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Year in Review: Top Mining Stories of 2015

www.miningglobal.com

December 2015

EXCLUSIVE Read our exclusive interview with Klondex President & CEO, Paul Huet


EDITOR’S COMMENT

IN THIS ISSUE

“The best way to predict the future is to invent it.” –Alan Kay I R E C E N T LY H A D T H E opportunity to visit

Caterpillar’s Tinaja Hills Demonstration and Learning Center in Tucson, Arizona during a New Product Days event with dealers and customers. Although I have visited the facility before, this particular event opened my eyes to everything the training center had to offer. Featuring several large demo areas, including one in particular known as the Proving Grounds, I was able to witness Caterpillar’s MineStar technology firsthand as I sat in the control room watching their autonomous fleet of haul trucks drive themselves. As I observed these “smart machines” in action, trying to comprehend the complexity of this technology, I realized one simple thing: the future of mining is infinite. In the December issue, we feature the remarkable story of Klondex Mines, a junior mining company riddled with debt that overcame a real-world David versus Goliath fight. Also this month, we take a look back at the top stories of 2015 to review the good, the bad and the ugly. Staying in line with the end of the year theme, we reveal successful trends as told by the top mining companies and break down our favorite Top 10s of 2015.

Enjoy the issue! Robert Spence Editor

robert.spence@wdmgroup.com

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CONTENTS

Features

TOP10

The Best of 2015

6

Best company reports of 2015

22

14

Year in Review: Top Mining Stories of 2015 4

December 2015


EUROPE

Company Profiles USA

54

British Fluorspar

AUSTRALIA

30

Klondex Mines

AFRICA

80

Holcim Vietnam

AUSTRALIA

McKay Drilling

92

AUSTRALIA

66

Cupric Africa

104

Hedweld Engineering

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BEST OF 2015

Best company reports of 2015


Successful trends from the top mining companies this year Writ ten by: ROBE RT SPE N CE 7


BEST OF 2015 AS WE GET set to ring in the New Year, let’s take a look back at the strategies implemented by some of the world’s most successful mining companies in 2015.

opportunities for small- and mediumsized businesses,” said Adani Mining CEO Jeyakumar “JJ” Janakaraj.

Adani Mining – Investing in Queensland With an estimated price tag of $16.5 billion in capex and sustaining capital, the Carmichael coal, railway and port project based in Queensland, Australia, is on-track to build one of the world’s largest thermal coal mines, producing roughly billions of tons of coal resources during its estimated 60-year lifespan. The Project is being spearheaded by Adani Mining, the Australia-based subsidiary of Adani Group, and the expectations are as high as the cost. Located in the north Galilee Basin approximately 160 km north-west of Clermont in Central Queensland , The Project is set to not only benefit the industry but the community  as well. “[The Project] will deliver vital export opportunities for Queensland,[create] 10,000 local jobs,[garner] $22 billion in taxes and royalties, and [provide] crucial work 8

December 2015

Read more


B E S T O F C O M PA N Y R E P O R T S

New Gold Headquartered in Vancouver, Canada, New Gold Inc. is an intermediate gold mining company with a focus on environment and social responsibility. The company has a growing portfolio consisting of four producing assets — the New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico — and three development projects in Canada and Chile. Peak Gold Mines has inspired the Canadian miner to do more with less, which includes integrating new systems to optimise overall production and performance. Under this formula, Peak Mines has turned strategy into action by harnessing the creativity and passion of its team while introducing business processes that are lean and continuously improved. The Peak Mines in Australia has been a shining example of the success that incurs from these processes being put into place.

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BEST OF 2015 Hastings Deering: An Inside Look at the Largest CAT Dealer Network in Australia Legend has it that the opportunity to launch one of Australia’s most impactful organizations occurred by chance: Harold Hastings Deering, a British-based fighter pilot during WWI, reportedly landed his plane in an AEC factory yard and refused to leave until the company had agreed to let Deering distribute their trucks and buses throughout Australia.

Founded in 1932, the Hastings Deering Group has spent the last 80 years successfully navigating the mining and construction sectors by maintaining a similar sense of ambition and vision. Today, with nearly 5,000 employees spread across four countries, Hastings Deering is the largest Caterpillar dealer network in Australia, and one of the brand’s premier distributors across the globe. Read more

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December 2015


B E S T O F C O M PA N Y R E P O R T S

Joy Global: Solving Mining’s Toughest Challenges Joy Global knows a thing or two about mining and without them, mining itself would look fundamentally different. From the humble beginnings of Joe Joy, Henry Harnischfeger and Alonzo Pawling; today Joy Global stands as the leading supplier of advanced equipment, systems and direct services for the mining industry. Trading on the New York Stock Exchange (NYSE) since 2011, the global corporation designs and manufactures equipment for both surface and underground mining, used for a variety of applications and minerals. Joy Global has a vision; to be a

world-class service company delivering the most reliable and productive products, systems and solutions that solve mining’s toughest challenges. In order to achieve this, facilities and equipment service centres span six continents and more than twenty distinct countries. Their mission is clear. Joy Global want to partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference. They are grounded in experience. Grounded in performance and innovation. Grounded in their values; Integrity, Respect, Diversity, Teamwork, Reliability and Performance.

Read more

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BEST OF 2015

Nevada Mining Association: A Voice for Nevada’s Mining Industry Mining has long been an integral part of Nevada’s history— from Native American use of its mineral wealth to fashion tools to today’s modern industrial mining operations. Nevada’s silver deposits were a major reason for Nevada’s admission into the United States in 1864, and mining has since positioned the state as a global leader in the production of strategic minerals in the development of new technologies. Founded in 1913, the Nevada Mining Association is one of Nevada’s oldest trade associations, representing a broad spectrum of the industry. “There’s mining essentially everywhere,” said President Dana Bennett, Ph.D., in a recent interview. “Our association represents all the businesses involved within the industry—whether it’s exploration, development, operations, reclamation or vendors.” 12

December 2015

Read more


B E S T O F C O M PA N Y R E P O R T S

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

The goal for Roy Hill is to develop a vertically integrated pit-to-port business strategy utilizing a mine, rail and port system to efficiently mine, transport and export iron ore. Roy Hill’s independently owned and operated railway is a 344km standard gauge, single line, heavy haul railway built to transport 55 million tons of iron ore from the Roy Hill Mine to the dedicated Port stockyard facility, in the Boodarie Industrial Estate south of Port Hedland.

Read more

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BEST OF 2015


Year in Review: Top Mining Stories of 2015

Uncertainty continues to dominate the mining industry and 2015 was no different. Writ ten by: ROBE RT SPE N C E

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BEST OF 2015 THE MINING SECTOR endured a hurricane of highs and lows (mostly lows) in 2015 – from alltime low commodity prices, major environmental disasters, to companies hitting the brink of bankruptcy. Many analysts believe the party may be over in the mining industry. However, like any other cyclical industry, the mining sector continues to push forward. As 2015 comes to a close, we highlight the top stories of the past year. Inside the Making of Roy Hill The long awaited Roy Hill project in the Pilbara region of Western Australia is finally coming to fruition. Representing the next era in iron ore mining, the $10 billion project is expected to unlock a treasure trove of iron ore—55 million tons per year—through an integrated mine, rail and port operation, while providing significant economic and social benefits in the process. The Roy Hill operation is scheduled to load its first shipment of iron ore for export later this year. WATCH: [VIDEO] Timelapse: Building the Roy Hill Project Read more 16

December 2015


TOP MINING STORIES

An inside look at Caterpillar’s MineStar technology It’s a tough time for the mining industry. The commodities sector continues to struggle with unstable prices, casting uncertainty across an industry whose fate is tied to the materials it extracts. It’s an unfortunate setting, but for equipment manufacturer Caterpillar Inc., necessity continues to be the mother of innovation. The U.S.-based equipment manufacturer has formulated Cat MineStar™—a comprehensive suite of mining technology products to contest the volatile environment companies face. Cat’s brainchild enables miners to configure technologies to fit their needs, providing everything from material tracking to sophisticated real-time fleet management, machine health systems, autonomous equipment systems and more.

Moon Mining: What is the Payoff? Mining the moon has been a hot topic of late, and for good reason. The potential for a bountiful, treasure-trove of untapped resources has many companies pondering the possibilities. Is the moon ripe for the picking of rare elements, and if so, what is the payoff? Ian Crawford, a professor of planetary science and astrobiology at Birkbeck College, London has published a new assessment of whether or not there’s an economic case for mining the moon. Although it’s hard to identify any single lunar resource, Crawford says the moon does possess an abundant of raw materials that are of potential economic interest.

