mining global – october 2014

How Susceptible is the Mining Industry to IT Security Risks?

Futuristic Excavator Concepts

Mergers on the Horizion for Gold Mining Industry

www.miningglobal.comOctober 2014

Liebherr AustraliaTECHNOLOGY & INNOVATION DRIVING EFFICIENCY

Operating Successfully In Emerging Jurisdictions

IN TH IS ISSUE

Robert SpenceEditor

[email protected]

E D I T O R S C O M M E N T

IN the October edition of Mining Global, ALROSA opens the door to the companys Udachny mine and explains how the company is transforming operations and shifting the worlds largest diamond mine underground.

Also this month: we examine how susceptible the mining industry is to IT security risks; how an influx of mergers is on the horizon for the gold mining sector; and shed some light on the most advanced and revolutionary excavator concepts to hit the mining industry in coming years.

Lastly, we break down the top 10 mergers and acquisitions of all-time and how the deals reshaped the mining industry forever..

Enjoy the issue and throw your diamonds in the air

When we long for life without difficulties, remind us that oaks

grow strong in contrary winds and diamonds are made under pressure

Peter Marshall

3

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5CONTENTS

OperationsInsider Access: The Worlds Largest Diamond Mine

MachineryFuturistic Excavator Concepts and More!

TechnologyHow Susceptible is the Mining Industry to IT Security Risks?

FinanceMore Mergers on the Horizion for Gold Mining Industry

Mergers & AcquisitionsTOP 10

8

32

18

26

36

Features

CONTENTS

7

Company ProfilesEUROPE

50 Association: Euromines

60 Eldorado Gold

AFRICA

76 Grand Cte Operations

102 Discovery Metals New Era for Discovery Metals

116 BCM Group

CANADA

128 KGHM Carlota Mine

136 ArcelorMittal Canada

162 Association: NWT & Nunavut Chamber of Mines

USA

170 Gypsum Resource Materials

AUSTRALIA

176 Liebherr Australia

188 QCC Resources

196 CITIC Heavy Industries

208 UGM Group

214 Association: World Coal Association

220 Association: Pilbara Regional Council

6076

116

170

128

Eldorado Gold

Grand Cte Operations

BCM Group

Gypsum Resource Materials

KGHM Carlota Mine

162NWT & Nunavut Chamber of Mines

50Euromines

102Discovery Metals New Era for Discovery Metals

8 S e p t e m b e r 2 0 1 4

OPERATIONS

99

ALROSA opens the doors to the Udachny mine and explains how the company is transforming operations and shifting the worlds largest diamond mine underground

Insider Access: THE WORLDS LARGEST DIAMOND MINE

W r i t t e n b y : R O B E RT S PE N C E

1 0 S e p t e m b e r 2 0 1 4

AS RUSSIAS LARGEST diamond mining company, ALROSA knows

a thing or two about diamonds. The

company has been engaged in the

exploration, mining, manufacturing

and sale of diamonds for over 60 years

and accounts for over 27 percent

of the global diamond production,

including owning the largest rough

diamond reserves in the world.

ALROSA, which previously

operated the largest excavated hole

in the world in the Mir mine, has been

aggressively carrying out initiatives

to transition its Udachny project in

northeast Russia underground.

The state-controlled diamond

mining company granted us

insider access, providing exclusive

information and updates on the

mine and what the company is

anticipating for the future.

The state-controlled diamond

mining company granted us an

inside look into the Udachny mine,

including exclusive information and

OPERATIONS

T H E W O R L D S L A R G E S T D I A M O N D M I N E

1 1

updates on the future of the mine.

Largest diamond mine in the worldDiscovered in 1955, the Udachny mine

has become one of ALROSAs largest

diamond deposits ever. The mine is

part of the Daldyn-Alakit field situated

in the central part of the Yakutian

diamondiferous province in Russia.

The region consists of kimberlite

rocks which contain eskolaite mineral

within the natural diamond. The ore

body of the mine is separated into

Eastern and Western ore bodies

which are divided by a block of Upper

Cambrian sedimentary rocks.

The open-pit mine, which

commenced in 1971, hit its peak

in the early 1990s producing more

than half of the companys rough

diamonds with 12 million tons per year.

At depths of more than 630 meters,

the Udachny mine is one of the 10

deepest open-pit mines in the world.

As of late, however, the open-pit

mining is nearing its end and the

company has initiated plans to

transition the mine underground.

The open-pit mining couldnt last

forever, says Evgeniya Kozenko,

head of public relations at ALROSA.

At a certain point open-pit

mining at any deposit becomes

unprofitable as the pit walls need to

be widened to extract kimberlite ore.

Today, Udachny open-pit mine has

extremely steep slope and we use

the remotely controlled equipment

for the safe extraction of ore there.

Open-pit mining is expected

to be phased out by 2015.

Future outlook of the mineIn 2004, ALROSA began

1 2 S e p t e m b e r 2 0 1 4

OPERATIONS


1 3

construction at Udachny to

transition it underground. The

first start-up complex of the

mine was commissioned in 2012

and the commercial production

commenced in June 2014.

The commissioned start-up

complex includes a nine meter

diameter skip shaft to remove

ore and rock and an eight meter

diameter ventilation shaft, the largest

in Russia today, says Kozenko.

Above-zero temperatures are

permanently maintained in all the

workings by heater installations

to ensure comfortable working

conditions and prevent possible

freezing of the systems.

The underground portion of

the Udachny mine is expected

to become Russias biggest

underground diamond mine when

it reaches full capacity in 2019.

An ambitious program for the

1 4 S e p t e m b e r 2 0 1 4

construction of underground mines

is an integral part of ALROSAs

development strategy aiming to

keep its worlds leading position in

terms of rough diamond mining and

ensure the diamond mining growth

up to over 40 million carats, said

ALROSA CEO Fedor Andreev.

Launch of the Udachny

underground mine will allow the

Company to maintain stable

volumes of diamond production in

Western Yakutia for many years.

The mine will produce 2.4 million

ALROSAS KEY PERSONNEL

Fyodor AndreevPresident (CEO), OJSC ALROSA. Mr. Fyodor B. Andreev was born in Voronezh on August 16, 1966. He is a graduate of Leningrad State University with a diploma in political economy (graduation year 1989).

Fyodor AndreevChairman of the Supervisory Board, OJSC ALROSA. Mr. Ilya A. Yuzhanov was born on February 7, 1960 in Leningrad. He is a graduate of the Economics Department of the Leningrad State University (1982).

OPERATIONS


1 5

1 6 S e p t e m b e r 2 0 1 4

to 3 million tons per year by 2016,

reaching full capacity of four million

tons by 2019. The cumulative

production by 2034 is expected

to reach 72.3 million tons of ore.

Once at capacity, the mine will

be able to provide over five million

carats of diamonds per year.

Future of ALROSAWhile the transitioning of the mine to

underground has gone seemingly well,

it hasnt been without its obstacles.

According to Kozenko, one of the

main problems at the construction

of Udachny underground mine

was mineralized groundwater.

As to the chemical elements

content, groundwater is not

dangerous to human health, but is

harmful to metal, which requires

additional protection for machines

and cables. In the early 2000s,

ALROSA was considering the

possibility for separating useful

elements from groundwater, but this

project was considered unprofitable.

