Page 1


Fortescue Metals Group - Cloudbreak: weatherly plc: Alamos gold:



Achieving operational excellence in mining Utilising information to develop an integrated approach to operations

+ mine of the month: Goldcorp marlin mine

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 Jeff Powell & Jeff Hilk Diligent Board Member Services

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.

BE Mining


Issue No.16

8 14

8 lead story

Achieving operational excellence in mining

KPMG has been focusing on developing solutions to utilise information in a meaningful manner, to reduce costs and develop an integrated approach to operations.

14 sustainability

Gold to be proud of

The Fairmined label is the customer’s assurance that the gold comes from empowered responsible mining communities that meet world leading standards.

20 technology

Magic for mining meetings

Mobile technology is modernizing governance in the mining industry: board portals are the latest way to cut down on cost, paperwork and unnecessary delay.

26 executive insight

Julie Shuttleworth

General Manager of Fortescue’s Cloudbreak mine discusses her proudest achievements, her inspirations and the lessons she has learnt throughout her career.


BE Mining




gold: mine of the month

30 Goldcorp – Marlin Mine Guatemala’s gold standard

The first gold mine of significant size in Guatemala, Goldcorp’s Marlin Mine continues to make new discoveries that are increasing its life expectancy.


46 Alamos Gold

A track record to be proud of

The secrets behind the company’s success and how its commitment to responsible mining has improved the lives of many.

56 Banro

Producing and prospecting


Banro Corporation’s recent achievement of production at its Namoya mine transforms it into a two-mine company targeting more than 225,000 ounces of annual gold production.

BE Mining


Issue No.16

68 metals: 68 Fortescue Metals Group – Cloudbreak Breaking down barriers

Julie Shuttleworth discusses how Fortescue’s approach to business attracted her to the company, and her goals and objectives for the years ahead.


80 Essar Steel Minnesota LLC (ESML ) Pellet perfection

Edging closer to the completion of a state-of-the-art open pit mining, concentrating and pelletizing plant.

94 Weatherly plc

The making of a copper company

94 6|

BE Mining

Weatherly plc’s Tschudi open pit project, producing pure copper cathodes on site in Namibia, is the focus of its next stage of growth.


service provider: 106 GeoQuest

Servicing South and Central Africa

An independent geological and environmental consultancy and contracting group, GeoQuest has been a principal supplier of vital services for some of Africa’s more prominent developing nations for the last 14 years.

114 EXSA Peru

Creating exact solutions

106 114

In expanding its value proposition, EXSA is positioning itself to remain as influential to Peru’s mining sector as it has been for the last six decades.

124 Reliable Controls

Better Controls and Plant Commissioning

Reliable Controls Corporation is a dependable partner for plant automation, assessment, auditing and commissioning work, particularly in mining and O&G projects.

mining Directory: 134 FRUTIGER Company AG


worldwide customers

With the business lines Scrapedozers and Wheel Washing Systems, FRUTIGER leads the market.

136 wagstaff crane

the best hooks in town

It is our mission to uphold the values and principles that have made Wagstaff Crane the leading crane outfit in the Intermountain West for the last half century.

BE Mining


Lead story

Achieving operational excellence in mining The wealth of data available to companies can quickly outstrip their ability to deal with it: KPMG has been focusing on developing solutions to utilise information in a meaningful manner, to help costs and develop an integrated approach to operations Words by John O’Hanlon Research by Richard Halfhide

BE Mining

| 9


he mining industry is experiencing unprecedented change: to be successful, companies need to remain nimble and creative, yet focused on their goals. Now that is so obvious to most mining CEOs that it is almost a truism, yet in practice they need help. As mining companies move through the mining asset life cycle, they encounter different challenges to maintaining. Under its Global Head of Mining Wayne Jansen, KPMG’s experienced team of mining specialists, working from 13 mining centres in the world’s principal mining areas, assist clients daily and are developing innovative strategies so that they can get a clear, holistic picture of operations. One such solution is Data Analytics, which has found a limited footprint in the mining industry so far as a tool for operational excellence. KPMG tends to use a combination of tools to achieve operational excellence, however when it first engages with a mine operation, according to Associate Director at KPMG in South Africa Harmeet Katari, the team will often adopt an approach that leverages tools built from the private equity market to quickly build and test hypothesis for cost optimisation. This is sustainable value improvement (SVI). “This way we can

“We can find out where the real value resides in the business and pin down the cost drivers and the performance levers” 10 |

BE Mining

find out where the real value resides in the business, and pin down the cost drivers and the performance levers. Then when we get into the design and implementation phase we may bring in tools like lean, six sigma and analytics based solutions to some extent to bring about those changes.” There is a place here for the process and value stream mapping techniques that manufacturing and process industries rely on, he adds. Frankly, lean took 40 years to become embedded in manufacturing, much more recently gained a foothold in the steel industry, and will take another couple of decades to be widely adapted and adopted in mining. It will take that long, Katari thinks, for the mindset to change – currently mining executives tend to solve business problems by spending capital rather than through efficiency programmes. The adoption of analytics in mining is in its nascent stage. With huge amount of data being generated by the equipment in respects of its running condition, operating environment, performance, all of this information resides in different storage devices with companies not knowing how to use this data to make effective decision making. KPMG sees that the use of analytics in mining can be extensively used in asset management, integrated production planning, energy management, the supply chain, and to predict market demands. Currently KPMG is helping its clients in two specific areas with very powerful solutions around integrated production planning and asset management,

Lead story

two of the biggest concern areas for any mining company. Katari thinks that one of the biggest operating challenges mining companies face today is their ability to respond as a single unit when actual differs from plan. “I think this is a key area where companies fail; firstly by operating in organisation silos and secondly by not having the tools to re-optimise their plan and get over adverse events faster.” There are three parts to the mining value chain, he points out, pit operations, processing or beneficiation, and logistics – getting the product to the customer. These are the three organisational silos that too often fail to communicate effectively with each other.

Managing the asset lifecycle Mining organisations encounter different challenges throughout the mining asset lifecycle. KPMG’s experienced global mining team can assist clients throughout the entire mining asset lifecycle, including from expansion through to closure. Strategy Growth Performance Compliance Sustainability

“How do I re-optimise my plan and change my target for the day or respond to a situation after a truck breakdown or a crusher stop?” The problem starts after the planning stages are complete, he says. Mining companies do an excellent job when it comes to creating life-of-mine plans, with a lot of effort to plan the ounces. The issues start when the plans are communicated to different functional units and that is when they start to operate in silos. “The mining people, the processing people and the logistics people work in their own ways. They communicate if there is a major event, a ship delay at the port or a derailment for example, but what we call small change events – day to day issues that crop up – are not reported. In my experience these events are daily, even hourly occurrences.” But they do affect the plan. “How do I re-optimise my plan and change my target for the day or respond to a situation after a truck breakdown or a crusher stop?” This is the type of question that can be addressed through KPMG’s unique analytical solution, which takes different variables into a single solver and models different scenarios and creates a revised plan which is shared seamlessly across the organisation. And it goes further. Lost blasts are typically caused by backlogs clogging

BE Mining

| 11

up the mine, or by cleaning activity. Trains are often left waiting, either at the mine due to lost blasts, or delay at the processing plant as a result of full tips. A lack of ore can either cause a complete processor shutdown, or reduce yields due to inefficiencies. Costs rise, thanks to overtime for staff clearing

Harmeet Katari Associate Director at KPMG in South Africa

12 |

BE Mining

backlogs and moving excess ore to temporary stockpiles, which also requires expensive equipment and transport. With these resources in constant use, maintenance suffers, leading to breakdowns or accidents. KPMG’s Integrated Production Planning (IPP) solution, the objective of which is “Optimising as a single system on a dynamic basis with strong governance,” will start at the level of governance, because that is where the problem originates – nobody ‘owns’ the plan – so KPMG is working with many of its mining clients to improve the whole planning process to create integrated monthly, weekly and daily production schedules across the value chain. Use a strong optimisation engine which analyses the historical data and create a re-optimised plan and schedule for the business. Asset management is another area where KPMG is assisting its clients through analytics. All large mining equipment has a multitude of data about its health being recorded on an ongoing basis. If used effectively, this data can help predict asset health. It is, Katari points out, like a human body wherein lots of internal and external means can help establish whether a particular part of the body is susceptible to breakdown and therefore preventive care can be taken. “Similarly, assets transmit different signals through real time data and operating conditions which can help in predicting the failure of an asset.” Traditionally, mining companies follow a standard maintenance schedule as prescribed by the OEMs, which need not be optimal due to different operating

Lead story

“A sound condition-based asset management strategy with strong analytical tools has helped our mining clients save at least ten to 15 percent of their costs, with another five to ten percent improvement in availability” conditions and also because of the inherent benefit which OEMs want to gain by replacing the parts before endof-life. “The machines are forever talking but most of the time nobody is listening,” says Harmeet Katari: “Conditionbased maintenance, or predictive analytics, is a key component under asset management.” KPMG has assisted its clients by developing tools which analyse the data and can predict when a component is likely to fail, allowing its replacement or service to be scheduled so as not to lose time. “A sound conditionbased asset management strategy with strong analytical tools has helped our mining clients save at least ten to 15 percent of their costs, with another five to ten percent improvement in availability.” While asset and production fleet management is easier to illustrate, many other areas benefit from the application of analytics as applied by KPMG. Productivity levels, yield management in processing operations, supply chain management and energy management all lend themselves to improvement through analytics. Warehousing and materials control is directly linked to understanding critical spares in the light of asset management standards while contractor and supplier performance management links directly to the way

service contracts are formulated. Just as the operation needs to knock down its silos, co-ordinated scheduling of all the resources on a site, based on objective, targeted functions like profitability and asset utilisation allows the company to focus on net present value (NPV) rather than volume. Analytics-based approaches are being taken on board by a growing number of clients, says Katari. “We can go in and use SVI at the diagnostic level, then we can help them identify those areas they can tackle on their own without external help. For the rest we believe we have the capability to partner with them and take them through that journey. And we engage with them at all levels, from top management to doing workshops with middle management and then going into the sites to explain in detail what needs to be done and how it will benefit the workers at the figurative, and literal, coalface.”

Harmeet Katari Harmeet Katari is Associate Director at KPMG in South Africa. Educated at the Indian Institute of Management (IIM) Calcutta, he specialises in the application of data analysis within the global mining industry. www.kpmg.com/mining

BE Mining

| 13

Photo credit: Š Nigel Wright


Gold to be proud of The Fairmined label is the customer’s assurance that the gold comes from empowered responsible mining communities that meet world leading standards Words by

John O’Hanlon

BE Mining

| 15

“It’s vital to have people on the ground who understand the local community” 16 |

BE Mining

Exchanging panning dishes in Chocó, Colombia

Responsible Mining (ARM), a pioneering global organisation set up in Colombia in 2004. It seeks to transform global gold production by integrating and formalizing the position of countless artisanal and small-scale miners, creating a certifiable source of ethical gold. In 2011 ARM created its Fairmined brand. “Fairmined is the social enterprise, market-facing side of the initiative,” explains its Account Manager Kenneth Porter. “We control the Fairmined label which is an assurance label that provides anyone with access to gold and associated precious metals that anyone can be proud of – it is backed by a rigorous third party certification and audit system that ensures that small entrepreneurial mining communities meet world standards for responsible practices.” The market has changed a lot since the launch of Fairmined. “The biggest changes have come from the market, where we have seen interest grow exponentially especially in the last year and a half, helped by initiatives from

Photo credit: © Ronald de Hommel


he artisanal and small-scale mining (ASM) sector is a catch all classification for a diverse group of people who employ low-tech methods, with little in the way of equipment and no supervision, to extract metals – mainly gold. These people are poorly placed to deal with a host of associated problems, including poor environmental, health and safety practices, the spread of communicable disease, heightened security risks to neighbouring communities and operations, child and forced labour, inequitable distribution of benefits in communities and an illegal trade in minerals. Many use mercury to process ore – an international environmental concern highlighted by the United Nations Environment Program (UNEP). In a lot of places ASM takes place alongside and in competition with large-scale formal mining: in others it is exploited to fund regional conflict. It’s estimated that 100 million people across the globe depend largely on ASM for their livelihood. They are notoriously unregulated yet the gold they produce is of global economic significance, with volumes around 350 tonnes of gold per annum or twelve percent of total annual world production. Startlingly, though, they account for 90 percent of the total workforce. Addressing the many abuses affecting ASM production and its supply chain is the raison d’être of the Alliance for


the 2010 Dodd-Frank Act in the USA, the OECD’s Due Diligence Guidance and the LBMA’s Responsible Gold Guidance, not to mention the Responsible Jewellery Council (RJC)’s Code of Practices,” says Porter. “We are now seeing major industry players looking at updating their sourcing policies and many of them want to include a source for responsible ASM gold.” Fairmined started with just three certified mines, in Colombia, Peru and Bolivia. Today 20 more projects are financed and working toward certification. New projects in the West African states of Burkina Faso, Mali and Senegal are well under way, in collaboration with the United Nations Industrial Development Organisation (UNIDO), and a further project is being set up in Mongolia. In the early stages of any project, the priority is to identify and appoint a local partner, called a Producer Support Organisation. “It’s vital to have people on the ground who understand the local community, have credibility there and are seen as present in the long term; not just someone who flies in for 18 months,” he says. In some cases such organisations already exist but in others capacity building is required, and ARM is developing training centres to ensure that its project partners are au fait with a whole range of issues related to the ASM sector. The best motivation for a remote mining community to espouse international best practice and work toward compliance standards comparable with those practised by the formal mining companies is to make them part of a sustainable supply chain. Fairmined’s early adopters were a group of small but passionate jewellers

“The biggest changes have come from the market, where we have seen interest grow exponentially especially in the last year and a half ” who wanted to be certain the gold they were using could be traced. Now, Kenneth Porter is delighted to say, major jewellery brands are coming on board. Among the first to support Fairmined in responsible community mining was the Swiss house of Chopard, ‘a pioneer in sustainable luxury’. “They started an innovative project with us six months ago to invest into mining communities one in Colombia one in Bolivia, to bring them to certification. At the Cannes Film Festival last year French star Marion Cotillard arrived at the première of ‘Blood Ties’ wearing Chopard’s Green Carpet Collection jewels, the first two pieces of high jewellery made from sustainable Fairmined gold from South America. This appearance was followed at the Golden Globe Awards in January this year when Cate Blanchett stepped up to her Best Actress award for ‘Blue Jasmine’ adorned by Chopard earrings made with Fairmined gold. All the major brands have now expressed interest, so watch this space for further partnership announcements over the coming six months. Fairmined jewellery is currently on sale in stores in the United States, Canada, Great Britain, Spain, Japan and Denmark, and available via online retailers worldwide.

