Mining Global Magazine- September 2015

September 2015

www.miningglobal.com

TOP 10 Minerals That Make Modern Life Work

The Who’s Who of

SOUTH32

As the new kid in town, we break down everyone you need to know from South32

SPECIAL FEATURE

MINING FOR DATA: Using Advanced Graphing Software To Mitigate Safety Risks

EDITOR’S COMMENT

IN THIS ISSUE

“While South32 is grounded in the southern hemisphere, we will retain our global reach and ambition as we seek to exceed the expectations of a global shareholder base.”

– South32 CEO Graham Kerr

E A R L I E R T H I S Y E A R , M I N I N G giant BHP

Billiton shocked the industry when it announced it would be spinning off its non-core assets into a separate company called South32. In this month’s issue of Mining Global, we spotlight the who’s who of South32 and examine everything you need to know about the new kid in town.

Also this month, we’re paying homage to the minerals and metals that make modern life work. From the copper in wires that transmit electricity to the minerals in our smartphones, mining is the key to living life the way we do.

To round off the issue, we examine the top modeling tools companies use and examine their role in helping to predict stability and estimate stresses during routine excavation of coal.

Don’t miss our profile with Amanda Lacaze, chief executive officer of rare earth miner Lynas Corporation. Read her story to find out how she helped restore financial order at Lynas and what it means to be a woman CEO in the mining industry.

Enjoy the issue!

Robert Spence Editor robert.spence@wdmgroup.com

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CONTENTS

Features M A C H I N E RY

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The Who’s Who of South32

TOP10

20

Minerals That Make Modern Life Work

TECHNOLOGY

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Mining for Data: Using Advanced Graphing Software to Mitigate Safety Risks

September 2015

Company Profiles

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EUROPE 28 Cleveland Potash

Cleveland Potash

AFRICA 38 Shanta Gold 54 Palabora Group

AUSTRALIA 66 Austmine 72 Minecorp

AMERICA LATINA 82 Primero Mining

38

Shanta Gold

BRAZIL 94 AMG Mineracao

66 54 72 Minecorp

Austmine

Palabora Group

82

Primero Mining 5

M A C H I N E RY

The Who’s Who o

As the new kid in town, we break down e

of SOUTH32

everyone you need to know from South32 W R I T T E N B Y: R O B E R T S P E N C E 7

M A C H I N E RY

SOUTH32 is a globally diversified metals and mining company operating in Australia and Southern Africa. Named after the parallel of latitude that connects Perth and South Africa, South 32 is a spinoff of BHP Billiton’s noncore assets – aluminum, coal, manganese, nickel, silver, lead and zinc - and aims to create a business that lives by its values, is socially and environmentally responsible and provides a better future for host communities. As the new kid in town, we break down everyone you need to know from South32.

Graham Kerr - Chief Executive Officer and Executive Director Since joining the company in 1994, Graham Kerr has spent the majority of his mining career working for BHP Billiton. Kerr was appointed Chief Financial Officer in 2011 and has held various positions for BHP in Australia, Canada, South Africa, Angola and Mozambique.

Prior to being appointed CFO, Kerr was President of Diamonds and Specialty Products, responsible for the EKATI Diamond Mine in Canada, the Richards Bay Minerals Joint Venture in South Africa, diamonds exploration in Angola, the Corridor Sands Project in Mozambique and the Development of BHP Billiton’s potash portfolio in Canada.

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September 2015

THE WHO’S WHO OF SOUTH32

Brendan Harris – Chief Financial Officer Brendan Harris commenced his mining career as an exploration geologist, involved in iron ore exploration in the Pilbara region of Western Australia. Harris joined BHP in 2010 as Vice President Investor Relations Australasia and was appointed Head of Investor Relations in 2011. Prior to BHP Billiton, Harris spent a decade in investment banking, holding various roles including Executive Director Metals and Mining Research, Macquarie Equities.

Ricus Grimbeek – President and Chief Operating Officer, Australia Ricus Grimbeek joined BHP Billiton in 1992. He has enjoyed success in numerous positions within and outside the company. His roles have included Executive Vice President Mining for Lonmin Platinum, Head of Group HSEC and President and Chief Operating Officer of the EKATI Diamond Mine in Canada.​ Grimbeek holds a Mining Engineering degree from the University of Pretoria and Advanced Certificate in Mine Ventilation from the Chamber of Mines.

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M A C H I N E RY

Mike Fraser – President and Chief Operating Officer, Africa Similar to his colleagues, Mike Fraser has spent the majority of his career with BHP Billiton, joining the Billiton Group in 2000 as Head of Compensation and Benefits before being appointed President, Human Resources and a member of the Group Management Committee in 2013. Fraser has held various roles in BHP Billiton’s Coal, Manganese and Aluminium businesses in a number of regions around the world.

Fraser holds a Master of Business Leadership and a Bachelor of Commerce from the University of South Africa.

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September 2015

Nicole Duncan – Chief Legal Officer and Company Secretary Nicole Duncan joined BHP in 2000 and was appointed Vice President, Company Secretariat in 2013. Her previous roles include various legal and commercial roles within BHP Billiton such as Vice President, Supply, Group Information Management and Senior Manager, Group Legal. Prior to joining BHP Billiton, Duncan was a lawyer at Ashurst in Melbourne.

Duncan holds a degree in Law and an Honors degree in History from the Australian National University.

THE WHO’S WHO OF SOUTH32

Paul Harvey – Chief Transformation Officer Since joining BHP Billiton in 1992, Paul Harvey has spent the majority of his career in broad operational activities across the Group. As Chief Transformation Officer, Paul Harvey is responsible for supporting the Executive Committee for South32.

Dale Calhoun – Chief People Officer Dale Calhoun was appointed Chief People Officer of South32 in March 2015 and is responsible for Human Resources, Corporate Affairs and Community Relations and Sustainability.

Prior to South 32, Calhoun spent the majority of her career in human resources, working in a number of industries and organization, including Fortescue Metals Group, lluka Resources, Southcorp, Boral and George Weston Foods.

Calhoun has a Bachelor of Commerce from the University of Melbourne and holds a Graduate Diploma in Industrial Relations from the Royal Melbourne Institute of Technology.

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Mining for Data: Using Advanced Graphing Software to Mitigate Safety Risks

TECHNOLOGY

Learn how specialized modeling tools help to predict stability and estimate stresses during the routine excavation of coal W r i t t e n b y : E A S W A R I Y E R , V I C E P R E S I D E N T O F T E C H N O LO G Y, O R I G I N L A B

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TECHNOLOGY

WHEN SECTIONS IN underground mines are overstressed and pose hazardous conditions, there is a great deal at stake in terms of equipment, time and, most importantly, lives.

Specialized numerical modeling tools have been developed over the years to predict stability and estimate stresses during the routine excavation of coal, simplifying the representational data extracted from the abundant variables 14

September 2015

measured. Mining engineers turn to four possible numerical modeling tools for analyzing stress: an empirical model that underlies the Analysis of Longwall Pillar Stability (ALPS) program; the three-dimensional displacement discontinuity program MULSIM/NL; the three-dimensional flexible overburden program LaModel; and the two-dimensional volume-element program FLAC.

M I N I N G F O R D ATA

Each of these tools has underlying assumptions that affect their calculated results, which may or may not be calibrated correctly to the current site. To determine which model most closely follows the actual stresses in the mine, engineers analyze the difference between reallife conditions and the calculated results of these models. Advanced graphing software equips mining engineers with tools needed to collect measurements from the mine and the resulting calculations, in order to present them in detailed, insightful graphs for proper analysis of the various numerical models.

Data Collection Collecting a high volume of measurements is necessary to provide an accurate gauge of mining behavior and to calibrate numerical models adequately. However, the millions of points of calculated data produced from these modeling tools are staggering. In most cases, the output will not fit on a single sheet of a spreadsheet. Extraction of certain stress or displacement profiles from the spreadsheet requires exhaustive periods of time considering the

thousands of models that are necessary. Additionally, the contouring capabilities of spreadsheets are poor, at best, or nonexistent.

