BE Mining

ISSUE 7 | www.bus-ex.com/mining

bfl canada:

Encouraging

investment Passionate about bringing growth and investment to Canadian mining

indaba report:

How Mining INDABA registered 10% growth

kansanshi mining plc:

First Quantum Minerals mixed ore challenge

interview:

Mark Tyler nedbank capital

business excellence editorial

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Will Daynes

John O’Hanlon

Editor In Chief

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Chief Executive

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12

12 Interview: Mark Tyler

investing in the future of mining Mark Tyler at Nedbank Capital explains the challenges facing mining companies as they seek financing for projects.

18

18 comment: plastic waste

are we eating trash from your mine?

How plastic waste can leak into the food chain and how, by adopting some simple solutions, mining houses can reduce their impact on the environment.

22 4 | be mining

22 ABMEC

a collective effort

Director General, Sarah Varney, talks about her long-term plans for taking ABMEC forward.

contents indaba event report:

30 30 Event report

Mining indaba

2013 Mining Indaba™ registers a 10% growth on the number of attendees.

34 SSG Consulting

34

STRATEGIC PARTNERship

Passionate about project management.

36 Set Point group testing, testing

A diversified business, expanding its analytical expertise across Africa and beyond.

46 IHC Merwede B.V. Making waves

46

The partner of choice when it comes to onshore, near shore and deep-sea operations.

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54

services 54 bfl canada

Encouraging investment

Managing Vice President and Global Business Leader Penny Dyte discusses BFL’s passion for bringing growth and investment to Canada.

64

64 C.C. JENSEN

Cleaning up the competition

Having made its name in several industry sectors over the last 60 years, C. C. JENSEN is attracting greater attention from mining companies throughout the world.

74 Aminpro

Passing the test

74 6 | be mining

How Aminpro finds itself pursuing expansion of not only its service offering but its regional presence also.

contents

84 cae mining

Training the next generation

CAE President, Damian McKay, discusses how CAE Mining is building further upon CAE’s legacy in simulation and training.

94 MineWare

84

Moving with the times

How MineWare has grown from a small family enterprise into a preferred supplier in its field of expertise in less than two decades.

102 Hyspec Mining Services Saving downtime and costs

94

Managing director Alan Wood describes the progression from the supply of hydraulic hoses to inspection services that save downtime and costs for mining operations in Africa.

102

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114

metals 114 First Quantum Minerals: Kansanshi Mining Plc

Copper country

Zambia is blessed with abundant copper resources, but processing the mixture of ores at the Kansanshi mine has been a challenge for First Quantum Minerals.

146 Southern Copper Corporation

146

Expanding horizons

RaĂşl Jacob, CFO of Peruvian operations and company comptroller, highlights the massive expansion programmes the company is undertaking, both in Peru and in Mexico.

158 Norilsk Nickel A mainstay in mining

Director of foreign assets, Roman Panov, discusses the factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth.

158 8 | be mining

contents

170

182

Precious metals 170 Barrick South America

The jewel in the crown

Barrick has a significant investment programme for South America in 2013, much of which is targeted to advance the construction of Pascua-Lama.

182 Barrick Gold: Granny Smith Mine

200

A harvest of gold

A hotbed of mining industry best practice, technical innovation and community initiatives.

200 Barrick Cortez

INVISIBLE GOLD MADE VISIBLE

Barrick’s Cortez is one of the most productive and cost effective gold mines in the world, thanks to constructive investment and a good deal of technical innovation.

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218 218 Amlib

Exploring a new frontier

How Amlib is working to help fulfil Liberia’s great economic potential.

228 east asia minerals ACCESS TO INDONESIA

228

The Vancouver based mineral exploration company has located major gold and silver deposits in Indonesia.

240

minerals 240 canada fluorspar inc (CFI)

A most exciting prospect

Canada Fluorspar vies to become a major player in the hugely important Fluorspar market.

250 Jindal Africa

A land of opportunity

Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer.

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contents BE Directory 268 Atlas Copco Ghana

270

Committed to sustainable productivity

270 cyclone projects & consulting world best practice

272 finning

unrivalled service

274

274 hays recruiting

Hays Resources & Mining

276 mes international ltD a ‘can do’ company

278 normet lifetime care

282

280 sino grinding grinding media

282 Univar Mining

One network. A world of solutions

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12 | Be mining

interview

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How has financing evolved in the last three to five years?

The major changes have accelerated in the eighteen months since mid-2011 when readily available public equity dried up suddenly resulting in it being no longer possible to rely on quick equity raisings to provide funding for development. This meant that mining companies started exploring other forms of financing such as debt, private equity, royalties and metal streams and off-take financing. CFO’s are now having to consider financing forms that previously were time and effort consuming when compared with equity.

Do you predict growth or decline in the mining sector in 2013?

I do not see large increases in consumption of raw materials. Growth in rapidly industrialising countries such as China, Brazil and Turkey will be offset by moribund demand growth in Europe. However, I think supply of some of the more critical metals such as copper will be affected by production costs that have risen more rapidly than metal prices for a number of producers and some of these production cost increases will only be able to be contained in the long run with difficulty. So, in general, I see prices of raw materials staying at about current levels and some producers dropping out of the market as they become uncompetitive.

I think equity investors will remain deeply sceptical of the mining industry’s ability to generate returns, I think there

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was a mining stock bubble in the run up to 2012 in which companies were valued at many multiples of even the most wildly optimistic earnings projections. In 2013 and beyond, I expect only the companies with the most plausible production stories to be able to attract funding.

What are the significant challenges facing mining companies seeking financing today?

The biggest challenge is the scepticism in the equity markets. Mining companies have to demonstrate very thoroughly that they will be able to get into production and stay producing competitively in order to be able to generate dividends for investors. Raising project debt is a good way of showing that a third party has done enough due diligence to be satisfied that the company’s projections are plausible.

How are companies reacting to such challenges?

Suddenly, skilled and experienced finance professionals are in demand. Where companies have not been able to add the requisite skills to the payroll, they have come to rely on advisory firms to give assist them with the now difficult job of procuring finance.

Do we recommend looking at other forms of financing before debt?

We have seen a number of projects in which it was possible to raise equity only after the debt had been raised. Investors take comfort

interview

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

interview Australia, Africa, Europe and North America and are seeking to expand our offering beyond vanilla project finance into more exotic finance forms.

What does the long term future of mining look like in your opinion?

from the due diligence undertaken by the PF banks. We have seen appetite in the North American market for high yield bonds, raised instead of bank debt but we believe that this does not bring the same stamp of approval as does bank debt. We think that in the current market, bank debt should be the first port of call and, thereafter companies can pursue equity and other, exotic forms of financing.

What is on Nedbank’s agenda going into the second half of 2013?

We are actively pursuing project debt opportunities in our target markets of

The secular boom in commodities is set to continue. Added to the well-known story of growing Chinese demand, there are a number of other countries with high GDP growth and a rapidly expanding industrial base. These include Brazil, India and Turkey.

The rapid growth in industrialisation in these countries will fuel demand for “infrastructure� commodities such as iron ore, copper and energy commodities. While aluminium metal production has a global excess in capacity, bauxite production has not kept pace and could see upward price pressure. Only metals with a low degree of substitutability, such as platinum, will see prices rising to reflect production cost increases.

On balance the future of mining looks good but not nearly as overly optimistic as eighteen months ago.

Mark Tyler is head of resources at Nedbank Capital, an active participant in the mining and oil and gas debt finance markets, providing its clients with full-spectrum investment banking and integrated solutions. www.nedbank.com

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Are we eating trash from your mine? by: José Luis Gutiérrez-García

comment: plastic waste

G

arbage was always fond of travel and the invention of pl a s t ic containers was like offering it air miles. Plastics are light and durable, can be carried on the wind or along streams, and even the tiny proportion of them that is designed to be biodegradable is long-last i ng.

Non biodegradable plastic can last for centuries while so called biodegradables last long enough to migrate to places where they aren’t wanted before breaking dow n into poly mers.

They all pollute.

There are places in the ocean where plastics concentrate because of oceanic currents. The biggest is the Pacific Trash Vortex, also called the North Pacific Gyre. The chemicals and bits of plastic they eat are ingested by wildlife. If these fish or birds can digest the material it disrupts their metabolism as well as entering the food chain – it ends up on our dinner plate.

If they can’t, it kills them.

A lot of this stuff is dumped off ships but to

blame the marine industry would be unfair, as it has been estimated that as much as 80 percent of the junk in the sea is land-generated.

While the mining industry is very conscious of the need to meet environmental standards, the focus is often on things like groundwater f lows a nd ta i li ngs management, refurbishment.

The waste stream from mining operations is often less well managed and sites generate a considerable outflow of plastic containers, bottles and the like.

W hile improvements have been made for training personnel to bring-in & take-out their garbage, there is still much to be done to educate field workers about not throwing their empty water or drink bottles in the bush. Some of them do not care.

If plastic waste is not found or picked up, it will remain there for decades, hundreds, or even thousands of years, or it may travel an amazing journey from very far inland into the ocean.

In remote operations where it is neither easy nor cost effective to ship

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comment: plastic waste out plastic waste, burning permits are set in place. In this case, plastic from mineral exploration or mining activities becomes a direct contributor of CO2 and other toxic and noxious emissions into the atmosphere.

Because burning plastic in more established camps and mine sites is not permitted any longer due to better and stricter environmental regulations, mining managers truck camp plastic refuse to nearby towns or cities to be recycled or disposed in landfills or incinerators.

Mining op e r at ion s take very little notice or attention at the disposal and transportation costs, and the contribution of plastic waste to their overall operational CO2 footprint.

Camp managers chuck these costs into the business as usual category or into the “free” backhaul advantage.

Once their plastic waste arrives into town, especially in countries where they do not have recycling programs, their plastic waste contribution ends up in landfills or worse, in waterways.

Mining camps can do much benefit to their operational cost savings by providing reusable containers for drillers and equipment operators instead of constantly buying disposable plastic or aluminum containers and plastic bags for workers to carry their lunches.

Mining camps can provide staff with company-logoed swag in the form of reusable

bottles and strategically placed water fountains to refill them instead of spending enormous monthly amounts of money on bottled water. In many cases both water, and bottle go to waste when people just take one sip and forget it in the trucks or workshops.

All mining stages will benefit from creating a bin program for waste-stream management to separate their garbage at source in the maintenance shop, at the diamond drill, workshop, and in the lunchroom.

Larger mining companies, if so inclined and forward thinking, can cut fuel costs by implementing Refuse Derived Fuel practices and operations into their claims or in partnerships with local landfills where the economic returns are seen in the offset fuel costs when the company uses the fuel internally.

José Luis Gutiérrez-García, Corporate and Environmental Sustainability Consultant and Co-founder of Vancouverbased Upcycle the Gyres Society. 2011 Chair of the Sustainability Committee for a remote gold mining operation in the Arctic. Proponent of Zero Waste-Zero Emission Mining. www.upgyres.org

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22 | BE Mining

ABMEC

A collective

effort

Director General, Sarah Varney, talks about her long-term plans for taking ABMEC forward

written by: Will Daynes research by: Richard Halfhide

BE Mining | 23

E

volv ing f rom the remnants of several trade associations whose ow n histories dated back to the 1930s, the Association of British Mining Equipment Companies (ABMEC) was established in 1978. The only recognised and government accredited trade body for the mining equipment sector operating within the UK, ABMEC today boasts 33 member companies.

These companies are provided with a wide range of services and involvement with international mineral producers, government, regulator y bodies and the media.

“A BM EC ,” e x pla i n s Director General, Sarah Varney, “evolved primarily as a means for the domestic mining industr y and

equipment suppliers to gain a collective voice and a global platform on which to advertise their services. In many ways it began life as a survival tool for companies to overcome the lack of strength in the domestic mining sector by gaining overseas awareness of not only the quality of their workmanship, but also the intelligence behind their engineering capabilities.”

ABMEC’s origins were very much derived from underground mining and coal mining, once booming industries in the UK. In the decades since the association was formed the mining landscape here has changed dramatically, meaning that ABMEC has had to as well.

“What we are currently trying to do,” Varney continues, “is generate a wider spread within our

“abmec began life as a survival tool for companies to overcome the lack of strength in the domestic mining sector” 24 | BE Mining

Mutech – testing a PCB (to go in an ATEX approved mining safety system)

ABMEC

membership. At present it is mainly underground with a mix of surface mining companies, and our objective is to create a platform for businesses whose expertise lies in all types of mining, and all manner of minerals and metals.”

By mixing up its membership gene pool, so to speak, ABMEC is aware that it can gain a bigger profile for itself when hosting British pavilions overseas at tradeshows. A mix of

different types of members will also only create a greater amount of diverse experience and knowledge that can then be shared out amongst these companies.

Of course there are a

1978 The year that ABMEC was established

Joy Global – continuous miner underground

26 | BE Mining

number of other benefits t hat t he se member companies gain from being a part of ABMEC, not least the opportunity to be profiled on a much greater scale than would perhaps other wise be possible without experiencing huge marketing costs.

“In 2012,” Varney states, “to correspond with the redesign of ABMEC’s logo and identity, we published a new buyers guide and directory that was

ABMEC

“In the 35 years that ABMEC has been in existence it has witnessed the growth of the mining industry as a whole” translated into five different languages. The 36 UK Trade and Investment overseas offices with responsibility for mining were contacted to see if they wished to receive copies of this literature. The response I received was

overwhelmingly positive and has resulted in a situation where ABMEC and its member companies are now being profiled in countries as far away as Costa Rica, Vietnam and New Zealand.”

Facilitating business growth is certainly a core facet of ABMEC, with Varney’s own background in sales and marketing meaning that she is always keen to get ABMEC’s members in front of the right people in order to conduct business.

“We host two domestic events a year,” Varney says, “one being the AGM and the other being our annual mining conference, which this year celebrates its fourth anniversary. Here there will be a wide range of mining and district experience present as well as a question and answers session being hosted by

BBC news correspondent Nick Higham.”

In order to facilitate member growth overseas, ABMEC arranges inward and outward missions where it arranges for a group of its members who are interested in seeking business in one particular country to travel over for an organised programme of events.

Here they visit mines and national companies where they can showcase their products and services, find out if the country is right for them and ultimately form business relationships in the hope of securing contracts.

Several proposals are also in ABMEC’s pipeline. These include potentially offering a mentoring service for new members for the first 12 months and the possibility of hosting networking events that will take place at member company premises up to six times a year.

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Trolex – underground mine operations

28 | BE Mining

ABMEC In the 35 years that ABMEC has been in existence it has witnessed the growth of the mining industry as a whole.

As its membership has diversified in recent years this growth has only increased exponentially. “At the end of 2004,” Varney highlights, “ABMEC had 31 companies as members whose export turnover for the year was just shy of approximately £300 million. Fast forward to the end of 2011 and our 33 members recorded approximately £764 million in exports, which makes for an incredible growth story in itself.”

W hile the industr y continues to change and evolve at a rapid pace, ABMEC knows that what will keep it buoyant is the simple fact that the human race will always be digging something out of the ground. Because of this we will always require the necessary tools and equipment, and qualified and capable people to carry

out such work. This will especially be the case in developing countries outside of the BRIC nations where standards are being brought up to global requirements.

Since taking over the role of Director General, Varney has undertaken a comprehensive review of ABMEC’s procedures, systems and its profile, making a number of improvements that she feels now gives the association a strong platform on which to move forward.

“It is well documented that the economic climate isn’t great for everyone at present, however it is this climate that can create a situation where a trade association can become a company’s greatest asset.

By providing a forum from which to gain a wealth of knowledge and experience, as well as a platform to market themselves on, a body like ABMEC can really be a saving grace in these challenging times.”

For more information about The Association of British Mining Equipment Companies (ABMEC) visit: www.abmec.org.uk

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EVENTS

Mining Indaba 2013 Mining Indaba™ registers a 10% growth on the number of attendees 30 | Be mining

Special report

C

ape Town 7 February 2013 – “It was a rush.” “Impressive.” “It’s an extraordinary conference.”

These are just some of the terms used by attendees and media representatives to describe the 19th Investing in African Mining Indaba™ at the Cape Town International Convention Centre.

“I’ve been attending the Mining Indaba for three years now and it just keeps getting

better,” said Chris Bishop, Managing Editor of Forbes Africa.

A record excess of 7,700 delegates attended the 2013 Mining Indaba, from 100 countries and 6 continents, last year the conference was attended by 7,000 people.

There was a distinct African flavour at this year’s indaba with 57 percent of delegates being from the continent, 5 percent from Asia, 18 and 12 percent from Europe and

Be mining | 31

EVENTS “It was my first time at Indaba and I found the scale of it very impressive” Andrew Moody of China Daily

Australia respectively and the rest from the Americas, truly living up to its description: ‘This is where the world connects with African Mining.’

This year there has been a marked increase from Asian delegates, which has increased from 3 percent of the total number of delegates in 2012 to 5 percent in 2013.

The greater majority of the Asian contingent was mainly from China and Japan. This year the Chinese delegation numbered 104 including government officials.

The Mining Indaba is the world’s largest gathering of the most influential stakeholders in African mining. They include financiers, investors, mining professionals and government officials. Government representation at the mining indaba was also predominantly African, with 36 African governments in attendance.

Mineweb’s Geoff Candy said: “The challenges took centre stage. Challenges that present foreign investors are with a clear choice: to stay the course, or to go, quickly.”

Tim Cohen of Business Day said: “The mining indaba is an amazing symbol of the increasing importance of mining on the African continent. Governments are

32 | Be mining

Special report

encouraging the industry and Indaba in its tenth year at the social aspects are being the centre. The successful dealt with.” partnership between the Gunther Deutsch of the Mining Indaba LLC and the CTICC has resulted in a South African Broadcasting Number of African Corporation said: “There is a winning formula, which has governments represented sense that mining leadership grown this event in stature. in attendance is taking sustainability This is evident in the growth seriously,” whilst Andrew we’ve seen in the number of Moody of China Daily said: “It was my first attendees. Mining Indaba is a key driver of time at Indaba and I found the scale of it economic growth in the province and this very impressive. It was possible to do a wide year’s event resulted in an economic spinoff range of interviews from industry experts, for the region of just over R111 million and contributed to the creation of over 700 African leaders and Chinese businesses.” direct and indirect jobs in South Africa.

Delegates also lauded the organisation of the Mining Indaba, calling the conference efficient and the content of great quality.

For more information about The CEO of the Cape Town International Mining INDABA visit: Convention Centre, Rashid Toefy said: “The www.miningindaba.com CTICC is proud to be the host of Mining

36

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INDABA REPORT:

STRATEGIC PARTNERship Passionate about project management

written by: SSG CONSULTING research by: marcus lewis

T

he 2013 Mining Indaba was again a significant event on the SSG Consulting calendar, and a great opportunity to network with existing and potential clients.

Although there are still clear indications that the local and global economies are still under pressure, the energy for getting business going was also very evident.

The SSG Consulting service offering has expanded significantly following the 2012 Mining Indaba and a double stand showcased 4 clear Business Units: • P roject Consulting and Strategy Development • Project Execution and Staffing • KEY360 Management Systems • SSG Training Academy

34 | Be mining

Clients indicated a very clear preference for services in terms of being able to use SSG Consulting as a strategic partner to support and develop a current execution team, as well as supplement the execution with experienced staff that could fill the gaps. The ability to support a project organisation with accredited training, as well as the KEY360 systems suite is viewed as a great advantage for clients.

Live presentations and demonstrations of the KEY360 Software Suite on a large touch screen, created the most attention for SSG Consulting, and although 6 staff members were available to meet with prospective clients it was difficult to handle the interest. KEY360 provided attendees with a unique and revolutionary

SSG Consulting

product to handle the full life cycle of asset development, especially developed for the Global and African context.

This proven product supported by an experienced team in SSG Consulting will continue to make headway into the project management industry.

In terms of feedback and positive leads the Indaba provided an excellent platform for speaking to the right clients at the right management level, and a significant

amount of follow up was requested. The format, location, venue and entry cost of the Mining Indaba ensures that most attendees are actually looking for new business in some format; making it an extremely good platform find new opportunities.

For more information about SSG Consulting visit: www.ssgconsulting.co.za

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INDABA REPORT:

Test

36 | be mining

Set Point Group

ting, testing CEO Graeme Horsfield talks about a diversified business, expanding its analytical expertise across Africa and beyond

written by: martin ashcroft research by: marcus lewis

be mining | 37

Set Point Group

S

The Group comprises of three Analytical Divisions

et Point Group is a South African company, comprising seven distinct businesses serving mainly the mining industry and a few unrelated sectors.

It’s an interesting mix, with a rather unusual genesis.

In 1998 the company was formed on the Johannesburg Stock Exchange as an analytical business called Set Point Technology Holdings Ltd. Stock was listed at one rand per share, but shot up to seven rand almost overnight, recalls CEO Graeme Horsfield. “The business was actually analysing air purity and underground gases in the mining industry,” he says, “but because of the name and the IT boom at the time, many people thought it to be an IT company so they all piled in and pushed the share price up. The business became greatly diversified when the then directors bought several companies that had no synergy between them.”

In 2001 the company brought in new management to restructure the business and Horsfield formed part of the team. There’s certainly more synergy in the business now, and although he doesn’t pretend that all seven businesses fit together snugly, they do at least fall into three broad categories— analytical services, fluid handling and mining services.

On the analytical side, the flagship business is WearCheck, an international brand that carries out oil and fuel analysis for condition monitoring of heavy mining machinery. “These mining machines are worth tens of millions of Rands each and

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Oil and fuel analysis laboratory

40 | be mining

carry hundreds of tons of rock and ore at each pass,” says Horsfield, “and are often run 24 hours a day. They have the oil tested every 250 hours or so depending on the component WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any component wear and tear or if a problem is beginning to develop that could be prevented.”

The cost of the analysis is far cheaper than replacing the oil or repairing the machine should it fail, never mind the cost of the downtime associated with any failure, which could run into millions of rand.

WearCheck is an international brand name, almost akin to a franchise, but not quite. “There are a handful of companies around the world with the WearCheck label,” explains Horsfield, “but there’s no financial link between them, although, we do work closely wih one another, sharing expertise and offering companies a global oil analysis programme. It is however a gentleman’s agreement as to who has the right to open up WearCheck businesses in certain areas, and Set Point has the rights for Africa, the Middle East and India.”

WearCheck has several laboratories and offices in South Africa, but has also opened businesses in Botswana, Zambia, and Ghana, as well as in Chennai in India, and Dubai in the Middle East. “We are dominant in the market in South Africa,” says Horsfield, “and worldwide, we analyse more samples than any other WearCheck operation.”

Also on the analytical side is Set Point

Set Point Group

Oil analysis on haul trucks

Laboratories, which does assaying of minerals for the mining industry. The major laboratory is in Johannesburg, but others have been opened in Northern Cape and Botswana, and one will open soon in Mozambique. Set Point Laboratories have specific expertise and experience to establish and operate full on-site lab facilities specific to client’s requirements.

These labs can be housed in fixed buildings

or in containerised units that allow easy transportation to remote sites. In addition, SPL has experience in establishing “underground sample preparation facilities” which provides huge logistical benefits for analysis of mine samples.

The third of the analytical companies is African Mineral Standards or AMIS, which makes certified reference materials—which are basically control samples to verify the

“We are dominant in the market in South Africa and worldwide we analyse more samples than any other WearCheck operation” be mining | 41

accuracy of the analytical equipment.

“Most analytical laboratories are faced with the challenge of determining the accuracy of their XRF and ICP machines,” says Horsfield. “They don’t know how accurate the machines are because the results they get vary from the samples they get from the mines. So what we do is develop a model answer.

“We collect rock from various parts of the world and crush it into a fine powder.

This is sent to thirty laboratories around the world to analyse it and tell us what’s in the powder. We get the thirty results and then do a mean average and an almost model answer of what should be in that powder.

Results are then sent to a renowned professor in Canada who checks the accuracy of the mean averaging, and signs a certificate off. This then becomes a certified sample.”

Mining laboratories around the world use these samples to check that they get the correct model answer from their machines.

If they do, then their other samples can be relied upon to be accurate, too. “We are proud to have developed African Mineral Standards into the second largest standards supplier in the world.”

Set Point also has three operations in its fluid handling divisions—the Letaba Group,

Pneumax and Meter Systems. Letaba imports pumps and supplies them predominantly to the mining industry but also to food and chemical plants. It is also known for its impressive fleet of dewatering pumps, which are available for hire 24/7/365.

“Then we have Pneumax which supplies pneumatic equipment such as components for pneumatic automation, actuators, valves, fittings and tubing, deceleration

“WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any engine or gearbox wear and tear” 42 | be mining

Set Point Group

Above: Flow meter. Below: Imperial mine cylinder

Matrix matched reference materials

and vibration technology which can be used in virtually any industry or application,” says Horsfield. Pneumax is also committed to industry skills development programmes and offers various pneumatic training courses. Meter Systems supplies lubrication and garage equipment to the fuel and oil industries, including flow meters, nozzles, hoses, dispensers, loading arms, pumps and a myriad of complementary products and accessories.

Set Point’s mining section, acquired in 2005, is the one that stands alone. The two companies NW GoPro and RENG, manufacture and repair

locomotive and hopper wheels, as well as skip guide rollers for the mining industry. “It’s the only manufacturing business we have in the stable, so of all the companies in the group, it has the biggest labour force.”

Being a diverse organisation is challenging but it also has benefits, says Horsfield. If one sector suffers from a shrinking market, others can pick up the slack.

The disadvantage is that the skills required to manage the individual businesses are not easily transferrable.

“We have seven highly skilled MDs,” he says, “so we have to have a very strong succession plan in place, especially on the

be mining | 43

GoPro manufactures a range of loco wheels and skip guide rollers

Some of the brands avail

“We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour” analytical side. These guys have Masters in chemistry and science. You don’t just pick them up off the street. We constantly have to train middle management to be able to step into top management shoes.

General distribution is relatively easy for a commercial guy but in the three analytical businesses it’s tough because you can’t take, for example, a laboratory manager from

44 | be mining

one of our analytical divisions and ask them to run another – since the scope of work varies significantly.”

There are challenges also in expanding across Africa, not least in being careful which countries you choose. “We often have to join up with local management in terms of the rules of the country regarding ownership, and finding the right partner is

Set Point Group

lable from Letaba Pumps

not always easy. It takes a good six months for our business development people to do a full analysis of the business environment.”

Zimbabwe, for instance is one country Set Point has avoided, because of its indigenisation policies.

It’s not easy attracting skilled workers into the analytical side of the business, either, says Horsfield. “We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour. We train people from the African sub-continent and send them back to their own countries to run their own laboratories.”

