Mining Global - July 2014

www.miningglobal.com

July 2014

Mine Site Closure & Reclamation at Goldcorp Best Project Management Software for Miners TOP 10: Global Junior Mining Companies

How Anglo American Manages Community Relations EUROMINES CAPITALISES ON CONTINENTAL PROMISE

IN THIS ISSUE

“You must be the change you wish to see in the world.”

8 Operations

– Mahatma Gandi AS CUSTODIANS OF MUCH of the world’s mineral

Machinery

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Technology Mines

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EDITOR’S COMMENT

resources, the mining industry has a responsibility to ensure that the benefits of mining can be seen and felt by the countries in which they operate.

In the July edition of Mining Global, we go inside how Anglo American manages community relations and what the company is doing to engage with local communities to improve the overall success of mining activities worldwide.

Also this month: we discuss the most innovative underground mining machines in the industry today; the top 10 junior mining companies taking 2014 by storm; and the most cost-effective and reliable project management software for mining companies.

Lastly, we spoke with Goldcorp about its Corporate Social Responsibility Plan and how the company is working to improve mine site closure and reclamation protocols.

Enjoy the issue and be the change you wish to see in the world.

Top 10

40 Robert Spence Editor robert.spence@wdmgroup.com 3

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C o n te n ts

FEATURES

This month focus: the reclamation after mine closures and the the latest undeground mining equipment

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14 Machinery The Latest Innovations in Underground Mining Equipment

Operations Mine Site Closure and Reclamation at Goldcorp

Top 10

Global Junior Mining Companies

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Technology

The Best Project Management Software for Miners

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Mining Sites How Anglo American manages Community Relations 5

CONTENTS

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50

Colt Resources

Euromines Association

COMPANY PROFILES We take a look at some great companies that operate in the mining sector, take a look at Palabora Mining on p.84

EUROPE

132 Nexans Chile

50 Association: Euromines

148 CĂ­a. Minera Pangea (McEwen Mining)

60 Colt Resources

AFRICA 70 Kirloskar Oil Engines Ltd 84 Palabora Mining 100 Mintails USA 110 Discovery Metals

LATIN AMERICA

CANADA 158 Aura Minerals

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Kirloskar Oil Engines Ltd

AUSTRALIA 166 Northern Iron Limited 176 RMA Automotive 184 The Anitua Group

124 International Copper Association

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July 2014

132

Nexans Chile

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Palabora Mining

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Mintails USA

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CĂ­a. Minera Pangea (McEwen Mining)

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184 The Anitua Group

International Copper Association

110 Discovery Metals

166

Northen Iron

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O P E R AT I O N S

Mine Site Closure and Reclamation at Goldcorp Mining is a dirty job but mine reclamation shouldn’t be. We speak to Goldcorp about its Corporate Social Responsibility Plan and sustainable development objectives W r i t t e n b y: R O B E R T S P E N C E

Goldcorp is committed to developing, operating and closing its properties in a sustainable manner

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O P E R AT I O N S MINE SITE CLOSURE and reclamation is critical element of mining and requires an immense amount of planning, design, and implementation for success. Because a mine begins to close the day it opens, decisions are made before, during and after the life of the mine to develop the best, and most costeffective, way of closing a site and bringing the landscape back to life.

On the forefront of mine closure and reclamation is Goldcorp. The Canadian company has built a solid reputation by implementing policies that consider its Corporate Social Responsibility Plan as well as its sustainable development objectives.

When closing a site, Goldcorp strives to aid local communities in Land reclamation

bringing the transition from mine operations to post mining, and to plan for the socio-economic challenges that may result from the termination of mine operations.

Understanding the process From the earliest stage of a mine’s lifecycle, Goldcorp plans to open and close the mine in the most feasible and responsible way. All of the company’s operations have closure plans in place, designed to prevent long term adverse impacts on the environment and the surrounding communities.

These plans are reviewed annually to ensure they remain current and reflect any changes that may have occurred over the previous 12 months.

Because each mine site is different, each closure plan is unique in its own way, customized for the community and surrounding area it’s located in.

The company is committed to closing mines in a sustainable manner. The goal is to establish healthy ecosystems, a productive land use, and sustainable socioeconomic conditions following the closure of a mine.

To do so, Goldcorp works with communities and collaborates during 10

July 2014

M I N E S I T E C L O S U R E A N D R E C L A M AT I O N AT G O L D C O R P

‘The goal is to establish healthy ecosystems, a productive land use, and sustainable socio-economic conditions following the closure of a mine’ the life of the mine to identify and support community development projects that are sustainable, have community ownership, and can be run independently of the mine in the long term. The company works to remediate damaged lands from mining operations and has invested substantial funds into transforming closed mine sites into flourishing habitat for both local communities and wildlife.

A prime example can be seen at Goldcorp’s Porcupine mine located in Ontario, Canada. The award-winning reclamation project

included the use of biosolids as a cover and wild grasses to promote a self-sustaining environment.

This in return attracted wildlife, including several black bears and the increased number of bee colonies, spawning a local honey industry.

Responsible mining Goldcorp’s Corporate Social Responsibility (CSR) team is responsible for improving the consistency and effectiveness of its activities, while remaining sensitive to the unique aspects of each area’s social, political, economic, and 11

O P E R AT I O N S cultural environment, The company’s CSR objective is to apply this policy framework across all of its organizations, and to expand and improve on it as it applies to each individual program or initiative.

Examples of Goldcorp’s CSR plan in place can be seen at its former San Martin mine in Honduras. What used to be a mining camp is now the San Martin Ecology Center, a 31-room, eco-tourism themed hotel with a restaurant, swimming pool and Goldcorp’s San Martin Mine in Honduras is an example of responsible, sustainable development at each stage of the mining life cycle

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July 2014

other amenities that provide citizens of the area with lasting economic benefits and self-sufficiency.

The reclaimed site is also thriving with agri-businesses. Goldcorp has supported the hiring and training of local people in chicken and hog farming, growing of lemons, oranges and mangos, as well as indigenous plants that are a source of biofuel. In addition, farmers are now cultivating biofuel seed crops to widen the circle of sustainability for generations to come.

Sustainable development plans Goldcorp is also involved in a wide range of sustainable development plans. The company is committed to making a positive difference in the communities in which it operates.

Through economic contributions, community involvement, community consultation, support of health and education, and the sponsorship of special events, Goldcorp is making an enormous difference in the lives of people and communities around the world.

At the company’s Marlin mine in Guatemala, the company collaborated with the Citizen’s Development Corps

M I N E S I T E C L O S U R E A N D R E C L A M AT I O N AT G O L D C O R P

‘Although mining is a dirty job requiring massive amounts of land to be disrupted, Goldcorp is a prime example of how companies can actually improve the surrounding areas as well as helping to bring a better future for local communities’

to create the Fundación Sierra Madre.

The mission of the foundation is to initiate and implement sustainable, community-based development and capacity-building programs in the municipalities of San Miguel Ixtahuacán and Sipacapa.

Managed and staffed by Guatemalans, the foundation has become an important part of the local community. The foundation has also involved a variety of infrastructure development including; more than

100 construction projects including schools, computer labs and recreation halls; medical centers and equipment; vocational classrooms for electrical and automotive training; as well as daycare facilities.

Although mining is a dirty job requiring massive amounts of land to be disrupted, Goldcorp is a prime example of how companies can actually improve the surrounding areas as well as helping to bring a better future for local communities.

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M A C H I N E RY

The latest innovations in und From Atlas Copco to Sandvik, JOY to Caterpillar we take a look at the greatest underground mining machines in the industry today and speak to the engineers behind the scenes Writ ten by: ROBE RT SPE N C E

derground mining equipment THE MINING INDUSTRY is overflowing with radical equipment.

Companies like Caterpillar and Atlas Copco have launched some of the most technologically-advanced machinery in recent years and the pace isn’t slowing down. Equipment is becoming smarter, faster, and safer,

helping mining companies improve productivity while keeping operating costs at a minimum.

We spoke with the industry’s leading equipment manufacturers and the engineers behind their newest inventions to find out what the mining industry can expect in the future.

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M A C H I N E RY CATERPILLAR Caterpillar Inc. is the grand-daddy of manufacturing excellence. The American corporation, which designs, manufactures, markets and sells machinery and engines for the construction and mining industry, is the king of innovation. The company produces some of the most respected and reliable equipment the mining industry has to offer.

The company’s newest invention – Cat R3000H Loader – is the latest in Caterpillar’s strive for excellence.

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July 2014

The load-haul-dump machine (LHD) is the largest loader ever manufactured by Caterpillar.

The new Cat 3000H LHD provides an increase in truck loading capacity, enhanced digging and breakout performance, faster speeds on grade, a strengthened front frame, and an available Ventilation Reduction Package that will lower both machine and mine operating costs.

“We designed our LHD’s and underground trucks to contain a high

UNDERGROUND MINING EQUIPMENT

level of standard content but also to be configurable to regional preferences,” says Joe Bontje, marketing manager of underground hard rock mining equipment for Caterpillar. “For example, some regions prefer enclosed operator cabs, while other regions prefer open cabs. High production mines generally prefer the largest equipment that will fit in their underground mine and all available options that can make their operators as efficient and comfortable as possible.”

The 3000H LHD’s Ventilation Reduction Package utilizes customized engine hardware and software to minimize diesel particulate matter. Key advantages include reduced diesel particulate matter, improved fuel economy, and fuel quality flexibility.

Caterpillar’s 3000H LHD is the latest and greatest in the company’s innovative line of mining vehicles for underground mines. www.cat.com

Cat w LHD loads Cat AD60 underground truck, C748820

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M A C H I N E RY ATLAS COPCO Atlas Copco is a world leader in sustainable productivity solutions. The Group develops products and services focused on productivity, energy efficiency, safety and ergonomics.

Recently unveiled at the 2014 Euro Mine Expo, the company’s newest innovation is a game changer in terms of efficiency and comfort.

The Scooptram ST18 loader, designed to match Atlas Copco’s 60 ton capacity Minetruck MT6020, provides a unique bucket design which tests show gives considerably better muckpile penetration. The high performance, 18 metric ton capacity underground loader provides an array of unique features including an optimized bucket and boom design with computerized Atlas Copco Rig Control System that monitor, support and controls all aspects of the operation.

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July 2014

“The optimized bucket gives a faster loading cycle that means more tons per month,” says Ben Thompson, Product Manager at Atlas Copco.

“It also offers great improvements for the operator, not least in terms of the extra legroom provided by the unique Atlas Copco Footbox.”

According to Thompson, good legroom should not be underestimated.“Operators who have tested the Scooptram ST18 cite the new Footbox as one of the reasons why the loader enables them to work longer shifts. Not only that, they confirm that the view from the cab is best-in-class, even when reversing, thanks to the loaders sloping bodywork and shorter frame structure.” www.atlascopco.com

UNDERGROUND MINING EQUIPMENT

Scooptram ST18 loader

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M A C H I N E RY

SANDVIK Sandvik Mining is one of the leading divisions of the Sandvik Group.

The section is one of the leading global suppliers of equipment and tools, service and technical solutions for the mining industry.

The company’s mining jumbos, which are designed to work in the toughest conditions, are leading the industry in safe underground operations while maintaining high productivity. The well designed structure and proven components are ideal for even the most challenging customer requirements.

Sandvik’s DD321 underground drill rig is a dual matching boom jumbo that features critical drilling capacity. The vehicle is engineered for protective access to all underground service functions and regular maintenance tasks are initated at ground level, without the need to open the housing. The DD321 allows fast scaled tunneling with speedy and precise drilling and drafting routine.

With an enhanced regulating system, non-complex maintenance tasks, and protective canopy design, the DD321 by Sandvik is the preferred choice in underground mining jumbos. www.sandvik.com 20

July 2014

UNDERGROUND MINING EQUIPMENT

Sandvik DD531-S60C three boom electro hydraulic jumbo

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M A C H I N E RY Joy Global Based in the United States, Joy Global is a manufacturer of surface and underground mining machinery.

They offer some of the best custom engineered underground equipment in the mining industry. From room and pillar to longwall and entry development systems, Joy’s rugged and reliable equipment combines some of the industry’s latest innovation and developments into realities.

The company’s complete line of mobile roof bolters has changed the safety and efficiency of mining methods. Mobile bolting products range from pneumatic, single head cable bolters to automated, multi-head roof and rib bolters. Joy’s Quadbolters are leading the way in innovation.

The Joy quadbolters features four HFX bolting units with semiautomatic, wear resistant bolter that minimize maintenance and downtime. With a proven track system similar to the systems used

by Joy continuous miners, the quadbolters provide excellent tractive effort, low ground pressure, and a robust base even in difficult floor conditions. To improve safety, the quadbolters are equipped with a 22

July 2014

temporary roof support system and protective canopy for its operators.

With the new innovations in underground mining equipment, the future is looking quite abundant for miners looking to maximize profits and productivity. www.joy.com Combined roof bolters and continuous miners

UNDERGROUND MINING EQUIPMENT

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TECHNOLOGY

The Best Project Management Software for Miners Writ ten by: ROBE RT SPE N C E

Mining Global tells you everything you need to know about the most cost effective, efficient and reliable project management software available on the market today

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TECHNOLOGY MINING COMPANIES ARE highly complex, billion dollar corporation businesses. They don’t have time to waste on complicated or unreliable software that doesn’t deliver results. Companies need project and asset-driven software that manages the entire mine lifecycle from exploration, construction, operation and retirement, while optimized for remote access.

To be successful, miners need project management software that ensures unsurpassed realtime cost control, human resource management, occupational health and safety, financial and tenement management, procurement and document management.

We break down the best project management software based on cost effectiveness, efficiency and reliability.

Hard Dollar Mine project and cost management software from Hard Dollar (HD) provides worldwide cost management for mining and exploration companies. The software provides increased budget accuracy and high visibility into project production and costs. Hard Dollar’s mine 26

July 2014

project cost management software provides detailed cost estimating, daily progress measurement, and live two-way integration of cost and scheduling.

Whether creating a feasibility study, cost estimate or bid to construct, the Hard Dollar software that can increase accuracy and visibility of mining projects. It minimizes the risk of overruns by capturing and recognizing

THE BEST PROJECT MANAGEMENT SOFTWARE FOR MINERS

Hard Dollar Webinar: Controlling Mine Costs and Managing

every detail that contributes to the cost-estimate model, such a different shift arrangements, labor overtime, labor bonuses, escalation, drift cycle factors, and more.

Daily reports are also available for multiple projects, single projects, or specific activities. HD provides tracking for critical project information that can significantly reduce risks of project costs. Inefficiencies

in production and potential cost overruns are quickly identified, helping to minimize and eliminate the impact on the overall project.

Ramco Mine Management Ramco’s solution software is suited for single or multi-mine, multigeography, multi-modal transportation and multi-company enterprises.

The integrated software provides 27

TECHNOLOGY

RAMCO Mining Management

THE BEST PROJECT MANAGEMENT SOFTWARE FOR MINERS

processes and automation to: exploration, scientific mine planning, land management, procurement, inventory management, production, asset maintenance and management, supply chain planning, sales and marketing, customer relationships management, human resources and payroll, finance and analytics.

With Ramco, miners have complete visibility across all mines, stocks, beneficiation, transportation, schedules and non-mining business processes. The software provides increase production efficiency, optimized supply chain management and logistics, and scheduling. Ramco allows miners to make quick and smart decision with information about mines/plant operations and plans as well as adding power to companies by enabling them to plan, execute and track tasks with innovative mobile solutions.

