Mining Global — November 2018

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SIRIUS MINERALS

SUSTAINABLE EXCELLENCE IN MINING

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LlamaZOO

Disrupting data with 3D mines

Enabling the future of mining Walter Valery, Global Director, talks unlocking opportunity and cost savings through innovative technology

World Coal Association

‘Demand for coal is stronger than ever’

TOP 10

MINING TRENDS FOR 2019

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WELCOME

H

ello and welcome to the November issue of Mining Global Magazine!

Our cover star this month is Hatch.

With over six decades of business and technical expertise in the mining sector, Walter Valery, Global Director Consulting, discusses how smart and strategic partnerships with industry leaders and institutes will further foster and enable innovative thinking in today’s mines to solve tomorrow’s problems.

We also speak with Sirius Minerals and how, through sustainable design excellence, the company’s $4.2bn Woodsmith Mine will completely disrupt the very idea of sustainability in mining and reintroduce the UK onto the global mining stage.

Our other star is Anaconda Mining and how the company drives growth through people and partnerships as it continues to digitally transform

its gold mining portfolio in the highly prospective jurisdictions across Canada.

We find out how LlamaZOO is changing the perception of data through revolutionary 3D visualisation solutions.

With a perception that coal is on the way out as an energy source, emerging economies across Asia and Africa identify it as a key contributor to future energy demands; we speak with the World Coal Association.

As 2018 draws to a close, what does the current mining industry look like as we head into 2019? Our top 10 this month asks industry leaders to tell us the ten key trends that the industry is facing both now, and in the future.

Enjoy the issue!

Dale Benton. dale.benton@bizclikmedia.com

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05

CONTENTS

Enabling the mining of the future through the technology of today

10

30

52

THE FUTURE OF THE COAL INDUSTRY

Top 10 mining trends for 2019

LlamaZoo

Changing the perception of data in the

40

66 Events

CONTENTS

70 Sirius Minerals

88 AEX Gold

104 Dundee Precious Metals

120

134

Coal Services

Goldcorp

148

166

Anaconda Mining

MDESS - GCO Contractors

10

Enabling the mining of the future through the technology of today WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

A S I A PA C I F I C

11

H AT C H

Hatch empowers the mining industry to embrace technology to save cost, unlock opportunity, and improve sustainability

H

istorically perceived as being slow to adapt to technology and change, the mining sector is undergoing

a major transformation. Companies have often cut costs to increase profitability, but 12

these companies are now under increasing pressure to reduce costs and increase productivity in a sustainable manner.

“We have seen environmental and social impacts in greenfield projects and related costs into all phases of the life cycle of mining operations. We can no longer focus exclusively on the economic aspects of the business,” says Walter Valery, Global Director Consulting at Hatch - providers of engineering, technology, and full end-to-end solutions to the metals, energy, infrastructure, digital, and investments market sectors.

“We need to find and apply technical solutions for reducing water, energy consumption, and greenhouse gas emissions, while enhancing business and financial performance.”

NOVEMBER 2018

A S I A PA C I F I C

The industry is cyclical in nature, representing a key driver of change and indeed a pressure on companies to derive greater value and cost efficiencies wherever possible. Throughout his career, Valery has played a key role in elevating and running technology and technical consulting at high, strategic levels within corporations; and worked closely with colleagues in mergers and acquisitions, business improvement, and financial areas.

This, he feels, has provided him with a unique understanding of the market and where companies are looking to

“ We have seen environmental and social impacts in greenfield projects and related costs into all phases of the life cycle of mining operations� — Walter Valery, Global Director, Hatch

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13

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A S I A PA C I F I C

“ Companies will not be able to afford to sit still waiting for someone else to develop a single solution for current and future challenges” — Walter Valery, Global Director, Hatch

invest, and how they choose to do so.

“I’ve built and worked with teams of credible and well recognised specialists in the industry, allowing us to establish strong links with clients, understand their needs, provide solutions and, in many cases, assist them with decision making,” he adds. “Partnering with clients through consulting and technology will lead to novel solutions through the generation of new ideas and innovations, ultimately leading to our clients’ success.”

15

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

Dr. Walter Valery is a global director at Hatch who specializes in mining and minerals processing with over 30 years of experience in plant operation, research and development, technology, consulting, senior management, and executive roles. In addition to developing, managing, and directing technology and innovation, Walter is a recognized specialist in comminution and “mine to mill” optimization, having conducted optimization of mining and minerals processing operations, greenfield design, expansions, throughput forecasting, geometallurgical modelling, and asset optimization around the world. He has worked on the development of resource and eco-efficient mining and minerals processing plants and is director of AMIRA International and Adjunct Professor at the University of Queensland.

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H AT C H

Optimization Project and Training at Batu Hijau, Indonesia, 2016

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A S I A PA C I F I C

17 Companies are looking for smart, strategic partnerships, and new ways to deploy capital. Hatch has an Advisory group specialised in market studies, strategic development, business improvement, and operational readiness to enable clients to achieve the full potential of both new and existing assets.

“Additionally, we are expanding the reach of our investment activities and leveraging our deep, technical insight to identify opportunities that others miss.”

The alignment between engineering, technology, consulting, and digital

“ Partnering with clients through consulting and technology will lead to novel solutions, through the generation of new ideas and innovations, ultimately leading to our clients’ success” — Walter Valery, Global Director, Hatch

capabilities in the company is something w w w.mi ni nggl o b a l. com

H AT C H

that Valery considers a key differentiator between Hatch and any other company that works with the mining industry. “The combination of technical specialists and engineers from different fields and cultures also ensures delivery of the most advanced solutions in brownfield and greenfield projects,� says Valery.

In his role as global director, Valery has global responsibility for consulting in mining and minerals processing, as well as minerals processing engineering projects in the Australia and Asia

Newcrest Lihir, Papua New Guinea, 2017

A S I A PA C I F I C

CLICK TO WATCH : ‘NEW ERA’ 19

MMG Las Bambas Operation, Peru, 2016

region. This allows Hatch to combine the learnings obtained from optimization consulting (brownfield projects) with technology development, and rapidly implement them in greenfield design and expansion projects.

At the very core of delivering value to its clients is sustainability.

“In both our consulting optimization and engineering projects, our team proposes innovative resource and eco-efficient mining and processing practices, from mine to plant, to increase overall profitability and reduce environmental impact, thus delivering ‘positive change’ for our customers and establishing w w w.mi ni nggl o b a l. com

H AT C H

long standing relationships,” he says.

“Aligning with Hatch’s strategy, we embrace our clients’ visions as our own, and work closely together, as partners, to develop better solutions that are smarter, more efficient, and innovative.”

Working with technology in the mining industry requires a key understanding that there is no one-size-fitsall solution. Valery recognises that there are a number of factors that make each operation unique. Be it different orebody and ore types, geographical location, local environ20

mental factors, local politics, economic climate, company culture, market fluctuations, existing equipment, and processes, or even historical practices.

A successful mine-to-process optimization demands a very good understanding of many of these.

“Extensive data collection and analysis, mathematical modelling, and simulation techniques combined with extensive industrial experience are required to identify solutions tailored to each operation,” says Valery.

There is an industry-wide challenge surrounding new orebodies discovered near the surface, as the majority of exploration drilling and expenses still NOVEMBER 2018

150

Countries worldwide

1955

Year founded

9,000

Approximate number of employees

A S I A PA C I F I C

Over 400 optimization projects globally

occur at these depths. These new deposits have typically lower grades, more complex mineralogy, and are increasingly more difficult to treat. For these, the question becomes: How do we extract the resource efficiently and profitably? “We are working with many clients, suppliers, and technology partners to develop and utilise more efficient technologies to extract valuable minerals more economically and with less environmental impact,� says Valery.

To this end, Hatch has been developing and working on projects to implement concepts to increase resource and eco-efficiency in the industry. These solutions may incorporate a number of alternative operating strategies in the mine and processing plants and new circuit flowsheets; in most cases, using existing or relatively easily-adapted technologies for implementation in the short term. “We consider integration of mine and plant design with a range of possibilities and opportunities, such as high intensity and selective blasting; early waste-rejection through pre-concentration including sensor-based ore sorting; energy efficient comminution technologies including high-pressure w w w.mi ni nggl o b a l. com

21

H AT C H

22

Polyus Blagodatnoye, Siberia, 2017 grinding rolls and stirred mills; coarser

the industrialisation of developing nations.

flotation/separation processes, less

“If past discovery rates and sizes

water and generation of less tailings,”

are a guide, this demand is unlikely

says Valery.

to be met. Therefore, it is necessary

“While we work on how to extract value

to search elsewhere, in places that

economically and sustainably from these

have not been searched before; that

orebodies, the next obvious challenge

is, at greater depths on land and in

is how to find additional ‘Tier One’

the oceans,” he says.

orebodies that are long-life and have

“There are some initiatives underway,

high grades.” These Tier One orebodies

but there should be a lot more work

will prove crucial to meet the growing

and faster development in these areas

demand for resources in the next decade

if we are to meet the demand for mined

resulting from a growing population and

resources in the near future.”

NOVEMBER 2018

A S I A PA C I F I C

23

Another challenge is one of fostering change at the actual mine sites, working with the mine and plant operators to embrace a newer model of operating.

Historically, it was commonplace at a mine site to see mining engineers barely speaking to their colleagues in the processing plant. It was also very common to see the mine managing its costs and KPIs to deliver certain volume with certain grade to ‘their customer’, the downstream processing plant.

The result? Both mine and plant

“ If past discovery rates and sizes are a guide,this demand is unlikely to be met. Therefore, it is necessary to search elsewhere,in places that have not been searched before” — Walter Valery, Global Director, Hatch

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

H AT C H

spending significant effort, time, and money to run and optimise their operations in isolation. The challenge then becomes one of cultural change.

The technical aspects of integration and optimization of the entire production chain in a mining operation are relatively easy compared to the cultural changes required,” says Valery.

“The solutions are not standard and need to be tailored to suit each operation, as well as its people and culture.

To be successful and maintained in the long term, any implementation will need the operation’s people to ‘buy in’ and be motivat24

ed and incentivised to change. This can be facilitated by knowledge transfer: providing training and education in what we are changing and why it works.”

Throughout his career, Valery has set up technology centres all around the world, which further foster and enable innovative thinking across the industry. Valery is also a board director at AMIRA International, an independent global member-based organisation of mining and supplier companies, and an adjunct professor at the Sustainable Minerals Institute and School of Earth and Environmental Science at the University of Queensland.

“Greater idea generation and execution comes from large networks of leading NOVEMBER 2018

Polyus Verninskiy, Siberia Polyus Gold Blagodatnoye, Siberia, 2017

A S I A PA C I F I C

25

researchers and industry experts with varying backgrounds and experience, and collaboration with technology and research centres are essential,� he says. “Working closely with and supporting the education sector further demonstrates how collaboration will continue to play a key role in answering the challenges of today and tomorrow.

A very good example is the collaboration with the Sustainable Minerals Institute at the University of Queensland in Australia.�

Looking to the future, the best practices and the innovative thinking of today will need to change as the industry continues to evolve. w w w.mi ni nggl o b a l. com

H AT C H

“ Working closely with and supporting the education sector further demonstrates how collaboration will continue to play a key role in answering the challenges of today and tomorrow” 26

— Walter Valery, Global Director, Hatch

Understanding this continuously

“There is nothing futuristic about

changing landscape will prove crucial

these solutions: they are well known

in order to continue to operate in the

and have been extensively discussed

industry and not fall behind.

for more than ten years,” he says.“They

Valery observes that some recent

have been adapted from other indus-

industry discussions are not based on

tries for a few large mining operations.”

a technical understanding or insight into

In the mining of the near future, it

the mining industry today or in the future.

will be crucial to utilise more efficient

For example, the conversation surround-

technologies to extract valuable minerals

ing automation of mining trucks and

more economically and with less environ-

remote operation and control centres is

mental impact.

not actually presenting anything new.

NOVEMBER 2018

The industry will need to utilise people

A S I A PA C I F I C

27

Lumina Caserones, Chile (and their energy) by adapting and

develop a single solution for current

training them to acquire the skills

and future challenges,” says Valery.

required by the mining industry, thus

“Rather, they are already engaging

creating local jobs, supporting regional

with suppliers, service and technology

development, and building more

providers to use the best of technol-

sustainable mining communities.

ogy and engineering to develop

Hatch is well positioned to continue

tailored solutions.”

to bring together industry professionals, technologists, and education sectors to enable this industry change.

“Companies will not be able to afford to sit still waiting for someone else to w w w.mi ni nggl o b a l. com

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

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LEADERSHIP

30

THE FUTURE OF THE COAL INDUSTRY

A perception that coal is on the way out has grown over recent years, but with emerging economies across Asia and Africa citing coal as a key contributor, the World Coal Association believes the commodity is stronger than ever before WRITTEN BY

NOVEMBER 2018

DA LE BENTON

31

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

LEADERSHIP

E

arlier this year, one of the world’s leading mining companies announced that it was to end its assoc-

iation with an international coal lobby

group, citing ‘material differences’ and a ‘narrow range of activities of benefit’.

Given that this was BHP Billiton, the world’s largest exporter of coal for steel making, cutting its ties with the World Coal Association (WCA), one could be forgiven for thinking this would have a major impact on both the coal industry and on the WCA itself. Add to this news that a number of 32

major companies including Rio Tinto and BHP Billiton have sold off most of their coal assets, what does this mean for coal?

Are we going to see the end of coal as a major resource?

“We see coal as being a vital, strategic and economic resource for the world because today, cIose to 40% of the world’s electricity comes from coal,” says Benjamin Sporton, former Chief Executive of WCA, speaking to us earlier this year as his tenure comes to an end. “It’s still a very important part of making steel and cement and other products as well. So, it’s a critical strategic and economic resource, particularly in developing an emerging economy.”

