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freightplus a team effort

John Gleeson, CEO of Freightplus, tells Martin Ashcroft about the special skills, meticulous planning and teamwork involved in moving heavy mining equipment around the world

Issue 29 2018

World Mining

the editor

Welcome to the Hotel Brexitannia

Editor

The

Martin Ashcroft

wrote an editorial in this magazine in July 2016, in which I promised to tell readers what Brexit would mean to the mining industry. I’m sorry to keep you waiting, but at the end of 2018, I still can’t tell you what it means to anybody. After the referendum, the first speech delivered by the new Prime Minister of the United (for the time being) Kingdom of Great Britain and Northern Ireland, introduced the now infamous phrase ‘Brexit means Brexit’. It was by no means clear what that meant at the time, nor is it now, but two and half years after the UK voted to leave the European Union, it seems that Brexit doesn’t necessarily mean Brexit after all. There’s a story about Graucho Marx in which he tenders his resignation from his club. “I don’t want to belong to any club that would have me as a member,” he told them. If only Brexit could have been as easy as that. Instead of resigning, however, the UK government asked for permission to leave, and then became obsessed with securing a ‘deal’, rather than leaving. We don’t want to be a member any more, we said, because the subscription fee is too high and we can’t have your great unwashed coming over here willy-nilly. We don’t want anything else to change, though.

We’d like to keep free access to the bar, the restaurant and the swimming pool, if you don’t mind. Theresa May did finally agree a deal with Europe, but when she got home she found that nobody else liked it. She can’t get it through Parliament because Brexiteers think it doesn’t take us far enough out of Europe and remainers believe it doesn’t leave us far enough in. Northern Ireland doesn’t like it because they might have to get their passports out and the Scots don’t like it because they never like anything the English do anyway. So it looks like it’s a choice between leaving without a deal or remaining in the club, which is exactly where we were before we voted in June 2016. The UK’s negotiators have refused to accept that you can’t be in and out at the same time, and Theresa May has found that unlike Abraham Lincoln, she couldn’t fool any of the people any of the time. The European Union doesn’t want the UK to leave, so you can’t blame them for making it difficult. At the risk of mixing my metaphors, I think the last word belongs to The Eagles: “You can check out any time you like, but you can never leave!” World Mining Magazine www.ogsmag.com

Contents Cover story freightplus: a team effort Page 6 Page: 3 • The Editor: Welcome to the Hotel Brexitannia 6 • Freightplus: A team effort 22 • Mining in Finland: 32 • Newmont Mining Corporation: A value culture 46 • Sphinx Resources: The mine finders 51 • Pan American Silver acquires Tahoe Resources • Thiess awarded automation contract at Christmas Creek 53 • Nordic Gold completes first pour at Laiva mine in Finland • Sphinx and SOQUEM find zinc at Calumet- Sud project 57 • Rio Tinto to invest $2.6 billion in Koodaideri 61 • Havilah confirms discovery in Grants Iron Ore Basin • BHP makes new discovery near Olympic Dam 63 • Sandvik and Nokia collaborate on Industrial IoT • OceanaGold’s Haile Gold Mine orders IsaMill from Glencore 67 • Epiroc continues acquisition trail in South Africa • Pilbara Minerals approves Pilgangoora expansion

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ADVERTISERS 2 Resemin Asia 24 Mining Finland 26 Epiroc 26 Tenaris / Padley & Venables 28 Flowrox 31 Volvo Construction Equipment 35 Corrosion Engineering 37 Zafco International Inc 38 Mineral Process Control 40 THEJO 42 PW Mining 44 Montabert 48 Elphinstone 49 Sai Deepa Rock Drills 50 Cenerg Global Tools 52 Rapid International 54 ADRIA 55 Duff Norton / Phoenix Conveyor Belt Systems 56 Ritmo 58 WeatherSolve Structures 59 Irwin Car and Equipment 60 Pumps 2000 62 NAMMCO 64 Altra Industrial Motion 65 Dynapower 66 Independent Rebuild Specialist 68 Magna Tyres 70 Megatraction Equipment Inc 72 A-1 Industrial Supply (Nitro HD) 74 Canary Systems 76 CPK Automotive 77 Applied Fiber 78 Voltas 80 Rammer: Sandvik Mining and Construction 81 PMP: Prairie Machine & Parts 82 World Mining Directory 85 Shaw Development 86 MOS Mobile Screener 87 Hilliard Brake Systems 88 Rockwell Automation

contents

mining in finland Page 22 news & features Page 51 69 • Mining starts at Kalgoorlie Super Pit expansion • First shipment leaves Rio Tinto’s Amrun bauxite mine 71 • Newmont declares commercial production at Subika Underground 75 • Peabody completes acquisition of Shoal Creek • Premier to acquire Rodeo Creek in Nevada 79 • First ore achieved at Fluor bauxite project in Guinea

World Mining Magazine Contacts, Advertising Rates & Information News & Features Editor: Martin Ashcroft martin@ogsmag.com Editor Vanessa Ward editor@ogsmag.com Sales sales@ogsmag.com General email contact info@ogsmag.com Design and Artwork artwork@ogsmag.com Managing Director Simon Ward

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Double Page £6000.00 Full Page £4895.00 Half Page £2450.00 Quarter Page £1450.00 Full Page (inside cover) £6000.00 Lead Article + Front Cover £19,995.00 All advertisement rates include design free of charge. The magazine is printed in A4 format on 250gsm gloss laminated cover and 170gsm matt internal pages. The magazine is both a printed hard copy magazine and distributed electronically. Currently our global readership is approximately 93,000.

World Mining Magazine 2018 World Mining Magazine is published by Worldwide Business Media Limited, London, EC1V 2NX United Kingdom. Registered No. 6809417 England/ Wales. VAT No. 972 7492 76. All rights reserved. Reproduction in whole or any part without written permission is strictly prohibited. Liability: while every care has been taken in the preperation of this magazine, the publishers cannot be held responsible for the accuracy of the information herein, or any consequence arising from it. All paper used in this production comes from well managed sources.

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freightplus a team effort John Gleeson, CEO of Freightplus, tells Martin Ashcroft about the special skills, meticulous planning and teamwork involved in moving heavy mining equipment around the world

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f you are a mining contractor needing to move a dozen Caterpillar dump trucks from say, North America to Australia, the brown marmorated stink bug may not be the first concern that crosses your mind. It was on John Gleeson’s mind the other day, however, because the New Zealand port of Auckland had just turned away a ship after eight of the bugs were found on board.

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To protect their domestic agriculture industries, island nations in the region like Australia, New Zealand and New Caledonia are intent on keeping potential pests out of the country, and the brown marmorated stink bug is enemy number one at the moment. “Right now it’s probably the most significant biosecurity risk in this part of the world,” says Gleeson. “Entire vessels are now being refused entry into port in Australia or New Zealand. It’s a growing problem.” Gleeson and his business partner Steve Townsend started Freightplus as a two-man freight forwarding operation on 1 January 2000 in Sydney, Australia. The company has since opened further offices in Brisbane (now its headquarters) and Fremantle (Western Australia), Kobe (Japan), Atlanta and Savannah in the US state of Georgia,

“The brown marmorated stink bug is probably the most significant biosecurity risk in this part of the world”

freightplus a team effort Vancouver, Canada and Laem Chabang in Thailand. Gleeson is CEO and Townsend runs the North American businesses in Canada and the US. The business involves a combination of regular shipments and projects, Gleeson explains. “We regularly ship single or multiple pieces between consistent port pairings. For example, we load shipments of earthmoving machinery on every RO-RO vessel sailing from Savannah, USA, to Brisbane, Australia. We will generally have 80-100 shipments on the water, somewhere in the world, at any given time. In addition, we handle larger and more complicated ‘project’ shipments. These, generally more technically challenging projects, involve chartering a shared or dedicated ship and managing the complete door-todoor movement of oversized or heavy cargoes, mostly from one remote mine site to another.” If a project requires specialised equipment, Freightplus will either subcontract to experts who own and operate the equipment, or take it on wet lease for the duration of the project to avoid the burden of servicing loans, owning and maintaining expensive assets, or the headache of keeping those assets working.

The whole package

Freightplus offers a long list of ancillary services and the majority of customers take a comprehensive package, entrusting to the experts all the administrative procedures that will inevitably trip up the inexperienced. A full range of services would include pre-purchase inspection, payment facilitation, configuring large equipment for transportation, arranging and tracking inland transportation, cleaning and fumigating to satisfy the destination country’s biosecurity requirements, preparation of shipping and export documents, interface with border authorities, providing warehousing or yard storage, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, cargo surveys, loading and securing cargo on board and tracking the vessel’s progress en route to destination – in some cases, even negotiating with ship-owners to speed up or slow down vessels, in order to deliver at just the right time.