Managing multiple exploration sites is easy with Ramco. The software manages exploration activities scientifically through an exclusive mining project monitoring software, directly capturing remote site surveys, geological and core log analysis dada from remote

exploration sites. Land procurement and management is also streamlined with Ramco’s VirtualWorks, allowing miners to eliminate the hassles of conventional paper work.

Because transportation is the single largest cost in the mining supply chain, Ramco provides optimized insight into transportation, logistics and scheduling across supply chains as well as improved operational efficiency and reduced cost.

CCS Mining & Industrial CCS mine project software provides detailed cost estimating, daily progress measurement, and up-todate planning forecasts and schedules for mining companies. Since forming, the company has provided comprehensive software focused on solutions for mining and construction companies. The company’s software provides miners with a set of tools to succeed, including estimating, valuations, planning, cash flow, and forecasting modules – all packaged conveniently into a single interface.

The company’s project cost management software (Candy) provides estimated cost models for mine projects, helping miners, 29

TECHNOLOGY engineers and contractors increase accuracy and visibility of their cost models. Whether creating a feasibility study, cost estimate or a bid to construct a mine, CCS software is essential for success.

Candy Valuation Module provides detailed project feedback on actual costs of projects, giving miners immediate insight into allowable versus actual performance, including man hours, equipment hours, production, timing, cost and profit.

Planning and forecasting are simplified as Candy Planning and Estimating module creates relationships between detailed cost model, work plan and forecasting scheduling.

With CCS’s Candy Software, risks of overruns are captured and recognized with every detail that contributes to the cost-estimate model. Things like shift arrangement, labor overtime, labor wages, escalation, and drift cycle factors are answered, empowering companies to make better project planning and estimating decisions.

IFS IFS software provides mining companies with integrated finance, human resources, project 30

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Mining software vulcan maptek management, inventory and supply chain management, contract management, and risk management straight to their fingertips. IFS Applications provides flexible component-based suite with documented strengths in project management and enterprise asset management (EAM) and asset integrity management. IFS has become a true solution for both head office and mine site staff.

IFS provides a massive amount of solutions for mining

companies. Additional features of the software include: Project ERP, Enterprise Asset Management, Serve Management, Field Service Management, Manufacturing, Corporate Social Responsibilities Solutions, Mobile Solutions, Supply Chain, and Private Cloud ERP. Global business management from IFS includes deep support for multiple manufacturing modes and business processes. The software allows divisions to share the same enterprise solution along with support

for tax schema of vital emerging economies. The software also provides a broad variety of solutions for efficient reporting and enhanced control in the field of corporate social responsibility with fully integrated solutions to promote user productivity and reduce time spent on nonvalue-adding administration costs.

The mining industry is chalk-full of project management software that will effectively provide insight and reliability to all your mining needs.

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MINING SITES

How Anglo American manages Community Relations To prevent millions of dollars in losses mining companies must engage with local communities.

At Mining Global, we take an inside look at how Anglo American handles its community relations Writ ten by: Robert Spence

Community Engagement - Les Bodby and members of the Aboriginal Heritage Team in the reserve at Moranbah North mine in Queensland Australia

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MINING SITES THE COLD HARD truth is community relationships matter.

The ability to sustain rapport with surrounding areas can almost guarantee the success a mine site, and company, will have. Things like worker strikes and protests have shown the effects bad relationships can have on mining companies – and it’s not cheap.

A recent study by the University of Queensland concluded the costs associated with protests and community misunderstandings can account to roughly $20 million a week in delayed production. It’s not something mining companies can just sniff their nose at. The ability to effectively negotiate and compensate a community is parallel to the overall success, and time life, of a mine site. Without it, the effects can be catastrophic.

Anglo American approach Headquartered in the UK, Anglo American has launched a slew of initiatives aimed at instilling meaningful community programs and training.

The company boasts some of the largest sustainable development and community engagement programs Caption to the image in the industry, each one chock-full of 34

July 2014

At Anglo American’s Quellaveco proje Manrique uses a model of the propos ‘dialogue table’ representatives from ways to benefit surroundings areas and people – both environmentally and economically.

“We believe we can deliver significant social and economic value to the communities where we operate, helping us build constructive and longlasting relationships with them,” says James Wyatt-Tilby, Head of External Communication at Anglo American.

“With 95 percent of our operations in developing countries, we know

H O W A N G L O A M E R I C A N M A N A G E S C O M M U N I T Y R E L AT I O N S

“With 95 percent of our operations in developing countries, we know the most significant contribution we can make to communities is through leveraging our core business to make a positive development impact”

ect in Peru, process manager Gonzalo sed mine and processing facilities to the local Moquegua community the most significant contribution we can make to communities is through leveraging our core business to make a positive development impact,” says Wyatt-Tilby.

Anglo American’s responsibilities extend beyond the earliest stages of exploration. The company is engaged with communities long after the life of a mine, helping communities blossom and reach new economical feats. Anglo American is

– James Wyatt-Tilby, Head of External Communication at Anglo American

also part of the UN Global Compact, a strategic policy initiative aimed at aligning business operations and strategies with ten universally accepted principles including human rights, environmental stewardship, labor rights and anti-corruption.

The Social Way Anglo American implements the Socio-Economic Assessment Toolbox (SEAT) to access impact and 35

MINING SITES

Langamed Emergency Services is headed by Dino Padyachee (center).

Funded by Anglo Zimele, the business is based at Greenside Colliery in Witbank

Community Engagement - Edward Wynter HR Officer at Moranbah North Mine with Production Man. Diane Clark at the offices of Community Radio station 45FM Moranbah.

Elizabeth Mtshali is an entrepreneur owner of HPEL construction, pictured here at the Oogies Zimele hub

The Batho Pele Project Mobile health clinic at Gasese Village (80kms from Kathu) in the Northern Cape. The mobile clinic provides primary health care to poorer rural villages such as Gasese.

Masedi Electrical - Finance & Admin Deptartment - Relebogile Modisane (Finance Officer) with Seitebatso Rakgokong (General Manager)

H O W A N G L O A M E R I C A N M A N A G E S C O M M U N I T Y R E L AT I O N S

community needs. Launched in 2003, the program seeks to contribute to the social, economic and institutional development of the communities in which Anglo operates. The SEAT program ensures the company isn’t merely conforming to requirements, but setting new benchmarks in essential areas for communities to thrive.

“SEAT is a seven-step assessment methodology that provides us with guidance and tools to manage the socio-economic impacts, both positive and negative,” says WyattTilby. “The overall aim is to better meet the community’s needs as well as build trust and foster greater transparency and accountability.”

According to Wyatt-Tilby, the program also works to keep community relationships intact and moving ahead.

“The SEAT program has evolved over time, receiving key input from NGO partners including CARE, Fauna & Flora International, International Alert and Habitat for Humanity, leading organizations on social performance management, and internal experience and case study analysis.”

Anglo American is also working

to support local economies. The company’s enterprise development programs have supported more than 48,000 SMEs, 76,000 jobs and invested more than $100 million into communities in which they work in.

“We don’t just provide funding for the entrepreneurs,” says WyattTilby. “We also provide ongoing mentorships, which differentiates our programs from others. Although we have a global enterprise development strategy, each of our programs is adapted to suit its local environmental.

Frontline community engagement and benefits According to Wyatt-Tilby, employees at mine sites play a crucial role of implementing strategies the company’s leadership articulate. They are the face of Anglo American and essentially the frontline of community engagement.

“We implement diverse initiatives to raise levels of understanding among our social and line managers on how to manage core business activities in a way that reduces social risk, delivers local benefits, and leads to community and government support.”

Adapting with its SEAT program, 37

MINING SITES

Rina Botha (LED Man.) with Sophie and her mother Elna Motwana at the Batho Pele mobile clinic during its stay in the Gasese Village

Caroline and Rebaone Matloko and a married couple living in one of the new houses in Postmasburg built for Kolomela Iron Ore Mine, Rebaone is a Komatsu 730 Haul truck operator on the mine

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Anglo American employees are properly trained to deploy initiatives to raise levels of understanding and manage activities that reduce social risk, deliver local benefits, and leads to community and government support.

“In 2011, for example, we provided SEAT training to 306 participants.

Our training took place to support business development in Mongolia and China,” says Wyatt-Tilby.

And the benefits are easily transparent.

In 2011, Anglo American launched a regional stakeholder dialogues process at its Quellaveco copper project in Peru. The company wanted to address civil society concerns about potential impacts of the project, and negative effects on water. After concluding the company came to a series of commitments to change some of its processes. This included mine closure plans to better meet the expectations of the community; additional infrastructure works to increase water availability for agriculture; and local hire, supplier and enterprise development initiatives.

“On being a development partner of choice, our chief executive, Mark Cutifani, has said, “As custodians of

H O W A N G L O A M E R I C A N M A N A G E S C O M M U N I T Y R E L AT I O N S

“We implement diverse initiatives to raise levels of understanding among our social and line managers on how to manage core business activities in a way that reduces social risk, delivers local benefits, and leads to community and government support.”

– James Wyatt-Tilby

Anglo American’s Thabazimbi Mine has helped with the development of a small organic farming cooperative near the mine which produces vegetables for the town. Pictured are the beneficiaries Dorah Mothupi (At Front), Abraham Nakana, Doreen Motaung and Dorah Matjila much of the world’s mineral resources, the mining industry has a responsibility to ensure that the benefits of mining can be seen and felt by the countries in which we operate, in particular, by our host communities. The purpose of mining is to deliver the minerals and the metals the world needs for its continuing development. Our objective as a company is to do so in such a way

that we can make a real and positive difference for people today, and in years to come,” says Wyatt-Tilby.

The impact a mine can have on surrounding areas – both socially and environmentally -- is paramount.

Companies like Anglo American are living proof mining companies can operate effectively while giving back to local surrounding communities.

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TOP 10

TOP10

GLOBAL Junior Mining Companies Discover which exploration miners are going to be taking the industry by storm in 2014 Written by: Robert Spence

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Drilling at the Tamarack Project

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Probe Mines Ltd. (TSXV:PRB)

Toronto-based Probe Mines Limited is engaged in the exploration of previous metals throughout the Canada region.

Formed in 1933, the company’s projects include Tamarack, Victory, East Limb, Black Creek, and West Timmins. Probe Mines is currently focused on developing its 100 percent-controlled Borden Gold Project, a new multi-million ounce gold discovery in Ontario. www.probemines.com 42

July 2014

Midway Gold Corp (TSXV:MDW)

Formed in 1996, Midway Gold Corp. is engaged in the acquisitions, exploration, and development of gold. and silver mineral properties in North America. Headquartered in Englewood, CO., the company has a portfolio of properties in various stages including the Pan, Spring Valley, Tonopah and Gold Rock gold and silver mines.

Midway Gold Corp. is on track to bring its first million-ounce project to production in 2014. www.midwaygold.com Surveying the Pan Gold site

G L O B A L J U N I O R M I N I N G C O M PA N I E S

Surveying the Pan Gold site

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Chesapeake Gold Corp.

(TSXV:CKG)

Chesapeake Gold Corp. is a mineral exploration company focused on the discovery and development of gold-silver deposits in North and Central America.

The company’s major project is its 100 percent owned Metates gold deposit located in Durango state, Mexico, which the company expects to become one of the largest undeveloped gold and silver mines in the world.

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SilverCrest Mines Inc. (TSXV:SVL)

Founded in 1973, SilverCrest Mines Inc. is a Canadian precious metal producers headquartered in Vancouver, BC. The company specializes in the acquisition, exploration and development of mineral properties in the Americas, comprised of seven mineral concessions. The company’s flagship property Santa Elena Mine, which is located in the State of Sonora, Mexico, is a highgrade, epithermal silver and gold producer with an estimated mine life of eight years. www.silvercrestmines.com The Santa Elena Mine

www.chesapeakegold.com 43

TOP 10

06

Bear Creek Mining Corporation (TSXV:BCM)

Bear Creek Mining Corporation is a Vancouver based exploration company engaged in the acquisition, exploration and development of precious and base metals. The company’s projects, which are primarily based in Peru, include Corani Silver-Lead-Zinc Project and Santa Ana Silver Project. Additional projects include: Tassa Silver-Gold Prospect, La Yegua Copper-Gold Molybdenum Prospect, Sumi Gold Prospect and Generative Exploration. Bear Creek Mining commenced phase II drilling at its Tassa silver-gold prospect in 2011. www.bearcreekmining.com Bear Creek works with communities to improve sustainable development

The Vanadium project in Brazil

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Largo Resources Ltd. (TSXV:LGO)

Formed in 1988, Largo Resources Ltd. is a mineral resource exploration and development company specializing in the acquiring, exploring and developing of metals deposits around the world. Largo Resources, which was formerly known as Kaitone Holdings Ltd, has projects in Brazil and Canada and is currently focused on developing its premier Maracas project to production in 2014. The project in Brazil boasts the highest grade vanadium resource in the world and is positioned to be the lowest cost producer in the vanadium market. www.largoresources.com

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G L O B A L J U N I O R M I N I N G C O M PA N I E S

04

Lumina Copper Corp. (TSXV:LCC)

Canada-based Lumina Copper Corp. is focused on the exploration, development and advancement of copper resources in Argentina. The company owns 100 percent interest in its Taca Taca copper/gold/molybdenum property which is located in close proximately of the world’s largest copper mine, Escondida. Lumina Copper announced in June it had been acquired by First Quantum Minerals for approximately $470 million. www.luminacopper.com The Taca Taca property

Gold samples from La Tortuga

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Gold Reserve Inc. (TSXV: GRZ)

Gold Reserve Inc. was founded in 1998 and is engaged in the business of acquiring, exploring and developing mining projects in Venezuela. The company’s primary projects include the Brisas gold and copper project, Choco 5 and La Tortuga in Venezuela.

In addition, the company has a variety of subsidiaries including Gold Reserve Corporation, Gold Reserve de Barbados Limited, Gold reserve de Venezuela, CA, Compania Aurifera Brisas del Cuyuni, SA, GR El Choco Limited and GRI Minerales El Choco CA.w www.goldreserveinc.com 45

G L O B A L J U N I O R M I N I N G C O M PA N I E S

Exploration at the Schaft Creek site

02

Copper Fox Metals Inc. (TSXV: CUU)

Headquartered in Calgary, Canada, Copper Fox Metals is a resource development company engaged in the business of exploration and development of porphyry copper mineral proper-

ties. Formed in 2004, the company is currently focused on copper projects within North America including its Schaft Creek coppergold-molybdenum-silver project in British Columbia and its Sombrero Butte copper projects in Arizona. www.copperfoxmetals.com 47

TOP 10

01

Sierra Metals Inc. (TSXV: SMT)

Number one on our list of top junior mining companies is Sierra Metals Inc. The Canadian mining company is actively engaged in the business of acquisitions, exploration, extraction, production and commercialization of mineral concentrates for silver, copper, lead, zinc and gold in Mexico and Peru. Formerly known as Dia Bras Exploration Inc., Sierra Metals owns and operates three mines in commercial production: the Yauriocha mine in Peru, the Bolivar and Cusi mines in Mexico. www.sierrametals.com

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July 2014

49

European Association of Metal Ores & Industrial M

Self-promotion helps Euromi capitalise on continental prom Written by: Matthew Staff Produced by: James Pepper

f Mining Industries, Minerals

ines mise

51

EUROMINES

Conference field trip, Aitik mine, Sweden

“We should be doing exploration and mining and processing and supplying to the people that need those raw materials� – Mark Rachovides, President

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July 2014

U

nder the Presidency of Mark Rachovides, The European Association of Mining Industries, Metal Ores & Industrial Minerals (Euromines) is striving to lay to bed assertions of the past to encourage its members about the potential of the future.

