Smr march pageturn 2018

2018 MARCH IN REVIEW

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Vol:107.No:03

1912-2

018

Mining Equipment Uncovers More Competition P 06

CHINA'S COAL GAIN FALLS P 14

INSIDE STATISTICS

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...From the Editorial Desk MARCH 2018 VOL.107. NO.03

PolyMet 's Profit

P

hase

I

would include about

additional

50

or so for the

300 employees, with Stage II adding PolyMet job what could be Minneso-

ta's first-ever copper mine that fans are hoping it is going to be

a blessing to the regional market.

Skillings Mining Review publishes comprehensive information on global mining, iron ore markets and critical industry issues via our monthly magazine, weekly E-newsletter, annual mining directory and real time website.

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PolyMet said it will not build Phase II until the mine and processor are up and running and earning earnings. If Phase II is built the total protect construction price would reach $1.2 billion, with earnings jumping to $271 million annually. That is on top of the $300 million PolyMet already has spent to get to the stage, such as technology, exploration and environmental review and preparation.

The projected PolyMet copper-nickel mine around Hoyt Lakes will charge nearly $1 billion to construct, but will earn a $173 million annual profit for 20 years for the business after taxes and other expenditures. The company released its new technical and financial viability report aimed at investors and regulators. The report predicts the company will have to raise $945 million to build Phase I including opening the mine and restarting the former LTV Steel processing center. PolyMet hopes to acquire federal and state permits and be cleared to mine, possibly later this year, then will have to locate an investor or lender ready to front that construction money.

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March 2018 SKILLINGS MINING REVIEW | 3

IN THIS ISSUE

MINING EQUIPMENT UNCOVERS MORE COMPETITION P 06

P 14

CHINA'S COAL GAIN FALLS

THE CONCISE MINE P 10 PROFESSIONAL’S EDUCATION COMMENTARY

Quebec (QIO)..............................................................12

PolyMet 's Profit.........................................................03

PolyMet Fight Update................................................13

COVERSTORY

IRON RANGE REGION

Mining Equipment Uncovers More Competition......06 COAL China's Coal Gain Falls...............................................14 MINING INDUSTRY FINANCE Who is Dumping The U.S. International Market 101?................................................................09 MINING EQUIPMENT Komatsu's Market of New - (the joy global of old)...............................................10 IRON ORE Quebec Iron restarts Bloom Lake Mine Statistics.............................................................. 22/23

4 | SKILLINGS MINING REVIEW March 2018

The Concise Mine Professional’s Education...........................................18 INDUSTRY INSIDER Golder Unveils Refreshed Brand...............................05 Haver & Boecker launch new Ty-Rail configurations............................................................08 ASV Announces Justin Rupar as New Vice President of Sales & Marketing................17 STEEL Great Lakes and Tariffs Growth of Steel...................15 ArcelorMittal to Purchase and Pay...........................16 Mining People............................................................ 21

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We thrive on challenges Golder Unveils Refreshed Brand

INDUSTRY INSIDER

G

o l d e r , a l e a d i n g g lo b a l

a milestone marker in the company’s history, a momentum builder for the future, and a representation of Golder’s commitment to its clients and communities.

engineering and consulting firm, unveiled its refreshed

brand in January.

This

has been the

first major refresh of the company’s brand in over half a century.

golder.com

“Golder has enjoyed a long and successful journey, responding to incredible challenges with a powerful resilient spirit, driven by our employee owners and their commitment to our company,” says Golder CEO Dr. Hisham Mahmoud.

“Updating our brand isn’t just about our logo, it’s about sharing our success

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story more broadly with the world.”

As a client-centric, employee-owned company, Golder is constantly striving to be differentiated in its chosen markets. The update of the brand is a result of direct insight and feedback from employees and clients worldwide.

It is much more than a new logo; it is

Golder works on some of the world’s most challenging projects. From deep mine shafts in Africa to tall building foundations in Australia, from an airport in Hong Kong to pipelines in Canada, from tailings management in Chile to waste management in the US, from transportation tunnels in the UK to groundwater remediation in Italy, Golder professionals are delivering real value to its clients and communities.

March 2018 SKILLINGS MINING REVIEW | 5

COVERSTORY

Uncovers More Competition The increase of mining equipment market is firmly depends on economic conditions, demand for supplies, and number of mining projects. Moreover, stringent mandatory regulations are forcing mining companies to replace their outdated to enhance mining process and labors safety. Advanced mining equipment reduces need of manpower and boosts the efficiency of mining procedure which is influencing the need for all these equipments.

Based on product type, surface mining equipment accounted for the biggest revenue share in 2015. The requirement for surface mining equipment is predicted to grow steadily with rising demand for valuable mines.

Underground equipments are expected to see the fastest growth in comparison to other product types. This growth is

6 | SKILLINGS MINING REVIEW March 2018

largely attributed to rising adoption of energy efficient mining gear across the globe due stringent energy efficiency regulations.

Metal mining is the largest application segment for mining equipment and anticipated to maintain its dominating position with rising demand valuable

metals such as gold, platinum and silver.