BE Mining

| 17

Photo credit: © Cedric Faimali

Chopard’s pieces are made from fully traceable gold, right back to the certified mine. That entitles them to use the Fairmined trade mark, however there are other more flexible options for gold users to engage with Fairmined. For example, Fairmined Incorporated allows the purchaser to source gold, traceable to the point of refinement. Once the gold has been refined it is integrated into the buyer’s legal supply chain. Though they cannot then put the Fairmined label on the finished product, they can take credit at the corporate level in their reports and presentations for the quantity of Fairmined incorporated in their supply chain. “The changes to our business model have really opened up Fairmined to make it more accessible to all different types of market segments and gold buyers,” says Porter. The ‘incorporated’ model is now joined by Fairmined Certificates, he continues. “These are a bit like carbon credits.

Gold produced by the Macdesa company

18 |

BE Mining

“The changes to our business model have really opened up Fairmined to make it more accessible to all different types of market segments and gold buyers” The scheme decouples the physical gold molecule from the certificate so it allows anyone, whether they physically buy gold or not, to contribute to the certified production of Fairmined gold from responsible mining communities.” Under the scheme a brand or organisation that wants to contribute to the production Fairmined may buy certificates though they would never have to take possession of that gold. The certified community would produce that quantity under the standard, and the gold is fully traceable until it is sold into a legal supply chain. The scheme is suitable for larger brands that don’t yet have, or are transitioning to, a certified purchasing policy. It also opens it up to the broader mining industry, he says, or a player in the electronics industry. Fairmined Certificates were launched in January, so 2014 is the year he hopes to see them take off. ARM and Fairmined have quite a hill to climb Porter admits. “We have touched the tip of an iceberg. In Mongolia we have not yet been able to identify mining communities to get to certification, but we have been working with the Mongolian government in a project called Sustainable Artisanal Mining (SAM) Mongolia.” Fairmined is a tool they are


considering to promote formalisation in their ASM sector. However he would love to be able to expand much further. China for example has a large ASM gold sector and also a growing middle class creating a significant gold market. In the short to medium term, however, he thinks Africa offers more opportunity. “Our initial projects have revealed a lot of work to be done. The mining communities score a lot lower on formalisation charts than they did in South America so there is a lot of positive transformation to be achieved.” In time Africa could benefit from the Fairmined Standard that promotes best practices, from social development, environmental protection, water management, safe use of chemicals, gender equality, labour rights, workplace safety and social security. “We have noticed that impact happening with the first community that was certified here in Peru. It had a positive impact on the wider community and the whole sector regionally – for example the AURELSA mine in Peru has become a regional leader for responsible mining; they have opened the door to other mining organisations in the region to visit them and see their best practices and they give workshops to them!” This is transforming the ASM sector from the bottom up. The demand for certified gold will rise as more jewellers ask for it, so keeping the supply up will be a challenge. The supply of Fairmined gold at present stands at around 350-400 kilogrammes a year. By 2015 he hopes that might rise to a tonne but certification is not a process that can be rushed. Fortunately the international community is beginning

“We have touched the tip of an iceberg. In Mongolia we have not yet been able to identify mining communities to get to certification” to recognise ARM’s importance: “We have signed a three year project with the Inter-American Development Bank (IDB), which is the main source of multilateral financing in Latin America, to bring twelve communities to certification. We also signed another project with Pact, which works with USAID, to bring in more money. A lot of development agencies are recognising Fairmined as a tool to formalise ASM.” Kenneth Porter is confident that more communities will be certified in South America in the coming year, and he would like to see the first African projects mature soon after that, followed by Mongolia. Meanwhile, anyone who wants to know more about Fairmined would do well to attend the jewellery industry’s US showcase, the JCK show in Las Vegas in June where he will be promoting the launch of Fairmined gold in North America under the new Fairmined brand identity and logo that was unveiled in February.

Fairmined For more information about Fairmined and the Alliance for Responsible Mining visit: www.communitymining.org

BE Mining

| 19

Magi min meet

Mobile technolog governance in the board portals are cut down on cost unnecess Words by

20 |

BE Mining

Jeff Pow


ic for ning tings

gy is modernizing e mining industry: e the latest way to t, paperwork and sary delay

well & Jeff Hilk

BE Mining

| 21


he mining industry is no stranger to technology. From automated tunnel borers to “rail-veyors,” technology is instrumental in making sure mining operations run smoothly. But it doesn’t stop at the equipment in the quarries or mines. The industry’s strategic business direction is determined offsite in the boardroom, especially with increasing regulatory oversight and requirements. As a response to a more intricate compliance environment, as well as advances in communications facilitated by tablets, phablets and smartphones, the adoption of mobile technolog y in the boardroom is growing exponentially. McKinsey Global Institute estimates that mobile Internet could generate annual economic impact of $3.7 trillion to $10.8 trillion globally by 2025 due to the improved delivery of services and productivity increases. Those out in remote mining locations often use mobile technology to improve communication and efficiency, and the governing bodies responsible for the company’s overall operations and accountable to shareholders are mirroring these adoptions. By implementing board portals, mining companies are eliminating the heavy paper books that

used to be prepared before every board and committee meeting. Instead, they are using a solution that streamlines communication, improves document security, cuts costs and reduces their environmental footprint. Mobile technology boosts company efficiency Receiving board information prior to in-person meetings can be timeconsuming, expensive and inconvenient, as directors today are located across the globe, work remotely or could be on vacation. With board portals, directors no longer need to synchronize their physical location with the arrival of a courier package. A board portal provides seamless access to materials both online and offline. So whether a board member is out in the field, in airplane mode or walking into the boardroom with their tablet, they are able to enjoy the same book-like reading experience regardless of their location or access to a computer or WiFi. According to Deloitte’s most recent Board Practices Report, two-thirds of US public companies report that their boards are using a board portal. Mobile technology is rapidly making its way into boardrooms, including those of mining companies. In fact, more than a quarter

“Receiving board information prior to in-person meetings can be time-consuming, expensive and inconvenient, as directors today are located across the globe, work remotely or could be on vacation” 22 |

BE Mining


“Making board materials accessible through a portal significantly decreases the stress and effort of trying to compile and receive the hard copy paper version at various geographic locations” of the top 40 global mining companies use the Diligent Boardbooks solution. While many boards began using online board portals as early as 2003, board members of all age cohorts now expect to bring their tablets and apps into the boardroom as a matter of course. Even so, while many directors may be accustomed to using an iPad or tablet for personal activities, using that technology in the workplace can sometimes present new and unfamiliar obstacles. To make for the most seamless experience, a board portal must not only to read like a book to emulate the paper materials currently used by some boards, but be easy to navigate, digest and annotate regardless of the users’ experience and familiarity with a mobile device. Mobile technology features higher security and safety standards Today, directors in industries like mining are performing their responsibilities at a time of intense regulation and scrutiny. Concerns about governance, compliance and safety regulations are top of mind. Mining companies are regularly communicating highly confidential information and paperless board portals offer a way to provide directors with

secure access to the critical documents they need to fulfill their duties. Capabilities in data security are continually advancing. Leading board portals have capitalized on technology advances to strengthen their security processes. Information is password protected and encrypted so nothing material needs to be communicated via email. With these stringent security measures in place, authorized directors can only view materials that they’ve been given access. As a result, a board portal enables a safe, secure means of communicating highly sensitive board materials to directors. Go paperless to ease pain points and decrease your environmental footprint As mentioned earlier, physical board books are often bulky and use a significant amount of paper, especially for highly regulated industries like mining. Making board materials accessible through a portal significantly decreases the stress and effort of trying to compile and receive the hard copy paper version at various geographic locations. Last-minute changes made after the board packs have been mailed represent another challenge for corporate secretaries, who need

BE Mining

| 23

Worldwide Leaders in Infrared Sensor Technology Gail Norton Instrumentation Agencies, established in 1986, specializes in Sensor Technology. Telco Sensors has become one of the most sought-after, high performance infrared sensor manufacturers in the world. Telco products are globally recognized as the only sensors that will work in hostile and mining environments where optical sensors fail. PENETRATING POWER - Severe contamination is no challenge for Telco’s sensors. Our infrared sensors penetrate through contamination and are IP 67. Telco Sensors are unaffected by DIRT, WATER, VIBRATION, MISALIGNMENT & LIGHT. Applications for Telco Sensors are only limited by the imagination. “Seeing is Believing”


Tel: +27 31 701 4861 | Fax: +27 31 702 9819 | Email : telco@telcosa.co.za www.gailnortoninstrumentation.co.za


Gail Norton Instrumentation Agencies The highly contaminated environments in the mining industry poses major problems for most sensors but this is a problem that TELCO SENSORS overcomes with its powerful and high performance infrared sensors, ensuring penetration of extreme contamination whilst guaranteeing reliable detection. GAIL NORTON INSTRUMENTATIONTELCO SENSORS highly sought after solution for blocked/empty chute detection consists of an amplifier with transmitter and receiver. Holes are drilled through the chute on either side so the transmitter and receiver can be mounted thru beam, away from the fall of product and at the desired height for full or empty chute detection. www.gailnortoninstrumentation.co.za

to communicate these changes, often multiple times, to each member of the board before the board meeting. With a board portal, all these changes are transmitted directly and instantly. Board materials are updated with the press of a button and directors can immediately know about the update. Of course, board portals also help companies reduce their carbon footprint, which many mining companies are seeking to minimize. Another issue is timely delivery of board materials. As a result of just-intime delivery and the chances of packages being lost or delayed, directors often have limited time to review documents as thoroughly as they might like. With board portals, directors receive board

“Board materials are updated with the press of a button and directors can immediately know about the update” books directly on their tablets or PCs and can easily view updated materials new information is available. Mobile technology is here to stay in both our personal and professional lives. Any mining company considering best practices in corporate governance and board communications should consider the benefits of implementing a board portal. Having a customizable solution – complete with 24/7 support – allows companies to address many of the factors impacting its board meetings processes, including traveling management and board members, frequency of meetings and regulations and compliance. An effective board portal solution will provide all involved with the interactive tools to enhance the board’s efficiency in communications, as well as savings in cost, time and resources.

About the authors Jeff Powell is Executive Vice President of the Americas Region, and Jeff Hilk Executive Vice President of Sales at Diligent Board Member Services Inc creator of the world’s most widely used board portal. www.boardbooks.com

BE Mining

| 25

Executive Insight

Julie Shuttleworth Julie Shuttleworth, General Manager of Fortescue’s Cloudbreak mine discusses her proudest achievements, her inspirations and the lessons she has learnt throughout her career Edited by

Will Daynes

BE Mining

| 27

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

hiking, canyoning and have travelled to over 90 countries.

I wish I could sing in tune (and I am sure many other people wish that as well!).

Who or what do you think is overrated?

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

Beach holidays in Mauritius (especially when compared to Western Australian beaches!).

The Concise Communicator, by Clive Simpkins. It’s a small book, with great practical tips about communicating, presenting and public speaking. I did a training session with Clive when I was working in Africa and he has even stayed in touch since. Someone you would most like to have met, living or dead, and why? I would have most liked to have met my grandfather, who I never met as he passed away before I was born. Many people still talk about him and say how he was such a special person. I also think some of the scientists from a few hundred years ago would have been interesting to meet, whose formulas, findings and inventions we all learn about at school. What do you consider to be your major achievement (in life or business)? For me it’s that I’ve had a great career and a lot of fun at the same time. For example I regularly go scuba diving, mountain

What mistakes have you made (professional or otherwise), and what did you learn from them? Learning how to manage stress has been important for me; whilst on the outside I can appear calm and happy, on the inside I can be a whirlwind… resulting from putting lots of pressure on myself, trying to do too many things at once, going from one meeting to the next with no time to consolidate in between, working late, long hours (12 to 18 hours a day), eating too much cake and chocolate, not putting time aside for exercise, and not getting enough sleep. It’s not good to keep that up for too long! What have I learnt?..... • Delegate to others (don’t try and do everything yourself) – things might not get done as quickly as you want but you have to learn to live with that. • Make time to exercise regularly and eat healthy. I once saw a poster that said “Someone busier than you is running right now”.

“Delegate to others (don’t try and do everything yourself) – things might not get done as quickly as you want but you have to learn to live with that” 28 |

BE Mining

Executive Insight

“It’s essential to spend time in the field every day with your team, getting to know and understand their jobs, discussing and improving safety, and ensuring you are approachable to the workforce” • W henever possible don’t pile meetings up one on top of each other (make time for myself during the day so I am not still working at 10pm). • I also have to take a step back and remove the self-induced pressure. Why am I stressing about it? Will this thing I am stressing about really matter in two weeks’ time, in two years’ time, in 20 years’ time? Which one piece of wisdom would you pass on to your successor? It’s essential to spend time in the field every day with your team, getting to know and understand their jobs, discussing and improving safety, and ensuring you are approachable to the workforce. Who has been your inspiration professionally? No one person has inspired me professionally. By observing styles of other leaders I learnt what does (and does not) work well. How would you like to be remembered after your retirement? As a positive competent leader in the mining industry, totally committed to safety, who was approachable, achieved

results for the business, who had a positive impact on careers of thousands of people, and who smiled lots. Do you have a quote or motto you live (or work) by? Two mottos: Smile lots! Go for it!