Mining in Europe, and indeed across the world, has often come in for criticism but through a strong focus on external industry collaboration and internal optimism, the association is well on its way to changing industry standards and consequently, public perceptions.

Existing as a not-for-profit organisation in its current form since 1996, Euromines represents more than 40 different metals and minerals, more than 100 companies and about 350,000 jobs across its member states, and

MINING

Key Personnel

Mark Rachovides President

Rachovides is positive that Europe can become a partner of choice within the mining industry.

“The important thing through what we do is to point out where mining fits in the value chain and to get away from those old stereotypes,” he said.

“We need a balanced, responsible approach to keep the value chains in the EU because it won’t contribute to our renaissance or our future if part of the value chain is being sourced outside when we have the ability to do it here.

“We should be doing exploration and mining and processing and supplying to the people that need those raw materials.

We can do the whole thing and that should make us the partner of choice because we should be showing ourselves as the leaders in terms of sustainable use of our resources.

Mark Rachovides is a consultant to Eldorado Gold Corporation and until recently was Chairman of Deva Gold, Eldorado’s subsidiary in Romania. He was formerly an Executive Director of European Goldfields which was acquired by Eldorado in early 2012. Rachovides is a well-known specialist in South East Europe and Chairman of the Euromines Gold Group.

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EUROMINES

Vykleky quarry in the Czech Republic after rehabilitation

“Europe is surprisingly underexplored and underinvested for exploration” – Mark Rachovides

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July 2014

“That’s what we want to achieve; to set the standard that’s higher than everyone else.”

Present virtues Manufacturing in Europe currently accounts for 75 percent of the EU’s exports and many of these manufactured products depend on raw materials. It is figures like these which the Association aims to make clearer to the business world moving forward.

MINING

“Europe is surprisingly underexplored and underinvested for exploration, but in terms of technology, we’re very advanced, so we are increasingly developing the ability to mine more complex deposits and have more automated machinery,” Rachovides said. “We ultimately look to a future of stateof-the-art modern mining in Europe.”

The Association is therefore striving, through affiliations with organisations and

Europe is rich in natural resources w w w. e u r o m i n e s . o r g

55

Xxxxxxxxxx

EUROMINES

MINING

conferences at high profile events, to start getting that positive industry message across.

This can only come with a collaborative and integrated drive among its members too though, and Rachovides is adamant that all are responsible in that push and none are burying their heads in the sand.

“Most of our members need and do talk more about our good stewardship and the added value that we bring across the spectrum of our activities,” he added. “A lot of the criticisms are the sins of our past and we need to talk more about the virtues of our present and our future.

“Our performance today in Europe speaks for itself. We have excellent health and safety records, very low numbers of fatalities and rank very highly in terms of productivity. We invent a lot of technologies used worldwide because we are constructive, responsible, intelligent people.”

Globally competitive Structured through a series of committees, comprising a decision-making steering committee, a think-tank policy committee, and some more specialised sector committees – environment, health and safety, emission training standards, communication, gold mining and magnesia production – Euromines is set up to be the recognised representative for mining in Europe; a voice and point of reference in relation to the European institutions, and a sounding board for members regarding

Key Personnel

Corina Hebestreit Director Dr. Hebestreit is the Director of Euromines.

She has 20 years of experience in the mining sector, from primary raw materials to marketing of end products. Over the years she has built an extensive network in the industry and academia.

Johannes Dreilsma Deputy Director of Euromines

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EUROMINES

Wealth Creation by Mineral Extraction in Europe, organised by Euromines on 3rd December 2013 in Brussels

EU mining sector can boast a wealth of deposit opportunities

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July 2014

policy matters and technical issues.

The main goal as a consequence of these ongoing discussions, forums, collaborations with global organisations and monitoring of international trends, is to ensure that the EU maintains and builds upon its position as a responsible and balanced source of minerals.

Complementing the effective stewardship, innovation and people that the EU mining sector can boast is also a wealth of deposit opportunities where the industry can expand its footprint, and this is what Euromines will be smoothing the pathway towards

MINING

Association Information A S S O C I AT I O N TYPE

Mining L O C AT I O N

Brussels FOUNDED

1996 NO. OF M E M BE RS

N/A

over the coming months and years.

“There is certainly a lot of money in Europe and we also have a tremendous amount of intellectual capital and industrial capital in terms of making and inventing things,” Rachovides concluded.

“If you look at our competitive positioning, we are heavily regulated, have a large population, not a lot of land mass, but still manage to compete in an international market on a company-by-company basis successfully.

“We’ve dealt with the questions of the past and can now be innovative and adopt competitive solutions to problems of the future.” w w w. e u r o m i n e s . o r g

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Colt Resources is on course to revive Portugal’s gold and tungsten mining With exploration in advanced stages at two flagship projects the company can look to generate important cash flow in the next few years to drive further activity in the country and across the world Written by: Tom Wadlow Produced by: James Pepper 61

C O LT R E S O U R C E S

C Managers inspect the Boa Fé site

“I want to have both of our mines producing so we can then generate cash flow and invest in our other projects. We want to spread our activities through Europe and the Middle East, and other locations all over the world” – Luis Martins, Business Development Manager 62

July 2014

olt Resources has already invested €60 million in its plan to begin gold and tungsten mining at two sites in Portugal which once under construction will deliver hundreds of jobs for local people, thus helping to boost the country’s economic recovery.

The exploration expert expects to spend another €100-130 million to get both projects off the ground which will ultimately require 150 permanent staff when production is underway.

Once the flagship exploration projects at Boa Fé and Tabuaço are in production, the incoming cash flow will allow Colt to upscale activity at other Portuguese gold and tungsten sites, as well as abroad.

Business Development Manager Luis Martins said: “I want to have both of our mines producing so we can then generate cash flow and invest in our other projects. We want to spread our activities through Europe and the Middle East, and other locations all over the world.”

This includes a venture in Pakistan currently being explored by Colt Middle East, where copper mining could also bring in money to boost funds for the projects in Portugal.

Founded in Canada in 2007, Colt quickly moved to the Iberian nation on receipt of data from previous operators and the Portuguese government, with whom it shares a highly constructive relationship and vision to turn around economic fortunes.

MINING

Drill hole with Scheelite by UV light Tabuaço project

Boa Fé and Tabuaço The open-pit gold resources at Boa Fé, 95 kilometres east of Lisbon, and underground tungsten supplies at Tabuaço, in the north, represent the springboard for Colt Resources to emerge as a key mining player both in Portugal and elsewhere.

Boa Fé hosts several gold deposits such as Banhos, Casas Novas, Chaminé, Ligeiro and Braços, and according to preliminary economic assessments contains reported

Visible gold

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C O LT R E S O U R C E S

MINING

indicated resources of 340,310oz and inferred resources of 84,200oz of gold. It has an estimated 11 kilometres of gold mineralisation.

Initial metallurgical test work has demonstrated that the gold at Boa Fé is readily recoverable using a combination of conventional methods such as gravity, flotation and cyanide technologies, with Colt looking to start production by the end of 2015.

The Tabuaço Experimental Mining Licence (EML) in North-Eastern Portugal covers a total area of 45.13 square kilometres. Since 2007 Colt has carried out extensive outcrop sampling work, and then embarked on an exploration and evaluation diamond drilling program which to date involved in excess of 100 drill holes, totalling more than 11,400 metres.

Martins outlined the importance of impending bankable feasibility studies to the progress of both projects. “We are looking to conclude this by early next year,” he said.

“We are developing a resource estimation update and are pretty sure there is huge potential, the bank feasibility study will prove this and encourage investment. The strategy is to start production as soon as possible and generate some cash flow.”

“We are open to many avenues of construction and production and for example have had conversations with potential German and Chinese partners about mining at Tabuaço.”

Workers on site

Country Properties Portugal

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C O LT R E S O U R C E S

Drilling works are well underway

‘The country has a mining legacy stretching 2,000 years back to Roman times and Martins points to a continuing enthusiasm and acknowledgement of the industry’s importance to the nation’s economic recovery’

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Investing in Portugal Several factors combine to explain Colt’s decision to develop the gold and tungsten mining sectors in Portugal.

The country has a mining legacy stretching 2,000 years back to Roman times and Martins points to a continuing enthusiasm and acknowledgement of the industry’s importance to the nation’s economic recovery.

“In 2012 the government published a new strategy about mineral resources that gives clear political support to the mining sector,” he said.

“We have a great relationship with them, and also have a beautiful infrastructure, a very good motorway network and our properties are nearby along with ports and prime rail connections.”

Colt has also been able to draw vital investment from a number of Portuguese sources, part of a batch of investors including a Canadian pension

MINING

Colt is working closely with the government

fund and several institutions and individuals from Germany, Switzerland, China and Hong Kong.

Construction company Teixeira Duarte is a key partner. “They are a big construction group working not only here but in Brazil and Angola,” Martins added.

“They have a mining division which is developing several works for Portugal’s main copper mine Neves-Corvo and can help us to develop our projects. All our investors share our view and strategy and feel that they will see a good reward on their investment.”

So far investment into the two projects has exceeded €60 million with Martins predicting another €100-130 million be needed before both sites become operational, making the banking feasibility studies of utmost importance in order to secure the remaining funds and deliver new jobs for locals.

Staff are key to success

Key Personnel

Luis Martins Business Development Manager Luis Martins is a geologist with 30 years of experience in the exploration and mining sector.

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Exploration work

“This is about building local partnerships in an academic and vocational point of view as well” – Luis Martins, Business Development Manager

Colt’s current 25 staff and 50 sub-contracted exploration workers benefit from the years of expertise in the company through internal training. It also has fruitful relations with several Portuguese universities such as the University if Lisbon and University of Évora and Aveiro located near Boa Fé and Tabuaço.

“This is about building local partnerships in an academic and vocational point of view as well,” Martins said. “We are already conceptualising the hiring of more people for the construction and production with our subcontractors.”

Into the Middle East Away from Boa Fé and Tabuaço Colt has several other promising exploration works progressing both in Portugal and in Pakistan.

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July 2014

C O LT R E S O U R C E S

MINING

In Portugal, the company is exploring for gold at Santo António, Montemor, Cercal and Company Cedovim, while finding reserves of gold and Information copper in a joint venture with junior British company Star Mining at Borba in the east.

INDUSTRY It has also established Colt Middle East, for Mining - mineral which it owns a majority share of 38 percent. exploration This is a unit dedicated to exploring copper potential in Pakistan near the world-renowned HEADQUARTERS supply at Reko Diq, one of the biggest Canada porphyry copper deposits in the world.

Colt Middle East has entered an agreement FOUNDED with Australian-based company Lake Resources, 2007 and is working closely with local communities and the government of Balochistan to develop EMPLOYEES what it hopes will become a world class asset 75 in the Chagai Hills copper and gold district.

Martins said: “If successful this could REVENUE completely change the dimension of the Not disclosed company and could provide important funding for our projects in Portugal.

PRODUCTS/ SERVICES “There are political and social issues but still we are working with the local communities Gold and Tungsten to obtain the social license and I think mining the people will take care of us and we will return a safe and secure investment.”

With promising signs to be seen both in https://twitter.com/ColtResources Portugal and in Pakistan, Martins believes the company can look further afield in the future. “We can bring benefits to our https://www.linkedin.com/company/548157 shareholders and the people in the areas we look to operate in,” he concluded. w w w. c o l t r e s o u r c e s . c o m

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Kirloskar Oil Engines Limited set

for major global expansion

India’s leading diesel engine and genset manufacturer is enriching lives at home and in Africa across fields from agriculture and construction to power generation and mining Written by: Tom Wadlow Produced by: Anthony Munatswa

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KIRLOSKAR OIL ENGINES LIMITED

‘From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines’

Engine testing and assembly line 72

July 2014

I

ndia’s Kirloskar Oil Engines Ltd is on a drive to become a truly multinational business and ‘touch the world’ by powering vital industries with reliable engines and a second-to-none after sales service.

From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines for service industries, infrastructure projects and defence establishment among many other important sectors, and is the flagship company amongst the 33 major group companies.

It is leaving a positive legacy abroad in places such as Africa where agriculture and mining are being fuelled by its industry-renowned diesel engines.

This accompanies that which has already been achieved at home, where Kirloskar Oil Engines has greatly enhanced the farming sector since 1946 and holds a 34 percent share in the market for power generators through its brand “Kirloskar Green Gensets”.

Facilitating this vital society-building output is a core focus area, with emphasis also laid on enhancing the cutting edge research and development (R&D) facility.

Healthy relations with workers and strong adherence to corporate social responsibility and providing education to India’s population in environmental and sanitation issues are also key areas where the organisation continuously pays

MINING

Engine testing and assembly line

key attention.

In being a peoples’ business, Kirloskar Oil Engines Limited is far more than just a provider of reliable diesel engines.

World-class factories Generating the company’s revenue are four sites across India producing engines of three to 11,000 horsepower, the oldest of which is in Pune alongside its headquarters.

In 2006 it invested US $175 million into a factory in Kagal, 300 kilometers from head office. Vice President of Exports Sunil Walunjkar said: “Here we have a 200-acre area and a world class single plant of 40,000 square metres with a capacity of 60,000 engines annually of 20 – 750 HP.

Key Personnel

Sunil Walunjkar, Vice President, Exports

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KIRLOSKAR OIL ENGINES LIMITED

MINING

“We have another location in Rajkot on the western part of India where we manufacture our smaller three to 20 horsepower engines for irrigation and agro-industrial applications.”

The final base is the large engine facility at Nashik, capable of manufacturing diesel engines in range of 2,400 – 7,200 HP for Marine and Power Generation applications.

KOEL high-selling

Enriching lives in Africa As in India, agriculture dominates the economy of many African countries with maize being the most important food staple on the continent.

Kirloskar Oil Engines Limited provides engines to power hammer mills continent-wide to 25 nations including Algeria, Nigeria, Tanzania, Uganda, Rwanda, Zimbabwe, Zambia and Angola. These mills crush the crop into a useable powder, helping to feed millions of people.

In Senegal, more than 2,300 Kirloskar diesel engine-driven pumps and over 20 drip irrigation systems across the Senegal river have increased the annual rice production from less than 100,000 tonnes to 460,000 tonnes by increasing the irrigated land from 24,500 hectares to 85,000 hectares.

Another key industry supported in Africa is underground platinum and gold mining. “South Africa is one of our major markets and we work with various mining houses like Aquarius Platinum, Anglo Platinum, Impala Platinum, Glencore, Lonmin Platinum, Goldfields and

and desirable Varsha pumpset

4R 1040 TBS III Engine used for diverse industrial applications

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KIRLOSKAR OIL ENGINES LIMITED

An engineers’ training session at KOEL

“If the customer is satisfied in aftersales service then they will buy again and again” – Sunil Walunjkar, Vice President, Exports

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July 2014

Harmony Gold,” Walunjkar said.

The company produces a range of engines for equipment spanning LHD (Load-Haul-Dumper) vehicles, Drill Rigs, roof bolters, dump trucks and Low- Profile utility vehicles and Personnel Carriers to transport workers.