Read more

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BEST OF 2015 BHP Billiton Splits into Core and Non-Core Operations Breaking up is hard to do, unless it’s a profitable one. Australiabased mining company BHP Billiton is going back to its roots by announcing a split between core and non-core operations, transferring aluminum, manganese and nickel assets into a new company.

According to a new report authored by Sonali Paul, the demerger of assets into a separate business could be worth at least $12 billion. Simplifying the company would “generate stronger growth in cash flow and a superior return on investment,” a spokesperson for BHP said on Friday. The split will allow the company to focus on its four pillars, “with potash as a potential fifth,” allowing BHP to “quickly improve the productivity and performance of our largest businesses,” the company said.

Read more

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December 2015


TOP MINING STORIES

Anglo American to cut 35 percent of global workforce amid massive writedown Anglo American is facing a steep uphill battle in 2015 and beyond as the mining company reported a $3 billion loss for the first half of the year. The news will force the global miner to cut 53,000 jobs from its workforce, including 6,000 office jobs, as well as sell upwards of 15 assets. • ANGLO AMERICAN: Digging smarter, not harder

The miner reported a half-year profit before tax of $1.9 billion, 36 percent less than in the same period last year. Plunging commodity prices, including a one-time charge of $3.5 billion and $2.9 billion from a write-down on the value of Anglo’s Minas-Rio iron ore project in Brazil, have caused havoc among the mining firm. Read more

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BEST OF 2015 Rio Tinto Plans to Invest Billions into Iron Ore and Diamond Projects in India Mining juggernaut Rio Tinto is continuing its quest to be the leading producer of iron ore. The UK based company announced plans to invest $2.5 billion in two separate mining projects in India, reportedly agreeing to invest $2 billion to set up an iron ore project in Odisha and another $500 million in the Bunder diamond mine project in the Indian state of Madhya Pradesh. • Rio Tinto Continues to Roll Out Driverless Technology Discovered in 2004, the Bunder project is Rio Tinto’s most advanced diamond mining project. The mine, which is currently in the pre-feasibility stage, is expected to place Madhya Pradesh in the top ten diamond producing regions of the world.

Read more

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December 2015


TOP MINING STORIES

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TOP 10


TOP10

The Best of 2015 Love top 10s? You’re in luck as we break down the best of the best for top 10s in 2015 Written by: Robert Spence

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TOP 10

10.) Top 10 Mining Colleges and Schools in the United States The mining industry is one of the most competitive industries in the world. It’s not easy for job seekers with no experience to break into. At the very least, mining companies will expect potential employees to have some qualifications relevant to the resources industry, if not a deep level of expertise. Because of that, education is essential. The number one school on our list belongs to the Colorado School of mines, which has distinguished itself as the best mining college in the nation.

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December 2015

09.) Top 10 largest diamonds ever discovered It’s unanimous: the world loves diamonds. These sparkly jewels have become a staple of wealth, commitment and beauty, as told through catchy slogans like ‘diamonds are forever’ and the notion they’re a girl’s best friend (this one is a fact). Because the majority of extracted diamonds are small in stature, we decided to showcase the top 10 largest ever via an infographic. Making the list at number one is the Golden Jubilee, a 545.67 carat diamond that was discovered in 1985 in South Africa.


TOP 10 OF 2015’S TOP 10S

08.) Top 10 Mining Trends of 2015 From rising operational costs and declining ore grades to a general lack of financing, 2015 has been a challenge for mining companies to say the least. According to the annual “tracking the trends” report by Deloitte, the struggle is expected to continue. In this list, we examine the top 10 trends for 2015 as identified by the consultancy firm, and reveal possible long-term solutions.

07.) Top 10 Rarest Gems Found on Earth For one reason or another, whether it’s jewelry, cars, art or sports memorabilia, people are attracted to the finer things in life. The rarer an item is, the more exclusivity it holds. Gems for example, take millions of years to form in nature and only a fraction of them will ever be found, mined, cut and sold as gemstones. 25


TOP 10

06.) Top 10 Corporate Social Responsibility initiatives in mining Corporate Social Responsibility (CSR) is often used to describe the social and environmental contributions and consequences of corporative activities and action. It entails three key dimensions--economic development, environmental protection and social cohesion. To truly be a successful mining company, CSR should be the fabric of your business. The number one program embracing responsible mining and encouraging a positive impact on the communities and environment belongs to BHP Billiton and their LEAD (Livelihoods Empowerment and Development) project. Launched in 2014, the program pledges $8.8 million over five years to benefit farmers from three districts in Mozambique.

05.) 10 minerals that make modern life work Mining is a fundamental part to our everyday lives. The industry supplies the necessary metals and minerals to make modern life work-serving critical roles in infrastructure, machinery, technology and health. From potash to lithium, we analyzed the top minerals that hold the keys to life in the 21st century, and without a doubt copper is the most vital mineral to modern life. 26

December 2015


TOP 10 OF 2015’S TOP 10S

03.) Top 10 gold mines based on production: 2015 The tough market conditions of 2014 rattled some of the world’s largest gold mining operations, disrupting productivity and displacing them from previous rankings. To uncover which gold mines reign king, we analyze last year’s production numbers to discover the top ten gold producing operations of 2015. In terms of gold producing mines, the Muruntau gold mine in Uzbekistan reigns king.

04.) T op 10 Green Initiatives in Mining The world of mining is changing. The traditional landscape of operations is transforming as emerging green technologies and equipment will soon make mining more efficient, cleaner and safer. The sector, which is recognized as one of the top pollutant industries in the world, is evolving into a greener industry. Making our list at number one is BIomining, a process that extracts valuable metals from ores and mine tailings with the assistance of microorganisms. 27


TOP 10

02.) Top 10 Youngest Mining CEOs For many young professionals, the ultimate career destination is the big office with the secretary in front and the view in back. To be a chief operating officer of a major mining company it requires the right vision and a willingness to take calculated risks. You have it or you don’t; it’s as simple as that. In this edition of our top 10, we reviewed the top mining CEOs based on their age, with Jordan Trimble of Skyharbour Resources Ltd, a uranium exploration company in Saskatchewan, making the list at number one.

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December 2015


TOP 10 OF 2015’S TOP 10S

01.) Top 10 Largest Open Pit Mines in the World In our bid to rank the top 10s of 2015, we can’t deny our love for two things: photos and mines. This top 10 showcases the largest open pit mines the mining industry has to offer, and ranks them according to their massive size. Entering the upper echelon of open pit mines is Rio Tinto’s Bingham Canyon copper mine in Utah, which makes our list at number one.

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Rags to Riches: A Klondex Story With a whirlwind of challenges and milestones in recent months, including the extraordinary achievement of acquiring its Midas asset, Klondex President and CEO Paul Huet discusses how his team achieved the impossible. Written by: Robert Spence Produced by: Andy Turner


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K L O N D E X M I N E S LT D .

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eadquartered in Reno, Nevada, Klondex Mines Ltd. is a mining company wellpositioned to further its two worldclass producing mineral properties: the Fire Creek project and the Midas mine and milling facility. The company, which was recently approved to be listed on the New York Stock Exchange (NYSE MKT), has recently overcome a whirlwind 32

December 2015

of challenges and milestones, including the extraordinary achievement of acquiring its Midas assets. The story resembles a modern day tale of David and Goliath. A natural fit Previously owned by Newmont Mining, the Midas mine was hitting the tail end of its life cycle, from both


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a human resources and a capital perspective, becoming what’s known as a “non-core asset.” “The acquisition was a natural fit, because not only would it add another producing mine to our portfolio, but it would also cement a long-term milling solution at Firecreek,” said John Seaberg, Senior Vice President, Investor Relations at Klondex. But with a single asset at the time, the Fire Creek project in Northern Nevada, with no production and a strained balance sheet, Klondex

“The acquisition was a natural fit, because not only would it add another producing mine to our portfolio, but it would also cement a long-term milling solution at Firecreek” – John Seaberg, Senior VP, Investor Relations at Klondex.

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Major Drilling is a public company traded on the Toronto Stock Exchange operating in over 15 countries around the world with 2,500 employees working more than 6 million hours safely each year. Through extensive research and development, Major Drilling has the proven resources, experience, and technical ability to safely and productively executea variety of underground drilling & dewatering services.