Science graduates are keen to work in DNA analysis or biochemistry, he says.

GoPro’s locomotive wheels

Analytical work is not sexy enough for some of them today. “So we’ve had to make it pretty sexy for them in terms of the company culture and opportunities to get into management. We’ve been running a mentorship program for about three years now where we identify people with talent and do our best to inspire them to greater things for themselves and the company. It’s been a boon for us in terms of retaining those people and developing them into a different level of management.”

For more information about Set Point Group visit: www.setpoint.co.za

be mining | 45

INDABA REPORT:

Making

waves Converting a dry mining operation into a wet or dredge mining operation can renew the life of a mine. IHC Mining is able to facilitate this change by supplying equipment, educating and training local crew, and offering life-cycle support

written by: Will Daynes research by: Marcus Lewis

46 | be mining

IHC Mining B.V.

Mining dredger attached to floating processing plant

IHC Mining B.V.

A

s the Mining division of IHC Merwede, IHC Mining focuses on integrated solutions for mining houses in onshore, near shore and deep-sea mining. It offers advisory services to determine overall technical and economic project viability.

It designs, builds and supplies innovative mining vessels and advanced equipment.

During operations the company provides its clients with life cycle support.

With roots that can be traced back to the 18th Century, and origins that lie with six Dutch shipyards that joined forces to build six sea-going tin dredgers for the Billiton Company, IHC Merwede is a Netherlands based company delivering integrated solutions to the dredging, offshore and mining industry.

From its locations in the Netherlands, South Africa, Australia and Singapore, IHC Merwede’ s Mining Division works closely with its customers to deliver an integrated service offering that it feels is proven to bring optimum results to any mining operation.

The company’s innovative vessels and advanced equipment are typically utilised in the extraction of mineral sands, diamonds, gold, copper, nickel, tin, iron ore, phosphate, rare earths and rock salts from depths of ten metres or less up to 300 metres. Meanwhile it is also working to develop equipment specifically designed to operate in even deeper waters.

Unlike a number of the players that exist within the wet mining industry today, IHC Mining is able to point to its long history of operating in such environments. In the many decades in which it has built up

be mining | 49

72% Of the world’s surface is covered in water

Dredge miner at work

50 | be mining

an unmatched level of experience it has also collected countless references from satisfied clients.

The roots of the business are very much entrenched in dredging. “It is this background,” highlights Marcel Boor, Product Director of Near Shore and Onshore Mining Equipment, “that the company has leveraged in order to develop its core mining technologies over the years. We have long been a well-respected and recognised player in the dredging industry, and we hope to earn a similar status in the mining sector.”

“We anticipate the onshore, near shore and deep sea market segments will continue to gain momentum, particular as dry mining becomes more difficult to develop and head grades continue to fall,” explains Managing Director, Martijn Schouten. “While wet mining is by no means a new phenomenon, it is one that is being increasingly recognised as an attractive alternative to dry mining.”

“Geographically,” Schouten continues, “we are currently seeing growth in each of our specific market segments. In terms of our onshore activities, these are being driven largely by the strong levels of exploration on-going in places like Russia, Southern Africa and South America, while a particularly attractive area at present for near

IHC Mining B.V.

Mining wheel

shore mining exists between Indonesia and the Philippines. Deep-sea mining activities continue to be spread much further across the globe with companies heading to wherever deposits may be found.”

“At the end of the day,” states Product Director for Near Shore and Onshore Mining, Kees Jan Verkaik, “what these mining clients are most interested in what they can get from the ground beneath the water in terms of minerals. One of the primary reasons why

such clients turn to us is because we possess the technology and skills required to get down to these mineral deposits and do so efficiency and effectively in almost any environment.”

“One of the major benefits of wet mining in a lot of cases,” Verkaik highlights, “is that the development of large scale deposits becomes a much less logistically challenging undertaking. Whereas such an operation on land would require countless trucks for example to transport the material, the

“IHC Merwede’ s Mining Division works closely with its customers to deliver an integrated service offering” be mining | 51

transport of a product through say a hydraulic pipeline would not only allow you to move it greater distances in less time, it would also have a significant impact when it comes to cost savings. The trend towards developing larger mines has certainly helped shine the spotlight on such alternatives and that is a good thing for us.�

The reality however is that in many instances, when faced with a choice

between land-based and wet mining, a higher percentage of companies still choose to go with the dry option simply because they are less aware of the benefits and advantages of the alternative. The same lack of understanding and acknowledgement is one challenge that IHC Mining is working to overcome. Despite being lauded as being one of the leading figures within the DutchBelgian dredging cluster it is not yet seen as

“One of the major benefits of wet mining is that the development of large scale deposits becomes a much less logistically challenging undertaking�

Dredge equipment for overburden removal

52 | be mining

IHC Mining B.V.

Onshore mining

a leading solution or equipment provider to the mining community.

IHC Mining’s mission to increase awareness in not only itself, but the whole concept of wet mining, saw it travel to Cape Town in early February for the Mining INDABA event.

“Appearing at such industry gatherings is so important if we are to achieve our ambition of being recognised as the leader player in dredge mining,” Schouten enthuses. “It is at such events that we are able to share our ideas, thoughts and ambitions with potential clients, particular those that are keen to develop new concessions in the future.”

From a deep-sea perspective meanwhile, the fact that on average product grades found here are greater than those found on land is certainly something that in the future will

encourage more and more people to get their feet wet, as it were.

As Schouten goes on to conclude, with more than 70 percent of the world’s surface covered in water it is only logical that there will be an increase in wet mining going forward as the industry continues to follow a similar pattern to that which saw the oil and gas sector move offshore. “In order to facilitate this growth, as well as the needs of our customers, we will continue to increase our regional presence in core markets as we strive to grow as a leading business in our field of expertise.”

For more information about IHC Mining B.V. visit: www.ihcmerwede.com/mining

be mining | 53

Encouraging investme As BFL CANADA (BFL) enters its 26th year of operations, Managing Vice President and Global Business Leader Penny Dyte discusses how it remains just as passionate about bringing growth and investment to Canada as it has always been

written by: Will Daynes research by: Marcus Lewis

54 | BE Mining

BFL CANADA

ment

BE Mining | 55

Canada ranks first for the production of Uranium

BFL CANADA

F

rom the first aboriginal inhabitants to use various minerals to produce tools to the now 363,000 plus people who earn a living from the more than 800 mines that exist across the country, Canada’s history has always been intrinsically linked to mining.

Mining activities are an integral part of Canada’s history with the country still ranking first in the world for the production of potash and uranium, and among the top five for the production of nickel and diamonds. Today the industry is responsible for contributing almost five percent of the country’s Gross Domestic Product, with companies making new mineral deposit discoveries on a regular basis.

Companies involved in the mineral and mineral processing industry in Canada each require effective risk identification and management, along with world-class engineering, as a basis for their insurance programs in order to protect their assets from the various financial threats, risks and exposures that they face, as well as to minimise their total cost of risk.

With ten locations across the country BFL, the largest employee-owned and operated commercial insurance broker and consulting services firm in Canada, provides its clients with services that ensure that their risk management and insurance programmes addresses every aspect of operations from initial exploration through construction and operation of a mining facility.

Under the leadership of its President, CEO and founder, Barry Lorenzetti, BFL is now entering its 26th year of operation.

“The company today,” explains Penny Dyte,

BE Mining | 57

BFL provides its clients with services that addresses every aspect of their operations

Managing Vice President and Global Business Leader, “remains very much aligned with how Barry Lorenzetti first conceived it, with the model being one of employee ownership and retention, niche practices and being very much focused on client needs. Our computer systems are client facing, our executives are client first and our organisation is very flat.

We are unwavering about these drivers and are very proud to run it that way because it helps breed an entrepreneurial spirit within the company and differentiates us in Canada.”

As a country, Canada has several things going for it, not least of all the fact that it is home to a vast area of unpopulated prospective land. For her part as BFL’s Global Business

Leader, Dyte has the incredibly vital role of not only assisting Canadian businesses to take advantage of opportunities here, but also working with the increasing number of foreign companies looking to invest in the country.

Among the niche sectors that BFL is connected to are the construction, transportation, energy, professional services and real estate industries. Its newest niche is the mining sector. “Because we already had a very robust construction services offering and experience working with clients in the oil sands sector, it made it a very natural lead in to the mining industry,” Dyte continues.

In building its mining team, BFL appointed three people to handle its operations across

“Canada’s history has always been intrinsically linked to mining” 58 | BE Mining

BFL CANADA Canada. BFL’s Eastern Region mining team is headed up by Lisa Gianonne, while the Ontario area is the responsibility of Sean Hurley and the Western Region is overseen

by Janet McLean, and complemented by John Donovan as Construction Practice Leader and Rick Adam on Loss Control/Prevention. With these individuals in place, BFL was able to begin to branch out to deal not only with clients that were already operational, but also prospective clients.

What BFL Knows, however, is that in order to properly deal with foreign brokers looking to invest in Canada it would require an international offering. “This realisation led us to carefully choose Lockton International, the world’s largest privately held firm, as our partner,” Dyte highlights. “Being particularly tenacious about our Canadian ownership, we weren’t looking to buy outside of Canada, nor were Lockton looking to buy into it, rather their model was to partner with large independent firms within countries that could manage their own people and had their own business model. We each fit perfectly within that vision and our clients benefit from it.”

What BFL and seven other partners subsequently did, in April 2012, was form a company called Lockton Global. Today that business has a total of 100 partners based around the world that have bought into providing international services not just to the mining community but in general on a private firm basis.

One of the first things foreign investors recognise when approaching work in Canada is the unique nature of its regulatory environment. Canada, for example, has one

Janet McLean

Sean Hurley

Lisa Giannone

BE Mining | 59

“The company’s model is one of employee ownership and retention, niche practices and being very much focused on client needs” of the most stringent environmental protocols found anywhere. While this can mean that companies initially struggle to cement a strong footprint in the country, once they have proven that they can conform to Canada’s rules and regulations they can expect the full support of the government. After all, as Dyte states, nobody is trying to deter growth, rather they are striving to ensure that said growth is healthy and sustainable.

60 | BE Mining

“Because of our working knowledge of our regulatory environment,” Dyte says, “we are able to provide more than just a black and white account of what our clients need to do in Canada in order to place business. What we do is actually build business acumen into the clients’ own business goals and challenges. It is this type of service that means that once we are in front of a client they quickly see us being on their side and thus we become

BFL CANADA

BFL builds business acumen into the clients’ own business goals and challenges

part of their team. So I see us as not only as risk advisors but also as business advisors trying to manage that risk that exists in our Canadian environment and that is very different than just trying to place insurance for general risks because, at the end of the day, each client is unique.”

Just by looking at the vast number of new mine and expansion permits currently in circulation, it is clear that there is a great deal of growth yet to come in the Canadian mining industry. “Not only will we be there to usher our clients through the regulatory and insurance market environment,” Dyte enthuses, “we will also have the ability to bring to them some boots on the ground, with claims and loss control experience, and relationships, that they can count on.”

At the same time, Canadian companies will themselves see a massive amount of growth particularly as they expand further in foreign markets such as Mexico, South America, South Africa and Australia. “Being able to trend some of the more important facets of our model, while also helping companies with safety, maintenance and understanding the insurance markets is really going to help them gain success more quickly than may otherwise be the case,” Dyte concludes. “This is what I envision we are going to be spending a lot of time doing in the months ahead.”

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

BE Mining | 61

Services company in brief BFL CANADA is the largest employee-owned and operated commercial insurance brokerage and consulting services firm in Canada.

Founded in 1987 by Barry F. Lorenzetti, BFL CANADA has over 400 employees in Canada. Our professionals are located in nine cities across the country and include specialists in sectors such as Directors’ and Officers’ Liability, Financial Institutions, Professional Liability, Construction, Surety Bonds, Cargo and International Logistics, Architects and Engineers, Health and Pharmaceutical, Real Estate and Transportation.

BFL strongly believes in the benefits of working in partnership with clients. Our company has experienced tremendous growth, due to our reliability in executing our mandates and our persistence in “delivering the goods”.

Our passion for the business and our desire to meet and exceed the expectations of clients are key to delivering our services - our clients’ loyalty attests to this.

Originally built on niches, over the past 25 years BFL CANADA has carved a place for itself in all economic sectors, thus competing with major U.S. brokerage firms. Our client base is made up of a wide range of Canadian and international organizations, as well as major associations and groups. With the specific needs of each client in mind, we help them define their particular risk management strategy, advise them, and explore the best possible solutions for their particular situation.

MANAGEMENT AND DIRECTORS Barry Lorenzetti

Sean Hurley

President, CEO and founder

Head of Ontario area mining team

Penny Dyte

John Donovan

Managing vice president and global business leader

Construction Practice Leader

Lisa Gianonne

Loss Control/Prevention

Head of Eastern Region mining team

Janet McLean Head of Western Region mining team

62 | BE Mining

Rick Adam

bfl canada Specialties

MISSION STATEMENT

Risk management consulting, Assessment of insurance needs, Development of invitations to tender, Review of contracts/leases, Employee benefits consulting, Claims management services, Risk control consulting / loss prevention.

To be the most professional, client-oriented and innovative insurance brokerage and consulting firm in Canada, through a disciplined and dedicated team approach.

• Directors’ and officers’ liability • Property, asset protection, including machinery breakdown • Business interruption • General liability • Environmental liability • Professional liability • Reclamation bonds and surety requirements • Construction insurance • Political risks insurance • Kidnap and ransom • Workers’ compensation and employers’ liability • Admitted paper required in foreign lands

corporate Office BFL Canada 2001, McGill College Suite 2200 Montreal, Quebec H3A 1G1 CANADA Tel: (514) 843-3632 Toll Free: (866) 688-9888 Fax: (514) 843-3842

services include RISK MANAGEMENT • R eview of contracts and leases for indemnification and insurance purposes • Design of risk management manuals • Optimal retention/deductible analysis •B enchmarking of limits, deductibles, retentions • Risk profile • Mergers and acquisitions risk and insurance advice • Corporate governance CLAIMS MANAGEMENT • 24-Hour emergency service • Claims settlement • Loss bordereau in client’s preferred format • Retention management • Claims review meetings • Electronic claims reporting Benefits Consulting • Setting of annual benefits objectives • Financial analysis of the various benefits plans • Review of legislative issues and their impact on benefits plans • Introduction to new and progressive benefits concepts

www.bflcanada.ca

BE Mining | 63

64 | be mining

C.C. JENSEN

Cleaning up the competition Account Manager, Caren Caffrey, discusses how, having made its name in several industry sectors over the last 60 years, C.C. JENSEN is attracting greater attention from mining companies throughout the world

written by: Will Daynes research by: Gareth Hardy

be mining | 65

C.C. JENSEN

T

MFU, also in cold climates, Canada

hey say that in order to get a job done well you have to get your hands dirty from time to time, and a truer statement was perhaps never spoken than when it comes to the mining industry. The sheer scale of the equipment used and the nature of the environments that are being operated in make mining a highly maintenance intensive undertaking. This inevitably results in a large concentration of dirt being produced. With this dirt having the ability to contaminate virtually everything in the surrounding area, it is clear that it takes more than a bit of soap and elbow grease to remedy the problem.

A family-owned, international business established in 1953, C. C. JENSEN has been manufacturing lubrication oil filters for marine engines for 60 years. In the time since, it has refined off-line depth filtration for a wide range of applications in the wind, power, industrial and mining sectors. Today, its CJC™ Fine Filters and CJC™ Filter Inserts are available through a worldwide network of sales consultants and service professionals.

Mine and quarry customers today use CJC™ Fine Filters to maintain clean oil in drilling equipment, crushers, haul and dump trucks, excavators, conveyor belts, bulk storage tanks and other miscellaneous equipment. “To date,” explains Account Manager, Caren Caffrey, “we have been active in the mining sector in Mexico, Chile, South Africa and Australia. Meanwhile, we are strengthening our market position in the US and Canada as never before.”

What C. C. Jensen has introduced to the industry, and what has already brought it

be mining | 67

success in the aforementioned markets, is the ability to provide Clean Oil. “The filter media that we use,” Caffrey continues, “is very unique in that it possesses a large surface area in comparison to other filter media. This allows the system to capture a greater amount of dirt, particulates, water and varnish from the oil in question. Incorporating the CJC™ Fine Filters allows the customer to reduce oil consumption and equipment downtime, which naturally increases operation productivity.”

Over the last decade or so, significant changes have occurred within the mining sector as it relates to oil cleanliness. Driven by the likes of Caterpillar and other equipment manufactures that have established minimum standards of oil cleanliness for their products, large mines are now beginning to set their own minimum oil cleanliness standards across their organisations. What they often find however, is that the filtration systems they have in place do not meet the new standards.

“Those companies that have tried our products love them,” Caffrey enthuses, “mostly because they help the company meet or exceed today’s standards of oil cleanliness.

Our products can filter any viscosity oil, meaning that where a lot of other systems, particularly inline filters, are limited to lower

weight oils, ours can tackle those thick, heavy duty lubricants at ISO 320 or ISO 680 and above that others can’t.”

C. C. JENSEN’s products also boast significant environmental benefits, the first being the fact that their filter inserts are made from a renewable, sustainable resource.

A combination of pulp fibre and cotton, this organic material can be disposed of in a green manner that avoids the use of landfill sites.

“C. C. JENSEN has refined off-line depth filtration for a wide range of applications in the wind, power, industrial and mining sectors” 68 | be mining

C.C. JENSEN

MFU flushing CAT dumper

The other primar y have been working with a benefit from a sustainability company operating with perspective is, of course, that the Canadian oil sands.

Here we have put to use one the company’s products’ core purpose is to create Clean Oil. of our more recent product Year C. C. JENSEN “By keeping that oil clean,” launches, which is a large, was established Caffrey highlights, “the first Mobile Flushing Unit with thing you do is reduce the an on board heated reservoir and particle counter. With frequency at which the oil has to be replaced. This subsequently reduces this unit, we pump warm, heavy lubricant your carbon footprint by scaling back your into the rear differentials of the big haul demand for these lubricants.” trucks during scheduled PM outages and As Caffrey goes on to state, the company clean the oil to recommended levels within is observing a greater degree of open a few hours. Cleaning the oil rather than mindedness from the mining sector to try simply replacing it has increased the new things when it comes to oil filtration, lifespan of these differentials from 18,000 and where this is occurring, the results to 25,000 hours. Based on the size of their have been very positive. “Recently, we fleet, the company has calculated that this

1953

be mining | 69

MFU during PM in workshop

Mobil SHC

“C. C. JENSEN sees great potential for mining companies in North America to take control of reliability by controlling contamination” will help save them an average of $500,000 dollar per year.”

Other avenues that C. C. JENSEN is currently looking into include the installation of filtration systems on diesel storage tanks and the development of heavy duty filtration systems for mobile equipment.

“We already have some small, heavy duty

70 | be mining

filters in service,” Caffrey says, “and larger units that are in the design stage. With their stronger mounting brackets and stabiliser packages, these systems will withstand the tough conditions encountered while installed onto mobile equipment such as drilling rigs and excavators.”

With respect to the immediate future,

C.C. JENSEN

C 680 after 90 min MFU flushing

the next big push for the company will be in the field of explosion proof motors, which will be required for the underground coal mining sector.

“Right now,” Caffrey says, “we see great potential for mining companies in North America to take control of reliability by controlling contamination.

These improvements in reliability and productivity will have a significant impact on the bottom line for mining operations.

We have a wealth of knowledge, case studies and practical experience that we are eager to use to help our customers solve their oil related problems. In addition, C. C. JENSEN provides a 100 percent satisfaction

HDU on mining truck, undercarriage

guarantee on all products.”

Caffrey concludes, “I really believe that there is a Clean Oil revolution occurring.

Machine reliability is no longer a desire, but a demand. Effective contamination control is a key enabler to success. I expect that CJC™ Filters will become a standard solution that all engineering companies and mines will expect to have as a filtration solution on all of their critical equipment.”

For more information about C. C. Jensen visit: www.cjc.dk

be mining | 71

Services company in brief C.C.JENSEN A/S is a family-owned international company, established in 1953, and based in Denmark. What makes us unique is our combination of tradition, innovation and technical expertise.

Worldwide, C.C.JENSEN A/S is well-known for producing products of the highest quality.

Our CJC™ Oil Filtration Filters and CJC™ Filter Inserts are available through a Global Network of 11 subsidiaries, 5 sales offices, 2 affiliated companies, 2 joint venture partners and more than 40 distributors.

C.C.JENSEN invented the hydraulic ship steering system - the first of its kind in

the marine world. The company began manufacturing lubrication oil filters for marine engines more than 50 years ago, and has since then refined off-line filtration for a wide range of applications in the wind, marine, mining, power and industrial market.

In day-to-day dealings with C.C.JENSEN A/S or our distributors, customers experience a commitment to service. Our employees do their utmost to provide the right solution - every time.

MANAGEMENT AND DIRECTORS

corporate Office

Carl Aage Jensen

C.C.JENSEN A/S Loevholmen 13 5700 Svendborg Denmark

Managing Director

Jimmi Madsen Finance Director

Ulrich Ritsing Sales & Marketing Director

Tel: +45 6321 2014 Fax: +45 6222 4615 E-mail: ccjensen@cjc.dk www.cjc.dk

72 | be mining

C.C. Jensen Mining products

Subsidiaries

Mines and quarries rely on CJC™ Offline Oil Filters to maintain clean oil in:

• Crushers • Mills • Dump Trucks & Excavators • Drilling Equipment • Conveyor Belts • Storage Tanks • Misc. Mining Equipment

Equipment reliability and lifetime can be dramatically increased by introducing an oil maintenance system.

Operating conditions for hydraulics and other fluid systems in mines and quarries are harsh.

Dust increases oil viscosity and severe vibration and exposure to rough weather conditions put strain on the equipment and fluid systems. Water ingress, typically from cooling systems, creates rapid oil degradation and can cause corrosion of bearings.

Installation of CJC™ Fine Filters and CJC™ Filter Separators is the most effective and economical way to maintain oil in many systems found in mines and quarries. All CJC™ Filter systems have a high dirt holding capacity and can be adapted for EEX certification.

• Benelux • Chilie • China • Denmark • France • Germany • Greece • Ireland • Italy • Poland • Spain • UAE • UK • USA

Key stats and ratios

€41.5 million Annual turnover in 2011

245

Number of employees

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Aminpro

Passing

the test

With the mining industry in South America growing at a faster rate than ever before, the services of Aminpro have never been in higher demand. It is because of this that the company today finds itself pursuing expansion of not only its service offering but its regional presence also

written by: Will Daynes research by: Richard Halfhide

be mining | 75

Aminpro

W

hen we last spoke to Roger Amelunxen, owner of Canadianbased A melunxen Mineral Processing (Aminpro), in March 2012, he spoke about the raft of changes that has occurred in his field of expertise over the previous 15 years.

Now, as we enter 2013, he is just as keen to discuss how the business has evolved in little more than 10 months since.

“In the time since we last talked,” he states, “we have begun work at our pilot plant and this has resulted in considerable growth for the business, with our workforce increasing to almost 100 people and our sales figures tripling. This has partly been as a result of the tremendous level of interest in what we do here in Chile from companies in Europe and the US. This interest has led to Aminpro undertaking work with phosphate ores and graphite processing, something that was unheard in Chile before now.”

Established in 2000, Aminpro has since provided consulting services on a global scale to the mineral processing industry. It has done so both on its own and in partnership with other leading entities such as Minnovex Technologies, Hatch Engineers, Fluor, JKTech and Project Nexus. “Today,” explains general manager, Leonardo Flores, “we are in a position to provide both laboratory pilot test work and engineering consulting for most of the stages in the value chain of a mining project.”

A major development within the business that has given Aminpro the ability to provide this complete service offering was the creation

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of Tailpro Consulting, a new business within the company. “What Tailpro has allowed us to do,” Amelunxen continues, “is provide a wide range of specialist tailings testing solutions, both on a laboratory and industrial scale.”

Generally, almost 99 percent of a metalliferous based ore that goes through a processing plant is an uneconomical waste material. “Every mine,” explains general

manager of Tailpro, Jon Engels, “is required by law to manage and store their tailings in an environmentally safe way and they tend to do this by storing them in earth-filled retaining dams. What the industry is particularly concerned with now is the consumption of water in mineral processing and with finding methods of reducing the amount that is sent to tailings storage facilities.”

“A major development within the business that has given Aminpro the ability to provide this complete service offering”

78 | be mining

Aminpro

Focused on supporting the the point where some mines existing work of Aminpro, are pumping ocean water or desalinated ocean water over Tailpro is looking into methods of recovering more 200 kilometres and up some water that can be sent back 3000 metres above sea level The year that Aminpro to the processing plant to be to their locations in order was established reused. By identifying such to fuel their processes. The sheer cost and complexity of methods the industry will such a process makes it all the not only be able to reduce levels of water consumption, but also reduce more important that they find ways of saving the threat of instability when it comes to the water. It is this urgency that is attracting the attention of people within the mining sector dams used to store waste materials.

“What you have to remember,” Amelunxen to the work we are doing here.” says, “is that most mines in Chile are located Another major project for Aminpro sees it within the high Andes where water levels are working in unison with other companies to already running low. In fact, it has gotten to develop new techniques for test work. “As ore

2000

be mining | 79

“While the industry continues to undergo dramatic changes, many of Aminpro’s core philosophies and practices remain the same” bodies throughout the world become more and more depleted,” Amelunxen highlights, “more tonnage is being treated and more tests are required to forecast production levels, and the test work required can prove expensive. What we are doing is coming up with methods of doing test work in a faster, more efficient and more cost effective manner. It is this work that we believe will result in huge changes in how ore bodies are

80 | be mining

developed over the next decade.”

While the industry continues to undergo dramatic changes, many of Aminpro’s core philosophies and practices remain the same.

“Here at Aminpro,” Flores enthuses, “we are very proud of the responsible approach we take towards the community here in Chile.

Just one of the things we do is sponsor a technical high school where young people are taught the skills that will allow them to

Aminpro

enter the industry after they finish school.

What we do is provide these individuals with on-site experience where they partner with our own technicians and more often than not this results in these youngsters coming back to work for us once their education is complete. This is one of the ways that we continue to develop what is, at the end of the day, our key asset and that is our people.”

As Aminpro’s operations in Chile flourish, it has begun to cast its eye towards areas where it can expand further as a business.

This has led to the creation of Aminpro Peru, a new company that is set to begin mobilising employees imminently into a market that it sees as possessing tremendous growth potential.