OPERATIONS


1 7

Furthermore, the deposit contains

methane manifestations, which

requires additional industrial safety

measures. Udachny underground

mine is equipped with the air

analyzing systems in the workings

responding to the excess gas level.

Electric drive machinery is used

in the working instead of diesel

machinery to minimize the risk of fire.

Along with the transition, ALROSA

has several other new pipes

scheduled for the start of mining

operations in the future, including

re-commissioning of the Mir mine.

Although the project was

completed in 2001, ALROSA has

further development of the deposit

through underground mining.

In 2012, it was decided not to

rush launching the mine at its design

capacity of one million tons of ore per

year, and to focus on the creation of

the most effective drainage system

to ensure the stable operation of Mir

in the years ahead, said Kozenko.

Nevertheless, diamond

mining at Mir is underway.

Futuristic Excavator Concepts and More!We take a look at some of the most advanced and revolutionary excavator concepts to hit the mining industryW r i t t e n b y: R O B E RT S PE N C E

MACHINERY

1 91 9

2 0 O c t o b e r 2 0 1 4

LIFE IS 10 percent what happens to you and 90 percent how you react to it.

In the wake of declining commodity

prices, mining companies have

began testing the waters for

newer and more efficient ways of

producing more with less. And while

you cant control the ore grade

and reserves, you can change the

efficiency of how its mined.

According to Jurgen Beier, a

national mining practice leader for

Deloitte, innovation and structural

changes have become a necessary

part of the mining industry, including

technology and machinery.

There are a number of proven

technologies and things that are

out there today that radically

change the way ore is extracted

and change the way mining occurs

() We think this is the opportunity

to embrace that innovation, to get

to that point of sustainability.

The struggle for the mining sector

is real, but its beginning to spawn

some of the most advanced and

revolutionary ideas ever thought

possible especially with excavators.

VolvoVolvo may seem like your ordinary

automaker but the company has

opened the doors to a wave of new

Volvo in action

MACHINERY

H E A D L I N E

2 1

concepts for mining equipment.

The company has teamed up with

Swedish industrial design house

Prospective Design to develop the

excavator of the future, offering an

array of innovative components never

seen before. The machine is one part

space age and another part primordial.

Featuring a small fuel cell that

produces electric energy, the

excavator adopts four tracks with

separate wheel motors that can

brake, accelerate and steer. With

an improved cab built for visibility,

the excavator includes a transparent

boom for safety along with GPS

based telematic capabilities

to ensure the excavator never

leaves a predetermined area.

Although merely a concept, the two

teams have created a combination

of futuristic ideas, giving the sector a

peek inside what mining equipment

could eventually resemble.

DoosanWhile Volvo may only be designing

a concept, Doosan Infracore is

working on something tangible. As

the companys vision for the future,

the CX excavator includes a number

of technological features to promote

safety, usability and efficiency.

The body is a hybrid power system

Doosan in action

2 2 O c t o b e r 2 0 1 4

attached to an independent tracked

assembly. The excavator uses an

articulating joint to provide better

maneuverability while also providing

improved stability on any surface.

In addition, the machine of the

future is equipped with an epochal

expansion of sliding cabin, an

independent and endless navigation

facility, an eco-friendly hybrid power

system, and automatic operating

system with artificial intelligence.

The CX excavator, which received

reducing emissions, fuel costs and

noise while the cabin has the ability

to be extended forward to provide

improved visibility for the driver.

Within the cabin, all controls are

integrated into the seat with Hyper-

emotional digital technology and a

haptic control panel displaying all

vital information on a transparent

screen. This allows the operator to

maintain focus on its surrounding.

The undercarriage design

incorporates four swing arms

Scorpion Excavator

MACHINERY

2 3

the Best of the Best Award in 2009

for futuristic concept, is expected to

be developed by the end of 2018.

Scorpion ExcavatorIn an effort to breed newer earth

moving machinery, the Scorpion

excavator is a concept for its time.

The innovative design, which is a

hypothetical proposal from JCB for

the year 2073, is a remote-controlled

excavator modeled after a scorpion.

The excavator is powered by a 750

bhp diesel with an electric drive

transmission and all-terrain wheels.

The six wheeled drive incorporates

a fully independent suspension and

swinging half-axles for greater traction

with go-anywhere capabilities.

The omni-directional scorpion

tail rear backhoe allows for greater

degree of freedom, improved control,

and longer reach. The design also

includes a wider and larger front

bucket for enhanced loading as

well as counterweight support.

2 4 O c t o b e r 2 0 1 4

Hyundai next-generation earthmoverAnother automaker on our list,

Hyundai has recently unveiled its

R220LC-9 HI-POSS excavator, a

futuristic concept brought to modern

day life. The excavator showcases

Hyundais next-generation power

system providing improved fuel

consumption and controllability by the

optimal control of electronic pumps

and valves.

Hyundai R220LC-95

MACHINERY

2 5

H E A D L I N E

The earthmover utilizes an

innovative system (Hyundai Intelligent

Power Optimal Sharing and Energy

Saving) that maximizes energy

utilization through electronically

controlled pump and valve, leading

to more precise and effective

machine operation and improved

fuel consumption and operability.

The excavator reduces energy

consumption by reducing waste flow

through optimal flow distribution

and recycling of waste energy

through an accumulator.

Hyundais R220LC-9 HI-POSS

excavator boasts a 143 hp Cummins

Tier 3 QSB6.7 engine. This model

has an operating weight of 50,520

pounds, a maximum dig depth

of 22 feet, 1 inch and a bucket

breakout force of 31,830 pounds.

Although most of these excavators

and earthmovers are simply concepts,

theyre breathing new light into the

industry, helping to revitalize a sector

that has been hit hard by rising costs.

How Susceptible is the Mining Industry to IT Security Risks?

W r i t t e n b y : R O B E RT S PE N C E

As the industry continues to grow with new innovative technology, the one emerging problem no one is paying attention to is breach of information

TECHNOLOGY

2 8 O c t o b e r 2 0 1 4

THE LAST FEW years has seen an influx in technological advances for the

mining industry. Companies like Rio

Tinto and BHP Billitonare leveraging

innovative equipment such as

autonomous vehicles and simulation

technology to their advantage.

However, the one emerging

problem no one is paying attention

to is breach of information.

In 2013 Ernst & Young Global Limited

conducted a Global Information

Security Survey and found almost

41 percent of the mining and metals

respondents experienced an increase

in external threats over the past 12

months. Not to mention, 28 percent

experienced an increase in internal

vulnerabilities over the same period.

Cyber hacking and breach

of information has become one

of the biggest concerns to the

mining and metals sector. The

threat, believe it or not, is real.

On a scale of one to 10, we saw

examples at nine, and examples

at one. SCADA [the protocol used

by large-scale industrial control

systems] is an example where a lot of

organizations dont even understand

that its IT, said Mike Rothery, first

assistant secretary in the National

Security Resilience Policy Division of

the Attorney-Generals Department,

and secretary to the governments

Cyber Security Operations Board.

The industry, which boasts

one of the largest cash flows on

investments, has the least developed

understandings of managing IT

security risks and it shows.

According to a recent report by

ZDNet, discussion between the

Australian government and the mining

industry has exposed the sector

as a spotty security landscape.

