Page 1

H ROBOTICS FOUNDER DR. PIPPA MALMGREN ON DRONES IN MINING

F E B R U A R Y 2 0 19

www.miningglobal.com

A TRANSFORMATION JOURNEY CEO Brett Richards on redefining Africa’s premier gold mining company

TOP 10

Operational excellence through digital transformation

RISKS TO LOOK OUT FOR IN 2019


IF YOU LIKE US EDITOR IN CHIEF

Dan Brightmore.. . . . . . . . . . . . MANAGING EDITORS

, FOLLOW US!!

Visit the miningglobal.com website and sign up to receive exclusive access to one of the world’s fastest growing business news platforms.

Andrew Woods. . . . . . . . . . . . . . Olivia Minnock. . . . . . . . . . . . . . . CREATIVE DIRECTOR

Daniel Crawford. . . . . . . . . . . . CREATIVE TEAM

Frazer Jones.. . . . . . . . . . . . . . . . . . . . Lucie Miller. . . . . . . . . . . . . . . . . . . . . . Hollie Crofts–Morris.. . . . . Erin Hancox.. . . . . . . . . . . . . . . . . . . . Alicia Lolotte. . . . . . . . . . . . . . . . . . . PRODUCTION DIRECTOR

Georgia Allen. . . . . . . . . . . . . . . . . . PRODUCTION EXECUTIVE

Daniela Kianickova. . . . . . DIGITAL VIDEO DIRECTOR

04

CLICK NOW TO SUBSCRIBE FOR FREE

Josh Trett. . . . . . . . . . . . . . . . . . . . . . . . . . . DIGITAL VIDEO PRODUCER

Emily Amos.. . . . . . . . . . . . . . . . . . . . . SOCIAL MEDIA MANAGER

Callum Rivett. . . . . . . . . . . . . . . . . . PROJECT DIRECTORS

Richard Deane.. . . . . . . . . . . . . . . OPERATIONS DIRECTOR

Alex Barron. . . . . . . . . . . . . . . . . . . . . . GROUP MANAGING DIRECTOR

James Pepper. . . . . . . . . . . . . . . . . . CHIEF OPERATIONS OFFICER

Andy Turner.. . . . . . . . . . . . . . . . . . .

PRESS PLAY! WHEN YOU SEE THE PLAY BUTTON ICON, CLICK TO WATCH OUR VIDEO CONTENT

PRESIDENT & CEO

Glen White. . . . . . . . . . . . . . . . . . . . . . .

Get Connected! Wherever you see these icons in the magazine click to be directly connected via social media

PUBLISHED BY

Click the home icon (when visible at top right of page) to return to contents


WELCOME

W

elcome to the February issue of Mining Global magazine!

In our first issue of 2019 we profile Banro Corporation and its efforts to rehabilitate its fortunes by redefining operations on a quest to once more take its place among Africa’s premier gold mining companies. We also hear from Infinity Lithium and learn how the Australian junior is poised to ride the wave of ‘white gold’. As the EV revolution takes hold it aims to contribute towards the battery metals supply chain in Europe with its Spain-based San Jose Project. With the mining sector gearing up to meet the challenge of Industry 4.0 we spoke with H Robotics Founder Dr Pippa Malmgren. Her mantra? ‘Tools not toys’. We learn how HiSight - a ‘modular, robotic meta-platform in the sky’ - is more than just a drone

and can empower the mining industry in its push for digital transformation. Allied to this theme, we hear from mine planning and optimisation expert Dr Kash Sirinanda. He argues that for mining to successfully evolve over the next decade it will involve transforming the industry into a network of best-inclass, sustainable, advanced digital competency companies. With the sector navigating this evolution, and the challenges of an upswing, Mining Global analyses the annual EY report highlighting the 10 biggest risks to the mining and metals industry for 2019. Enjoy the issue!

Daniel Brightmore Editor daniel.brightmore@bizclikmedia.com

w w w. m i n i n g g l o b a l . c o m

05


CONTENTS

A journey of transformation through rehabilitation

12

TOOLS NOT TOYS:

How H Robotics’ is disrupting the mining sector with its aerial drone HiSight

30


44

72

I N FI N IT Y LITH I U M C O R P O R ATI O N

TO INFINITY AND BEYOND?

Top 10 risks to the Mining industry

60 88 Events

THE NEW DAWN OF MINING


CONTENTS

96 SSR Mining


114 Swedish Mining Automation Group


Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

CLICK TO SUBSCRIBE FOR FREE

w w w.bu si nessch ief.com


12

FEBRUARY 2019


CANADA

A journey of transformation through rehabilitation WRIT TEN BY

DA LE BENTON 13

PRODUCED BY

RICHARD DE ANE

w w w.mi ni nggl o b a l. com


B A N R O C O R P O R AT I O N

Brett Richards, Chairman and CEO of Banro Corporation, talks through the challenge of re-establishing the company as a leader following bankruptcy and distress

F

or more than 20 years, Banro Corporation Limited had established a firm foothold as one of Africa’s premier gold mining

companies. Situated in the Democratic Republic of the Congo (DRC), Banro has the largest African land 14

package for an operating gold mining company and has the only large-scale industrialised mining operation in South Kivu and Maniema. With more than 8Moz of Global Resources in the DRC it was once the largest gold mining company in the country from 2006 to 2014. Alongside its two operating mines and a number of mining licences, Banro also has 17 additional exploration licences and a number of early stage exploration projects. Banro’s story seemed to go from success to success, but in 2017 the company suffered from a combination of security and community issues and went into financial distress. By November FEBRUARY 2019


CANADA

15

w w w.mi ni nggl o b a l. com


ENGEN FOR A HARDWORKING IND

We understand that the African mining conditions can be harsh. Our range of lubricants are tested under ext ensuring that your equipment runs smoother, for longer. Our distribution network accross the continent ensu services are always on hand.

OUR CORE BUSINESS

Engen DRC is a subsidiary company of Engen Petroleum Limited, an Africa company focusing on the refining of crude oil, marketing of primary refined products and the provision of convenience services via an extensive retai

PRODUCTS AND SERVICES • Fuels: Petrol; Diesel; Kerosene • Special Products including environmentally friendly degreaser • Aviation: Jet A-1 • Fuel oil and Bitumen • High quality lubricants: Automotive; Hydraulic; Industrial

• Fleet Management: One Card • Mining Solutions for Storage, Fuel Management, Waste Oil and Lubri

DIRECT CONTACT Charles Nikobasa Managing Director T +243 81 700 55 00 M +243 81 276 75 07 E charles.nikobasa@engen.cd

Marie-Claire Mubanga Commercial Manager T +243 81 700 55 90 M +243 99 99 32 230 E marie-claire.mubanga@engen.cd


DUSTRY

treme conditions, ures that our products and

a-based energy d petroleum il network.

l icants.

Engen is a member of the PETRONAS group

ABOUT ENGEN IN THE DRC The Engen brand is in the DRC from 2007. ENGEN DRC is Number 1 among the majors and owns 65 service stations through the country.

CORPORATE SOCIAL INVESTMENT • Financing education for underprivileged students in many schools • Platinum Member in the Health Smile project. • Sponsorship to the Center of Excellence of Banro Mining Twangiza and Namoya

• Medical and sport sponsorship

With us you are Number One


B A N R O C O R P O R AT I O N

18

2017, it had gone through a CCAA

Brett Richards, Chairman and Chief

(Canada) Bankruptcy proceeding.

Executive Officer, is best placed to

Fast forward to early 2018 and the

spearhead this transformation journey.

company emerged from its bankruptcy

“I’ve worked in Africa for the past eight

process with a financial restructuring and

years or so with private equity firms

Banro embarked on a major rehabilitation

looking at the rehabilitation of assets

project to re-establish the company as

to deliver value. Banro had and still has

a premier central Africa gold mining

a number of operating challenges and

company. Having worked in the global

has been under capitalised due to the

mining industry for over 20 years, with

bankruptcy,” he says. “It’s also one of

significant roles at Kinross Gold and

the toughest jurisdictions in the world

a founding member of Katanga Mining,

and so I’ve had to draw upon all of my

FEBRUARY 2019


CANADA

19

skills, whether it’s geopolitical or socio-

of legacy deficiencies in order to take

economic, to overcome the challenges

the necessary steps in order to stabilise

that we are facing.”

the business. When Richards entered

Banro’s transformation is one of two

the business, Banro was faced with

parts. First, Richards and the company

fresh security challenges that he believes

will look to recapitalise the company over

“paralysed” the business temporarily.

the next year in order to reposition the

Step one of the journey was to re-estab-

company to where its history and land

lish community relationships. “It’s our

package should place its cost structure

obligation as a company to provide a safe

and operating environment amongst its

workplace for our people and a safe

peers. This first phase of rehabilitation

workplace for our whole community

is one of trying to understand a number

to live in,” he says. “That’s achieved w w w.mi ni nggl o b a l. com


GBE DRC, sarl.

Catering to the DRC's fuel needs since 2006

General Business Entreprises (GBE) is a Congolese owned company. Since 2006, we have been supplying petroleum products (Diesel, Gasoline, Jet A1 & LPG); as well as lubricants and greases for vehicles and heavy machinery to clients throughout the Democratic Republic of Congo. Through our fuel supply channel, the oil & gas products supplied by GBE are directly sourced from the Arab Gulf through the Tanzanian Bulk Procurement System. GBE strives to insure its operations are fully compliant with HSSEQ regulations and with the local laws of countries in which we operate. Our commitment to customer satisfaction coupled with the high quality of our service delivery has allowed us to become one of the leading suppliers in the DRC. Through our sister company “GBE Logistics�, we have invested in transport logistics by acquiring robust trucks in order to support fuel delivery to BANRO/Namoya Mining SA. Our clients include Locals, NGOs as well as international companies such as BANRO Corporation.

Our commitment to customer satisfaction coupled with the high quality of our service delivery has allowed us to become one of the leading suppliers in the DRC.

