THE MINING EXECUTIVE MAGAZINE JANUARY/FEBRUARY 2020 EDITION

THE

MINING EXECUTIVE

MAGAZINE

Inside what will be the

LARGEST COPPER

MINE IN AFRICA-

IVANHOE MINES KUKULA

PROJECT DRC.

PEABODY

ENERGY:

ADVANCING THE

CAUSE FOR CLEANER

COAL TECHNOLOGIES.

Komatsu

P&H4800XPC

A BEAST IN THE

MINING LOAD AND

HAUL FRATERNITY

UNLEASHED.

Delivering

solid financial

Performance:

The Agnico Eagle Way

HARMONY

GOLD: SLOWLY

EDGING OUT OF

THE WOODS.

THOR KALLESTAD

Datacloud

Unlocking mining value through advanced orebody knowledge.

ISSN: 2652-4007

F E B R U A R Y

E D I T I O N

2020

THE MINING EXECUTIVE

OF

THE YEAR AWARDS

2020

“Celebrating Unparalled Executive Excellence”

Get in touch as we recognise our leaders shouldering immense responsibilities,

info@theminingexecutive.com

www.theminingexecutive.com

The

MINING EXECUTIVE

Magazine FEBRUARY 2020

WELCOME TO THE

February 2020 Edition of

THE

MINING EXECUTIVE

MAGAZINE

In this month's Edition, we review an influential CEO for a

major mining technology company and a number of other

distinguished mining CEO's, regional Mining Operations,

Mining Investment, Technology, Mining Systems and top

suppliers in the mining industry.

Our cover article takes a deep dive into the heart of Data

Cloud , a Global mining technology firm.

We also bring you a global perspective of the interactions of

men and minerals in all global regions from Africa and the

Middle East, Europe, North America, South America, Asia

and Oceania.

We do hope you will enjoy the issue, let us have your

feedback @MiningExecutive on

LinkedIn | Twitter | Facebook | Instagram

or email: info@themininexecutive.com

MINING GLOBAL DECISIONS IN YOUR PALMS


Publishing Team

OCEANIA

Australia

Editor in Chief

Samson Mazara

Content Director

Rufaro Chikumbirike

Editorial Researcher

Ronald Manjengwa

MIDDLE EAST

United Arab Emirates

NORTH AMERICA

USA

ASIA/ PACIFIC

South Korea

Zimbabwe

AFRICA

Malawi- East Africa

Head of Editorial Research

Mathius Chipangura


Anold Takawira


Sheila Mavengere (PhD)

Production Designer

Tendai Chitekwe


Gregory Dicha

Canada


Sherperd Jisinawo

CONTRIBUTORS

NORTH AMERICA

USA

Lindsey R Miller

OCEANIA

Australia

Pauline Battersby

Nicolette Baker

AFRICA

The Mining Executive Magazine does not accept responsibility for omission or errors. The points of view expressed in articles

and /or advertisements may not necessarily represent the views of the company unless appropriately quoted. Any resemblance to

real persons, living or dead is purely coincidental. Whilst every effort is made to ensure accuracy of all the information

contained in this magazine, no legal responsibility will be accepted by the publishers for the losses arising from the use of this

information published. All rights reserved. No parts of this publication may be reproduced, stored in a retrievable system, or

transmitted in any form by any means without prior written consent by the publisher.

The Mining Executive Magazine is

published by The Mining Executive Magazine Limited

ISSN no: 2652-4007

Copyright © The Mining Executive Magazine 2020

J A N U A R Y

E D I T I O N

The

MINING EXECUTIVE


CONTENTS

Executive Appointments

Australia

Asia Pacific

Africa/ Middle East

Europe

North America

South America

Mining Executive Review

Cover Page: THOR KALLESTAD - Data Cloud


Chester Fred Bond: How Bond still influences the

Comminution industry a Century later in mine to mill optimization.

Mike Henry: All we need to know about the BHP

Chief Executive Officer.

Mining Business Review

Business Review

Peter Steenkamp: What it will to deliver strong stakeholder value:

Harmony Gold Ltd slowly edging out of the woods.

Mergers and Acquisitions

Peter Bradford: The IGO-Panoramic takeover bid: Key Lessons

Nico Muller: The motive behind Impala Platinum's US$750

Million acquisition of North American Palladium Limited.

Mining Investments

Evgenii Nikitin: Rusal to install over 20 state-of-the-art

Dry Gas Cleaning Systems (DCGS) at its smelters by 2025.

Global Mining Review

Africa & EMEA

Mark Farren: Inside Ivanhoe Mine's perceived Worlds' second

largest Copper mine in DRC - The Kakula Project

2

8

25

38

MINING EXECUTIVE

Inside what will be the

LARGEST COPPER

MINE IN AFRICA-

IVANHOE MINES KUKULA

PROJECT DRC.

PEABODY

ENERGY:

ADVANCING THE

CAUSE FOR CLEANER

COAL TECHNOLOGIES.

THE

MAGAZINE

Komatsu

P&H4800XPC

A BEAST IN THE

MINING LOAD AND

HAUL FRATERNITY

UNLEASHED.

Delivering

solid financial

Performance:

The Agnico Eagle Way

HARMONY

GOLD: SLOWLY

EDGING OUT OF

THE WOODS.


16

29

41

2020



The

MINING EXECUTIVE


Europe

Ivanov Sergey Sergeevich

Russian diamond mining giant, ALROSA enters

top 10 of Raex-Europe's ESG independent rankings.

Asia Pacific

John Lamb

Unleashed, Myanmar Metals set to be the 3rd

biggest Lead (Pb) Project in the world.

North America

Delivering Solid Financial Performance:

THE AGNICO EAGLE WAY

46

South America

Operation Focus: Anglo American-Quellaveco Mine

Mining Assets and Infrastructure

Energy

Stuart Mathews: Gold field's Agnew Mine powers up its 23 megawatt

aud$112million hybrid renewable project.