Walunjkar highlighted two reasons for continual success in Africa. “The first reason why we are successful here is because the mines work 15-16 hours a day and the production equipment has to

MINING

run continuously, the engines must be reliable,” he said.

“The second is after-sales service. We fix problems in the shortest possible time, minimising loss of productivity. As a company we do not believe in selling just a product. If the customer is satisfied in after-sales service then they will buy again and again.”

Kirloskar Oil Engines Ltd. is also powering mining in Botswana, Zimbabwe and Zambia with

SL90 FMUL Certified fire fighting engine w w w. k o e l . c o . i n

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Above: Kirloskar Oil Engines supplies “Industrial Engines” which is widely used to

a view to opening up possibilities in the Ivory Coast, Tanzania and Ghana where the focus is more on open-pit as well as underground operations.

power the application of the “Drill Rig”

“There should be no fear of failure.

You can think exponentially, freely and try out various ideas, so long as integrity is in place” – Sunil Walunjkar 78

July 2014

Enriching lives at home Back in India the company’s engines have been upholding the country’s most important economic sector, farming.

It has spearheaded the world’s largest irrigation scheme and brought the Green Revolution to more than 4,600 towns and villages in droughtprone Saurashtra in Gujarat on the west coast.

Walunjkar added: “When we say enriching lives what we mean is that our products and services will benefit the lives of those using it. Take today’s farmers, his grandfather was also using Kirloskar

All engines are designed in-house and undergo rigorous testing procedures

pump sets.

“We run through the generations and our products last for 50 years without any problems.

Our pump sets will help you to get a more fruitful crop which will benefit peoples’ lives.”

Agriculture aside the company’s diesel engines power over 80 different applications across a spectrum of industries and Kirloskar Green’s Gensets form the backbone of satellite, cellular and telecommunications operations. In addition Kirloskar Green Gensets widely caters to specific power requirements across sectors like hospitals, hospitality, IT, infrastructure, banking and many more.

Engine design prototypes are tested across a range of

Industry-leading research A key part of Kirloskar Oil Engines Ltd. reaching

facets

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KIRLOSKAR OIL ENGINES LIMITED

The company supplies engines for firefighting applications

“Different counties have different emission norms and we test that our engines fit the requirements of their destinations” – Sunil Walunjkar

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July 2014

its global ambition is its industry-leading R&D department, made up of 200 highly skilled and efficient engineers in Pune and recipient of US $10 million of investment over the past two years.

All engines are designed in-house and undergo rigorous tests across a range of facets. One important area is noise solation, where the company has been successful in making its engines meet the Indian legal noise requirements of under 75 decibels within one metre of the machine.

It also has had a state of the art in-house Emissions lab since 2001 that helps in designing and maintaining the products to the regulatory requirements of exhaust emissions. “Different counties have different emission norms and we test that our engines fit the requirements of their destinations,” Walunjkar added.

MINING

State of the art testing facility

“In Europe and North America the rules are more stringent than India and we are currently not selling big there but are designing products to meet those norms – soon we will get into these markets.�

The company is however supplying engines for firefighting applications into France, and is the only Asian company to have industry-recognised FM and UL certified diesel engines.

Load Haul Dumper, extensively used in underground mining segment, is one of the most demanding

Limca Book of Records A dedicated and happy workforce is behind the development, construction and after-sales service of Kirloskar Oil Engines Ltd, whose industrial relations is of record-breaking caliber.

Core values of integrity, creating wealth for all and worker empowerment filter through the ranks of the organisation.

applications that KOEL engines are successful in

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KIRLOSKAR OIL ENGINES LIMITED

Kirloskar Oil Engines Limited facilities

“India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues” – Sunil Walunjkar

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July 2014

The company has featured in India’s Limca Book of Records for being the only business to sign on time wage agreements before the standard three year cycle is up on seven consecutive occasions. The company’s 3,000plus employees are also given personalised evaluation and training programmes based on required skills.

This feeds an exemplary health and safety record, with a raft of industry certificates including Indian Army certification, for which it is a key provider of diesel engines, which are used for various applications.

The company also looks after people across the country, as well as the environment through its extensive Corporate Social Responsibility programmes.

MINING

Company Information INDUSTRY

Diesel Engines (For-Agri Pumpsets, Industrial Engines and Generating Sets) HEADQUARTERS

Pune, India FOUNDED

One such initiative is Vasundhara, which for the past eight years has involved 20,000 volunteers from the workforce and Indian public and 250 NGOs working on various environmental issues. Another is WaSH, a sanitation education programme whereby employees go into schools and provide vital tuition in the importance of hygiene.

Walunjkar added: “India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues.” With a driven employee base and industry-leading products, Kirloskar Oil Engines Ltd. can truly look to ‘touch the world’ by 2025. “There should be no fear of failure. You can think exponentially, freely and try out various ideas, so long as integrity is in place,” Walunjkar concluded.

KOEL Founded in 1946 (Kirloskar Group 1888) EMPLOYEES

3,000+ REVENUE

US $400 million PRODUCTS/ SERVICES

Diesel Engines, Agri Pumpsets and Generators

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Palabora Copper invests in future with mine extension plan South Africa’s leading refined copper producer continues to take care of its people with major investments planned to extend mine’s life Written by: Sheree Hanna Produced by: Anthony Munatswa

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PA L A B O R A C O P P E R ( P T Y ) LT D

Copper is a primary product

P Copper product

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July 2014

alabora Copper Ltd’s mission is to grow sustainably and profitably while delivering excellent value to all of its stakeholders, including its employees, shareholders and the community within which it operates.

Producing some 60,000 tonnes of refined copper a year, located in the Ba-Phalaborwa area of the Limpopo Province, Palabora Copper is South Africa’s only producer of refined copper and provides the local market with 85 percent of its copper requirements.

However, the current operation, the Lift I Project, is expected to come to the end of its life in early 2016, and in an endeavour to extend the life of the mine by a further 20 years, the company is hoping to develop a second underground pit, the Lift II project.

In 2013, a pre-feasibility study was concluded,

MINING

and the board decided to move on to the full feasibility study which was also completed in May 2014. For that period company spent about R700 million in the early work and declines.

Keith Mathole, the company’s General Manager for Corporate Affairs and Company Secretary, said at the time of publishing: “The board has yet to make a full decision on the Lift II Project, full development which is expected to possibly run until 2022.

“The approval would mean we will be running one of South Africa’s biggest underground mine development currently which will see about R10 billion being spent on the development works.”

As part of its growth strategy, the company is also aiming to insure its yields of magnetite, a byproduct of the copper operations, and meet the production targets of the planned new operations.

“Producing some 60,000 tonnes of refined copper a year, Palabora Copper is South Africa’s only producer of refined copper”

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PA L A B O R A C O P P E R ( P T Y ) LT D

Refinery: Anodes are placed in the refinery tank house in large cells containing acidified copper sulphate solution

Upgrading facilities It has already built and is in the process of commissioning a new R156million Belt Filter Plant which will enable the company to force-dry six million tonnes of magnetite a year to meet export needs.

The Board has also approved a further R170million spend on upgrading the Magnetite Booster and Separation Plant. This plant will process and upgrade the magnetite from 58 percent iron oxide grade to 65 percent magnetite grade.

Further works have also been undertaken to assess future business and technical operations regarding the copper processing operations including upgrading the Smelter to maintain

A B O U T PA L A B O R A C O P P E R ( P T Y ) LT D Palabora has been in operation since it was incorporated in 1956 and is South Africa’s only producer of refined copper. During the 1960s, 1970s and 1980s, the company’s open-pit copper mine and associated processing plants produced over 2.7 million tons of copper. Palabora is listed in the JSE. Producing about 60,000 tonnes of refined copper per year, the company supplies most of South Africa’s copper needs and exports the balance.

The company owes its origin to the unique formation known as the Palabora Igneous Complex. Nowhere else is copper known to occur in carbonitites as is the case at Palabora, and a host of other minerals such as phosphates, vermiculite, phlogopite, magnetite, nickel, gold, silver, platinum and palladium also occur.

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July 2014

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compliance with new government air quality regulations.

Previously known as Palabora Mining Company, the entity was incorporated in South Africa in August 1956 when it was owned and managed by Rio Tinto, which held 57.7 percent of the shares, and Anglo American which has 16.8 percent.

The Palabora mine has been in operation since it was incorporated in 1956 and during the ‘60s, ‘70s and ‘80s the open-pit copper mine and associated processing plants produced more than 2.7 million tonnes of copper.

On September 5, 2012, the two companies, thus Rio Tinto and Anglo America, announced their intention to sell their respective interest in Palabora and on December 11, they had reached

“The approval would mean we will be running one of South Africa’s biggest underground mine development currently which will see about R10 billion being spent on the development works” – Keith Mathole, General Manager Corporate Affairs and Company Secretary

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The Safest Future In International Contract Mining Byrnecut Offshore is an internationally recognised underground mining contractor that specialises in underground mine development, mine production and underground mine feasibility. This includes shotcreting, raise drilling, equipment rebuilds, maintenance engineering, labour hire and mine engineering consultancy services.

Since starting its international operations in 1999, Byrnecut Offshore has grown into one of the most experienced underground mining contractors across the globe. Byrnecut Offshore currently employs over 1,000 people worldwide with operations in South Africa, Democratic Republic of the Congo, Tanzania, Ghana, Saudi Arabia and Kazakhstan.

The Palabora Copper Operation is located on the outskirts of Phalaborwa, a town situated on the eastern border of Kruger National Park in the Limpopo Provence of South Africa. It has been in operation since 1956, where it was initially mined though open-pit methods, and in the later stages by underground block caving. In order to extend the life of the project, a second block cave of production life is required.

In October 2011, Byrnecut South Africa (Pty) Ltd entered an alliance style contract with Palabora Copper (Pty) Limited, to manage the safe execution of some 11,000m of underground development as part of the Lift II Early Works Development. The twin parallel declines (consisting of a conveyor and service decline) from the current operating Lift 1 Level down to the Lift 2 block cave footprint and other associated airway development are critical in extending the life of mine to 2030.

Since the beginning of Byrnecut South Africa’s operation at the Palabora Copper Mine, development has continued with high speed mechanised trackless mobile mining methods and efficient safe systems of work – a standard unsurpassed in a shaft access mine in South Africa.

Byrnecut South Africa (Pty) Ltd has worked with Palabora Copper (Pty) Limited in an alliance style contract to reduce costs, up-skill South African employees and improve work ethic and safety culture. A comprehensive training and skills progression program of South African employees has been implemented

by Byrnecut South Africa (Pty) Ltd in order to maintain a superior safety record and provide a sustainable contribution to both the local and wider community through knowledge and skills transfer.

BYRNECUT OFFSHORE PTY LTD

www.byrnecutoffshore.com 130 Fauntleroy Avenue, Redcliffe, Western Australia 6104 Telephone: +61 8 9373 1150 Facsimile: +61 8 9373 1151

MINING

agreement for its sale to a consortium led by the Industrial Development Corporation (IDC) of South Africa Ltd and China’s Hebei Iron & Steel Group.

Company mantra The refinery produces continuous cast rod for the domestic market and cathodes for export. Byproducts aside from magnetite include zirconium chemicals and nickel sulphate as well as small quantities of gold, silver and platinum.

Palabora also owns a nearby vermiculite (a versatile industrial mineral with many industrial uses) deposit which is mined and processed for sale worldwide.

It has a strong company ethos towards looking after its people, of which it employs about 2,200,

SUPPLIER PROFILE

1956 Incorporated in the Republic of South Africa in 1956, located in the Limpopo Province and listed on the JSE Limited

BP CASTROL

BP has been supplying lubricants through the Castrol brand to Palabora Copper since 1995, and fuel since 2003. Following the acquisition of Castrol by BP in 2000, BP was awarded the full hydrocarbon contract in 2003. The scope of the contract, delivered via BP’s Castrol Optival, included on-site management of all hydrocarbons and identification of value-creating opportunities for Palabora Copper.

Going forward, we look forward to building an even stronger partnership with Palabora Copper.

Website: www.castrol.com

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®

Crest Chemicals

Lake Foods Lake Specialties

®

Our reagent suite is: • Xanthates (collectors) • Senkol (collectors) • Senfroth (frothers) • Sendep (depressants) • Senfloc (flocculants)

Our service solutions are: • • • • • • •

Bench scale/metallurgical evaluations Statistical evaluation and data validation Product development and optimisation On-site product management Site-specific account management Supply chain control (e.g. telemetry and bulk distribution) Plant safety audits

PA L A B O R A C O P P E R ( P T Y ) LT D

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and to this end is a strong supporter of the South African Government’s Broad-Based Black Economic Empowerment (BBBEE) and the Mining Charter.

It has developed a comprehensive Transformation Strategy supported by a set of policies and procedures that seek to address the seven elements on the BEE scorecard and is committed to fostering an inclusive equal opportunity workplace.

The revised South African Mining Charter emphasises a target of 26 percent black ownership of the country’s mining assets by 2014 and Palabora has already achieved that as previously disadvantaged people have a shareholding; thus community 10 percent, employees, 10 percent and BEE Consortium six

SUPPLIER PROFILE

5

56

37

2 Product Revenue Contribution (%) Copper By-products Magnetite Vermiculite

AECI SENMIN

AECI is an explosives and specialty chemicals group domiciled in South Africa. Group businesses service the mining and manufacturing sectors both locally and internationally. The focus for growth is on Africa, South East Asia and South America. AECI’s businesses are characterised by application know-how and service delivery. They often operate in niche markets and are supported by leading technologies which are developed In-house or are sourced from international partners.

Website: www.aeci.co.za

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PA L A B O R A C O P P E R ( P T Y ) LT D percent which meets the Department of Mineral Resources requirements of 26 percent.

Copper slab produced from the smelting process

PO Box 102, Phalaborwa, 1390 Tel: +27 15 781 1571/2 Fax: +27 15 781 3292 reception@sullwald.co.za

Chartered course In line with the charter, its operations have social and labour plans with targets which have been developed in collaboration with employee representatives, communities and BaPhalaborwa Municipality.

The company states: “We are actively moving towards the achievement of employment equity and steadily progressing towards meeting the procurement targets as set out in the Mining Charter.

SULLWALD PROJECTS (Pty) Ltd

SULLWALD PROJECTS is a Phalaborwa based company creating job opportunities for more than 300 local residents. SULLWALD PROJECTS under its directors Hermann Sullwald, Karl-Heinz Sullwald and Kenneth Thupayagae list quality service and community upliftment as the driving force behind their team.

SULLWALD PROJECTS is a Level 4 BBBEE contributor.

MINING

“In order to increase the number of black businesses supplying to the company, we have introduced a supplier development programme, in October 2013, which has seen 30 local companies being selected to start accessing opportunities within the mine.

“The idea is to ensure that we also grow an industry of reputable small and medium sized enterprises that can create further jobs and sustain the livelihood of Ba-Phalaborwa beyond mining.

“The appointment of Historically Disadvantaged South Africans at professional and managerial levels has increased from 44.8 percent at December 31 2010 to 62.6 percent the following year, with the appointment of women reaching 12.1 percent compared to 10.6 percent the previous year.”

The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees; practicing sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates.

We acknowledge and respect our stakeholders’ interest and concerns; striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and service both reliably and responsibly at national and global level.

