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MONTHLY EDITION

True North Gems

The Mine her ancient Ruby yields An exciting gemstone project which promises to be the first fruit of Greenland’s new mining era

The founders dilemma

Climbing back to the summit

How to deal with spam email

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contents

8 strategy

Elephants, small worlds & generalizations

How attention to details in the quality of your customer’s experience, that are often overlooked, has a positive bottom-line payoff.

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Leadership

The founder’s dilemma

There comes a time in an entrepreneur’s business life when they need to step aside and bring in experienced management to handle ‘day to day’ life in order for the business to develop.

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Construction

Debunking a male-dominated construction industry

Times are changing in South Africa: there is a belief that many people will be surprised by how much the construction industry has changed its view on female employees.

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top ten

Top 10 things not to say in an interview

We learn the ten most common interview sins and offer some advice on how to avoid them.

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technology

How to deal with spam email

Spam emails offering everything from Russian brides to half of Nigeriaâ&#x20AC;&#x2122;s GDP are the scourge of every office workerâ&#x20AC;&#x2122;s life, here are seven top tips on how to rid your mailbox of pointless emails, and how to tell when they really are a scam.

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contents

Business of the month

28 True North Gems

The Mine her ancient Ruby yields An exciting gemstone project promises to be the first fruit of Greenland’s new mining era: we spoke to True North Gems’ enthusiastic President and CEO about building a new industry.

mining & minerals

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The BANK of Greenland

A small bank with big influence The bank is without comparison the strongest local collaborator to help you with financing and assistance concerning day-to-day operations.

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Lomiko Metals

The gateway to greener technology Lomiko’s success with graphene has seen the company become a catalyst for the growth of some of today’s most exciting technological advances.

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H. J. O’Connell Ltd. (HJOC)

Proof that hard work pays off Continuing to lead the way when it comes to heavy civil infrastructure construction, mining applications and energy development.

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Africa’s copper bottom Palabora Mining is preparing for an ambitions expansion programme to maintain production for another decade.

Goldcorp Éléonore Mine Well ahead in the final furlong Goldcorp’s Éléonore project in northern Quebec is a copybook example of how to develop a new mine in a sensitive environment by pulling together best practice in every aspect.

infrastructure

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Meglab

Dedicated to development The growth of the business over the last 18 months and the important strides it expects to make in 2014.

Poswa Incorporated

Creating unbounded potential A progressive, wholly black-owned law firm, focused on delivering tailor made legal solutions designed to broaden its clients’ business horizons.

Optimising operations For the past two decades Meglab has been providing leading edge solutions, services and products to the mining industry, and boasts a track record that speaks for itself.

Copper Fox Metals

Palabora Mining Limited

food & drink

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Seed Co Tanzania

Abundance from African soil Africa’s biggest seed company is establishing a presence in Tanzania that promises a more prosperous future for small scale farmers.

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Elephants, small worlds & generalizations How attention to details in the quality of your customerâ&#x20AC;&#x2122;s experience, that are often overlooked, has a positive bottom-line payoff Words by

George F. Brown, Jr.

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he Winter Members’ Meeting of the Institute for the Study of Business Markets focused on the theme of “customer experience”. Leading academics, business researchers, and practitioners from best practice companies provided what I found to be clear evidence that attention to the many factors that determine the quality of your customer’s experience with your firm has a positive bottom-line payoff. It was remarkable how often customer loyalty and purchase decisions were influenced by “little things” that are often overlooked.

In a subsequent discussion with an executive who also attended that meeting, he remarked that he too had found the presentations compelling, but that he had gotten little traction when he tried to gain support for actions that might yield improvements in the experiences of his own firm’s customers. His summary was that “we are still too much an engineering firm, driven by metrics, and anything that seems ‘soft’ to the executive team just doesn’t make the grade”. He noted that it was easy to sell an energy efficiency initiative or a new make-vs.-buy recommendation as long as the numbers supported the decision, but that anything that required what was “an act of faith” just wouldn’t fly.

I don’t think his experience is in any way unique across manufacturing firms.

“I found three pieces of evidence that, while not making the case on a bottomline basis, provide explicit evidence that customer experience matters”

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He asked if in my own experience I had any ideas about how to translate discussions about customer experience from “soft” to “hard”. As I reflected on that request and did some research, I found three pieces of evidence that, while not making the case on a bottom-line basis, provide explicit evidence that customer experience matters.

Elephant-Like Memories We have all heard variations on the phase “elephants never forget”, and the same fact seems to apply to customers. Over the course of many projects, I’ve had the opportunity to interview executives in the firms served by my clients. Often, in the course of those discussions, I ask these individuals to share a “success story” and also a “horror story” involving a supplier with which they had dealings. Most often, those stories did not involve the company for which I was working, but the character of those stories often provided insights as to what was important to the customer.

I went back and reviewed over a hundred of the horror stories I’ve heard in recent rounds of interviews.

These interviews spanned multiple m a n uf a c turing and distrib ution industries, involved both large and smaller firms, and represented a fair spread in terms of geographic location.

What was remarkable was that almost a third of these horror stories involved an incident that had happened more than three years prior to the interview. Six of them had happened ten or more years prior to when it was cited in the interview.

Elephant-like memories abound in most companies, and it is foolhardy to think that a bad customer experience will soon be forgotten. The opposite is true. It is likely to haunt your firm for a long time to come. And the two findings that follow compound the problem!

strategy

It’s a Small World After All Many years ago, my wife and I took our children on what we determined after the fact was a “too early” trip to Disney World. They were just too young to enjoy it, and the week turned into the vacation to hell. Our young daughter was terrified by most rides, and I spent more time that I can imagine on the “Small World” ride.

After that experience, I hoped to never again hear that phrase, but I find it the best summary of the second finding as I looked back on what customers had to say about their suppliers in the interviews that I’ve conducted.

I’ve frequently heard interview comments like “I understand your client is missing quality targets in Brazil, and I’m worried that will spread to impact on us in Detroit” and “What you need to tell your client is that until they solve the shortage problem in India, we’re going to be very cautious about expanding the relationship here in North America”. In many of these instances, the reaction of my client has been something like “I’ve never heard of quality problems in Brazil” or even “I didn’t know we had anything going with [that customer] in India”. Often, it is a fact that the customer has a better world view of the relationship with a supplier than the supplier has of the relationship with that customer. And, like the elephant-like memories that don’t forget a long-ago incident, news about a customer experience seems to travel the globe quite well.

There is another dimension to the “small world” phenomena. Many of our industries are compact, and there is quite a bit of mobility of the professionals that work in them, especially in recent years as economic conditions created high levels of turnover. A substantial number of the

“Often, it is a fact that the customer has a better world view of the relationship with a supplier than the supplier has of the relationship with that customer”

horror stories that I’ve heard began with “When I worked at [name of another firm in the industry], …”. Customer experiences quickly cross company boundaries, and become part of the folklore in other firms in the industry.

Especially for the individuals that experienced a problem that impacted on their own performance, a bad memory remains vivid even after they’ve moved into another position in another firm.

“Fool me twice, shame on me” is for many people the reason why it’s a small world, after all.

Generalizations Unique experiences stand out, and often dominate the day-to-day experiences that

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are routine and unremarkable. One case example illustrates that. In an interview with a customer of a packaging firm for which I was working, I heard the following story: “We had a critical order coming in, and the truck arrived at our loading dock. After it was positioned, we opened the doors, and a couple of mice ran out.

Other than that, the truck was empty.

Those [expletives deleted] at [supplier] had never loaded the truck, and sent it over a thousand miles with nothing in it.”

It turned out that this was one of the horror stories that I heard that was over ten years old when it was recounted, and I learned that in the seven most recent years, my client had met or exceeded the on-time full-delivery standards set by this customer organization. But in my interview, the interviewee that told the empty-truck story later offered the following: “My advice to your client – put some focus on logistics, to make sure that when an order is placed, it actually gets delivered”.

One very extreme, and very old, experience had shaped the perspective of this customer.

strategy

I know that all generalizations are false, but my review of these interviews suggests that many customers are willing to generalize from a bad experience and use it to characterize a supplier, fairly or not. And combined with elephantlike memories and small world realities, the message to suppliers is clearly one that motivates constant attention to the details that ensure high-quality customer experiences all of the time.

The Rest Side of the Story Paul Harvey newscasts often included a feature called “The Rest of the Story” in which he provided a story that lead in one direction until the rest of the story was told. My examples in this paper require the rest of the story as well.

I have focused in the paragraphs above on what I heard in response to a request for a “horror story”, using those case studies to illustrate the impact that bad customer experiences can have on a supplier’s relationship with a customer and even within an industry.

But for every “horror story” that I’ve heard, I’ve heard far more “success stories”, incidents in which a supplier exceeded a customer’s expectations and made an important contribution to that customer’s success.

“everything said about ‘horror stories’ applies to those ‘success stories’”

And everything that I’ve said about “horror stories” applies to those “success stories”. They are long remembered, they are widely shared within the firm and outside the firm’s walls, and they are often used as the basis from which to make generalizations about the supplier.

So those firms that are successful in delivering positive customer experiences are rewarded for doing so, at least in the characterizations that their customers use to describe them.

Quantifying the bottom-line impact of customer characterizations of their suppliers, positive or negative, remains a challenge. But there is no doubt that the everyday experiences of your customers shape their perspectives, that customer memories are long, that those perspectives are widely shared, and that a single notable experience is often the one that defines the way in which a customer organization thinks about a supplier.

About the author

George F. Brown, Jr George consults with industrial firms on growth strategy through his firm B-to-B Advisors, Inc. He is the coauthor of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs and the cofounder of and a Senior Advisor to Blue Canyon Partners, Inc., which he served as CEO for fifteen years. George has published frequently on topics relating to strategy in business markets, including articles in Industry Week, Industrial Distribution, Chief Executive, Business Excellence, Employment Relations Today, iP Frontline, Industrial Engineer, Industry Today, and many others. gfb@BtoBAdvisors.com

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The founder’s dilemma There comes a time in an entrepreneur’s business life when they need to step aside and bring in experienced management to handle ‘day to day’ life in order for the business to develop Words by

David Dumeresque

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usiness leaders strive to achieve a consistent growth in their business and entrepreneurs may find that there comes a time in their business life where their enthusiasm and ambition need to be bolstered by the infusion of the hard headed realism which experienced management talent brings.

The 23 year old founder of a business we advise is far sighted enough to recognise that he needs to invest in a strong CFO and COO, who will handle the “day to day” in which he acknowledges he is less interested. This allows him “time to think” as he continues to achieve his staggering initial growth. However, such foresight is rare and often the fear of increasing overheads mitigates against such a hire.

Yet deciding when to bring in professional management is something which should be addressed at the earliest possible stage in a company’s development. It is a fundamental process which unfortunately frequently gets swept aside in the first years of growth.

What occurs then is a situation whereby the founder struggles to relinquish what has effectively become their life. The emotional investment, irrespective of whether the company is an SME or a large plc, often gives the founder a sense that no one knows the business better than they do. While it may be true that they have a wealth of embedded knowledge, that does not mean that they are indispensable nor that they are best placed to take the company to the next stage of its

development. Equally, they may still have a fundamental role to play in the evolution of the company but such a role is almost bound to be different to that which they previously undertook.

Generally speaking, by nature entrepreneurs are bored by the day to day management of a business. Their strengths lie in innovating and being creative thinkers. However, entrepreneurs often migrate into a management role as the business grows, failing to realise that this does not play to their strengths and can be holding back the development of the business.

Some experts suggest that company founders should not only know their limitations, but when the time comes to handing over the reins they need to do so completely, without interference.

However, that does not necessarily mean that they have to abandon the business entirely. Entrepreneurs such as James Dyson have successfully handed over the “management” reins, allowing others to take over the day to day roles while retaining a pivotal role in the development of the organisation.

It can be extremely difficult for founders to step aside from a business. As the business grows, even the most brilliant business mind will need the support of a solid managerial team to maximise growth potential.