Furthermore, complex and large scale performance will be forcing metal mining companies to deploy innovative mining equipment to improve operating efficiency and reduce operating costs.

Coal is important supply of electricity and heat generation. The demand for mining equipment is rising steadily with improving economic conditions and increasing demand for electricity throughout the planet. Asia Pacific is the largest regional economy in the global mining equipment marketplace.

Asia Pacific is forecast to maintain its dominating positions throughout the forecast period with increasing demand

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from China and India. Asia Pacific also expected to see the fastest growth for mining equipment throughout the prognosis period.

The worldwide mining equipment market is concentrated with large number of established multinational gamers. Worldwide players are facing competition from low cost Chinese producers such as China National Coal Mining Equipment, Northern Heavy Industries Group and also Zhengzhou Coal Mining Machinery Group.

in the long run due to rising limitation on coal mining activities and coal based power plants. Open pit mining has become easily the most attractive market for surface mining equipment supplier due to rising demand for diamond and copper.

Drilling, transporting and loading equipment are also expected to witness considerable growth with climbing mining activities in emerging economies. Asia Pacific is the largest regional economy in the world surface mining equipment industry. The region is

predicted to keep its dominating positions throughout the forecast period with rising demand from China and India.

Rising replacement of outdated machineries with innovative alternatives is expected to push the demand surface mining gear in North America and Europe.

Latin America and Africa will also be predicted to observe significant growth throughout the forecast period using growing mining sector in these areas.

The international surface mining equipment market is called to witness substantial growth with improving economic conditions and increasing demand for minerals and metal across the world. The outside mining equipment market is increasing steadily with steadily rising population and rising demand for metal and minerals throughout the world. Furthermore, regaining construction business represents a positive outlook for surface mining gear.

Mine operators in U.S., Europe and Japan are replacing their older machineries with innovative solutions in order to offer quality aggregates and fulfill high international demand. Furthermore, strict government regulations in these markets are increasingly forcing mine operators to deploy complex machineries and equipment to decrease emission and match security regulations.

Based on mining process, strip mining is the most significant software marketplace for surface mining equipment. The marketplace for surface mining equipment used in strip mining is expected to witness slow increase

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March 2018 SKILLINGS MINING REVIEW | 7

MINING FINANCE

Haver & Boecker launch new Ty-Rail configurations

H

aver

& Boecker,

a leading equipment manufacturer and solutions

provider in aggregates and mining applications, introduces new config-

Ty-Rail quick-tensioning system for screen media. As a result of Ty-Rail’s success, Haver & Boecker developed and now offers three angle-box designs for different vibrating screen setups. urations of its

This allows producers to benefit from Ty-Rail’s time savings during screen media change-outs, even on difficult-to-access areas of a vibrating screen. The patented Ty-Rail system is designed specifically for Haver & Boecker’s Tyler brand of vibrating screens and now comes standard on all new F-Class and T-Class machines with 3-bend tension rails.

The system solves an age-old problem of time-intensive screen media change-outs. Replacing tension rails is typically time consuming and requires removing and replacing many pieces of hardware per screen section. Washers or bolts are often dropped or lost in the process, which adds to downtime and parts costs.

8 | SKILLINGS MINING REVIEW March 2018

Ty-Rail eliminates this problem by combining the tension rail and all of its hardware into one piece. The new Ty-Rail angle box designs provide the ability to change screen media in half the time, even in tight or hard-to-reach areas.

Haver & Boecker showcased the Ty-Rail system during AGG1 2018 in Houston. “Our goal is to continually develop new ways to help our customers achieve more productivity,” said Karen Thompson, Haver & Boecker Canada president. “Our patented Ty-Rail system is just one way we are achieving that goal. The feedback from customers and the positive impact on their operations encouraged us to develop additional configurations to accommo-

date more screen designs and applications.” The standard Ty-Rail configuration requires operators to loosen bolts and shift the angle box gates up to remove the tension rail. This is ideal in easily accessible areas of a vibrating screen. However, some screen designs can limit access to some of the tensioning bolts. Haver & Boecker engineered two additional angle box designs for reverse and tight areas. The reverse design allows maintenance technicians to loosen and remove bolts from the inside of the vibrating screen instead of the outside. This eliminates the tedious task of using an open-end wrench to access difficult areas, such as a bolt between coil springs and the side plate, and risk dropping small parts.

The tight-area design flips the angle box 180 degrees from the standard angle box configuration, allowing producers to loosen the bolts and drop the angle box gate rather than lift it up. A reinforced strap secures the gate during screen media change-out. This design allows the use of Ty-Rail even on parts of a machine where an angle box gate couldn’t be shifted up, such as below a wheel guard.

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Who is Dumping

The U.S. International Market 101?

T

he

USA,

like many other nations , has rules

against dumping, by which they imply selling goods at than fair value.

Here are rules against

selling unnaturally subsidized goods.

When an industry believes it's seen dumping or even an unfair subsidy, you will find well-established procedures to follow along. It files petitions with the United States International Trade Commission and the Department of Commerce. Each service then conducts an investigation. The USITC looks at whether the domestic industry was injured.