“We will generally have 80-100 shipments on the water, somewhere in the world, at any given time”

Once at the destination, there’s the payment of port service charges, unloading of cargo, preparation and lodgment of import customs clearance documents, co-ordination of customs and/or biosecurity inspections, addressing compliance matters, identifying and co-ordinating the appropriate road transport vehicles, lifting heavy equipment onto them and co-ordinating and tracking domestic transport to the final destination. There’s a lot involved in this kind of work, and success depends on a meticulous attention to detail and the ability to co-ordinate multiple processes. How did the company become a specialist in moving heavy machinery? Freightplus began as a general freight forwarder, Gleeson explains, but when this kind of work came along, they found they were good at it. “We started World Mining Magazine www.ogsmag.com

with used earthmoving machinery for just one customer,” he says. “As we got better at it, we got more of that kind of business as word spread. We soon went from one or two customers to 70 or 80, so we packaged up the general sea freight, air freight and warehousing side of the business and sold it to a German multinational. We’ve been forwarding only oversized cargo since about 2004.” Freightplus has experienced steady growth without the need for external finance. Having a non-asset based business model, with variable costs rather than fixed overheads, has helped enable this. “Each year, we cap dividend payments at 40% of profit, re-invest a minimum of 40% back into the business, distribute 10% amongst local charities and community groups and share 10% with our team. “Our team is our biggest investment,”

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Gleeson adds. “We recruit the best people we can find and place a lot of emphasis on training, development, motivation and retention, and I believe that is the key to our growth. We do have a marketing budget but most of our business comes from regular customers and most of our new customers come by way of referral.” Customers tend to be machinery traders, procurement professionals and the mining services contractors, rather than the major mining companies themselves. He cites an example when Rio Tinto set up a mine in Guinea a few years ago. “One of our customers won a contract to convert it from a mountain to a mine site, and then handed it over to Rio and the local government to operate. Those are the people we work for. Also, if a mine needs a hundred machines, they tend to use their

preferred procurement company, who will find the assets and then engage us to move them.” For mining industry customers, the equipment mix is around 90% used, 10% new. “Used machinery is where we can add the most value,” explains Gleeson. “New machinery comes out of the OEM factories, brand new and packed for shipment, and generally from locations in close proximity to major transport and shipping routes, whereas used machinery is, more often than not, fully assembled and situated in its most recent workplace. That usually means a mine site, well off the beaten track and often with limited road access. “Our expertise is of most value to customers purchasing large assets from one remote location and needing them delivered, in full, on time, and reliably, within budget, to another

freightplus a team effort

remote location. This will typically include careful dismantling, cleaning, packaging, lifting, trucking (or barging) and shipping to the most appropriate destination port by the most economic and reliable means … then repeating the process in reverse at destination to deliver the equipment to its new owner.” Some projects involve working for two different customers, such as a recent shipment involving eight dump trucks bound for Australia from central Canada. “One customer has purchased this machinery FOB Vancouver,” says Gleeson, “and the other one sold it on those terms. So for one customer we’re pulling the trucks apart on site, cleaning them, taking them from the centre of Canada to Vancouver Port and doing the export customs clearance. The job finishes for that customer there and then for the Australian customer we

“We recruit the best people we can find and place a lot of emphasis on training, development, motivation and retention, and I believe that is the key to our growth”

pick them up from FOB and bring them over here. We clear them, do secondary biosecurity processing, put them together again, load them on trucks and deliver them to the customer’s site.” Each stage of transportation has its own set of challenges, restrictions and limitations which need to be considered when preparing over-dimensional cargo for shipment. Identifying the best configuration for shipping any heavy equipment requires an in-depth understanding of the cargo and every step of the route, from door to door, including the local regulations and restrictions at each waypoint, the capabilities of the shipping ports and the capacity of equipment at origin and destination, so it is essential for project planning and cargo preparation to address conditions throughout the entire route. World Mining Magazine www.ogsmag.com

“When heavy machinery is being moved by road, Freightplus will often carry out a physical route survey as an integral part of the planning process. This will involve driving the proposed route, taking note of all potential transport limitations for the intended cargo and identifying solutions to overcome each restriction”

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freightplus a team effort

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Every project is a one-off, so while it would be hard to define an average job, they all have identifiable elements which come together to make a whole. “We can make pretty accurate assessments of the time needed to perform certain stages of specific jobs,” says Gleeson. “For example, how long it will take to dismantle a CAT 6090 shovel at a remote location in Borneo, or how long it takes to ship a dozen CAT 793s from Antofagasta to Port Hedland, or the winter trucking time from Fort MacKay to Vancouver. We have shipped thousands of mining machines, to and from almost every known mining area on the planet. With every enquiry we receive, we can quite quickly put each of the pieces of the transport puzzle together and make a reasonably accurate assessment of the timeline, from A to B.” Freightplus maintains an extensive

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“Our expertise is of most value to customers purchasing large assets from one remote location and needing them delivered, in full, on time, and reliably, within budget, to another remote location”

technical database with the specifications of almost every make and model of mining machinery, plant and equipment, saving customers the hassle of having to provide technical drawings or machinery specifications. For most shipping routes, Freightplus can give an accurate quote for the shipment of mining machinery within an hour. Customers needing to know transport costs more urgently can access firm port to port shipping prices in less than 60 seconds, for over 4,000 machine configurations and around 400 major port combinations, using the Freightplus mobile app. It’s always a team effort, Gleeson stresses, and Freightplus has all the necessary disciplines covered in-house, with its team of freight forwarders, charter specialists, licenced customs brokers, load masters, riggers,

freightplus a team effort mechanics and biosecurity specialists. It also helps to maintain close relationships with shipping companies. “We maintain very close relationships with key shipowners,” says Gleeson. “It keeps us abreast of what’s happening. We monitor who’s operating what ships, what capacity they have, and who moves in what areas. There’s one carrier we would normally go to directly if we’re shipping out of Latin America. There’s another one in South East Asia. You just get to know who does what well and what the ships can do.” For the regular business out of the United States to Australia, or Europe to Africa, for instance, where Freightplus has machines on the move all the time, they use annual volume contracts. “We’ll sign a deal with a shipping company either to use them exclusively or to guarantee them a minimum amount of business. In return we get preferential rates, space availability on the vessel and that sort of thing.”

Remote projects

Shipping heavy equipment from remote mine sites is an area of expertise for which Freightplus is renowned. The logistical challenges involved with shipping large mining machines from remote places require a different set of skills to the shipment of machinery between major international ports. It also requires extensive local connections and resources. I wondered how Freightplus approaches a remote project and how many people were involved. “We do a lot of work in and out of Borneo, for example,” says Gleeson. “We have a very strong partner there with offices throughout Indonesia, Kalimantan in particular, where most of the mining is.” Freightplus will send out a project manager and a maintenance manager, he explains, and their partner company will organise some local labour. “The project manager coordinates everything logistically and the maintenance manager runs the mechanical support and dismantling, etc, with the help of the local fitters and mechanics.” When it comes to cleaning, Freightplus has half a dozen biosecurity specialists based in different parts of the world. “At least one of those will go to the site and he’ll also get a local crew with local

equipment. We’ll provide comprehensive cleaning guidelines and we’ll have our expert supervising the project. It will depend on the mine site, local union rules, local visa laws and things like that as to how hands-on he’s allowed to be. The way we operate, we put our own people in to supervise and instruct, then use local labour to support. A typical job like that would normally involve around four of our people. We’d have one finding a vessel, organising the charter, doing the documentation, customs and insurance, a mechanic, a biosecurity specialist and then we’d have a loadmaster who would be on site to get all the packing done properly, coordinate transport, cranes, wharf labour, things like that.” In many remote locations, mine sites may be near an inland waterway, so heavy machinery can be transported to a break-bulk vessel at anchorage, using barges or landing craft. Sometimes, World Mining Magazine www.ogsmag.com

“We have a very capable international network of like-minded handling partners, many of whom we have worked with for 20 years”

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freightplus a team effort

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precise timing is required to ensure that the vessel has the perfect river level to complete its journey. Projects in remote locations require the ability to bring a number of resources together, across multiple languages and cultures. For a project to run smoothly, everything must go according to plan, which means that everything needs to be planned. Nothing can be left to chance, because nobody wants surprises. Letâ&#x20AC;&#x2122;s take the road transportation of an oversize load as an example. Every detail of every mile must be taken into account. To start with, you need an extensive knowledge of local transport authority rules and restrictions for heavy haulage, and the physical limitations of the intended route. This can include road width, bridge height and weight

â&#x20AC;&#x201A;â&#x20AC;&#x201A;World Mining Magazine www.ogsmag.com

limitations, overhead electrical wires, port access gates, overhanging trees, the position of road signs and traffic lights, etc, etc. When heavy machinery is being moved by road, Freightplus will often carry out a physical route survey as an integral part of the planning process. This will involve driving the proposed route, taking note of all potential transport limitations for the intended cargo and identifying solutions to overcome each restriction. It may be necessary to work with local electricity companies, local government authorities and road transport departments to arrange lifting (or removal and replacement) of overhead wires, trimming overhanging tree limbs to create a clear path or temporarily

freightplus a team effort

removing street signs or fencing or other obstacles, in order to achieve a clear route, free of obstacles and potential hazards.