In this issue: An in-depth look at Fortescue Metals Group and the Cloudbreak mine on page 68.

BE Mining

| 29

mine of the month:

Guatemala’s gold standard The first gold mine of significant size in Guatemala, Goldcorp’s Marlin Mine continues to make new discoveries that are increasing its life expectancy

written by: will daynes research by: candice nice

30 | BE Mining

Goldcorp - Marlin mine

BE Mining | 31

Panoramic view of the processing plant

Goldcorp - Marlin mine


aving been in production since late 2005, it took less than five years for Goldcorp’s Marlin Mine to produce its onemillionth ounce of gold. Located in the western highlands of Guatemala, 300 kilometres northwest of Guatemala City in the municipality of San Miguel Ixtahuacan, in an area boasting elevations ranging from 1,800 to 2,300 metres above sea level, Marlin has operated as both an open pit and underground mine, and continues to generate significant cash flow. Marlin Mine was originally discovered in 1998 by two Guatemalan geologists. Acquired in July 2002 by Canadian Company Glamis Gold, it was they who, in conducting an exploration study, determined that the mine held a projected 1.4 million ounces of gold. On 27 November 2003, the Ministry of Energy and Mines of Guatemala issued a licence for the development and operation of the Marlin project and following the successful completion of the construction phase in the third quarter of 2005, the mine began producing gold and silver before the turn of the year. In the time between 2003 and 2006 approximately $300 million was invested into the operator’s exploration activities and overall preparations for exploitation. It was then in 2009 that Goldcorp invested an additional $69 million into the operation, with a similar figure being ploughed into the business in 2010. Such was Goldcorp’s commitment to the long-term success of the project that it remains on course to have invested a further $150 million into Marlin Mine by the end of 2014.

BE Mining | 33

Grupo EMO’s leadership rests on the application of specialized, trendsetting techniques in technology, planning and developing in each and every one of our underground constructions, tunnels, open space operations and civil work for hydroelectric. The application of these techniques is performed by highly qualified local and international professionals, using the best human and technical equipment as an operations platform with specialized teams and heavy machinery.

Contact: 00502 + 2361-9444 00502 + 2498-4888 info@grupoemo.com www.grupoemo.com

Conquering Limits • Tunnel construction • Civil Work • Hydropower • Mining • Geotechnical • Soil Nailing • Grout Injections • Explosive Management

Key Work Points: • Profitability • Reliability • Industrial Security • Machinery

Goldcorp - Marlin mine

Local workers

Lying within a highly prospective land package of approximately 100,000 hectares that encompass the main deposit and various important vein structures and mineralised zones, the Marlin site hosts four major lithologic units, those being pyroclastic deposits, marlin andesites, tertiary volcaniclastic sequence and porphyric dykes. Marlin was the first gold mine of significant size in Guatemala and because of this Goldcorp made it a matter of great important to build lasting partnerships with communities surrounding the mine site. To

GRUPO EMO Since 2004 GRUPO EMO, S.A. has been an strategic supplier for underground mining operations to GoldCorp. Recognized in the Marlin Mine site as prime contractor for underground projects and forming part of the mine development and ore recovering team, GRUPO EMO has offered a wide range of activities for underground applications including mine development, service installation, bolting and ventilation, also different type of underground support systems including cement and chemical grouting, production mining with long hole equipment and hauling, shotcrete applications and other underground civil works. GRUPO EMO´s focus on professional capabilities in safety and reliable operation and the continuous formation process of our staff, adds to our company´s inventory a steadily enlarged knowledge as well as personal attitude, loyalty and high quality standards, as the most important values we are transferring to our client.

GRUPO EMO has been the pioneer introducing professional underground construction in tunneling and mining in Central America obtaining a sound reputation for its professional engineering capabilities, development of human resources and total commitment to safe and secure working environment. GoldCorp and its local representative Montana Exploradora have recognize this kind of support and continues to contract additional tunnel construction with a full program of wire mesh and split set installation. We are also looking forward to serve as hauling contractor for the open pit re-naturalization program. We feel fortunate and proud to form part of the GoldCorp/ Montana family for the last eight years and we look forward to continue our successful cooperation in the future. E. info@grupoemo.com www.grupoemo.com

BE Mining | 35

“It took less than five years for Goldcorp’s Marlin Mine to produce its one-millionth ounce of gold” this day the company continues to have a positive impact on the lives of families in the area through the creation of increased health, economic, educational and social opportunities. Furthermore, of the mine’s

36 | BE Mining

1,905 workers, approximately 98 percent of these are Guatemalan residents. These employees operate each day knowing they are protected by Marlin’s stringent health, safety and environment rules and

Goldcorp - Marlin mine

Nursery environment

standards. Indeed, the safety culture one will find present at the mine has benefited hugely from countless successful safety initiatives that have been implemented throughout the years, including daily and weekly safety briefings, monthly inspections and ongoing training programmes. The mine also operates in full compliance with the environmental standards and regulations of Guatemala and to the mining industry guidelines as set out by the World Bank. Furthermore, Marlin adheres to the internal Goldcorp standards in order to

ensure that the highest level of environmental stewardship is achieved. Marlin’s Environmental Management System (EMS) is designed to promote continuous improvement in the environmental management of the operation. The EMS concentrates on four phases, those being policy and planning, implementation, evaluation, and review and Improvement. Of equal significance is the fact that Marlin holds the distinction of being the first mine in Central America to become fully certified under the International Cyanide

BE Mining | 37

Goldcorp - Marlin mine Management Code, which is recognised as the international benchmark for transporting, storing and using cyanide. However, long before any Goldcorp mine commences with production the company will have already put plans in place for its eventual closure and the subsequent reclamation of the land. The Marlin Closure Plan for the open pit and waste rock storage facility was approved by the Guatemalan Ministry of Environment and Natural Resources (MARN) in October 2012. Goldcorp’s wholly owned subsidiary, Montana Exploradora de Guatemala,

A local farmer

Everlife EVERLIFE is a Guatemalan firm with 10 years of experience, dedicated to provide consultancy and assessment, with the highest professionalism and quality, in environmental, social and business management issues. We are conformed by a multidisciplinary team of professionals with extensive experience in extractive industries, renewable energy and transmission and distribution of electricity, among others. Our reputation has given us the opportunity to serve some of the most important and largest companies and projects in Guatemala. We are proud to serve Goldcorp and to be able to contribute, through our services, to the sustainable development of mining activities in the country. One of our most important projects is the Environmental Impact Assessment study (EIA study) that was prepared for the Technical Closure of the Marlin Mine Open Pit, which was the first

environmental instrument of its kind analyzed and approved by national authorities. We have also worked on EIA studies for mineral exploration licenses and permits. Guatemala is a country rich in cultural diversity, conformed by 24 ethnicities and the same number of languages. This is a very important part of our expertise, due to the fact that in many projects there is a need to carry out the Public Participation Process with different ethnical groups at once. At EVERLIFE we know our business and we understand how vital this is for your investment and that´s why we offer integral solutions, supported with the use of top of the line technology and equipment, approved and recognized by international environmental agencies. E. flopez@everlifegt.com www.everlifegt.com

BE Mining | 39

T H E E X T R AC T I O N O F G O L D A N D S I LV E R With Guatemala having many valuable natural resources, Productos del Aire can highlight the extraction of gold and silver, among others.

M.Sc. Juan Ram贸n Pallais | Special Applications Advisory | Guatemala Air Products, Inc. Phone 2421-0400 Ext. 227 | jrpallais@productosdelaire.com www.productosdelaire.com

Goldcorp - Marlin mine

Mine entrance

submitted the corresponding compliance bond to the MARN in the amount $28 million on October 16, 2012. The closure compliance bond amount established with MARN will be adjusted according to actual conditions and as subsequent sections of the closure plan are updated, reviewed and approved by the MARN. Subsequent sections of the closure plane will be updated as required by the MARN. The geochemical, hydrological and geotechnical assessments required for the Tailings Impoundment Closure Plan was conducted during 2013, and a final plan is expected to be submitted to the authorities before the end of 2014.

Productos Del Aire De Guatemala The extraction of gold with cyanide seeks to convert insoluble gold in complex metal anions soluble in water. After being removed and crushed, the mineral is separated from the sludge by Elsner’s equation adding cyanide and oxygen. The “Elsner” chemical equation is: 4 4 Au + 8 NaCN + O2 + 2 H2O Na[Au(CN) 2] + 4 NaOH Cyanide is present as potassium, calcium or sodium cyanide and is essential to avoid gasification, because cyanide is highly toxic: HCN(g) NC-(aq) + H+(aq) Therefore, it is necessary to maintain an alkaline pH throughout the process. Calcium carbonates are added to keep alkaline water. After the gold extraction, the “water process”

has to be neutralized before download to the environment. Productos del Aire is making this neutralization applying gaseous carbon dioxide disolved in the “water process”: CO2 (aq) CO2(g) Which then reacts with the carbonates: Ca2+ (aq) + 2 CaCO3 + CO2 (aq) + H2O HCO3- (aq) And with water to create carbonic acid: H2CO3 (aq) CO2 (aq) + H2O Therefore, a simple application of CO2 gas bubbling in “water process” makes the water pH initially alkalines by the carbonates that reach normal levels without complicated mixtures of chemicals in the water. www.productosdelaire.com

BE Mining | 41

Industrial, Mining & Food Industry Since its formation in 1985, Grupo DISOSA has been dedicated towards the marketing of chemical products for the industrial, mining and food industry sectors, delivering the highest standards of products and quality of service. Grupo DISOSA is headquartered in the city of Guadalajara, Jalisco, Mexico and has branches in the Mexican states: of Baja California Norte, Chihuahua, Coahuila, Sonora, Zacatecas, Mexico City and in Guatemala in Guatemala City.

Contact Numbers: 52 (33) 3145-�0555 | 52 (33) 3881-�1270 Sales Management: alejandro.cota@disosa.com Mining Management Area: luis.escobedo@disosa.com


Goldcorp - Marlin mine

The processing plant

Another part of Marlin’s internal structure is its Sustainable Development department. It is this area of the business which provides resources and funds for community development initiatives in communities near the operation and along the access road to the mine through its Organizational Development Unit. Each project is designed, selected and implemented in conjunction with community

leaders and members. The Sierra Madre Foundation (SMF) is a Guatemalan foundation, funded by Goldcorp, which was formed in an effort to contribute to the development of neighbouring communities. Its mission is to assist with the planning and implementation of sustainable, community-based development and capacity building programs in San Miguel Ixtahuacán and Sipacapa.

“Successful exploration activities in the area surrounding the pit indicate the potential for extending the life of the mine” BE Mining | 43

Tilapia fish project

Goldcorp - Marlin mine

2,000 tonnes Of ore produced by Marlin’s underground operation every day In early 2012, open pit operations at Marlin ceased when the mining of the final, highergrade portion of the pit was completed. Today the mine is an underground operation only. Underground operations at the site employ mechanised cut-and-fill and long hole stoping mining, with underground loading equipment feeding haul trucks that transport the ore to the surface via ramps. Production from underground operations is roughly 2,000 tonnes of ore per day. This ore is processed in a conventional crushing, grinding and milling circuit. Marlin also has a tailing storage facility, a waste rock storage area and various ancillary installations. Despite open pit operations coming to an end, successful exploration activities in the area surrounding the pit indicate the potential for extending the life of the mine. The discovery of a bonanza grade vein, the Delmy vein, which is located near the Marlin deposit and within the existing mining area, will contribute significantly to the mine’s future production. For more information about Goldcorp - Marlin Mine visit: www.goldcorpguatemala.com

BE Mining | 45

46 | BE Mining

Alamos Gold

A track record to be proud of John A McCluskey, President, Chief Executive Officer and Director of Alamos Gold, discusses the secrets behind the company’s success and how its commitment to responsible mining has improved the lives of many

written by: Will Daynes research by: Peter Rowlston

BE Mining | 47

Pouring gold at the Mulatos Refinery

Alamos Gold


hen I look over the last two years, while I do see a highly problematic gold market, particularly for producers, I also see evidence to suggest that the long-term outlook is pretty good. Primarily this is because many of the underpinning reasons for the rise in gold price in the first place continue to exist, reasons like high degrees of sovereign debt.� Those are the words of John A McCluskey, President, Chief Executive Officer and Director of Alamos Gold. Having begun his career in 1983 with Glamis Gold, McCluskey would go on to hold senior positions in a number of public resource companies, founding Grayd Resource Corporation in 1996, and ultimately establishing Alamos Minerals. It was the amalgamation of Alamos Minerals and National Gold on 21 February, 2003, that gave rise to Alamos Gold itself. A Canadian-based mid-tier gold producer, Alamos’ core focus is to become a leader in the field of growing low-cost gold production, in financial performance and in delivering shareholder value. The company owns and operates the Mulatos Mine, located within the Salamandra Concessions in the Sierra Madre Occidental mountain range in the north western state of Sonora, Mexico. Acquired by the company in February 2003 for $10 million, Mulatos is a conventional open-pit, heap leach operation and is recognised as being one of the lowest cost gold mines on the planet. In addition to the Mulatos Mine, Alamos also boasts a leading growth profile with exploration and development activities not only in Mexico,

BE Mining | 49

Alamos Gold

Overview of Mulatos crushing circuit

but also in Turkey and the United States. Turning back to the topic of the gold industry as it stands today, McCluskey’s belief is that the current gold market is simply not sustainable. “If you look at average all-in sustaining costs of the industry today, which don’t typically take into account taxation, with gold trading around $1,250 an ounce there is simply not enough of a margin present to sustain the industry. The result

of this situation will ultimately be either a rise in the price of gold or a significant decline in gold production.” So given this outlook, how is it that Alamos is able to remain prosperous? “Where we have looked to make acquisitions we have always done so with the view of all-in sustaining costs being below $1,000 per ounce,” McCluskey continues. “This provides us with a much more comfortable margin than that