Even the Department of Commerce either considers the extent to which goods have been sold at less than fair value (the dumping margin) or attempts to gauge the amount of the illicit subsidy. If both agencies make the requisite findings, the result is going to be a tariff contrary to the foreign producer. This occurs a lot. A major reason China is a minor supplier of steel to the United States, not even cracking the top 10 of U.S. import sources.

partners. Anti-dumping and anti-subsidy actions are well-established in global trade law. The only real disputes are over whether proper procedures have been followed, not to the fundamental idea. Loose claims of domestic security motivations are another issue.

Such weak reasoning will damage the international trading system and draw retaliatory actions from aggrieved partners.

In the event the president and his administration want to make the situation that imports of steel and aluminum into the USA are unfair, then they've well-honed tools to do so.

However, the aluminum and steel tariffs the president has suggested are being chased under an entirely different law and an entirely different process. Section 232 doesn't involve the USITC, nor does it need any investigation into whether overseas providers are jobless. The investigation conducted by the Commerce Department, on which the president’s action relies, reported no signs of ditching, cheating or illegality. Its findings concentrated, rather, on the difficulties faced by the national steel industry.

It then blithely equated these with a challenge to national security. Why does it matter if there's been cheating? It is the difference between the aluminum and steel businesses' seeking a handout at a step to look for redress and fairness wrongs along with the expense of their fellow citizens. The latter pitch has more public appeal. Second, the cause of the trade action makes all of the difference for relationships with our trading

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March 2018 SKILLINGS MINING REVIEW | 9

MINING EQUIPMENT STEEL

Komatsu's Market of New the joy global of old While enhancing mining and construction markets have been a part of this Komatsu narrative for a little while today, the potency of this recoveries (particularly in mining) has surpassed expectations, as has Komatsu's operating leverage and implementation. With major mining businesses just beginning to re-invest in gear and tons of space to increase in automation-driven investments, Komatsu could nevertheless provide some upside down.

The stocks are not economical on a free cash flow basis, but that is not really that odd plus also a forward multiple in accord with long-term averages indicates 10 percent more upside down with the chance of additional upward revisions.

Automation continues to be an significant part Komatsu's prognosis for a while, and that's not going to change.

10 | SKILLINGS MINING REVIEW March 2018

To begin with I think it's necessary to see that Komatsu is both a supplier of automation along with a beneficiary. The business utilizes its KOMTRAX working hour monitoring capabilities to adjust production schedules because of its building gear, making its plants and lines much more efficient and better fitting distribution with expected demand. Komatsu has also been embracing industrial IoT technology to operate its plants better.

By better organizing generation, Komatsu requires less manufacturing equipment and management believes that this may ultimately result in discounts of 30% to 50% in the quantity of machine robots and tools it ought to operate its manufacturing lines. This is an element of industrial IoT adoption which has

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not gotten nearly as much attention and it is surely a data point to consider when assessing companies such as Fanuc and DMG Mori later on. Autonomous trucks (along with other gear kinds) have been in existence for some time today, however, the LANDLOG and TRUCK VISION chances are only emerging on the building side. LANDLOG gathers data during the analysis, design, construction, and maintenance phases from all sorts of resources (survey gear, drones, building machines, etc.) to help produce real-time reports and plans, allowing construction and engineering companies to make the most of machines they've, minimize down-time, and better organize the whole process (like scheduling deliveries of supplies/components).

to iron ore stays slow. Given that the size of the aluminum market, I feel the symptoms of recovery below are extremely reassuring for Komatsu's near-term prospects. I would similarly notice that many companies providing the mining sector have been stating that the significant foreign operators ' are only just beginning to open the purse strings to get new gear, implying that this retrieval cycle may still have some space to operate.

The potency of this mining recovery in Komatsu proceeds to surprise into the great, with total earnings up 53 percent in the past quarter and 50% natural increase in the underground mining operations, the prior Joy Global lineage, and much stronger growth in initial equipment sales.

Profitability is coming along well, with double margins from the mining industry and continuing volume-driven leverage.

As time continues, I anticipate automation to become increasingly more significant in the Komatsu's mining and construction companies.

Japan is currently dealing with a lack of trained and professional construction employees and automated systems might help compensate for all those labour shortages. Similarly with mining - seasoned miners are aging outside and labour prices are increasing significantly, which makes automatic gear and much more coordinated preparation increasingly important to the bottom line.

Along with the above recovery in mining, the Komatsu's construction equipment company appears to be on an enhancing trajectory.

Gear orders for copper mining seem to be just beginning to recover, whilst require attached

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March 2018 SKILLINGS MINING REVIEW | 11

IRON ORE

Quebec Iron restarts Bloom Lake Mine Quebec (QIO)

T

he very first train represents a concrete step towards understanding

Bloom Lake's

capacity

to develop into a significant provider of high

excellent iron ore into international markets.

For the

restart, a significant operational attention involved optimizing the separation circuit to materially enhance the ore recovery speed, and the

focus hauled today shows that QIO has been effective in achieving this important goal.

