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March 2017 • www.miningglobal.com

MINING ON THE MOON

REACH FOR THE SKY

Q&A with iSpace Lunar’s CEO

MINING DIAMONDS enriching a nation How Debswana manages its unique partnership between the GRB and De Beers Group

Airware and the future of drones in mining

MINING INDABA The TOP 10 speakers to watch


TECHNOLOGY

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EDITOR’S COMMENT

WELCOME TO THE March issue of Mining Global Magazine! Our cover profile is Debswana Diamonds, the Head of Ore Processing tells Mining Global about the largest private sector employer in Botswana and how through diamond processing, it looks to grow the business further after more than fifty years at the top. In this month’s issue, we pose ten questions for founder and CEO of iSpace Lunar Takeshi Hakameda, as the company plans to extract resources from the moon and change the future of mining, What role will drones play in the future of mining? Airware, a provider of complete enterprise drone solutions has entered the mining industry through the acquisition of Redbird. Jonathan Downey, CEO and Founder of Airware, sits down and tells Mining Global how drones can transform the data and analytics of the mining industry, Our final feature takes a look at 10 speakers that caught our eye from this year’s Mining Indaba conference, We hope you enjoy the issue!

Enjoy the issue!

Dale Benton Editor dale.benton@bizclikmedia.com 3


F E AT U R E S

THE FUTURE OF DRONES IN THE MINING INDUSTRY

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Top 10 speakers at Mining Indaba

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C O M PA N Y P R O F I L ES

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Debswana Diamond Company USA

Skorpion Mining Company Africa

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Chamber of Mines of Namibia Africa

Sandvik Mining and Rock Technology South America Latin America

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Reach for the sky The future of drones in the mining industry Following the recent acquisition of a drone data analytics company, drone technology solutions provider Airware has flown into the mining industry – and plans to revolutionise it from the ground up Writ ten by: DALE BE NTON


TECHNOLOGY THE FUTURE OF mining is being shaped by the technology of today. Technological innovation is transforming the mining industry by the day largely through operating technology such as heavy machinery and automation. But what of the role of data analytics and mine site analysis? Step forward Airware. Airware is a company that provides Fortune 500 companies with complete enterprise drone solutions and in September last year, the company acquired Redbird, the France based data analytics platform for mining, aggregates and construction industries. For founder and CEO of Airware Jonathan Downey, it was only a matter of time before drone data analytics technology took hold of the mining industry. “Construction and excavation sites, such as mines as quarries, must be managed and operated digitally in order to compete in today’s markets,” he says. “Commercial drone technology like Airware brings mining operations into the digital world all the while offering faster, cheaper and higher-quality data analytics,”


TECHNOLOGY In the current mining industry, one that is faced with cost reductions and, according to a McKinsey report in June 2016, is 28 percent less productive than a decade ago, Airware and the acquisition of Redbird is a breath of fresh air and offers optimism for the future of the industry. Airware was founded by Jonathan following a combination of his passion for aviation, through his father teaching him to fly in his childhood, and engineering and developing electronics and software solutions through high school and college. Downey also worked as a commercial air pilot for some time and was involved directly with Boeing on the development of a 6,000 lb fully autonomous world record breaking helicopter. Following his time as a pilot, Jonathan founded Airware after seeing a shift in the focus of technology solutions in the industry. “I saw technology was becoming available in a smaller form factor and at a price point where it could address commercial flight applications through drones,” he says. “But I also saw an industry that was focused on the drones themselves and not on the enterprise software 8

March 2017

required to make the data collected by these drones actually actionable by large enterprises,” Airware provides exactly that – enterprise solutions in which large enterprises can utilise the data collected through drones. The company has worked in a number of sectors across Europe and America, but it has only been recently that Downey has decided to take Airware into the mining industry “We’ve had our eye on the mining industry for some time but only from a far. Through Redbird we have finally entered that space and acquired all the visualisation and data analytic applications and platforms associated with that vertical,” With commercially flying drones


REACH FOR THE SKY

comes the question of regulation and airspace and whether we are going to see the skies full of drones flying around like a scene ripped out of dystopian science fiction. The Federal Aviation Administration, an operation mode of the U.S Department of Transportation, essentially governs the skies. For a company like Airware, establishing a key working relationship with the FAA has been crucial in the growth of the company, after all, if Airware plans on working with customers to commercially fly drones then it needs to adhere

to governmental regulations. This is something that Downey has been all too aware of. “Airware was one of the first companies to partner with the FAA and work in a collaborative fashion, which has helped us grow and better serve our customers on an immeasurable scale,� he says. The partnership and collaborative nature of work with the FAA has in fact been so instrumental in the future of commercial drone use that Airware is featured numerous times in the latest iteration of the FAA 9


TECHNOLOGY regulations on commercial drone use. So how does Airware fit into the mining industry? As noted, Airware develops complete drone solutions that will help Fortune 500 companies solve business problems. Downey indicates that this is most typically operational cost savings, enhancing of worker safety and the improvement of decision making. “The current mining industry is facing lower productivity levels than the same time a year ago, productivity is a big issue in the industry,” says Downey. “Companies want to achieve more with the same number of machines that they have today, and that’s where Airware comes in,” he says. Airware works closely with clients to understand all elements of the operation, from material to production, excavation, blasting, transporting and inventory management. The company ties together all the information from machines, materials and all other sources of information from the mine site to allow companies to identify where improvements can be made. With any technological innovation that stands to change the ways 10

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of working of an industry there comes with it a sense of risk and even fear of adoption. Airware is no stranger to that. The company is essentially changing the way mining companies can analyse mine site data, efficiency, health and safety of workers and productivity. Larger mining organisations will have been using established methods of doing so for years but Downey believes that it was simply a matter of if and not when drones will become the norm across the industry. “The industry is convinced that commercial drones are an inevitable part of their future, or even their present,” he says. “In most cases, it’s about when are they going to adopt this new technology and what is the best way to do so,” Downey has seen that despite this inevitability, there are varying levels of risk averseness in the industry. There have been motivations on both ends of the spectrum, early adopters versus late adopters. In the mining industry, with declining productivity and a more competitive environment some companies have been rapid adopters, while others have been happy to


REACH FOR THE SKY

“The industry is convinced that commercial drones are an inevitable part of their future, or even their present” – CEO of Airware Jonathan Downey

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TECHNOLOGY

“This is a technology that excites people. We’ve all dreamed as kids of developing robots and flying our own technologies and Airware has been the perfect platform to realise those dreams” – CEO of Airware Jonathan Downey