Growth opportunities

Although the business has traditionally been focused on serving the mining sector, its expertise is the movement of any over-dimensional and heavy-lift industrial equipment. Freightplus can claim experience in shipping large items of new mining equipment, including tailings thickeners, trommels, grinding mills, conveyors, separators, flotation plants, smelter furnaces and the like. It can also handle urgent air freight consignments, which can range from urgent replacement parts through to multiple aircraft charters. There is literally no limit to what can be transported, so opportunities for expansion are not restricted to geographical growth, but also include diversification into new industries or expanding the company’s range of

“We have shipped thousands of mining machines, to and from almost every known mining area on the planet. With every enquiry we receive, we can quite quickly put each of the pieces of the transport puzzle together and make a reasonably accurate assessment of the timeline, from A to B”

services within its core business. “When the Australian mining boom came to an abrupt halt in 2013, we were faced with some difficult choices,” says Gleeson. “Our heavy reliance on the mining sector was a real threat to our survival. Ultimately, we were faced with the choice of laying off a significant number of loyal employees, or launching ourselves right out of our comfort zone into new areas of heavy industry. “We decided to diversify and we’ve never looked back. In addition to the many shipments of mining machinery we have on the water, our current projects include the door to door, international movement of a 40,320 cubic metre floating wharf, the delivery and installation of 28 wind turbines and the exportation of an entire motor vehicle manufacturing plant.” In terms of geography, he says, the company is not on a mission to put up a Freightplus flag in every country. “We expand geographically in response to what our customers want. We have a World Mining Magazine www.ogsmag.com

very capable international network of like-minded handling partners, many of whom we have worked with for 20 years. Through these longstanding relationships, we have developed operational synergies and capabilities that enable us to provide the highest level of service, which helps us to compete with some of the largest global players. “The success of these operational partnerships is something that cannot be developed overnight and is not an automatic by-product of being a massive multinational, with thousands

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of employees and millions of dollars in assets. In the many places in which we enjoy this type of relationship, our partners are equally or better positioned to provide the service integrity we rely upon, so we work together. On the other hand, if an opportunity presents itself and we don’t feel a local partner can perform the services we want, to the standard we want, then we’ll establish a presence there ourselves.”

Biosecurity

The next step towards expanding the company’s service offering is

to strengthen its capabilities in international biosecurity management, which as Gleeson pointed out earlier, has become a pressing issue of late. “It’s been a factor for a while,” he says. “We’ve been doing pre-shipment inspections for about 18 years already.” Biosecurity is a set of preventive measures designed to reduce the risk of the transmission of infectious diseases and pests into crops and livestock, and there are strict quarantine requirements for importing used machinery into Australia, New Zealand, New Caledonia and the USA. Other countries are

freightplus a team effort

“Freightplus offers a biosecurity pre-shipment inspection, where one or more of its biosecurity compliance inspectors will carry out exactly the same inspections as the DAWR biosecurity officer would carry out at the Australian entry port. Once satisfied, the Freightplus inspector will issue a Freightplus Certificate of Cleanliness, guaranteed against re-export” becoming more vigilant, too. In Australia, used machinery is classed as a prohibited import unless certain conditions are met which allow them to be imported. Effectively, this means that used machinery is a prohibited import into Australia unless it is as clean as new. All used machinery entering Australia is inspected by a DAWR (Department of Agriculture & Water Resources) biosecurity officer at the port of entry and anything that is not compliant with this condition is deemed to be a prohibited import. Some Australian importers have had the unfortunate experience of having to pay the costs of shipping their machine back out of the country, arranging offshore machinery cleaning and then re-importing it once the required level of biosecurity cleanliness has been achieved. The inspecting DAWR biosecurity officer will typically spend 30-90 minutes conducting a thorough visual inspection of the machine, looking for any visible contamination – all over the machine, under the machine, inside track frames, behind belly plates, in every joint and cavity and crack and

crevice. “On a 200 ton machine you could have 20 or 30 kilos of dirt, so they’ll turn that machine around and send it back again,” says Gleeson. If the machine passes the initial inspection, a secondary inspection will then take place which can include partial dismantling to access any areas the biosecurity officer could not inspect intact. This could involve the removal of wiring conduits and components such as the operator’s cab, fuel tank, wheels, etc. If there are any holes, ruptures, splits, cracks or fresh welds, the inspecting officer will direct the importer to cut open those sections for high volume flushing, under DAWR supervision. Radiators, too, will always be flushed as part of this secondary inspection. To avoid the risk of a re-export order, Freightplus offers a biosecurity pre-shipment inspection. One or more of its biosecurity compliance inspectors will visit the site where the used machinery is being cleaned for shipping to Australia, and will carry out exactly the same inspections as the DAWR biosecurity officer would carry out at the Australian entry port. The

inspector will then advise and assist the local cleaners to achieve the necessary level of cleanliness for importing used machinery into Australia. Once satisfied, the Freightplus inspector will issue a Freightplus Certificate of Cleanliness, guaranteed against re-export. Now that the authorities are turning whole ships away from ports, the issue of biosecurity has begun to focus minds even more. Who pays for that? “This is something we are currently discussing with the various stake holders,” says Gleeson. “Ultimately, the carriers will ask the cargo owners to pay. It’s opening up a whole new can of worms, because there’s no insurance that specifically covers it. There will inevitably be a lot of objections from cargo owners.” As biosecurity becomes an increasingly relevant consideration in the international transport of heavy mining machinery, Freightplus customers can at least rest assured that their freight forwarder is well equipped to handle it.

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The World of Finnish Mining Finland is located on the Fennoscandian shield, which has strong similarities to Canada and Australia indicating strong mineral potential. The area is still much unexplored.

dvanced transport infrastructure and logistics are key strengths of Finland’s domestic economy. Business is served by an extensive network of roads and railways, and by a vast network of waterways, canals and sea lanes. Energy pricing is competitive and power grid covers the whole country. Finland is politically and socially stable and ranked one of lowest risk countries in the world. Finland is consistently rated among the top countries for mining policy and its legislation. Finland has systematically developed

its mining cluster. Today the cluster is strong, consisting of more than ten mining related universities and research organizations, more than 200 mining technology and service providers, over 40 mines and ten smelters and steel mills. Consequently, Finland is considered one of the most attractive mining jurisdictions in the world, not only due to the geology, but also due to its well developed and innovative mining ecosystem. Finland is an excellent hub for mining technology development. Finnish engineering companies have

developed major innovations, such as Flash Smelting of copper, advanced automatic pressure filters, process integration and optimization services. In addition to globally known players, a growing number of smaller Finnish innovative companies offer specialized technologies, services and solutions to improve the productivity through digitalization and optimization across the value chain. Finland hosts leading education, research and development facilities. The government strongly supports research organizations and private companies World Mining Magazine www.ogsmag.com

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Most of the world’s known lithium resources are found in South America, mainly Bolivia and Chile. But now Finland is emerging as a European powerhouse in lithium production

flats and lakes. In the Finnish bedrock, lithium is enriched in coarse-grained spodumene pegmatite veins. From salt lakes, lithium is obtained in the form of salts, but in the case of spodumene, lithium is recovered by sodium carbonate dissolution procedures, which yield extra pure lithium carbonate. This is a demanding and time-consuming process, but the end product is said to be much purer than the lithium salts recovered from salt lakes. Lithium is key to the future of Finnish mining.

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newmont mining corporation a value culture Newmont aims to lead the gold sector in creating value for shareholders and other stakeholders. Senior executives Scott Lawson and Mike Wundenberg tell Martin Ashcroft about the technology and innovation strategy that’s helping to keep the company at the top World Mining Magazine www.ogsmag.com

World Mining Magazine www.ogsmag.com

ew industries could cope with price fluctuations like those seen in mining. In December 2011, when president and CEO Gary Goldberg left Rio Tinto to join Newmont as chief operating officer, the price of gold was close to its all-time high, around $1600 - $1700 an ounce. Understandably then, miners were keen to extract as much ore as they could, as quickly as they could, while the boom lasted. The price had peaked at $1,917.90 an ounce in August 2011 before beginning a decline that saw it fall to $1060 an ounce in December 2015. “Gary recruited a number of people who had worked together in mining,” recalls Scott Lawson, EVP & chief technology officer, “with a complementary mix of experience, to look at the business from a value based standpoint. I joined in late

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2012. With gold prices coming down there was an urgency in the business to get our cost structure under control, and to get more rigorous systems and processes in place. “With prices high, mining companies took on a lot of big projects which were not sustainable as prices tumbled, so we tried to step back from that and get some perspective on it, understand which were the best projects to continue with, look at the operating model and strike the right balance between the corporate office and the regions.” That period provided the genesis for ‘value over volume’, a concept coined by Newmont (I am told) but which was soon adopted by the rest of the industry, to the extent that it now dominates the marketing speak of the major mining companies. Never mind that, the catchphrase captures the concept

perfectly. “The mantra up to that point at Newmont was ‘seven by seventeen’, remembers Lawson. “They wanted to be a seven million ounce producer by 2017. In the prevailing climate at the time that just wasn’t a practical approach to running a business. It wasn’t a profitable approach to running a business, either. So we updated the strategy, updated the focus, did a lot of operating model work, stopped a lot of projects, made a lot of changes and focused on the value of the gold that we were producing, or the margin, rather than producing an extra ounce and only making a dollar on it.” The Full Potential programme, as it became known, was launched at the Boddington mine in Western Australia in 2013 and has so far delivered one and a half billion dollars in value across the company. “To put it in perspective,” adds

newmont mining corporation a value culture

Mike Wundenberg, vice president of operational technology and innovation, “we are producing about the same amount of gold today as we were producing back in 2011 and 2012, but with half the number of people – and with over 20 per cent reduction in all-in sustaining costs.” To optimise resource value, Newmont developed a Strategic Mine Planning methodology as part of the Full Potential programme. This basically evaluates which resources should be mined, in what order and to what size, then as prices change, the design and size of pits can be modified as quickly as possible, and an assessment can be made of the potential impact on the processing plants. The Full Potential programme generated momentum and has now become a catalyst for the next stage of