NOVEMBER 2018

33

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LEADERSHIP

Sporton immediately addresses the selling of coal assets. “With these major companies selling their coal assets, don’t look at it from the perspective of ‘backing away’ from coal,” he says.

“These companies sold these assets for huge prices. For an industry that some say is on its way out, I think that actually shows an industry that is incredibly strong.”

The WCA is the global network for the coal industry, striving to demonstrate and gain acceptance for the fundamental role coal can and will play 34

in achieving a sustainable, lower carbon energy future. In a time where the eyes of the world are constantly looking at ways of reducing the carbon footprint, forcing some companies to move away from coal, the important role that the WCA plays is as crucial as ever before.

Sporton recognises that the coal industry is often dominated, and often overshadowed, by the conversation of climate change. In effect, this is what drives WCA. “It’s about obtaining those strategic benefits of coal while addressing the environmental challenges that come with it,” he says. “By looking at how

NOVEMBER 2018

“ These companies sold these assets for huge prices. For an industry that some say is on its way out, I think that actually shows an industry that is incredibly strong” — Benjamin Sporton, former Chief Executive of WCA

CLICK TO WATCH : ‘WE CANNOT WISH COAL OUT OF THE ENERGY MIX’ 35 technology can reduce the environ-

over the last decade and Sporton

mental impact, we want to end up in

notes this has impacted the way that

a place where we can use coal and

WCA has adapted its key messaging.

don’t have the consequences that have

“Progress is being made on CCS,” he

traditionally come with it.”

says. “Good progress too, but the

Technology is the key driver in

technology story is only at the begin-

getting to that scenario and the

ning and will continue to grow im-

WCA works extremely close in better

mensely over the coming years.”

understanding and implementing

So how does the WCA work with

high efficiency, low emission (HELE)

the industry to influence and help

coal technologies and carbon capture

define this conversation? There are

and storage (CCS) solutions.

four core strategic objectives that

The technology conversation surrounding coal has changed significantly

shape the organization: influence and engaging; powering economies;

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

LEADERSHIP

“It’s about obtaining those strategic benefits of coal while addressing the environmental challenges that come with it” — Benjamin Sporton, former Chief Executive of WCA 36

meeting environmental challenges;

connections they need with the likes of

and building sustainable societies.

the UN or government associations in

Membership to the WCA is open to

order to make a greater impact to the

companies and not-for-profit organisa-

coal conversation. “A lot of our work is

tions with a stake in the future of coal

engaging at a strategic level with those

all over the world, so the WCA has

sorts of organisations, or international

a responsibility to connect the mem-

governments, for our members in

bers across its network to the UN, or

a way they can’t do, or wouldn’t do, on

regional associations and create

their own,” he says.

greater collaboration all over the world.

Sporton, having been with the WCA

“We work to be far more outwardfacing for our members than necessar-

since 2010, has seen first hand that

ily facing back towards our members.

companies in the industry lack the

WCA coordinates amongst members

NOVEMBER 2018

37

on approaches to things like low-emis-

WCA acts a bridge connecting

sions coal technology, helping them

member companies across Asia and

link up with other international bodies

even Australia to learn and understand

or organisations they should be

how the deployment of low emissions

working with.�

coal technology can better support the

An example of this in practice can be seen with the WCA’s work with ASEAN

implementation of those strategies.

The key challenge with coal is

Centre for Energy (ACE), in Indonesia.

a challenge of perception and for some

The ACE accelerates energy strategies

there is a belief that companies choo-

and policy across 10 ASSEAN member

sing to exit coal shows that there is no

states that are in harmony with the

future. The World Bank in recent years

economic growth and environmental

has warned against new coal power

sustainability of the region.

plants. This is where the connection w w w.mi ni nggl o b a l. com

LEADERSHIP

with Asia, as well as Africa, proves key.

Sporton notes that the world, while focusing on climate change, should not disregard these emerging economies and the role coal will play in this emergence. “There are those in the industry that think it’s on the way out,” he says.

“But then you look at Asia and Africa – they recognise that coal is key to the growth of their economies and so we have to stimulate that conversation and work out a way forward.

“These countries need financing 38

from organisations like that of The World Bank to be able to afford the best technologies that reduce carbon emissions. Our challenge is to continue to open those doors, change the perception of coal and show that it can be in fact a key contributor to that low carbon economy.”

It hasn’t all been hurdles and obstacles in the path to changing this perception of coal. Sporton can point to some key milestones representing an industry ready to change. A key turning point for him was the lead up to the Paris Agreement. WCA worked with countries that have identified coal as key to their

NOVEMBER 2018

future growth in order to implement technology and CCS into their Paris Agreement pledges.

“While these countries are looking at coal in the future, we looked at how they can consider these technologies and drive down emissions today,” says Sporton. “In the end, countries such as China, Japan, Indonesia and Nigeria all included technology within their pledges.

Technology was recognised on such an international level… for me that’s quite an achievement.”

In July, Sporton stepped down as Chief Executive, moving to head up the Global Cement and Concrete Association. But speaking to us prior to his resignation, he was still keen to look at the role WCA will continue to play in the future of coal. “What the WCA will always do is represent our industry,” he says. “WCA has a positive story to tell about the contribution the coal industry makes, both now and in the future.”

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

39

TECHNOLOGY

Changing the perception of data in the 40

Hentur sum ipsapero et es andendant que et aut mi, temut With a history rooted in the gaming es exerrovid mi, qui bea industry, LlamaZOO brings commolut et apienecepti que the of 3D data corerumdisruptive hil idus, innovation torecti busape visualization to the mining stage non con perrovidio WRITTEN BY

NOVEMBER 2018

DA LE BENTON

41

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

TECHNOLOGY

H

istorically speaking, the mining industry has often fallen behind other industry sectors when it comes

to embracing technology and innovation.

In recent years however, the technology conversation has begun to change with the implementation of drone technology, data analytics and machine learning and most significantly – 3D mine mapping technology.

The key to this shifting landscape lies in partnering with innovators, entrepreneurs and technology developers from all over the world and combining technology solutions

42

with real-world industry challenges. With some of the world’s largest mining companies, including GoldCorp, Teck and Barrick, investing in and striking partnerships with technology providers over recent years, the industry is well and truly beginning to embrace innovation.

“Traditionally speaking, the mining industry has never really been littered with first adopters. Mining has been a certain way since forever,” says Charles Lavigne CEO & Co-Founder of LlamaZOO. “There is only so much value in operational efficiency that you can derive from grinding and extracting and processing, you have to take a leap of faith.”

“Technology is that leap of faith.

NOVEMBER 2018

W H AT ’ S IN A N A ME ?

It’s a homage to our roots and to our forebears. Back in the 1980s a lot of computer scientists and developers that wrote the programs from the games that we grew up on, had this quirky obsession with llamas. I don’t know if that’s necessarily because there were llama farms around the universities, which is a common occurrence in California and elsewhere in the world, but these creatures are kind of majestic but they’re funny looking and so this obsession kind of built back then.

Those programmers and developers inserted quirky jokes and references to llamas with ‘easter eggs’ in the games. We grew up with that and wanted to pay homage to them and have that as kind of the icon, the symbol of what is the potential in the future.

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

43

TECHNOLOGY

By implementing game changing technologies the industry can unlock true value that will set companies apart from their peers.”

Founded in 2014 by Charles Lavigne and Kevin Oke, two self-professed video game industry veterans, LlamaZOO was born out of a vision to take their expertise in building highly engaging, interactive and large-scale 3D experiences, and use it to create solutions for real-world challenges.

What it’s really about is big data and 44

big data needs to be visualized, be better understood and needs to be analysed using AI and machine learning to be better processed and derive better insights and actionable data from it,” says Lavigne. “When you start layering in live data from IOT sensors everywhere, you start being able to paint a broader picture and a clearer picture of the operating conditions and parameters of a site or a facility or an asset, and then when you visualize it, you create this amazing digital twin, that can reflect a one to one in a geospatial temporal sense of what is actually happening and what is the historical representation of what has happened.”

NOVEMBER 2018

“ I’ve got to say the one part about my job that I love the most is getting people to try these new technologies and seeing and understanding the potential and the value that it can bring to their organization just by trying it” — Charles Lavigne, CEO & Co-Founder of LlamaZOO

CLICK TO WATCH : ‘MINELIFE VR – VIRTUAL REALITY MINE SITE PLANNING, LLAMAZOO INTERACTIVE’ 45 On the face it and when it’s broken down as such, the value of LlamaZOO’s technology is easy to see, but as an industry that has long been slow to wake up to technology innovation there lies a culture of risk avoidance. After all, investing in technology can be a costly venture and were that technology to fail, those costs will only continue to rise.

This is something that Lavigne has witnessed first-hand, particularly when meeting with companies and pitching LlamaZOO’s innovative technology to them. He feels that as companies demand to see credible use cases and case studies to highlight the return of investment (ROI) then it loses its right to be w w w.mi ni nggl o b a l. com

TECHNOLOGY

called a disruptive technology. The risk then, lies not within the technology itself, the risk comes from not investing at all.

“Some larger companies have already taken that risk and so they’re already going be a year ahead or two years ahead of you,” he says. “The question has changed. It’s not can we afford to spend or should we spend this quarter or half a million dollars of our budget on

“ There is only so much value in operational efficiency that you can derive from grinding and extracting and processing, you have to take a leap of faith” — Charles Lavigne, CEO & Co-Founder of LlamaZOO

this technology, it’s can we afford not to?”

One such technology solution, is MineLife VR – an innovative system 46

that fuses complex geospatial and mine planning data with IoT data into an interactive, life-sized virtual replica of the planned, current, and future states of a mine site.

“MineLife VR is really collection of the

a partnership Maptek, a leading provider of innovative software,

exploration data, planning data and

hardware and services to the mining

collection all of the extraction and ore

industry. Through a collaborative effort,

calculation and profitability model data,

LlamaZoo and Maptek will combine

as well as engineering data and opera-

expertise to bring digital twinning and

tional data,” says Lavigne. “Then bringing

advanced 3D data visualisation to go

it all together in one central repository

to market with customers. .

that can be accessed by all stakeholders,

Maptek is but one example of the key

both internally and externally, to acceler-

partnerships that LlamaZOO has

ate their understanding of a project.”

struck with industry leaders, which

In summer 2018, LlamaZOO announced that it had entered into NOVEMBER 2018

include Barrick, Teck Resources and Goldcorp and Lavigne feels that

47

through these partnerships innovative

We’re talking about a few thousand

technology will begin to have a ‘trickle’

dollars to access the technology, that

effect. With larger industry players

eventually it’s going to become ubiqui-

implementing and utilising cutting-

tous. Working with the industry is open

edge technologies, these same

ended,” says Lavigne.

technologies will become more and

“They want to work with everyone.

more accessible industrywide. As the

They want to work with all the integra-

demand for these technologies grow,

tors, with all the suppliers and work up

the technology itself will both evolve

and down the value chain.”

and mature, LlamaZOO will avoid the

“Our approach is not to build a closed

traditional closed system models that

system and I think that is very much

are often evident in technology solutions

exemplified in our early partnership

providers. “It’s already very accessible.

with Maptek and working with a number w w w.mi ni nggl o b a l. com

TECHNOLOGY

of partners including IBM, Microsoft and Amazon, so the multi-cloud compatible cloud service providers.

It’s those integrations across all of these service providers and solutions providers that make the technology more accessible to everybody.”

The world has changed dramatically, and technology is to blame. As the mining industry plays catch up, there is a pressing issue that has to be addressed. The industry is currently at a critical point as the result of a generation gap that’s about to happen. Over 48

the next five years, there is close to 60% of the entire global mining workforce looking to retire. How the industry handles the transfer of knowledge to the younger next generation of mining professionals will ultimately prove crucial in ensuring that the industry continues to grow and to innovate.

To that end, LlamaZoo works with the University of Saskatchewan to enable and develop the future generation of mining technologists. Coming from a gaming background, Lavigne believes that there is already a world of technology enabled future professionals, they just need the platform to unlock their creativity. “You have NOVEMBER 2018

21

Number of employees

201

Year founded

2018

Finalists for Goldcorp #DisruptMining

decades of subject matter expertise and knowledge that needs to be transferred to the younger generation,” he says.

“They are our main client and they are better enabled by technology. This generation of client has grown up with a lot of this technology already, whether it’s from playing video games to having high powered laptops and computers with accessibility to the internet.”

“We need that kind of crossover, that bridging of technology that will allow those communication barriers to be driven down for that knowledge transfer to happen more seamlessly.”

Despite the shifting paradigm, the mining industry still has a long way to go before it becomes truly technologically enabled. But through companies like LlamaZoo, the paradigm shift is in full force. Lavigne believes that the company can and will become the number one solutions provider of a complete 3D operating picture of a mine site. As technology continues to evolve, so too will LlamaZOO, providing solutions that are able to capture even more data that can create a fully holistic picture from operation right through to investment. w w w.mi ni nggl o b a l. com

49

TECHNOLOGY

50

In order to get there though, Lavigne admits that there is and will continue to be a natural sense of scepticism across the industry. Especially when the company looking to bridge the gap is rooted in gaming technology.

“If you look at the last 20 or 30 years at a lot of ground-breaking technology, it’s video games that have pushed all of these areas of research and development forward to where we are today. it takes a bit of time to kind of educate, inform or fade away that scepticism and NOVEMBER 2018

“ If you look at the last 20 or 30 years at a lot of ground-breaking, it’s video games that have pushed all of these areas of research and development forward to where we are today” — Charles Lavigne, CEO & Co-Founder of LlamaZOO

51

that’s really where we spend the first

and the value that it can bring to their

few moments of our engagements

organization just by trying it. The first

with clients,” he says.

time you put on a Microsoft HoloLens ,

Having worked with innovative technology throughout his whole

it changes your world,” he says.