Key Personnel

Jinghua Han Executive Director and Chief Executive Officer Jinghua became CEO of the Company in 2013 and was appointed to the board as Non Executive Director. He began his business career in July 1985 by joining Handan Steel Company (now part of Hebei Iron & Steel Group) after graduating from the Hebei Mechanical and Electricity Institute where he majored in Industrial Electricity and Automation. Mr Han was awarded an MBA degree in 2008 from the Beijing University of Communications.

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PA L A B O R A C O P P E R ( P T Y ) LT D

Top: Changing the steel drill. Above left: The company supports women workers throughout the mining industry Above middle: Production level Above right: Cage entrance

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Duty of care Palabora is also working hard to improve the lives of those living in the Ba-Phalaborwa communities. A number of initiatives have been launched to help the communities of Makhushane, Maseke Mashishimale, Selwane and Majeje.

Palabora Copper, through the Palabora Foundation, has worked with a number of other stakeholders to deliver a range of projects aimed at improving the health, education and infrastructure in the region.

Projects have included establishment of the new Phelang Wellness and Disease Management Centre which has recently opened to the public

MINING

and been set up to help prevent and deliver treatment, care and support of HIV, TB, STIs and access to social services.

The company has also built a modern Early Childhood Education Centre offering places for 80 children for the Selwana Community and through the Palabora foundation it provides grade eight learners with The Learner Support Programme which offers 120 students with potential an incubation and educational enrichment program in maths, science, biology English and World of Work.

Company Information INDUSTRY

Mining HEADQUARTERS

Phalaborwa, Limpopo, South Africa FOUNDED

1956

Between 2011 and early 2013 The 30TEN+5 programme was designed to assist 45 local entrepreneurs with training and operational and/or financial support to build their existing enterprises.

They have received help in variety of ways from entrepreneurial training, funding support, administrative support or the support of joint venture and partnerships which result in substantive skills transfer.

The company’s commitment to its Palabora mining operations is evident in its allencompassing strategies to not only provide good returns for its shareholder but to display a profound duty of care to both its employees, the surrounding environments and the community.

With such a strong growth plan in place it is clear the company will successfully be producing copper for many years to come.

EMPLOYEES

2,200 KEY PEOPLE

Keith Mathole, General Manager; Corporate Affairs and Company Secretary REVENUE

Not disclosed PRODUCTS

Copper, Magnetite, Vermiculite

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Mintails is on a

mission to revive South Africa’s West Rand

Tailings miner and gold producer will more than double its capacity by October and is looking to expand underground activities, including the regeneration of degraded land to help address the country’s chronic housing shortage Written by: Tom Wadlow Produced by: Bobby Meehan

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The extraction of minerals from ore requires that the ore be ground into fine particles

“This project is a demonstration of principle rather than sheer volume…it shows that underground mining here is possible and a viable thing to do” – Jan Jacobs, General Manager of Operations

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G

old tailings and hard rock miner Mintails is set to boost its production capacity by the end of the year following the regeneration of its flagship Mogale Gold plants on South Africa’s West Rand.

Not only does the Australian-listed firm aim to become the country’s second-largest tailings miner within five years, but also to greatly increase its underground and hard rock activities, signalled by the recent opening of its D-shaft asset.

In achieving this expansion the challenge of regenerating old underground basins comes to the fore, with the company carrying out vital dewatering work which will not only allow it to mine the freed-up gold but also pass on revived land

MINING

post-closure to help address a chronic housing shortfall.

Mogale Gold The extraction of minerals from ore requires that the ore be ground into fine particles, so tailings are typically small and range from the size of a grain of sand to a few micrometres and are usually produced from mills in slurry form.

On completion in September-October this year, the Mogale site will be able to treat six million tonnes of tailings slime, sand and hard rock.

General Manager of Operations Jan Jacobs added: “The re-opening of the second Mogale plant will take capacity up by 400,000 tonnes to over half a million tonnes a month. This is not our only development, but is by far the biggest ongoing project.”

The company, set up in 2005, acquired the Mogale site in 2006 which saw it taken out of government control. In total it controls around 106 million tonnes of tailings resources.

Going underground Alongside its continuing open-pit operations, Mintails is targeting significant growth underground and opened its D-shaft asset in February this year, producing around 5,000 tonnes a month.

“This project is a demonstration of principle rather than sheer volume,” Jacobs said. “It shows that underground mining here is possible and a

Inspection of the mine site by Operations Managers

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M I N TA I L S

Bringing the water quality up to a level where it can be used utilised more sensibly

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MINING

viable thing to do, as we project all-in costs of around $800 per ounce which is extremely cheap.

We are targeting blocks left behind by previous miners in the 1950s.”

“This will be a big focus for us, moving from open-cast mining to significant tonnes of underground production, around 1.5 million over the next five years.”

But for the company to be successful underground it must decant the target basins and bring the water level down from its current level of around 60 metres to an eventual target of 500 metres. It is working closely with the government on the first step of getting the water down to the environmentally critical level of 160 metres.

Such a task requires enormous commitment.

Jacobs added: “It’s not just the pumping cost, it’s the fact it is dilute sulphuric acid and treatment of this is very expensive. Any discharge must be at an environmentally sensitive level and have patented our own process for this.”

Mintails has managed to reduce the cost of treatment from R8 per cubic metre, about the cost of drinking water, to a much more viable R3.

It is also working closely with South African universities to bring the water quality up to a level where it can be used in applications beyond discharge back into the environment.

Rescuing land Not only will clearing basins of acidic water enable further mining activity, it will also revive degraded

Key Personnel

Jan Jacobs, General Manager of Operations Joined Mintails in 2008 with several years of metallurgical experience in the mining industry, specifically in CIL/CIP, Acid and Flotation Plants. Jan has had strategic and operational exposure in project management delivering complex projects. He has brought energy and focus to the operational management of Mintails, with specific value to its CIL plant and furthering the ambitions of the company in delivering its hard rock mining opportunities.

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M I N TA I L S

Tailings are small and range from the size of a grain of sand to a few micrometres

“Mintails aims to release 8,000 hectares of land for settlements having alleviated around 600 to date’

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land to a safe level for the construction of housing, something which is desperately needed in the Johannesburg hinterland.

It is already recovering land through open cast mining by removing the on-surface reef outcrops and stabilising the area, and post-closure operations will become a top priority for the company.

“Although mining has taken place here for the last 120 years no single gold mine has achieved closure of mines, it has always been signed back,” Jacobs said. “We want to be the first ones to close mines.

“Environmentally, the West Rand is among the worst. In the late 1990s all mining slowed down, all

MINING

Site inspection

pumping stopped, all maintenance stopped and land sat there to degrade for 10 years. We need to leave it in a state that is useful again.

“Unfortunately due to a chronic shortage there are a lot of informal settlements popping up and these people are living in areas of high environmental degradation.”

Mintails aims to release 8,000 hectares of land for settlements having alleviated around 600 to date. The programme is made up of a 20-year plan with the company board comprising of considerable expertise in the property market, a key area for the business post-closure.

“This won’t be a quick fix,” Jacobs added. “Dewatering is a short term solution and we have to

Onsite technology

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M I N TA I L S

Onsite technology

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July 2014

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stop it filling up again. We need to bring benefits to the society we operate in while still giving shareholder value and we’re doing this at present.”

Hands on Ensuring Mintails continues to excel above and below ground on these important works is its 250 employees and further 550 contracted workers, all from local communities. This is set to rise to more than 3,500 as underground operations pick up.

Training is thus a huge priority, and the company runs its own hands-on training shaft, giving workers first-hand experience of the vital skills required as well as a practical approach to safety rather than the typically bureaucratic style seen in bigger mining houses. It has not suffered a fatality since it began in 2005.

It is also compliant with Black Economic Empowerment (BEE) regulations through a wholly meritocratic attitude to employment, making this legal must an irrelevancy when coming to hire the best available.

“These people are partners, not BEE partners,” Jacobs said. “A lot of companies have made mistakes in pushing the BEE numbers for the sake of complying with the rules.”

With the best on board Mintails can complete its short term goal of becoming the second-largest tailings miner in South Africa while looking ahead to effective longer-term strategies post-closure, ultimately becoming a key partner in the battle to address the national housing shortfall.

Company Information INDUSTRY

Mining HEADQUARTERS

Armadale, Australia FOUNDED

2005 EMPLOYEES

850 REVENUE

Not disclosed PRODUCTS/ SERVICES

Tailings and hard rock gold mining, acid mine drainage

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Discovery Metals goes underground for copper in Boseto heartland The Botswanan exploration and production expert is building on impressive copper and silver outputs with the Zeta project, one of three proposed underground mines planned to boost lifespan and capacity Written by: Tom Wadlow Produced by: Anthony Munatswa 111

D I S C O V E R Y M E TA L S

D Mine workers

Primary Crusher reinforcing bar

iscovery Metals is set to open up new opportunities underground at its flagship Boseto asset as it looks to maximise exploration possibilities in the north-western region of Botswana.

Having commenced production of copper and silver at its heartland in 2012, the company has been given the first green light by the government to increase production capabilities to around 50,000 tonnes of copper per annum, extending the site’s lifespan from 15 to 25 years if all three expansions go ahead.

The Australian-founded group, renamed Discovery Metals from Discovery Nickel Limited in 2006, also has important operations outside of Boseto in copper, manganese, gold and nickel.

A key ethos behind its continuing exploratory work is sustainability both in its treatment of people (employees and locals) and the environment, ensuring that existing and new developments deliver optimum national benefit while avoiding undue natural harm.

‘These are exciting times for Discovery Metals which will allow the development of our underground mining programme to progress’ – CEO, Bob Fulker 112

July 2014

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Key Personnel

Jeremy Read Chairperson

Boseto Copper Project

Ribson Gabonowe Non-Executive Dir.

Going underground The Botswanan government granted approval for the first of three expansion projects at Boseto in April, giving the go ahead for the proposed commencement of the Zeta underground mine, which will produce around 1.5 million tonnes at 1.3 percent copper per annum.

The mine has ore reserves of roughly 7.3 million tonnes, also including significant reserves of silver.

In a company press release, CEO Bob Fulker

Russell Luxford Non-Executive Dir.

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DR

D com Sub Sa DTH a

W

Head Office: T: +27 14 573 3444 • F: +27 14 573 3555 • E: info@discoverydrilling.co.za Botswana: T: +26 7 261 5870 • F: +26 7 261 5775 • E: louw@discoverydrilling.co.bw

RILLING DYNAMICS DONE DEEPER

Discovery drilling is one of the leading diamond drilling mpanies in South Africa, drilling any where south of the ahara. Drilling from BQ to T6-146 size core. We also do and RC drilling and we manufacture our own drill rigs.

We are big enough to matter and small enough to care.

www.discoverydrilling.co.za

SUPPLIER PROFILE

DISCOVERY DRILLING CONTRACTORS

Established: 1999 Industry: We are proud to present Discovery Drilling Contractors as the complete solution for exploration drilling needs. Our service is solid, based on experience and quality of both management and field personnel, as well as rugged, safe and dependable drilling equipment.

Services: Discovery drilling is one of the leading diamond drilling companies in South Africa, drilling any where south of the Sub Sahara.

Drilling from BQ to T6-146 size core. We also do DTH and RC drilling and we manufacture our own drill rigs. We are big enough to matter and small enough to care.

Ongoing Projects: Keeping to our standards and maintaining momentum in development and delivery of excellent service is the key for a promising future. Although Discovery Drilling already is a sizeable drilling venture, it will not be allowed to slide into an oversized, clumsy entity. Our short to medium term planning is to expand drilling operations into sub-Saharan Africa.I, as the director of Discovery Drilling Contractors want to assure you of our professional service and loyalty towards your company.

Website: www.discoverydrilling.co.za

D I S C O V E R Y M E TA L S

MINING

said: “These are exciting times for Discovery Metals which will allow the development of our underground mining programme to progress and is consistent with the new overall strategic direction of the company to develop our underground mineral resources.�

There is also potential for two more underground mines (North-East Mango 2 and Zeta North-East) which will further bolster production, increase employment and bring greater benefits to local businesses and communities.

The ultimate aim is for the three underground sites to keep the 3.2 million tonnes per

Steel drums

Mine working

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D I S C O V E R Y M E TA L S

The Bosteo Plant at night

annum Boseto mineral concentrator running at maximum throughput and capacity.

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July 2014

Copper heartland In September 2012, the 100 percent-owned Boseto Copper Project was officially opened by the President of the Republic of Botswana, His Excellency Seretse Khama Ian Khama, accompanied by Vice President and Minister for Mines, Energy and Water Resources, Dr Ponatshego Kidikilwe.

MINIG GLOBAL

It is one of the country’s biggest producing sites, with 18 million tonnes of material mined in the six months to December 2013. In this period some 24,495 tonnes of concentrate was produced, containing 9,057 tonnes of copper and 327,062 ounces of silver.

April 2014 was a record-breaking month for copper production at Boseto, with the 2,011 tonnes produced its highest ever, beating the previous high marker of 1,915 seen in July 2013.

The base is situated on the ever-

‘Boseto... is one of the country’s biggest producing sites, with 18 million tonnes of material mined in the six months to December 2013’

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D I S C O V E R Y M E TA L S productive Kalahari copper belt, an area which the company has targeted for further exploration in the coming years.

At present Discovery Metals holds 18 prospecting licences covering 10,513 square kilometres in the Kalahari Copperbelt of northwest Botswana. The prospecting licences extend from 60 kilometres south-west of Maun through to the Namibian border, a distance of more than 280 kilometres.

Concentrate bags ready for shipment

Discoveries beyond copper Though the main focus of Discovery Metals is on Boseto, it also operates in

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Keeps your industry going

MINING

metals beyond copper and silver.

Staying in the Kalahari region, the company holds 17 prospecting licenses (15,000 sq km) as part of its manganese exploration work.

It has also carried out important preliminary exploration of Kraaipan gold in southern Bostwana, directly along strike from significant gold deposits in South Africa, including the well-known Kalgold deposit, which has over four million ounces of gold up to 150 metres underground.

Nickel is another area of interest for Discovery Metals, demonstrated by the Dikoloti Project, a joint venture with The Japan Oil, Gas and Metals National Corporation (JOGMEC) in the north east of Botswana.

The area in question covers 283 sq km and has four nickel-copper deposits with a combined historic resource of 182 million tonnes.

Sustainable ethos What will enable Discovery Metals to make the most of its ongoing and planned exploration and production work in Botswana and beyond is its sustainable mantra, incorporating both the environment and local people.

In 2012, the company published its first sustainability report, a detailed 11-page document outlining its efforts to create a sustainable and ethical operation.

On the environmental side it is committed to minimising harmful impacts in the short term by

Moving through the crushing circuit

‘Staying in the Kalahari region, the company holds 17 prospecting licenses (15,000 sq km) as part of its manganese exploration work’

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D I S C O V E R Y M E TA L S

Boseto Copper Project

Boseto crushing circuit

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deploying rigorous dust extraction methods, and in the long term by using diesel to power vehicles and generate electricity. Other areas such as local biodiversity and water use are monitored closely and involve consultation with stakeholders.

From a human perspective, the Boseto Project was set up without the displacement of any citizens as the site is 20 kilometres from the nearest settlement. Despite this, it has still offered communities blighted by high unemployment the opportunity to gain apprenticeships and work.