“With gold prices coming down there was an urgency in the business to get our cost structure under control, and to get more rigorous systems and processes in place”

strategic development. “It has provided a good foundation in discipline and ownership at regional level to launch the next wave of technology and digital solutions,” explains Lawson. “Because there’s so much buy in and understanding around the Full Potential programme we’ve actually packaged our new technology and digital programme underneath that umbrella.” The mining industry has been looking closely at digital technologies in recent years and Newmont has already implemented some itself. What it needed was an overall strategy to plan, implement and evaluate the role of technology and innovation in delivering value to the organisation. “There’s quite a buzz in industry generally and in mining around digital opportunities and technologies,” says Wundenberg, “so we conducted two digital assessments World Mining Magazine www.ogsmag.com

newmont mining corporation a value culture

last year to prioritize how we invest in technology and understand where the value lay. Those two pieces of work helped us inform the Technology and Innovation Strategy.” Delivering value extends beyond pure cost saving and efficiency measures to embrace improvements in health and safety and sustainability, too. “Anything that reduces risk to the business adds value,” says Lawson. “We want to be the miner of choice around the world and to do that we need to have a strong and clear articulation of sustainability, whether it’s around environmental, community, government or social aspects. From a community and social standpoint, health and safety is a crucial part of that.”

Digital assessments

The digital assessments took a threepronged approach to investigate where improvement opportunities could be found. “The first thing we wanted to understand,” says Wundenberg, “after

World Mining Magazine www.ogsmag.com

the investment we’ve already made in technology platforms like asset health systems, process control systems, etc, was how well were we utilising those systems, and did they justify our investment? “Secondly, we wanted to understand what we were doing with all the data we were collecting from plant and equipment. Are we doing any kind of analytics or are we just collecting data? And the third aspect was to look more broadly, outside of Newmont, and see whether there are other technologies that we should be thinking about bringing on board here at Newmont.” The Newmont team enlisted the support of two external consultancies, one working at its Twin Creeks mine in Nevada and one at Boddington in Western Australia, and their assessments were tailored to the framework of Newmont’s six technology focus areas. “The first technology pillar is Smart Mine,” explains Lawson. “What we’re trying to do there is maximise the

use of our in-ground resource and production data to optimally mine and process ore. We’re trying to automate as much of the process as we can from blast hole to mill and at the same time optimise the decision making.” Smart Mine uses sensors, monitoring and optimization tools to anticipate and plan events in real-time, enabling continual adjustments to respond to changing operating conditions. “The second is Connected Worker, and there are three aspects to this. One is around time and attendance and site access. The second is about field mobility, so we’re piloting iPads at Twin Creeks with some of our maintainers for them to close work orders, to report time, to open new work orders, and to look up parts. Then the third is around people tracking. Do we know who’s on site, where they’re at – in case we have a safety event? We want to know where our people and our contractors are so we can get them safely out of an area of potential risk.”

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newmont mining corporation a value culture

The third focus area is advanced process control. Most of Newmont’s process plants have process control systems, but their performance is somewhat variable and that has been attributed to a lack of expertise. “We want to standardise the expert system that sits over the top of these process control systems,” explains Lawson, “then a fourth part of our strategy is to begin streaming that data into operation support hubs.” The fifth technology pillar is autonomous fleets. Newmont is working with Caterpillar to develop and improve the technology used in underground hard rock vehicle automation, focusing initially on Caterpillar’s semiautonomous system for underground loaders, known as Command AHS. So far there is a fleet of seven LHDs (load haul dump units), running underground at the Leeville and Carlin mines. Here the machine operators work safely and efficiently from a control room on the surface, where they can control two or more machines. A project like this also lends itself to rapid replication across global operations by leveraging Caterpillar’s worldwide business model and dealer network. Study work is also being undertaken on autonomous surface fleets.

“We conducted two digital assessments last year to prioritize how we invest in technology and understand where the value lay. Those two pieces of work helped us inform the Technology and Innovation Strategy”

The sixth pillar is around advanced analytics. ”We’ve recently brought on board a chief adviser who’s helping us explore where the value is, whether it’s in artificial intelligence or machine learning, for instance, and whether there are companies we can partner with. There are some areas where we want to maintain our own IP, but it’s important that we understand who the leaders are in the market.”

Technology trials

The search for new technologies often involves looking beyond the mining industry at what’s happening in oil and gas, or perhaps manufacturing or high tech. “As you get into things like artificial intelligence and machine learning for instance, they’re well proven technologies already,” says Lawson, “so how do we apply those to some of the problems we have here?” There can be a dazzling number of alternatives to consider. Lawson and Wundenberg take calls every day from vendors and consultants promoting their latest silver bullet. I know what that’s like. My inbox is full of press releases from ‘leading’ suppliers of this, that or the other ‘essential’ product or service. A disciplined approach is required to avoid unnecessary distractions. World Mining Magazine www.ogsmag.com

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World Mining Magazine www.ogsmag.com

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newmont mining corporation a value culture

“We go through a rigorous review process to identify the problem we’re trying to solve and what the opportunities might be, rather than chasing bright and shiny new solutions,” says Wundenberg. “Then we evaluate what potential technology could help us and we do a pilot of the ones we believe we can go forward with, after a bit of due diligence on the front end to make sure we’re going ahead with the right pilots.” One example of a successful pilot is another collaboration with Caterpillar – a Connected Worker technology that analyses the movements of haultruck drivers and sets off an alarm if a driver is distracted or drowsy behind the wheel. “We put a lot of effort into health and safety and we have improved tremendously in that area,” says Lawson, “but we have had challenges around fatigue management. Caterpillar has developed a driver safety system that can detect when a driver is fatigued because he or she is blinking or nodding off. It alerts the driver by vibrating the seat and also notifies the supervisor.” The Carlin mine was the first to test Caterpillar’s Driver Safety System. After the trial, fatigue and distraction events declined by 87 per cent and 68 per cent, respectively, and it has since been rolled

“Anything that reduces risk to the business adds value. We want to be the miner of choice around the world and to do that we need to have a strong and clear articulation of sustainability”

out across Newmont’s global operations. It’s a huge improvement, but if not properly handled it could have been a contentious one. You can’t introduce this kind of potentially intrusive technology unless you have a culture of trust across the organisation, with a workforce aligned to the strategy of the business. “Change management is the single most critical aspect of this,” says Wundenberg. “In this example we’ve had good acceptance. It’s about getting the intent right. People understood it was about safety rather than being punitive in any way.”

Culture

Historically, Newmont’s operations were concentrated in North America, but the company’s success has inevitably led to global expansion and today Newmont has mining operations in both North and South America, Australia, and in Africa. Introducing a new way of working, even in a pilot exercise, requires a huge emphasis on communication to get the message across. “It has to go all the way to the shop floor to help people understand the value and see how it makes their job easier,” says Wundenberg. “You have to provide a World Mining Magazine www.ogsmag.com

newmont mining corporation a value culture

forum for them to ask questions and for us to take their feedback on board. It’s great to go out and trial things but you really need to have the workforce on board for it to be a success.” As well as the workforce, it’s also important to earn the trust of senior management when introducing change in their domain. “We work closely with our chief operating officer Tom Palmer and his regional senior vice presidents,” says Lawson. “We’ve enjoyed a huge leadership buy in, so that the regions themselves are now volunteering to pilot some of the autonomous fleet work or the connected worker cases, for instance. Over the last year and a half there has been a level of trust developed so that once a value or risk reduction is proven they’re all happy to replicate as quickly as they can. We don’t have to run a pilot in every region for every senior vice president to get comfortable

with it, so that speeds up deployment.” Newmont is committed to testing and deploying technological innovation as part of its strategy to create shared value. Mike Wundenberg’s Operational Technology and Innovation team therefore works closely with operations and other technical services teams, to align its five-year strategy with the company’s global standards, systems and business processes – a critical step in maximizing the return on technology and innovation investments. Positive results are already being seen within the organization, but on top of that comes high level external recognition around the culture of Newmont. In September this year Newmont was named as the leading company in the metals and mining industry by the Dow Jones Sustainability World Index – for the fourth consecutive year.

A couple of weeks later Newmont won the Large Cap category at the National Association of Corporate Directors’ (NACD) inaugural NACD NXT Recognition Awards – chosen from among 25 nominated boards of directors for excellence in harnessing board diversity and innovation as a strategy for creating long-term value. Earlier this year, the company was ranked as the world’s leading miner in FORTUNE magazine’s most admired companies list, based on the quality of its management team, and its strong performance in social responsibility, long-term investment, people management and innovation. It all adds up to a recipe for value creation, if ever I heard one.