Contact us: E. contact@gbe.cd www.gbe.cd

Phone: +243 81 788 8031 | +243 81 313 2043 Office: 56, Blvd Kanyamuhanga, Goma-NK


CANADA

through a security discipline whereby you have to proactively engage with the communities and the local authorities and government to mitigate those potential situations.” “Communication in our Namoya and Twangiza regions, all the way down to the traditional leaders, to the various key people in the provinces and communities, all the way up to our security partners, is vital to establishing the platform of a safe environment.” Richards points to a breakdown in trust in the run up to the bankruptcy and as

“It’s our obligation as a company to provide a safe workplace for our people and a safe workplace for our whole community to live in” — Brett Richards, Chairman and CEO of Banro Corporation

the company began to wind down, the communities could no longer see the benefit of having Banro operating in the area again. “We had to go right back to the basics to rebuild all of that,” he says. “I think we’ve really done a fantastic job on achieving that.” The results speak for themselves. Banro has now established a platform that engages all parts of the stakeholder ecosystem that considers safety, security and community engagement perspectives in order to operate successfully and regrow the company in the right direction. These “boilerplate” problems have now been addressed w w w.mi ni nggl o b a l. com

21


B A N R O C O R P O R AT I O N

and allow the company to look a little deeper at the financial and technical deficiencies that also played a key role in the bankruptcy. Richards says that now the company has identified what it’s going to take to rehabilitate the company, the task is now to execute on the various technical and operational challenges the company needs to make it competitive again. “I think the victories we’ve had over the last year addressed those challenges and now we have given ourselves the platform to be successful. We’ve identified the pathway to success,” he says. “Now it’s time to act and 22

find the capital to move forward and start the next stage of this journey.” The next stage is the size and scale of the opportunity Banro has at its disposal through its large land package. The long-term plan is to grow the company beyond its two operating mines and key to unlocking this is through attracting investors. With all that Banro has gone through, the level of risk associated with investing in the company is understandably high, but Richards believes that the successes it has achieved to date have already begun to change that conversation. “It says FEBRUARY 2019


CANADA

23

to them that Banro have done it and they’ve been successful in doing it while operating in the most challenging jurisdiction in the most challenging country,” he says. “But it’s not just those challenges. The investment appetite will come from the size and scale of what Banro has in the ground. It’s not just what we have now, it’s what we have over the next five years with our exploration package and our goals. The potential we have in Africa is second to none.” As a company that’s been operating successfully for more than 20 years, Banro has amassed a strong portfolio of suppliers w w w.mi ni nggl o b a l. com


B A N R O C O R P O R AT I O N

24

“I think the victories we’ve had over the last year represent those challenges and now we have given ourselves the platform to be successful. We’ve identified the pathway to success” — Brett Richards, Chairman and CEO of Banro Corporation

FEBRUARY 2019


CANADA

25

w w w.mi ni nggl o b a l. com


LOGISTICS. SIMPLIFIED. ROAD FREIGHT

MATERIAL HANDLING & EQUIPMENT RENTAL

CLEARING & FORWARDING

WAREHOUSING & MATERIAL MANAGEMENT

OUR VISION

OUR MISSION

To be known as the company that makes Africa work better.

To enable our customers to work better

CORE VALUES

VIST OUR WEBSITE

Customer Focus | Continual Improvement | Humility | Safety | Honesty

CONTACT US

A WORLDWIDE LEADER IN PROCUREMENT SOLUTIONS With more than fifteen years experience in Africa, as well as having an excellent relationship with local and international suppliers, Total Mining will deliver the correct equipment and supplies safely and within the correct time frame to site, allowing our customers peace of mind and to concentrate on their core business. Whether it’s mining, processing, building exploration equipment or related parts, Total Mining meets clients needs according to their operational requirements.

24 Buwbes Street, Sebenza, Edenvale, Johannesburg

• • • • • • • • • • •

Processing Drilling Engineering Construction Earthmoving Crockery Linen Electrical Ironmongery Lifting PPe

• • • • •

Instrumentation Filtration Security Building Catering Equipment • Tooling Equipment • School Supplies • Office Equipment

VISIT OUR SITE

• Automotive Spares • General Consumables • Timber • Tools • Roof Sheeting • Lab • Laundry • General Consumables

CONTACT US


CANADA

and partners that have been integral to establishing its position on the mining map. When the company hit financial distress, these suppliers could have been forgiving for parting ways and protecting their own investments, but Banro has been blessed with extremely loyal partners that continue to support the business through thick and thin. “They know it’s difficult but one thing that I said when I came in was, ‘we are going to pay you, we are not going to run away from our obligations; we will

27

work this out and establish a plan to move forward together’,” says Richards. “I can’t speak highly enough about the fact that Banro is still operating today is probably because of our suppliers, and because they allowed us the liberty to work through some challenging times at their expense. I understand that, and I get it and I appreciate it, and I tell them that every chance I get.” One such partner has been Engen, one of Africa’s leading petroleum oil providers and Banro’s primary fuel supplier since the company was founded. Richards believes that Engen, as with

w w w.mi ni nggl o b a l. com


B A N R O C O R P O R AT I O N

28

FEBRUARY 2019


CANADA

“I can’t speak highly enough about the fact that Banro is still operating today is probably because of our suppliers, and because they allowed us the liberty to work through some challenging times at their expense” — Brett Richards, Chairman and CEO of Banro Corporation 29

all of the company’s suppliers, have

and stakeholder engagement. The

continuously worked with Banro to make

future is bright for Banro and the

the “elasticity in the business work”.

company has identified key targets

“They have been stalwarts in working

over the next two years that will firmly

with us,” he says. “It’s a testament to

reposition it as the premier African

their values. They are in this with Banro

gold mining company.

as a partner and they’re in with us for the long run.” As Banro looks to the future, it can do so through a sound commitment to getting the basics right from operational level right through the management w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

30

TOOLS NOT TOYS:

How H Robotics is disrupting the mining sector with its aerial drone HiSight FEBRUARY 2019


31

M IN ING G LOBAL SPOKE WITH H ROBOTIC S FO U N DER DR PIPPA MALM G REN TO H E AR HOW H ISIG HT — A ‘ MOD U L AR, ROBOTIC M ETA-PL ATFORM IN TH E SK Y ’ — IS MORE THAN J UST A DRON E. IT CAN EM POWER TH E M IN ING IN D USTRY IN ITS PUSH FOR DIG ITAL TR AN SFORMATION WRITTEN BY

DAN BRIGHT MORE

w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

H

Robotics manufactures HiSight an ‘aerial robotic tool’, otherwise known as a drone. It has the potential

to be used for many tasks and purposes on mining sites. However, most drones employed across sectors today are fundamentally souped-up toys originally designed for a retail consumer - very few are actually designed for industrial paths. With the deployment of bespoke drones in mining very much in its infancy, H Robotics Founder, Dr Pippa Malmgren, maintains that comparing HiSight to most

32

drones on the market is like comparing a go-kart to a Land Rover: “We make an industrial tool - it’s rugged, easy to fly, durable in extreme weather conditions, and, at this stage, the only industrial drone in the world that lands and takes off from water - vital at oil, gas and mining sites.” Malmgren explains HiSight is an open platform in the sky that can store data collected securely in the H Robotics FlightCloud: “You can attach devices such as sensors and cameras to HiSight in a stable position to fly over your assets. But most drones don’t work that way, everything’s embedded inside, so you have to work with what they give you.” FEBRUARY 2019


“ WE MAKE AN IN D USTRIAL TOOL — IT’S RU GG ED, E ASY TO FLY, D U R AB LE IN E X TREM E WE ATH ER CON DITION S, AN D, AT TH IS STAG E, TH E ON LY IN D USTRIAL DRON E IN TH E WORLD THAT L AN DS AN D TAKES OFF FROM WATER — VITAL AT OIL, GAS AN D M IN ING SITES” — Dr Pippa Malmgren, Founder, H Robotics 33

HiSight is fitted with industrial grade

on production targets rather than relying

lights and a transducer which emits

on less accurate quarterly manual

a high pitch alert which can even aid

measurements. Malmgren notes most

security on mining sites prone to theft

mines across the globe use various

during downtime. “It’s like having

toxic fluids to blast through rock which

a scarecrow in the sky,” she jokes.

end up in a tailings dam. This needs to

HiSight can also be deployed to

be monitored in order to prevent it from

provide precise volume metric analysis

overflowing which would cause environ-

of aggregate, vital for accurate valua-

mental damage. “To measure this at the

tions of mining sites. An African mining

African mine, they would often send

client of H Robotics has utilised this

out a boat with sonar onto the lake of

system, describing it as a “game-chang-

toxic runoff,” says Malmgren. But with

er” enabling them to keep a closer eye

the threat of hull erosion and attack by w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

crocodiles capable of resisting the toxic

but they don’t currently have.” She

lake, it’s a dangerous business that

argues the industry has a two-dimen-

required a solution. “We’ve created a

sional approach to drones and been too

sonar device for our drone that captures

focused on what they can deliver rather

not only the boat volume, but shows the

than what they are really good at - gather-

shape of the basin, telling you whether

ing data. “When our drone flies over-

liners are coming unstuck - which could

head it uploads the data automatically.

be a huge source of environmental

Every single flight is not only tracked

damage and massive cost to a mining

and logged, but a video is automatically

company,” she says. “We’ve created

uploaded into our FlightCloud providing

something every mine in the world needs,

a permanent visual record.”

34

FEBRUARY 2019


Malmgren highlights differing

you can’t afford the downtime while

philosophies in the drone industry.

you wait for a new device to be sent.

“China’s approach is build-to-break. It’s

At H Robotics, we’ll replace everything,

a production line and they want you to

no questions asked, as long as it was

come back and upgrade… We decided

operated autonomously, full replace-

to build something that’s almost unbreak-

ment at no cost. This is a total change

able, and it’s modular. If you do manage

in how the industry supplies hardware.”

to break an arm, for example, you simply

Malmgren notes the American philoso-

remove it, snap a new one on, and you’re

phy is built around the only person

back at work. And that matters because

capable of flying a drone being a highly

when you’re running a mining operation

qualified military pilot. “The industry is

E X E C U T I V E P R OF IL E

35

Dr Pippa Malmgren gained her doctorate from the London School of Economics and previously worked at the Whitehouse as an economic advisor to the Bush administration. She founded DRPM Group to help companies, investors and policymakers better understand how risk and prices will move across the economic landscape. Malmgren aims to connect the dots, bringing together insights about markets, politics, policy and geopolitics that signal important and investable trends. She has an especially strong view on the importance of manufacturing in modern economies and is also a co-founder of H Robotics, now part of DRPM Group, a manufacturing firm in the UK that builds non-weaponised drones for industrial use. Her recently published best-selling book ‘The Leadership Lab - Understanding Leadership in the 21st Century’ was recognised by the FT as its Business Book of the Month October 2018.

w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

“ H U MAN S MAKE ERRORS, SO WE’RE RED U CING THOSE BY REMOVING H U MAN S FROM TH E FLYING PROCES S B UT E XPON ENTIALLY INCRE ASING TH E KNOWLEDG E AN D U N DERSTAN DING OF WHAT’S HAPPEN ING” — Dr Pippa Malmgren, Founder, H Robotics 36

dominated by a business model where

H Robotics maintain they have built

companies hire pilots at a cost of thous-

a tool, not a toy, that even the most

ands of dollars per day. But here’s the

junior person can easily deploy without

problem… They tend to fly manually,

having to be a professional pilot thanks

which means none of the data is

to the ability to set different flight paths

comparable over time - hugely important

for autonomous use across a mining

when you’re dealing with physical sites

site. “Humans make errors, so we’re

at risk from environmental factors. Pilots

reducing those by removing humans

own your data, and you have to pay them

from the flying process but exponen-

in addition, to access it. So you could be

tially increasing the knowledge and

paying as much as $100,000 to receive

understanding of what’s happening.

your data with the added problem that

Because all of the data from our Flight-

they don’t know your business as well

Cloud can be immediately overlaid with

as your employees do.”

whatever software the client requires.

