year mine life, with $700-$750 per ounce.

Number of years the Dominicans accounting for Barrick’s share of average production phase nearly 90 percent of the annual gold production in the should last for full-time workforce. first full five years of operation

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Kentz, delivering innovative construction solutions to the mining industry Providing mechanical, electrical and instrumentation services to clients in the Americas and Worldwide for over 30 years.

Global solutions to local challenges... www.kentz.com

barrick gold: pueblo viejo

Part of the site revegetation and reforestation efforts

kentz

Kentz Group has been delivering top-quality services to leading international clients in all sectors of industry and commerce since 1919.

With an extensive track record in executing projects of the highest quality, to agreed schedules and within budget; we are totally dedicated to innovation and excellence in the provision of all our services.

We are committed to providing a quality and innovative service to all our clients. We are continuously improving the quality of our work through client interaction, leadership, teamwork and work process improvement.

We have a significant world-wide presence, which enables us to provide the responses and performance that our clients demand, exceptional service, that is second nature to us, but second to none in our industry. www.kentz.com

is anticipated to be 625,000-675,000 ounces at all-in sustaining cash costs of $500-$600 per ounce and total cash costs of $300-$350 per ounce. Including depreciation of mine construction capital, costs are expected to be $650-$750 per ounce.

In other news, a 215 MW dual fuel power plant at an estimated cost of approximately $180 million was successfully commissioned towards the end of 2013 by its Finnish manufacturer W채rtsil채. The plant has the ability to transition from heavy fuel oil (HFO) to lower cost liquid natural gas (LNG).

It goes without saying that a number of contractors and businesses have helped contribute to the success of the Pueblo Viejo mine since Barrick became involved with the project. One such business that has been playing a crucial role is SERVINCA, which was contracted to construct 30 kilometres

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barrick gold: pueblo viejo

Steam and oxygen are injected into the autoclaves to oxidize the ore

of four-to-thirty six foot long HDPE and carbon steel underground piping utilities for the potable, freshwater, firewater and storm sewer systems of the mine’s process plant site, as well as the power distribution and communications networks from the Main Substation to all of the process plant site facilities and surrounding areas.

Boasting over 33 years of experience in the execution of multidisciplinary projects covering the electrical, mechanical and civil areas for the private and public sectors, the main focus of SERVINCA in the Engineering and Construction of Electromechanical and

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barrick gold: pueblo viejo Civil projects is to provide Hawk Measurement Systems (HAWK) the highest quality and safety Hawk Measurement Systems (HAWK) was established standards to each of its clients. in 1988 and has grown to become recognized as a S E R V I N C A’s vast world leader in level, positioning and flow measurement experience allows it to technology. HAWK manufactures level measurement provide multiple engineering equipment based on different technologies such as, solutions to its clients Self Cleaning Acoustic Wave, Advanced Microwave Transmission, Sonar, Guided Wave Radar (TDR), Switches for energy generation, and Magnetic Level Gauge & Magnetostrictive Level transmission, distribution Transmitter. HAWK products are inherently designed to and electrical or mechanical solve most difficult level measurement applications and industrial projects such as are proven in a wide range of areas including mining/ beer plants, airports, hydro mineral processing, water supply/waste water, bulk material electrical dams, metro, handling, chemical and oil & gas etc. substations, structural steel www.hawkmeasure.com fabrication and similar works for the mining sector.

As a general contractor, SERVINCA has executed several projects at the mine that fall under the disciplines of piping, metalmechanical, steel structures, earthworks, concrete works and others such as sheet piling, geomembrane, geotextile, gabions and concrete structures.

SERVINCA is understandably proud to be part of the construction of the 34.5kV overhead transmission lines for the mines process plant site and surrounding areas. To date it has successfully executed electrical,

“the mine´s lifespan is likely to be longer than projections suggest”

A flash vessel for the pressure oxidation process is off loaded

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A G I TAT O R S P E C I A L I S T S F O R T H E MINERAL PROCESSING INDUSTRY

Contact: John Pascual, Product Manager, Mixers Telephone: 905-693-8595 | e-mail: mixers@haywardgordon.com www.haywardgordon.com

barrick gold: pueblo viejo instrumentation, fibre optic networks, substations, poleHayward Gordon has been actively involved in the selection mounted transformers, civil and manufacture of mixers for the mining and mineral works, and medium and processing industry for over 40 years. In this time, we have low voltage installations developed an expertise and installation portfolio second along the process plant to none. In addition, Hayward Gordon has been at the site. As demanded by its forefront of many of the largest and most innovative projects in the world. Using our experience in mineral processing client the electrical systems technology, Hayward Gordon partnered closely with Barrick that have been built have to provide optimized and highly efficient agitator systems been done so to the highest throughout the plant. We are proud to share in the success quality standards, providing of the Barrick’s Pueblo Viejo Project. an efficient service that www.haywardgordon.com corresponds with the top international mining levels.

One particularly impressive statistic, released in December 2012, showed that SERVINCA has achieved a total of 1.2 million man hours without experiencing a single lost time incident in the course of carrying out any of its projects at the Pueblo Viejo mine.

The construction of the process plant site was completed, commissioned and commenced full production in 2012, and SERVINCA is proud to have been selected

by Barrick as one of the main general contractors supporting the operation

Hayward Gordon

1.2 million Coconut mats are laid along the slopes of a recently-constructed access road to aid in soil stabilisation

Man hours achieved by SERVINCA without experiencing a single lost time incident in the course of carrying out its projects at the Pueblo Viejo mine

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Water and Wastewater Treatment Solutions Worldwide

Phone: +1-905-475-1545 | Email: info@napier-reid.com

www.napier-reid.com

barrick gold: pueblo viejo process by prov iding Napier-Reid engineering , construction Napier-Reid is a leading Canadian engineering/ and maintenance manufacturing company specialized in custom-designed services for the process water and wastewater treatment packages. Since its plant site facilities. inception in 1950, Napier-Reid has completed over 3,000 It should be highlighted water/wastewater treatment projects in Canada and around that Barrick does indeed the world. These include package treatment systems for some of the world’s largest mining projects by Barrick Gold, recognise that the mine Kinross, Xstrata, Sherritt, FQM, Cameco, as well as major has a finite life, despite oil/gas companies in Middle East, Venezuela and Nigeria. the fact the production We are active in both municipal and industrial markets. phase should last for at Our specialties cover potable water treatment, highleast 25 years. There purity process water production, sewage and industrial is therefore a strong wastewater treatment. Napier-Reid proudly provided the emphasis on planning for ARD filters and demineralization water treatment package for the Pueblo Viejo project. a sustainable and diverse www.napier-reid.com future. Barrick has just provided seed capital for a business incubation bureau in Cotuí to assist the start-up of new businesses in the area that are non-mining related.

When the mine finally closes, significant reserves will have already been placed in trust with the Dominican government to deal with the eventuality. Meanwhile, Barrick does retain the belief that the mine´s lifespan is likely to be significantly longer than current projections suggest.

It believes strongly that there is additional gold at Pueblo Viejo, but the declaration process is very complex and it is extremely Process facilities

“When the mine finally closes, significant reserves will have already been placed in trust with the Dominican government to deal with the eventuality” BE Mining | 97

barrick gold: pueblo viejo

$3.7 Billion Capital cost completion of Pueblo Viejo

common in this industry for mines to have undeclared reserves. Also, the steady rise in the price of gold allows it to mine ever smaller concentrations of gold and if this trend continues it is likely to extend the life of the mine still further.

One thing that the company is absolutely certain of is that it will be leaving this site in a much better condition than it found it. When the mining operation closes it will be done in a proper manner to international standards. At Pueblo Viejo Barrick intends to bring to bear all the know-how and experience gleaned from mining operations across the globe and leave behind a vibrant and dynamic local community and economy.

Whatever the long term future holds, it cannot be disputed that Pueblo Viejo has the potential to revitalise a region where nearly half the population lives below the national poverty line. This potential is already starting to be realised as the mine continues to bring much-needed diversification to the Dominican economy.

For more information about Barrick Gold Pueblo Viejo visit: www.barrick.com

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Mine in brief Pueblo Viejo is located in the Dominican Republic, approximately 100 kilometers northwest of the capital Santo Domingo. Barrick acquired its 60 percent interest in the mine in 2006 and operates the mine. Goldcorp holds the other 40 percent. Construction of the Pueblo Viejo mine involved an investment of nearly $4 billion, the largest foreign investment in the history of the Dominican Republic. The mine achieved commercial production in January 2013.

MANAGEMENT AND DIRECTORS

corporate Office

Peter Munk

Barrick Gold Corporation Brookfield Place TD Canada Trust Tower 161 Bay Street, Suite 3700 P.O. Box 212 Toronto, Canada M5J 2S1

Co-Chairman of the Board

John Lawson Thornton Co-Chairman of the Board

Jamie C. Sokalsky President, CEO, Director

Charles William David Birchall Vice Chairman of the Board

Ammar Al-Joundi CFO, Executive Vice President

James K. Gowans COO, Executive Vice President

100 | BE Mining

Tel:+1 416 861-9911 Email: adminap@barrick.com www.barrick.com

Barrick Gold stock watch

products • Gold

services • Mining • Exploration Exchange NYSE

Shares 1,164.65M

Symbol ABX

Market Cap. 23,712.32M

Currency USD

Div/yield 0.05/0.98

regional HIGHLIGHTS The mine achieved commercial production in January 2013 and is expected to ramp up to full capacity in the first half of 2014. In the first nine months of 2013, Barrick’s share of gold production was 331,000 ounces at all-in sustaining costs of $743 per ounce.

operating locations • Argentina • Australia • Canada • Chile • Dominican Republic

• Papua New Guinea • Peru • Saudi Arabia • United States • Zambia

Key stats and ratios

Q4 (Dec ‘13) Net profit margin -94.74% Operating margin -97.27% EBITD margin - Return on average assets -28.77% Return on average equity -83.61%

2013 -80.70% -70.49% 44.15% -23.83% -55.74%

Financial information from Google Finance and Thomson Reuters

BE Mining | 101

Capitalising on a golden opportunity Led by the Pinos Altos Mine, Agnico-Eagle’s operations in Mexico’s Sierra Madre gold and silver belt continue to go from strength to strength

written by: Will Daynes research by: Peter Rowlston

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Agnico-Eagle: Pinos Altos Mine

T

hough its mining history may span close to 500 years and counting, Mexico remains a major mineral exploration ground and retains its position amongst the world’s largest metal producers. The country’s rich geology and favourable regulations has made it an epicentre for mining activity, not least it is mountainous northern region, home to the legendary Sierra Madre gold and silver belt.

It is here, 220 kilometres west of Chihuahua, where one finds the Pinos Altos mine.

An open-pit and underground mining operation, Pinos Altos, including the nearby stand-alone Creston Mascota pit and heap leach operation, has proven and probable reserves of approximately 2.7 million ounces of gold and 74.4 million ounces of silver.

The mine itself was acquired in 2006, by Toronto-based company Agnico-Eagle, an international gold producer, with operating mines in Canada, Finland and Mexico.

Pinos Altos is Agnico-Eagle’s first mine in Mexico. Open pit mining began there in 2008 from the Santo Niño pit, and an underground mine beneath the pit began production in 2010. It poured its first gold in July 2009 from the Santo Niño heap leach, and in September from the mineral processing plant, achieving commercial production in November 2009.

Pinos Altos is expected to produce 159,000 ounces of gold as well as by-product silver in 2013, and to average 148,000 ounces of gold per year from 2014 to 2015, with a mine life through 2029. In addition, Creston Mascota is expected to pour 32,000 ounces of gold in 2013 and to average 54,000

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Pinos Altos mine site aerial

Agnico-Eagle: Pinos Altos Mine

Serving and Generating Energy!

Throughout 60 years Grupo Zeta has gained vast experience allowing them to offer their customers a safe, timely and high quality service. As leaders we are the best choice for the supply of LPG both in the residential sector, industrial and commercial. www.grupozeta.com

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Agnico-Eagle: Pinos Altos Mine ounces of gold per year from 2014-2015, with an expected Founded in 1946, Zeta Group has dedicated over 60 years mine life to 2018. to marketing, storage, packaging, distribution and Surface mining at Pinos transport of LPG. Altos is carried out at the Our group consists of over 80 companies in Mexico and Santo Ni単o and Oberon abroad employing more than ten thousand people, we de Weber pits, and, in participate significantly in Peru, Guatemala, Belize, Costa Rica, El Salvador, Nicaragua and Spain. future, the San Eligio and We are committed to our customers providing an excellent El Apache pits. Mining is and safe service, 365 days a year 24 hours a day, we take by conventional open pit care of the smallest business to the largest enterprise. methods, using shovels and www.grupozeta.com trucks to remove around 17 million tonnes of ore and waste material each year.

Meanwhile, the underground mining method is sub-level stoping, used to extract ore from the Santo Ni単o, Cerro Colorado, Oberon de Weber and San Eligio deposits.

This ore is subsequently trucked to surface via a ramp system. At current maximum production, the underground mine can provide 3,000 tonnes of ore per day. Shaft-sinking began in 2012 to increase the underground production capacity to 4,500 tonnes per day.