Looking further ahead, the company

also admits that it already has its eyes set on establishing itself elsewhere within Latin America, following a successful start-up of Aminpro Peru. As Amelunxen concludes, this incredible growth has not gone unnoticed. “We are increasingly being approached by companies inquiring as to whether we are for sale or not. The truth though is that with the amount of ideas we have, the expansion plans we have and the work we are doing with new technologies, we are just having far too much fun right now to seriously consider it.”

For more information about Aminpro visit: www.aminpro.cl | www.tailpro.com

be mining | 81

Services company in brief Collectively, we have more than 50 years of experience operating plants and metallurgical laboratories.

During the last 15 years we have focused on geometallurgical programs for the design of concentrators, coordinating and supervising test campaigns in metallurgical laboratories in Chile, Peru, the United States, and Canada.

This is why, when mining companies want a

quality test program they call us to make it happen. And now, with our own laboratory in Santiago, we are even better able to serve our customers.

Laboratory

Engineering

Metallurgical tests for feasibilitiy studies are generally aimed towards the development of geometallurgy and typification of minerals. These tests include:

Our process design and equipment sizing methodologies are based on state-of-theart geometallurgical mapping, extensive auditing of SAG and AG mills, ball mills, HPGR circuits, and flotation circuits, comprehensive flotation models that are among the most advanced in the industry, and some good, old fashioned, operating experience.

• Ball mill grindability tests (Bond tests) • Grindability tests • Starkey tests, SPI(trademark) or JK drop weight tests, under contract with others • Crushability tests • Kinetic flotation tests • Column flotation tests • Closed circuit flotation tests • Contact Cell flotation tests • Sedimentation tests • Bottle roll tests (leaching)

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Our process development philosophy is simple: the process should be designed for the highest economic return that satisfies the strategic interests of the owner. Our advanced modeling and geo-metallurgical methods employ an iterative procedure that allows us to select the key equipment and process characteristics such that the net of capital and discounted future costs and earnings are maximized.

AMLIB MANAGEMENT AND DIRECTORS OPERATIONS:

Leonardo Flores Gerente General

Luis Panduro Gerente Produccion

Luis Manriquez Ingeniero Senior Molienda

Patricio Berrios

Arelly Aranguiz

Álvaro Rojas

Ingeniero de Proyectos

Gerente Contadabilidad y RRHH

Mario Jerez Jefe de Planta piloto

Lorena Herrera

Maximo Cartes Jefe de Compras y Logistica

Ingeniero de Proyectos

Francisco Espinoza

Directors:

Roger Amelunxen

Jefe de Turno Planta Piloto

Director de Negocios

Ingeniero Senior Calidad & Desarrollo de Aplicaciones

Gerardo Aravena

Peter Amelunxen

David Barriga

Supervisor Laboratorio Metalúrgico

Director de Metalurgia

Ingeniero de Proyectos

Esteban Rodriguez Jefe de Laboratorio

Hector Saez Jefe de Ingenieria

Viviana Ramos

Administration:

Marcelo Amelunxen Controlador Financiero

Alex Carvajal Gerente Administracion

Ingeniero de Proyectos

Plant services

corporate Office

Aminpro has many years experience operating and optimizing concentrators, and offers a wide variety of engineering services to complement our metallurgical laboratory testwork. Collectively, we have experience operating, modeling, and optimizing more than 30 major concentrators around the world.

Cerro San Cristóbal 9511, Quilicura Tel: +56 (2) 2 958 2471 Tel: +56 (2) 2 958 2472 www.aminpro.cl | www.tailpro.com

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Training the next generation CAE President, Damian McKay, discusses how CAE Mining is building further upon CAE’s legacy in simulation and training

written by: Will Daynes research by: Paul Bradley

84 | BE Mining

CAE Mining

The CAE Terra Mining simulator is the latest evolution of CAE’s leading-edge training solutions

CAE Mining

W

herever life may take us, we are all born with the same basic skill set. However it is from this point onwards that we each develop and progress as human beings in hugely different ways from one another. Nevertheless, the vast majority of us will one day find ourselves in a similar position to when we were young in that we will require training to embark on our future career paths. Indeed, whether the person you meet on the street is a call centre worker, a surgeon or a mine operator they will all share in common the fact that they had to undertake the necessary training in order to excel at what they do.

Throughout the world there are countless bodies, organisations and institutions that cater for the training needs of people entering all manner of professions, yet it takes something special to be recognised as a global leader in your field when you exist in such a populous market. One such company is CAE, a foremost provider of modelling, simulation and training for civil aviation and defence, employing approximately 8,000 people at more than 100 sites and training locations in 30 countries.

Founded in 1947, CAE today boasts a highly diversified business, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, integrated enterprise solutions, in-service support and crew sourcing.

The company applies simulation expertise and operational experience to help customers enhance safety, improve efficiency, maintain readiness and solve challenging problems.

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It is these simulation capabilities that CAE is now leveraging in new markets such as healthcare and mining. From exploration to resource modelling, optimisation, mine design, scheduling and financial modelling, CAE Mining offers cutting edge software solutions that enable users to rapidly generate robust scenarios in a secure governance framework. These software solutions are integrated with adjacent offerings in

consulting and training to ensure that CAE Mining offers the best support in the industry, maximizing the potential of mining assets.

“There are two key points of heritage that we have leveraged in order to develop into the business that we are today,” explains president, Damian McKay. “The first is the fact that CAE is recognised for training over 100,000 people a year to the highest regulatory standards. The second comes from

“Since the acquisition of The Datamine Group, CAE Mining has continued to invest significant capital into expanding its software portfolio”

CAE Terra Mining simulator in an underground vehicle

88 | BE Mining

CAE Mining

Mining simulator in container design for portability on site

the 25-plus years of history that we acquired through the purchase of The Datamine Group, a leading geological mine planning package that really led the field in terms if geology software, in April 2010.”

Since the acquisition of The Datamine Group, CAE Mining has continued to invest significant capital into expanding its software portfolio. In doing so it has strived to focus on the core themes of safety and productivity, looking at how it can help mines become smarter in regards to having better trained operators, a safer working environment and achieving higher productivity from existing asset bases. Meanwhile, from a geology perspective the focus is on helping clients discover what is actually under the earth, before identifying how best to execute

work on a deposit by utilising CAE Mining’s consultant services and software tools.

“All across the mining industry,” McKay continues, “the primary message today is safety first. This is being driven by several factors, not least of all the hugely different levels of experience that exists in developing countries and the unique nature of the training environments themselves. What we are also witnessing within the mining sector is an increasing client focus on costs and productivity, and on getting the most out of all of their operators.”

As operations have spread across the world so too has a wealth of new technologies and approaches to mining. With each new industry development or innovation comes the need to provide fresh training of those

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CAE Terra Mining simulator-revolutionary classroom design

““One sure-fire way to bring any project to its knees,is to have untrained operators using multi-million dollar equipment in the wrong way” workforces impacted by the changing landscape of the sector. “One sure-fire way to bring any project to its knees,” McKay stresses, “is to have untrained operators using multi-million dollar equipment in the wrong way. Therefore, being able to take people and using simulation to bring them up to speed with the latest techniques and methods has never been more essential.”

One of the most important and successful

90 | BE Mining

ways that CAE Mining offers high-quality training is through its CAE Terra Mining simulators. By building on CAE’s near 65 year history of perfecting the science of simulation, the company has been able to develop the next generation of fully-integrated simulation products for the mining industry, ranging from desktop trainers and e-learning to parttask trainers and high-fidelity simulators, all running on the same high-fidelity software.

CAE Mining

Ergonomic instructor station

The CAE Terra Mining simulators are the latest evolution of CAE’s leading-edge training solutions. The mining simulators cover a range of mining equipment and provide unparalleled realism with the most authentic experience, faithfully and fully replicating the equipment’s performance in normal and abnormal operations.

Backed up by the financial resources and added levels of diligence and oversight that you would expect to come from being part of a $1.8 billion global enterprise, CAE Mining continues to be greeted with a high level of excitement from mining companies of all sizes that it received when first entering the market. Understandably, it is this excitement that the company remains committed to building upon in the months ahead.

Six degrees of motion

“We have experience some strong levels of growth in our different solution segments,” McKay concludes, “and we fully expect this to remain the case going forward. In an environment where we envision that the cost of bad decisions and poor training will increase in the years to come, we feel it is inevitable that the type of services that we provide will only gain in popularity. As such we will continue to expand the size of our team and our global reach, while at the same time investing in the research and development that will allow us to build upon our existing range of products.”

For more information about CAE Mining visit: www.cae.com/mining

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Services company in brief CAE was founded in 1947 and is headquartered in Canada. With customers in more than 190 countries, CAE has the broadest global reach of any simulation and training equipment and services company on the market.

CAE mining is at the forefront of the industry in developing and providing innovative technology and services to plan, manage and optimise mining operations. With operations in nine countries, CAE Mining offers enhanced solutions ranging from exploration data management and ore-body modelling, to mine planning and operations

management. We have a technical consulting team of over 100 experienced geologists and mining engineers servicing customers in close to 100 countries.

CAE Mining has recently released its CAE Terra range of mining equipment simulators.

MANAGEMENT AND DIRECTORS Lynton R. Wilson

Stéphane Lefebvre

Chairman of the Board

Vice President, Finance and Chief Financial Officer

Marc Parent President and Chief Executive Officer

Hartland J. A. Paterson

Jeff Roberts

Vice President, Legal, General Counsel & Corporate Secretary

Group President Civil Simulation Products and Training & Services

Gene Colabatistto

Bernard Cormier Vice President Human Resources

Group President Military Simulation Products and Training & Services

Éric Bussières

Nick Leontidis

Sonya Branco

Executive Vice President Strategy and Business Development

Vice President and Controller

92 | BE Mining

Vice President Finance – Civil and Treasurer

cae mining stock watch

products • Simulators • Software • Courseware • Training service

operating territories Exchange NYSE

Shares 259.69M

Symbol CAE

Market Cap. 2,511.21M

Currency USD

Div/yield 0.05/2.01

finANCIAL HIGHLIGHTS

Operating results Revenue Net income Backlog Financial position Net cash provided by operating activities Capital expenditures Total assets Total long term debt, net of cash

• North America • South America • Africa • Europe • Middle East • Asia • Oceania

Key stats and ratios 2012

2011

1,821.2 1,630.8 182.0 160.9 3,724.2 3,449.0

Q4 (Dec ‘12) 2012 Net profit margin 7.18% 9.99% Operating margin 11.95% 16.59% EBITD margin - 22.85% 4.03% 6.07% Return on average assets Return on average equity 14.58% 18.62%

233.9 226.3 165.7 111.3 3,183.7 2,817.3 534.3

383.8

(Amounts in USD millions)

Financial information from Google Finance and Thomson Reuters

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Moving with

Managing director, Paul Saker, discusses how MineWar enterprise into a preferred supplier in its field of exper how it plans to help influence South Africa’s mining in

written by: Will Daynes research by: Jon Bradley 94 | be mining

MineWare Consulting

h the times

re has grown from a small family rtise in less than two decades and ndustry in the years to come

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MineWare software allows the user to track labour hierarchy

MineWare Consulting

A

s the mining sector in South customers’ needs. This is one of the major Africa has evolved, so too have reasons why clients come back to us time and the mechanisms, tools, items time again. They know that when they want of equipment and software something changed or modified they need needed to service what is a only ask and we will make it happen.” dynamic, complex and challenging industry.

Another fact that Saker is equally proud It was in the 1980s that MineWare’s managing to highlight is that in 17 years of doing director, Paul Saker, first identified the fact business, MineWare has not once lost any of that this rapidly growing industry required the priceless skills that its employees have access to much more detailed financial brought to the table. “My mission, first and analysis when it comes to fixed and variable foremost, is to ensure that everyone is happy here in what they are doing and that cost modelling.

“I remember,” he explains, “one person they are rewarded appropriately for their approaching me back then and saying how contribution to the company. Time after one particular problem in time I have seen instances mining at the time was that where absolutely critical many of the key decision people have left positions at our competitors resulting makers had no real idea of what was actually occurring in a collapse of unsupported underground in their mines software. Thus, what we The year that MineWare on a day-to-day basis, and pride ourselves on is that was founded that no one was actually those same people who addressing this issue at the began working on our time. What we have done since is really critical systems 17 years ago are still here concentrate on aiding the short term control today and are now sharing their expertise of our clients mining operations.” with the next generation of employees.”

One of the things MineWare has been MineWare not only develops customised software, but adapts and redesigns able to do by retaining and developing its a client’s current products to ensure in-house expertise and knowledge is work seamless integration of the system and towards making continual improvements easy understanding for operators. It is this to not only its own operations, but that of flexibility that has brought the company its clients. This is the motivation that gave success in South Africa’s mining industry. rise to the recent creation of its electronic “We most certainly are not the type of business management system (BMS) for its business that sells off-the-shelf systems,” internal process.

Saker continues. “When we take a product or “Various pressures in the mining industry system into a clients’ mine we go in and bend, across the globe,” Saker says, “coupled with modify and customise it to suit that individual a more demanding workforce, mean that

1996

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decision makers now have to have more and more information available at their fingertips.

This is especially true when it comes to underground operations where there are often thousands of people going underground every day and where it would literally take months for someone to go around surveying each working area.”

A separate trend that the company has increasingly seen as driving its business forward is the growing importance of health and safety, something that is particularly true of the mining industry in South Africa.

“In a good number of the meetings that I attend these days,” Saker states, “the primary concern raised is a clients’ ability to identify unsafe working environments and, having done so, make all of the mines’ users aware of these conditions via the use of emails, SMS messages and so forth. This is something we are able to do programmatically and what that ultimate means is that we are providing to our clients a system that drives their employees, not the other way around.”

Other developments over the last 12-to-18 months in South Africa, particularly the wellpublicised illegal strikes that have taken place at various mines across the country, have only served to heighten awareness of the fact that mine owners need, now more than ever, to be

able to control the whole production process much more rigidly.

“The days of making huge profits whether you do things in the right or wrong way are long gone,” Saker says, “and the margins of error are so much smaller now than they were before. It is a simple fact that in today’s market you have to work a hell of a lot harder and smarter, using all of the appropriate tools that you have available. From our perspective, what

“In 17 years of doing business, MineWare has not once lost any of the priceless skills that its employees have brought to the table” 98 | be mining

MineWare Consulting

MineWare software tracks of the location and number of cars

this means is that we are seeing a very strong push from decision makers to start quantifying, comparing and auditing all of the information and data that is coming from the mines.”

As a way of properly preparing itself for what the future of the mining sector in South Africa holds, MineWare has made it a priority to ensure that all of its systems are SOX compatible and that all areas of said system are fully auditable.

MineWare will also be looking to de-humanise the capture of information where possible, specifically in areas where the use of telemetry is key and in the trackless operations that already exist in the country.

“What we are working to develop,” Saker concludes, “are solutions that will mean that people won’t have to come out of the mine to actually log information. We are currently

building partnerships with businesses that are developing rugged tablet computers that will be designed to handle the harsh conditions that underground mines possess. The times are continuing to change and what we want to do is usher in a time where all necessary admin can be done underground. This, we hope, will lead to a scenario where the person responsible for this admin is able to finish his shift and when he sees the light at the top of the shaft, knows that he is now heading home to his family. That is the future we want to help create.”

For more information about MineWare visit: www.mineware.co.za

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Services company in brief Since 1996, MineWare Consulting has produced a range of software solutions to improve business systems and production by offering real time reporting to flag problems as they arise, thereby saving time and costs. MineWare’s core activity is providing products that fit a client’s precise needs by tailoring its software.

As requirements change, MineWare integrates changes seamlessly to ensure no time is lost on having to retrain personnel on new systems.

MANAGEMENT

corporate Office

Paul Saker

Mineware Consulting 14 Hillel Avenue Northcliff Johannesburg

Managing Director

Tel: 011 888 2116 Fax: 011 888 1626 Email: info@mineware.co.za www.mineware.co.za

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mineware consulting Products Mine production The all-encompassing real-time, short term planning, booking and measuring tool, that reports on all daily issues linked to production e.g. tons, grade, square metres, development metres per man, square metres per man, panel problems, expected tonnage, planned not mined, planned vs measured, crew availability and efficiency, costing, stores and ordering to name a few.

Survey This module allows capturing of all monthly survey measurements, providing reports on planned vs booked vs measured, as well as specialised survey reporting (i.e. ore reserve depletions, ore flow reports, tonnage returns, etc.). The data is also used to verify/highlight user input error in CPM/PAS. Equipment Management All Equipment (and Plant) is initially captured together with individual components and their serial numbers. Through an inbuilt tracking methodology, components are tracked. For example, underground, to Station, to Bank, to Workshop. They may then be repaired and brought back into stock items(With Complete History) or sent out to a vendor/supplier for repair/refurbishment - tracked on return to the warehouse and back into stock. They may also be scrapped during this procedure. The Engineering Tracking System also issues Job Cards for Breakdown and Preventative Maintenance.

MEMS The Mobile Equipment Management System (MEMS) was developed to provide the client with a system that is, or can provide: • Easy to maintain • Intuitive in its use • Provides instant factual information with respect to production rates, availability and utilisation • Provide current and historical cost of ownership • Instant access to Breakdown Analysis and Associated Costs by exception • Provide cost of maintenance • Aid in the Life of Equipment Planning • Examine Multiple Spares Usage • Residual Costs in Equipment • Operational Damages Costing and Reporting • Operator Performance • Fuel Usage(l/hr and cost/ton) • Tyre - Cost - Residual Usage - Achieved Usage Mine Bonus Managing the Bonus calculations for all staff linked to operations above and below ground. It allows for multiple rules and structures within the Mining structure making it the most versatile and customisable Bonus system in the industry, tried and tested for years. The system also integrates with the Safety and short term control system.

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Saving downtime and costs Managing director Alan Wood describes the progression from the supply of hydraulic hoses to inspection services that save downtime and costs for mining operations in Africa

written by: Martin Ashcroft research by: Richard Halfhide

102 | BE Mining

Hyspec Mining Services

Assembling hydraulic hoses in Burkina Faso

Hyspec Mining Services

F

ounded in 1996, Hyspec Mining days there were no phones, no internet, and Services specialises in the to send a fax involved a 60km round trip to provision of hydraulic, fuelling pay $5 per page. Through some acquaintances and lubrication equipment and I found out about an underground mining services to the mining and operation in Obuasi in the Western region of exploration industry in Africa. The company’s Ghana, so I made a nine hour taxi journey growth over the last fifteen years has been a and found an Australian drilling company phenomenon, so much so that its major parts with hydraulic hoses dripping off its drilling supplier Manuli Fluiconnecto, a subsidiary of rigs. The owner of the business gave me 45 the Italian Manuli Rubber Industries, acquired minutes in his boardroom and explained to me a 51 percent equity stake in the company on the mining industry in Ghana; when I came 31 November 2012. out I thought – this is where we have to be.”

Wood put together a 40 foot container “It’s a win-win situation for us both,” says managing director Alan Wood. “They gain a of hydraulic hoses, assembly equipment, significant share of the African parts and fittings and sent mining market and we secure it to the Ghanaian port of continuity of supply, as well Tema, meeting up with it as opportunities to spread our a couple of months later to business model. Being part of start a bridgehead, register a large group also provides a the business, recruit some Hyspec Mining employees and start training buffer in the event of a shaky Services established them. It soon became clear, economic future.”

Hyspec has come a long however, that this operation way since 1996. In a similar business in the UK was still too far from the mine sites to be as at the time, Wood was looking for an overseas effective as it should be. opportunity to excite him. One of his friends “After about six months the mining guys (also a customer) was engaged in deep sea were complaining that we weren’t much use diving in support of the early oil exploration to them in Tema, 300 kms away, so one of the operations on the Gold Coast offshore Ghana. mines assisted by clearing a patch of jungle “He talked up the African experience and outside of their perimeter; they laid a concrete encouraged me to visit, stating there was base and we built our first containerised simply nobody providing hydraulic services workshop. That was in 1997 in Tarkwa at there,” says Wood. Eventually, he went. the Iduapriem mine. We opened our second He was not immediately inspired by one at the Ashanti Gold operation in Obuasi what he saw, but then fell upon the mining and we now have over 50 workshops across industry. “Fifteen years doesn’t sound like a twelve countries in sub-Saharan Africa.”

Operating from onsite workshops has long time but it’s a lifetime away in terms of infrastructure in Africa,” he says. “In those allowed Hyspec to progress from the simple

1996

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90% Proportion of Hyspec’s contracts on gold projects

Hose crimping on site

106 | BE Mining

provision of hydraulic hose assemblies into a service provider focused on reducing customers’ downtime and operating costs by inspecting their production equipment— excavators, drill and blast drilling rigs, and dump trucks.

“Downtime on an excavator can cost many thousands of dollars per hour when they’re producing gold,” says Wood, “and 90 percent of our contracts are on gold projects. If a hydraulic hose fails, even with us onsite it might still take up to three hours to replace it. By the time one of the client’s service technicians gets down to the pit, takes the hose off, brings it to our workshop for us to make the hose, then gets it back down to the machine and fits it, they may have had three hours of downtime. That could be ten, twenty, even thirty thousand dollars’ worth of lost production. Hose breakdowns not only incur production loss, but affect other areas such as oil contaminations of the high grade gold, equipment damage, personal injury situations or environmental damage. The cost of a hydraulic hose pales into insignificance compared to the cost of the breakdown and associated downtime, so it’s really important that we work to catch a hose before it fails.”

This is where Hyspec’s inspection service

Hyspec Mining Services

Hyspec evolution of the hose container

is worth its weight in gold. The mine’s equipment will have maintenance periods for refuelling and lubrication a couple of times a day, explains Wood, so if that time can be used to inspect the hoses it gives the customer the opportunity to replace suspect hoses before they fail. “We also carry out root cause analysis of failures,” he continues, “which allows us to pinpoint areas that the customer might need to start concentrating on to reduce downtime and improve productivity.”

The average life span of a hose might be six months on a drill rig, or a year or two on an excavator, but it can vary for a variety of

reasons. “It depends how hard the customer is working it,” explains Wood. “How well is the hose routed within the configuration of the machine? Is it chafing for example?

How good and sympathetic are the drivers or operatives? Are they damaging the hoses against rocks? Temperature of the hydraulic oil is a major factor, and it is important to keep the hydraulic oil cool. There are a lot of reasons why hoses fail. That’s why we conduct root cause analysis so we can identify which machines are most at risk and why. We can then make plans to help a customer reduce hose failures and improve their uptime.”

“One of the mines cleared a patch of jungle outside of their perimeter, laid a concrete base and we built our first containerised workshop” BE Mining | 107

As the business grew and its customer destinations multiplied, it became apparent that changes would need to be made to the logistics operation to get the right products to the right place at the right time. “We became a very large purchaser of hydraulic hoses and fittings,” explains Wood. “The GFC manufacturers simply do not keep inventory, however, and the lead times have extended significantly. Miners are not interested in

excuses, they need the service and product immediately, and the manufacturers were struggling to provide the stock in the volumes we were ordering.”

To keep up with customer demand, Hyspec ran up an air freight bill in excess of a million dollars a year, so the decision was made four years ago to invest in a purchasing and logistics facility in Perth, Australia, to consolidate all its shipments there. “Now we’re in charge

“Downtime on an excavator can cost many thousands of dollars per hour when they’re producing gold”

Hose technician inspecting service truck for potential failures

108 | BE Mining

Hyspec Mining Services

Diving umbilicals can be a challenge

of all our shipping to individual countries,” says Wood. “It has reduced our annual air freight bill by three quarters, and allowed us to get the right product in the right place to better support our mining customers. We know we are not perfect, however, and we are continually looking for improvements.”

Hyspec has had a single source agreement with Manuli for hydraulic hoses and fittings from the beginning, with 80 percent of its business deriving from Manuli products.

The other 20 percent relates to greasing, lubrication and fuelling equipment.

“Now we are part of their direct family we have new opportunities in the oil and gas industry where Manuli is making an impact,” says Wood. “The use of hydraulic

systems in offshore oil is considerable and we already have operations in Takoradi in Ghana, which is a new offshore centre for oil production. We’re also opening up in Cote d’Ivoire where there is already an offshore oil production industry. Guinea and Sierra Leone have development phase drilling, as well as Tanzania where we have a presence already, so the sub-Saharan region is full of oil and gas opportunities.”

Between the mining and oil and gas sectors, Hyspec is looking to set up six to ten new workshops in 2013, but finding a skilled workforce to fulfil this expansion is a major challenge. “There are little to no skilled workers available, and we cannot steal from our clients,” says Wood, “so we

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Conventional single containerized workshop

“Now we are part of Manuli’s direct family we have new opportunities in the oil and gas industry” must train our own technicians. We have a full time technical training manager who ensures that all our technicians are up to scratch, and we have now developed a train the trainer system within each country, which he manages.”

Whilst multinationals continue to expand in Africa, it’s becoming harder to employ expatriate labour, says Wood. “The governments naturally want their own people

110 | BE Mining

to be employed, not just within the mining or oil and gas industry but by all the multinational companies. We’re all under pressure to reduce our expatriate headcount. I believe it’s the right way to go, but it takes significant time and effort to bring the local employees up to a standard where they can provide the same level of service as any other global company in the first world. Our hoses are assembled in accordance with first world fabrication

Hyspec Mining Services

New workshop format

procedures: we want to avoid contamination on our customers’ equipment, and ensure that the hoses made in our workshops last as long as possible. This involves using appropriate manufacturing equipment, internally cleaning the hoses before they are installed on the mines’ equipment, storing them correctly, and banning practices such as mixing and matching, hose re-ending or welding of fittings. All of the hoses made by Hyspec are tagged and carry a three month warranty.

Meeting these objectives in Africa therefore requires extended training in the assembly and identification of high pressure hoses and systems, and involves close monitoring in every workshop to ensure that procedures are understood and strictly followed at all times.”

After talking to Alan Wood, I am impressed

Central workspace for new workshop

by Hyspec’s success on a continent known for its difficult business environment— from a one workshop company providing hydraulic hoses to a single mine in Ghana, to a group with over 50 workshops spanning twelve African countries, providing a full range of services aimed at reducing the mines’ operating costs and at improving their production. Hyspec and Manuli’s combined expertise will allow the group to grow further and expand to other markets and areas very quickly. Time and effort are definitely not a problem for Hyspec.

For more information about Hyspec Mining Services visit: www.hyspec.com

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Services company in brief The Hyspec Mining Services Group of companies, head quartered in Australia is focused on providing replacement hydraulics parts and service equipment to the mining and exploration industry across Africa. Hyspec has a large purchasing and logistics centre in Perth, Western Australia, with operational central warehouses in Ghana, Guinea, Mali, Sierra Leone, Burkina Faso, Tanzania and Zambia. All regional offices are registered under the Hyspec name.