MAJOR DRILLING = MAJOR SUCCESS Our team unites to produce experienced & unparalleled services: • Specializing in safety, quality and productivity • Offering many cumulative years of drilling experience and resources • Possessing extensive technical resources • Including self-sufficient mechanical and fabrication facilities


INDUSTRY LEADER IN TECHNICAL UNDERGROUND DRILLING AND DEWATERING SERVICES 700+ RIGS DRILLING • Underground Percussive • Dewatering • Underground RC • Reverse Circulation

• Mud & Air Rotary • Oil, Gas, and Coal • Directional • Environmental

• Diamond/Core • Man-Portable • Heli-Portable • Sonic

For any questions or additional information feel free to contact: Pat Bamford pat.bamford@majordrilling.com

+1 801 560 2338 +1 801 974 0645

www.majordrilling.com

• Grade Control • Longhole • Water Well • Pilot Hole


SUPPLIER PROFILE

Major Drilling is one of the world’s largest drilling services companies primarily serving the mining industry. Major Drilling maintains field operations and offices in Canada, the United States, Mexico, South America, Asia and Africa. Major Drilling provides all types of drilling services including surface and underground coring, percussive long hole, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane and shallow gas. Over the years, the Company has positioned itself as one of the largest specialized operators in the world by leveraging its main competitive advantages: specialized equipment, long-standing relationships with the world’s largest mining companies, access to capital, and skilled personnel. This positioning is strengthened by the Company’s senior management having experienced several economic and mining industry cycles. We would like to thank Klondex for the opportunity to work at their work Class operations in Nevada. Utilizing our experience in engineering, research, and dedication, the team has been able to reduce dilution by more than 200% compared to previous methods utilized at Midas Operations. Through teamwork, we have successfully excavated longhole stopes as narrow as 18” by 50’ deep. Paul Huet and his team’s willingness to try new things has allowed our groups to work together on creating a method of longhole that is cost effective, efficient and timely. Management: Denis Larocque, President & Chief Executive Officer David Balser, Chief Financial Officer Denis Despres, Chief Operations Officer Kelly Johnson, Vice President Latin America & West Africa Larry Pisto, Vice President North America Website: www.majordrilling.com


K L O N D E X M I N E S LT D . was in a dire situation. In addition, they faced competition in the Midas transaction. Newmont had signed a Letter of Intent (LOI) in September 2013 to sell the operation to another company. As part of the deal, both parties agreed the LOI would be terminated by October 14th, unless extended by mutual agreement. But Klondex President, CEO and Director Paul Huet had a plan to tackle this uphill battle and never gave up. “When the LOI was signed

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between Newmont and the other company, I never got discourage. In fact, it fueled my motivation and forced me to work even harder,” he said. Persistence conquers all things As a third generation miner, Huet’s upbringing in the mining industry has ingrained the CEO with a tremendous work ethic and matching attitude to work hard no matter what you do. “I saw firsthand from my father the

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nationwide.

CONGRATULATIONS TO KLONDEX MINES. Business Insurance | Employee Benefits | Surety John Wayhart | jwayhart@assuranceagency.com | 847.463.7161

ASSURANCEAGENCY.COM

Minimizing risk and ilf maximizing health for our mining clients


K L O N D E X M I N E S LT D . work ethic needed to be successful in the mining industry,” said Huet. “He just turned 70 years old and still wakes up every day at 4:30 a.m. to work at an underground mine. He doesn’t know how to fail and that’s our culture here at Klondex.” Straight out of high school, Huet commenced his mining career as a mine site janitor for a local mine in Timmins, Canada, before eventually working his way through the ranks to earn supervisory mining positions with Kinross Gold in Timmins and Red Lake. “I was very eager to learn and work hard, sometimes even drilling

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and operating after hours for free. It launched my path to being a miner and eventually earning the right and privilege to lead a company like Klondex,” he said. While at Kinross, Huet was selected as part of a next generation leader program that granted him a scholarship to attend the Haileybury School of Mines in Ontario, Canada, while also paying his salary in the process. “Mining helped paved my way through college, including helping me earn an MBA at Stanford. I’m incredibly grateful for the opportunities the mining industry

SUPPLIER PROFILE

ASSURANCE

Assurance is among the largest and most awarded independent insurance brokerages in the U.S. A “Top 50” broker and repeated national “Best Place to Work” winner, Assurance creates value by minimizing risk and maximizing health for 6,000 businesses and individuals across the country. The company is headquartered in Schaumburg, IL with centralized office locations in Chicago, IL and St. Louis, MO. Website: www.assuranceagency.com

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Superior Surface and Underground Exploration Drilling Diamond Core Drilling and Reverse Circulation Drilling Internationally Depth Capability Beyond 10,000ft

American Drilling Corporation is an industrial services company that provides superior surface and underground exploration drilling for both mining and geotechnical industries. An innovative privately owned company headquartered in the state of Washington, with additional offices in Mexico, Winnemucca and Elko, Nevada. Our mission is to provide safe, industry-leading drill performance an and expertise to our clients, through experienced drilling staff and strong management oversight. We pride ourselves with a fleet of world class, well maintained modern equipment regardless of the location or environment.

19208 E. Broadway Ave., Spokane Valley, WA 99016 Office: 509-279-2859 Fax: 509-769-0300

Email: adeeds@americandrillingcorp.com Web: www.AmericanDrillingCorp.com

OFFICES IN SPOKANE WA, ELKO NV, WINEMMUCCA NV AND MEXICO


American Mining and Tunneling LLC provides superior expertise and experienced services to the mining industry, from beginning stage exploration to end of mine life reclamation.

Our industry leading equipment and technical and operational management contributes greatly to our reputation for practical and innovative performance; resulting in the successful completion of complex, challenging mine development and construction projects.

www.AmericanMT.com

Our commitment to maintaining the highest safety standards and qualified personnel gives us the ability meet critical deadlines. Successfully completed projects are the reason why so many Mines have chosen AMT.

INDUSTRY LEADER IN MINING AND TUNNELING CONTRACT MINING MINE DEVELOPMENT SPECIALTY LABOR SHORT & LONG TERM RAISE MINING

American Mining & Tunneling 19208 E. Broadway Ave. Spokane Valley, WA 99016

ALIMAK INSTALLATION & SERVICE UNDERGROUND CONSTRUCTION SHAFT SINKING ENGINEERING & TECHNICAL SERVICES

Office 509-921-7836 Fax 509-769-0300 Email: info@americanmt.com

OFFICES IN SPOKANE WA, ELKO NV, WINEMMUCCA NV AND MEXICO


THE MINING INDUSTRY HAS OPENED A LOT OF DOORS ON THE EDUCATION SIDE FOR ME, BUT IT’S ALSO HELPED ME ESTABLISH A LOT OF CONTACTS -CEO Paul Huet

SUPPLIER PROFILE

AMERICAN DRILLING CORP, LLC

American Drilling Corp is a privately owned drilling services company headquartered in Spokane Valley, Washington. The Company provides specialty drilling services through its US divisions in Elko, Nevada and Spokane Valley, Washington. We have become the recognized performance leader by setting the highest standards in service, reliability, safety and cost containment in our industry. We believe that a “safety first” company culture combined with creative flexibility are the key elements to success in providing drilling services to companies such as Klondex Mines and other leading gold and silver producers. It is our pursuit to always demonstrate our commitment to integrity in all aspects of our operations and business conduct. American Drilling Corp combines modernized industry leading equipment with experienced technical and professional operational staff resulting in completion of complex challenging drilling projects. American Drilling Corp, LLC, 19208 E. Broadway, Spokane Valley, Washington 99016 Further information about the Company can be found on the American Drilling Corp Website: www.Americandrillingcorp.com


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has presented,” said Huet. One of those opportunities consisted of working for Newmont Mining from 2000 to 2007, which saw Huet serve various senior capacities, including Mine Superintendent and Mine Manager, at their Midas mining operation. “The mining industry has opened a lot of doors on the education side for me, but it’s also helped me establish a lot of contacts,” Huet explained. “Many of these contacts have been critical to driving Klondex from a small exploration company to a significant junior mining company.” To successfully acquire Midas against

SUPPLIER PROFILE

Paul Huet President, CEO and Director

AMERICAN MINING & TUNNELING, LLC

American Mining and Tunneling LLC is a privately owned mining services company headquartered in Spokane Valley, Washington. The Company provides mine development and construction services to the mining industry ranging from beginning stage exploration to the end of mine life reclamation. We are a recognized performance leader, setting the highest standards in reliability, safety and cost containment in our industry, while providing services to companies such as Klondex Mines and other leading gold and silver producers. American Mining and Tunneling combines modernized industry leading equipment with experienced technical and professional operational staff resulting in completion of complex challenging mine development and construction projects. International services are provided through our North American divisions in Elko and Winnemucca, Nevada, Spokane Valley, Washington and Hermisillo, Mexico. Emphasis at American is on maintaining the highest quality and experienced personnel supported by a “safety first” companywide culture. Further information about the Company can be found on the American Mining and Tunneling website Website: www.Americanmt.com w w w. k l o n d e x m i n e s . c o m

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Quality Transportation, Inc.