Having a CAPEX of CAD326.8 million, for example CAD157.2 million spent on updates before this mine restart, Bloom Lake is a large project project that's set to lead to a new age of wealth into Quebec's North Shore area. As detailed in the March 17, 2017 Bloom Lake Mine Feasibility Study, a copy of which can be found under the organization's profile SEDAR, the Mineral Reserves for the mine are estimated at 411.7 million tonnes and the mine is currently forecast to create over CAD15.1 billion in earnings during the next 20 decades, underlining Bloom Lake's capacity to become among the area's top long-life iron ore mines and also a significant contributor to the Quebec and Canadian markets.

accessibility to a few of the world's biggest customers of iron ore for Bloom Lake's high quality solution, together with transport arrangements already based on all the Quebec North Shore and Labrador Railway Company, Inc.. Since obtaining Bloom Lake at April 2016, and delivering a Feasibility Study in March 2017, QIO procured the essential financing by October 2017, with the involvement of its own Government of Quebec partners.

Ahead of this Bloom Lake restart, QIO was effective in procuring offtake spouses and forming mutually beneficial connections with all the host community, such as entering into an Impact and Benefits Agreement with the Innu People of Uashat mak Mani-utenam.

As an indicator of the possible financial effect of the job, QIO has hired 400 mining professionals and support solutions contractors and employees, with the ultimate goal of using over 450 women and men in Bloom Lake.

The very first train represents a significant accomplishment for QIO, and was only possible with the dedication of stakeholders such as the local community and the aid of authorities.

I would also like to understand the hard work of contractors and staff currently used at Bloom Lake in helping to send this. Bloom Lake has railroad loop infrastructure onsite comprising a 31.9km railroad spur, and contains access to finish markets through railroad and port. Along with possessing 735 technical railcars for the transport of iron ore, the QIO logistics strategy guarantees long-term

12 | SKILLINGS MINING REVIEW March 2018

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PolyMet Fight Update

A

federal judge has put on hold four suits filed by eight environmental groups

to block a property swap that the

PolyMet copper-nickel mine Minnesota should forward.

proposed

in northeastern move

U.S. District Judge Joan Ericksen stayed the lawsuits while Congress considers legislation to force completion of the land exchange between PolyMet and the U.S. Forest Service.

The bill passed the House last November and is pending in a Senate

committee. PolyMet wants to swap 6,650 acres of federal land in the Superior National Forest in return for a similar number of private land.

The Forest Service has agreed. That has been disputed by PolyMet. In her order Ericksen refused PolyMet's motion.

Equipping the mining industry with legal services since 1893. · Mineral purchase agreements, leases and options · Land assembly and mineral rights acquisition · Severed mineral registration and title work · Environmental permitting and compliance ° MINING & MINERALS LAW °

›› Paul Kilgore ›› Paul Loraas

(800) 496-6789 or fryberger.com

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March 2018 SKILLINGS MINING REVIEW | 13

COAL

N

China's Coal Gain Falls

onetheless, there's concern that the good times will become costs , have surged

in recent months and analysts are warning about further declines as mines ramp up output.

Spot coal in the port of Qinhuangdao averaged 36 percent higher last season and struck 751 yuan in January, the most because 2012, based on China Coal Resource.

Prices, that have since eased to 636 yuan at March 19, may diminish about 5% this season. Shenhua targets output season of 290 million tons after submitting a 1.9 percent increase to 295.4 million to 2017. Coal earnings will slip from nearly 444 million tons, to 430 million tons.

China Shenhua Energy Co., the nation's largest coal miner, said earnings jumped to the maximum amount since 2012 as strong demand and govern-

14 | SKILLINGS MINING REVIEW March 2018

ment attempts to rein in overcapacity helped strengthen prices. Net income increased to $7.6 billion based on the Hong Kong Stock Exchange. The organization, which runs railroads and electricity channels, had flagged the gain jump. Demand was underpinned by robust development.

U.S. are estimated to drive the heavily polluting gas within the border but not quickly enough to fulfill global climate change objectives, environmental groups said Wednesday. Coal's dominance as the gas of choice for producing electricity has been falling as cheap all-natural gas and renewable energy resources challenge its decades-long reign.

Net income was helped by its own subsidiary, Yancoal Australia Ltd., swinging into a record gain in the loss the prior year, the business said.

Yanzhou additionally reported impairments of over 2.2 billion yuan, such as bad debts and depreciation of stock.

The findings are based on information from the International Energy Agency, which recently announced coal was first in a decade of stagnation with need falling at a level last observed in the early 1990s.

China Coal, the nation's biggest listed miner later Shenhua, reported net earnings plummeted to 3.49 billion yuan this past year. While the manufacturer said China could face irrigation shortages from time to time, it cautioned that the country's intake will slow. Declines in coal power plant construction in China, India and the

Having fewer naturally-occurring crops would reinforce international efforts to steer away in the economical and widely gas. Coal accounted for roughly 70 percent of global energy industry emissions of this greenhouse gas carbon dioxide in 2016, according to the International Energy Agency prices.

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Great Lakes and Tariffs Growth of Steel IT WAS THE HIGHEST TOTAL RECORDED SINCE 2012.