In its place, data analysis and graphing software helps to collect calculated results from the models and measurements of stress, displacement, and load from the mine. Using scripting language for programming the analysis and graphing of data, mining engineers can then automate data import and extraction. This eliminates the time consuming task of manual data entry and the inevitable inaccuracies from human errors, which could have disastrous implications.

With advanced graphing capabilities, engineers can easily compare model output with measurements to determine whether a model was adequately calibrated.

In addition, graphing software aids researchers to determine the appropriate constitutive laws or material strength models to use. A visual comparison of the calculated results from each model can clearly present conclusions as to which model most closely followed the measured mine activity.

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TECHNOLOGY Visualization Importing such an abundance of data can make it difficult to uncover any insight, much less make a deductive conclusion by solely looking at the data presented in spreadsheets.

This is why comprehensive, variablestyle visualization is necessary.

Looking specifically at the LaModel and MULSIM/NL models, diagram 1A examines Borehole Pressure Cell (BPC) measurements and makes comparisons between the measured and calculated load transfer distances.

The measured results are plotted Fig.1

in line and symbol graphs against the numerical models. The similarity between the measured curve and the calculated MULSIM/NL elastic curve indicate that the MULSIM/ NL elastic 60-80% coal model is more accurate than the LaModel and MULSIM/NL 900-psi models. This would not be easily discovered by only looking at spreadsheets of data.

Only when plotted on this easy-tofollow graph is it clear which numerical model most closely represented the actual mining process. (Fig.1) Larson MK [2015]. MulsimNL/ Large: Reviving a USBM tool for modeling coal mines. In: Preprints: 2015 SME Annual Conference & Expo, CMA 117th National Western Mining Conference. (Denver, CO: February 15–18, 2015) Englewood, CO: Society for Mining Metallurgy, and Exploration, Inc., Preprint 15-039, 11 pp.

Presentation The manner in which research is presented can positively or negatively alter the perception of its validity.

This is especially true when sharing work in journals and speaking at industry events. Researchers often think that basic graphing

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M I N I N G F O R D ATA

Fig.2 applications are adequate enough to fulfill their presentation needs.

However, the resulting graphs tend to be quite simple and lack the flexibility necessary to properly express the true insight of the data.

Diagram 1A depicts the distribution of stress increase with respect to the pre-panel phase of a longwall mining panel from the American west, with an instrument line noted in pink and the calculated MULSIM/ NL model stress increase displayed in contours. This mining step shows the average location of the face when

the instruments detected the stress increase reading of 20 psi. When comparing the MULSIM/NL model with actual measurements, the stress increase contour line approximately meets the location of the instruments, indicating that the rock mass stiffness for the MULSIM/NL model is calibrated in line with the measured stress profiles. Ultimately, professional presentations like this contour graph increase the credibility of the research it is displaying, and help mining project managers correctly calibrate numerical models. (Fig.2) 17

TECHNOLOGY

The graph was developed and provided by the National Institute for Occupational Safety and Health (NIOSH). Use of this graph does not imply that NIOSH, the Centers for Disease Control and Prevention, or the Department of Health and Human Services endorses OriginLab Corporation or its products.

The ultimate goal of this type of research is to better understand how to predict impending danger and 18

September 2015

what to do about it. Numerical models are only sufficient if they follow the rock mechanics of the mine. The insight extracted from these data and graphs help in calibrating the numerical tools and determining their limitations. Calibrating basic modeling parameters to in-mine measurements and determining basic material models of the coal present significant steps toward mitigating mininginduced hazards. The data collection,

M I N I N G F O R D ATA

visualization and analysis provided by advanced graphing software will unquestionably be instrumental in future research to identify other geologic structural conditions that contribute to mining-induced, sudden release of seismic energy. Mining engineers tasked with safe excavation must ensure the proper model is chosen for the particular section of underground mine and create a viable, valid and informative model, which

permits them to do so.

With a site-specific, calibrated model, engineers can accurately anticipate impending collapses and prevent catastrophes that endanger mine workers, equipment and production. Mining remains a dangerous job, but proper work by mining engineers will lessen the inherent risk and create a safer environment.

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TTOO P P 11 00

Minerals that make

Modern Life Work

You can’t enjoy your way of life without these fundamental minerals.

Written by: Robert Spence

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TOP 10

09

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POTASH

One of the most underrated minerals in the world, potash plays a central role in helping feed the world’s growing population. Approximately 95 percent of world potash production is used as fertilizer with the remaining amount used for various chemicals.

Derived from “pot ash�, which refers to plant ashes soaked in water in a pot, the mineral is produced worldwide and exceeds more than 30 million tons per year.

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September 2015

ZINC

Along with various health reasons, zinc is vital for modern life because of its resistance to corrosion.

Used since the 10th century, the metal is used to make many useful alloys including lead, tin, brass and copper.

Metallic zinc is also used to make dry cell batteries, roof cladding and die castings.

Normally found in association with other base metals such as copper and lead in ores, zinc is the fourth most common metal in use. It trails only iron, aluminium and copper with an annual production of roughly 13 million tons.

M I N E R A L S T H AT M A K E M O D E R N L I F E W O R K

07

BAUXITE

Although not technically a mineral, bauxite is formed from a laterite soil that has been severely leached of silica and other soluble materials in a wet tropical or subtropical climate. Bauxite is, however, widely used to make modern life work. It is primarily used to create aluminum.

08

LITHIUM

Lithium, a soft, silvery metal is the lowest density of all metals and is often made into alloys with aluminum and magnesium to improve their strength, including making them lighter.

Used in everything from mobile phones, laptops, digital cameras and electric vehicles, lithium is one of the most popular metals used in today’s modern life. In fact, with the rise in popularity for electric cars the global consumption for lithium has more than doubled since 2012.

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TOP 10

05

GOLD

Gold is the clear breadwinner when it comes to valuing minerals and metals. The precious metal is one of the most useful metals on Earth, providing a wealth of special properties that make it extremely desired. Not only can gold conduct electricity, but it doesn’t tarnish and it’s very easy to work with. It’s also used for a wide range of jewelry and important objects like wedding rings, Olympic medals, Grammys, money, etc..

06

COBALT

Thanks to Tesla, cobalt is expected to become the commodity of the future as it is widely expected to be used in the company’s new Powerwall innovation. This lustrous, silvery-blue metal is magnetic and is often alloyed with aluminum and nickel to make particularly powerful magnets.

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September 2015

M I N E R A L S T H AT M A K E M O D E R N L I F E W O R K

03

IRON ORE

Iron ore is fundamental in creating railway tracks which have long been a central part of daily life. Not only do they connect families and communities together, but they serve businesses by transporting products, services and freight needed to power the world.

04

SILVER

Known for its rarity and value, silver has many uses in our modern day lives. Traditionally used for jewelry and silverware, the precious metal is also resistant to corrosion and oxidation, making it extremely useful for other industries. In addition, silver is the best thermal and electrical conductor of all the metals. Beat that gold.

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TOP 10

02

PLATINUM

Platinum serves a critical role in the circuit boards of medical apparatus, electrical gadgets and household gadgets, including fiber optic cables for telecommunication devices. The metal is also critical in keeping people alive, serving a huge role in pacemakers to transmit electrical impulses to stabilize heartbeats.

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September 2015

M I N E R A L S T H AT M A K E M O D E R N L I F E W O R K

01

COPPER

Copper is the most vital mineral to modern life, used in everything from electrical wiring in households and cars to the saucepans in our kitchens. Thanks to its antimicrobial properties, copper can even fight bacteria.

The versatile metal can treat conditions like arthritis, cancer and heart disease while also helping to make local economics run with copper-based coins. Since 3,000 BC, copper has played a pivotal role in powering our daily lives and making the modern world work.