62

Original Equipment Manufacturers (OEM)

Caterpillar: A peak into how certified rebuilds saves customers money

and unlock value in operational continuity.

BMT's new software v3.6, aiding the interface between

precision and production due to misclassification.

Communication

Jeremy Hanrahan: MST Global announces major improvement to

underground communications with all-in-one network solution.

Mining Future

Mining Technology

Mitch Hunter-Scullion: Asteroid mining technology, are we anywhere close?

A review of Asteroid Mining Corporation. CSIRO 3D Laser frameproof

Scanner, a game changer in coal mining technology.

Mining Data

Mining Education: Australia's First qualification in Autonomous Control

and Remote operations Launched.

Corporate Social Responsibility and Sustainability

Glenn Kellow: Peabody U.S. Mines Recognized with National

Awards For Safety And Reclamation Excellence.



76

67

88

MINING GLOBAL IN YOUR PALMS

DECISIONS


1

EXECUTIVE

APPOINTMENTS

MINING GLOBAL IN YOUR PALMS

DECISIONS


2

The

MINING EXECUTIVE


AFRICA /

MIDDLE EAST

Slabbert joined Maptek in 2017 as BlastLogic

Product Manager and quickly demonstrated

strong leadership, and an intimate

understanding of customer requirements and

challenges in the region. Having built the

Blastlogic team into a successful operation,

Slabbert proved the natural successor to Nick

Venter, who leaves Maptek's South Africa

operations in very good health.

EUROPE

Johan Coetzee

Managing Director -

Rössing Uranium Limited

Mr Johan Coetzee has been appointed

as the Managing Director of

Rössing Uranium Limited

beginning in October 2019. He is currently

the Chief Operating Officer for Desert Lion

Energy Namibia. Prior to this role he was

Managing Director of QKR Navachab Mine.

His extensive mining career also includes

various leadership roles at Skorpion Zinc and

Ghana Manganese Company. He also held

leadership positions at Rössing Uranium,

amongst other as Operations Manager.

Gideon Slabbert

General Manager Africa, Maptek

Maptek has recently announced the

appointment of Gideon Slabbert to

the role of General Manager of

Maptek-Africa. Slabbert replaces Nick Venter

who will join Maptek’s North American

operations as Director of Sales and Technical

Sales Support.

Evgeny Agureev

Deputy CEO- ALROSA

From being director of the United Selling

Organization of ALROSA (USO) since

2017, Evgeny Agureev has now been

appointed Deputy CEO. Evgeny Agureev has

been a member of the ALROSA's Executive

Committee from 2017. In his new position,

Mr. Agureev will continue to develop sales,

improve their efficiency and transparency, and

strengthen ties with long-term clients. Evgeny

Agureev has more than 15 years of experience

in financial management in commercial banks.

From 2009 to 2017, he held different positions

in Sberbank – from Head of International

Reporting to Vice President, Director of

Finance Department. Prior to that, he worked

in Russian Standard Bank, MDM Bank,

Raiffeisen Bank Austria, Absolut Bank, and

Renaissance Credit Bank. He is a graduate of

Lomonosov Moscow State University, Faculty

of Economics, specializing in Accounting,

Analysis and Audit, holder of a Master's

degree in Financial Management. In 2016, he

completed the Executive Development

Program of London Business School and

Sberbank Corporate University.



Dmitry Kolesov

Deputy CEO- ALROSA

ALROSA has also appointed Dmitry

Kolesov as its Deputy CEO. He will

oversee the company's maintenance

activities and will lead the implementation of

the program on maintenance reengineering to

build a modern high-tech and highly efficient

repair service of ALROSA. Prior to joining

ALROSA, Dmitry Kolesov headed NLMK's

maintenance service for three years. Earlier

on, he held senior positions in the United

Aircraft Corporation, companies associated

with Severstal and the Almaty Heavy

Machinery Plant. In 1996, he graduated from

the Cherepovets State Industrial Institute with

a degree in Mechanical engineering. He also

holds a Diploma of Economist-Manager of

the St. Petersburg Technical University,

specializing in "management".

Paul Sohlberg

EVP, President of

Minerals Processing

Mr. Paul Sohlberg (M.Sc. Law), 42,

has been appointed interim EVP,

President of Minerals Processing

business unit and member of Outotec's

Executive Board as of November 11, 2019.

Paul Sohlberg joined Outotec in 2011 and has

since 2014 worked as the President of Market

Area North & Central America. The current

EVP, President of Mineral Processing

Business Unit, Kimmo Kontola, has decided

to continue his career outside Outotec.

3

The

MINING EXECUTIVE


She has a proven track record of strategic

leadership, driving profitable growth across

diverse market sectors and serving both public

and private sector clients. As the Chief

Executive Officer and Manager Director of

Cardno, Susan is now responsible for setting

the strategic direction for the Global business,

ensuring excellent project delivery and client

satisfaction, driving profitable growth, and

sustaining an inclusive culture where careers

can thrive.

Teck has also announced the

appointment of André Stark as Vice

President, Marketing, with

responsibility for Coal and Base Metals. Mr.

Stark joined Teck in 2012 as Director,

Marketing, Coal and was appointed Head,

Marketing, Coal in 2018. He holds a Higher

National Diploma in Industrial Engineering

from the Cape Peninsula University of

Technology and a Bachelor of Commerce in

Accounting and Information Systems.

Helena Hedblom

Epiroc's next President and CEO

Helena Hedblom, Epiroc's Senior

Executive Vice President Mining and

Infrastructure was appointed Epiroc's

next President and CEO, effective March 1,

2020. She will replace Per Lindberg, who has

decided to leave his position after having

successfully established Epiroc as a listed

company. She is a member of the Boards of

Directors of IPCO AB and the Swedish

Association of Mines, Mineral and Metal

Producers (Svemin). Helena Hedblom is born

1973, a Swedish citizen, and has a M.Sc. in

Material Technology from the Royal Institute

of Technology, Stockholm, Sweden.