“The work of Alamos to provide a better quality of life for the communities living around its operations continues unabated” BE Mining | 51

Mulatos Crushing Circuit

which the typical industry producer enjoys and means we can effectively withstand a drop in the price of gold much better than such producers. It also means that our suite of projects exists as one of the lowest cost development pipelines in the industry and that is a very unique, strong position to be in, in anyone’s book.” The Mulatos Mine is some way removed from being a development asset, but its on-going success marks it out as being the flagship of Alamos Gold. “When we started operations at Mulatos in 2005, we had roughly nine years of production ahead of us, an

estimate calculated off the back of running at 10,000 tonnes of ore per day,” McCluskey highlights. “At that rate we should have run out of ore in 2013, however successful exploration and expansion programmes allowed us to ramp up production to 13,000, 15,000 and now 17,700 tonnes of ore per day, and now we anticipate having a further eight or nine years of mine life ahead of us.” A number of important factors have contributed towards the extension of Mulatos’ mine life. These include the fact that the ore body was not fully defined when Alamos began mining it and the fact that when the

“As a company, and an industry, we want to operate in ways that are environmentally sustainable” 52 | BE Mining

Alamos Gold

17,700 tonnes Of ore being produced daily at Mulatos

company conducted its first economic study on the mine the gold price stood at around $375 an ounce. As gold prices increased the company was then able to use lower cut off grade assumptions allowing for much more of the material it was defining to become part of its reserves. Furthermore, the Mulatos pit contains a variety of ore types, some of which wouldn’t have qualified as reserves at lower gold prices, but are now profitable. The Mulatos mine and its surrounding area is today very much a different place to that which Alamos first entered over a decade ago. Miles away from any built up modern location, Mulatos is a remote community that prior to 2003 was essentially cut off from the rest of Mexico and was a town lacking in transportation networks and other infrastructure. “Infrastructure has been one of the biggest things we have invested in since beginning operations here,” McCluskey enthuses. “A large sum of money went into the construction of 70 kilometres of road, from the pre-existing paved highway through several mountain valleys all the way to the mine itself.” Of course being a responsible mining company takes more than single gestures and to this end the work of Alamos to provide a better quality of life for the

John A McCluskey

BE Mining | 53

Mulatos Leach Pad Reclamation

Alamos Gold communities living around its operations continues unabated. In addition to providing support for a number of local elementary and high schools the company continues to pursue an aggressive scholarship programme that has to date sent dozens of individuals into higher education. The company is also responsible for building a medical support network from the ground up in the area. “Before we arrived in the area there was virtually no medical support for miles around,” McCluskey states. “In the event of an emergency people would face up to a six and a half hour drive to the nearest hospital. What we have done is establish a medical clinic at the mine, which has been delivering comprehensive medical care now for more than a decade. In addition we have provided funding for medicine for the local population, rebuilt and maintained 8 kilometres of piping to supply clean drinking water to the town of Mulatos and built a water treatment plant, significantly improving the water quality of the nearest natural water source to the community.” Alamos’ track record in delivering value not only for its shareholders but also local communities speaks for itself, and McCluskey believes that it is one that is widely replicated throughout an industry that should do more

Mulatos Heap Leach Pad

to defend itself against critics. “The basis of virtually every economy comes down to natural resources and their development, therefore the importance of mining cannot be overstated. While there have obviously been examples of environmental degradation in the past, I would say that the industry, especially in the 30 years that I have been a part of it, has had an exemplary record. As a company, and an industry, we want to operate in ways that are environmentally sustainable. I think this industry needs to make this point much clearer.” For more information about Alamos Gold visit: www.alamosgold.com

BE Mining | 55

56 | BE Mining


Producing and prospecting Banro Corporation’s recent achievement of production at its Namoya mine transforms it from a one-mine company with less than 100,000, to a two-mine company targeting more than 225,000 ounces of annual gold production

written by: John O’Hanlon research by: Richard Halfhide

BE Mining | 57



olitical uncertainty and the serious lack of infrastructure development have gone hand in hand to hold back the development of mineral resources in the DRC. We frequently cover gold mining projects in both West and East Africa that have been in development since the mid 1980s, however though it’s among the richest natural resource countries in Africa, the DRC seems to have lagged badly. At last the picture is beginning to change. Since the election of Joseph Kabila in 2006, and following the introduction with the support of the World Bank of a new mining code in 2003, the country has experienced a revival of interest on the part of both major and junior international mining and exploration companies. Meanwhile, the World Bank, the IMF, USAID, and the ‘Paris Club’ of major global economies, as well as the European Union and South Africa, have committed billions of dollars to social and economic recovery in the DRC. Nevertheless, the DRC continues to raise concerns among global investors who remain to be convinced their money will be safe there. However that has never been the view of the management of Banro, a Canadian gold company that started intensive mineral exploration in the DRC in 1996, starting out with a handful of experienced geologists from Ghana, Tanzania, and the UK assisted by a group of new graduates from the Bukavu Technical Institute. Within a few years, they had delineated over eleven million ounces of gold and identified 16 new targets for follow-up in the DRC’s eastern provinces of South Kivu and Maniema – surely one of the

BE Mining | 59

Banro most Banro successful featureexploration text to go of dolore et strike. magna This represented aliqua. Ut here... Lorem ipsum dolor sit enim ad minim veniam, programs in recent African less than 20 percent of quis this amet, consectetur adipisicing nostrud exercitation ullamco history. In a short period identified mineralised trend elit, sed do eiusmod tempor laboris nisi kilometre ut aliquiplong ex of time, Banro has become on the 210 incididunt ut labore Twangiza-Namoya gold belt in ea commodo consequat. an integral part etofdolore the emerging magna aliqua. story of UtCongolese enim ad the South and Maniema Duis auteKivu irure dolor in economic minim veniam, development, quis nostrud and provinces of the in DRC. To date reprehenderit voluptate an importantullamco exercitation partner laboris in the Banro esse has identified 10.18 velit cillum dolore social nisi ut fabric aliquipofexthe ea commodo country. million ounces of Measured eu fugiat nulla pariatur. consequat. The storyDuis started aute in irure 1996 and Indicatedsint resources, plus Excepteur occaecat when Banro acquired control Inferred resources cupidatat non proident, of sunt 7.01 dolor in reprehenderit in Stacking thethis heap pad in of the Twangiza and This is a caption is aleach caption million culpa ounces qui officia along deserunt this voluptate velit property, esse cillum during the year, highly-prospective mollit anim id estgold laborum. belt. dolore eu following fugiat nulla undertookExcepteur pariatur. a $9 million sintexploration occaecat cupidatat program Lorem ipsumthedolor amet,of consectetur Twangiza, most sit advance Banro’s four which non proident, included sunt10,490 in culpa line-kilometres qui officia deserunt of properties, first producing adipisicing became elit, sedBanro’s do eiusmod tempor mollit anim id est laborum. Lorem ipsum incididunt pit gold ut mine labore when et dolore it entered magna production aliqua. airborne geophysics, 1,613 samples from open 16 adits, dolor sit amet, and 8,577 consectetur drill core adipisicing samples from elit, in Ut October enim ad2011, minim commencing veniam, quis commercial nostrud 9,122 sed dometres eiusmod of core tempor drilling incididunt along 800 ut metres labore production exercitation in ullamco laboris2012. nisi ut With aliquip ex September mill

SLR SLR Consulting (SLR) is proud to be associated with Banro’s Namoya and Twangiza projects in the DRC. SLR was commissioned by Banro in 2009 to first site and then design a 170m high valley type Tailings Storage Facility (TSF). The challenges associated with this project were diverse and included the diversion of streams around the valley fill dam, sourcing of large volumes of suitable materials for massive earth embankment construction and the design of the embankment to ensure dam safety within the seismically active region. The principles of designing for ultimate closure in a safe and sustainable manner were incorporated in the design approach. The steep topography presented significant

challenges in terms of the design of access roads and stream diversions. SLR was commissioned by Banro in 2011 to prepare an ESIA for the Namoya project. SLR was also appointed for the design of the TSF, return water dam and related infrastructure. The brief included the specialist geotechnical investigation for the TSF, surface water management & flood risk assessments for the mine , geochemical studies to assess the pollution potential of heap leach materials, tailings and associated liquors and groundwater studies including contaminant transport modelling. www.slrconsulting.com

BE Mining | 61

Operates in 5 African Countries; Kenya, Tanzania, DRC, Zambia and S Sudan. locations Provides total fuel management solutions assuring control and quality.


Zambia. Commissioned Phase I of 50 MW . Total Capacity in 2015 will be 100MW. Signed PPA for 20 years. prudent practices reducing generating costs.


Creating Fuel Storage infrastructure of 80,000 m3. Providing High standards construction services for Fuel storage turnkey projects. Prudent Project Management practices. Application of Latest Construction & Design techniques


Banro throughput at full capacity of DALBIT / NECL / BSL 1.7 million tonnes per year, MOVING AFRICA FORWARD WITH Twangiza was projected to TOTAL ENERGY SOLUTIONS produce upwards of 10,000 Significant presence in Fuel supplies and logistics, Creation ounces of gold each month of Fuel Storage Infrastructure and venturing into providing with an expected mine life power solutions in the remotest locations to the Mining of seven to eight years from companies and other Infrastructure players in Africa. www.belgraviaservices.com currently-defined reserves. It is still working towards that level, having produced 22,858 ounces of gold in the fourth quarter of 2013, approximately ten percent higher than in the previous quarter last year. In all Twangiza produced 82,591 ounces of gold for the full year 2013. Banro’s President and CEO Dr John Clarke expressed his satisfaction with this result: “We are pleased with the progress made at Twangiza during the last half of 2013 and look forward to both increased throughputs and recoveries in 2014 following the enhancement project completion in Q1 of this year.” At this time it is a distinct advantage for any junior company to have even one producing and highly prospective property on its books. But now Banro has another. Its Namoya mine, at the southern end of the TwangizaNamoya gold belt in Maniema province and approximately 225 metres south west of

“We are pleased with the progress made at Twangiza during the last half of 2013”

Secondary oversize conveyor 12-CVR-05 belt

BE Mining | 63


Re-handling of crushed ore from the primary product stockpile to the heap leach pad

Bukavu, successfully began gold production This is a significant and exciting milestone with the pouring of the first 320 ounces on for Banro, said John Clarke. “We would like December 30, making it Banro’s second gold to thank our professional operations teams, mine to come into production in just over business partners, consultants, regional two years. Construction began at Namoya governments and the local communities for in the fourth quarter of 2012. Remaining assisting us in this significant achievement. building work will continue in step with We look forward to continued growth, new commissioning operations in business opportunities and the first quarter of this year, a long association with the while commercial production DRC”. The start of production is expected to be achieved at Namoya is also a before the end of June 2014. tremendous achievement for At full capacity, gold from the DRC, clearly signifying the Namoya mine is expected that the emerging mining to double the company’s nation is a place to find, projected gold production to finance and successfully Ounces of gold a rate of between 225,000 build new gold mines. delineated at Lugushwa and 240,000 ounces a year. In addition to Twangiza



BE Mining | 65

Plant make-up water dam and the heap leach pad

“We look forward to continued growth, new business opportunities and a long association with the DRC” and Namoya, Banro has two other key licensed projects, Lugushwa and Kamituga, and more than a dozen exploration targets including Ntula, Mufwa, Tshondo, Luhwindja and Kaziba. At Lugushwa a Measured & Indicated mineral resource of 1.13 million ounces of gold has been delineated, and an Inferred mineral resource of 4.48 million ounces of gold in close-to surface material, where the focus is on oxide resources. Exploration is continuing, with the objective of increasing the oxide resource and further plans include

66 | BE Mining

undertaking a scoping study. High level analysis of the Kamituga gold project was completed in 2009 and exploration drilling continued into 2012 to increase the confidence of the existing inferred mineral resource for this property to 0.92 million ounces of gold in the Measured & Indicated category. Banro does not subscribe to the view that the Congo is an intransigent place to do business. “We have quite a different view of working in this country, where we have found people eager to leave the troubled past behind


Heap leach ponds and pad

and build a future characterised by economic opportunity, social development and political stability,� says Martin Jones, Chairman of the award-winning Banro Foundation, which has been formally recognised in the DRC and Canada for its contributions to social and economic reconstruction in the DRC. One of the biggest challenges the company faced was to prove to the DRC government that it was committed to promoting social and economic development and to ensuring that mineral development significantly benefited local communities. After more than a decade of work, five key lessons have been learnt, he says. 1. Ongoing consultation and dialogue at all levels of society is absolutely critical to success in the DRC.

