C O M P A N Y O V E R V I E W
New Gold Inc.:
Maximising Assets at Peak Mines in Australia
New Gold’s Peak Mines General Manager Greg Bowkett d company’s unique approach to optimising Peak Gold Mine opportunities, refining management and company culture, looking to improve. Written by: Robert Spence Produced by: Nate Zeke
discusses the es by maximising , and continuously
NEW GOLD INC.
Peak Gold Mine
H
eadquartered in Vancouver, Canada, New Gold Inc. is an intermediate gold mining company with a focus on environment and social responsibility. The company has a growing portfolio consisting of four producing assets — the New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in 73
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Mexico — and three development projects in Canada and Chile. Peak Gold Mines has inspired the Canadian miner to do more with less, which includes integrating new systems to optimise overall production and performance. Under this formula, Peak Mines has turned strategy into action by harnessing the creativity and passion of its team while introducing business processes
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that are lean and continuously improved. The Peak Mines in Australia has been a shining example of the success that incurs from these processes being put into place. Maximising opportunities Located in the Cobar Gold Field of New South Wales, Peak Mines is a medium-sized gold and copper mining operation,
comprised of five commercially active underground mines and a copper-gold processing plant. The mine produces gold dore for sale at the Perth mint and copper concentrate that is sold to markets in Asia. Although New Gold has historically been focused on copper and gold, there is potential to maximize new opportunities at Peak Mines, according to w w w. n e w g o l d . c o m
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WE MEET OUR CLIENTS’ EXPECTATIONS WITH LEADING TECHNOLOGY, INTEGRITY, SAFETY AND EFFICIENCY. Raisebore Australia is a South Australian-based company that provides a specialised service to Australian and international mining industries. It has the dynamic ability to ream raises from 0.6 metres up to 6.0 metres in diameter thanks to a large eet of raiseboring machines and extensive inventories of consumables. To date, the company has reamed in excess of 125 kilometres of shafts and provided drilling machines to all states of Australia and to international projects (West Africa, New Zealand, Hong Kong, Vietnam and Portugal).
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THE HISTORY OF RAISEBORE AUSTRALIA AND NEW GOLD FROM 1996 TO THE PRESENT Raisebore Australia Pty Ltd (RBA) is a private company, wholly owned by its founder and Managing Director, Mr Rod Bertram. The company was registered in March 1995 and excavated its first raise for Peak Gold Mines in February 1996 which was an uphole raise. This was the very first box hole raise excavated in Australia by a raiseborer and followed the innovation of down reaming at Mt Isa a year earlier. RBA has excavated in excess of 125,000 metres of shafts within Australia, Ghana, Portugal, Vietnam, Hong Kong and New Zealand many of which have been for New Gold and the other mines in the Cobar area where RBA has been the pre-eminent raiseboring Contractor since 1995. In fact we understand that we have carried out in excess of 99% of all raiseboring requirements of Peak Gold since the initial box hole in 1996. Our fleet of six specialised small diameter raiseborers has the capability to box hole, down ream and excavate conventional slot raises as well as escape ways. Our fleet of seven mid-range and large diameter raiseborers has excavated numerous underground raises for New Gold as well as a number of surface shafts up to 781 metres in depth which was completed in 2011. Currently RBA is still servicing Peak’s raiseboring requirements with a low profile raiseborer drilling slot raises whilst a large diameter machine is completing a new ventilation circuit for the mine both from surface and underground locations. RBA is proud of its achievements and in particular its 19 year association with Peak Gold, which would not have been possible without its dedicated workforce and a loyal client. Raisebore Australia Pty Ltd will continue to offer unparalleled service to the industry whilst maintaining our responsibility for the safety of personnel, to the environment and act as a responsible corporate citizen. Website: www.raisebore.com.au/
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NEW GOLD INC. managing director of Peak Mines, Greg Bowkett. “We have a couple ore bodies with lead zinc that affect the current concentrate and we have to pay penalties because of this. So one of the things we are exploring is whether we could potentially reconfigure the circuit to produce a saleable lead or zinc product to turn this from a cost to a benefit.” Though it is early in the evaluation phase this could enable the mine to access new parts of different ore bodies, which aligns with its strategy of maximising opportunities. “Should this prove viable, this would add to our current operations and would give us the opportunity to maximise the whole asset instead of just the parts of it we are currently focused on,” Bowkett added. Refining management and culture For Peak Mines, structured communication has been instrumental in changing the company’s management style.