NORTH AMERICA

Ian Anderson

Vice President, Logistics-Teck

Teck has announced the appointment of

Ian Anderson as Vice President,

Logistics.

He will be responsible for coordinating

Teck's overall logistics strategy and

implementing a cost-efficient supply

chain. Mr. Anderson joined Teck in 2003, and

since then, has held numerous positions

across Teck in HR, Logistics and operational

functions, including his most recent

appointment as General Manager, Coal

Logistics. He holds a Bachelor of Arts in

Political Science from the University of

British Columbia. As Vice President,

Marketing, with responsibility for Coal and

Base Metals, Mr. Stark will be responsible for

developing and implementing Teck's

marketing and sales strategy.

Sam Coetzer - President,

Chief Executive Officer

and Director- Harte Gold

Harte recently announced the

appointment of Sam Coetzer as its

President, Chief Executive Officer

and Director effective from November 2019.

As former CEO of Golden Star, Mr. Coetzer

successfully transitioned the company from

open pit operations to an underground-only

producer, increased its profile in the capital

markets and dramatically grew market

capitalization which in turn provided

shareholders a significant return. Mr. Coetzer

brings a proven strategic mindset that will

benefit all shareholders of Harte Gold.

SOUTH AMERICA

Susan Reisbord

CEO and Managing Director-

Cardno

Susan assumes her new role as Cardno's

Chief Executive Officer and Managing

Director. Prior to her appointment as

CEO, Susan led the transformation of Cardno's

Americas region and held the position as the

President of our Science and Environment

Division.

André Stark

Vice President, Marketing-Teck



Alan Pangbourne

President and Chief Executive

Officer - Guyana Goldfields Inc

4

The

MINING EXECUTIVE


Guyana Goldfields Inc. has announced

the appointment of Mr. Alan

Pangbourne as the Company's

President and Chief Executive Officer,

effective January 1, 2020. Mr. Pangbourne

will succeed Mr. Allen Palmiere, a director of

the Company who was appointed Interim

CEO in late July 2019. Mr. Pangbourne

brings to the role of CEO over 35 years of

diversified management and senior

operational experience with resource industry

expertise in operations, engineering and

major project development, along with a

successful history of company turnarounds

and M&A. Mr. Pangbourne was most recently

the Chief Operating Officer at SSR Mining

Inc. Prior to that, he was Vice President

Projects, South America, with Kinross Gold

Corporation, and before that Mr. Pangbourne

held a number of senior roles over 15 years at

BHP Billiton Ltd., including President and

Chief Operating Officer of Nickel Americas

which included Cerro Matoso, Colombia and

project development in Guatemala and Cuba.

Mr. Pangbourne holds a Bachelor of Applied

Science in Extractive Metallurgy and a

Graduate Diploma in Mineral Processing

from WA School of Mines, Kalgoorlie,

Australia. Mr. Pangbourne was appointed as a

director of the Company in May 2019.

Joaquin Merino-Marquez

VP South American Operations-

Prophecy Development

Corporation

Joaquin Merino-Marquez has been

appointed as Company's Vice President,

South American Operation, based in

Bolivia effective November 1, 2019. Joaquin

is a Professional Geologist with 27 years of

experience in the mining industry. Prior

industry affiliations include roles as Vice

President, Exploration for Primero Mining

Corp. and Vice President Exploration for

Apogee Minerals Ltd. Prior to Apogee, Mr.

Merino-Marquez was the exploration manager

for Placer Dome at the Porgera Mine and a

mine geologist at Hecla Mining's La Camorra

mine. He holds a MSc from Queens

University, and a BSc in Geology from

University of Seville (Spain). He is a member

of the Association of Professional

Geoscientists of Ontario.

OCEANIA

Mike Henry


Elect BHP

The Board of BHP in November

announced that Mike Henry has been

appointed Chief Executive Officer

(CEO) of BHP, following a thorough

succession process. Mr Henry will assume the

role of CEO and Executive Director effective

1 January 2020, replacing Andrew Mackenzie

who will retire as CEO on 31 December

2019. Mr Henry has 30 years' experience in

the global mining and petroleum industry,

spanning operational, commercial, safety,

technology and marketing roles. He was

appointed to his current role of President

Operations Minerals Australia in 2016, and

has been a member of the Executive

Leadership Team since 2011.

Mark Mitchell

Chief Operating Officer -

Mount Gibson

Mount Gibson Iron has announced the

appointment of Mark Mitchell as

Mount Gibson's new Chief

Operating Officer following the retiring of

Scott de Kruijff end of October 2019. Mr

Mitchell is a Chemical Engineer with an

extensive technical background and more than

20 years' experience in senior management

and operational roles at major mining

operations across Australia,



Africa and Papua New Guinea spanning

various mineral commodities including

nickel, copper, gold and lithium. Mark was

most recently Executive General Manager at

Mineral Resources' Wodgina lithium mine in

the Pilbara region of Western Australia, where

he oversaw the transition from construction to

commissioning and operations of the

Wodgina hard-rock lithium mine and

concentrator. His prior roles also include Vice

President Operations of the world-scale

Ambatovy nickel laterite operation in

Madagascar, with overall responsibility for all

aspects of the mining, processing, rail

transport and port operations, and senior

corporate and General Manager roles with

Newcrest Mining at the Telfer mine in the

Pilbara and the Hidden Valley gold operation

in Papua New Guinea. ber of the Executive

Leadership Team since 2011.

Richard Seville

Non-Executive Director-

OZ Minerals

Richard Seville, a mining geologist and

geotechnical engineer with 35 plus

years' resources industry experience,

is to join the OZ Minerals Board on 1

November 2019. Richard's experience in the

resources sector includes 25 years as either

Managing Director or Executive Director of

various ASX, TSX or AIM listed companies.