World Mining Magazine

World Mining Magazine www.ogsmag.com

the mine finders Project generation is the name of the game for Sphinx Resources, a Canadian company focused on zinc, with exploration projects in the mining friendly jurisdiction of Quebec

ny team needs a range of skills to be successful. It also helps to have a few exceptional individuals. A soccer team, for instance, needs a strong defence and a safe goalkeeper, but supporters love nothing better than a star striker. Someone who scores goals. Translate that to the mining environment, particularly exploration, and the most valuable player is likely to be the mine finder. Canadian exploration company Sphinx Resources has proven strikers in its team. One of them, director Michel Gauthier, has actually struck gold himself, as a member of the Virginia Gold Mines team that discovered the Eleonore project in the James Bay area of Quebec in 2004. Goldcorp paid C$505 million for the discovery two years later. His striking partner, mine finder Kerry Sparkes, was involved in the discovery of the Voisey’s Bay nickel deposit in Labrador (now owned by Vale) and the Rainy River gold project in Ontario (now owned by New Gold). Both of these mines are now in commercial production. “Our model is to add value by adding resources,” says Normand Champigny, president and CEO of Sphinx Resources, “and then get people who are good at mining to purchase the project. This is typically where you add the most value in the mining cycle.” It’s nice to have people with a strong track record on your team, but it also helps to have what sports people like to call a level playing field. In the world of mining, there are few playing fields more attractive than Quebec, ranked the sixth best jurisdiction in the world by the Fraser Institute. What

World Mining Magazine www.ogsmag.com

makes it so good? “Quebec has a large territory, so mineral potential is good,” says Champigny. “We have an established mining culture here, and we have a very supportive government which offers tax incentives to help attract investors. We also have good quality geological data, which is very useful at the exploration stage. All those factors add up to make Quebec an attractive place to mine. It’s a stable place for mining, compared to many others.” Other considerations in selecting potential projects include having year round access to the site. “If you can work there all year round you don’t need to build a camp,” says Champigny. “You don’t need to use helicopters, you stay in local accommodation, which also means that when you get to the development stage you don’t need to build roads or power lines. Everything is there. That is quite important in where we select projects because if you have lower costs the deposit will be more profitable to mine.” So Sphinx Resources has a strong team in a strong mining location, but exploration is a risky business, and risks are better shared. “We also have strong partners,” says Champigny, “one of which is the Quebec mineral exploration agency SOQUEM (Société Québécoise de l’Exploration Minière) and the other one is Osisko Metals.” SOQUEM is Sphinx’s partner in the Calumet-Sud project in the Pontiac area in the southwest of Quebec. “The project is adjacent to the former New Calumet mine that closed in 1968,” says Champigny. “Michel Gauthier went to the area and saw the potential to find more. Just south of the old mine, zinc

76°34' W

Ziac District, MRC Pontiac Tessouat - Sphinx (100%) 22 claims - 13 km²

Tessouat-Sud - Sphinx (100%) 296 claims - 177 km²

45°55' N

Waltham

Calumet-Sud zinc discovery 2017 Zinc occurrences Claims boundary Limits of municipalities

Fort-Coulonge

Withdrawn from staking

QUÉBEC

Westmeath

45°45' N

GPd - Sphinx (100%) 74 claims - 41 km²

Calumet-Nord Ressources Tranchemontagne

ONTARIO

Campbell's Bay

Beachburg New Calumet Mines Limited (1944-1968) 3.8 Mt @ 5.8% Zn, 1.6% Pb, 65 g/t Ag, 0.4 g/t Au

Calumet-Sud Sphinx / SOQUEM (50-50%) 21 claims - 12 km² Balmat-Edwards-Pierrepont Zinc District (USA)

5 Kilometers

Ziac District (Québec)

was found on surface and this is where we are concentrating our efforts now. We have done some drilling and we believe we’ve got something. We think we have the potential to have a resource there.” Sphinx also recently announced a joint venture with Osisko Metals to explore for zinc in highly prospective areas of the Grenville geological province in southern Quebec. One of the Osisko team, Bob Wares, has been involved in two major discoveries, the Canadian Malartic gold mine and a zinc discovery in Arizona in the United States. Sphinx will act as operator of the Grenville Zinc Project during the exploration period. The companies have already worked together to design an exploration program which aims to discover a Broken Hilltype zinc deposit. “We’ve been to Australia to see what they’ve done at Broken Hill and we believe we can do the same thing here,” said Champigny. More so now than ever before, however, the development of a new mine depends on social and environmental factors, and Sphinx is at the top of the league again here. “The first criterion we look at when we pick an area for exploration is social acceptability,” says Champigny, “and the way we define it is quite simple. We say that the local population has to want the project as much or more than we do.” That is reflected in the company’s share structure, he explains, with almost 20 per cent of its shares held by local people. “Social acceptability is very important. You have to engage with local communities and establish a relationship before you even start doing exploration. Quebec is a good place to do that.”

76°55' W

sphinx resources

10 Km

Bryson

Pierrepont Mine

(1982-2001) 2.4 Mt @ 16.3% zinc

Obwondiag Sphinx (100%) 96 claims - 53 km²

Edwards Mine

(1909-1980) 6.0 Mt @ 10.8% zinc

Hyatt Mine

(1918-1998, intermittent) 1.0 Mt @ 8.3% zinc

Shawville Portage-du-Fort

Balmat Mines

(1930-2001; 2006-2008) 30.7 Mt @ 8.6% zinc

Source : presentation at PDAC 2017 convention, "100 Years of Zinc Discoveries in the Balmat-Edwards-Pierrepont District", Richard (Tick) Knight

Sphinx Resources trades on the TSX Venture exchange: TSX-V: SFX.

“Social acceptability is very important. You have to engage with local communities and establish a relationship before you even start doing exploration. Quebec is a good place to do that”

World Mining Magazine www.ogsmag.com

news

Pan American Silver acquires Tahoe Resources

Tahoe Resources’ Escobal Mine

an American Silver and Tahoe Resources are joining forces to create the world’s largest silver mining company.

and attractive operating margins,” said Michael Steinmann, president and chief executive officer of Pan American Silver. “This transaction doubles our silver reserves and further

“This transaction doubles our silver reserves and further improves our cost profile”

Shareholders of Tahoe will be entitled to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe. They will also have a right to a contingent payment tied to the restart of Tahoe’s Escobal mine in Guatemala. “The combination of Pan American and Tahoe will establish the world’s premier silver mining company with an industryleading portfolio of assets, superior growth opportunities

improves our cost profile. We will build on that strong foundation, optimizing these high-quality assets to deliver profitable growth and superior returns.” Kevin McArthur, executive chair of Tahoe Resources, said: “This transaction allows our shareholders to participate in the creation of the world’s premier silver company with the contribution of the world-class Escobal mine to Pan American’s existing asset base.”

Thiess awarded automation contract at Christmas Creek

hiess has been contracted to install autonomous haulage system technology at Fortescue Metals’ Christmas Creek operations in the Pilbara region of Western Australia. Thiess will convert a minimum of 65 conventional haul trucks over the course of the 18-month contract. It will also install various sub-components on ancillary equipment to allow the machinery to operate autonomously at Fortescue’s

Chichester Hubs. The contracted work includes the installation of the system onto Fortescue’s Komatsu 930E and Caterpillar 789D haul

trucks. “This contract reinforces Thiess’ positive working relationship with Fortescue and strengthens our position as a leading provider of

autonomous services,” said CIMIC Group chief executive officer Michael Wright. “Our work at Christmas Creek builds on our strong record of delivery for Fortescue at their Solomon Mine, where we assisted in the upgrade of their autonomous fleet,” said Douglas Thompson, Thiess Managing Director and CIMIC Group Executive Mining and Mineral Processing.

World Mining Magazine www.ogsmag.com

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news

Nordic Gold completes first pour at Laiva mine in Finland

ordic Gold has successfully completed the first pour of gold from its Laiva mine in Finland. A total of 1,234 ounces of doré was poured. The company acquired the Laiva Mine in December 2017 for approximately $25 million in cash and shares. Since that time it has completed an updated NI43-101 resource calculation, completed a PEA, recruited an experienced management team to operate the mine, and completed all necessary

Hepworth, president and chief executive officer. “The last 18 months has

“The first pour is a critical but vital step in returning Laiva to commercial production” permitting and approvals to operate. The company has also completed all the necessary plant maintenance and recommissioning. “The first pour is a critical but vital step in returning Laiva to commercial production,” said Michael

been focused on using past production data and learning from this information. Many fixes have been implemented and as we move towards commercial production further improvements will be implemented to ensure appropriate economics

and efficiencies. The team at the mine has done an outstanding job of getting back to production in an incredibly short timeframe. From care and maintenance to production in around 11 months is something everyone can be very proud of.”