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The mine has enlisted the help of Quest Worldwide, a global change management consultancy that works with organisations to improve their business performance. The partnership focuses on three fundamental areas: operational excellence, strategy execution and people management. “Quest Worldwide is a global change management consultancy,” said CEO Mark Pinchen. “We operate from regional bases in Australia, Europe and the United States. We work with our clients to engage their people in deploying their strategies and realising significant, sustainable improvements to their organisations and cultures, delivering real bottom-line impact.” “Quest has been vital in getting the different departments of our mine to understand our processes so we can achieve our goal. It’s been monumental for the people management aspect of our business,” Bowkett said. “Quest has helped to engage our people, get them out of their comfort zones and to start thinking at
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NEW GOLD INC. the business level. It boils down to everyone understanding and speaking the same language.” According to Pinchen, this is exactly what Quest does. “We help their clients and their people to think innovatively about the business at the business level and to then apply the disciplines to realise the vision, goals and plans that are formed. It takes courage and commitment and forces people outside of their comfort zones, but also builds new awareness and powerful ownership of the solutions and requirements. It’s a challenge to
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involve people in this way but it pays dividends.” The partnership has aided Peak Mines in creating a highperformance culture that is focused on improving customer relations while continuously driving improvements. “We value integrity, commitment, innovation, employee development and teamwork,” said Bowkett. “We believe our business can be run through these values and we’re committed to implementing a positive change.” Quest works with project
TYRE DOCTOR
Tyre Doctor are proud to have been involved with Peak Gold Mines for over 10 years. As a total tyre and wheel solution provider, Tyre Doctor provides the following benefits to the mining industry. New Tyres: Large stock volumes and extensive industry knowledge make Tyre Doctor the ideal tyre supply partner for your mining operation. Rims: Tyre Doctor has state of the art rim testing equipment and a modern facility for repairing and custom manufacturing rims to ensure your fleet stays safe and mobile. Tyre Repairs: Hot Vulcanising tyre repairs form the heart of the Tyre Doctor Operations. All sizes of tyres up to 63” repaired in our workshop with guaranteed short leadtimes. Onsite Services: With a fleet of fitting trucks and conveyor belt repair units, all operated by qualified staff, Tyre Doctor has all onsite requirements covered. Call 1800 897 336 to discuss how we can reduce your operating costs, reduce your machinery downtime and increase safety at your mining or earthmoving operation. Website: www.tyredoctor.com.au
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Make your processes truly productive! Focusing strategy
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We enable our clients to better deploy their strategies. Our approach provides a balanced framework in which firms can put their values to effect and engage their people, mobilising teams at all levels to deliver on their plans and achieve the company’s goals.
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NEW GOLD INC. leaders to implement a coordinated approach to improve project effectiveness with a twoway communication style. “Instead of our company only being driven by the general manager or CEO, we actually want it to be integrated,” said Bowkett. “We want our company to be driven by the leadership side and the workforce side so we can produce the best product possible. Another component to refining the Peak Mines’ commitment to employees and company culture has been the assistance of the Workplace Health and Safety
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Committee (WHS), a safety group comprised of key employees, including a member from every department in the organisation. It has been crucial in strengthening the company’s safety culture and getting Peak Mines to look at the bigger issues. “WHS has helped change the culture of our people to be more proactive in recognising safety issues,” said Bowkett. “The committee really helps to align our focus on the values, teamwork, and development and training of employees to ensure they understand how we view safety
QUEST WORLDWIDE
Established: 1988 Industry: Energy & Resources, Financial Services, Manufacturing, Logistics, Petrochemicals, Health & Life Sciences, Retail & Leisure, Technology, Media & Telecommunications Services: Business Transformation, Change Management, Human Capital, Leadership, Programme/Project Management, Strategy Deployment, Operational Excellence, High Impact Events & Culture Change On-Going Projects: Business Improvement Exercises, Lean Manufacturing, Strategic Planning & Deployment; Major Projects Deployment & Communication Management: Steve Smith - Chairman Bret Shaw - Regional Director Asia Pacific Michael Hill - Regional Director EMEA John Guadagnino - Regional Director Americas Website: www.quest-worldwide.com
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SINCE 1986
Inland Petroleum focuses on excellence in identifying, qualifying and delivering precise fuel solutions and services that enhance our customers’ bottom line. Specialising and customising solutions in: Delivery options and capacity flexibility Fuel supply diversification Integrated logistics management Operational efficiency Simplified administration Remote site monitoring Automated technological systems
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NEW GOLD INC. and what is needed to achieved it as a team.” Operational excellence With a new approach, Peak Mines has also been able to streamline processes and optimise results. The company’s newly adopted management approach to maintenance, which incorporates the lean manufacturing model, helped Peak Mines cut its maintenance costs by USD $1.3 million in 2014. “The improved management approach is making a tremendous difference in how we operate and
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conduct business,” said Bowkett. “The results speak for themselves. The lean model has given us a goal for our bottom line, which helps us know exactly how many people we need to run this operation successfully, and profitably.” Peak Mines has reduced its maintenance cost on its loaders from USD $120 per hour to $50 per hour. The company was then able to increase its jumbo uptime from 60 percent to 85 percent. In addition, Peak Mines commissioned the help of KepnerTregoe to assist with a wide range of business improvements such
Peak Gold Mine Workers w w w. n e w g o l d . c o m
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NEW GOLD INC.
Peak Gold Mine
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as increased operational efficiency and overall equipment effectiveness. “Kepner has helped us select the best locations for equipment to give us maximum capacity,” said Bowkett. “The company has essentially given us more opportunities with what we have.”
Company Information INDUSTRY
Mining HEADQUARTERS
Vancouver BC, Canada FOUNDED
1980 EMPLOYEES
1757
The next chapter Along with additional exploration projects lined up, New Gold will continue to evaluate opportunities associated with the lead and zinc or at Peak. “Right now we’re focused on mining at the rate that’s optimal for us, while continuing to keep our employees safe,” Bowkett said. “Our Penalty for Profit initiative is another aspect we’re going to focus on moving forward.”
REVENUE
N/A PRODUCTS/ SERVICES New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico, provide the company with its current production base. In addition, New Gold owns 100% of the Rainy River and Blackwater projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold’s objective is to be the leading intermediate gold producer, focused on the environment and social responsibility.
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NEW GOLD INC. Address Suite 1800, Two Bentall Centre, 555 Burrard Street, Box 212 VancouverBritish Columbia, Canada, V7X1M9 Tel. (604) 696-4100 Fax. (604) 696-4110 info@newgold.com www.newgold.com