He recently retired from his position as CEO

and Managing Director of Orocobre Limited,

a lithium and boron chemicals producer with

operations in Argentina. He led Orocobre

Limited for 12 years, since pre-IPO, where he

took the Olaroz Brine Project through

exploration, feasibility, financing and into

production.

Richard is a Non-Executive Director of

Orocobre Limited and Advantage Lithium

and is Chairman of Agrimin Limited. He

holds a Bachelor of Science in Mining

Geology from Imperial College, London, and

a Master's in Engineering Science from

James Cook University. He is a Member of

the Australasian Institute of Mining and

Metallurgy. In June 2019 Richard was

appointed Chairperson of Agrimin Limited.

5

The

MINING EXECUTIVE


Eduardo Coloma

Global CEO-Maptek

Maptek has announced Eduardo

Coloma as its new Global CEO to

lead the business at an exciting time

for mining. Coloma is well known in the

industry, having worked in South America and

Australia for 20 years, with expertise in

technical and managerial roles. As a Mining

Engineer, Coloma has hands-on understanding

of the needs of the industry and is keen to see

Maptek take the development and

implementation of innovative technology to

the next level.

Peter Mansell

Chairman and Non-Executive

Director - DRA Global

DRA Global has recently appointed

Peter Mansell as Non- Executive

Director and Chairman of the DRA

Global Board of Directors. Mr. Mansell was

born in South Africa and relocated to

Australia in 1987 where he became senior

partner of Freehills law firm (1988 – 2004),

National Chairman (1995 to 2000) and

Director of Aurecon Group Pty Ltd (2013 to

2016), all of which contribute to his very

successful career and 20 years of experience

as a company director. Mr. Mansell's

international experience includes Europe,

Africa and Canada and covers a broad range

of industries and sectors including mining,

media, agribusiness and energy. Mr. Mansell

is currently Chairman of Energy Resources of

Australia, Cancer Research Fund and

Foodbank of Australia.

Mr. Mansell holds a Bachelor of Commerce,

Bachelor of Laws and a Higher Diploma in

Tax Law, all awarded by the University of the

Witwatersrand in South Africa. He is also a

fellow of the Australian Institute of Company

Directors.

Victor Rajasooriar

Panoramic Resources -

Managing Director and CEO.

Panoramic Resources has appointed

experienced mining engineer Victor

Rajasooriar as new MD and CEO. This

appointment was with effect from Monday,

November 11, 2019 following the resignation

of long-serving managing director Peter

Harold after more than 18 years in the role.

Rajasooriar is a mining engineer with more

than 20 years' operational and technical

experience in multiple disciplines spanning

underground and open-pit operations. He

holds a Bachelor of Engineering from the WA

School of Mines, a WA first-class mine

managers certificate and is a member of the

Australian Institute of Mining and Metallurgy

(AUSIMM) as well as the Australian Institute

of Company Directors.

ASIA PACIFIC

Jamie Alonso

Chief Executive Officer-

Cardno Asia Pacific Region



Cardno has announced the appointment

of Jamie Alonso to the position of

Chief Executive Officer of the

company's Asia Pacific Region effective

immediately. Cardno's Asia Pacific region has

1,500 staff across 35 offices. The Asia Pacific

teams service clients across core sectors of

Water, Land Management, Transport, Energy,

Defence, Property and Buildings, Utilities,

Government, Industrial, Mining and

Resources.

Jamie has close to 30 years' experience

providing civil engineering services across

various disciplines for the private and public

sector. He has an intimate knowledge of

Cardno's operations across Asia Pacific

having held a number of senior management

roles across an 18-year tenure including

operational management, P&L management

as well as strategic and business development

positions.

He holds a Bachelor of (Civil) Engineering

from Queensland University of Technology

and an MBA from the University of

Queensland.

Bob Seidler

Senior Executive,

APAC Regional Office Hitachi

Mr. Bob Seidler AM has been

appointed as Senior Executive,

APAC Regional Office, effective of

November 1, 2019. Mr. Seidler AM has over

forty years of experience as a lawyer and nonexecutive

Director in both listed and unlisted

companies. He has worked in a diverse range

of industries including funds management,

investment banking, hotel management as

well as serving on Australian and Japanese

government committees.

Mr. Seidler AM is a Board member of CIMIC

Group Ltd and is the Vice President of the

Australia Japan Business Cooperation

Committee. Mr. Seidler AM has also been

made a member of the Order of the Rising

Sun by the Government of Japan.

6

The

MINING EXECUTIVE




7

MINING

EXECUTIVE

REVIEW



8

The

MINING EXECUTIVE


Unlocking Mining Value

Through Advanced

Orebody Knowledge

THOR KALLESTAD


Datacloud

Mining innovation is a business strategy that every mining

operation should embrace for future sustainability. A

businesses innovation strategy will not only pay dividends in

improving current operational business performance but also unlocks

future opportunities by preparing the business for the huge risks of many

unknowns. Just like the proverbial exercise routines that one needs to

undertake for their bodies to be fit for the future, the same can be likened

to innovation strategy, if postponed, like how being unfit a person can be

at a later stage, the same is with Innovation Strategy.

Some of the weak signals in mining operations involve long waiting

times for samples to return from the labs after drilling and the use of

exploration information, which may not be very reliable in localized

polygons to determine mining parameters like those of drill and blast. To

assist companies to understand more on the rocks their mining thereby

improving both the short term and long term strategies for mining

companies, DataCloud came up with inventive tools and a strategy

architecture of focusing on both linear (short term) and nonlinear (long

term) shifts affecting a businesses strategy when it comes to deriving

data in real time as mining progresses and being able to utilize that

currently and for the future risk strategies.

Know the Rock

The Digital transformation era has seen a seismic shift in the mining

industry strategies.One model of Digital Transformation in Mining is

based on five key pillars: Visualization and Alerts, Analytics and

Dynamic Scheduling, Digital Twins, Integrated Automation, and

Cognitive Network. To seize the opportunity, miners are embracing

digital tools and capabilities, which include artificial intelligence (AI),

cloud-enabled mobility, big data-powered analytics, and the Internet of

Things (IoT).

