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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
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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
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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
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8 S e p t e m b e r 2 0 1 4
OPERATIONS
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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
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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
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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
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1 2 S e p t e m b e r 2 0 1 4
OPERATIONS
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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 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
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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
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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
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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 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.
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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.
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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
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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
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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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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
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Mergers & AcquisitionsTOP10
TOP 10
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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D I A M O N D M I N E S I N T H E W O R L D
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.
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4 6 O c t o b e r 2 0 1 4
The benchmark in agricultural
machinery conveyance.
AGRITRANSServing the Southern African
Agricultural Industry
T: +27 58 813 1303 F: +27 86 689 7623
www.agritrans.co.za
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4 7
The benchmark in agricultural
machinery conveyance.
AGRITRANSServing the Southern African
Agricultural Industry
T: +27 58 813 1303 F: +27 86 689 7623
www.agritrans.co.za
D I A M O N D M I N E S I N T H E W O R L D
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.
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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.
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4 9
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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
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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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5 4 O c t o b e r 2 0 1 4
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
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M I N I N G
www.euromines .org 5 5
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
www.euromines .org 5 7
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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5 8 O c t o b e r 2 0 1 4
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
www.euromines .org 5 9
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
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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
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6 1
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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
www.e ldoradogo ld .com 6 5
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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From the nimble L-950 to the L-2350, the worlds largest wheel
loader,
we provide more choices, payloads, and versatility to maximize
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JoyGlobal.comJoy Global, P&H and Joy are trademarks of Joy
Global Inc. or one of its affiliates. 2014 Joy Global Inc. or one
of its affiliates. All rights reserved.
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JOY GLOBAL 10-14 Mining Global Loader.indd 1 9/12/14 1:29 PM
Joy Global Inc. is a worldwide leader in high-productivity
mining solutions. Through its market-leading Surface and
Underground Business Segments, Joy Global manufactures and markets
original equipment and aftermarket parts and services for the
mining industries. Joy Globals products and related services are
used extensively for the mining of coal, copper, iron ore, oil
sands, gold and other mineral resources.
Website: www.joyglobal.com
SUPPLIER PROFILEJOY GLOBAL
-
Industry leader in supplying high quality wear resistant parts
and customer service to the global mining industry.
-
ELDORADO GOLD E U R O P E
www.e ldoradogo ld .com 6 7
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
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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
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M I N I N G
www.e ldoradogo ld .com 6 9
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
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EFTA is one of the leading suppliers for oil and lubricants
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ELDORADO GOLD E U R O P E
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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
www.e ldoradogo ld .com 7 3
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
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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
www.e ldoradogo ld .com 7 5
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
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G R A N D E C T E O P E R A T I O N S
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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
GRANDE CTE OPERATIONS
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.
Working across the mineral sands, iron ore, coal and industrial
minerals sectors, our teams are based in major mining regions
worldwide and are readily available to help extract value from your
fine mineral operations.
Realise the Value: Connect with Mineral Technologies today.
Website: www.mineraltechnologies.com
-
A F R I C AGRANDE CTE OPERATIONS
www.minera ldepos i ts .com.au/grande-cote-minera l -sands 8
3
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
www.minera ldepos i ts .com.au/grande-cote-minera l -sands 8
5
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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In 2013, Wrtsils net sales totalled EUR 4.7 billion with
approximately 18,700 employees. The company has operations in more
than 200 locations in nearly 70 countries around the world. Wrtsil
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SUPPLIER PROFILEWRTSIL WEST AFRICA
-
Wherever you are, youre never that far from our award winning
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GRANDE CTE OPERATIONS A F R I C A
www.minera ldepos i ts .com.au/grande-cote-minera l -sands 8
7
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
SUPPLIER PROFILE
Our award winning global mining practice is unique in its
ability to offer a fully integrated service with dedicated
practices in all major mining equity markets and jurisdictions
including London, Canada, US, Africa, Australia, Latin America and
Asia. Our work spans the wide variety of natural resources,
including mineral sands, rare earths, iron ore, coal, nickel,
copper, bauxite, gold, diamonds, potash, oil & gas and uranium.
We advise clients involved at every stage of the development cycle
from fundraising to financing through to shipping and trading. In
addition to our market leading mining project finance expertise, we
are also recognised across disciplines including mergers and
acquisitions, corporate and securities law, construction,
alternative finance, environmental law, aboriginal law, litigation,
international arbitration, operational health and safety and IP. We
continue to advise on some of the worlds largest and most
innovative mining projects and are regularly involved in reviewing
local mining codes in the key mining jurisdictions across the
world.Website: www.nortonrosefulbright.com
NORTON ROSE FULBRIGHT
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8 8 O c t o b e r 2 0 1 4
GRANDE CTE OPERATIONS
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
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A F R I C A
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9
GRANDE CTE OPERATIONS
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
-
GRA ND MA R IN E OIL AND GAS (NIG) LTD
Vessel Owners (Oil Tankers)
Provision of Barges and Tugboats
Provision of Jetty faci l i t ies
Marine security services
Shoreline protection services
Bunker and Fresh water supplies
Ship chandell ing and Manning services
Provision of House boats
Marine consultancy services
S E R V I C E S
Grand Marine Oil and Gas (NIG)
Limited is a company in the
marketing of petroleum products
and provision of marine support
services in the downstream sector
of the Oil and gas industry.
[email protected]+234 (0) 808 0770 004+234 () 803
317 3144
17c, Marine Road, Apapa, Lagos, Nigeria
C O N T A C T U S
-
GRANDE CTE OPERATIONS A F R I C A
www.minera ldepos i ts .com.au/grande-cote-minera l -sands 9
1
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
GRAND MAR INE OIL AND GAS (NIG) LTD
Vessel Owners (Oil Tankers)
Provision of Barges and Tugboats
Provision of Jetty faci l i t ies
Marine security services
Shoreline protection services
Bunker and Fresh water supplies
Ship chandell ing and Manning services
Provision of House boats
Marine consultancy services
S E R V I C E S
Grand Marine Oil and Gas (NIG)
Limited is a company in the
marketing of petroleum products
and provision of marine support
services in the downstream sector
of the Oil and gas industry.
[email protected]+234 (0) 808 0770 004+234 () 803
317 3144
17c, Marine Road, Apapa, Lagos, Nigeria
C O N T A C T U S
-
C2K is a talent provider to national and multinational companies
operating in the West African region. It offers and implements
flexible and fast solutions to the requirements of its customers in
various sectors: mining, energy, construction, manufacturing.
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.
-
GRANDE CTE OPERATIONS A F R I C A
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3
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
C2K is a talent provider to national and multinational companies
operating in the West African region. It offers and implements
flexible and fast solutions to the requirements of its customers in
various sectors: mining, energy, construction, manufacturing.
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.
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GRANDE CTE OPERATIONS A F R I C A
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5
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
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GRANDE CTE OPERATIONS A F R I C A
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7
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
-
GRANDE CTE OPERATIONS
+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
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A F R I C A
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9
GRANDE CTE OPERATIONS
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
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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
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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 3
-
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
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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]
-
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
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A F R I C A
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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