Plant site

2. Along with consultation comes the obligation to listen with great sensitivity and to follow through fully on commitments. 3. Mining companies wishing to work in the DRC must have a strategic and comprehensive commitment to community development. 4. Transparency is critical. 5. Job creation and on-the-job training must be No1 commitment. Under each of these heads the company has honoured its commitment in concrete terms – detailed in the Banro Foundation’s brochure, it is well worth reading. For more information about Banro visit: www.banro.com

BE Mining | 67

Breaking dow

Fresh into her role as general manager of discusses how Fortescue’s approach to bu workforce attracted her to the company, and

written by: Will Daynes |

68 | BE Mining

Fortescue Metals Group - Cloudbreak

wn barriers

the Cloudbreak mine, Julie Shuttleworth usiness and embracing of diversity in the d her goals and objectives for the years ahead

research by: Jeff Abbott

BE Mining | 69


think it is fair to say that Julie Shuttleworth recognises a great mining development when she sees one. For 13 years Shuttleworth was a part of Barrick Gold, working at various sites in Tanzania and at its Granny Smith mine in Western Australia where, in her role as general manager, she led a team of around 700 people. It was during her tenure at Granny Smith that she would also earn a number of industry accolades, including the title of Australian Mining mine manager of the year in September 2011 and being named among the top ten influential women in mining. “Having achieved a great deal during my time with Barrick, I reached a point where I wanted to look for a new challenge when it came to my own career development,” Shuttleworth tells me. “Fundamentally I was looking for an opportunity whereby I could be general manager of a larger mine site, and preferably one located in Western Australia.” Bearing the aforementioned criteria in mind, the opportunity to take on the role of general manager at Fortescue Metals Group’s Cloudbreak mine, located 89 kilometres westsouth-west of Nullagine in the Pilbara region of Western Australia couldn’t be more tailored made for Shuttleworth if it tried. It was with this opportunity on the table that she joined Fortescue Metals Group in October 2013. Cloudbreak was Fortescue’s first mine site, making its first iron ore shipment in May 2008. With a workforce of approximately 2,000 employees and around 1,000 contractors, the mine today processes some 40 million tonnes of iron ore per annum. This ore is prepared and refined within the screening, crushing

70 | BE Mining

Loading ore at Port Hedland

Fortescue Metals Group - Cloudbreak

40 million tonnes Of iron ore processed by Cloudbreak per annum

Train loaded with ore

72 | BE Mining

and desand plants based at the Cloudbreak ore processing facility before being stockpiled ahead of transport to port. Meanwhile the site’s train load out facility feeds up to 16,000 tonnes of ore per hour onto 2.7 kilometre long trains that make the journey along a custom built railway to unloading facilities based at Herb Elliot Port in Port Hedland. “My first impressions of Cloudbreak were very positive indeed,” Shuttleworth continues. “The first thing that strikes you is the highly positive energy around the place and the go-getting attitude. There is a major emphasis on team work, with everyone from all levels of the workforce keen to help one another. Fortescue as a business has always possessed a strong set of values based on concepts such as family, enthusiasm and empowerment, and those are clearly present at Cloudbreak.” Coming into the fold as general manager at an operating mine was always going to be a challenge in itself, with the most important thing being to hit the ground running and get up to speed with things as soon as possible. Therefore it was all the more important that Shuttleworth came into her first day in the job with a clear set of objectives for the mine. “One of the main objectives I have is to drive continuous improvement forward in the area of safety and health across the

Fortescue Metals Group - Cloudbreak

Nev Power, CEO, and Julie Shuttleworth, GM, in open pit at Cloudbreak

mine site,” she states. “That is a fundamental requirement for any general manager and I am working constantly with the whole Cloudbreak team, including leadership and safety representatives, to implement greater improvement across the business. The other area of focus for myself is the production side of the mine, particularly working with the processing department to optimise throughput of Cloudbreak’s ore processing

facility, while also handling a number of other important ongoing areas such as managing costs and so forth.” This is certainly a good time to be a part of the Fortescue family. In the last five years the group has undertaken a massive ramp up program, bringing online several other mines and thus increasingly the group’s total production volumes. This in itself is a huge achievement given the dip in price iron

“Fortescue as a business has always possessed a strong set of values based on concepts such as family, enthusiasm and empowerment” BE Mining | 73

Fortescue Metals Group - Cloudbreak Feature text to go here... sedDespite do eiusmod tempor ore suffered in elit, 2012. the pressure Lorem ipsum dolor sit amet, incididunt ut labore etsuccess dolore this created Fortescue’s ongoing consectetur adipisicing elit, magna aliqua. enimand ad once again highlighted that a Ut flexible minim quis adaptable business willveniam, invariably benostrud able to sed do eiusmod tempor incididunt ut labore et dolore exercitation weather challenging times. ullamco laboris magna aliqua. Ut enim ad ut aliquip ex ea commodo Fortescue alsonisi holds the distinction of being minim veniam, quis nostrud consequat. aute irure one of the biggest supportersDuis of Aboriginals in exercitation ullamco laboris Australia, leading the way the employment dolor in in reprehenderit in nisi ut aliquip ex ea commodo of Aboriginal people andvelit the esse contracting voluptate cillum consequat. Duis aute irure of Aboriginal run companies. Two months dolore eu fugiat nulla prior to Shuttleworth joining the business, dolor in reprehenderit in pariatur. Excepteur sint is a caption in August 2013,occaecat Fortescue announced it voluptate velit esse cillum This is a caption this cupidatat that non has reached its target of awarding $1 billion dolore eu fugiat nulla proident, sunt in culpa qui pariatur. Excepteur sint occaecat cupidatat in officia deserunt anim id to estAboriginal laborum. contracts and mollit sub contracts non proident, sunt in culpa qui officia businesses Lorem ipsum dolor by the endsit of amet, 2013, aconsectetur target that deserunt mollit anim id est laborum. Lorem had been setelit, in 2011 was achieved six adipisicing sed and do eiusmod tempor incididunt ut labore et dolore magna aliqua. First train fromsit Solomon ahead of schedule. ipsum dolor amet, mine consectetur adipisicing months

WÄRTSILÄ POWER PLANTS Wärtsilä Power Plants is a leading global supplier of power plants of up to 600 MW operating on various gaseous and liquid fuels. Our portfolio includes unique solutions for flexible baseload, peaking, industrial self-generation, reserve and load-following power generation, as well as for balancing intermittent power production. Wärtsilä Power Plants also provides LNG terminals and distribution systems. High efficiency of Wärtsilä engines, even in hot, high and dry conditions, results in substantial reduction in fuel consumption thereby improving profitability. Wärtsilä engines have high load acceptance capability, a feature which is required for starting of large loads in remote mining operations. Wärtsilä power plants

with multi-unit configuration provide high availability; units can be started and stopped according to load demand without impacting the maintenance schedule. Wärtsilä DualFuel (DF) engines offer fuel flexibility; DF engines operate on natural gas (with only 1% diesel consumption) but can switch to 100% diesel mode in the event of interruption in gas supply. In addition to the technical advantages, our fast track deliveries of complete power plants, together with longterm operation and maintenance agreements, provide our customers with complete solutions– in urban areas as well as in the most demanding remote environments. www.wartsila.com

BE Mining | 75

In the months since Shuttleworth entered the general manager’s office at Cloudbreak these efforts have continued with January 2014 seeing Fortescue reach the $1.5 billion milestone, a feat it achieved by awarding a further 145 subcontracts to Aboriginal businesses. “Fortescue recognises the importance and great benefits gained from employing Aboriginal people and subcontracting work out to their businesses,” Shuttleworth enthuses, “ Fortescue has always believed in

the benefits of having a diversified workforce, one made of up of men and women who can bring different backgrounds, experience and ideas to the table.” At the end of January 2014, 525 employees of Fortescue were Aboriginal, 13 percent of its total workforce, while a further 450 were employed by contractors. More than 250 of Fortescue’s Aboriginal employees living in the Pilbara region also receive housing assistance. Since 2006, Fortescue has had in place a

“Fortescue recognises the importance and great benefits gained from employing Aboriginal people and subcontracting work out to their businesses”

VTEC Aboriginal graduation in Port Hedland

76 | BE Mining

Fortescue Metals Group - Cloudbreak

Cloudbreak OPF and product stockpiles

Vocational Training and Employment Centre (VTEC) in South Hedland and established a second centre in Roebourne in 2010. Together, they have assisted more than 1,000 people. Fortescue’s VTECs aim to break down employment barriers for Aboriginal people, identifying job opportunities within Fortescue and its contractors, and then developing courses in partnership with various training organisations to equip people with the right skills. All successful graduates from the program are guaranteed a job. An average of 150 – 200 Aboriginal people graduate from Fortescue’s VTECs every year, the vast majority of whom are local Traditional Owners.

Environmental awareness is another big theme within the group, understandably given the remote nature of its operations. As well as having reclamation and waste material programs in place, arguably the most important area of importance at Cloudbreak comes in the form of water management. “When mining a resource like Cloudbreak one of the things you need to do is pump out the groundwater within and around a pit before you can mine it,” Shuttleworth says. “Rather than this water being lost, we transfer the pumped out groundwater into a nearby aquifer downstream from the mine itself. Fortescue’s managed aquifer recharge

BE Mining | 77

Excavator loading truck at Solomon mine

Fortescue Metals Group - Cloudbreak system is called Papa Warringka, which is Nyiyaparli for ‘water in the ground’ has been operational since 2008 at Cloudbreak and since 2011 at the neighbouring Christmas Creek site. As well as conserving valuable brackish water it also helps to mitigate environmental impacts associated with surface discharge and groundwater level drawdown. Such has been its success that the innovation was awarded with the International Water Association’s prestigious Global Innovation Award for Water Management and Infrastructure. Turning back to Shuttleworth, I ask her what her goals are for the rest of 2014 and beyond. The response is instant and shows a clear strategy in place that will help shape the immediate future for the Cloudbreak mine. “In addition to ensuring we continually improve our safety performance and field leadership within our workforce, I also want this to be the year we increase throughput and reliability of the ore processing facility, reduce our operating costs through various initiatives and increase our own Aboriginal work force from 200 to 300 individuals,” she concludes. “From a longer term perspective it is about looking at optimising grades of material we send to ore and reduce what we send to waste. In doing so we will not only increase efficiencies across the business, but ultimately extend the life of mine as well.” For more information about Fortescue Metals Group - Cloudbreak visit: www.fmgl.com.au

BE Mining | 79

Essar Steel Minnesota LLC (ESML)

Pellet perfection Essar Steel Minnesota LLC (ESML) is edging closer to the completion of a state-of-the-art open pit mining, concentrating and pelletizing plant within the best known region for iron ore in the United States

written by: Will Daynes research by: Peter Rowlston

BE Mining | 81

Essar Steel Minnesota LLC (ESML)


iscovered in 1866, the Mesabi Iron Range is the chief deposit of iron ore in the United States. Located in northeast Minnesota, within a jurisdiction which has long boasted a track record of successful mineral developments and operations, it is a vast deposit of the mineral that was extensively mined throughout the early part of the 20th Century through to the late 1960s, when natural ore reserves were depleted. It was at this time that Butler Taconite, a company jointed owned by the Inland Steel Company, Wheeling-Pittsburgh Steel Corporation and Hanna Mining Company, developed a taconite mining operation at the site, which allowed it to commence operations in 1967, producing high-quality pellets until May 1985. The closure of Butler Taconite resulted in the property being reclaimed and the plant dismantled. In September 1996, Minnesota Iron & Steel (MIS) was registered as a corporation with the goal of reopening the mine site and constructing a whole new facility, not only as an iron pellet producer but also as a direct reduced iron and electric arc furnace steelmaking facility. It was in 2004, that the project was reactivated by Minnesota Steel Industries (MSI), a company formed by one of the major stakeholders of MIS. A feasibility study was prepared in 2007, and environmental permits were granted for a 4.1 million tonnes per annum pellet plant (MTPA), a 2.8 MTPA direct reduced iron facility and a 2.5 MTPA electric arc furnace. Subsequently, in October 2007,

BE Mining | 83


Designed & Manufactured

Ingenuity in Hydraulics

Telephone: 1/-51

Abacus Hydraulics Ltd., pioneer of hydrostatic mill inching drives has since its foundation in 1969 designed, and manufactured over 1000 systems now operating in plants around the world. Abacus drives are custom built and can suit any specifications. The available torque range is unlimited and virtually fits any high torque low speed requirements for mining equipment. The drives are equipped with the exclusive TORFLEX速 gear type coupling which has been specifically designed and developed by Abacus Hydraulics Ltd.

TORFLEX速 is a registered trade mark of Abacus Hydraulics Ltd.


d by Abacus Hydraulics Ltd.


14-620-3113 | Email: info@abacus-hydraulics.com | www.abacus-hydraulics.com

Abacus Hydraulics Ltd., is since 1989 also a leader in the design and manufacture of roller screen pellet classifying systems. Abacus roller screens are equipped with several unique features, are custom built to suit any specifications and are available in a variety of configurations which can meet any project requirements. The roller screens are made of high quality components for reliable and long life operation with special emphasis on easy serviceability and safety.