“It completely redefines how you can

career, Lavigne remains as passionate

perceive data and it makes you realize

as ever about the incredibly powerful

that we actually live in a 3D world.”

tools at his disposal and how they can unlock value like never before.

“I’ve got to say the one part about my job that I love the most is getting people to try these new technologies and seeing and understanding the potential w w w.mi ni nggl o b a l. com

T O P 10

52

NOVEMBER 2018

Top 10 mining trends for 2019 With 2018 drawing to a close, Mining Global looks at ten trends facing the industry in 2019, as told by industry leaders WRITTEN BY

DALE BENTON

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

53

T O P 10

10

Comeback of exploration In 2017 global exploration budgets increased (up 15% from 2016, the lowest exploration spend since 2005), an uptick that will continue into 2019.

Growth and development are back on the agenda.

The structure of who is leading exploration has shifted, with majors being responsible for the uptick as they struggle to build their pipeline of future growth, in many cases with decreasing grades and ore depletion in current operations.

As this trend accelerates, there will be more competition for key resources and it’s key 54

that miners maintain a disciplined approach to their exploration strategy.

Agustin Costa, Partner at The Boston Consulting Group

NOVEMBER 2018

09

55

Acceleration into digital A side-effect of stabilizing commodity prices is that mining is ready to accelerate into digital, boosting the use of IoT, Industry 4.0 technologies and leveraging AI and operational data. Many miners have started implementing Machine Learning in operations to optimize throughput in processing plants, predict and prevent equipment failures and refine operating parameters. As the benefits become evident there will be more use cases and broader adoption of these techniques as well as escalation and industrialization of the pilots and trials that initiated its application in 2017 and 2018.

Agustin Costa, Partner at The Boston Consulting Group

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T O P 10

56

08

Increased volatility and divergence across commodities Over the last year there has been an ongoing trade war amongst countries that’s likely continue to deliver significant market volatility into 2019. Commodity tariffs imposed by the US and China may not just affect prices and premiums but could also imply diverging impacts on commodities and the rerouting of global markets, bringing complexity to commodity logistics and commercial agreements.

Agustin Costa, Partner at The Boston Consulting Group

NOVEMBER 2018

07

Fuel Cell Electric Vehicles (FCEVs) and rising demand of platinum Investors are now recognising the importance of fuel cell electric vehicles (FCEVs) as a growth driver of platinum demand. Electricity from hydrogen fuel cells is fast gaining momentum as a low-carbon alternative to electricity from fossil fuels, generating electricity through an electrochemical reaction that combines hydrogen and oxygen to generate electricity, with heat and water the only by-products.

Already widely deployed in the public and private sectors as power back-up sources, and in material handling (fork-lift trucks), mobile fuel cells in the automotive industry require platinum as their catalyst in order to provide the performance demanded by consumers. Fuel cell electric cars provide the same zero emissions as a battery electric car, while retaining the range and refuelling speed of conventional internal combustion engine cars. Current commercially available fuel cell cars use over 30g of platinum per vehicle and this is expected to fall over time and with higher production volumes, to around 15g per vehicle. This is still materially higher than the 6-12g of platinum in the emissions control system of a diesel car Trevor Raymond, Director of Research at WPIC

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57

T O P 10

06

Coal is here to stay Coal currently fuels 41% of the world’s electricity, with usage expected to remain at similar levels over the next 30 years.

With prices on the rise and a high demand for coal in southern Africa, coal cannot be not overlooked in the increasing competitive energies market.

Coal is here to stay for the foreseeable future. There is high demand and it is likely to remain the most afford58

able fuel for power generation in many developing and industrialized countries for decades.

Years of little or no investment in new coal projects has limited supply, yet demand for coal in the southern African region continues to increase. The API4 index price for seaborne thermal coal for export has risen considerably, currently trading at $97 per tonne, an increase of 98% from 2016.

Although prices are expected to steady to around $80 per tonne in the next five years, there are significant growth and investment opportunities in the industry.

Andre Boje, CEO of Minergy Limited

NOVEMBER 2018

59

05

Rising tide of Cobalt Demand for cobalt is on the up and the supply of cobalt looks set to grow tighter and tighter, but this is an industry that is cyclical in nature. Cobalt is reaching decade high market prices and this incentivises more operators, major and junior, to find more cobalt.

Look at the outlook with regards to EVs. Right now, billions of dollars are being invested into R&D and into production and into Gigafactories. The infrastructure that has been dedicated to current EV batteries tells you that we are on a path of no return.

This path of no return strengthens the notion that 2018 has been a real turning point for cobalt. It’s been a “crazy year” and 2019 could surpass it. The frenzy is real. As a miner it is unlike anything we’ve ever seen before but we know there is a real need for this product.

Trent Mell, CEO, First Cobalt w w w.mi ni nggl o b a l. com

T O P 10

04

Technology: operational and cost efficiency The science of mining is evolving and so are mining techniques. There’s been a lot of advances over the last 25 years that I’ve seen, such as airborne geophysics. Airborne geophysics is a fantastic and very cost-effective tool. Historically, airborne magnetics would have cost about $150 per line kilometre. Now you can get it for about $11 per line kilometre and it’s very powerful. It allows miners to look under cover, to see geology through cover sequences and big structures and combine that with ground gravity work – which has also come a long way.

Drilling is getting cheaper too, but there’s room for that to grow and I’m sure it will do in the next five or 10 years. Drilling rates are compa60

rable to what they were 15 years ago and miners are getting a bit more bang for their buck these days.

Callum Baxter, Geologist, Greatland Gold

NOVEMBER 2018

03

Drones and people

61

Does a rise in automation and drone use remove the need for the physical human element?

Ultimately, drones cannot fix anything. They’re just a good system for alerting on different kinds of risk and situations that need to be alerted of. They’re much faster, more accurate, and provide data in real time for roles in decision making. Drones provide a better way of addressing different issues within the site that increases the productivity of the site and the facility.

Mining companies are recognising the value for drone use. They’re waiting for specific technology and applications that will help them do more. Through the development of new software applications that can provide real visual data and analysis, it will increase the efficiency mining companies which is a main goal for them because of the reduction in income.

Ariel Avitan Co-Founder and Chief Commercial Officer at Percepto

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

T O P 10

02

More women, greater diversity With well over 10,000 members of the International Women in Mining a figure that will continue to grow, more mining companies are becoming focused on getting women onto boards and executive committees.

There have been important changes, like having some female CEOs at the helm of mining companies, and a number of companies have targets and bonuses linked to diversity KPIs. There are also women in mining groups quite literally all over the world – that in itself is a big change.

There is a very strong economic case for it and some mining companies, like BHP and Rio Tinto, have recognised the enormous monetary benefits to 62

having more women in the boardroom.

In 2018, IWiM launched the International Women in Resources Mentoring Programme.

The six-month programme sponsored by a number of organisations and companies like Rio Tinto, Lundin Mining and Agnico Eagle saw 42 women from across 16 countries paired with industry mentors. The programme was instantly well received, with a new intake planned for next year, launching at Indaba in February 2019.

Barbara Dischinger, Founder & Director at International Women in Mining (IWiM))

NOVEMBER 2018

63

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T O P 10

64

NOVEMBER 2018

01

Lithium: Rising demand, more than stable supply

65

There are plenty of projects out there that have more than enough potential to supply demand in the long term. It’s very clear there’s plenty of lithium for everyone to consume, but in the medium term there will be a big scramble to find this resource.

Look at the announced plans from auto manufacturers including Mercedes, Volvo, GM, Ford. This shows the massive demand for lithium well in excess of where the lithium demand is today. Today there is a little over 200,000 tonnes of lithium into carbon equivalent a year, looking in the next seven to 10 years estimates suggest this will more than double. When paradigm shifts happen, they happen exponentially. People are already allocating capital to make it happen, it’s simply a question of supply and demand curves.

Wealth Minerals President Tim McCutcheon

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

The biggest industry events and conferences WRITTEN BY DALE BENTON from around the world

19–21 NOVEMBER

Complex Orebodies Conference 2018 [ BRISBANE, AUSTRALIA ] Aiming to attract a wide range of industry leaders, Complex Orebodies looks to address one of the greatest future 66

22–23 NOVEMBER

challenges for mining – that demand

Mining Investment

for raw materials will continue to grow

[ LONDON, UK ]

as supply begins to diminish.

Mining Investment London is a strate-

Future supply of raw materials will

gic mining conference and exhibition

come from a combination of new mine

for the leaders of the mining, quarrying

discoveries, and much of the future

and construction materials industries,

supply must be met by the mining of

bringing together 200 attendees from

increasingly difficult deposits.

15 countries.

Corporate leaders, operators, service

Ministers, mining companies, investors

providers, financial institutions and

and service providers travel from all

researchers will attend and share their

over Europe, Americas, Asia, Middle

perspectives and unique solutions to

East and Africa for two days of part-

the variety of challenges across the

nering, networking and business

entire range of development activities

matching.

click to view website

click to view website

NOVEMBER 2018

05–06 DECEMBER

13th China Gold & Precious Metals Summit 2018 [ SHANGHAI, CHINA ] The 13th China Gold & Precious Metals Summit 2018 (CGPM 2018) again will be gathering over 300 top professionals from across the precious metals fraternity to look at China’s efforts to

18–20 FEBRUARY 2019

secure steady mine production,

18th Coaltrans India

demand prospects and market devel-

[ NEW DELHI, INDIA ]

opment for precious metals, the

India’s largest coal event will bring

ambitious but gradual moves of mine

together 600+ key decision makers

investment and international coopera-

from India and the world for three days

tion by the Chinese leading gold

of networking, knowledge-sharing, and

producers, and price outlook and sup-

deal-making. The Indian coal sector is

ply & demand picture for the precious

changing very quickly with the focus

metals complex in an environment of

moving on domestic production and

Fed tightening, a struggling US dollar,

less importing. Seaborne prices, how-

resilient equities, higher bond yields, a

ever, are high and there’s an increased

hawkish shift among major central

interest from international miners to

banks, and simmering political and

export. On the domestic side, coal is

economic uncertainty.

increasingly facing strong competition

click to view website

from solar power.

67

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 FEBRUARY 2019

Mining Investment Middle East 68

[ DUBAI, UAE ] Mining Investment Middle East is a strategic mining conference and exhi-

03–06 MARCH

PDAC

[ TORONTO, CANADA ]

bition for the leaders of the mining,

PDAC: The World’s Premier Mineral

quarrying and construction materials

Exploration & Mining Convention is the

industries, bringing together 170

leading convention for people, compa-

attendees from 18 countries.

nies and organizations in, or

Ministers, mining companies, investors

connected with, mineral exploration. In

and service providers travel from all

addition to meeting over 1,000 exhibi-

over Middle East, Asia, Africa, Europe

tors, 3,495 investors and 25,606

and North America for two days of

attendees from 135 countries, you can

partnering, networking and business

also attend technical sessions, short

matching.

courses and networking events.

click to view website

click to view website

NOVEMBER 2018

27–29 MARCH 2019

25–26 MARCH 2019

Future of Mining Sydney

ResourceStocks Sydney [ SYDNEY, AUSTRALIA ]

[ SYDNEY, AUSTRALIA ]

The ResourceStocks Sydney Event

The Future of Mining will bring

builds on the success of gold, silver,

together C-suite, Heads and Manag-

copper and energya mineral digital

ers of Mine Operations, METS and

investor hubs, to curate meetings of

Support Services from top enterprises

investors and projects within the Pre-

around the globe to debate, come up

cious Metals (Gold & Silver), Base

with answers and define the current

Metals (Copper and Zinc) and Energy

and future mining landscape.

Minerals (Lithium, Cobalt and Graph-

The Future of Mining will address the

ite) commodity groups around the

key strategic and operational ques-

world. A combination of private invest-

tions that matter from project/

ment meetings, structured network-

operations level management through

ing and interactive discussion groups

to the boardroom. This event is

and keynote speeches provides an

designed to step away from the tradi-

exclusive opportunity for attendees to

tional transactional conference model

focus on the best global opportunities

to provide a transformational experience.

in an immersive two-day event.

click to view website

click to view website

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

69

SIRIUS MINERALS 70

Economic and sustainable excellence in mining WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

NOVEMBER 2018

EUROPE

71

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

SIRIUS MINERALS

Through the $4.2bn Woodsmith Mine, Sirius Minerals will disrupt the ‘sustainability in mining’ conversation

D 72

estructive by its very nature, the mining industry is one that requires an incredible focus and understanding of the impact

that a project has, and can have, on the environment.

For many mining operators, getting this one element right is key to achieving any form of success. Get it wrong and the results can be catastrophic.

With a vision to become one of the world’s largest producers of multi-nutrient fertilisers, and a $4.2bn (£3.2bn) project to achieve that, Sirius Minerals takes its environmental responsibility incredibly seriously. In fact, it’s built into the company’s very mission statement of ‘sustaining the future’.

“This project will establish Sirius as a global fertiliser company,” says Graham Clarke, Operations Director at Sirius Minerals. “But I think what’s important to us is the way we’ve gone about doing that and the way we work.

“We’re not just a mining company trying to develop a resource and make as much money as NOVEMBER 2018

EUROPE

73 we can out of it. It’s how we’ve always engaged with the local communities, national government as well as regionally.

I think we’re really setting the benchmark in sustainability within mine development.”

The Woodsmith Mine is a 2.66bn tonne polyhalite project: the largest highest grade polyhalite resource in the world. Located near Whitby in the North of England, Sirius Minerals is currently implementing major infrastructure that will connect a deep shaft system and w w w.mi ni nggl o b a l. com

www.josephgallagher.co.uk

Leading the way underground.