Hyspec’s first African venture was in Ghana in 1996, and since then, with over fifteen years of direct mine site experience, Hyspec has been providing hydraulic, fuelling and lubrication equipment and services to mining projects across Africa. Hyspec provides services from

over fifty wholly owned mine-sites based workshops in seven countries, and provide round the clock services to mining contractors, drilling companies and mine support businesses operating at the mine sites.

The products and services supplied by Hyspec in Africa to the mining industry are critical, demonstrably reduce downtime, and position Hyspec as a welcome partner in any new mining project.

MANAGEMENT AND DIRECTORS Alan Wood

David Dobson

Managing Director

Operations Manager Sierra Leone

Jim Moran

Charlie Harrison

Administration Director and Parent Company Secretary

Operations Manager Ghana

Tommy Bowman

Operations Manager Tanzania

Sales Director

Catherine Mauvais Group Business Development Manager

Fanie Gouws Operations Manager Mali

112 | BE Mining

Leon Gildenhuys Margot Dufour Operations Manager Burkina Faso

Marcel Rossat Operations Manager Guinea

Hyspec Mining Services services Hyspec strives to ensure that all of its customers’ expectations are exceeded in all transactions, and to ensure close relations with its customers, Hyspec operates its business as close as possible to its customers’ facilities.

Hyspec provides replacement hydraulic hose assemblies and associated parts 24/7 from over 50 mine site based workshops and stores to cater for the wide range of heavy duty mining and drilling equipment operating on mine sites.

As part of its portfolio of complete end to end services, Hyspec also stocks and supplies adaptors, lubrication and pumping equipment, dispensing and handling parts, industrial hoses, valves, pneumatics and pressure gauges, as well as monitoring/ metering equipment. The parts

are stocked at each workshop and are assembled by fully trained, experienced local staff, working as an integral part of the mine’s team. In addition, inspection and fitting services coupled with failure analysis systems, are provided to the customers with the objective of reducing the customers’ equipment downtime.

Hyspec also maintains hydraulic and lubrication components on service skids, fuel bowsers and workshop lubrication facilities. The workshop and stores are supported by in country warehouses to ensure adequate stocks of equipment are always available. Expatriate management is available in each country to work closely with customers in order to ensure that their needs are met in a timely manner and services delivered and constantly improved upon as required.

offices Australia T: +61 89 49 34 241 F: +61 89 45 92 895 E: australia@hyspec.com

Guinea T: +223 20 21 01 74 F: + 223 20 21 71 68 E: guinea@hyspec.com

Tanzania T: +255 28 25 00 674 F: +255 28 25 02 261 E: Tanzania@hyspec.com

Burkina Faso T: +226 50 36 03 06 E: burkina@hyspec.com

Mali T: + 223 20 21 01 74 F: + 223 20 21 71 68 E: mali@hyspec.com

Zambia T: +260 21 23 10 344 E: zambia@hyspec.com

Ghana T: +233 31 20 32 353 F: +233 31 20 32 243 E: ghana@hyspec.com

www.hyspec.com Sierra Leone T: +232 22 222061/220072 F: +232 228149 E: sierraleone@hyspec.com

BE Mining | 113

Copper countr Zambia is blessed with abundant copper resources, but processing the mixture of ores at the Kansanshi mine has been a challenge for First Quantum Minerals, as Meiring Burger explains

114 | be mining

First Quantum Minerals: Kansanshi Mining Plc

ntry

written by: alan swaby research by: paul bradley

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The Kansanshi open pit mine

First Quantum Minerals: Kansanshi Mining Plc

H

ow can it be that a significant copper deposit, known for over 100 years, owned and operated by a progression of operators – including two leading international names – can struggle along for 93 years and then become an overnight success in 2005?

“It’s not for want of trying,” says Meiring Burger, mine manager at the Kansanshi Copper Mine in Solwezi, northern Zambia.

“But the geology here is very difficult, with copper oxide at one end of the spectrum and copper sulphide at the other. In between there is a lot of mixed ore that mine operators simply didn’t know what to do with.”

At first neither did First Quantum Minerals – the eighth largest copper producer in the world and 80 percent majority owner of Kansanshi. First Quantum had been in Zambia since the mid 1990s, trying to make a living out of reclaiming lost copper from left over tailings ponds. It worked – to a degree - but in reality the operation was making more money from the acid produced as a bi-product of the reclamation process than from the copper itself due to depressed commodity prices.

As a way of trying to improve matters, First Quantum started mining and exploration on a small scale until the opportunity came along to buy Kansanshi.

“Incredible as it seems,” says Burger, “in the first year of operation we produced more copper there than had been produced in the entire previous century. But even we were stockpiling masses of mixed ore, not really knowing what best to do with it.”

The open pit mine at Kansanshi consists

be mining | 117

LIEBHERR MINING MORE FOR LESS

The Mining Equipment Division within the Liebherr Group enjoys the strengths and commitment of a family owned company and has achieved a high degree of trust as an active, accepted and valuable partner to the mining industry.

The Liebherr mining equipment range comprises nine hydraulic excavators ranging from 100 to 800 tons, 2 trucks (240-ton T 264, 400-ton T 284), the 60-ton PR 764 dozer and the 23-ton L 586 wheel loader.

Liebherr mobile cranes are used widely in mining operations for various building and plant service activities. More types and models of these machines are currently under development.

118 | be mining

The Liebherr-Mining Equipment Colmar SAS product line includes mining and dredging excavators powered by diesel engines or electric motors. We provide the following hydraulic excavators models: R 9100, R 984 C, R 9150, R 9250, R 9350, R 9400, R 995, R 996 B and R 9800. These excavators are equipped with bucket capacities from 7 to 45 m3 (13 to 76 tonnes material weight) and engine power ratings up to 4,000 hp.

At present, 21 Liebherr hydraulic mining excavators are working in Zambia operated by major mining companies or contractors.

Today, First Quantum Minerals Ltd operates 6x R 984 C Diesel, 2x R 9250 Diesel, 1x R 9350 Diesel and 4x R 9350 Electric at

First Quantum Minerals: Kansanshi Mining Plc

Kansanshi mine site in Zambia. Liebherr has confirmed sales for three excavators to be delivered and commissioned in 2013.

Liebherr has not established a company in Zambia, but we support our customers through dedicated onsite Liebherr Technicians. Our customers located in Zambia have access to the Liebherr Component Rebuild facility in South Africa.

Liebherr’s distribution is mostly conducted by its own sales and service organizations.

This approach brings Liebherr companies closer to customer operations for a better understanding of their needs and requirements. It also allows the experienced engineering teams to adopt customer feedback into the mining equipment design.

By focusing on the mining industry’s needs, Liebherr designs and manufactures innovative mining products for the global mining industry and is dedicated to exceed our customers’ expectations in terms of productivity, efficiency, reliability, customer support, safety and environmental impact.

Productivity Liebherr Mining Equipment enables superior productivity by loading and hauling maximum tonnage in the shortest amount of time.

Efficiency Liebherr combines the proven capabilities of previous models with new features that improve operational efficiency.

Reliability To maximize equipment reliability, Liebherr combines manufacturing expertise with superior monitoring and diagnostic capabilities.

Customer Support Liebherr builds more than just mining equipment; Liebherr also builds customer partnerships.

Safety Mining demands an ever-vigilant focus on safety, and Liebherr strictly adheres to industry standards. Liebherr equipment is designed to diminish risk even under the most extreme mining conditions.

Environment Liebherr optimizes mining equipment for fuel economy, emission compliance, and extended service intervals.

Contact details Liebherr-Mining Equipment Colmar SAS 49, rue Frédéric Hartmann - FR 68025 Colmar Phone: +33 (0)3 69 49 21 98 Fax: +33 (0)3 69 49 23 18 Email: info.lec@liebherr.com www.liebherr.com

be mining | 119

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc of Lorem two very ipsum largedolor pits in sit the amet, consectetur ground adipisicing that elit, will sed eventually do eiusmod tempor become incididunt oneutextremely labore et dolore large magna aliqua.

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BME AND OMNIA BME and Omnia are committed to the mining industry BME, a subsidiary company of Omnia, provides explosives and explosives related products and services to the mining industry. BME has operations in South Africa, Swaziland, Malawi, Namibia, Botswana, Zimbabwe, Zambia, DRC, Mali, Sierra Leone, Mauritania, Senegal and Mozambique.

BME’s core strength, the supply of explosives to the opencast mining industry, is performing admirably and is complemented by good volume growth in its range of packaged (fractured) explosives and products in the initiation accessory field. Its sales growth in shock tube and electronic detonator products is particularly noteworthy.

Omnia just recently completed a new R1.4 billion (US$180 million) nitric acid complex that will be the new catalyst for growth for BME. The new

plant’s annual capacity of 73,000 tons (N) of nitric acid is some 40 percent higher than the existing plant, which despite being 30 years old is still in excellent condition and will continue to operate. The two nitric acid plants place the Group in a leading position for the supply of nitrates to the mining and agriculture sectors in South Africa and deeper into Africa.

BME has been involved in the Zambian mining industry since the turn of the century. Not only is it the dominant supplier to quarries and construction throughout Zambia, it is also a major explosives supplier to the rapidly expanding mining operations in the North West Province.

BME has a major emulsion manufacturing plant at First Quantum’s Kansanshi Mine and is the sole supplier to this massive mining operation. www.bme.co.za

OCTOBER be mining 2012| |1212

A modern office block of 1,100m2 located in Makeni, Lusaka currently used as Head Office for Lamasat International

A modern show room about 1 Km from the Lusaka Central Business District along Kafue Road

Modern productions lines for pipes, fittin polypropylene bags, blow film and plastic tanks, wood works and aluminium works.

A modern shopping centre along Kafue Road, about 4 Km from the Lusaka Central Business District

ngs, c printing, water .

Our company’s business activities are spread out at a number of locations around Lusaka, with our Head Office being located in Chipwenpwenue Road off Kafue Road, Makeni, Lusaka.

We have ultra modern facilities which include 50,000m2 of factories, warehousing facilities and modern offices.

We continually invest to grow our portfolio of facilities and currently developing show room and warehousing facilities along the busy Kafue Road in Lusaka.

Our range of products include: • HDPE PIPES – 16mm to 630mm • UPVC Pipes – 16mm to 250mm • Supramyn Pipes • HDPE Fabricated Fittings • Megaflex Mining Hose Pipes • Heliflex Suction Hose pipes • All Mining Applications • Woven Bags • Water tanks – 200 litres to 12000 litre • Aluminum Products • Wood processing making furniture Tel: 260 211 273142/273145/6 | Fax: 260 211 273141 Email: sales@lamasat.co.zm | www.lamasat.co.zm

The right partner.

The right chemical technologies.

At just the right time.

Being a partner to your mining operation is not just our profession, it’s our passion. We deliver leading chemical technology in Alumina Refining, Mineral Processing and Solvent Extraction—innovations powered by a rich history of efficiency and value. We provide onsite support, where our experienced team works right alongside you to resolve challenges with robust solutions. As a recognized global leader, we can offer you peace of mind through our commitment to steady, reliable product supply. Combined, working with us provides you an opportunity and a partnership you won’t find anywhere else.

To learn more, please visit cytec.com/miningleaders

Alumina Refining | Mineral Processing | Solvent Extraction custinfo@cytec.com | cytec.com/miningleaders US Toll Free: 800.652.6013 | Tel: 973.357.3193 © 2012 Cytec Industries Inc. All Rights Reserved.

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US$340 million. tempor adipisicing elit,forsed do eiusmod incididunt ut labore “Our et dolore engineers,” magna aliqua. says Ut enim ad minim veniam, Burger, “spentquis 18 nostrud months exercitation ullamco m a k i nlaboris g nisi s i g ut n i faliquip icant ex ea commodomodifications consequat. Duis aute to irure the dolor in reprehenderit in voluptate velit processing plant. When esse cillum dolore fugiat nullaback pariatur. the eu mine went into Excepteur sintproduction occaecatahead cupidatat of schedule, non proident, sunt in there culpa was quiuniversal officia deserunt acclaim mollit anim id for est laborum. the technical Lorem solutions ipsum First dolorQuantum sit amet, had consectetur developed.” adipisicing elit, sedAtdoKansanshi, eiusmod tempor ut labore the incididunt conventional ways et magna aliqua. enim adores minim of dolore processing oxide andUt sulphide are

CYTEC Cytec Industries is the main supplier of specialty reagent technologies to the Kansanshi mine in Zambia. Cytec supplies both flotation reagents and solvent extractants.

This supply position is a result of a strong relationship between Cytec and Kansanshi built up over the last seven years. First Quantum, the primary owner of Kansanshi Mining PLC, and Cytec Industries are all committed to using innovative technology and strong two-way cooperation to contribute to Kansanshi’s operational success.

More specifically, Cytec provides AERO® MX-5149-selective collector, ACORGA® OPT® 5510-solvent extractant, AEROFROTH® 68-frother and has an active flotation modifier program in progress. The selective flotation collector, AERO® MX-5149 was introduced in 2011 to replace traditional xanthate reagents resulting in significant reductions in dosage and superior mineral selectivity in the presence of iron sulphide minerals. Additionally, the risk

profile of the Cytec collector is much improved as compared to xanthates.

ACORGA® OPT® 5510 solvent extractant has improved copper transfer and iron selectivity.

These technical attributes have translated into lower operating costs.

Most recently, Cytec and Kansanshi have agreed to use the specialized flotation modifier technologies that Cytec has, to optimize problematic oxidized ores. The relationship between the companies is focused on serving the Kansanshi operation with innovative products that are a best fit. Additionally, Cytec is committed to supporting the operation by visiting the site for 1-2 weeks each month to focus on solving technical challenges and improving operational performance.

Cytec is proud to support Kansanshi via this partnership and is happy to help ensure the success of their refining now and in the future. www.cytec.com

NOVEMBER be mining 2012| 125 |2

KANSANSHI COPPER MINE

TOTAL: MORE THAN JUST AN OIL COMPANY Total is one of the largest integrated oil and gas companies in the world, with a growing presence in over 150 countries.

The Group is also a first rank player in chemicals. Its 96,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, gas and new energies, trading, and chemicals.

With nearly 15,000 service stations worldwide, Total is among the largest refiners and marketers in Western Europe and the leading marketer in Africa. Total is a major player in the specialty products business (lubricants, aviation fuels, marine fuels, heavy fuels, liquefied petroleum gas, bitumen) and one of the leading traders of oil and refined products worldwide.

Total is committed to meeting growing energy demand while consistently acting as a responsible corporate citizen. The company is actively preparing for the energy future by progressively expanding its offerings and developing complementary next generation energy activities, with a focus on solar and biomass.

Corporate social responsibility is a pillar of our strategy and focuses on three major issues: meeting energy needs while tackling the challenges related to climate change and natural resources, curtailing the impact of our operations on people and the environment, and helping to drive social and economic development.

As a result of strong partnerships with mining companies in 40 countries worldwide, Total has developed mining solutions based on a range of high quality products with integrated services.

Total Mining Solutions adds value to mining customers by maximizing equipment availability, increasing productivity and thus, reducing their overall costs.

Supplying around 200 mining sites worldwide, Total is a partner of choice for mining companies. From the refinery to the mining site, Total Mining Solutions covers the entire supply chain, ensuring reliable delivery and product quality.

Thanks to a worldwide network of refineries, terminals and blending plants, Total is able to supply petroleum products to mining customers even in the most remote areas.

Our success in partnering with mining companies is based on our ability to manage large-scale projects in complex environments.

For each mining project, Total provides a combination of key success factors such as trucks equipped with on-board computers, permanent or mobile storage and dispensing facilities, filtration systems, laboratories for fluid analysis, fluid management systems, on-site technical support, etc.

Since 2004,Total Zambia Ltd has been proud to provide a complete fuel and lubrication solution to Kansanshi’s needs across its vast range of equipment.

Through our continuous improvement program, we work with Kansanshi to ensure our offer evolves with their requirements.

This guarantees that Total Zambia Limited delivers mining solutions tailored to Kansanshi’s business.

To discuss our Mining Solutions please contact the Commercial Director, Total Zambia Limited, Tel: +260 97 7 790694. www.total.co.zm

OCTOBER 2012 | 1

First Quantum Minerals: Kansanshi Mining Plc

Excavation taking place

employed. The oxide is treated with acid to product is leached via a high pressure leach dissolve out the copper which is then won circuit, which then feeds this leach solution by electro-winning into 99.999 percent pure into the oxide circuit for eventual electrocathodes. Sulphide ore is crushed and milled winning. Experience gained on this HPL before going through a flotation process circuit stood First Quantum well in their which eventually creates a 26 percent Cu in Ravensthorpe operation. concentrate that then needs In fact Kansanshi is in smelting to attain the final the middle of extensive copper product. expansion activity. “We In addition to these two have a $370m programme processing plants, Kansanshi underway,” says Burger, “to now has a third hybrid line lift production at the mine for the mixed ores. First from the current 250,000 Quantum has developed a tonnes to 380,000 tonnes of copper by 2015. Not only ground breaking solution The price that First will we be mining more which uses a modified Quantum Minerals paid ore but by building our flotation cycle. Separate for the Kansanshi mine own acid plant and smelter to this, some concentrate

$340 million

be mining | 129

Sino Grinding is a group company specializing in design, manufacturing and distribution.

We promote our grinding media worldwide by on-site technical support regularly to all our clients and proactive development research with more advanced products being released regularly as specific problems are identified and dealt with.

Sino Grinding is now supplying it’s products to over 20 different mines in Australian, Asian, African and American markets.

All products of Sino Grinding are manufactured in P. R.China under license with Sino Grinding being the sole copyright owner. Sino Grinding is leading the market technically by supplying the most advanced SAG mill grinding balls in the world today.

Sino Grinding specializes in design and supply of various types of grinding media to different mills based on each mill’s specific working conditions.

www.sinogrinding.com

KANSANSHI First Quantum Minerals: Kansanshi Mining Plc

SINO GRINDING INTERNATIONAL Finally, a new steel grinding ball.

Ore processing has had countless improvements over the last 20 years, as have most technologies. Recoveries in the high 90%, machine reliability, but the outstanding feature has been the sheer scale and size of new project operations.

“Increased throughput and lower steel and energy consumption” is the clear new instruction of shareholders.

In reaction to this, new engineering skills have enabled the primary SAG mills to grow to new capacities with the largest mill of about 14 meters (almost 46 feet) in diameter now under construction – in China. With this increase in mill size a new problem has now occurred, can the traditional grinding media survive this massive increase in impact?

SGI group has been challenging the traditional grinding ball manufacturers with a new generation of technologies for years.

SGI firstly focused on steel consumption as the item of most interest to the mill management teams; from this the Sino-1 SAG revolutionary ball was designed in 2004.

This ball was noticeably tougher with the ability to withstand continuous ball on ball actions without any noticeable breakage in the bigger SAG mills.

These days SGI offers a range (6 types in total) of specialized SAG balls from 3.5” (94mm) to 6” (150mm+). Each grade has variations in chemistry, physical characteristics, efficiencies and cost to suit the very different grinding/impact environments of all mills that SGI has encountered.

SGI first collects data first hand from mill operations people. Mill size/speed, ore size/ hardness, ball size/consumption, operations targets of throughput and grind are all part of the detailed questionnaire to set as the “starting point”. Modeling is then done at SGI Head Office. These considered options, in many cases offered with performance guarantees, are then submitted to the customer. Trial testing is encouraged on a production scale so that all data can be trended from the starting point. Pieter Theunissen, SGI African Chief, makes it clear that SGI are not milling specialists.

“Our customers know milling; we know steel alloying and build what they ask for. Together we usually find a better ball design in our range or a variation to that for optimum results. I suppose that as we rarely lose a customer – that this speaks for itself”.

SGI has offices in China, Africa, Australia (Boliver International – as exclusive agents), Canada and USA. www.sinogrinding.com

NOVEMBER 2012| |1312 be mining

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc weKansanshi will become feature just about text... consectetur adipisicing elit, as Lorem selfipsum sufficient dolor sit as amet, it is sed do eiusmod tempor possible consectetur to be.” adipisicing elit, incididunt ut labore et dolore sedSolwezi do eiusmod lies about tempor 250 magna aliqua. Ut enim ad miles incididunt due south ut labore of theetKatanga dolore minim veniam, quis nostrud copper magnabelt aliqua. in theUt Democratic enim ad exercitation ulla mco laboris nisi ut aliquip ex Republic minim veniam, of Congo quisand nostrud is at ea commodo consequat. the exercitation end of a 160km ulla spur mco road Duis aute irure dolor in laboris ut north/south aliquip ex from thenisi main reprehenderit in voluptate ea commodo consequat. highway that serves Katanga’s velit esse cillum dolore Duis aute mines.

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BIA OVERSEAS Located in Wavre, to the south of Brussels and with subsidiaries in more than 15 African countries, BIA Overseas s.a. operates in the sale and service of equipment for mines, quarries, public works, recycling, handling and power generation in West and Central Africa. BIA Overseas s.a. offers a wide range of equipment and accessories from well-known manufacturers such as Komatsu, Sandvik, Bomag and Cummins.

In Belgium and in Africa, our teams are mainly comprised of engineers and more than 450 technicians, active in the field, in our service and training centers, or directly at operational sites, offering tailor-shaped solutions and services. These solutions range from equipment sales, transport and assembly, spare parts

and aftersales service, to personal advice on project requirements and execution, financial settlements and the training of technical staff.

BIA as an environment Given the nature of our business, the environment at BIA is flourished by the passion for high standards and excellence. This level of quality is mandatory to face the challenges at hand, from Belgium to the most remote places in Africa. Alongside our engineers, technicians and project managers from around the world, BIA is composed of the finest minds in finance, logistics, services, human resources and general administration.

E. info@biaoverseas.com www.biaoverseas.com

NOVEMBER be mining 2012| 133 |2

international gateway. “The airstrip has been extended to 2.7km,” says Burger, “which means Boeing 737s can land now.

The buildings are being improved and we are currently waiting on the government to install customs and immigration personnel before declaring Solwezi as the country’s newest international airport.”

With such a long road journey for anything and everything that needs to be trucked into

the site, Kansanshi is on a mission to reduce costs wherever possible. “We are currently using 250,000 litres of fuel a day,” says Burger, “which all has to be brought in by tanker – a huge logistical challenge before mining even starts. We have a couple of major initiatives that will reduce our dependency on outside sources of fuel and should reduce our operating costs significantly.”

In a move designed to cut down on the

“Our plants use 1500 tonnes of acid a day,which at a nominal cost of $300 per tonne is almost half a million dollars every day”

Kansanshi vehicles currently use 250,000 litres of fuel a day

134 | be mining

First Quantum Minerals: Kansanshi Mining Plc

Plans are under way to reduce costs by constructing a new 1.2 million tonne concentrate smelter

number of truck movements needed per day, a new in-pit crushing plant is a key part of the expansion plans which will enable much of the ore to be moved by conveyors from pit to plant.

Where truck transportation is inevitable, a new electric trolley assist system is being installed. By fitting trucks with a couple of electric drive motors, integrated through gears with the conventional diesel engine, much of the work can be done by electric power, fed to the trucks by an overhead catenary. Going uphill, trucks can tap into the main grid and get a helping boost of power.

Another high cost area of the business, and onerous logistical consideration to boot, is the amount of sulphuric acid consumed. Either acid itself or the base ingredient sulphur is needed.

“Our plants use 1500 tonnes of acid a day,” says Burger, “which at a nominal cost of $300 per tonne is almost half a million dollars every day. It’s one of our biggest cost centres, accounting for about 11 percent of production costs. Today, as we are talking, a new 900 tonnes per day acid plant is being commissioned which will help minimise overall production costs until the final link in the chain – a new 1.2 million tonne concentrate smelter is complete.”

Considering the amount of copper produced in the region, Zambia currently doesn’t have enough smelting capacity to cope. First Quantum is investing $500 million in its own smelter at Kansanshi capable of processing 1.2 million tonnes of concentrate from which 300,000 tonnes of copper will

be mining | 135

Buks Haulage Limited (BHL),

Â

A division of Cargo Carriers

with head office located in Ndola, Zambia is known and recognised as one of the leaders in transport and logistical sectors in Zambia. Cargo Carriers, a listed globally known company recently acquired the majority share in BHL. As a team our vision is to improve the quality of transport and logistics in Sub-Sahara Africa. We promote community up-liftment, diversity and sustainability.

www.bukshaulage.co.za

KANSANSHI First Quantum Minerals: Kansanshi Mining Plc on Kananshi be Feature extractedtext (compared with to go here...

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as wellutaslabore cost. sed do eiusmodcongestion tempor incididunt “When plans et dolore magna aliqua.our Ut expansion enim ad minim veniam, quis nostrud exercitation are complete,” says ullamco Burger, laboris nisi ut“there aliquip willex stillea be commodo a shortfall consequat. Duis aute irure in of smelter capacitydolor but the reprehenderit in voluptate esse cillum figure will velit be very small dolore eu fugiat nulla pariatur.

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BUKS HAULAGE LIMITED Formed in Zambia in 2004, BHL specializes in the transport of various commodities with value added services and facilities. BHL is a dynamic entity offering total logistical solutions within Zambia and sub-Saharan Africa. We are renowned for our ability to bring logistical management methodologies to greater heights through our experience.

Our mission is to provide you with optimal transport and logistical solutions by combining loads when possible, ensuring that the vehicles for your product are optimally utilized and maintaining all stock levels on a weekly, or monthly basis. We are committed to honouring our agreements with our clients on time at all levels and to remain professional at all times.

Honesty, transparency and objectivity in dealing with clients are non-negotiable at BHL. We have also developed a powerful contractor base which is both an empowerment initiative and beneficial to your organization. Each

client is treated individually and offered real time management solutions pertinent to their organization. We give you peace of mind to focus on your core business, while we manage your transport / logistics.

In our experience, sound project management is vital and determines the success of both long and short term projects. Excellent communication is of the essence for effective decision making, delegation of tasks and liaison with all our customers at all levels.

BHL specializes in formalizing international delivery instructions either through import or export key transactions. We will handle export documents, licenses, permits, export declarations, inspection certificates, insurance documents and commercial invoices. BHL works in conjunction with the clearing and forwarding agency. www.bukshaulage.co.za

NOVEMBER 2012| 137 |2 be mining

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Excepteur dolore eu fugiat nulla pariatur. people on site,” Burger, “4000 on sint our not so much of a problem but it has Excepteur meant that occaecat nonby proident, suntand in Solwezi sint occaecat cupidatat sunt payroll andcupidatat the rest hired construction has grown into a non bit ofproident, a shanty town

MES INTERNATIONAL LTD MES International Ltd is an established supplier of products and services to the mining, quarrying and recycling industries.