There are a number of ways to address this problem:

“deciding when to bring in professional management is something which should be addressed at the earliest possible stage in a company’s development”

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leadership

“Founders need to be aware from the outset that the challenges they face at start-up will change as they grow, requiring them to make difficult choices”

• Founders need to be aware from the outset that the challenges they face at start-up will change as they grow, requiring them to make difficult choices. They need to prepare for this at the earliest possible opportunity and decide how their attributes can be best deployed at each stage in the company’s development. Be prepared to recruit people who will challenge them and not be “yes men”.

• They need to be cognisant of their motivations, strengths and weaknesses and how these will impact on the development of their company. They need to identify how their strengths can be enhanced and their weaknesses alleviated.

• They should fully understand the benefits of management succession planning soon after the business is off the ground.

As with our young client, this is when they

need to start putting in place the right management talent to allow the business to achieve its maximum potential.

• U nderstanding the mechanics of garnering an experienced management team that support a new business venture and can optimise their business accordingly is key to an organisation’s successful growth.

Without doubt there are plenty of examples of successful entrepreneurs who have stayed with the company through many stages of growth (from Jeff Bezos at Amazon to Akai Morita at Sony), yet they have all surrounded themselves with a strong, independently minded management team who can debate robustly and enhance the founder’s vision.

However, such foresight is not always easy for those who have put their heart and soul into the development of a business.

About the author

David Dumeresque David recruits senior executives and board directors for Information, Communications and Entertainment organisations across publishing, broadcast, digital media, as well as leading the firm’s Professional Services practice and acting on behalf of more general consumer products companies. He also has advised a wide spectrum of professional services firm on senior lateral hires, including lawyers, accountants, consultants and real estate professionals. www.tyzackpartners.com

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Debunking a male-dominated construction industry Times are changing in South Africa: there is a belief that many people will be surprised by how much the construction industry has changed its view on female employees Words by

Zimkhitha Zatu

construction

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imkhitha Zatu (30), who holds a responsible managerial position in the finance department of South Africa’s largest cement manufacturer, believes that women who enter the construction industry should keep an eye out for male counterparts willing to become mentors. “You will be surprised by the number of male employees who are always willing to mentor their female colleagues and help them to make a success of themselves in this hard industry,” says Zatu.

Zatu believes that it is normal for women to get the impression that they have to work harder than men in some industries to become noticed. “This is not necessarily a bad thing, as this will help women throughout their career and help them achieve great things, both at home and at work,” said Zatu. Having joined the cement giant PPC two years ago, Zatu regards the company’s CFO Tryphosa Ramano as one of her greatest mentors. “I have been lucky in my career to have had fantastic mentors who have been immensely supportive of me and my endeavours throughout the years. I’ve had to work hard in my career to have accomplished what I have and at PPC, Ramano has been instrumental in me taking that one step further in my abilities,” said Zatu.

Zatu has had to work hard and persevere to make a success out of her career. She matriculated in the Eastern Cape at Kingsridge High School for Girls and went on to receive her Bachelor of Commerce Degree in Accounting at Wits University, before obtaining her Higher Diploma in Accounting, also at Wits.

Before joining PPC, she spent four years at the Industrial Development Corporation (IDC), where she discovered her passion for helping better the lives of people by financing infrastructure products and three years prior to that she did her articles at KPMG. “It was at IDC’s steel division where I worked that I came to realise that I didn’t just want to finance projects, but more so those that will change the lives of people. I wanted to be part of an organisation

that was on the ground, looking to make a difference in the lives of the communities in which it operates. This remained my motivation until an opportunity to joined PPC came my way. I regard this cement company as a leader in the industry and its ethos to change the lives of people for the better was aligned to my vision,” Zatu affirms.

She is adamant that in order for anyone, regardless of their gender, to be a success in their career they need a strong support base.

“You even need support from your children! I have a seven year old daughter, and even at her young age she understands why I have to go to work every morning and sometimes come home late.” On juggling family life and the fast-paced world of corporate finance, Zatu said that you have to put quality over quantity.

“Over the weekends I make a point of spending time with my daughter, I always try to do fun things with her. For a woman, it can be very hard, as you have responsibilities both at work and at home. The trick is not to lose sight of the bigger picture and always remember why you are where you are.”

Her long-term goal is to become a business owner. “I would like to run my own business one day. I’m not yet sure what type of business yet, but it must have a strong foundation and be a catalyst for changing people’s lives for the better. However, I still enjoy my life here at PPC so this dream will only be many years down the line, and who knows, maybe PPC will be involved,” said Zatu.

About the author

Zimkhitha Zatu Zimkhitha is an Executive Manager in the office of Tryphosa Ramano CFO of PPC, the leading supplier of cement and related products in southern Africa. www.ppc.co.za

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Top 10 things not to say in an interview We learn the ten most common interview sins and offer some advice on how to avoid them Words by

Chris Meredith

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e all know that the job market can be tough and competitive, so setting yourself apart from the crowd is vital.

Once you’ve got past the first hurdle of being invited for interview, the second is getting through it without saying something you’ll live to regret.

Here are ten things you sould definately avoid saying during an interview.

1. “I’m too much of a perfectionist” When asked the inevitable question about your weak points, try to avoid the obvious answer and be honest. Always be prepared to share some weaknesses, but make sure the quality you chose is not central to the job.

Finding a weakness from your past that you have worked towards improving can be an effective strategy. Come up with this trait as part of your interview preparation so that you won’t be left speechless.

2. “My old boss was an idiot” Never speak badly of your previous employer. Not only is it unprofessional, but it will also reflect poorly on you. This sort of phrase will give off the wrong impression and lead interviewers to think you’re difficult to manage.

If asked why you’re leaving your current position, focus on your ambitions, how this job will help you get to where

“Never speak badly of your previous employer.

Not only is it unprofessional, but it will also reflect poorly on you”

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you need to be, and what elements of the job excite you.

3. “Where do I see myself in five years? In your job.”

Don’t be overly cocky and threaten your interviewer by telling them you’re after their job, it won’t go down well. Displaying confidence is a good thing, but being cocky will get you nowhere.

Expressing a little ambition is important, so be truthful and again, pre plan your answer as part of your preparation. Try to pre-empt some of the questions you make be asked and have an answer ready. That way you can be confident without being cocky.

4. “You look great” Never say anything that could be taken as flirtatious, even if you’re just being nice.

It could send off the wrong impression to your future employer.

It’s important you build up a positive relationship with your interviewer, but avoid complimenting them as it could make the situation awkward. Doing your research into the company and the job role you’re going for is a much better way of getting your foot in the door and a great way to show you understand and are interested in the business.

5. “Sorry I’m late” Never be late to your interview, as punctuality is a key trait employers will look for. Interviewers will formulate a first impression as soon as you walk through the door, so it is important to start on the right foot, and being early and prepared is one of the easiest to achieve.

top ten

Make sure you know where you’re going for your interview and plan plenty of time to arrive so you know you won’t be late.

6. “I don’t know” Researching prior to your interview is imperative so make sure you do your homework so that you can answer any question the interviewer might throw at you.

Even if you research everything there is to know about the company there could still be a question that you don’t know the answer to, so make sure you’re prepared for all eventualities. Don’t bluff and lie, but avoid wimping out by relating the question back to your comfort zone, your abilities and what you can do for the company.

7. “I don’t have any questions” You need to show prospective employers that you are keen to get yourself a job at their company, and so it’s imperative you do your research. Make sure the interview is not one sided and show some interest in your potential future role by asking about personal development at the company.

8. “How much holiday do I get?”

Whilst a job interview is a chance for you to decide whether you would potentially like to work at the company you’re interviewing at, asking how much holiday you get is a question you should save for after you’ve been offered the job, along with how much do I get paid and what is your sickness policy.

Employers are looking for a candidate that is motivated and willing to put

“Make sure the interview is not one sided and show some interest in your potential future role”

the necessary effort in, not someone who is just looking for an easy life.

9. “I’ll just take this call” It is surprising how many people think that taking a call or replying to texts during an interview situation are appropriate. The employer wants to know you are going to be dedicated to your new role – not dedicated to your social media.

Turning your phone off once you get to the interview will abolish all temptation to check your texts or twitter updates.

10. “I thought you already had a copy” Make sure you take your CV and any other information you have been given regarding the interview with you. Don’t just assume that your interviewer will have a copy, and show your initiative and organisation skills by being prepared.

About the author Founded in 2001 by Jim Venables & Andy Haywood, the officebroker.com story began after the one time recruitment specialists switched from filling job vacancies to empty offices. Drawing upon their experience of working closely with clients and satisfying requirements, they soon began to offer a unique service to businesses seeking office space. www.officebroker.com

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How to d

Spam emails offering everythi of Nigeriaâ&#x20AC;&#x2122;s GDP are the scour here are seven top tips on how emails, and how to tell wh Words by

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Al

deal with

ing from Russian brides to half rge of every office workerâ&#x20AC;&#x2122;s life, to rid your mailbox of pointless hen they really are a scam

lec Ryan

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pam emails can not only be annoying, but can also waste huge amounts of professional time and therefore incur massive costs for businesses.

As scammers become more sophisticated their emails are becoming more realistic, and it’s becoming increasingly difficult to discern these con artists from genuine emails. However, by following a few simple rules you can minimize the risks.

1. Hide your e-mail address from people you don’t know Listing your email address on a blog or social media page is another way in which spammers can pick up your address.

Spammers will usually look for a pattern within the email addresses, so try writing your email in a way which will fool them such as writing it in long form replacing the @ for at and the full stop for dot.

2. Don’t reply Resist the urge to get angry and don’t reply to any spam e-mails. Instead of having the desired effect and reducing your spam, replying to the e-mail lets the spammer know that your email account is active. You may therefore be subject to more spam rather than less.

If you can tell from the subject line that a message is spam, don’t open itdelete it or send it to your junk files.

Spam subject lines typically promise you something that is unrealistic, and use attention-grabbing punctuation such as exclamation marks or capitals.

3. Block don’t unsubscribe Try to avoid clicking on the link to unsubscribe to the e-mail, as this will confirm to the spammer that the e-mail has reached you. Set up a junk folder and send all spam there to avoid getting confused.

Clicking on the links on possible spam emails will also in some cases let the spammer know not only that your email address is valid, but also that you are likely to click on links, which could mean you are more likely to be targeting with more spam or phishing emails.

4. Manage junk effectively Most email providers have options to set up a spam filter, which will automatically catch obvious unsolicited commercial email messages and move them to your junk folder.

Once you have found an email which is obviously spam, it is also a good idea to add the email to a blocked senders list, which will mean that you will no longer receive emails from them.

5. Have a disposable email address There are lots of online services that require you to sign up using an email address, which can often lead to being on the receiving end of spam emails.

One way to get round this is to create a separate email account using a free service such as Gmail or Yahoo! that you can then use to sign up with without having your permanent email account held to ransom.

“Try to avoid clicking on the link to unsubscribe to the e-mail, as this will confirm to the spammer that the e-mail has reached you”

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technology

“One problem can be knowing whether the spam you’ve received is legitimate or not”

6. Watch out for checkboxes When you sign up for something on the web, there is often some innocent looking text with a tick box asking if you would like to be contacted by third parties.

Quite often these boxes are already ticked, but if you leave them like that it gives the company free rein to pass on your details to other companies, which then may be used to send spam.

7. If it sounds to good to be true, it probably is One problem can be knowing whether the spam you’ve received is legitimate or not.

Recently these spam e-mails have begun to sound more and more legitimate,

and it has reached a stage where the only thing that a layman would notice is the fact the language used isn’t native English.

Our advice is to always ignore emails like this, as if they sound too good to be true they probably are, and never work with a company unless you are 100 percent certain that they are reputable by doing your research first.

About the author

Alec Ryan A representative from. www.londonoffices.com

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The Mine her ancient Ruby yields True North Gems An exciting gemstone project promises to be the first fruit of Greenland’s new mining era: we spoke to True North Gems’ enthusiastic President and CEO about building a new industry words by

John O’Hanlon

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Nick Houghton, President and CEO, holding a sample at Qaqat Aqulerit

he finest rubies are rarer and more valuable than diamonds and for many the icy brilliance of the latter is no match for the colour, warmth and romance of the former. Their prices are on the rise too: the record of just under $275,000 per carat set in 2005 has since risen to over $550,000. The worldâ&#x20AC;&#x2122;s richest source of fine rubies, Burma, is still under an embargo and the market

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is hungry for gemstones of that quality, particularly if they can be certified ethical.