FEBRUARY 2019


37

This offers mines the ability to see the photogrammetry or live images on their

the aftermath of an

mobile devices anywhere in the world.

avalanche site to fully understand the

So now the CEO can be in London, and

financial implications for the business.”

the junior staffer could be somewhere

Malmgren is rightly proud of the way

in South Africa, but through autonomous

her company is empowering young

flight, we’ve given real time eyes on site

women working in mining in Africa. “They

to senior management with remote

are able to deploy our robotic tools in a

access. For example, it would allow them

world which said they weren’t capable.

to put on VR goggles and walk through

And they are better at problem-solving w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

than these external guys because they’re miners, so they understand what’s important to address on a mining site. It’s a game-changer not just in terms of cost reduction but the dramatic increase in useful problem solving.” The urgent need for inclusion and diversity in the industry allied with the enhancement of opportunities for women is an issue close to Malmgren’s heart. Named as one of We Are Tech’s Top 100 Women in Tech, she has also been lauded as one of Inspiring Fifty’s (Googlesponsored) Women in Tech. These plaudits recognise her achievements with H Robotics 38

- part of a new wave of digital businesses re-shaping the world we live in. Like many other companies emerging with a new tech offering in the sector, H Robotics is keen to build a network of partnerships supporting its growth. But when you’re hoping someone will return your call it can be tough. But not so tough when your founder used to work for the President of the United States and advised governments and major corporations around the world on economic policy. “When I call a global mining company, it’s usually because I know the CEO or members of the board of directors,” explains Malmgren. “It’s hugely valuable in terms of being able to supply a market like mining which, like many industries, is eager for new technology yet is slow to embrace it. You have to prove FEBRUARY 2019


CLICK TO WATCH : ‘HISIGHT UAV TRAINING VIDEO — H ROBOTICS’ 39 to them it’s really worth it. As an economist, they know I understand why it’s important it generates a fast return on investment, and that they can’t wing it on a ‘maybe’.” Analysing future trends by taking an aerial view is where Malmgren pledges H Robotics can add value to any mining business: “Drones will be increasingly used by insurers and accountants so we’ve introduced a blockchaintype concept with our tools. Put simply, it’s an aerial view which is timestamped so you can see exactly when events occurred to analyse things like safety procedures and measurements as part of a visual audit trail.” The industry emphasis on safety represents a real w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

40

opportunity for industrial drone develop-

of investment in capacity since the

ers. Malmgren cites Australia’s mining

financial crisis - the same is true of other

industry as a key market where drones

sectors such as oil and gas. We’re now

can ensure the safety of workers by

experiencing capacity shortages, in

taking on potentially dangerous visual

a world economy growing surprisingly

observation and measurements

better than everybody expected. It’s

recording data from the top of a heap

still controversial to say this because

of aggregate.

most people think the world economy

We live in a world where inflation is

is about to roll over... but $20 trillion of

back on the agenda, so with Malmgren’s

quantitative easing is still out there in

unique perspective as an economist

the world economy. Investors are aiming

and mining professional what are her

to get out of cash due to the pressure

predictions for how the industry can

of inflation so they’re looking to put

and must respond? “We’ve seen

their money in the real economy through

a mining downturn triggered by a lack

buying equity. I think the smart investors

FEBRUARY 2019


41

are hoping there’s a significant pull back

to disappear. The other key pressure

in equity prices, because then they’d buy

on mining is from sustainability and

everything - with every pension fund in

environmental issues, but increasingly

the world under-funded they can’t afford

miners are aiming to respond positively

not to. That’s part of the reason I think

to these concerns and I think drones

we’re seeing an annulation of hard assets

can be a huge part of that effort.”

rising, and it’s not just raw materials, it’s

Looking ahead Malmgren will be

infrastructure too. Meanwhile, a new

speaking at the World of Drones

world of cryptocurrencies shows there

congress in Brisbane in September

are those who believe we could have

while H Robotics is in discussions

currencies without any hard assets

with the Australian government and

underpinning them. A reaction to that has

its mining community about supply

been a new bid for gold proving that

robotics to the industry as it has done

ultimately the mining industry is not going

in Africa. “We’re also working in other w w w.mi ni nggl o b a l. com


INDUSTRY 4.0

sectors,” she adds. “We’re starting to work with oil and gas companies and have been listed as a supplier to Shell. We’ll be expanding our work with insurance companies and both fire and police departments. We’re keen to get people thinking about the multiplicity of use… For example, poor community relations are a typical problem in the mining industry. So why not use drones like HiSight to support medical emergencies in remote locations? We can help companies deliver a community service 42

as well as automating many mining tasks.”

FEBRUARY 2019


Malmgren reveals the next step for

“ WE’RE STARTING TO WORK WITH OIL AN D GAS COM PAN IES AN D HAVE B EEN LISTED AS A SU PPLIER TO SH ELL” — Dr Pippa Malmgren, Founder, H Robotics

HiSight will be to further develop its capabilities to capture samples on mining sites and deliver ground penetrating radar for surveys: “We’re in discussions with top scientists working towards having a device that you’ll attach to HiSight, that will actually drill down and take surface samples. Because it’s one thing to have geo-spacial data, and granular drone level data, but miners will ultimately need that sample.” Malmgren’s believes her book ‘The Leadership Lab – Understanding Leadership in the 21st Century’ has a key takeaway the mining industry would do well to heed: “CEO’s say to me all the time that they don’t do technology… But if you don’t do technology, technology will do you.”

w w w.mi ni nggl o b a l. com

43


TECHNOLOGY

I N FI N IT Y LITH I U M C O R PO R ATIO N

TO INFINITY AND BEYOND? 44

FEBRUARY 2019


Infinity Lithium’s Vincent Ledoux Pedailles, Executive Director – European Corporate Strategy, tells Mining Global how the Australian junior is poised to ride the wave of ‘white gold’ as the electric vehicle revolution takes hold. WRITTEN BY

DAN BRIGHTMORE

45

w w w.mi ni nggl o b a l. com


TECHNOLOGY

I

nfinity Lithium is an Australian listed minerals company, working in partnership with

Valoriza Mineria (the mining subsidiary of

major construction and engineering company

SACYR), to develop the San Jose Lithium Project following a public tender won in 2016. Situated in the Extremadura region of Spain, it will be the sole European mine-to-end-product lithium hydroxide operation when completed. “Our intent is to develop a fully integrated lithium production process – from mining all the way down to producing lithium chemicals for the growing battery market,” pledges Vincent 46

Ledoux Pedailles, Infinity’s Executive Director – European Corporate Strategy. The 50/50 joint venture (JV) will take advantage of a gas pipeline installed next to the plant. The site itself was mined in the late 80s with data from that time being used for Infinity’s feasibility study which is now underway. Ledoux Pedailles concedes the biggest challenge still to overcome is financing – lithium is still a relatively small market with less than 300,000 tonnes forecast for 2019. “Banks and financial institutions are reluctant to support the industry as it remains an emerging market which includes both chemical and mining industries,” he adds. “It’s not a price you can hedge on the LME at the moment which can make it more difficult to finance a project.” However, FEBRUARY 2019


47

there is a way around the potential impasse which he favours. “We’re keen to find an experienced offtake partner in Europe, not only to guarantee the product will be wanted at the end of the process, but also to build a longterm collaboration that will develop the battery supply chain in Europe.” Following the recent news of a successful scoping study at San Jose, CEO Ryan Parkin is confident Infinity will be able to do just that and take advantage of the electric vehicle (EV) revolution w w w.mi ni nggl o b a l. com


TECHNOLOGY

48

which has seen lithium earn the moniker

flow (pre-tax) per annum, driving

‘white gold’: “We’ve had a great result at

a payback period of circa 28 months.

San Jose – a net present value (NPV) in

The planned mine at San Jose, located

excess of US$720m and an internation-

2.5 hours away from Madrid, will take

al rate of return (IRR) of 51%. The pro-

advantage of one of Europe’s largest

duction of lithium-hydroxide is a highly

lithium deposits. A forecast project life

specified field. We’ve come in with

of 24 years would see the creation of

a C1 operating cost of $5,343 per tonne

200 jobs and 1,000 supporting roles.

which places us at the lowest end of the

To reach that goal Infinity has forged

cost curve and in line with the advan-

an alliance with technical partner Wave

tages that hard rock producers have

International.The Australian engineering

over brines in this space.” Infinity expects

company has a strong pedigree and

the project to generate $5.1bn in rev-

is currently involved with Albemarle’s

enue, and over $126m in free cash

construction of Western Australia’s

FEBRUARY 2019


“WE’VE HAD A GREAT RESULT AT SAN JOSE –- A NET PRESENT VALUE (NPV) IN EXCESS OF US$720MN AND AN INTERNATIONAL RATE OF RETURN (IRR) OF 51%” — Ryan Parkin, CEO, Infinity Lithium 49

largest lithium plant at the Kemerton

to go down a different route to the one

Strategic Industrial Area - also set to

currently used in China,” explains Ledoux

become the largest lithium hydroxide

Pedailles. “In Asia, ore is processed

plant in the world. Ledoux Pedailles

into lithium chemicals using thousands

maintains Infinity is geared towards

of tons of sulphuric acids at prolonged

entering production as quickly as

high temperatures during the roasting

possible (by 2022) using equipment

and leaching process. Infinity will instead

available today, and is not looking to

apply the proven sulphate process at

reinvent the wheel using new technology.

San Jose and not employ any sulphuric

Allied to that mission, the company

acids. We’ll be using a sodium sulphate

is keen to embrace an environmentally

or potassium sulphate in our roasting

friendly process: “Mining is viewed

process, which are safe chemicals and

negatively in terms of the environment

available domestically. The roasting

so with our process we have decided

process only goes up to 850 degrees w w w.mi ni nggl o b a l. com


TECHNOLOGY

“IF THIS RESOURCE NEEDS TO BE MINED SOMEWHERE WE’RE SETTING ABOUT DOING IT THE RIGHT WAY WHILE SUPPORTING VEHICLES WHICH WILL OFFSET THE WAY WE CURRENTLY POLLUTE WITH TRADITIONAL CARS AND HELP BUILD A BETTER FUTURE” — Vincent Ledoux Pedailles, Executive Director, European Corporate Strategy, Infinity Lithium 50

FEBRUARY 2019


CLICK TO WATCH : ‘INFINITY LITHIUM WORKING TO BECOME FULLY-INTEGRATED LOW-COST LITHIUM HYDROXIDE PRODUCER’ 51 to liberate the lithium in the rock, com-

facture ramps. “We are in discussion

bined with a fresh water leach to deliver

with EV and battery manufacturers in

strong recoveries of lithium. This can

Europe,” he reveals. “The lithium we are

pretty much all be recycled so the

going to be producing will be used in

environmental impact will be minimal.

cathodes, it’s a very advanced product

Moreover, with the processing plant

so as a specialty chemical it will need

less than 3km from the mine, our carbon

to perfectly match their requirements.”

footprint is minimal compared to miners

The EU has announced plans to push for

who export their concentrate thousands

EVs and more batteries to be produced

of miles away to be converted in China.”

in Europe so in turn, Infinity is pushing

Ledoux Pedailles confirms Infinity is

for funds to further develop the San

in talks with major players in the global

Jose project and encourage the mining

lithium-ion battery chain who are keen

of other battery metals such as nickel.