ABACUS HYDRAULICS LTD The mining industry with its wide range of drive requirements and changing process methods is always seeking more reliable, efficient and versatile drive systems. A Canadian company, Abacus Hydraulics Ltd. is since 1969 meeting this challenge every day. Abacus is custom designing and manufacturing high torque drives and special mining machinery for mines around the world. The Abacus high torque drives have proven their reliability in grinding mill inching drives, apron feeders, thickeners, conveyors and hoists to mention only a few. The drives are custom built and can suit any specifications. The available torque range is unlimited and virtually fits any high torque low speed requirements for mining equipment. The innovative approach of Abacus Hydraulics Ltd. allows the company to supply equipment with unique features which improve safety, reliability, operation and serviceability of the systems. All drives are available with the exclusive TORFLEXÂŽ gear type coupling designed and developed over 30 years ago by Abacus. The ease of engagement, high degree of misalignment tolerance and low cost make this

86 | BE Mining

coupling ideal for many mining applications. Since 1989, Abacus Hydraulics Ltd. is also a leader in the design and manufacture of roller screen pellet classifying systems used for sizing and conveying of iron ore pellets in pelletizing plants worldwide. Abacus Hydraulics Ltd. has always been receptive to evaluate and develop new systems to fill the customer’s requirements. Abacus has also successfully designed and manufactured other type of systems such as lubrication systems for large hydrostatic bearings of grinding mills and brake systems for down hill conveyors and other applications. A highly competent and dedicated team of employees permit the successful handling of the projects and product support. The company has constantly and steadily grown over the years. During the summer of 2013, the company consolidated their offices and plants to a new facility in Pointe-Claire, Montreal, QC, Canada. This expansion now allows higher production capacity, reduced manufacturing costs and delivery times. E. info@abacus-hydraulics.com www.abacus-hydraulics.com

Essar Steel Minnesota LLC (ESML)

“The company ensures that it achieves continuous improvement in health, safety and environmental performance by creating a culture of employee ownership� Essar Steel Holdings acquired the fullypermitted project from MSI. Essar Steel Minnesota LLC (ESML), a wholly-owned subsidiary of Essar Resources Inc., can today be found building a state-ofthe-art open pit mining, concentrating and pelletizing plant at the site. This undertaking began life as a greenfield pellet plant project in northern Minnesota, on the western end of the Biwabik Iron Formation, with a 19,000acre project boundary, of which 4,360 acres are mineral lease land. ESML has measured and indicated mineral resources of approximately 1,768 million

metric tonnes of iron ore as well as inferred mineral resources of approximately 201 million metric tonnes of iron ore. Construction and development of the project commenced in October 2010, with ESML expecting operations to commence in the fourth quarter of 2014, ramping up to an annual production capacity of seven MTPA in quarter three of 2015. All of the required Federal and State regulatory permits and approvals for the seven MTPA pelletizing capacity have been received, while permits and approvals for 1.8 MTPA of direct reduced iron (DRI) and 1.5 MTPA of electric arc furnace based steel are

BE Mining | 87

Adyard Abu Dhabi LLC P.O. Box 7604, Mussafah, Abu Dhabi, UAE Email: adyard.abudhabi@topaz-engineering.com Tel: 02-5547722 Fax: 02-5546767

Nico International Hy PO Box 2978, Fujair Email: fab.fuj@topaz-eng Tel: 09-2249400 Fax: 0

Contact: Tony McKay, Managing Director | William Duff, Sales Director | www.topa

ydrospace rah, UAE gineering.com 09-2249504


QUALITY AND DELIVERY The project is for the fabrication, pre – commissioning and load out of Jackets, Piles, Conductors and Deck Structures for the C – 26 cluster & B1731-B Well Platforms of the Oil & Natural Gas Corporation of India, which is total of around 10,000 MTS. Topaz Oil and Gas Limited Topaz Oil & Gas (TOGL) is a reputed U.A.E based experienced service provider to Oil and Gas Industry. Operating out of facilities in Abu Dhabi (Adyard) and Fujairah (Nico International Hydrospace), the business is engaged in offshore and onshore construction across the UAE, and for global clients in the oil and gas, utilities and ports industries. • 140,000 m2 of fabrication area in Abu Dhabi & Fujairah with extensive water frontage • Over 35,000 tons and 360,000 in/ dia capacity per year The ISO 9001:2008, ISO 14001-2004, ISO 18001:2007 and ASME & API certifications ensure our delivery to internationally recognized standards of excellence. Our Services: • EPC Turnkey Projects both Onshore and Offshore. • EPC Turnkey Projects for Tanks and Terminals. • Fabrication and Construction Services for Jackets, Topside, Modules, PARs and PAUs, Exotic Piping, Pressure Vessels, Columns, Heat Exchangers, Separators etc. • Maintenance Services such as Shutdown Support; Valve, Pump, Motor and Generator Refurbishment; Machining and Calibration of Instruments • Rig Repairs both On-float and alongside

Trusted Partner Since 1961

Streamline the Relining Process with PaR Mill Liner Handlers

Reline faster and easier:

:::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::: :::::::::::::::: : B::: ::: ::::::: :x::::: ::::::: ::: :::::: ::::::: ::: ::::: : V::::::: ::::: :::::::: : ::: :::: ::::: ::::::: ::::: ::::::::

Designed for safety:

:::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::: : :: : : : :::::::::::::::::::::::

Contact Us: Dennis DesMarais

ssssssssssssssssssssssssssssssssss sssssssssssssssssssssssssssssssss sssssssssssssssssssssssssssss

inspired Your weekly digest of business news and views


Essar Steel Minnesota LLC (ESML) also in place. Project financing is fully committed for the Since 1961, PaR Systems has been designing and installing commissioning of 4.1 MTPA mill liner handlers world-wide. Whether your grinding mill pelletizing capacity, while is a large ball or rod mill, semi-autogenous or autogenous, obtaining additional project or an existing mill with limited access, PaR has a solution financing for the incremental that can meet your specific requirements. Each is built with 2.9 MTPA is in process. features that enhance the relining process, making it faster, easier, and safer. Your Mill Liner Handler will be delivered ESML possesses the fully operational within 12 months. The knuckled boom and flexibility necessary to its 360-degree rotation means you can reline both sides of produce standard, fluxed the mill without repositioning. and direct reduction grade www.par.com/industrial/mining pellets. The company’s aim is to be one of the lowest cost producers of said pellets in North America by utilising the ore body characteristics of its location area and the significant technological improvements that have occurred since the building of the last pellet plant in the US in the 1970s. Strategically located alongside multiple access points to a first class ground transportation infrastructure the company is perfectly placed to serve the North American market, while multiple vessel options in its vicinity give it access to the international seaborne market. The nature, location and scope of the mine itself allows for less capital equipment to be employed in mining operations, a factor that

PaR Systems

1,768 million tonnes ESML’s measured and indicated mineral resources of iron ore

BE Mining | 91

is expected to result in significantly reduced operating costs over time. The short haulage distance from the mine to the coarse crusher also provides significant operational costsavings. Ultimately the plant will feature a two-stage crushing circuit, which will increase mill throughput, as compared to a single mill operation. Moreover, transporting the slurry via pipeline will provide the ESML with substantial cost savings over rail and road transportation. The project site will also have a slurry storage capacity of 60,000 tonnes, which is intended to reduce process interruptions. ESML carries with it a steadfast belief that through a combination of teamwork, training, communication and shared responsibility, it can maintain a workplace free of injury, illness or environmental incidents. Most importantly, the company ensures that it achieves continuous improvement in health, safety and environmental performance by creating a culture of employee ownership. To that end, it strives to involve employees at all levels of the organisation in the creation of policies and procedures and seek to ensure that any issues are resolved in a timely manner at the appropriate organisational level. Before a company can develop and operate a mine in the state of Minnesota it must first

complete an Environment Impact Statement or Study, before then obtaining the appropriate environmental permits and approvals which grant permission for the construction and operation of production facilities, as well as the final reclamation of the mine site. Accordingly, ESML has obtained all of the necessary permits and approvals to increase pelletizing capacity to 7.0 MTPA. A supplemental Environmental Impact

“ESML realises it also has a responsibility to give back to the community that supports it in many ways� 92 | BE Mining

Essar Steel Minnesota LLC (ESML)

Statement for a 7.0 MTPA iron ore pellet plant was approved by the Minnesota Department of Natural Resources on December 29th, 2011 after undergoing a public review process. In addition the company obtained a Permit to Mine from the Minnesota Department of Natural Resources on April 17th, 2012 and an air permit from the Minnesota Pollution Control Agency on May 10th, 2012. Furthermore, the company has engaged environmental consultants to evaluate the increased capacity envisioned in Phase II of the project. The environmental review and permitting process for the additional capacity will involve the preparation and submission of a further Environmental Impact Statement, as well as the amendment of all of the current environmental permits.

ESML realises it also has a responsibility to give back to the community that supports it in many ways. The company’s employees can regularly be found volunteering their time, and making financial contributions, towards various initiatives including local programmes United Way and Food Shelf, and towards local schools, universities and hospitals. In addition to these, ESML’s employee driven Community Connections Committee coordinates vital outreach efforts to several of the region’s leading non-profit organisations. For more information about Essar Steel Minnesota LLC (ESML) visit: www.essarsteelmn.com

BE Mining | 93

94 | BE Mining

Weatherly PLC

The making of a copper company Weatherly plc’s Tschudi open pit project, producing pure copper cathodes on site in Namibia, is the focus of its next stage of growth: the project will produce 17,000 tonnes of copper per year over an eleven year mine life, and will take Weatherly from a small to a medium sized mining company

written by: john o’hanlon research by: jeff abbott

BE Mining | 95

Weatherly PLC


hen Rod Webster a substantial dividend to our long suffering established his company shareholders!” says Webster. Weatherly in 2005 he That was the turning point for Weatherly. and his partners had Copper had rallied to more than $9,000 and been casting around since then Otjihase and Matchless have been for that elusive beast, a company-making the core of the company, though they were project. When some assets he had acquired never going to be the company maker he was in Zambia turned out not to be it he shifted looking for. “They made a lot of money in his attention to Namibia, acquiring the assets 2011, and though the price of copper meant of a struggling local copper producer called they did not generate as much the second Ongopolo in 2006. In July that year Weatherly year it was still enough cash to allow us plc was admitted to London’s AIM market, to develop the next step.” These assets, he and since then has been focused on Namibia. explains are a means to an end: they will Ongopolo had four small underground continue to produce for perhaps another mines and a smelter that it had decade, generating cash as acquired out of liquidation long as copper prices hold, but they are not Weatherly’s from Goldfields, but this main game anymore. was a financially unstable That lies further north company in urgent need of at Tschudi, not the old recapitalisation, something Operational workforce underground pit but a Weatherly provided, to the at Tschudi tune of $20 million. It got the surface asset that will be mines going, achieving record transformational for the production levels by 2008 when a rethink was company. A bankable feasibility study carried prompted by the collapse of copper prices to out in 2012 returned an expected net present under $3,000 a tonne. By the end of the year value (ENPV) at well over $100 million even action had been taken to cease mining at all at a price of $5,800, well below today’s price four underground operations, only keeping level on the metal exchanges in the region of the smelter at Tsumeb, 450 kilometres $7,000 a tonne. “What we like about Tschudi to the north of the capital Windhoek, is that it is a straightforward open pit,” operating on a tolling basis. enthuses Webster. “At this moment it has a In 2010, wishing to raise the funds needed bottom at 200 metres depth, and in that we to reopen the two most viable underground have a reserve of two million tonnes at just pits, Otjihase and Matchless both located close under one percent copper.” to Windhoek, Weatherly sold the smelter to This is a relatively modest grade for an Dundee Precious Metals for $55 million and open pit, he explains, but it is very high raised a further $7 million. “That gave us the grade when you take in to account that the funds to recapitalise the company and pay processing is via heap leach solvent extraction


BE Mining | 97

ASPIRING FOR EX SHALI Mining provides surface and underground mining expertise and services to the mining industry. The deposit is mined on behalf of the client/licence holder and the final product is delivered at the most economical unit cost. SHALI Drilling company provides exploration and water well drilling with well equipped and highly skilled personnel. We can do diamond drilling as well as RC drilling with a fleet of drilling rigs.

Shali Group Holdings (Pty) Ltd | POBox: 11808 Klein Windhoek Namibia | Tel: +264 61 239 515 | Fax: +


+264 61 239 516 | E-mail: PA@shaligroup.com | www.shaligroup.com

SHALI GROUP HOLDINGS (PTY) LTD OUR OPERATIONS Shali Mining (Pty) Ltd was established in 2010 and is a contract mining company. Since inception we have grown and diversified our client base and provide surface and underground mining services to a number of clients in the mining industry. We currently employ 277 people and have build up sound experience as a mining contractor; experience that we believe will propel us to the next level. The sole shareholder Wilhelm Shali founded Shali Mining (Pty) Ltd. Wilhelm Shali has a strong entrepreneurial background and is continuously looking into new developments in the mining industry to ensure that we give our clients an experienced, equipped and innovative service. Our aim is to deliver underground and surface mining services that are safe, cost effective and performance-oriented. We invest in developing

100 | BE Mining

our fleet and people to produce smarter solutions and a faster response time to meet client needs. Our fellow subsidiary, Shali Drilling provides a full range of drilling and related services through two key divisions, mineral and water well exploration. Diamond drilling, RC drilling is also part of our portfolio. The two companies complements each other and together we aim to provide a complete outsourced solution to our clients. Our efforts to implement and drive sustainable local economic development have allowed us to fulfill our corporate social responsibilities within our communities through positive participation. The project that we support involves agriculture development within the local community.

Weatherly PLC

We provide product, tools and training to the communities where we operate. Our team: Wilhelm Shali, a Mechanical Engineer is the Managing Director of the Shali Group Holdings (Pty) Ltd. Wilhelm Shali has started a number of companies and has a proven track record as an entrepreneur. Jenny Comalie the CEO has joined the Shali Group Holdings (Pty) Ltd recently. Ms Comalie is an entrepreneurial professional with more than fourteen years of experience in strategy development and implementation and Financial Management.

Lawrence Madziwa is the Group Mining Engineer and holds a Masters in Mining Engineering, Mr Madziwa has 17 years experience in the industry and work in various fields in the mining industry.

SHALI Group Holdings (Pty) Ltd. Head Office Ballot Street, No. 6 Western Square Building, 1st Floor, Windhoek +264 61 239 515 +264 61 239 516 E. PA@shaligroup.com www.shaligroup.com

BE Mining | 101

Weatherly PLC and electrowinning (SW-EX), Basil Read a method that accounts for 20 Basil Read continues to prove its opencast mining percent of world production. capabilities through a range of medium and long term key This type of processing plant projects across Africa. is not one that calls for the Basil Read offers clients innovative yet practical solutions acquisition of any long-lead to the most challenging contracts and has left its mark on capital equipment. “It is nearly projects such as the Debswana Jwaneng Mine in Botswana, the De Beers Venetia Diamond Mine in South Africa and all a matter of earthworks, Rossing Uranium Mine in Namibia. piping and pumps. 95 percent The Mining division has become the mining specialist of of the materials needed for it choice for projects across Southern Africa. Through its are going to be purchased subsidiary B&E (Blasting & Excavating), it offers clients from South Africa.” an innovative, yet practical approach to even the most From being something of an challenging projects and has developed an unblemished uphill slog, the project looks safety record and a well-earned reputation for meeting the most stringent requirements. set fair for rapid development Basil Read Mining boasts an exceptional safety record, since securing full development specialist technical skills and a solid civil engineering funding of $91 million from background. Orion Mine Finance. “We are www.basilread.co.za up and running now,” says Webster, “and should see the first copper produced by the Tschudi mine in the second quarter of 2015.” That means a busy 16 months ahead, he admits, while stressing that the project has not stood idle in the year since the feasibility study was completed. All of the major contracts have been agreed, and the schedule agreed whereby the mining contractor Basil Read will start work in the first quarter of next year. The crushing and agglomeration plant and the first leach pads to be built by B&E International using $18 million of its own funds will be commissioned in the fourth quarter. Power supply has been agreed with NamPower and a long-term acid supply agreement with Protea Chemicals. The SW-EX plant will be the last major element to be completed ahead of production in 2015.