Our Name Says It All! Quality Transportation, Inc 1110 Muleshoe Road Battle Mountain, NV 89820 Office: 775-635-2443 Mobile: 775-635-9540 Email: jdavis@qtinv.net

www.qtinv.net

“Proud to be a partner with Klondex Gold & Silver Mining!”


K L O N D E X M I N E S LT D .

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very stiff competition, Klondex needed to raise money – more money than the entire value of the company at the time. In the face of this nearly insurmountable task, Huet and his team set to work. Huet’s relationship with senior members of Franco-Nevada, Pierre Lassonde and David Harquail, was the key in getting the deal done. “I knew Pierre when I worked with him at Newmont, and I basically informed him of my intent to buy Midas and explained how acquiring it would be a perfect marriage of assets with our Fire Creek asset.” While not easy, Paul and his team were able to raise three forms of funding: $42.6 million in equity, $25 million in debt, and a $36 million gold loan from Franco-Nevada.

Ore from the Fire Creek project in Northern Nevada

SUPPLIER PROFILE QUALITY TRANSPORTATION Quality Transportation was formed in 2012 by Shane Davis (president) and John W. Davis (secretary treasurer). With our operation manager Jerry Lanphear, we have a combined industry experience of over 60 years. We cater to the mining industry in northern Nevada with Klondex being one of our biggest contracts, Ridge and Halliburton. Website: www.qtinv.net

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TRUST THE NUMBERS SANDVIK 365. PARTS AND SERVICE YOU CAN COUNT ON. People tell you stories about quality, commitment and innovation. But for the real story, take a close look at the numbers. In an industry where an hour of downtime can cost thousands, a Sandvik 365 parts and service agreement can save you millions, with around-the-clock service, qualified engineers and original quality parts on demand. Our new Sandvik RD500 series of rock drills can improve productivity by 55% and reduce operating costs by 30%. It’s efficiency you can count on. Want to know what you can count on saving with Sandvik 365? Find out more at mining.sandvik.com/sandvik365.

Test results are to be considered as results reached under certain and controlled test conditions. These test results should not be treated as specifications and Sandvik does not guarantee, warrant or represent the outcome of test results in any or all circumstances.

MINING.SANDVIK.COM


K L O N D E X M I N E S LT D .

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“We were able to raise more than $100 million, which is very uncommon of for a company our size, especially in this environment,” explained Huet. “We never gave up. We were able to get all the right people on board, and connect with all the right partners.” As a result of that persistence, Klondex acquired the Midas Property in February 2014 from Newmont Mining, which included the underground gold and silver mine, the Merrill Crow processing facility, related support infrastructure and mining and milling equipment. “The acquisition of Midas would not have been possible without Paul’s past experience and relationships in the mining sector,” said John Seaberg, Senior Vice President, Investor Relations for Klondex.

SUPPLIER PROFILE

The portal to the Fire Creek project in Northern Nevada

SANDVIK MINING

Employees: 12,000 Established: 1862 Industry: Sandvik Mining is a business area within the Sandvik Group and a leading global supplier. of equipment and tools, service and technical solutions for the mining industry. Services: The offering covers rock drilling, rock cutting, rock crushing, loading and hauling and materials handling. In 2014 sales were about 27,000 million SEK. Management: Björn Rosengren - CEO Sandvik , Scot Smith, - President Sandvik Mining, Paul Painter- US Sales Area Manager Sandvik Mining Website: www.mining.sandvik.com

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K L O N D E X M I N E S LT D . “No one knows this asset better than Paul. His relationship with Pierre was instrumental to getting this deal done,” Seaberg said. “The acquisition was transformational for us, and it occurred during a pivotal point in our company’s development,” added Huet. “To this day, raising $100 million is one of the biggest highlights of my career. On my

USA

deathbed I’ll be talking about it.” Klondex moving forward Before Huet’s arrival, Klondex was in bad shape—owing more than six million dollars to vendors with only $400,000 in the treasury, the company had negative working capital. Today, Klondex possesses two of the highest grade gold mines in the world, with $60 million in cash,

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K L O N D E X M I N E S LT D . a market cap of approximately $400 million and over 300 employees. Under the leadership of Huet, the company continues to deliver on its promises. “Our production guidance at the beginning of the year was 120125,000 gold equivalent ounces.

USA

We raised that number in the second quarter and just recently raised it again to 130-135,000 gold equivalent ounces,” said Huet. “It just goes to show that hard work and surrounding yourself with a great team can help you achieve the impossible.”

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K L O N D E X M I N E S LT D .

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Klondex continues to develop and understand its assets, especially with Midas. The company recently discovered additional reserves at the deposit, potentially extending the life of the mine. “A lot of the market thinks Midas is over and that it’s reached its peak, but we’ve just begun,” said Huet. “I’ve never seen a mine like Midas.” Fire Creek, the company’s other prized asset also continues to show significant upside potential. The company is currently operating an ongoing bulk sampling program, and shipping all mineralized material to its Midas Mill. “There’s still 93 percent of the deposit untested,” Seaberg said. “We have only scratched the surface with Fire Creek.” Along with furthering operations, Klondex remains steadfast on safety. The company recently achieved two significant safety milestones; three years of no loss time accidents at Fire Creek and one year of no loss time accidents at Midas. “The correlation of safety and productivity go hand in hand,” said Huet. “If you get safety right, you get operations right.” Along with being listed on the NYSE MKT in October, Klondex Mines continues to gain momentum and has the potential to become a real powerhouse in the mining industry for years to come. “We’re not forced by the market or shareholders,” explained Huet. “We’re doing what we set out to do, and that’s make money while becoming a major player.”

Company Information INDUSTRY

mining HEADQUARTERS

360 Western Road, Suite 1 Reno, Nevada, United States, 89506 EMPLOYEES

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Exploration, mining

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Making mining work In challenging market conditions, the European mining industry still has an important role to play Written by: Lucy Dixon Produced by: James Pepper 55


B R I T I S H F L U O R S PA R

Stope drawpoint

T

Processing minerals

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he struggles of the mining industry have certainly been in the headlines lately and Peter Robinson, Chairman of British Fluorspar, acknowledges that mining is currently a tough place to be. He says: “All mineral commodities, with the exception of gold, have come from a very high place in terms of demand and price to a massive low. So suddenly there’s not the demand or the price for our mineral products that there was a year ago.” But although Robinson recognises that challenging market conditions are likely to be around for the foreseeable future, he also wants to point out that the industry is far from over. “The world and society need mineral products,


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so the mining industry isn’t finished – this is only a self-correction. The human race needs raw materials and it’s a question, really, of where they come from and at what price – and then the mining industry has got to adapt. Some mines will go through this, some will not, and new mining projects will emerge.” Fluorspar is, Robinson explains, a small, industrial mineral. And it’s a very important one that we use every day, without even realising. “Fluorspar is the raw material that makes fluorochemicals, which then go into things like air conditioning units, refrigeration gases, the non-stick in your frying pan if you have a fry-up, and there’s a whole heap of other

“The human race needs raw materials and it’s a question, really, of where they come from and at what price” – Peter Robinson, Chairman of British Fluorspar

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B R I T I S H F L U O R S PA R

Caring for your cargo, shipping your future!

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EUROPE

Drilling at Mildam mine

everyday uses. And there is no economically viable replacement.” Robinson is talking not long after giving a presentation at the Fluorspar Mining Conference in Morocco, where he took the opportunity to underline the importance of maintaining European suppliers of the mineral, despite strong competition from the Far East, Africa and Central America. He says: “I think there’s a strong argument to say there needs to be a balance, and it would not be good for Europe if it didn’t produce any of its own raw materials and it became dependent purely upon imports.” Despite pressures from non-EU suppliers, Robinson is confident that British Fluorspar is making the necessary adaptations to cement its place in the industry. He says: “We are one of the last three or four producers in the EU producing Fluorspar, so I’ve been looking at

Underground mining

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B R I T I S H F L U O R S PA R

Underground fluorspar mine 60

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how we operate sustainable mining operations and we are now moving back to an underground mining model from an open pit mining model for producing our ore.� In essence, Robinson says, it is proving more cost-effective to return to an underground mining model, largely due to the costs and delays of legislation and permits required for EU-based open pit operations, which had always traditionally seen lower costs per tonne. The balance has been shifting towards underground mining, particularly with the use of modern underground mining equipment. “In


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Ore loading

tougher market conditions we have to develop new technology and improve the equipment we use. We have an equipment partnership with Atlas Copco and it is developing ever-increasing ranges of more efficient, cost-effective, fuelefficient and quieter equipment, with less impact on the environment,� says Robinson. He also thinks that European governments are now on the same page when it comes to supporting their mining industries. “I think there is a recognition in Brussels now that there needs to be European support for the rejuvenation of

Processing plant

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B R I T I S H F L U O R S PA R

Key Personnel Peter Robinson Chairman Peter is a Mining Engineer with over 30 years’ experience in management in the mining industry, particularly at executive level, involved in project management and strategic and development planning. He was CEO and principal shareholder of Glebe Mines Ltd which mined vein minerals in the environmentally sensitive Peak District National Park. He has worked in the Australian and South African mining industry as well as in Europe and was at the forefront of regeneration of redundant brownfield land resulting from the coal mine/power station closure programmes. During 2012 he was appointed Chairman of British Fluorspar Limited. In 2015 Peter was also appointed Non-Executive Director of Metalfer Mining, a Serbian mining company with operations in the Balkans and a Supervisory Board Member of FAME which is an EU funded mineral processing research and development body.