to invest in Europe and secure product

Ledoux Pedailles believes that the

from a high quality project as EV manu-

demand forecast for lithium is set to w w w.mi ni nggl o b a l. com


TECHNOLOGY

“WE HAVE SO MUCH POTENTIAL IN THE INDUSTRY THAT I THINK TODAY WE ARE UNDERESTIMATING HOW BIG THE MARKET IN BATTERIES IS GOING TO BECOME” 52

— Vincent Ledoux Pedailles, Executive Director, European Corporate Strategy, Infinity Lithium

continue on its upward trajectory, with gross estimates suggesting it is projected to rise as much as 20% per year for the next ten years. “People are becoming more optimistic about EVs,” he adds. “But it’s much more than that… We are starting to see plans for more electric buses and trucks, while the maritime and aviation industries are also investing in ways to go electric. We have so much potential in the industry that I think today we are underestimating how big the market in batteries is going to become. The issue will be on the supply side. Are we going to have enough lithium to feed to those cathode and battery manufacturers?” Answering that question will be the key to Europe de-risking the supply chain to fulfil its potential. Behind Asia, Europe is home to the second largest EV and battery manufacturers and hence has become the second largest market for battery metals. This means that, after Asia, it will soon become the second largest consumer of nickel, cobalt and lithium in the world. “This can’t happen overnight,” warns Ledoux Pedailles. “The industry remains pragmatic here, auto manufacturers

FEBRUARY 2019


aren’t ready to invest in making their own batteries as it requires massive investment. For example, Nissan gave up on the idea when they realised they couldn’t compete with producers in South Korea and Japan and instead sought integration with better partnerships.” He believes Europe will see more joint battery production partnerships like the one developing between BMW and Samsung. Similarly, he expects further partnerships on the mining side where European projects like Infinity’s will jointly develop processes with Asian and European companies keen to invest in and bring their technical experience to a market they

w w w.mi ni nggl o b a l. com

53


TECHNOLOGY

recognise is growing fast. “Integration needs to happen step by step through greater collaboration,” he advises. With a potential boom, is lithium eventually at risk of becoming devalued due to oversupply? Ledoux Pedailles argues that analysts, with their limited experience of lithium, have had their forecasts proved wrong already. “Just look at 2018, the amount of lithium that comes out of South America which was, historically, the largest supplier of lithium chemicals is actually flat year on year.” 54

He points out that when you start a new lithium plant historical rates show first year produce at 10% capacity, the second year at 25%, the third year at 30%... “The ramp-up is extremely slow because the process is far from easy,” he adds. “Lithium, like electric mobility, is a long-term story… Over the next 20 years, there is not enough investment in the lithium world to supply sufficient product to all the batteries that are going to be fitted in electric cars. It’s just not possible with the amount of money invested in lithium so far…” The EV industry has come a long way since its early days when concept cars such as the Tesla Roadster and Nissan FEBRUARY 2019


Leaf blazed a trail which was slow to develop in the years following the financial crash when governments were unable to invest in charging infrastructure. At that time, while working for a subsidiary of Albemarle, Ledoux Pedailles could see the potential for lithium which led him to a mining analyst role at Roskill and then associate director at HIS Markit where he developed a research business looking at everything from battery metals to electric vehicles and energy storage. It’s this deep knowledge that makes him confident of what Infinity Lithium can achieve now the EV market is expanding. “They can’t backtrack now, it’s too late…” he notes. “A couple of years ago it was quite difficult to buy an EV but we are seeing diversity coming to the market. They remain relatively expensive but when the likes of Volkswagen launch their range below 20,000 Euros the mass market will begin.” When that happens there will be no point buying a traditional car and we could then see lithium earn its ‘white gold’ tag. Ledoux Pedailles asserts that, to be ready to take advantage of this inevitable shift, the main goal for 2019, beyond the feasibility study, is to move the JV w w w.mi ni nggl o b a l. com

55


TECHNOLOGY

“A COUPLE OF YEARS AGO IT WAS QUITE DIFFICULT TO BUY AN EV BUT WE ARE SEEING DIVERSITY COMING TO THE MARKET. THEY REMAIN RELATIVELY EXPENSIVE BUT WHEN THE LIKES OF VOLKSWAGEN LAUNCH THEIR RANGE BELOW 20,000 EUROS THE MASS MARKET WILL BEGIN” 56

— Vincent Ledoux Pedailles, Executive Director, European Corporate Strategy, Infinity Lithium

FEBRUARY 2019


with Valoriza Mineria from 50/50 to 75% in favour of Infinity. This will help support the quest for uptake partners and further investment now the JV has borne fruit on the regulatory side. On the way to developing San Jose, Ledoux Pedailles believes sustainability is key for Infinity with the life of the project estimated at 24 years: “The idea for us is to mine for 16 years, stockpile next to the plant and then rehabilitate the pit into a lake while we continue with the processing operation. Mining may not always be clean but if we want to make our future more environmentally friendly, we will need lithium to put in the batteries that will power our electric cars – there is no way around it. If this resource needs to be mined somewhere we’re setting about doing it the right way while supporting vehicles which will offset the way we currently pollute with traditional cars and help build a better future for our planet.”

w w w.mi ni nggl o b a l. com

57


PARTNERS

STRATEGIC PARTNER

4th Annual

SUDAN INTERNATIONAL MINING BUSINESS FORUM AND EXHIBITION 1 8 - 2 0 F E B R U A R Y , 2 01 9 FRIENDSHIP HALL, KHARTOUM, SUDAN

PARTICIPATE IN THE LARGEST MINING EVENT ACROSS THE COUNTRY

WHY SUDAN? BECAUSE SUDAN IS PREDICTED TO BE

AFRICAS LARGEST GOLD PRODUCER BY 2019.


A

GOLDEN NEW ERA FOR

SUDANESE MINING

100+ EXHIBITORS

GROWTH CONTINUES ... ORGANIZED BY

www.sudansummit.com


S U S TA I N A B I L I T Y

60

THE NEW DAWN OF MINING

FEBRUARY 2019


Dr. Kash Sirinanda argues futuristic mining in the next decade involves transforming the industry into a network of best-in-class, sustainable, advanced-digital-competency companies WRITTEN BY

DR K ASH SIRINANDA

w w w.mi ni nggl o b a l. com

61


S U S TA I N A B I L I T Y

D

62

uring the past decade, with the

ligent mine and smart mine. How-

enhancement of digital tech-

ever, the core content of these tech-

nology and big-data hype,

nology-enabled mines are conceptually

there have been many discussions

the same. They are focused on tech-

around how to digitalise a mine.

nological development and improve-

Many leading firms define the same

ment of business, without considera-

concepts, using different terms such

tion of other important aspects of

as connected mine, digital mine, intel-

mining. We need to adopt a holistic

“We need to adopt a holistic approach within a broader perspective to explore the concept of future sustainable mining� — Dr Kash Sirinanda, Futurist at Elite Futurists & Founder, Mine Connector

FEBRUARY 2019


approach within a broader perspective

the mining industry will be driven

to explore the concept of future sus-

by two wheels:

tainable mining.

• The Digital wheel - Digital levers that strengthen a digital agenda

MINING IN THE NEXT DECADE I believe the concepts of digital and

in a mining origination • The Sustainability wheel -

sustainability will drive the mining

Sustainable levers that drive

sector in the next decade and predict

a mining company in the future

Blockchain

IoT

Augmented reality

Gamification

5G

MINING DIGITAL WHEEL

3D Printing

63

Virtual Reality

Drones

Cloud

Autonomous Vehicles

Growth

Waster Waster Water Water

Robotics

Advanced analytics

Circular economy

Taxes Taxes

MINING SUSTAINABILITY WHEEL

Energy

Community Health & safety

Legal rights

BiodiversityM Mine Biodiversity ine closure Environment Economic Social

w w w.mi ni nggl o b a l. com


S U S TA I N A B I L I T Y

MINING VALUE CHAIN Minerals OPEN-PIT MINES

1

5

Exploration

Mining 12

Processing

2

13

UNDERGROUND MINES

4

5

2 5

6

7

8

10

3

9

11

Proce

14

Responsible for optimisation optimization across across the the value valuechain chainby bybringing brining concep 64 Ensures long-term access to ore deposits

Primary task is to mine and exploit higher grade ore

Transform materials into upgraded pro

EXPLORATION

MINING

PROCESS

DIGITALISED MINING VALUE CHAIN: WHAT IS MISSING FOR A SUSTAINABLE MINE?

the digital game, and to tap into the

Compared to the telco, banking

as AI, robotics, blockchain, 3D print-

and retail sectors, the mining sec-

ing, virtual reality, augmented real-

tor is lagging behind in digital matu-

ity, gamification, advanced analytics

rity. This is because mining is a very

and cloud computing. For example,

conservative industry, driven by a silo

blockchain could be used to identify

mentality. In order to be at the top in

resources movement throughout

FEBRUARY 2019

future, mining companies need to leverage emerging technologies such


INDUCTRY CASES Port

1

Drones

For shipment to customers around the world

2

RF IDs

3

IoT implementation

4

Robotics

5

Predictive maintenance

6

Throughput optimisation

7

Energy optimisation

8

3D printing

9

Blockchain

10

6

7

essing Plant

Transport

5

pts of digital digital and andadvanced advancedanalytics analytics

m raw o highly oducts

SING

Handles ore from below the ground through processing to the ports

TRANSPORT

10 Autonomous vehicles 11 Cloud 12 Virtual Reality 13 Augmented Reality 14 Gamification

platforms to capture, store, clean,

GREEN MINING: SUSTAINABLE BUSINESS MODELS ARE RAPIDLY BECOMING THE NEW NORM IN THE MINING SECTOR.

structure, and analyse data from sen-

In 2015 the UN adopted a new set of

sors. It would help a mining company

aspirations for the next 15 years; the

to run predictive maintenance, yield,

Sustainable Development Goals (SDGs).

energy, through-put optimisation;

The UN defines 17 SDGs, which are

this in turn would increase profits.

broken down into 169 targets, for

the value chain, similar to the retail industry. Most other industries are leveraging Internet of Things (IoT)

w w w.mi ni nggl o b a l. com

65


S U S TA I N A B I L I T Y

66

outlining an agenda for nations, NGOs

to see some mining companies are

and business leaders. These goals are

already driving SDGs.

intended to end poverty, protect the

economic and environmental sustain-

CIRCULAR ECONOMY: HOW TO GET YOUR MINING COMPANY INTO RECYCLING AND DRIVING CONCEPTS OF CIRCULAR ECONOMY.

ability. As an example, two SDGs such

Driving concepts of a circular econo-

as life on land and life below water can

my would positively impact on SDGs

be mapped to bio diversity. It is good

defined by the UN. Concepts of

planet, and ensure prosperity. These 17 SDGs can be mapped to mining content in order to cover social,

FEBRUARY 2019


67

SUSTAINABLE SUSTAINABLEMINING MININGPRINCIPLES PRINCIPLES

Water Water

Growth Growth

Energy Energy

Legal rights Legal rights

Waste Waste

Mine closure Mine closure

Circular economy Circular economy

Biodiversity Biodiversity

Taxes Taxes

Community Community

Health & Safety Health & Safety

Environment Environment Economic Economic Social Social

w w w.mi ni nggl o b a l. com


S U S TA I N A B I L I T Y

circular economy can be applied to

claims that with two Liam lines up and

any organisation thinking about how

running, they can take apart up to 2.4 mn

to manage its own waste and how to

phones a year. Let’s examine these

build a recycling unit. Driving these

statistics further.

concepts would be a step towards a

Apple has saved $140,000, which it

greener economy and a better

would normally pay to mining compa-

environment for the next generation.

nies, by recycling 100,000 iPhones.