In that context, True North Gemsâ&#x20AC;&#x2122; Aappaluttoq Ruby Project is coming on stream at just the right time for the ruby market, which is worth $2.1 billion annually. Basically, ruby is a form of aluminium oxide (Al2O3), or corundum, which at nine on the Mohs scale sits just one place lower than the hardest element

True North Gems

“Once the mine life is completed and the area reclaimed it will just look like a glacial lake again”

diamond. Demand today, says Nick Houghton, President and CEO at True North Gems, who has lived and breathed gemstones since he started work in 1974, is almost entirely from the jewellery trade: “There are some industrial uses for corundum but the main one, as an abrasive, is nowadays satisfied by synthetic material.”

The Aappaluttoq Ruby Project, presently 100 percent owned by True North Gems is

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Rough surface showing at Qaqat Aqulerit

a unique opportunity for the world market to source first quality traceable gemstones that satisfy their customers’ growing demand for jewels that are free from any taint of conflict or human exploitation. Both ruby and pink sapphire (red and pink varieties of corundum), are found here. Multi crystalline stones weighing more than 80 grammes (400 carats) have been found.

Located on the south-west coast of Greenland, about 160 kilometres south of the capital Nuuk, the site is accessible all year round, and just four kilometres from open water. The mine is now fully permitted since the local authority, the Municipality of Sermersooq and City Council, approved its Impact Benefit Agreement in June (IBA). In Greenland an IBA, essential for every prospective mine, is no formality – it testifies to the need to develop the project in a sustainable manner, with jobs, training opportunities and economic benefit to the local community, Houghton emphasises. “We were able to show that everything is in place.

The IBA was a huge achievement – it is a partnership between us and the communities and the people of Greenland.”

That was just the latest in a string of achievements this year for the company.

In March it was granted a 30-year mining licence, or exploitation licence, paving the way to mine construction, which True North Gems is looking to commence later this year. Nick Houghton gives full credit to the Greenlandic authorities, in particular the Ministry of Industry and Mineral Resources and the Mineral Licensing and Safety Authority (MLSA,

“The IBA was a huge achievement – it is a partnership between us and the communities and the people of Greenland”

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True North Gems

Rough Ruby and Pink Sapphire liberated from host

formerly BMP) in smoothing the partner LNS Greenland who Did you know? path to this vital milestone: “We will earn a project share of 20 percent by doing so, an are working in a country that experienced company that recognises that you need to be 30 years combines Greenlandic and able to plan long term. That long Duration of TNGs’ Norwegian expertise. “Impact term thinking on the part of the mining licence will be minimal. This is a simple government is essential to the open pit: Once the mine life success of any mining operation: 100 is completed and the area you have to be able to work with Personnel reclaimed it will just look like a the government as well as the employed at full glacial lake again, with no visual local people.” production sign it was ever there. There will The exploitation be reclamation of roads and the agreement was followed by camp, of course but minimal the operating licence and invasive action. There’s no massive road rigorous environmental and social impact programme, no blasting through rock.” assessments. Greenland may seem a Though it’s a rich deposit, it is a bit of a relatively sparse country, both in terms of myth that one can pick up rubies from the population and vegetation, but that is part surface. “The ore body runs like a spine of the reason it is determined to develop through the middle of the mine,” he explains. its resources with minimal adverse impact “The reason you can find anything at all on on either, Houghton insists. The open pit the surface is that there is no overburden mine and its infrastructure will be built as in Greenland. It is bare rock with only a few a turnkey operation by True North’s JV

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mosses and lichens to cover it. But you cannot pick much up because the material is locked in the host rock.” Unlike a mineral ore that can be crushed, this material is extracted almost surgically from the spine, in blocks that are broken down and go through an irritative crush system, which he describes as more of a ‘squeezing’ than a ‘pounding’ operation.

Once the gemstones have been liberated they are taken to the next stage of the process - dense media sorting (DMS) magnetic sorting (MS) and optical sorting. DMS and MS depend on the fact that the host rock is lighter and

the corundum will sink. Optical sorting is simple - the host rock is grey-black in colour, the corundum red and pink. At the end of the sorting stage gemstones go on for secondary cleaning and grading.

At full production the company will employ up to 100 people, the majority based at the mine site, the remainder at the administrative and downstream grading centre in Nuuk. For the time being True North has taken premises within the Bank of Greenland building, but hopes to later build its own secure premises in the city for processing the gemstones and

“We need builders, mechanics, electricians, chefs, and we help them acquire the more specialised skills”

Taking geological notes at the Aappaluttoq Deposit and Sarfaq Showing

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True North Gems

Bent Olsvig Jensen, Managing Director, at the Aappaluttoq Camp

setting up a training centre where local people will be taught the skills involved in grading, cleaning, selecting and packing the stones.

Mining may be a new industry, but Greenlanders are already well versed in many of the skills it needs says Houghton. “The Cummins and Iveco engines used in fishing boats are just the same as the ones we use in mining trucks. If you can work on the one you can work on the other. Electricians and mechanics in the local population can bring those skills – it is a matter of moving your existing skills to a different challenge! We need builders, mechanics, electricians, chefs, and we help them acquire the more specialised skills.”

His priority is now to complete the project’s capex requirements, though that task has been made considerably lighter by the JV agreement with LNS, which has brought in $23 million, or 60 percent of the money needed. He is trying to educate investors who, while they may be familiar with the landscape of mineral mining, where a resource is defined

in terms of ounces or pounds of defined value on the metal exchanges, may not appreciate the added complexity of gemstone mining where the product extracted can vary in value from two to two thousand dollars per carat. He would like them to look at the example of another listed gemstone company, Gemfields PLC, which has proved through the performance of its Zambia emerald deposit that when a company comes to market with a consistent supply of goods its share price can increase dramatically. Gemfields has doubled in the last year, and he is confident the same will happen with True North.

True North Gems

604.687.8055 info@truenorthgems.com @TrueNorthGems www.truenorthgems.com

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[ Greenland ] BE Monthly

A small bank with big Influence The BANK of Greenland According to international standards, The BANK of Greenland is a small bank. But in Greenland, the bank is unconditionally the largest bank. And if you want to operate in the Greenlandic mineral resources industry, the bank is without comparison the strongest local collaborator to help you with financing and assistance concerning day-to-day operations Words by

Ditte Vibe Petersen

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ith a total business volume of DKK 2.74 billion, The BANK of Greenland is only a small financial institution internationally. In Greenland, however, the bank is the largest bank and the only physically available full service bank. With a strong local mooring and more than 45 years of close cooperation with Greenlandic industries and public institutions, the bank takes the absolute lead as a partner for businesses in the Greenland mineral resources industry.

We know the decision-makers in Greenland. We know the people who explores. We know the people who are close to extraction. Last but not least we know all the enterprises that offer services to the mining companies. And of course our network of national and local partners benefits our customers, says Lars Gaasvig, Commercial Lending Manager at The BANK of Greenland. He continues: The BANK of Greenland is a modern bank with a European level on products, services and web bank. But what really makes us the preferred financial institution in Greenland is our thorough knowledge of the Greenlandic rules, businesses, financing matters and our understanding of the cultural conditions and local community. We reach our decisions locally, and we provide answers faster than most others, says Lars Gaasvig, Commercial Lending Manager.

W

“We know the decisionmakers in Greenland.

We know the people who explores. We know the people who are close to extraction”

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Managing Director Martin Kviesgaard © The Bank of Greenland

The BANK of Greenland

â&#x20AC;&#x153;Accessibility is an important parameter for the work carried out in the Business Department of The BANK of Greenland.

The department is known for its frequent customer visitsâ&#x20AC;?

Accessibility is an important parameter for the work carried out in the Business Department of The BANK of Greenland. The department is known for its frequent customer visits. And most recently the department has introduced a new service in the form of video meetings. The active effort made by the Business Department is acknowledged by its customers. Last time the Business Department was measured, customer satisfaction reached almost 78 percent. That is a customer satisfaction level that is several percentage points above the average level at Danish financial institutions.

National expertise and local mooring With six branches in Greenland, The BANK of Greenland is well represented. The headquarters is situated in the capital Nuuk, and this is also where Account Manager Carsten Bondersholt is working on a daily basis. The Account Manager has practical experience with mineral resources projects in all phases from when the first geologist goes out with his spade to the extraction phase itself.

In particular it is escrow accounts and current accounts that we provide to the mining industry today. Naturally we also provide most financial services for example financing

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of production, buildings and working plants, yield optimization of surplus available funds, cash management, guarantees and webbased solutions, says Carsten Bondersholt, Account Manager.

The most recent collaboration between The BANK of Greenland and the mineral resources sector in Greenland is the involvement in what is expected to become the very first ruby mine in the Arctic. The project is under management of the company True North Gems, and the bank is actively engaged with advice about the day-to-day operations and expects to provide a part of the financing.

Account Manager Carsten Bondersholt emphasises that the customers have a clear advantage in The BANK of Greenland being a multi-language enterprise that professionally provides service in English, Greenlandic and Danish. At the same time the bank has close relations with Europe on a par with other modern Scandinavian banks.

The BANK of Greenland also takes pride in being consistently represented at all courses, conferences and network arrangements about the mineral resources of Greenland.

At The BANK of Greenland we are first and foremost experts in networking - we are not yet definite experts in mining. We are gaining a lot more insight into the topic, however, because we believe the sector to be one of the important new industries in Greenland, says Carsten Bondersholt, Account Manager.

© Nuna Minerals

Strong financial performances The financial performances of The BANK of Greenland are sound. The quarterly and annual

“At The BANK of Greenland we are first and foremost experts in networking - we are not yet definite experts in mining”

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The BANK of Greenland

© True North Gems

DKK 55 per share distributed reports of recent years have Did you know? last year. In May 2014 The BANK shown record results, and the of Greenland was selected as annual report 2013 shows a good 78% the financial institution with result of DKK 124 million before Level customer the second best risk profile tax and a return on shareholders’ satisfaction in the Kingdom of Denmark. equity of 15.8 percent before tax. almost reached The survey was undertaken by In the wake of the global financial last time the Niro Invest, who examined 75 crisis it is worth noticing that The Business financial institutions’ key factors BANK of Greenland has come Department such as gearing, solvency ratio out strong and each year with was measured and core earnings on the basis sound profits. At the same time of annual reports.

Finanstilsynet (Danish Financial The BANK of Greenland has Supervisory Authority) has had for a large number of years no substantial remarks after been able to show a sound performance, ordinary visits to the bank where in particular and the reason for this is a stable business solvency is on the agenda. There is nothing development. If I am to point to the most surprising about that, if you take a look at the important reasons, I would point to our solvency ratio of The BANK of Greenland of physical presence with six branches, approximately 20 percent against a solvency competitive prices and our very active requirement of approximately 10 percent. endeavours at the coast of Greenland, says As an investment The BANK of Greenland Managing Director Martin Kviesgaard. share is also interesting with a dividend of

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Š Nuna Minerals

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The BANK of Greenland

Lars Gaasvig, Commercial Lending Manager (left) © The Bank of Greenland

“The bank concentrates its CSR activities on efforts that heighten the financial understanding in Greenland”

Active in Greenland community The active endeavours of The BANK of Greenland also include an increasing number of Corporate Social Responsibility projects.

In 2010 the bank co-founded the association CSR Greenland known for its price nominated environmental project Saligaatsoq. CSR Greenland continually plays a part in ensuring a continued dialogue among Greenlandic business and industries about social responsibility. Most recently the bank joined the UN Global Compact network that commits its members to reporting and making policies on the environment, anti-corruption and human rights among other things.

In particular, however, the bank concentrates its CSR activities on efforts that heighten the financial understanding in Greenland.

Examples are presentations at educational institutions and a new online platform “Qassit” about everyday finances targeted pupils in the primary and lower secondary schools.