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mining in European industry. We’ve gone through a generation of closures. Here in the UK, we’ve gone from having a coal mine just about outside everyone’s bedroom window in the North to having virtually no underground coal mining left.” The revival of the mining industry in Europe could provide much needed employment in these traditional mining towns and villages. One of the challenges for British Fluorspar is that its operations are in the Peak District National Park, a protected part of the UK. Robinson says: “The big difference between the Peak District and other national parks is that we are in a living community – it’s full of people – and a lot of them prize the old mining villages, which are now seen as the desired location to retire. That brings tension in itself, because incomers want mining to be put into a museum. But taking that dimension aside, there is a huge responsibility on continuing mining, particularly

Fluorspar ore

“It would not be good for Europe if it didn’t produce any of its own raw materials and it became dependent purely upon imports.” – Peter Robinson, Chairman of British Fluorspar

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B R I T I S H F L U O R S PA R Open pit restoration operations in progress

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for us, in arguably one of our most important national parks. We have to look very carefully at the impact and relationships we have with the local community and the landscape.” In response to those with concerns about mining’s effect on the environment, Robinson points out that it is only a temporary land use – the land is simply borrowed to extract the mineral. “We’re undertaking an activity that people are fundamentally suspicious of and therefore we’ve got to build bridges and demonstrate that we can be an acceptable part of the local community and then contribute accordingly,” he says. And


EUROPE

the landscape is, in fact, protected for future generations. Robinson adds: “Since Roman times, people like me have been digging holes in the land to get the minerals. I don’t apologise that I dig holes in a national park, but I have a responsibility for how I dig the holes, the impact I have on the local community whilst I’m digging the holes, and basically how I leave the holes when I’m finished. The next generation of mining has got to be ever more sustainable and look at the total process, including planning for closure at the outset. And that’s what we’re doing here in the national park - we’re at the forefront.”

Drilling and blasting

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Developing Botswana’s mineral assets Written by: Nye Longman Produced by: Anthony Munatswa


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CUPRIC AFRICA

Through a series of strategic investments, acquisitions and partnerships Cupric Canyon Capital is set to make significant advances in copper mining

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C

upric Africa (the mining arm of Cupric Canyon Capital) has positioned itself to become a significant player in Botswana’s copper sector; having complied with various regulatory measures and having deployed its resources strategically, the company is now set to solidify production at one of the most important copper discoveries in the past few years. Operations In 2013, Cupric Canyon Capital acquired two important mining properties in connection with its purchase of Hana Mining; these are known as ‘Banana Zone’ and ‘Zone Five’ and contain significant copper deposits, including some silver credits. Sam Rasmussen, Cupric’s CEO for Africa, explained that, following some previous exploration and drilling undertaken by the previous owners, the company had stepped up work, particularly in Zone Five. He says: “There was a very small time period from when Cupric took over to the realisation that we should step up operations at Zone Five, where geologists realised that there was more copper than we first realised. “Banana Zone is large, with low grade copper; Zone Five is also large (now very large!) and has very high grade. Cupric began drilling in 2013 and went where Hana hadn’t covered. The drilling totals around 175,000 metres, mainly concentrated on Zone Five. “As you drill and identify so much resource


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The mining site and facilities at Khoemacau

you have to put plans to it. We put plans to that and on 9 March 2015 we were granted mining licenses to both sites. The mine continues to get bigger and the studies we do also have to grow. We have a robust project as it is, but it’s getting larger and the grades are increasing; we are seeing some higher grade deeper down.” As the current phase of drilling in Zone Five nears completion, the deposit is expected to contain nearly 100 million tonnes of mineable sulphide copper ore, Rasmussen says: “We are expecting 50,000 tonnes per annum of copper metal over the ten year period; that translates to 125,000 tonnes per annum of concentrate annually.” He adds that Zone Five also contained silver credits which are about 380 grams of silver per

50k tonnes The amount per annum of copper metal to be extracted over the tenyear period

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CUPRIC AFRICA

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tonne of concentrate, providing roughly 1.5 million ounces of silver each year. The copper concentrate has an average of about 40 percent purity. Competitive stance Being in a financial position to weather the challenges of the copper industry (not to mention the recent fall in global copper prices) Cupric has been able to leverage its strong capital position to strategically acquire assets that will complement its operations. Cupric’s wholly owned subsidiary, Khoemacau Copper Mining Pty. Limited (KCM) acquired the Boseto assets and licenses formerly owned by Discovery Metals Limited when it went into liquidation earlier this year. Rasmussen says: “We purchased the Boseto operations from a liquidator for $34

‘Being in a financial position to weather the challenges of the copper industry (not to mention the recent fall in global copper prices) Cupric has been able to leverage its strong capital position to strategically acquire assets that will complement its operations’

Close up of a Bornite example recovered from deep drilling at Zone 5

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CUPRIC AFRICA

Kalcon

Since 1989 27 Years experience in Botswana Primary focus in civil engineering, roads and earthworks, mining and mining infrastructure

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MODULAR TREATMENT PLANT

JWANENG


EUROPE

million. Now we will combine the Boseto plant infrastructure with the Zone Five mine which will come together to make an attractive copper and silver concentrate producing operation” Specifically, the Boseto plant will provide Cupric with a milling capacity which is located only 30 kilometres from Zone Five’s operations; these combined factors will enable the company to make significant capital expenditure savings in the mid to long term. The volume and quality of Cupric’s mineral assets (particularly copper) has put the company at a naturally competitive advantage, but the company also strongly benefits from its strategic financial partnership with Barclays Natural Resource Investments (BNRI). Rasmussen says: “We have two percent copper in the ground at Zone Five whereas

Drilling rig on location

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There are challenges operating in a remote part of Botswana

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Banana Zone was only 0.6 percent over all. This is obviously a marked change and with the structurally controlled nature of the Zone Five deposit allows it to be readily and easily mined using underground methods. “In terms of size, we have identified about 100 million tonnes of resource. We have a 3.6 million tonne per annum plant, a 25 plus year lifespan. Size is how we distinguish ourselves. We have a larger denominator, therefore our unit costs are down. I can safely say that on operating costs we are in the lowest quartile of copper producers.” He also explains that receiving the majority of its funding from BNRI was also a strategic advantage, since the bank had a seat on the board, supported by a team of industry experts. He adds: “Barclays are obviously very big. They’re experienced and results driven, and they have a very thorough methodology. For every dollar we spend they rightly expect to see an increase in value.” Responsible growth Clare Calver, Head of Human Resources and Communications explains that not only did her team have to tackle the ‘everyday’ HR trials faced by mining companies, but also navigate the challenges of operating in a remote part of Botswana. She explains how the company was facing up to this challenge: “We have done a lot of benchmarking – we have worked with consultants based in

The extraction samples storage area

“In terms of size, we have identified about 100 million tonnes of resource. We have a 3.6 million tonne per annum plant, a 25 plus year lifespan. Size is how we distinguish ourselves” – Sam Rasmussen, CEO

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CUPRIC AFRICA

Property PROPERTY Values, VALUERS,Managers MANAGERS & ESTATE AGENTS & REAL Estate Agents

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Katlego is a 100% citizen company. Formed in 1999 and has done jobs in most parts of Botswana. Mostly deals with central goverment, local councils and lately mining companies like KOEMACAU COPPER MINING IN MAUN. We thank khoemacau copper mining to give us a chance to show what we can do and open a door for us in the mining sector as it’s been dominantly foreign companies.