This will better match the mine capacity to the mill, which is operating at more than the design of 4,000 tonnes per day.

Most of the ore from Pinos Altos is treated in a process plant, with the lower

Zeta Group

2.7 million Ounces of proven and probable gold reserves at Pinos Altos Pinos Altos tree nursery

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“Pinos Altos is expected to produce 159,000 ounces of gold as well as by-product silver in 2013�

Pinos Altos gold pour

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Agnico-Eagle: Pinos Altos Mine grade ore heap-leached. The conventional, 4,000-tonne per day process plant includes crushing, grinding, gravity concentration and agitated leaching, followed by countercurrent decantation. Gold and silver are recovered using the Merrill-Crowe method, and a refinery produces gold and silver dorĂŠ bars on site.

Metals recovery in the plant is estimated at 93 percent for gold and 50 percent for silver over the life of the mine.

A d d i t i o n a l l y, the Creston Mascota facility is responsible for mining an average of 4,000 tonnes of ore per day by employing the same surface mining method as that used at Pinos Altos. All the Creston Mascota ore is processed using heap-leaching. The heap leach facility is similar to the Pinos Altos facility, but here the precious metals are recovered by a small carbon column circuit. The gold and silver is stripped from the carbon in the Pinos Altos plant and then poured as dorĂŠ bars, with expected gold recoveries of 71 percent and 16 percent for silver.

In the third quarter of 2013, payable gold production from the Pinos Altos mill and heap leach pad totalled 43,736 ounces, at a total cash cost per ounce of $404. Additionally, silver production totalled 614,000 ounces in the quarter. The quarter saw Pinos Altos process some 661,000 tonnes of ore, with the

Pinos Altos employees

Pinos Altos mill averaging 5,458 tonnes per day, a quarterly record, while approximately 158,800 tonnes of ore was stacked on the Pinos Altos leach pad. The mine site costs in the quarter were $45 per tonne.

Taking these latest figures on-board, in the first nine months of 2013, payable gold production totalled 135,283 ounces from the mill and heap leach pad at a total cash cost per ounce of $402, and silver production totalled 1,849,000 ounces in the period. In those nine months Pinos Altos processed 2,052,000 tonnes of ore, with the mill averaging 5,244 tonnes per day, while approximately 620,900 tonnes of ore was stacked on the leach pad.

This year has also seen operations at Creston Mascota resume, in April to be

BE Mining | 109

Pinos Altos underground drilling

Agnico-Eagle: Pinos Altos Mine exact, following a temporary suspension, in which time the company carried out leach pad modifications. In the third quarter of 2013, payable gold production totalled 11,307 ounces from the Creston Mascota heap leach pad at a total cash cost per ounce of $523, with approximately 334,600 tonnes of ore being stacked on the Creston Mascota leach pad. It takes the nine month total of payable gold production from Creston Mascota to 23,261 ounces at a cost per ounce of $511.

In 2012, the company began sinking a $106 million underground production shaft, which it expects to complete in 2016.

Milestones achieved in the first quarter of 2013 included the completion of the raise bore pilot hole, concrete pours for the head frame, and the initial mobilization of the contractor and the first blasts in the shaft.

This project allows for better matching of the mill capacity with the future mining capacity when open pit mining begins to wind down, as planned in the next several years.

The Pinos Altos shaft-sinking project remains on schedule and budget, with approximately 50 percent of the total budget committed to date. Construction of surface infrastructure is nearing completion, and shaft-sinking will continue through 2015.

In the meantime, the company’s exploration continues to focus on converting resources to reserves, and expanding its existing assets and other targets.

For more information about Agnico-Eagle: Pinos Altos Mine visit: www. agnicoeagle.com

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company in brief Agnico Eagle Mines Limited (Agnico Eagle) is a Canada-based international gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates in four segments: Canada, Europe, Latin America and Exploration. The Company’s mines and mine projects include LaRonde mine, Lapa mine, Goldex mine project, Kittila mine, Pinos Altos mine, La India mine project and Meadowbank mine. Effective March

22, 2013, the Company acquired a 9.271% interest in Atac Resources Ltd. In April 2013, it acquired an 11.074% stake in Sulliden Gold Corp Ltd. In May 2013, it acquired the entire share capital of Urastar Gold Corp.

MANAGEMENT AND DIRECTORS James D. Nasso

Jean-Luk Pellerin

Independent Chairman of the Board

Senior Vice President - Human Resources

Sean Boyd

Donald G. Allan

Vice Chairman of the Board, President, Chief Executive Officer

Senior Vice President Corporate Development

David Smith

Alain Blackburn

Chief Financial Officer, Senior Vice President - Finance

Senior Vice President - Exploration

Picklu Datta Senior Vice President - Finance, Treasury

Senior Vice President - Environment and Sustainable Development

R. Gregory Laing

Timothy Haldane

Senior Vice President - Legal, General Counsel, Corporate Secretary

Senior Vice President, Latin America

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Louise Grondin

agnico-eagle stock watch

Office Head Office Suite 400, 145 King Street East TORONTO, ON M5C 2Y7 Canada Tel: +1-416-9471212 www.agnicoeagle.com

Exchange tse

Shares 173.96M

Symbol aem

Market Cap 6,422.63M

Currency cad

Div/yield 0.09/0.95

products • Gold

operating operations pinos altos highlights Pinos Altos is located in the mountainous region of northern Mexico, 220 kilometres west of Chihuahua. Mexico is known for its rich geology and favourable mining regulations. Pinos Altos – including Creston Mascota -- has proven and probable reserves* containing 2.7 million ounces of gold and 74.4 million ounces of silver (38 million tonnes grading 2.2 g/t gold and 60.7 g/t silver).

Pinos Altos is expected to produce an average 148,000 ounces of gold per year from 2014 to 2015, with a mine life through 2029.

• Canada • Finland

• Mexico • Nunavut

Key stats and ratios

Q4 (Dec ‘13) Net profit margin -103.68% Operating margin -104.64% EBITD margin - Return on average assets -34.97% Return on average equity -56.50%

2013 -24.81% -19.08% 33.87% -7.96% -12.73%

Financial information from Google Finance and Thomson Reuters

BE Mining | 113

Randgold Resources

Reaping Africa’s golden rewards As its third quarter report for 2013 highlights, Randgold Resources’ African discoveries continue to surprise and create huge value for their stakeholders

written by: Will Daynes research by: Jeff Abbott & Robert Hodgson

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Randgold practises a non-discrimination policy, striving to recruit and retain the best people and draws on talent from the populations of the countries in which it operates

Randgold Resources

I

f any proof were needed to support the belief that Africa has become one of the world’s epicentres for mining success over the last decade, one arguably needs to look no further than Randgold Resources. An Africa-focused gold mining and exploration company, it has been the architect behind a host of major discoveries to date in Mali, the Côte d’Ivoire, Senegal and the Democratic Republic of Congo (DRC).

Included among said discoveries are the company’s 7.5 million ounce Morila deposit in southern Mali; the seven million ounce Yalea deposit and the 5.5 million ounce Gounkoto deposit, both in western Mali; the four million ounce Tongon deposit in the Côte d’Ivoire and the three million ounce Massawa deposit in eastern Senegal.

The Morila mine was very much Randgold’s first success story. Financed and built by the company it has gone on to produce more than six million ounces of gold since October 2000, distributing more than $2 billion to its stakeholders. More recently, the company’s Tongon mine in Côte d’Ivoire poured its first gold in November 2010, while its Gounkoto mine, south of Loulo, Mali, delivered first ore to the Loulo plant in June 2011 and paid its first dividends to shareholders in mid-2012.

Today Loulo-Gounkoto complex is the flagship of the company and it was its strong performance in the three months to the end of September 2013 that powered Randgold to an 80 percent quarter on quarter profit increase, a feat made all the more impressive by the fact that the company experience a three percent drop in the average gold price received during this period.

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T

hrough a diverse set of services including strategic facilitation workshops, strategic business reviews and analytics to align the business effort for effective implementation of its strategy.

Contact us on +27 11 4531020/4/5 www.Strategnos.com BUILDING BUSINESS THROUGH STRATEGY AND KNOWLEDGE‌

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Randgold Resources It was here that an increase in the grade of product, Strategnos was established in 1999, and is synonymous coupled with a substantial with sound Strategic thinking teamed with a comprehensive improvement in recoveries, Understanding and Knowledge of Business Practice. helped deliver Randgold a 36 Strategnos occupies a niche Market, improving Business percent increase in production and Supply Chain Management, by employing the Expertise to a record 165,146 ounces of a highly skilled Team of Consultants and Analysts.The name Strategnos merges the two Greek words, Strategia over the previous quarter. and Gnosi, meaning Strategy and Knowledge respectively; The improvement in the hence our fundamental Foundation - Building Business recovery rate was achieved through Strategy and Knowledge. through the commissioning www.strategnos.com of a milling circuit recycle crusher and a new oxygen plant. Other projects completed during the quarter included the conversion of the mine’s generators to heavy fuel oil and the expansion of the carbon in leach (CIL) tank.

The quarter also saw the early commissioning of the company’s Kibali project in the DRC, meaning that 2013 will be remembered as the year that the Kibali project achieved its first gold pour and commenced commercial production. It was in 2009 that the company acquired a 45 percent interest in Kibali, a project that stands at 10.9 million ounces of mineral reserves and at the time was recognised as one of the largest

strategnos

550,000 ounces

Randgold’s 2014 production target for the Kibali project Nzoro River hydropower sources for Kibali

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As part of the Kibali project, Randgold has funded and managed the upgrade of the main access route between the towns of Doko and Aru on the Ugandan border

120 | BE Mining

undeveloped gold deposits in Africa.

As well as coming online well ahead of schedule, Kibali is now expected to exceed its 30,000 ounce production forecast for the fourth quarter of 2013 and it is well on the way to meeting Randgold’s target of 550,000 ounces for 2014. Today the company is busy ramping the project up to full capacity on its plant’s oxide circuit, with the completion of the remaining plant and hydropower stations, and the commissioning of the sulphide circuit, scheduled for next year. Furthermore, the development of Kibali’s underground mine is progressing well and to schedule.

In Randgold’s third quarter statement, Chief executive Mark Bristow was keen to highlight that the successful start-up of the project represents a remarkable combination of geology, metallurgy, engineering and logistics, as well as negotiation and diplomacy.

“The Randgold team only moved on site in January 2010 and in less than four years it has built a world-class gold mine in one of Africa’s remotest regions, in the process more than doubling its reserves to 11.6 million ounces and increasing its resources to 21 million ounces. While doing this, we have also completed or progressed major performance-enhancing capital projects at Loulo-Gounkoto and Tongon.”

During the quarter, performance at the aforementioned Tongon asset improved in line with the company’s plan, with mill throughput rising significantly thanks to the commissioning of a new of related capital projects. The progress Randgold has made to date in 2013 at Tongon will continue into the fourth quarter during which time a further

Randgold Resources

Randgold is committed to providing the safest possible working environment for its employees

“As well as coming online well ahead of schedule, Kibali is now expected to exceed its 30,000 ounce production forecast for the fourth quarter of 2013” mill tonnage ramp-up is scheduled, alongside the commissioning of new crushers and a cyclone pump upgrade.

“Our focus now is on securing steady-state production at Kibali while completing the rest of the development, and on achieving the full benefit of the performanceenhancing projects at Loulo-Gounkoto and Tongon,” Bristow added in his third quarter statement. “We’re also still maintaining a strong emphasis on exploration, which has traditionally been the driver of Randgold’s

growth. At Kibali, where an upgrade of the underground mine plan has already delivered an interim increase in reserves, continued exploration points to a further upside, and in West Africa, our geologists are moving back into the field after the rainy season to follow up identified targets.”

For more information about Randgold Resources visit: www.randgoldresources.com

BE Mining | 121

company in brief Randgold Resources Limited is engage in the exploration and development of gold deposits in Sub-Saharan Africa. The Company’s activities are focused on West and Central Africa. In Mali, the Company has an 80% controlling interest in the Loulo mine through Somilo. The Company also has an 80% controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto S.A. The Company owns 50% of Morila Limited, which in turn owns 80% of Morila SA, the owner of the Morila mine in Mali. The Company also owns 83.25% controlling interest in the Massawa project in Senegal. The Company’s Gounkoto is

located approximately 25 kilometers south of Loulo’s plant. The Tongon project is located within the Nielle exploitation permit in the north of Cote d’Ivoire, approximately 55 kilometers south of the border with Mali.

MANAGEMENT AND DIRECTORS D. Mark Bristow Ph.D.

Samba Toure

Chief Executive Officer, Executive Director

General Manager - Operations West Africa

Graham P. Shuttleworth

John Steele

Chief Financial Officer, Financial Director, Executive Director

Technical and Capital Projects Executive

Martin Welsh General Counsel, Secretary (designate)

Non-Executive Independent Chairman of the Board

Tahirou Ballo

Norborne P. Cole Jr.