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UK

Cleveland Potash

Leading The Way In Europe’s Fertiliser Market Written by: Nye Longman Produced by: James Pepper

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C L E V E L A N D P O TA S H

The fertiliser producer is investing in the production of an exciting new mineral fertiliser from a solid base of operations

I

sreal Chemicals Ltd ICL) UK (previously called Cleveland Potash) is investing close to £90 million to become the first producer in the world to supply farmers with a new polyhalite fertiliser which will supplement its already strong potash and salt offering. At the same time it has made a strong commitment to invest in its staff with a comprehensive training programme to give them the skills needed for the highly-sophisticated mining operations.

Operations Set alongside the North Yorkshire coast, the Boulby mine accounts for roughly half of the UK’s entire potash output and is now leading the world in the production of polyhalite, a unique mineral salt which can be used as a fertilizer.

It is comprised of calcium, magnesium and

The Boulby mine accounts for roughly half of the UK’s entire potash output

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September 2015

EUROPE

Cleveland Potash has made a strong commitment to invest in its staff

potassium sulphates, each of which is important for crop development, and is low in chlorine which makes it suitable for use with sensitive crops.

Managing Director David Zvida outlined the significance of the geological studies which indicated that more than a billion tons of polyhalite ore are located beneath the potash deposits: “We saw that polyhalite offered an exciting new future for the mine. We have been producing limited amounts over recent years and are now following this up with an investment of £38 million, split between specialist mining equipment, constructing a dedicated crushing and screening plant on the surface and constructing domes for poly-storage at the Tees Dock.

“Immediately after this is completed we

1000 Number of staff employed

by Cleveland Potash

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AMCO is a specialist contractor providing sustainable, multi-disciplinary solutions to the Infrastructure, Environmental and Energy sectors.

Within Infrastructure we operate in the specialist areas of mining services and moving structures, such as lock gates, linkspans and swing bridges. Our Environmental business is focused upon flood defence and water control. In the Energy sector our clients include all the major utilities such as E.ON, SSE and Magnox; for whom we create and maintain assets in nuclear, coal, gas, hydro and wind. With over 1,000 in house staff we deliver nationally but are organised regionally.

‘We add value by combining innovation with commercial awareness’

www.amco-construction.co.uk

C L E V E L A N D P O TA S H

EUROPE

will be constructing a £45 million granulation plant, aiming to convert up to 50 percent of the final product to a granular form which will open up market opportunities.”

Capitalising on its exclusive access to a unique and potentially revolutionary new fertiliser has not come without risk to the company. Zvida recognised the challenge of persuading some farmers to adopt a new fertiliser after so many decades of potash use, but his confidence in the product shone through when he revealed his goals for future production; the company’s decades of experience in the sector has provided the perfect base for this expansion.

“At the close of 2014, we finished with a total of 130,000 tonnes; this year our efforts have enabled us to budget for 225,000. The plan for

SUPPLIER PROFILE

At the close of 2014, Cleveland Potash finished with a total of 130,000 tonnes

AMCO ENGINEERING

AMCO Engineering provides a diverse range of specialist construction and engineering services, creating and maintaining assets for both public and private sector customers. We specialise in working on live assets; these include rail, power generation, electricity distribution, clean water, flood defence and waterways. Our business relationships are based on trust, mutual respect, best value, whole life costs and continuous improvement. We align our delivery capability to our clients’ culture, values and business needs; our aim is to help them achieve their strategic business objectives.

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C L E V E L A N D P O TA S H 2016 is 400,000 tonnes, 2017, 500,000 tonnes and, in 2018, 600,000 tonnes. This investment will be sufficient to make profit in our five-year years plan, if we want to we can increase the quantities due to the flexibility of our investment; we want to eventually move to 3 million tonnes.”

Cleveland Potash eventually want to move 3 million tonnes per year

Competitive Positioning Even before the discovery and development of its polyhalite reserves Cleveland Potash had an enviable position in the European fertiliser market due in no small part to how the company is structured. As the main UK operator of ICL, the company can directly

Solving Mining’s Toughest Challenges Deep underground, in mines around the world, our machines are hard at work. Joy Global’s proven solutions for performance, reliability and direct service are a few of the reasons why our customers achieve record-setting production and efficiency that reach beyond their expectations.

JoyGlobal.com Joy Global, P&H and Joy are trademarks of Joy Global Inc. or one of its affiliates. © 2015 Joy Global Inc. or one of its affiliates. All rights reserved.

EUROPE

sell its products to a global audience Zvida explained: “We use ICL’s global marketing and selling unit so we can look at sales of all ICL Potash across the world and we see together how we divide it between customers.

We have a global purchasing and procurement team, as well as a global quality unit and we have been moving towards shared services.

“We feel that we aren’t alone; we have departments that can help us with any issue including finance, marketing HR, quality issues, or procurement.”

Responsible Growth Being part of the ICL group of companies not only provides a distinct advantage for the business as a unit, but also for its individual workers, Zvida said.

“Being part of a group helps some of our team who want progress or want to move to other roles in ICL. It gives them more flexibility and more opportunity, we often relocate people and move them around ICL’s companies. I myself moved from ICL Dead Sea to be the Managing Director of ICL UK.” External Affairs and Security Manager David McLuckie underlines that this flexibility is part of a larger initiative aimed at improving the wellbeing and capabilities of workers at the mine “We have a constant training programme covering every aspect of the work we do. For example we have regular training on new software

Key Personnel

David Zvida Managing Director and General Manager David Zvida joined ICL in 1989 and served in diverse roles at the Dead Sea Works.

In his last role he served as Senior VP of Operations. In this role he was responsible for the overall running and operations of the Sdom site, including potash production and the entire production infrastructure support.

Zvida holds BSc in Chemical Engineering from the Israel Institute of Technology, as well as an MSc in Industrial Engineering and Management from Ben-Gurion University of the Negev, Israel.

Zvida started his role as the Managing Director and General Manager of Cleveland Potash Limited (CPL) on September 15th, 2014

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C L E V E L A N D P O TA S H

“We put roughly £140 million into the local economy in terms of goods and services. We did a study where it was proven that we are directly responsible for over 2,500 jobs in the area.”

– David Zvida, Managing Director and General Manager

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September 2015

that makes our jobs faster and easier. Every one of our miners has to undergo refresher training.

“Our approach goes above and beyond most companies, we are constantly upskilling and investing in our people. Indeed we have taken somebody who’s got no qualifications and put them through a university degree.”

With a firm commitment to making a positive environmental impact through its operations, Cleveland Potash goes above and beyond the requirements for its ISO: 14001 accreditation.

Zvida said “We review this with an external audit twice a year. We have a department that takes care of all of our ISOs. Every month we review incidents regarding the environment and safety, following up with

EUROPE

Company Information INDUSTRY

Mining HEADQUARTERS

Cleveland, UK

clear conclusions and recommendations.

MLuckie emphasised the large-scale socioeconomic impact the company has on the area: “We put roughly £140 million into the local economy in terms of goods and services. We did a study where it was proven that we are directly responsible for over 2,500 jobs in the area.”

The discovery of up to a billion tonnes of polyhalite deposits could not have happened under the watch of a better company; Cleveland Potash has proven through its deft management of its operations that not only does it have the courage to make a serious investment, but is also willing to ensure that the benefits of this find are adequately shared with its employees and the local area.

FOUNDED

Not Disclosed EMPLOYEES

1000 REVENUE

£200 Million PRODUCTS/ SERVICES

Potash and Salt Production

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SHANTA GOLD: Developing Written by: Nye Longman Produced by: Anthony Munatswa

g Holistic Mining Practices 39

S H A N TA G O L D

Luika Gold Mine, Ball Mills

The gold mining company is making a significant contribution to Tanzania’s local communities through exemplary operations

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September 2015

S

hanta Gold is a Guernsey-based gold mining and exploration company which operates across several sites in Tanzania through its subsidiary Shanta Mining Company Limited (SMCL); one of the most mineral-rich countries on the African continent.