Sphinx and SOQUEM find zinc at Calumet-Sud project

phinx Resources and its partner SOQUEM have completed channel sampling from 13 new trenches on the CalumetSud project in Quebec. The trenches extend up to 1,500m north of the Sonny zone on the Calumet-Sud project. Sampling of the channels was conducted at

project is adjacent to the former New Calumet mines that produced 3.8 million metric tonnes of ore from 1944 to 1968. A new diamond drilling campaign, of a minimum of 2,000m, is scheduled to validate the channelsampled areas from the Sonny zone. World Mining Magazine www.ogsmag.com

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news

Rio Tinto to invest $2.6 billion in Koodaideri

io Tinto is to develop its most technologically advanced mine following the full approval of a $2.6 billion investment in the Koodaideri iron ore mine in the Pilbara region of Western Australia. Koodaideri will deliver a new production hub for

flagship iron ore product. Koodaideri Phase 1 will help sustain Rio Tinto’s existing production capacity by replacing depletion elsewhere in the system. The project will increase the higher-value lump component of the Pilbara Blend, subject to market

“Koodaideri will be the most technologically advanced mine we have ever built” Rio Tinto’s world-class iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166-kilometre rail line connecting the mine to the existing network. Construction will start next year with first production expected in late 2021. Once complete, the mine will have an annual capacity of 43 million tonnes, underpinning production of the Pilbara Blend, Rio Tinto’s

conditions, from the current average of about 35 per cent to around 38 per cent. The operation has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine. “Koodaideri is a gamechanger for Rio Tinto,” said chief executive J-S Jacques. “It will be the most technologically advanced mine we have ever built and

sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity.” The investment is underpinned by an ore body of high-quality Brockman ore more than 20 kilometres long and three kilometres wide. In addition to the usual mine infrastructure, Rio Tinto intends to build an airport, mine support facilities and accommodation for employees. Throughout the construction period the company expects to employ over 2,000 people with 600 permanent roles created once the mine is operational. A $44 million pre-feasibility study into Koodaideri Phase 2 has also been approved. The expansion could increase annual capacity from the Koodaideri production hub to 70 million tonnes and beyond. A final investment decision is subject to study outcomes and Rio Tinto’s value over volume approach.

World Mining Magazine www.ogsmag.com

Answers on the wind!

What is the ideal windfence porosity? Start

Is the fence a temporary reqirement?

The most important part of any windfence is the fabric. It needs to be durable, reliable, and it needs to work! The fabric effectiveness is tied to it’s aerodynamic porosity – that is the porosity that the wind “sees”. All WeatherSolve fabrics are laboratory tested for aerodynamic porosity as their rating is different than, for example, a simple shade measurement of porosity. On this page you can see the thought process through to see how your fabric is chosen. For large fences this process is supplemented with Computational Fluid Dynamics (CFD) analysis for the very best design optimization.

Yes

Choose the more porous fabrics such as 70% and 80% aerodynamic porosity. This gives a modest reduction in wind speed over a greater distance, but still reduces loads on the protected zone by about half. The loads on the structure are also minimized which reduces the structural cost.

Choose mid-range porosity fabric such as 30% to 50% aerodynamic porosity. These fabrics are in the sweet spot for effectiveness as they allow enough air to pass to minimize downwind turbulence, but still give excellent shelter and excellent dust control.

A fabric of 40% aerodynamic porosity will reduce loading of the upper part of the fence.

On the lower part of a fence a lower 24% aerodynamic porosity is appropriate. There is more dust to trap and the load will be lower.

The ideal cladding fabric for these situations is usually the 24% porosity. It is porous enough to allow the enclosure to breathe, but still trap nearly all dust inside it.

A temporary fence is for situations where the reason for the fence will be short lived such as a construction site or a portable fence where the location may change frequently. These fences still need to be designed to meet agreed wind loads.

When installing a purpose built structure it is important to consider the loads generated from fabric choice and location.

24% No

What is the primary purpose?

47%

Primarily for storm damage?

Wind Protection

Dust Control

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Havilah confirms discovery in Grants Iron Ore Basin

avilah Resources has discovered a major new iron ore deposit in the Grants Iron Ore Basin in South Australia. A recently completed 13 hole, 3,510 metre reverse circulation (RC) drilling program successfully intersected consistently thick iron formation in multiple drill holes over an area of at least 3.5 km2 in the western part of the basin. The drilling is part of a comprehensive program of work currently being performed and funded by SIMEC Mining as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects. SIMEC Mining has exclusivity over the Maldorky and Grants projects through the end of 2018 and discussions regarding an extension have commenced. The drilling program was planned and supervised by Havilah personnel, and carried out by Ausdrill using a large capacity RC drilling rig. Several holes

“The drilling program has confirmed the original exploration concept for the existence of a thick, relatively shallow, iron formation in the Grants Iron Ore Basin”

were drilled to 316 metres depth (using the total of the available drilling rods) and still remained in the iron formation. Commenting on the drilling results, Havilah’s technical director, Dr Chris Giles said: “The drilling program has confirmed the original exploration concept for the existence of a thick, relatively shallow, iron formation in the Grants Iron Ore Basin. We are grateful to SIMEC Mining for having the vision to fund the exploration drilling that has resulted in this major new iron ore discovery for South Australia. “The beauty is that the deposit starts near surface, lies only 11 km from the Transcontinental Railway line and is just over a one hour drive from Broken Hill, which makes it uniquely favourable for development. At this stage we can only guess at the potential size of the deposit, but based on the thickness of the iron formation and its areal extent, it is apparent that there exists significant resource potential.”

BHP makes new discovery near Olympic Dam B

HP has identified a potential new iron oxide, copper, gold (IOCG) mineralised system, 40 miles south east of its Olympic Dam operations in South Australia. Four diamond drill holes, totalling 5346 metres, have intersected copper, gold, uranium and silver mineralisation of IOCG style. BHP’s copper exploration

team is evaluating and interpreting the results and planning follow up drilling to commence in early 2019. BHP’s copper exploration program has targeted the Stuart Shelf in South Australia as part of a focused global program which includes Ecuador, Canada, Peru, Chile and the south west of the United States. World Mining Magazine www.ogsmag.com

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news

Sandvik and Nokia collaborate on Industrial IoT

andvik has signed an agreement with Nokia to further develop Sandvik solutions for private LTE (long term evolution) and 5G technology. The Nokia Digital Automation Cloud (NDAC) platform offers pervasive connectivity enabling advanced applications, and will initially be implemented and tested in the Sandvik test mine in Tampere, Finland. Sandvik’s work in automation has grown to include robust data analytics and process optimization offerings, where connectivity and local computing power are crucial. Applications

“The Nokia digital automation platform will operate both underground and in open pit mines” requiring high capacity and low latency are becoming increasingly important. Private LTE networks bring reliable and secure high capacity, low latency and wide coverage mobile broadband to serve mission and business critical

industrial connectivity needs and offer a variety of terminals, sensors and other devices. The Nokia digital automation platform will operate both underground and in open pit mines, and offers a flexible connectivity platform for testing and developing Sandvik technology. This network enables operation of autonomous vehicles, real-time monitoring of underground and outdoor premises to keep people and equipment safe, remote diagnostics and predictive maintenance, as well as asset management, control and authentication. “Our cooperation with Nokia is another important part of our strategy to develop open, interoperable solutions for future mining needs,” said Riku Pulli, vice president, automation, Sandvik Mining and Rock Technology. “Enhanced connectivity is critical for smarter and safer underground operations, and we’re proud to work with Nokia to develop these enhanced connectivity options for our test mine and mining industry going forward.”

OceanaGold’s Haile Gold Mine orders IsaMill from Glencore

ceanaGold’s Haile Gold Mine in South Carolina is about to take possession of an M10,000 IsaMill from Glencore Technology for ultrafine grinding duties. Mark Cadzow, OceanaGold’s chief development officer, said the new IsaMill will re-grind gold-bearing concentrate from 42 microns to below 13 microns, which will improve leach recovery of the flotation concentrate at considerably lower maintenance and grinding media costs than previously. He added that the company had used a smaller M1,000 IsaMill at its Macraes Mine for many years with excellent results. The new mill is en route to South Carolina for installation in January 2019.

“The new IsaMill will re-grind gold-bearing concentrate from 42 microns to below 13 microns”

Although Haile Gold’s recoveries have consistently averaged in the low 80% range, the grind size achieved by other equipment has only been 19 microns. The ability to regrind to 13 microns is expected to increase recoveries and deliver additional value from OceanaGold’s asset. Glencore Technology has designed the layout and engineering of the complete IsaMill plant for the installation to improve maintainability and operability. Design includes mill, feed and discharge hoppers and pumps, cyclone cluster, media dewatering and media handling. It also includes all structural, piping and electrical, instrumentation and controls engineering. World Mining Magazine www.ogsmag.com

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Epiroc continues acquisition trail in South Africa

S “This acquisition will enable us to strengthen our global position in the hard rock bolting market”

wedish-owned mining equipment manufacturer Epiroc has agreed to acquire Innovative Mining Products (Pty) Limited, widely known as New Concept Mining, a South African manufacturer of rock reinforcement products for underground mining. Innovative Mining Products is based in Johannesburg, South Africa, and has facilities also in Peru, Zambia and Canada. It manufactures a comprehensive range of underground mining roof support products, rock monitoring systems and related accessories. “This acquisition will enable us to strengthen our global position in the hard rock bolting market,” said Helena Hedblom, Epiroc’s senior executive vice president, mining and infrastructure. “We are happy to combine forces with the strong team at Innovative Mining Products to bring the best rock reinforcement solutions to mining

customers.” Acknowledging the acquisition on its website, NCM said, “We have established ourselves as leaders in the research, development and manufacturing of ground reinforcement and support products for underground mining operations, and we have successfully expanded our operations into a number of countries. “The acquisition of NCM by Epiroc will make it even easier for our customers to continue benefiting from the expertise, innovation and customer service [clients] have come to expect from NCM due to Epiroc’s more enhanced global supply chain.” The acquisition is expected to be completed in the first quarter of 2019, pending approval from regulatory authorities. The business will become part of Epiroc’s Rock Drilling Tools division, and will continue to be based in Johannesburg.