“

We've combined

geoscience expertise

with a user-friendly

rock mass evaluation

platform that provides

valuable subsurface

insights and significant

productivity

improvements.

”

On a green day, at a busy mining site (which is nearly every mine),

standing in one corner, getting a panoramic view of the geology office,

one will stand in awe at the traffic flow as everyone will be crouching

over piles of bags nearly bursting soil and rock samples and even more

bigger rocks scattered all over the room, trying to deliver the required

results for production to continue unhampered.

It is very apparent that

something ought to

change!!!!

Such is typical of geological teams of most mines as data must be

manually extracted before being loaded into analysis software's and

domains generated before mining can commence.

Several Silicon Valley start-ups and many others across the globe have

become the epicentre of mining technological innovation, a move that

has given some green life to the exhausted mining operations in a bid to

improve planning, data handling, analysis and application; productivity,



10

The

MINING EXECUTIVE


“We've combined geoscience expertise with a userfriendly

rock mass evaluation platform that provides

valuable subsurface insights and significant

productivity improvements.”, Thor Kallestad CEO-

DataCloud International was quoted saying.

Integrating, processing, and analyzing all sources of

orebody extracts gives insights that will uncover

optimization opportunities across the value chain. If

such geology data is not sufficient, robust, or accurate

enough, an IoT enabled sensor can be easily installed

on the drill to deliver unprecedented high-resolution

rock mass insights.

MinePortal

MinePortal is a shared earth model that is accessed via

browsers or mobile devices.

The streamed data allows rapid update of block

models, shape delineation of ore/waste boundaries and

delivering rock mechanical properties at centimeter

level thus drastically reducing the need for assaying,

turnaround time and associated costs. The ability to

deliver real-time lithology measurements can

accelerate client decision making timelines and reduce

their uncertainty around ore control. This cloud-based

software connects to a mine's databases such as, but

not limited to, exploration drilling, geo-modelling,

MWD, blast design, and the comminution process to

effectively integrate orebody knowledge from the pit

all the way to the processing plant. The power of

cloud computing allows MinePortal to ingest and

process information in near real-time while applying

our proprietary geostatistical and machine learning

algorithms.



11

The

MINING EXECUTIVE


Due to its capital requirements, the mining

industry could not have been a “first mover”

in terms of adopting these new technologies.

However, because it is so capital intensive,

these new technologies will have a very large

and positive economic effect on the mining

industry.

Additionally, by not “going first,” mining

companies will be able to learn from other

industries as to how best to apply /

incorporate things like IoT, AI, cloud, etc.

This is indeed a giant opportunity for the

mining companies and their suppliers /

vendors. The Seattle based tech company has

in the past raised US$4 Million in new

financing to support its growth.

“A fully connected mine moves towards

automation by advancing orebody knowledge

to understand the impact of the rock as it

exists in situ toward each production stage.

This system correlates comminution energy to

rock hardness and ties back to a location to

know how to better prepare throughout the

process chain, avoiding risky or nonproductive

activities and costs.”

To enable a holistic geology monitoring

system for a mine, Microsoft supports

DataCloud's efforts with high speed data

ingestion backed by world-class security.

MinePortal being built atop Azure quickly and

safely integrates all orebody-related data on

the cloud to drive the “digital geology twin”

that will help teams to predict the rock in near

real-time.

The real question is, can this type of

technology be also availed for underground

mining operations where significant value can

be yielded, especially in narrow vein ore

mining? Yes indeed.

MinePortal has evolved into a standalone

solution to future-proof mine site's

optimization projects during production.

This exciting application is currently being

unleashed with Trevali, one of the most

progressive underground miners in the mining

industry. MinePortal is designed to provide

vast feedback applications across the value

chain empowering their teams to make

geology data-driven decisions.

“MinePortal is able to quickly and efficiently

digitize the orebody, share it across multiple

operations, and track and learn from mine to

mill performance. It is a single-source of

geology truth to break down knowledge silos

and create a digital health monitoring system

from the rock to mill at any mine.”

Rather than blaming D&B teams for not

knowing exactly what is in the ground and

where, equip them with rock knowledge to get

a better fragmentation profile and prevent

issues downstream. When the right data is

integrated, it can help forecast the geologic

profile of material headed to the mill allowing

operations to prepare accordingly and

optimize mill throughput. This rock

knowledge is hidden inside data.



And feedback loops are critical to efficiency

goals. The pressures of competition, cost

cutting, and improving productivity and

throughput are driving a need for better and

faster data analysis of a mine site's geology.

By characterizing the orebody at highresolution

during D&B efforts, it becomes

easier to deliver an optimal particle size

distribution and head grade to downstream

processing facilities.

“Know

the

Rock”

12

The

MINING EXECUTIVE


Mining Hall

of Fame:

Executive Throwback

Chester Fred Bond:

How Bond still influences the

Comminution industry a Century

later in mine to mill optimization.

Bond Work Index

Fred Chester Bond

(1899-1977) Mining and

Metallurgical Engineer

Bond' Work Index

(Picture Mining Hall Of Fame)

14

The

MINING EXECUTIVE


Reputation and Awards



15

The

MINING EXECUTIVE


All we need to know

about Mike Henry,

the BHP


“

I am honoured and privileged to be appointed as CEO and to have

the opportunity to lead the talented and hard-working people who

make BHP a great company. For more than 130 years, through the

ingenuity and commitment of its people, BHP has delivered

shareholder value while successfully adapting its portfolio, operations

and products. Today we are even safer, more predictable and more

focused.

”

Mike Henry, BHP

Chief Executive (photo: BHP)



16

The

MINING EXECUTIVE


The announcement

caused a spike in share

price during the week

which saw the share

price dropping between

0.4-1.67 % but started

picking up soon after.