General Manager - Gounkoto

Senior Independent Non-Executive Director

Williem Jacobs

Christopher L. Coleman

General Manager - Operations, Central and East Africa

Non-Executive Chairman of the Board

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Philippe Lietard

randgold resources stock watch

Office Corporate Office 3rd Floor Unity Chambers, 28 Halkett Street SAINT HELIER, JE2 4WJ Jersey Tel: +44-1534-735333 www.randgoldresources.com

Exchange lon

Shares 92.46M

Symbol rss

Market Cap. 4,454.51M

Currency gbx

Div/yield 30.67

financial highlights • Record gold production for quarter and year, up 20% and 15% respectively •P roduction and costs in line with annual guidance • Profit in lin quarter on quarter and down year on year on back of lower gold price • Total cash cost per ounce down 5% quarter on quarter and 3% year on year •C ash balance increases quarter on quarter with no net debt • 60% improvement in lost time injury frequency for the year • Proposed dividend maintained at US$0.50 per share.

products • Gold

operating territories • Mali • Côte d’Ivoire

• Democratic Republic of the Congo

Key stats and ratios

Q4 (Dec ‘13) 2013 Net profit margin 31.68% 28.63% Operating margin 35.13% 31.18% EBITD margin - 42.66% Return on average assets 11.15% 10.02% Return on average equity 11.47% 10.13%

Financial information from Google Finance and Thomson Reuters

BE Mining | 123

124 | BE Mining

Eldorado Gold

Discipline delivers Based in Vancouver, Eldorado Gold presents itself as a low-cost gold producer with a vision to create a long-term, profitable business with healthy margins using a disciplined approach to growth

written by: john o’hanlon research by: Jeff Abbott

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Development works in the main 8,5km tunnel linking Stratoni to Olympias mine

Eldorado Gold

D

iscipline is a great virtue in the Eldorado has seven operating mines and challenging price environment a pipeline of projects in different stages of the gold mining industry finds construction, development and exploration. itself in today: the players who Though it also operates in Turkey, China and can keep operating through the South America the company has a special lean times will be the ones best place to take focus on northern Greece, to which it was advantage of anticipated price rises. But though attracted by its solid infrastructure, wellthese struggled upward to the tune of some educated labour force, reliable legal system $60 over the course of January – and western and consolidated democratic institutions. economies are showing signs of growth allied Eldorado Gold has been present in Greece to greater confidence – prospects for 2014 since 2008, when it acquired the Perama Hill remain uncertain. Investors know that, and project in Thrace, which is at an advanced they continue to set a premium on discipline. stage of development with an environmental This disciplined approach is reflected impact assessment (EIA) expected to be nowhere better than in the cost of production. approved during the course of this year. Final With that in mind it was an approval of the Perama Hill achievement for Eldorado’s EIA was in fact expected in 2013, however with local Chief Executive Officer elections taking place this Paul N Wright to be able year it is not now thought that to announce a ten percent the approval will be granted increase in production over Increase in gold before then. Assuming the course of 2013. Gold production in 2013 production for the year was a late 2014 construction 721,201 ounces. However start, Eldorado now expects at an average of $494 an ounce, cash costs to be committing $25 million, less than came within a whisker of the 2012 figure of had been previously earmarked.

Perama Hill together with the Olympias $483 and considerably better than the midyear estimate of $520 per ounce. It will be and Skouries deposits that Eldorado Gold no surprise if that rises in 2014 to between is currently advancing in Greece have the $550 and $590 an ounce, but against a potential to make that country Europe’s further six percent expected increase in gold leading gold producer by 2016. With proven production this year to between 730,000 and probable reserves of approximately 8.6 and 800,000 ounces that rise should remain million ounces of gold in Greece, Eldorado’s sustainable. The positive effect on cash flow operations are estimated to be able to generate of $272.5 million saved last year, derived more than €1.6 billion in direct taxes for the from reductions in capital expenditure, Greek State over the next 20 years. Having exploration and G&A costs will further already spent more than €78 million in Greece impress the market. since February 2012, Eldorado will invest

10%

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FREDERIKOS S.A is an engineering firm located in Kavala, North Greece.

FREDERIKOS S.A premises, covering an area of 6000 sq. meters, have the capability to produce high quality castings and demanding machine works. Field of expertise includes mining, oil, renewable energy and chemical industries.

T: 0030 2510316793 0030 2510316968 F: 00302510316967 E: info@frederikos.com www.frederikos.com

Q U A L I T Y

Services and products include: n turn key electromechanical projects n casting of various ferrous non-ferrous parts n construction and maintenance of industrial equipment n construction of different types of pumps n construction of crushers

H A S

I T S

O R I G I N

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Utsevere enim pressure. ad minim minim veniam, quis nostrud The company’s percent veniam, quis 95nostrud owned exercitation Skouries ullamco laboris goldexercitation ullamco laboris nisi ut aliquip ex eaiscommodo nisi ut aliquip ex ea commodo copper project located The Olympias flotation plant consequat.

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FREDERIKOS SA FREDERIKOS SA, was established in 1972 .

Today it is a modern unit able to provide high quality services by investing in cutting edge technologies and by having a comprehensive selection of equipment.

The company is divided in two divisions; the machine shop and the foundry.

The combination of the foundry and the machine shop gives the flexibility to fulfil difficult tasks and bring innovative ideas to life.

FREDERIKOS SA philosophy is simple; “Treat all our clients with the dignity and courtesy they expect, from small business to the largest industry”. This includes the exemplary customer service, combining lasting and effective support at all levels.

FREDERIKOS SA has managed through the years, to build strong ties with partners like HELLAS GOLD (member of the EL DORADO GOLD family), AKTOR (the leading

construction company in Greece), ROKAS renewable ( a subsidiary company of IBERDOLA, Spain’s largest energy group), KAVALA OIL (the only oil extraction company in Greece) EL.FE(one of the largest fertilizer industries) and a long list of large and small industries throughout the Greek territory and abroad.

FREDERIKOS SA is at the top of the industry and undertakes large projects. Quality is a prime importance in the engineering industry in general. FREDERIKOS S.A. highlights the quality control system by highly qualified staff performing inspections, disciplined quality control of all equipment, continuous training of staff, and the availability to quality control by our customers.

E. info@frederikos.com www.frederikos.com

BEBEMining WEEKLY| 129 |2

Mr. Roderick Trigwell | General Manager | rod@gedh.com Mr. Adrian Vuvrea | Manager | vuvrea.adrian@genfor.com

www.genfor.com

Quality Drilling Services • Reverse Circulation • Diamond Core • Grade Control • Blast Hole • Open Hole Water Bore • Geotechnical • Horizontal Mud Rotary • Rab and Air Core • Underground

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Eldorado Gold

Olympias mine: a jumbo drilling machine and employees at work

operational in 2015 and is expected to be in operation for more than 25 years in total.

In 2013 the project received its installation permit, while construction and underground development started under an experienced management team aided by around 400 employees. 2014 will see plant construction continuing, with work starting on the open pit and tailings dams.

Olympias is a replacement mixed sulphide body with 3.8 million ounces of gold, 57.7 million ounces of silver, 599,000 tonnes of lead, and 796,000 tonnes of zinc in proven and probable reserves. Olympias also contains 270,000 ounces of gold in tailings left over from earlier operations, and these are being re-processed. During 2014 the company will continue to process

“The positive effect on cash flow of $272.5 million saved last year‌ will further impress the marketâ€?

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tailings as part of a mandated environmental clean-up. At this site, Eldorado is currently cleaning up over 2.4 million tons of tailings left by a previous operator. When complete, 30 hectares of the Olympias valley will be returned to a greenfield state and given back to the local community.

The Chalkidiki Peninsula where the mine is situated is an attractive part of northern Greece, peppered with ancient sites and an

attraction for tourists. Where areas are no longer needed for mining, Eldorado focuses on rehabilitation wherever it operates, but Greece is somehow uniquely precious, so rehabilitation is a very sensitive topic for the community. The area will be re-planted with native species grown in the company’s own plant nursery – the largest in northern Greece and the company is already working with the Forestry and Natural

“At Olympias Eldorado is currently cleaning up over 2.4 million tonnes of tailings left by a previous operator”

Rehabilitation of Olympias tailings pond

132 | BE Mining

Eldorado Gold

Olympias flotation plant: employees at work

Environment Department of Aristotle University in Thessaloniki to conduct in-situ pilot planting tests 760,000 tonnes of tailings will be processed this year at a grade of 3.1 grammes per tonne (g/t). Additionally, $60 million will be spent on continuing underground development to access the ore body as well as mining equipment, infrastructure, and the decline linking Olympias to the adjacent Stratoni Valley deposit. Last year 1.4 kilometres of this 8 kilometre linking tunnel was constructed.

When completed it will pave the way to ore extraction from the underground mine at a rate of 400,000 tonnes per annum. 2013 also saw three kilometres of underground development and one kilometre of

underground rehabilitation at Olympias, as well as the announcement of a ten percent increase in measured and indicated reserves to 4.7 million ounces.

Looking to the future, Eldorado Gold as a group has ambitious growth targets, aiming to produce 1.7 million ounces of gold by 2016.

This figure represents more than double its total gold production of 721,000 ounces for 2013 and equates to 160 percent growth over a five year period. Needless to say then that its operations in Greece will play a critical role in delivering this.

For more information about Eldorado Gold visit: www.eldoradogold.com

BE Mining | 133

company in brief Eldorado Gold Corporation (Eldorado) is a gold exploration, development, mining and production company. The Company owns and operates mines worldwide. As of December 31, 2011, the Company had exploration and development projects in Turkey, China, Greece and Brazil.

The Company operates the Kisladag gold mine in Turkey; the Jinfeng, Tanjianshan and White Mountain gold mines in China, and the Vila Nova iron ore mine in Brazil. As of December 31, 2011, its development projects included the Perama Hill project in Greece, Eastern Dragon, in China,

Efemcukuru, in Turkey and the Tocantinzinho (TZ) project in Brazil, and had exploration programs in China, Turkey, Brazil, and in Nevada in the United States. On February 24, 2012, the Company acquired European Goldfields Limited.

MANAGEMENT AND DIRECTORS Norman S. Pitcher

Robert R. Gilmore CPA

President

Non-Executive Independent Chairman of the Board

Paul N. Wright Chief Executive Officer, Director

Fabiana Chubbs Chief Financial Officer

Paul J. Skayman Chief Operating Officer

Dawn L. Moss Executive Vice President Administration, Corporate Secretary

134 | be mining

Steven P. Reid Director

K. Ross Cory Independent Director

Geoffrey Arthur Handley Independent Director

Wayne D. Lenton Independent Director

eldorado gold stock watch

Office Head Office 1188 - 550 Burrard Street Bentall 5, Vancouver, BC Canada V6C 2B5 Tel: +1-604-6874018 Fax: +1-604-6874026 Email: info@eldoradogold.com

Exchange TSE

Shares 716.22M

Symbol ELD

Market Cap. 5,686.76M

Currency CAD

Div/yield 0.01/0.25

www.eldoradogold.com

products • Gold • Zinc • Lead

• Silver • Iron ore

Investment highlights

operating territories

Over the past five years we have doubled our production, materially increased our resources and reserves and increased our share price on an annualized basis by 22%. We have maintained cash operating costs between US$200 and $500/oz.

• Turkey • China • Greece

We aim to continue our growth over the next four years as we more than double our current annual gold production. In 2016, we expect to produce 1.5 million ounces of gold. That equates to 125% growth over five years. In the same period, we anticipate our cash operating costs will decrease. By 2016, we see our cash costs (net of by-products) declining to US $300-$350/oz.

• Brazil • Romania

Key stats and ratios

Q3 (Sep ‘13) 2012 Net profit margin 27.43% 27.72% Operating margin 43.80% 39.58% EBITD margin - 51.24% Return on average assets 3.94% 5.35% Return on average equity 5.24% 6.65%

Financial information from Google Finance and Thomson Reuters

be mining | 135

Rio Tinto Kennecott

Creating a community from copper How Rio Tinto Kennecott has utilised the vast wealth of the Bingham Canyon Mine to create a thriving, sustainable community

written by: Will Daynes research by: Jeff Abbott & Robert Hodgson

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Rio Tinto Kennecott

M

easuring two and threequarter miles across and with a depth of approximately threequarters of mile, the Bingham Canyon Mine was for many years the largest man-made excavation on Earth. It is from here, southwest of Salt Lake City, Utah, in the Oquirrh Mountains that Rio Tinto Kennecott sources almost a quarter of the total copper needs of the United States.

It was in 1903 that the then Utah Copper Company was incorporated, tasked with overseeing the development of the mine itself, and it is fair to say that its success in mining the huge, low-grade porphyry copper type ore body revolutionised the copper industry, and set the pattern for the large open-pit porphyry copper mines that today dominate the copper industry worldwide. Expansion of the mine took off rapidly with the region quickly becoming a hub for mining activity.

The Bingham Canyon Mine has been a fixture of Salt Lake Valley for more than 111 years and during that time has produced some 19 million tonnes of copper, more than any other mine. Still among the very largest open-pit operations on the planet, Kennecott continues to look at extending the life of the mine and their capabilities.

“It stands to reason that we are incredibly proud of our history and of being a feature of Salt Lake Valley for well over a century,” states Rohan McGowan-Jackson, Vice President, Resource Development and Communities.

