Terracom Africa

MAXIMISING MULTI-NATIONAL MINING MASTERY

FORGING AN INTERNATIONAL COAL-ITION

TerraCom is an Australian-based mining resources company encompassing an impressive portfolio of operating assets and exploration projects within the national coal sectors of Australia and South Africa. We learn more about this global operation with a community-centric core from Managing Director, Danny McCarthy

Writer: Ed Budds | Project Manager: Eddie Clinton

OPERATIONS AND MAINTENANCE PARTNER OF CHOICE

Operations of Processing Facilities

Feasibility and Due Diligence Studies

Engineering Design and Fabrication Design

Coal Processing

INGWENYA MINERAL PROCESSING:

A South African owned mineral processing company with 52% black shareholding based in Emalahleni Mpumalanga Province.The company was incorporated in 2006 to service the mining industry in contract mineral processing.

and Build of Processing Plants

Coal is a cornerstone of Australian industry. Built on the efforts of hardworking Australians across regional operations, the sector has a strong future which promises to meet all the requirements of a modern economy.

Despite the ongoing negative rhetoric concerning coal, Danny McCarthy, Managing Director of TerraCom, believes that the resource will remain at the forefront of Australian industry for a long while yet.

“Whilst alternate energy sources are discussed and strategised over, the coal industry will continue to keep the lights on in Australia and indeed around the globe until a like-for-like

AFRICA OUTLOOK:

DANNY MCCARTHY, MANAGING DIRECTOR: “At TerraCom, we are focused on motivating and empowering our employees, resulting in higher job satisfaction, improved work performance, and a greater commitment to the company.

“As Managing Director, I am deeply committed to making a positive difference and it is important that our vision, purpose, and values are known, understood, and lived by all employees.

“Our vision sets out what the future will look like, our purpose outlines why we exist, and our values are the fundamental shared beliefs and internal code of conduct which inform and inspire the ethics, behaviour, communication style, and culture within our company.”

energy source can eventually replace it,” he introduces.

Coal mining in Australia is a highly sophisticated and high-tech process. Continuous improvements in mining technology, occupational health and safety and environmental performance have ensured Australia’s standing as an efficient and reliable producer of high-quality, low-cost thermal and metallurgical coal for the domestic and international markets.

Regarding South Africa (SA), TerraCom’s other major operational market, coal mining underpins the nation’s economy and is an important contributor to its success and longevity. Coal usage is integral to SA’s energy sector and over the course of the past decade, the nation’s public-owned utility, Eskom, announced the construction of the Medupi and Kusile coal-fired power plants to enable continued electricity supply for its people for decades to come.

Growing up in Central Queensland, McCarthy’s interest in the mining industry commenced at a young age. His father was an underground miner who transitioned to surface mines in the late 1970s, and it was this early exposure to the industry that ultimately led to McCarthy forging his own path within it.

“I was intrigued by the sheer size and complexity of the mining process,” he recalls.

Fast forward through 27 varied years in the mining, minerals processing and resources sector within Australia, and McCarthy started working with TerraCom as Chief Executive Officer in December 2018, as the company was poised to start implementing an improvement agenda focused on long-term sustainability for employees and shareholders.

EXPANDING A GLOBAL REACH

Having grown significantly to now boast a global footprint, TerraCom is

an Australian-based mining resources company, comprising a large portfolio of operating assets in Australia and SA with an impressive suite of exploration projects within the vast coal sectors of these two nations.

“We are a renowned low-cost producer focused on delivering exceptional outcomes from our highyielding diversified asset portfolio for investors,” explains McCarthy.

On a combined basis, via both direct and contractor engagement, TerraCom now employs approximately 3,600 people worldwide.

“Our people are our business, and their continued dedication allows us to consistently deliver products to our customers every day of the week, and every day is the chance to better the achievements of yesterday,” he continues.

The Australian business unit of TerraCom comprises the flagship Blair Athol coal mine located in Clermont, Queensland, as well as a large portfolio of exploration and evaluation assets predominantly located in the Northern Galilee coal region.

The life of the Blair Athol mine is projected at more than eight years at the current run rate of 2.2 million tonnes for export, and TerraCom continues to explore several potential near-mine expansion opportunities which could see the facility utilised as a processing precinct for many decades to come.