Within the company, staff are put through an intensive training programme which includes

MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Gaborone FOUNDED

2003 (Discovery Metals named in 2006) KEY PEOPLE/ TITLES:

CEO, Bob Fulker EMPLOYEES

induction in computer skills, administrative processes, safety, risk management, archaeological finds, environment, equipment operation, process operational procedures, driving, technical aspects, and on the job training.

The company employs three expatriate and several local trainers and supports the programme by the use of consultants.

As more exploration and production opportunities spring up at Boseto and in other parts of Botswana, Discovery Metals looks well-placed to play a vital part in the country, maximising its undoubted minerals potential.

500 REVENUE

R500 million PRODUCTS/ SERVICES

Copper, silver, nickel, gold, manganese

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International Copper Association Ltd: (ICA) Produced by: Stephanie Martinez

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I N T E R N AT I O N A L C O P P E R A S S O C I AT I O N LT D .

W

Miguel Riquelme – Regional Director for the Executive Office ICA Chile

ith offices in Brussels, Santiago, New York and Singapore, the International Copper Association (ICA) organizes, executes and promotes the development of the market, as well as regulatory procedures , as and technological advances in the copper industry.

With nearly 500 members form a supply chain that represents roughly 60% of the world copper production and transformation. This network has 31 centers in 24 countries on the 5 continents and has a budget of about $70 million US dollars in support programs and incentives to promote the use and properties of copper. ICA has regional programs for efficient energy use, regulatory forms, health awareness and sustainable construction.

Over half a century ago the copper industry decided to create the Copper Research Association, INCRA, an organization that grouped together the most important producers in order to execute investigation that would support the productive process. The metals consumer rise was visible after the Second World War. With

“Copper was first used over 8 thousand years ago for the first time�

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L AT I N A M E R I C A

the acceleration of the technological innovation, the industry started a process of analyzing the markets, coming to the conclusion that the use for metals was falling. At the end of the 80’s it created a link with different markets and INCRA developed a Marketing Department, ultimately changing its name to the International Copper Association (ICA). In the decade of the 90’s there appeared two major trends: the development of emerging markets in Asia and environmental requirements by local governments. At this time, the industry empowered IC to embark on a scientific research investigation to study the role copper plays in human health and in the environment.

Miguel Riquelme has occupied the post of Executive Director for ICA Latin America for

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I N T E R N AT I O N A L C O P P E R A S S O C I AT I O N LT D . ( I C A ) over 10 years. With a vast experience in mining, one of his primary preoccupations is pushing to find new uses for copper. When someone comes up with a new innovation we must think of copper. We have proven that one thing leads to another. For example: everything that was lost in telecommunications cables was recuperated with cellular phones and even though these phones don’t function with cables, they contain copper components. Today 600,000 tons of copper is used in cellular phones and other telecommunications apparatuses.

Copper was first used over 8 thousand years ago for the first time and has been present in the most extraordinary innovations through history, including navigation instruments, electronic systems, potable water distribution, and air conditioners, among others. It is a key element in technological inventions, including advanced scientific equipments like the Grand Hadron Collider at CERN (European Organization for Nuclear Investigation), hybrid and electric cars, computers, cell phones, technology that has to do with renewable energy, as well as the fundamental component for the development of the Internet.

It is also an excellent electrical and thermal conductor that is resistant to corrosion, bacteria, easy to join together as an alloy, soft, resistant, 100% recyclable, a catalyst with a beautiful color.

This metal is the most used in electronic equipment and systems, and is the key conductor for a sustainable environment. Copper maximizes w w w. c o p p e r a l l i a n c e . o r g

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the efficiency of different components.

The copper industry invests close to $9 million US dollars in investigation and development of materials, which contributes in co-financing of other international organizations and institutions.

One of the great contributions has been the submergible cages made of copper for breeding of fish in the ocean. To date there are 60 cages in Chile that breed 3 million fish, resulting in that breeding a total of 12 thousand tons of fish in 2012. Another noble contribution is the 130

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development of energy dissipaters that make buildings more stable during earthquakes.

A new market that is currently being developed is one that utilizes copper bacteria properties.

Health institutions, textiles, public transportation, and food preparation are being benefited by these new applications by lowering the high cost of infectious illnesses caused by direct or transferred contact. We not only need copper in our daily lives, but we require copper components and other structures for energy, successful fetal development and the prevention of bone illnesses, cell damage, and anemia.

In the next decades, the technological progress will depend on advanced material, like metals, alloys, compounded materials and other structures, many of which contain copper.

This metal still has a lot to contribute and its future depends on incentives in scientific and technological research to investigate its properties and applications for the future.

“When someone comes up with a new innovation we must think of copper”

Company Information INDUSTRY

Copper HEADQUARTERS

USA EMPLOYEES

43 KEY PEOPLE

John Holland (president), Miguel Riquelme – Regional Director for the Executive Office ICA Chile SERVICES

Association – release for copper benefits ADDRESS

260, Madison Avenue – 16th Floor EMAIL

miguel.riquelme@ copperalliance.cl W E B PA G E

www.copperalliance.org

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Nexans Chile: Connecting Businesses with specialized products and cabling solutions for every sector Written by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Renzo Ghidini (VP Sales and Marketing for South America), Giorgio Migliaro (Marketing Manager for Chile)

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exans Chile’s life in Latin America started after the acquisition of the Chilean company Madeco in 2007, whose operations included five production plants located in Colombia, Peru, Chile, Argentina and Brazil.

After six years of permanent growth in the electric industry, Nexans Chile has established itself as one of the best manufacturers in the world for the wire and cable market. The company’s presence in Latin America has been consolidated due to strategic management based on the 70 years of experience Nexans has in the production of connections.

They currently have presence in more than 40 countries around the globe with around 100 factories, four research centers and a human talent that continues to innovate according to customer needs.

Nexans Leaders Renzo Ghidini is the vice president of Sales and Marketing for South America. This Nexans

“Nowadays, we have the latest technology for the manufacturing of cables. This has allowed us to develop one of the most flexible connectors in the construction market. What is another key element in production aside from technology? Our proximity with clients and a research department located in Chile” – Giorgio Migliaro (Marketing Manager of Chile) 134

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leader has more than 15 years of experience in management positions of various corporations in the region. In April of 2010, he began working at Nexans Chile, holding the position of Director of Sales and Marketing. By September 2013, his current tenure as VP of Sales and Marketing for South America had begun, with Ghidini coordinating and leading the company’s commercial activities and handling annual revenues that exceeded one billion dollars.

Meanwhile, Giorgio Migliaro—with a decade of experience in multinational and national companies and an MBA in Strategy and Industrial Marketing—has driven the growth, profitability and international presence of Nexans Chile from his post as the Marketing Manager of the cabling solutions company since September 2010.

Industrial solutions in cable systems for all sectors

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Cables for mining

Cable systems for ports

Innovative Products for the Mining Sector Nexans Chile works directly with clients to discover their needs and to design better products that could meet those requirements.

“Nexans Chile produces innovations that meet our client’s high standards, and those same clients are the ones that participate in these developments for the mining industry,” says Migliaro.

One example of their innovative solutions is their system for underground pits specifically designed for use in the mining sector. Other examples include: • The largest cable ever created for industrial purposes and installed in Mina El Teniente (formerly called Codelco El Teniente).

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This industrial cable was designed in conjunction with the mine’s engineers to feed underground levels.

• The manufacturing of a light-reflective cable for open-pit or underground mines. This patent offered greater efficiency to operations in darker environments and helped prevent accidents.

• Wiring technology for the prevention of fires and toxic gases.

Additionally, the company has incorporated fiber optics to transmit data.

“The number of special-design cables for the mining sector that Nexans has created for different markets around the world is enormous.

There isn’t a cable that we cannot manufacture or any customer need that we cannot satisfy,” says Ghidini.

“The number of special-design cables for the mining sector that Nexans has created for different markets around the world is enormous.

There isn’t a cable that we cannot manufacture or any customer need that we cannot satisfy” – Renzo Ghidini, VP of Sales and Marketing for South America

Green Technology The company has developed products with specialized materials to meet the green industry needs.

Wind farms: Nexans recently integrated WINDLINK cables to sustain the production of wind power. Its special design allows a long lasting operation against drastic windmill movements.

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NEXANS CHILE KEYLIOS cabling solutions is a Nexans brand established for the solar market. These products support high temperatures and have a long operating life thanks to strong components.

In addition to these advances in the renewable energy industry, Nexans Chile continues to provide a wide range of solutions for the petrochemical, construction, telecommunications and manufacturing sectors, among others. “We have all the products that allow these plants to run with optimum performance�, says Ghidini.

Lead-free products: To increase their supply of friendly products, Nexans Chile is working on eliminating lead stabilizers in its compounds, an attribute valued by customers.

Renzo Ghidini (VP of Sales and Marketing for South America)

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www.alfavinil.com

comex@alfavinil.com

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NEXANS CHILE “We want to have cleaner products, be more responsible and collaborate with the environment,” says Migliaro.

Key Suppliers of Polymers and Metals Suppliers are the essential source in the production cycle of Nexans Chile, as metal and polymer providers are their main allies for the daily incorporation of copper, aluminum and plastic in conductors.

One such provider is CODELCO, a strategic partner of Nexans and a major supplier of metals worldwide. “We have a relationship with them that spans many years, which include both using their copper and developing solutions,” says Ghidini.

They have strong ties with suppliers across the globe and are looking to improve the use of polymers for a more efficient implementation

Giorgio Migliaro (Marketing Manager of Chile)

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Borlink™ Technology: Stop and see what powers your life

Borealis and Borouge are the world’s leading providers of innovative, value creating plastics solutions for the wire and cable industry.

Our solutions are customer-driven and designed to satisfy the industry’s continuously evolving demands for higher technical performance. They can be found in the most challenging extra-high voltage (EHV) and high-voltage (HV) cable applications, as well as medium voltage (MV) and low voltage (LV) energy transmission and distribution cables, building wires, and communications cables.

In answer to the need for production, installation and cable-system lifetime enhancements, our Borlink™ technology creates the innovation links that secure world-class, step-changing solutions and benefit the whole wire and cable value chain.

borealisgroup.com borouge.com

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NEXANS CHILE of this material in industrial applications; for example, those used in photovoltaic parks.

A Commitment to Personal Growth “A company is nothing more than what their employees can be, as they are the most important asset that you have,� says Ghidini.

Nexans Chile is committed to their human resources; therefore, they work on continually developing their professional lives. Their permanent training includes numerous programs that teach them the best practices in the cable industry. Another great benefit that Nexans provides is its ability to give international experience; for example, the new business manager of Colombia was a former executive in their headquarters in Chile.

Investments and Production Goals To increase regional competitiveness as industry leaders, Nexans will expand their capabilities in the manufacturing world, bringing new products and investing in South American factories.

With a focus in Chile, a commercially-open country for the worldwide market, the company will increase their cable production at Nexans Chile, which will bring more competitive costs to international clients, ocal stakeholders and importers.

In the construction sector, Nexans is developing more flexible cables for faster installation and use.

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NEXANS CHILE “Nowadays, we have the latest technology for the manufacturing of cables. This has allowed us to develop one of the most flexible connectors in the construction market. What is another key element in production aside from technology? Our proximity with clients and a research department located in Chile,” says Migliaro.

For the electric field, they will increase the production of superconductors, which are special cables with an additional mechanism to transmit large current capacities in small spaces.

“Nexans produces these superconductors already, and in the future, the market will steadily grow,” adds Ghidini.

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Following the global trend in environmental issues, the company is producing largecapacity solutions for long power lines, whether the surroundings are composed of air, water or underground.

Energizing the Future Despite an unfavorable economic situation and the political instability of various countries in Latin America, an increase in their economic development is expected in this region, allocating more resources to infrastructure and bringing more business to Nexans.

Nexans Chile seeks to stimulate economic and industrial growth in the countries where

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Company Informatoion INDUSTRY

Miningj, Energy and NRDC, Building HEADQUARTERS

Santiago, Chile FOUNDED

2008 EMPLOYEES

400 KEY PEOPLE

Eduardo Calvo (Country Manager), Renzo Ghidini (VP of Sales and Marketing for South America), Giorgio Migliaro (Marketing Manager of Chile) PRODUCTS

they operate. “That’s why we are making these investments in order to increase our capacity, increase our synergy and accompany Latin America in this development,” says Ghidini.

Cabling solutions for all industrial sectors W E B PA G E

www.nexans.cl

www.facebook.com/ariel.ovalle.712 twitter.com/Nexans_ www.linkedin.com/company/pantaleon-sugar-holdings www.linkedin.com/company/7543?trk=prof-exp-company-name

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Cia. Minera Pangea (Mc A Growing Mining Asset for M Metallurgical pioneers

Written by: America Barcelo Feldman Produced by: Taybele Piven Interviewee: Euridice Gonzalez (country manager of Cia. Minera Pangea)

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cEwen Mining, located in the state of Sinaloa in Mexico, acquired Minera Pangea in 2007. Shortly thereafter, the mining industry experienced a transformational period of progress.

The company’s administration experienced significant changes as well with the appointment of Euridice Gonzalez as the new general manager in August of 2007. Gonzalez became one of the first females to hold the highest executive position in the sector.

“We decided to develop this site, and as a result, the company grew and it became feasible to open another mine,” says Gonzalez, recalling the discovery of silver in the vicinity of the gold mine.

Given the increase in metal prices in 2011, the mining industry expanded, providing accelerated operations to Pangea with a new silver deposit and the revival of gold.

By mid-2012, Gonzalez took over as country manager for McEwen Mining Inc., in Mexico.

This period included an investment of 15 million dollars for the purchase of new equipment, the introduction of detailed engineering and the reopening of El Gallo phase I. That same year, another $180 million was invested into the development of El Gallo, “we are working on reducing this capital expenditure,” says Gonzales.

Currently, they are exploring the site for mineral reserves, expanding production and remodeling their gridding minerals system.

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Exploration technology

“We want to increase our production capacity to 4,500 tons per day. We will soon reach the goal with a lower budget and a better delivery time,” says González.

Transforming the Mining Industry As pioneers of the mining industry in the state of Sinaloa, Cia. Minera Pangea has surpassed many challenges to establish a source of income to the company, especially in a town where businesses and government culture were derived from agricultural sources.

Pangea began collaborating with their competitors to educate authorities about the benefits of the mining activity in the region and to avoid discrepancies in the criteria of standards.

“We were pioneers of the mining industry in the state of Sinaloa, as the company grew, more investment came. This brought beneficial changes to our communities” – Eurídice González, country manager

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C I A . M I N E R A PA N G E A ( M C E W E N M I N I N G ) “We were pioneers of the mining industry in the state of Sinaloa, and as the company grew, more investment came. This brought beneficial changes to our communities,” says Gonzalez.

Mining pioneers in Sinaloa, Mexico

www.teknova.mx datos@teknova.mx

Vanguard and Competitiveness They are evaluating the use of cyanide for sustainable purposes in the production area and to comply with the “Clean Industry” certification in mining and mineral exploration.

“There isn’t a mining company in the state of Sinaloa that works with the same quality standards that Minera Pangea does. Although we are a small company, we have corporate backing us to be at the forefront of the industry,”

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says Gonzalez.

Within their list of projects for 2015 is the expansion of their gold mine El Gallo Phase I and their silver mine in Mexico, as well as probably reopening Gold Bar Mine in Nevada (USA), among others.

Operations McEwen Mining—a Minera Pangea corporation— focused on exploration to stimulate growth and increased their high production capacity to elevate metal reserves. Following that, they expanded their national and global exports.