From London’s Super Sewer to Sirius Mineral’s Woodsmith Mine.

Joseph Gallagher is a trusted partner for some of the biggest underground tunnelling and infrastructure projects taking place in the UK today.

SPECIALIST CIVIL ENGINEERING CONTRACTORS

®

TUNNELLING | CIVIL ENGINEERING | TRENCHLESS SOLUTIONS

Joseph Gallagher founded his company in 1982, which has grown significantly in the last 36 years to become a leading tunnelling and civil engineering sub-contractor in the UK. 2018 has been been aa milestone milestoneyear yearfor the the company, leading the way both for company, leading the way in terms of recent project both in terms of recent project successes and and their their safety safetyculture. culture.

Sirius Minerals Woodsmith Mine Joseph Gallagher has been contracted by Careys to undertake shaft sinking works at Sirius Minerals’ £3.2bn polyhalite mine near Whitby.

The project reached a historic milestone in September this year, with the naming of the Herrenknecht Vertical Shaft Sinking Machine (VSM) that will be used to excavate the first 120m of a 360m deep tunnel access shaft.

“Using this innovative cutting-edge machine is proof of our determination to use the best, most effective engineering solutions to build this mine.”

Chris Fraser, CEO and Managing Director Sirius Minerals.

Tideway Project Tideway Project The £4.2bn £4.2bn Thames ThamesTideway TidewayTunnel project, project, a 25km atunnel run to Tunnel 25kmtotunnel beneath the River Thames in thein run beneath the River Thames centre of London, is theislargest the centre of London, the largest sewer improvement improvementproject projecttotobebe conducted in conducted inthe theUK UKfor forover overa a century. Contracted century.

Contractedbybythe theFerrovial Agroman Laing O'Rourke joint Ferrovial Agroman UK and Laing venture, Joseph O’Rourke (FLO) Gallagher joint venture, constructed two, 10constructed metre internal Joseph Gallagher two, diameter, SCL 10 metre 37-metre-long internal diameter, tunnels, and two reinforced 37-metre-long SCL tunnels,concrete and portal frames (20m x 16m) two reinforced concrete portal containing 280x tonnes of steel. frames (20m 16m) containing 280 tonnes of steel.

Joseph Gallagher has previously worked with Ferrovial and Joseph Gallagher hasAgroman previously Laing O'Rourke onon thethe Northern Line worked with FLO Northern Extension and this working Line Extension andpositive this positive relationship continuedcontinued onto Tideway, working relationship whereTideway, the same level of onto where the same level professionalism andand workwork ethicethic were of professionalism a big contribution in delivering the were a big contribution in work successfully. delivering the work successfully.

An industry industryleading leadingsafety safetyculture culture Joseph Gallagher Joseph Gallagherbegan beganitsitsLiving Living Incident Free Incident FreeEveryday Everyday(LIFE) (LIFE) behavioural safety behavioural safetyprogramme programmetoto fundamentally change fundamentally changeits itsculture culture and attitudes attitudestowards towardssafety safetynearly nearly four years years ago. ago.

“We have have had hadgreat greatsuccess successwith with the programme, programme,attitudes attitudesand andways of working have moved on. Buton. ways of working have moved therethere is still to be to achieved.”

But is more still more be Joseph Gallagher, Chairman. achieved.”

Joseph Gallagher, Chairman.

Joseph Gallagher Joseph Gallagherview viewleadership leadershipas fundamental to promoting and and as fundamental to promoting sustaining the sustaining thesafety safetyand andwell-being of its people. aim of the LIFE well-being of The its people.

From the programme is toevery provide everyone 1st of October member of withJoseph the exceptional leadership and the Gallagher Group will be mutual respect that is required to attending an industry leading and empower people feel comfortable awarding winningtoimmersive with challenging un-safe training day provided bybehaviours Active and situations.

Training Team (att…). The session combines interactive experiences, “A safe business is the by-product film, drama, live action, exercises, of the business having exceptional participation and facilitated leadership. We continue on our discussion, leaving participants journey with the next phase with a lasting understandingofofour LIFE Culture.”

Steve Harvey, their role in ensuring the safety Managing Director. and well-being of everyone.

From October 2018 every member of The aim of Gallagher the LIFE programme the Joseph Group will is to provide everyone with attend an industry-leadingthe and exceptional leadership and training mutual awarding-winning immersive respect that is required to day provided by Active Training Team empower people to feel (ATT). comfortable with challenging un-safe behaviourstraining and situations.

The ATT immersive day combines live drama, film, exercises “A business is the by-product andsafe facilitated discussion.

“People of the business having come away with a deep, lasting exceptional We for awareness ofleadership. their responsibility continue on our journey their own safety and that ofwith the next phaseand of our Culture.” colleagues the LIFE practical Steve Harvey, Managing Director communication tools to make a

difference.” Dermott Kerrigan, Joseph are creating DirectorGallagher Active Training Team. an environment where people decide to make the Joseph Gallagher areright creating choices, wherever theypeople work across an environment where decide the company.

From procurement, to make the right choices, wherever to planning, HR, the engineering they work across company.and From project management, everyone procurement, to planning, HR, is a leader whenand it comes engineering projectto safety and well-being. management, everyone is a leader when it comes to safety and well-being.

SIRIUS MINERALS

an underground tunnel directly to nearby sea ports and shipping channels. The challenge for Sirius lies in the location, as the project is situated inside a major national park, meaning that the level of environmental responsibility placed on Sirius’ shoulders is significant.

“It started with the way that we designed the project and the infrastructure. Post construction, it will have minimal, if any, impact on the environment,” explains Clarke. “The mine site itself won’t be visible from any viewing point around the site once we’ve finished, 76

and I think we’ve demonstrated that it’s possible to design a deep mine in a sensitive area without it having a significant impact on the environment.

As a company, we take a lot of pride in the way we’ve gone about that, from the way we engage with the local people and the care we take in the environment.”

This is echoed by Chris Fraser, Managing Director and CEO of Sirius.

He notes that the innovative low impact design came about through initial discussions and planning meetings about the mine, which originally was going to involve turning the polyhalite into sulphate of potash (SOP) through a large-scale thermal process that NOVEMBER 2018

“I think we’re really setting the benchmark in sustainability and the way to develop a mine” — Graham Clarke, Operations Director at Sirius Minerals

EUROPE

CLICK TO WATCH : ‘SIRIUS MINERALS – THE PROJECT EXPLAINED’ 77 would use a large amount of energy and water. This, he explains, would leave a rather significant carbon footprint.

“The process, while technically feasible, caused us great concern because of the amount of gas it was going to consume and the amount of carbon it was going to produce.”

As the team went back to the drawing board and conducted a number of studies to find a more carbon neutral process, it was discovered that when left in its high grade natural mineral form, polyhalite’s crop yield performance surpassed expectations. It was decided w w w.mi ni nggl o b a l. com

EUROPE

“ It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far, and I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge” — Graham Clarke, Operations Director at Sirius Minerals 79

that, rather than turn polyhalite into

Given the location of the ore body,

SOP, a product which was already

Fraser also recognised that Sirius

widely used, Sirius would market

needed to work closely with the local

polyhalite itself as a new fertiliser

community and national government in

product. This had the added benefit

order to ensure that the Woodsmith

of significantly reducing the energy

Mine could even get off the ground.

consumption required for processing.

“We made the early design decision

“That was choice number one, and

that we would not build big headframes

that meant that our carbon footprint

into the sky as normally seen with

reduced massively as a project,” says

underground mines around the world,”

Fraser. “It also meant that we didn’t

explains Fraser. “We decided that all

have to have a massive chemical

of our infrastructure should go under-

process plant nearby consuming huge

ground. These choices mean that there

amounts of gas and water.”

will be zero visual impact on the National w w w.mi ni nggl o b a l. com

SIRIUS MINERALS

80 Park, which is a fundamental ethos of the

MTS is a fully segmented tunnel

whole project.� While Fraser admits this

containing a conveyor belt that will

decision did incur additional costs, he

transport the extracted ore outside

stresses that these were non-negotiable.

the national park to the industrial port

The second component was one of

of Teesside, where the polyhalite will

transportation: extracting the ore and

be granulated and shipped. It will be

moving it to and from the mine site. The

constructed using three tunnel boring

transportation and logistics surround-

machines (TBMs) undertaking three

ing mine sites create a myriad of major

independent drives: one will launch

and minor noise and light pollution, as

from the surface at the port end, and

well as congestion and additional carbon

two from sub level launch chambers at

emissions. To avoid this impacting the

the mine end and at an intermediate site.

park, the company looked to another

“The tunnel will be dug through one

innovative solution: an underground

rock strata, Redcar Mudstone, at an

Mineral Transport System (MTS). The

average depth of 250m� says Clarke.

NOVEMBER 2018

EUROPE

“What we’ve had to do is design a project that is setting new standards in sustainable design because ultimately, we’ve a project for the next century and beyond, rather than one that’s based on thinking from the last century” — Graham Clarke, Operations Director at Sirius Minerals

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

Chris Fraser Chris Fraser has almost 20 years’ experience in the mining industry with a particular focus on financing and strategic developments. He is the founder of the Project, has led its development since 2010 and has been managing director and CEO of the Company since January 2011. During his finance career he worked for KPMG, Rothschild and Citigroup, the latter culminated in him being appointed head of metals and mining investment banking for Australia in 2006 and managing director in 2008. Upon leaving Citigroup in 2009, he founded Sigiriya Capital, a boutique advisory and investment firm. Chris founded York Potash in 2010 and subsequently joined Sirius Minerals Plc in 2011.

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

Pioneering Your World.

OLKO-Maschinentechnik GmbH has been awarded a contract by Sirius Minerals for the supply and commissioning of two winders for the North Yorkshire Polyhalite Project.

Compared to a human body, the shaft hoisting system can be considered as the main artery of a mine. OLKO is very pleased to have been entrusted by Sirius Minerals with that responsible task and is delighted that their hoists are part of one of the world’s ambitious mining projects.

OLKO is a German based manufacturer and considers itself as supplier of high-end shaft hoisting systems. The company covers a wide range of winders, such as Koepe, Double Drum or Double Blair Winders. Beside the winders, OLKO supplies rope handling equipment, loading and unloading facilities and has references worldwide.

www.ts-olko.com olfen@olko.info

find us

EUROPE

“That means it will be deep enough to

footprint of the operation, Fraser

avoid any meaningful surface impact

believes that it represents a shining

during construction, and have minimal

example as to what can be achieved

environmental visual impact post

with regards to sustainability in mining.

construction. Effectively when the

“What we’ve had to do is design

project’s built, nobody will actually

a project that is setting new standards in

know there’s a mine here, or a tunnel

sustainable design because ultimately,

in existence.”

we’ve got a project for the next century

In building such massive infrastruc-

and beyond, rather than one that’s based

ture, which provides low operating

on thinking from the last century,” says

costs, minimal environmental impact

Fraser. “Beyond that, we can really tap

and contributes to reducing the carbon

into the incredible technological

E X E C U T I V E P R OF IL E 83

Graham Clarke Graham joined Sirius Minerals in 2011 and has been involved in all aspects of the development of the project. He is currently responsible for construction activities at the Woodsmith and Lockwood Beck sites.

He has over 30 years’ experience in the potash mining industry, in particular extensive operational experience at Cleveland Potash Limited (CPL). Starting as a graduate trainee, Graham initially worked underground as a miner, supervisor and shift manager before taking on more senior management roles culminating with the post of Managing Director, a position held for 7 years. At CPL, he secured investment to support the exploration and development of polyhalite, making CPL the first mine in the world to commercially extract this valuable mineral.

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SIRIUS MINERALS

84

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EUROPE

85 advantages and thought that comes out

onto that. I’ve never doubted it for

of the UK, in terms of designing our

a minute since I joined the company,”

operating systems, with regards to

he says. “It’s a feeling shared by every

remote and/or automated operations,

single one of us here at Sirius. We

and really looking at achieving even

believe in that vision as well, and the

higher standards, in terms of our

reality is, that if you actually believe

operational presence, once this infra-

you can do something, then you’ve got

structure’s constructed.”

a pretty good chance of doing it.”

For Clarke, this vision of setting new

Sirius’ first exploration programme

standards and pushing the boundaries

ran from 2011 to 2013 which resulted

as to what can be achieved through

in the identification of the 2.6bn tonne

innovative thinking and sustainability in

resource. With construction beginning

mining is something that he bought into

in early 2017, Sirius has targeted

from the very start. “Chris Fraser had

production of the first polyhalite

a vision at the very beginning; I signed

towards the end of 2021 and an initial w w w.mi ni nggl o b a l. com

SIRIUS MINERALS

10mn tonne per annum operation by 2024.

For the immediate future, Fraser notes that the company’s attention is entirely focused on completing the remaining financing required to build the project. “Construction is well underway and we’re coming toward the end of our second year of our construction schedule,” says Fraser. “Now we look at stage two of our financing, which is our senior debt financing. That is concluding early next year and involves finalising our project procurement, signing and securing our delivery partners on the project. These include DMC, Strabag, Jacobs and our market partnerships 86

with our customers, with whom we have already secured aggregate peak take or pay sales of 8.2mn tonnes per annum.”

As the project continues to advance, both Clarke and Fraser can look at how far the company has come since identifying the resource back in 2010. More importantly for Clarke, the company can prove that it has and will continue to do things in future the right way. “It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far. I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge,” he says.