T

he whole

Great Lakes shipping

industry and economy is watching

in which direction the

Trump tariffs might lead. The Great Lakes Ports Association expects the White House to release more details of the A dministration ' s projected steel tariffs.

According to port statistics, 296,044 tons of general and miscellaneous cargo spanned Toledo's docks during 2017 a bit more than 3 percent of the port's total cargo by weight. But compared with high-tonnage goods such as coal, iron ore, stone, and grain the managing of that is highly mechanized the general-cargo industry generates a disproportionate amount of financial activity: from labor for unloading boats, to warehousing, to onward trucking or trains.

And this past year, 235,917 tons of aluminum it all from Canada entered the USA on barges arriving at Toledo's port, representing just under four-fifths of general-cargo activity.

Nearly all the rest was Canadian steel roughly 42,500 tons of it out of a mill at Sault Ste. Marie, Ont. Toledo's aluminum commerce is largely based on its own London Metals Exchange designation as an official delivery point to the alloy. It’s not certain how the Toledo port's standing as a Foreign Trade Zone,

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that waives taxes on products that stop there en route between a foreign destination and origin, could play if tariffs shift trade patterns. It might drive more visitors to Foreign Trade Zones. Tariffs on Canadian steel, meanwhile, also could influence coal cargoes via Toledo.

Of the 2.68 million tons of coal packed onto boats in the local port this past year, just over 1.9 million tons went to Canada.

And if tariffs on steel and aluminum imports prompt the affected countries whether Canada or other people to retaliate against American products, that could also hurt Toledo's port. The tariffs are not without supporters on

the excellent Lakes. Besides domestic steel manufacturers, they would favor the American-flag part of the Great Lakes vessel fleet, which relies on American steel mills for a lot of its own ore, coking coal, and limestone traffic.

We thrive on challenges golder.com

March 2018 SKILLINGS MINING REVIEW | 15

STEEL

ArcelorMittal to Purchase and Pay The business signed a joint venture formation agreement with Nippon Steel & Sumitomo Metal Corporation (NSSMC) in regard to its offer to obtain Essar Steel India Limited (Essar Steel).

The organization's subsidiary ArcelorMittal India Private Limited (AMIPL) filed a Resolution Strategy for Essar on 12 February, which outlined the intention to have NSSMC formally join its bid for Essar Steel. Should the filed Resolution Strategy be selected and officially accepted by India's National Company Law Tribunal, ArcelorMittal and NSSMC would collectively acquire and handle Essar Steel.

In its Resolution Plan, AMIPL set a comprehensive industrial and turnaround plan aimed at eradicating Essar Steel's bundles, allowing it to realise its full potential and take part in the expected steel demand growth in India. ArcelorMittal and NSSMC have operated I/N Tek and I/N Kote in Indiana, USA, under joint venture arrangements since 1987. The facility,

16 | SKILLINGS MINING REVIEW March 2018

which opened in 2010 and contains a 5.3 million tonne capacity, was the largest newly constructed steel center in the US in 40 decades but had failed to achieve its potential.

A significant investment programme has been undertaken following the acquisition. The programme focussed on improving the center's ending lines to enable the creation of higher-added value steel goods.ArcelorMittal has also confirmed its first payment of the listing R1.5bn nice it had been slapped with all the Competition Tribunal in August 2016 after pleading guilty to price fixing.

The steelmaker on Monday announced that a payment of R100m was created as agreed upon together with the Competition Competition.

Fin24 previously reported that ArcelorMittal admitted guilt to some thing, which relates to allegations of fixing prices, allocating customers and sharing commercially sensitive information.

The company is set to pay the R1.5bn good over five years at instalments of no less than R300m per year. At a note to shareholders AMSA declared an arrangement was reached with the Commission to divide the 2017 payment into three instalments of R100m each.

According to a statement issued from the steel multinational, the Commission has taken into consideration the organization's financial position, leading from the tough trading conditions in the global and local steel industries, in considering this change. The agreement says that the revised payment provisions apply only to the first year and the next two instalments will be made on 1 April 2018 and 1 July 2018. Then, the instalments will last as originally agreed.

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ASV Announces Justin Rupar as New Vice President of Sales & Marketing

A

SV Holdings Inc.,

a leading

provider of rubber - tracked compact track loaders and

wheeled skid steer loaders in the

Andrew Rooke, chief executive officer of ASV Holdings, commented, “We are very excited to add Justin as a new member of our leadership team.

compact construction equipment market, announced that Justin

Rupar

has been named vice president of sales and marketing.

Justin will report directly to Andrew Rooke, ASV chief executive officer, and will have responsibility for the overall management of sales and marketing and distribution of ASV products worldwide. In addition, Justin will have responsibility for providing strategic leadership and focus that drives the achievement of volume, share and profit goals.

We look forward to his contributions and leadership to help drive continued growth of the ASV brand and to fulfill our mission to earn recognition as the industry leader in performance, reliability, quality and customer satisfaction.