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Africa’s Exploration Laboratory 40 Years Experience Across Africa. Soil, Rock, Water And Drill Samples From Over 20 Countries

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Zone 5 staff

Botswana to inform our benefits strategy.” “We have made a commitment to the local communities where we look to resource lowerskilled positions from the local communities and the local district. Expatriates are built into our model and will be a reality for the first few years of our operation. We will have a job shadowing programme; for every expat we find a national counterpart. Skills transference will be closely monitored. “We are very mindful of the psychosocial aspect – they are surrounded by bush and sand for three weeks at a time. We operate in a

115 Number of jobs to be supported by Cupric Africa

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“We are very mindful of the psychosocial aspect – they are surrounded by bush and sand for three weeks at a time. We operate in a very remote part of the country and try to keep our staff busy on the social side so they have other outlets” – Clare Calver, Head of Human Resources and Communications

Management and team at Zone 5

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very remote part of the country and try to keep our staff busy on the social side so they have other outlets. We make sure that they have recreational opportunities. We have been very successful thus far and will continue to be so.” Furthermore, she adds that Cupric Africa has gone beyond the norm in an effort to


EUROPE

ensure that its workforce is well looked after, backed up by the consultancy work taken with Botswana specifically in mind. This has culminated in the provision of a comprehensive employee benefits package which includes pensions, medical aid and bonus schemes. In short, in just a few years Cupric has been able to become a significant player in Botswana and has done so by not only making the right financial investments, but also by ensuring that its teams are both well trained and well provided for. Its future, and potential legacy in the region are certainly both exciting.

Emergency assembly point, Khoemacau

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Leading the industry through sustainable solutions Rising to the top of the cement and readymix sector, Holcim prioritizes social, environmental and economic goals Written by: Eric Harding Produced by: Nguyen Cong Minh Bao


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Holcim Quarry

T

he leading supplier of cement and readymix in southern Vietnam, LafargeHolcim has a presence in 90 countries and is a world-wide leader in the building materials industry. But the company’s top priority isn’t only profit. Holcim Vietnam (HVL) is striving to balance its triple bottom line with economic growth, environmental performance and 82

December 2015

social responsibility. With initiatives such as “Together for Environment” and “Together for Communities,” HVL intends to increase environmental awareness and improve the society we live in. “With a commitment of driving sustainable solutions for better building and infrastructure, as well as contributing to a higher quality of life, Holcim is positioned to


AUSTRALIA

meet the challenges of increasing urbanization,” said Holcim Vietnam sustainable development director Nguyen Cong Minh Bao. History A member of LafargeHolcim Group, Holcim Vietnam employs about 1,300 people at its six main sites — including the head office at the Continental Tower (Ho Chi Minh city) and five plants at Hon Chong, Cat Lai, Thi Vai, Hiep Phuoc and Nhon Trach. The group has 115,000 employees worldwide, acting as the industry benchmark in R&D for the biggest and most complex projects. It maintains the widest range of valueadding products, innovative services and comprehensive building solutions, with core values revolving around health and safety. Following its core values: CRISP (Customer, Results, Integrity, Sustainability, Performance), with health and safety overarching all, HVL’s approach to creating value is based not only on economic performance, but on the environmental and social aspects of its operation. In short, the company’s “triple

bottom line” of economic, environmental and social is critical in helping the company reach its business goals and maintain its licenses to operate. Sustainability Since the manufacturing of cement involves extensive exploitation of non-renewable resources such as limestone and clay, environmental performance is a significant part of Holcim’s business strategy. Holcim implemented its “Together for Environment” program in 2009 to cover all activities aimed at reducing the company’s environmental footprint. The program also includes green manufacturing and environmental performance monitoring, as well as raising awareness of environmental protection for employees and the community. The Geocycle Vietnam business unit has played a big role in achieving such great sustainable development. The waste management solution not only benefits the environment, but also helps enhance companies’ reputations and its ability to achieve

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Mitec

MINH TIEN MINING CORPORATION

LEADER IN MINING, PRODUCING AND SUPPLYING POZZOLAN AND CONSTRUCTION MATERIALS THROUGHOUT VIETNAM

Mitec Corp has been a friendly most reliable source to supply Pozzolan & construction materials for over 20 years to: • Cement manufacturers • Dam & riverbank construction projects • Major infrastructure projects • Concrete supplying hubs • Tile & stone manufacturers

MITEC CORPORATION 54/31 – 33 Bach Dang 2, Ward 2, Tan Binh District Ho Chi Minh City, Vietnam Phone: +84 8 3991 9770 – 771, Fax: +84 8 3848 8748 For all inquiries, please contact Ms Vo Thi Quyen Quyen Mobile: +84 9 1884 0887, Email: miteccorp@vnn.vn

D.N.T. CONSTRUCTION TRADING SERVICE COMPANY

Innovative, Competitive, Efficient Construction Works to Hand over Every Project on Schedule We specialize in infrastructures, port construction, PC sheet pile production and installation, pilling work (RC piles and PHC spun piles), factory construction, steel structurals.

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Email: contact@dnt.com.vn Website: www.dnt.com.vn


H O L C I M V I E T N A M LT D

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sustainability goals. Additionally, Geocycle complies with all Vietnamese laws and regulations on such matters as well as Holcim’s own relevant standards. “The initiative is based on the fortuitous circumstance that, along with producing clinker, a cement kiln is a very environmentally friendly place in which to dispose of waste,” said Nguyen Cong Dong, Geocycle Director. With the cement industry developing technology to use waste products as substitutes for traditional fuels such as coal or

natural gas, Geocycle is a highly efficient process that helps reduce carbon emissions of cement plants and leaves no residue. “The continuing successful partnerships between Geocycle and its customers will not only result in cleaner production, but also contribute to improving the overall quality of life for society, as it moves ever-closer to a zero-waste environment”. Social responsibility As part of the Holcim’s “Together for Communities” initiative, a

Geocycle co-processing technology

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C O M PA N Y N A M E

Building bridge for the local community during Green Summer

wide range of activities have been used to meet objectives. Most of these actions are administered specifically to improve the quality of life of Holcim’s employees and their families, as well as the communities surrounding its operations. The initiative shows Holcim’s commitment to becoming a trusted partner of the community, and also creates a platform and vehicle for voluntary participation by different stakeholders and employees in social activities to develop a sustainable development mindset. According to Nguyen, Holcim 86

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believes these investments help improve the quality of life and sustainability of the communities where it has a presence. The company focuses on community development, infrastructure development and education promotion. In order to truly create prospering communities, Holcim is dedicated to working together with schools, nonprofit organisations, stakeholder groups and its own employees. Innovation Holcim has earned its reputation by


AUSTRALIA

delivering commercially superior solutions to their customers while installing state-of-the-art equipment and processes to ensure the most efficient manufacturing, with significant attention being paid to environmental protection. In its mission toward sustainability, Holcim focuses on limiting the environmental footprint of its production, specifically in regards to energy and water usage for producing each ton of cement. With a commitment to make major investments in the latest technologies, Holcim intends to develop an energy-efficient culture within its staff by embedding energy efficient habits of consumption into their daily work. This will be accomplished by upgrading current equipment to reduce the volume of electrical and thermal energy used, substituting fossil fuels with alternative fuels to generate fewer CO2 emissions and using mineral components in all products to preserve the quality expected by its customers. One of Holcim’s largest investments is the company’s

Waste Heat Recover (WHR) Power plant, which has been operating since 2012. The steam-cycle plant is among the first in Vietnam to use heat from the production process to generate electrical energy. The plant uses two waste heat sources: a kiln preheater exhaust and a clinker cooler exhaust. Since the WHR plant meets 25 per cent of the plant’s electricity requirements, it takes pressure off the national grid supply and significantly reduces CO2 emissions by an estimated 25,000 tonnes per year. This provides massive benefits to the environment, economy and society as a whole. Some of the company’s other investments include using a Vertical Roller Mill (VRM) to reduce energy consumption in cement production, installing bag filters to reduce dust emissions and perfecting co-processing technology in Hon Chong cement plant. Using co-processing in cement kiln technology, Holcim developed its operation using considerable investments in new technology for its co-processing actions at the Hon Chong cement plant.

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Hon Chong cement plant


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These innovations didn’t happen overnight, but instead came about through small, incremental changes initiated by Holcim’s goal of continuous improvement. This has led to Holcim receiving several national and international certificates, including ISO 9001, ISO 14001 and OHSAS 18001. “At Holcim Vietnam, continuous improvement is not only the task of constantly seeking out ways to improve processes, products or services, but also is considered a business strategy,” said Nguyen. “In over 20 years of operation, we have achieved a lot of important national and international certificates and have used them as crucial measurement criteria to streamline and improve our daily operations while maintaining consistency and quality.”