Metal production

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Cia. Minera Pangea Talent

New Industrial Technology As part of their competitive advances, they are incorporating an absorption process with carbon columns in electrolytic cells. In the near future, they hope to integrate renewable energy policies to increase their commitment as a clean industry.

– Euridice Gonzalez, country manager

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Human Resources To Minera Pangea, the most important element of their business is their human resources. Therefore, the company generates courses to ensure security and correct handling by their workforce.

They are currently acquiring a leadership program that will take about four months and are focused on the extensive training on occupational health, safety and environmental laws in order for them to

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Daily machinery

have the best processes on all operations.

Green Policies To maintain a sustainable development, they integrated various environmental policies such as treatment for contaminated soil.

Under the competitiveness environmental leadership program PROFEPA, Pangea reduced their water consumption, increased energy savings and streamlined processes.

100 tonne Terex haul trucks working at the El Gallo 1 mine in Sinaloa, Mexico.

Growth Projections The future of Minera Pangea shows great prosperity, as they continue to develop exploration programs, reserves, production and resources through satellite deposits. w w w. m c e w e n m i n i n g . c o m

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Accelerated production

As their main goal, they intend to double their current production of 30,000 ounces per year in the next three years. The company projects a production of 75,000 ounces at El Gallo 1 per year starting in 2015.

Modern machinery

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A Female Leader in the Mining Sector Euridice Gonzalez was the first female leader in the mining industry in Mexico. For Gonzalez, this appointment made it clear that women have no limits. As a high-level executive in a position that requires major responsibility, she has shown that individuals should not be cloistered or limited to certain activities based on their gender. “When I started working in here as Operations Assistant, the manager told me I was going to grow in the company. Now I know we have to change our focus and think that everything is possible,� she adds.

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Gonzalez has achieved many objectives as country manager; one of those is a joint collaboration with their competitors to form the association “Consejo Minero Empresarial A.C.,” of which she is currently president.

Finally, she emphasized that it is essential to know the mining sector and their contributions for the Mexican economy.

“There isn’t a mining company in the state of Sinaloa that works with the same quality standards that Minera Pangea does. Although we are a small company, we have corporate backing us to be at the forefront of the industry”

Company Information INDUSTRY

Mining HEADQUARTERS

Sinaloa, Mexico FOUNDED

2007 (acquisition by McEwen Mining) EMPLOYEES

445 KEY PEOPLE

Euridice Gonzalez (country manager in Mexico), Patricia Angulo (Administrative Coordinator) SERVICES

Exploration and development of mining properties in Mexico W E B PA G E

www.mcewenmining.com

www.facebook.com/ir.mcewenmining?fref=browse_search – Euridice Gonzalez (country manager in Mexico), twitter.com/McEwenMining www.youtube.com/watch?v=KPZfwwGBWig www.facebook.com/pages/Corporación-Maresa/378166975598528

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Aura Minerals Inc.

Gold exploration done right

With a core set of assets and a comprehensive community based Aural Minerals is paving the way for future gold explo Written by: Robert Spence Produced by: Glen White

y responsibility plan, Canadaloration throughout the Americas

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Sao Francisco at night

A

ura Minerals is a Canadian mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas.

The Toronto-based company has established a portfolio of gold and copper-gold-silver mines in Mexico, Central America and South America.

The Company’s shares are listed on the TSX under the symbol “ORA”.

Operations The Company’s producing assets include the copper-gold-silver Aranzazu mine in Mexico, the San 160

July 2014

Andres gold mine in Honduras and the Sao Francisco and Sao Vicente gold mines in Brazil. The Company’s core development asset is the copper-gold-iron Serrote project in Brazil. The San Andres gold mine is expected to produce approximately 75,000 to 85,000 ounces of gold a year and has an approximate 7 year mine life remaining. Aura has recently completed an expansion of the mine, consisting of a new primary crusher-conveyer system and a new stacking system, whereby throughput of processed material per year is expected to increase from approximately 5 to 7 Mt., while

CANADA

simultaneously providing a reduction in operating costs. In May of 2014, the Company released an updated NI 43-101 Resource Estimate for San Andres in which the Proven and Probable mineral reserves increased 44% to 1.12M oz, with Measured and Indicated mineral resources also increasing slightly to 1.66M oz.

The Company’s largest producer of gold, at approximately 105,000 oz in 2013, is the Sao Francisco gold mine located in western Mato Grosso State in Brazil. Although Sao Franciso is expected to wind down its operations in 2015, the Company expects 2014 to be another strong year of production (estimated 75,000 – 85,000) with continued decreases in cash costs, based upon a revised geological block model which has identified additional mineralization in the

“We continue to pursue a number of options to realize the value of the project including reviewing a revised development and operating plan” – Jim Bannantine, Aura President and CEO

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block model. The Company’s Sao Vincente mine (located 50 kilometres northwest of the Sao Francisco mine) ceased operations in November 2013 however there was sufficient feed material to keep the plant area operating during Q1 2014.

Located in the north eastern region of the State of Zacatecas, Mexico, the Aranzazu mine, consists of both open-pit and underground operations and produced approximately 13.6M pounds of copper in 2013 with 18 to 19 M pounds of copper expected to be produced in 2014.

The Aranzazu mine utilizes a process plant that consists of a three-stage crushing circuit feeding three ball mills with current capacity of 2,600 tons a day with a sulphide flotation circuit to produce a copper-gold-silver concentrate. In July 2013 the Company released the results of the Preliminary Economic Assessment for Aranzazu prepared

by AMC Mining Consultants which evaluated a feed rate expansion at Aranzazu from 2,600 tpd to 4,000 tpd. Basic engineering now fixes the feed rate expansion to 4,500 tpd.

Plans for growth As noted above, one of the biggest objectives for Aura Minerals is the growth of their Aranzazu mine to address scale, efficiency and profitability. The Company is taking steps to expand the project and increase production to 4,500 tons per day which is expected to produce 30M pounds of copper a year once completed. The expansion includes mine development, plant expansion and

Elizeio-Sao Vicente

Karla Ortega Tailings Aranzazu

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“We’re constantly working on improving policies and standards at our mine sites regarding community development and engagement.”

– Gonzalo Rios, VP Corporate Responsibility

the installation of a roaster to lower treatment, refining and penalties charges.

Aura’s core development asset is its Serrote da Laje copper-gold-iron project located in northern Brazil in the state of Alagoas. Proven and Probable mineral reserves are based

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conservatively on mining of the Serrote resource only (do not include satellite deposits) and the results from the feasibility study for the project was released in September 2012. The Company is currently working on financing and/or JV partners.

Corporate Responsibility Alongside enhancing resources and expanding production, the Company is committed to the values of the protection of human life, environmental preservation, and the improvement of its host communities. With a suite of Corporate Responsibility Principles in place, Aura Minerals is focused on comprehensive stakeholder engagement and sustainable development at each and every one of its sites.

According to Gonzalo Rios, VP Corporate Responsibility, Aura is actively involved in stakeholder engagement and community development. “We’re constantly working on improving policies and standards at our mine sites regarding community development and engagement. We have to be very in tune with the community and their concerns, while simultaneously managing expectations regarding what they can expect from us. In addition to providing economic benefits to the regions we work in, we want to foster mutually beneficial relationships with all our communities.”

Company Information Aura Minerals Inc. is a Canadian mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company’s producing assets include the copper-gold-silver Aranzazu mine in Mexico, the San Andres gold mine in Honduras and the Sao Francisco and Sao Vicente gold mines in Brazil.

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Northern Iron Lim

Resources, Infrastructure, Qu

Northern Iron is working toward delivery of increased pr milestones of its high-quality iron ore concentrate throug market penetration and improved efficiency Written by: Andrew Rossillo Produced by: James Hayes

mited

uality

roduction gh increased

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NORTHERN IRON LIMITED

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orthern Iron is an Australian Stock Exchange listed company and is the 100 percent owner of Sydvaranger Iron Ore operation in northern Norway. The Sydvaranger operations use worldclass mining, rail, processing and port assets to produce and export high quality iron ore concentrate to steel industry customers worldwide. Product from the operation currently contains iron ore content of approximately 68.2 percent and silica content of around 4.8 percent.

Existing reserves offer a 20-plus-year mine life.

“When we first started we were at something around 60 percent iron content. Now, we produce a very high quality, high purity iron ore in excess of 68 percent,” says Antony Beckmand, CEO, Managing Director. “That’s been one of our success stories, being able to turn around that quality. It’s been a unique product to bring to the market in terms of quality and purity — a premium grade product.”

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Loading of haul truck, Hyttemalmen

Blazing a Trail with Ultra-fine Product “We produce a pellet feed concentrate, an ultrafine material of 53 microns; it’s extremely fine,” says Beckmand. An everyday item equivalent in size would be a human hair. Beckmand went on to explain the Company’s strategic approach to penetrating the European Market: “There’s only one pelletising plant in Europe; Tata Steel Group, Holland. So that was our target audience at the beginning of the startup. We were able to secure a long-term contract with them.”

“What we’ve been doing over the last two years is trying to get acceptance of our ultrafine product into the rest of the European steel

“When we first started we were at something around 60 percent iron content. Now, we produce a very high quality, high purity iron ore in excess of 68 percent” – Antony Beckmand, CEO, Managing Director

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Ship loading at Kirkenes

Ship loading

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industry, which is set up to take a much coarser material — we’ve been blazing a trail with that.”

The Company’s trail blazing and efficient operations have been paying off so far, with the Company achieving several successive record production quarters. A record production quarter of 545kt in December 2013 was surpassed by a new record of 553kt in the March 2014 quarter, and indications are that the June 2014 quarter will deliver at an even higher rate.

Sydvaranger Gruve AS Sydvaranger consists of four magnetite iron deposits with JORC compliant reserves and resources (Kjellmannsåsen, Fisketind Øst, Bjørnevatn and Tverrdalen). Sydvaranger is located adjacent to the towns of Bjørnevatn and Kirkenes in Norway, approximately 1,500km northeast of the capital, Oslo.

The mine at Bjørnevatn is connected via a rail line to a concentrator facility and ice-free port at Kirkenes located 8km to the north, providing direct access to the Barents Sea. Sydvaranger is the owner and sole user of the railway, and has secure access to the port through long-term contracts with Tschudi Bulk Terminals AS. “The existing infrastructure and world-class ore body is what made this such an attractive project,” adds Beckmand.

The team at Sydvaranger Gruve are determined to continually improve performance in all aspects of their business. Their future success will be underpinned by focusing on the following key strategic drivers: safety, health and environment, productivity, reliability, competence and culture and sustainability. “The key is sustainability. We know we’re a high-cost producer, but we’re also a high-quality producer. And that makes us unique and highly desirable,” says Beckmand.

Asset location continues to be a strong advantage for Northern Iron.

“We’re in Norway, which is about six sailing days from Europe; our main point of marketing. We have an advantageous location. Norway itself is preferable compared to a lot of other start-up iron ore companies based in Africa for example,” says Beckmand. “We’ve been able to access more of

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NORTHERN IRON LIMITED the European market which, geographically, has been a big advantage over shipping to more distant markets and has enabled us to realize a freight advantage in the local European market.�

Part of Northern Iron’s great success in efficiency has come through its strategic partnerships. One such key relationship that especially stands out is The Tschudi Group. The Tschudi Shipping Company AS is the privately owned Norwegian holding company for the Tschudi Group with its roots dating back to 1883. Traditionally as a ship-owner Tschudi Shipping Company has operated in the conventional and non-conventional shipping markets worldwide. Over the past 10 years, the Tschudi Group has developed further into a Shipping, Offshore and Logistics Group.

Felix H. Tschudi, Chairman of the Board for The Tschudi Group highlighted the key points regarding accessibility and logistics that make the Sydvaranger Gruve AS mine site such an intelligent point of

BUSINESS REVIEW AUSTRALIA

Train approaches

operations. “The mine is very well placed for activities in the arctic. It’s in a spearhead position to play a major role; a very promising area for resource development. This is especially true because the Gulf Stream keeps the water open throughout the year. It’s an ice-free, almost non-arctic wedge into the arctic,” says Tschudi.

These attributes support Northern Iron’s current strategic roadmap aimed at progressively expanding production at Sydvaranger to significantly higher levels. The process for achieving further permitting to enable production above circa 3 Mt of product p.a. is currently under way.

Innovation and Efficiency In order to compete with the giants on the global market, Sydvaranger Gruve AS must operate efficiently. Goods, services and manpower w w w. n o r t h e r n i r o n . c o m . a u

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Haul truck being loaded

“What we’ve been doing over the last two years is trying to get acceptance of our ultra-fine product into the rest of the European steel industry, which is set up to take a much coarser material — we’ve been blazing a trail with that” Antony Beckmand

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– Antony Beckmand, CEO, Managing Director

BUSINESS REVIEW AUSTRALIA

costs a great deal in Norway. The Company acknowledged that if they are going to survive in the international market they have to be more productive and deliver better quality than their competitors.

The Company has managed a 15 percent increase year-on-year in total tonnes mined.

Furthermore, there have been successive monthly concentrate production records in January, February, July and December 2013, showing a consistent trend. This is now surpassed by production records during 2014 with the Company on track to deliver a record 2.3-2.4Mt for the year.

Key Focus Areas Key focus areas for Northern Iron include mine production (flexible plans, ready to deliver higher ore feed to match concentrator demand), plant production (momentum, continuing to achieve new production records – reliability is the key to quick improvement) and improvement to current operations (targets developed with bottomup actions providing clear tasks, timeframes and accountabilities). With improving product volumes, reducing unit costs and a providing a great place to its employees to work, Northern Iron seeks to achieve its ultimate goals of building a sustainable long-term business that delivers returns to its stakeholders.

Company Information INDUSTRY

Mining HEADQUARTERS

West Perth, WA KEY PEOPLE / TITLES

Antony Beckmand; CEO, Managing Director EMPLOYEES

400 (200 contractors) REVENUE

$208 million PRODUCTS/ SERVICES

Ultra-fine iron ore concentrate

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RMA Automotive

RMA Automotive offers globa solutions for all industries With the acquisition of Minecorp in Australia in 2013, RMA an expert in the global automotive market.

Written by: Laura Close Produced by: James Hayes

bal Automotive has asserted itself as

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RMA AUTOMOTIVE

RMA provides Fleet Solutions putting all fleet elements together into easy-to-manage-custom-tailored contract.

RMA Automotive is a world leader that provides light- and heavy-duty vehicles, purpose-build modified vehicles and fleet solutions to aid and development organisations and private sector industries in post-conflict and emerging markets around the world.

Their strategic pillars – fleet solutions, managed markets, retail operations, modification, manufacturing, after sales and services – contribute to the company’s vision for a strong global presence and support for their thousands of customers and partners.

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Operational reach RMA Automotive is in 62 markets, has operations in 21 countries and is present in six regions across the globe, including Asia Pacific, Africa, Central Asia, Europe, the Middle East and the Americas. This arm of the company has global manufacturing facilities in Thaliand, Turkey, South Africa and Indonesia (under the RMA Automotive name); Brisbane and Perth (under Minecorp name); and Germany (where they are known as Binz).

There are also retail dealerships in Liberia, Uganda, Kenya, Kazakhstan, Afghanistan, Myanmar,

MINING

RMA imports, distributes and retails world class automotive brands. RMA recently opened Ford and Jaguar Land Rover showrooms in Yangon Myanmar consecutively.

Laos, Cambodia and Thailand, which represent Ford, Land Rover, Jaguar, Chevrolet, Mazda, TATA and Mercedes. RMA Automotive’s clients and partners are some of the largest automotive companies in the world.

With their global presence, RMA Automotive gives their employees the chance to work in different parts of the world. They serve peacekeeping and humanitarian aid missions, relief agencies and government and non-government organisations on every continent. In the commercial and private sectors, RMA has a presence in developing

and transition markets serving clients in mining, construction, oil and gas exploration and extraction, telecommunications and agriculture.

Their product solutions are vast, and include heavy equipment solutions for construction, road buildings, mining and the oil and gas industries (light and heavy vehicles solutions for these same industries as well); purpose-built, specially modified vehicles for diverse and difficult conditions for aid and development projects; fleet management solutions for any situation in any location; and power generation products and

w w w. r m a g r o u p . n e t / o p e r a t i o n s / a u t o m o t i v e /

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RMA AUTOMOTIVE systems for telecommunications, as power supply backup, for hospitals, government and other public locations, for remote population communities.

Minecorp Modification Facility

Minecorp – RMA’s Australian automotive solution Minecorp, acquired in 2013, is RMA’s Australian modification division that specialises in the manufacture, distribution and installation of safety equipment to vehicles operating in challenging terrains like in the mining and industrial sectors.

The business is driven by safety and innovation, and by meeting customer needs.

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MINING

The acquisition has added considerable value to RMA’s overall growth strategies in these industries. RMA Automotive, already one of the world’s largest suppliers of modified vehicles to the mining sector, is uniquely placed to be able to sell turnkey vehicle solutions into new and emerging international markets.

Upon acquiring Minecorp, Hal Feder, President of RMA Automotive said, “We are excited to welcome Minecorp to the RMA family and proud of this important Australian investment. RMA Automotive has long admired Minecorp’s fleet applications, and especially it’s well known mining products, and we believe there are significant opportunities and synergies within our expanding automotive footprint. We’re excited to introduce Minecorp into our organization as we see it as a company with innovative products, recognized brand equity, and a satisfied customer base. We will continue to provide customer-driven fleet solutions to our Minecorp customers and believe there is a great future in working together.”

The company provides quality products and services supporting all sectors, a global network for warehousing and distribution, vehicles solutions for all fleet sizes and vehicles types, large capacity fleet fit-out operations and fleet decommissioning and recommissioning.

Their products are designed to comply with all regulations to get vehicles onto worksites quickly and efficiently.

As part of Minecorp’s innovative solutions,

Power project

“Their strategic pillars contribute to the company’s vision for a strong global presence and support for their thousands of customers and partners”

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RMA AUTOMOTIVE

their M-Pass system – a single part number ordering system to make vehicle fit-outs fast and consistent to all customers – offers three levels of site compliance, including 182

July 2014

essentials, industry and endurance, with the flexibility to tailor packages where required.

Behind the hardware, the inventories, the logistics and

MINING

Company Information INDUSTRY

automotive HEADQUARTERS

Bangkok EMPLOYEES

4,500 – 8,000 REVENUE

$700m - $1bn PRODUCTS/ SERVICES

automotive solutions, mining vehicles

systems is a corps of professional, highly motivated, dedicated people committed to RMA customers, their projects, and ultimately, their success.

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as

The Anit land

The Anitua Group:

solutions for all spects of mining

tua Group, one of Papua New Guinea’s most successful downer companies, has paved a new road for itself after transforming its safety and management programs Written by: Laura Close Produced by: Glen White

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THE ANITUA GROUP

T Anitua Radial Drilling Services is upgrading everything from its systems and processes to its equipment.

he Anitua Group was founded in 1989 by a group of Lihirian landowners.

The people of the Lihir Island chain own the company – six clan groups, the locallevel government and 2,500 individuals are shareholders.

The original purpose of the company was to provide the landowners with the opportunity to participate in the Lihir Gold project at one of the world’s largest gold mines. Now, The Anitua Group is the largest single supplier of goods and services to Lihir Gold Limited and has successfully expanded throughout PNG and even has two Australian-based businesses.

The Anitua Group comprises several different businesses, including Anitua Corporate Services,

AMS ‘big toys’: A Cat 777 haul truck is loaded by a Hitachi EX1900 excavator.

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July 2014

SOLUTIONS FOR ALL ASPECTS OF MINING

The Alliance Group (TAG) is PNG’s leading camp management and catering services supplier to the oil and gas industries.

Anitua Mining Services, Anitua Hardware, Anitua Supermarket, Anitua Protective Services, Anitua Investments, Anitua Properties, Anitua Transport Services, Anitua Radial Drilling Services, Lihir Business Services, Lihir Auto Services, Lihir Investments (Australia), Anitua Logistics (Australia), Anitua Motors, Anitua Constructions, Anitua Farms and the mega camp management and catering groups, NCS Holdings and The Alliance Group (TAG). The Anitua Group’s services include contract mining, construction, security, roadwork and civil construction, quarrying, warehousing and logistics, retail, farming, hospitality, IT services, mine site support and earth moving, training, drilling, property investment and management, transport and shipping, small business services, catering, fresh produce, automotive sales and repairs, catering and camp management – the diversity of these services being clearly indicative of the Group’s capacity to provide solutions for all aspects of mining and resource projects not to mention those in other industries as well. w w w. a n i t u a . c o m . a u

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THE ANITUA GROUP SAFETY STANDARDS

Capable of drilling anywhere in PNG, Anitua Radial Drilling Services is PNG’s only specialist geothermal drilling company with experience on Lihir Island.

“Anitua recognised early that workplace safety had to be fully integrated into all aspects of the business to be sustainable” – Colin Vale, Executive Director

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July 2014

Safety is paramount to The Anitua Group, and over the past several years has been the main focus of Executive Director, Colin Vale.

“Anitua recognised early that workplace safety had to be fully integrated into all aspects of our businesses to be sustainable,” said Vale.

Since sustainability is currently a main goal for the company, a Safety, Health, Environment & Community (SHEC) management system has been adopted; this approach aligns with ISO 18001 (Occupational Health and Safety), ISO 9001 (Quality Management System) and ISO 14001 (Environmental Management System). The SHEC system has several benefits including laying the foundations for a thriving safety culture throughout the Group. The ability to meet stringent safety targets is critical to Anitua Mining Service’s contract with Lihir Gold Ltd. The Alliance Group’s (TAG’s) success in winning catering and camp management contracts on PNG’s mega LNG project is partly due to their exemplary safety record. The oil and gas industry has even more stringent requirements than the mining industry, something that both NCS and TAG have consistently demonstrated they can deliver on.

Vale also touted the company’s two pronged approach to safety. The senior management and supervisors exemplify good safety practices, while lower-level employees participate in safety committees and the development of safe

SOLUTIONS FOR ALL ASPECTS OF MINING

work procedures. This way, all employees feel empowered to work safely, and do not hesitate to raise concerns when they are noticed.

To further prove to employees that safety is a priority, Anitua has set up a safety awards program. “Anitua felt it was important to recognise those individuals that really exemplified great personal safety behaviours in the workplace and used these behaviours to influence the culture for the better,� Vale commented.

Employees are recommended by their peers and supervisors. The SHEC management committee meets and evaluates each of the nominees, and makes their decisions based off

Key Personnel

Colin Vale Executive Director

The AMS maintenance crew ensures optimal operational efficiency of all equipment. w w w. a n i t u a . c o m . a u

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THE ANITUA GROUP of this meeting. The Safety Through Innovation Award is a significant award coveted by each of the Group’s businesses and encourages a proactive and creative approach to solving safety issues within the workplace. The Group has introduced a new award for 2014 to recognise staff who are addressing the issue of violence against women – a considerable community and workplace safety issue in PNG. This is the first workplace safety award of its kind to be offered in PNG, and perhaps the world. Awards are a combination of prize and public recognition and the annual award

SUPPLIER PROFILE

ceremonies are greatly anticipated.

APPROACH TO MANAGEMENT Just like with their approach to safety, management across all Anitua businesses has been streamlined, and a strong core corporate team (including finance, quality, HR, safety, business development and marketing) has been put in place. This structure provides support services to each of the many businesses within the Group, allowing them to focus on operations and growth. With over 3,400 employees, practices like team building and training, regular

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SOLUTIONS FOR ALL ASPECTS OF MINING

management meetings and a strong understanding of the company structure are important to keeping the company moving forward.

“Anitua Corporate must deliver management, processes and services that create more value for the individual business units and the group as a whole than the individual business units can do on their own,” Vale commented.

Anitua works from a flat and lean management structure, which has helped the company become one of the most successful in Papua New Guinea.

The Group has been commended by World Bank PNG Country Manager, Laura Baily, as a stand out example of a successful, special and unique landowner company, and one of the best in PNG. Surveys carried out by the World Bank highlighted that The Anitua Group has the right commercial model, which is deemed critical to ongoing sustainability and success. Laura went on to explain that for landowner companies to be successful, they cannot behave as a social entity – but must have a clear and focused commercial model.

The Group’s clear and explicit understanding of its business goals (operating alongside its clear social goals) and its ability to attract senior talent who have a genuine commitment to development and a focus on building the skills of PNG workers have been key factors in the Group’s success.

The Group was recognised for being able to grow and expand beyond the initial resource project that enabled it to exist – to expand and diversify

Anitua CFO Anthony Neck with a team of Anitua Constructions staff who participated in the 2014 Anitua sponsored haus krai.

Anitua sponsored the Lihir Island haus Krai As part of its Elimination of Violence Against Women corporate social responsibility program.

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Port Moresby Office: Six(6) Mile Telephone: 675 323 9991 Fax : 675 323 9974

For sales, marketing & shipping details please contact: Peter A. Anderson - petera@roan.com.au Ingrid Boldis - ingrid@roan.com.au Phone +61 7 3630 1799 Mobile +61 (0) 419 799 243 Fax +61 7 3630 2980 Rogers & Anderson International Pty Ltd Unit 7A, 191 Hedley Avenue Hendra, 4011 QUEENSLAND, AUSTRALIA

SOLUTIONS FOR ALL ASPECTS OF MINING

Anitua CFO Anthony Neck and Group Business Improvement Manager Liz Keane at 2014 Australia PNG Business Forum and Trade Expo in Cairns

the businesses within the Group and to expand geographically throughout PNG. This successful expansion and diversity of the Group’s portfolio of businesses has contributed to providing sustainable jobs, training a large number of people and helped improve the quality of life of those in the communities in which they operate.

Unlike many landowner companies in PNG, the Group is a commercial success, providing long term benefits back to the community and its Lihirian shareholders. A board consisting of representatives of each of the six major clans ensures that the interests of the local community are well represented when deciding upon the strategic direction of the Group.

Anitua has a number of training programs in place, ensuring staff at all levels have the opportunity to receive training and career progression. w w w. a n i t u a . c o m . a u

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BNG Trading Co Ltd has been operating continuously in Papua New Guinea since 1924 and has established itself as one of the leading suppliers to both the Bakery and Food Service channels in PNG, through the distributorships of Sinmag equipment, Bakels ingredients, Peerless shortenings, Riviana, McCains, Steric and its own brands of catering packs such as Ba Barons and Bakery Delights.

The company has offices in Port Moresby, Lae and Kokopo supplying over 600 customers including groceries, wholesalers, foodservice, bakeries and mining camps.

CONTACT: info@bngtrading.com.pg www.bngtrading.com.pg

Port Moresby: (675) 323 3366 Lae: (675) 472 2266 Kokopo: (675) 982 8561

Tyres To Suit All Applications Bridgestone Tyres (PNG) Ltd Head Office: Milfordhaven Road P.O. Box 459 Lae MP Papua New Guinea Phone: Fax: Email:

(675) 472 1822 (675) 472 6436 admin@bspng.com ABN 38 747 533 287

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44 Achievement Crescent, Acacia Ridge, Qld 4110 Tel: (617) 3274 3500 | Fax: (617) 3274 3997 Email: sales@expac.com.au

• General machinery parts suppliers and all industrial products • Available facility to consolidate orders and arrange the logistics

Proud to be a supplier to The Anitua Group www.expac.com.au

SOLUTIONS FOR ALL ASPECTS OF MINING

Annual employee feedback surveys are conducted and the results acted upon to ensure continual improvement and that the Group remains an employer of choice within PNG. An enormous effort is made to treat all employees with respect and to actively encourage women to participate in the workforce. A person is not terminated without following due process, and senior employees are not terminated without the ED reviewing the employee and case.

The management team makes an effort to “uphold and enforce values, take a stance on bullying and violence in the work place, do what we say we will and communicate regularly with employees,” Vale said. “Create a culture of family and you will attract and retain employees. We have policies and procedures and a code of conduct that we live by.”

Indicative of the culture, values and code of conduct, is the Group’s Corporate Social Responsibility Program, launched on White Ribbon Day in 2013. The main focus is on eliminating violence against women (EVAW). A key component of the program is the implementation of Australia’s White Ribbon Workplace Program.

TAG staff prepared millions of meals over four years for LNG client ExxonMobil.

NCS’ mantra is ‘meeting the challenge every day’

“Anitua felt it was important to recognise those individuals that really exemplified great personal safety behaviours in the workplace and used these behaviours to influence the culture for the better” – Colin Vale, Executive Director w w w. a n i t u a . c o m . a u

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THE ANITUA GROUP

Anitua CFO Anthony Neck marched peacefully to protest violence against women in PNG.

“Interestingly every business plan I’ve ever undertaken has had stretch targets that we smashed!

This always surprised me” – Colin Vale, Executive Director 198

July 2014

EVAW Program Manager, Dr Linda Van Leeuwin reports, “Anitua is very proud to be the first and only PNG business to adopt the program, the purpose of which is to make our workplaces safer for women and more supportive of those of our staff who are victims of violence.”

AN EYE TOWARDS THE FUTURE As The Anitua Group continues to improve its already strong safety program, and continues

to strengthen the foundation for their impressive management system, Vale and the company are looking towards other opportunities outside of the gold mine on Lihir. A number of the Group’s businesses are looking to replicate the success of catering and camp management giant, NCS, which has successfully expanded off the island and now operates in 27 different sites throughout PNG. The Group’s Mining Services business is poised for strong growth, with the country

NCS camp management staff celebrate PNG Independence Day.

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THE ANITUA GROUP

PNG Prime Minister the Honourable Peter O’Neil with NCS MD John Gethin-Jones and Anitua BI Group Manager Liz Keane.

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July 2014

“Anitua is very proud to be to adopt the program, the p workplaces safer for wome our staff who are victims of – Dr. Linda Van Leeuwin, enjoying a buoyant resources industry.

There are currently strategies in place for growth, with a number of opportunities close to fruition that could be potential

SOLUTIONS FOR ALL ASPECTS OF MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Lihir Island, New Ireland Province, Papua New Guinea FOUNDED

1989 EMPLOYEES

the first and only PNG business purpose of which is to make our en and more supportive of those of f violence” , EVAW Program Manager

3,400 PRODUCTS/ SERVICES

game changers for the company.

“Interestingly every business plan I’ve ever undertaken has had stretch targets that we smashed! This always surprised me,” said Vale.

The company’s continuing success, however, should be a surprise to no one.

Mining, Drilling, Roadwork & Civil, Construction, Retail, Auto, Logistics, Security, Small business, Farms, Camp Management & Catering, Logistics, Property Investment & Management, Quarrying, Training, IT services and fresh produce

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