You may also be fortunate to meet one of the bank’s 115 staff members engaged in corporate volunteering. In 2014 the bank has made more than 2,000 working hours available to staff to engage in voluntary social work for associations and projects in Greenland.

The BANK of Greenland

+299 70 1234 banken@banken.gl www.banken.gl

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Lomiko Metals

The gateway to greener technology Lomiko Metals’ goal was to become a supplier of speciality minerals for use in green technology. Its success with graphene has seen the company become a catalyst for the growth of some of today’s most exciting technological advances words by

John O’Hanlon

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Flake Graphite in host from Quatre Milles Property

he theory of graphene was itself first explored in 1947 by PR Wallace, work that is now widely recognised as the starting point behind the understanding of the electronic properties of 3D graphite.

A crystalline allotrope of carbon with twodimensional properties, high-quality graphene was a long sought after commodity due to its properties which make it strong, light and an excellent conductor of heat and electricity.

57 years after Wallace’s pioneering work, Andre Geim and Kostya Novoselov, both

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based at the University of Manchester in the UK, successfully extracted single-atom thick crystallites from bulk graphite, pulling graphene layers away from graphite using a micromechanical cleavage, or Scotch tape, technique. Geim and Novoselov’s efforts would see the pair go on to receive several awards, most notably the 2010 Nobel Prize in Physics.

Fast forward to 2014 and graphene is considered a “supply critical and strategic mineral” by the US and the EU, and can

Lomiko Metals

“Graphene is considered a ‘supply critical and strategic mineral’ in the US and EU, and can be found being used across the planet”

be found being used across the planet in order to achieve critical advances in various industries and technologies. Graphene is also very much seen today as a fundamental ingredient in the recipe that many hope will soon help spur on the development of a greener economy. Multi-national companies such as Samsung and Imerys have been secretly researching new techniques to manufacture graphene and have recently announced new developments that include flexible television screens.

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A Paul Gill, President and Chief Executive Officer

One company that supports this vision is Lomiko Metals, a British Columbia based business that came into being with the desire to become a supplier of speciality minerals.

“We designed our ‘electric minerals’ focus to search for opportunities in lithium, copper, tin, silver, cobalt and graphite, each of which possesses specific applications that are vital for the development of new technologies including electric vehicles which use these materials,” explains President and Chief Executive Officer, A Paul Gill.

Lomiko’s goal has always been to be what Gill calls a “sharp shooting group”, one that goes in and identifies early stage properties of particular significance, draw up a strategic plan for said property and create the highest level of value from it by taking it from the acquisition stage through to pre-feasibility.

“By following this business model we have established a strong track record when it comes to capitalising on the opportunities we identify in the marketplace,” Gill continues.

One such opportunity would be the company’s Quatre Milles graphite property, located 175 kilometres northwest of Montreal. Particularly interesting is the East block of that property which consists of 28 contiguous claims totalling approximately 1,600 hectares. The company has already received results from 23 drill holes showing high grade, high carbon content graphite near the surface.

“The purpose of our graphite property is to address the needs of future markets that will require an increasing amount of graphite

“The purpose of our graphite property is to address the needs of future markets that will require an increasing amount of graphite materials, the electric vehicle sector for example”

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Lomiko Metals

View of graphite under magnification

“The two scientists who materials, the electric vehicle Did you know? started up this company did sector for example,” Gill says. “All so with the aim of synthesising the facts and research in front of graphene, and selling it to us strongly suggests that we are 1947 the labs within Fortune 500 reaching a point where supply The year that companies,” Gill states. “We will soon be outstripped by the theory of saw a fantastic business model demand for graphite materials. graphene was that would require cheaper and While at present Chinese first explored increased quantities of graphite groups are tending to sell their for their customers.” graphite at cheap prices, this $5.5 million The two companies worked will not last much longer. The The amount closely to develop and find new growing demand for graphite of financing business opportunities, one of and graphene will mean that its recently secured the most interesting being the value will increase and that is

by Lomiko rapidly expanding market for 3D where opportunities really open printing. “It is amazing to think up for companies like ours.” that since 2004 we have gone One particular company from a situation where there were under 100 that Lomiko sought out was Graphene patents registered for graphene to the point Laboratories, a company committed to where today there are more than 10,000,” applying fundamental science and technology Gill enthuses. “Naturally a number of these to bring functional graphene materials and will overlap, however some will be unique devices to market.

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Chemical Vapour Desposition tube used to produce test batches of graphene

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Lomiko Metals

“We are about to embark on an OTCQX listing. This will open us up to over 30 million potential investors, a large number of which are major hedge and investment funds”

and game changing. The use of graphene within a 3D printing wire or filament in order to print conductive 3D objects creates new methods of manufacturing, for example Addictive Manufacturing. This is the area where we believe Graphene 3DLan is ahead of the curve.”

It isn’t the only project that has Gill excited though, another being the new graphene supercapacitor project. Graphene Labs received a prototype of said supercapacitor, as well as a report from Stony Brook University in Long Island and New York State’s Center for Advanced Sensor Technology (Sensor CAT).

“We provided the graphite to this project which allowed for the creation of reduced graphene oxide (RGO),” Gill highlights. “This RGO manages to retain the conductive aspects of the graphite within it, and in many cases actually enhances it. When it comes to batteries, the more conductive the material is, the smaller the battery will be and this has huge potential applications for electric vehicles. If you look inside today’s electric vehicles the battery tends to be between a quarter and a third of the car size alone. If you can bring the weight down, or even retain its size but with much more battery life provided, the range of the vehicle increases, thus making it much more competitive against its peers within the internal combustion market.

The goal for electric vehicles has to be to ensure that there is no change in convenience for the driver and no feeling of loss involved with owning a greener model. The aim has to be for the consumer to say that what they have is a better product and one that they

enjoy using, and that will be the quickest and most effective way to get people to positively adapt to this change.”

The future certainly looks bright for graphene and for Lomiko as well, what with the company having recently secured financing to the tune of $5.5 million. This will allow the company to take its Quatre Milles graphite property from its later stage exploration phase through to its pre-economic assessment (PEA). This is possible because of several of the project’s unique characteristics, including the fact that the mineral itself is near surface.

The graphite boasts high carbon content and is extremely amenable to low cost processing.

At time of writing, Lomiko also finds itself on the verge of listing in the United States for the first time. “We are about to embark on an OTCQX listing,” Gill concludes. “This will open us up to over 30 million potential investors, a large number of which are major hedge and investment funds. We feel this presents us with a great opportunity to expose our ideas to a very large market, one that has already expressed a strong interest in graphene and its potential, therefore if anything is going to be a catalyst for growth in the short term, this will be it.”

Lomiko Metals

604-729-5312 apaulgill@lomiko.com @apaulgill www.lomiko.com

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Goldcorp Élé

Well ahead in the

Goldcorp’s Éléonore project in northern Que a new mine in a sensitive environment by p words by

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Joh

ĂŠonore Mine

e final furlong

ebec is a copybook example of how to develop pulling together best practice in every aspect

hn Oâ&#x20AC;&#x2122;Hanlon BE Monthly [ Sept 2014 ]

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Goldcorp Éléonore Mine

t’s really not long since we last spoke to Éléonore’s energetic site manager Guy Belleau, but in the space of little over eight months – eight months with a severe Canadian winter in them by the way – the site has changed beyond all recognition.

Belleau has lost none of his infectious élan.

“We are on the last stretch now. I can smell the gold. We promised we would be pouring gold in the last quarter of this year and that is what we will be doing!”

Let’s run through some of the things that have happened. Almost all the buildings are up now, he says. All the necessary permits for construction have been awarded. All the contracts have been placed. The exploration shaft is fully operational. The ramp that will bring the ore to the surface is down deeper than 700 metres, while the production shaft

I

to 20 years. “We are doing lots of diamond drilling to continue to promote resources to reserves and also to allow the definition of our first stopes where we are going to do our first production blast in April. We are currently drilling on a number of new exploration targets.”

It would seem that much of the activity there is preparing the workforce for the ramp up to production. “There is a huge amount of training going on, both on the site and off site, so that we can get ready for the commissioning and the operation of the Éléonore mine.” His passion – for once the word is justified – for recruiting the best people and developing their skills to the utmost remains undiminished. “We are very busy with recruitment and training. It is an intense process but it gives us lots of joy!”

“We are on schedule and in-line with our latest capital cost forecast. Everything is progressing as we planned it” itself has reached 700 metres. “We are on schedule and in-line with our latest capital cost forecast,” he says with emphasis.

“Everything is progressing as we planned it.”

A visitor to the site would now find just 600 construction workers, busy completing the plant, the water treatment plant, as well as the administration building, garage and warehouse. Winter has not yet released its grip on James Bay, but much of this work is being done inside already completed structures. The construction teams are part of a total workforce present at site that now stands around 1,300 people. As well as building a mine and its infrastructure, Goldcorp needs to make the most out of this asset, which is open at depth and is thought to contain resources that will extend its life and productivity well beyond its nominal 15

This is where operational and HR best practices come together in a way he is happy to explain. “I would say we are building one of the best gold mines in the country, if not the world. It is going to have a strong emphasis on technology and world class equipment.

The best in class equipment attracts best in class people! We have many applications for every job we advertise.” In the last year, to prove this point, 10,000 resumés have been submitted, so no wonder he finds it a daunting task, but it is a task that is already paying off. “We were successful in appointing the best people in the first batch – and the best people attract more of the same! People want to join Goldcorp for its reputation and the quality of the people they know they will be working with here.”

Of course these aspiring employees are

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One-stop shop solution from 5 to 120,000 volts challenges Meglab, a designer and manufacturer of electronic and electrical equipment, as well as instrumentation and control systems, is an outstanding engineering service partner also offering installation, training and after-sales customer support services.

Our competent professionals come up with custom solutions and deliver turnkey projects to optimize the development and operation of plants, underground mines and open pit mines.

Our vast array of products and services is what distinguishes Meglab from competition. Housing under the same roof a mastery of technologies working with voltage ranging from 5 to 120,000 volts and the capacity to design and engineer integrated solutions has made Meglab a leading supplier in the mining and timber industry. Meglab has been active in research and development from its first years in operation. Its inventions meet specific needs of the industry and have rapidly contributed to set a reputation of excellence.

Our toll-free number 1877 833-7710 www.meglab.ca

Goldcorp Éléonore Mine

“Safety comes first and last every time, in the training programme and out in the field it is always the same topic. Quite simply, safety takes care of our people”

further motivated by their knowledge that they will have a decent lifestyle and, not to put too fine a point on it, creature comforts.

The camp where they live has been extended, with 400 new rooms added recently. Each has its own en-suite shower and washroom, flat screen TV with on-demand movies and a queen bed. It is, he claims, a world class installation like a five star hotel. “In my opinion we can stand alongside any other mining facility in the world. That is part of our strategic plan: to recruit and retain the

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best people there are in the industry and give them best in class equipment to work with and the best in class training in its use – but that all starts with a best in class camp!”

One thing is missing from that list and it is safety. Safety is more than just a priority, it is a core value, he insists. “Safety comes first and last every time, in the training programme and out in the field it is always the same topic. Quite simply, safety takes care of our people.” The site’s safety record,

which has improved progressively by 20 percent in each of the four years since the project started, is another powerful magnet attracting all those resumés.

Continuous improvement thinking is central to the way he runs the site. There have been countless improvements related to safety as part of a comprehensive CI program called Operating for Excellence, or O4E. This targets each one of the six pillars of Goldcorp – people, safety, partnerships,

“We are always trying to do things better and smarter. We welcome change with open arms. Even though we think we are doing well in a particular area we are always raising the bar and asking our people how we can do it better”

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Goldcorp Éléonore Mine

O4E projects were undertaken, production, reserves and Did you know? and 14 more projects have been margins, though the three ‘soft’ pillars – the ones beginning added this year already tackling 10,000 with P – drive the others in his issues related to aviation, Applications in opinion. “We are always trying underground development, the last year for to do things better and smarter. surface transportation, fuel jobs at Éléonore We welcome change with open efficiency, air efficiency and arms. Even though we think we propane efficiency among 1,300 are doing well in a particular many others. “We have a People currently area we are always raising the huge playground to improve, working on site bar and asking our people how even at this stage. When we we can do it better.” Not even start the plant there will be the kitchens escape scrutiny. plenty more but already we Last year costs were reduced are using fuel, tyres, propane significantly through better inventory and all kinds of supplies; we are using underground explosive, drilling tools, management, but it’s not there yet: the target is a green cafeteria generating zero waste! carrying out maintenance and breaking rock During 2013, he points out, more than 45 day after day. Increasing productivity and

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“Éléonore will end up a low cost mine, profitable at current prices or worse, and it will start producing on schedule bar a meteor strike” efficiency and reducing costs improves the business for our shareholders.”