Mr Henry is Canadian with Japanese heritage

on his mother's side, joined BHP in 2003,

initially in business development and then in

marketing and trading of a range of mineral

and petroleum commodities based in The

Hague, where he was also accountable for

BHP's ocean freight operations. He was also

then added to the executive leadership team

under then chief executive Marius Kloppers

who had led the firm through the global

financial crisis and into Australia's mining

boom (whom Andrew Mackenzie replaced)

and went on to hold various positions in the

Company, including President Coal, President

HSE, Marketing and Technology, and Chief

Marketing Officer. Prior to joining BHP, Mr

Henry worked in the resources industry in

Canada, Japan and Australia.

Mr Henry is currently BHP's President

Operations, Minerals Australia, accountable

for iron ore, coal, copper and nickel assets

employing more than 40,000 workers in

Australia with a $US29 billion in revenue. A

holder of a Bachelor's Degree in Chemistry.

Chairman Ken MacKenzie said, “Mike

Henry's deep operational and commercial

experience, developed in a global career

spanning the Americas, Europe, Asia and

Australia, is the perfect mix for our next

CEO. I am confident his discipline and focus

will deliver a culture of high performance and

returns for BHP. Mike has been a strong

advocate for the industry, driving higher

standards of safety and a commitment to our

local communities and global stakeholders.”



17

The

MINING EXECUTIVE


Former CEO

Andrew Mackenzie

(source: BHP)

Outgoing CEO Andrew Mackenzie said: “It

has been a privilege to serve as CEO of BHP.

Our products are essential to global economic

development and we deliver them in a way

that creates significant value, for our

shareholders, our employees, communities,

nations and the world. BHP is in a good

position. We have a simple portfolio, a strong

balance sheet and options to grow value and

returns for decades to come.

“Fresh leadership will deliver an acceleration

in the enormous potential for value and

returns that will come from BHP's next wave

of transformation. Choosing the right time to

retire has not been an easy decision, however

the Company is in a good position. I am

confident Mike and BHP will seize the many

opportunities that lie ahead.”

CEO-Elect Mike Henry said: “I am honoured

and privileged to be appointed as CEO and to

have the opportunity to lead the talented and

hard-working people who make BHP a great

company. For more than 130 years, through

the ingenuity and commitment of its people,

BHP has delivered shareholder value while

successfully adapting its portfolio, operations

and products. Today we are even safer, more

predictable and more focused.

Even though his entrance will give a young

fresh breath to the mining giant, some of Mr

Henry's comments around the announcement



18

The

MINING EXECUTIVE




19

The

MINING EXECUTIVE


Mike Henry,

BHP

Chief Executive

he new BHP Chief Executive could earn up

Tto AUD$10 Million in a package that

includes amongst other things a AUD$2.4

million ($US1.7 million) base salary, AUD$1.98

million ($US1.36 million) in potential short term

cash reward and AUD$4.97 million

($US3.4million) in long term bonus which is

always subject to shareholder approval.

BHP Chairman Ken MacKenzie indicated that,

“This remuneration package is designed to

motivate a high level of performance and align

with our shareholders' expectations and

community views. The package is consistent with

that applied for Andrew Mackenzie and the

remuneration policy approved by shareholders at

BHP's 2019 Annual General Meetings (AGMs). It

is broadly consistent with other roles in global

companies with similar global complexity, size

and reach, and is reflective of the CEO's

significant responsibilities.

A high proportion of actual remuneration received

will be directly dependent on performance, with

75 per cent of total target remuneration

represented by incentive plans, and only 25 per

cent in fixed pay.”

Mr Mackenzie will step down as CEO, a member

of the Executive Leadership Team and an

Executive Director of the Company on 31

December 2019, and ultimately retire from the

group on 30 June 2020. Mr Mackenzie will work

through the applicable notice period and

accordingly no severance payment will be made.

He will receive his base salary and pension

entitlement to the date of his retirement. BHP's

shareholder recently passed a policy which

introduced minimum requirement for a CEO to

continue holding to their BHP shares for two years

beyond retirement. As the company put it, while

this requirement is not technically applicable to

Mr Mackenzie, to demonstrate his commitment to

and confidence in BHP's future success, he has

voluntarily committed to complying with this

post-retirement shareholding requirement.



20

The

MINING EXECUTIVE


Mike Henry's

Biography

Leading the Australian division of the company with an EBITDA of

US$16 billion and a capital spend of US$3 billion, under his

leadership, there has been a 60% reduction in the frequency of high

potential injuries in Minerals Australia. Mike has delivered major

capital projects, including South Flank, at half the capital intensity of

prior major projects in West Australian Iron Ore, and has implemented

BHP's first full-scale autonomous haulage system at Jimblebar.

BHP has become the lowest cost major iron ore producer in the world.

A turnaround of Nickel West led to the decision to return the business

to core in the BHP portfolio. Mr Henry designed and implemented a

BHP-wide operating system and the Maintenance and Engineering

Centre of Excellence, which has delivered material cost savings and

improved uptime across key classes of equipment. He has established

a new employment model and approach to skills building in Australia

through Operations Services. Mr Henry joined BHP's Executive

Leadership Team in 2011. He was also part of the Federal

Government's Resources 2030 Taskforce in 2018 and is Vice Chair of

the Minerals Council of Australia.

Known to champion diversity, Mr Henry has over the past three years

under his leadership doubled BHP's number of female employees and

increased indigenous employment from 4.1 to 5 per cent. He has led

teams in 18 countries spanning four continents and all of BHP's

commodities across health, safety and environment, technology,

capital projects, supply, logistics, marketing and trading.