Off the back of ÂŁ73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines.

While Tanzania has some of the most impressive gold reserves on the continent, these remain largely undeveloped; it has been the mission of Shanta to develop these assets and share the bounty with the communities it works in.

AFRICA

New Luika Gold Mine What makes the New Luika Mine increasingly useful to Shanta is its position to become a potential hub for all of its mining activities in the region; the facility consists of a conventional three stage crushing plant, along with two parallel mills. It has extensive potential for further development, as it adjoins the 1,300 square kilometres covered under license by Shield Resources, which it fully owns.

Currently, the company’s gold production is concentrated at this mine (which its owns through a 100 percent stake) spanning 16 square kilometres covered by three mining licenses and a single prospecting license which covers some 49 square kilometres. In order to enable access to high grade open pit ore reserves, and ensure future flexibility, a pushback has been planned at the Bauhinia Creek site which is estimated to be completed by the end of 2015.

Following a recent resource assessment, it was established that this mine contained a total in-situ resource of 1.48 million ounces.

The mine has shown record gold production of 84,028 ounces driven by seven consecutive quarters of increased production ending Q3 of 2014. Further drilling is scheduled this year which will decrease the risk profile of the mine extension associated with the mining work.

In a statement, the company said: “The update for the open pit reserves reflects the redesign of the open pits with a markedly reduced strip

300 Number of staff employed

by Shanta Gold ‘Off the back of £73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines’

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BC Mining Limited Plot 1401E Chole Road Msasani Peninsular Dar es Salaam info@bcmining.net

BC Mining is a local Tanzanian company providing contract mining services and mining infrastructure development. Having completed all the mine infrastructure, in February 2013 BC Mining began with the opencast mining contract at Shanta Gold’s New Luika project. Our Management Team have successfully managed an average production volume of 300,000 bcms per month, which has been consistently achieved with a 90% equipment availability during this period.

Proud to be partnering Shanta Gold on their Journey

DRILLING

COMPLETE SOLUTIONS SERVICING THE EXPLORATION AND MINING SECTORS People you can work with

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining sectors on surface and underground mining operations. We are currently providing services to Shanta Mining Company Limited at their New Luika Gold Mine for blast hole, grade control, geo-tech and exploration drilling.

BLOCK F10, TIRDO COMPLEX KIMWIRI ROAD, NAMANGA DAR ES SALLAM +255 755 367 371 darren@bamboo-rock.com

S H A N TA G O L D

AFRICA

ratio for a proportionally much smaller reduction in reserves. We look forward to announcing the underground feasibility study later this quarter.

This is a win-win for New Luika as the surface mine benefits from a substantial reduction in operating costs while a potential underground operation gets additional high grade resource.”

Singida Mine SMCL’s holdings at its Singida site are substantial to say the least; since 2011 the company has been conducting its definitive engineering study (which is undergoing an update scheduled to finish this year), which revealed up to 450,000 ounces of gold. Resettlement negotiations are currently underway (in line with the company’s strict CSR guidelines) which will enable construction to go

SUPPLIER PROFILE

Luika Gold Mine, Metallurgical Lab

BAMBOO ROCK DRILLING

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining Sectors on surface and underground operations. We are currently drilling for Shanta Mining Company Limited at their New Luika Gold Mine (blast hole, grade control, geo-tech and exploration drilling), Acacia - North Mara Gold Mine (Underground diamond, Surface Diamond and RC drilling) and Magnis Resources Limited (Exploration drilling).

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ORYX OIL COMPANY LIMITED

Wealth Unearthed

Oryx Energies has been supplying the saving for Shanta Gold Mine was identified Shanta Gold Mine at New Luika with diesel by changing from Diesel to Heavy Furnace Our diverse range of robust products for its generators, since the mine’s inception. Oil (HFO) for power generation. Oryx Oil are designed to cope with the most Thischallenging fuel is themining mine’senvironments lifeblood and requires Tanzania will be building a facility that will the fuel supplier to reliably supply products provide 400m3 of HFO storage capacity to to specification, on time and in full, to avoid fuel the generators on site. The fuel will be any interruption in operations. delivered from Dar es Salaam. “Partners” New Luika is a remote site, with road involved in this project will work closely conditions that make transport a challenge. together to ensure that this initiative is Oryx Energies’ affiliate in Tanzania, Oryx Oil delivered on time and that Shanta Gold can Tanzania, has taken on this challenge and, reap the benefits. in collaboration with the mine, has ensured Oryx Energies in Tanzania provides an that mining operations do not run dry. integrated energy platform that masters the Even during the recent transport strike, and defining value chain from product sourcing to in storage Advancing, constantly evolving the future of our technology Oryx Energies ensured that the New and distribution. the global mining industry We are proud of the strong Luika mine received enough fuel to keep business relationship we have with Shanta operations Gold and wish Mike Houston and his team AEL Mininggoing.

Services (PTY) Ltd With the greater emphasis on cost reduction every success in the future.

Tel: +27 11 606 0000 in many mining due toEstate theNorth dip 1 Platinum Drive, companies Longmeadow Business Modderfontein, 1645 in the gold price, a significant operational www.oryxenergies.com www.aelminingservices.com

Oryx Energies is one of Africa’s oldest and longest established independent providers of Fuel,Lubricants, LPG and and associated services, with a presence in over 20 countries across the continent.

As a supplier to the Mining Industry in Tanzania. We are proud to be a partner of Shanta Gold

www.oryxenergies.com

S H A N TA G O L D

AFRICA

ahead which will eventually see a mine come into production with an expected lifespan of 10 years.

The future potential of the mine is covered by three prospecting licences which together span approximately 92 square kilometres and three mining licenses which enclose a total area of 30 square kilometres. One licence is wholly owned by SMCL, while GL Jossue and JB Joel Limited hold a 10 percent minority interest in two of the mining licences; Shanta fully owns all three of the prospecting licenses, giving it full direction and control in this regard.

Shanta Gold’s Singida open-pit mine revealed up to 450,000 ounces of gold

Songea Mine Shanta is also in the very early stages of exploring gold deposits at its site in the w w w. s h a n t a g o l d . c o m

45

S H A N TA G O L D

‘Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations’

Ruvuma Region of southern Tanzania using three prospecting licenses covering an area of roughly 65 square kilometres.

Following airborne magnetic and radiometric surveying in 2008, it was revealed that the site at Songea displayed uranium anomalism, which was later confirmed in 2009 using scintillometry surveys which further established the uranium potential in the area. Alongside these findings, the area also contains tourmaline, sapphire, topaz, and garnet (rhodolite) as well as gem quality cordierite, although whether Shanta is seeking to develop these assets remains to be seen.

Aerial view of the Songea mine

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September 2015

AFRICA

Poised for Growth Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations. In January 2015 it carried out some additional infill drilling (totalling 2,676 metres) across nine drill holes which has increased the resource at both Bauhinia Creek and Luika and further improves confidence in the potential for underground mining at both deposits.

Last month, the company completed formal documentation for loan facilities with Investec Bank, following receipt of regulatory approval from the Bank of Tanzania. The loan facilities total $40 million, of which $20 million has been

Bauhinia Creek Pit

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47

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MANUFACTURERS OF PIPING SOLUTIONS FOR MINING APPLICATIONS

MINING APPLICATIONS PLASCO HDPE Pipes can be used for a variety of above and below ground installations in mining operations, including water transfer, treatment and recovery of mining minerals as well as slurry lines to convey suspended solid matter in quarries. HDPE Pipes are available up to 630mm PN20.

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S H A N TA G O L D

AFRICA

used to refinance an existing bank loan from FBN Bank while the rest of the balance will be used as during the implementation of the New Luika Gold Mine Life of Mine Extension Project.