Pilbara Minerals approves Pilgangoora expansion

ustralian lithium producer Pilbara Minerals has endorsed the continued expansion of its 100%-owned Pilgangoora lithium-tantalum project in Western Australia’s Pilbara region. The final investment decision for the Stage 2 expansion follows the successful completion of the definitive feasibility study and will see Pilgangoora become a five million tonne per year operation after final regulatory approvals and the balance of project funding have been secured.

The company has already placed some long-lead orders for major equipment so it can meet its objective of commissioning Stage 2 from the December quarter, 2019. “Against a backdrop of significant

demand growth for lithium raw materials over the coming decade, the quality and scale of the resource at our Pilgangoora Project demands further expansion,” said managing director Ken Brinsden. “This will ensure it becomes a mainstay in the next generation of large-scale, low-cost mines to support the significant growth in downstream lithium hydroxide capacity. In much the same way as we got on with the job in Stage 1, we will work to the same tune in Stage 2.” World Mining Magazine www.ogsmag.com

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news

Mining starts at Kalgoorlie Super Pit expansion

algoorlie Consolidated Gold Mines (KCGM), the joint venture between Newmont Mining and Barrick Gold that owns and operates the Super Pit gold mine in Western Australia, has commenced mining the Morrison layback. The first production blast took place on Monday 26 November. Known as the Morrison Starter Pit, the layback is at the southern end of KCGM’s Fimiston Open Pit, and is the first new layback since Golden Pike commenced in

a big step forward for the operation, considering the challenges that the Open Pit

“The start of mining at Morrison is a big step forward, considering the challenges that the Open Pit operations have faced” 2009. KCGM general manager Cecile Thaxter said the start of mining at Morrison was

operations have faced since the West Wall failure back in March 2017. “Our people worked

collaboratively and tirelessly to redesign the pit and allowed for mining to commence at Morrison despite the loss of Y Ramp due to the May 2018 rock falls on the East Wall. Although this starter pit is smaller than the originally contemplated Morrison and Brownhill laybacks, it does provide flexibility with an additional mining area, while we continue to progress remediation plans.”

First shipment leaves Rio Tinto’s Amrun bauxite mine

io Tinto has made the first shipment of bauxite from its Amrun project in Queensland, Australia, six weeks ahead of schedule. The US$1.9 billion investment in Amrun will replace production from the depleting East Weipa mine and increase annual bauxite exports by around 10 million tonnes. Amrun is expected to reach a full production rate of 22.8

million tonnes a year during 2019. “Bringing Amrun online further strengthens our position as a leading

supplier in the seaborne market,” said Alf Barrios, chief executive of Rio Tinto Aluminium. “We have the largest bauxite

resources in the industry and are geographically well positioned to supply China’s significant future import needs, as well as supporting our refinery and smelting operations in Australia and New Zealand. The Amrun mine will ensure generational jobs for Queenslanders and build significantly on our 55-year history on the Western Cape.”

World Mining Magazine www.ogsmag.com

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Newmont declares commercial production at Subika Underground

ewmont Mining Corporation has achieved commercial production at the Subika Underground project, adding higher-grade, lower-cost gold production at the Ahafo mine in Ghana.

Subika Underground will add average annual gold production of between 150,000 and 200,000 ounces per year for the first five years and has an initial mine life of around 10 years. Combined with completion of the

“The mine provides an underground platform to explore additional upside potential in adjacent ore bodies” Subika Underground represents Newmont’s third profitable expansion in 2018 and its tenth completed project since 2013. Subika Underground was delivered on schedule and within budget for approximately $186 million in development capital. Beginning in 2019,

Ahafo Mill expansion project expected in the second half of 2019, Ahafo’s average annual all-in sustaining costs are projected to improve by between $250 and $350 per ounce compared to 2016. The project has an expected internal rate of return of more than 20 per cent. “In addition to increasing

gold production and lowering costs at Ahafo, Subika Underground leverages the operation’s existing infrastructure and experienced workforce to further extend mine life,” said Gary Goldberg, chief executive officer. “The mine provides an underground platform to explore additional upside potential in adjacent ore bodies and also includes some of the latest fitfor-purpose technologies to enhance safety, productivity and efficiency.” As the company’s newest mine, Subika Underground features semi-autonomous loading operations, proximity detection for vehicles, personnel tracking, and planned installation of ventilation-on-demand systems.

World Mining Magazine www.ogsmag.com

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Peabody completes acquisition of Shoal Creek “This purchase represents a tremendous step in Peabody’s commitment to upgrade our seaborne metallurgical coal portfolio”

eabody has completed its purchase of the Shoal Creek seaborne metallurgical coal mine from private coal producer Drummond Company for $387 million. The acquisition includes the well-capitalized mine, preparation plant and logistical assets and excludes legacy liabilities other than reclamation. “This accretive Shoal Creek purchase represents a tremendous step in Peabody’s commitment to upgrade our seaborne metallurgical coal portfolio and target the highly attractive seaborne

demand centres,” said Peabody president and chief executive officer Glenn Kellow. “We believe the Shoal Creek acquisition clearly meets our strict investment filters, with expected high returns and rapid payback, a very attractive valuation, and tangible synergies.” Shoal Creek is located in Central Alabama in the United States and serves Asian and European steel mills. The mine produced 2.1 million tons of metallurgical coal in 2017. Shoal Creek has 58 million tons of proven and probable reserves with an

initial 17 million tons with minimal anticipated capital requirements under the current mine plan, and additional reserves expected to be accessed with relatively low capital requirements. Shoal Creek uses longwall mining technology to mine both the Blue Creek and Mary Lee coal seams. The mining complex is conveniently located on the Black Warrior River which provides direct access to barge transportation to the McDuffie Terminal in Mobile, Alabama, where Panamax and Capesized vessels are loaded.

Premier to acquire Rodeo Creek property in Nevada

remier Gold Mines has agreed to acquire a 100% interest in the Rodeo Creek property in the Carlin Trend of Nevada from Ely Gold Royalties Inc. The Carlin Trend is one of the world’s most prolific gold districts, hosting multiple mining operations owned by Newmont and Barrick. The Rodeo Creek property is a 510 acre land package comprising 31 unpatented claims adjoining Premier’s 40% owned South Arturo property in the heart of the Carlin Trend, and

approximately 10 kilometres northwest from Barrick Gold’s Goldstrike Operations. The project also abuts Halliburton’s Rossi Barite mine at its north boundary. Premier is currently participating in the construction of two new mining operations at the South Arturo joint venture that are located within three kilometres of Rodeo Creek. Production at South Arturo is anticipated to ramp-up in 2019 and the partnership is drilling multiple targets in an effort to

increase reserves and resources. Premier can acquire a 100% interest in the project by paying $500,000 to Ely Gold over a five year period. Ely Gold will retain a 2.0% net smelter royalty. “This acquisition is consistent with Premier’s strategy of growing land positions in the heart of prolific gold districts,” said Ewan Downie, President and CEO. “The Rodeo Creek property has seen little exploration compared to the rest of the Carlin Trend and we are excited to get to work on this project.” World Mining Magazine www.ogsmag.com

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First ore achieved at Fluor bauxite project in Guinea

ompagnie des Bauxites de Guinée (CBG) has achieved

the Kamsar community,” said Tony Morgan, president of Fluor’s mining & metals

“From developing the local craft workforce to strengthening the economy, this project will have a lasting positive impact on the Kamsar community” first ore at its Bauxite Production Expansion Project in Kamsar, Guinea. Fluor Corporation is providing engineering, procurement and construction management services on the project. “From developing the local craft workforce to strengthening the economy, this project will have a lasting positive impact on

business. “Achieving this milestone safely, on budget and on schedule is a testament to the dedication and perseverance of the joint CBG and Fluor team.” The project is expanding bauxite production at the mine from 13.5 to 18.5 million tons per year. Fluor is responsible for the expansion of the mine infrastructure, rail system,

port facility and processing plant infrastructure and utilities. There were more than 1,500 craft workers on site at peak construction. The project team focused on hiring a local workforce, which resulted in Guinean workers representing nearly 75 per cent of the workforce at site. To align the workforce on safe work practices and create a safe work culture at the site, Fluor developed a specialized safety program. The project has worked more than four million hours without a lost-time incident. CBG is jointly owned by the Government of Guinea and the Halco Mining consortium, which includes Alcoa, Rio Tinto and Dadco Investments.

World Mining Magazine www.ogsmag.com

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Doran Manufacturing Lee Demis Director of Business Development 2851 Massachusetts Avenue Cincinnati, OH 45225 Ph: (513) 699-6230 Email: Demis_Lee@Doranmfg.com Web: www.doranmfg.com

Dyno Nobel 2795 East Cottonwood Parkway Suite 500 Salt Lake City, UT 84121 Phone: 800-732-7534 Fax: 801-328-6452 Email: marketing@am.dynonobel.com Customers in the mining industry choose Dyno Nobel for quality products, reliable service and technical expertise. Dyno Nobel is the market leader in North America with facilities in Australia, Canada, the United States, Indonesia, Mexico, South America and Papua New Guinea. With a customer driven focus, Dyno Nobel develops practical products that will benefit customers in real time. Customers can count on real solutions to their pain points of today, helping them to reduce costs and increase production. Renowned for excellent safety performance and innovative explosive products and services, Dyno Nobel continuously delivers groundbreaking performance through practical innovation.