We spoke at length last year about the partnership with the Cree nation of Wemindji and the other communities that the mine affects. That partnership is the foundation of the mine’s success so far and into the

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future. Businesses continue to be set up and supported within the community, to add to the ones we highlighted earlier. The company is looking at sourcing such necessities as health and safety equipment, drill bit sharpening services and the manufacture of core boxes locally, providing more job

Goldcorp Éléonore Mine

opportunities in the Wemindji. Outsourcing to Cree-owned companies is altogether feasible. Air Creebec continues to carry out 90 percent of personnel movements and BCC Construction has been engaged for much of the building work, while Tawich Construction, a specialist in mining and civil work, has been one of Goldcorp’s preferred contractors throughout the project. Currently there are some 400 Cree workers on the site either working directly for Goldcorp or its contractors. Éléonore will end up a low cost mine, profitable at current prices or worse, and it will start producing on schedule bar a meteor strike. But as we have seen it didn’t get here

by accident. Last summer Guy Belleau sent the entire workforce home for more than a week as a precautionary measure when forest fires came close. “They were not that near, but I did not want to take any chances,” he says. Needless to say the lost time was quickly made up.

Goldcorp Éléonore Mine

819 764-6400 info@goldcorp.com @Goldcorp_Inc www.goldcorp.com

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Meg

Optimising o

For the past two decades Meglab has been and products to the mining industry, and words by

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Joh

glab

operations

n providing leading edge solutions, services boasts a track record that speaks for itself

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he company itself commenced operations in 1994 with only a small handful of employees, focusing at that time on electronic products, repairs on remote control system, lights and radios,” explains Marc Lamothe, Business Development Manager for Meglab. “When our President, Louis Valade, bought into the company in 2005, bringing with him some 30 years of mining experience, he quickly set about establishing a whole new electrical division within the company. Subsequently the business grew, employing more people and establishing the other Meglab divisions, all while ensuring the company maintained its core vision, that being the establishing of long term relationships with major national and international customers.”

Meglab specialises in custom manufacturing, turnkey project management and integrated problem solving. Its mission is to identify, design, manufacture and install innovation electrical and electronic solutions that are tailored to the unique needs of its industrial customers. These solutions are used to achieve three core objectives for said customers, namely, optimising the pace of production, reducing operating costs and ensuring a safe working environment.

“The work of our company over the last 20 years has proven first hand that the key to long-term success is the forging of good

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“The work of our company over the last 20 years has proven first hand that the key to long-term success is the forging of good working relationships”

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Open pit 25kv substation for Osisko Power distribution for electric shovels

Meglab

“Our focus is to hire good people who are able to service our customers in the way that they expect”

working relationships that are based on trust,” Lamothe continues. “Our focus is to hire good people who are able to service our customers in the way that they expect and to communicate with them in order to identify their individual goals, budgets and timelines.

The result of this hard work is the development of products or solutions that are tailor made to fit the customers’ needs.”

Meglab essentially acts as a complete onestop service and solutions provider, and is able to call upon the services of a group of employees who collectively possess a wealth of experience in various fields of expertise.

Together these employees have contributed towards the company’s ability to develop an industry leading portfolio of products, many of which are unique to Meglab. Such products include its MicroCage, MicroGuide, ScoopCam and MicroData solutions, each of which has been utilised numerous times over the years to provide invaluable services to some of the most complex and remote operating mines.

What Lamothe highlights as being one of the best examples of a good working relationship between Meglab and a customer is that which the company holds with Goldcorp’s Éléonore project, located in James Bay, Canada. Here Meglab employees can be found located on site on a 24/7 basis, handling all of the underground mine sites’ electrical and electronic design and engineering requirements.

“We have just recently returned from our latest visit to the Éléonore project and I was blown away at how much of a presence our

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products and people have on site there, and the relationship between workers and staff,” Lamothe enthuses. “Just by walking around the site and seeing the Meglab trademark everywhere, on products controlling air volume, monitoring equipment and people, and generally helping to provide a safer working environment, you can see the fruits of what has become a true partnership and relationship between the two parties.”

Such has been the success of this particular relationship that it has in fact recently been extended with Meglab to provide electrical and electronics technicians to the project. “In addition to the extension of our relationship with the Éléonore project our plans for

the future revolve around showcasing our success here and expanding our presence to other Goldcorp projects,” explains Ben Levac of Meglab Technology. “Goldcorp recognises the value we have helped add to the Éléonore project and we plan to visit their AGM in Vancouver during May and hold a presentation at their corporate office where we will showcase the company to the various mining managers in charge of Goldcorp’s other assets.”

In addition to its work with Goldcorp, Meglab’s employees can be found working on several other important projects, such as Osisko and their open pit. Power distribution in the pit and PLC fab in the mill, others include

“Everything we do revolves around innovation and our belief that we should never stand still”

Typical Meglab All in one U/G substation / electrical distribution container in service at Goldcorp Eleonore 625 level

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Meglab

PLC unit Milling controls (Osisko)

wireless technology to the shaft sinking activities in over 120 shaft compartments in mines, along with mine contractors and engineering firms.

“At present we are working with the operators of various projects to best identify ways to implement wireless technology into their communication and belling systems.

Power distribution, coordination protection, safe grounding and line harmonic reduction are part of the issues we help our customers resolve. Budget pricing is important with starting new projects, and our knowledge of the complete needs enables us to answer promptly while including all aspects. ” Lamothe says. “Ultimately our goal is to develop partnerships with our customers as the one we have at the Éléonore project whereby we eventually become the principle provider of electronics and electrical components.”

In the meantime the company will continue working to not only establish a presence

across other Goldcorp projects but also improve on what it has already achieved at the Éléonore project.

“Everything we do revolves around innovation and our belief that we should never stand still,” Lamothe concludes. “What we have achieved at the Éléonore project to date has been possible through the high expectations of our customer and their support, and indeed has been a success story in itself. We consider ourselves, and are considered as partners in lasting relationships with our customers.

Aiding each other to achieve and surpass expectations, evolving with the times.”

Meglab

819 824-7710 info@meglab.ca www.meglab.ca

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Copper Fo

Dedicated to d

Chairman, President and CEO of Copper Fox M of the business over the last 18 months and th words by

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Joh

ox Metals

development

Metals, Elmer B. Stewart, discusses the growth he important strides it expects to make in 2014

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ince 2009, when I became President, we had been working on the Schaft Creek project in north-western British Columbia, slowly grooming it to the point where a major producer could step in as the operator of the project. That moment came last year when, in July, we concluded a joint venture agreement with Teck Resources Limited,” explains Chairman, President and CEO of Copper Fox Metals, Elmer B. Stewart.

Teck was indeed the most logical choice to take on this role by virtue of the option agreement that had been in place between the two parties since 2002. The completion of the joint venture agreement also resulted in Copper Fox Metals receiving cash payments from Teck in the order of $24 million.

“The terms of the joint venture call for a total of $60 million in cash payments, the first of which being $20 million plus an additional $4 million for expenses incurred at Schaft Creek in relation to the port and storage facility, and the acquisition of other mineral lands,” Stewart continues. “The next $20 million is to be received on the date a production decision is made, while the remaining $20 million is to be received on completion of the construction of all facilities at Schaft Creek. The funds from the first $20 million have allowed us to provide a small dividend to our shareholders and given us sufficient capital for two to three years of exploration work on our Arizona projects and cover G&A expenses.”

The Arizona projects he refers to are the Van Dyke copper oxide deposit and

S

“The terms of the joint venture call for a total of $60 million in cash payments”

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Drilling at Van Dyke

Copper Fox Metals

“The funds from the first $20 million have... given us sufficient capital for two to three years of exploration work on our Arizona projects” the Sombrero Butte project, which were acquired by the company in 2012 and early 2013 respectively. Located in the GlobeMiami Mining District of Arizona, the Van Dyke property was first developed in the early 1900s, when a shaft was sunk to a depth of 1,692 feet, and is reported to have produced 11.8 million pounds of copper between 1929 and 1945 from copper oxide mineralization with a reported grade of 5.0 percent copper.

“The Van Dyke project has a historical estimate on it which was completed by Occidental Minerals back in the 1970s,” Stewart says. “In situ metallurgical recovery testing carried out by Occidental Minerals provided it with estimates that between 70 and 80 percent of the copper oxide could be recovered using in situ methodologies.”

It was decided by the company that the next logical step for the project, having compiled a vast amount of historical information on the deposit, was to complete a preliminary economic assessment (PEA). After taking around 470 of the original pulps recovered from the site and having them tested in a laboratory, results showed a direct correlation between the total copper grade and the oxide copper grade as highlighted by Occidental.

“The modelling we have conducted to date suggests that the Van Dyke deposit itself is larger than what Occidental identified in their historical estimate,” Stewart highlights. “The

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“At present we are working hard to acquire all the historical information regarding this area in order to identify whether a copper target is close to surface or not” next task for us therefore is to complete a verification drilling programme that will give us a good idea if that interpretation stands up to scrutiny. All of this takes us closer to completing a PEA on the deposit, which we hope to have completed this year.”

The Sombrero Butte project can be found

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east of the San Miguel-Kalamazoo area and covers an area of some 2,887 acres of land.

The property itself contains at least two main clusters of mineralised breccia pipes, which in other parts of Arizona overlie associated porphyry copper systems. “Based on the alteration, the mineralisation that we have

Copper Fox Metals

Panoramic view of drilling taking place at Van Dyke

recorded to date and the distribution of the breccia pipes, we believe that we could be looking at a large porphyry copper system here,â&#x20AC;? Stewart enthuses. â&#x20AC;&#x153;At present we are working hard to acquire all the historical information regarding this area in order to identify whether a copper target is close to surface or not. If so we will look to carry out a Titan-24 geophysical survey before commencing with drilling. Nevertheless, we must also consider that if we find that in fact a target rests 500-600 metres or beyond below surface that we would not commence with drilling as the target would be too deep to be of any immediate interest.â&#x20AC;?

A proportion of the funds the company

has available thanks to the Schaft Creek joint venture agreement will also be used to fund a proposed investment in what Copper Fox Metals believes could be a large porphyry copper-molybdenum-silver system in Northern British Columbia, named the Eaglehead project.

This investment is expected to be approved before the end of May 2014.

The company have been seeking an acquisition or investment opportunity since the summer of last year, during which time it has looked at a number of potential opportunities without success. With Eaglehead, Copper Fox Metals sees an asset with a great deal of potential when it comes to finding new mineralisation.

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Did you know?

25% The interest that Copper Fox holds in the Schaft Creek project $60 million The total value of Copper Fox’s joint venture agreement with Teck Resources Limited

Sombrero Butte forms part of the Arizona projects

$131 million The market capital of Copper Fox Metals

“Our goal going forward is to put a value on our 25 percent interest in Schaft Creek and complete the sale of our interests there” “What we already know about Eaglehead is that mineralisation there extends over a five kilometre strike length and that none of the six zones of mineralisation that have been found in the last few decades of exploration have been delineated,” Stewart says. “The other thing that I find compelling about it is that the alteration, even down to the carbonate alteration, is very similar to Schaft Creek. The fact that it has copper as well as gold, molybdenum and silver is also very significant.”

Another aspect of the Eaglehead project

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that has raised Stewart’s interest levels is the fact that a number of the existing drill holes there possess significant intervals, tens of metres of high grade copper mineralisation for a porphyry system. The site also benefits from the presence of road access to the property, a logistical plus that historically results in exploration costs being cheaper than those incurred on a non-road accessible project.