The finalisation of the loan will enable the company to decrease its cost of funding and will also provide greater financial flexibility for the entirety of SMCL’s projects across the country.

A statement from the company said: “We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the company in a strong position to pursue upside potential through expansion and exploration opportunities.”

Shanta Gold is listed on London’s Alternative Investment Market (AIM) which belies that the company is not only in a position to receive funding on the world’s most successful growth market, but is also subject to world-class requirements and standards. The economy of Tanzania is heavily reliant on agriculture as a source of income and although mining only currently accounts for 3 percent of its GDP, SMCL’s current exploration efforts are set to make a significant contribution to the country’s economic diversification.

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Responsible Mining The company has an exemplary CSR programme which covers everything from how it manages and develops its employees, to w w w. s h a n t a g o l d . c o m

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S H A N TA G O L D

AFRICA

the ways in which it can reduce its impact on the environment and the communities that its mining operations come into contact with.

The company has constructed classrooms and medical facilities and has provided access to water through establishing and developing a range of local and national partnerships; it has even funded the sustainable, smallscale business initiatives. SMCL’s website captures the pride it has in its impact on the communities it operates in. The company said: “Employment of over 300 hundred local residents has also improved the disposable income in the area and is also allowing selfdevelopment within the family unit.”

Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets

‘Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets a clear precedent in an industry that receives criticism for the over-use of expat workers’

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S H A N TA G O L D

Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment

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September 2015

a clear precedent in an industry that receives criticism for the over-use of expat workers.

Shanta has stringent health and safety requirements in its mines: “Health and safety is an integral pillar of our key performance indicators used to evaluate the performance of all employees on a monthly basis. Employees are recognised for their safety awareness and performance each month as a way to encourage safe practices.� This method of integrating health and safety with employee performance not only ensures that each team

AFRICA

member is aware of its importance, but it also enables exemplary practices to be shared and celebrated across the company.

Backing up its strong framework on employee safety is a dedicated health centre for employees, manned by a fully trained doctor; the company even has its own ambulance and aircraft on site at the New Luika Gold Mine in order to ensure the fastest possible response to any incident.

The company also has a range of initiatives in place to make its practices greener and more efficient, which is realised through its environmental management program.

Reforestation has made up the bulk of its work so far, but the company is moving towards something greater: self-sufficiency. Much of this is aided via the company’s strategic patnership with Balton Tanzania; a company that provides security, networking technology, agricultural, and public health solutions.

Although still in a relatively early stage, the company already recycles and composts much of its waste generated through food consumption and is set to build on this positive momentum.

Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment.

Through its well-financed operations at the New Luika Mine, it has developed its own field-tested framework for successful future operations in its other developing projects.

Company Information INDUSTRY

Mining and Exploration HEADQUARTERS

Tanzania FOUNDED

2001 EMPLOYEES

c.300 (in Tanzania) REVENUE

ÂŁ73.82 million PRODUCTS/ SERVICES

A gold mining and exploration company, currently it is developing several new gold mines, one of which has newly discovered uranium deposits

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53

Palabora Mining Compan

How Strategic Investment Se Of Palabora And The People

Produced By: Anthony Munatswa Written By: John O’Hanlo

ny (PMC):

ecured The Future e Of The Limpopo

on 55

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

South Africa’s only producer of refined copper and Limpopo’s biggest employer, Palabora Mining Company (PMC) is in expansion mode, a task it is executing with exceptional respect for both community and ecology

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September 2015

Palabora Mining Company was incorporated in South Africa in August 1956 and was owned and managed by Rio Tinto until 2013 when it was acquired by a consortium led by the Industrial Development Corporation (IDC) of South Africa Limited and China’s Hebei Iron & Steel Group. Acting CEO Maboko Mahlaole was working at the company in the capacity of HR Director at the time of the acquisition, and has seen PMC pursuing new and encouraging strategies under its new owners.

Nobody could say that Rio Tinto and its minority partner Anglo American were not committed to the mine, but at the time of the recession, the implementation of an expansion plan to extend the mine’s life for a further 20 years was in doubt.

The high copper grades obtained from the original open pit mine, which created the ‘biggest hole in South Africa’ having been largely exhausted, and the $410 million underground mine, whose production capacity reached 30,000 tonnes of ore per day reaching the end of its life, a decision had to be made, and in November 2014 the board finally approved a $9.3 billion expansion programme to extend the mine at a deeper level.

The Lift II mine will be dug 450 metres below Lift I and will ensure a continuation of copper mining in Palabora to 2030 and beyond.

This long term vision had to encompass not only building the deep mine, but also addressing the beneficiation operations. As much as 30 percent of the headline cost will be taken up

AFRICA

Palabora Mining copper refinery

with the addition of a new processing plant.

Copper is not PMC’s only product. Though copper had always been the main revenue earner until three years ago, when it started to earn more from magnetite, an iron ore. Today a greater share of turnover still comes from magnetite. To take advantage of this the company wants to increase its capacity to process magnetite. Two years ago it was processing a little over three million tonnes per annum (tpa) of magnetite, says Mahlaole. “Our target is to increase magnetite production to ten million tpa.” In June 2015 a new magnetite plant was commissioned that will ramp production up to six and eventually ten million tpa.

Internal logistics were also constricting magnetite production, he says. “We are working on a project that we call the magnetite expansion.

“Our target is to increase magnetite production to ten million tonnes per annum” – Maboko Mahlaole, Acting CEO

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PA L A B O R A M I N I N G C O M PA N Y ( P M C )

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Month 2014

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) Two years ago our magnetite capacity was just over 3 million tpa. The target is to be able to produce up to 10 million tpa. This project is under way, in fact we just commissioned a new magnetite plant as part of the ramp up to 6 million tpa and eventually 10 million. The higher figure will be reached by optimising the logistics internally.

We have a stockpile of around 220 million tonnes of magnetite spread over a big area – currently it’s moved by tractors, and dried using outdated fan technology.” The new plant incorporates modern drying technology, and a study is taking place on how best to optimise transportation of iron ore to the railhead of Transnet, and how the latter might help to facilitate this.

Another key part of the process is the copper smelter. Being able to produce 99 percent

SUPPLIER PROFILE

AFRICA

Working underground at the Palabora Copper mine

SASOL

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w w w. p a l a b o r a . c o m

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PA L A B O R A M I N I N G C O M PA N Y ( P M C )

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Month 2014

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PA L A B O R A M I N I N G C O M PA N Y ( P M C ) pure copper anode differentiates Palabora from its regional competitors, however the old smelter is reaching the end of its useful life since its emissions no longer meet South African regulatory standards. Permission is being sought to stretch its life into next year by retrofitting it with new technology. That would allow a completely new, environmentally efficient smelting plant to be sourced from China and commissioned early in 2016. There was no appetite for investing in a new smelter under the former ownership, says Mahlaole, but Hebei did not flinch at the need to invest in this plant – another long term strategic commitment.

The mine’s new-found sustainability is a winwin, he says. I think the divestment from Rio Tinto and the investment in the mine and the smelter

SUPPLIER PROFILE

AFRICA

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PA L A B O R A M I N I N G C O M PA N Y ( P M C ) bought a new lease of life for this region. PMC has benefited from China’s policy of investment overseas, particularly in Africa. They see Palabora as a showcase for that policy, securing copper and iron ore supplies, a business success story and also a launching pad for their Africa policy. We are fortunate to be in this situation!”

Most fortunate of all in the eyes of Maboko Mahlaole is the fact that PMC will continue to be able to employ large numbers of local people, and improve life for their families.

“Unemployment in this region is over 30 percent. Fortunately at Palabora we have a training centre, accredited by the Department of Higher Learning, where we already run a lot of courses. We train fitters, boilermakers, electricians, rock breakers and other trades.