Since its formation over four decades ago, MES has built its reputation as a “can do” supplier, available 24/7 to respond to breakdowns and urgent requirements with the highest level of service required for these unforseen occassions. MES International truly is a “one stop shop” for your operating needs. We supply the highest quality precision engineered crusher spares for machines including Nordberg, Svedala, Telsmith, Sandvik, Allis Chalmers. Our conveyor belting is available from several locations throughout Africa, in a range of widths and strengths to meet your requirements, and with a 24 hour breakdown response, we are always here when you need us. With our team of highly qualified and experienced vulcanisers, we can undertake

hot & cold joints, pull up joints, clipped endless joints, maintenance and training etc. We manufacture Material Handling Systems including Installation & Commissioning, from overland conveyor structures to waterside loading systems. We also design, re-design, maintain and supply conveyor structure and radial stacker systems, along with drums, rollers and take-up units through our Engineering Services, who can also provide strip down and re-build services for crushers on scheduled shutdowns. New, used and refurbished Site Equipment including plant and machinery can be supplied for your site requirements.

MES look forward to continuing to provide Kansanshi Mine with their crusher wear parts and conveyor belting, safe in the knowledge that they are to the quality they know and trust. www.mesinternational.co.uk

NOVEMBER 2012| 139 |2 be mining

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vincent@bus-ex.com 140 | be mining

with very little in the way of organised town planning. We do a lot to improve matters – at the moment we are building 1000 additional houses - and are willing to do even more to make conditions better for all concerned but it’s a sensitive area with the local council wanting to stay in control.”

It shouldn’t be a question of money.

Kansanshi is said to be Zambia’s biggest source of revenue. Apart from the 20 percent of Kansanshi that is owned by the parastatal ZCCM IH, First Quantum contributed US$611 million last year in various taxes – double the previous year.

“But there are no existing mining skills amongst the local population,” says Burger, “and we have an obligation to try and give employment to those who actually come from

First Quantum Minerals: Kansanshi Mining Plc

Haul trucks

this region. It’s a challenge. Many have never even ridden a bicycle – let alone a car – and now they are in control of mining equipment worth many millions of dollars. As you can imagine, there is a lot of training needed and a considerable amount of supervision.”

The weather can also contribute problems.

During the rainy summer season from November to April, it rains 10 to 50mm almost on a daily basis. Not surprisingly, a

lot of this ends up at the bottom of the pit and at their height, drainage pumps are shifting 75,000 m3 of water a day. On the other hand, the rain is short lived and predictable, which has enabled the mine to plan accordingly to minimise disruption.

But Kansanshi is not the only African interest owned by First Quantum. Part of all its Solwezi expansion plans is the development of three new potential mines that collectively go under

“there are no existing mining skills amongst the local population.

As you can imagine, there is a lot of training needed” be mining | 141

Kansanshi This is a caption this is aCopper captionMine

First Quantum Minerals: Kansanshi Mining Plc the working name of Trident. The one nickel and two copper prospects lie about 120km from Kansanshi and will cost in the region of $1billion to develop. Once in opencast production, Trident is expected to eventually contribute 300,000 tonnes of copper per annum.

First Quantum should be a big player over the border in the Democratic Republic of Congo, too but a dispute with the government there has shut down all activity. The mining company had invested $1 billion developing the Kolwezi copper-cobalt project, only to see it seized by the authorities. A second interest at the Frontier mine – reputed to be the Congo’s biggest tax contributor and providing employment for 1,500 nationals, was also seized by armed police and soldiers in 2010, seemingly in retaliation for contesting the Kolwezi action in international arbitration. Ultimately the matter was settled out of court with ENRC compensating First Quantum for their seized assets.

In the meantime, First Quantum is working hard on meeting its objective of becoming ‘a globally diversified mining and metals company.’ In the absence of activity in the Congo, it has a portfolio of four operating mines in Zambia, Australia, Finland and Mauritania, producing LME grade “A” copper cathode, copper in concentrate, nickel concentrate, gold and sulphuric acid.

In various stages of development are another three projects: two in Zambia and one in Haquira in Peru.

For more information about First Quantum Minerals: Kansanshi Mining Plc visit: www.first-quantum.com

be mining | 143

Metals company in brief The Kansanshi mine, the largest copper mine in Africa, is 80% owned by Kansanshi Mining PLC, a First Quantum subsidiary. The remaining 20% is owned by a subsidiary of ZCCM. The mine is located approximately 10 kilometres north of the town of Solwezi and 180 kilometres to the northwest of the Copperbelt town of Chingola.

The mine has undergone several expansions since it began operating in 2005. From an initial production capacity of 110,000 tonnes of copper,

Kansanshi is now capable of producing 250,000 tonnes of copper and more than 100,000 ounces of gold per year. A multi-stage expansion project aims to increase copper output capacity to approximately 400,000 tonnes by 2015.

Mining and Processing Mining is carried out in two open pits, Main and Northwest (“NW”), using conventional open pit methods and employing hydraulic excavators and a fleet of haul trucks. Ore treatment is flexible to allow for variation in ore type either through an oxide circuit, a sulphide circuit and a transitional ore “mixed float” circuit with facilities to beneficiate flotation concentrate to final cathode via the HPL circuit.

Sulphide ore is treated via crushing, milling and flotation to produce copper in concentrate. The expansion of the sulphide milling circuit was commissioned in Q4, 2008, to maintain finished copper production as oxide ore is depleted and sulphide ore grades begin to fall as the mining horizon deepens.

Oxide ore is treated via crushing, milling, flotation, leaching and the SX/EW process to produce a

144 | BE Mining

sulphidic and gold bearing flotation concentrate as well as electro-won cathode copper.

Gold recovery by gravity was expanded by the addition of four new gravity concentrators in April 2010, thus providing two concentrators per milling train, and increasing gold recovery from all ore types. Gemini tables were installed to treat the gravity concentrates and produce a high-grade concentrate for direct smelting to gold bullion.

First Quantum Minerals: Kansanshi Mining Plc stock watch

Multi-Phase Expansion Expansion in production capacity from 2011 to 2015 includes: •P hase 1 – expansion to the oxide circuit completed in 2012.

•N ext phases – further expansion to the oxide circuit to be completed mid-2013 and expansion of the sulphide facilities to be complete in 2015.

Exchange LON

Shares -

Symbol FQM

Market Cap. -

Currency GBX

Div/yield -

Exploration •M ore than 120,000 metres of resource development drilling has been completed.

•U pdated minerals resource estimate shows increases of 121% in the resource tonnage and 74% in total contained copper metal.

•T argeted in-fill drilling in 2013 will focus on adjacent areas of inferred mineral resources.

corporate Office

Key stats and ratios

8th Floor, 543 Granville Street VANCOUVER, BC V6C 1X8 Canada

Total copper production (tonnes): 261,351 Concentrate grade (%): 25.0 136,056 Gold produced (ounces): Unit cash cost of production: $1.49 per lb

of copper Type of mine: Open pit 17 years Current estimated mine life: 1,702 Employees:

Tel: +1-604-6886577 Fax: +1-604-6883818 www.first-quantum.com

Financial information from Google Finance and Thomson Reuters

BE Mining | 145

Expand

co

146 | Be mining

Southern Copper Corporation

ding horizons

RaĂşl Jacob, CFO of Peruvian operations and company omptroller, highlights the massive expansion programmes the company is undertaking, both in Peru and in Mexico

written by: Will Daynes research by: Abi Abagun

Be mining | 147

Southern Copper has the highest reserve base for copper of any listed company in the world

Southern Copper Corporation

C

ommercial metal mining has been a business closely associated with Central America dating back to the region’s colonisation by the Spanish.

A fixture of the region’s export market throughout the decades since, the industry has experienced various peaks and troughs in recent years. In the face of waning interest in Central American metal ores during the 1980s and 1990s, it was the World Bank and other international financial institutions that encouraged governments to revise their laws to make metal mining more profitable.

This collective approach has created an environment where today a host of metal mining operators are active in countries throughout the region. One such organisation is Southern Copper Corporation (SCC), a world class mining metallurgical company.

Incorporated in 1952, the company has the highest reserve base for copper of any other listed company in the world.

“At the current production rate these reserves,” explains Raúl Jacob, CFO of Peruvian operations, “equate to around 100 years of life for the operation and are derived from the company’s operations in Peru and Mexico, where all of its activities are fully integrated.” Copper itself, of which it currently produces 640,000 metric tonnes per year, represents approximately 75 percent of SCC’s total sales. In addition, its mines produce various quantities of molybdenum, zinc and silver.

As one of the lowest cost producers in the world, operating in two very mining friendly countries and boasting excellent reserve rates,

Be mining | 149

SOUTHERN COPPER Southern Copper Corporation Southern feature est laborum. Lorem ipsum SCC finds Copper itself focusing dolor sit amet, consectetur text toongoachieving here.....Lorem heavily organic adipisicing elit, sed do ipsum One dolorof the sit ways amet, growth. it consectetur eiusmod tempor incididunt is doing this is adipisicing through the elit, sed do of eiusmod tempor ut labore et dolore magna expanding its Toquepala aliqua. Ut enim ad minim incididunt ut labore et dolore mine in southern Peru. veniam, quis nostrud magna aliqua. Ut enim ad In operation since 1960, exercitation ulla mco minim veniam, quis the mine operated as nostrud initially laboris nisi ut aliquip ex exercitation ullamco designed until 2003,laboris when ea commodoPlant consequat. nisi ut aliquip ex of ea commodo an expansion its plant expansion Duis aute irure dolor in consequat.production Duis aute by irure increased 33 dolor in“At reprehenderit in This is a caption is a caption percent. present, Toquepala possesses a this achieved by notreprehenderit only opening in up voluptate the mine velitgreater esse levels cillum dolore voluptate velit esse cillum total copper production capacity of 160,000 in order to handle of mineral fugiat nulla pariatur.

Excepteur sint dolore euJacob fugiat nulla pariatur.

Excepteur tonnes,” continues, “and the purpose eu production, but also by doubling the capacity cupidatat non proident, circuit.” sunt in sintthis occaecat non proident, sunt of browncupidatat field expansion project is occaecat of the Toquepala plant’s concentrator qui officia deserunt mollit anim id in culpa qui this officia deserunt mollit id culpa Working to a planned schedule that would to increase substantially.

This anim will be

BREAKER TECHNOLOGY INC. Technology is our middle name Breaker Technology Inc. and our authorized dealer for Peru Cana Dyne S.A. are committed to building and supporting some of the best rock breaking systems in the world. Having already successfully deployed several stationary rock-breaker boom systems at Southern Peru sites since 1998, we have new systems to be commissioned in the near future, and are proud to a play a part in the ongoing success of Peruvian mining, and more specifically Southern Copper.

Whether the application is an above ground stationary rock breaker boom system over a gyratory crusher, dealing with oversize materials or underground, our goal remains the same, ensuring increased production and

safer working conditions. Beyond our excellent range of rock-breaker boom systems are our full fleet of underground mining support vehicles. BTI’s mobile range includes mobile rock breakers, shotcrete truck, ANFO loaders, scissor lifts, crane trucks and most notably mobile rock scalers.

Cana Dyne and BTI have pioneered the use of mechanized scaling in Peru, with its signature RMS18 scaler system, which has one of the largest degrees of scaling flexibility, reduced repositioning time and increased production output. It’s our passion to continue to advance both service and innovation because we realize that results both in output and safety matter to us and our customers. www.rockbreaker.com

NOVEMBER 2012| |1512 Be mining

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Southern Copper Corporation see the project completed by the middle of 2014, SCC’s OSSA is a leading specialist company in the underground expansion of Toquepala construction sector specialized in three business segments: represents a considerable construction, energy and mining. investment for the company.

After 60 years of success, our strategy is to continue “Recent figures suggest that expanding internationally, and to support large civil the company is spending engineering and mining industry clients at all levels, contributing our vast technical expertise and our equipment some $10,000 per tonne of fleet, while prioritizing health and safety and innovation in additional installed capacity,” all our projects. The best example is our track record: more Jacob says. “The end result of than 600 km of tunnels, 75 km of shafts and 500,000 m3 this investment will be the of caverns in hydropower plants.

Toquepala mine producing Internationally, OSSA has executed works in Portugal, an additional 100,000 tonnes Greece, Jordan, Peru, Colombia, Panama, Costa Rica, of copper, bringing its total Nicaragua, Chile, Hong Kong, and Taiwan. www.ossaint.com annual production capacity to 260,000 tonnes.”

Worldwide, SCC spends close to $30 million on exploration projects each year. The rewards that stem from this approach can be seen not only in Peru, but in Mexico as well.

“At the same time as it expands its Toquepala mine,” Jacob states, “it is also increasing the capacity of its Buenavista operation. Currently delivering 180,000 tonnes of copper per year, it is the company’s mission to increase this to more than 480,000 tonnes.”

In order to achieve this not inconsiderable goal, SCC is expanding its two existing SX-EW plants and constructing a third plant

OSSA

$6 Billion Six-year investment to increase output to over 1.1 million tonnes Mineral production continues to expand

Be mining | 153

at Buenavista that will have a capacity of 120,000 tonnes per year alone and will be operational by the start of 2014. Further to this, the company plans to upgrade its concentrator capabilities by building a new facility that will increase capacity from 125,000 tonnes to 313,000 tonnes of copper per year. This second project is expected to be completed by the middle of 2015, thus bringing Buenavista to a point where it can reach its full potential.

The integrated nature of its operations is not the only thing that links SCC’s operations in Peru and Mexico. One of the most important values held throughout the organisation is its commitment to sustainable development.

“In everything it does,” Jacob enthuses, “SCC’s activities are carried out with the aim of having the least possible effect on the environment. With the Toquepala project, for example, the company is increasing copper production by 100,000 tonnes, yet it is not using any additional water supplies to do so.

Rather it is increasing the amount of recycled water it uses for that purpose.”

Across all of its locations the company has been actively replacing its raised haulage activities with conveyor belt transportation systems, while its SX-EW plants operate without emissions. In 2007, SCC undertook a comprehensive programme to modernise

its smelting operations in Peru. This came in the wake of the country’s government introducing new environmental guidelines.

As a result of its actions, the company is now able to capture over 95 percent of the gases emitted during the smelting process.

Another recent environmental milestone has been the introduction of a pipeline system used to transfer sulphuric acid produced by the company’s plants directly to cargo ships

“The company is increasing copper production by 100,000 tonnes, yet it is not using any additional water supplies to do so” 154 | Be mining

Southern Copper Corporation

Copper cathodes

that then export this product. over 1.1 million tonnes over “Previously, railroad haulage the course of the next six was used to transport the acid, years. “To do this,” Jacob almost one million tonnes of concludes, “SCC is spending in excess of $6 billion. it per year, through a nearby In the meantime, it will residential area,” Jacob says. endeavour to maintain the “While the process itself was Estimated life of characteristics and qualities safe, the company deemed it copper reserves a better idea to have a pipe that have brought it to where network that would run it is today. This will allow from its smelters to the cargo it to expand its operations, ships. This methodology has not only proven retain its strong operating costs and ensure more cost effective and less time consuming safer environmental results.” in the long run, it also eliminates all of the associated environmental risks.”

For more information about Under its current production plans, SCC’s Southern Copper Corporation visit: focus is to increase its copper output from www.southernperu.com an estimated level of 640,000 tonnes to

100

Years

Be mining | 155

Metals company in brief Southern Copper Corporation (SCC) is an integrated copper producer. The Company produces copper, molybdenum, zinc and silver. All of its mining, smelting and refining facilities are located in Peru and Mexico, and SCC conducts exploration activities in those countries and in Argentina, Chile and Ecuador. The Company operates in three segments: Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities.

The Peruvian operations produce copper, with production of by-products of molybdenum, silver

and other material. Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants and support facilities, which service both mines.

The Mexican open-pit operations produce copper, with production of by-products of molybdenum, silver and other material.

MANAGEMENT AND DIRECTORS German Larrea Mota-Velasco

Vidal Muhech Dip

Chairman of the Board and Director

Vice President, Projects

Oscar Gonzalez Rocha

Remigio Martinez Müller

President, Chief Executive Officer and Director

Vice President, Explorations

Xavier Garcia de Quevedo Topete

Comptroller

Chief Operating Officer and Director of SCC, President and Chief Executive Officer of Southern Copper Minera Mexico.

Genaro Guerrero Diaz Mercado Vice President, Finance and Chief Financial Officer

156 | BE Mining

Raul Jacob Ruisanchez

Southern Copper Corporation stock watch

Why SCC? • Largest copper reserves with excellent organic growth projects.

• Low cost, fully integrated operations.

• World class assets in investment grade countries.

Exchange NYSE

Shares 845.12M

Symbol SCCO

Market Cap. 29,815.85M

Currency USD

Div/yield 0.24/10.66

• Good long term copper and molybdenum fundamentals.

corporate Office

Key stats and ratios

Suite 160, 1440 East Missouri Avenue PHOENIX, AZ 85014 United States

Sales of EBITDA of Copper production Cash Cost of Dividends of Capital Expenditures of

Tel: +1-602-2641375 Fax: +1-602-2641397

$6,669 million $3,773 million 638 kt $0.71 per pound $3,140 million $1,052 million

www.southernperu.com

Financial information from Google Finance and Thomson Reuters

BE Mining | 157

A mainstay in mining Director of foreign assets, Roman Panov, discusses the factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth

written by: Will Daynes research by: Marcus Lewis

158 | be mining

Norilsk Nickel

be mining | 159

M

ining has been a part of life in the Norilsk area since the 1920s, during which time the seeds were sown for what would become a lucrative industry for the region and Russia as a whole over the course of the subsequent century.

It was in 1935 that the government of the USSR created the Norilsk Combine and 1943 that Norilsk managed to produce an annual total of 4000 tonnes of refined nickel, before hitting its target figure of 10,000 tonnes just two years later in 1945.

In the aftermath of the fall of the Soviet Union a joint-stock company was created in 1993, taking the name RAO Norilsk Nickel.

By 1997, the company had been sold to private enterprise Interros and had returned to profitability. In the years since, Norilsk has gone on to successfully acquire a host of mining and metallurgical assets across the world, thus transforming itself into a multinational organisation with operations in Russia, Finland, Australia, Botswana and South Africa.

Today, MMC Norilsk Nickel is the world’s largest producer of nickel and palladium, and one of the leading global producers of platinum and copper. In addition, it also produces various by-products such as cobalt, chromium, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulphur.

“Our production assets,” explains director of foreign assets, Roman Panov, “are located in five countries, Russia, Finland, Australia, Botswana and South Africa, across which we mine over 30 million tonnes of ore and produce almost 300,000 tonnes of nickel. The

160 | be mining

Norilsk Nickel

latter figure represents a fifth of the world’s total nickel production.”

In its home country of Russia, the company’s production units include its Polar Division, which is located above the Polar Circle on the Taimyr Peninsula, and Kola MMC on the Kola Peninsula, while in Finland it operates the

Harjavalta processing plant. In Australia its operations include Black Swan, Cawse, Lake Johnston and Honeymoon Well, and in Africa its activities are comprised of the Nkomati project in South Africa and Tati Nickel in Botswana. In addition to its operating assets, the company boasts a large sales and

“our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate” 162 | be mining

Norilsk Nickel

Artic Express is the ship also in Russia

marketing network in many and metals companies of the world’s major regions, by market capitalisation, vital energy assets that as well as geographical ensure the security of energy expansion and production supply to its operations, diversification, by the year Tonnes of nickel 2025,� Panov enthuses. proprietary research and produced globally by Panov believes that the development assets and its Norilsk Nickel per annum unique Arctic fleet. company has the necessary Norilsk Nickel sees its technical, financial, economic mission as revolving around strengthening its and investment policies that will allow it to leadership in the mining and metals sectors, achieve its aims. It establishes solid grounds while at all times remaining a responsible for social, regional and human resources producer and supplier of non-ferrous and policies, strategies for the development precious metals. “The company plans to of related industrial facilities and the be included in the top five largest mining optimisation of corporate governance.

300,000

be mining | 163

“In the years to come,” Panov continues, “our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate and through our participation in new projects. As part of a broader drive to diversify our commodity portfolio and our region presence we continue

to monitor projects in mineral-rich countries in southern Africa. Specifically, we are looking at potential projects in Zimbabwe, the Democratic Republic of Congo, Zambia and Botswana. These consist of both greenfield and brownfield mines, however what we are focusing on is the quality and quantity of reserves that each holds underground.”

“Expansion across Africa fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites”

Truck at Tati Nickel Mine in Botswana

164 | be mining

Norilsk Nickel

Nkomat Mine in South Africa

Africa and South Africa in particular, is playing an increasingly important role in the growth strategies of diversified mining companies. This is equally true for Norilsk Nickel, the major difference being that it already has a commanding presence in South Africa where it is part of the Nkomati nickel mine joint venture alongside African Rainbow Minerals.

“Expansion across Africa,” Panov says, “fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites. What is also important to highlight is the fact that Norilsk is not restricted to nickel and in that respect we actively investigate the

potential of all manner of base-metals with a similar degree of enthusiasm.”

Having a unique raw material mineral base gives the company the ability to retain its competitive advantage within the industry and provides it with stability of production and enables it to make strong long-term forecasts.

“In order to strengthen our position as a leading global mining and metallurgical entity,” Panov states, “our primary objectives are to further develop our international operations and focus on the development of key production assets. The management of the company collectively works on a constant basis to optimise business

be mining | 165

Norilsk Nickel

March 2011 The company signed a Declaration of Strategic Partnership with South Africa’s government processes, improve operational indicators, reduce costs and enhance efficiency at all levels in order to create additional value for our shareholders.”

Norilsk Nickel continues to retain its position as the world’s lowest-cost producer of nickel and one of the ways it does is maintaining a strong presence on the African continent. It is with this in mind that the company is particularly interested in prospecting and carrying out the geological investigation and exploration of promising new greenfield projects in South Africa.

“In March 2011,” Panov concludes, “the Declaration of Strategic Partnership between Norilsk Nickel and South Africa’s Department of Mineral Resources was signed. The aim of this partnership is to facilitate the implementing of lucrative mineral resource development projects in the country. This partnership alone highlights just how important a role South Africa will continue to play in our growth strategy on the African continent.”

Tati Nickel Mine in Botswana

For more information about Norilsk Nickel visit: www.nornik.ru/en/

be mining | 167

Metals company in brief MMC Norilsk Nickel (“Group”), the largest mining company in Russia, produces four main metals - nickel, copper, palladium, and platinum and a variety of by-products, such as cobalt, rhodium, silver, gold, tellurium, selenium, iridium, and ruthenium. The Group is involved in prospecting, exploration, extraction, refining, and metallurgical processing of minerals and production, marketing, and sale of base and precious metals.

MANAGEMENT AND DIRECTORS Gareth Penny

Sergey Leonidovich Batekhin

Chairman of the Board

Deputy General Director – Head of Marketing, Procurement, Inventory and Transport Logistics Unit, Member of the Management Board

Vladimir Olegovich Potanin General Director - Chairman of the Management Board

Andrey Evgenevich Bugrov

Evgeny Ivanovich Muravev

Deputy Chairman of the Board

Member of the Management Board, Deputy General Director for Production

Sergey Malyshev

Vyacheslav Nikolaevich Poltavtsev

Deputy General Director-Head of Economics and Finance

Deputy General Director for Government Relations, Member of the Management Board

Vladimir Igorevich Strzhalkovskiy Vice President

Evgeny Kirillovich Yakovlev

Elena Stepanovna Bezdenezhnykh

Member of the Management Board, First Deputy General Director

Deputy General Director - Head of Corporate Governance, Asset Management and Legal Unit, Member of the Management Board

168 | BE Mining

Norilsk Nickel stock watch

products • Nickel • Copper • Platinum • Palladium

operating territories Exchange pink

Shares -

Symbol NILSY

Market Cap. 31,701.44M

Currency USD

Div/yield -/2.96

• Russia • Finland • Africa • Australia

Stock information from Google Finance

corporate Office

Key stats

Voznesenskiy pereulok, 22 MOSCOW, 125993 Russia

41%

Tel: +7 (495) 787 7667 Fax: +7 (495) 785 5808 Email: gmk@nornik.ru www.nornik.ru/en

World’s leading producer of Palladium

17%

World’s leading producer of Nickel

11%

Top 4 producer of Platinum

2%

One of the largest Copper producers

BE Mining | 169

The jewel in

Barrick has a significant investment programme for So of which is targeted to advance the construction of Pas bi-national mine, expected to be operational in the sec

written by: Martin Ashcroft research by: Dan Finn

170 | BE Mining

Barrick South America

n the crown

outh America in 2013, much scua-Lama, the world’s first cond half of 2014

BE Mining | 171

Barrick Gold’s Veladero mine in San Juan province, Argentina

Barrick South America

W

ith the acquisition of Placer Dome in 2006, Barrick Gold Corporation became the largest gold mining company in the world.

Barrick’s holdings in South America include the Pierina and Lagunas Norte gold mines in Peru, the Veladero gold mine in Argentina, the Cerro Casale project in Chile, and the world class Pascua-Lama project on the Chile/Argentina border.

With a mine life estimated at 25 years, Pascua-Lama is the current jewel in the crown, but as the world’s first bi-national mine it has required a complex series of negotiations with two national governments. At an elevation of up to 5,200 meters, this is also the highest altitude project Barrick has ever tackled, and it raises many unique logistical challenges.

Nevertheless, it is destined to become one of the most important mines in Barrick’s global portfolio, with proven and probable reserves of 17.8 million ounces of gold, and an additional prize of 671 million ounces of silver. Construction has advanced steadily, with production expected to commence in the second half of 2014. At the end of November 2012 the tunnel to transport the ore between Argentina and Chile was approximately 60 percent complete, and 90 percent of the materials and equipment required for the process plant had already been committed.

During the first five years of production, Barrick expects an average of 800,000 and 850,000 ounces of gold per annum.

Another project in development is Cerro Casale, 130 kilometres north of the

BE Mining | 173

Engineering - Construction - Erection

Always working for a better future fabrications, tanks, electromechanical erections, piping, maintenance, industrial installations and turn key projects.