“In that time we have firmly established ourselves as the largest private economic driver in Utah, generating more production, exports, income and employment than any

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• Mining • Mining Infrastructure • Aggregate Processing • Bridge Construction • Blasting (Rock) • Earthwork • Equipment Installation • Excavation (Rock) • Pile Installation • Roadway and Highway Construction • Soil-Cement Construction • Piping (In Ground & mechanical) • Walls (MSE & Noise Abatement) • Structural Concrete Tel: 801-977-8012 | www.amesconstruction.com

AMES CONSTRUCTION Founded in 1962, Ames Construction is a full-service heavy civil and industrial General Contractor. Self-performing a majority of all the work contracted, Ames serves public and private clients throughout North America in core markets including: Energy, Mining, Transportation, Railroads, Water and Wastewater, Residential and Commercial.

Mining is a particularly vital market for Ames Construction. Ames has experience in mine Development, Infrastructure, Leach Pads, Tailings Dams, Contract Mining and Reclamation. Ames has also had an over 30-year relationship with Rio Tinto at the Kennecott Bingham Mine. Ames continues to construct the North Tailings Dam, having done so for the past 14 years.

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Ames understands that it supports Kennecott by providing safe, on-time and on-budget project completion. That’s why Ames has proactive safety programs and team of over 20 safety and health professionals to provide worksites with safety statistics better than the national average. It is also why Ames is focused on listening and working with clients to respond their needs and deliver high-quality projects that stay on schedule.

With proven self-performance in a wide array of projects, and detailed attention to our clients needs, Ames Construction has what it takes to ensure project success. www.amesconstruction.com

Rio Tinto Kennecott

other company. Today we have approximately so through the implementation of self2,500 employees, while the number of imposed environmental targets that assist indirect jobs created by the mine’s operations it in achieving good management of natural has been estimated at some 14,000.” resources and sustainable development.

Given its significance in the region it The concept of sustainable development is appropriate that Rio Tinto Kennecott also extends to the company’s work with holds a steadfast belief in being not only local communities. “Since Rio Tinto acquired Kennecott in 1989,” the steward of the land on McGowan-Jackson continues, which it operates, but also “it has invested several billion being a strong community partner. Where possible the dollars into modernising the company has endeavoured core business and allowing to prevent or minimise any it to achieve the growth it Estimated number of potentially harmful effects has in recent years. While indirect jobs created by the mine that its activities may have this relates specifically to on the environment. It does the internal growth of the

14,000

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“We have firmly established ourselves as the largest private economic driver in Utah�

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Rio Tinto Kennecott

business it has allowed us “Daybreak is nothing short to extend the licence of the of an outstanding positive operation and that in turn story of post-mining land use,” McGowan-Jackson enthuses. results in creating even “What was previously a 4,000 more well paid jobs and acre area of land used to maintaining the flow-on from the taxes we pay.” support mining activity has According to figures since received the necessary Rio Tinto Kennecott’s investment to clean it up and available to the end of total contribution to 2011, Rio Tinto Kennecott’s transform it into a modern surrounding communities total contribution to the master-planned community, as of 2011 communities that exist built upon the principles around the Bingham Canyon conceived by Envision Utah, Mine totalled $1.2 billion. This massive figure a public-private partnership that promotes has helped in all manner of ways, one of the quality, sustainable growth.” best examples of which can be seen in the Virtually the entire Daybreak Community existence of the Daybreak Community. is built around the concept of sustainability,

$1.2

billion

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PRECIOUS RESOURCE DISCOVERED Click here to visit our dedicated homepage for the mining community

www.bus-ex.com/mining

146 | BE Mining

with all houses carrying a level three energy efficiency certificate and contributing towards a 20-30 percent reduction in emissions, and water being recycled at every possible turn.

“What we have also learnt from the development of the Daybreak Community is the way you can have a material impact on the lives of people just through the way you design infrastructure,” McGowan-Jackson says. “The way you connect people’s homes to where they work has a big impact on the way they commute and this in turn has an impact on the levels of emissions being produced within a community.”

A study conducted by the University of Utah on the Daybreak Elementary School

Rio Tinto Kennecott

reaffirmed McGowan-Jackson’s comments when it highlighted that among the fifth graders attending the school, 88 percent walked or rode bikes to class each day.

Meanwhile studies of similar schools outside of the community brought back figures that showed this figure falling to as low as 17 percent, with the vast majority being

transported by bus or being dropped off by car. When you take these results and multiply them across the entire Daybreak Community you start to get a better picture of the positive social and environmental impact being made.

This commitment to planning and long-term investment has Kennecott well-positioned for the future. “Without doubt we have a fantastic

“The way you connect people’s homes to where they work has a big impact on the way they commute” BE Mining | 147

Rio Tinto Kennecott

“we have a fantastic foundation to grow and extend the business” foundation to continue to grow and extend the business,” McGowan-Jackson says. “We have fantastic, well maintained and invested physical assets on site, and the mineral asset which we are blessed to be working with here could potentially still possess as much metal as we have taken out in the last 110 years, so there is a great deal to be positive about.”

Even when taking these positives into consideration, McGowan-Jackson is clear about what the company’s strategy must be going forward. “Our task now is to achieve significant productivity improvements throughout our business,” he concludes. “We are already working hard to achieve this by focusing on lean practices, by working on achieving greater integration within our value chain and by motivating our frontline employees to find creative solutions to be more efficient, something that they continue to showcase by coming together and facing down significant challenges before bringing them to resolution.”

For more information about Rio Tinto Kennecott visit: www.kennecott.com

BE Mining | 149

company in brief At Rio Tinto Kennecott, we mine essential elements that make modern living possible. From medicine, food and shampoo, to cell phones, computers, CAT scans and hybrid electric cars, nearly everything you use today relies on materials that we produce.

Our mine has been a fixture in the Salt Lake Valley for more than 109 years. You may be surprised to know that we are the largest private economic driver in Utah. No other private sector operation has generated more production, exports, income and employment than Kennecott. As such, we

take our responsibility to be a strong community partner seriously, through strategic partnerships, foundation contributions and charitable giving.

MANAGEMENT AND DIRECTORS Samuel Maurice Cossart Walsh

Harry Kenyon-Slaney

Chief Executive Officer, Executive Director

Chief Executive - Energy

Christopher James Lynch

Hugo Bague

Chief Financial Officer, Executive Director

Group Executive Organisational Resources

Jacynthe Cote Chief Executive of Rio Tinto Alcan

Preston Chiaro

Alan Davies

Group Executive - Technology and Innovation

Chief Executive - Diamonds & Minerals

Andrew Harding Chief Executive - Iron Ore

Jean-Sebastien Jacques Chief Executive - Copper

150 | BE Mining

Greg Lilleyman Group Executive - Technology & Innovation (T&I)

Rio Tinto Kennecott stock watch

Office Regional office 4700 Daybreak Parkway South Jordan, UT 84095 Tel: 801.204.2000 Email: info-kennecott@riotinto.com www.kennecott.com

Exchange NYSE

Shares 1,848.62M

Symbol rio

Market Cap. 110,565.97M

Currency USD

Div/yield 0.85/2.95

group financial highlights • Underlying earnings of $10.2 billion were up ten per cent on 2012.

•O perating cash cost improvements of $2.3 billion exceeded the 2013 target of $2.0 billion.

• Exploration and evaluation savings delivered $1 billion, against the 2013 target of $750 million.

•C ash flows from operations of $20.1 billion were up 22 per cent and capital expenditure was down 26 per cent to $12.9 billion.

• 1 5 per cent increase in full year dividend to 192 cents per share reflects the sustainable growth of the business.

kennecott products • Copper • Molybdenum

• Precious Metals • Sulfuric acid

group operating territories • Worldwide

group Key stats and ratios

Q4 (Dec ‘13) 2013 Net profit margin -2.27% 2.11% Operating margin 5.47% 14.10% EBITD margin - 36.95% Return on average assets -1.06% 0.94% Return on average equity 8.51% 7.93%

Financial information from Google Finance and Thomson Reuters

BE Mining | 151

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Anglo American: Los Bronces

Champions of Chile’s copper The Los Bronces mine in the Chilean Andes is continuing along a path to becoming the fifth largest copper mine in the world and one with several decades of productivity still ahead of it

written by: Will Daynes research by: Candice Nice & Robert Hodgson

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A

pproximately 65 kilometres away from Santiago, in the Metropolitan Region, and 3,500 metres above sea level, one will find the Los Bronces division of Anglo American. Managed by a team of executives, the head of which is General Manager, Christian Thiele, the Los Bronces division boasts a workforce of more than 1,700 people, including company employees and operation and project contractors. Collectively they are responsible for implementing the Los Bronces Development Project, the objective of which is to boost the mine’s production capacity.

An open-cut copper and molybdenum mine, Los Bronces produced 221,762 tonnes of fine copper in 2011, including high-purity cathodes and copper concentrate, as well as 948 tonnes of molybdenum concentrate. The ore extracted from the mine is crushed and transported down a 56 kilometre long ore slurry pipeline to the Las Tórtolas flotation plant, where copper and molybdenum concentrates are produced.

In November 2007 the board approved an expansion plan aimed at increasing the mine’s annual copper output by some 278,000 tonnes in its first three years and by around 200,000 in the first ten years. Construction of the project started up in 2007 and includes the introduction of new grinding facilities in the Confluencia sector, a flotation plant at Las Tórtolas in Colina, and new piping and pumping stations. Molybdenum output is expected to rise to some 5,400 tonnes annually.

With a total start up capex of $2.8 billion, the project produced its first concentrate in November 2011.

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Confluencia from above

Anglo American: Los Bronces

Anglo American: Los Bronces An environmental impact Production at Los Bronces study for the project, carried is fairly traditional, being as out in 2006, was also given it is an open-pit mine where formal approval by Chile’s ore is transported by truck National Environmental to a bank of two crushers Agency (CONAMA) in 2007. and later by conveyer to The study itself considered grinding facilities, for a the use of areas intervened total processing capacity of to date and will therefore not 148,000 tonnes per day. The affect other environmental mine’s SAG mill uses modern assets. Most of the additional gearless drive technology, water will come from Inspecting the copper sheets where the axis of the mill greater recirculation from is mounted with induction the Las Tórtolas tailings dam to the mine. windings and becomes the motor drive rotor, The quantity of fresh water used per tonne while the grinders bristle with sensors and of copper produced will therefore drop by circuits to control speed, flow and lubrication. around 40 percent.

At its peak of output, Los Bronces will

ENAEX Working as a Team With a history of 92 years operating in the market and more than 25 years supplying and providing services to Anglo American, Enaex is the leader of integral rock fragmentation services and ammonium nitrate production in Chile. The company is also present in more than 40 countries, supplying explosives and ammonium nitrate. Thanks to the teamwork between Anglo American and Enaex, various successful initiatives have been carried out in the Los Bronces division, such as Hidrex®, a variable density product that is specially designed to be used in controlled blasting, and wall control. The Milodón®, explosives mixer truck will also soon start operating in the same company division. This truck is the largest of its

kind in the world, with capacity for 30 tons in situ. Milodón® represents significant benefits in terms of both productivity and safety.

On the other hand, the Air Blast Monitoring service implemented in the El Soldado division also stands out, as it allows Anglo American to measure the impact that air blasts caused during mining operations may have in the community, and then search for mitigation strategies. In terms of innovation and new products, Energex® high-power explosive should be highlighted, with its fragmentation power that lowers the ore “work index” aiming to reduce electricity consumption in crushing and grinding, improving the processing capacity of the crusher. www.enaex.com

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SPECIALISED SERVICES EFFECTIVE CONTRACTOR Operation and Maintenance in Mining facilities • Operational support in harvesting cathodes • Inspection and maintenance of anodes • Maintenance of stainless steel plates • Painting of structures, facilities and equipment • Handling of cathodes in yards • Grouping of packages and strapping • Preparation and minor repairs of segments for hyperbaric filters • Operation of Laboratory samples

Industrial Cleaning in Plants • Pressure water washing • Industrial Vacuum cleaning • Material Recovery Other Services • Management and Operation of Warehouses • Port logistics • Maintenance of equipment • Administration of boats

T: +(56 32) 255 6300 E: mineria@report.cl | www.report.cl

PRECIOUS RESOURCE DISCOVERED Click here to visit our dedicated homepage for the mining community

www.bus-ex.com/mining

158 | BE Mining

become the fifth largest copper mine in the world. Based on the latest expansions, despite having mined there for the best part of 150 years, Anglo American estimates the mine will be productive for roughly a further 30 years whether or not further deposits are discovered.

Los Bronces is just one of five operations Anglo American operates in four regions of the country with shareholding in a sixth, all managed from a head office in Santiago.

In fact, Anglo American is one of the most important copper producers in Chile.

Being such an important part of the Chilean economy, it should come as little surprise that Anglo American recognises and honours its social responsibilities. In addition to their individual corporate initiatives each division of the group is responsible for implementing their

Anglo American: Los Bronces

Routine cleandown of the exploration access tunnel

own community engagement plans, which are based on Anglo American’s Good Citizenship Principles and the results of its socio-economic assessment toolbox (SEAT) process.