Through that vast polyhalite resource, NOVEMBER 2018

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combined with the incredible understanding of its environmental responsibility, Sirius Minerals will truly transform not only the fertiliser industry, but it will send a clear message to the global mining industry. The mining conversation is often dominated by Canada, Australia and emerging mining markets across Africa, but both Fraser and Clarke feel passionately that the Woodsmith Mine can put the UK back on the map – it is the first deep mine to be built in the UK in decades, and will produce over two billion pounds a year through exports alone. This is a key driver for Fraser and is a cornerstone of his vision for Sirius: “I think the material contribution that mining projects can make is just such a fundamental component that has been lost from the UK. Look at a project like this, done to such high sustainable standards. It really does show you the power of mining as an economic driver for growth.�

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87

88

Min NOVEMBER 2018

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89

ning for

the future WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

RICHARD DE ANE

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AEX GOLD

AN AREA OF SIGNIFICANT POTENTIAL, AEX GOLD HAS BECOME THE ONLY ACTIVE GOLD LISTED COMPANY IN GREENLAND, PROVIDING A SIGNIFICANT BOOST TO THE LOCAL ECONOMY

T

raditionally known for its fishing and hunting industries, Greenland is fast becoming the next significant area of exploration for

mining businesses. The largest island in the world, Greenland remains one of the least populated areas worldwide with 56,000 citizens, and it has sought to 90

attract local and foreign investment across a number of new projects.

The island’s current position remains complex.

A sovereign government, it is positioned under the Danish kingdom who provide grants to support its local economy. To further its independence and bolster its economy to create increased tax revenue, Greenland has embraced the exploration of new mining projects as well as utilising all the renewable and local resources it has to offer.

Rich in rare-earth minerals, gold, iron-ore, uranium, in addition to hydro and wind power, Greenland’s favourable legal framework and robust infrastructure, particularly in South Greenland, have factored into AEX Gold’s vision to explore through its Greenlandic subsidiary, Nalunaq Gold Mine, situated in the Nanortalik Gold belt, Southern Greenland.

NOVEMBER 2018

EUROPE

“ The government is very supportive, so it’s about having a sound exploration strategy. We are very much focused on that” — Eldur Olafsson, CEO, AEX Gold

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AEX GOLD

Acquiring an existing Exploitation Licence in 2015, the company is at the advanced exploration stage of its Nalunaq property, including the previously operating Nalunaq Gold Mine.

It also holds Exploration Licences at the early exploration stage Vagar and Tartoq properties.

Hosting a high-grade NI 43-101 compliant gold resource estimate of 263k oz (inferred) at 18.7 g/t and a number of regional exploration targets, AEX Gold has undertaken three years of exploration at Nalunaq, developing an up92

dated geological model and an extension of the main vein strike length up to 1km.

“The government is very supportive, so it’s about having a sound exploration strategy. We are very much focused on that, as we have an asset package that we think we can grow and create a lot

Through this process, the business has

of value,” explains Chief Executive

turned its attentions solely towards

Officer, Eldur Olafsson.

gold exploration.

Originating from Iceland, Olafsson

“The known gold deposits in Green-

has gained extensive experience of the

land are in an area where the climate is

local geography. Focusing on mining

mild and, given our experience, logistics

projects in Greenland since 2012, he

are relatively easy. Gold opportunities

has analysed the country’s potential

are easier to finance than larger base

against the backdrop of environmental

metals projects and our perception

responsibilities and associated legalities

was that we could fully fund projects

with partner SRK Exploration Services.

like these through our support here in

NOVEMBER 2018

EUROPE

“ We have a total of 690 sq km of licences in south Greenland and we’re the only active listed gold company in Greenland” — Eldur Olafsson, CEO, AEX Gold

93

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AEX GOLD

94

NOVEMBER 2018

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Iceland and in the UK market,” he explains.

“We started looking for opportunities in the South Greenland Gold Province and became aware of this historically producing mine. We were attracted by the extremely high-grade potential of the resource and the fact that the project had significant infrastructure in place. We believed there were significant opportunities to materially improve the mining operation that had been run by previous operators.”

EXTENSIVE EXPLORATION Throughout the exploration of highgrade resources, Olafsson is proud to remain hands on and is regularly seen on site. By undertaking various technical studies, AEX has gained the ability to comprehensively analyse similar types of assets with potential. After w w w.mi ni nggl o b a l. com

95

AEX GOLD

acquiring the Nalunaq project in 2015 the company has continued to expand its portfolio. Whilst Nalunaq encompasses the required licence to explore and recommence production at the old gold mine, they own the larger Vagar exploration licence, situated a few kilometres to the west of the mine, where AEX believes the ground is prospective for the discovery of further Nalunaq-type deposits. In addition, they also own the early stage Tartoq Project to the North West of Nalunaq.

Each licence area is at a different stage 96

WWW.CARTWRIGHTDRILLING.CA

JUNIOR@CARTWRIGHTDRILLING.CA

TEL: +1 709-896-4446

EUROPE

C OMPA N Y FA C T S

• Greenland is fast becoming the next significant area of exploration for mining businesses.

• Obtaining an Exploitation Licence, AEX Gold is at the advanced exploration stage of its Nalunaq property • AEX Gold has undertaken three years of exploration at Nalunaq, developing an updated geological model and an extension of the main vein strike length up to 1km.

• Focusing on mining projects in Greenland since 2012, Olafsson has looked at the company’s environmental impact and all associated legalities with partner SRK of exploration which supports AEX’s aim of having a continuous pipeline of projects being brought into

• The use of hydropower and wind power would complement AEX Gold’s operations, not only in its existing mine operations, but with the implementation of an electric mining fleet

production.

“We have a total of 690sqkm of licences in south Green-

years at Nalunaq in order to support

land and we’re the only active listed

our exploration in the larger licences in

gold company in Greenland. Previous

the next 5-10 years,” he says.

operators undertook very little forward-

“Iceland is a short distance from

looking exploration once the mine was

Greenland, so logistically it’s good for

in production. It’s a very under-ex-

us. Additionally, in Iceland you need to

plored region so we intend to recom-

be really self-sufficient, and the same can

mence production within the next two

be said for those in Greenland. We w w w.mi ni nggl o b a l. com

97

AEX GOLD

don’t have as many people or the multitude of services that you would have in other countries which encourages you to think creatively,” he adds.

Consequently, the company has sought to maximise efficiency whilst keeping costs down, yet all the time adding increased value across its operations.

By acquiring a high-grade deposit, less material is needed to be broken down, lowering AEX Gold’s carbon footprint.

Everything taken out of the mine from underground will be processed and shipped out to a different processing facility, or processed on site adhering to the current environmental guidelines. Historically, electricity has been generated through the use of traditional fossil fuels, something which is steadily changing throughout Greenland.

98

“We’re using oil to put in generators or to power mobile mining equipment which is high cost both in monetary and environmental terms. Greenland currently has five hydroelectric power plants and they are looking at building more in south Greenland,” says Olafsson.

Seeing huge opportunities, he explains that the use of hydropower and wind power would complement AEX Gold’s operations, not only in its existing exploration activities, but with the implementation of an electric mining fleet with electricity being obtained from local renewable resources.

PROVIDING LOCAL OPPORTUNITIES In the future, it will be essential for Greenland to gain further revenue to unlock opportunities and services for its citizens. This is something Olafsson believes that AEX Gold can help with due to its knowledge of Iceland as it has many similarities to Greenland and has been NOVEMBER 2018

EUROPE

“ There are an increasing number of Greenlandic students attending Danish Universities so that now, for example, we are seeing well qualified Greenlandic geologists available for employment” — Eldur Olafsson, CEO, AEX Gold

99

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AEX GOLD

‘ Greenland remains one of the least populated areas worldwide with 50,000 citizens’

100

NOVEMBER 2018

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through a period of comparable change.

“Greenland is in a similar position to Iceland not so long ago. Iceland didn’t have a high education rate and wasn’t wealthy compared to other European countries, with economic and cultural activities that were very insular.

We are now at the highest level of all parameters in terms of education, wealth per family, etc. and this has stemmed from improving the breadth of schooling and creating opportunities for people to grow and develop outside of the traditional areas of agriculture and fisheries.

“Our aim is that the majority of employees will be Greenlandic, but it will take time. Greenland has a large number of people competing for jobs in the fisheries and tourist centres. It is important that Greenlanders are able to access programmes that will allow them to consider other career options. In Iceland we are importing a lot of people to work in different industries in our country because we don’t have enough people. This might be the case for Greenlanders as well if the anticipated growth of the mining sector materialises but we want to ensure that, where possible, we use local people first before looking elsewhere.

“The Greenlandic Government provides good support for those who seek education. There are an increasing number of Greenlandic students attending Danish Universities so that now, for example, we are seeing well qualified Greenlandic geologists available for employment. There has been a Mining School at Sisimiut for the last 10 years which provides local qualified labour who can take advantage of opportunities in the mining sector.

You need skilled labour and as we own a mine that was in production for 10 years previously, there is a fair bit of w w w.mi ni nggl o b a l. com

101

AEX GOLD

“ We are creating revenue for local communities, creating highly skilled jobs, and are providing benefits where local communities can live better lives and individuals can grow” — Eldur Olafsson, CEO, AEX Gold local knowledge that we have been able to use during our exploration work and which we are keen to utilise going forward,” he says.

“We are creating revenue for local

Cartwright Drilling, due to the company’s extensive experience in Greenland

communities, creating highly skilled jobs,

and subsequent knowledge of the

and are providing benefits where local

island’s government systems, process-

communities can live better lives and

es and practices.

individuals can grow. We need to create opportunities for young people.”

Additionally, by working with local

Planning to mine high-grade resources using significant infrastructure already in place, AEX Gold holds

businesses as well as those who have

extensive licences managed by an

been operating in Greenland for some

experienced team. Previous operations

time, AEX has made a conscious effort

produced between 50,000 to 100,000

to hire companies which can support its

ounces a year at 15.4 grams/ton

growth. AEX have therefore acquired

produced and this has provided a

a longstanding relationship with

benchmark for the company, who will

NOVEMBER 2018

MINING

103

utilise this cash flow to explore the wider

a number of projects,” notes Olafsson.

region in the long-term.

“It will create a dramatic effect on the

“We have a five-year plan where we

local community and hopefully be

want to get into production at Nalunaq

a springboard for unlocking much larger

and use the cash generated to fund

potential in Greenland. There are plenty

exploration in the wider district. We

of deposits that have been found, but

envisage investing a significant amount

you have to be able to develop them. You

in exploration assets to provide a portfolio

can only do that that with support and

of different deposits that we can bring

cooperation from the local people who

into production. We are creating a com-

believe in your vision.”

pany that has a long-term mission in Greenland to build up local know how to support our aim of ramping up to very profitable production across w w w.mi ni nggl o b a l. com

104

NOVEMBER 2018

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DUNDEE PRECIOUS METALS:

EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

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

105

D U N D E E P R E C I O U S M E TA L S

THROUGH THE TRANSFORMATION OF THE HISTORIC CHELOPECH MINE, DUNDEE PRECIOUS METALS LOOKS TO GROW THROUGH OPERATIONAL EXCELLENCE

I

n the mining industry, there is a belief for some that it is often the smaller exploration and mining companies that take the biggest risks which define

and redefine the status quo.

Dundee Precious Metals (DPM) defines its vision as a progressive gold mining company that unlocks

106

and delivers superior value through innovation and strong partnerships with stakeholders.

One of the company’s goals, is to grow its current mining production to around half a million ounces of gold per year over the next few years. It looks to achieve this by developing a number of projects across its portfolio, which includes exploration and development projects in Bulgaria, Canada and Serbia.

“Part of our strategy is built around possessing the capability to execute projects on time and within budget,” says John Lindsay, Senior Vice President, Project Development. “But it’s also about having the ability to scope a project and to actually understand what makes a project the right project.”

Dundee Precious Metals strives to deliver excellence in sustainability and to create value for all its shareholders, be they investors, government or the NOVEMBER 2018

EUROPE

“PART OF OUR STRATEGY IS BUILT AROUND POSSESSING THE CAPABILITY TO EXECUTE PROJECTS ON TIME AND WITHIN BUDGET” — John Lindsay, Senior Vice President, Project Development

107

local community. It aims to deliver this excellence through its commitment to its six core values; safety, dignity and respect, environmental responsibility, community investment, continuous improvement and transparency.

Nikolay Hristov, SVP, Sustainable Business Development, believes this commitment plays a key role in propelling Dundee forward as a company.

Hristov played a lead role in the company’s rehabilitation of its Chelopech mine, located in Bulgaria. Chelopech is an historic mining operation with production starting back in 1954. Over the course of its lifetime, w w w. m i n i n g g l o b a l . c o m

D U N D E E P R E C I O U S M E TA L S

more than 19 million tonnes of ore

located very close to the nearby village,

have been produced.

not a single square meter of land had

Dundee Precious Metals acquired the mine in 2003 and since then,

between the community and the other

has reinvested the vast majority of

surrounding communities, not just that

its profits to transform the mine into

village, has been a very important com-

a world class operation.

ponent in this journey which is at the very

This transformation started by re-examining the environmental impact of the mine.

“When we acquired the mine there wasn’t much thought given to the environmental impact of the operation,” 108

been rehabilitated. So, the relationship

says Hristov. “Even though the mine is

core of our strategy.”

As a mining operation, the importance of a relationship with a local community and the local government can be the difference between success and failure.

Hristov believes that the key to achieving environmental sustainability

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D U N D E E P R E C I O U S M E TA L S

is born through stakeholder relationships and he identifies the local community as a key stakeholder.

This is echoed by Lindsay. “It’s doing well by doing good. So, if we do the right things in the communities and the countries that we work in then we will succeed as a business. This is a progressive and a credible company that’s going to benefit communities and that allows us to grow.”

A mining company can walk the talk with regards to having a social licence to operate, but it has to be able to point to some consid110

erable successes or achievements that prove it is delivering on its promises.