Established in 1953, Cincinnati, Ohio based Doran Manufacturing LLC. is a global leader in tire pressure monitoring systems and other transportation safety technology. Doran 360TM TPMS continuously monitor tire pressure and temperature data using wireless valve stem-mounted tire pressure sensors. Doran TPMS data can be integrated with telematics to communicate tire pressure and temperature data off equipment via wifi, gps and more for remote visibility of tire data. LumAware Advanced Photoluminescent safety products include Personal Protective Equipment (PPE – Helmets, Safety Vests) Exit Signage and more that makes workers performing tasks in low light/no light conditions safer, and illuminates exits and escapeways in emergencies.

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Swanson Industries is a leading provider of

hydraulic cylinder new manufacturing, remanufacturing, aftermarket service and repair, and distribution services for the global underground and aboveground mining markets. ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■

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GEA Group Peter-Müller-Str. 12 40468 Düsseldorf Germany Tel +49 211 9136-0 chemical@gea.com GEA is one of the largest supplier for process technology and components for sophisticated production processes for many industries worldwide. Across a broad range of mining and mineral operations, GEA offers technologies, equipment & services in evaporation and crystallization, drying, cooling, calcining and conditioning, classification, thickening and dewatering, crud treatment and solvent extraction and wastewater management.

United Mining Rentals (UMR) was born out of a specific niche in the market for both short and longer term rentals for both new and used, Sandvik & Getman equipment for both underground & surface mining and also tunnelling applications. Coupled with +35 years of experience in the mining business, UMR provides both sales and rental of new & used mobile equipment for various mining & tunnelling operations across the world. In addition, our sister company, QME Mining Services Division (which operates as an International mining and tunnelling contractor), also operates a large fleet of predominately Sandvik equipment.

Tel. +353 (0)87 149 1945 www.unitedminingrentals.com

mineral processing

Salter Cyclones Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems. Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

MINPRO

MINPRO International have subsidiary offices in 4 countries all of which have the same business, supplying mineral processing equipment and engineering for the mineral processing industry worldwide. Our main products are AKER Flotation Machines; Hydraulic Roller Mills, Semi Mobile Modular Concentrators, Hydro Cyclone Batteries as well as Polyurethane wear parts for the mineral processing industry. We deliver complete new mineral processing installations, renovation and upgrade existing mineral processing plants, retrofitting the AKER flotation mechanisms in existing flotation machines as well as engineering services and consultancy

Tel: +48 515 368 833 Minpro International Sp. z o.o. www.minpro.com

mining technology

Adrok is a cutting edge service technology company headquartered in Edinburgh, Scotland, with exclusive global patents to Atomic Dielectric Resonance (ADR) imaging technology. This innovative technology has been developed for use in Oil and Gas, Mining and Civil Engineering sectors. Adrok’s technology has been used in several projects around the world to explore the sub-surface geology and locate accurately and identify precisely the fluids present at great depths providing high resolution without drilling the underground. This subsurface imaging scanner generates ‘virtual borehole’ logs of subsurface geology from the surface. It is lightweight, field rugged and portable, to enable cost-effective mobilisation.

49-1 West Bowling Green Street Edinburgh, EH6 5NX (Scotland, UK) Tel: +44(0) 131 555 6662 Email: info@adrokgroup.com Website: http://adrokgroup.com/

World Mining Magazine www.ogsmag.com

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Formed in 1997, Canary Systems provides integrated geo-monitoring solutions for a broad range of mining applications, including open pit, tailings, SW-EX, and underground. We help clients better manage risk, monitor performance, and increase the safety of their operations by tying together the loose ends: the hardware required for automatic or semi-automatic data acquisition – and the software to collect, store, and analyze data in a simple and efficient way on a single combined powerful platform. We provide turnkey solutions – including system architecture, hardware and software development, telemetry, and instrumentation – as well as individual components customized to and augmenting existing project needs.

Canary Systems, Inc. Mining Group 4732 Oracle Road, Suite 112 Tucson, AZ 85705 USA Tel: 520.887.9800 info@canarysystems.com www.canarysystems.com

Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems.

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Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

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IVAC Industrial Vacuum Systems Ltd., manufactures a powerful pneumatic powered vacuum/ delivery system that allows you to pick-up and deliver your most difficult materials. The materials can be wet or dry including gravel, sand, slimes, sludge’s and water. The powerful, virtually maintenance free vacuum system is able to deliver the materials short or long distances, even up too kilometres through a pipeline or hose. Its is ideal for sump & ditch clean-up, tanks, under conveyors, around crushers and mills anywhere shovels, vacuum trucks or water hoses are being used for your clean-ups today!

Contact: Brad Fryburger Brad.Fryburger@rinstrum.com +1 248 680 0320 Website: www.rinstrum.com

World Mining Magazine www.ogsmag.com

IVAC Industrial Vacuum Systems Ltd. 35-111 Chartrand Avenue, Logan Lake, BC V0K 1W0 Canada Phone 604-628-3367 Email zereko@zereko.com http://industrialvacuumunit.com

It makes complete sense! Autonomous Vehicles, Autonomous Refueling!

PRECISE / PROFICIENT / PROVEN ENGINEERING AND MANUFACTURING OF: ROBOTIC REFUELING SYSTEM (RFS) - The RFS Pitstop is a containerized system for robotic refueling of heavy duty vehicles in extreme conditions. RFS is safe, efficient, easy, environmental friendly and theft-proof. Operating speeds are between 150 – 300 GPM / (567 – 1135 LPM). Connection to begin refueling is only 25 seconds and disconnecting takes just 25 seconds. The RFS Pitstop system is a turn-key working robot, installed in a 20 foot sea-container which facilitates installation and secures the systems operation.

Robotic Refueling System

Fluid Reservoir Systems

DIESEL AND DEF RAPID REFUELING SYSTEMS - Refuel or fill

any fluid storage vessel accurately and prevent spillage or overpressurizing the storage tank.The Fast Fuel Systems mate with industry standard nozzles and 2” NPT receivers. The Fast Fuel Systems Shut off valve acts as a check valve when servicing receivers.The Fast Fuel Systems Shut off valve can be connected to multiple receivers for remote or dual fill locations.The Fast Fuel Systems Zero or low pressure systems can be used with steel, stainless steel and plastic reservoirs.

THE DIESEL AND DEF SYSTEMS PROVIDE:

• Non Pressurized Fill System • Flow Rates up to 5-211 GPM (18 LPM - 800 LPM) • Provides Dry-break Connection • Exterior Tank Mounting • Retrofit-able • Ideal application for Construction, Mining, AG, Locomotive and Marine Vehicles and closed loop refilling dispensing systems.

High Flow Filling Systems

Hydraulic Breathers with manual overrides

Quick Disconnects

Coverage in the USA and International www.ShawDev.com / teamsupport@shawdev.com Tel +1 239 405 6100

Service Lube Centers

With a MOS H3 series working in-pit, the customer will not need to install and operate other equipment at the feeding hopper installation. Rock breaker booms, rollers screener and rock crusher are no longer necessary. For existing conventional feeding hopper: The installed rock breaker boom, roller screen and rock crusher can be switched off. The dumper material is sent directly from the apron feeder to the installed vibrating screen. All the OPEX expenses for these machines (electrical energy, operators, maintenance and so on) will be economized. Since the oversized waste material is already removed in-pit, the OPEX for waste disposal system will be cut. Moreover the feeding hopper will produce less noise and less vibrations, extending its operating life. For installation of a new feeding hopper: with the MOS H3 series working in-pit, the related CAPEX expenses will be optimized and significantly reduced. Rock breaker booms, rollers screen and rock crusher are no longer necessary. Also the reduction of the waste size material results in less disposal equipment.

“CUTTING MORE PROCESSING COSTS IN OPEN PIT MINES”

A NEW STANDARD 1. HIGH PRODUCTION RATE OF SIZED MATERIAL: 3000 T/H 2. TOTAL MOBILITY ON EVERY SURFACE AND SLOPE TO STAY CLOSE TO THE EXTRACTION EQUIPMENT 3. HIGH EFFICIENTLY TO LOAD ON TRUCKS ONLY NET MATERIAL, REMOVING STONES AND IMPURITIES 4. CUTTING MINING PROCESSING COSTS, REDUCING THE NUMBER OF TRUCKS, THEIR MAINTENANCE AND MOST OF THE STANDARD EQUIPMENT USED NOWADAYS

MOS S.R.L. info@moscreener.com Via Stra’ 3/B www.moscreener.com 35015 Galliera Veneta, PD, +39 335 1804452 For all mining equipment rentals visit www.unitedminingrentals.com Italy +39 389 1199643

For all mining equipment rentals visit www.unitedminingrentals.com

Are equipment trips slowing down your ore? Operate to constraints to maximize flow. Pavilion8ÂŽ drives your operation to maximum potential The Pavilion8 Material Flow Management application provides real-time visibility of complex multiple conveyor systems in a mining facility. By taking advantage of existing data, the application improves performance by initiating preventive or corrective measures prior to a system trip.

Discover how a Pavilion solution can help you operate your facility at maximum efficiency.