Ive certainly had some discussions

with CIOs of utilities who show me

their map of their IT environment,

Rio Tinto work with industry leading technologists

TECHNOLOGY

2 9

T H E M I N I N G I N D U S T R Y I T S I T S E C U R I T Y R I S K S

and all the controls they have ... and

the background checking they do

on people that work in the accounts

area and the call centre and so forth,

and then you say to them, Theres

nothing on here with your SCADA

system. Wheres your engineering

side of it? Oh thats not IT. Thats

the engineers. Thats not a problem,

because theyre not interconnected,

Rothery told the Gartner Security and

Risk Management Summit in Sydney,

When you go to see the chief

engineer, hell say, well they used

to not be interconnected, but when

they took out all the analogue

systems and they needed to put it

on an IP-based system, we werent

going to put in a separate IP-based

network. We just dumped it onto the

corporate network. The CIO doesnt

even know its there, Rothery said.

The use of automated equipment

has placed companies at the mercy of

unscrupulous cyber hackers looking

for their next big cache of private

information. Criminals understand

the increasing dependence mining

companies have on technology,

and are actively looking for ways

to threaten the denial of access to

data, processes and equipment.

Although cyber criminals have

yet to figure out a way to make

CATs Minestar System shows how integrated systems are becoming

Rio Tintos Argyle Underground Mine is one of the most technologically advanced mines in the world, providing opportunities to be at the forefront of mining technology and innovation

3 0 O c t o b e r 2 0 1 4

TECHNOLOGY

money from hacking mining

databases, the potential is there.

The number of attacks on SCADA

systems that everyone agrees have

happened is probably in the 15 to 20

mark, compared to other forms of

cybercrime and cyber espionage, its

minuscule, but its just got this huge

potential for the vulnerabilities.

Where theres a will theres

a way, and cyber hackers are

notorious for finding a way.

Look at Target for example. One of

the biggest retail hacks in U.S. history

wasnt particularly inventive, nor

did it appear destined for success,

but it happened. The hack stole

40 million credit card numbers, 70

million addresses, phone numbers,

and other pieces of personal

information in the blink of an eye.

If theres a message to be learned

here its that mining companies need

to start paying special attention to

their data and how its protected.

Just like their massive mining

operations and infrastructures,

companies need to build their IT

systems in a similar fashion.

Are mining companies susceptible

to security IT risk? In the words of

Walter White, Youre god --- right.

3 1

T H E M I N I N G I N D U S T R Y I T S I T S E C U R I T Y R I S K S

The number of attacks on SCADA systems that everyone agrees have happened is probably in the 15 to 20 mark, compared to other forms of cybercrime and cyber espionage, its minuscule, but its just got this huge potential for the vulnerabilities.

Securing SCADA from hackers is critical for the future of mining

More Mergers on the Horizon for the Gold Mining IndustryW R ITTE N BY: R O B E RT S PE N C E

F INANCE

More Mergers on the Horizon for the Gold Mining Industry

As the gold mining industry recovers from the worst slump in prices in 30 years, the need for more mergers is becoming evident

THE GOLD MINING industry is in dire need of assistance. The sector,

which is recovering from one of the

worst price dips in the last 30 years, is

not exactly in the best of health.

According to Joe Wickwire of

Fidelity Investments, almost 33

percent of all gold production is a

money-losing venture if the precious

metal price is lower than $1,250 oz.

Right now, the trading price

for gold is around $1,230 oz.

Its part of the life cycle of industries

that every so often you need to

have a cleansing of that which is

not working, Wickwire said.

A cleansing of the market

might not be such a bad thing.

Since last year, the gold market

has declined by 28 percent,

prompting many gold producers to

cut budgets, sell assets and adjust

mine plans, which has totaled more

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3 4 O c t o b e r 2 0 1 4

than $26 billion in writedowns.

What the industry needs is more

mergers to assist in improving the

investor returns and in eliminating

the mines deemed unprofitable.

Profitability or lack there ofAccording to Randgold Resources

Limited CEO Mark Bristow, the biggest

issue facing the gold mining industry

today is profitability.

Its going to be tough, right now

weve seen the fund managers looking

to management to fix it, he said.

I think, to a large degree, the fund

managers are joined in how we got

there, culpable like management.

Perhaps some of the fund managers

should practice what they preach,

and that is allocation of capital, he

continued. For gold mining to be

profitable, you have to take out a whole

lot of gold production. If you take out

a lot of gold production, everyones

going to make more money including

the host countries in which we operate.

I thinkthats whatthe industry

needsand I still think the industrys

living in denial, he added.

The current price of gold

F INANCE

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M O R E M E R G E R S F O R T H E G O L D M I N I N G I N D U S T R Y

to these funds are unlikely to

wait much longer to see their

investments put to use.

There should be a flurry of activity

within the next 6-12 months, as these

countercyclical investors who have

been waiting for clear signs that

we are at thebottom of the market

begin to make their move when

assets prices are at their lowest

Consolidation is another

consideration the industry teetering on.

By combining companies in mergers

and/or acquisitions, unprofitable

operations can be eliminated and weak

companies with good assets can be

targeted by stronger producers.

Its a win-win for the gold industry.

By combining companies in mergers and/or acquisitions, unprofitable operations can be eliminated and weak companies with good assets can be targeted by stronger producers

makes it hard for any mining

company to be successful.

I dont believe as an industry were

profitable at $1,300, let alone $1,250,

he said. If you look at the assumptions

being made to allocate capital today,

they are above the spot price, which

doesnt make a whole lot of sense.

Although were [the industry]

saying the right things, I dont

believe were actually doing them,

with exceptions of course.

Mergers and acquisitionsDuring the first half of 2014, deals for

the mining and metals industry had a

total value of $16.7 billion. Thats 69

percent less than the previous year, and

34 percent less in deal volumes. Nearly

nine out of every ten agreements were

valued at less than $50 million.

Simply put, there needs to be

more mergers in the gold sector.

According to estimates by

Bloomberg, funds raised $1.1 billion

for investments in mining and metals

this year, which is nothing compared

to the $8.8 billion in 2013. Less than $2

billion has been spent by PE investors

on mining assets in the past two years.

The latest Ernst & Young market

barometer believes contributors

Mergers & AcquisitionsTOP10

TOP 10

Mergers & AcquisitionsW r i t t e n b y : R o b e r t S p e n c e

3 73 7

TOP 10

3 8 O c t o b e r 2 0 1 4

10 AuRico Gold Purchases Northgate MineralsOn August 29, 2011 AuRico Gold Inc. purchased Canada-based Northgate Minerals for $1.49 billion. The deal combined the two companies into one leading intermediate gold producer with five operating gold mines, and three gold development projects in Mexico, Canada and Australia.

The company is now 62 percent owned by AuRico shareholders with the other 38 percent inhabited by Northgates shareholders.

3 9

09Eldorado Gold Corp. Buys Out European Goldfields Ltd.In a cash-and-shares deal, Eldorado Goldacquired European Goldfields Ltd. for $2.4 billion, creating a gold producer with a market value of $11 billion. The deal, which was completed on February 24, 2012, gave Eldorado the rights to the companys Stratoni mine in Greece and two additional projects in Greece and Romania. By 2015, Eldorado will have an annual gold production exceeding 1.5 million troy ounces.

4 0 O c t o b e r 2 0 1 4

07Cliffs Natural Resources Buys Consolidated Thompson

In the second quarter of 2011, US-based Cliffs Natural Resources pulled off a blockbuster deal by purchasing Consolidated Thompson for $4.6 billion in cash. The deal gave the company a total of 10 iron ore facilities, six coal mines and a chrome project in North and South America and Australia.