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wait and see the success of the technology first and then adopt later. Part of the way that Airware has been so successful is through having the right likeminded and talented people working for the business to really take the company further and further. Recruiting these people hasn’t been an issue for Downey. “This is a technology that excites people. We’ve all dreamed as kids of developing robots and flying our own technologies and Airware has been the perfect platform to realise those dreams,” The mining industry has proved to be one of the more competitive markets in commercial drone technology. Airware entered this industry knowing full well of the various technology players already in the market. What convinced Downey to do so was the company’s understanding of large enterprises and what enterprises expect – a complete solution. “Airware, via the acquisition of Redbird, is the most complete solution of this vertical,” he says. As a demonstration of the key role that Airware will play in the industry, Downey and a number of

representatives recently attended MINExpo 2016. This represented a great opportunity for the company to meet with existing clients, network with potential clients and learn more about the industry. One such client was Caterpillar, which has been working with Redbird (now Airware) on drone solutions and has announced plans to extend an already existing agreement with the company. For Downey, attending events and tradeshows such as this calls back to the very notion of what started Airware in the first place, for it was at an event that Downey first understood and noted the “missing key” for technology was drone solutions in the industry. Fresh into the mining industry, the only way is up for Airware and Downey is excited for what the future holds. “It’s an exciting industry, one of constant innovation all of the time. It’s an environment that I am very passionate about, so the ability to combine this with aviation through Airware is an opportunity that I am thrilled to have, to pursue and to really push forward.”

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PROFILE

MINING ON THE MOON AND BACK


We don’t know where the future of mining will take us, but for many it certainly involves outer space. We spoke with the founder & CEO of ispace lunar, Takeshi Hakamada and the company’s plans to extract resources from the moon Writ ten by: DALE BE NTON


PROFILE Tell me a little more about ispace: the company’s history and how it has grown to become the company that it is today? ispace was incorporated by myself (Takeshi Hakamada )in Japan in 2010. Since the company’s inception, we have grown steadily, starting from a small office space to a 2-floor office space with 16 employees. In 2015, Team HAKUTO, a GLXP team managed by ispace and with over 60 pro-bono members, won the GLXP Milestone Prize. What is ispace as a company? ispace specialises in developing micro-robotics that will be used to locate, characterise, extract, produce and deliver resources from the lunar surface to customers on the Moon and in cislunar space. What is the vision/ambition of the company? ispace aims to be the world’s leading lunar exploration company. In the near term ispace will use its micro robotic systems to locate and characterise resources on the lunar surface. In the long term ispace aims to process and 16

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store the ice it finds as liquid oxygen (LOX) and liquid hydrogen (LH2) which can be used and delivered as a fuel for rockets and satellites to customers on the Moon and in cislunar space. Who are the people behind ispace? ispace currently has 16 full time employees. The c-level officers are: Takeshi Hakamada (Founder & CEO) Takeshi studied Aerospace Engineering and received his M.S. degree at the Georgia Institute of Technology.  Enchanted by Star Wars movies at a young age, the dawn of the new commercial space industry and the success of non-governmental entities like the Ansari XPRIZE drew his attention and curiosity. Takeshi chose to enter the consulting industry after graduation, where he developed team management skills and led multiple successful cost reduction projects. Since 2010, he has led Team HAKUTO, competing for the Google Lunar XPRIZE. In 2014, he contributed to meetings initiated by the Minister of State of Japan to discuss the new space industry.


MINING ON THE MOON AND BACK

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PROFILE Dr. Kazuya Yoshida (Director & CTO, Professor at Tohoku University) Professor Kazuya Yoshida received Dr. Eng, in Mechanical Engineering Science from Tokyo Institute of Technology. He now works for Tohoku University as a professor, and serves as Director of the Center of Robotics for Extreme and Uncertain Environments. His research activities cover dynamics and control of space robotic systems ranging from orbital free-flying robots to planetary exploration rovers. His role in ispace is to transfer his expertise, knowledge and know-how earned during his academic research to ispace, which he believes will contribute to the advancement of human beings. Takahiro Nakamura (Director & COO) After receiving his M.S. in Planetary Science from both Kyushu University and then via the University of Tokyo on a full scholarship, Takahiro joined Accenture, where he spent 5 years as a management consultant, specialising in both the retail and high-tech industry.  Joining Recruit next (Japan’s largest information 18

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MINING ON THE MOON AND BACK

company) Takahiro launched 4 businesses - leading two of them - including SUMO, a moving service, and a business for elderly people. Takahiro joined ispace in 2011 after an initial volunteer role, and is now the acting COO. Can you tell me a little more about the mission/vision of ispace, what are your plans with the minerals and information you retrieve through space prospecting? Expand our planet, Expand our Future — our vision is to create a sustainable ecosystem in outer space and extend the human presence throughout the solar system. The first step is to develop space resources and establish an economy in space. ispace sees the Moon as a prominent destination in any plans for space resource utilization beyond geostationary orbit because of three principle attributes: it is near to the Earth, it has millions of metric tons of water ice and other valuable resources, and scientifically it is extremely important. In the near future, numerous space agencies and commercial companies intend

to pursue exploration on the lunar surface. ispace will not only serve these international players, but also work alongside them to begin a third industrial revolution. How does this impact the mining industries/resource excavation industry as a whole? Do you feel through the resource exploration on the moon that terrestrial mining companies could be influenced by what you and other companies are doing in space? Any space resource development activities would have to apply terrestrial mining technologies. The space resource development could then further improve these existing technologies by playing within the harsh restriction of outer space environment. Terrestrial mining companies could potentially benefit from technologies used for the space resource development, as they must be efficient and operate with minimum human intervention. ispace plans to develop lunar exploration and utilization technology that will span the entire mining ecosystem from scouting potential targets, to 19


PROFILE prospecting in selected areas of interest, all the way to extraction, refining, storage and delivery. The robotic technology that ispace is developing for outer space will have many useful applications here on Earth. ispace is currently exploring opportunities to utilise its robotic technology in extreme environments such as around volcanoes, in deep mine shafts, as well as in disaster areas. The rovers may also find use in facility maintenance, construction support, security, and inspection in dangers and hazards areas. Tell me about the mission for prospecting on the moon? Will this be a remotely controlled or will there be people manning the fort in a boots on the ground type operation? Our initial scouting and prospecting missions will support economic, engineering, and mining models to determine the financial viability of extracting, processing, and eventually delivering lunar resources to customer on the Moon and in cislunar space. Our upcoming mission with Team HAKUTO will be conducted through a teleoperation from 20

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MINING ON THE MOON AND BACK

the ground. However, the future prospecting missions must become autonomous as we plan to adopt a swarm exploration using a group of micro-rovers. We may possibly collaborate with astronauts on the ISS to control rovers on the Moon. How did you develop the prospecting on the moon mission? Was there a key driving moment that turned your attention to resource exploration on the moon? There is scientific evidence about the abundance of water ice on the Moon. 1. Abundance It is estimated that 6 billion tons of water is available on the Moon, mostly at the lunar poles. 2. Quality Data analysis of lunar water suggests that the ice is relatively pure. 3. Accessibility Data analysis from the Lunar Reconnaissance Orbiter shows that 22% of the Shackleton crater, a crater in the south pole, is covered by water ice.