“One of our strategies when looking towards the acquisition of, or investment in a project, if it already has a resource, is to ask whether there is enough there from a

Copper Fox Metals

Drilling at the Schaft Creek project

grade point of view to make it economically interesting and enough there from a tonnage perspective to support a standalone project, and at Eaglehead the answer to both of these questions, based on the information we have to hand, is yes,” Stewart reveals. “Obviously what we want to do, working in conjunction with the management of the Eaglehead project, is get a much better appreciation of the project, do some advanced geophysical surveying, and at the same time follow up these results with some very well located diamond drill holds to test the geophysics.”

Copper Fox Metals prides itself on the fact that it is a streamlined, focused company with cash in the bank and three significant assets present in North America, and understandably has no plans to deviate from its current strategy.

“Our goal going forward is to put a value on our 25 percent interest in Schaft Creek and complete the sale of our interests there,” Stewart concludes. “The joint venture has

approved a budget for 2014 to compete a series of optimisation studies, which is the logical step after the feasibility study and before a production decision is made. The second objective is to advance the Van Dyke project to the preliminary economic evaluation stage. Meanwhile at Sombrero Butte we will slow play the project, compiling the historical information there which will take us a step forward. Completing a Titan-24 survey there will cost us in the area of $200,000 and we have the funds to do all that in the treasury.

That is our strategy and we are very excited to see where it takes us in the future.”

Copper Fox Metals

403-264-2820 info@info@copperfoxmetals.com www.copperfoxmetals.com

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H. J. O’Conne

Proof that hard

A leading supplier to Canada’s resource H. J. O’Connell Ltd. (HJOC) continues to infrastructure construction, mining a words by

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Joh

ell Ltd. (HJOC)

d work pays off

e industries for more than eight decades, lead the way when it comes to heavy civil applications and energy development

hn Oâ&#x20AC;&#x2122;Hanlon BE Monthly [ Sept 2014 ]

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ince its founding in 1931, H. J. O’Connell Ltd. (HJOC) has been a leading figure within the heavy civil engineering and construction industry.

Originally led by Montrealer Herbert John O’Connell, the company has spent the last 80-plus years growing to become one of the planet’s leading specialists in heavy civil infrastructure construction, mining applications and energy development, and is today a vital supplier to Canada’s vast and lucrative resource industries.

HJOC’s long and distinguished history makes it one of the oldest companies of its kind in Canada, with its continued prosperity being attributed to its innovative approach to business and our continued interest in growth and development. Today its diversified business includes expertise in mining, energy, roads and bridges, as well as municipal, industrial, northern and project management related work.

HJOC’s record for delivering first-class quality and value for money is reflected in its blue chip client base, particularly when it comes to the mining and energy sectors.

Said list includes the Iron Ore Company of Canada, ArcelorMittal, Wabush Mines, Manitoba Hydro, Abitibi Consolidated, Fortis Inc., Vale Inco, Voisey’s Bay Nickel and a host of others. Since 31 August, 2011, HJOC has continued its important work, as part of Bird Construction, one of Canada’s leading national general contractors.

In the last decade in particular HJOC has reaffirmed its position as a leading player when it comes to major mining, heavy civil

S

“Today HJOC is pursuing contracts valued at up to $1 billion”

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H. J. O’Connell Ltd. (HJOC)

“In the last ten years HJOC has made a concerted effort to diversify as a business”

and hydroelectric projects. Such has been the exponential growth of the business that just ten years ago the largest projects it was undertaking were valued at between $10 and $20 million, whereas today it can be found pursuing contracts valued at up to $1 billion.

The company as it exists in 2014 operates a modern fleet of over 300 pieces of mining and construction equipment. Recent additions to this fleet have included hydraulic excavators and off-highway tricks, some of which are among the largest owned by any Canadian contractor. Together HJOC’s fleet is capable of moving in excess of four million tonnes of material per month on a given project. Its full range of earthmoving equipment is also boosted by the company’s utilisation of the latest in equipment management techniques, for example its sophisticated computerized preventative maintenance program.

For a great deal of time throughout the company’s history mining has provided the bread and butter for the business, a fact that has remained the case right through the most recent growth cycle between 2010 and 2012 when demand from existing clients increased once again. In the last ten years however HJOC has made a concerted effort to diversify as a business and it is this willingness to evolve as a company that has resulted in heavy civil and hydroelectric projects becoming a more regular source of activity and income.

Throughout its long history, HJOC has developed considerable expertise when it comes to servicing Canada’s mining industry,

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H. J. O’Connell Ltd. (HJOC)

“When it comes to HJOC’s open pit mining work, perhaps the best example would be its operation of Fire Lake Iron Ore Mine on behalf of ArcelorMittal” with mining related work continuing to comprise the single largest sector of the firm’s business activities. As is to be expected for a company as well regarded as HJOC, it has successfully completed a diverse range of mining projects, from overburden stripping to the construction of dams and dykes for tailings containment, and the foundation of pollution control structures.

When it comes to HJOC’s open pit mining work, perhaps the best example would be its operation of Fire Lake Iron Ore Mine on

behalf of ArcelorMittal. It was in 2006 that the company was awarded the contract to operate the mine on a seasonal basis, from May to November. The operation includes drilling, blasting, loading and hauling of the iron ore to a rail spur where it is loaded onto trains. These trains transport the ore to ArcelorMittal’s primary mine, Mont Wright, for processing. In 2010, HJOC was awarded an extensive of the contract for a further five years.

Fire Lake Iron Ore Mine has been responsible for producing between ten

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â&#x20AC;&#x153;Fire Lake Iron Ore Mine has been responsible for producing between ten and 15 percent of the iron ore concentrate that ArcelorMittal produces in Canadaâ&#x20AC;? and 15 percent of the iron ore concentrate that ArcelorMittal produces in Canada. As a satellite mine connected to Mont Wright, transportation of this iron ore concentrate to the processing plant is of critical importance.

There is only one train track between the two

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sites and it is HJOCâ&#x20AC;&#x2122;s job to ensure that there is a continuous flow of ore from one to the other.

Since it began operating the mine in 2006, the company has not had a single train arrive at Mont Wright without ore, all the while lowering its loading times. Needless to say therefore that

H. J. O’Connell Ltd. (HJOC)

ArcelorMittal has always been very pleased with how the project has progressed.

At Mont Wright itself HJOC is responsible for overburden stripping at the mine, a project that has been ongoing since 1989, with the exception of 1992 and 1993. The productive equipment fleet at the Mont Wright stripping project includes up to 20 off-highway trucks in the 50 and 100-tonne sizes, matched with excavators in the eight and 14 cubic yard range. Since the overburden stripping project began, the strategy adopted by HJOC has resulted in “on time, on budget” performance which has resulted in a win-win scenario for all parties.

A further overburden stripping project of note can also be found occurring in Labrador City, Newfoundland and Labrador, of behalf of the Wabush Mines since 1968. Annual contracts between the two range from 1.0 to 4.0 million tonnes of overburden material, with the production equipment fleet used for this work including off-highway Cat 777 trucks, Komatsu PC 2000 excavator, Hitachi 1200 excavator, Cat D8 bulldozers and Cat 16 H graders.

One other area of the company’s work that is of particular importance is its Tailings Confinement Programme. This project began in 1981 and has been continuous since 1985.

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LES FORAGES CCL (1993) INC. are a drill and blast company, specialised in open pit mining. We also perform construction works, diamond drilling and pit wall scaling. Depending on the projects, we are able to mobilise between 50 and 150 employees.

Marc-Andre Robichaud has owned the company since 1993. We have performed drill and blast works for LECQ at its Fire Lake site since 2006 and have taken on numerous other projects throughout 2011 and 2012.

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H. J. O’Connell Ltd. (HJOC)

“The most recent hydroelectric project that HJOC have completed work on is the Lower Churchill Project taking place in Labrador” It has seen HJOC take responsibility for the construction of dams, dykes and canals on behalf of ArcelorMittal, which are used to confine the red water and mine tailings within a closed loop basin. This has been a hugely successful and important area of work for HJOC and one that continues to evolve as the volume of tailings storage requires increasing.

In addition to its work in the mining sector, and its countless other successes in various industries, HJOC is rapidly becoming the

“go to” company when it comes to Canada’s hydroelectric development projects. At the heart of this is a well-trained team of management and skilled trades personnel that possesses extensive experience in the construction of powerhouses and dams.

The most recent hydroelectric project that HJOC has completed work on is the Lower Churchill Project taking place in Labrador.

This particular project is aimed at developing the remaining 35 per cent of the Churchill

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Did you know?

1931 The year that HJOC was founded 300+ Pieces of mining and construction equipment make up HJOC’s fleet 2006 Year HJOC began operating the Lake Iron Ore mine on a seasonal basis, from May to November

“Through a cooperative attitude and empowering all workers to be proactive safety leaders, the vision of an accident-free workplace is seen as a realistic and obtainable goal” River that has not already been developed by the Churchill Falls Generating Station. Its two installations at Gull Island and Muskrat Falls will ultimately boast a combined capacity of more than 3,074MW and have the ability to provide 16.7TWh of electricity per year. HJOC’s portion of the civil works, which included drill/blast, excavation and the construction of roller compacted concrete (RCC) dykes was completed in 2013.

Another example of the company’s work on such major projects would be its efforts on the Wuskwatim Generation Project. A

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result of close to a decade of planning, studies, negotiations and environmental assessments, the Wuskwatim Generation Project is a 200MW run-of-river hydroelectric generating station being developed on the Burntwood River at Taskinigup Falls, located in the Nelson House Resource Management Area. This type of project design creates a smaller environmental footprint in comparison to traditional hydroelectric dams, with the Wuskwatim Project set to cause less than one-half of one square kilometre of flooding once operational, the least amount of flooding

H. J. O’Connell Ltd. (HJOC)

of any hydro project in the entire Province.

Safety is the core value of HJOC. Through a cooperative attitude and empowering all workers to be proactive safety leaders, the vision of an accident-free workplace is seen as a realistic and obtainable goal. H.J. O’Connell Ltd.’s Environment, Safety and Health - Loss Control Program meets, and often exceeds, the demanding standards and requirements enacted by legislation and/or established by industry and project owners.

Given the nature of the work carried out by the company, the concept of sustainability comes high upon the list of values that HJOC holds dear. With every project it undertakes, HJOC enters into its work with the vision of leaving a site or location in the best condition possible. This is the approach it takes right from the onset of the planning stages of a job and its desire to leave an area in as pristine a condition as possible has given rise to numerous environmental and health and safety

initiatives and programmes over the years.

Looking towards the future, HJOC’s first task will be to ensure that with its existing portfolio of projects continue to improve when it comes to the level of high standards that HJOC adheres to, while at the same time the company will look to improve further upon the quality of its work and seek out further efficiencies across the business. Meanwhile, HJPOC continues to aggressively pursue several other projects throughout Canada, projects that it hopes will contribute to the growth of the business in the latter stages of 2014 and beyond.

H. J. O’Connell Ltd. (HJOC)

514-426-1333 info@hjoc.com www.hjoc.com

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Africa’s copper bottom Palabora Mining Limited Modern mining methods continue to extract significant quantities of copper from a deposit that has been worked for over a millennium – now Palabora Copper is preparing for an ambitions expansion programme to maintain production for another decade words by

John O’Hanlon

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alabora Copper extracts and processes copper and other by-products in the Ba-Phalaborwa area of Limpopo Province. The unique formation known as the Palabora Igneous Complex is a geologically fascinating region.

Archaeological evidence and carbon isotope dating indicate that primitive mining and smelting of copper took place at Phalaborwa some 1,000 years ago. This was followed by the smelting of iron ore 700 years later. From artefacts found in the area it is known that copper of remarkable purity was produced in the Phalaborwa area as early as the 8th century. At that time the Ba-Malatji metalworking tribe, on discovering iron and copper 150 kilometres north of Bushbuckridge where they had settled, moved to this site and named it ‘Phalaborwa’, which means ‘better than the south’.