HAUG S.A. www.haug.com.pe Av. Argentina 2060, Callao – Peru t: (511) 6134545 comercial@haug.com.pe

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Barrick South America Pascua-Lama project in HAUG S.A. the Maricunga district of HAUG S.A. was contracted by Barrick Exploraciones Chile. This project holds Argentinas S.A. for the fabrication and erection works of 38 estimated gold reserves that field welded tanks and 14 thickeners for the Pascua Lama currently stand at a massive Project, an open pit mining project that straddles the border 23.2 million ounces, but of Chile and Argentina. HAUG’s offices for the project are exploration is still in progress located in the Province of San Juan on the Argentinean side, where they have over 400 highly specialized and there may be even more. employees and workers, a number that will double as the Cerro Casale was originally project advances. a 50/50 exploratory joint comercial@haug.com.pe venture between Barrick and Kinross Gold Corporation, but early in 2010, Barrick acquired an additional 25 percent interest from Kinross, increasing its interest in the project to 75 percent. The construction phase will last about three years and the life of the mine is estimated at approximately 20 years, with average annual production expected to reach one million ounces of gold and 110,000 tonnes of copper.

Now with a controlling interest, Barrick is keen to use the lessons learned in PascuaLama to good effect and where possible, leverage synergies in the design and construction of Cerro Casale. This is one of the largest undeveloped gold-copper deposits in the world and it is envisaged that it will one day exceed the production anticipated at Pascua-Lama.

As well as these two stellar development

“As the world’s first bi-national mine, Pascua-Lama has required a complex series of negotiations with two national governments” BE Mining | 175

957,000 Ounces of gold produced at Veladero in 2011

The Pascua-Lama project zone

176 | BE Mining

projects, Barrick can also count on a solid portfolio of mines already in production.

The Veladero mine, located in the San Juan Province of Argentina, is immediately south of the Pascua-Lama property in the highly prospective Frontera District. Veladero has two open pits, Filo Federico and Friendly and has an estimated life of 14 years. The mine has been in production since 2005 and in 2011 produced 957,000 ounces of gold at a total cash cost of $353 an ounce.

The proven and probable mineral reserves at 31 December, 2011 were 10.6 million ounces of gold.

Moving to Peru, Barrick has the Pierina mine, located in the Andean Cordillera in the Department of Ancash. This mine has proven and probable mineral reserves of 791,000 ounces of gold, and although it is relatively more expensive to produce than in other mines, rising gold prices have recently seen the mine’s life extended to the end of 2014.

This is a standard open-pit, truck-and-loader operation, similar to Veladero.

Also in Peru is the Lagunas Norte mine, located on the Alto Chicama property in north-central Peru and 175 kilometers north of Pierina. The property lies on the western flank of the Peruvian Andes at an elevation

Barrick South America

Zaldivar copper process facility

of 4,200 meters above sea level. The open pit mine began operations in the second quarter of 2005, ahead of schedule, and involved an investment in construction of $340 million.

In 2011, Lagunas Norte produced 763,000 ounces of gold at an attractive total cash cost of $269 per ounce, and had proven and probable reserves of 6.2 million ounces of gold at 31 December 2011.

In all its operations in South America, Barrick is guided by a vision to lead the industry in finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

The company wants to see the region’s natural resources play a key role in supporting longterm sustainable economic development and facilitating this process is a corporate priority.

Barrick is already a signatory to a number of voluntary codes and initiatives that address a range of economic, social and environmental issues. These include the Carbon Disclosure Project, the International Cyanide Management Code, Transparency International (Canada) and the Voluntary Principles on Security and Human Rights. The company has also been an active member of the UN Global Compact (UNGC) since 2005.

“Although its primary focus is on gold, Barrick also has significant interests in copper in South America�

BE Mining | 177

Barrick’s primary focus is on gold

Barrick South America

25 years Estimated life of Pascua-Lama mine This is an initiative which directly involves business in tackling some of the major social and environmental challenges that arise from globalization.

Barrick’s achievements were publicly acknowledged yet again in 2012 when it was ranked as a global leader in corporate social responsibility for the fifth consecutive year by the Dow Jones Sustainability World Index. The DJSI World Index independently evaluates 2,500 companies using rigorous criteria in the areas of corporate, economic, environmental, and social performance to identify the top 10 per cent of performers.

Although its primary focus is on gold, Barrick also has significant interests in copper in South America. The Atacama desert has some of the largest porphyry copper deposits ever found, a geological legacy that has made Chile and Peru the first and second largest exporters of copper in the world.

In 2011, Barrick’s Zaldívar copper mine in Chile produced 292 million pounds of copper at a total cash cost of $1.50 per pound. The proven and probable mineral reserves at 31 December 2011 were 6.6 billion pounds.

For more information about Barrick South America visit: www.barricksudamerica.com

BE Mining | 179

Precious metals Region in brief Barrick South America is a business unit of Barrick Gold Corp. The region covers mining operations in Argentina, with the Veladero mine.

Peru with the Lagunas Norte and Pierina mines.

In Chile with the Zaldivar the Cerro Casale mines, of which Barrick have a 75% interest in. The region also overseas the Pascua-Lama project located both in Chile and Argentina. There is also an active process of mining operations closure at El Indio in Chile.

MANAGEMENT AND DIRECTORS

regional Offices

Peter Munk

Chile Av. Ricardo Lyon 222 piso 8 Providencia - Santiago - Chile T: (56 2) 340 2022

Co-Chairman of the Board

John Lawson Thornton Co-Chairman of the Board

Jamie C. Sokalsky President, CEO, Director

Charles William David Birchall Vice Chairman of the Board

Ammar Al-Joundi

Argentina Bouchard 547, piso 12° (C1106aABG) Buenos Aires: T: 011-5776 6600 San Juan: T: 054-264-4298100

President, South America

Peru Av. Manuel Olguín N° 375 Piso 11, Santiago de Surco, Lima 33, Perú.

T: (511) 612-4100

Peter J. Kinver

www.barricksudamerica.com

CFO, Executive Vice President

Igor Gonzales

COO, Executive Vice President

180 | BE Mining

BARRICK south america stock watch

products • Gold • Silver • Copper

services • Mining • Exploration Exchange NYSE

Shares 1,001.11M

Symbol ABX

Market Cap. 27,067.94M

Currency USD

Div/yield 0.20/2.96

operating territories • Chile • Argentina/Chile • Peru

Regional HIGHLIGHTS

Key stats and ratios

Barrick’s South America region hosts 51.7 million ounces of gold or 37% of the company’s overall proven and probable gold reserves1.

Q4 (Dec ‘12) 2012 Net profit margin -73.81% -4.65% Operating margin -111.39% -5.73% EBITD margin - 8.74% Return on average assets -24.96% -1.41% Return on average equity -52.24% -2.94%

In 2012, South America produced 1.63 million ounces of gold at total cash costs of $467 per ounce2. In 2013, gold production is expected to be in the range of 1.25-1.35 million ounces at all-in sustaining cash costs of $875-$925 per ounce2 and total cash costs of $550-$600 per ounce2.

Financial information from Google Finance and Thomson Reuters

BE Mining | 181

A harvest of gold Barrick Gold’s Granny Smith property in the Western Australian outback is a hotbed of mining industry best practice, technical innovation and community initiatives: with more gold defined annually it has turned into a long term asset

written by: John O’Hanlon research by: Jeff Abbott

182 | BE Mining

Barrick Gold: Granny Smith Mine

BE Mining | 183

Barrick Gold: Granny Smith Mine The Granny Smith Mine began operations in 1989

I

n case you’re wondering why a mine might be named after an apple, this Granny Smith has nothing to do with the fruit that has been called Australia’s best-known export.

The deposit now owned and operated by Barrick Gold was first discovered in 1979 by Ray Smith and named after his wife Laurende who had just become a grandmother! Having passed through the hands of Delta Gold and Placer Dome, the arrestingly-named deposit was acquired by Barrick in 2006.

The mine started to operate in 1989 as a single pit with eight years’ estimated mine life, however many other pits have been mined between then and 2006. Today the mine draws on the reserves of the nearby Wallaby underground deposit and is continually adding to its production record.

Granny Smith, says its energetic manager Julie Shuttleworth, is a textbook example of the effectiveness of continuous drilling and exploration to follow the limits of a mineral deposit. “The Wallaby deposit has a lot of potential. We have been drilling lateral and deeper extensions and have found positive mineralisation there as well.”

The underground mine is located 950 kilometres northeast of Perth and 23 kilometres south of Laverton in Western Australia. Its processing plant consists of a two-stage fresh ore crushing circuit with closed circuit screening, a single-stage oxide ore crushing circuit, a semi-autogenous grinding mill in circuit with cone crusher and ball mill, an agitation leaching and carbon-inpulp circuit, tailings gravity retreatment plant with fine grind, a gold recovery plant with carbon reactivation, and a tailing thickener.

BE Mining | 185

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BARRICK GOLD GRANNY SMITH

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The Report, out now and covering January to March 2013, shows that there are clearly pockets of shortages for specific skills in the resources and mining industry. “Whilst these skills are in hot demand, employers remain cautious about hiring candidates that appear to have changed employer too often and they are also being very specific with their requirements,” says Simon Winfield, Senior Regional Director of Hays in Western Australia.

“Employers want candidates with a proven and stable background, and some are willing to wait to find the exact match. In terms of longterm solutions some employers are interested in candidates that can take a step up to fill a role rather than have someone more senior take a step back.” But when Hays finds the right candidate, says Winfield, employers are moving fast to snap them up.

According to the Hays Quarterly Report for January to March 2013, demand is highest for the following skilled professionals in resources and mining: NSW Boilermakers: More available than in previous quarters, but those with specific Hunter Valley Mine Site Inductions will secure short term contract work to support fluctuating project requirements.

Mechanical engineers: Opportunities exist with mobile plant for underground mines. While orders are slow, investment is still being put into product development.

188 | BE Mining

Project engineers (mechanical & civil) and project managers (mechanical & civil): As regional industries are focused on delivery of mining infrastructure, these candidates remain in demand.

Northern Territory OH&S advisors: These candidates are in demand as the industry in the Northern Territory is still growing and as sites get bigger and more complicated the safety side of their operations is becoming more paramount.

Electrical, fixed plant, reliability and mining engineers: Due to a skill shortage in the Northern Territory, as more sites look to have their workforce based here, they are finding it difficult to have the right candidates relocate.

Queensland Residential senior maintenance supervisors, senior Vulcan mine surveyors, experienced digger fitters, residential mobile maintenance planners and high voltage electricians: There is a shortage of good experienced candidates especially within the locations required. High voltage electricians must also have electric drive truck experience.

Western Australia Senior mine geologists, mining engineer, contract mining engineer, process manager and maintenance supervisor: Each of these skills is absolutely necessary to the operation of producing mine sites. Continued operation and profitability of key assets for mining organisations is the highest priority at present.

For more information on the Hays Quarterly Report, go to www.hays.com.au/report/

BE WEEKLY | 1

Barrick Gold: Granny Smith Mine

Barrick practises continuous improvement in asset management

Proven and probable gold reserves reported at has been given, but recently she was declared the end of 2011 amounted to 635,000 ounces. 2012 Telstra Western Australia Business Julie Shuttleworth has managed the mine Woman of the Year, and in 2011 was Mine site since 2010, but has been with Barrick Manager of the Year at the Australian Mining since joining as a senior metallurgist in 2000. Prospect Awards. Her contribution to mining She is a big hitter in the industry, seemingly education has been recognised by her alma as busy outside of her day job as she is coping mater, Perth’s Murdoch University, where with the demands of running Granny Smith. she sponsors the Julie Shuttleworth Prize in An energetic spokesperson for the mining Mineral Processing. industry, she goes into schools, Though the drilling universities, career fairs and programme is her priority seminars to talk to students with six drill rigs operating and young professionals. to define the underground “I am passionate about deposit outward and encouraging people to think downward, there’s also Ounces of proven and potential future opportunity about working in the mining probable gold reserves at industry.” There’s not room to mine the decommissioned the end of 2011 here to list the awards she open pits. A feasibility study

635,000

BE Mining | 189

is underway and Barrick will assess this project further in 2013.

The additional volumes of ore for processing could be handled by the existing processing plant, which is currently being kept topped up via an ore purchase agreement with Focus Minerals’ Laverton operations. The 22 year-old plant has been subjected to an improvement project during 2012 led by the processing manager. Relatively small changes to screen sizes, ball loading in the mills and optimisation of crushers delivered a big improvement in throughput from approximately 7,500 tonnes per day (tpd) to consistently over 9,000 tpd. “It’s great to see these results: There is still some upside

190 | BE Mining

there and we will be working on continuously improving over the next couple of years.”

The plant will need that capacity. Even without the proposed open pits, there has been a massive ramp up in existing operations. 920,000 tonnes of ore were mined from underground in 2010: this year the tonnage will top 1.4 million. As a result of this production the gold ounces recovered went up from 139,000 in 2010 to 196,000 in 2011. Production is expected to be about 200,000 ounces in 2012. How has all this been achieved? Shuttleworth’s simple answer is continuous improvement in asset management, resource utilisation, planning and incremental process changes with a big

Barrick Gold: Granny Smith Mine

Resource utilisation has been improved

“We’ve focused on improving the capacity of the haulage trucks and making truck movement more effective” focus on effective teamwork. “We’ve focused on improving the capacity of the haulage trucks and making truck movement more effective. And we commissioned a new type of jumbo which has also increased production.”

A jumbo is the machine that drills holes into the rock face for explosive charges: so the more faces you can drill each day, or the

longer these holes are, the more you can blast and the more tonnes you can get out of the mine each day, she explains.

Another new piece of equipment which has been proving its worth over the last year is the low profile tyre handler that has been developed by the Granny Smith maintenance team in partnership with Austin Engineering.

BE Mining | 191

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DECEMBER 2012| 193 |2 BE Mining

We create solutions The world’s biggest mining and resource companies come to us to process, handle, haul and support millions of tonnes of material across Australia.

At Granny Smith we have been working with Barrick for over 5 years and introduced one of the first dual powered out of pit haulers. With the support and cooperation of Barrick at Granny Smith these units continue to operate successfully today and have been a cornerstone for our business.

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Barrick Gold: Granny Smith Mine well as other Barrick mine sites in Western Australia. Several With over 100 years of experience in the field, we are a units are also in the USA. The leading provider of turnkey solutions to some of the world’s more mines that adopt the biggest mining, steel and resources companies. low profile tyre handler the We specialise in the provision of off-road load and haul happier Julie Shuttleworth solutions. Our Dual Powered Road Trains and Pit Haulers will be. “My vision is that are specifically designed to haul loads from out of pit or from top of pit over any distance without the need for there is never another tyre rehandling. changing accident anywhere.

In the core of its unique design, a second engine is utilised This machine securely holds either in a powered dolly between trailers or incorporated in the tyre and prevents it the lead trailer. from toppling over, making Using unique solutions like this one, we keep our customers the job safer.” producing safely. Interested in these unique solutions?

There’s best practice www.bisindustries.com wherever one looks at Granny Smith. The production record speaks for itself, the tyre handler is a fantastic example of innovation serving mine safety, and in addition the mine has a strong sense of commitment to people development and the wider community.

Based on her own experience Shuttleworth encourages colleagues to take advantage of the opportunities Barrick gives them to travel, transfer to other sites or to move on secondment to improve their skills. “These are strong values of the company and they are important to me.”

Good corporate citizenship is just as important, she believes. Granny Smith is

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BE Mining | 195

Granny Smith expects 2012 gold production of 200,000 ounces

Barrick Gold: Granny Smith Mine near Laverton, a small town almost entirely dependent on mining and the mine works with the local shire, police, schools and aboriginal communities on many initiatives. “Every one of my managers and superintendents has a community relations initiative each year,” she says. These include traineeship programmes to increase the number of indigenous people working at the mine and sponsoring the Laverton School and the Mount Margaret Remote Community School in an aboriginal community nearby. “We provide a healthy breakfast every morning for those children to encourage them to come to school and have a good attendance record.” Support is also given to the Laverton Leonora Cross Cultural Association, an organisation founded and funded by the mining companies, with an amazing gallery showing local artists’ work.

Other sponsorship includes Auskick, which promotes Australian Rules football among children, as well as netball, cricket and other local sports. Further afield some of the Granny Smith team have worked with the University of Western Australia and the Australian School of Mines at Kalgoorlie. But Shuttleworth never loses her focus. “There are so many opportunities for young people these days: each year we hire new graduates and apprentices and take on university students in their vacation work. I am very keen on getting young people, both men and women, into the industry and helping them on their way.”

For more information about Barrick Gold: Granny Smith Mine visit: www.barrick.com

BE Mining | 197

Precious metals Mine in brief The Granny Smith underground gold mine is located 950 kilometers northeast of Perth and 23 kilometers south of Laverton in the state of Western Australia. The processing plant consists of a two-stage fresh ore crushing circuit with closed circuit screening and a single-stage oxide ore crushing circuit, a semi-autogenous grinding mill in closed circuit with a cone crusher, an agitation leaching and carbon-in-pulp circuit, tailings gravity retreatment plant with fine grind, a gold recovery plant with carbon reactivation, and a tailing thickener. Proven and probable

mineral reserves as of December 31, 2012, were 1.9 million ounces of gold.

MANAGEMENT AND DIRECTORS

regional Office

Peter Munk

Barrick Australia Pacific Ltd. Brookfield Place - Level 9 125 St. George Terrace Perth WA 6000 Australia

Co-Chairman of the Board

John Lawson Thornton Co-Chairman of the Board

Jamie C. Sokalsky President, CEO, Director

Tel: +61 8 6318 5777 Email: adminap@barrick.com

Charles William David Birchall

www.barrick.com

Vice Chairman of the Board

Ammar Al-Joundi CFO, Executive Vice President

Igor Gonzales President, South America

Peter J. Kinver COO, Executive Vice President

198 | BE Mining

Barrick Gold: Granny Smith Mine stock watch

products • Gold

services • Mining • Exploration Exchange NYSE

Shares 1,001.11M

Symbol ABX

Market Cap. 27,067.94M

operating location • Western Australia

Currency USD

Div/yield 0.20/2.96

regional HIGHLIGHTS

Key stats and ratios

The Australia Pacific region contained 16.6 million ounces of proven and probable gold reserves1 at the end of 2012, representing 12% of Barrick’s total reserve base.

Q4 (Dec ‘12) 2012 Net profit margin -73.81% -4.65% Operating margin -111.39% -5.73% EBITD margin - 8.74% Return on average assets -24.96% -1.41% Return on average equity -52.24% -2.94%

The region produced 1.82 million ounces of gold in 2012 at total cash costs of $803 per ounce. In 2013, gold production from Australia Pacific is expected to be in the range of 1.7-1.85 million ounces at all-in sustaining cash costs of $1,200-$1,300 per ounce and total cash costs of $880-$950 per ounce.

Financial information from Google Finance and Thomson Reuters

BE Mining | 199

Barrick Cortez

INVISIBLE GOLD MADE VISIBLE Barrick’s Cortez mine is one of the most productive and cost effective gold mines in the world, thanks to constructive investment and a good deal of technical innovation

written by: John O’Hanlon research by: Jeff Abbott

BE Mining | 201

Barrick Cortez Aerial view of the Cortez Hills site

O

ver recent years, Cortez Hills has yielded well over a million ounces of gold annually, in the first quarter of last year at a cash cost of $308 an ounce, well below industry averages of between $400 and $500. The key to the success of this operation lies in the nature of the deposit, says George Fennemore, Barrick’s Manager of Corporate Social Responsibility and regional permitting specialist for the company. Like most Nevada mines, Cortez contains large deposits of ‘invisible’ gold, where the ore holds microscopic particles rather than veins or nuggets of gold. But to understand the present day deposit it is necessary to look at its history.

Mining in the Cortez district began in 1862, says Fennemore. “The mining authorization for some of the claims out there was originally signed by Abraham Lincoln’s administration: in fact the first development was encouraged by the US government to help fund the Union effort during the Civil War.” There has been almost continuous mining in this district for 150 years, however the metal Lincoln had his eye on was silver, and silver mining continued there right up until the outbreak of World War II. Gold mining activities started after the war, but it was not until 1962, when the United States Geological Service inaugurated a two-year pilot project at Cortez and Newmont’s nearby Carlin property to refine the application of heap leaching to these low carbon, low sulfide oxidized deposits, that the ‘invisible’ gold became commercially ‘visible’. “The process is simplified when

BE Mining | 203

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9 million oz Established deposit amount

Inside the processing plant

206 | BE Mining

of sulfides or carbon in them.” The Cortez deposits tend to be low in sulfide and carbon deposits and very conducive to heap leaching.

Not all the gold in the Cortez district is held in these oxidized deposits, but a significant proportion of it is, and there is much more of it than was ever suspected when the nearby Pipeline deposit was being mined in the 1990s using truck and shovel methods.

“We have continued to look for these large scale oxidized deposits,” he explains. “They are well suited for the mining fleet and for the processing that was already available on site. By going back into productive districts and drilling a bit deeper we were able to locate the Pediment deposit back in 1999.

Further drilling revealed the adjacent and larger Cortez Hills deposit. That was when we finally understood that there was a large gold deposit at depth.” A minority of the gold at Cortez Hills is indeed found in refractory rock. This is transported 75 miles to the company’s specialized mills at its Goldstrike property to the north of Elko – this might seem an expensive option, but it makes sense when one considers that construction of a new refractory mill would cost upward of a billion dollars.

Barrick took six years to complete its drilling program and establish a deposit

Barrick Cortez

Overview of the mine from the mountain side

in the region of 9 million ounces coming in at a very satisfactory grade, with some areas exceeding one once per ton of ore.

The permitting process began in 2005 with applications to both federal and state agencies, and the operating permit was finally received in November 2008.

The entire process was complicated by the fact that the area became the focal point

for a Native American rights organization’s struggle over land that is now managed by the US federal government. Besides gold, the area was also rich in historical and cultural resources. While Cortez Hills contained no Native American settlements as such, it was located on traditional migration routes.

Artifacts were found in their thousands, dating back thousands of years. “We

“We executed one of the largest archaeological programs that had ever been done in the State of Nevada” BE Mining | 207

STRIVING TO BE THE BEST. CHOOSING TO BE THE SAFEST. Cementation is proud to be part of the Barrick Cortez Hills Project team providing design, construction management and mine contracting services.

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Barrick Cortez executed one of the largest archaeological programs We are an underground mine contracting and engineering that had ever been done in company, providing mine development and production the State of Nevada aiming services for Clients throughout the US and Mexico. We to characterize, document are focused on safety and committed to our ultimate goal and preserve the archaeology of zero harm within our operations. We understand that and history through that mine owners are looking for safe work, engineering that adds value, and a contractor willing to work with them, and area.” Over eight months together meet budget and schedule challenges head on. the site was populated by Complete with our best for project philosophy, Cementation archaeologists armed with is and has always been that contractor. trowels and going inch by www.cementation.us inch across the area of the proposed mine. In all, nearly 400,000 artifacts were recovered, many from historic mining in the area. Cataloguing these items was a massive task for the Nevada State Museum which continues to stabilize, curate, and preserve them for posterity.

There’s never a mining development where there are not some objections from community, environmental and commercial interests, and Cortez Hills was no exception.

Barrick’s legal success over objections gave no particular cause for satisfaction and George Fennemore in fact sees the dialogue as a prime way to engage legitimate concerns and hopefully allay them. “Because we utilize public land for our mining, this gives the opportunity for any interested party

CEMENTATION USA INC.

9 miles Process General Supervisor Darrin Powers with about 5,500 ounces of gold dore

The longest conveyor in Nevada serves Cortez Hills

BE Mining | 209

“We opted to build the longest conveyor in Nevada rather than truck ore from the pit�

A section of the conveyor belt

210 | BE Mining

Barrick Cortez to comment. Anyway the dialogue is not just about our mining operation but in general how the government handles resources.” This is a particularly big issue in Nevada where 90 percent of the land is Federal Government owned. Cortez is the largest mining operation on federal land in the USA and the main permitting process handled through the US Bureau of Land Management is bound to attract considerable public comment. That may not always be comfortable but it does provide a forum. In the Maintenance worker end, local interests should receive primary consideration in view of the at our existing facilities which are about nine undeniable economic boost the project and miles away from the pit itself, so we opted to all its associated activity generates. build the longest conveyor in Nevada rather By midsummer of 2009 construction was in than truck ore from the pit.” full swing, using a 78-cubic-yard P&H 4100, The conveyor designed and supplied by multiple 57 cubic-yard P&H 2800 shovels and ThyssenKrupp Robins can transfer 1,000 a fleet of 27 400 tonne Liebherr haul trucks. tons per hour from the Cortez Hills to the Though it took till the end existing heap leach facility – of that year before the ore it includes a belt feeder and body was uncovered and gold five conveyors. A 90 foot long recovery could commence. variable speed belt feeder This was a fast track project. transfers primary crushed It took just under a year to ore to the first of the 5 get from virgin ground to the conveyors. The most complex ore body, says Fennemore. conveyor of the system is the Proven and probable “We process the ore from seven mile long regenerative gold resources at both the open pit and the overland conveyor that runs Cortez, end 2011 underground mine below it at 900 feet per minute with a

14.5 million oz

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Elko Wire Rope & Mining Supply would like to thank the Nevada Mining, Drilling & Contractors who have made us successful in this area since 1996.

We look forward to your continued support.

LOCAL QUALITY SERVICE SINCE 1996

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ELKO WIRE ROPE & MINING SUPPLY It is the goal of Elko Wire Rope to provide manufactured rigging products and hardware which are competitively priced and delivered on time with zero defects at quality and service levels that are consisitent with the expectations of our customers. We fully understand that to do so is good business.

The succes of Elko Wire Rope depends on our commitment to associate involvement, continual improvement and improved buisness performance goals.

E. elkowirerope@frontiernet.net www.elkowirerope.net

WEEKLY| 213 |2 BEBEMining

Barrick Cortez The Cortez Hills pit and underground mine entrance

90% Amount of land in Nevada which is Federal Government owned says, and when the time came for these trees to be removed the Shoshone people were consulted and the timber made available to indigenous communities for firewood and other uses.

It is important to get interventions of this sort right, George Fennemore believes. “It is easy for a big corporation to overwhelm a small community so we work very diligently to pay attention to the land users, other water users, and employers – for example when we harvest trees we are careful to work with local woodcutters and not wipe out their business by dumping a load of firewood onto the market.” A global corporation such as Barrick has to be particularly diligent, he says, to be sensitive to the needs of local communities and local businesses and operate in ways that will not disrupt their livelihood. Many local vendors and suppliers are supported by the presence of a large operation, and many local businesses have benefited from Barrick’s policy of sourcing the maximum possible in materials and services from them.