“So we have a large training footprint of our own within the business. But in the light of the expansion project, we have partnered with the contractors like Murray & Roberts and Master Drillers to put together a programme to standardise training. At the same time we brought in the community leaders and local authorities to ensure there is fairness in employment.”

Having seen the problems that can rise in large projects such as the stadium building programme for the 2010 World Cup and some of Eskom’s energy programmes, he believes it’s important not to over-fuel community expectations, while making sure that community based service providers get a fair share of the

AFRICA

RD8 Raise Bore machine being constructed on site

“We brought in the community leaders and local authorities to ensure there is fairness in employment” – Maboko Mahlaole, Acting CEO

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63

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) cake. The main contractors are encouraged to source and outsource locally, employing as many skilled people as they can rather than bringing in workers from other states or abroad.

Environmental management has always been a part of Palabora culture. “We live side by side with vulnerable fauna and flora; we need to look after that as well as the safety of our employees. For example we need to look after the Limpopo river that runs through our mine – it provides sustenance to many communities in South Africa and through into Mozambique.”

PMC has a total demand of 110MW across its site. In 2012 Palabora Copper engaged The Concentrator facility at the mining site

“If you do not pay attention to what is happening around you may not survive long as a business!”

– Maboko Mahlaole, Acting CEO

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AFRICA

the Australian energy consultant Ensight to review its energy expenditure, during which process it identified $20 million of potential savings. Three years on the exercise has really delivered. “We saved $5.3 million in energy costs, received R 23.1 million from Eskom in recognition of our performance, saved enough power for 77,400 households plus enough water to sustain 2,050 elephants for a year, and cut greenhouse gases weighing as much as 12,850 fully grown elephants!”

Continuing the analogies, his favourite one is that enough coal was saved to drive a steam train from Cape Town to Cairo and back, 17 times.

“It has gained us awards and set an example to other big businesses in the country. In our way we are trying to fight climate change and contribute towards good environmental practices,” he says.

For Maboko Mahlaole, who has been tackling employment issues for 35 years, people come first. “I am optimistic that the focus is not now solely on the individual – there is a new concern for communities. If you do not pay attention to what is happening around you may not survive long as a business!”

Perhaps that’s why PMC has seen very little in the way of industrial discontent (over a period of some turmoil in the country as a whole).

There is no migrant labour here, living in camps.

Almost all of the 2,400 employees working at Palabora live en famille within 20 kilometres of the mine, coming to work on company buses.

Company Information INDUSTRY

Copper Mining HEADQUARTERS

Limpopo, S.A. FOUNDED

2012 EMPLOYEES

2,400 REVENUE

R4 billion PRODUCTS/ SERVICES

South Africa’s large copper mine, smelter and refinery complex.

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Aust

Written by Megan Edwards, Mem

Produced

mine

mbership and Communications Manager

d by: Jeffrey Bailey

AUSTMINE

Austmine Board and exec staff

A

ustmine is the peak industry body in Australia for the mining equipment, technology and services (METS) sector and we are proud to lead such a dynamic and innovative sector. We promote the advancement and competitive positioning of Australian technology and collaboration and innovation in mining and resources. Austmine has been in existence since 1989 and 68

September 2015

has grown significantly over the past two and a half decades.

We currently have over 300 corporate member companies, made up of large OEMs, Engineering Firms and major contractors, innovative SMEs across technology, services, software and equipment and exciting start-ups. Our vision is to make Australia the true global hub for METS and continue to create opportunities for members globally.

AUSTRALIA

In 2015, Austmine conducted a national survey of the METS sector, as an update to our 2012/2013 survey which discovered METS was a $90 billion a year industry, employing over 340,000 people.

Naturally the state of the market has evolved significantly since our original survey, so in 2015 Austmine focused on how METS companies were adapting to and evolving in light of the current mining industry.

The big focus for many is currently on the customer and reinforcing existing relationships, whether with the end client (67% of companies work directly with the miners), or a partner/contractor. Others however see expansion as the key driver; new industries being targeted are oil and gas, infrastructure and renewable energy; new geographies are the top strategy for some, with the 6 most successful export regions for w w w. a u s t m i n e . c o m . a u

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AUSTMINE

Australian METS being Indonesia, USA, New Zealand, Philippines, Chile and PNG. 66% of Australian METS now export, vs. 55% in 2013.

“We are pretty proud of our METS sector in Australia and rightfully so. It is a globally focused, highly innovative, world leading sector,” said Chris Gibbs Stewart, CEO of Austmine. “The Australian Federal 70

September 2015

Government has recognised the importance of METS and this year the METS Growth Centre will be launched which will provide a platform for collaboration and bring together industry leaders to solve the big issues which the industry is facing.

This will be a very important initiative as Austmine believes that

AUSTRALIA

collaboration is the key – both from a strategic and tactical point of view. A close working relationship and open dialogue between miners and suppliers is needed to not only look at today’s issues, but to look further down the road and really understand where we will be in 10 or 20 years’ time.

“Without a doubt miners are facing unprecedented challenges, and now more than ever the METS sector is critical to the on-going sustainability of mining.”

Over the last year, Austmine has been fortunate enough to work closely through events with Rio Tinto, Gold Fields, CMOC Northparkes, Anglo American, Roy Hill, Sirius Resources, PanAust, Glencore, Peabody Energy, AngloGold Ashanti, Newcrest and more, providing our members direct access to senior decision makers within these organisations.

Innovation is one of Austmine’s core values and a fundamental value the sector needs to embrace in order to remain competitive and increase productivity in the future. 63% of companies surveyed reported that innovation was core to their business strategy, driven mostly by a need to remain competitive, but also due to a direct customer request, or a desire to improve internal efficiencies or cost management.

Austmine drives and recognises innovation through our biennial innovation awards, our themed events and webinars and our Innovation Champion profiles, amongst a range of other initiatives currently in planning stages.

Company Information INDUSTRY

Mining HEADQUARTERS

Suite 206, 80 William Street, Sydney, NSW, 2011 FOUNDED

1989 MEMBERS

300 company members PRODUCTS/ SERVICES

Mining Equipment and Technology Services (METS) industry body

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Minecorp Shifting gears

From supplying high-quality vehicle equipment to the mining sector to working with the Australian’s Defence Force, Minecorp proves it can roll with an evolving market Written by: Eric Harding

Produced by: Vince Kielty

73

MINECORP

Minecorp vehicle fleet

F

or fleet managers searching for outstanding quality, great results and full regulatory compliance, look no further than Minecorp.

The Australian leader in safe, sturdy and compliant fleet vehicle modification, Minecorp manufactures and installs fit-out solutions for all commercial fleets, while working with customers to ensure a customised solution with quality automotive accessories, components and a complete vehicle conversion that is fit for purpose when customers need it.

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A proud member of its Thailandbased parent company RMA Group, Minecorp traditionally has been heavily involved in the mining and resource sector. A world leader in design, manufacture and installation of light and heavy duty vehicles, purpose-built modified vehicles and fleet solutions, RMA Group has supplied over 45,000 vehicles to a diverse global customer base including major mining sites, nongovernmental orgainisations (NGOs), the United States government as well as corporate clients.

As one of Australia’s top suppliers of fleet applications, Minecorp is

AUSTRALIA

Minecorp vehicle yard

firmly entrenched as RMA’s only company in the Australian automotive division, and creates a mutually beneficial business environment and the highest possible standards of industry knowledge and service delivery.

With its Australian headquarters located in Brisbane, along with a satellite facility in Perth that conducts vehicle modifications and warehousing in the west Australian market, Minecorp has invested heavily in research and development (R&D) in recent years.

Today, Minecorp caters to much more than just the mining industry. The company has expanded into other commercial fleet markets such as service and utilities vehicles, local government, emergency services and military.