For Dundee Precious Metals, the most convincing proof that it is indeed doing things right is the company’s Krumovgrad development project in south-eastern Bulgaria. With the company targeting first gold production

“THE RELATIONSHIP BETWEEN THE COMMUNITY AND THE OTHER SURROUNDING COMMUNITIES, NOT JUST THAT VILLAGE, HAS BEEN A VERY IMPORTANT COMPONENT IN THIS JOURNEY WHICH IS AT THE VERY CORE OF OUR STRATEGY” — Nikolay Hristov, Senior Vice President, Sustainable Business Development NOVEMBER 2018

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111

in late 2018, and adding more than

if we continued down that path we

100,000 ounces per year to the compa-

would not be successful.”

ny’s production portfolio, Krumovgrad

The company took the project

is a project that was “unlocked” by

back to the drawing board, taking

applying the company’s community

into consideration the community

relationship model, that was developed

feedback and retooling its plans

over the years at Chelopech.

based on redesigned tailings and

“It has a long history,” says Lindsay.

processing flowsheet in order to

“We presented an initial project back

successfully develop Krumovgrad

in 2010 but there were a number of

as a sustainable operation.

concerns from the local community

“It demonstrated to the community

regarding a tailings system and the

that we are a company that is pre-

processing method. It was clear that

pared to listen and prepared to walk w w w. m i n i n g g l o b a l . c o m

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EUROPE

113 the talk,” he says. “Originally we were

ship will enable us to work together to

trying to manage these discussions

further raise standards in the mining

remotely and we soon realised we

sector, focusing on innovation, sustain-

needed to be talking face-to-face

ability and employment opportunities”.

with people in the community. It really

While Chelopech is not the compa-

paid dividends for us and gave us far

ny’s only operation, it is a cornerstone

more credibility as an organisation.”

of Dundee Precious Metals’ vision

In addition to the strong support of local communities, Dundee’s approach

of delivering superior value through innovation and strong partnerships.

has garnered the support of other

Innovation is key to Chelopech as

like–minded partners: In 2016 the

the company has invested heavily in

European Bank of Reconstruction

developing the mine to be one of the

Development (EBRD) invested slightly

most digitally enabled mining opera-

more than $43 million in the company

tions in the industry today.

and noted at the time that the “partner-

Dundee Precious Metals implementw w w. m i n i n g g l o b a l . c o m

D U N D E E P R E C I O U S M E TA L S

FACT

Social license to operate

114

It is incumbent on all mining companies to find ways of operating responsibly, and to demonstrate social and environmental responsibility in credible and consistent ways.

Operating responsibly has many faces, including maintaining strong relationships with our stakeholders and minimizing harm to the environment.

It also includes ensuring that our employees are treated well, that they go home to their families safe and healthy, and that we strive to build sustainable communities that survive long after mine closure.

Dundee Precious Metals Chelopech EAD is anchored by its values. The Company continuously pursues progress and development of the mining industry based on technologies, sustainable development and

NOVEMBER 2018

concerted effort to protect the environment, as demonstrated by a number of international awards.

Our corporate wide community investment policy focuses our community spending toward local development, based on dialogue with local leaders. Our Krumovgrad project will be a model of best practice social and environmental management, and serves as a demonstration of our six Core Values: Safety, Dignity & Respect, Environmental Responsibility, Community Investment, Continuous Improvement, and Transparency.

These, together with the strategic imperatives support the Company’s brand promise: We Succeed Because We Care. — Nikolay Hristov, Senior Vice President, Sustainable Business Development

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115

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

D U N D E E P R E C I O U S M E TA L S

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117 ed a ubiquitous wireless network throughout the mine, as well as innovative hardware solutions that send execution information from the underground mine directly to the surface to capture, monitor and gain valuable insights.

“Chelopech is a fantastic case study whereby technical and technological transformations occurred simultaneously,” says Theophile Yameogo, VP of Digital Innovation. “It is a true testament that technology and technical prowess can be implemented successfully in mining.”

“ CHELOPECH IS A FANTASTIC CASE STUDY WHEREBY TECHNICAL AND TECHNOLOGICAL TRANSFORMATIONS OCCURRED SIMULTANEOUSLY” — Theophile Yameogo, VP of Digital Innovation.

With technology evolving at such an immense rate, so too must companies such as Dundee Precious Metals. As the company looks to the future of technology in mining w w w. m i n i n g g l o b a l . c o m

D U N D E E P R E C I O U S M E TA L S

118

“ TECHNOLOGY IS A NEVER-ENDING HUMAN ENDEAVOUR. SO IS OUR WORK AT CHELOPECH. AS A COMPANY WE WILL ALWAYS BUILD ON OUR PAST SUCCESSES TO ENABLE AND DRIVE NEW REALITIES AND ACCOMPLISHMENTS” — Nikolay Hristov, Senior Vice President, Sustainable Business Development

NOVEMBER 2018

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through artificial intelligence, machine learning and the Industrial Internet of Things (IIoT), it can do so based on the solid foundation of what it has achieved at Chelopech.

“Technology is a never-ending human endeavour. So is our work at Chelopech,” says Yameogo. “As a company we will always build on our past successes to enable and drive new realities and accomplishments.”

But as both Lindsay and Hristov stress, digitisation is all well and good but means nothing without an operational model that can enable and unlock the true value of technology.

“We have spent a lot of time developing a very structured, disciplined operating model that defines how we do our business,” says Hristov. “It’s easy to say we will digitalise but what does that mean? You need to have an underlying process in place.”

For Lindsay this operating model is one of if not the most important developments at the company, as he feels it is something that the company will implement across all of its existing and future operations.

“What do we take away from Chelopech as a business?” he asks. “I think it’s that operating model and the ability to apply that operating model in other projects and other operations gives us an edge. It really sets us up very well to be able to exploit the opportunities that are available through digitisation both now, and in the future.”

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119

120

Coal Services: a growing mine of data WRIT TEN BY

ANDRE W WOODS PRODUCED BY

ANDY TURNER

A S I A PA C I F I C

121

COAL SERVICES PT Y

122

Gillian Kidson, Head of IT at Coal Services, on how she is overseeing the digital transformation of the company to benefit its internal users and extensive stakeholder base

T

he challenge of transforming a business is no easy feat.

When that push for change

requires a shift to a more agile customer focused model, as well as harnessing and renewing technology platforms to not only future proof the business but create a best practice environment, that task can become even more complex.

Coal Services is an Australian industry-owned Specialised Health and Safety Scheme which delivers a suite of services in relation to the NSW coal

NOVEMBER 2018

A S I A PA C I F I C

123

mining industry including workers

of the industry, which presents its own

compensation insurance, health

set of challenges in that the status quo

surveillance, occupational hygiene

must be maintained at the same time

monitoring, and training and rescue.

as the organisation builds a new way

Owned by industry for industry,

forward.

through the NSW Minerals Council

Gillian Kidson is Head of IT at Coal

and the Construction, Forestry,

Services and it is her job to oversee

Maritime, Mining and Energy Union

the transformation of the company

(CFMMEU), it has been protecting

from a technological point of view,

workers in one form or another for

to work with leading edge vendors

more than 90 years.

and create a best practice environ-

The company has statutory functions that are critical to the health and safety

ment for IT infrastructure. “I needed to gain an intimate knowlw w w.mi ni nggl o b a l. com

A S I A PA C I F I C

edge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy. There was an appetite for significant efficiencies to be made using new technologies and improved data management; it was a case of building the right IT structure, architecture and infrastructure,” she reveals.

The biggest challenge for Kidson and her team was working through the company’s legacy systems, which represent nearly 100 years of activity with each part of the business also having different requirements and applications, many of which weren’t being utilised.

“Not only was it a bit of a clean-up, but we also looked at how we could utilise these tools across multiple businesses; not just one,” she comments.

“We are upgrading the legacy infrastructure to a level where it will able to provide significant performance improvements in meeting the needs of the new systems that are coming in.

We integrated current technologies, including: AWS, Azure and Office 365 to ensure we have best practice systems in place to allow us to build for the future and enhance performance.

In order to implement changes to legacy systems, particularly within the insurance arm of its operations, Coal Services has, for

“ I needed to gain an intimate knowledge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy” — Gillian Kidson, Head of IT, Coal Services

125

COAL SERVICES PT Y

“ The goal is to provide systems that will give ease of access for our employees to provide better levels of service to customers” 126

— Gillian Kidson, Head of IT, Coal Services

centric approach to injury management and improved experience for the worker.

At a larger level, and because it operates across multiple touch points with its customers, Coal Services has amassed a large store of data surrounding workplaces, mine companies and workers.

“An important part of the architectural design has been geared towards how we share the data that can be shared and lock down the data that can’t. So, we’re just working through that architecture at the moment with a view to implementing some master data sets across the business and

example, partnered with Finity to

a middleware application to enable

develop a tool that blends an individu-

us to transfer and share that core

al’s entire claims history together so

data,” Kidson explains.

case managers and injury management

“The goal is to provide systems that

advisors will have a holistic view of the

will give ease of access for our employ-

person (rather than a single claim or

ees to provide better levels of service

injury view) to enable a more person-

to customers. But at the same time,

NOVEMBER 2018

A S I A PA C I F I C

127 these new systems must provide useful

of security they can.

information to help us glean specific

So, how does the system function

insights and improved knowledge to

when facing the client? “We have five

enable better solutions. This will enable

different businesses that will interact

the organisation to be more customer

with the coal miner for various reasons.

centred and in doing so, will allow for

From a health perspective it can be

an increase in customer efficiencies.”

anything from a pre-work placement

With large data assets comes the

medical required under the statutory

need to protect personal information

responsibilities of Coal Services,

and comply with privacy policies too.

to annual medicals for mines rescue

To ensure these requirements are met,

brigadesmen. On the other side,

Coal Services has engaged InfoTrust

you’ve got injury claims and manage-

as its security partner, who are

ment processes as part of the

working with Kidson at each stage of

workers’ compensation component

these projects to ensure that they

of the scheme. In addition, every NSW

apply the best and most trusted form

coal miner will likely come through our w w w.mi ni nggl o b a l. com

www.virtualitservices.com.au | support@virtualitservices.com.au |

CONTACT US

Virtual IT Services’ core business is Managed Services. We provide a range of flexible support options to partner with our customers to improve the IT environment and provide excellent service. We differentiate ourselves from other Managed Service Providers by offering complementing consulting services and development services.

A S I A PA C I F I C

CLICK TO WATCH : COAL SERVICES – CORPORATE VIDEO 129 doors for some sort of training, and

can access personal data, see their

we also maintain their qualification

qualifications, and check their

records,” she said.

medical information.”

“The interactions are as varied

The coal industry is undergoing

as the data sets, so we are working

dramatic change and, as a result,

towards giving people access to see

capabilities at Coal Services need to

what training they’ve had and when

be nimble and agile enough to respond

they did it. They will be able to see how

to the evolving industry landscape.

many medicals they’ve had and keep

“While improving internal system

tabs on their claims. They should be

performance and data collection

able to go in through a portal and see

capabilities are important, it’s of greater

all their information. The immediate

significance that we can understand

goal is to give that capability back to

the data and work with industry to recog-

the miner so they have some visibility

nise emerging issues.”

of their own information; it means they

“Changes in technology can have a w w w.mi ni nggl o b a l. com

COAL SERVICES PT Y

130

1921

Year founded

330+

Approximate number of employees

NOVEMBER 2018

A S I A PA C I F I C

direct impact on that and can aid in the development of solutions. Mine workers are often transient and the industry employs a good deal of contractors, which requires us to respond quickly to provide the best possible services to customers. It’s give and take on any day of the week and adaptability is key.”

Kidson has fostered a number of long term strategic partnerships as a way to not only help deliver on requirements, but to also help improve performance as the organisation develops its own capabilities.

“Virtual IT has been on board since the beginning providing assistance with architectural and network design as well as business intelligence tools. Having them on board has been a learning curve for us all and has provided us with some insights into what we’ve got and how best to reuse what we can.”

One of the first areas Kidson looked at was occupational health who had been running their business across six different applications. The idea is to consolidate as much of that as possible into one application.

“We’ve consolidated the first two applications with the help of Appian, who provide a platform Workflow Tool. We’ve consolidated bookings and health assessments and that’s due to go live in November.”

With data comes responsibility and security and Coal Services looked to Trusted Habitat w w w.mi ni nggl o b a l. com

131

COAL SERVICES PT Y

when it came to data governance.

“We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow,” Kidson explains.

Coal Services’ employees also need to make sure that data is available and can be where it needs to be at the right time. As a result, and to ensure best

132

“ We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow” — Gillian Kidson, Head of IT, Coal Services

practice, the company has gone for a new high-speed network, supplied

by Telstra.

Meanwhile, NTT is working with Coal Services on disaster recovery and business continuity planning for the infrastructure and server environment. “We’re currently working our way through what that’s going to look like, with a view to implementing a ‘disaster avoidance’ environment and not the standard ‘disaster recovery’.

“The strategy in place at the moment, has probably got another

NOVEMBER 2018

A S I A PA C I F I C

133

two to three years to run. We’re

What these long term strategic

obviously adding to that all the time

partnerships do is allow us to

and it’s constantly under review. It’s an

improve performance and implement

ever-evolving piece of work. If we can

best practice solutions across the

get to the point where we’re delivering

business lifting both our internal and

that well, then we’ll start to see a bit

external customer experiences. The

more of the AI (Artificial Intelligence)

changes to our IT infrastructure will

technology being introduced.”

provide tremendous benefits towards

“First, we will have somebody

improving our stakeholder service

logging into a portal, then we would

provision in a significantly more

like to see that portal being more

effective and efficient manner.

intuitive and intelligent and delivering content to the customer or client based on their actions.” w w w.mi ni nggl o b a l. com

134

NORTH AMERICA

Driving a Supply Chain revolution at Goldcorp

WRIT TEN BY

JA MES HENDERSON PRODUCED BY

GLEN WHITE

135

GOLDCORP

Rishi Ghuldu has spearheaded a Supply Chain transformation over the last 18 months at Goldcorp, backed by the company’s senior management

G 136

oldcorp set an ambitious target as part of its 20-20-20 strategy; which meant to increase production by 20%, reduce

cost by 20% and increase its reserve base by 20%. To support this important goal for the Company, Rishi Ghuldu, Goldcorp’s Vice President of Supply Chain & Asset Management, sat down with the company’s Chief Operating Officer, Todd White, to discuss how the company’s Supply Chain was performing and at what pace it was maturing. There was a realisation that while progress was being made, the trajectory of change was not where it needed to be. Ghuldu and White decided that Goldcorp needed to demonstrate real change in a matter of months, rather than years or even decades.