Imagine, in the future, other companies

The value is based on current prices

similar to Apple driving the concept of

of mined materials. These types of

sustainability. Apple pledges to stop

recycling mechanisms can be used in

mining for iPhone materials and has

other industries such as manufacturing,

installed Liam, a line of robots that can

automotive, building and construction,

quickly disassemble the iPhone 6. It

and those involving chemicals and

68 E X E C U T I V E P R OF IL E

Dr Kash Sirinanda Futurist at Elite Futurists & Founder, Mine Connector

Dr Kash Sirinanda has a doctorate in mine planning and optimisation from the University of Melbourne, Australia. During his PhD studies and post-doctoral work, Kash developed algorithms for generating designs that maximise the NPV of a mining operation. That work provides the basis for software that assists mine planners to design more profitable mines. Kash was also a visiting scholar at the Colorado School of Mines, USA. He has worked on various mining projects which include due diligence, operation, analytics, optimisation and digital in different commodities around the globe. FEBRUARY 2019


CLICK TO WATCH : DR KASH SIRINANDA - MINE CONNECTOR: A VISION FOR A FUTURISTIC MINING COMPANY 69 plastics. However, plant infrastructure needs to be modified to enable these capabilities. Even though there are upfront costs involved with building these capabilities, it pays off in the end. What would happen if other giant companies similar to Apple were to prioritise the recycling of secondary materials? Apple is one business model which could be followed by mining companies to drive concepts of circular economy, and to use

“Compared to the telco, banking and retail sectors, the mining sector is lagging behind in digital maturity” — Dr Kash Sirinanda, Futurist at Elite Futurists & Founder, Mine Connector

secondary materials by re-smelting them. This would help to protect our environment by preventing the w w w.mi ni nggl o b a l. com


S U S TA I N A B I L I T Y

stacking of unwanted waste in waste

by digital and sustainable business

yards. Here, I briefly draw the mining

models. I predict digital and sustainabil-

value chain of a mining company that

ity wheels will drive the mining sector.

is driven by a linear economy and one

However, there will be challenges to

driven by a circular economy.

overcome:

Having a recycling plant in a mine site

• A lack of a clearly articulated digital

would help to manage the day to day

and sustainability strategy; no idea

waste that is generated by mining

where to start

operations.

• Complexity, and a lack of priority, focus, and deliverable milestones

CONCLUSION: THERE WILL BE A BIG DEMAND FOR GREEN MINING IN THE FUTURE. 70

The next decade in mining will be driven

FEBRUARY 2019

• No great ambition, and a limited budget • A lack of leaders in the organisation who are not brave enough to go the extra mile


“I predict digital and sustainability wheels will drive the mining sector” — Dr Kash Sirinanda, Futurist at Elite Futurists & Founder, Mine Connector

• A lack of talented and motivated people in the organisation • A lack of cross-business communication • An absence of business and senior

Being a futurist, it is my prediction that digitalised and sustainable business models will rapidly become the new norm in the mining sector. Industries that do not constantly learn and adapt

leadership in digital and sustainability

will fall behind and miss out on impor-

strategies, formulation, and execution

tant commercial opportunities.

• Poor change control and lag • A lack of skills and expertise to realise the digital and sustainability strategies

Over time, this translates into missed profits, and threatens company survival. Therefore, now is the time to think! w w w.mi ni nggl o b a l. com

71


T O P 10

72

FEBRUARY 2019


Top 10 risks to the mining industry 73

Mining Global dissects the annual EY report highlighting the biggest risks to the mining and metals industry for 2019

w w w.mi ni nggl o b a l. com


T O P 10

New World Commodities Urbanisation and rising demand for infrastructure have been key drivers of demand for Old World commodities. More recently, technological disruption and the ongoing transformation of downstream sectors within an increasingly ‘green’ economy have forced a change in commodity demand. The EV revolution has boosted demand for critical minerals such as cobalt, lithium and copper. Allied to this, a further shift towards recycling is likely to impact iron ore demand as steel firms increase their use of electric arc furnaces, ramping the demand for scrap steel. EY advises that mining companies which are likely to prosper will 74

be those who collaborate with many sectors and capture value across the chain. Portfolio optimisation is critical - miners need to understand the synergies within their organisations to enable investment, divestment and rationalisation. Adopting a level of flexibility in your business model is key to remaining agile to change while considering all future growth assets.

FEBRUARY 2019


Fraud

75

Fraud and corruption have re-emerged as a significant risk for many mining and metals companies. EY believes that’s the result of detection techniques becoming more sophisticated rather than increased corrupt activities. In addition, social media has allowed for allegations of impropriety to be made globally visible with unprecedented speed, regardless of whether or not they are founded. This places the risk of fraud hand-in-hand with the risk to reputation and licence to operate. As miners increase their use of digital tech for global connectivity, exposure to fraud is heightened. Higher commodity prices and rising cash flows have seen a surge in exploration projects, however, this often involves multiple contractors, contributing to an average of 8% of capital expenditure either noncompliant or misallocated. EY notes that companies are responding by leveraging the predictive capabilities of big data to make real-time assessments to manage with more effective oversight and mitigate fraud and compliance risks. w w w.mi ni nggl o b a l. com


T O P 10

76

Disruption “We are now in an era of constant disruption… Instead of seeing it as a threat, you should see it as a great opportunity to innovate, evolve and thrive,” says Paul Mitchell, EY Global Mining & Metals Advisory Leader. EY notes that automation is creating job disruption both within the back office (through robotic process automation) and in operations (through autonomous vehicles), with the next jobs to be disrupted to be those that schedule and plan work. Allied to this, customer disruption is already occurring in commodities - Morgan Stanley predicts 15% of gem quality diamonds will be synthetic by 2020. Electrification of mines is starting to climb the boardroom agenda driving cost reduction, energy efficiency and licence to operate stewardship. Innovative ‘digital mines’ are creating a new wave of assets as they become commonly adopted. Economic disruption through regulatory and macroeconomic shifts such as mining code and government changes will have a significant impact. FEBRUARY 2019


Future of Workforce

77

Talent management practice often mirrors the commodity price cycle: miners hire rapidly in an upswing and shed excess resources in a downturn. As a result, many workers laid off move to other sectors and never return, taking invaluable knowledge and experience with them. Meanwhile, other trends continue to reshape labour supply. Changing technology is disrupting the required skills mix of data science, analytics and mechatronic skills - making it difficult for the industry to compete. Changing social and demographic forces make attracting younger talent a consistent challenge. Global talent markets add increased complexity to attracting leaders and tech talent. EY notes that the sector needs an agile and affordable workforce capable of thriving in an environment of ongoing commodity price volatility and digital transformation. Companies need to invest accordingly to: think about the future now; build a brand or purpose; seek alternative sourcing mechanisms; challenge conventional development strategies and utilise a flexible resourcing model to balance workforce supply and demand. w w w.mi ni nggl o b a l. com


T O P 10

Energy Mix Processing operations are energy-intensive and estimated to be 6.2% of total global energy consumption – energy represents a third of a company’s total cost base. Energy mix considerations include: social and reputational implications of choosing energy sources; viability of energy sources (remote locations) and management of the availability of energy over entire mine life while counteracting fuel price volatility. To date, mining operations have largely relied on fossil fuels to run equipment and electricity for processing. To minimise risk, companies are opting for a mix of fossil fuels, hydroelectricity and renewable energy. In his EY blog, Dr. 78

Ali G. Madiseh, Canada Research Chair in Advanced Mine Energy Systems, maintained the solution is the development of ultra-efficient energy systems for mining operations to make them greener, less expensive and more sustainable by preventing energy wastes and taking advantage of the renewable energy sources available on-site (wind and solar for power and geothermal for heating).

FEBRUARY 2019


Rising Costs

79

Global inflation is not expected to rise as rapidly as it has in previous cycles, but there will be a steady increase from around 2.7% in 2016 to 3.5% in 2019. However, during periods of higher commodity prices, mining input costs, such as wages, consumables, diesel and energy, often increase at a higher rate than general inflation. Mining complexities increase as low-cost mines reach the end of their life. Miners need to go deeper for lower quality ore and manage increased distances to processing plants, water removal and other physical constraints, at an increased cost. EY suggest the following approaches for organisations to respond to the risk: focus on sustainable cost-reduction programs; carefully manage general expenses; source from low-cost countries; review capital tied up in high levels of pre-stripping, advance development and stockpiles; consider contract mining versus sale or leaseback; implement front and back-office automation; review supplier contracts, offshoring or outsourcing and divest non-core assets. w w w.mi ni nggl o b a l. com


T O P 10

Cyber A ramping threat has seen organisations spend more on cybersecurity, improving their defences to embed security-by-design. As 80

the digital transformation agenda forces organisations to embrace emerging technologies and new business models cybersecurity needs to be a key enabler of growth. EY recommends every transformation should promote three key principles across culture, governance and capabilities: • Expect excellence in security fundamentals - be mature at ‘security basics’, practice good security hygiene and optimise current information security solution capabilities. • Establish a strong governance program and culture of accountability - including adequate progress and performance metrics, development of a security-savvy culture and a culture shift to ensure security practices are a part of everyday responsibilities. • Build a commitment to continuous improvement - adapt to new requirements based on evolving threats and trends, regularly assess security posture to remediate gaps, and remember that cyber strategy roles and responsibilities are for everyone in the organisation no matter what their roles. FEBRUARY 2019


81

Maximising Portfolio Returns Capital allocation lies at the core of corporate strategy. Future returns will only be competitive in the long term if the right decisions over capital are made now. In order to truly transform portfolios, and provide marketleading shareholder returns, the mining sector must look across all strands of capital allocation, which increasingly involves the need to invest in transformative technologies. EY found that with relatively few greenfield projects providing low-risk investment opportunities, there is an increasing desire to consider acquisitions. Supply challenges across a few commodities are just over the horizon as project pipelines have shrunk significantly. EY argue disruption is inevitable and those with thoughtful capital allocation to digital and innovation will become the innovative, predictive as well as higher margin-generating mines and metals operations. w w w.mi ni nggl o b a l. com


T O P 10

Digital Effectiveness Miners are making headway harnessing digital to improve productivity. EY note successes in the automation of haulage, rail, trucks and drilling as well as the use of predictive analytics to reduce maintenance costs and improve equipment availability. Such initiatives have been focused on solving bottlenecks and, while delivering value, have not been transformative. EY believes sustainable productivity gains will only be realised when digital initiatives span the value chain. For this to happen, CEOs need 82

to drive change with a shared vision across their organisations, offering a comprehensive business case and proper resourcing. Digital is the key to achieving sustainable productivity, margin improvement and staying ahead of your competition. EY recommend an end-to-end program of overlapping waves of increasing complexity and value. A structured ‘wave’ approach can help to integrate digital initiatives into a cohesive whole.