Justin has earned his MBA from The

University of Georgia, Terry College of Business in Athens, Georgia, and completed his undergraduate degree at St. John’s University in Collegeville, Minnesota and the University of Salzburg in Salzburg, Austria.

ASV Holdings Inc., a publicly traded company on NASDAQ, designs and manufactures a full line of compact track and skid-steer loaders primarily for the construction, landscaping and forestry markets.

Justin joins ASV with over 25 years of experience from leading global industrial equipment companies, having spent sixteen years in senior sales and marketing positions with both Yanmar America and Yamaha Motor Corporation, U.S. Additionally, he retains strong ties to many of the largest well-known companies in the industry such as Manitou, Wacker Neuson, Komatsu America, John Deere, Ditch Witch, Ingersoll-Rand and Thermo King. He has been successful in building dealer, distributor and captive OEM dealer networks and has built and implemented various marketing strategies and tools as well as training programs with P&L responsibility for business units he has led.

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March 2018 SKILLINGS MINING REVIEW | 17

IRON RANGE REGION

The Concise Mine Professional’s Education The industry has moved from 75% of the operations being open-cut to now only 56%. And with the push to remove diesel trucks out of underground and move to autonomous electrical vehicles, the requirement is to prepare for that future. Northern Star is investing $50m more than ten years to train a workforce with the requisite digital skills in the opinion that individuals, not technology, are still mining most valuable and oft-underrated resource.

Like the oil and gas industry, mining is waking up to this idea that in order to maintain top talent and bring the next generation of young, environmentally aware, tech-savvy employees, the industry needs to promote itself as switched-on, forward-thinking and innovative thought that starts from the classroom.

As soon as you move to those electric vehicles, there is an entirely different skill set in transactions which have to be involved in maintaining that equipment running, such as diagnostics.

authorities, the program will deliver the classes that can prepare young West Australians for the jobs of the future.

The electronic mine: what skills do miners of the future need?

The new program will improve the capability of those from the mining sector and form part of the learning pathways for people trying to enter a variety of industries applying automation and technology. By working with South Metropolitan TAFE and the state

The new modular classes, designed to upskill employees in key regions such as analytics, robotics and IT, will offer the first special qualification in mining in the 200-year history of the business in Australia. School of thought: attracting and retaining talent

In 2008, Rio Tinto launched its Mine of the upcoming project. Envisaging a near-future where individual miners and robots functioned side-by-side to extract minerals more efficiently, safely and safely, the Anglo-Australian multinational took another radical step of automating its own iron ore rolling stock.

18 | SKILLINGS MINING REVIEW March 2018

Rio Tinto monitors operations there from 1,500km away in Perth. Similarly, specialists in the company's process-

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ing excellence center in Brisbane, Queensland, analyse real-time data to optimise mineral processing in seven sites throughout Australia, the US and Mongolia. The net of things (IoT) and Big Data are now utilized to automate machinery operation, enhance security, ease predictive maintenance and improve traceability and environmental monitoring. However, while mining operators in Western Australia have shifted on to automation, they have yet to address the nation’s yawning digital skills gap through meaningful investment in tertiary education.

The so-called 'digital mine' is no more a future possibility. It's already well and truly a fixture of the Australian mining landscape, and operators big and small, from front-end mining companies to the support businesses, are an essential cog in the extractive sectors supply chain.

The mining and resources sectors have experienced more change within the past ten years compared to in the

previous 100 years. Terms like real-time information capture, automation and autonomous vehicles, wearable technologies and digital-twinning are part of the mining and METS sector lexicon in the 21st century.

But as Australian mining races to be at the forefront of a global trend, there are worries about not just workforce availability and skill sets, but also the conventional way to tertiary education that isn't necessarily geared towards

the requirements of modern mining requirements and practices. The growth of the 'digital mine' in Australia has been directed by the well established mining companies, referred to as the majors large multinational companies that generally operate in the bulk-commodities sectors such as coal and iron ore. Rio Tinto led the charge as it moved its own iron ore rolling stock to a autonomous version, and BHP Billiton followed with driverless trucks on a few of its mine websites. Could a robot perform your job?

Researchers say artificial intelligence will change the jobs of each Australian.

Trains which can be miles long are operated from a nerve centre in Perth, Western Australia, and driverless trains and trucks are now commonplace in the iron ore industry in the Pilbara in Western Australia's north-west. Now the junior and midsize miners and the businesses that support them are working or functioning towards the electronic mine version.

A digital mine is a conventional mine that's using digital technologies, such as: autonomous trucks, trains, and drones to extract greater value from

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March 2018 SKILLINGS MINING REVIEW | 19

IRON ORE

existing resources. They utilize the so-called internet of things that lets them use advanced technologies such as real-time information capture with low cost sensors that feed information back to operators.

This advice, known as big data, may also come from technology such as 'wearables', is incorporated in areas such as control, planning and decision making with the best goal of extracting greater value at lower cost, while improving the wellbeing and safety of mine workers.

Airobotics' completely autonomous drones are being used in the mining

industry. Airobotics' fully autonomous drones are being used in the mining market. Drones are increasingly being used across many industry sectors, but Israeli firm Airobotics is the first to present completely autonomous drones to the Australian mining sector.