The decision was made to push the accelerator and challenge the Supply Chain and Procurement function to quickly prove its value to the business, allowing it to emerge from a back-office NOVEMBER 2018

The Goldcorp team

NORTH AMERICA

137

function to a team with a voice at the company’s top table. In Ghuldu’s own words: “We really wanted to catapult ourselves forward.” A deep dive into the company’s Supply Chain function was undertaken, as well as a close study of successful Supply Chain transformations both within mining and other sectors.

“We mapped out where mining is

From left, Goldcorp’s Ivan Mullany (SVP Technical Services) Rishi Ghuldu and Todd White, (EVP & COO)

relative to other industries in terms of Supply Chain maturity, and we felt it was lagging. Each of our mine sites were doing their own thing, which was often w w w.mi ni nggl o b a l. com

GOLDCORP

CLICK TO WATCH : ‘GOLDCORP TEAM TESTIMONIALS — SUPPLY CHAIN DIGITAL TRANSFORMATION 138 correct, but we were certainly miss-

every day. Getting the change approved

ing out on a number of opportunities.

involved conversations with Goldcorp’s

We took the decision to centralise our

investment committee, Mine Manag-

Supply Chain enabling us to leverage

ers and the Executive team. It was so

our portfolio strength – this was really

important to get our team to under-

vital to our transformation.”

stand the thinking behind the move. We

Goldcorp is a company that is pre-

pinpointed to some early wins and were

dominantly decentralised so a great

able to build momentum and support

deal of work went into building the

for the transformation.” Ghuldu and his

business case to centralise the Supply

team studied how other companies had

Chain function.

turned their Supply Chain and Procure-

“Technically, the decision to migrate

ment functions from a largely lethargic

the function is not too difficult,” he says.

function to one that added tangible

“But the company’s Supply Chain

value. The key was found to be a fun-

touches thousands of our employees

damental change in attitude.

NOVEMBER 2018

NORTH AMERICA

“To be successful, we had to be candid about our capability of doing

to be an industry leader – we’re not gunning for second place.”

this ourselves, so we took our ego out

“We took the decision to go ‘all-in’,

of the equation. We realised that there

so each of our sites is in the process

were companies around the world we

of being converted to the new model.

could build partnerships with that are

It’s a lot of change in a short amount

very skilled at what they do – we under-

of time but it’s been communicated in

stand that we can’t do it all ourselves.

a clear and consistent fashion and we

We believe that by forming this part-

completely believe there is value in do-

nership, we have been able to achieve

ing it this way rather than over a longer,

in 18 months what companies going at it

phased period of time.”

alone might take seven or eight years

Ghuldu is keen to stress that under

to achieve. That’s enabled us to over-

the new model, it is the planning of the

take some of our competition. We want

Supply Chain that is centralised, with

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

Rishi Ghuldu Rishi Ghuldu is currently Vice President, Supply Chain & Asset Management at Goldcorp Inc. Rishi’s expertise includes formulation and implementation of enterprise Business Improvement strategy, global supply chain management, asset management, change management, and merger integrations. Prior to joining Goldcorp, Rishi led Barrick’s Business Improvement function and worked with the Supply Chain group to launch Barrick’s Supplier Development Program.

Rishi started his career in the automotive industry and holds a Manufacturing Engineering degree from McMaster University and an Executive MBA jointly offered by Kellogg-Schulich (Northwestern/York University) School of Business. w w w.mi ni nggl o b a l. com

139

Empowering those who move mountains.

You work hard for your customers and we work hard for you.

In addition to providing technologically advanced lubricants, Mobil Serv™ empowers you with data and insights that help you go the extra mile and make smarter decisions for your business and your customers. See what’s possible at mobil.ca/mobilserv

© 2018 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.

NORTH AMERICA

“ We have been team meets regularly with senior manable to achieve agement, corporate and finance to in 18 months talk about the potential spend over the next 12-24-month period, and define what companies sourcing opportunities. From there, a going at it alone decision is made about whether an opportunity exists for a single site, a might take seven regional opportunity – taking in three or eight years to four mines or a global opportunity.

“We then report back to the operato achieve” the individual sites overseeing the ex-

ecution. Specifically, the Supply Chain

tions, because that’s where most of

our purchasing takes place. To a large extent, we’re able to provide what each site is going to target in terms of spend,

— Rishi Ghuldu, Vice President of Supply Chain & Asset Management

and what their respective savings

picture and of the supplier base, which

targets are going to be for the follow-

greatly impacts how the negotiation

ing year and the year after. Sites know

takes place and how we are able to

their goals and what opportunities they

drive results.”

can leverage,” Ghuldu comments.

The transformation has also been

“As we were designing our future state, we wanted to avoid creating the

built on access to market intelligence,

best Supply Chain in the world but rather

with professionals communicating

the best Supply Chain for Golddcorp;

regularly with Goldcorp about global

thus not aiming for functional excel-

trends, commodity performance and

lence but for business excellence.”

how foreign exchange rates might impact a project or an initiative.

The transformation has truly increased the spotlight on the company’s Supply

“When we are sitting across from

Chain planning and execution, in turn

our suppliers, we are now equipped

making the function an integral part of

with more knowledge of the broader

Goldcorp’s wider goals. w w w.mi ni nggl o b a l. com

141

GOLDCORP

“ We want to be an industry leader — we’re not gunning for second place” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

142

board, the auditors and the market, we have to deliver on our plans. The transformation is really helping our business become more competitive and sustainable, while lowering costs.”

A case in point is a 40% improvement in the time it takes for a purchase requisition to be converted into an issued purchase order. According to Ghuldu, that has been achieved by standardising processes and rolling out success-

“Prior to this transformation, we had

ful initiatives from one site across all of

some targets within the Supply Chain

its mines. It is a more consistent, higher

function that were generally fairly

level of service, leading to improved

low; without a lot of questioning around the targets or ac-

confidence from clients, he says.

Working through cross func-

countability for realisation of

tional teams on the sourcing

those targets. Supply Chain

front, Goldcorp has been able

was not an integral part of the

to achieve significant savings

overall planning process.

through competitive bids

Because of this trans-

that have resulted in

formation, our per-

locked-in savings that

formance numbers

are in the tens of

are now significant

millions of dollars.

enough that Supply

The company

Chain is an impor-

has also been able

tant part of the

to provide growth

operations budget.”

Because of this critical focus from the NOVEMBER 2018

— Fernando Carrascal, Director, Global Procurement

opportunities for its professionals, says Ghuldu: “We are

NORTH AMERICA

CLICK TO WATCH : ‘RISHI GHULDU VICE PRESIDENT — SUPPLY CHAIN & ASSET MANAGEMENT AT GOLDCORP 143 starting to operate as a more cohesive

successful collaboration between;

global team, and provided expanded

Operations, Asset Management, IT, Fi-

roles for our Supply Chain staff, wheth-

nance and HR teams within Goldcorp.”

er that’s the site leaders who are now

Despite such a successful transition,

managing offshore teams or global

Ghuldu is still looking to the future, still

category managers taking on addition-

looking for opportunities to improve.

al categories. We have more resources

Part of that effort is integrating cut-

at our discretion than we have had be-

ting-edge technology into the Supply

fore, which means more opportunities

Chain function.

that we can realize.”

Ghuldu recognises that Supply Chain

“We’ve been able to put foundational processes in place and started to gener-

is but one spoke of a larger wheel at

ate results, so we can look forward. The

Goldcorp and is keen to highlight the

thing I believe is going to be the next,

whole value chain of its Supply Chain

call it, Supply Chain disruption in our

maturity. “It is a reflection of the hugely

business is how we do demand planning. w w w.mi ni nggl o b a l. com

GOLDCORP

144

£3.42bn Approximate revenue

1994

Year founded

14,094

Number of employees (2017)

NOVEMBER 2018

NORTH AMERICA

“The transformation is really helping the business become more competitive and sustainable, while lowering costs” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

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

145

GOLDCORP

“ We could not have done this without the overarching support from our senior leaders” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

146 So, it’s about integrating the planning of Operations, Asset Management and Supply Chain, and doing so in a real-time manner,” Ghuldu comments.

“We can utilize technologies such as condition monitoring and end-to-end

becomes more of a check, rather than to generate a demand plan.”

visibility of our Supply Chain, which

“There have been critical lessons

helps us understand what parts you

along the way,” he says. “Acknowledg-

need, what parts are sourced, lead

ing our gaps and taking accountability

times for delivery of parts . Before

for areas where things should have

even realising that a part is needed,

been done better is the only way we

the system has identified the pattern

can improve going forward. Humility

because we have an algorithm in place

goes a long way.”

to be able to detect certain conditions that are lining up. Human intervention NOVEMBER 2018

Ghuldu couldn’t have achieved what he has without one core component,

NORTH AMERICA

147

From left, Fernando Carrascal, Amy Hu and Rishi Ghuldu his team. “To undertake such a chal-

The exciting question for the business

lenging task, we could not have done

– if not its competition – is if so much

this without the overarching support

can be accomplished in 18 months,

from our senior leaders and as well

what could be achieved over the coming

as standout performances from the

five years?

Supply Chain team members. This transformation has provided a great platform for our Supply Chain team to rise to the occasion and demonstrate not only functional expertise but also leadership.” w w w.mi ni nggl o b a l. com

148

NORTH AMERICA

SUSTAINABILITY AND COMMUNITY AT THE CORE 149

WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

ANACONDA MINING

How Anaconda Mining maintains core values throughout technology transformation

F

or a gold mining business, the location and jurisdiction of your portfolio is key towards enabling

any form of real growth. For Anaconda Mining, a TSX-listed gold mining, exploration and development company, that key location is Canada: namely, the highly prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. Anaconda currently 150

operates the Point Rousse and Tilt Cove Projects located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove and Stog’er Tight open pit mines, the fully-permitted Pine Cove Mill, a seven-million-tonne inpit tailings facility, the Argyle deposit, and approximately 9,150 hectares of prospective gold-bearing property. The company is also developing the recently acquired Goldboro Gold Project in Nova Scotia, a high-grade Mineral Resource.

Anaconda sees real potential in growing the Goldboro deposit and developing the project into the next gold mine in Nova Scotia.

“The goal for Anaconda Mining is to become an intermediate producer,” says Gordana Slepcev, Chief Operating Officer NOVEMBER 2018

NORTH AMERICA

“As a company, we are continuously looking to promote from within.

I feel that everyone has their heart in the business. If you have good, hard-working people who care about what they do, why would you bring someone else into the business?”

— Gordana Slepcev, Chief Operating Officer

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

151

NORTH AMERICA

(COO) at Anaconda. “For us, we look

for Anaconda. Slepcev feels that the

to grow our company and our existing

ultimate enabler of growth lies within

projects significantly over the next

people and the way in which the

three to five years.”

organization empowers them. “It’s

As Slepcev notes, developing the

a really great company to work for,”

company’s current project portfolio

she says. “There is a strong culture

will establish a foundation in which

and we are an extremely closely-knit

Anaconda can grow and transition

team where each and every person

into an intermediate producer. The

is passionate about what they do.”

company is currently drilling and

The mining industry by its very nature

expanding its existing resources

is often one that relies on third-party

across its portfolio, with the recent

support and bringing expertise into

Goldboro acquisition and Argyle

the business to develop and train the

deposit possessing huge potential

current workforce. All around the

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

155

ANACONDA MINING REDUCED DILUTION FROM 20% TO 5% THROUGH BLAST MOVEMENT MONITORING Video: Garry Luffman, senior geologist at Anaconda Mining's Pine Cove mine, describes how the geology team use BMT's BMM System to measure blast movement and deliver US$15-30,000 additional value per blast.

Anaconda Mining operates the Pine Cove Gold Mine and Mill located in Newfoundland, Canada.

Gold mineralization is hosted within quartz veins, dipping gently to the north with an east-west strike.

Blasting occurs on 6 m benches and excavators selectively mine small ore pockets in a single pass.

Narrow ore zones were not recoverable and high dilution was affecting mill grade.

Narrow ore zones presented challenges to mine operations. Small ore polygons, some only two blast holes wide, were entirely displaced from their in situ location by blast movement. Dilution, up to 20%, was affecting grades and ore production.

Dilution was reduced to less than 5% and recovered tonnes increased.

Monitoring blast movement and translating ore polygons to their post-blast position enabled Pine Cove mine to control dilution.

“The decrease in overall dilution, from 20% to less than 5%, has made a huge impact to our project, not just in improved economics but also in reduced tailings production and overall project footprint. Using the BMM System we can mine small zones of ore—increasing overall recovered tonnes. Without BMT we would not attempt to recover these small polygons due to movement.”

- Gordana Slepcev, COO, Anaconda Mining

www.blastmovement.com

Blast Movement Technologies The only way to accurately account for variable blast movement is to measure it.

Blast Movement Technologies (BMT) helps mines accurately measure blast movement and increase recovered value.

The Blast Movement Monitoring (BMM) system is used by open pit mines throughout Africa, Europe, North and South America, Australia and Russia, and in commodities including copper, gold, iron ore, lithium, nickel, platinum, silver, uranium and zinc.