FEBRUARY 2019


83

w w w.mi ni nggl o b a l. com


T O P 10

84

FEBRUARY 2019


Licence to Operate According to EY’s 11th annual survey of 250 executives, mining companies believe the biggest risk their businesses face over the next two years is the threat of losing their licence to operate (LTO). A narrow, legacy focus on LTO may be the strategy that puts you out of business, warns EY. Applying just the social and environmental lenses, seeing it as a soft issue or allocating it to one section of the business, will directly threaten your ability to operate. The stakeholder landscape is shifting. There is more information, bigger platforms and more at stake than ever before. Underestimating the power of each and every single stakeholder would be a mistake. With the sector making efforts to redefine its image as a sustainable and responsible source of the world’s minerals, EY’s global mining and metal advisory leader Paul Mitchell said: “Licence to operate has evolved beyond the narrow focus of societal and environmental issues. There are now increasing expectations of shared value outcomes from mining projects. Any misstep can impact the ability to access capital or even result in a total loss of licence.” EY maintain mining and metals companies need to transform their business models to remain competitive and welcome all their stakeholders along on that journey. To achieve a positive outcome a new approach is required - like safety, LTO needs to quickly become part of a mining company’s DNA.

w w w.mi ni nggl o b a l. com

85


Organised by:

PARTICIPATE IN

THE MOST AWAITED MINING EVENT ACROSS THE COUNTRY www.marrakeshminingconvention.com info@marrakeshminingconvention.com

SOME OF THE attending

Ministry of Industry and Trade of The Republic Czech

Ministry of Petroleum and Minerals, Republic of The Sudan

www

Ministry of Mines and Steel Development, Nigeria

Ministry of Infrastructure and Energy Republic of Albania


The New Meeting Place For The World's

The Inaugural Marrakesh Mining Convention 2019

Mineral Industry 17-19th, April 2019 +44 (0)208 242 6566 Palais des Congrès, Marrakesh, Morocco MINISTRIES ARE:

Ministry of Energy, Mines and Sustainable Development, Kingdom of Morocco

Ministry of Energy and Natural Resources, Republic of Turkey

Ministry of Energy and Mining Policy, Argentina

Ministry of Mines and Mineral Resources, Sierra Leone


EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DAN BRIGHTMORE from around the world

88

04—07 FEBRUARY 2019

Investing in African Mining Indaba [ CAPE TOWN, SOUTH AFRICA ] Investing in African Mining Indaba is

Development Day and the Investment

solely dedicated to the successful

Battlefield - where the hottest emerg-

capitalisation and development of min-

ing mining projects will pitch against

ing interests in Africa. This year’s 25th

each other to a panel of high-profile

anniversary event unites over 750

investors in a bid to become 2019

investors, mining companies, govern-

champion. Mining Indaba is dedicated

ments and other stakeholders from

to supporting education, career devel-

around the world to learn and network,

opment, sustainable development, and

with the shared goal of advancing min-

other important causes across Africa.

ing on the continent. Highlights will

Click for website

include a keynote address from the President of Ghana, a Sustainable FEBRUARY 2019


18—20 FEBRUARY 2019

18th Coaltrans India [ NEW DELHI, INDIA ]

India’s largest coal event will bring

25—26 FEBRUARY 2019

Mining Investment Middle East [ LOCATION ]

together over 600 key decision mak-

Mining Investment Middle East is a

ers from across India and the world for

strategic mining conference and exhi-

three days of networking, knowledge-

bition for the leaders of the mining,

sharing, and deal-making. The Indian

quarrying and construction materials

coal sector is changing fast with the

industries, bringing together 170

focus moving on domestic production

attendees from 18 countries. Confer-

and less importing. Seaborne prices,

ence speakers will include industry

however, are high and there’s an

leaders keen to share cutting-edge

increased interest from international

insight and offer new perspectives on

miners to export. On the domestic

key issues innovating and disrupting

side, coal is increasingly facing strong

the mining landscape. An exhibition of

competition from solar power. This

the latest in technology and solutions

year’s edition will examine the dynam-

for the sector will give delegates direct

ics of the Indian thermal coal market

access to forge new business partner-

and look at the impact of the global

ships. Themes to be explored at the

coal market on the country. Highlights

event include: fostering partnerships in

include a ministerial session where

mining; driving innovation in financial &

delegates can put their questions to

operational processes; innovating CSR

representatives of India’s Ministry of

practices for sustainable mining &

Coal, Mines and Railways.

development and future outlook - trailing

Click for website

Vision 2030.

Click for website

w w w.mi ni nggl o b a l. com

89


EVENTS & A S S O C I AT I O N S

90

25—27 FEBRUARY 2019

Operational Excellence in Energy, Chemicals & Resources Summit [ TEXAS, USA ] The summit will bring together over

- all industries facing high levels of

150 Operations, Operational Excellence

operational risk. The inspirational global

(OE), Risk Management, EH&S, Asset

speaker line-up features world-class

Management and Reliability leaders in

leaders from BHP Billiton, Rio Tinto,

Houston to share, learn and network

Goldcorp, ConocoPhillips, Enbridge,

with the best in the industry about how

Repsol, Andeavor, BP, Veolia, BASF,

to enhance efficiency, reliability, safety

Henkel, Thames Water and many more

and drive OE to the frontline. It provides

- all presenting at the event to guide you

a unique opportunity to benchmark

on your business transformation journey.

your company’s performance against

Click for website

some of the world’s largest high-reliability organisations operating in energy, chemicals, mining, water and forestry FEBRUARY 2019


03—06 MARCH 2019

PDAC 2019

[ TORONTO, CANADA ]

91

PDAC (The Prospectors & Developers

courses and networking events are

Association of Canada) is proud to be

also on offer. For a ‘hands-on’ approach

the leading voice of Canada’s mineral

to learning about the latest discoveries

exploration and development community

from around the world visit the Core

since 1932. With over 8,000 members

Shack, highlighting these endeavours

around the world, its mission is to pro-

with maps, charts and technical infor-

mote a globally responsible, vibrant

mation. Elsewhere, the Prospectors

and sustainable minerals industry. The

Tent offers a venue for self-employed

World’s Premier Mineral Exploration

individuals with a project or property

& Mining Convention is the leading

to display results and samples and

convention for people, companies and

connect with convention attendees.

organisations in, or connected with,

Click for website

mineral exploration. In addition to meeting 1,000+ exhibitors, 3,495 investors and over 25,000 attendees from 135 countries; technical sessions, short w w w.mi ni nggl o b a l. com


EVENTS & A S S O C I AT I O N S

25—26 MARCH 2019

27—29 MARCH 2019

Future of Mining Australia ResourceStocks [ SYDNEY, AUSTRALIA ] Sydney 2019 The Future of Mining will bring together

92

[ SYDNEY, AUSTRALIA ]

C-suite, Heads and Managers of Mine

This event builds on the success of gold,

Operations, METS and Support Services

silver, copper and energy and mineral

from top enterprises around the globe

digital investor hubs, to curate meetings

to debate, deliver answers and define

of investors and projects within the

the current and future mining landscape.

Precious Metals (Gold & Silver), Base

The event, in its second year, will address

Metals (Copper and Zinc) and Energy

the key strategic and operational ques-

Minerals (Lithium, Cobalt and Graphite)

tions that matter from project/operations

commodity groups around the world. A

level management through to the board-

combination of private investment meet-

room. Conceived to step away from the

ings, structured networking, interactive

traditional transactional conference

discussion groups and keynote

model, the organisers aim to provide

speeches, provides an exclusive oppor-

a transformational experience. Key

tunity for attendees to focus on the best

topics will include: disruption in mining;

global opportunities during the two-day

influencing change; value chain optimi-

event. Highlights include: How to iden-

sation- a holistic approach; game-

tify the best investment opportunities

changing equipment and innovation in

from across the globe via commodity

the supply chain.

case studies; how to take advantage

Click for website

of the practical investment strategies available to you and the implications of changing policy, laws and regulations.

Click for website

FEBRUARY 2019


93

15—16 APRIL 2019

Mining Tech South America [SANTIAGO, CHILE ] MiningTech South America welcomes

of the global mining recovery. With an

ministers, technology service provid-

innovative agenda and content, including

ers, geological surveys, exploring and

keynotes, interactive panel discussions,

operating mining companies, investors

interviews, roundtable sessions and

and key technology and production

spotlights; industry leaders will discuss

solution providers wanting to enter or

Automation and Robotics, IoT, AI, Cloud

expand their market presence to South

and Big Data and Smart Mining, Invest-

American mineral resources industry.

ment & Technology.

Expect to meet over 250 global attend-

Click for website

ees from more than 15 countries keen to learn more about the significant opportunities afforded by operations in Latin America primed to take advantage w w w.mi ni nggl o b a l. com


EVENTS & A S S O C I AT I O N S

94

17—19 APRIL 2019

Marrakesh Mining Convention [ MARRAKESH, MORROCCO ] The vision and concept behind the

scale. At this year’s inaugural event

Marrakesh Mining Convention (also

highlights will include: training master-

known as MMC) is to create a truly global

classes; country mining investment

platform by bringing together the mining

sessions; a mining CEO’s forum; B2B

ministries, geological research authori-

meetings and an international mining

ties and surveys, international mining

ministers summit.

and quarrying companies, service and

Click for website

technology providers, mining thinktanks and the consulting organisations under one roof to discuss and explore opportunities on a truly international FEBRUARY 2019


95

23—25 APRIL 2019

Mining World Russia 2019 [ MOSCOW, RUSSIA ] Mining World Russia is the most repre-

refining plants as well as wholesale

sentative international exhibition of

trading companies from across Russia’s

machines and equipment for the mining

industry. Heralded as the ‘Best Exhibition

and processing industry in Russia in

in Russia’ it will feature seminars on how

terms of composition of participants

to become a mining supplier of choice,

and visitors. Organised by The ITE

to conferences on IT and automation,

Group, it provides an efficient business

mineral deposit exploration technologies

platform for communication between

and future trends.

manufacturers and suppliers and

Click for website

experts in mining facilities, mining and w w w.mi ni nggl o b a l. com


SSR MINING

96

Technology and growth through operational excellence

WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

FEBRUARY 2019


CANADA

97

w w w.mi ni nggl o b a l. com


S S R M I N I N G ( S I LV E R S TA N D A R D R E S O U R C E S I N C . )

As SSR Mining embarks on a new digital future, operational excellence proves vital

A

fter more than 70 successful years of operation, exploration and development, SSR Mining (formerly Silver Standard

Resources) embarked on a journey to become an intermediate precious metals producer and one of the world’s leading premier mining companies. The 98

company currently has three mining operations, including the Marigold mine in Nevada, US, the Seabee Gold Operation in Saskatchewan, Canada and the 75% owned and operated Puna Operations joint venture in Jujuy Province, Argentina. SSR defines its existing and future success on strong exploration growth opportunities and operational excellence. It is the focus on operational excellence that will prove key, as SSR Mining’s existing and future success can be pinned on one crucial component – the development of its people. “The mining industry today needs to be more focused on continuous improvement and the best way to move forward is not necessarily through more capital, but better collaboration and more results with people,” explains Kevin O’Kane, Chief Operating Officer. “Personally, this is where I get FEBRUARY 2019


CANADA

99

w w w.mi ni nggl o b a l. com


Michelin Better Mining Driving value for your business

At Michelin, we provide our customers better mining solutions. From technologically advanced tires that optimize payload and productivity, to innovative services that improve uptime, we offer the solutions to drive your business. @MichelinTruck

Michelin Truck Tires

MichelinEarthmover.com Copyright Š 2019 Michelin North America, Inc. All rights reserved. The Michelin Man is a registered trademerk of Michelin North America, Inc.