In SA, TerraCom, via its 100 percent ownership of Universal Coal Plc, holds an interest in a portfolio of producing, development and exploration assets located across the nation’s major coalfields. There are currently three operational mines including the North Block Complex, New Clydesdale Colliery and Ubuntu Colliery.

The SA operations provide domestic quality coal to Eskom, and also supply high quality export coal to customers via the Richards Bay and Maputo coal terminals.

HOW DO YOU EMPOWER YOUR STAFF AND RECOGNISE THE VALUABLE CONTRIBUTIONS THAT THEY MAKE?

Customer focus is our priority. In line with our motto of ‘Operational and Maintenance Partner of choice’ operate 12 coal-processing facilities for different clientele: Universal coal, Thungela coal, Menar, Canyon coal, Salungano, Overlook, Ikwezi and ArnotOpco. In 15 years, Ingwenya Mineral Processing (Pty) Ltd has completed 13 Coal Processing and Handling Plants Capital projects, and seven retrofits and modifications. Ingwenya specialises in contract mineral processing consulting services with a specific focus on the coal industry.

Our areas of expertise comprise:

• Operations and maintenance

• Design and build of plants

• Engineering design and fabrication

• Feasibility and due diligence studies, trouble shooting and optimisation

Operations and Maintenance Specialist

We operate different types of DMS plants of varying capacities incorporating the following beneficiation equipments: Drum, Cyclone or 3-Product Cyclone, Larcodem, to produce Powerstation coal, RB1/RB2/ RB3, and metallurgical sized products according to client needs. We rely on our dedicated, competent and efficient teams to produce coal that meets required specifications and targets. A group of specialist process engineers, mechanical and electrical engineers supports the operations with expertise to ensure seamless production.

Design and build of processing plants

Our modular plants can be summed up as cost effective, simple, flexible and easy to operate and maintain. This reduces fabrication time and erection costs and also ensures that projects are delivered at short lead times.

The modules are designed to accommodate future expansion by just adding onto the existing module sharing the peripherals. Our plants are tailor-made to suit client specific needs, flexible to treat different seams and to produce single or multi products to cater for different markets. Our modular plants are easy to dismantle and relocate elsewhere.

Ingwenya has developed strategic partnerships with OEMs, which assists in acquiring expertise in leading technology to ensure efficiency from the design phase straight into production.

We design and build Slew stackers suitable for Eskom products. It can rotate 220° to build five conical stockpiles of 5,500 tons each. Slew stacker can build one 5,500 tons stockpile in nine hours. We also build smaller product stackers capable of building two stockpiles of 3,000 tons each for smaller operations or crush and screening operations.

SHEQ

Ingwenya is committed to the highest standards of safety, health and environmental performance and fully supports the SHEQ management standards and systems of our clients.

Our advantage point: Bomax Engineering Workshop

Ingwenya has a fully equipped in-house 4,000m2 engineering workshop located in Hendrina, Mpumalanga, where we fabricate our own steel structures and platework. The workshop has a well-qualified and experienced team in Fabrication, Construction and Maintenance. The workshop supplements the operations in terms of upgrades, installations, maintenance and shutdowns.

In the future, Ingwenya intends to diversify into other commodities and grow its portfolio beyond local borders.

INSPIRATION THROUGH ACCOUNTABILITY

TerraCom currently finds itself in a unique position whereby it does not have the bureaucracy that some larger organisations in the industry have.

“We are flexible and agile, and this allows us to quickly adjust to meet the changing demands and parameters of the market, internal business requirements and stakeholders,” McCarthy outlines.

The main ethos of the company is “we do what we say”, which is extremely important both within the organisation and when dealing with external stakeholders. TerraCom strives to maintain a high level of leadership and show accountability for everything it does, and this subsequently inspires its entire team to remain committed to goals, be attentive during all tasks, and crucially, never lose sight of opportunities to grow.

“Our mantra is simple yet compelling – be better than our peers, deliver reliable and consistent products, and be cost-conscious with every dollar spent. There is no ‘done’ or finish line; our sights are continually honed on being better at every turn. With each interaction, every movement and motion, we aim higher and higher and higher, and we do it at every chance we get,” he adds.

This is critical in building positive community relationships. Indeed, the strength and success of TerraCom, whilst founded on its people, is underpinned by long-term business partnerships with several key equipment and contracting partners.

“As part of our everyday actions, we strive for continuous improvement. We know there’s always something to learn from what we’ve done; whether that be the way we act, the choices we make, how we live out our cultural values or how we treat each other and the wider community,” McCarthy says.