Are there any key partnerships that have helped bring the company forward and ready to begin in its ambitions to head into space? Google Lunar XPRIZE The Google Lunar XPRIZE (GLXP) is the largest prize competition of all time with a reward of $30 million. The GLXP aims to incentivise entrepreneurs to create a new era of affordable access to the Moon and beyond, while inspiring the next generation of scientists, engineers, and explorers. ispace is managing Team Hakuto, the only team from Japan. Team Hakuto won the $500,000 Milestone Prize in 2015 ranking it amongst the top 5 of 16 teams. Space Robotics Laboratory at Tohoku University ispace is partnered with the Space Robotics Laboratory (SRL) at Tohoku University in Japan. This research laboratory, headed by Professor Yoshida, has been active for nearly twenty years, producing technology for real space missions. It is a leader in collaborative development in 21


PROFILE remote sensing satellite missions and developed robotics and micro-rover technology for JAXA’s Hayabusa I and II sample-return missions. It is also a leader in planetary rovers and on-orbit robotics. SRL has developed several generations of prototype planetary rovers. SRL is also a leader in field robotics. Its notable achievements are collaborative R&D of the first Japanese robot operating in the Fukushima nuclear plant after the disaster and volcano exploration and observation robotic systems combining both ground vehicles and drones. The ispace rovers are the end result of over ten years of rover development. At SRL, up to twenty students and researchers are actively performing research for ispace’s Hakuto project. Funase Lab, University of Tokyo Dr. Funase is an associate Professor at University of Tokyo. He led the first small satellite deep space exploration mission (PROCYON) successfully, and his lab has been the leading lab in the field of cubesat and microsat in the world. He is advising ispace for development of deep space 22

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spacecraft for future mining mission. ispace and Funase-lab agreed a joint research contract for spacecraft design, and the lab assigned two top level graduate students for this joint research. Dr. Funase’s interest is a flexible transportation system from LEO/GTO to deep space. Other Partnerships ispace is also collaborating with several corporations, space agencies and governmental bodies. Do you feel the value in the potential resources that you could explore and excavate on the moon could transform the way we look at mineral exploration? Yes, of course Talk me through the goal of the three-phase mission? The 3 key steps of any space resource development activities are: 1) Transportation to the Moon or asteroids By minimizing and miniaturizing components, ispace is able to


MINING ON THE MOON AND BACK

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PROFILE

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accelerate the R&D process and offer frequent and low cost transportation service to the Moon. 2) Onsite prospecting of resources ispace’s current technology focuses on our innovative and light weight micro-rovers. The four-wheeled rover will be used in the Google Lunar XPRIZE and will be the key vehicle for conducting preliminary scouting missions. Our rovers will be used for the future swarm prospecting on the Moon. The micro-rovers will have the ability to host a number of scientific instruments to gather various types of data from the lunar surface. Big data analytics throughout exploration and prospecting missions will allow high fidelity mapping of the Moon at several locations to identify lunar hazards, precious volatiles, valuable minerals and suitable shelters. 3) Onsite resource extraction and processing From around 2024, ispace will set up an ISRU facility and begin testing lunar ice mining procedures at a small scale that can eventually be

sold to customers on the Moon. The long-term objective is to sell water extracted from the lunar surface as a fuel to customers in cis-lunar space and on the lunar surface. What is the dream outcome for the mission? To revolutionise the space transportation system The mission, phase has a 20182023 timeline, how is everything proceeding thus far? Still on time to deliver? We have begun our spacecraft/ lander development, which is set for operation from 2020. After 2021, we plan to land on the Moon on a monthly basis. Where do you want to see ispace and space mining in the next 1015 years? In 15 years, I would want to see a world where companies, organisations and agencies are buying and selling space resources. This might sound very optimistic, but I believe that startups like ispace can significantly shorten the timeline and realise this vision. 25


T O P 10

Top 10 speakers at MINING INDABA Last month, Investing in African Mining Indaba took place in Cape Town, South Africa. The conference is the World’s Largest Mining Investment Conference and the Largest Mining Event in Africa with around 90 speakers from across the industry. Here, Mining Global picks 10 speakers to look out for. Writ ten by: DALE BE NTON


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T O P 10

JOHN WELBORN Managing Director and CEO

SANDRA DU TOIT Head of Mining and Metals Standard Bank Sandra du Toit is the Head: Mining & Metals for Africa Corporate Finance at Standard Bank, Africa’s leading bank. Sandra started her career as an academic, lecturing on the subjects of company and tax law at the University of the Free State, before joining Johannesburg law firm Brink Cohen le Roux & Roodt. It was here that she became involved in the South African mining industry, working first on the labour side of the business, before moving on to the corporate and commercial end of practice, specialising in mergers and acquisitions. Sandra has been with Standard Bank for ten years, and focuses exclusively on corporate finance transactions in mining and metals in Africa. 28

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Resolute Mining John Welborn is an experienced senior executive in the resources industry. A former International Rugby Union player, Mr. Welborn was previously the Head of Specialised Lending in Western Australia for Investec Bank. As a Director and Chief Executive, he has been responsible for driving growth in resource companies including Prairie Mining Ltd, Papillion Resources Ltd, and Equatorial Resources Ltd. Joining Resolute in July 2015, Mr Welborn is a champion for responsible and sustainable mining development in West and Central Africa and was named by MiningMx as one of the 100 Most Influential People in Africa’s Mining Industry.


MINING INDABA

H.E. MOSEBENZI JOSEPH ZWANE Minister of Mineral Resources Republic of South Africa

XI XI Director Sailing Capital Ms Xi is a director at Sailing Capital. Ms Xi has more than 15 years’ experience in the mining, energy and natural resource industry, ranging from managing companies focused on international exploration and development of mining projects to restructuring and overseeing a portfolio of private and public companies. Ms Xi holds dual Bachelor of Science degrees in Chemical Engineering and Economics from the Colorado School of Mines and a Master of Arts in International Relations and China Studies from Johns Hopkins School of Advanced International Studies.

Born in Vrede in the Free State Province, Mr Mosebenzi Joseph Zwane is the member of the national parliament for the ruling African National Congress (ANC) and Minister of Mineral Resources of the Republic of South Africa since September 2015. He was also member of the Free State Provincial Legislature, wherein he served as a member of the provincial executive committee in the portfolios of Agriculture and Rural Development and Economic Development, Tourism and Environmental Affairs. Mr Zwane is currently provincial treasurer of the ANC and has previously represented the political party in various capacities in the Free State province, including as the regional chairperson of the Thabo Mofutsanyana. He also holds an educational qualification and a certificate in executive leadership.