Rio has used 600 apprentices in six decades and there is another intake underway at the moment for another 40 apprentices. Along with apprentices, Rio Tinto has used close to 650 graduates, also will recruit a further 160, also new vacation students, apprentices and trainees in Western Australia during 2018. The VET curriculum, which contains a high school

NORTH AMERICAN MARKET (LTU) Company

20 | SKILLINGS MINING REVIEW March 2018

Human capital: investment in people and technology The electronic skills gap has not only highlighted shortcomings in the TAFE program that a number of classes have not changed in 20 years but also the degree to which market volatility, increased cost base and the scarcity of resources has transformed the mining sector in Australia.

IRON ORE PRICE REPORT

Ore Type

Pellets, FOB Michigan Mines Pellets, FOB Cleveland-Cliffs Inc. Minnesota Upper Lakes Port Source: CLEVELAND-CLIFFS INC. Cleveland-Cliffs Inc.

pathway programme, is expected be finished at the end of 2018, and delivered through new industry traineeships and post-secondary classes by 2019.

The requirement for people educated in the subjects of science, engineering, technology and mathematics will continue to grow.

Per Iron Unit

Per Gross Ton at 64%

Per Ton at 64% Reporting Date

$1.28

$81.92

12/31/17

$1.42

$90.88

12/31/17

www.skillings.net

MINING INDUSTRY PEOPLE Hut 8 Mining Corp. announced the appointment of Andrew Kiguel as President and Chief Executive Officer and a director of the Company effective April 2, 2018, subject

ADVERTISING INDEX

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to final acceptance by the TSX Venture Exchange. In connection with such appoint-

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ment, Sean Clark will step down as Interim Chief Executive Officer of the Company

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on March 31, 2018, but will continue to serve the Company in an advisory role. Mr. Kiguel joins Hut 8 from GMP Securities L.P. where he played an integral role for more than 18 years in the Real Estate and Retail Capital Markets groups.

Nevada Copper Corp could be announcing the replacement for CEO and president Giulio Bonifacio imminently following the appointment of veteran mining executive

Global Minerals Engineering.....20 Golder Associates......................15 Hallett Dock Company...............05

Tom Albanese and former RBC Capital Markets chief Ernie Nutter to an “advisory”

Lake Superior Chapter ISEE.......20

board, and Bonifacio’s sudden retirement. The company is currently promoting its

Malton Electric Company..........21

revamped Pumpkin Hollow copper mine blueprint at the 2018 BMO Global Metals & Mining Conference in Hollywood, Florida.

New Gold Inc. announced the pending retirement of four Directors - Vahan Kololian, Martyn Konig, Randall Oliphant and Kay Priestly, as well as the nomination of two new independent Directors, Dr. Gillian Davidson and Peggy Mulligan. Overall,

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the changes result in the planned reduction in the size of the Board from nine to

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seven members. Dr. Davidson has 20 years of experience as an internal and external

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advisor to companies and other organizations regarding sustainability, social license and community relations. Ms. Mulligan has over 35 years of experience in audit and

Neo Solutions.............................21

finance. 

Northern Engine & Supply.........21 RMS............................................13 SEH.............................................22

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March 2018 SKILLINGS MINING REVIEW | 21

STATISTICS

January 2018 Crude Steel Production

By John Edward, Associate Publisher

W

orld crude steel produc-

64 countries World Steel Association (worldsteel) was 139.4 million tonnes (Mt) in January 2018, a 0.8% increase compared to January 2017. tion for the

reporting to the

The crude steel capacity utilisation ratio of the 64 countries in January 2018 was 70.0%. This is 0.2 percentage points lower than January 2017.

Compared to December 2017, it is 0.7 percentage points higher. China’s* crude steel production for January 2018 was

67.0 Mt, a decrease of 0.9% compared to January 2017. Japan produced 9.0 Mt of crude steel in January 2018, up 0.3% on January 2017. India produced 9.0 Mt of crude steel in January 2018, up 2.5% on January 2017.

In the EU, Italy’s crude steel production for January 2018 was 2.0 Mt, up by 5.3% on January 2017. France produced 1.4 Mt of crude steel in January 2018, an increase of 3.0% compared to January 2017. Spain produced 1.1 Mt in January 2018, a decrease of 1.0% on January 2017.

Turkey’s crude steel production for January 2018 was 3.2 Mt, up by 7.6% on January 2017.

The US produced 6.8 Mt of crude steel in January 2018, a 2.2% decrease on January 2017. Brazil’s crude steel production for January 2018 was 2.9 Mt, up by 1.3% on January 2017. * worldsteel estimate Statistics based on World Steel Association Report released on February 26, 2018. 

Preliminary USGS Iron Ore Statistics for September 2017

By John Edward, Associate Publisher

A

U.S. G eological S urvey (USGS) report by Mineral Commodity Specialist Christopher A. Tuck, U.S. mine production and shipments of iron ore in September 2017 were 4.18 million metric tons (Mt) and 5.38 Mt, respectively.