TOP 10

D I A M O N D M I N E S I N T H E W O R L D

4 1

08 Arch Coal Acquires International Coal GroupIn May 2011, Arch Coal acquired International Coal Group Inc. for $3.4 billion in an all-cash deal. The purchase put Arch Coal on the map as the fourth-largest coal producer globally and the second-largest US producer of metallurgical coal. The acquisition also put Arch Coal as one of the top 10 suppliers to steelmakers in the world.

TOP 10

4 2 O c t o b e r 2 0 1 4

06Peabody Takes over MacarthurThe end of 2011 gave way toPeabody Energyacquiring Macarthur Coal Ltd. in a $4.7 billion takeover bid. With the help of mining companyArcelorMittal, Peabody was able to seal the deal and take over one of the biggest miners of pulverized coal. The deal also gave the pair ownership of mines in Queensland, the biggest exporter of the fuel.

4 3

05Barrick Acquires Equinox

2011 was a big year for acquisitions and mergers in the mining industry, especially for Barrick Gold. The gold producer acquired Equinox Minerals Limited through an all-cash offer of $7.8 billion, giving the miner control of the Lumwana mine in Zambia and Saudi Arabias biggest copper deposit.

4 4 O c t o b e r 2 0 1 4

TOP 10

04AngloGold and Ashanti GoldfieldsOne of the biggest mergers to occur in the mining industry happened on April 23, 2004. On that date the High Court of Ghana approved the merger of AngloGold and the Ashanti Goldfields Corporation, changing the name to AngloGold Ashanti Limited and creating one of the largest mining companies in the world.

4 5


03Broken Hill Proprietary Company and Billiton PlcIn 2001, the merger between Broken Hill Proprietary and Billiton Plc created a global powerhouse in the mining industry. The two companies, which have a history spanning over 100 years, came together to form the global mining giant BHP Billiton. Under one name, the company has catapulted itself into one of the top four global mining and metal producers on the planet. The merger brought the company from a market capitalization of $28 billion in 2001 to one of $42 billion in 2003.

4 6 O c t o b e r 2 0 1 4

The benchmark in agricultural

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AGRITRANSServing the Southern African

Agricultural Industry

T: +27 58 813 1303 F: +27 86 689 7623

www.agritrans.co.za

4 7

The benchmark in agricultural

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AGRITRANSServing the Southern African

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02Freeport and McMoRanIn 1981 Freeport Minerals merged with McMoRan Oil & Gas with each entity becoming a subsidiary of the newly formed Freeport-McMoRan Inc. In 1998, McMoRan Exploration Co. formed with the merger of McMoRan Oil and Gas Company and Freeport-McMoRan Sulphur Co., Inc. officially creating Freeport-McMoRan Copper and Gold Inc.Since then, the company has become a juggernaut for gas and oil, agricultural minerals, sulphur, phosphoric acid, gold, copper, silver and uranium.In 2014, the company changed its name to Freeport-McMoRan Inc.

TOP 10

4 8 O c t o b e r 2 0 1 4

01Glencore and XstrataReaching #1 on our list of Top 10 Mining Mergers and Acquisitions of All-Time is Glencore and Xstrata. In May 2013, the two companies merged together to form the worlds fourth-biggest mining company and the worlds biggest commodities trader. Together, the two companies have a diversified business spread across several commodities, including copper, coal and zinc. The company has a market value of roughly $66 billion.

European Association of Mining Industries, Metal Ores & Industrial MineralsSelf-promotion helps Euromines capitalise on continental promiseWritten by: Matthew Staff Produced by: James Pepper

5 1

European Association of Mining Industries, Metal Ores & Industrial MineralsSelf-promotion helps Euromines capitalise on continental promiseWritten by: Matthew Staff Produced by: James Pepper

5 2 O c t o b e r 2 0 1 4

EUROMINES

Under the Presidency of Mark Rachovides, The European Association of Mining Industries, Metal Ores & Industrial Minerals (Euromines) is striving to lay to bed assertions of the past to encourage its members about the potential of the future.

Mining in Europe, and indeed across the world, has often come in for criticism but through a strong focus on external industry collaboration and internal optimism, the association is well on its way to changing industry standards and consequently, public perceptions.

Existing as a not-for-profit organisation in its current form since 1996, Euromines represents more than 40 different metals and minerals, more than 100 companies and about 350,000 jobs across its member states, and

Conference field trip, Aitik mine, Sweden

We should be doing exploration and mining and processing and supplying to the people that need those raw materials Mark Rachovides, President

E U R O P E

www.euromines .org 5 3

EUROMINES

Rachovides is positive that Europe can become a partner of choice within the mining industry.

The important thing through what we do is to point out where mining fits in the value chain and to get away from those old stereotypes, he said. We need a balanced, responsible approach to keep the value chains in the EU because it wont contribute to our renaissance or our future if part of the value chain is being sourced outside when we have the ability to do it here.

We should be doing exploration and mining and processing and supplying to the people that need those raw materials. We can do the whole thing and that should make us the partner of choice because we should be showing ourselves as the leaders in terms of sustainable use of our resources.

Key Personnel Mark RachovidesPresident

Mark Rachovides is a consultant to Eldorado Gold Corporation and until recently was Chairman of Deva Gold, Eldorados subsidiary in Romania. He was formerly an Executive Director of European Goldfields which was acquired by Eldorado in early 2012. Rachovides is a well-known specialist in South East Europe and Chairman of the Euromines Gold Group.

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EUROMINES

Thats what we want to achieve; to set the standard thats higher than everyone else.

Present virtuesManufacturing in Europe currently accounts for 75 percent of the EUs exports and many of these manufactured products depend on raw materials. It is figures like these which the Association aims to make clearer to the business world moving forward.

Europe is surprisingly underexplored and underinvested for exploration Mark Rachovides

Vykleky quarry in the Czech Republic after rehabilitation

M I N I N G


EUROMINES

Europe is rich in

natural resources

Europe is surprisingly underexplored and underinvested for exploration, but in terms of technology, were very advanced, so we are increasingly developing the ability to mine more complex deposits and have more automated machinery, Rachovides said. We ultimately look to a future of state-of-the-art modern mining in Europe.

The Association is therefore striving, through affiliations with organisations and

Xxxxxxxxxx

Wealth Creation by Mineral Extraction in Europe, organised by Euromines

on 3rd December 2013 in Brussels

Vykleky quarry in the Czech Republic before rehabilitation

E U R O P E


EUROMINES

conferences at high profile events, to start getting that positive industry message across.

This can only come with a collaborative and integrated drive among its members too though, and Rachovides is adamant that all are responsible in that push and none are burying their heads in the sand.

Most of our members need and do talk more about our good stewardship and the added value that we bring across the spectrum of our activities, he added. A lot of the criticisms are the sins of our past and we need to talk more about the virtues of our present and our future.

Our performance today in Europe speaks for itself. We have excellent health and safety records, very low numbers of fatalities and rank very highly in terms of productivity. We invent a lot of technologies used worldwide because we are constructive, responsible, intelligent people.