In the case of the Los Bronces division its community engagement plans are focused on four work areas, these being education, health, the environment and social development, with the districts directly benefiting from its work being Colina, Lo Barnechea and Til-Til

and the town of Riecillos in the district of Los Andes. In 2009 alone, more than $2.3 million was allocated towards these community engagement projects, 85 percent of which was directed specifically towards education and academic infrastructure programmes. In addition to the contributions made to these programmes, the division donated $32,516 to hold local celebrations and processes and support the work of the fire department.

“Los Bronces produced 221,762 tonnes of fine copper in 2011, including high-purity cathodes and copper concentrate�

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General view of the open pit at Los Bronces

Anglo American: Los Bronces

1,700+ Size of Anglo American’s Los Bronces workforce In the year ahead Anglo American will also be utilising and leveraging the knowledge and experience gained at Los Bronces to develop a significant high quality copper prospect at Los Sulfatos, six kilometres south of its current activities. Based on 22,000 metres of drilling, the current Inferred Mineral Resources are estimated at 1.2 billion tonnes at 1.46 percent copper and 0.02 percent molybdenum, containing an estimated 17.5 million tonnes of copper. The deposit is open in various directions and in terms of overall potential for the Los Sulfatos exploration target, the tonnage is expected to be between four and five billion tonnes at grades of between 0.8 percent and 1.0 percent copper.

Located within and under high mountain ridges at altitudes between 4,000 and 4,500 metres, the Los Sulfatos prospect poses unique environmental challenges, however, considering Anglo American’s track record within Chile and similar sensitive geographic regions the smart money is on Los Sulfatos emerging into a development of equal importance to that of Los Bronces.

For more information about Anglo American: Los Bronces visit: www.angloamerican.com

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company in brief Anglo American plc (Anglo American) is a mining company. The Company’s portfolio include bulk commodities, which consists of iron and manganese, metallurgical coal and thermal; base metals, which consists of copper, nickel and niobium; precious metals and minerals, which include platinum and diamonds and other mining and industrial. The Company operates in Africa, Brazil, Chile, North and South America, Australia, China, India, Japan, other Asia and Europe. In November 2013, Anglo American PLC announced the completion of its sale of the Amapa iron ore operation in Brazil (Amapa) to

Zamin Ferrous Ltd. In January 2014, Anglo American completed the acquisition of Mineral Technology Exploration Production SA (MINTEP) and Societe Miniere d’Alumine SA.

MANAGEMENT AND DIRECTORS Mark Cutifani

Godfrey Gregory Gomwe

Chief Executive Officer, Director

CEO - Thermal Coal

Rene Medori

Christopher Ivan Griffith

Finance Director, Executive Director

CEO of Anglo American Platinum Limited

Paulo Castellari-Porchia

Norman Bloe Mbazima

Chief Executive Officer - Iron Ore, Brazil

CEO - Kumba Iron Ore

Hennie Faul

Philippe J. C. Mellier

Chief Executive Officer - Copper Business

Chief Executive Officer of De Beers Group

Ruben Fernandes CEO - Nickel, Niobium and Phosphates

Seamus G. French Chief Executive Officer - Metallurgical Coal

162 | BE Mining

anglo american stock watch

Office Head office 20 Carlton House Terrace LONDON, ENG SW1Y 5AN Tel: +44 (0) 20 7968 8888 www.angloamerican.com

Exchange lon

Shares 1,394.15M

Symbol aal

Market Cap. 21,930.00M

Currency gbx

Div/yield 32.83/3.40

highlights • Kumba Iron Ore – safety stoppages and pit constraints at Sishen, partially offset by strong performance at Kolomela • Metallurgical Coal – record production, cost reductions and improved product mix more than offset by 24% fall in price • Copper – record production, led by Los Bronces’ fully ramped up Confluencia plant and higher grades and recoveries at Collahuasi, largely offset by lower realised prices • Platinum – higher sales volumes supported by rand depreciation, partially offset by input cost increases and lower prices across most metals • Diamonds – increased production reflecting improved asset performance and customer demand, with higher realised prices

products • Iron • Manganese • Metallurgical Coal • Thermal Coal • Copper

• Nickel • Niobium • Platinum • Diamonds

operating territories • Africa • North America • South America • Australia

• Asia • Europe

Key stats and ratios

Q2 (Jun ‘13) 2012 Net profit margin 8.00% -1.97% Operating margin 15.24% 0.45% EBITD margin - 27.43% Return on average assets 3.03% -0.74% Return on average equity 2.24% -3.83%

Financial information from Google Finance and Thomson Reuters

BE Mining | 163

High altitu

Extracting minerals in t of the high Andes is jus world’s fourth lar

written by: J research by: Candice Ni

164 | BE Mining

Collahuasi Mine

ude mining

the rarefied atmosphere st one challenge for the rgest copper mine

John O’Hanlon ice and Robert Hodgson

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Collahuasi Mine

D

oña Inés de Collahuasi, a Chilean mining company, operates the world’s fourth largest copper mine. The operation comprises two principal porphyry copper deposits, Ujina and Rosario, as well as a smaller deposit called Huinquintipa that contains only sulphide mineralisation and copper oxides. It is a joint venture owned by two mining majors, Swiss-based Xstrata and London-based Anglo American, with 44 percent of the shares apiece. The remaining equity is in the hands of a group of Japanese interests led by Mitsui & Co Ltd, one of Japan’s largest trading companies that has under its umbrella both Nippon Mining & Metals and Mitsui Mining & Smelting. Not surprisingly, then, Japan is an important taker for the mine’s products, mainly copper concentrate of which 245,288 tonnes were produced in 2012, with a smaller amount of copper in the form of 99.99 percent pure copper cathode, of which 36,808 tonnes were sold.

The mine is located in the Andean plateau 4,400 metres above sea level in the Tarapacá Region, a region in the north of Chile that is close to the border with Bolivia. It is a poor but fertile region, with some of the most significant vineyards in Chile and a very long history of mineral extraction, best known in the past for its production of saltpetre.

Copper has been exploited since 1880 when the Tarapacá systems of high-grade copper and silver veins began e attracting interest.

Fast forward to 1991, when a combination of satellite, aerial photography and onsite studies, along with drilling activities, resulted in the discovery of the Ujina deposit. From the

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Collahuasi Mine concentrator plant in Ujina, a 203 kilometre slurry pipeline leads down to the filter plant and loading facilities in Punta Patache, 65 kilometres south of Iquique, Tarapacá’s capital.

The molybdenum plant is also located here as well as the port terminal from which processed products are shipped to markets around the world.

In all Anglo American produced 282,096 tonnes of copper in 2012, accounting for 5.1 percent of Chile’s total output over that year. These figures were down on the previous year’s production, as reported in the article we published in 2013,

however Anglo American announced last October that in the third-quarter of 2013 copper production went up by nearly a third compared to the same period in 2012, reaching a quarterly record mainly thanks to improved performance at the Collahuasi mine. Production of copper, the second-most important contributor to Anglo’s balance sheet after iron ore, rose 32 percent to 207,300 tonnes in the three months to September, beating analysts’ expectations – and Collahuasi more than doubled output to 63,600 tonnes in those three months. However Anglo American’s plans for the future of the

ICV ICV, Ingeniería Civil Vicente S.A., is present in the most important mining projects in Chile.

ICV, a leader in the civil engineering, construction and mining sectors, has based its strength on adding value for its clients, employees and the communities where it has operations. With its headquarters in Santiago and many offices in the rest of the country, it is able to respond successfully to the impressive expansion of large-scale mining in Chile.

With a track record that goes back 50 years, ICV has established a consolidated position as an important player in the mining industry, providing integral services for large-scale mining companies and, particularly, Compañía Minera Doña Inés de Collahuasi where it hopes to

contribute - with its modern fleet of machinery to the initiative to reach an output of more than one million tonnes of fine copper by 2017.

ICV is present in the most important mining projects in Chile thanks to its policy of constantly renewing equipment and machinery with annual investments of over US$70 million, transforming it into the company with the most modern and competitive mechanized fleet in its field.

The key factor in the consolidation of the company’s prestige has, however, undoubtedly been its constant focus on recruiting and retaining the best human team. www.icv.cl

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Strategy Consulting and sustainability management of hydric resources, Collahuasi mine

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Collahuasi Mine mine are far more ambitious.

An ongoing pre-feasibility ARCADIS Chile’s service strategy based model intends to study for the company’s establish a close relationship with our corporate clients, proposed $6.5 million Phase giving them access to our full complement of engineering III expansion project will pave and consulting solutions at the lowest possible costs. the way towards a total copper A single ARCADIS Chile representative helps our production target of more clients become acquainted with, evaluate, and develop comprehensive solutions placed at their disposal by than a million tonnes per ARCADIS Chile. annum (tpa) by 2017, which Based on this model, our Business Managers — organized would make it the biggest by economic sectors — collect information regarding our mining project in Chile. corporate clients’ specific contexts, needs, expectations, The Chilean, Japanese and and priorities of every project. Then, ARCADIS Chile’s Chinese markets together Project Managers design, propose, and implement account for around 80 percent appropriate integral solutions and guarantee the clients’ satisfaction through the benefits of our committed service. of Collahuasi’s exports of www.arcadis.cl copper concentrate, while over 70 percent of its copper cathodes go to the Chinese market. In the case of the molybdenum, a by-product of which 1,953 tonnes were produced in 2011, 99 percent is sold within Chile and the remaining one percent exported to Thailand. In 2012 China accounted for 31 percent of Collahuasi’s copper concentrate sales, Japanese and Chilean offtakers for 24 percent each, India for 18 percent, while three percent went to South Korea.

Sustainable development is a crucial pillar of Collahuasi’s business strategy, guiding its approach to its production process and

ARCADIS Chile

4,400 metres Altitude of the Collahuasi mine

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relations with its surroundings. In 2012, the company implemented important measures related to sustainability. A key initiative was the creation of a Vice-Presidency for Sustainability to bring together all the areas of the company’s activities that are related to sustainable development and to represent a common corporate vision of the concept of sustainability, taking into account aspects related to the exploitation of natural resources, the cultural and social diversity of the area where the company has its operations and economic aspects of its operations.

2012 was also a crucial year as regards community relations. In this context, the inclusion of environmental performance under the new Vice-Presidency for Sustainability enabled the company to establish even closer relations with communities, particularly as regards providing information, understanding their concerns and achieving reciprocal benefits. This approach, the company believes, has empowered local communities and boosted their engagement in the activities of the mine and the logistics corridor used by vehicles related to its operations. The communities which it has identified as coming under direct influence are Cáñamo, Chanavayita, Caramucho, Huatacondo, Pica and Matilla. In 2012, the company’s total social investment

reached $15.2 million, up by around ten percent on the previous year. Most of this amount was devoted to education, the environment and community social development.

Education is the way out of the cycle of deprivation in these communities. In its relations with the Tarapacá Region, and as part of its promise to contribute to educational

“Education is the way out of the cycle of deprivation in these communities” 172 | BE Mining

Collahuasi Mine

improvement, the company continues to work through the Collahuasi Educational Foundation.

In 2012, for the fourth consecutive year, the Foundation implemented its Educational Improvement Programme involving 18 state primary schools in seven municipal districts over a period of four years. In June 2013, in order to ensure the Programme’s ongoing development, the company signed a new agreement with the municipal governments of Iquique, Alto Hospicio, Pica, Huara, Camiña and Pozo Almonte for the period 20132016 under which educational practices of excellence will be implemented and systematic work will take place with the communities of the schools in the Programme.

Healthcare is another area in which Collahuasi is involved, particularly in the case of the more vulnerable members of the community.

Currently the company is participating in the improvement of the infrastructure of Tarapacá’s health centres. To this end, it signed an agreement with the Regional Government to provide financial support for the design phase of state-funded projects in the Iquique and Alto Hospicio Hospitals and primary and family health centres around the region.

For more information about Collahuasi Mine visit: www.collahuasi.cl

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company in brief Compañía Minera Doña Inés de Collahuasi SCM produces copper concentrate, copper cathodes and molybdenum concentrate and is the world’s third largest copper deposit. The company’s operations are based on the open-pit exploitation of three mineral deposits - Rosario, Ujina and Huinquintipa - located in the Pica municipal district of northern Chile’s Tarapacá Region. Collahuasi operates solely in Chile and does not have joint ventures with other local or international mining companies.

The company’s industrial installations and deposits are referred to as the “Cordillera Area”. From the concentrator plant in Ujina in

this Area, a 203-kilometre slurry pipeline transports copper concentrate down to the filter plant and the company’s port facilities in Punta Patache in the Iquique municipal district.

This latter area, referred to as the “Port Area”, contains the molybdenum plant as well as the concentrate filter plant and the port terminal from which the processed products are shipped to international markets.

MANAGEMENT AND DIRECTORS Jorge Gómez

Tomás Martínez

Executive Presidency

Vice-President for Administration & Services

Marcos Márquez

Dalibor Dragicevic

Vice-President Mine

Vice-President Processes

Fernando Hernández

Michael Farrelly

Vice-President for Human Resources

Vice-President for Finance and Sales

Francisco Carvajal

Mauricio Weldt

Executive Vice-President for Operations

Vice-President for Projects

Mario Quiñones

Hans Sandoval

Vice-President for Development

Manager for Occupational Health & Safety

Juan Carlos Palma I.