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T O P 10

MARK BRISTOW CEO Randgold Resources Chief executive since the incorporation of Randgold, which was founded on his pioneering exploration work in West Africa. Has subsequently led the company’s growth through the discovery and development of world-class assets into a major gold 30

March 2017

mining business. Has also played a significant part in promoting the emergence of a sustainable mining industry in Africa. A geologist with a PhD from Natal University, South Africa, he has held board positions at a number of global mining companies and is non-executive chairman of Rockwell Resources International.


MINING INDABA

TOM ALBANESE CEO Vedanta Resources Tom was formerly the Chief Executive of Rio Tinto from May 2007 to January 2013. Rio Tinto is the second largest global diversified mining company. He was appointed a member of the Rio Tinto Board in March 2006. Tom joined Rio Tinto in 1993 when the company acquired Nerco, where Tom was Chief Operating Officer. After joining Rio Tinto, he held a series of management positions before being appointed Chief Executive of the Industrial Minerals group in 2000, after which

he became Chief Executive of the Copper group and head of Exploration in 2004. In July 2006 Tom was appointed Director, Group Resources. In 2009, Tom joined the Board of Visitors for the Fuqua School of Business at Duke University in North Carolina.  In 2010 Tom was elected to the American Mining Hall of Fame.  Tom holds a Bachelor’s degree in Mineral Economics and a Master’s in Mining Engineering from the University of Alaska. He is married to Mary and they have two daughters.  Tom Albanese is the CEO of Vedanta Resources plc, a leading global diversified resources company listed on the London Stock Exchange, with metals & mining, oil & gas and commercial power operations primarily in India & Africa. Tom is also the CEO of Sesa Sterlite Limited, a subsidiary of Vedanta Resources plc.  Tom is also on the Board of Directors of Franco Nevada Corporation which he joined in August 2013, a Toronto-based gold-focused royalty and metal streaming company with assets around the world. 31


T O P 10

JANE KORINEK Economist and Trade Policy Analyst Organisation of Economic Cooperation and Development (OECD)’s Trade and Agriculture Directorate Jane Korinek is an Economist and Trade Policy Analyst in the Organisation of Economic Cooperation and Development (OECD)’s Trade and Agriculture Directorate. She specializes in responding to needs of policy makers in the areas of trade and economic development policy. Her recent policy research has been in the areas of benefits of good regulation in the extractive industries, export restrictions on raw materials, impacts of regional trade agreements, trade effects of exchange rates, trade costs and shortterm trade finance. 32

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Former positions include Global Relations Advisor, OECD. Ms. Korinek holds an undergraduate degree in Economics from Duke University and graduate degree in International Economics from Stanford University. She has authored several publications related to Trade in Raw Materials.


MINING INDABA

RINKO KINOSHITA Deputy Representative, Burkina Faso UNICEF Ms. Rinko Kinoshita works as the Deputy Representative in UNICEF’s Country Office in Burkina Faso since June 2016. She started her career with UNICEF in 2006 as the Planning Specialist for UNICEF’s office in Kinshasa, the Democratic Republic of Congo (DRC). In 2008 she transferred to the UNICEF’s Eastern Zonal Office in Goma, DRC, as the Planning, Monitoring and Evaluation Specialist. Between 2009 and 2012, she worked with UNICEF HQs in New York City as the Knowledge Management Specialist. She was the global administrator for UNICEF’s database of lessons learned, good practices and innovations and provided technical supports to many country

and regional offices to document and share their experiences. Prior to UNICEF, she worked with a NGO Save the Children (“Saving Newborn Lives Initiative”) where she conducted a qualitative research with traditional birth attendants in rural Malawi. She holds a BSc in Nursing and Midwifery and worked in the largest maternity hospital in Tokyo for five years, where she was a catalyst in promoting natural childbirths. In 2003, she obtained a Masters’ degree in Public Health (International Maternal and Child Health) with the University of North Carolina at Chapel Hill, USA as a Rotary Ambassadorial Scholar. In 2014 she completed her second Masters’ degree in Social Epidemiology with London School of Hygiene and Tropical Medicine, UK. Currently she pursues her PhD degree in Community health with University of the Western Cape in South Africa. She speaks Japanese, English, French and Spanish fluently, with basic knowledge in Lingala, a native language for the Western side of the DRC. 33


T O P 10

PETER MAJOR Head of Mining Cadiz Corporate Solutions Peter Major was born in Vancouver, British Columbia on 16 May 1955. His family moved to Kellogg, Idaho, the ‘silver mining capital of the world’ in 1961, where Peter grew up and worked through 1981. Peter graduated from Montana School of Mines in 1981 and came to South Africa in Jan 1982 to work for Harmony Gold Mine. He completed his South African Mine Manager’s Certificate, an MBA from UCT and thereafter worked as a consultant and as Marketing Manager for Eimco Mining Machinery SA. Peter began his investment career with Allan Gray in 1989 as a gold mine analyst. He then spent 10 years as mining analyst & fund manager at Nedcor Investment Bank where he was won 3 Raging Bull Awards and was Top Fund Manager 2 different years and Runner Up 1 year. In 2001 as CIO he set up HBD Asset Management with Mark 34

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Shuttleworth, with assets of $530m growing to $1.5bn by 2005. In 2006 Peter joined Cadiz where he focuses on Private Equity, Capital Raising and M & A activity in the Mining & Resources sector. Peter Major was born in Vancouver BC in 1955, moved to Kellogg Idaho, the Silver Capital of the World in 1961. For the next 20 years, most of his schooling and work life was based in the Silver Valley except for university. Peter graduated from Montana School of Mines in 1981 and came to South Africa in Jan 1982 to work for Harmony Gold Mine. He completed his South African Mine Manager’s Certificate, an MBA from UCT and thereafter worked as a consultant and as Marketing Manager for Eimco Mining Machinery S.A. Peter began his investment career with Allan Gray for 2 years in 1989 as a gold mine analyst. He then spent 10 years as senior fund manager & mining analyst at Nedcor Investment Bank. In 2006 Peter joined Cadiz where he focuses on private Equity, Capital Raising and M&A activity in the Mining & Resources sector.