Globally competitiveStructured through a series of committees, comprising a decision-making steering committee, a think-tank policy committee, and some more specialised sector committees environment, health and safety, emission training standards, communication, gold mining and magnesia production Euromines is set up to be the recognised representative for mining in Europe; a voice and point of reference in relation to the European institutions, and a sounding board for members regarding

Key Personnel Corina HebestreitDirector

Dr. Hebestreit is the Director of Euromines. She has 20 years of experience in the mining sector, from primary raw materials to marketing of end products. Over the years she has built an extensive network in the industry and academia.

Johannes DreilsmaDeputy Director of Euromines

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EUROMINES

policy matters and technical issues.The main goal as a consequence of these

ongoing discussions, forums, collaborations with global organisations and monitoring of international trends, is to ensure that the EU maintains and builds upon its position as a responsible and balanced source of minerals.

Complementing the effective stewardship, innovation and people that the EU mining sector can boast is also a wealth of deposit opportunities where the industry can expand its footprint, and this is what Euromines will be smoothing the pathway towards

EU mining sector

can boast a wealth of

deposit opportunities

Wealth Creation by Mineral Extraction in Europe

E U R O P E


EUROMINES

over the coming months and years. There is certainly a lot of money in Europe and

we also have a tremendous amount of intellectual capital and industrial capital in terms of making and inventing things, Rachovides concluded.

If you look at our competitive positioning, we are heavily regulated, have a large population, not a lot of land mass, but still manage to compete in an international market on a company-by-company basis successfully.

Weve dealt with the questions of the past and can now be innovative and adopt competitive solutions to problems of the future.

Association Information

A S S O C I AT I O N

T Y P E

Mining

L O C AT I O N

Brussels

F O U N D E D

1996

NO. OF MEMBERS

N/A

Eldorado Gold:Operating Successfully in Emerging JurisdictionsCEO Paul Wright discusses the companys two Turkish assets Kisladag and Efemcukuru and explains what the future holds for the gold mining companyWritten by: Robert Spence Produced by: James Pepper

6 2 O c t o b e r 2 0 1 4

ELDORADO GOLD

E ldorado Gold Corporation is a 750,000 ounce gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil. The Canadian-based company owns and operates seven mines and is developing six projects.

The Companys success to date is based on a low-cost strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities Gold pour

M I N I N G

www.e ldoradogo ld .com 6 3

ELDORADO GOLD

where it operates. Its a disciplined approach that makes for a pragmatic culture; a culture that is honest, forthright and preservers to find solutions. Its an approach that is shared across Eldorado Golds diverse global operations.

This ethos has seen Eldorado double production, increase its resources and reserves, and maintain cash operating costs in the lowest quartile of the global cost curve over the past five years. Eldorados pipeline of of high-quality,

The Canadian-based company owns and operates seven mines and is developing six projects.

Underground at Efemcukuru mine

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ELDORADO GOLD M I N I N G


long-lived projects has the potential to make the Company a 1.5 million ounce gold producer. Eldorado Gold is now working to develop its assets, particularly those in Greece, that will become a major component to its capital growth.

Assets in placeEldorado Golds success is exemplified by its two Turkish mining assets the Kisladag and Efemcukuru gold mines. Although the country hasnt traditionally been a top location for mining investment, Eldorado saw Turkeys potential.

We elected to go into jurisdictions that arent typically viewed as mainstream countries for gold mining, said Eldorado Gold CEO Paul Wright. Greece and Turkey have a long history, an ancient history, of gold mining and are very Kisladag Gold Mine

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ELDORADO GOLD E U R O P E


prospective. Thats our target.Turkey has been incredibly successful for us.

Its a very good country to operate in because you have a rule of law, strong work ethic, and a healthy degree of pragmatism. Plus, theres a rich mining tradition.

The companys most successful gold mine to date is the Kisladag project in Turkey. As the first open-pit heap leach mine in Europe, the mine produces over 300,000 ounces of gold per year, and is the largest gold producing mine in the country.

Its been a very successful, predictable, low cost operation for us. Its the cornerstone of the company, Wright added.

The mine, which began production in 2006,

Working on Kisladag Leach Pad

New mine fleet at

Kisladag

6 8 O c t o b e r 2 0 1 4

ELDORADO GOLD

was first discovered by Eldorado using traditional grass roots techniques including satellite imagery followed up by geochemical sampling, drilling and then various stages of engineering, permitting and construction.

Wright added: Were currently going through an expansion so well be looking at increasing annual production from 12.5 million tonnes to 20 million tonnes. The expansion will bring the mine life to 16 years. Eldorado is looking to add a parallel crushing circuit and expanding the ADR plant to provide for the additional capacity.

Located in Western Turkey, the Efemcukuru mine is a high grade, underground gold operation. While one of the smaller mines for Eldorado, the project is currently processing over 400,000 tonnes per year.

Its an impressive operation not only because of the ore body and the operating performance, but also because the project is only 30 kilometres away from a city of 3 million people, said Wright. We put an immense amount of effort and resources to build an operation in a manner that is as low impact as possible.

Eldorado consulted extensively with local communities on mine design and process flowsheet.

We made various investment decisions that you normally wouldnt see with a mine this size. It was designed to reduce visual and environmental impacts, including moving crushers underground. Its nicely tucked away in the hillsides.

Trucking ore from the

Kisladag open pit

Were currently going through an expansion so well be looking at increasing annual production from 12.5 million tonnes to 20 million tonnes Paul Wright, CEO

M I N I N G


ELDORADO GOLD

Kisladag gold bars

Developing future assetsAlong with its Turkish mines, Eldorado Gold is developing additional long-lived assets.

According to Wright, the company has projects in place that will provide major growth capital for years to come.

Weve been very deliberate in building a company through exploration and careful

Efemcukuru mine site at night

EFTA gives solutions to our customers for performance, reliability and direct service for perpetual production and efficiency with professionals trained staff, environmentally friendly distribution modern tools and automation system which provides reliability to mines, quarries, large construction sites and the shipping of petroleum products to satisfied the requirements for various investments.

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ELDORADO GOLD E U R O P E


acquisition. Were building a portfolio of extremely high quality, long-lived assets.

The company is currently focused on the development of two projects in Greece: Olympias and Skouries.

The Olympias mine was a pre-existing polymetallic mine producing silver, lead, zinc and gold, said Wright. Were currently developing it in three phases.

The first phase is a rehabilitation project, where Eldorado is cleaning up 2.4 million tonnes of pre-existing surface tailings.

Were half way through the cleanup where we are treating the tailings by running them through a refurbished processing plant, added Wright.

The second phase will include the reactivation of the mine.

Were in the process of rehabilitating and redeveloping the underground mine and well be looking at processing ore through the existing, refurbished mill using a flotation process to produce three concentrates: lead-silver, zinc and gold-bearing pyrite-arsenopyrite said Wright. Were looking at an initial run rate of approximately 400,000 tonnes per year from the underground mine.

The third and final stage will be doubling the throughput of the underground mine, including a new plant facility, which will be roughly eight kilometres from the mine.

Were in the process of driving an eight km tunnel to connect the new plant location with the

Main access portal at

Olympias

The Olympias mine was a pre-existing polymetallic mine producing silver, lead, zinc and gold Paul Wright, CEO

Olympias site

ELDORADO GOLD

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bottom of the underground mine, said Wright. That tunnel is currently 1.6 kilometres complete.

Although this is a number of years out, youll see us removing all of the infrastructure around the Olympias mine site, reclaiming almost all areas, including dismantling the current processing plant.