Roberto Quijada

Vice-President for Sustainability

Manager for Strategic Planning

174 | BE Mining

Collahuasi Mine location

Output and Sales

Compañía Minera Doña Inés de Collahuasi SCM is located 4,400 metres above sea level in the Andean plateau of the Tarapacá Region of the far north of Chile.

Collahuasi is an extractive mining company and does not, therefore, market finished products for direct consumption. It produces principally copper concentrate, a semi-processed raw material that is shipped to customers for the final stage of its processing.

In 2012, the company produced 282,096 tonnes of copper, accounting for 5.1% of Chile’s total output. Collahuasi’s output comprised 245,288 tonnes of copper content in the form of concentrate and 36,808 tonnes in the form of cathodes. In addition, it produced 1,953 tonnes of molybdenum.

The Chinese, Japanese and Chilean markets together accounted for around 80% of Collahuasi’s sales of copper concentrate while, in the case of copper cathodes, the Chinese market accounted for 52% of sales, followed by the United States with 36%. In the case of the molybdenum produced by Collahuasi, 99% was sold within Chile and the remaining 1% was exported to South Korea.

Cordillera Area This area’s processing installations and its Rosario, Ujina and Huinquintipa deposits are located in the municipal district of Pica, 185 km southeast of the city of Iquique at an average altitude of 4,400 metres above sea level.

Port Area From the concentrator plant in Ujina, a 203-km slurry pipeline leads down to the filter plant and loading facilities in Punta Patache, 65 km south of Iquique. The molybdenum plant is also located here as well as the port terminal from which processed products are shipped to markets around the world.

The company’s head office is in Iquique, capital of the Tarapacá Region, and this is where the Executive Presidency is based. In addition, the company has corporate offices in the municipal district of Pica in the Tarapacá Region and in Chile’s capital city, Santiago.

Office Offices in Iquique Baquedano 902, Iquique, Región de Tarapacá, Chile Tel: (56 57) 417777 E-mail: contacto@collahuasi.cl www.collahuasi.cl

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Diamond in the rough Through the continued success of its Letšeng mine in Lesotho, and the development of the Ghaghoo mine in Botswana, Gem Diamonds remains one of leading global producers of high value and rare diamonds

written by: Will Daynes research by: Jeff Abbott

176 | BE Mining

Gem Diamonds

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Gem Diamonds

F

ounded by current CEO, Clifford Elphick, in July 2005, Gem Diamonds has made significant strides in the years that followed to become a leading global producer of high value diamonds. The company is the majority owner of the well-known Letšeng mine in Lesotho and is also in the process of developing its 100 percent owned Ghaghoo mine in Botswana.

As of 1 January, 2013, the company recorded total gross resources, including reserves, of 25.8 million carats containing in 409.8 million tonnes, with an average diamond price of US$625 per carats. Reserves meanwhile totalled 3.5 million carats contained in 86.4 million tonnes, with an average diamond price of US$831 per carat.

The Letšeng mine is famous for its production of large, top colour, white diamonds, making it the highest average dollar per carat kimberlite diamond mine on the plant. Operated by De Beers from 1977 until 1982, the mine restarted operations in 2004 before being acquired

by Gem Diamonds in late 2006 at a cost of US$118.5 million. In the five years from 2006 until 2011 annual production under Gem Diamonds would go on to rise from 55,000 carats to 112,367 carats.

Letšeng processes ore from two kimberlite pipes, Main and Satellite, both bearing extremely low grade ore, under two carats per hundred tonnes, as well as from existing stockpiles. The mine can currently process around seven million tonnes of ore a year, producing about 100,000 carats.

Since 2006, the mine has been responsible

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Gem Diamonds for producing four of the atlas copco twenty largest white gem Atlas Copco has a long history in the Southern African quality diamonds ever region and is today a leading player in numerous industries. discovered. These include Our products and services are designed and manufactured the Letšeng Star, a 550 carat to assist our customers in achieving maximum productivity. white diamond recovered Our vision is to become and remain “First in Mind—First from the mine in August in Choice®” with all our customers and we believe that our combination of product excellence and dedicated staff will 2011, which remains among assist in achieving our vision. the top 15 largest white South Africa, Namibia, Zimbabwe, Botswana and diamonds on record. This Mozambique together make up the Southern African region. discovery was preceded by The ‘borderless’ approach to business activities in the that of the 478 carat Light region best suits the needs and requirements of Atlas of Letšeng white diamond in Copco’s customers in the region.

2008, the 603 carat Lesotho www.atlascopco.com Promise white diamond in 2006, and the 493 carat Letšeng Legacy white diamond in 2007.

More recently the company again made the headlines with the discovery of a rare 12.47 carat blue diamond from the Letšeng mine. With blue diamonds being among the most sought after of the coloured diamonds, this particular diamond subsequently went on to sell for $7.5 million, a record-breaking price for the Letšeng mine, at auction in Antwerp.

In January 2012, Gem Diamonds commenced with Project Kholo, the name given to its plan to expand the Letšeng

$7.5 million Record price at auction for a rare 12.47 carat blue diamond found at Letšeng

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Matekane Mining “Yes we can”

We have assembled the best and latest mining machinery from leading manufacturers, to supply blasting and haulage services for mining in southern Africa. Our fleet ranges from face shovels excavators, to off-highway dump trucks, graders, rock breakers, drill rigs, bulldozers, front-end loaders, water trucks and vibrating rollers.

Matekane Mining has taken delivery of machinery including: • 40, 50 and 100 ton excavators • 3, 4, 5, and 12 cubic meter wheel loaders • 25, 30, and 40 ton articulated trucks (ATs) • 55 and 95 ton rigid dump trucks • A wide range of track-type-tractors • Support equipment

MATEKANE

MINING

Matekane Mining has navigated the Maluti Mountains to deliver the best plant for opencast mining at 3 200 m

above sea level, and we will continue to deploy project managers that ensure our continued excellence anywhere in the world. Open pit mines are operated when deposits of minerals are found near the surface or along kimberlite pipes. Matekane Mining, a subsidiary of Matekane group of Companies (MGC) has expanded its mining division to Mozambique in partnership with an experienced Indian company, RST Mining and Logistics. The partnership is doing very well with experiences from both companies.

Tel: +266 22 216 200/52 216 200 | Fax: +266 22 317 733 | Email: info@matekanegroup.co.ls | www.matekanegroup.co.ls

Gem Diamonds mine. With a brief to ramp up the mine to full production by July 2014, Project Kholo consists of a number of work streams, all directed towards increasing the mine’s revenues, including increasing ore throughput, improving diamond liberation, reducing diamond damage and increasing the amount of production available for cutting and polishing.

Heading north out of Lesotho into Botswana we find the Ghaghoo mine with its Gope 25 kimberlite pipe. Located some 45 kilometres within the eastern border of the Central Kalahari Game Reserve, Gem Diamonds is having to operate within the

MATEKANE MINING When MMIC entered the Mining scene in 2004, the equipment was sourced from Barloworld Equipment Lesotho division.

The contract scope was, to supply equipment and staff to the highest diamond mine in the Southern hemisphere. Visiting the largest operation in Lesotho requires a journey through steep winding roads higher than 3 200m above sea level. On arrival, the view is majestic, with sweeping vistas of snow capped peaks in all directions bearing testimony to this remarkable and challenging geological find, first discovered in 1957. With the harmonious relationship MMIC grew with the mine trough difficult growth phase. This contributed to the growth of the Matekane Mining and Investment Company (MMIC) fleet of equipment. Today MMIC operates one of the largest fleets of bulk earth moving

equipment in Lesotho.

The fleet ranges from excavators, to off-highway dump trucks, graders, rock breakers, drill rigs, bulldozers, front-end loaders, water trucks and vibrating rollers. The machines are operating in temperatures ranging from -20 to + 20 degrees Celsius.The teams selected to manage the operations are equipped to perform under these difficult conditions. The operation produces in excess or 20 million to n per year. The coal operation in Mozambique started in April 2012 and is producing 2 million bank cubic meters per month. This will grow to a 10 million bank cubic meters per year operation.

MATEKANE

MINING

E. info@matekanegroup.co.ls www.matekanegroup.co.ls

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highest of environmental standards in order to ensure minimal environmental impact from the mine’s development.

In early 2010, three independent experts conducted an updated resource statement for Ghaghoo on behalf of the company.

An increase in grade from new statistical modelling, and volume through the re-interpretation of drilling results, led to an upgrading in Ghaghoo’s total carat resource to 20.5 million carats, at an increased average US$162 per carat, with a total in situ value of US$3.3 billion. It was also during valuation work that two blue diamonds were also recovered from samples.

Upon consideration of its findings the company presented the Botswana government with an updated study of the mine, including the option for an underground mine. With this proposal agreed, construction of phase one of the Ghaghoo underground mine began in 2011 following Gem Diamonds’ board’s approval of a $US85 million capital budget.

With an estimated production capacity of 720,000 tonnes per annum, the objective of phase one will be to confirm the grade, diamond prices and the recovery processes, including the use of autogenous milling, which is expected to increase diamond liberation.

Construction of the processing plant will be

commissioned early in 2014 and will be ready for the second half of 2014 ore delivery date.

The Gem Diamonds group is committed to the principles and practices of sustainable development, believing that adopting an active and engaged approach to sustainability is key to its ability to meet its responsibilities

“Since 2006, the Letšeng mine has been responsible for producing four of the twenty largest white gem quality diamonds ever discovered” 184 | BE Mining

Gem Diamonds

to its stakeholders, shareholders, employees and the communities within which it operates. For both ethical and pragmatic business reasons, the company is committed to the strict maintenance of internationally recognised standards of health and safety, environmental, social, and economic and business management.

Moving forward the company has a very clear and consistent growth strategy based on the successful expansion of the Letšeng mine and the development of the Ghaghoo mine in Botswana. Meanwhile it will continue to seek to maximise revenue and margin from its production of rough diamonds by pursuing

diamond cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply and demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market which is supplied by Gem Diamonds, this strategy positions the company strongly to generate attractive returns for shareholders well into the future.

For more information about Gem Diamonds visit: www.gemdiamonds.com

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company in brief Gem Diamonds Limited is a global diamond producer. The Company focuses primarily on extracting diamonds through the mining of its mineral resources at its operating assets. The Company owns the Letseng mine in Lesotho, as well as the Ghaghoo mine, in development in Botswana. The Letseng mine is engaged in the production of white diamonds. The Company’s main geographical regions include Lesotho, Botswana and Belgium. The Letseng mine has produced four of the 20 white gem quality diamonds.

MANAGEMENT AND DIRECTORS Clifford Thomas Elphick

Roger W. J. Davis

Chief Executive Officer, Executive Director

Non-Executive Independent Chairman of the Board

Michael Michael Chief Financial Officer, Director

Alan R. Ashworth Chief Operating Officer, Executive Director

Glenn E. Turner

Gavin A. Beevers Non-Executive Independent Director

Dave John Elzas Non-Executive Independent Director

Chief Legal and Commercial Officer, Executive Director

Mike Salamon

Andre Confavreux

Richard J. Williams MBE

Company Secretary

Non-Executive Independent Director

186 | BE Mining

Senior Non-Executive Independent Director

gem diamonds stock watch

Office Head office 2 Eaton Gate LONDON, ENG SW1 W9BJ United Kingdom Tel: +44-20-30430280 www.gemdiamonds.com

Exchange lon

Shares 138.27M

Symbol gemd

Market Cap. 226.42M

Currency gbx

Div/yield -

products • Diamonds

operating territories financial highlights • Revenue of US$ 96.5 million (US$ 122.6 million* in H1 2012).

• Underlying EBITDA of US$ 33.2 million (US$ 46.0 million* in H1 2012).

• A ttributable net profit of US$ 8.6 million (US$ 14.3 million* in H1 2012).

• Basic EPS of 6.23 US cents (10.36* US cents in H1 2012).

• Cash on hand of US$ 61.4 million as at 30 June 2013 (US$ 54.5 million attributable to Gem Diamonds).

• Lesotho • Botswana • Belgium

Key stats and ratios

Q2 (Jun ‘13) 2012 Net profit margin 15.65% 8.08% Operating margin 24.71% 16.54% EBITD margin - 70.77% Return on average assets 5.71% 2.67% Return on average equity 5.45% 0.22%

Financial information from Google Finance and Thomson Reuters

BE Mining | 187

188 | BE Mining

Exxaro Resources

Opening new possibilities A world-class commodity portfolio that has been developed with sustainability at the forefront of every decision

written by: Will Daynes research by: Candice Nice & Robert Hodgson

BE Mining | 189

Exxaro Resources

B

uilding upon a pedigree and wealth of skills that stretch back decades, Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups. Boasting interests in coal, mineral sands, ferrous and energy commodities, it is the country’s second largest coal producer with current production levels reaching 47 million tonnes per annum (mtpa).

Exxaro’s diverse commodity portfolio helped the company record assets of R37 billion and a market capitalisation of R60 billion as of the end of 2011.

Exxaro’s eight managed coal mines produce power station, steam and coking coal, as well as char. The company is the largest supplier of power station coal to South Africa’s national power utility, Eskom.