MINING INDABA

GODFREY OLIPHANT Deputy Minister Department of Mineral Resources Mr. Godfrey Oliphant was sworn in as Deputy Minister of Mineral Resources on 1 November 2010. Mr. Oliphant was born in Warrenton; a small town situated 70km on the north-western side of Kimberley, in the Northern Cape. He attended his primary school education at Warrenton and completed his Matric at Huhudi High School at Ganyesa in the Vryburg area of the North-West Province. He later pursued further studies in Economics and still enjoys reading and running. He became a Member of the first democratic Parliament in 1994 representing the ANC in the National Assembly. He was also a Member of the Portfolio Committee on Mineral and Energy, the Governance Committee and later became Chairperson of the ANC Chairpersons’ of Study Groups. He travelled extensively around the world as a trade union representative and later as a Member of Parliament (MP).

For more information on the conference, visit the website: www.miningindaba.com

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A cut above:

Debswana Diamonds

and the diamond industry of Botswana Debswana Mining Company is deeply embedded in the diamond mining industry of Botswana and as the company looks to the future, we speak with the Head of Ore Processing on strategic development and growth of the company Written by Dale Benton


D E B S WA N A D I A M O N D C O M PA N Y

“F

or our people, every diamond purchase represents food on the table; better living conditions; better healthcare; potable and safe drinking water; more roads to connect our remote communities; and much more.” Those were the words of Festus Mogae, Former President of Botswana, speaking in 2006. The diamond industry in Botswana is flourishing, with the industry accounting for a large portion of the country’s revenue. Debswana Mining Company is a key player on that front. As the largest private sector employer in Botswana, with over 5,000 permanent employees and at least 5,000 contractors; with four major diamond processing plants across Orapa, Letlhakane, and Damtshaa Mines (OLDM) and Jwaneng Mine, Debswana has been a major contributor to the economic growth of the country since its inception in 1967. While the history of the company runs deep within the history of Botswana, the company now faces the future, with major plant expansions

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and technological innovation next on the agenda to continue to lead the way in diamond processing. “Some of our assets are old, some over 45 years, so right now Debswana is looking at what our future strategy will be with regards to future expansions and building new plants,” says Edwin Elias, Head of Ore Processing. “It’s about thinking what the approach will be in our quest towards being global benchmark diamond processing business unit, the methodology, the technology acquisition and development we have to deploy. Our plants of the future will be very different from our existing plants that were built some 45 years ago,” Strategic development As a metallurgist by profession, Elias has been with Debswana and De beers Group of Companies for at least 15 years. Through development programmes, both technical and managerial, Elias has been able to move up through the organisation to a more senior executive level. It is


MINING

Overview of the Jwaneng Plants

w w w. d e b s w a n a . c o m

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D E B S WA N A D I A M O N D C O M PA N Y

Edwin Elias, Head of Ore Processing

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MINING

OUR PLANTS OF THE FUTURE will be very different from our existing plants that were built some 45 years ago – Edwin Elias, Head of Ore Processing

this development that places him in good stead when it comes to strategic development of the company. In his role as Head of Ore processing, Elias has to ensure that he can provide the overall strategic direction and technical leadership for the process engineering discipline

across all Debswana operations, one that should align with the overall direction of the shareholders, De Beers’s group of companies and the Government of Botswana. “One of the things I have to ensure that I provide is the overall technical guidance and assurance

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WWW.ADPGROUP.COM

YOUR SCREENING AND FEEDING SPECIALIST SINCE 1976

ENGINEERED FOR TONNAGE

(Previously JOEST)

A proud supplier to Debswana Diamond Company Kwatani (Pty) Ltd South Africa | +27 11 923 9000 | sales@kwatani.co.za | www.kwatani.co.za


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to the business, so we can be assured that plants are being operated in an effective and efficient manner,” he says. “But I must take notice of the high level strategic view of the bigger group, what is De Beers looking for; what is Debswana looking for; so that at the end of the day whatever initiatives we come up with, will be in alignment with the company’s high level strategic objectives and will be able to maximize shareholders value.” In the modern technologically savvy world, innovation can play a key role in determining the success of a business, none more so than Debswana. With assets as old as 45 years, now is the time for integrating new technologies to continue to run the most efficient and cost effective

diamond operation. But it is not a case of simply choosing a new technology and seeing what sticks, for Elias and Debswana it is a strategic process of envisioning solutions of today that will satisfy future requirements. “We look at the challenges that we currently have, specifically technology and how technologies are evolving. There’s also the impacts an expansion may have on infrastructure and how we may need to replace that infrastructure,” he says. Through this process, it presents an opportunity to embrace new technologies. Elias believes that when looking at the impacts on infrastructure, it’s an opportunity to no longer think of replacing it or modifying it in a “like for like” situation. Elias can consider technology solutions that could allow the plants to operate in a safer and more cost effective way. Mitigating risk With adopting any new technology there is an inescapable element of risk. This is true of any industry and Elias believes as much. Over the last 12 months, Debswana has

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D E B S WA N A D I A M O N D C O M PA N Y

Debswana_Orapa

conducted a pilot test for a crushing technology application, known as vertical spindle impact crusher (VSIC) that is more cost effective, easy to maintain and operate. For Debswana, this was unchartered waters. “With any new technology, we either conduct a technical investigation or do a pilot test. Over a period of time we conduct analysis on the technology to assure ourselves that it

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will not damage the product, its cost effective and more importantly – it is safe to use and operate,” says Elias. Only once this extensive pilot testing is complete will Debswana make a decision as to whether it will be integrated into the wider operations. Elias is one of many people who have benefited from a strong development programme in place at Debswana and it doesn’t stop there. Debswana has a keen focus on localisation, supporting the local


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community and providing jobs and industry wherever it operates. “We are close to 95 percent in terms of localised employees,” says Elias. But this does not rule out the need for expats where necessary and Debswana takes into account that in any discipline where expats are needed, the company develops a localisation plan with the aim of transferring the technical skills to locals. This mandate expands further into local business – Debswana takes into account the amount of investment in both local and foreign based businesses, particularly with regards to supply chain. “When it comes to local businesses, we are always looking for opportunities to promote partnerships with these local companies and we support, promote and advise them,” he says. This falls under a wider Corporate Social Investment (CSI) strategy at Debswana. The strategy sees Debswana promise to engage

Every single day, one needs to think about what kind of technologies will be the best for our country, and how we can better develop the skills of employees and those in the communities.

This is something I believe we can achieve greatly within Debswana

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– Edwin Elias, Head of Ore Processing

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Industrial Chemical Solutions Metswako Chemicals is an empowered subsidiary of Chemical Initiatives (Pty) Ltd, Botswana. Metswako is able to provide an all-inclusive chemical management service to mines, industries and municipalities. Our services include chemical procurement and logistics management for an extensive range of chemicals, mineral processing and water treatment applications.