The area is rich in many other minerals than copper, notably phosphate, which is mined locally on a large scale to feed demand from the agricultural industry. However Palabora Copper does what its name says: though it also mines and exports other by-products such as magnetite, vermiculite sulphuric acid, anode slimes and nickel sulphate it is focused on copper. Palabora is South Africa’s only producer of refined copper and provides the South African market with 85 percent of its copper requirements, exporting the balance of the 80,000 tonnes of refined copper it produces each year.

Palabora Mining Company, which is listed on the Johannesburg Stock Exchange, was incorporated in South Africa as long ago as August 1956. The company was owned and managed by Rio Tinto, which owned 57.7 percent of the shares with Anglo American holding a 16.8 percent stake. On 5 September 2012, the two companies announced their intention to sell their respective interests in Palabora. On 11 December 2012, Rio Tinto announced that it had reached a binding sales agreement with a consortium which

P

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Palabora Mining Limited

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‘

Moving mountains for Palabora Copper through Service Excellence Metreta Investments is a well-established South African company providing complete, worldwide logistics solutions to both South African and regional clients.

P.O. Box 351, Komatipoort, 1340

T: +27 (0) 13 793 7755  E: marketing@metreta.co.za  www.metreta.co.za

’

Palabora Mining Limited

is committed to the ongoing sustainable management of Palabora. The consortium comprises South African and Chinese entities led by the Industrial Development Corporation (IDC) of South Africa Limited and China’s Hebei Iron & Steel Group. The sale agreement was concluded in July 2013, and the company’s name changed from Palabora Mining Company to Palabora Copper (Pty) Limited.

The Palabora copper mine is what is known in the trade as a block-cave mine. Block caving is a mass mining method that allows for the bulk mining of large, relatively lower grade, ore bodies. It involves undermining an ore body, allowing it to progressively collapse under its own weight – in effect an underground version of open pit mining. A large section of rock is undercut creating an artificial cavern that fills with mineral bearing rock as it collapses.

This broken ore falls into a pre-constructed series of funnels and access tunnels built into a bunker-like mass of rock at its base, whence miners extract it continuously from below.

However Palabora claims to take a different approach to the technique. It is in fact a benchmark for integrated design. No other block-cave mine has been put into such a high grade ore-body. And its scale is truly impressive: the block height of the cave reaches a record 450 metres at its centre, increasing up to 700 metres on the periphery, making Palabora a world-class mine. The

Sturrock Grindrod Maritime Sturrock Grindrod Maritime, a fully compliant BBBEE company with over 100 years in the ships agency business offers a logistics and shipping service to the mining industry in 9 African countries. We have owned offices in South Africa, Ghana, Angola, Namibia, Swaziland, Mozambique, Tanzania, Kenya and Madagascar. Through our specialist bulk division, we will control the transit of your cargo from mine to port, manage inventory, monitor stockpiles and co-ordinate shipment, port and customs requirements. We offer the option of chartering the vessel for you and co-ordinating the vessel’s arrival to meet shipment dates. If you are in mining in Africa or looking to ship, then we should be talking. www.sturrockgrindrod.com

“Safety is a major consideration at a site which is in continuous operation for 24 hours a day, 365 days in the year”

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production footprint is however very small, measuring 650 metres in length and 200 metres wide, with 20 production cross-cuts and 320 draw-points. Construction of the underground mine was completed in October 2004 when the 20th cross-cut was brought into full production. By May, 2005 the mine was consistently achieving 30,000 tonnes per day - one of the fastest ramp-ups to full production in the world.

Because of the coarse fragmentation of the ore body, a large number of secondary breaking activities are required to break up oversize lumps of rock and to keep ore flowing through the draw-points for the loaders to haul using a fleet of Load-Haul-Dump (LHDs) vehicles that tip 3,000 buckets of ore every day into four jaw crushers on the northern side of the production area. The ore is crushed to less than 220 millimetres, then fed onto a high-capacity conveyor system up to the

Palabora Mining Limited

â&#x20AC;&#x153;Production at Palabora Copper can be extended on an economically rational basis beyond [2015] with the construction of a second lift underground block cave operationâ&#x20AC;? shaft complex from where it is hoisted to the surface and delivered to the concentrator.

And since block caving involves subsidence Palabora uses current leading practices in production, scheduling, reconciliation, rehabilitation and maintenance of the mine.

This includes leading practices in roadway construction, oversize and hang-up treatment and the maintenance of loader efficiencies and dust suppression systems. Safety is a major consideration at a site which is in continuous

operation for 24 hours a day, 365 days in the year. It never stops! This is achieved by dividing the working day into three eight hour shifts. Production, maintenance and service activities are carefully scheduled to obtain maximum benefit from the mining, fixed plant and production machinery; and optimal output from highly trained work teams.

A culture of safety and professionalism is maintained by fostering an open working relationship between key stakeholders,

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Palabora Mining Limited

such as the Department of Minerals and Energy (DME), mine leadership, work teams and trade unions. In a country where strikes and unrest seem almost the order of the day, Palabora Copper has managed to avoid major disruption. A seven day sit in last year was resolved amicably, and the mine restarted without compromising safety or equipment.

The current underground block cave operation, known as Lift I, was originally projected to remain productive until 2020, but this had to be revised when grades were found to be lower than anticipated at the north side of the resource. Now it is expected to become uneconomical after 2015, so the company is pressing ahead with plans for Lift II, one of the largest underground construction operations in South Africa costing some R10 billion. â&#x20AC;&#x153;Comprehensive geological, mine and financial study has demonstrated that copper production at Palabora Copper can be extended on an economically rational basis beyond this date with the construction of a second lift underground block cave operation,â&#x20AC;? said Keith Mathole, the companyâ&#x20AC;&#x2122; general manager for corporate affairs and company secretary.

A R55 million feasibility study was commissioned in November 2013 and completed in May 2014, following a prefeasibility study that was conducted last year. At the same time, in the first half of this year, some R700 million has been invested in early works, infrastructure and the ongoing development of the twin decline ramps, which were seen as essential to maintaining Lift II as a viable long term option.

Palabora Mining Limited

+27 (0)15 780 2911 info@palabora.com www.palabora.com

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Poswa Inc

Creating unbou

A progressive, wholly black-owned law firm, Posw tailor made legal solutions designed to words by

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Joh

corporated

unded potential

wa Incorporated (Poswa Inc.) focuses on delivering o broaden its clientsâ&#x20AC;&#x2122; business horizons

hn Oâ&#x20AC;&#x2122;Hanlon BE Monthly [ Sept 2014 ]

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stablished in 2010, Poswa Incorporated (Poswa Inc.) is a progressive law firm, which specialises in providing services across all aspects of commercial law, including the structuring of transactions, negotiation and drafting of agreements, legal opinions and legal due diligences. Through specialist insight and personalised service, Poswa Inc. focuses on tailor made legal solutions that broaden business horizons. The firm also offers conveyancing and notarial expertise as well as general legal advice and litigation through commercial, civil and labour spheres.

Poswa Inc. prides itself in its ability to see beyond the obvious. A wholly black-owned firm committed to breaking new ground in commercial law, it successfully balances close attention to detail with a wider worldview in order to give its clients the full benefit of what it calls “unbounded potential”. The proven track record of the firm spans over 120 years of combined legal experience in the corporate, private and financial sectors.

Boasting a level 1 Contributor BBBEE Accreditation, Poswa Inc.’s mission is to be recognised as one of, if not the leading commercial law firm in Africa. In order to achieve this aim, the firm looks to leverage what it calls “legal solutions that go beyond the ordinary”. Its range of services cover a wide variety of areas including banking and finance, corporate and commercial, conveyancing and notarial , loc al government, litigation, labour, infrastructure development, maritime law and aviation.

Mr Luyolo Poswa is the Chief Executive Officer of the firm and its Director of Banking and Finance. Luyolo obtained his BA (Law) and LLB Degrees from the University of KwaZulu Natal in 1994 and 1996 respectively. He served his Articles of Clerkship with Deneys Reitz Attorneys and was duly admitted as an Attorney in March 1999. During his term at Deneys Reitz, Luyolo was primarily focused on Maritime Law. He spent a year in the United Kingdom between 2000 and 2001 pursuing a

E

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Luyolo Poswa, Chief Executive Officer

Poswa Incorporated

Master of Laws Degree (LLM) (International Business Law) at the University of London.

He also obtained a Diploma in Import and Export and a Certificate in Mechanics of Financial Markets from the Beaufort Institute.

In 2002, Luyolo joined Absa Corporate and Merchant Bank (Absa Capital) where he worked in the Debt Capital Markets division, specialising in securitization, Domestic Medium Term Notes and Corporate Bonds, loans and asset backed commercial paper conduits. He also managed a ZAR 15 billion commercial paper conduit vehicle.

In April 2007, Luyolo joined Investec Capital Markets as an in-house Legal Adviser, working in various areas of Banking and Finance law including Aircraft Finance, Acquisition Finance, Property Finance, Securitisation, Domestic Medium Term Note Programmes and Principal Finance.

Today, Luyolo is a Director for a number of companies within the Debt Capital Market space. Notably, he is a Director for ED Trust INL Investments (Pty) Ltd (Investment Bank Limited BEE Company), Commissioner Street No. 5 (RF) Limited, Commissioner Street No. 6 (RF) Limited, Commission Street No. 7 (RF) Limited, Commission Street No. 8 (RF) Limited, Autumn Storm Investments 359, DBX Trackers (Pty) Ltd, Protea Conduit (RF), HCL Axon (Pty) Ltd, KlipheuwelDassiefontein Wind Energy Facility (Pty) Ltd, Sevenstones 159 (RF) (Pty) Ltd and Winners-Circle 199 (Pty) Ltd. A few of Luyoloâ&#x20AC;&#x2122;s recent transactions include, the PPC DMTN Programme (ZAR 6 billion), the Land Bank DMTN Programme (ZAR 10 billion), the Transnet GMTN Programme (USD 2 billion) and the Rea Vaya BRT Project.

The other individuals who comprise the leadership of the firm are Nima Gagjee, Director of Conveyancing and Notarial, Ivan de Fanti, Director of Litigation, and Goitse Pilane, Director of Banking and Finance and Corporate and Commercial.

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“Poswa Inc. focuses on tailor made legal solutions that broaden business horizons”

Nima Gagjee, Director of Conveyancing and Notarial

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Nima Gagjee obtained her LLB Degree from the University of Pretoria in 2000 and attended the full time Practical Legal Training School in 2001. Nima served her Articles of Clerkship at Gildenhuys Van Der Merwe Inc., now Gildenhuys Malatji Attorneys, in Pretoria where she gained exposure to personal injury claims, insurance law and commercial law. Nima was admitted as an Attorney in March of 2003. Post admission, she worked as a Professional Assistant at Bhadrish Daya Attorneys from 2003 until 2005, where she specialised and practiced in various spheres of civil litigation. After successfully passing the conveyancing examination, she was duly admitted as a Conveyancer in October of 2004.

In order to pursue her passion and gain exposure in the field of conveyancing, Nima joined EY Stuart Attorneys in Pretoria in 2005 as a Conveyancer. She became a Director of EY Stuart Attorneys in 2006, where she practiced primarily in the area of conveyancing.

It was in April 2010 that Nima joined Poswa Inc. as a Director and head started the Conveyancing Department.

In 2011 she was instrumental in obtaining the Bronze Top Supporting Source of Business Award from Absa Home Loans in Gauteng for Poswa Inc. Nima is also a member of the Black Conveyancers Association. Key features of Nima’s practice include (but are not limited to) registration of servitudes, mortgage bond registrations for commercial property loans/facilities, residential and commercial property transfers, divorce, insolvent and deceased estate transfers, mortgage bond registrations and cancellations for private banks and home loans, general notarial bond registrations and cancellations and subdivisions and consolidations of immovable property.