BE Mining | 103

The fact that this is a depressed time for the mining industry in general has played to Weatherly’s advantage, he points out: “All the big overruns occurred when the market was bullish. People had so much work that projects usually ran over in time and money. Now we have the opposite, a situation where we are finding that the smaller packages are coming in cheaper and under time because people are short of work.” The market conditions have enabled Weatherly to strike deals that reduce the project risk significantly. The main contract, a $61.5 million EPC arrangement with Logiman, is of especial interest. It is a fixedprice arrangement that is something of a hybrid that allows the mining company to approve all design elements and key subcontracts in exchange for a deal whereby Logiman can rake back 60 percent of any saving it is able to make on the headline cost. “I would be very surprised given the way we have structured this huge incentive if it does not come in under time and under money!” “We have laid off a lot of the risk to people who have enormous horsepower and capability in the industry,” Rod Webster concludes. “We are really just left with running the process plant, and in that respect we are in quite good shape in terms of the

skills we need. Namibia already has three or four similar processes running in its uranium mines, and Scorpion Zinc is a SX-EW plant for zinc, where the process is not dissimilar.” The mine will have a life of eleven years, with the process plant carrying on for a further four to deal with copper remaining in the heap. Additionally there is sound potential for extension and even going underground

“We have laid off a lot of the risk to people who have enormous horsepower and capability in the industry” 104 | BE Mining

Weatherly PLC

if copper prices permit. The Namibian government and the Chamber of Mines have been particularly helpful, he adds. But then this is a big project even for this miningfriendly administration. 500 people will be employed at Tschudi during the operational phase, 800 during construction, and the economy will benefit mightily. Weatherly will stick to its last, eschewing fancy social projects. “We are in the business of making a profitable mine, employing people and delivering value to shareholders and the government. Copper creates a lot of value downstream too. It is a stimulus to the whole fabric of the country. So we won’t be involved in farming projects – they are a total distraction and mining

companies usually make a mess of them!” Tschudi presents quite enough challenge for the moment. Rod Webster sums up the present state of his company thus: “We successfully secured our position with the underground mines: Tschudi takes us to being a 20-25,000 tonne copper producer, so we are now a medium size company with the momentum to move up yet further.” He will be keeping his eye on the many copper projects with potential for turnaround being divested by the majors. For more information about Weatherly PLC visit: www.weatherlyplc.com

BE Mining | 105

106 | BE Mining


Servicing South and Central Africa An independent geological and environmental consultancy and contracting group, GeoQuest has been a principal supplier of vital services for some of Africa’s more prominent developing nations for the last 14 years

written by: Will Daynes research by: Candice Nice

BE Mining | 107

Geological mapping



aving previously worked as a professional exploration geologist in Eastern Europe, Australia, and Central and Southern Africa for a number of leading mining and exploration companies, including Tesla, KGHM, Rio Tinto and Caledonia, it was in 1999 that Julian D. Green founded GeoQuest. A Chartered Geologist, Mr Green is qualified under the Australasian Code for the reporting of exploration results, mineral resources and ore reserves (JORC Code), and under the Canadian National Instrument 43-101, SAMREC and PERC codes to be a ‘competent or qualified person’ capable of preparing public reports on exploration results. Prior to his founding of GeoQuest, Mr Green held the role of Exploration Manager for Caledonia Mining Zambia Limited and was responsible for not only its day to day operations, but also for the supervision and liaison of joint venture projects with the likes of Cyprus Amax Zambia Corporation and BHP/Motapa Diamonds Inc., Dunrobin Mining Limited in Zambia and Gecamines – SODIMICO within the Democratic Republic of Congo (DRC). “When Julian established GeoQuest in 1999 in Zambia, it was to provide a dedicated service to the mining industry based in Zambia initially, where at that time there were no other service providers active in the country which offered a package including exploration and logistics services,” Managing Director of GeoQuest SARL Tobias Posel explains. Made up of a dedicated core team of Zambian and DRC based professionals, GeoQuest has grown in the last 14 years

BE Mining | 109

into a fully independent consultancy and contracting group with offices in Zambia, DRC and Zimbabwe. In that time the company has worked throughout Central and Southern Africa in countries including Botswana, Gabon, Congo/Brazzaville, Malawi, Mozambique, Namibia, Tanzania and Uganda. During its early years based out of its Lusaka office the company conducted

localised projects in the fields of mineral exploration and groundwater management. It was then in 2004 that GeoQuest embarked on its expansion into the DRC, establishing offices in Kolwezi and Lubumbashi, from which it began taking on work on projects both there and in neighbouring countries. In the meantime the company continued to develop and increase the capabilities available at its Lusaka office with the addition

“GeoQuest has grown in the last 14 years into a fully independent consultancy and contracting group with offices in Zambia, DRC and Zimbabwe�

GeoQuest field vehicle

110 | BE Mining


Weighing samples

of its Geographic Information “Today we have ten Systems (GIS) department in geologists based in Zambia, 2006 and its Environmental a further four in the DRC Services division in 2008. and around 50 additional Regardless of the country in permanent staff across The year that Julian D. which its activities are taking the business,” Mr Posel Green founded GeoQuest place GeoQuest remains continues. “This latter figure committed to providing high increases dramatically quality and cost effective during the dry season to technical and logistical solutions for clients sometimes well over 200 people. We operate in the mining and mineral exploration, two offices out of Lusaka and Lubumbashi, environmental and hydrogeological sectors. boast a combined fleet of 20 off-road vehicles It achieves this through the deployment of and possess camping gear, GIS equipment, select, hands on, multi-disciplined teams a large data library, four XRF analysers or individuals, including geoscientists and and other equipment. Furthermore, we are technicians tailored to meet the particular using the latest IT systems in the field of requirements and needs of each client. communications and data management, using


BE Mining | 111

Bulk weigh

“I would strongly advise any new investor planning to operate in the DRC to always seek the guidance of an experienced and well reputed, locally based company” GIS software and the aforementioned XRF tools to gather and process data in the field, as well as utilising the newest geophysical and remote sensing methods.” Zambia as a country remains a hugely important market for GeoQuest, while the DRC, particularly the Katanga and Kasai Provinces are of particular significance as

112 | BE Mining

the company continues to enhance its core offering and also build up its environmental and logistics services in the country. “To this day we remain the only provider of exploration services to be based within the Katanga Province in the DRC,” Mr Posel states. “Our current aim is to be working for between three and five


Core cutting

different large clients in the country this year, with our principal activity being the carrying out of practical technical services in the field, services such as geochemical soil sampling, sample preparation and analysing, camp building and management, geological mapping and the management of drilling programmes.” As far as the company’s plans for the rest of 2014 are concerned, GeoQuest aims to also become ever more active in Gabon and in Brazzaville, the capital of the Congo. Mr Posel’s final thoughts however refer back to the DRC and his advice for those potential clients looking to establish operations in the country.

RC drilling

“I would strongly advise any new investor planning to operate in the DRC, particularly its mining sector, to always seek the guidance of an experienced and well reputed, locally based company. In approaching such companies one will always be better poised to avoid the difficulties and pitfalls which can arise when setting up here, giving one more time to concentrate on how to capitalise on the opportunities that exist.” For more information about GeoQuest visit: www.geoquest.co.zm

BE Mining | 113

114 | BE Mining



exact solutions In expanding its value proposition, EXSA is positioning itself to remain as influential to Peru’s mining sector as it has been for the last six decades

written by: Will Daynes research by: Abi Abagun

BE Mining | 115



ounded in 1954, EXSA Peru is reuse of waste oil in blasting, elimination today part of Breca, the leading of red fumes from blasting operations and economic group in Peru, and is so forth. To achieve this we have invested the country’s leading provider of heavily in technological innovations, while rock fragmentation solutions to the at the same time deepening the expertise mining and construction industries, with more and development of our staff through than a 50 percent market share. The company’s comprehensive training. Furthermore, we are market leadership is reflected in both its introducing automation into our production recent sales growth and its earnings before processes in order to improve our existing interest, taxes, depreciation and amortization safety critical processes.” (EBITDA). Over the last five years EXSA’s sales In order to provide its customers with have increased by an average of 23 percent per the best solutions EXSA took the decision to year, while in the same period its EBITDA has segment its market according to the type of seen more significant growth of approximately operation carried out by said customers. These 25 percent annually. segments include open pit It has become such through mining, underground mining, is pioneering development quarries and construction and commercialisation of a companies. Among its open wide assortment of products pit customers are the likes i nc ludi ng dy na m ites, of Antamina, Yanacocha, The year EXSA cartridged emulsions, ANFO, Goldfields, HudBay and was founded bulk emulsions , ammonium Southern Copper, while when it nitrate and a full range of comes to underground mining initiators. The sales of the aforementioned they include Buenaventura, Volcan, Hochschild products are in turn boosted through the Mining, Minsur, Horizonte and Marsa, and in providing of technical assistance and training the construction market customers include services centred on the proper selection, safe Graña y Montero, Odebrecht and others. With no real substitute available on handling and use of EXSA’s products. “Utilising our 60 years of experience,” the market to match the volume of rock states CEO, Karl Maslo, “we have recently fragmentation it creates, it is understandable been modifying our focus and market why wide-scale mining today remains virtually orientation, expanding our value proposition impossible without the use of explosives. Over to our customers from products and the course of its six decades of existence, EXSA operational services to tailor made solutions, has proudly retained a reputation for not only which we have called “exact solutions”. Such the quality of its products, but also for its solutions include the construction of powder attitude towards safety. magazines and nitrate storage facilities, “At EXSA we recognise the high level of risk as well as conducting secondary drilling, that is linked to our activities and therefore


BE Mining | 117

EXSA Peru we have made it our mission to ensure that the concept of safety runs through our DNA,” Maslo continues. “Our level of safety awareness is such that each year our annual celebration schedule includes the EXSA Safety Day. This day represents the only date, other than official holidays of course, that the company puts work on hold in order to commit the day towards allowing all of our employees and collaborators to be trained in and strengthen their already comprehensive knowledge of safety.” The contribution of said people to the

success of the company of course has to be recognised, the level of which stems from their enjoyment and satisfaction of being a part of EXSA. “The commitment of our people is reflected in the high score we obtained in a recent Great Place to Work study, which makes EXSA the highest rated explosive company for employee satisfaction in Peru,” Maslo says. “On the subject of awards it was last year that we also received Class A certification from the consultant Oliver Wight for Process Planning and Control. With this recognition EXSA

AEL MINING SERVICES AEL Mining Services, a member of the JSElisted AECI Group in South Africa, is a leading developer, producer and supplier of 3rd generation electronic detonators, initiating systems, blasting services and solutions for mining, quarrying and construction markets in Latin America, Africa, Europe and the Far East. AEL operates closely with selected partners across Latin America and is proud to be associated with Exsa, AEL’s preferred partner and distributor in Peru of electronic detonators including DigiShot™Plus and SmartShot™ range, as well as Underground Bulk Systems (UBS) for more than 12 years. Consisting of a capable team of leading explosives engineers and scientists, AEL has over a century of expertise and knowledge in developing ground-breaking and innovative

blasting solutions that contribute to the creation of infrastructures in countries throughout the world. AEL supports Latin America’s growing mining market and will continue its investment on the continent through its expertise, resources and cutting edge technology. AEL’s proven capability of deploying infrastructure to global standards in a fast turnaround time, coupled with the expertise to rapidly develop customised premier products to suit specific applications and mandatory quality standards, gives the group a competitive edge in expanding into new markets. AEL unearths wealth by meticulously providing the mining industry with carefully controlled energy. www.aelminingservices.com

BE Mining | 119

inspired Your weekly digest of business news and views

www.bus-ex.com 120 | BE Mining

became the first explosives business in Latin America, and very few in the world, to have obtained this certification.” For the last 60 years EXSA has undoubtedly contributed a huge amount to the sustainable development of the mining industry in Peru. In looking back on its impact on the sector it was decided that its 60th birthday would be the ideal time to redesign its corporate image, one which reflects a new vision for the company and a new approach to how it delivers its service. This new image was first unveiled at the EXTEMIN 2013 mining exhibition. “We want our customers today to not simply see us as providers of products or operational services that are limited to blasting,” Maslo


“We believe in long term relationships and that is why we care about ensuring the continuity of our customers’ businesses” highlights, “rather we want them to recognise EXSA as providers of exact solutions that are integral to their entire value chain. We view the business of our clients holistically and as such we want to focus on capturing operational efficiencies in their production chain. We believe in long term relationships and that is why we care about ensuring the continuity of our

customers’ businesses. By knowing the business of our customers better than themselves, we will be able to provide them with tailor made solutions beyond their expectations.” “It is EXSA’s belief that sustainable development and steady growth should be constant goals and as such we seek at all times to uphold best practices when it comes

BE Mining | 121

“As part of our development over the past 60 years we have grown into a multi-national company” to achieving continuous improvement and delivering total quality and excellence. In recent years we have invested heavily in order not only to respect the environmental laws, but also to exceed the mere fulfilment of our obligations, thus becoming a leader in our industry,” Maslo enthuses. “Moreover, since 2004 we have held ISO 14001 certification and OSHA 18000 certification since 2008, and in 2003 we obtained the ISO 9001 certification. These certifications require us to have procedures and evaluation methods in place to identify and eliminate any potential environmental or safety implications our operations may have. Our degree of social responsibility also saw us become the first blasting company in Peru to receive the distinction of being recognized for our role in this field by being named an Empresa Socialmente Responsible (socially responsible) business.” EXSA’s goal for the short-to-medium term is to continue to grow and consolidate its position as the leading regional player in the mining industry when it comes to rock fragmentation. One way that the company is expressing its aims for the future is through the design and use of a dynamic new logo, one that represents the company’s new value proposition, its continuing high levels of customer focus, its constant process of