CANADA

CLICK TO WATCH : SEABEE GOLD OPERATION 101 excited. I look at how an organisation

development as well as health and

can become more effective. One of the

safety. During his career, he gained a

challenges and opportunities in SSR, a

keen understanding on how to get peo-

company that’s been in operation for

ple to where they need to go through

over 70 years and made up of different

collaboration and the standardisation

cultures and experiences, is how can

of best practices. “I can see where the

we create collaboration and consist-

different operations are at different

ency in an effective way.”

points, or people within the operations

O’Kane was appointed COO in early

have different levels of understanding,

2018 and brought with him over 30

and I’ve had the opportunity to see how

years of industry experience across

that connects together.” he says.

Chile and Canada, having worked with

As SSR continues its growth journey,

BHP for most of his career. He has

O’ Kane believes it must do so with the

worked at all levels of operations,

aim of maintaining the agility of a

project development, business

smaller company and the key for it to w w w.mi ni nggl o b a l. com


S S R M I N I N G ( S I LV E R S TA N D A R D R E S O U R C E S I N C . )

“The mining industry today needs to be more focused on continuous improvement and the best way to move forward is not necessarily through more capital, but better collaboration and more results with people” — Kevin O’Kane Chief Operating Officer SSR Mining

achieve this is through collaboration, leadership and indeed, standardisation. This is where Operational Excellence comes to the fore and SSR established the role of Director of Operational Excellence to drive this focus. But what is a Director of Operational Excellence? “It’s a position based on asking questions. Where can we expand and add value, build on the ideas our people already have, shine the light on solutions, create an environment where we can challenge

102

FEBRUARY 2019


CANADA

the ways of thinking and due diligence”

transform operating models through

says Liezl van Wyk, Director Operation-

people, change management and

al Excellence with SSR. “It’s about

technology to unlock greater value.

creating different angles on problem

Technology, as it is in most modern

solving and bringing in a new wave of

industries, continues to be one of the

discussion. It’s about our commitment

biggest drivers of change and SSR is no

to safety while leveraging and empow-

different. Van Wyk is a firm believer of

ering our workforce.”

using data and the accessibility of that

Van Wyk is no stranger to Operation-

data to quantify Operational Excellence.

al Excellence, having spent the best

“One of the very first projects that I

part of her career looking at mining

oversaw was centred around becoming

operations and creating ways in which

more disciplined on data and starting to

businesses can enhance strategy and

increase the connectivity of our existing systems more,” she says. “Across the industry, businesses are becoming cloud based because it’s a very centralised platform in which you can access information from anywhere and make data available to whoever needs to consume it.” “We’re an asset-centric business, so all our decisions need to be around maximizing, optimizing and independently coordinating the flow of assets and how it hands over from one to the next.” To this end, SSR built the necessary internal infrastructure that would allow the business to shift to this cloud-based platform where it makes sense. As a small, mid-tier company, SSR couldn’t w w w.mi ni nggl o b a l. com


Here to help at every phase of your journey to operational excellence.

KOMATSUEQ.COM


CANADA

CLICK TO WATCH : MARIGOLD MINE OPERATION 105 outsource this implementation to con-

need to do is look at the whole value

sultants or technology vendors and so

chain, understand where our primary

this required a lean, targeted, fit-for-pur-

and secondary bottlenecks are, what

pose problem-solving approach from

the gaps are, against what good looks

Van Wyk and her team. Technology is all

like, and focus on those gaps,” he says.

well and good but it is the people, and

“It’s obvious, but it’s not always easy,

their capabilities, that ultimately turn

because when you’re somewhat of

potential into opportunity and value.

a personnel-driven organisation, you

O’Kane seconds this approach and

focus on areas that the senior people

speaks of how the company overcame

think are important, and that’s not

this challenge through leadership

necessarily always where the focus

and competency development

needs to be.

programmes for all levels of operation.

“I’m trying to focus on those so that

“Quite often, we focus on where we

when we sit down with the management

think the gaps are, and what we really

teams in each of the sites, we’re talking w w w.mi ni nggl o b a l. com


S S R M I N I N G ( S I LV E R S TA N D A R D R E S O U R C E S I N C . )

106

“We focus on the whole value chain. Quite often people focus only on the gaps they see. We need to understand where our primary and secondary bottlenecks are, what the gaps are, against what good looks like, and focus on those gaps from a value chain perspective” — Kevin O’Kane Chief Operating Officer SSR Mining

FEBRUARY 2019


CANADA

107

about where we’re going, and what the

operated for more than 70 years. Van

barriers are to us moving forward, to be

Wyk points to the one word that’s on

more effective. It’s an opportunity to

everybody’s lips in any organisation is

have interesting discussions about how

capital and the allocation of that capital.

you can determine where, in the value

Talk of change is all well and good but

chain, you need to focus management

eventually it’s going to come down to

attention, so you produce safer and

cost, timing and priority and how much

more productive results.”

is going to be needed to invest in this

The challenge then becomes one

change. Van Wyk acknowledges this

of implementing change, especially

and again the key is around people.

in a company that has successfully

The importance of educating company w w w.mi ni nggl o b a l. com


Proud strategic partners with:

Transwest Air and Northern Shield Helicopters are proud to support SSR with fixed wing and rotary services for their projects in Saskatchewan.

CHARTER 1-877-989-2677 RESERVATIONS 1-800-667-9356

Follow us on /transwestair

CLICK HERE TO SEE OUR SERVICES

transwestair.com | northernshieldhelicopters.ca

leaders in the value of what Operational

“I usually ask: Is it a tool or is it a toy?”

Excellence together with new technolo-

And to move the sentiment, this is not a

gies can bring is fundamental. She points

toy, it’s actually becoming a tool, so that

to a process of small-scale proof of

those biases of where we are going to

concepts (POCs) as being key to this

spend money are where we know we

conversation as it enables a willingness

will get value. One way to mitigate that

to experiment and change the way of

challenge or that risk is quick, small POCs,

thinking. “If you’re going to spend money

and showing where the risk sits and the

on drilling 100 exploration holes versus

willingness then to take it on or not.”

spending money on some kind of tech

These POCs prove fundamental in not

savvy data platform and tablet-based

only highlighting where Van Wyk and her

computing, you are more likely to spend

teams are making progress and driving

funds or invest capital on 100 exploration

change, but also in unlocking future

drilling holes if that’s always been the

growth. O’Kane points to the company’s

mindset of the company,” she says.

Marigold project as a shining example of

FEBRUARY 2019


CANADA

109

“It’s not just a singular problem you’re solving and in using Operational Excellence tools and a value-based approach to show the value, you can achieve many goals across all levels of the organization” — Liezl van Wyk Director of Operational Excellence SSR Mining

this. He notes that historically, SSR had focused solely on improving productivity at the mine; but by making great improvements in truck productivity and Operational Excellence it has allowed the company to look at the next bottleneck. Through the centralised system at Marigold, operators now have access to real-time analysis on site performance which allows them to take immediate action and move forward faster than ever before. SSR is also completing its first multiple drills automation project to significantly improve both drilling and blasting, but O’Kane is keen to stress it goes beyond simple productivity benefits. w w w.mi ni nggl o b a l. com


S S R M I N I N G ( S I LV E R S TA N D A R D R E S O U R C E S I N C . )

1946

Year founded

500+

Approximate number of employees 110

“That project is really about us learning how to do the automation

how they’ve implemented it.” This is echoed by Van Wyk, as she

journey, so we’ll be able to then take

feels that value is and will always be

what we’ve learned about how the

quantified at the business level by

organization adjusted to automating

shareholder returns and employee

equipment, to apply it to other equip-

engagement. “So, it’s the right an-

ment and this benefits safety,” he says.

swers at the right cost point and doing

“It has been accepted very well by

it very safely,” she says. “It’s not just a

the work-force, and the drillers, who

singular problem you’re solving and

you would think, if their equipment

in using Operational Excellence tools

is being automated, would be quite

and a value-based approach to show

resistant to it, but they’ve been a

the value, you can achieve many goals

great help. I think that’s a testimony

across all levels of the organization.”

to the management team there, in FEBRUARY 2019

“Our best ideas have come from all


CANADA

111

levels of the organization. We are

Operational Excellence has be-

proud of our employees. They are

come embedded into the company’s

the ones whom have taken onboard

very DNA but as Van Wyk highlights,

the OE approaches as part of their

Operational Excellence is all about

day to day considerations. They

continuous improvement. “I look in

have brought forward the safety

terms of opportunities that are out

improvement ideas, the cost savings

there, and things do change quite a

initiatives, the production improve-

lot, but the foundational aspects don’t

ments, the different angles on old

and these are what we build on,” she

problems. And we assisted with

says. “It’s a combination of building

the tools, the frameworks and the

on the foundational pieces as well

enablers. One needs trust, strong

as a culture of creativity and willing-

relationships, and great leader-

ness to try something. Learn fast, fail

ship to bring this all together.”

fast, make corrections, improve and w w w.mi ni nggl o b a l. com


S S R M I N I N G ( S I LV E R S TA N D A R D R E S O U R C E S I N C . )

112

FEBRUARY 2019


CANADA

bring back an improved product. We are finding better ways to operate every day” “That’s the world of Operational Excellence. The job’s never done.” As SSR continues its journey into a new future of operating, Operational Excellence will continue to define and redefine the way in which the company achieves success. The very definition of success for SSR is fluid, it could be additional assets to its existing portfolio or it could be increased capital, but as Van Wyk notes, the future will be one of unlocking the value that Operational Excellence can bring. “This is happening through our workforce’s understanding and contributions together

“Learn fast, fail fast, make corrections, improve and bring back an improved product. We are finding better ways to operate every day” — Liezl van Wyk Director of Operational Excellence SSR Mining

with management’s proactive challenging and support. We are on a journey to create value and enhance safety. As we grow from three operations, the impact and reward of the journey actually increases,” she says. “But Operational Excellence is not just projects. It is a combination of transactional projects, but also capability development, change management, foundational rollout, training, relationships and challenge. That’s why Operational Excellence is such a rewarding discipline to be in, because you have that whole spectrum to operate within.”

w w w.mi ni nggl o b a l. com

113


SWEDISH MINING AUTOMATION GROUP 114

PROMOTING DIGITAL TRANSFORMATION IN CANADA’S MINES WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DE ANE

FEBRUARY 2019


CANADA

115

w w w.mi ni nggl o b a l. com


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

116

Business Sweden, supported by its partners from the Swedish mining industry, has created SMAG to help the mining sector evolve into a more sustainable and innovative industry. We spoke to Project Manager and Mining Industry Advisor, Christian Orrego Silvander, to find out more

FEBRUARY 2019


CANADA

M

ining is often cited as one of the last remaining industries to be disrupted by technology, but that is changing quickly.