Learn More About Our Services Online:

www.cheminit.co.za

Metswako Chemicals (Pty) Ltd (A subsidiary of Chemical Initiatives (Pty) Ltd) KPMG Management Services Plot 50364B Fairgrounds Office, Gaborone, Botswana P: + 267 588 4380 E: TBadisang@debswana.bw

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March 2017


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with local communities and support those communities through anyway possible. “Debswana has a strategy and a plan so that in all operations and day to day business, we identify where and how we can support local communities. That could be building a new school, a community hall or even a new room at a local hospital. All of these plans are identified in our overall Corporate Social Investment (CSI) plan,” says Elias. Safety in numbers With the current focus on integrating new technologies and plant expansions, the health, safety and wellbeing of the company’s employees remains at the heart of everything Debswana does. “One of our mandates as a company is that we strive to achieve zero harm and everything we do, we work hard to take into consideration the safety of our employees,” says Elias. Debswana’s Safety Risk Management Programme is designed to educate employees and contractors

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to identify hazards, assess and manage risks better. But for Elias, it doesn’t start and finish with the employees. Debswana has a proud safety leadership culture. “We make sure we have good safety management programmes, but we also educate our leaders in order to provide the necessary safety leadership competencies required,” he says. “One of the things we promote is a culture of visible felt-leadership (VFL), where leaders, myself, or employees can walk through the operations and mines and identify risks and potential hazards long before they can become a problem. We then create strategies and initiatives around that.”


D E B S WA N A D I A M O N D C O M PA N Y

“Debswana has a strategy and a plan so that in all operations and day to day business, we identify where and how we can support local communities. That could be building a new school, a community hall or even a new room at a local hospital” – Edwin Elias, Head of Ore Processing The power in partnerships As a Joint Venture (J.V) Debswana has established strong working partnerships that support and develop the growth of the business. The main partners within Ore Processing include De Beers Technologies (DebTech), which focuses on the research and development of technologies based on challenges and future improvements in the diamond operations. Debswana also works closely with ThyssenKrupp, Metso Minerals and IMS for its crushers, in which the companies provides maintenance, support and training in order to safely maintain and operate the crushers. “The key thing from all of our

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partners has been the guidance and technical support in our operations that really allows us to gain true value in the overall product,” says Elias. With over 45 years’ experience and operating hand in hand with the growth of the Botswana diamond industry, where next for Debswana? The company is currently piloting a large diamond recovery plant and following a successful pilot period, will look to integrate this plant into the wider business. For Elias, wherever the future takes both him and Debswana, he will take great pride in the impact that the company has and will continue to have on the life’s of Botswana.


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“What really excites me is the impact my role has in the company, which in turn impacts the nation overall,” he says. “Every single day, one needs to think about what kind of technologies

will be the best for our country, and how we can better develop the skills of our employees and those within the communities. This is something I believe we can achieve greatly within Debswana.”

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SKORPION ZINC: a Namibian flagship Written by Tom Wadlow Produced by Richard Deane


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S K O R P I O N M I N I N G C O M PA N Y

One of the world’s most important sources of high quality zinc, Skorpion Mining Company, part of Vedanta, is taking mining operations at the site to the

next level

A

round 25 kilometres north of the town of Rosh Pinah in southern Namibia lies the eighth largest zinc mine in the world. Producing 1.5 Mtpa of oxide ore and with a nameplate capacity of 150,000 tpa of refined zinc, Skorpion Zinc is without doubt a flagship asset for the country’s mining industry. Comprising an open-pit mine and refinery, the operation provides crucial

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employment for the region, with 1,500 people making sure that the Special High Grade zinc produced is of the finest possible standard. Of this 1,500strong workforce, 800 are directly employed and 700 are contractors but, crucially, 96 percent are Namibians. Led by rising star Irvinne Simataa as General Manager since December 2015, plans are afoot to extend the life of the mine to 2020 and


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1500 Number of employees at Skorpion Mining Company

possibly beyond. Simataa’s rise in the industry is an impressive and rapid one, for when he graduated in Mining Engineering in 2005 Skorpion had already been in production for more than a year. In 2010, operations passed from Anglo American to Vedanta Resources in a deal worth $707 million, and one which places Vedanta among the most prolific global producers of zinc. New lease of life And it is yet more zinc that Skorpion is looking

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Aveng Grinaker-LTA Mechanical & Electrical

Aveng Grinaker-LTA’s Mechanical & Electrical business unit provides fabrication, construction, maintenance and shutdown services to clients in the mining, oil and gas and power industries. These services are provided across the following disciplines: structural steel, mechanical, electrical, instrumentation, piping and plate work. Aveng Grinaker-LTA have provided construction and maintenance services to Skorpion Zinc since 2000 and is proud to be associated with Skorpion Zinc and Vedanta. Aveng Grinaker-LTA is an operating group of Aveng.

Address: Aveng Park, 1 Jurgens Street, corner Jet Park Road, Jet Park, Boksburg, 1459, South Africa | Tel: 011 923 5000 www.aveng.co.za

‘Led by rising star Irvinne Simataa as General Manager since December 2015, plans are afoot to extend the life of the mine to 2020 and possibly beyond’ 54

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to produce and refine in the coming years. A project is underway to mine waste rock and expand the existing open pit, extending the life of the mine until at least 2020. To carry out the work in an economical timeframe, Skorpion Zinc has brought in expert contractors and equipment, with up to 450 jobs being created in the process. Existing Skorpion workers are also likely to be given preference in the recruiting process. These expansion plans look set to maximise the potential of what is widely regarded as one of the industry’s finest examples of zinc ore. The supergene zinc ore body is composed of alluvial accumulations of zinc carbonate and detrital silicate materials deposited within a paleochannel, making it a rare and sought after deposit. Another sought-after set of products mined at Skorpion comprise zinc oxides, namely smithsonite, hydrozincite, tarbuttite and willemite. In terms of quality processes, Skorpion’s operations involve solvent extractionelectrowinning metallurgy to process and refine zinc products, the only refinery of its kind to do so. Gamsberg Further afield, Skorpion Zinc could be joining forces with operations at a similar deposit of zinc in South Africa. The Gamsberg opencast mine is located

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S K O R P I O N M I N I N G C O M PA N Y

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20 kilometres east of the town of Aggeneys in the Northern Cape, and is one of the largest known, unexploited deposits of zinc in the world. While the grade of zinc is relatively low (between six and 6.5 percent), the current reserve and resource sits at 214 million tonnes, which translates into an estimated mine life of 30 years. To fully exploit this, further drilling will be required to prove additional reserves. Vedanta has awarded a contract to develop the mine at Gamsberg to Aveng Moolmans, with production expected to begin in 2018 and lasting around 13 years. The project is expected to employ 850900 people when operational. A total of 50 million bank cubic metres of waste and ore is expected to be mined in the first 44-month period, with at least some of the sulphide zinc concentrate being trucked over to the refinery at Skorpion. A decision on whether to build a standalone refinery at Gamsberg will not be considered until phase one is completed, meaning Skorpion has a vital role to play in the initial production process.