Talent management Holcim instills a commitment to health and safety in everything it does. The company’s “Zero Harm” plan has a goal of conducting business without having any injuries, while creating a safe and healthy environment for employees, contractors, visitors and communities. “This is how we intend to make a difference in the way we work, in our business and communities,” said Nguyen. In order to achieve this, Holcim maintains a global health and safety management system designed to continuously improve performance and manage risk. It also establishes a culture of safe execution through targeting operational discipline and communicating with all stakeholders on relevant issues.

“The Geocycle Vietnam initiative is based on the fortuitous circumstance that, along with producing clinker, a cement kiln is a very environmentally friendly place in which to dispose of waste” —

Geocycle director Nguyen Cong Dong w w w. h o l c i m . c o m . v n / e n . h t m l

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Bag house at Hon Chong cement plant

With a strong belief that employee development is a key aspect of a company’s success, Holcim has created several programs to help its workers at every level perform to their best ability. Holcim’s three key programs of Enterprise Vocational Education (EVE), Junior Engineer Trainees (JET) and Graduate Development Program (GDP) have supplied a strong knowledge base for first-level management employees. Along with other training programs such as Leadership and Supervisory Development, as well as the company’s Coach the Coach 90

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(CTC) program, Holcim’s soft skill training methods have been created to help employees improve their problem-solving skills and ability to handle difficult customers. “We are making every effort to continue our investment in developing and retaining our people,” said Nguyen. “We therefore believe in building a committed workforce that has each and every employee contributing their best to the organisation.” Ahead of the rest Constant change in the world and in the industry brings new


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challenges for the construction and building materials sectors, such as demographic growth, increasing urban development, climate change and environmental preservation. Holcim addresses these trends through providing spaces to live and learn, places to rest and work, infrastructure that facilitates mobility, along with innovations that maintain energy supplies. “These are the main missions of building materials, particularly those of cement, aggregates, and concrete solutions,” said Nguyen. “In providing what really matters, we will set the standard for the industry as a whole.” Holcim’s sustainability approach capitalizes on LafargeHolcim’s global presence of providing solutions towards meeting social, environmental and stakeholder challenges, with a goal of creating shared value with society. “Holcim Vietnam not only provides innovative cement, aggregates, ready-mix concrete products as well as associated services and solutions, but also develops sectorial offerings tailored to their specific needs,” said Nguyen. “Thus, we use our operational excellence to supply our customers efficiently, sustainably, and safely. “With our professional teams, assets, technologies, and strong manufacturing processes, our clients can trust the quality and the consistency of our products and solutions. We are setting the standard for the building materials industry.”

Company Information INDUSTRY

Construction HEADQUARTERS

81-84 Ham Nghi St., Dist.1 Ho Chi Minh City FOUNDED

1994 EMPLOYEES

1,300

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Innovating the future of drilling General Manager Brenton Wallace discusses growth, new technology, and high standards at Western Australia’s McKay Drilling Written by: Sasha Orman

Produced by: Jeffrey Bailey


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I

n 1990, Mark McKay formed McKay Drilling to provide highend specialized drilling services to Western Australia’s exploration and mining industries. Today, with state-of-the-art drilling rigs established from Brazil to the Pilbara region, McKay Drilling continues its dedication to bringing innovation and new technology to the mining sector. The McKay difference What makes McKay Drilling a supplier of choice for Australia’s major mining houses? The company’s willingness and ability to invest in new ideas and technology,

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with the goals of improving both productivity and workplace safety. This is a desirable trait in any supplier, especially one in a section of the industry where change tends to come slowly. “There’s quite a lot of innovation going on throughout the whole business, from small changes to the master changes in the drill rigs,” says McKay Drilling General Manager Brenton Wallace. Its latest fleet includes high-tech, hands-free drill rigs from Schramm Inc. and Boart Longyear that act as the ultimate in workplace safety. “The Boart LF350 drill totally


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changes the actual way of handling drill pipe,” explains “Mark McKay has Wallace. “It removes the operator, as well as the drill continually strived assistants, away from any interaction with pulling to look at different and running drill pipe in and out of the hole, from technology that commencement of the hole to finish of the hole. The sets McKay operator and the assistants don’t need to touch a drill pipe. It reduces potential for hand injuries, back strains, Drilling apart and any crushing or caught-between accidents that from other drilling can take place on drill rigs.” companies and McKay backs up the capabilities of its rig fleet changes to the with a battery of ISO certifications including ISO-9001, ISO-14001, and ISO-18001, proving way that we that its equipment is up to the highest Australian operate in the standards. With the impending acquisition of ISOfield” 55001 certification, McKay Drilling will be among the first Australian companies to achieve fleet – Brenton Wallace, and maintenance certifications to operate both in General Manager Australia and overseas.

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With Tatra, you don’t need to follow a path...

Offroad Trucks Australia are the Australian importer and dealer with branches in WA and QLD, and over 25 service outlets throughout the country.

Established more than 15 years ago, the company stock 100% spare parts and offer 24/7 service for the Tatra trucks and associated modules.

– Extreme toughness of frame extends superstructure durability – Operates in the hardest terrains & extreme climate conditions

Head Office 25 Garnet Way Maddington WA 6109 t: +61 8 9459 8911

Queensland 26 Heidi Street Paget QLD 4740 t: +61 7 4944 0988

e: tatra@offroadtrucks.com.au www.offroadtrucks.com.au


you create your own.


SUPPLIER PROFILE

OFFROAD TRUCKS AUSTRALIA “Offroad Trucks Australia partners with major mining, construction and emergency services operations throughout Australia. The company distributes specialist Tatra trucks that have been designed, engineered and manufactured in the Czech Republic for over 80 years. Based in Western Australia, OTA  has branches in the Queensland town of Mackay, as well as over 25 other service outlets providing parts, service and technical support to customers close to their base of operations. Spare parts for engine, driveline, suspension, and bodywork for all Tatra trucks sold in Australia are all on-site at local Tatra warehouses, ensuring maximum uptime for customers in time-critical industries. Technical support is always current - Tatra service personnel are rotated to the factory annually for training by design and development engineers, all highly experienced in off-road operations in the most hostile environments in the world. Tatra’s military and exploration reach crosses all borders, largely due to the unique Tatra driveline. The all-wheel drive systems are based on independent swing-axles that distribute traction evenly across all surfaces. Full articulation is available to each wheel, independent of its opposite number, maximising tyre tread contact with the ground. Electronic axle and inter-axle diff locks are driver controlled, and all axles are supported on Tatra’s unique tubular backbone chassis, which is built in modules, allowing drive and steer axle extensions as the application demands. As a result, Tatra trucks have the unique reputation of taking high gross weights across terrain that brings other all-wheel drive trucks to a halt. The air-cooled V8 diesel engine is renowned globally for durability, and the absence of cooling fluids and plumbing systems is a major advantage in locations where ambient temperatures are extreme, and support is hours or even days away. The recent availability of Allison automatic transmissions and a ROPS/ FOPS integrated cab extends the useability of the Tatra range.” Website: www.offroadtrucks.com.au


M C K AY D R I L L I N G

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The agility to innovate Innovation has been a core value at the heart of McKay Drilling since its inception. With a lifetime of drilling industry experience, founder and managing director Mark McKay is able to guide the business with a true insider’s perspective. Focusing on this value over the years has enabled McKay Drilling to increase safety and make a true difference within its niche. “McKay was one of the first companies 20 years ago to put hands-free operations and rod loaders on their drill rigs,” says Wallace. “Mark McKay has continually strived to look at different technology that sets McKay Drilling apart from other drilling companies and changes to the way that we operate in the field.” Keeping McKay Drilling privately owned and operated has allowed the company to stay agile and keep innovation a top priority. “In corporate structures or multifaceted businesses, the ability to change direction or change the way that you operate is a bit slower,” Wallace explains. “We can be nimble and change direction very quickly as the market deems,

Mark McKay Founder, Managing Director

Brenton Wallace General Manager

“The Boart LF350 drill totally changes the actual way of handling drill pipe. It reduces potential for hand injuries, back strains, and any crushing or caught-between accidents that can take place on drill rigs” – Brenton Wallace, General Manager w w w. m c k a y d r i l l i n g . c o m . a u

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Schedule Your Appointment Today:

9ehd[hIekj^HZWdZ7hkcWIj"H[][dYoFWhaI7+&'& (*>HI[hl_Y["FWhjiL[^_Yb[Ikffehj9WbbEkj0Ʊ+61 8 7129 0600

www.daimlertrucksadelaide.com.au


M C K AY D R I L L I N G

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whether there’s a boom or a recession, and if there is a requirement for new technology we can interact with it very quickly.” Growing against the current While the industry has faced a downturn, McKay Drilling has continued to find success through diversification of the services it offers clients. McKay has historically focused on reverse circulation drilling, but now the company has expanded to include diamond drilling and hydro drilling in its portfolio. “We have invested $23 million in capital expansion in the last 12 months. We’ve taken the opportunity to expand in the downturn and be ready for any upswing in the market that may come in the next 12-18 months,” says Wallace,

Aaron Earl Operations Manager

McKay Drilling’s reverse circulation rig w w w. m c k a y d r i l l i n g . c o m . a u

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M C K AY D R I L L I N G

Maintenance and Drill Team for LF350

noting that the company has made both large investments into new drill rigs and smaller investments into safety and capability enhancements for existing drills. The results of these investments 102

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are substantial: over the past year McKay Drilling has increased its staff from 45 to 142, and is on target to increase its number of drills from 14 to 22 by the first quarter of 2016, priming the company for whatever


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opportunities may lie ahead. “It’s opened up the door for us to work for some blue chip clients, who are giving us an opportunity because of the reputation the business has for being focused on delivering,” says Wallace. “We’re branching into other areas systematically and at a steady pace, where we can control our expansion, but also bring new technology to the table as well.” Looking forward What does the future look like for McKay Drilling? Regardless of the state of the industry at large, the focus for McKay will be on growth, developing further relationships with junior and blue chip mining operations alike in Australia and Brazil. “The business is moving forward, with expansion and consolidating our business with a mixture of blue chip and exploration clients. We’re focusing on diversification so we don’t have all our eggs in one basket,” says Wallace. “Within the next 18 months we hope to grow to a 25 drill operation.” But the company is not focused on growth alone—the key is controlled and steady growth while continuing to improve every stop of the way. “In the process of expanding, we are bringing the rest of our equipment up to the latest standards that are out there, to offer it to our clients,” he adds. “The aim is to reduce our exposure to injuries with the help of innovation and training our people.”

Company Information INDUSTRY

Drilling equipment and services HEADQUARTERS

42 Prestige Parade Wangara Western Australia Australia 6065 FOUNDED

1990 EMPLOYEES

142 REVENUE

$50 million

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The next chapter in Australian manufacturing Using farmer’s ingenuity, Hedweld Engineering has grown to become a world leader in the design, manufacture and export of mining equipment. The launch of their new manufacturing facility will take the Australian to the next level. Written by: Robert Spence Produced by: Jeffrey Bailey 105


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Trilift TH15000 Workshop Tyre Handler removing wheel assemblies from a Cat 789C

T

he next piece in Australian innovation is quietly being assembled in the heart of the Hunter Valley coal mining region in New South Wales. Along with launching a slew of new products aimed at enhancing safety aspects of the mining industry, Hedweld Group of Companies is preparing to open a world-class, 4

December 2015

$8 million manufacturing facility in Hunter Valley that will become home to the most advanced robotic metal processing technology and equipment in the world. From the beginning Founded in 1980 by Ian Hedley, a fourth-generation farmer, the company originally began serving


SECTOR

the local mining industry of Hunter Valley mainly through small repairs and fabrication. Using farmer’s ingenuity, the small family business has grown to become a world leader in the design, manufacture and export of mining equipment. Today, Hedweld Engineering provides innovative products specifically designed and built

to improve safety, efficiency and productivity in the mining and earthmoving industries, offering two proprietary products: Trilift® and Safe-Away®. The Trilift series of products are specifically designed to assist with the removal, installation and handling of components on mining and heavy earthmoving vehicles. w w w. h e d w e l d . c o m . a u

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HEDWELD ENGINEERING

Hedweld’s advanced manufacturing includes CNC machinery

“The majority of our products are safety related that provide efficiencies in maintenance,” said Mark Gream, Global Products Manager. “Trilift improves maintenance handling by using the latest design techniques and technology to do things smarter. It provides a safer working environment for maintenance staff, which can lead to achieving zero harm, and it can also reduce the number personnel required to perform maintenance tasks freeing up labor for other duties.” Safe-Away is another trademark product from Hedweld. It provides 108

December 2015

technologically advanced access options for most makes and models of truck, dozer, loader, grader, scraper, shovel, excavator and drill rig. According to Gream, the majority of Hedweld’s products come as requests from customers, equipment manufacturers and end users. “They’ll tell us they have got a problem with a specific task. We’ll go out and do some engineering and design work, and then develop it into a mainstream product,” Gream explained. In addition, Hedweld is currently trialing a range of brand new,


MINING GLOBAL

Hedweld staff at Information Day Dec 2014

benchmark-shattering products. Expected to be launched in early 2016, the company is gearing up to release the following products: Universal Wheel Nut Tool; Universal Body Pin Handler; WAC30 – 30T Wheel Assembly Carrier; CR20000 Component Rotator; Cat 795 Generator Hoist; and Variable Height Sliding Stair. In keeping with its savvy farmer’s mindset, Hedweld is looking to diversify into new industries in order to sustain its business from the recent mining downturn. One such product is Milbrotec, with the first product line being innovative

fencing system designed to improve conventional fencing installation methods. “We’re taking what we’ve learned over the years and bringing it to the agriculture industry,” said Gream. The unique design of Milbrotec fencing system allows users to easily erect, remove and replace fence posts, while minimizing the labor intensive, timely and heavy installation process. “The creation of Milbrotec is a testament to Hedweld and its ability to leverage its existing people, skills and assets, particularly its advanced robotics and technology and w w w. h e d w e l d . c o m . a u

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HEDWELD ENGINEERING expertise in research and development.” Milbrotec has also designed a floating fencing system that allows users to elevate their posts and wires when rivers or creeks rise, ensuring debris doesn’t collect at the fence and livestock are safely preserved.

Ian Hedley Managing Director

Focus on innovation, focus on education Hedweld has been working with TAFE – Australia’s leading vocation education and training provider – to create a pilot on-site training program for first year boiler makers and welders. The program aims to ensure Hedweld’s apprentices are at the forefront of cutting-edge

®


MINING GLOBAL

technology like machining and robotics, which the company believes will revolutionize the way they process steel components. “With the new facility and world firsts in machinery, we will continue to develop our own training programs and have people upskilled to utilize the equipment and technology we have,” Gream said. “We worked with TAFE to develop our own course material because we felt like it could be improved. Training is something we pride ourselves in, and it’s something we’re investing heavily in.” Furthermore, the company actively collaborates with industry experts on a various levels, including partnering with a number of organizations to push the envelope of innovation. “We’re collaborating with a range of companies and organisations that specialize in things like automation, hydraulics, and even vision technology,” said Gream. Monumental advancement for Australia manufacturing Opening in February 2016, the expansion of Hedweld Engineer’s new Mount Thorley facility will propel the company into the future of manufacturing. Hedweld is investing $8 million into the advanced manufacturing facility, including $2 million from the Commonwealth’s Manufacturing Transition Program, which seeks to encourage

Mark Gream Global Products Manager

“With the new facility and world firsts in machinery, we will continue to develop our own training programs and have people upskilled to utilize the equipment and technology we have” – Gream said

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Safe-Away EL-RTV Electric Ladder on a Komatsu Dump Truck 112

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MINING GLOBAL

Australian manufacturers to invest in more sophisticated and knowledge-intensive manufacturing. The new Mount Thorley manufacturing facility will incorporate state-of-the-art CNC machinery and robotics. “Some of the technology we’re investing in is not only a first in Australia, but also a first in the world,” said Gream. “It’s going to allow us to be fully automated and push us to the next level of manufacturing.” The innovative new machinery includes: Mazak FabriGear 400 Beamline Laser Tube cutter; Mazak Super Turbo-X 3Kw sheet laser cutter; Kinetic K5000 Plasma & Oxy Machine Plateline Cutter; and Okuma U4000. According to the company, the new equipment means that Hedweld will be able to offer its advanced manufacturing services to, and collaborate with, other Australian manufacturers - producing their high volume products locally, to help keep them globally competitive. The Mount Thorley facility in New South Wales is expected to usher in a new era of manufacturing in Australia, and will become the driving force for keeping Hedweld competitive with product development and advanced manufacturing techniques. “We want to become the manufacturing benchmark for the future and help other Australian organisations and manufacturers to learn from us,” said Gream.

Company Information INDUSTRY

Mining & manufacturing HEADQUARTERS

13 Russell Road, Mt Thorley Singleton New South Wales Australia, 2330 FOUNDED

1980 EMPLOYEES

85 REVENUE

Confidential

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Profile for Mining Global

Mining Global Magazine - December 2015  

Mining Global Magazine - December 2015