From driverless trucks to robotic drills, digitisation is quickly bringing a new measure of safety to mines. It’s also boosting the efficiency of how we obtain the precious minerals needed to make everything from modern cars to devices. In the coming years, mining automation is primed for explosive growth, and it seems that one Nordic country is set to be at the epicentre of it all. Sweden may be a small mining nation but when it comes to mining technology, it’s considered to be in a league of its own. Looking to collaborate and foster innovation in the mining sector, six Swedish mining technology firms have joined forces with Business Sweden to create the Swedish Mining Automation Group (SMAG). Formed just one year ago, SMAG is a collaborative ecosystem that plans to revolutionise mining, creating a more sustainable industry by innovating holistic solutions together with mining companies. Jointly owned by the Government of Sweden and representatives from the Swedish business community, Business Sweden works across an array of different industries but mining has proven to be a key area for optimism. One such person who helped to steer this new focus is Business Sweden’s Project Manager and Mining Industry w w w.mi ni nggl o b a l. com

117


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

Advisor Christian Orrego Silvander. He believes that this collaboration between Swedish automation groups and other global miners is a win-win partnership. “Our mission is to help Swedish companies grow internationally, as well as to attract foreign investments to Sweden,” Silvander explains. “Sweden has a long history of providing solutions to the mining industry and it’s quite famous for having some of the leading original equipment manufacturers (OEMs) in 118

mines. Today more than 50% of the technology used in underground mines comes from Sweden.” Ericsson, Eprioc, SKF, Mobilaris, Sentian Technologies and Scania Mining: the founding members of SMAG make for impressive reading, and in conjunction with Business Sweden, they plan to bring the latest industry know-how and technologies to mining regions across the globe. One such country where SMAG is leaving a lasting impression in is Canada. A force to be reckoned with on the mining stage, Canada is a country that is renowned for its mining heritage. Last year, the industry contributed CAN$72bn FEBRUARY 2019


CANADA

“SWEDEN HAS A LONG HISTORY OF PROVIDING SOLUTIONS TO THE MINING INDUSTRY AND IT’S QUITE FAMOUS FOR HAVING SOME OF THE LEADING ORIGINAL EQUIPMENT MANUFACTURERS (OEMS) IN MINES.” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

(US$54.8bn) to its GDP, according to Natural Resources Canada. As such, Business Sweden and SMAG decided to zero in on Canada as a key regional focus. “The reason we revived this focus on mining was due to the positive outlook on mineral prices as well as the environment here in Canada,” summarises Silvander. “The mining industry is also focusing greatly on creating a more sustainable and innovative future through industrial collaboration and this resonates quite well in Sweden. Even though we’re quite a small mining nation – we only have 15 active metals mines – we have a long history of innovating through collaboration. That aligns well with the vision of the w w w.mi ni nggl o b a l. com

119


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

CLICK TO WATCH : ‘SIMS MINING — THE HORIZON 2020 PROJECT’ 120 Canadian mining industry too, which is

don’t have a strategy for digitising or

hoping to become more sustainable

automating their mines, but rather they

and innovative.”

have a strategy to improve safety and

There’s a lot Canada can learn from

increase productivity,” Silvander explains.

Sweden, observes Silvander, citing

“For them, the best way to do that was

Swedish mining operators Boliden and

to use digital technology.” Looking at

LKAB as “amongst some of the most

connectivity, precision technology,

progressive in the world”. Both of these

stabilising processes and eliminating

companies have been early adopters

waste as well as implementing new

of digital and automation technology

mining methods, these mines have

but interestingly, Silvander points out

proven to be gleaming examples of the

that this isn’t about technology for

benefits of mining automation and this

technology’s sake it’s, first and foremost

technological prowess hasn’t gone

about safety, productivity and efficien-

unnoticed worldwide.

cy. “For example, Boliden said that they FEBRUARY 2019

“Recently, there’s been a lot of


CANADA

121

w w w.mi ni nggl o b a l. com


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

FA C T S

• Last year, the mining industry contributed CAN$72bn to Canada’s GDP, according to Natural Resources Canada

122

examples of different demonstration projects that have been done mainly in

with other leading mining nations.” Cross-country collaboration is at the

Sweden and Europe quite recently,”

core of SMAG’s mission and ethos. But

continues Silvander. “All of them have

how has the organisation managed to

a goal to create safe and efficient mines

bridge both a geographic and cultural

by implementing automation technology.

divide? “When we started this initiative,

But this shouldn’t only be on Swedish

we tried to connect with key mining

soil. This should be something that is

organisations, the ones that are driving

implemented internationally. For Sweden,

innovation within the industry. We

with a population less than 10 million

started working with these regional

that’s dependent on international

and national companies. We found out

collaboration, I see this as a very good

their needs, how they operate, and how

opportunity for us to be the one who’s

we can collaborate with them because

leading the development but together

we all more or less have the same

FEBRUARY 2019


CANADA

ambition of transforming the industry to make it more sustainable.” By analysing the individual needs of mining operators and disseminating the ‘Swedish mining model’, SMAG has the ambition to help Canadian miners navigate their long-term roadmaps to digitise and automate their mines but, perhaps more importantly, they are also lowering the barriers between suppliers and mining companies to foster cooperation and future innovation. “With SMAG, we’re trying to foster a co-development culture and lower

E X E C U T I V E P R OF IL E

Christian Orrego Silvander Management consultant with passion for innovation, strategy and collaboration. Strong communicator with expertise in conceptualizing business ideas and pitching technology solutions. In depth experience of business development and internationalization of tech companies and start-ups in industries such as mining, healthcare, biotech, and cleantech. Currently leading the Swedish Mining Innovation Group (SMAG) with six leading mining suppliers with the intention to enable holistic solution within mining through cooperation with mining companies. In addition establishing strategic alliances with Canadian stakeholders with the objective to establish a mining collaboration platform between Sweden and Canada. w w w.mi ni nggl o b a l. com

123


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

the variant between vendors and

they’re very keen to transform the

mining that can really be learned

industry. But I think by allocation

from Sweden,” observes Silvander.

more resources to trying innovative

“The Canadian Mining industry has

solution in the mine rather than

created solid roadmaps for innova-

establishing new roadmaps for them,

tion but there is a need to convert

will accelerate the transformation.

them to actions. Most of the industry

That is really what I see as the missing

also have innovation managers so

link to this puzzle. I think they are

124

FEBRUARY 2019


CANADA

“TODAY MORE THAN 50% OF THE TECHNOLOGY USED IN UNDERGROUND MINES COMES FROM SWEDEN” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

125

w w w.mi ni nggl o b a l. com


True digitalization of underground mines, enabling doubledigit productivity increases AND safety improvements.

Real-time Situational Awareness

Ventilation On Demand

Fix those low hanging fruits that waste time and lower face utilization.

We let the presence of machines control the ventilation which is very fast to setup remotely.

Short Interval Control

Emergency Evacuation

From just being monitoring to become operational and able to replan during a shift.

Save lives by shorten the time to evacuate the mine in the case of an emergency.

Optimized Machine Utilization

Mass Localization

Analyze integrated machine data vs plan to optimize your machine utilization.

Another low hanging fruit that locates equipment in a very cost-efficient way.

Traffic Awareness

Improvements by Analytics

Minimizing traffic congestions and make your transports smooth and safe.

Enables you to continuously monitor the face utilization outcome and track productivity.

www.mobilaris.se/mce


CANADA

127

going in the right direction and SMAG

munication company that offers mine

could definitely help with this challenge.”

connectivity and today, they’re deploy-

How to meet the demands of Industry

ing 5G technology which could be an

4.0 is one of the most pressing ques-

innovative way forward for mines in

tions for mining operators today. By

Canada. We also have one of the most

working with a rich ecosystem of holistic

prominent OEMs, Epiroc, who when it

solutions rather than single products,

comes to the automation of equipment

SMAG believes it provides a unique

or meeting KPIs in underground mines,

solution. “This way of working together

they are one of the firms leading the way.”

with a group, as opposed to one vendor

Other members of the ecosystem

is a very new concept, especially in the

include Mobilaris, which provides critical

mining industry,” asserts Silvander.

decision support for production

“There’s also a mix of different compa-

efficiency and safety. “They’re very

nies. Take, Ericsson: they’re a telecom-

prominent in the mining intelligence w w w.mi ni nggl o b a l. com


S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

480+

Number of Business Sweden employees

2017

Year founded

53

Number of offices around the world

128

“THIS WAY OF WORKING TOGETHER WITH A GROUP, AS OPPOSED TO ONE VENDOR IS A VERY NEW CONCEPT, ESPECIALLY IN THE MINING INDUSTRY” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

FEBRUARY 2019

area and are developing tools for positioning and enabling real-time short-interval control,” highlights Silvander. Sentian Technologies has also played a key role in this ecosystem, standing as a company with a long background in AI. Additionally, Scania Mining, which Silvander says “provides fleet management and mine site optimisation by applying lean manufacturing principles” has gotten onboard


CANADA

129

alongside SKF, which has been in

is eyeing up further opportunities in

Canada for over 100 years and are

mining hubs like Australia and Chile.

experts in rotating machinery, reliability

“We have an ambition to go global,�

and offer advanced data analytics

he says brightly.

and predictive maintenance. Looking forward, Silvander is keen to include more suppliers in this ecosystem and

w w w.mi ni nggl o b a l. com


ICKET T R U O Y K O BO st ry by 31 Janua % and SAVE 15 e: FMA15 Apply promo

25-26 March 2019

cod

Sofitel Sydney Wentworth Sydney, Australia

Meet the industry leaders who shape the Future of Mining

Jake Klein

Chief Executive Officer Evolution Mining

Friska Wirya

Ricus Grimbeek

Change Lead - Digital Newcrest Mining

Chief Operating Officer North Atlantic Operations and Asian Refineries, Vale Based Metals

Penny Stewart

Managing Director PETRA Data Science

been g Event has in in M f o re iroc. “The Futu rience for Ep e p x e g in y rd a rewa t the industr a h w e e s to .� It enables us mining to be f o re tu fu e foresees th e Manager Business Lin alia Epiroc Austr

Platinum Partners:

Supported by:

Gold Partners:

Silver Partners:

Start-Up Partners:

For the latest agenda and to register visit australia.future-of-mining.com or email events@aspermontmedia.com

Profile for Mining Global

Mining Global - February 2019  

Mining Global - February 2019