This is not the first involvement of Aveng in the Skorpion project. Back in 2003, the company built the original sulphuric acid plant, producing two types of acid industrial and chemically pure. The waste heat generated from the acid plant is used to produce steam and keep the Skorpion refinery at optimum temperature. There are also two 14MW electrode boilers to produce steam if the acid plant is down at any time. Giving back As well as proving to be a substantial employer for the Rosh Pinah region and beyond, Vedanta and Skorpion Zinc are giving back to the community in other ways. The Skorpion Zinc Karas Goat Project aims to boost the economic emancipation of rural people in Namibia. The project, which started in March 2012, aims to contribute towards poverty eradication in Namibia by affording rural, underprivileged families a sustainable entrepreneurial opportunity to improve their livelihoods

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‘In 2010, operations passed from Anglo American to Vedanta Resources in a deal worth $707 million, and one which places Vedanta among the most prolific global producers of zinc’

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through goat farming. More than 60 percent of the beneficiaries of the project are women, a deliberate intervention to assist women-headed households in rural Namibia. Healthcare is another area in which Skorpion has invested heavily for Rosh Pinah. To help accommodate the rapid growth of the town, the company invested more than N$4 million in the upgrade of the Rosh Pinah State Clinic and construction of a satellite facility at nearby Tutungeni. Completed in 2012, this new development replaced a

system which only saw visiting doctors come to the area twice a month. By continuing to expand operations, employ locals and give back to the communities in which it serves, Skorpion Zinc and Vedanta will strengthen its legacy in Namibia and South Africa, making it a global capital for the production of zinc.

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CHAMBER OF MINES OF NAMIBIA (CoM) Article supplied by CoM


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The Chamber of Mines of Namibia (CoM) was officially inaugurated on 9 May 1969 by some 19 mining and exploration companies at the Windhoek Grand Hotel, with an official constitution which was adopted ten years later

T

he Chamber of Mines of Namibia (CoM) was officially inaugurated on 9 May 1969 by some 19 mining and exploration companies at the Windhoek Grand Hotel, with an official constitution which was adopted ten years later. The organisation was established with the sole mandate to protect the interests of its members while promoting sustainable growth of mining and exploration so as to maximise economic gain for the Namibian

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nation. The mission of the CoM is to “efficiently promote, encourage, protect, foster and contribute to the growth of responsible exploration and mining in Namibia to the benefit of the Country and all stakeholders.� The CoM is a self-regulating body which is governed by a robust Constitution and Code of Conduct and Ethics that outlines a prudent set of rules and regulations with which members are prescribed to comply and yields the organisation authority to expel members which are


non-compliant. The Code of Conduct and Ethics also encompasses environment, labour and industrial relations, safety and intellectual property rights standards to name a few, which members are compelled to adhere to. The organisation also plays a vital role in shaping and influencing the National policy and the regulatory framework within which the mining sector operates. Ensuring that Namibia remains an attractive and favourable destination for investment in the mining sector is one of the key functions of the CoM. In the 2014 Fraser Institute Survey of Mining companies report, Namibia was ranked as the most attractive destination for mining in Africa with regard to its regulatory framework and mineral endowment. The CoM in partnership with the Government of Namibia strive to sustain and maintain Namibia’s top status as a sought after destination for investment into mining as both parties recognise and acknowledge this sector to be the backbone of the Namibian economy.

“In the 2014 Fraser Institute Survey of Mining companies report, Namibia was ranked as the most attractive destination for mining in Africa with regard to its regulatory framework and mineral endowment”

Namibia’s favourable investment is not only reflected in international bench marking reports, but more importantly in the very growth of the mining sector recorded during the last five years. Notwithstanding a depressed and uncertain global macro-economic environment, Namibia has attracted an impressive US$ 3 billion worth of investment into the local mining sector during the period in question. This has ultimately lead to the development of three new mines and the creation of

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CHAMBER OF MINES OF NAMIBIA (COM)

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approximately 2,000 new permanent jobs. The country is set to become the world’s second largest uranium producer as Swakop Uranium’s Husab mine gears for first production in the last quarter of 2016 and ramps to full production by end of 2017. New production from B2Gold’s Otjikoto gold mine trebled Namibia’s gold output in 2015, and Weatherly’s Tschudi mine began producing copper cathode in February 2015, paving the way for other manufacturing opportunities in Namibia. This is not to mention various reinvestments made by the sector, one of the most recent being a

diamond exploration vessel constructed at a cost of US$139 million which is owned by Debmarine Namibia. The Namibian mining sector is governed largely by two pieces of legislation, the Minerals (Prospecting and Mining) Act of 1992, which is currently under review and the Diamond Act of 1999. Benefits to Chamber membership are numerous, but of the most important is the advocacy that the CoM provides, an organisation which recognises the importance of mining in achieving socioeconomic development and thus strives towards the best possible outcomes for the mining sector and the country at large, while ensuring that these are achieved according to industry best practices and in a manner which is environmentally and economically sustainable.

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A ROCK-SOLID PRESENCE IN THE AMERICAS

SANDVIK MINING AND ROCK TECHNOLOGY’S PRODUCTS AND SERVICES PORTFOLIO KEEPS GROWING BY OFFERING HIGHLY PRODUCTIVE, SUSTAINABLE SOLUTIONS


Written by Mateo Rafael Tablado Produced by Taybele Piven


SANDVIK MINING AND ROCK TECHNOLOGY

T

he Sandvik group was founded in Sweden in 1862, when it began manufacturing machinery, high-tech instruments and high resistance specialty materials. Sandvik’s presence in Latin America dates back to the 1960s, and recently

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celebrated 60 years of presence in Chile, the largest copper producer in the world. In addition to the Chilean market, Sandvik also has a direct presence in Argentina, Brazil, Colombia, and 2017 marks its 50th anniversary since first arriving to Peru,


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another major mineral producer in Latin America. The group’s products are available in other countries through a distributing network. Andres Costa graduated in Chemical Civil Engineering from the Catholic University of Santiago

of Chile, and afterwards earned an MBA from The Catholic University of Chile. He has spent the last 20 years working in the mining sector in areas such as engineering, manufacturing, and trading; honing his skills in companies such as Weir Minerals

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(both in Chile and in the US). In July 2015 he joined Sandvik, becoming the Area Sales Manager for the Southern Cone. In May 2016 he was appointed Vice President for South America. “Sandvik always reacts according to market needs, thus is constantly able to meet customer needs,” says Costa, Vice-President of Sandvik Mining and Rock Technology South America.