Let’s show the world

Average daily production of iron ore was 139,000 metric tons (t), 13% greater than that of August and 27% greater than that of September 2016. Average daily shipments of iron ore were 179,000 t, 7% greater than those in August and 36% greater than those in September

the world forward.

ccording to the

what we can do together.

Day by day. Project by project.

Together we’re engineering what’s possible and moving

2016.

Mine stocks at the end of September 2017 were 16% less than those held at the end of August 2017 and 15% less than those held at the end of September 2016. U.S. exports of iron ore totaled 1.20 Mt in September 2017, 23% less

Building a Better World for All of Us Engineers | Architects | Planners | Scientists

than those in August 2017 and 10% greater than those in September 2016. U.S. imports of iron ore totaled 178,000 t in September 2017, less than one-half those in August and

sehinc.com • 800.325.2055

33% less than those in September 2016. 

22 | SKILLINGS MINING REVIEW March 2018

www.skillings.net

CRUDE STEEL PRODUCTION, JANUARY 2018. Source – World Steel Association

1,140 e

1,220 e

1,140

0.0

Cuba

20 e

25 e

18

11.1

El Salvador

10 e

10 e

8

25.0

Guatemala

25e

25 e

25

0.0

1,620 e

1,690 e

1,678

-3.5

-

0

-

-

United States

6,822

6,760

6,975

-2.2

e – estimate | r – revised Monthly Crude Steel Production in the 67 Countries included in the report, in thousands of metric tons. The 67 countries included in this table accounted for approximately 99% of total world crude steel production in 2016.

Total - North America

9,637

9,730

9,844

-2.1

U.S. RAW STEEL PRODUCTION

344

381

291

18.0

Brazil

2,866 e

2,822

2,828

1.3

Chile

100 e

105 e

99

1.2

Colombia

105 e

105 e

93

12.7

Percent Change*

Capability Utilization Rate

Production

Ecuador

45 e

50 e

47

-4.3

March 10, 2017

1,813

- 1.1

77.8

17,187

-0.2

74.8

Paraguay

5e

4e

2

150.0

Previous Year

1,716

5.7

73.6

17,221

-

74.6

100 e

105 e

99

1.4

March 3, 2017

1,834

2.9

78.7

15,374

Uruguay

5e

5e

6

-16.7

-0.8

74.5

Venezuela

35

40 e

27

28.6

Previous Year

1,747

5.0

74.9

15,505

-

74.1

3,605

3,617

3,492

3.2

February 24, 2017

1,783

1.8

76.5

13,540

-1.6

73.9

Egypt

660

605 e

573

15.2

Previous Year

1,770

0.7

75.9

13,758

-

75.2

Libya

48 e

52

9

407.3

February 17, 2017

1,751

0.8

75.1

11,757

-1.9

73.6

-

-

-

-

Previous Year

1,770

- 1.1

75.9

11,988

-

75.2

South Africa

577 e

503 e

534

8.1

Total - Africa

1,285

1,160

1,116

15.1

Iran

1,980

1,980

1,573

25.9

Qatar

233

216

247

-5.7

Saudi Arabia (HADEED only)

423

285 e

483

-12.3

2,918

2,767

2,620

11.4

China

67,000

67,047

67,580

-0.9

India

9,028 e

8,796

8,810

2.5

Japan

9,030 e

8,719

9,003

0.3

South Korea

6,125 e

6,124

5,963

1,960

1,960 e

95,047

Mexico Trinidad and Tobago

Argentina

Peru

Total - South America

Morocco

Total - Middle East

Taiwan, China Total - Asia Australia New Zealand Total - Oceania

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NOV 2017

OCT 2017

NOV 2017

14,391

13,633

14,191

1.4

Total - Other Europe

3,514

3,578

3,141

11.9

Total - C.I.S. (6)

8,490

8,695

8,610

-1.4

139,439 138,059 138,268

0.8

COUNTRY

Total - European Union (28)

Total (64 countries)

Weekly Production WEEK ENDING

Year-to-Date Production

Percent Change*

Canada

NOV 2017

% CHANGE NOV – 17/16

OCT 2017

Production

% CHANGE NOV – 17/16

NOV 2017

COUNTRY

In thousands of Net Tons – Source - American Iron and Steel Institute * Percent Change is a comparison between a given week and the previous week.

The % change figure in the previous year row refers to the change from a given week compared with the corresponding week of the previous year.

AISI’s estimates are based on reports from companies representing about 50% of the Industry’s Raw Steel Capability and include revisions for previous months.

WEEKLY U.S. RAW STEEL PRODUCTION BY DISTRICT WEEK ENDING

DISTRICT

3/10

3/3

2/24

2/17

North East

214

213

217

208

2.7

Great Lakes

681

655

633

655

1,888

3.8

Midwest

163

169

161

162

94,346

94,760

0.3

Southern

686

724

699

654

493

472

437

12.9

Western

69

73

73

72

59

61

58

1.7

1,813

1,834

-

1,751

552

532

495

11.6

Total

In thousands of Net Tons – Source – American Iron & Steel Institute.

March 2018 SKILLINGS MINING REVIEW | 23