BMT works with the top nine gold producers and the top four, Barrick, Newmont, AngloGold Ashanti and Kinross, have adopted the BMM system as their corporate standard for grade control.

Increasing profitability, reducing waste.

By accurately accounting for blast movement: • Canada’s largest gold mine, Canadian Malartic, estimated that they saved CA$7 Million in Q1 2018.

• Teck’s Red Dog zinc mine reported savings of US$6.5 million annually.

• Centerra Gold’s Mount Milligan copper mine recovered over US$600,000 additional ore in one blast.

• Evolution Mining’s Cowal gold mine reported a 7% improvement in mill feed grade.

• Pilbara Minerals’ Pilgangoora Lithium-Tantalum mine increased recovered value by A$335,000 in one blast.

• Asanko Gold’s Nkran mine in Ghana improved reconciliation from 88% to 102%.

• Golden Queen’s Soledad Mountain Mine increased recovered value, average per-blast savings estimated at US$55,000.

Making Every Ore Blast More Profitable

NORTH AMERICA

“As a good corporate citizen, Anaconda continuously proves that it is very environmentally conscious in everything that it does to show that it takes it seriously and it does its very best to make mining sustainable” — Gordana Slepcev, Chief Operating Officer

world, there are challenges of skills shortages and, in some cases, a lack of interest in working in the sector.

Where Anaconda stands tall is in its ability to involve its staff from the top down in as much strategic conversation as possible, steering the company in the right direction by ensuring that every member of staff feels that they are a key part of this growth journey.

Slepcev herself is a fine example of this, having been with Anaconda for over five years. She initially joined the business as Manager of Technical Services back in 2013, before being promoted to the position of COO in 2017.

“As a company, we are continuously looking to promote from within.

I feel that everyone has their heart

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

157

ANACONDA MINING

in the business. If you have good, hardworking people who care about what they do, why would you bring someone else in? It really is the people that make the difference for Anaconda. They are the ones who drive down costs, increase production rates and develop our projects into what they are. It is all because they take that extra step.

They take care and they have great pride in what they do,� says Slepcev.

In the mining industry, it is imperative for a company to understand and obtain its social license to operate.

158

Partnering with and establishing key relationships with local governments, regulatory bodies and indeed local communities can make or break any operation before boots hit the ground and for Anaconda Mining, this is something it invests in heavily.

Environmental sustainability is at the very heart of its LEAN and Green Vision Statement which is to be an environmental leader with a primary focus on proven, innovative green initiatives that contribute to the sustainability of the environment.

Anaconda works closely with NOVEMBER 2018

NORTH AMERICA

CLICK TO WATCH : ‘OUR PEOPLE – WORKPLACE EXCELLENCE AT ANACONDA MINING’ 159 its employees and contractors to ensure that they are committed to and working towards this vision. This includes training programmes, regular communication between all areas of the business and the development, design and operation of environmentally sound facilities across all of its projects. “Most of our people work within the local communities and live within the local communities,” says Slepcev. “As a good corporate citizen, Anaconda continuously proves that it is very environmentally conscious in everything that it does to show that w w w.mi ni nggl o b a l. com

ANACONDA MINING

160

it takes these issues seriously and does

As the company looks to grow, to

its very best to make mining sustainable.”

develop its projects and to discover

Slepcev attributes this commitment

new ones, it does so with the caveat

to sustainability and the successes

that the industry is cyclical. Anaconda

it has and will continue to achieve in

can achieve all the success in the world

this space back to its approach to its

in its current and future portfolio, but

people. “Aligning all the goals from the

were the industry to suffer an extreme

top down to anybody in the company,

downturn in commodity prices then

making sure all of the people are heard.

it could completely undermine all the

They’ve been developed. They’ve been

efforts and hard work that it has put in

trained and given opportunities to do

over the last decade. How a company

more for the company.”

survives this is by operating smartly

NOVEMBER 2018

NORTH AMERICA

ÂŁ17.6mn Approximate revenue

2002

Year founded

200

Approximate number of employees E X E C U T I V E P R OF IL E and focusing on key areas that, through

has established an in-house continuing

sound development, will stand against

education system called Anaconda

any downturn or financial concern.

University (AU). This innovative and

Slepcev believes that Anaconda is more

comprehensive corporate university

than capable of weathering any storm

training system was created to fully

through its focus on its current projects,

engage and develop employees while

people and key partnerships it has

aligning their learning to the company’s

established with local universities

strategic objectives. This is achieved

and communities.

through a platform to support innova-

Through this approach, Anaconda has

tion and the development of new ideas,

been able to embrace new technologies

provide motivation to the workforce, and

and greater innovation. The company

attract and retain high quality talent. w w w.mi ni nggl o b a l. com

161

ANACONDA MINING

“We’ve always been innovative,” says Slepcev. “Through our culture, we’ve been able to better embrace and implement innovation and safety programs. For the first time in our company’s history we have created a position of the VP of Innovation, so we can focus on it full time. We have achieved significant mining dilution reduction using technologies such as Blast Monitoring Technologies (BMT) as well as GPS solutions in our shovels and equipment. We’ve also been using 162

drones for a number of years in our development planning processes.”

Anaconda has also been working on a number of major projects with Memorial University, College of the North Atlantic and the Canadian

NOVEMBER 2018

NORTH AMERICA

government including ACOA

“Within five years, we aim to grow enough to have a multi-millionounce portfolio and be producing approximately 100,000 ounces annually in a geographically concentrated area” — Gordana Slepcev, Chief Operating Officer

(Atlantic Canada Opportunity Agency), NRC-IRAP (National Research Council Industrial Research Assistance Program and the RDC (Research and Development Corporation).

One of the most significant R&D projects within this partnership has been a $3.5mn initiative to commercialize a technology to economically mine underground single, narrow mineralized veins.

For Slepcev, in a sector that has historically been slow to embrace technology and

innovation, it is important that however and wherever the company invests in technology it does so with its core values in mind. “For us, it’s about trying to maximize production, bring greater value and efficiency to the business and importantly, decrease our environmental footprint,” she says.

As the company continues along its growth journey, Slepcev can look back over the company’s 10 successful years in operation. For her, this is important as the company can celebrate a number of successes and key lessons it has w w w.mi ni nggl o b a l. com

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ANACONDA MINING

164

“Through our culture, we’ve been able to better embrace and implement innovation and safety programs” — Gordana Slepcev, Chief Operating Officer

NOVEMBER 2018

learned along the way, particularly in its relationships with stakeholders, the support it receives from communities and First Nations and the overall pride and sense of community its employees bring to work each day. As Anaconda looks to further the Goldboro project and future potential projects this togetherness will only continue to grow alongside the company.

“We’re currently focused on Atlantic

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165

Canada and we will grow our portfolio

going well. As we grow, our success will

through either exploration or mergers

come from our drive to be open, to listen,

and acquisitions. Our goal is that within

and to enable and empower everyone in

five years, we grow to have a multi-

our business.”

million-ounce portfolio and be producing approximately 100,000 ounces annually in a geographically concentrated area,” says Slepcev.

“We go through conversations and open up dialogues with every part of the business to make sure everything’s w w w.mi ni nggl o b a l. com

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A SUSTAINABLE LEGACY WRIT TEN BY

ANDRE W WOODS PRODUCED BY

S TUART IRVING

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AFRICA

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

MDESS — GCO CONTRACTORS

Millennium Drilling and Equipment Services Senegal (MDESS) Director Francis Billy Williams discusses opportunities for sustainable transformation in the mining industry

A

s awareness surrounding ethics and sustainability increases scrutiny across every industry, Senegalese mining contractor MDESS

(Millennium Drilling and Equipment Services Senegal) is working to own that conversation. MDESS wants to put as much back into the earth as it takes out with a range 168

of initiatives designed to preserve the wellbeing of its workers and their working environments.

Managing Director of MDESS Francis Billy Williams has made environmental practices and the safety of his workers – a top priority at his company. “The environmental side to what we do is of serious concern,” he explains from his Senegal office.

REHABILITATION One area of sustainable work Williams is tapping into pertains to the rehabilitation of existing water wells in the region. A massive 75% of Africa’s water comes from groundwater drilling, after a significant increase in water well/boreholes over the past 30 years. It is an area that MDESS is most active in.

“There are a lot of companies here and everybody is just drilling, drilling, drilling, and that represents a lot of NOVEMBER 2018

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MDESS — GCO CONTRACTORS

drilled wells in need of rehabilitation,”

ful rehabilitation of a well will decrease

says Williams. “There is a village in

the drawdown, lower energy costs and

Ghana where there have been 10 wells

increase the pump life resulting in the

drilled and it was totally unnecessary.

raising of efficiencies and quality of

Why do we drill new ones, when there

water. “We have always been in close

are already 10 wells in the village? Why

proximity with environmental groups,

do you add more? Why don’t you build

making sure we don’t spill oil and that

roads and schools with that money

we keep our sites clean and safe and

instead? All the existing water wells

that we have all our papers in place.”

can be used if they’re rehabilitated. You

170

MDESS is a contractor of personnel,

wouldn’t buy a new car just because

equipment, transportation and logistical

your engine is smoking. You have to get

support to a number of global business-

the thing running again. These are

es such as Grand Côte Operations.

things I’m seeing around a lot of the

MDESS enjoys good relationships with

countries, where we’re just drilling the

its numerous partners, including

holes and leaving the holes behind;

Grande Côte. GCO’s mineral sands

holes that can rehabilitated. I have

operation is the largest single dredge

a program for rehabilitation that I’m

mineral sands operation in the world

going to put into action very soon.”

and is managed by an experienced

Water well maintenance programmes,

team, positioned on a coastal, mobile

in line with NGO support, have a number

dune system approximately 50km

of aims including the improvement and

north-east of Dakar in Senegal, home

maintenance of well performance as

to Africa’s largest international shipping

well as lengthening the overall lifespan

port. GCO will primarily produce

of the well and its assets. Such work

high-quality zircon and ilmenite as well

can also reduce operational costs as

as small amounts of rutile and leucox-

well as eliminating the risk associated

ene. The operations comprise a dredge,

with well transfer. The quality of both

a wet concentrator plant (WCP),

the water and the well improve as

a mineral separation plant (MSP), rail,

a result of these initiatives. A success-

port facilities and a power station.

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AFRICA

“ We have always been in close proximity with environmental groups, making sure we don’t spill oil and that we keep our sites clean and safe and that we have all our papers in place” — Francis Billy Williams, Director, MDESS

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MDESS — GCO CONTRACTORS

“We are working for GCO, where we are doing some continent bore drilling. We have 15 wells drilled, and we are almost finished.

We have 10 more to come after,” says Williams. “I have a very good working relationship with GCO, Bauer and another company in Senegal called Midas, which I own. I have my own drilling company that I brought to Senegal, working in the same mine as them. We’re all heading towards the same goal. It’s all friendly; the guys there

“ We’re all heading towards the same goal. It’s all friendly; the guys there were trained by me” — Francis Billy Williams, Director, MDESS

were trained by me.”

To foster such valuable partnerships, MDESS has made a pledge not to compro-

The best partner in Africa for your project’s needs.

Your success is our success.

Spanish Group leader in exports and investments in Africa. In sub-saharan countries PMS International is focused on chemical products and equipments for Civil Works and Mining Sectors. Is already working in Senegal, Ivory Coast and Ghana, giving support to Civil Works companies with Geosynthetics products, Pipes and also Chemicals for water treatment.

Contact Info: Elissa Belzunce Area Manager : Ebelzunce@pms.es | +34.628.60.30.44

AFRICA

173 mise on quality or safety. “We ensure

and more recently with Bauer. “You

our workers wear the appropriate

have to go through a lot of safety

PCE for the work we’re doing,

formations, because their priority was

especially when it comes to welding;

safety,” Williams explains. “95% of the

in case our welders aren’t wearing

whole program was safety. Newmont

the demanded kit,” Williams explains.

had a highly precise code when it came

“So, I think we have always been on

to safety because of the nature of the

the right track there with regards to

drilling that was being done by them.

safety concerns.”

They wanted everybody to come back

Safety is a paramount issue for

safe and sound. Newmont had very high

Williams, who has 37 years of experi-

expectations and everybody was being

ence under his belt. Williams’ record of

trained extensively on safety issues.

achieving the highest safety standards

We worked for about four years without

stretches back to his days working at

any incidents, which resulted in end-of-

the Newmont Gold Mines in Ghana,

month safety bonuses too.” w w w.mi ni nggl o b a l. com

MDESS — GCO CONTRACTORS

DRILLING SCHOOLS MDESS stakes its reputation on providing the best and safest equipment to mining operations and any piece of kit is only as safe as the person operating it. Williams has placed a strong emphasis on staff training at MDESS to reduce any potential risks as much as humanly possible. Williams is also looking at launching a drilling school in a bid to try and raise standards in the field.

“When it comes to equipment, I believe in working with the best. I worked for Bauer who had some of the best equipment in well mining. The safety standards were at a high 174

standard. The equipment was constantly tested, changed and overhauled and special training was implemented on how to use these tools correctly and safely. Most of the drilling we see in the villages is very poor,” he explains. “The workers are without PCE, and I’m sorry to say that Indian companies are drilling without even slippers on their feet.

No helmet. This is not accepted in our field.

“There should be a type of organisation that lets them know how to protect their workers. I am working with a friend of mine in Germany to see if we can set up a drilling school in Senegal, to teach the guys exactly what to do when it comes to drilling. It’s that important. What kind of legacy do you want to leave?”

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“ All the existing water wells can be used if they’re rehabilitated. You wouldn’t buy a new car just because your engine is smoking. You have to get the thing running again” — Francis Billy Williams, Director, MDESS

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