For more information about Barrick Cortez visit: www.barrick.com

BE Mining | 215

Precious metals Mine in brief The Cortez mine is located 100 kilometers southwest of Elko, Nevada in Lander County.

The Cortez Pipeline property is 11 kilometers northwest and the Cortez Pediment property (which includes the Cortez Hills deposit) is 4 kilometers southeast of the original Cortez milling complex. The Pipeline and South Pipeline deposits are mined by conventional open-pit methods. The Cortez property covers approximately 2,800 square kilometers on one of the world’s most highly prospective mineral trends.

MANAGEMENT AND DIRECTORS

regional Office

Peter Munk

Barrick Gold North America, Inc. 460 West 50 North, Suite 500 Salt Lake City, UT 84101 USA

Co-Chairman of the Board

John Lawson Thornton Co-Chairman of the Board

Jamie C. Sokalsky

Tel: +1 801 990-3900 Email: narbu@barrick.com

President, CEO, Director

Charles William David Birchall Vice Chairman of the Board

Ammar Al-Joundi CFO, Executive Vice President

Igor Gonzales President, South America

Peter J. Kinver COO, Executive Vice President

216 | BE Mining

www.barrick.com

BARRICK cortez stock watch

products • Gold

services • Mining • Exploration Exchange NYSE

Shares 1,001.11M

Symbol ABX

Market Cap. 27,067.94M

operating location • Nevada

Currency USD

Div/yield 0.20/2.96

Mine HIGHLIGHTS

Key stats and ratios

With 2012 production of 1.37 million ounces at total cash costs of $282 per ounce1, Cortez is one of the world’s largest and lowest cost gold mines, and the property also has excellent upside exploration potential. Production in 2013 is anticipated to be 1.17-1.24 million ounces at total cash costs of $255-$275 per ounce.

Proven and probable mineral reserves at Cortez as of December 31, 2012, were 15.1 million ounces of gold.

Q4 (Dec ‘12) 2012 Net profit margin -73.81% -4.65% Operating margin -111.39% -5.73% EBITD margin - 8.74% Return on average assets -24.96% -1.41% Return on average equity -52.24% -2.94%

Financial information from Google Finance and Thomson Reuters

BE Mining | 217

Amlib

Exploring a new frontier Liberia remains one of the few remaining prospective parts of the world yet to be fully explored. Chief executive officer Geoff Eyre talks about how Amlib is working to help fulfil the country’s great economic potential

written by: Will Daynes research by: Celina Bledowska

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The Amlib drilling team have over 20 years of experience in diamond core drilling

Amlib

W

hile for much of its have increased our operating and exploration 161 year history Liberia capabilities within the country significantly, has been a stable and investing in people and infrastructure so as productive democracy, to have the ability, at any one point, to be recent decades have operating on multiple exploration targets across seen the country plagued by civil war and all four licences. This in turn helps us generate adversely affected by the drying up of results more quickly and allows us to move our foreign investment. Nevertheless, the current projects forward in a timely manner.” government of Liberia, led by President Ellen All of Amlib’s licences currently boast Johnson-Sirleaf, is determined to lead the significant levels of artisanal activity. The country into a new age of economic growth. largest of these is Cestos, a huge licence While it remains largely unexplored, Liberia spanning nearly 2000 square kilometres. It is has a well-known potential for primary and here that the company has spent a considerable alluvial gold and diamonds, and has been amount of time and effort in recent years shown to possess a wide range gaining access to its target of minerals including beryl, areas in order to carry out tin, phosphates, zinc, copper, the initial exploration phases.

Most recently the company has lead, uranium and iron.

Amlib is an exploration commenced drilling on three specific targets, with early company focused primarily grams per tonne. The results suggesting the area has on gold in Liberia, with average grade of gold found some very positive similarities a business development within the Kokoya licence between itself and the Ashanti mandate encompassing other mineral opportunities.

Gold Belt in Ghana.

“While we have been operating in the A few hours outside of Monrovia, Amlib has country in our current form since 2000,” also been working recently at Kle Kle where explains chief executive officer, Geoff Eyre, it has drilled a total of 69 holes to date on “the history of the licences that we hold dates its targets there. Again, initial results have back to the 1980s. It was at this time that our been very positive with the company now founding geologist, Dr Nathaniel Richardson, embarking on a three dimensional structural was director of the US Geological Survey interpretation to determine the details for and it was his knowledge and experience of the next phase of drilling. Similarly, Amlib the region that led to Amlib becoming the is preparing to carry out a helicopter-borne organisation it is today.” exploration programme in the coming months Amlib’s operations are focused around its over its Zwedru licence. This will be done to Cestos, Kle Kle, Zwedru and Kokoya Mineral test a 12 kilometre soil anomaly. “Should the Development Agreements (MDAs). “During results of these tests come in as expected,” Eyre the last three years,” Eyre continues, “we enthuses, “it will result in the discovery of a

2.6

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significantly sized gold anomaly that I believe will start to excite the majors in the region.”

Last, but certainly not least is the company’s Kokoya licence, which hosts a NI 43-101 compliant resource of 410,000 at an average grade of 2.6 grams per tonne of gold. Amlib is actively looking to fund development of this project, which is expected to produce 50,000 ounces of gold per annum over five years.

Amlib has also identified significant growth potential for the Kokoya licence, which boasts a number of additional gold targets that are still to be followed up on.

Although Liberia can claim to have extremely favourable geology, because of the aforementioned historical troubles that have beset the country it remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored.

While being one of the early stage explorers into the country has brought Amlib considerable benefits, not least the chance to secure the rights to some highly prospective ground, it has also meant that the company has had to deal with several big challenges.

“In addition to the challenges presented by the climate of the region,” Eyre says, “we also had to overcome the lack of infrastructure that existed prior to our arrival in Liberia as

well as the fact that we did not have access to the sort of country wide exploration data that one might expect to find in other countries.”

What Amlib found was that the best way to overcome such challenges was to invest considerable amounts of capital into building up its own capabilities internally, funding its own plant and logistics infrastructures. As Eyre goes on to highlight, Amlib has also developed its own in-house drilling service. “Having

“Liberia remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored” 222 | be mining

Amlib

Amlib Drilling Services, working through Liberia’s wet season

this capability is somewhat to third parties, while unusual for an explorer such expanding the fleet in order as us. It has, however, been to take advantage of the an extremely advantageous opportunities that continue addition to the business.” to present themselves in ounces per annum.

As well as allowing Liberia. Not only has this Of gold that Kokoya is service provided us with an Amlib to drill at much expected to produce over alternative revenue stream cheaper rates than would a five year period but it has also presented us otherwise be possible, its with the opportunity to look internal drilling service allows it to test targets that into expanding more broadly only require the company to drill a few in the future, beyond Liberia and into other thousands metres initially. This allows it parts of West Africa.” to avoid signing minimum metres contacts One thing that Amlib has been acutely that would be highly inefficient and a drain aware of since its first day within Liberia is the fact that in order to operate successfully in on resources.

“In the last six months or so,” Eyre states, such parts of the world it is imperative that you “we have started to make rigs available engage and work with the local community.

50,000

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“We take the corporate social responsibility aspect of our business extremely seriously,” Eyre says, “and have undertaken a number of projects in the licence areas in which we operate, including the building of junior schools in the Kokoya area. In addition to this, in Cestos, we pay for the salaries of the teachers that run not only the schools we have built but others in the area also. As well as putting in water wells in the local communities in which we operate,

we also have a national relationship with the charity, Cure International. It is on behalf of this group that we have recently funded the refurbishment of an operating theatre at JFK Hospital in Monrovia that is now being used to treat hydrocephalus and save children’s lives.”

Amlib is undoubtedly in the midst of an exciting period in its history and it is over the coming months and years that it intends to drive a number of programmes and initiatives

“Driving the company’s developments forward is a highly qualified and dedicated technical team that are helping to deliver on Liberia’s potential”

Upgraded railway line linking Kokoya project to Buchanan Port in Liberia

224 | be mining

Amlib

Bill Brodie Good, COO, with the earth science students Amlib sponsor

forward in order to grow further. “One of the most important things on our agenda,” Eyre reveals, “is the development of the Kokoya project, which will provide the business with a solid cash flow within a relatively short space of time. Meanwhile, we expect the next round of drilling at Kle Kle to produce more positive results as we begin to better understand the structure and mineralising controls required to work on the resource.”

Elsewhere within the company, Amlib has set in motion plans to expand its drilling services, potentially alongside a third party partner. This would also begin to generate

increased revenues for the business and allow Amlib to continue unabated with its exploration programmes. “Driving all these developments forward,” Eyre concludes, “is a highly qualified and dedicated technical team. These are the individuals that are helping to deliver on Liberia’s potential, while at the same time mapping out Amlib’s future and making it more robust as an organisation during these challenging times.”

For more information about Amlib visit: www.amlibgroup.com

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precious metals company in brief Amlib is an exploration company focussed primarily on gold in Liberia with a business development mandate encompassing other mineral opportunities. Significant investment has been made in Amlib’s infrastructure and in-country capability in recent times and the company is well placed to capitalise on the vast underexplored mineral wealth Liberia has to offer.

In 2012 Amlib completed a transaction to separate out an Iron Ore project into a new

corporate group and signed a Joint Venture agreement to fully finance the project to completion of the BFS.

MANAGEMENT AND DIRECTORS

corporate Office

Geoff Eyre

Wellington House Union Street St. Helier Jersey JE2 3RF Channel Islands

President And Ceo

Mark Pryor Vice President Exploration

Bill Brodie Good Vice President Operations

Tel: +44 1534 828 430

Brian Gibson Vice President Financial

operations Office

Carney Johnson

P.O. Box 3766 Coconut Plantation Newport Intersection Mamba Point Monrovia, Liberia

Vice President Corporate, Social Responsibility

Dennis Robertson Country Manager

Chris Picken Senior Geologist

226 | be mining

Tel: +44 20 8099 4253 www.amlibgroup.com

AMLIB Capitalisation & Shareholders

products

Basic shares outstanding 41,191,358 Warrants 363,229 Options 2,939,591 Fully diluted shares outstanding 44,494,178 Cash* (US$ MM) 4.5

• Gold • Iron Ore

* As at 1 february 2013

services

Blakeney Management 4.4%

DiBenedetto Holdings LLC 5%

Other 3.5%

• Gold exploration • Gold development • Drilling services

operating territories Aurum Holdings LLC 87.1%

• Liberia

INVESTMENT HIGHLIGHTS Kle Kle MDA •T hird phase exploration drilling completed with positive drill intersections identified.

•C ontinuation of the down dip potential tested in recent drilling (KKY052).

• Maiden resource at the Kle Kle gold project expected in 2013.

Cestos MDA • Covers 1,870km2 of highly prospective

greenstone Archaean and Birimian terrains demarcated by the Cestos Shear Zone.

Work so far has confirmed analogies to the Ashanti Gold Belt in Ghana with all the hallmarks of a major gold system with multimillion ounce potential. The Cestos MDA has the potential to be a brand new gold belt.

Zwedru MDA •S trong NE linear trend covering 6km with values > 100 ppb Au. Trench results confirm in situ mineralisation.

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East Asia Minerals

ACCESS TO

INDONESIA East Asia Minerals has come through the rapids and is now headed into smoother waters: the Vancouver based mineral exploration company has located major gold and silver deposits in Indonesia and has cleared the route to develop them

written by: John O’Hanlon research by: Jeff Abbott

BE Mining | 229

A scenic view from the mountain on the Island of Sangihe

East Asia Minerals

O

ne year can make a big difference: when Ed Rochette, accepted his current role as chairman of East Asia Minerals (EAS) his burden seemed heavy. Today it is a lot lighter. Let us recap. When Rochette came in as the chairman of the company in 2010 he was alarmed by the heavy burn rate of capital.

When he saw that $2.5 million a month was being spent and the share price had fallen dramatically he decided to take on the role of CEO and set about the task of making sense out of this fundamentally sound mining company, with its potentially world class gold deposits in Indonesia as well as some uranium and phosphate assets in Mongolia.

He stopped all drilling activities and cut staff levels by 60 percent. With the management team’s efforts thereafter focused on resolving the permitting impasse the Indonesian operations had reached, the shareholders and the market were expected to respond positively. Once he was able to reduce the monthly burn rate down to $400,000 by the end of 2011, he was able to raise $13 million in a private placement.

By the time the third quarter of 2012 had arrived things were looking up and the situation then was captured in the Business Excellence article that we published in October. Basically EAS was by then focused strongly on Indonesia, where Rochette was spending most of his time. The two main projects the company has there are located far apart from one another. One is on the small island of Sangihe at the north-eastern tip of the Indonesian archipelago in Sulawesi

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province, while the larger Miwah project is in the province of Aceh in westernmost Sumatra, the largest of Indonesia’s 17,000-odd islands.

However both projects promise to yield richly, with Sangihe currently estimated to contain nearly a million ounces of gold plus eleven million of silver and Miwah thought to have more than three million ounces of gold and almost nine million of silver. These are truly potential world class deposits even without taking their considerable development upside potential into consideration.

Through the efforts of the strengthened management team that Rochette has brought on, work at Sangihe has been progressing smoothly, with a 4,600 metre drilling programme that started in late 2012, bang on Rochette’s predicted schedule and directed towards increasing the inferred reserve.

“Look out for the preliminary results from that drilling programme,” he advises. “We will be announcing those during the last week in February.” The work is being carried out under the eye of Frank Rocca, appointed VP of Exploration in September 2012 and a key member of the strong team now being built.

That team will be further cemented shortly with the appointment of a new COO to replace Dave Anthony, whose move to the Board of Directors was announced at Christmas.

Miwah presented more problems, as we noted last year. While Sangihe has been permitted under Indonesia’s pre-2009 Contract of Work (CoW) system with a 27year licence, the work at Miwah is governed by an eight-year exploration IUP, the local licensing format that was adopted by the government more recently.

The IUPs at Miwah were due to expire at the end of 2012. Had it not been possible

“Had it not been possible to renew the licence, all of the data and IP that had been accrued would be forfeit” 232 | BE Mining

East Asia Minerals

Local ship transporting relief supplies to earthquake victims across Sangihe Harbour

to renew them there would when it comes to securing be a danger not only that operating licences and the concession would revert negotiating terms. Even so, to the government but that had he not had the invaluable support of his management all of the data and IP that Current drilling team coupled with the local had been accrued would programme at Sangihe partner, the strategic advisors be forfeit. Closer spaced drilling is needed to confirm and the officials in Aceh, the the findings and upgrade the resource from result might have been different. ‘inferred’ to ‘indicated’. Additionally, Miwah There was cause for celebration when on is what is called an ‘open’ resource which 8 January 2013 EAS was able to announce means that drilling outside the area already that it had obtained agreements, signed by the explored could add significantly to the ore elected Bupati, or Regent of Pidie confirming body that has already been defined. his verbal assent to renewing the licences for It was a delicate situation, and retaining the an additional two years until 30 November, good will of the authorities at all levels was 2014. “This signed extension was the result crucial. Fortunately Ed Rochette is a lawyer of a sustained effort by the Company over with one of the best records in the industry the past year,” said Rochette. “The tenure

4,600m

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“I am a great believer in making the local people ambassadors for the company right from the start” issues at Miwah are now behind us. We can immediately re-start our exploration programme for the project and our team can move forward to seek removal of the surface use restrictions imposed by the Ministry of Forestry.”

The deforestation of Indonesia, which since 1900 has lost millions of hectares of some of the world’s most diverse rain forest in the world, is a matter of global importance.

A collection of recent core smaples

234 | BE Mining

However the main threat has been the paper and pulp industry, plantation agriculture and logging. The strict regulations that have been rightly introduced are aimed at saving the remaining trees and wildlife habitat for posterity. But mining has a light footprint compared with other industries: drilling requires very few trees to be removed and any mining project comes with a robust rehabilitation plan. Compared to the palm oil

East Asia Minerals

EAS management team at ceremony for donation of supplies for earthquake victims. (Left to right) Mike McAllister-Manager IR, Dave Anthony-Chief Operating Officer, Edward Rochette-Chairman & CEO

plantations that change the landscape for all time, mining is environmentally sustainable.

Nevertheless permission for any surface disturbance activity in the areas classified as “protected forest” has to be obtained from the Ministry of Forestry, and this process can easily take two years. Ed Rochette is sympathetic with the principles behind the regulations, however it is as much in the Indonesian government’s interest to facilitate the development of a major gold mine as of any of EAS’s other stakeholders involved with the project. “We believe we may have been able to identify a way forward, working with the government officials, that will bring the

time-scale well below six months,” he says diplomatically. “The new drilling programme, which has already started in areas without surface restrictions, will confirm the viability of this project, and it should also demonstrate significant extension to the resource.”

As well as contributing positively to Indonesia’s GDP, EAS’s activities will benefit local communities. “I am a great believer in making the local people ambassadors for the company right from the start,” he says. “If you get them on your side before something happens or someone organises a protest it is a lot better than having to make amends after the event.” This is an extension of the

BE Mining | 235

Core sample detail from 120m

East Asia Minerals person-to-person principle that was crucial in resolving the tenure problems and is well illustrated at Sangihe where at Christmas 300 children and their parents were given a dinner hosted by EAS, the first time any overseas company has done this on that island.

Now a clean water scheme has been initiated for villagers living near the operation, and 42 local jobs have been created. Already 500 bags of cement have been given to villagers to help them repair houses damaged in a recent earthquake. Equipment has been purchased for the local medical clinic; sports equipment has been obtained for the local team; fertiliser has been purchased and distributed for local farmers; and other community engagement projects are currently being implemented which are geared towards local content objectives. Miwah will benefit in a similar way as the project matures.

East Asia Minerals is no longer a turnaround case, but a lean company, well organised and financed, with an aggressive exploration, acquisition and growth strategy. Monthly expenditure has been maintained at around $400,000, and the company had $10 million in the bank at the end of last year. Above all, it has achieved 90 percent of the goals that Ed Rochette set out for himself and East Asia Minerals just a year ago. The next challenge is “to grow the company�, a goal that the management team, along with its strategic advisors, are currently working on.

For more information about East Asia Minerals visit: www.eaminerals.com

BE Mining | 237

Precious metals company in brief East Asia Minerals Corporation (“East Asia Minerals”) is a Canadian publicly-traded mineral exploration company. The Company is engaged in the exploration, acquisition, and development of mineral properties in Asia with a key focus on Indonesia.

in re-starting exploration and development of its Sangihe Project.

East Asia Minerals’ flagship property is its multimillion ounce Miwah gold deposit, located in Aceh, Indonesia. The Company is also engaged

Additionally, East Asia Minerals owns 100% equity interest in six uranium licenses and one phosphate license in Mongolia.

MANAGEMENT AND DIRECTORS

corporate Office

Edward C. Rochette

Suite 1588-609 Granville Street Vancouver, B.C. V7Y 1G5

Chief Executive Officer

Michael Nayyar, Chartered Accountant Chief Financial Officer

Frank Rocca

Tel: T. 604.684.2183 Fax: 888.371.5832 (Toll Free) Fax: 604.357.1987 Email: info@eaminerals.com

Vice President, Exploration

Edward C. Rochette Chairman

Peter Sederowsky Lead Independent Director

David Anthony Director

David Stein Director

Ed Flood Director

238 | BE Mining

www.eaminerals.com

East Asia Minerals stock watch

products • Gold • Gold-Copper • Silver • Uranium • Phosphate

Exchange CVE

Shares 110.22M

Symbol EAS

Market Cap. 18.19M

Currency CAD

Div/yield -

operating territories • Indonesia • Mongolia

INVESTMENT HIGHLIGHTS

Key stats and ratios

Miwah gold project EAM owns an 85% indirect equity interest in the Miwah epithermal gold prospect.

Q4 (Nov ‘12) 2012 Net profit margin - Operating margin - EBITD margin - Return on average assets -17.72% -23.36% Return on average equity -18.25% -24.47%

Sangihe Gold-Copper project EAM owns a 70% direct equity interest in PT Tambang Mas Sangihe.

Tangse Porphyry project EAM owns an 85% indirect equity interest in the Tangse Porphyry prospect.

Mongolian project EAM owns an 100% direct equity interest in both EAM Exploration LLC and EAM Teshig LLC.

Financial information from Google Finance and Thomson Reuters

BE Mining | 239

240 | be mining

Canada Fluorspar Inc (CFI)

A most exciting

prospect The release of a Preliminary Feasibility Study of its St Lawrence fluorspar project in Newfoundland has provided Canada Fluorspar Inc (CFI) with even greater cause for optimism as it vies to become a major player in what is fast becoming a hugely important market

written by: Will Daynes research by: Marcus Lewis

be mining | 241

View of the facilities

Canada Fluorspar Inc (CFI)

W

ednesday 30th January 2013 was a particularly significant date for Canada Fluorspar Inc (CFI). It was on this day that the company proudly announced the results of a newly completed Preliminary Feasibility Study (PFS) for its St Lawrence fluorspar project in Newfoundland.

Historically used in aluminium production, protective clothing containing Kevlar, Teflon for non-stick frying pans, and refrigerants and air conditioning, fluorspar is a halide mineral of increasing importance, specifically when it comes to new manufacturing technologies.

In the last decade the fluorspar sector has become largely vertically integrated as more major chemical companies have sought to secure supply. While not by any means a scarce resource, fluorspar projects of significant scale do remain rare, and as China continues to reduce its exports and cut supply as consumption in China continues to grow, the rest of the world is increasingly being forced to develop limited new fluorspar resources.

An essential component in lithium batteries, fluorspar currently has a global consumption rate of over six million tonnes a year, a figure that is predicted to increase rapidly to over seven million tonnes by 2015, as the market for smart phones and tablet PCs continues to expand unabated.

CFI has formed a 50/50 partnership called Newspar with French chemical giant Arkema Inc. Together they own the mineral rights to the extensive St Lawrence fluorspar veins next to the town of St Lawrence, one

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kilometre from the Atlantic Ocean. It is here that the company benefits from the existence of substantial infrastructure, including access to the provincial power grid, a mill, tailings pond and a range of buildings.

Prepared by independent engineering firm Roscoe Postle, the PFS conducted on the St Lawrence project is based on updated capital and operating costs, as well as the existing resource estimate. Taking these figures into account, the PFS estimates that CFI is looking at a 131,000 tonnes per annum fluorspar production, which is an increase from its previous estimate of 122,000 tonnes per annum.

“The results of this PFS,” states President and Chief Executive Officer, Lindsay Gorrill, “highlight the economics of the project, which combined with the size, quality, logistical and infrastructure advantages make this a hugely significant fluorspar asset. In addition to this, we are bullish on the long term demand of fluorspar as world consumption continues to grow.”

The PFS base case pre-tax NPV is $124 million, while the pre-tax IRR is set at 16.4 percent, assuming a 5.0 percent discount rate.

The capital costs associated with the preproduction phase are estimated to be $154 million with on-going capital costs expected

to be $72.5 million, which will be paid from cash flow generated by the project.

The base case has been constructed under the assumption that the long term price of fluorspar will average around $500 per tonne. This prediction is supported by long-term demand estimates and the relatively stable prices that the mineral enjoys compared to others.

”Fluorspar is a halide mineral of increasing importance, specifically when it comes to new manufacturing technologies” 244 | be mining

Canada Fluorspar Inc (CFI)

Core samples from the drilling programme

The PFS proposes that for the ore body geometry of CFI’s assets as it is believed initial production from the Blue Beach North mine will to provide the safest, more provide the first six-and-aefficient and cost effective half years of production, method of extraction. The Estimated lifespan followed by an additional actual processing operation of the project seven-and-a-half years of will initially require the production from the Tarefare upgrading of the mill feed No. 2 mine. via a dense media separation The run of mine (ROM) production over plant, followed by grinding and floatation, the mine life is anticipated to average around to produce a high quality concentrate. The 386,000 tonnes per annum of ore, 412,000 company will benefit from the significant cost at Blue Beach and 365,000 at Tarefare, advantage of being within close proximity providing an average concentrate production to tide water less than two kilometres away of 131,000 tonnes per annum. from the mill site.

In developing the PFS it was decided that the Given the size of the resource estimate, Alimak mining method would be the suitable the project is expected to have a mine life of

14 years

be mining | 245

Flotation reagent area, upstairs

“Based on the positive results that CFI has received, it now begins work on its 2013 drilling programme with renewed optimism” approximately 14 years, however there are significant resources in addition to currently defined mineral reserves which will provide the opportunity to extend the mine life further still.

In addition to the PFS, as previously announced, an additional review is currently being undertaken by Newspar, in order to

246 | be mining

establish a more precise understanding of the St Lawrence project’s anticipated cost and scope. That review process is considering of a range of mining, milling and infrastructure options that may be applicable to the project. As a result, no final decision on the project’s cost and scope has been made as of yet, nor will it be made

Canada Fluorspar Inc (CFI)

Flotation area

until such time that the review process has been completed in full.

Following on from the positive results the company collected from the samples it took from one of its trenches within the Director Vein of the St Lawrence project during the early part of 2012, results that revealed CFI was standing on top of a 90.7 percent fluorspar vein measuring approximately 9.4 metres in width, it carried out surface trenching of the vein during its 2012 exploration programme.

At press time, this had led to the uncovering of fluorspar mineralisation at eight locations.

The trenches are located over an area that extends more than 1,050 metres to the south of the old workings of the Director

Vein, and indicate surface mineralisation with widths varying from 3.4 metres to a massive 23 metres.

Based on the positive results that CFI has received from both its PFS and from its surface trenching operations, it now begins work on its 2013 drilling programme on the southern extension of the Director Vein with renewed optimism and an even greater sense of excitement for what the years ahead will hold.

For more information about Canada Fluorspar Inc (CFI) visit: www.canadafluorspar.com

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minerals company in brief Our strategy centres on increasing shareholder value by pursuing and developing high-potential industrial mineral projects with its current focus on Fluorspar. CFI also prudently manages its balance sheet and expenses and continues to look at growth opportunities.

CFI is developing a large fluorspar project in St. Lawrence, Newfoundland, Canada and is moving forward to reactivate existing underground fluorspar mines, expand an existing mill, construct a new, environmentally-sound Tailings

Management Facility (TMF), and build a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product (Acidspar). The project is anticipated to produce between 120,000 and 180,000 tonnes of fluorspar filtercake concentrate per year.