Career history:

2016 – present President Operations, Minerals Australia

2015 – 2016 President, Coal

2013 – 2015 President, HSE, Marketing and Technology

2011 – 2013 Chief Marketing Officer

2010 – 2011 President, Marketing

2009 – 2010 Marketing Director, Petroleum

2006 – 2009 Marketing Director, Energy and Freight

2005 – 2006 Vice President, Energy Coal Marketing

2003 – 2004 Vice President, Energy Coal Business Development

2001 – 2003 Vice President, Business Development, BMA

(secondment)

1990 – 2001 Mitsubishi Corporation



21

Gary Goldberg, former

Chief Executive Officer of

Newmont Goldcorp Corporation

Major Reshuffle

he incoming of Mark Henry heralded a

Tnew sunrise in the mining giant with

significant changes taking place in the

board and organizational structure. Gary

Goldberg the former Chief Executive Officer

of Newmont Goldcorp Corporation has been

romped into the BHP structure as an

independent Non-executive Director, effective

1 February 2020.

His appointment, the company believes will

bring on board further varied and deepened

knowledge to the relatively young BHP

structure to ensure sustainability and

comparativeness on remuneration.

“Gary is an excellent addition to our Board.

His deep mining experience and strong track

record working in global executive roles will

help ensure we have the right balance of

attributes, skills and experience necessary for

the Board to govern BHP effectively” BHP

Chairman, Ken MacKenzie was quoted saying

after the appointment.

After Mr Goldberg's appointment is effective,

the BHP Board will now be comprised of 11

Directors - 10 Non-executive Directors and

one Executive Director.Mr Henry's

appointment seems to have sparked a

management shakeup within the echelons of

power in strategic roles of the company with

the news that the Chief Technology Officer,

Diane Jurgens, would be leaving BHP in early

2020.



Her replacement was announced to be Rag

Udd, currently Vice President Technology

Global Transformation. Jonathan Price, BHP's

Chief Transformation Officer became the

latest high-profile executive to hand in his

resignation citing family commitments. It

remains to be seen whether Peter Beaven,

BHP Chief Financial Officer who was seen as

Mr Henry's strong competitor during the runoff

to the CEO appoint would hang on to the

heat.

Andrew Mackenzie's retirement date has since

been brought forward to the 31st of March

2020, three months earlier than previously

announced on 14 November 2019. The

company indicated high level of confidence

that the CEO transition process was

proceeding well and ahead of schedule.

One thing is very apparent with his

appointment. The way he has led the

Australian division of the company gives all

stakeholders an air of assurance that, not only

will Makenzie's legacy be maintained but may

also be improved. Whatever the outcome,

BHP continues in capable, fresh and younger

hands.

22

The

MINING EXECUTIVE


Diamonds



24

MINING

BUSINESS

REVIEW



25

The

MINING EXECUTIVE


Business

Review

Peter Steenkamp:

Sheer willpower to deliver strong

stakeholder value: Harmony Gold Ltd

slowly edging out of the woods.

GOLD.

hat does it take for a company

Woperating about 9 underground

gold operations in South Africa,

and several surface sources, as well as 1 large

open pit mine in PNG to ensure a consistent

growth curve and deliver strong financial

performance for shareholder value? This is

probably the question the Harmony

executives might have asked themselves over

and over again as the company slowly and

agonizingly edges its way out of the murky

waters of a streak of financial losses.

On a recovery path, the Randfontein, South

Africa headquartered gold mining giant,

Harmony, has managed to reduce its losses by

over 40% for the 2019 financial year.

Harmony recently released its financial and

operating results for the year ended June 30,

2019 with net losses coming up to 2.6 billion

Rands, 41% less compared to 4.47billon

Rands reported in 2018. Losses per share

decreased 50% to -498c. While headline

earnings per share increased 19% to 204c.

Harmony is listed on the Johannesburg Stock

Exchange, its primary listing, and on the New

York Stock Exchange, on which its shares are

quoted as American Depositary Receipts. On

30 June 2019, the company's market

capitalisation was R17.1 billion (US$1.2

billion).

With 70 years of

experience, Harmony

is currently South Africa's

largest gold producer.

All that glitters

is

GOLD.



Its largest shareholder is African Rainbow

Minerals Limited (ARM) which has a stake of

13.83% in the company with the remainder of

its shareholders geographically diverse, which

include some of the largest fund managers

globally. The Company's mining operations in

South Africa include Kusasalethu, Doornkop,

, Tshepong operations , Masimong, Target 1,

Bambanani, Joel, Unisel and an open pit

Kalgold. The Company also treats several

surface sources.. On the international front,

the company has the Hidden Valley operation

and exploration projects that include Wafi-

Golpu project and Kili Teke prospect.

Operations Performance

or the financial year ending June of

F2019, the company produced volumes

that show an increase in gold

production by 17% to 1.44Million ounces

(Moz) (compared to 1.22Moz for the 2018

Financial year) of gold translating to 23%

increase in production profit. There was a 2%

increase in underground recovered grade to

5.59g/t at South African mines with free cash

flow boosted by Moab Khotsong and Hidden

Valley operations. The company's hedging

strategy contributed to improved cash flow

margins too. The company moved 52.7Mega

Tonnes (Mt) (compared to 50.8Mt for 2018) in

waste and tailing with however an increase in

Carbon emission at 3.9Mt (compared to 3.0

Mt for 2018).

“At Hidden Valley, commercial levels of

production achieved in June 2018 were

maintained during FY19. Safety, good

operational momentum and disciplined cost

management contributed to Hidden Valley

achieving gold production of 6 222kg

26

The

MINING EXECUTIVE


(200 042oz) and generating operational free

cash flow of R573 million (US$40 million) at

a margin of 16%. Stripping of the cutbacks

will continue for the next two and a half

years, to deliver an average life of mine all-in

sustaining cost of below US$950/oz,”

indicated Peter Steenkamp, Harmony's Chief

Executive Officer.

In terms of revenue stream, the company

generated 26.9 Billion Rands in revenue (

compared to 20.5 Billion Rands in 2018) to

which 26.8 Billion Rands (compared to 24.2

Billion Rands in 2018) went to employees

(54%, Suppliers (23%), Sustaining Capital

(21%) with the South African Government

receiving 1% and another 1 % spent on

corporate social responsibility activities.