“We promote it pretty heavily externally in terms of our products providing safety for our clients, and we back that up pretty heavily with internal safety systems” – Angus McIntyre, Minecorp general manager

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75

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MINECORP Adjusting to the market Most of the company’s expansion is due to the recent downturn of the mining sector, but as all the top companies do, Minecorp has adjusted on the fly and branched out into other industries.

The fall of the industry was a blow to the company’s primary revenue stream, but Minecorp General Manager Angus McIntyre acknowledged the company has always had aspirations of diversifying into other sectors.

“The downturn of the mining sector has both forced us and allowed us to start that

AUSTRALIA

diversification process, which is a good thing long term,” said McIntyre. “But it certainly has been tough and has had a big affect on revenue and turnover.”

Making the transition has had many obstacles, such as ensuring its products are the right fit for these new industries.

“It’s been a challenge in changing that mindset. At the end of the day, there are sectors out there that we probably don’t fit into—that are completely cost-driven, or don’t consider safety and functionality as important as other factors.

Minecorp Manufacturing plant w w w. M i n e c o r p . c o m . a u

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C O M PA N Y N A M E

Minecorp employees, Sepember 2014

“The challenge is proving to some of these newer sectors that the product and the offering that we provide still can fit the purpose of their industry,” said McIntyre. “Their mindset is that we’re mining and therefore probably too expensive for their requirements. Part of the diversification process has been to make sure we’ve got fit-for-purpose products for these other industries as well.”

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Branching out Minecorp successfully completed a project for the Australian Defence Force last year, which was the company’s first direct supply project for the military organisation.

Minecorp has also turned its focus to commercial construction and civil infrastructure.

Making these contracts even more impressive is how difficult doing business in Australia has been

SECTOR

compared to other parts of the world.

“For the industry as a whole, the Australian economy is just a tough operating environment, and probably has been for a good 2-3 years,” said McIntyre. “Some of our strengths in terms of what might be different from overseas markets is Australian corporations historically put safety at the forefront of business operations That seems to have taken a backward step in the last few years.”

“Cost seems to be the main driver in a lot of less developed markets,” McIntyre continued. “But at Minecorp, we like to think of ourselves as a leader w w w. M i n e c o r p . c o m . a u

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MINECORP

Angus McIntyre – General Manager

in the industry when it comes to functional, safe operational fleet vehicles. We like to offer good value for money, but quality and functionality is very important in terms of our client base and what we offer.”

“We promote it pretty heavily externally in terms of our products providing safety for our clients, and we back that up pretty heavily with internal safety systems,” said McIntyre. “We spend quite a bit of time promoting that with the staff and making sure we have safe work In-house safety and quality practices in place. We keep that in As important as functionality is for mind as we’re delivering projects to Minecorp, the company’s main goal is clients.” making safety the priority. As McIntyre Minecorp values putting its described, safety is at the forefront of employees in the best position to everything Minecorp does. succeed. The company provides 80

September 2015

AUSTRALIA

comprehensive induction programs, as well rehabilitation opportunities for non-company employees who may struggle returning to the workforce whether due to an injury or another incident in their lives.

A very integrated business, Minecorp has its own in-house research and development team while also practicing CNC technology in its manufacturing process.

Further expansion In the future, Minecorp plans to continue expanding into other sectors, as well as building on its core client base. A large part of that process is its R&D capability and technical knowledge when it comes to vehicle functionality and vehicle safety, as some of the company’s long-term aspirations revolve around emergency services and the military.

In addition, branching out into other sectors such as the agriculture industry may also be on the horizon, according to McIntyre.

“One of the benefits we offer clients is a customised package our R&D team can put together that helps meet operational requirements,” McIntyre said. “A lot of what we’re doing in terms of marketing is trying to promote this customisation, and utilise some of the examples we’ve created over the last two years.”

In today’s ever-changing culture, it’s good to do business with a company that embraces the transition as adeptly as Minecorp.

Company Information INDUSTRY

Mining HEADQUARTERS

37 Murdoch Circuit Acacia Ridge QLD, Australia, 4110 FOUNDED

2006 EMPLOYEES

60 REVENUE

$15 million AUD

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ADVANTAGE in the Extraction of Precious Metals Written by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations at WDM Group-LATAM Intervewee: Guillermo Adrian, CEO for Primero Compa単ia Minera

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In less than a decade, Primero’s mining activities in North America delivered superior quality, standing out from its competition and producing high revenue

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V.

M

ala Noche Resources was conceived in 2007 as a prospecting company in Mexican territory. Three years later and after the acquisition of the San Dimas mine, in the State of Durango, the venture’s commercial name became Primero Mining Corp.

The project Grey Fox

In 2010 the company became public, as its stocks entered NYSE, and soon after these were also traded at the Toronto Stock Exchange.

During the last four years, Primero has sustained growth both organically and through acquisitions, as it happened with the purchase of Cerro del Gallo mine in the State of Guanajuato, and expanding its operations into Canada, in Black Fox mine, located in Timmins, Ontario.

is currently under exploration and construction at Cerro del Gallo.

Primero currently holds a reputation as one of the main precious metal producers in North America. And even with setbacks, such as a delay from the Mexican government to grant authorization to export silver, the company maintains its projected production for the rest of 2015: · Gold production: 220,000 oz. to 240,000 oz. · Silver production: 6.5 million oz. to 7.5 milion oz.

“We expect to be granted our silver exporting license soon enough. It’s not like we have lost any

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silver, but this means we are experiencing a delay in selling, also,” expressed Guillermo Adrian, CEO of Primero Mining Corp. Adrian has a 25-year experience in the mining industry; his leadership at the forefront of Primero has been instrumental for the company when it went from a junior enterprise to become a mid-level company.

Operations in Mexico and Canada Prime Mining Corp. prospecting and mining operations are based in three locations: 1. San Dimas mine: it contains some of Mexico’s most fruitful gold and silver deposits. The quality of this mine’s extractions is first class. San Dimas is an underground mine which relies in mechanical procedures for its operations.

Key People

Guillermo Adrian CEO for Primero Compañia Minera

Venezuela-born Guillermo Adrian graduated from Simon Bolivar University (in Caracas), where he graduated as Metallurgical Engineer. Adrian’s experience spans for more than 25 years in aluminum and gold extraction in different companies in the continent. He is currently the CEO for Primero Mining Corp., a position he holds since 2013.

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C O M PA N Y N A M E

Cutting-edge machinery for exploration

2. Black Fox complex: Canada’s richest gold deposits are located in this mine, near Timmins, Ontario. With its restructuring process finally over by 2010, this site is fit for both surface and underground mining. Black Fox provides a repair shop for heavy machinery, a laboratory, corporate offices, one water-extraction pump to combat fires and a spare building.

Inside the plant

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3. Cerro del Gallo project: 69.2 percent of Cerro del Gallo belongs to Cerro Resources NL since May 2013, the rest (30.8 percent) belongs to Goldcorp since December of that same year.

After delivering a solution to permit issues in 2015, the project is ready for development and surface extraction of copper, gold and silver.

SECTOR

Every miner is properly trained in safety measures

Also, Primero is engaged in prospecting projects in the Ventanas mining district, south of San Dimas; and in the Grey Fox gold prospecting project within the Black Fox complex.

Mexico’s Competitiveness The San Dimas mine, managed by Primero, is one of Mexico’s mining landmarks. This Sierra Madre Occidental deposit is located between the states of Durango and Sinaloa. It was founded more than 300 years ago, and it maintains a high productivity level under current management.

“Our productivity is a distinguishing factor, since we’ve been successful at increasing

“We are committed to become a mid-level company in the short term” – Guillermo Adrian, CEO for Primero Compañia Minera

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V.

extractions even with this mine’s narrow veins,” Adrian said.

San Dimas produces a daily average of 3,000 tons, with a monthly drifting of 1.24 miles (well above any similar sector’s parameters). To explain this, Adrian compared two of their projects: “The same developments that take a year for us to complete in the Canadian project, take a month around here,” the executive added about the 435 miles of regularly explored tunnels at San Dimas.