MANAGEMENT AND DIRECTORS

corporate Office

Lindsay Gorrill

50 Harbour Drive 4th Floor St. John’s, NL A1C6J4

President, CEO

Paul Coombs CFO

Richard Carl Executive Chairman

Phonce Cooper General Manager

Norman Wilson

Operations Office PO Box 337 St. Lawrence, NL A0E 2V0 Canada

Mill Manager

Tel: 1-800-823-8095 Fax: 1-800-823-8094

Brian Delaney

www.canadafluorspar.com

Mine Manager

Richard Carl Chairman

248 | be mining

Canada Fluorspar Inc (CFI) stock watch

products • Fluorspar

operating territories Exchange CVE

Shares 103.58M

Symbol CFI

Market Cap. 25.89M

Currency CAD

Div/yield -

• Canada

INVESTMENT HIGHLIGHTS

Key stats and ratios

CFI has formed a 50/50 partnership called Newspar with French chemical giant Arkema Inc. Together they own the mineral rights to the extensive St Lawrence fluorspar veins next to the town of St Lawrence, one kilometre from the Atlantic Ocean.

Q3 (Sep ‘12) 2011 Net profit margin -390.47% 14354.16% Operating margin -390.47% 13709.79% EBITD margin - -2816.65% Return on average assets -3.82% 57.73% Return on average equity -4.06% 61.73%

Financial information from Google Finance and Thomson Reuters

be mining | 249

Jindal Africa

A land of Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer

opportunity written by: Will Daynes research by: Jon Bradley

be mining | 251

CIC Energy’s planned Coalto-Hydrocarbons (CTH) Project intends to convert coal to low sulphur diesel fuel and associated products

Jindal Africa

S

eeing as Africa produces more than 60 different metal and mineral products, and is a major source of several of the world’s most important commodities, it is little wonder that it remains an area of profound interest for mining companies.

While exploration and mining developments across the continent have undoubtedly increased in recent decades, there is still considerable scope for expansion.

One company that has been making waves across Africa over the last several years is the multinational conglomerate, Jindal Steel and Power Limited (JSPL), a leading figure in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors. Recognising that Africa is indeed endowed with great mineral wealth, as well as a nation of warm, hardworking and committed people, JSPL established Jindal Africa in 2008, with its remit being to discover minerals primarily for JSPL’s steel production in India.

“Our African operations,” explains chief executive officer of African Business Ventures, Ashish Kumar, “span across South Africa, Mozambique, Botswana, Zambia, Namibia, Tanzania and Madagascar, and provide direct and contract-based employment for approximately 2500 people.”

Today, Jindal Africa is working diligently to expand its footprint across the continent.

Its headquarters is based in Johannesburg and it is from here that it overseas the businesses’ regional operations and on-going expansion plans. Its operational activities in the country include the Kiepersol Colliery, outside the town of Piet Retief

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RRL GRINDROD RRL Grindrod Locomotives is proud to be associated with Jindal Steel and Power Limitada Mozambique (“JSPL”).

In Partnership with JSPL, RRL Grindrod will be managing the rail logistic solution for the open cast mining project at Chirodzi.

Our involvement in the project includes the manufacture, maintenance and operation of the locomotives freighting coal on the Sena Line to the port of Beira.

About RRL Grindrod RRL Grindrod is a diversified rail and logistics company which aims to provide rail engineering and operations solutions for customers across the African continent.

Our main service offerings are: Locomotive and wagon manufacture which includes design, manufacture and sale of rolling stock, rolling stock refurbishment, locomotive leasing and wagon maintenance.

Rail operations services include train crewing, driver training and management, rail siding and cargo management.

Our clients vary from mainline rail operators requiring long haul traction to large and medium-sized mining operations with a need for short haul, branch line or shunting services. We have a growing footprint on the continent with existing operations in several African countries including Congo Brazzaville, Democratic Republic of Congo, Mozambique, Sierra Leone and South Africa.

As a part of the wider Grindrod Group the company is committed to providing customers with a seamless pit-to-port rail solution to freight bulk cargo in the region.

We look forward to a lasting partnership with JSPL as we continue to keep rail freight moving!! www.rrlgrindrod.co.za

WEEKLY| 255 |2 beBEmining

Arlona Engineering, which is based at the Durban Harbour, is one of the leading designers and manufacturers of bulk handling and lifting equipment in Southern Africa.

The company, with extensive experience in the design and manufacture of innovative handling equipment, has the expertise and machinery to manufacture equipment according to stringent specifications. This design and manufacturing service is enhanced by a specialised proofloading facility for lifting equipment. www.arlona.co.za

Jindal Africa

Jindal Africa hopes to develop Zambia’s copper resources

international companies to mine the rich hand, represents Jindal Africa’s foray Moatize region in the Cahora Basa district into the copper industry, where it is in of Tete province. the process of exploring and developing Further afield, the company has plans to greenfield copper concessions. Jindal Africa establish a cement plant in Madagascar that hopes to play a pivotal role in developing will be supplied by its own Zambia’s copper resources limestone mines. Meanwhile, and downstream facilities.

Jindal Africa is involved “In the past twelve in extensive coal, copper months,” Kumar continues, and iron ore exploration “we have made significant activities in Tanzania and investments that we feel has been granted a license will quickly bring added The year that Jindal to mine copper. value and growth to the Africa was established Zambia, on the other business. The first of these

2008

be mining | 257

Road construction doesn’t have to be as costly, time-consuming and complicated as you think.

Global Civil Solutions provides innovative, leading edge road construction technology to the Mining industry. The company is a proud supplier to the Jindal Group with a list of clients that include Jindal Mining, Anglo Platinum, Impala Platinum and Australia based Stonewall Mining.

Recent projects include the design and construction of the main access haul road to the Jindal Mine at the Piet Retief Colliery using a natural soil stabiliser (J.G.R.S) which was speciďŹ cally designed to handle Heavy Haul Loads. International projects include a joint venture with Jindal Group in India to complete a state of the art road stabilisation development with the product manufactured locally at the Jindal Raigarh Plant and used extensively throughout the Indian Sub-Continent.

For more information contact Andy Shand on +27 83 442 8924 email andy@globalgroups.org or visit www.globalcivils.com

Jindal Africa is the development of our Global Civil Solutions Mozambique operations.

Global Civil Solutions is a construction company specialising Here we have invested in the field of environmentally driven engineering. The considerable capital in both company provides leading edge road construction technology infrastructure projects and to the Mining Industry and has developed specialist soil in our people, and this stabilisers as fast, cost-effective methods for road and rail is already starting to construction. Global Civil Solutions is headed up by Andy Shand who has extensive experience in the construction produce results.” and project management industry, having successfully A not he r i mp or t a nt managed projects ranging from highway construction, mining development for t he construction, resort hotel construction to infrastructure company was the recent development, waste water treatment and water purification. acquisition of the BotswanaClients include the Jindal Group, Anglo Platinum, Impala based Canadian company, Platinum and Australia based Stonewall Mining.

CIC Energy, for $116 million. elschke@globalgroups.org This purchase highlights Jindal’s plans to tap into the power business in southern Africa.

These plans that see the organisation invest up to $700 million in Botswana over the next three years.

“Beyond these developments,” Kumar highlights, “we have also acquired a number of greenfield exploration projects in South Africa and Namibia where we are now in the process of conducting several extensive drilling campaigns.”

Throughout the seven countries in which it is present, Jindal Africa strives

“Jindal plan to invest up to $700 million in Botswana over the next three years”

Coal train on the move from the Kiepersol mine

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INGWENYAname MINERAL PROCESSING COmpany Ingwenya Mineral Processing (Pty) Ltd Ehendanis de dollam, sit lacerum nobiscienis (IMP)fugit, is a South African ownedquaerfercium company eium ipicilluptae nonsed baseddolorem in Mpumalanga Province, withdus itseatis fugit audiciissit auta vendi headtem office Witbank in South quo asitinlanis doloribust ulpaAfrica. cumquun The company was incorporated in the latter tiberitatio.

Nam quam laboremquas half of 2006,officat and was formedfacepel to service the accuscietur, iaessum iquisqu mining industry in the ofde design, build atusdae pratiis sed estfields dicatis eossitiunt and install (processing facilities), as well as renimpo rerernam idusdam ex et fugia contractvoluptis mineralmagnis processing and nullatio enihil(operate moste nobis maintain),utand services, with magnam ius consulting sunt quia voloria volupta specific focus on the coal nonserferia voluptatem asindustry. dendand aestio IMP takes account of specialised industry idebis sandias nostisqui cus solupit volore requirements in providing mineral processing volorio nectorum in ea porum facerrum inum expertiseuttolavarious clientssit, foracia the int. benefit of inctiunt, at expeditia all stakeholders. company recognises ad que nos andusThe dolor re nimus aliquo int the requirements theeribear mining iaesed chartermod and vollut re doloritas of velit,

has a BEEsimus, shareholding component 45 enditiate quid ut abore saero of endi percent as wellvolore as board cust volenihici mi, representation. voluptatem ex For imus Jindalrem Africa we have designed est si assit prae proudly conem cumquia and installed a 200tph coal processing tiisima sandionsequi dellam, volupidio molor plant capable of producing tons reptur, nam quam que aliant120,000 utas imus per month a fourquam shiftvolupis basis, and capable aliquunt teon voloria sitaquae of modification in future increase the nobis pro modipsundi quotobea voluptam. capacity by the addition of extramolor modules. sandionsequi dellam, volupidio reptur, This plant located Kiepersol Colliery in nam quam isque aliantatutas imus aliquunt Piet Retiefquam and isvolupis designed to treat 50mm te voloria sitaquae nobis pro nominal top quo size.bea IMPvoluptam is also responsible modipsundi eos eos. for the operation dellam, and maintenance of thisreptur, coal sandionsequi volupidio molor processing facility. nam quam que aliant utas imus aliquunt. info@ingwenyamp.co.za E. xxxxxx@xxxxxxxx.com www.ingwenyamp.co.za www.xxxxxxxxxxxxx.com

beBEmining WEEKLY| 261 |2

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Jindal Africa

Jindal Africa’s philosophy is to build strong and long-term relations with communities

Group is so well regarded that it is the dream of many simply to work for the organisation.

What we want to do is recreate that same level of passion here in Africa. Yes we may be a relatively new company in the grade scheme of things, but we already believe that we have the tools needed to make this a very special place to work.”

As well as wanting to cater for today’s workforce, the company is also taking significant steps to nurture its next generation of employees. It is doing so by awarding specific scholarships to some of the most promising young individuals on the continent and providing them with the opportunity to study for a four year

“Africa represents a source of immense opportunity for JSPL, particularly when it comes to mining” be mining | 263

Jindal are undertaking greenfield and brownfield projects

Jindal Africa

$166 million The price paid to acquire CIC Energy degree in India. Once that time has passed they will then be able to return to Africa and apply the knowledge and skills they have gained abroad, as well as have the opportunity to work in one of the Jindal Africa operations.

Africa represents a source of immense opportunity for JSPL, particularly when it comes to mining, and it is because of its growth, rapid development and possession of a culture that is not dissimilar to that of India that JSPL is very confident when it comes to tapping into the continents’ potential.

“At present,” Kumar concludes, “we are undertaking exploration and greenfield and brownfield projects, with our focus also beginning to turn towards important infrastructure projects. Thus it is clear that as a company we are very positive about what Africa has to offer. By harnessing its potential correctly there is no reason why we can’t reach a point where at least 20 percent of JSPL’s total group revenues come from Africa in the not too distant future.”

For more information about Jindal Africa visit: www.jindalafrica.com

be mining | 265

minerals company in brief Jindal Africa is a part of Indian multinational conglomerate Jindal Steel and Power Limited (JSPL), which in turn is part of the US$15 billion, diversified O.P. Jindal Group. This industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil & gas, and infrastructure sectors.

Jindal recognises that Africa is endowed with great mineral wealth and hardworking committed people. Its intent is to pass on its inherent

knowledge and experience to the continent by enriching lives, creating job opportunities and adding value. “We come as a foreign entity but we want to work as a local company� - CEO, Mr Ashish Kumar

MANAGEMENT AND DIRECTORS

corporate Office

Naveen Jindal

Jindal Centre 12, Bhikaiji Cama Place, New Delhi - 110 066, INDIA

Chairman & Managaing Director, JSPL

Mr Vikrant Gujral Group Vice-Chairman & Head of Global Ventures

Ashish Kumar

Tel: +91 11 26188340-50 Fax: +91 11 26161271 www.jindalsteelpower.com

CEO - Africa Business Ventures

Manoj Dosi Country Head - Tanzania and Madagascar

Manoj Gupta Country Head - Mozambique

Antony Zebert

African Office Jindal Africa Investment Pty. Ltd. Ground Floor, Bldg. No. 1, Parc Nicol Office Complex, 3001 William Nicol Drive, Bryanston,2021, Johannesburg, South Africa

Country Head - South Africa

Arun Narain Business Head - Mines

266 | be mining

Tel: +27 11 706 8420/8321/8435 Fax: +27 11 706 8422 www.jindalafrica.com

jindal africa stock watch

products • Metallurgical Grade Anthracite Coal • Anthracite Coal • Thermal Coal

operating territories Exchange NSE

Shares 934.83M

Symbol JINDALSTEL

Market Cap. 310,505.05M

Currency INR

Div/yield 1.60/0.48

• South Africa - Corporate Office • South Africa • Botswana • Mozambique • Namibia • Zambia • Tanzania • Madagascar

INVESTMENT HIGHLIGHTS

Key stats and ratios

Mozambique Here we have invested considerable capital in both infrastructure projects and in our people, and this is already starting to produce results.

Q4 (Dec ‘12) 2012 Net profit margin 18.08% 21.81% Operating margin 23.84% 28.27% EBITD margin - 38.76% - 9.87% Return on average assets Return on average equity - 24.61%

Botswana Another important development for the company was the recent acquisition of the Botswana-based Canadian company, CIC Energy, for $116 million. This purchase highlights Jindal’s plans to tap into the power business in southern Africa. These plans that see the organisation invest up to $700 million in Botswana over the next three years.

Financial information from Google Finance and Thomson Reuters

be mining | 267

Committed to sustainable productivity Sustainability has always been one major constituent of Atlas Copco’s business in every part of the world.

O

ur u nwave r i ng commitment to ensure long term productivity of customer operations features greatly in aligning business processes with the Group’s strategic goals. In this tough economy, customers desire to save energy, improve their operations and make returns on investments. Atlas Copco, an industrial group with worldleading positions in compressors, construction and mining equipment, power tools and assembly systems meets all these customer expectations

“ A vision to become and remain First in Mind – First in Choice®” 268 | be directory

and delivers sustainable solutions for increased customer productivity through innovative products and services.

With a vision to become and remain First in Mind – First in Choice® of its customers and other stakeholders, Atlas Copco Ghana Limited operates through a number of divisions within three main business areas; Mining and Rock Excavation Technique, Compressor Technique and Construction Technique.

The Mining and Rock Excavation Technique business area markets underground drilling rigs for tunneling and mining applications, surface drilling rigs, loading and hauling equipment, exploration drilling equipment, rock drilling tools and the associated after market, all designed to help achieve high productivity with moderate maintenance costs.

Atlas Copco Ghana

The Compressor Technique business area provides industrial compressors, gas and process compressors and expanders, air and gas treatment equipment and air management systems. It has a global service network and offers specialty rental services. Compressor Technique innovates for sustainable productivity in the manufacturing, oil and gas, and process industries.

The Construction Technique business area provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, and compaction and paving equipment. It offers service through a global network. Construction Technique innovates for sustainable productivity in infrastructure, civil works and road construction projects.

Atlas Copco Ghana Limited boasts of a well-defined aftermarket (service) team which offers expert service and training to customers to increase their production capacities. To further enhance its service offering, the company has recently established a new training facility at Obuasi to provide a central place for employees and customers to attend training seminars and courses under the “Master Driller Program�.

Atlas Copco Ghana P.O Box 10071 Accra North, Ghana Accra Office T +233 0302 774512 E info.ghana@gh.atlascopco.com www.atlascopco.com

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world best practice Cyclone Projects & Consulting cc (CP&C) was established in September 1998 and since that time has undertaken and successfully commissioned an impressive list of projects for the major mining houses and the mining industry worldwide

C

P&C is considered to be the leader in the field of tailings storage facilities (TSFs) cycloning technologies and is the appointed consultant for many mines in the RSA and Africa where the technology has widely been implemented.

The interest in cycloning opportunities inspired more research into this technology in construction of gold and other mineral TSFs. The most obvious advances in cycloning,

“ The obvious advances in cycloning, are the vast increase in TSF stability and water recovery.�

270 | be directory

amongst others, are the vast increase in TSF stability and water recovery.

The recent development in TSF vacuum cycloning has been a breakthrough in TSF construction and the patented system (SA Patent No. 2011/03614) has been accepted and implemented widely by the mining industry.

Cyclone Engineering Projects (Pty) Ltd (CEP), an accredited BBBEE company, was founded during 2007 on demand by the mining industry to operate and manage cycloned and other TSFs, based on the ongoing developments in the cycloning field.

The field of expertise, apart from cycloning, has been expanded into spigot TSF and paddock TSF construction and the full range of TSF construction/management is now covered. Hydraulic monitoring of old

CYCLONE PROJECTS & CONSULTINg

TSFs forms part of the package and highly skilled employees form part of the success in the mining process.

CEP introduced the mine/contractor partnership in the construction of new TSF civil works and our first project was successfully commissioned during September 2012, saving the client approximately 45 percent on budget!

More of these kinds of construction ventures are already in the pipeline for 2013.

Both companies’ client base includes: • AngloGold Ashanti (South Africa • Region Tailings, West Africa • Tailings & East Africa Tailings) • Debswana Diamond • Company (Botswana)

• Okorusu Fluorspar (Namibia) • Kenya Fluorspar (Kenya) • Langer Heinrich (Namibia) • Xstrata Rhovan Alloys • Evraz Vametco Alloys • Copper Eagle Burnstone Mine All major consulting engineering companies.

CYCLONE PROJECTS & CONSULTING cc P O BOX 22000, Helderkruin 1733 Republic of South Africa T +27 (11) 662 2916 E info@cyclones.zo.za www.cyclones.co.za

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unrivalled service

With our broad product support infrastructure and unmatched service capabilities, we are an industry leader in helping customers maximize their equipment uptime

F

inning International Inc. is the world’s largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933.

Finning sells, rents and provides parts and service for equipment and engines to customers in various industries, including mining, construction, power systems, petroleum, and forestry.

Finning delivers solutions that

“ Finning delivers solutions that enable customers to achieve the lowest owning and operating costs while maximizing equipment uptime” 272 | be directory

enable customers to achieve the lowest owning and operating costs while maximizing equipment uptime.

Headquartered in Vancouver, British Columbia, Finning operates in Western Canada (Alberta, British Columbia, the Northwest Territories and Yukon), South America (Chile, Argentina, Bolivia and Uruguay), as well as the United Kingdom and Ireland.

“Finning has reached an exciting stage in its development as an organization. We have a strong tradition of success and a rich legacy of providing great service for our customers.

Building on this foundation and fueled by our strategy, our partnership with Caterpillar and our people, we are delivering on our commitment to sustainable and profitable growth.

The future that I envision for Finning is: • A company distinguished by its

finning

high-performance culture; • A solutions-driven company that offers truly differentiated services to customers and earns their loyalty; • A n organization that achieves on-going success through reinvestment in the business.

Finning´s President and CEO

finning Av. Los Jardines 924.

Ciudad Empresarial Huechuraba, Santiago Chile T 56-2-927-7000 www.finning.com

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Hays Resources & Mining Hays is the expert in recruiting for the resources and mining industry and our network of consultants in Perth and across Australia and New Zealand recruit for the entire lifecycle, from exploration, project development and construction to production and maintenance.

W

ith more than 10 years recruiting in the technical sector, Hays Resources & Mining in Australia and New Zealand was launched in 2000. It is now one of the fastest growing business units in the company.

Our recruiting experts continually build upon our database of resources and mining candidates, which is one of the most extensive in the region and we ensure a fast and accurate response to your needs.

Each year, we source about 10,000 candidates for permanent and

“ Hays is the leading global specialist recruiting company�

274 | be directory

temporary roles across a broad range of skills and experience.

Our global reach Hays Resources & Mining operates as a network that transcends national boundaries and regional differences.

Our many offices worldwide support our Resources & Mining sector hubs, providing global reach as well as local expertise to ensure a personalised service tailored specifically to meet your recruitment needs.

Hays is the leading global specialist recruiting company, employing more than 7,800 staff in 33 countries across 20 specialty areas. We are the experts at recruiting qualified, professional and skilled people worldwide, being the market leader Australia and in the UK and one of the market leaders in Continental Europe and the Americas.

Hays Recruitment

As a global business, we can meet the needs of our multinational clients.

But the core of our business is being the recognised local expert in each of our markets and industries.

Our Service Our recruiting experts work within one of our two divisions: permanent hire or contract recruitment services, and as such their methodologies, skills and resources are specific and dedicated to their service offering.

Your global recruitment partner Hays Resources & Mining boasts a number of key benefits including: • The backing of a global market leader with infrastructure, management and training • A worldwide network of offices with

specialist hubs focused on resources and mining • Dedicated global management and systems • Permanent and contract supply and managed services with respective methodologies • A market leading brand presence supported by a dedicated in-house resource.

Hays Resources & Mining Western Australia Perth T: 08 9226 5766 E: rm.perth@hays.com.au

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A ‘can do’ company

A One-Stop-Shop for crusher spares, belting, materials handling, consultancy and advice

M

ES International Ltd is a long established supplier of products and services to the mining, quarrying and recycling industries. We have built our reputation as a “can do” supplier, available 24/7 to respond to breakdowns and urgent requirements with the highest level of service. MES International truly is a “one stop shop” for your operating needs. We supply the highest quality precision engineered crusher spares for Primary, Secondary and Tertiary machines including Symons Nordberg,

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HP and MP series, Svedala, Omnicone, Telsmith, Sandvik, Allis Chalmers, Terex Cedarapids and Parkers. Our high quality impact and abrasion resistant conveyor belting is available in a range of widths and strengths to meet your requirements and with a 24 hour breakdown response, we are always here when you need us. We supply a durable range of vulcanising presses, along with splice kits and equipment for in-house vulcanising teams. With our own teams of highly qualified and experienced vulcanisers, we can undertake all hot & cold joints, maintenance and training etc.

We manufacture Material Handling Systems including Design, Installation & Commissioning, from overland conveyor structures to waterside loading systems.

We also design, re-design, maintain and supply conveyor struture and radial stacker systems, along with drums, rollers and take-up units through our Engineering Services, who can also

MES International Ltd

provide strip down and re-build services for crushers on scheduled shutdowns or assist with emergency breakdowns.

Our Consultancy & Advisory Service can assist with planning a new mine or extending an existing site, our skilled engineers can provide you with advice on any aspect of your project.

Our revolutionary patented Stone Powered Electricity system is an environmentally friendly way of generating FREE electricity from your falling stone, the same way water is used in a hydro electric plant. This electricity can be used for lighting walkways or fed/sold back into the grid and eliminates the need for intricate chute

designs, dead boxes and liners/deflectors that can drop out and cause damage to belts. The slowing benefits of vibratory feeders is mirrored by the SPE system, which also generates electricity! To discuss how much free electricity your conveyors can generate, please contact us.

MES International Ltd Bruntingthorpe, UK. T +44 116 247 8342 MES International Zambia Ltd Kitwe, Zambia.

Cell: +260 977 778 487 www.mesinternational.co.uk

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lifetime care Normet provides advanced solutions for selected customer processes in underground mining and tunnelling

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e have 50 years of experience in the development, production and sales of equipment and vehicles for underground mining and tunnel construction. In addition, we provide construction chemicals for these industries and comprehensive range of life time care services for maintenance and operating processes throughout the entire lifecycle of our products. With over 8000 delivered machines we have become one of the market leaders in our product segments.

“ Our business vision is focused on fulfilling our customers’ needs by exceeding their expectations” 278 | be directory

We at Normet believe that our success comes especially from customer satisfaction. Our business vision is focused on fulfilling our customers’ needs by exceeding their expectations.

Partner networking, product quality, environmental issues and safety are main priorities for Normet.

Our key mission is to improve the health and safety of underground workers by mechanizing and automating the most hazardous and demanding stages of underground mining and tunnelling, while increasing the productivity and efficiency of customers’ processes by optimizing them to save time and money.

Our offering consists of solutions for the following underground customer processes: • Concrete Spraying and Transport • Explosive Charging • Lifting and Installations • Underground Logistics • Scaling

Normet

Our company’s head office with Group and R&D functions is located in Iisalmi, Finland, and manufacturing is done in Iisalmi, Santiago de Chile and Ludvika, Sweden. In order to react better and faster to changes in our customers’ environments and needs we have established a distribution and service network with headquarter in Switzerland and sales and support facilities in 36 own locations in 22 countries around the globe. Normet employs over 900 business professionals. Normet Group’s turnover in 2011 totalled EUR 170 million.

Normet’s quality system has been certified to conform to the ISO 9001 standard. In addition we have ISO 14001:2004 Environment certification and OHSAS 18001:2007 Safety certification.

Normet Normet International Ltd Rothusstrasse 21 CH-6331 Hunenberg Switzerland T +41 41 768 5205 www.normet.com

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grinding media

The Sino Grinding Group has been designing its specialist grinding media since 2004

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here was clearly a need for a new player in the global market. After so many years of almost no product improvement by the global media suppliers there were plenty of opportunities to update the manufacturing technologies and take the industry to a higher level.

Any new ball designer must produce a better product to sell any quantity whereas; an established designer, with an improved ball, will actually sell less quantity. Therefore, it is logical to note that it is not in the interests of an

established maker of grinding media to improve their product for reduced wear rates.

Sino Group has now had ongoing growth in its first decade of operation.

This has been attributed to savings made by the customers who have given SINO the opportunity to showcase the new product range of the specialized products.

The Sino customers have enjoyed the lower wear rates but have also found that their efficiencies throughout their processing plants have improved with guaranteed low breakage and higher

“ The Sino customers have enjoyed the lower wear rates but have also found that their efficiencies throughout their processing plants have improved with guaranteed low breakage and higher throughputs�

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sino grinding international

throughputs. Sino offers a range of seven (7) different designs which have been specifically tuned for the wide range of milling environments and these designs target operational priorities set by our customers. Each grade is able to be further adjusted for even finer tuning as indicated trending improves our collected data.

Sino Grinding African Office Tel No: +27 (0)11 024 3630 Fax No: +27 (0)86 531 9661 Mobile: +27 (0)83 300 8648 Email: Pieter@sinogrinding.com.au

pieter@quicksa.com www.sinogrinding.com

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One network.

A world of solutions.

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

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

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

“ Univar has grown into a global chemical distributor” 282 | be directory

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

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

Univar Mining

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

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

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

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

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Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains.

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

To find out how to get involved contact: vincent@bus-ex.com