Exxaro’s Grootegeluk mine is one of the mostefficient mining operations in the world, and operates the world’s largest coal beneficiation complex, where 9,000 tonnes per hour of run-of-mine coal is upgraded in six different plants. Situated 25 kilometres from Lephalale in South Africa’s Limpopo province, this open-pit mine has an estimated minable coal reserve of 2,800 metric tonnes and a total measured coal resource of 4,600 tonnes , from which semi-soft coking coal, thermal coal and metallurgical coal can be produced.

Some 14.8 metric tonnes of annual production is power station coal, transported directly to Eskom’s Matimba power station on a seven kilometre conveyor belt. Grootegeluk also produces 2.5Mtpa of semi-soft coking coal, the bulk of which is railed directly to

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The missing piece in your project Stefanutti Stocks

- a multidisciplinary construction group with a footprint in South Africa, Africa and the Middle East - proudly associated with a variety of Exxaro’s projects.

We undertake projects in the following industries: building, environmental, heavy industrial, marine, mining infrastructure, petrochemical, power, telecommunications, transport nodes, transport infrastructure, water and waste water treatment.

Exxaro Resources Mittal SA under a long-term supply agreement.

Such are the demands for power in South Africa, however, that Grootegeluk’s capacity is being doubled in order to supply Eskom’s new Medupi power station. The $1.3 billion Grootegeluk Medupi Expansion Project (GMEP) will increase throughput to 14,000 tonnes per hour, and supply Medupi with 14.6Mtpa of coal for 40 years.

Since its formation as South Africa’s largest BEE-empowered diversified resources company in November 2006, Exxaro has built itself upon a brand promise, which is “Everything we do and deliver today will allow others to realise their vision

STEFANUTTI STOCKS Multidisciplinary Stefanutti Stocks is a leading South African construction group with the capacity to deliver a range of projects of any scale to a multitude of clients in diverse markets. The group operates across South Africa, sub-Saharan Africa and in the Middle East and has been successful in strategically positioning itself across many industries with its portfolio of both conventional and niche skills.

The group operates through its business units of Building; Mechanical & Electrical; Power; Roads, Pipelines & Mining Services and Structures. It is one of the few construction companies in Africa that can offer clients a full range of services, including a single point of responsibility on multidisciplinary projects.

Mining capabilities Stefanutti Stocks’ divisions boasts a wealth of experience and expertise in the design and construction of mining infrastructure as

well as the provision of professional services in the fields of open cast contract mining, bulk material handling and waste residue disposal and recovery facilities. It offers mining clients geotechnical and piling, infrastructure earthworks, water treatment plants, road rehabilitation and surfacing, a broad spectrum of civil construction, mechanical & piping and electrical & instrumentation supply, installation and commissioning.

Stefanutti Stocks has undertaken a variety of projects for Exxaro, ranging from the construction of the largest coalbunkers in the southern hemisphere; to structural steel work, piping, wet services and mechanical installations of a blending and load-out SMPP, through to the construction of numerous major housing contracts. www.stefanuttistocks.com

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Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com

Exxaro Resources tomorrow�. It is this promise that the company states has Trollope Mining Services (2000) (Pty) Ltd is a Level 4 influenced its drive towards BBBEE rated company providing the services of opencast sustainable development. mining, crushing, screening and rehabilitation. Established For Exxaro, sustainability in 1975 the company boasts a substantial fleet of is about securing the future. equipment and has enjoyed a sound working relationship Our aim is to harmonise with several well-known companies over the last three decades, including Xstrata, Exxaro, Continental Coal, Sumo business, community and Coal & Anglo American. env i ron menta l needs www.tmsgroup.co.za and obligations to enable Exxaro to achieve its founding goal of being a company that makes a positive social and economic contribution to South Africa.

One of the ways it is achieving this goal is through the development of its employees and stakeholders. The company’s approach to its people is guided by a comprehensive suite of policies covering employment, labour/management relations, occupational health and safety, training and education, diversity and equal opportunity.

Supported by the leading practices developed in recent years, Exxaro concentrates on exceeding compliance targets in South Africa by training and development to maximise individual potential, equality and safety in the workplace, meeting its employment equity targets and improving standards of living in its stakeholder

trollope mining services

2006 The year Exxaro was formed

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A global leader in the steel and mining industries

VR Steel is committed to excellent customer service through research and continuous product improvement.

John van Reenen (South Africa) | Tel: +27 11 864 7630 | Email: johnvreenen@icon.co.za Head Office Tel: +27 11 86 4 7630 | Fax: +27 11 864 7629

www.vrsteel.co.za

Exxaro Resources communities. Collectively, its initiatives are also contributing to reducing the shortage of skills in the industry.

Through its human resource development policy, Exxaro aims to develop and sustain core competencies and maximise human resources to meet the group’s strategic objectives and improve operational performance, while also creating a learning culture by assisting and facilitating the process in which employees and their dependants take responsibility for improving their own educational and competency levels. Further aims include ensuring the integration and uniformity in all learning and development processes by

VR STEEL Rope Shovels have overhauled large surface mining operations around the world. These colossal machines are the preferred choice for any world-class mine. Van Reenen Steel is the official agent for Taiyuan Heavy Industry (TZ) in Africa.

The Grootegeluk Medupi Expansion Project (GMEP) necessitated two additional rope shovels, with more to follow in the coming years. Two WK-35 series rope shovels were delivered to Exxaro Resources, Grootegeluk coal mine in July 2012. The shovels took 3 months to build on site, and went into service at the end of that year. These shovels, which have 44 mÂł coal dippers, are the first TZ shovels to be delivered in Africa.

Sifiso Magagula the, Director of V R Mining Products, says that the skills being transferred from China will not only be

beneficial for the workers at Exxarro but also local artisans that are part of the maintenance team.

VR Steel recently broke into the North American market by delivering its first U.S manufactured dragline bucket to Three Oaks Mine in Texas. This bucket, which weighs 136,400 pounds, was shipped from Conroe, Texas, where it was built by local fabricators.

Lauded for its innovative haul truck body design, VR Steel has delivered two of its biggest truck bodies, with 360 ton carrying capacity to Swakop Uranium mine in Namibia.

Further delivery of truckbodies and buckets are expected to the Democratic Republic of Congo in the first quarter of 2014, and to a number of other Southern African mines. www.vrsteel.co.za

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Exxaro Resources leveraging technologies, African Reptiles & Venom supporting and reinforcing African Reptiles & Venom was founded in 1999, by lifelong its values through learning snake enthusiast Mike Perry, to supply snake venom for initiatives, making sure that antivenom manufacture. These antivenoms are suitable these are career-focused for treatment of snakebite in Sub-Sahara Africa. and aligned with business The main business of the company today comes from objectives, and establishing provide a Snake ID & Snakebite Treatment course. The course covers the recognition of dangerous snakes, the life-long learning as the different venoms & symptoms of snakebite, the correct major thrust of learning first aid treatment, the medical treatment and finally the and development. recognition of allergies and their treatment. A venomous While its portfolio in coal, snake handling course is offered as well. mineral sands, base metals Approximately 5,500 people have been trained by Mike, with and ferroalloys has been well nobody being bitten by a snake during 12 years of courses. documented, Exxaro has also www.africanreptiles-venom.co.za recently been increasing its exposure to iron ore through its interest in Sishen Iron Ore Company and its acquisition of African Iron in early 2012. Since assuming direct management and operational control of African Iron the company has completed a broad financial, technical and operational review of its projects in the Republic of Congo, one of the major ones being the Mayoko iron ore project.

Early findings from the project at Mayoko indicate that this mine has significant potential in terms of resource quality and size, with much of the groundwork for this near-term development opportunity in an emerging iron ore province already completed by African

“Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups�

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Bonec Lubrication Equipment Suppliers of specialized greases, gear lubricants, hydraulic fluids, metal working fluids, automotive lubricants, environmental control products as well as lubrication systems for various applications in all industries.

With a wide range of products and our drive for customer satisfaction and after installation support services we can be your solution to any crisis.

Supplying from environmental control and cleaning agents for industrial use to Earthmoving Wearparts. www.bonec-le.co.za

Exxaro Resources Iron. The project currently has a JORC -compliant mineral resource of 685 metric tonnes of iron ore, consisting of a hematite cap of direct shipping ore (DSO) at 55 percent Fe and beneficial DSO ore at 41 percent Fe. With a revised exploration programme and accelerated drilling, production began in 2013. This has already begun to be an economic boost for the small village of Mayoko and the broader region, from which much of the required labour will be drawn.

Exxaro is also currently investigating additional regional potential in terms of size and quality, with exploration drilling under way at Ngoubou-Ngoubou, adjacent to Mayoko, Mt Lekoumou and Mt Mipoundi.

BONEC LUBRICATION EQUIPMENT Bonec Lubrication Equipment is based in South Africa in the Limpopo Region. Through the years we have become specialized in using a wide range of products and equipment.

The first range of specialities lay in the use of automatic lubrication systems. We meet the needs of our customers by installing and maintaining all types of lubrication systems, including Single Line, Dual Line and Progressive Systems. Our second range of specialities come in the form of G.E.T ‘s, ground engaging tools, which we supply and manufacture for use alongside all earthmoving equipment.

The third range of specialities rest in the use of high quality lubrication equipment and products, from foot pumps to air operated double diaphragm pumps, measuring from 1/4” up to 3” .We also handle all types of grease

pumps, including hand pumps, pneumatic pumps, hydraulic grease pumps and electric grease pumps. Bonec also specializes in the use of a Heavy Equipment Vision solution camera system. We have a massive range of products and the best thing about them is the warranty. We don’t repair them, we replace them immediately, and there is a ten year warranty on the cameras and five year warranty on the monitors. Bonec also supplies many of the sectors’ leading environmental products like Absorbent, Hydro Carbon spill kits and much more. Bonec are proud suppliers of Carl Bechem Africa. Together we supply one of the best grease products and have a huge range of greases for every application available, as well as a wide range of oils. www.bonec-le.co.za

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Exxaro Resources

R60 Billion Exxaro’s market capitalisation as of the end of 2011 Prospects for iron ore from this region are promising and the shortfall in lump ore production, due to growing production from Brazil and India, means production of pellets could double by 2021. For Exxaro, unlocking the full potential of this opportunity will require an intense focus on capital intensity to move Mayoko further down the US dollar per tonne scale, where it is already positioned in the lower half.

Exxaro has proven already time and again in South Africa that it has the expertise and experience to develop a large scale mining project from conceptual phase to production.

The company’s track record showcases its extensive engineering capabilities in design, operational expertise, maintenance and project management, as well as its experience with bulk mining, opencast and underground operations, beneficiation and downstream processing and value-added products. It is characteristics like these that leave little doubt that the future of the Mayoko mine, and other projects yet to come, is in good hands.

For more information about Exxaro Resources visit: www.exxaro.com

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company in brief Exxaro Resources Limited (Exxaro) is a South Africa-based diversified resource Company, with interests in the coal (controlled and noncontrolled), mineral sands/titanium dioxide (non-controlled), iron ore (controlled and non-controlled) and energy (controlled and noncontrolled) markets. The Company has a diverse portfolio in coal, mineral sands, base metals and ferroalloys, and growing exposure to iron ore through its interest in Sishen Iron Ore Company and acquisition of African Iron. In February 2014, it concluded a sale of assets agreement relating to its New Clydesdale Colliery (NCC) with Main

Street 1201 Proprietary Limited (Main Street), Universal Coal plc and Universal Coal and Energy Holdings SA Proprietary Limited (Transaction).

MANAGEMENT AND DIRECTORS Sipho Abednego Nkosi

Ernst P. E. Venter

Chief Executive Officer, Executive Director

Executive Head - Growth Technology And Services

Willem Abraham de Klerk Finance Director, Executive Director

Mongezi Veti General Manager - Safety, Health, Environment And Community Development

Mxolisi D. M. Mgojo Executive Head - Operations

Retha M. Piater Executive Head - Human Resources

Catharina Helena Wessels Group Company Secretary

Dennadayalen Konar Non-Executive Independent Chairman of the Board

Salukazi Dakile-Hlongwane Non-Executive Director

N. B. Mbazima Non-Executive Director

204 | BE Mining

exxaro resources stock watch

Vision Through our innovation and growth, we will be a powerful source of endless possibilities.

mission Exchange OTCMKTS

Shares -

Symbol EXXAY

Market Cap. 5,106.73M

Currency usd

Div/yield -/2.57

Office Head office Roger Dyason Road, Pretoria West PRETORIA, 0183 South Africa Tel: +27-12-3075000

We create unrivalled value for all stakeholders of our diversified resources business through our processes, thinking and passion.

values • Empowered to grow and contribute – developing and deploying our knowledge and ingenuity to achieve our vision. We focus on people, create freedom to innovate and collaborate, respect individuality, have fun and rise to challenges.

• Teamwork – we succeed together through a climate of respect and equality.

• Committed to excellence – we take ownership, provide visible leadership and encourage collaboration, commitment and creativity for the benefit of all.