The founding of Sandvik Mining and Rock Technology Sandvik underwent a comprehensive restructuring a few months ago following the merger of Sandvik Mining and Sandvik Construction. Sandvik Mining and Rock Technology was hence created. Amalgamating mining and construction as a single business area has made for a lighter and much more efficient structure that’s able to quickly respond to customer needs. Sandvik Mining and Rock Technology provides equipment, tools, services and technical solutions for mining and construction. Areas of application that benefit from the company’s services include drilling and rock cutting, crushing and sorting, loading and hauling, quarrying and demolition operations.

ADVERT

A single Sandvik business division for all of the Andean countries will bring positive results to our clients – Andrés Costa, Vice President for Sandvik Mining and Rock Technology South America

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Presence and dedicated service In addition to having sales offices in the countries where it is present, Sandvik Mining and Rock Technology has its own major repair shops in Chile, Peru and Argentina. Along with a broad portfolio of construction and mining machinery


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SANDVIK MINING AND ROCK TECHNOLOGY

and equipment, the company offers all existing sales formats on the market: leasing, financing, operational leasing, machinery leasing, sales and can even provide detailed and dedicated maintenance contract services. Sandvik’s specialized personnel can perform onsite repairs and maintenance work or may also be contracted to service the

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machinery on a regular basis. Its logistics and warehouses network allows for efficient supply of spare parts and consumables. Innovation and momentum in fertile ground Sandvik invests large sums every year into Research and Development, which employs 2,700 people


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throughout 60 research centers worldwide. The company has more than 8,000 active patents, placing it on Forbes’s list of 100 most innovative companies in the world. Products must be developed with Latin America’s particular natural environment, its altitude, terrain, rock types and size of mineral deposits in mind.

“Our clients’ reality is the source of this innovation. We are on the verge of launching a line of equipment able to triumph over the extreme conditions,” explains Costa. A world leader in technology and automation Sandvik creates and offers teleremote, semi-autonomous or fully

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SANDVIK MINING AND ROCK TECHNOLOGY

812, 5th Floor THE BEST Huérfanos Santiago, Chile PARTNERSHIP IN Phone: (56 2) 26377000 INTERNATIONAL agencia@browne.cl BUSINESS EL MEJOR Huérfanos 812, Piso 5 COMPLEMENTO DE Santiago, Chile SUS NEGOCIOS Fono: (56 2) 26377000 agencia@browne.cl INTERNACIONALES

www.browne.cl


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800

Number of employees at Sandvik Mining and Rock Technology

autonomous configuration and operation of underground loading and transport equipment, as well as surface and underground drilling rigs. Mining processes carried out with Sandvik machinery and equipment not only increase productivity but also meet safety standards. Hallmark to this team is its catch, collection and data processing capacity. Most recently, the Sandvik DD422iE mining jumbo was launched, which operates with electricity, thus avoiding the use of fossil fuels. Meanwhile, the successful and widely popular Sandvik Optimine system focuses on four key areas: monitoring, scheduling, location and tracking, and task management.

Sandvik Mining has strengthened its aftermarket business, offering its mining customers comprehensive service packages, spare parts and components. The company offers four service programs that cover the full cycle of a grinding and sorting plant from startup. These services increase production and maximize the profitability of each operation:

After-market services among our strengths

• Grinding plant start-up • Inspection services • Maintenance planning services • Protective Services: of maintenance planning program, including spare parts warranty and process optimization

These services optimize work

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Ing. Andrés Costa Vice President for Sandvik Mining and Rock Technology South America

times and ensure that each piece of equipment delivers its longest and most productive life cycle. “In early 2016 we launched the Sandvik 365 in the area. It encapsulates different products, goods and services that allow you to extend the equipment’s lifespan. I’m happy to say that it has been very successful,” adds Costa. Alliances: Schenk Process and Getman To strengthen and complete the range

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of services and products offered by Sandvik Mining, the company has partnered with specialized companies such as Schenk Process and the Getman Corporation. The partnership with Schenk Process provides increased crushing circuit productivity for Schenck Process single and double banana screens and Sandvik cone crushers. Meanwhile, the Getman alliance widens the range of available underground mining equipment, especially for underground drilling


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and rock support processes. Suppliers: extending the company’s principles Sandvik Mining extends its governing principles to its suppliers. Compliance with labor, fiscal, environmental and safety regulations is thoroughly monitored. “Our suppliers are an integral part of our processes. We feel responsible for them,” explains Costa. Sandvik always offers its suppliers support, maintains open lines

of communication, and looks to establish long-term relationships. “We have had many successful experiences in Argentina in terms of local developments. We have developed local suppliers able to distribute to other regions,” Costa continues. Specialist training Sandvik Mining offers two-year apprenticeship programs to ensure a highly capable technical staff. Significant investments are

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made in this area as all markets where the company operates have a training center. 2017 will debut a similar oneyear program open to university students. Those who complete the program will be titled Specialized Operations Supervisors. The Sandvik sales force is likewise extensively trained; they are sent to manufacturing units in Finland, Sweden, India, China and Australia to acquire a thorough knowledge of each piece of equipment and its attributes.

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Sustainability: efforts that bear fruit Sandvik Mining’s constant innovation and development of increasingly safe and environmentally friendly machinery has put the company on the Dow Jones Sustainability Index, the FTSE4Good Index Series and in RobecoSAM’s The Sustainability Yearbook, to name a few. These positive indicators are the result of the trend toward decreased use of fossil fuels, creating equipment kinetically able


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to self-generate part of the energy it consumes, and favoring the use of batteries and electric charges. Moreover, the Tungsteno Carbide Recycling Program, created by Sandvik, also manufactures drilling and cutting tools from recycled materials, thus using 70 percent less energy and 40 percent less carbon dioxide then when manufacturing from virgin raw materials. Facing the future Due to changing market and mining cycles, Sandvik and the rest of the industry face a time when efforts need to be redirected towards innovation, cost efficiency and productivity. To meet this need, the company has successfully managed to give priority and resources to the

development and optimization of the aftermarket as a business unit. While advancing by leaps and bounds in this regard, Sandvik Mining also looks to further its global reach: “We are looking to develop mining projects in Ecuador, are developing a distribution network in Bolivia, and have distributors in Uruguay. We are constantly adapting to market needs,” adds Costa. A new service center is scheduled to open in Calama, northern Chile, focused on equipment and machinery repair and reconstruction, responding to the ever developing underground mining projects in the area. “Having a single Sandvik for all the Andean countries will generate positive changes for our clients,” Costa concludes.

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Profile for Mining Global

Mining Global - March 2017  

Mining Global - March 2017