Taking the steps from being a junior enterprise to a mid-level company

Human Resource Management Primero is committed to improving the

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inhabitants’ quality of life at Tayoltita, Durango.

The municipality’s conditions are below nationwide standards for wellbeing; this is why the mining company reaches out to help in providing its population’s access to education and other resources to improve socially and economically.

Primero’s academic support consists from basic literacy lessons to scholarships for postgraduate studies, meaning its staff’s development is not an afterthought for the company. “Some of our managers were machinery operators at one point, but their effort in obtaining an education paid off; Jose Varelas, our mine manager, started as a drilling operator in Primero,” Adrian shared.

High-level procedures

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Safe. Reliable. Robust.

Servicing Mexico for more than 20 years.

Joy is a trademark of Joy Global Inc. or one of its affiliates. Š 2015 Joy Global Inc. or one of its affiliates.

www.minerodiesel.com.mx

L AT I N A M E R I C A

Primero has also displayed efforts to bring the gender gap closer by establishing integration programs, and afterwards developing technical training programs for Tayoltita’s housewives.

Many female workers started also as drilling operators and earned promotions into higher positions such as mine planning. “Members of our female staff could continue with their education in programs we made available for them and once hired by Primero they could move upwards into better positions,” said the CEO. Regarding safety, Primero has improved yearly in accident prevention as a result of providing its personnel of proper training in safety measures and operation of newer, safer equipment.

“Reducing accidents in 80 percent is no satisfactory feat for us; we keep striving to achieve improvements in this area not only through the latest technology, but also by educating and directing our staff toward a workplace safety culture,” Adrian stressed.

Commitment to the Environment Primero’s efficient tailing disposal management is optimized by a filtering system able to eliminate any trace of humidity; this process forms a dry mass that can be compacted up to 90 percent.

“Without our workforce, collaborators and employees, the mine would not exist. They are our main concern not just in terms of safety, wellbeing and social programs, but also in creating a pleasant working environment” – Guillermo Adrian, CEO for Primero Compañia Minera

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P R I M E R O E M P R E S A M I N E R A , S . A . D E C . V. Compared to other companies in the sector, Primero Mining’s cyanide emissions are well below average due to purifying procedures able to eliminate cyanide almost in its entirety, with help from sunlight to eradicate cyanide from the ground. “This is a state of the art procedure for waste disposal in gold extraction, creating a distinguishing factor in our processes,� the CEO added.

Top-level procedures

L AT I N A M E R I C A

Primero is supported by Amec Foster Wheeler in the mining company’s compliance of environmentally-friendly procedures; as the British company performs quarterly inspections of Primero’s deposits.

Projections: 2016 and the Next Five Years The San Dimas mine will be subject to a 62-mile per year exploration program. Cerro del Gallo’s facility will expand to make room for their leaching processes.The Ventanas mining complex, 12 miles from San Dimas, is still in exploration stages.

Company Information NAME

Primero Empresa Minera, S.A. De C.V. INDUSTRY

Mining HEADQUARTERS

Tayoltita, Durango, Mexico FOUNDED

“We are committed to become a mid-level company in the short term,” stressed Adrian.

To achieve this goal, Primero is in search of new properties for exploration and prospecting, providing existing operations of means to double current production, bringing organic growth to the corporation. “We are also on the lookout for possible opportunities such as acquisitions, mergers and joint ventures,” Adrian stated.

2007 EMPLOYEES

1.200 REVENUE

USD $275 million WEBSITE

www.primeromining.com

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FEATURED IN GLOBA TANTALUM EXTRAC

AMG Mineração develops a wide range of produc industries and complementary markets.

Written by: Flávia Brancato | Produced by: Taybele Piven

AL ACTION

cts serving various

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AMG MINERAÇÃO

Mining

T

hrough two operating units, AMG Mining concentrates on values directed at security, transparency, innovation, mutual respect and focus on results. That was how in 2012 the company was able to reach its 100-year anniversary. Today, the group is featured nationally and internationally as a certified and sustainable source of tantalum extraction, high-quality aluminum alloys, tantalum oxide and niobium, and other products.

The products developed at AMG in Brazil make up a line that caters to various industries, such as aluminum, automotive, electronics, aeronautics, aerospace, special tools, ceramics, glass and energy. It employs nearly 500 people directly and close to 300 indirectly.

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Production In Volta Grande mine, in Minas Gerais state, the main product is tantalum concentrate, which is a rare metal considered to be critical by the UN. Through mining and processing of pegmatite, they are also produce cassiterite ore, which upon casting produces tin ingots, as well as potassium feldspar, obtained from waste.

“We are developing a new sub-product from lithium minerals in the tailings, which should make the company’s product portfolio by 2017,” said

“We are developing a new sub-product from lithium minerals in the tailings, which should make the company’s product portfolio by 2017” – Fabiano Costa, president of AMG Mining

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Tantalum

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BRAZIL

Fabiano Costa, president of AMG Mining.

AMG Brazil produces tantalum and niobium oxides by chemical process, a metallurgical transformation unit, aluminum special alloys, and operates a hydroelectric power plant.

The ability to reinvent itself following the market demand for more competitiveness, innovation and quality is an important trait that distinguishes AMG. The production of feldspar makes a big difference as well. The technological development used in feldspar processing plant allows to significantly reduce contaminants contained in the product providing very light ceramic with low porosity. “Adding aggregated value to their products, AMG successfully entered the domestic market of ceramics and glass providing feldspar produced in Nazareno mine, ensuring profitability and sustainability of mine,� he said.

Feldspar

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Plant II - Tantalum processing

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Quality AMG Mining has stood out on the world stage as a provider of high quality, steadily produced tantalum concentrate, with a responsible attitude concerning the environment and the communities around them.

“Both the mine and the plant in São João del Rei are currently considered a benchmark in operational efficiency, innovation and environmental responsibility by the international market,” said Costa.

Almost 100% of production goes to international markets, especially in Europe, USA and China. “AMG is a leading producer of special alloys of aluminum and altabs. We were able to establish different types of products, including alloys used in the production of wheels, windows, electrical cables, aluminum cans, plates, coaxial cables, tubes, rivets, zippers and engineering products with specific mechanical properties,” said Costa.

Sustainable development In its operational strategy, the company has created several tools within a model called the Sustainable AMG, where improvement projects are developed and enable the continued use of tools like 5S, Six Sigma, TPM and Continuous Improvement.

Within the AMG sustainable program, each manager is responsible for part of the project and has well-defined goals. The company also

Planta I, Tantalum processing

TiBAl, Grain refiner

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AMG MINERAÇÃO

Chemical composition analysis

created the technical services division, which is responsible for the overall quality management and process improvement.

“We encourage our managers to practice safety, and care for occupational health and environmental issues. Each manager personally performs field inspections and reports deviations. We are currently implementing behavioral audits and we believe that the results will be very positive. There has been 600 days with no reported accidents,” said the president.

Future Focusing on growth, AMG Mining’s plans aim at critical new markets, as well at increasing production capacity. A few years ago Processing Plant II got an upgrade, which elevated production by 20%. “We are preparing to serve new markets and strengthen the position where we already operate, with 102

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Company Information NAME

AMG Mineração and AMG Brasil INDUSTRY

Chemical, Metallurgy, Mining HEADQUARTERS

Minas Gerais - Brazil E S TA B L I S H E D

1912 - Company 1945 - Mining

investment strategies of about USD $35 million over the next five years,” said the president.

When it comes to the country’s economic and social volatility, Costa is conclusive.

“Differentiation and innovation must be part of our day-to-day activities. The commitments to treat the environment sustainably and develop surrounding communities where we operate are things that need to be part of the routine. Dealing with all of these variables in a systemic way, with a skilled and motivated staff, is the key to overcome hurdles and maintain the company’s success journey. “

EMPLOYEES

500

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