• Honest responsibility – we speak the truth and accept accountability for our actions.

www.exxaro.com

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saving lives It was Mike Perry’s fascination with snakes, and his unfortunate mishaps with several of their venomous species, that ultimately led to the founding of African Reptiles & Venom

H

aving had an early childhood encounter with a Ringkals while hunting for snakes, it was his near fatal brush with a puff adder in August 1971 that led him to start what would become a lifelong study of snakebite treatment.

In 1999 Mike started the company to supply snake venom for antivenom manufacture. The company is an accredited supplier of snake venom to SA Vaccine Producers (Pty) Ltd, the manufacturer of the South African (SAIMR) polyvalent snakebite antivenom and monovalent Boomslang antivenom. These antivenoms are

“ Approximately 5,500 people have been trained

by Mike - with nobody being bitten in 12 years” 206 | be directory

suitable for treatment of snakebite in Sub-Sahara Africa. Today, Mike maintains and extracts the venom of 500 snakes per month during the summer months for venom supply.

The Snake ID & Snakebite Treatment course was the eventual result of Mike’s lifelong study. The course covers the recognition of dangerous snakes, the different venoms & symptoms of snakebite, the correct first aid treatment, the medical treatment and finally the recognition of allergies and their treatment. A venomous snake handling course is offered as well as black mamba handling and Snake Awareness. So a wide scope is covered from people that just need a general knowledge to people that may be called upon to treat snakebites and capture dangerous snakes in situations where the snake would pose a danger to the work force. Snake handling equipment is also supplied.

Some of the companies that have

African Reptiles & Venom

received training from Mike include: Anglo Coal, Anglo Platinum, Anglo Gold Ashanti, Anvil Mining, Africa Copper, Barrick Mining, BHP Billiton, Croc World, Exxaro, Gauteng Department of Agriculture, Tourism & Conservation, Kamoto Copper Company, Kumba Iron Ore, Mondi Paper, Sasol Mining, Sasol Secunda, Pretoria Zoo, Johannesburg Zoo, Eskom, Resolute Mining, Murray & Roberts, Rapid Care Paramedics, Rio Tinto, Vale & Damelin College to name but a few.

Approximately 5,500 people have been trained by Mike, with nobody being bitten by a snake during 12 years of courses.

The courses are FGASA (Field

Guides Association of Southern Africa) accredited as specialist snake courses.

Those that pass will receive a certificate with the FGASA emblem on it. The snakebite treatment course is also accredited with the WITSHEALTH CPD Office. Doctors can receive five CPD points when they do the course.

African Reptiles & Venom P.O. Box 70564, Bryanston, 2021, Gauteng, South Africa T +27 83 448 8854 E mike@africanreptiles-venom.co.za www.africanreptiles-venom.co.za

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unified fuel management

Imagine a solution that ensures safe and secure fuelling, easy operation, accurate data collection and full reconciliation

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magine a fuel management solution that is built on 30 years of experience and innovation in the mining industry.

Imagine a solution that transmits your fuelling information automatically, accounting for every litre of fuel from “buy to burn”... That system is Banlaw FuelTrackTM. Banlaw, a global leader in fuel management solutions, specializes in the mining sector and has the people, products and system capabilities to help your operations control its fuel usage from ‘buy to burn’, saving time and money.

With over 30 years of experience and innovation in the mining industry, Banlaw employs a unique end-to-end fuel management process called Fuel-Pro3.

“ We put our clients back in control – providing accurate, measurable data” 208 | be directory

With integrated fuel management hardware and software, complete fuel asset management, consulting, commissioning and training, along with ongoing service and support, Banlaw Fuel Management Solutions delivers productivity gains, accurate real time reconciliation and cost reduction like no other competing solution. Our easy, safe, accurate and innovative products and solutions are now used globally in over 29 countries.

Fuel Management Banlaw is a pioneer in the design, manufacture and implementation of refuelling and hydrocarbon management systems for your industry. For more than 30 years, Banlaw has manufactured world class refuelling products. Our deep involvement and commitment to clients over this time has earned Banlaw the reputation of industry specialists for providing complete

BANLAW

A Global Leader in Fuel Management Solutions Easy Safe Accurate Innovative fuel management solutions. Banlaw’s expert design optimizes all aspects of fuel movement including filtration, conditioning, metering, along with existing infrastructure and automated fuel management software delivering truly useable added value.

Banlaw also offers a full range of consulting and support services. We can manage your entire refuelling operations from design concept and installation to ongoing fuel management, maintenance and reporting.

We put our clients back in control of their fuel – providing accurate, measurable data to allow the right decisions to be made around cost, efficiency, productivity, environmental and safety outcomes.

Leading global and local companies in the mining, rail, port and transport sectors have already discovered that investing in Banlaw’s high quality, efficient and integrated fuel management products and services provides quick pay backs.

Let the Banlaw team show you how to improve your fuel management processes.

Banlaw Pty. Ltd 3025 Griffin Street, Carlin Nevada, 89822 T +1 775 754 2763 M 514-475-8888 E salesna@banlaw.com www.banlaw.com

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earthmoving wearparts

Modern lifestyles expect us to satisfy our customers’ expectations.

Through innovation, our aim is to continuously achieve this

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t Bonec, we specialise in lubrication equipment, and the supplying and installing of the equipment is our business. Our specialised services also include, grease accessories, absorbent and fast fill systems, automotive manufacturing, pulp and paper mills, industrial pumping equipment and accessories, earthmoving wear parts, grease pumps and fittings, the design of lubrication systems, and providing specialised support and training.

“ We place all of our experience and knowledge on the table to share it with the fellow workers, and customers” 210 | be directory

Bonec are expert suppliers of specialized greases, gear lubricants, hydraulic fluids, metal working fluids, automotive lubricants, environmental control products as well as lubrication systems for various applications in all industries. Bonec are proud suppliers of Carl BECHEM Grease, Sasol Oil products, Rocktech Earthmoving Wearparts, Flosolve Products, Graco Products, SKF Lubrication Systems and Orlaco Products.

Our core business is extending the life time of bearings and bushes on heavy mining equipment and plant areas. Our aim is to work together with all our customers with the main focus being to deliver on a pro-active maintenance mind-set.

Our key consultants work closely with the owner of our business, and together have been pursuing this business direction since 1997. Our key

Bonec Lubrication Equipment

consultants have operated in this field since 1978 and today our investment is in the future of our field. We place all of our experience and knowledge on the table to share it with the fellow workers, and customers.

Back-up modern technology and communication with our suppliers and consultants is available on demand.

Customer satisfaction is very important to us and therefore we supply GET’S and specialized lube products where there is a need for it.

With a wide range of products and

our drive for customer satisfaction and after installation support services we can be your solution to any crisis.

Bonec Lubrication Equipment Dikbas str no 1 Shop no 1 Onverwacht Ellisras T +27 (014) 763 4448 www.bonec-le.co.za

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One engineering services company Servicios de Ingeniería, SERVINCA is a company dedicated to provide Engineering and construction services , with over 33 years of experience in the execution of multidisciplinary projects covering the electrical, mechanical and civil areas for the private and public sectors .

Our vast experience provides multiple Engineering solutions to our clients for Energy Generation, Transmission, Distribution, Electrical – Mechanical Industrial projects such as Beer plants, Airports, Hydro Electrical Dams, Metro, Substations, Structural Steel fabrication and similar works for the Mining sector.

Jiguey & Aguacate Dam, Dominican Republic

As a Dominican Company, positioned as leader in the Engineering, procurement, management and construction of projects in the areas of Energy generation, transmission and distribution, we are pleased to have participated in the execution of large and important projects , having fulfilled the clients expectations by providing a high level service that meets international standards.

Our company has been awarded in multiple occasions by the Dominican Chamber of construction (1988 -1990 and 2002 – 2006) as a recognition of the works executed in electrical and electromechanical projects such as Las Americas International Airport and Monción Hydro electrical Dam. Due to the good results obtained during the period of 2008 – 2012, the growth of our company in the local market has consolidated our position as leader in the Electrical – Mechanical areas, now recognized as a key contractor for the construction of projects for the mining sector.

F336 & K136 Projects – PVDC BARRICK

Our experienced Engineering staff provides our clients with the confidence for the Engineering design and construction of projects, supported by the good results obtained during our business trajectory, having always as a goal to represent the most competitive solution to meet the completion date goals with the quality and safety standards that distinguish our company .

Our politics, mission and vision are oriented to exceed the clients expectations; for this purpose we have implemented our own integrated management system , providing all relevant information and standards to be implemented in our projects to ensure that the most modern and proven management techniques are implemented to obtain the expected results.

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SERVINCA, with over four years working in the execution of Construction and EPC projects for BARRICK Pueblo Viejo Dominicana Corporation gold mine, have completed a milestone of over 1,200,000 Manhours without lost time incidents, with a demonstrated performance that exceeded the clients expectations by providing competitive Engineering solutions for the construction of electrical, mechanical and civil works for important areas of PVDC process plant and surroundings.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

Engineering & Construction areas of Focus: • Energy Generation, transmission and distribution: Generation fuel oil, diesel, gas, carbon and combined cycle plants, transmission and distribution power lines, substations, instrumentation and fiber optic communication networks.

• Electrical / Mechanical industrial projects: Beer plants, airports, water treatment plants, cement plants and other related industrial projects.

• Hydraulics / Sanitary mechanical projects: Civil and mechanical works for pipelines, distribution, impulsion, fire system, drainage and other potable and sewage treatment plants, Steel pipes, HDPE, carbon steel, Victaulic, PVC and others.

• Structural steel fabrication and installation: SERVINCA have a complete division for the fabrication and installation of steel works for the construction of medium and large structures such as Steel gates for hydro electrics, structural steels for buildings, pipes supports, fittings, tanks, bridges, industrial doors and other metal mechanical related works.

Servinca awarded company of the year in the Energy Industry, CADOCON Awards 2013 Dominican Republic!

SERVINCA, LEADING ENERGY COMPANY!

Business Main Focus Our business main focus is to provide a high level Engineering and construction solutions for the national and international standards, having several technical divisions, managed by an experienced key personnel oriented to maintain and improve the company growth levels and leadership in the Construction industry.

We have a dedicated group of professionals with the support of special tools and equipment, organized by divisions according to the different Engineering areas of expertise for the execution of multidisciplinary projects, providing the knowledge to implement our own integrated management system to meet the expected success.

We have organized the company structure to provide the best technical / commercial proposal for the development of projects in the private and public sectors, prepared to cover all Electrical / Mechanical / Civil requirements of industrial and mining projects.

• Civil works: general contractor for multiple civil works such as earthworks, concrete works., drilling, foundations, sheet piles, soils and concrete testing lab and other related works.

• General contractor for operation, maintenance and construction: A mining division is implemented to perform multiple services covering all areas of the Engineering for the maintenance, operation and construction of expansion and improvement projects for the gold mine process plant facilities at PVDC.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Chemistry Delivered

For over 60 years Univar has connected the mining industry with the world’s premier chemical manufacturers

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stablished in 1924 as a local Seattle source for soda ash and a handful of related products, Univar has grown into a global chemical distributor, employing 7,000 people at 180 sites in North America, Europe, Asia-Pacific, the Middle East, Africa and Latin America. We serve over 115,000 customers in more than 115 countries, and represent nearly every major industry and a highly diverse set of end markets. We source chemicals from more than 3,500 producers, including the premier global chemical manufacturers, and distribute more than 4,500 chemical products.

Univar began serving Canada in 1950. Today, Univar Canada Ltd. is

“ Univar has grown into a global chemical distributor” 214 | be directory

Canada’s leading chemical distributor, and serves industrial chemical and agricultural chemical needs from over 20 facilities coast-to-coast, from British Columbia to Newfoundland.

Unsurpassed service and product lines Univar is the distribution partner that is transforming the way chemicals are bought, sold and managed in the mining industry. We supply a comprehensive selection of core and specialty chemicals for every stage of mine development, from exploration and extraction to reclamation. The breadth of our product line is unsurpassed, including absorbents and adsorbents, acids and acid cleaners, coagulants, collectors, frothers, mining and ore digging aids, surfactants, water treatment and much more. Our extensive distribution network, global reach and unparalleled logistical expertise provide our customers a consistent and reliable source of supply.

Univar Mining

In addition to our vast product offering, we provide important valueadded services for our customers and suppliers, including: • Product availability and inventory management • Product specification and technical expertise • Blending and mixing • Repackaging and labeling • Just-in-time delivery • Waste management Health, safety and the environment As a world leader in chemical distribution, Univar is committed to being a responsible corporate citizen with a global focus on safety, health, the environment, and

sustainability. The highest priority in the conduct of our business is safety and environmental protection.

Univar mandates commitment to this priority, requiring thorough compliance with our own stringent standards and all government regulations. We are committed to constant vigilance and continuous improvement.

Univar Mining 9800 Van Horne Way Richmond BC V6X 1W5 T +1 855 888 8648 www.univar.com

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WHERE THE WORLD’S MINERAL INDUSTRY MEETS

ONLY GOING TO ONE MINING INVESTMENT SHOW THIS YEAR? MAKE IT PDAC. March 2 – 5, 2014 International Convention, Trade Show & Investors Exchange Metro Toronto Convention Centre Toronto, Canada convention.pdac.ca/pdac/conv/

Prospectors & Developers Association of Canada