Another exciting project for Eldorado Gold is its Skouries asset in northern Greece. The high-grade gold-copper porphyry deposit will operate in two phases with the initial phase consisting of a small, open pit mine. The production of the mine, which is expected to commence in late 2016, will be roughly 8 million tonnes per year.

Olympias tunnel

development

E U R O P E


ELDORADO GOLD

Skouries main adit

The project will be followed by 20 plus years at 4 million tonnes per year with the underground aspect said Wright. Were in full construction now,

The mine will also include a simple metallurgical process that will produce a clean copper-gold concentrate via flotation as well as dor form a gravity circuit.

Long-term PartnershipsEldorado has built a strong track record as a responsible producer that delivers on its commitments. Operating with integrity is one of Eldorados top priorities and it implements

Skouries mineralisation

7 4 O c t o b e r 2 0 1 4

ELDORADO GOLD

world-class technical, environmental and safety practices at all its assets. The Company recognises that its success is contingent on building and maintaining long-lasting relationships with its stakeholders.

Around the world communities continue to be resistant to mining projects and developments. Based on our experiences, weve learnt to be open and transparent and engaged in the society from the moment youve stepped foot in their community. From the very beginning, companies need to develop rapport and trust that responsible mining can be beneficial to society.

You have to take a holistic view, recognise your impacts and develop ways to manage and

Coarse Ore

Noise sampling at Kisladag

E U R O P E


ELDORADO GOLD

mitigate these from project inception through to reclamation, closure and life after, said Wright. Theres no point in hiding from that reality. Most people expect you to be open and have dialogue.

For Eldorado, integrity means being honest, straightforward and accountable. This is achieved through transparent practices such as conducting local mine tours or having community groups test the operations themselves for environmental compliance.

Wright concluded: We spent a lot of time in teahouses in Turkey answering all types of questions about our operations. Without a doubt, it was this engagement that was fundamental to our success in the country.

Company Information

I N D U S T RY

Gold mining

H E A D Q U A RT E R S

Vancouver, Canada

F O U N D E D

1992

E M P L O Y E E S

Over 7,000

R E V E N U E

US$ 1,124 million

P R O D U C T S /

S E R V I C E S

Gold, Silver, Lead, Zinc,

Iron Ore

Planting trees at Kislada

G R A N D E C T E O P E R A T I O N S

7 7

Grande Cte Operations Brings Economic Boost to

Senegal with Globally Significant Mining Project

Written by: Matthew Staff Produced by: Anthony Munatswa

7 8 O c t o b e r 2 0 1 4

GRANDE CTE OPERATIONS

Grande Cte Operations has begun production in one of the worlds largest dredging operations as it aims to achieve economic prosperity, not only throughout its 15 year-plus lifecycle of the mine, but also far beyond that to Senegal and the local population.

Stretched four kilometres wide and 100 kilometres long, the Grande Cte site has been a long time in the planning under the guidance of owners, TiZir Limited, and the Senegalese Government who owns the remaining 10 percent; both of which have played an integral role in supporting all stages of the operations development.

The origins of what is now a globally significant mine, goes back to 2006 when Mineral Deposits Limited gained the tenure, followed quickly by a similar successful tender for a gold project, also in Senegal.

While the gold mine took off immediately, Grande Cte was slowly developed in the background in regards to logistical planning, locating resourcing and carrying out feasibility studies; all of which culminated

Stretched four kilometres wide and 100 kilometres long, the Grande Cte site has been a long time in the planning

Mining in the deposit

has commenced

The TiZir Limited and Senegalese Government-owned company has spent much of the past decade planning for one of the worlds biggest mineral sands mining efforts, and is now ready to bring the fruits of its success to the local region

M I N I N G

www.minera ldepos i ts .com.au/grande-cote-minera l -sands 7 9


in the key ownership agreement which has funded the project to where it is today.

Chief Executive Officer, Simon Finnis explained: Mineral Deposits Ltd (MDL) signed an agreement with ERAMET, a large industrial company with an ilmenite smelter in Norway, as a joint venture partner.

MDL then merged the Grande Cte project into this joint venture, forming the company, TiZir Limited which now owns the smelter in Norway and 90 percent of the project here in Senegal.

Now that the construction effort is over we can look towards producing what some people have reported as six percent of the worlds mineral sands products from this Grande Cte mine.

CEOGrand Cote Operations

Simon Finnis

Dredge Yeene floating on the start-up pond

SUPPLIER PROFILE

MINERAL TECHNOLOGIES

Recognised as a leader in processing solutions worldwide, Mineral Technologies works collaboratively with customers to extract value from fine minerals.

Drawing on our 70 years experience and end-to-end capabilities from metallurgical testwork through plant design, equipment supply and commissioning, we provide customers with confidence in achieving successful project outcomes. Our involvement often spans multiple years across all stages of the project life cycle including optimization services that ensure ongoing operational success.

We regularly assist customers with the upgrading and expansion of existing mineral processing operations, and in establishing new installations such as the Grand Cote project in Senegal.

With a focus on continual improvement we proactively research and develop new equipment designs, manufacturing materials and technologies to improve throughput, grade and recovery, equipment durability, overall safety and environmental outcomes that deliver cost-effective solutions.

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A F R I C AGRANDE CTE OPERATIONS


Grande Cte runs parallel with the ocean for the entire 100km length of the site, making it one of the worlds largest mineral sands deposits

Construction of the

wet concentrator

takes place on site

Ramping up productionLocated 50 kilometres north of Dakar, Grande Cte runs parallel with the ocean for the entire 100 km length of the mining concession, making it a globally significant mineral sands deposit.

The mine itself was constructed over a two year period, at a cost of $650 million, finishing in March 2014 and will mine relatively low grade 1.7 percent heavy mineral sands.

Now in the ramping-up, commissioning phase of the project, Finnis is eager to start seeing the fruits of the organisations labour.

The project itself is fully integrated and starts off with us mining a large sand dune with our dredge. he said. We then process that sand through a mineral concentrator - a floating wet

GRANDE CTE OPERATIONS M I N I N G


concentrator which separates the sand from the heavy minerals using gravity techniques, creating a heavy mineral concentrate.

This concentrate is pumped to a storage area, and we place the clean sand, using pumps, pipelines and stackers, behind us.

What you end up with is a big pond where we take from the front and put it in the back, so the whole pond continues to move along the mine path following the ore body.

The mining operation will, at full production, mine and process at a staggering production rate of 55 million tonnes per annum. Over a projected lifecycle of at least 15 years, this equates to more than a billion tonnes of resources, with nearly 800 million in reserve.

The heavy mineral concentrate is then trucked

Overlooking the initial

dredged pond

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GRANDE CTE OPERATIONS A F R I C A


to the operations mineral separation plant where it is put through further stages of processing, all of which culminates in approximate annualised production of 575,000 tonnes of ilmenite (two grades), 80,000t of Zircon (two grades) and smaller amounts of Rutile and Leucoxene.

Reaching new scalesWhile inevitable that each of these products will ebb and flow in regards to market demand over the course of the mines lifecycle, the flexibility of Grande Cte means that the range of products available from the operations will allow a rise in certain customer interest in one mineral to offset any shortcomings from another.

This is also testament to the sheer scale of

The project is of such a scale where using equipment that had been previously used elsewhere wasnt an option. Everything we built was brand new Simon Finnis, Chief Executive Officer, Grande Cte Operations

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8 8 O c t o b e r 2 0 1 4


Inside the 36MW power

station

The rail development has led to a key risk being eliminated in getting our products to port Simon Finnis

the project, as Finnis explained. The project is of such a scale that using equipment that had been previously used elsewhere wasnt an option. Everything we built was brand new and purpose designed.

Its a brand new industry in Senegal but not in Africa necessarily. The processes were using are common and the same goes for the equipment. However, the scale is not common.

From a mining perspective, its twice as large as any single dredging operation in the world so its a very significant project.

Ensuring that all construction and mining requirements were available onsite has been a pivotal component of the mines potential success, and has recently lent itself to dealing with early challenges and teething problems.

Minor redesigns of the project and the implementation of new equipment is something that Grande Cte has been able to respond to quickly and effectively to ensure that optimum productivity is returned to within as short a time as possible.

Finnis continued: Its very important to us that we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite, to be as efficient as possible.

Weve built a large facility at the port to store our finished products and load the vessels, as well as building a power station onsite to provide our electrical needs. We also have a camp, power lines and our own water system to ensure

A F R I C A



we have everything we need, built ourselves.

Supply chain managementContinuing in this vein, Grande Cte has also taken the same internal approach to its supply chain, and especially its distribution channels via rail.

From this point of view, we have also installed a brand new railway from the mine to Mecke to connect in with the national rail network, and have refurbished the line from there to Dakar Port, which we are also managing as we transport minerals to the port, Finnis said. Its been quite difficult because were introducing

This map shows the existing rail currently being refurbished and the new 22km

rail spur link to the mineral separation plan

New track from the

MSP to Mckhe nears

completion

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C O N T A C T U S



brand new trains and brand new roads and a different culture from the point of view of maintaining that rolling stock in Sengeal.

As a consequence, $50 million has been invested into the rail builds and refurbishments with the operation having received a concession from the Government to manage it internally.

Finnis continued: The rail development has led to a key risk being eliminated in getting our products to port. The roads here may be a lot better than in other African countries but it is still quite difficult from a traffic and efficiency standpoint. 700,000 tonnes per year heading to port is not feasible via trucks.

For such a large scale operation, supply chain considerations have played an integral

GCOs locomotives and

rolling stock are part

of its fully integrated

logistics solution from

mine to ship

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C O N T A C T U S

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role from the outset, with Grande Cte requiring the correct skills and equipment throughout the construction phase.

In regards to the large amounts of steel, pipework, cables and dredges being purchased, availability simply isnt there in Senegal, so a lot of the essential components were imported. However, the operations dedicated local focus was accounted for in terms of labour via nearby contracting companies.

From a purchasing perspective now, we try and purchase locally as much as possible, keeping availability and price in mind, Finnis added.

Employ and trainThe theme of local commitment and corporate social responsibility (CSR) is one that resonates

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The talent provider of your choice.

www.c2kstaffing.com

The following services are provided by our experienced and committed team:

Head Hunting

Classic Recruitment

HR Management/Payroll

Enterprise Networking

Training and seminars

C2K Staffing SARL is a Senegalese company providing services in recruitment, staffing and human resources management.

Skill sets in areas like trades, instrumentation and high tech plant aspects we dont see a whole lot of, so we just have to make sure we tailor our training for areas like that Simon Finnis

SUPPLIER PROFILE

C2K Staffing LTD is a Senegalese company that provides services in recruitment, staffing and human resources management. We are a talent provider to national and multinational companies operating in the West African region. C2K Staffing LTD offers and implements flexible and fast solutions to the requirements of its customers in various sectors: mining, energy, construction, manufacturing

The reputation of our company is well established it is based on a single word quality; by making available to our partners the best profiles in the market. Our expertise comes to us from our permanent contact with the labor market. www.c2kstaffing.com

C2K STAFFING

www.hortacoslada.com | [email protected] | Telephone : (+34) 91 886 59 70, | Fax : (+34) 91 886 59 75

HC is an international structural steel fabricator and erector located in Spain, specializing in industrial facilities and equipment, public buildings, bridges, footbridges, sports stadiums and heavy plate work.

For the Grand Cote Mineral Sands project we have fabricated the structural steel for the wet con centrator plant, including the floating pontoons, platework and major structural steel buildings.



throughout everything that Grande Cte does, and becomes especially prevalent in regards to employment and people management over the entire lifecycle of the mine.

Similarly to the supply chain situation, the skill sets arent available in a lot of key operational areas, but this certainly does not mean that Grande Cte has cast aside the premise of local workers, and is instead devoting much of its efforts to developing and promoting the best that the surrounding region has to offer.

It is true that in some areas the skill sets just arent there; there arent the people who can operate certain items of plants, so our

Operators undertaking exploration drilling

Highly trained experts

ANUBIS PTY LTD is a South African based engineering company servicing the mining industry in Africa.

W: www.anubiseds.com

E: [email protected]

T: +27(0)329470709

We provide professional SMEI turnkey solutions from design, construct to commissioning. This includes:

Turnkey Plant and Equipment Overhead Lines Power Generation Motor Pump Control (Drives, Soft

Starters, DOL) IEC MCC and Switch gear PLC and Advanced Control Systems Corrosion Protection Protective Lining for Bins and

Chutes Fire Protection Procurement Services

CardnoKnows AfricaCardno BEC is proud to have been involved in Grande Cote Operations project since 2011, providing electrical and control systems engineering.

We have been operating in Africa for many years, and in addition to the Grande Cote project, we have undertaken a number of significant projects in countries including Ghana, Cote DIvoire, Burkina Faso, South Africa, Zambia and Mauritania. Collectively these projects demonstrate the depth of experience and commitment we have to Africa.

For more information contact:Phone +61 8 9472 4224 Email [email protected]

www.cardno.com

We sell fruits and vegetables, cement, iron, concrete, wood, electrical equipment, electronic services and industrial equipment all home delivery.

Tel: 77 540 28 11 / 76 688 34 58



philosophy is to employ and train, Finnis said. We have a highly skilled set of expats here doing the training for us and there are very well educated people here who will continue to grow in the organisation.

Skill sets in areas like some trades, instrumentation and high tech plant aspects we dont see exist, so we have to make sure we tailor our training and expatriate support for areas like that.

We are looking long term and building for the future so that in a couple of years the local guys will have received the high levels of guidance and mentoring required to take over from the expats and to run things themselves.

Local focusCSR and sustainability doesnt just stop at employment opportunities either, with a tailored sustainability department set up to cover areas of environmental considerations, health and safety procedures, community initiatives and corporate aid.

Beginning with the Grande Cte workers, in a perfect world we employ people locally rather than from Dakar so they can go home every night to their families, get plenty of rest and come to work refreshed and happy, Finnis said. We have therefore started a housing scheme so our workers can afford to buy and own their own home over a number of years.

We have set this up with BHS, a Senegalese

Top view of the

surge bin on the Wet

Concentrator Plant

We are looking long term and building for the future so that, in a couple of years, the local guys will have received the high levels of guidance and mentoring required to take over from the expats and to run everything themselves Simon Finnis


+221 33 869 06 10www.onomohotel.com

Customer Satisfaction Product range Availability Flexibility & Reactivity SHE Compliant Respect of Procedures Respect of local Rules & Specicities Respect of international Standards

CONTACT US: +221 33 821 18 92 or thru our Web site www.sodial.sn

SODIAL is the First West African ISO 9001 certied company in Food supply, Storage, Packing and Logistics.