Monandi Group

Monandi Group was established in 2015 by Kriven Maharaj (Director) who has experience in the mining industry since 2013.

The company has been working with major mining groups within the Mpumalanga region providing material handling services and stockpile management. We strive for excellence service delivery so our clients can meet their targets on a monthly basis. We are a Level 1 B-BBEE company which focuses on creating job opportunities for the locals around the Mpumalanga region.

www.monandigroup.co.za

Current Projects

• Loading and hauling 350,000 tons of Export and Eskom Coal

• Material handling and Stockpile Management

Shape and level ROM, crushing boulders, compaction and road maintenance.

• AshDam Project

Supply machinery for material handling

Our Assets

• Front-End loaders

• Dozers

• Packers

• Excavators

• 10-Cube Tipper Trucks

• Diesel Bowsers

• Compactors (All machinery is well maintained through OEM)

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Elsewhere, TerraCom also works cooperatively with local communities to progress its projects both in Australia and internationally, and is committed to a positive programme of engagement in every community in which it operates.

In Australia, the Blair Athol mine plays an integral part in the Clermont community. In addition to providing community group support, TerraCom has recently completed the onboarding of 16 local traineeships and is launching an apprenticeship programme providing careers in mining and skills pathways to further support the future of Clermont and the wider central highlands region.

Further to these communitybuilding initiatives, TerraCom is also a well-regarded supporter of CQ Rescue, a community-funded rescue helicopter service based in Mackay, Queensland. CQ Rescue is an instrumental service across Central

and North Queensland, providing the community and stakeholders with a sustainable and supported, worldclass aeromedical and emergency helicopter rescue service available to anyone, anywhere at any time.

For the South African strand of the business, TerraCom, via its subsidiaries, has identified education as a key area that will change the lives of the youth in the company’s host communities and will therefore continue to offer skills, training programmes, internships and funding for higher education and donations to local schools across its operations.

MAXIMISING AN EFFICIENT SUPPLY NETWORK

TerraCom transports products from its mining facilities to customers by rail, train, truck and ship. The business partners that provide the company’s supply chain services are wellestablished, reputable firms that are

deeply engrained in the industry.

It is TerraCom’s preference to always work with local suppliers, in order to promote local community growth and support the availability of skilled labour, goods, and services from stakeholders near its operations in both Australia and South Africa.

The reality is, successful partnerships don’t just happen, and TerraCom recognises the genuine relationships that it has built with its customers and valuable business partners who have supported the company along the way.

“These highly reputable and established relationships emphasise accountability across all areas of our business; we focus on priorities and gauge business metrics to track and measure performance which help us to thrive, creating more value than we otherwise would,” ensures McCarthy.

Of equal importance to TerraCom is protecting the unique environment of the areas in which the company

operates and managing social responsibilities with immense sincerity.

“Our commitment is being responsible to minimise our impact, to progressively rehabilitate areas disturbed during our operations, and preserve or restore the longterm health and sustainability of the environment where we operate,” McCarthy tells us.

The advancement of this rehabilitation is being completed progressively at TerraCom’s Blair Athol mine in Clermont and its South African

operations, with the aim of significantly reducing rehabilitation activities at the end of the mine’s life. The mine currently has dedicated rehabilitation equipment and resources to undertake the necessary rehabilitation works with additional support from the production dozer fleet.

PROMISING NEXT STEPS

It is now TerraCom’s immediate focus to continue to ensure dividends flow to shareholders and the company remains open to the right growth

opportunities that pass its strict investment criteria.

“Ensuring responsible management of capital within our recently developed framework is a key focus, and our growth agenda is governed by responsible decision making for opportunities that add value to our story,” wraps up McCarthy.

The story of TerraCom is one that looks set to continue unwinding in exciting new directions and promises to deliver a highly satisfying overarching narrative for all characters involved, in line with the company’s relentless ambition for forward progress.

info@terracomresources.com

www.terracomresources.com

“OUR PEOPLE ARE OUR BUSINESS, AND THEIR CONTINUED DEDICATION ALLOWS US TO CONSISTENTLY DELIVER PRODUCTS TO OUR CUSTOMERS EVERY DAY OF THE WEEK”

– DANNY MCCARTHY, MANAGING DIRECTOR, TERRACOM