122 | BE Mining

innovation and the way it is always striving to meet its clients’ changing needs by providing them with exact solutions. The colour blue represents the level of trust, confidence and commitment that exists between EXSA and its clients, while the yellow symbolises the human side of the business and the close relationships EXSA forges with its customers. “As part of our development over the past 60 years we have grown into a multi-national company which today has subsidiaries in Brazil, Colombia and Panama, and exports products from Peru to the majority of the countries in South, Central and North America,” Maslo concludes. “Our growth strategy for the future revolves around three strategic pillars, innovation, customer focus and solutions, all of which are furthered as a result of our proven operational excellence, quality, efficiency and safety. Meanwhile, we have developed a very aggressive growth strategy across the Americas, one that has proven to be very successful, and we move into our seventh decade of operations we will continue to look for business opportunities both locally and internationally.” For more information about EXSA Peru visit: www.exsa.net


Bette Plant

Reliable Contro plant automatio work, par


124 | BE Mining

Reliable Controls

er Controls and t Commissioning

ols Corporation is a dependable partner for on, assessment, auditing and commissioning rticularly in mining and O&G projects

written by: John O’Hanlon research by: Peter Rowlston

BE Mining | 125

Gold and copper recovery in the Dominican Republic

Reliable Controls


d Macha always felt there was a better way. Fascinated since childhood by the possibilities of automation, he learned the industry inside and out, knowing one day he would be the one to transform it. Beginning at the age of 15, he spent his summers sweeping electrical room floors and troubleshooting pull cords on conveyor belts at a mine site in Mexico. After graduating in electrical engineering from New Mexico State University, Macha worked as a control engineer, taking on numerous jobs including a large commissioning project working with Bowen Engineering and Fluor Daniels in the multi-million Alumbrera project in Argentina. Five years later, there was a delay in projects and Ed realized that was the time to jump on the idea he never stopped dreaming about. The opportunity to start his own business. With the support of his father, Al Macha, and younger brother Alex Macha, who are now respectively RCC’s Vice Presidents in Operations and Technology, Ed Macha developed a unique method for systemizing power, instrumentation and control systems in a way that could make projects more efficient during commissioning. With the implementation of this new way and the support of a few key people, Reliable Controls Corporation (RCC) was born in April of 1999. The primary focus of RCC was the mining industry. The company’s first big break came within months of being established, with the challenge to automate a tripper conveyor control system at a mine that used lasers for control and optimisation. This was followed by another large project performing

BE Mining | 127

a complete Instrumentation and Controls audit and assessment in 2001 at Minera Escondida’s concentrator. The next few years brought nothing but opportunity and growth for the flourishing company. In 2002, RCC performed the commissioning and start-up of the Power Distribution Systems and Controls Systems for BHP Billiton at Minera Escondida’s Phase IV megaproject. That success attracted the attention of other major clients and the company grew fast. In 2004, RCC had reached eight employees, at which point it expanded its operation in Salt Lake City: since then it has experienced steady growth and today has 53 employees. If there’s a key to this business, it lies in the commitment of its staff. With an average age of 38 the team includes seasoned engineers with the ability to manage large teams, a middle generation in their thirties, highly tech-savvy and bright, and the youngest generation in their 20s, many of whom joined RCC straight from university, eager to learn and willing to work hard to get where they need to be. “It’s a very constructive combination!” says Macha. “We have great leaders in all of those age groups.” The company’s portfolio developed quickly, with satisfied clients in both the mining and the oil and gas (O&G) sectors. RCC is

a perfect fit with businesses in these two sectors – companies that are in the process of building new facilities and clients that are reassessing their existing facilities. This was always the basis for building the firm’s reputation, he says. “We build trust, respect and unity. We become family with our clients, making it a win-win situation. To do this, we train and develop as much as we can. We value our people’s experience and give them

“We build trust, respect and unity. We become family with our clients, making it a win-win situation. To do this, we train and develop as much as we can” 128 | BE Mining

Reliable Controls

Copper and gold underground mining in Indonesia

training, so we are offering design, installation and our clients continuing commissioning in each expertise. The world faces of them. “We focus on a crisis of resources right understanding our clients’ now and the type of work needs,” he emphasises. RCC’s foundation year we do on power systems, “For example many of instrumentation, automation them need to modernise or and commissioning is huge upgrade their facilities after in fixing that crisis. RCC is developing a long period of operation – they might and training the next generation to step not even have the original documentation, up and resolve the crisis.” The company’s drawings and commissioning information. record of growth by recommendation and So the first thing we will do is to make an the long term relationships it has built audit of the whole installation. We trace with mining and O&G majors testifies every wire, and create plant drawings to the success of this approach. and documentation that may be missing RCC’s engineers are experienced in or out of date: in short, we tell the client both understanding the synergies as well exactly where their plant is at!” RCC’s qualified engineers then use as the unique characteristics of plant


BE Mining | 129

a proprietary system to pinpoint potential opportunities and offer detailed recommendations for creating more favourable conditions with little to no downtime. “The system breaks the job down into work packages: our engineers go through the entire plant and give the owner a snapshot of every last detail of his instrumentation, automation and electrical installation.” Having established the baseline, RCC goes on to make its recommendation of what needs to be done to upgrade and improve safety or compliance. A great example of this service was shown in 2009, when Barrick Gold contracted RCC to provide electrical and instrumentation assessment and ‘as-built’

Copper thickener in the Atacama Desert, Chile

130 | BE Mining

engineering services at the Cortez Pipeline Mill located 60 miles south west of Elko, Nevada. RCC performed a detailed electrical and instrumentation assessment including verification and wire tracing, as well as providing ‘as-built’ documentation. ‘As-built’ means assessing the variations from original engineering plans to what was actually built – and any subsequent modifications. Without this, it is impossible to plan any future development. At Cortez Pipeline Mill, wiring, drawings, motor schematics, instrumentation, controls and electrical systems were all audited and the client presented with a turnover package and recommendations related to safety and reliability, critical

Reliable Controls

“We trace every wire, and create plant drawings and documentation that may be missing or out of date: in short, we tell the client exactly where their plant is at!” instrumentation and logic, and electrical and instrumentation component conditions with respect to both safety and functionality. A job well done, which developed into a continued relationship with Barrick and work in major projects world-wide, including being a key partner in the Pueblo Viejo mega project (2011-2013) in the

Dominican Republic where RCC provided pre-commissioning and commissioning services for both Fluor and Barrick. Another core service that has really made its mark on the mining industry is testing and commissioning. This can be applied to a simple standalone plant or complex site-wide systems. “We place a lot of emphasis on that, and have developed a systematic approach to commissioning that is as foolproof as we can make it,” says Ed Macha. He is referring to the in-house software application that covers the whole process of verifying and validating the plant and getting it up and running. The company has been busy in its home state (Utah), Arizona, and Nevada, last year completing commissioning services for Freeport McMoRan, Barrick, and Rio Tinto. Currently, the company is in the commissioning process for the $160 million gyratory crushing system and 21,500 gallons per minute Merrill-Crowe facility at Allied Nevada’s Hycroft gold mine. RCC is providing services to complete all electrical and instrumentation terminations and performing component testing and plant commissioning. The systematised approach by project manager, Jeff VanDyke, and team of 20 has made a substantial difference in the project.

BE Mining | 131

Another aspect Reliable Controls prides itself in is that of forging innovative technology. RCC has just launched a new application called PlantSight (www.plantsight.com) based on its unique system which is now available to purchase by anyone. This tool is cloud-based and utilises iPads and laptops to perform all inspections, punchlists and test package completion. The key is to

have immediate information available for tracking, making decisions, early discovery and accountability based systems required for the commissioning of world-class facilities. “This tool is great for tracking real time progress, and generating online reporting,” Ed Macha enthuses. “The system aims to improve efficiencies, reducing re-do work and improving the reporting process, all of

“PlantSight is a great tool for tracking real time progress, and generating online reporting”

RCC management - Fred Botha, Alex Macha, Al Macha, Nikki Butler, Ed Macha, Brad Liljenquist

132 | BE Mining

Reliable Controls

RCC engineer, Michael Toone, utilizing PlantSight while commissioning

which help to meet project deadlines. I truly believe RCC understands the importance of technology and is one of few businesses in the industry that are capitalising on it!” With offices already established in the USA, Chile and the Dominican Republic RCC is now setting up shop in Peru and Indonesia. “We will go wherever our clients need us,” says Macha – and he makes it clear that though he is currently focused on South East Asia and South America, Australia and Canada are definitely of interest, and that the logical progression going forward will be a big push into the energy sector. The latest international venture in Indonesia has proved RCC’s ability to work with a 14-16

hour time difference between the site and the engineering companies/suppliers in North America, as well as the logistics challenge. Though his clients agree that RCC holds the key to the best available plant assessment and commissioning, Ed Macha still thinks there is a better way. “We do our work with so much pride. Everything we do is beautiful. It is a work of art. We all believe in doing a job with passion! We cannot stand mediocrity - there is always the challenge to do it better!” For more information about Reliable Controls visit: www.rcontrols.com

BE Mining | 133

worldwide customers

The headoffice of the FRUTIGER-Group is located in Switzerland. An independent network of group companies and sales offices care for our worldwide customers. With the business lines Scrapedozers and Wheel Washing Systems, FRUTIGER leads the market


obyDick Wheel Washing Systems - We solve the problem of dirty roads and highways! Since 1985, MobyDick Wheel Washing Systems have set the worldwide standard for high performance cleaning, durability, and reliability. MobyDick systems are easy to install, use, and maintain. With over 3,000 installed systems we are proud of our worldwide leadership position. The varied range of MobyDick

“With over 3,000 installed systems we are proud of our worldwide leadership position” 134 | be directory

Wheel Washing Systems are based on two model lines: Introduced in 1985, TailorMade (TM-Line) Wheel Washing systems are our quality line for effective wheel washing reliablity, durabiltiy and high customer satisfaction. MobyDick »Quick” drive-through and roller models are custom engineered in a variety of wash platform lengths, widths, and axle loading capacities. MobyDick TM-Line Wheel Washing Systems incorporate optional cleaning accessories and recycled water treatment technology to provide our customers with tailor made wheel wash track-out solutions. MobyDick’s ConLine (Construction Line) Wheel Washing Systems are our economic modular wheel wash systems for portable or permanent installations. Engineered for construction, rental, and


industrial sites, the ConLine’s unique modular drive-through design is rugged, flexible, and easy to assemble. The ConLine wheel wash systems provide our customers with MobyDick reliability at an economic price. Our wheel wash experts are committed to developing the most cost effective wheel wash installation to solve your environmental and stormwater problems caused by tire track-out of dirt and sediment onto public roads. For more information visit: www.mobydick.com Earthmoving with Scrapedozers The Scrapedozer is the ideal machine for earthmoving on hauling distances from 50 to 500 meters. On sites where the transport distance is too

long for bulldozers and too short for dumpers the cost effectiveness of the Scrapedozer is overwhelming. FRUTIGER currently offers three different Scraperdozer models. The SR T-10, SR T-12 and SR T-18. All three models compliment each other and allow economic operation in many different working conditions. For more information visit: www.scrapedozer.com FRUTIGER Company AG Stegackerstrasse 26 CH-8409 Winterthur T +41 (0)52 234 11 11 www.frutiger.ch

be directory | 135

the best hooks in town This year, Wagstaff Crane celebrates its 51st anniversary. It is our mission to uphold the values and principles that have made Wagstaff Crane the leading crane outfit in the Intermountain West for the last half century


e strive for quality service, state-ofthe art equipment and an honest handshake. Wagstaff is unique in our ability to grow and expand, without losing our “old school” business relations. We are widely known for being honest with clients, true to our word, and keen to developing lasting relationships. With our extensive fleet including two GMK 7550 550-ton cranes, we

“We also maintain the highest standards for operator qualification and experience” 136 | be directory

supply a broad spectrum of lift coverage. The highlight of this year is the new addition of a 350-ton long boom which allows us to cater to a wider range of lift needs. Keeping our fleet at the cutting edge of industry technology enables us to accomplish work for our customers safely and efficiently. We also, maintain the highest standards for operator qualification and experience. Our group of operators are unrivaled in experience, safety, and years of service with the same company. Our commitment to utilize the best cranes and people in the industry sets us apart as a leader in the crane and rigging business. To make a project run as smooth as possible our engineers and lift planners can analyze and simulate complicated lifts before our crane reaches the job site. Our planners and engineers work


in-house and also have operating experience, this experience coupled with engineering education results in practical designs that ensure the safest and most economical solution for our customers. Our philosophy is think safe, work safe. We boast an industry-leading safety program, and over the past 50 years we have provided safe lifting and rigging services to every industry: Mining, Refining, Manufacturing, Aerospace, Commercial, and Residential. We service our customers with the same attitude. No job is too

big or too small, whether you’ve had an account with us for 50 years, or you call us for the first time, your will receive the same excellent service! Please contact us to learn more about the exciting innovations at Wagstaff Crane

WAGSTAFF CRANE T 801-277-3820 F 801-277-8475 E office@wagstaffcrane.com www.wagstaffcrane.com

be directory | 137

Service. Cultivating your success. Take a look at the position of these leaves. They are staggered in a pattern to permit optimum exposure to sunlight, in order to get maximum chances to grow. That’s why we give you the best service ever, always on the lookout to nurture your success. Discover our world of service at www.eurostardiamond.com. Trusted by the World’s Most Prestigious Watch & Jewellery Brands.

The DTC logo is a trademark used under licence from DTC

Profile for Business Excellence Magazine


Issue No.16


Issue No.16


Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded