Mining Global Magazine - July 2015

MINING EQUIPMENT In Latin America TOP 10 Corporate Social Responsibility Initiatives GOLDCORP Operational Excellence Done Right

July 2015 • www.miningglobal.com

Joy Global Solving Mining’s Toughest Challenges

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EDITOR’S COMMENT

IN THIS ISSUE

“Luck is the residue of design” – Branch Rickey I N T H E J U LY E D I T I O N of Mining Global,

we delve into the relentless pursuit of improving performance and profitability, also known as operational excellence. We take a behindthe-scenes look at Goldcorp to examine their approach to operational excellence and how the practice works to increase productivity, efficiency and safety for the Canadian miner.

Also this month, we highlight corporate social responsibility (CSR). To truly be a successful mining company, CSR should be the fabric of your business. We highlight the top 10 programs embracing responsible mining and encouraging a positive impact on the communities and environment in which they operate.

Lastly, we take a look at the mining equipment sector in Latin America and uncover what the future holds in terms of exploration and investment.

Don’t forget to check out our company profiles this month, including our special report with Glencore’s technology division.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

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CONTENTS

unooz Oman K Holding

Features OPERATIONS

6 Nevada Mining Association

GOLDCORP: OPERATIONAL EXCELLENCE DONE RIGHT

78

M A C H I N E RY

58

14

MINING EQUIPMENT IN LATIN AMERICA: WHAT DOES THE FUTURE HOLD? TOP 10

20

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES 4

July 2015

84

NYRSTAR Tennessee Mines

112

Orocobre Limited

Doron Constr

96

Brazi Instit

Joy Global

32

Company Profiles EUROPE 32 Joy Global

MIDDLE EAST 46 Kunooz Oman Holding

AFRICA 58 Doron Construction

68

CANADA P eregrine Diamonds Limited

68 Peregrine Diamonds Limited

USA

ruction

78 Association: Nevada Mining Association 84 NYRSTAR Tennessee Mines

BRAZIL

ilian Mining tute (IBRAM)

102 128

Glencore Technology

ROY HILL

96 Association: Brazilian Mining Institute (IBRAM)

AUSTRALIA 102 Glencore Technology 112 Orocobre Limited 120 Danakali Limited 128 Roy Hill

LATIN AMERICA 144 Grupo MĂŠxico

Danakali Ltd

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O P E R AT I O N S

To make it in the mining industry, excellence is not an option: it’s essential.

Writ ten by: ROBE RT SPE N C E 7

O P E R AT I O N S IN TODAY’S DECLINING mining environment it’s not enough to be good--you have to be great. There’s simply no room for mediocrity.

For mining companies to maintain high productivity and low costs, while operating responsible and with integrity, it starts with Operational Excellence.

Similar to management philosophies such as Lean Manufacturing and Six Sigma, Operational Excellence

strives towards sustainable improvement of key performance metrics through the application of a variety of principles, systems and tools. The idea is to go beyond traditional models and initiatives of improvement in order to achieve longterm change in organizational culture.

Operational excellence is more than just short-term expenditure reduction. It’s about a proven operations management system

Part of Goldcorp’s Marlin Mine in Guatemala.

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July 2015

G O L D C O R P : O P E R AT I O N A L E X C E L L E N C E D O N E R I G H T

driven by a culture of continuous improvement. For Vancouverbased mining company Goldcorp, operational excellence consists of being great in lots of little things.

Vision for greatness “Operating for Excellence means systematically identifying opportunities to improve efficiencies, optimize value, doing things better and smarter, and continuing

to challenging the status quo,” said Todd White, Senior Vice President, Business Excellence.

According to White, the company follows a Change Acceleration Process based on a model created

by General Electric. The idea involves uncovering opportunities and then leading change effectively, with specific emphasis on how change will impact people.

“Our focus is on affecting change at levels of the organization that involve people that are responsible for critical metrics. For instance, a pit supervisor knows that they need to hit a certain target with a shovel. They also need to know that if we’re not doing that, our tons per day mined is going to suffer. We need to get information to these sorts of people to affect tangible positive change, so we are focus on getting the right information to the right people at the right time.”

As part of its Operating for Excellence (O4E) program, Goldcorp has integrated a unique workforce to ensure operations are continuously monitored and examined for additional improvements.

“Our O4E group are facilitators on site. They help operations personnel 9

O P E R AT I O N S critically review performance in their part of the business and help them to focus on where improvement can be made,” said White.

“However, at the end of the day, those employees are responsible for the results and they need to be engaged in the process and have to believe that improvements are necessary and obtainable.”

Mine Site Closure and Reclamation at Goldcorp

‘Our O4E group are facilitators on site.

They help operations personnel critically review performance in their part of the business and help them to focus on where improvement can be made’ – Todd White, Senior Vice President, Business Excellence.

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July 2015

Necessities: Like any great operational excellence plan, technology is playing a pivotal role in assisting Goldcorp in achieving results.

The miner is utilizing various technologies to make real-time improvements as well as maximizing potential. For Goldcorp, live data review has been critical in its Operating for Excellence program, allowing the company the ability to collect data and feed it through its operations in real-time.

The company’s Eleonore mine in Quebec is a great example of the data review process in action.

“We have supervisors underground that are able to see exactly how the mine is operating at any given time. The ability to feed data to

G O L D C O R P : O P E R AT I O N A L E X C E L L E N C E D O N E R I G H T

Goldcorp Eleonore Mine Headframe supervisors quickly, allows these decision-makers to make accurate and informed decisions in real-time.

They are constantly connected to data systems and the power of this is immense,” said White.

“Technology is having a positive effect on production and efficiency and allows us to resolve an issue within the hour, whereas in the past it might have taken several hours.”

As part of its focus on operational excellence, Goldcorp continuously seeks out new and innovative ways to improve its operations.

“At our Penasquito operation, we have increased daily tonnage put through the mill. This has been achieved through seeking out incremental improvements and identifying and eliminating hurdles to optimal production,” said White.

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O P E R AT I O N S

Goldcorp provides dental care and food aid to support local communities

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July 2015

G O L D C O R P : O P E R AT I O N A L E X C E L L E N C E D O N E R I G H T

“When it comes to our vision of ‘Together, Creating Sustainable Value’ – we do that by being as efficient as we can with our recoveries in the mill, and across our entire operation. We are constantly looking for operational efficiencies.”

Commitment to responsible mining The gold standard for Goldcorp is responsible mining. It’s a companywide commitment that centers on every business decision the company makes. Two key areas the company is focused on is energy and water efficiency.

“Energy is one of our biggest operational costs and the efficient use of water in areas where we operate is critical,” said White. “Every opportunity we have to be more efficient in relation to the usage of fresh water and overall reductions in energy usage is not only good for business, but is also responsible.”

Responsible mining also plays into Goldcorp’s O4E program. Over the last 18 months, the company has taken some big steps in reducing its energy usage at its Musselwhite Mine in northern Ontario, which

strives to reduce diesel fuel usage and greenhouse gas emissions.

“We also have some great examples of responsible water management happening at many of our sites, especially those based in South America,” said White. “We believe that responsible water usage contributes to responsible mining practices, in terms of optimizing our water use by water recycling, and limiting the introduction of fresh water into our processes.”

White concludes, “Every one of us, from senior management through the work crews at each of our operations, strives to conduct our business to ensure lasting social and environmental progress and economic growth for all stakeholders throughout the life of a Goldcorp mine and well beyond.”

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M A C H I N E RY

Mining Equipment in Latin America:

WHAT DOES THE FUTURE HOLD? W r i t t e n B y: R E B E C C A C A S T R E J Ă“ N

The mining equipment market in Latin America is poised to be a hot spot for mining exploration and investment at a global level with major investments expected in upcoming months.

14 July 2015

DESPITE RECENT STRUGGLES in the mining sector, Latin America continues to be an important destination for mining investment, exploration, development and equipment manufacturing.

During 2013, Latin America produced approximately eight percent of the global demand of mining machinery, according to data

from Future Market Insights, and its contribution towards global mining equipment sales was registered at 15 percent during that same year.

The mining industry is expected to grow in the next six years as demand and consumption of natural resources, especially metals, continues to increase. The equipment market in Latin America is poised to

be a hot spot for mining exploration and investment at a global level.

Hot spot for mining equipment The region continues to be one of the largest producers of the world’s three most important metals: iron ore, copper and gold.

One of the key reasons growth of the Latin American mining equipment 15

M A C H I N E RY

VIDEO: Komatsu’s Autonomous Haulage System market continues to accelerate is the enhanced demand for these natural resources in recent years.

The region currently produces 45 percent of the global copper, 21 percent of the global zinc, 50 percent of the global silver, and 26 percent of the global molybdenum.

In addition, the introductions of next generation mining equipment such as Autonomous Haulage System (AHS) also serve as driving factors for the growth.

Market segmentation of Latin American mining equipment can be done on the basis of equipment, 16 July 2015

application and countries. On the basis of equipment, the Latin American mining equipment market includes mineral processing equipment, surface mining equipment, underground mining equipment, mining drills and breakers, crushing and screening equipment, etc.

On the basis of applications, the Latin American mining equipment market segmentation includes metal ore mining, coal mining and mineral mining.

The main countries developing their markets have been Argentina, Brazil, Mexico, Chile, Panama,

M I N I N G E Q U I P M E N T I N L AT I N A M E R I C A

Peru, Ecuador, Colombia, Paraguay, Uruguay, Bolivia and Venezuela.

In addition, foreign investment, especially from China, the United States, Canada and Australia, is expected to play a significant role in the growth of the Latin American mining equipment market.

According to reports, the global mining equipment market will grow at a moderate CAGR of 8.6 percent from 2012 and 2018, and be worth $117 billion by 2018.

Latin America is expected to be a major driver for this growth.

Major players The Latin American mining equipment market is largely

comprised of Argentina, Brazil, Mexico, Chile, Panama, Peru, Ecuador, Colombia, Paraguay, Uruguay, Bolivia and Venezuela.

Each country is known for its own approach in mining. Chile is known for the adoption and introduction of advanced technologies such as autonomous haulage system. Peru is the reserve of key minerals and has been witnessing a surging demand for copper and hence the expansion of the associated mining equipment market. Brazil has an integrated approach for the production and sale of mining equipment. Panama has an active stock operation (PSO) for the support of the mining industry. In line with the positive future of the

Latin American countries now attract about one-quarter of all the mining investments in the world

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M A C H I N E RY

The Latin American mining equipment market is largely comprised of Argentina, Brazil, Mexico, Chile, Panama, Peru, Ecuador, Colombia, Paraguay, Uruguay, Bolivia and Venezuela

18 July 2015

M I N I N G E Q U I P M E N T I N L AT I N A M E R I C A

Latin American mining equipment industry, Peru and Chile are expected to receive double digit foreign investments in the next six years.

For mining equipment manufacturers, some of the prominent players include Sandvik AB, Hitachi Construction Machinery, Komatsu Limited, Atlas Copco Ab Joy Global Inc. Breaker Technology, Astec Industries, Bucyrus International, Caterpillar Incorporated, China Coal Energy Company Limited, Tecpalsa, Tecmap, Tiesa and Igaretta. Among these, Komatsu Limited in the whole of Latin America, Tecpalsa in Colombia, Tecmap and Tiesa in Panama and Igaretta in Argentina are active players in the Latin American mining equipment market.

In terms of profitability for miners, commodities prices for gold and iron ore aren’t where they should be.

However, top mining countries like Peru and Chile are expected to see an increase in the development of mining projects across the region.

What next?

According to BNamericas Mining Readers Survey 2014, 44.4 percent of mining company respondents saw

Chile as the South American country with the best mining investment climate. Chile was followed by Peru (22.2 percent), Brazil (14.8 percent) and Colombia (7.4% percent).

As the second largest producer of both copper and silver, and the sixth largest producer of gold, Peru is expected to receive $56 billion of investment for mining development.

One of the most significant challenges will continue to be infrastructure and the need for significant development over the next few years. Willis, a leading global risk advisory organization, reports that Latin America will have to invest about nine percent of its GDP in infrastructure every year from now until 2020 inclusive in order to eliminate the gap between it and South-East Asia.

As of today, Latin America and Asia Pacific are the leading regions in the global mining equipment market on the basis of coal mining, oil refineries, and other underground mining activities. Propelled by the growing mining production and other related sales in China, India, and Indonesia, the mining equipment market is expected to expand remarkably in the next few years.

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TOP 10

Corporate Social Responsibility

INITIATIVES A roundup of the top 10 best corporate social responsibility initiatives from mining companies around the world

Written by: Robert Spence

Corporate Social Responsibility (CSR) is often used to describe the social and environmental contributions and consequences of corporative activities and action. It entails three key dimensions--economic development, environmental protection and social cohesion.

To truly be a successful mining company, CSR should be the fabric of your business. We highlight the top 10 programs embracing responsible mining and encouraging a positive impact on the communities and environment.

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TOP 10

10 IAMGOLD

CSR: Devonshire Initiative

IAMGOLD is a founding member of the Devonshire Initiative, an organizational forum for leading international development NGOs and mining companies to come together in response to the social agenda surrounding mining and community development issues. The objective of the Devonshire Initiative is to improve social and community development outcomes wherever Canadian mining companies operate overseas.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y I N I T I AT I V E S

09 Kinross Gold CSR: Project C.U.R.E

Canadian miner Kinross Gold has partnered with Project C.U.R.E to deliver $7 million in donated medical supplies to Muritania and Ghana over the next three years. Under the partnership, medical supplies like X-ray machines, autoclaves, wheelchairs and operating tables will be delivered. Specialized program in maternal and neonatal care will also be offered.

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TOP 10

08 Anglo American CSR: Zimele

For the last 25 years, Anglo American has been striving to provide enterprise development within local communities in which it operates. The company’s global initiative, Zimele, enables SMEs to operate within the mainstream economy through a combination of financial support and mentorship. Over the past seven years, Zimele has supported 1885 companies, employing over 38,000 people, with a combined turnover of roughly $500,000 million.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y I N I T I AT I V E S

07 BHP Billiton CSR: LEAD Project

In 2014, BHP Billiton launched the LEAD Project in Mozambique, pledging $8.8 million over five years to the new agricultural initiative to benefit farmers from three districts in the area.

The LEAD – Livelihoods Empowerment and Development -- project aims to work with more than 50 producer organizations that represent farms to increase their income and business opportunities, improve production capacity through farm-level training and facilitate access to financing.

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TOP 10

06 Goldcorp CSR: RIGHT TO PLAY

From charitable donations to sponsorships, Goldcorp provides support for a wide variety of initiatives and organizations serving local communities. One of its bigger contributions has been investing in a better future for participating First Nations youth in the Right To Play Program. To date, Goldcorp has helped benefit more than 1,000 Aboriginal children and youth.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y I N I T I AT I V E S

05 Rio Tinto

CSR: Aboriginal Scholarship

Nelson Mandela famously stated: “Education is the most powerful weapon which you can use to change the world.� For mining giant Rio Tinto, that mentality is the driving force behind its latest CSR initiative--the Aboriginal Scholarship program, which enables Pilbara Aboriginal people and Aboriginal people from other areas to further their education through university studies.

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TOP 10

04 Vale

CSR: AER Project

With funding of $1 billion, Vale in Canada has launched the largest single environmental investment in the history of Sudbury, Ontario. The company’s AER project aims to provide cleaner air, greener landscapes and more jobs to increase the quality of life in the city of Sudbury. The core of the project includes: 85 percent reduction in sulfur dioxide emissions from Vale’s smelter in Sudbury, and a significant reduction in metals and particulate emissions. The project is expected to be complete in 2016.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y I N I T I AT I V E S

03 Teck Resources CSR: CAPE Fund

One of the more innovative programs, Teck Resources is one of 21 founding investors in CAPE Fund. The $50 million private equity investment fund aims to support and enable Aboriginal entrepreneurs or communities to better themselves by pursuing business opportunities, creating wealth and simultaneously building management capacity in Aboriginal owned companies.

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TOP 10

02 Barrick Gold CSR: Heart of Gold Fund

Simply put, Barrick Gold wants to help support non-profit organizations and other charitable endeavors any way it can. The company’s Heart of Gold Fund, an initiative that makes seeking donations and sponsorships from Barrick easier, is focused on contributing to education, health and environment, culture and recreation, economic development, and community capacity building and leadership.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y I N I T I AT I V E S

01 Newmont Mining

CSR: The Nature Conservancy partnership

Environmental conservation is an important aspect of corporate social responsibility. For Newmont Mining, the goal is to be a part of the solution.

Earlier this year, the mining company entered into an agreement with The Nature Conservancy to develop a conservation plan for 1.2 million acres of its private lands and associated federal grazing allotments in western United States. The goal: restore the health of the sagebrush ecosystem, which provides food for the birds and conceals them from predators.

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SOLVING MININ TOUGHEST CHALL

Joy Global partner directly with their customers to develo systems that lower their total cost of ownership while safe Written by: Abigail Phillips Produced by: James Pepper

NG’S LENGES

op innovative product ely maximising production

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JOY GLOBAL

J Worcester (UK)

oy Global knows a thing or two about mining and without them, mining itself would look fundamentally different. From the humble beginnings of Joe Joy, Henry Harnischfeger and Alonzo Pawling; today Joy Global stands as the leading supplier of advanced equipment, systems and direct services for the mining industry.

Trading on the New York Stock Exchange (NYSE) since 2011, the global corporation designs and manufactures equipment for both surface and underground mining, used for a variety of applications and minerals.

Joy Global has a vision; to be a world-class service company delivering the most reliable and productive products, systems and solutions that solve mining’s toughest challenges. In order to achieve this, facilities and equipment service centres span six continents and more than twenty

Joy Continous Miner in operation

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July 2015

EUROPE

Direct Service

distinct countries. Their mission is clear. Joy Global want to partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference. They are grounded in experience.

Grounded in performance and innovation.

Grounded in their values; Integrity, Respect, Diversity, Teamwork, Reliability and Performance.

Partnering for performance Joy Global has the world’s largest direct service network, putting the customer at the heart of its operations. An unwavering focus on the customer drives everything they do. Joy

‘Joy Global want to partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference’

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THIELE - partner for development of JOY BROADBAND LOW PROFILE CHAINS

JOY GLOBAL

EUROPE

Global has the competitive advantage, and at the heart of it is a direct service model that emphasises collaboration, safety and efficiency.

The business takes its service to the customer, opening Joy Global Service Centres within close proximity. Eurasia President, Dean Thornewell said: “We believe that Joy Global employees offer our customers the best service and level of technical expertise. With this in mind we open Service Centres across the globe to be on hand. We wholly believe in working directly with our customers to help them overcome their toughest mining challenges. This approach is our USP and makes us quite unique.�

Building with industry challenges in mind By working alongside their customers, Joy Global is well positioned to understand the

SUPPLIER PROFILE

THIELE GMBH & CO. KG

THIELE GmbH & Co. KG is an innovative manufacturer of chains and forgings and a world market leader in the segment related to chain systems in conveyor and hoisting equipment for coal mining. THIELE products are used all over the world for mining mineral raw materials, for lifting, moving and securing loads and for conveying bulk materials.

Whether in mining raw materials, whether in power stations, whether in base materials factories producing cement or fertilizer, whether lifting and securing valuable machines or using wind power, THIELE is always a reliable partner for safe, efficient processes. Hence production at THIELE is subject to very stringent quality control.

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challenges that they face on a daily basis. “We take pride in working closely with our customers, understanding their issues, realising industry trends and then providing solutions,” notes Thornewell. Not only does this ensure that Joy Global has a first-class relationship with the mining industry, it also allows them to change the game in mining through new products, services and technical development. “As our customers move into new markets, we move with them,” Thornewell points out. “Mineral extraction around the world is becoming more complex every day. We provide equipment and technology solutions to market that help with extraction in more difficult ore bodies and locations.”

“We monitor the markets, our customers and their plans for future growth and development.

We look at key indicators of the world economy and shape our business accordingly. We are agile and respond to challenges easily and quickly.

The equipment and technology we develop is adaptable to the ever changing industry.”

Creating growth Performance and new product development has been critical to Joy Global’s long term growth and success, and the company has always been on the leading edge of innovation.

Thanks to Joy Global, today’s mines are more sustainable and more automated than ever.

Providing smart, innovative products and systems, Joy Global is moving the needle in

Dean Thornewell

“We take pride in working closely with our customers, understanding their issues, realising industry trends and then providing solutions” – Dean Thornewell , Eurasia President at Joy Global

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For over fifty years Becker Mining Systems has been suppling unique system solutions for the mining sector. Our solutions, which include Energy Distribution, Automation, Communications, Transportation and Roof Support, have evolved from the needs our clients and years of International experience, bringing you the most advanced, reliable and efficient systems available, With susbidiaries and service centres in every major mining region of the world, Becker Mining Systems can provide you with complete solutions, wherever and whenever you reguire them www.becker-mining.com info@de.becker-mining.com

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mining productivity with safety improvements, production increases and lower costs.

As Thornewell explains, “We are very focused on helping our customer have complete automation of the mining process. Our R&D team is constantly working towards taking people out of harm’s way and using automation to operate the equipment.” An automated mining process allows for performance optimisation, health monitoring and 24/7 support. JoySmart Services uses advanced technology and prognostics to deliver technical insight and automation services to the mining sector. Joy Global continually implement programs and initiatives to create a more efficient and effective The P&H L1850 wheel loader

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JOY GLOBAL business. These are not just programs; they are part of their core values and therefore represent the focus on things that matter.

The Joy 12HM31 continuous miner

Taking Joy Global to the next level Continuous improvement is critical to business development and delivering world-class service is built upon world-class processes and metrics.

Joy Global Business System (JBS) is an in-house operational excellence strategy which drives productivity through a lean initiative that simplifies the process, eliminates waste, leverages automation and keeps people out of harm’s way. “It drives factory performance all round the

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Joy continuous haulage (FCT) in operation

world,” continues Thornewell. “We have made significant improvements at factories across the globe by investing in continuous improvement.

Zero harm mentality “Safety is our number one priority,” states Thornewell. “Our aim is to achieve zero harm, even down to the smallest cut finger. Every day that we have zero harm is a success.

We also believe that safety is our customers’ number one priority – the need for safety truly underpins the industry as a whole.”

We have all heard of 5S. But Joy Global has its own 6S measuring system, which includes ‘safety’ as number one on the list. “We have an entire department dedicated to health and safety, which benchmarks performance

“We have made significant improvements at factories across the globe by investing in continuous improvement.”

– Dean Thornewell

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JOY GLOBAL

Joy DT Series Trucks

across the globe. At the end of each year the best performing factories are recognised by the President of the business, so it’s very much part of our corporate culture.”

Joy Global will be ready to “solve mining’s toughest challenges”

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July 2015

People management Joy Global employs in excess of 14,000 people worldwide and has a robust talent development program in place. There is not only substantial in-house development, but also external affiliations with universities and colleges. “We identify people early on as potential talent; senior leaders, technical innovators, and people

EUROPE

Company Information INDUSTRY

Mining HEADQUARTERS

Wisconsin FOUNDED

1884 EMPLOYEES

14,000 REVENUE

$4 Billion

leaders. We have very structured reviews of people, for example a series of criteria that we measure people against. We very much believe in developing people within the business.”

Joy Global has achieved huge success over the years by focusing on its people, innovation and continuous improvement, but most importantly it realises that its customers are central to the business, holding it together and driving it forward. As long as mining continues to pose the tough challenges, Joy Global will be ready to “solve mining’s toughest challenges”.

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KUNOOZ OMAN HOLDINGS JOURNEY TO AN IPO Written by: Nye Longman Produced by: Craig Daniels

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KUNOOZ OMAN HOLDINGS SAOC

The companies of the Al Rawas family were consolidated into Kunooz Oman Holdings in 2014; the group is hoping to extend its growth with a listing on the Muscat Securities Exchange

T

he consolidated companies of the Al Rawas family, with a total revenue of $ 43 million in 2014, are strategically positioned within the Sultanate of Oman, at the crossroads of some of the fastest growing economies in Asia, Africa and Europe.

Oman has an international reputation for stability in its political, economic and social systems and has created strong infrastructure, healthcare, communication and trade networks, as well as an advanced transportation system off the back of its flourishing oil-based economy.

Journey to an IPO The Government of Oman has committed to diversifying its economy in order to reduce its reliance on oil exports; the mining and downstream capabilities of Kunooz, therefore, are set to play central role in this strategy. It is with this

Crusher at Mihwar Al Wifaq in Muscat

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July 2015

MIDDLE EAST

Key Personnel Quarrying operations at Al Rawas Marble in Ibri, Northern Oman

bright future in mind that Kunooz Oman is being positioned for an Initial Public Offering (IPO) on the Muscat Stock Exchange.

CFO Krishna Karikurchi said: “Kunooz Oman has spent the last two years preparing itself for the listing, restructuring and professionalising itself into a consolidated entity.”

The group has recently benefited from relaxation of 15 percent off its initial share capital floating by the Capital Market Authority (CMA) which has taken the required capital from 40 percent down to 25 percent; the Oman Arab Bank has recently agreed to become the venture’s investment bank.

As part of its IPO, the company enlisted the unique talents of Dean Cunningham as the group CEO. He was chosen for his distinct skill set that, since his appointment last year, has enabled the group to take significant steps to reach this

Krishna Karikurchi CFO Krishna Karikurchi is a Chartered Accountant with extensive experience in corporate finance and initial public offers, as well as restructuring business units, corporate governance and company law. Prior to his current position he was Group Chief Financial Officer of Al Rawas Holding and its group companies, wherein he played an important role in the restructuring the business.

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KUNOOZ OMAN HOLDINGS SAOC

“We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs” – Dean Cunningham, CEO

critical stage. Having completed a BSc in Mining Engineering, Cunningham accrued extensive experience in corporate finance, marketing, project management, private equity and mining and, overseeing IPO listings for several companies with a similar remit to Kunooz.

He said: “I came in October last year to professionalise the business, take it to listing, to implement financial and policy structures and realise its human resources. I have also been tasked with growing the business both locally and internationally into a global mining, processing and value added business: “We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs, endeavouring daily to de-

Al Rawas Gypsum Mining Operations Salalah

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July 2015

MIDDLE EAST

Key Personnel

Safety Meeting at Mihwar Al Wifaq in Muscat.

risk our day to day decisions making to enhance the returns to all stakeholders�

The Kunooz Group The company logo has been designed to be truly reflective of the group. Seamlessly blended together in the design is the Kunooz name (which is Arabic for treasure) housed within a lattice of five shades of green to represent the five divisions of the group.

Al Rawas Mining The Al Rawas Mining Company is located in Salalah, the southernmost region of Oman and has a mining lease to extract 90 percent pure Gypsum. It commenced works in 2010 and since then has established a crushing and screening

Dean Cunningham CEO Dean Cunningham has a unique combination of skills and experiences which made him an ideal candidate for managing Kunooz Oman Holdings through the crucial stages of its IPO. Dean holds a BSc in Mining Engineering and has worked in corporate finance, marketing, project management, private equity and mining.

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International Heavy Equipment llc • P.O.Box 800 postal code 111 • Muscat • Sultanate of Oman

KUNOOZ OMAN HOLDINGS SAOC

MIDDLE EAST

plant with a 2 million tonne annual capacity.

Currently AMC supplies gypsum to India, Africa, Qatar, UAE, Bangladesh and Japan.

Mihwar Al Wifaq Mihwar Al Wifaq is a well-known mining company active in the Muscat area with a high-quality plant producing a range of Gabbro aggregates and crushed sand for the construction industry. It is strategically located in Wilayat Seeb to make use of the prime quality natural raw material available in Al Jifnayn.

The Kunooz Group is made up of seven companies

Majan Mining Company Established in 2006 in Salalah, Majan Mining mines and processes limestone for the global steelmaking industry and also supplies a number of clients across India. Its competitive advantage is not only the high quality and close proximity to its customers but the reactivity of the material, which enables lower tonnages consumption in the steel manufacturing process which has a net cost saving impact for its customers.

Al Rawas Marble Al Rawas Marble and Granite (RMG) Co. LLC was established in 2007 to offer the finest Omani marble to both the local and international markets.

Products exported by RMG globally can be seen adorning numerous architectural marvels across South Korea, Europe, Australia and the UAE. The company maintains a substantial stock of solid

Al Rawas Gypsum Mining Operations Salalah.

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KUNOOZ OMAN HOLDINGS SAOC

“People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside of the box” – Dean Cunningham, CEO

Al Rawas Transport, Machinery Hiring and Trading handle all the transporation requirements for the group 54

July 2015

blocks, slabs and tiles to ensure that each client’s demand is methodically met regardless of scale and destination.

Salalah Readymix Salalah Readymix is a well-established leader in the local ready-mix concrete industry. Since 2006, the company has had a successful track record of completing numerous high profile projects while adhering to global quality standards. The company currently has 3 batching plants including a fleet of transit mixers, concrete pumps, trailers and cement bulkers.

Carmeuse Majan Carmeuse Majan LLC is a joint venture company led by the Belgium-based Carmeuse Holdings SA. The company is located in the Salalah Free Zone and has a single kiln with capacity to expand to an additional seven, each with an annual lime capacity of 125,000 tons per year. The majority of the plant’s output targets the Indian market, where demand for lime products is expected to rise sharply. The Dhofar region’s close proximity to the Indian and Middle Eastern markets, coupled with the presence the port at Salalah, are key factors underlying the success of the company.

Al Rawas Transport, Machinery Hiring and Trading Al Rawas Transport, Machinery Hiring and Trading LLC (ART) meets all the transportation

MIDDLE EAST

Weekly schedule maintenance at Mihwar Al Wifaq in Muscat.

requirements within the Group. Currently ART is catering for the complete requirement for Al Rawas Mining moving around 2.2 mtpa to 2.4 mtpa of Gypsum between its mines and the port of Salalah. In addition, it also caters for Salalah Mills, moving cargo over 1000 kilometres between Salalah and Muscat.

Cunningham commented that, despite often differing remits, the group was able to maintain an innovative spirit, he said: “People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside the box. It’s this creativeness, as well as a sense of being part of a company that will drive successes that give us our competitive advantage as we step into the global market.”

Computerized batch plant controls at Salalah Readymix.

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KUNOOZ OMAN HOLDINGS SAOC

Loading Gypsum at Al Rawas Mining into AL Rawas Transport vehicles destined for the Port of Salalah.

Quarrying activity at Al Rawas Marble at Ibri in Northern Oman.

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Taking on the world While the companies that make up the Kunooz have all had to make changes in order to meet the stringent requirements of the IPO, the group is already well positioned to compete at a global level. Having a base in Muscat and regional office in Salalah close to the local Free Zone and the Deep Water Port provides Kunooz Oman with access to the coastlines of Asia and East Africa, in addition to the other GCC countries.

The country also has over 1,700 kilometres of coastline which opens up trade with the Middle East, India, and beyond. Over $2 trillion worth of goods passes through the Salalah Free Zone each year with Kunooz Oman subsidiaries and associates contributing a significant amount of total exports through the bulk terminal in Salalah Deep Water Port.

Kunooz Oman has a strategic advantage with

MIDDLE EAST

Company Information INDUSTRY

Mining HEADQUARTERS

Muscat FOUNDED

2014

direct access to the GCC and potential tax free incentives coupled with lower energy costs and tax incentives and financial freedom to set its eyes not only on other territories but also firmly on the future within Oman.

Cunningham attributes the successful build up in the IPO process as being due to the forward thinking and positive attitude of the Al Rawas family, he said: “They have always looked to add value to Oman through their historical investments; they want to use Kunooz Oman as growth platform, which is why they have spared no costs and have brought in a professional team to allow this to succeed.�

It is therefore evident from its recent proactive approach that Kunooz has succeeded through a combination of its dedication to the success of Oman and its shrewd foresight to bring its business operations into the 21st century.

EMPLOYEES

657 REVENUE

$43 million (2014) PRODUCTS/ SERVICES

Mining, Logistics, Manufacturing.

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Written by: Sam Jermy Produced by: Richard Deane

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DORON CONSTRUCTION

Despite being less than a decade old, the firm has grown steadily to the point where it is now looking to be the South African contractor of choice for clients in multiple sectors

D

oron Construction is a Construction Company specialising in Civil Construction and General Building for clients in the Mining, Governmental, Commercial and Residential Sectors.

The strong growth of Doron Construction has been built on a foundation of consistently delivering construction projects to the highest standards. Since beginning as a small civil construction contractor in 2007, Doron Construction has demonstrated an unbeaten track record for delivering high quality civil projects to our world class clients.

Doron Construction is looking forward to enhancing the good reputation it has built up after just eight years in the industry, with a number of large projects on the horizon and in process.

These projects include being appointed the

Doron has steadily grown since 2007

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CONSTRUCTION

managing contractor for the construction of an extension of a tailings processing plant with Dikgosi Tailings Processing, the construction of two eight mega litre reservoirs, pump station and the associated infrastructure, as well as plenty of mining-related activities.

Christo Smit, Managing Director at Doron Construction, said: “We started the company in 2007 with the vision to distinguish ourselves in the construction industry through quality and integrity. We set our vision from the beginning to become one of the larger construction firms and we never allowed the difficult times to distract us from our vision.

“We have worked hard to grow to a company where clients invite us to participate in projects or to tender for projects. We have built a business profile of successful projects and we retained the human capital that was developed through this period.

“Looking forward, we are aiming to increase our involvement in the mining sector by increasing our client base and by becoming involved in contracts that has a longer duration than the normal construction contracts.”

Dikgosi Tailings Processing recently acquired 51 percent of the shares of the company, and it subsequently appointed three new directors. Smit believes their experience will make the management team even stronger in order to support the additional growth that is expected through their marketing

Key Personnel Kgosi Tshikare Non-Executive Director A custodian of the governance process, monitor the executive activity and contribute to the development of strategy

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DORON CONSTRUCTION

The company has staff from over 15 nations

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and projects that will spawned through the group of companies they are involved with.

Continuous Improvement Focusing on the various stakeholders of the firm is one of the most important principles for Doron now and going forward. Frequent feedback sessions are scheduled with shareholders in order to set goals and reestablish the vision and medium-term goals. Good client relations are obviously crucial too, and the company has learned to effectively serve its client whilst simultaneously protecting its own business interests.

Smit said: “We see our employees as assets and they are the people who are turning the wheel. Enhanced performance assists the growth and profitability eventually. Therefore it is the responsibility of the directors to ensure that our employees are positive and that they undergo continuous improvement.

“We are viewing our suppliers as our partners

“Looking forward, we are aiming to increase our involvement in the mining sector by increasing our client base and by becoming involved in contracts that has a longer duration than the normal construction contracts.”

– Christo Smit, Managing Director w w w. d o r o n . c o . z a

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DORON CONSTRUCTION

Waste Water Treatment Works

and it is important for us to continuously improve our supplier base, as well as becoming increasingly better clients to our suppliers. “Two years ago we invested in the use of an Integrated Cost Management Software including estimating, planning, project control, cost management and enterprise accounting, enabling us to control and record all aspects of the company from inception to completion on an integrated system. We are continuously implementing and improving the use of the software throughout the company through internal workshops, training and increasing the number of users on the system. “To that end, our approach to project

Get to Builders.

Get it Done!

Building Material Supplied by Builders

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0860 284 533 www.builders.co.za

CONSTRUCTION

An example of general civil construction work

management and project execution is becoming leaner and we are continuously improving as we learn through each project. We have developed internal manuals with regards to all processes of construction from plant/fleet management to casting of concrete. We are now ready to take it further and to engage in Lean Six Sigma.�

Projects Doron’s biggest income stream at the moment involves the civil construction projects at various mines across South Africa. The company has worked with major clients such as Platinum Group Metals at Maseve Mine, Rustenburg where the company were contracted to build the front end concrete structures, the plant buildings, high security fencing and all the plant

Key Personnel Christo Smit Managing Director Gained an engineering degree through the University of Stellenbosch.

Involved with the company since inception.

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DORON CONSTRUCTION

Doron has gained specific experience in water and concrete projects

60% The percentage of local labour that Doron Construction use in their projects 66

July 2015

infrastructure pipelines including three one mega litre reservoirs. This is well as working with Anglo Gold Ashanti, Northam Platinum and DRA South Africa. Despite this success, Doron likes to supplement these larger, more sporadic works with more frequent concrete and water projects.

“We have gained a lot of experience in water and concrete structures, reservoirs, sewage treatment on top of our pleasing mine activities and we are even moving focus to solar plants.” said Smit. “In terms of our work with local authorities in erecting water retaining structures, we adapted to the narrow tolerances whilst keeping to the program through planning, organising, leading

CONSTRUCTION

and control of the construction projects.”

“Our construction at a platinum mine involve concrete structures of the plant, structural steel, plant buildings, high security fences, potable and fire water pipelines, reservoirs, sewage water pipelines and the communication sleeves. We also have a diverse plant and equipment hire range which is prospering and provides us with another revenue stream.”

Investments and development There is a yearly budget for training which results to approximately 3 percent of Doron’s overall payroll, meaning there is tangible ongoing investment on employee skills. It has monthly internal training sessions and external training is focused on estimating, costs control, project management, procurement, fleet management, store control and technical knowledge.

Doron also utilise a minimum of 60 percent of local labour on all construction projects. The local labour undergoes daily inductions and are supervised with a team leader and skilled labour who give them on the job training.

Smit concluded: “Overall we are happy with the way our business is going. We have recently moved to new premises where the different departments will have space to establish themselves. The offices will have sufficient space for training and a conference facility. Not only that, but we will continue to invest in gaining and maintaining a skilled workforce and intend to continuously improve our plant and vehicles.”

Company Information INDUSTRY

Construction HEADQUARTERS

Potchefstroom, SA FOUNDED

2007 EMPLOYEES

350 REVENUE

R89 million PRODUCTS/ SERVICES

Construction & Mining

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Peregrine Diamonds Ltd

A path to power

People and product are the keys to success for Canada’s leader in diamond exploration and discovery Written by: Jennifer White Produced by: Andy Turner

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P E R E G R I N E D I A M O N D S LT D

Cooper Rig

T

om Peregoodoff has always loved the outdoors.

Combining this passion with an affinity for science (and math, but that’s “off the record”) made a career in the diamond exploration world a natural fit.

“I was quite a keen observer very early-on in life, and [working in this industry] is a fantastic way to be outdoors and practice my love of exploration,” he explained.

As president and CEO of Peregrine Diamonds Ltd., a Canadian-focused exploration and development company, he has indeed found his calling—and the 70

July 2015

company is thriving.

Peregoodoff has an extensive background in early-stage global exploration, operations and business development. With a BSc. in Geophysics from the University of Calgary, Peregoodoff understands the current state of the industry and can anticipate needs for future growth based. While this ability can be partially attributed an innate interest, his comprehensive awareness of the foundation of mining and exploration is mainly the result of direct industry experience.

CANADA

Team player As is the case with many good leaders, Peregoodoff is quick to give credit to others when discussing the company’s success.

“The strength of the company is based on the people,” he said. “Led by Dr. Herman Grütter, who is extremely well-known in diamond exploration circles, I’d venture to say that our technical team is second to none.”

Dr. Grütter’s experience assessing the economic and developmental potential of kimberlite provinces has been key to the project’s continued success, as has his team of experts.

“The tech team is supported by people such as Jennifer Pell, who has also had a very long career specifically focused on diamonds – a lot of which focused on the northern territories as well as the Arctic.

“Diamonds are a luxury item, so, for example, we are competing against handbags and electronics for luxury dollars” – Tom Peregoodoff , President and CEO

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We a r e a l o c a l t r a n s p o r t c o m p a n y t h a t h a s o p e r a t e d i n C a n a d a’s A r c t i c f o r 3 4 y e a r s . We d o e v e r y t h i n g f r o m large freight transpor tation to bussing ser vices.

N

R.L. HANSO

Phone ( 867) 979 - 6 0 04 Fa x ( 867) 979 -4873 Email admin @ r lha nson.c a

R.L. Ha nson Constr uction Ltd. P.O Box 363 Iqaluit, NU Iqaluit 867.979.0070 yfbdispatch@northwestel.net

Resolute Bay 867.252.3845 yrb@kbaops.com

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P E R E G R I N E D I A M O N D S LT D “There are three clusters of new kimberlite discoveries that can be attributed directly to members of this team,” Peregoodoff said, including [President and CEO of Peregrine Exploration Ltd.]Brooke Clements, who led the team that successfully discovered the Renard kimberlite cluster in 2001.

Chidliak diamond project Located on South Baffin Island approximately 120 kilometers from Iqaluit, the capital of Nunavut, the Chidliak diamond project is 100 percent owned by Peregrine—but this wasn’t always the case.

“The germination of project was from BHP Billiton,” explained Peregoodoff, who held various executive roles with the global giant for a cumulative tenure of 18 years.

In his most recent role as the vice president of early-stage exploration, Peregoodoff was responsible for global exploration activities across all commodity lines.

The initial plans for a joint venture between Peregrine (49 percent) and BHP Billiton (51 percent) received approval for a $17.7 million exploration project; however, in

CANADA

2012, Peregrine, acquired BHP Billiton’s 51 percent share, thus assuming 100 percent ownership.

In addition, De Beers, one of the most recognizable names in the diamond world, backed out in 2013 after spending around $10 million to gain exclusive rights to the project.

A diamond-based database The purchase of BHP Billiton’s 51 percent interest also included receipt of the company’s Canadian diamond exploration database, thus providing Peregrine with data from over 38,000 kimberlite indicator mineral samples.

“Discovering new diamond districts is a very methodical process and the database acquisition from BHP is the foundational data set for exploring for new kimberlite districts,” Peregoodoff said.

“The industry started working in the Northwest Territories (NWT) back in nineties; the growth in the NWT has been driven largely by the discovery of some great diamond mines, such as Diavik and Ekati.”

Kimberlite discoveries at w w w. p d i a m . c o m

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Chidliak “The first discovery of kimberlite at Chidliak was relatively quick,” Peregoodoff said, referring to the initial find in 2008.

To date, there have been 71 discoveries in total, eight of which are considered “potentially economic.” These include: • CH-1 • CH-6 • CH-7 • CH-28 • CH-31 • CH-44 • CH-45 • CH-46

P E R E G R I N E D I A M O N D S LT D CH-6 The maiden Inferred Resource at CH-6 was declared 7.47 million carats in 2.9 million tonnes at a grade of 2.58 carats per tonne to 250 meters depth; however, in January 2015, the Inferred Resource was updated to declare 8.57 million carats in 3.32 million tonnes at a grade of 2.58 carats per tonne.

An additional 3.20 to 4.38 million tonnes of kimberlite classified as a Target for Further Exploration (TFFE) have also been identified at CH-6.

CANADA

significantly higher than that.

Based on CH-6 and CH-7, Peregoodoff also believes a Phase 1 mine development at Chidliak has the potential to produce at least 1 million carats per year.

The Diamond Bourse of Canada In May 2015, Peregrine became a member of the Diamond Bourse of Canada (DBC), a diamond and gemstone trading facility and industry association.

“For us, [membership] provides a lot of flexibility as we advance CH-7 toward the development of Chidliak,” Although classified as TFFE at Peregoodoff said. this point, the estimate for CH-7 “We have more and more people is between 3.72 and 6.01 million interested in seeing our goods, and tonnes from surface to a depth of because we’re members, these 290 meters. interested parties are able to get an “We’ll be able to tell what the early indication of what the goods potential economics are of CH-7 look like, for example, or do any due once we process the 550 tonne diligence, if needed.” bulk sample in August 2015,” To become a member, Peregoodoff explained.

Peregoodoff explained, companies To consider CH-7 successful, must be “sponsored” by a current Peregoodoff is hoping for a company – De Beers vouched for combined grade and carat value in Peregrine – and go through a review excess of $125-$150 per tonne, but by the DBC to ensure a corporation’s believes that the 2015 bulk sample business practices align with the result will show value per tonne to be group’s standards of excellence. w w w. p d i a m . c o m

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P E R E G R I N E D I A M O N D S LT D

Membership also requires an evaluation of key team members.

“The DBC looks for companies with a proven track record; they want to see groups that are leading up to – or are in the line of sight for – 76

July 2015

becoming a diamond producer.”

Shareholder benefits Peregrine is a relatively small operation when one considers the impact being made through large endeavors.

CANADA

As the sole owner of the Chidliak diamond project, Peregrine has been able to provide shareholders with exclusive benefits available based on (potentially valuable) diamond discoveries—and with an ambitious yet methodical approach, Peregoodoff and his team of experts are poised to reach their goal of becoming Baffin Island’s first diamond mine.

Company Information INDUSTRY

Mining and Exploration HEADQUARTERS

Industry outlook On the production side, “Players come and go,” Peregoodoff said. “BHP exited the diamond industry altogether, and Dominion is now global.

The landscape of production has changed overall.”

The recent formation of the Diamond Producers Association, an industry initiative led by De Beers, illustrates the adaptation of the industry: Despite fluctuations within the market, industry insiders see the value of – and need for – continued growth. The association is just one way to support one another on this mutual endeavor.

In addition, the global financial crisis was a hard hit for the purchasers and craftsmen, he said.

“Diamonds are a luxury item, so, for example, we are competing against handbags and electronics for luxury dollars.

“The diamond industry as a whole has gone through – and continues to go through – significant upheaval; change will continue to be seen,” Peregoodoff predicted.

201-1250 Homer Street Vancouver, B.C., Canada, V6B 1C6 FOUNDED

2005 EMPLOYEES

20 plus seasonal contractors BUDGET

Circa $10-$15M

w w w. p d i a m . c o m

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Nevada Mining Association

Representing mining in Nevada for over 100 years Since 1913, the Nevada Mining Association has represented every aspect of the industry and continues to drive it forward.

Written by: Stephanie C. Ocano

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N E VA D A M I N I N G A S S O C I AT I O N

Haul trucks lined up at Barrick Gold’s Cortez Hills. Some haul trucks can carry more than 350 tons of payload.

M

ining has long been an integral part of Nevada’s history—from Native American use of its mineral wealth to fashion tools to today’s modern industrial mining operations.

Nevada’s silver deposits were a major reason for Nevada’s admission into the United States in 1864, and mining has since positioned the state as a global leader in the production of strategic minerals in the development of new technologies.

Founded in 1913, the Nevada Mining Association is one of Nevada’s oldest trade associations, 80

July 2015

representing a broad spectrum of the industry.

“There’s mining essentially everywhere,” said President Dana Bennett, PhD in a recent interview.

“Our association represents all the businesses involved within the industry—whether it’s exploration, development, operations, reclamation or vendors.”

Having a long and respected track record, it is no surprise that the association has 400+ members.

In fact, of the 116 mines in Nevada, many of them are members as well.

“We have strong relationships with the state governments and

USA

represent the industry at the legislature,” explained Bennett. “We assist with facilitating conversations between the federal and state regulators and the companies.”

In addition, the Nevada Mining Association provides multiple opportunities for its members to collaborate and get to know one another. From events to committees, members can meet and discuss best practices, discuss solutions for resolving issues and learn from one another.

Educating the residents (and visitors) of Nevada Nevada is a very urban state, with the majority of the population living in Las Vegas and Reno. Of that population, most are transplants.

For that reason alone, the Nevada Mining Association strives to continue to tell the story of Nevada’s mining industry.

“It’s important that [residents] understand the role that mining plays in their daily lives,” said Bennett. “How important the industry is to the state economy.”

As a source for accurate and credible information about mining

in Nevada, the association has many different ways of providing information to the public. One of those methods is the interactive mine tour offered on their website.

From aerial overviews to exploring the surface of a mine to experiencing a gold refinery, the interactive tour allows visitors to get a first-hand feel of the industry.

“We also have a larger display at the airport,” added Bennett. “It’s quite a large exhibit as people are going to the Southwest gates and there are terrific floor samples and mineral samples and a full-size interactive mine exploration.”

“We work very hard to be a respected and credible source of accurate information,” she said. “Part of that is pushing out information, the other part is responding to inaccurate information that might be out there.”

The Nevada Mining Association and education In partnership with the Nevada Division of Minerals, for 25 years the Nevada Mining Association has hosted teacher earth science workshops to help public, private w w w. n e v a d a m i n i n g . o r g

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Teachers gather to hear from Molycorp workers during a mine tour on April 1, 2015, as a part of the Nevada Mining Association’s Southern Nevada Teachers Workshop

and home instructors educate future generations.

With one workshop in the spring and one in the summer in southern and northern Nevada, the workshops provide classroom instructions and ideas for lessons plans and field trips. Teachers who participate also receive a university credit or a Professional Development credit.

“It’s a very popular program,” said Bennett. “Our workshop this last 82

July 2015

spring in Las Vegas had well over 100 teachers. They participate and they learn and then take that new information back to their students.”

The goal of the workshops is to educate K-12 Nevada teachers about the earth sciences, the importance of mined materials and the role that mining plays.

Dedicated to the better education of the youth, another workshop will be hosted in mid-July.

USA

A voice for Nevada’s mining industry Nevada mines employ over 15,000 people in jobs with the highest average wages and most comprehensive benefit programs in the state.

These mines continue to produce gold, silver and copper. Another 2,000 companies—mostly small businesses and family-owned companies—make their living providing goods and services to mining operations.

All together, the mining industry is “a responsible and responsive corporate citizen in Nevada,” offering employment opportunities, substantial taxes and “actively participating in the cultural lives of communities.”

The Nevada Mining Association is constantly looking for ways to champion Nevada’s mining industry.

“We’re proud of Nevada’s mining industry and work hard to get that message out,” said Bennett.

One of the most important parts of the mining industry is that it requires constant exploration, according to Bennett. In a state like Nevada, with its unique geology and geography, there are constantly new things to find.

“It’s important to understand that mining didn’t just happen in the past,” explained Bennett. “We don’t know what we’re going to need 50 years from now, and so exploration for new metals and minerals, and the innovative ways of using them, are important for our future.”

Company Information INDUSTRY

Mining HEADQUARTERS

201 W. Liberty St., Suite 300 Reno, Nevada, United States, 89501 FOUNDED

1913

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Nyrstar

Nyrstar Does More with Less Tennessee Mines maximizes efficiency and uses operational excellence to separate from the competition Written by: Eric Harding Produced by: Jason Wright

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Mid TN’s GorWood Mine

D

oing more with less and striving for operational excellence is what separates Nyrstar from the other mining companies. Its Tennessee Mines is a prime example of Nyrstar’s dedication to quality.

of 902 employees.

Middle Tennessee is made up of three underground zinc mines—Gordonsville, Elmwood, and Cumberland— as well as a processing plant located at the Gordonsville mine site. Each of the three mines is located in Smith Operations County, which is about 100 miles Located in the heart of Tennessee, from Nyrstar’s Clarksville smelter. the Nyrstar Tennessee Mines The operations have a history of complex consists of six mines and close association, as the smelter was two processing plants distributed originally built specifically to treat zinc among two distinct operations— concentrate from the mines.

Middle Tennessee and East East Tennessee operations also Tennessee. The two combine to consists of a processing plant and produce 111,000 tonnes of zinc in three underground zinc mines: concentrate in 2014, and have a total Young, Coy, and Immel. The three 86

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USA

Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground

mines are located in and around Tennessee’s Knox, Jefferson, and Grainger counties. Each of the mines is located approximately 20 miles from each other, 150 miles from Middle Tennessee Mines and 250 miles from Nyrstar’s Clarksville smelter. In addition, ore from the three mines is processed into zinc concentrate at the Young mine site.

Improvements To maximize efficiency, Nyrstar is introducing an array of mill improvements at its East Tennessee operations. The company has added three stateof-the-art belt scales to improve metallurgical balance calculations. Other innovations include increasing ball mill throughput by nearly 20 percent.

“What the systematic does is reduce the placechange time from one working phase within the stope to another thousands of feet away. When you stay within one stope, you can work multiple phases. It’s almost like a coalmining mindset” – Nyrstar VP of Business Improvement Glenn Smith

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N Y R S TA R

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“That 20 percent improvement is the result of several factors such as increased horsepower on some of the pumps that would supply the material upstream of the ball mill,” said Glenn Smith, Nyrstar VP of bBusiness iImprovement.

The key to our success was all about eliminating variation from the process through classic business improvement techniques, such as keeping the mill regularly charged with ‘X’ amount of grinding media, reducing the size of the grinding media, and more. These fundamentals have led to the 20 percent improvement.”

The upgrades are the first steps in streamlining the entire process and optimizing the performance of the mill. The goal is to have every unit in the existing footprint perform as designed, or even better than expected, before making a

SUPPLIER PROFILE

Nyrstar VP of Business Improvement Glenn Smith

SANDVIK MINING

Sandvik Mining is a business area within the Sandvik Group and a leading global supplier of equipment, tools, service and technical solutions for the mining industry. The offering covers rock drilling, rock cutting, rock crushing, loading and hauling and materials handling. In 2014 sales amounted to 26,831 MSEK, with 11,815 employees.

300 Technology Court Smyrna GA 30082 TEL: 404-589-3800 FAX: 404-589-2900 Website: www.sandvik.com

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N Y R S TA R capital expenditure to increase the throughput.

Operational Excellence Before spending money to expand the mine, Nyrstar is first implementing operational excellence strategies to maximize the potential of the existing operations. As further evidence of Nyrstar’s commitment to improving and growing the business, Smith was recently promoted to the Vice President of Business Improvement for the entire Nyrstar Mining Segment, as his career has been heavily focused on business improvement.

One of his challenges as general manager was getting the variation out of their processes in order to achieve consistent performance.

“Before we make any capital expenditures to increase the capacity, we need to eliminate the variances,” Smith said. “It’s like having an old car. You don’t buy a new car just because the tires are worn- you rotate the tires and keep an eye on their wear.”

The systematic mining approach recently introduced in Middle

USA

Tennessee is an entirely new way to mine, where they basically delineate the boundaries of a given ore zone.

A weighted average recovery is used to develop rooms and pillars, compared to the previous method of random room and pillar, which is more of a meandering approach. This system promotes improved mine planning in terms of establishing your infrastructure, water supply, electrical supply as well as ventilation needs.

“What the systematic approach does is reduce the place-change time from one working phase face within the stope to another thousands of feet away,” said Smith.

“When you stay within one stope, you can work multiple phases. It’s almost like a coal-mining mindset.”

Smith believes his transition from coal mining to underground base metal mining has been an excellent transfer of skill sets, from ventilation to maintaining equipment, human resources, and safety. The only real difference he’s noticed is instead of cutting material like he would in coal mining, they now have to drill and blast it.

“It’s still ground support, loading, w w w . n y r s t a r. c o m

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C O M PA N Y N A M E

Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground

and hauling material,” he said. “It’s been a great transition. As I learn from my hard-rock miners, I also share a little bit with my coal mining background with conveyance systems and efficient processes like systematic mining. You have more uptime when drilling and breaking material versus traming from one stope to the next.”

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Collaboration is a major aspect they drive within the mining segment—which includes open lines of communication in terms of what is working at one site compared to others. It’s yet another trait Smith brings from the coal industry, as it was a common theme from his 34 years in the business.

“With the Tennessee mines, for

SECTOR

instance, we contributed around 20 percent of the zinc production of Nyrstar last year,” he said, “so it’s a large player in the mining portfolio for Nyrstar.”

The initial systematic mining plans came together in late Q3 of 2014, while they actually began implementing late Q4. In just those seven months, Smith said he’s seen dramatic changes.

“We’re now able to see the results,” he said.

“Naturally when you start a new process, it comes

Glenn Smith

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N Y R S TA R

Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground

with a certain element of change. The guys have to back up and figure out how to handle certain situations. It’s always the theory of constraints when we’re pushing the bottleneck out of the system.”

The goal behind using geophysics 94

July 2015

is to improve drilling or exploration success rate. It essentially maps out an area using geophysical techniques from the last several years, and has typically identified some target-rich areas so they can drill and verify.

USA

“We’ve seen great correlations, and that’s what gave us our trust in it,” Smith said. “We actually put it over areas that we mine and were able to baseline it to get certain readings to see what the fingerprint looked like in a certain area. We were quite pleased when it said, ‘Drill here.’ We drilled, and low and behold, we hit the ore. Now we’re actually planning on a more aggressive drilling program to further delineate those areas so we can get them into some 3D mine bottle blocks.”

Automation with software that predicts maintenance upgrades will be Nyrstar’s next venture in the future, including equipment health monitoring and tracking. The company has looked at various types of maintenance scheduling so it can provide maintenance on a 24 hour a day, 7 day a week schedule compared to just a five-day schedule.

It has seen equipment availabilities increase as much as 20 percent by having maintenance crews rotate with production crews, similar to a race car driver with his pit crew.

“As the equipment passes by any Wi-Fi hotspots located within the mine, they will have particular mechanical data downloaded from the equipment monitoring the equipment health in addition to equipment tracking similar to employee tracking in United States coal mines,” Smith said. “This way, they can generate realtime electronic times studies compared to an individual doing it. That’s our next avenue to dive into.”

Company Information INDUSTRY

Mining and Smelting HEADQUARTERS

Tessinerplatz 7, Zurich FOUNDED

2007 EMPLOYEES

Approximately 6,500 REVENUE

USD 3.21 billion

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M

IBRAM:

BRAZILIAN MINING INSTITUTE

Written by: IBRAM | Produced by: Cristiano Ruy 97

IBRAM

T

he Brazilian Mining Association - IBRAM is a private, non-profit national organization that aims to congregate and represent companies and institutions operating in the mining sector, in order to establish a favorable business environment, competitiveness and sustainable development.

Founded in December 10th, 1976, IBRAM has great ability to articulate with different actors and sectors of the economy, as well as with the Legislative, Executive and Judicial branches, both at federal and state levels.

It also operates together with its counterparts at the international level.

IBRAM associates board includes mining companies, Mineral, Environmental and Geology engineering companies, equipment manufacturers, technology centers, development banks, among others.

EXPOSIBRAM Amazon 2014. Credit: LED Produçþes

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BRAZIL

Key People

José Fernando Coura IBRAM´s President-Director

EXPOSIBRAM 2013. Credit: Débora Freitas

Besides, IBRAM actively participates in important international forums such as the International Council on Mining & Metals (ICMM).

Since its creation, the Institute has had the expertise in the organization and realization of national and international events, aiming at the promotion of the mineral sector and the opening of new opportunities for business and knowledge exchange. Yearly, such events gather thousands of experts and several thousand visitors.

It is the case, for instance, of the main technical and commercial event in Latin America mining: the EXPOSIBRAM. Coming to its 16th edition, the International Mining Exhibition is held every two years, along with the Brazilian Mining Congress.

To achieve that, it counts on the sponsorship

Rinaldo César Mancin IBRAM´s Director of Environmental Issues

Marcelo Ribeiro Tunes Director of Mining Issues

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IBRAM

Amazon Mining Congress. Credit: LED Produçþes

of companies such as Vale S.A., Votorantim Metais, AngloGoldAshanti, Anglo American, Samarco, CBMM, Petrobras, Geosol, Gerdau, CSN, EY, and the support of other entities and of the State Government of Minas Gerais, the most important mining state in Brazil.

Other important events carried out biannually by IBRAM are the Brazilian Congresses of Surface Mining and of Underground Mining, which are in their 9th edition and are held in a partnership with Universidade 100

July 2015

BRAZIL

Association Information HEADQUARTERS

Brasília/DF - Brazil E S TA B L I S H E D

December 10th, 1976 NO OF MEMBERS

174 MANAGEMENT

Federal de Minas Gerais, as well as the International Congress of Mineral Law, carried out in a partnership with the Brazilian Federal Government. Moreover, IBRAM promotes the International Mining Exhibition of Amazon (EXPOSIBRAM Amazon) and the Mining Congress of Amazon in Belém.

President-Director: José Fernando Coura Director of Mining Issues: Marcelo Ribeiro Tunes Director of Environmental Issues: Rinaldo César Mancin Director of Institutional Relations: Walter B. Alvarenga Director of Administrative and Financial Issues: Ary Pedreira Board of Directors Chairman: Ricardo Vescovi de Aragão Vice-Chairman: Luiz Eulálio Moraes

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Glencore:

Enhancing Processes in the Mining Industry

Glencore Technology’s Chief Technology Officer Reinhar Viljoen discusses the importance of collaboration in the mining industry and opens up about the importance of branding and marketing Written by: Robert Spence Produced by: Vince Kielty

rdt

GLENCORE

IsaKidd robotic CSM

A

s one of the largest commodity traders and mining companies in the world, Swiss-based Glencore has maintained a rich lineage of innovative technology through its existence in the mining sector.

The company has leveraged its experience and knowledge from its own operational sites to develop and market new solutions to meet the mining industry’s evolving demands.

Their competitive advantage for the last 30 years has been 104

July 2015

Glencore Technology. Spawned from the merger with Xstrata, Glencore Technology continues to be a dominant player in marketing technologies for the metals and mineral processing industries.

Industry experts Glencore Technology specializes in developing and marketing supportive technologies for the mineral processing and metals smelting and refining industries.

The company has developed proven technologies such as

AUSTRALIA

ISASMELT and IsaKidd, which are patented processes widely used in the smelting, electrowinning and copper refining industry today.

Additional technologies include IsaMill, a fine and mainstream grinding technology, the Jameson Cell flotation technology and the Albion Process leaching technology.

“We’ve initially developed specific copper processing technology,” said Reinhardt Viljoen, Glencore Technology’s Chief Technology Officer.

“However, we’re now also involved in the broader design of smelters and refineries and our technology is applicable to other base metals like zinc, lead, nickel, etc. Our technology has also delivered improved processing performance in the precious metal industry, with the gold and platinum industry specifically applying Glencore Technology’s IsaMill and Albion Process Technology.”

In terms of supporting technologies for clients, Glencore Technology has designed and developed the ZipaTank™.

According to Viljoen, The ZipaTank is an innovative approach to

slurry storage and leaching tanks that incorporates modular components and mechanical joins to provide all the benefits of a traditional welded tank, but with lower costs, reduced installation times and far greater flexibility.

“The tank is mechanically bolted. Anyone with a minimal amount of skill and supervision can bolt it together. Its scalability makes it very exciting for clients as it can accommodate most projects and even be reused for other projects.”

In addition, Glencore Technology has developed the HyperSparge™, a proven and cost effective system for delivering air, oxygen or other process gases into tanks or vessels for leaching or oxidation processes.

“A lot of these technologies started off from issues we experienced in our copper and zinc operations,” said Viljoen.

The key ingredient For Glencore Technology, innovation starts with collaboration.

“Here in Australia, and all across the world, collaboration is a key ingredient to being innovative.

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Specialists in design, fabrication, welding and installation of Carbon Steel, Stainless Steel & Specialty Alloy Pressure Equipment, including:

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• Shop Pipe Spooling • Pressure Vessels • Pipe Supports and Structures • Field Welding and Mechanical Installation • Stainless Steel; Austenitic, Duplex and Super Duplex • Alloys; Chromoly, Monel, Hastelloy and Titanium • Carbon Steels; Standard, Low and High Temperature

Phone: +61 7 3807 1119 | Fax: +61 7 3807 9722 | Email: sales@nrgpiping.com.au

GLENCORE

AUSTRALIA

We have a very supportive and collaborative group here at Glencore Technology and everyone brings something to the table,” said Viljoen.

Collaboration helps Glencore Technology continuously find new ways of identifying and developing technologies to improve processing in the mining industry as well maintaining a wide range of existing applications in the mining industry.

Along with working internally with Glencore operations, Glencore Technology partners with other companies to collaborate in building innovative technologies that improve processing. For example Netsch

GmbH, Glencore Technology’s partner in the development of the IsaMill Technology.

“Once we identify a need, we run a very lean operation. We know what we’re good at and we stick with it. We excel at commercializing technology and identifying needs.

We work with the universities as well carrying out our own research and design to take those ideas to the next level in a very functional and commercial way,” said Viljoen.

“We take great pride in developing processes that are operationally proven and that deliver value to our customers

SUPPLIER PROFILE NRG Piping Pty Ltd is a forward thinking leading company with an enviable reputation for quality and reliability in the design, fabrication, installation and maintenance from heavy specialty metals.

With proven quality management systems that are certified to ISO9001:2008 and industry qualified management and personnel, NRG has over 25 years’ experience offering a range of engineering project services nationally and internationally specialising in Oil and Gas, Mining, Power, Water Treatment & Petrochemical industries.

NRG offers project dedicated off site manufacturing facilities in conjunction with onsite installation services where our clients are guaranteed capacity and quality ensuring a safe, efficient, cost effective engineering service to your project delivering profits to your bottom line.

Website: www.nrgpiping.com.au w w w. g l e n c o r e g r a i n . c o m . a u

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Skids, Test Rigs and Wear Parts for the Mining Industry Automated Systems and Equipment CNC Machining and Fabrication Controls and Systems Integration Project Management

DESIGN & MANUFACTURING ENGINEERS

Est. 1962

J C Smale is a diversified applied technology company that offers special industrial production, materials handling and processing systems. All J C Smale special industrial plant and equipment is designed, built, installed and commissioned specifically to customer requirements.

J C Smale also provides on site services for retrofit, rework and upgrade to customers’ existing plant and equipment.

We specialize in:  PU LINED, NI PLATED, RUBBER LINED, HARDOX & STAINLESS STEEL COMPONENTS FOR THE MINING INDUSTRY - WORLDWIDE  PRODUCTION PLANT & EQUIPMENT  ROBOT SYSTEMS  TEST RIGS, MATERIALS HANDLING SYSTEMS  COMPLETE ELECTRICAL CONTROL SYSTEMS Industries serviced: mining, brick, light rail, and paint.

Proud Supply Chain Partner of Glencore Technology for Over 20 Years

Turnkey Manufacturing Technologies 9-23 Commercial Rd, Notting Hill, Vic 3168, Australia Ph: +61 3 9544 7188 Fax: +61 3 9543 7927 Email: jcs@jcsmale.com No 19 Jalan Bukit 5 Bandar Seri Alam, Malaysia

www.jcsmale.com

GLENCORE

AUSTRALIA

sustainably, such as our fine grinding processes that give mining operations the ability to liberate more of their valuable minerals.”

According to Viljoen, collaboration doesn’t always create innovation; it has to be driven by the needs of the industry and operations.

“We’re heavily driven by our internal Glencore operations to provide them with the expertise we have, and present potential opportunities commercially as we identify them. The mining industry is very conservative. Productivity is a key focus and you need to ensure you’re responding to the needs of

the operational guys.

“With the introduction of automation technology, advanced process controls and simplicity of operations will become a big factor in coming years. Automation is complicated but new technologies will simplify the process,” said Viljoen.

“Equipment design needs to be very simple but robust. To maximize productivity, the need is to be innovative around designing equipment and running it with minimal attention.”

In addition, the company continuously strives to find new and more efficient ways of doing things,

SUPPLIER PROFILE Employees: 58 / Established: 1962 Industry: JCSmale is a leading engineering and design company servicing a diverse range of industries including Heavy Clay, Mining, Automotive, Light Rail, Adhesives, Paint and Plasterboard Services: J C Smale is a diversified applied technology company that offers innovative equipment design for automated solutions along with mechanical, electrical and general engineering services. For over 20 years JCSmale is a key manufacturing partner with Glencore Technologies on IsaMill and Jameson Cell.

Ongoing Projects: • PU Lined, Ni Plated, Rubber Lined, Hardox and Stainless Steel components for the mining Industry - World Wide • Robotic Handling System Queensland Australia • Robotic Handlings Systems Perth Australia • Robotic Handlings System South Africa • Paint Dispersion Equipment Queensland Australia • Paint Dispersion Equipment Melbourne Australia Management: Ken Smale - Managing Director / Ross Smale - Engineer - Electrical / Colin Smale - Engineer – Applications / Gordon Smale – Manufacturing Manager / Ron Hill – Group Financial Controller Website: www.jcsmale.com

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A world that lasts forever Outokumpu is a global leader in a wide range of high performance stainless steels, with manufacturing plants and sales companies located throughout the world.

P: 61 7 3267 7266 | E: ken.hayes@outokumpu.com

even if it takes them outside the realm of the mining sector.

“We’re continuously looking for other applications in the mining industry or even if it applies outside the industry. We are always looking for new ideas in terms of solving issues that come up within those disciplines – grinding, flotation, smelting and refining,” said Viljoen.

Branding One of the most underrated aspects of the mining industry is 110

July 2015

www.outokumpu.com/australia

branding. For Glencore Technology it is especially important.

“You miss opportunities if you don’t. Being active in the market and letting people know what your capabilities are is extremely important, especially if you want to grow. During the mining boom you could get away with a passive approach. You can’t do that now. Branding yourself is very important and we actively strive to do just that,” said Viljoen.

“With the change in the mining industry, and the mergers, there

GLENCORE

AUSTRALIA

has been a lot of change in our structure. As a result, our presence in the market as Glencore Technology has been more of a gradual change.

One of my key focuses as Chief Technology Officer is to get our branding well established.”

According to Viljoen, forming a presence in the market is an important step in growing as a company as well as delivering on your promise.

“We’re motivated by continuous improvements. We maintain long-term relationships with our all our customers to ensure we’re delivering on the promises we’ve made. For us, client feedback is extremely important and these relationships help us to leverage their opinion into making advancements. A key part of our business is making improvements around our customers.”

Company Information INDUSTRY

Mining HEADQUARTERS

Brisbane, Queensland, Australia FOUNDED

1984 EMPLOYEES

85 PRODUCTS/ SERVICES Glencore Technology develops, markets and supports technologies for the global mineral processing and metals smelting and refining industries.

These technologies include ISASMELT™ and ISACONVERT™ smelting processes, BBOC™ precious metal refining, IsaMill™ fine-grind and mainstream grinding technology, IsaKidd electrowinning and electrorefining technology, Jameson Cell flotation technology and the Albion Process oxidative leaching technology.

Jameson Cell w w w. g l e n c o r e g r a i n . c o m . a u

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Orocobre:

Orocobre Surges to the Top of the Industry Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years Written by: Eric Harding Produced by: Nathan Zeke

OROCOBRE

Olaroz Opening Ceremony

A

fter seven years of planning, developing and constructing, Orocobre’s Salar de Olaroz facility is now ramping up production of high quality lithium carbonate.

Their goal is to reach nameplate capacity of 17,500tpa by the fourth quarter of 2015. The enormity of the Olaroz resource, combined with the sustainable practices of the business, support the potential for expansion plans and additional stage developments to occur in line with a growing lithium market demand.

Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years and is 114

July 2015

based on a world-class resource.

“We have a company which operates based on principals defined and agreed by our management,” said Richard Seville, Orocobre’s Managing Director and CEO. “We have a sense of ownership of what we do, and have the ability to make and take the opportunity.”

Building Olaroz Located in the elevated Puna region of Argentina’s north-west province Jujuy, Olaroz is an area of 63,000 hectares of tenements over a salt lake containing high amounts of lithium and potash in brine. The

MINING

Accepting the 2014 Mining Argentina Award

project is well served by surrounding key infrastructure, including sealed roads, high voltage electricity, gas pipelines, and rail access.

Construction on the estimated US$229 million project began late in November 2012, with construction taking about 18 months.

Approximately 150 employees work on site, and while construction of the facility has been completed, there is some final rectification work being conducted on the lithium carbonate production plant to allow the achievement of the nameplate production rate.

The facility began as a joint venture

project built in partnership with Japanese trading giant Toyota Tsusho Corporation (TTC), with the initial agreement beginning in January 2010 and the partnership agreement signed in October 2012. The agreement gave both sides a detailed financing plan set up to secure TTC’s direct participation and support for funding the Olaroz project.

Since then, the two companies have worked closely together to advance the project. In a business where product quality is most important, TTC’s investment provided a strong endorsement of the quality of the Olaroz resource, and the high purity w w w. rocobre.com/

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OROCOBRE

“We have a company which operates based on principals defined and agreed by our management. We have a sense of ownership on what we do, and have the ability to make and take the opportunity.”

– Richard Seville, Orocobre managing director and CEO

MINING

battery grade product produced at the Olaroz Facility.

boron minerals and refined chemicals producer that has been in operation for over 50 years.

Partnerships Borax Argentina is one of only a Prior to receiving final government few major borate deposits globally approval to commence construction currently in production. of the project, Orocobre entered into These operations produce a an agreement with Jujuy Energia y wide variety of boron chemical Mineria Sociedad del Estado (JEMSE). products including boric acid, borax A mining investment company owned decahydrate, borax pentahydrate, by the Jujuy government, JEMSE anhydrous borax and boroglas holds an equity interest in the project, from concentrates and ulexite and provided assistance during the minerals carted from the mines and development of Olaroz. concentrators. Borax Argentina The final government approval, operates three open pit mines, along with the JEMSE agreement, a borax decahydrate plant in cleared the way to finalise the Tincalayu and concentration plants project construction financing in Sijes and Porvenir, in addition to package with TTC, as well as Mizuho refinery facilities at Campo Quijano.

Corporate Bank and Japanese The mineral operations state-owned Japan Oil, Gas and produce ulexite (Porvenir) which Metals National Corp (JOGMEC). is predominantly used in the “TTC is our equity partner and manuufacturing of boric acid, sales agent, they were able to hydroboracite (Sijes) a calcium procure low cost project debt from and magnesium borate provides Japanese banks supported by specific benefits for agriculture, JOGMEC,” said Seville. “They were a ceramic and oil and gas applications key part of getting this project done.” and colemanite (Sijes) which is Additional assets sold predominantly into ceramic Another major operation owned by manufacturing operations.

Orocobre is Borax Argentina, which The considerable deposits is a long established Argentine at Diablillos and Ratones are w w w. rocobre.com/

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OROCOBRE

Lithium Brine Pumping Into Evaporation Pond

essentially undeveloped and with the exception of the Porvenir mine located in Jujuy, each of Borax Argentina’s operations are located in Salta Province in northern Argentina.

“We purchased these run down assets from Rio Tinto in 2012 and are in the process of improving them with modest capital and changes in culture,” said Seville. “However, the big change will be when we do a major expansion of the Borax operations, which will then be followed by minerals and boric acid.”

As part of the initiatives being pursued at Borax Argentina, the company is in the process of re-modeling the deposits and undertaking a review into the 118

July 2015

exploration potential.

Demand for boron products remains strong both in the region and around the world. Presently, the main geographic market for Borax Argentina is Brazil, along with Argentina to a lesser extent.

Brazil’s economy is among the fastest growing in the world, a trend that is expected to continue, and is fully dependent on imports for its extensive borate needs. Demand is closely tied to the strength of Brazil’s glass, ceramics, construction and agricultural sectors.

Major player in the sector In addition to favourable growth trends of the regional segments currently served by Borax Argentina, Orocobre believes there are a vast number of opportunities for Borax

MINING

Argentina to expand into new markets and to develop and supply new products.

Borax Argentina has a very high profile in Argentina, in Salta province especially, as it has a strong history of excellent environmental and safety records along with healthy community relations. Safety is a key focus at Orocobre not only encompassing implementation and adherence to procedures and safety training programs but also having officers on shift to reinforce correct behaviours and ensure compliance with procedures.

“Safety, environment and shared value are key areas for us,” said Seville. “In safety, we aim for zero accidents as stated in our slogan, “Por nosotros, por nuestras familias, zero accidentes!”

“We respect the environment in which we operate as evidenced by our approach to construction, which maximises positive local economic impact and benefits to local communities.”

The Olaroz Lithium Facility recently received accreditation from Instituto Argentino de Normalizaciion y Certificacion (IRAM) for quality management, environmental management, as well as safety and occupational healthcare management. Seville strongly believes there are bright days ahead for Orocobre, and expects to see considerable growth within the next year or two.

“I see us as a major player in the sector, respected by customers and competitors for the way we run our business,” he said.

Company Information INDUSTRY

Mining HEADQUARTERS

Milton, QLD, Australia FOUNDED

2005 EMPLOYEES

200 REVENUE

$118 million (projected @ nameplate capacity) PRODUCTS/ SERVICES

Orocobre Ltd is building a substantial Argentinian-based industrial chemicals and minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities.

w w w. rocobre.com/

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Danakali Ltd:

The continued advancemen the Colluli Potash Project

CEO and Managing Director Paul Donaldson discusses c progress and future plans.

Written by: Eric Harding Produced by: Vince Kielty Interviewed by: Paul Donald

nt of

current

dson

D A N A K A L I LT D

High purity potassium sulphate sample generated from Colluli pilot tests

F

ormerly South Boulder Mines, which was established in 2003, Danakali Limited is an ASXlisted resources company engaged in developing the world-class Colluli Potash Project in the Danakil region of East Africa. Containing over one billion tons of potassium-bearing salts, the 200-square kilometre resource is one of the largest and most accessible potash deposits in the world.

The project The Colluli Potash Project is whollyowned by the Colluli Mining Share Company, which is a 50/50 joint 122

July 2015

venture between South Boulder Mines and the Eritrean National Mining Company.

Since drilling commenced in 2010, South Boulder Mines has made significant strides in progressing the Colluli Potash Project, completing an economically robust prefeasibility study for the production of sulphate of potash (SOP) in February 2015.

A definitive feasibility study is now underway and expected to be completed in September 2015. “By working through a series of studies, and fully assessing the composition of the Colluli resource, we’ve been able to identify the best

AUSTRALIA

Environmental Baseline Studies for the Colluli Project are well advanced

development path” said Donaldson.

“As the studies reach their conclusion, we will work with our Joint Venture partners and focus on securing the funding and human resource to successfully transition from explorer to operator,” said Donaldson.

substitutable agricultural commodity which provides potassium crop health fits into this category.

Colluli is a large resource, in close proximity to the coast, is highly accessible, is geographically favourable relative to key growth markets, and is capable of making The advantages a premium potash type with The world’s population is growing exceptional quality. Prefeasibility at approximately 80 million people studies indicate the lowest capital per annum. To feed an additional 2.3 intensity and operating costs billion people by 2050, agricultural relative to all advanced SOP yields are required to increase by projects globally. almost 70%. Fertiliser consumption Colluli is geographically advanced; must grow to meet this objective, located on the doorstep of the key and potash, an essential, nongrowth economies of the future. w w w. d a n a k a l i . c o m

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D A N A K A L I LT D Potassium sulphate (SOP) is a geologically scarce resource with strong demand growth drivers, and a favourable agriculture commodity of the future.

Capital Intensity and Operating Costs Low capital intensity and operating costs are achieved as a result of the extraction of the potassium salts in solid form. All primary producers of SOP commence with potassium rich brine which requires large amounts of evaporation, and a large area of evaporation ponds to generate a harvest salt for further processing.

Colluli has the unique advantage of starting with salts in solid form, which minimises both footprint size and capital investment. The favourable combination of salts also gives a high potassium yield which lowers the overall operating costs.

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also has huge upside potential with appreciable volumes of rocksalt, magnesium chloride and gypsum also present in the resource.

“The potassium salt diversity of the Colluli resource cannot be matched by any other potash basin in the world ,” Donaldson added. “We have a massive resource, the ability to diversify potash type, are close to the coast and key markets, and exposure to huge upside potential with a suite of non-potassium salts that have well established markets .”

“There are only three major primary producers in the world making potassium sulphate. The market dynamics are highly favorable for us.”

Location Being close to the coast makes the Colluli resource one of the most accessible potash deposits in the world. “Logistically, Colluli is simple relative to many planned greenfield Diversity and marketability developments, and the East Africa The diversity if potassium bearing location is highly advantageous salts within the resource allows Colluli relative to key potential markets in to produce a range of potash fertiliser the Middle East, India, East Asia and types including potassium sulphate, Africa” said Donaldson. potassium magnesium sulphate and potassium chloride. In addition, it w w w. d a n a k a l i . c o m

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D A N A K A L I LT D

Samples for shipping to the Saskatchewan Research Council

Attention to Environment and CSR Assessing and mitigating the social and environmental impact, and being responsible corporate citizens arekey to developing sustainable operations. As Donaldson explained, “The Joint Venture team is very focussed on ensuring the project has a positive impact on local communities and respect for the environment. Eritrea places a high level of focus and importance on the environment, and we are working through a comprehensive social and environmental impact assessment as part of our definitive feasibility study 126

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and this will form the foundation of our social and environmental management plans. .”

One of the biggest aspects for the Colluli Potash Project going forward will be recruiting and incorporating local residents.

“The way we interact with the community is by informing them of the project itself and what it means in terms of equipment, people and changes in the local area. We also have an exploration camp set up in the area and the local people actually run the facility for us— cooking, cleaning and assisting in miscellaneous tasks,” Donaldson explained.

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“In the future, as the project develops, we see those local communities as the priority recruiting area to upskill for jobs in the operation.

“There are mining operations ongoing in the area now so the skillset is building up in the country that we can draw from. Caterpillar is also set up in the country to do mobile production technician training so there are skills and trades within the country. We’ll prioritize jobs with the local community but for the professional roles we’ll have to go further abroad like South Africa and Europe for seasoned mining professionals.”

Company Information INDUSTRY

Mining HEADQUARTERS

West Perth, Western Australia, Australia FOUNDED

2003

Safety Taking safety into account is a priority for Danakali.

“Our safety approach is based on risk assessment and accurate planning procedures [that are considered] prior to task execution,” said Donaldson. “Fundamentally, everything we do has a risk-based approach. We go through an annual risk register process, which looks at corporate, safety, project and operational risks.

We prioritize those to ensure we have mitigation plans in place as needed.”

The Colluli Potash Project is by far one of the mining industry’s most comprehensive and exciting projects in the world.

“This is one of the best undeveloped potash and agrichemical resources in the world today, favorably positioned to supply the world’s fastest growing markets,” Donaldson concluded.

EMPLOYEES

10 PRODUCTS/ SERVICES Danakali (ASX:DNK) is an ASX listed company and 50 per cent owner of the Colluli Potash Project in Eritrea, East Africa. The company is currently developing the Colluli Project in partnership with the Eritrean National Mining Company (ENAMCO).

The project is located in the Danakil Depression region of Eritrea, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally.

Mineralisation within the Colluli resource commences at just 16m, making it the world’s shallowest known potash deposit. The resource is amenable to open pit mining, which allows higher overall resource recovery to be achieved, as it’s generally safer than underground mining and is highly advantageous for modular growth.

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Roy Hill:

Inside the Making of Roy Hill

The $10 billion project will be the largest single feed proce plant in the Pilbara region of Western Australia, providing of economic and social benefits to the country. Barry Fitzg reveals the inner workings of the project as well as the com legacy for the future.

Written by: Robert Spence Produced by: Vince Kielty

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essing g a wealth gerald mpany’s

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he long awaited Roy Hill project in the Pilbara region of Western Australia is finally coming to fruition. Representing the next era in iron ore mining, the $10 billion project is expected to unlock a treasure trove of iron ore— 55 million tons per year—through an integrated mine, rail and port operation, while providing significant economic and social benefits in the process. The Roy Hill operation is scheduled to load its first shipment of iron ore for export later this year.

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a vertically integrated pit-to-port business strategy utilizing a mine, rail and port system to efficiently mine, transport and export iron ore.

Roy Hill’s independently owned and operated railway is a 344km standard gauge, single line, heavy haul railway built to transport 55 million tons of iron ore from the Roy Hill Mine to the dedicated Port stockyard facility, in the Boodarie Industrial Estate south of Port Hedland.

“Five ore trains per day will operate from the Roy Hill Mine, each consisting of two diesel electric locomotives hauling 232 ore

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cars with a total payload of 31,132 tons of ore,” said Roy Hill CEO, Barry Fitzgerald.

“Due to the undulating nature of the terrain to the north of the mine, for the first 30 kilometres of the journey to Port Hedland, each train will initially be assisted by rear located, manned banker locomotives.”

The train system will include a wide array of state-of-theart technology, including a communications-based automatic train protection system that will provide improved safety for all track related activities and increased operational efficiencies.

“The adoption of this full vehicle tracking communication based technology is the first of its kind to be used in Australia and will set new benchmarks for iron ore railways in the Pilbara,” said Fitzgerald.

After transportation via rail, Roy Hill will then export shipments through its world-class iron ore port facility at Port Hedland. The facility is capable of receiving, stockpiling, screening and exporting 55 million tons of iron ore, including the capacity to store more than 2.3 million tons.

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SUPPLIER PROFILE

WSP | Parsons Brinckerhoff is one of the world’s leading engineering and professional services consulting firms. We provide services to a broad range of government and private clients in both the economic and social infrastructure sectors. Our expertise includes full engineering services, environmental services, urban planning, architecture, advisory and programme and project management services. We have approximately 31,000 employees in more than 500 offices across 39 countries worldwide.

Our Resources team draws together the expertise of our global business with a depth of skills, experience and resources that are seamlessly integrated to achieve your project’s vision. In addition to a wealth of experience delivering engineering solutions to the resources sector, we can provide tailored or fully integrated project, engineering, procurement, construction, contracts, commercial and planning management services.

We are leading the way in providing effective project management services for clients undertaking major projects using an Engineering, Procurement and Construction (EPC) form of contract.

Our core values embed integrity, innovation, team work, and sustainability in everything we do.

Our organisation is committed to providing a safe environment for our employees and those we work with. We have world class SHEQ processes and systems enabling us to effectively manage major projects and rapidly respond to the dynamic environment with effective risk management solutions.

This combined strength and our commitment to meeting our clients’ needs to get their products to market, position us with the skills, personnel, and experience needed for mining projects of virtually any size and complexity.

Websites: www.wspgroup.com | www.pbworld.com

ROY HILL Operational Centre (ROC) in Perth.

“The amalgamation of these business functions into a truly vertically integrated business provides a coordinated and integrated approach to the planning, operation and overall management of our corporate, mining, processing, rail and port operations,” said Fitzgerald.

“The co-location of the corporate headquarters and ROC provides us with the ability to seamlessly integrate the operations, marketing and corporate services functions from end to end.”

The ROC will consist of a demand chain team that is responsible for the operational planning, scheduling and execution of production, maintenance and supply activities across all areas of operations.

Their focus will be collecting and validating data, reporting it in real-

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time to be used in operational decision making.

“The ROC drives productivity and continuous improvement across the business, by focusing on how the individual functions of the business —operations, marketing and corporate—operate together most effectively as a whole,” said Fitzgerald.

“This approach ensures that the business is maximizing throughput and quality conformance, as well as managing variation to effectively minimize operating costs.”

Dream Team Along with developing the next generation of mining operations, Roy Hill intends on developing the next generation of employees.

“We want to be a knowledgebased organization with a focus on innovative thinking that helps

“The Remote Operations Centre drives productivity and continuous improvement across the business, by focusing on how the individual functions of the business —operations, marketing and corporate—operate together most effectively as a whole.”

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Powering Australia’s most visionary resource project The development of the Roy Hill Project is world-class, and Alinta Energy is proud to power the project that will energise Western Australia’s resource sector now and into the future.

At Alinta Energy, our challenge is to make energy more affordable, and we are excited to build on our strong history in WA by bringing a secure and competitive power solution to the Roy Hill Project.

To supply the full power requirements of the Roy Hill Mine, Alinta Energy successfully completed the construction of a new high-voltage 121km transmission line from its Newman Power Station to the Roy Hill Mine – demonstrating a tailored approach to providing end-to-end power solutions.

Powering the Pilbara into the future The Roy Hill Project has opened doors for futher investment in power supply solutions in the Pilbara Region. With a diverse portfolio of assets that generates, distributes and retails energy, we are committed to continuing to deliver reliable energy solutions to Pilbara customers.

13 13 58

alintaenergy.com.au

Like us on Facebook facebook.com/alintaenergy

Follow us on Twitter twitter.com/alintaenergy

SUPPLIER PROFILE

Alinta Energy has an established history in the Pilbara region through operation of the gasfired Newman and Port Hedland Power Stations since 2004. Alinta Energy is proud to build upon this history by supplying the full power requirements of the world class Roy Hill Mine under a long-term power purchase agreement (PPA).

Demonstrating our tailored approach to providing end-to-end power solutions, Alinta Energy successfully completed the construction and commissioning of a new 121km 220kV transmission line from Alinta Energy’s Newman Power Station to the Roy Hill Mine. In conjunction with the transmission line development, Alinta Energy also constructed a 6MW diesel power station at the Roy Hill Mine site as part of this project. The new transmission line infrastructure and diesel power station are both owned and operated by Alinta Energy.

The project was delivered ahead of schedule and within budget. Construction of the project was approximately 12 months in duration after almost 18 months of extensive planning activities, encompassing permitting and tenure associated with the transmission line build.

Alinta Energy recorded no lost time injuries throughout the 430,000 hours worked on the construction of the project, highlighting the strong safety performance of both our employees and contractors.

Successful completion of the project included 23 major crossings of both public and private roads, high voltage infrastructure and rail. Alinta Energy consulted closely with key government stakeholders and landowners in order to obtain the necessary approvals in a very short timeframe for a project of this nature. Close collaboration with the Roy Hill Project delivery team, during both planning and construction phases, was also vital to the overall success of the project.

“As gas fired generation has a significantly lower cost than diesel, the construction of the line not only brings a reliable, but also a competitive solution to additional customers in the region”, said Alinta Energy Executive Director for Power Generation, Ken Woolley.

“The costs of operating in the Pilbara are high and energy is a significant proportion of these costs. Enabling the region’s commercial contributors to operate more efficiently maximises their profitability and, therefore, sustainability in the region.

Alinta Energy’s successful completion of the transmission line creates exciting opportunities for additional customers in the Pilbara region who are seeking competitive and reliable power solutions, beginning with Roy Hill”, said Mr Woolley.

Websites: www.alintaenergy.com.au

ROY HILL drive productivity and business improvements, so that we continue to deliver what we say we will deliver,” said Fitzgerald.

“We are creating an organization that is free of bureaucracy, where efficiency through streamlined processes drives high performance and delivers cost effective, fit for purpose outcomes.”

The company aims to cultivate a work environment that is conducive to creativity and collaboration, where people actively contribute and realize their full potential.

“We want to cultivate a great work environment for our employees—a place where people are engaged and committed to achieving success. We want to be an organization where people feel proud about what they’ve done and about working for Roy Hill.”

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To ensure employees are properly trained and updated on new safety precautions, the company implements a wide range of training programs for new and old employees, as well as unique initiatives to help them get acclimated with the company.

“We implement a range of training for our people starting with the induction training when they first join to introduce them to the vision, and values of the company and the behaviours we expect from our people. We run regular safety and operational capability and accreditation training and all staff attend a cultural awareness training program that is run in collaboration with the three traditional owner groups whose country the project operates in – the Nyiparrli, Palyku and Kariyarra people.”

“We want to be an organization where people feel proud about what they’ve done and about working for Roy Hill.”

– Barry Fitzgerald, CEO

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// U N R I VA L L E D PA R T N E R S H I P

The Hitachi EH5000AC-3 mining truck and EX8000-6 backhoe excavator.

From the factory to the pit, Hitachi’s ultra-class hydraulic excavators and electric drive mining trucks are engineered to maximise the productivity of mining operations. Our flagship machines deliver unmatched performance and reliability when it comes to loading and haulage.

The most powerful and productive combination yet.

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ROY HILL Leaving A Legacy Another reason for the significance of the Roy Hill project is the immense economic and social benefits it brings to Australia.

Construction of the massive project, including railway and port facilities, has created around 5,600 jobs at its peak, and ongoing operations will require 2,000 workers. The project has generated more than 39,000 direct and indirect jobs, including 600 people currently working directly for Roy Hill, which will increase to more than 2,000 when the project reaches full production.

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Another unique aspect of the Roy Hill project is their approach to reducing their environmental footprint. According to Fitzgerald, Roy Hill already has plans in place for rehabilitation and mine reclamation for the project.

“The nature of the Roy Hill deposit means we will be mining from multiple shallow pits, this allows us to progressively backfill mined pits using the overburden waste material being removed as a result of mining from each pit. These mined out pits will then be rehabilitated using previously removed original topsoil, which facilitates better growth of

SUPPLIER PROFILE

Hitachi Construction Machinery (Australia) Pty Ltd (HCA) is a subsidiary of Hitachi Construction Machinery Co., Ltd. (HCM). Since the establishment of our parent company, HCM in 1949, it has evolved into a leading global manufacturer of Hitachi mining equipment, including both AC Drive mining trucks and hydraulic mining excavators.

We are part of the global and diversified Hitachi Group, one of the world’s largest companies and leading manufacturer of new technologies across a range of industries—including consumer electronics, automotive and transportation systems, information and telecommunications, and power generation.

At HCA, we deliver comprehensive sales, service and parts support to Australian customers across the mining, construction, quarry, forestry, material handling and recycling industries through a wholly-owned national branch network.

We are the exclusive distributors of Hitachi, Bell and John Deere products in Australia—three of the most renowned and innovative Original Equipment Manufacturer (OEM) brands in the world.

Website:

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ROY HILL indigenous flora. There is a twofold benefit to this rehabilitation method, it considerably reduces waste removal costs through shorter haul distances, but also once mining has been completed, we will have returned the landscape to its natural state leaving very little evidence of mining activities.”

Roy Hill also plans to go the extra mile in terms of corporate social responsibility. In accordance with its values, the company is actively seeking to go beyond just the Roy Hill

Project to leave a lasting legacy in the communities in which it operates.

“Our plan for leaving a positive legacy in the communities in which we operate is unique to the approach from others in the industry,” said Fitzgerald. “We have established the Roy Hill Community Foundation, a charitable trust established to focus on delivering education, training and employment, community development, business development and culture and arts programs to these communities.”

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Our screening media applications work in harmony with our world class vibrating screens. If you have a screening application we have the products, innovation and know how to provide you with the optimal solution.

Proud to be supplier of choice for vibrating screens, feeders and train load out equipment for the Roy Hill Project.

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Fitzgerald concludes, “The difference with the Roy Hill Community Foundation is that we have invited our contractors, business partners and suppliers working on the project to join us in leaving a lasting legacy in the Pilbara, by making monetary or in kind donations to the foundation.

We believe that by working in partnership, we can make a significant difference by maximizing opportunities and addressing community issues that companies may not have the resources or expertise to tackle on their own. We have also introduced a high level of governance with our Foundation partner Samsung C&T and our platinum sponsors, Downer EDI, National Australia Bank and Hitachi having a direct influence on the programs the Roy Hill Community Foundation will implement.”

Company Information INDUSTRY

Mining HEADQUARTERS

Perth, Western Australia, Australia EMPLOYEES

Approx. 2000 at full production PRODUCTS/ SERVICES The Roy Hill Project is a 55 million ton per annum (Mtpa) iron ore mining, rail and port project being developed in West Australia’s Pilbara region.

Situated approximately 115 kilometers north of Newman, Roy Hill is a world-class, low phosphorus, Marra Mamba iron ore deposit located in the Pilbara—one of the world’s premier iron ore provinces— and the only independent iron ore project with West Australian majority ownership.

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Value from MINING invested in energy and infrastructure Grupo Mexico’s mining operations result in railways and other infrastructure resources to provide business and community development, with the sight on the opening of the energy sector.

Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group - LATAM Interviewee: Xavier Garcia de Quevedo Topete, President of the Infrastructure Division for Grupo Mexico

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GRUPO MEXICO

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Social initiative: Providing healthcare services to the community

he key to Grupo Mexico’s burgeoning ventures is the integration of business units able to relate and support each other, taking part in a large, wholesome scheme.

The construction company that started it all during the 1940s became a mining company after a quarter of a century. The mining operation evolved into surface mining, which brought Grupo Mexico the opportunity to invest abroad.

Afterwards, the corporation broadened its reach toward the freight trains industry, experiencing constant growth from 9 to 25 percent, after investments of more than $5 billion over a 17-year span.

Since the mid-2010s, Grupo Mexico is aware of upcoming business opportunities and other positive changes derived from the country’s energy reform, since its Infrastructure division already took part on the construction of a wind farm and two combined cycle power plants, among other ventures.

Efforts by Grupo Mexico have resulted in taking the country up the ladder among the largest copper, silver, molybdenum and zinc producers, globally.

“We believe in the Mexican energy reform, our organization has the capability to discover new oil fields and increase its production,” shared Xavier Garcia de Quevedo, President of the

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Infrastructure Division for Grupo Mexico. Garcia de Quevedo was first hired for Grupo Mexico in 1969; he has witnessed the corporation’s growth and diversification since the days in which mining was its only activity.

Key People

Business Units Benefitting Own Companies and Clients Grupo Mexico’s successful mining operations currently take place in Mexico (La Caridad and Cananea, both in the State of Sonora), in the U.S. (ASARCO surface mining operations, foundries and copper refineries in Arizona and Texas), and in Peru through Southern Copper Corp. (Toquepala, Cuajone and the Ilo metallurgy plant). The corporation trades as GMEXICO in its home country’s stock exchange. New extraction ventures are on their way in Argentina and

Xavier Garcia de Quevedo President of the Infrastructure Division for Grupo Mexico He joined this corporation as an engineer of metal production in 1969. He is also the former President of Minera México and the Northamerican mining company Asarco Co. Under the management of Garcia de Quevedo, he developed a new business unit, rail freight in 1988. He is currently Chairman of the Division of Infrastructure at Grupo Mexico, and among his tasks is the development of mining projects. Additionally, he participates as a member on the boards of all the companies of Grupo Mexico.

García de Quevedo has served as president of the Mining Chamber of Mexico (2006-2009) and he is also member of the executive committee.

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Truck drivers in Buenavista del Cobre copper mine

Power generation plant

Ecuador, also; and most recently, Grupo Mexico was tendered the Aznalcollar extraction project in the Iberian Pyrite Belt, located between the south of Portugal to Sevilla, in southwestern Spain.

These set of projects Grupo Mexico’s main assets to keep the corporation atop the three largest copper producers on the world.

The freight railroad operation, settled mainly in Mexico’s northwest, is an important network quite by itself by extending into eight important cargo ports located in the Pacific Ocean, the Gulf of California and the Gulf of Mexico; it’s also a link to five border crossing stations to the U.S. This network provides Grupo Mexico of leadership among Mexican railways.

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SECTOR

Human resource at Buenavista del Cobre in Sonora

Grupo Mexico’s coveted stocks and satisfying financial reports for shareholders are the result of interrelated factors: operating in different business areas such as mining, freight trains, energy, infrastructure, gas and oil drilling, and industrial construction. These business units are driven by a constant increase in efficiency, cost reduction, and development and career advancement opportunities for its human resource.

“To sustain our leadership, we must strive on continuous performance improvements, benchmarking, as well as relying on the best possible technology,” Garcia de Quevedo explained.

“Opportunities exist, but we must look and develop them...

We are more satisfied when we create jobs and generate value” – Xavier Garcia de Quevedo, President of the Infrastructure Division at Grupo Mexico

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State-of-the-art technology in mining

Energy Reform: More Than Hoping Into the Bandwagon

Sustainability in Grupo Mexico: entire families take part on

Grupo Mexico is serious about the country’s energy reform; the particular feel voiced by its high management about upcoming changes, is for mining to be granted the same relevance energy receives, considering similarities between both sectors.

reforestation efforts

The corporation’s experience in drilling trails back to 1959, both for oil and gas reservoirs located on land and sea. Recent investments of $1.2 billion were destined to six offshore platforms and three land rigs, enabling Grupo Mexico to take part in the opportunities brought by this reform.

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Grupo Mexico’s exploration

“Proper policies and regulations for the sector can create the best conditions to make the most out of these sectors,” the executive pointed.

Environment and Community High management at Grupo Mexico shares the same philosophy with the rest of the organization: every business unit is concerned with finding a balance of compatibility between mining activities and a genuine care for the environment and surroundings.

“Mining grew in an important way due to suitable policies in recent years” – Xavier Garcia de Quevedo, President of the infrastructure Division at Grupo Mexico

Before beginning any new project, the company establishes a relationship with communities surrounding their projects; this way, Grupo Mexico gets to know the inhabitants’ needs and w w w. g m e x i c o . c o m . m x

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QUIMICA TEUTON, S.A. DE C.V. Qu铆mica Teut贸n is a 100% Mexican private Company with 27 years of history in operations serving the mining industry.

Chemical products sales for ore concentration (Cu, Mo, Pb, Zn, Fe, Au, Ag, etc) Product portfolio applies to diverse unit operations in the mining industry such as grinding, floating, thickening, filtration and water treatment.

www.quimicateuton.com.mx

GRUPO MEXICO

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priorities in order to benefit the community and landowners. Some of the towns and villages near the corporation’s mining projects host a “Casa Grande” community center, where locals are able to share resources they would hardly have access to had Grupo Mexico chosen not to engage in a project in their area.

Another priority for Grupo Mexico and its vast engineering staff is to continuously upgrade their machinery, as it is no secret that the latestgeneration equipment will inflict a less negative impact on the environment.

First class iInfrastructure

“It should be a priority to develop some kind of scheme in which mining and oil drilling coexist in protected environments,” the executive stressed.

Required Skills for Candidates Each of Grupo Mexico’s business unit carefully detects and chooses highly skilled professionals.

These individuals embark on successful careers, developing leadership and becoming fully involved in the company’s endeavors and projects. This selection process is a key factor to accomplish set goals in every business unit.

“Much of our group’s success and growth owes to our efforts in developing the best elements a staff could have,” Garcia de Quevedo said.

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GRUPO MEXICO The Future Remains Positive for Grupo Mexico

Efforts of the Grupo Mexico Foundation

Having developed three successful business units in continuous growth, Grupo Mexico must maintain on top of every feat leading to new business opportunities which may contribute to its operations network, thus benefiting also other industry sectors.

Mining operations are currently under expansion; the Buena Vista del Cobre project (in Sonora, Mexico) is expected to surpass the million tons of copper mark during 2015. The Tia

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Maria mine (Arequipa, Peru) is projected to deliver 120,000 tons of copper, once local authorities concede the required permits. Also in Peru, the Toquepala mine’s expansion received a $1.4 billion investment to maintain productivity at a 100,000 tons a year average.

Company Information NAME

Grupo Mexico INDUSTRY

Latest explorations include the “El Arco” copper deposit, in the Baja California peninsula; the area in which “El Arco” is located is being provided of the necessary infrastructure before beginning excavation and mineral extraction.

The tender earned to work in the Iberian Pyrite Belt, along with current ongoing projects and production levels could triplicate Grupo Mexico’s zinc production.

Mining, Transportation, Energy, Construction, Infrastructure HEADQUARTERS

Mexico, Distrito Federal, Mexico FOUNDED

1942

The Infrastructure division is also involved in a very important project: the construction of a highway between the cities of Salamanca and Leon, both in the State of Guanajuato, of the “Bajio” zone, where an important industrial cluster (mainly automotive) is located, keeping busy all currently available routes.

EMPLOYEES

29,800 REVENUE

USD $10 billion WEBSITE

Upcoming business opportunities for Grupo Mexico would exist as a result of the current reforms and the grade in which the new laws could ease trade and infrastructure development.

“We are seeking other companies that share our same values and goals, that share a desire to invest in Mexico,” Garcia de Quevedo concluded.

www.gmexico.com.mx

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