SODIAL is an international company with distribution network in all West Africa

SODIAL is specialized in distribution to remote site facilities, o-shore platforms, vessels, on site convenience stores, hotels, supermarkets, restaurants, snacks, general & micro distribution. Using a unique central purchasing department with wild storage facility dedicated for a large number of products SODIAL is your

partner to get what you need wherever you are.

To secure strong partnership, SODIAL is committed to a policy based on:

institution that specifically targets the support of housing projects, where they will purchase land and we will assist in getting our people approved for mortgages which is usually a difficult process. We will look out for them and do what we can to help them get their own home in the local area, close to where they work.

A strong health and safety adherence promotes this ethos further, with hazard identification a pivotal factor not only for the organisations direct employees, but also the local population in general.

Finnis continued: It is not uncommon in Senegal to see things like people riding around

Zircon and rutile

storage at the Mineral

Separation Plant

A F R I C A



on the roofs of buses, and other hazardous behaviours but of course we cant accept that because of the safety risk to our people.

We therefore spend a lot of time training and planning to make sure that everything is not just as environmentally efficient as possible, but is also as safe as possible.

Market acceptanceFollowing the eight years of hard work, the next key phase to dictate the overall success of Grande Cte will be the markets acceptance of the organisations products, something which Finnis anticipates being a relatively smooth transition, based on feedback already received.

Project location

in Senegal

Recent aerial view

of the Grande Cte

mining area

1 0 0 O c t o b e r 2 0 1 4

GRAND COTE OPERATIONS

Dredge Launch

Dredge Launch

Every time you introduce a new product, customers need to get used to that and weve sent some trial parcels to various places like China and North America over the past year, the CEO explained. We have seen acceptance of the products on a trial basis and we hope to do long term business with them, on ilmenite especially. From a zircon perspective we already have some long term partnerships in place.

There will inevitably be a period of time now while prospective customers assess the products coming out of Grande Cte but there is likely to always be a product among the range which is performing well to ensure the

A F R I C A

www.minera ldepos i ts .com.au/grande-cote-minera l -sands 1 0 1

GRAND COTE OPERATIONS

ongoing success of the overall operation.The products were going to make are high

quality and they will gain market acceptance, Finnis said. There will always be periods in the industry when the market is soft and then times where its good. Its just a case of getting from one period to the other as smoothly as possible.

For instance, the market is robust on the zircon side of the business right now but soft in the ilmenite market.

World class businessWhile many companies have short and medium term goals, the lifecycle of this mine means that Grande Cte can look even further ahead at the bigger picture, and Finnis believes that much of the organisations overall targets will be visible within just five years, especially in regards to its influence on Senegal.

In five years time we will be a well-known and well understood business in Senegal, the CEO concluded. Well be an integral part of the community, providing a continuous revenue stream and providing jobs to local people.

In just a few years, the number of expats will be reduced, the expertise of the locals will be increased and we will be providing a platform for the people of Senegal to go on to bigger and better things in the future as well.

Weve come in and built a world class business and it deserves to be managed to the highest levels possible.

Company Information

I N D U S T RY

Mining

H E A D Q U A RT E R S

Senegal, West Africa

F O U N D E D

2006

E M P L O Y E E S

950

R E V E N U E

N/A

P R O D U C T S /

S E R V I C E S

Mineral Sand Mining

New Era for Discovery MetalsWritten by: Laura Close Produced by: Anthony Munatswa

1 0 4 O c t o b e r 2 0 1 4

DISCOVERY METALS

Discovery Metals Limited is a copper and silver concentrate producer from its 100 percent owned major asset, the Boseto Copper Project in northwest Botswana. The company was founded in 2003, and work at Boseto began in 2005.

The past five years have seen Discovery Metals evolve from an explorer to a copper-silver producer. Its last financial year was very successfulthe company produced 18,000 tonnes of copper, and are looking to produce between 24 and

Discovery Metals financial stabilisation has opened the door to underground mining for the company

Boseto Concentrator

Brad Sampson with President

Seretse Khama Ian Khama

Board members at the

Official Opening

A F R I C A

www.d iscoverymeta ls .com 1 0 5

D ISCOVERY METALS

25 thousand in the next few years.Although Discovery Metals hasnt always

been as stable as it has been for the past year or so, moving forward the increased production in Boseto, exploration and production in underground mines and the companys continuing expectation for a safe and effective company culture will guide Discovery Metals into a new era of mining in Africa.

BosetoBoseto is a long-life mine with an initial evaluated

Jeremy ReadExecutive ChairmanJeremy Read has 23 years domestic and international minerals exploration experience and was previously the Manager of BHPs Australian Exploration Team. He has extensive exploration experience for nickel and copper sulphides and played a critical role in the discovery of Kabanga North Nickel Deposit in Tanzania. Jeremy was the founding managing director of Discovery Metals from its incorporation in May 2003, until his appointment as a non-executive director on 1 February 2008. Mr Read secured the Boseto Copper Project for the Company and was responsible for all Discovery Metals fund raising activities and for listing Discovery Metals on the Australian Securities Exchange, Botswana Stock Exchange and the Alternative Investment Market in London.

Key Personnel

Traditional dancers perform for

community and employee guests

Discovery drilling is one of the leading diamond drilling companies in South Africa, drilling any where south of the

Sub Sahara. Drilling from BQ to T6-146 size core. We also do DTH and RC drilling and we manufacture our own drill rigs.

We are big enough to matter and small enough to care.

www.discoverydrilling.co.za

DRILLING DYNAMICS DONE DEEPER

Head Office: T: +27 14 573 3444 F: +27 14 573 3555 E: [email protected] Botswana: T: +26 7 261 5870 F: +26 7 261 5775 E: [email protected]

SUPPLIER PROFILE

DISCOVERY DRILLING CONTRACTORS

Established: 1999

Industry: We are proud to present Discovery Drilling Contractors as the complete solution for exploration drilling needs. Our service is solid, based on experience and quality of both management and field personnel, as well as rugged, safe and dependable drilling equipment.

Services: Discovery drilling is one of the leading diamond drilling companies in South Africa, drilling any where south of the Sub Sahara. Drilling from BQ to T6-146 size core. We also do DTH and RC drilling and we manufacture our own drill rigs. We are big enough to matter and small enough to care.

Ongoing Projects: Keeping to our standards and maintaining momentum in development and delivery of excellent service is the key for a promising future. Although Discovery Drilling already is a sizeable drilling venture, it will not be allowed to slide into an oversized, clumsy entity. Our short to medium term planning is to expand drilling operations into sub-Saharan Africa.I, as the director of Discovery Drilling Contractors want to assure you of our professional service and loyalty towards your company.

Website: www.discoverydrilling.co.za

A F R I C A

www.d iscoverymeta ls .com 1 0 9

D ISCOVERY METALS

mine life of 15 years. Because the mine has been so lucrative, Discovery Metals is currently developing a plan to increase the life of the mine to 25 years. Boseto is part of the Kalahari Copperbelt Prospecting Licence, which covers over 10,500 square kilometres from Zambia in the northeast of Botswana down to the southwest of the country. The Kalahari Copperbelt is underdeveloped and has a lot of potential, so the company will be investing more time and effort into exploration and eventual

mining global – october 2014

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