Poswa Incorporated

Ivan de Fanti, Director of Litigation

“Poswa Inc.’s mission is to be recognised as one of, if not the leading commercial law firm in Africa”

Ivan de Fanti obtained his BA and LLB Degrees from the University of Kwa-Zulu Natal in 1994 and 1997 respectively. He served his Articles of Clerkship at Woodroffe & Kleyn Attorneys in Durban from 1999 to 2000 and was duly admitted as an Attorney on 18 July 2000. Following his admission, Ivan worked as a Professional Assistant at Woodroffe & Kleyn Attorneys until June 2001 when he relocated to Johannesburg. Between June 2001 and March 2012, Ivan worked as

Professional Assistant, Assistant, Junior Associate, Associate and Partner at Moodie and Robertson Attorneys, specialising in Local Government Law, focusing on Property Law and in particular Town Planning Law, Building Law and Outdoor Advertising Law. Ivan joined Poswa Inc. on 1 April 2012 as a Director in the Litigation and Alternate Resolution Department. Key features of Ivan’s practice include civil and commercial litigation as well as maritime law.

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Goitse Pilane obtained his LLB Degree from the University of Limpopo in 2000.

He commenced his practical legal training in January 2001. He joined a medium-sized law firm in Pretoria during April 2001 and in May 2002 he joined the Road Accident Fund as a Claims Handler at the Pretoria branch.

In January 2006, Goitse joined Routledge Modise Incorporated as a Candidate Attorney, he obtained his Higher Diploma (Tax) from the University of Johannesburg in the same year and was duly admitted as an Attorney on 9 June 2008. He was appointed as a Senior Associate in 2010 and obtained a Certificate in Advanced Company Law I and II from the University of the Witwatersrand the same year. In April 2011, Goitse was promoted to Director in the Corporate and Commercial Department of Routledge Modise. Some of the transactions that Goitse worked on during his stay there included advising Transnet on

Goitse Pilane, Director of Banking and Finance and Corporate and Commercial

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“When it comes to working with its clients, Poswa Inc. continuously strives to go beyond being mere service providers”

the Credit Facility Agreement concluded with Agence Francaise de Development for the advancement of a credit facility of ZAR 2 billion to part-fund Transnet’s ZAR 4,6 billion programme to expand the Cape Town Container Terminal.

Goitse joined Cliffe Dekker Hofmeyr Inc as a Director in the Projects and Infrastructure Practice during December 2011 and his experience there included having advised various clients in the public and private sector on aspects of Corporate and Commercial law.

Goitse joined Poswa Inc. as a Director in the Banking and Finance / Corporate and Commercial Department during August 2013.

His clients include the Public Investment Corporation, the Institute of Municipal Finance Officers and the Gauteng Department of Finance. Some of his notable transactions include advising the Public Investment Corporation SOC Limited in a transaction that involved a mining asset (ZAR 161 million), advising the Public Investment Corporation SOC Limited in respect of the design, development, engineering, procurement, construction, financing, insuring and start-up of the 100 MW parabolic trough plant in the third round of the Department of Energy’s IPP Procurement Programme and advising the Gauteng Finance Department in the tender awarded to Altech to build a fibreoptic broadband network within the Gauteng Province (ZAR 1,2 billion).

Poswa Incorporated

The Poswa Inc. team

Major clients of Poswa Inc. to date include Absa Bank Ltd, Airports Company South Africa SOC Ltd, City of Johannesburg, Ekurhuleni Metropolitan Municipality, Fraser Alexander, Gauteng Department of Education, Johannesburg Development Agency, JDG Trading (Pty) Ltd, Kapela Holdings (Pty) Ltd, Kunene Healthcare Holdings, Mangaung Metropolitan Municipality, merSETA , Midvaal Local Municipality, Mmela Financial Services, Nexus SA Connexion (Pty) Ltd, Nthwese Investment Group, PetroSA, Public Investment Corporation SOC Ltd, PPC Ltd, SA Homeloans, SAPPI, South African Airways, South African Revenue Services, The Housing Development Agency, The Land and Agricultural Development Bank of SA, Transnet SOC Ltd, Ulwazi Protection Services (Pty) Ltd and uMhlathuze Municipality.

Key commercial transactions spearheaded

by Poswa Inc. on behalf of some of these clients include, The Land Bank’s ZAR10 billion Domestic Medium Term Note (DMTN) Programme, Mmela Financial Services’ ZAR2 billion Transportation Transaction,

BDO South Africa Incorporated’s Corporate Finance Advice/BEE Subscription of Shares Transaction, Transnet’s US$6 billion Global Medium Term Note (GTMN) Programme, PPC Ltd.’s ZAR6 billion Domestic Medium Term Note (DMTN) Programme and the National Treasury’s US$2 billion Bond Issuance.

When it comes to working with its clients, Poswa Inc. continuously strives to go beyond being mere service providers. In addition to being specialists in commercial law, the firm actively embraces the wider business context and makes it their responsibility to be fully in touch with the frameworks and implications of developments in all key South African markets.

In doing so, it ensures that it remains a valuable intellectual partner to every one of its clients.

Poswa Incorporated

+27 11 783 8877 info@poswainc.co.za www.poswainc.co.za

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t the age of 75 Seed Co is an established player on the global agribusiness scene though it does not spend as much time in the headlines as some of its rivals. Nevertheless on the continent of Africa it is the biggest seed company, outstripping the large multinationals also interested in the African market in both volumes and value.

Seed Co develops and markets certified crop seeds, including hybrid maize seed, cotton, wheat, soya bean, barley, sorghum and ground nut. Its core function is genetics research and subsequently the production, testing, marketing, sales and distribution. This is a fully integrated business, controlling the supply chain from end to end. Very little is outsourced: the company is unique in developing in-house genetics for over 95 percent of what it sells.

And it is also unique in that the vast majority of its sales – again about 95 percent – is sold to small scale farmers.

The company’s origins go back to a 1940 seed co-operative in Zimbabwe called the Seed Maize Association. Amalgamation, organic growth and acquisition brought it to the point in 1996 when it floated on the Zimbabwe Stock Exchange, raising capital that enabled it not only to upgrade its facilities in that country but to embark on a process of regional

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“We do around 300 visual demonstration round the country a year where farmers are brought in to learn not just about the seed, but weed control, fertiliser use and general best practice”

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Typical Tanzanian agro dealer

Seed Co Tanzania

“Out of the 40 odd million people who live here 80 percent are employed in agriculture, the vast majority on small scale farms” expansion into neighbouring Zambia, Malawi and Mozambique. At that period it also formed a research joint venture, Syngenta Seed Co in South Africa. However its most significant international collaboration was inaugurated earlier this year when international agricultural co-operative group Limagrain bought a significant share of Seed Co. Limagrain is the fourth largest seed company in the world with annual sales of more than €1.9 billion – the alliance gives Seed Co access to a large product range, yet one that does not compete with it in Africa. Just as importantly it too has a co-operative background so shares Seed Co’s values and ethos.

Today the company supplies farmers from South Africa right up to Ethiopia. In 2010 Seed Co established a business at Arusha in northern Tanzania under the leadership of an experienced agriculturist and entrepreneur, Managing Director Dave Clements. Tanzania is prime territory for Seed Co, he explains: “Out of the 40 odd million people who live here 80 percent are employed in agriculture, the vast majority on small scale farms.”

As yet the company has no research station based in Tanzania itself – however it has seven across Africa, covering all the different types of climate and soils. One at Kitali in Kenya, for example specialises in highland conditions, another in Zambia looks at tropical forest ecologies, one in Zimbabwe itself does the

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Beyond Seed Protection – Our commitment to deliver innovative Seed Treatment solutions to the Seed Industry remains unmatched. Our philosophy is to always go beyond the conventional, providing innovative products with best in class technologies. Our solutions provide outstanding early season protection, increase plant vigor and high yield potential – every seed counts.

© 2014

Seed Co Tanzania

Savanna and one is located in South Africa where the climate is more temperate. In any case, he points out, plant breeding rights are not yet well developed in Tanzania and IP protection is better controlled elsewhere.

Nevertheless Tanzania is taking strides towards getting a modern regulatory framework in place as well as becoming internationally accredited in the seed industry.

“Under Nyerere’s African socialism (Ujamaa) the government controlled these matters and the material was all in the public domain,” explains Clements, “but as the private sector has expanded these regulations have had to be put in place.” Until the country becomes accredited and the private sector can set up its own labs Seed Co will rely more on its own research network, he says.

He is excited by commercial opportunities

Syngenta Syngentas commitment reflects its belief that Africa has the resources not only to feed its growing population, but also to become a major food exporter. Over the next 10 years, Syngenta will make cumulative investments of over $500m which include recruiting and training of over 700 new employees, the development of distribution channel networks, logistics, local production facilities and support infrastructure - like the newly opened Seedcare® Institute in South Africa - to increase access to technology to over 5 million farmers and to enable productivity gains of 50% or more, while preserving the long term potential of the land. www.syngenta.com

Seed Co demonstration plot

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Seed Co Tanzania

Chemtura AgroSolutions Chemtura AgroSolutions, a well-respected worldwide supplier of seed treatment products and technology, is proud to be associated with Seed Co as suppliers of fungicides, insecticides, polymer/colour coatings and seed security products for many years already. www.chemturaagrosolutions.com

“We bring in the distributors twice a year and train them on the product and the information they need”

presented by the East African region, especially Tanzania. “We are doing a significant amount of local production. About 70 percent of our seed sold is produced locally and we have been topping that up from Zambia. However in the next three years we intend to become completely self sufficient in Tanzania.”

The seed conditioning plant that has been built at Arusha is one of the most modern in the world, and here the company employs around 100 people. A further 500 work in the field through outgrowers. The cycle starts with the farmers’ demand for high quality seed.

A big majority of small farmers in Tanzania still grow their crops from seed retained from the year before. It’s a time-honoured way to farm but it is not good for productivity, as the stock degenerates and crops need greater quantities of fertiliser and become less resistant to pests. “We aim to get at least 80 percent of Tanzanian farmers to use certified seed,” says Clements

Farmers training in field

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Seed Co Sorghum Field

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Seed Co Tanzania

“Its objective is to get product within 25 kilometres of every farmer in Tanzania because that is the distance a farmer can travel on a bike in a day and get home again”

The need for the farmers to access seed that suits their land is met by the research station, which supply genetic solutions for the company to test in the different climatic and ecological zones of the country. “When we find a product that is appropriate, we do the multiplication of that product here in Tanzania. The multiplication is done through establishing out-growers and training them on the skills of hybrid production. They then deliver that product to us where we do the processing and conditioning and clean, grade, treat and pack the seed.” Another arm of the company does the marketing and explains to farmers the attributes of the seed and when and why they ought to use it.

The out-growers and distributors are clearly as important as the researchers in this cycle. Out-growers are selected on the basis of having sufficient acreage, with sufficiently good isolation to avoid contamination from other crops in the area, he explains. “We have a team of agronomists that we send for training to become accredited inspectors, and these visit the farms on a weekly basis to ensure that the quality standards are met right though the production cycle. A qualified agronomist is attached to each of the distribution depots to train the farmers.

As much training as possible is done at the farm level, and involves the workers as much as the management. “On the retail side, we bring in the distributors twice a year and train them on the product and the information they need to give the farmers, how to handle complaints and the like. We do around 300 visual demonstration round the country a year

where farmers are brought in to learn not just about the seed, but weed control, fertiliser use and general best practice.”

Seed Co supplies the seed from its store locations across the country to local wholesalers, who then supply small dealers trading sometimes from a single godown. Seed Co is a founder of the Last Mile Alliance, an innovative model that brings together commercial partners (providers of high-quality farm inputs, financial services and insurance), existing agro-dealers, foundations and donors to create a costeffective rural distribution network to reach smallholder farmers in Tanzania, delivering both commercial success and development impact at scale. “Its objective is to get product within 25 kilometres of every farmer in Tanzania because that is the distance a farmer can travel on a bike in a day and get home again. Eventually we would like to get that down to 12 kilometres!”

Dave Clements enthuses.

Right across Africa, he concludes, the average farmer is still only realising about 25-30 percent of the genetic potential of the varieties available. “These guys are at the core of our business so it is not just about creating a better product for the farmer, as our competitors do, but trying to create a better farmer for our product!”

Seed Co Tanzania

+263 4 882485/851962 info@seedco.co www.seedco.co

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