Harmony mined and processed 26Mt of goldbearing

ore, which generated waste of 53Mt,

consumed 3.3 million MWh of electricity,

resulting in 3.9Mt of CO2 e emissions, used

23 million m3 of water in primary activities

and has 74 000ha of mining land under

management. The company which employs

39773 (approx. 37400 in South Africa and

2400 in Papua New Guinea) people inclusive

of contractors went all the way to invest 484

million Rands in employee skills

development in South Africa alone

(something that still very significant, may

need to be upped considering the safety

statistics). The wage bill gobbled 12.5 billion

Rands split as 11.5 Billion Rands for South

Africa and 1.1 Billion Rands for Papua New

Guinea (compared to 9.5 Billion Rands in the

previous year).

So staggering is its expense bill that saw the

company spending discretionary 8.5 Billion

Rands with 3.2 Billion Rands alone going

into electricity (compared to 3.2 Billion

Rands and 2.3 Billion Rands in 2018).

In terms of the share market, there was a 19%

increase in headline earnings per share to 204

SA cents – 8% increase to 14 US cents. The

company has since managed to refinance and

increase its existing US$350 million loan and

revolving credit facility, raising it to $400

million facilitated by Absa Bank Limited

which reflect the confidence of participating

banks in Harmony's credit quality, its mining

Dr Patrice Motsepe,

Chairman Harmony Gold (source: Harmony Gold)

“Harmony's share price outperformed 80% of the major gold mining companies locally and

abroad as the share price increased from a low of R22.14 per share at the end of June 2018 to

R43.30 per share at the end of September 2019. Harmony is a highly geared gold share and

is well positioned to benefit from the uplift in the gold price,” indicated Dr Patrice Motsepe,

Chairman Harmony Gold.

Dr Motsepe strongly believes the volatility in the gold price has created an opportunity to

hedge a portion of Harmony's gold production to increase its profit margin and strengthen the

overall balance sheet. “Our hedging programme contributed R477 million (US$34 million)

to the group's overall cash position during the 2019 financial year.”

The taxes and royalties were on the lower side with 248 Million Rands paid (compared to

489 Million Rands for 2018) with the South African government receiving 164 Million

Rands and the remaining 84 Million Rands going to the New Papua Guinea government. The

income tax was pegged at 2.1 Billion Rands and 207 Million Rands in Papua New Guinea.

Commitment to good governance

Harmony Gold's board approves the company's strategy and oversees its execution. “The

board also formulates and ensures that there are robust governance standards and that we

conduct and operate our business ethically and in line with good global practice. The range

and depth of skills and expertise on our board has been invaluable as we navigate the current

social, political, economic and environmental challenges and opportunities, “highlighted Dr

Motsepe.

The company is positively geared to increases in gold price and cites its uniquely skilled and

experienced leadership teams, especially in sustaining and prolonging the operating lives of

deep-level gold mines, extensive institutional knowledge of gold mining and related

technology and partnerships with stakeholders as its core strengths to ensure better

performance for the current financial year 2019-2020.

Like any other mine , the company has to manage top risks, which includes safety at its

operations



27

The

MINING EXECUTIVE


“It is of paramount importance that every

employee returns home each day – both safe

and healthy,” said Peter Steenkamp. The

company tragically lost 11 employees during

FY19. “Together with each employee, I aim

to ensure safe production, by preventing

fatalities and embedding a robust safety and

health culture in our organisation.”

At the beginning of FY17, Harmony

embarked on a safety and health journey. The

company believes this, with active leadership,

a proactive culture and effective critical

control management, can prevent significant

unwanted events and fatal incidents. This

journey has led to the implementation of a

comprehensive integrated safety risk

management system (the Harmony risk

management approach), training, refresher

training and several safety campaigns. This

system was developed following an exercise

to benchmark best practice in the industry,

and an external audit of the company's safety

performance and practice. Building on

industry best practice, Harmony implemented

a four-layered approach to risk management

focusing the first layer on a baseline of

identifying and understanding the major

hazards and any significant unwanted events.

The second layer involved in implementing

key controls identified and monitored for

effectiveness and improvement. The

subsequent third and fourth layers are

involved in assessments of hazards related to

non-routine tasks managed on a step by step

action plan and a SLAM (Stop, Look, Assess

and Manage) approach to routine tasks

respectively.

“I wish to extend my personal, heartfelt

condolences to the families, colleagues and

friends of the employees who lost their lives

in mining accidents in FY19. Together with

each and every employee, my aim is to ensure

safe production, by preventing fatalities and

embedding a proactive safety culture. It is

important that every employee returns home

each day - both safe and healthy”.

Throughout FY20, we will continue to focus

on producing safe, profitable production,

pursue safe, value accretive acquisitions and

strengthen our cash flows. Value - rather than

volume - will translate to shareholder returns

in the long term”, said Peter Steenkamp,


Harmony's group lost-time, injury frequency rate improved to 6.12 per million hours worked

(down from 6.26 in FY18) and the group fatal injury frequency rate reduced to 0.12 (down 0.16 in

FY18). However, by any means, the figures are still too high.

Harmony: The Future

Harmony's group lost-time, injury frequency rate improved to 6.12 per million hours worked

(down from 6.26 in FY18) and the group fatal injury frequency rate reduced to 0.12 (down 0.16 in

FY18). However, by any means, the figures are still too high.

Expenditure, as approved by the Harmony board, on future value creation and sustaining the

business (that is total capital and exploration expenditure) will hover at R5.2bn (FY18 was 4.7bn)

in total with South Africa getting R3.2bn (FY18 was R6.2bn) and getting Papua New Guinea

R2.0bn (FY18 was R1.9bn).

“We continue to focus on margin improvement through organic growth, acquisitions, cost

containment and an increase in production. In FY20, we plan to produce 1.46Moz of gold at an

all-in sustaining cost of R579 000/kg,” explained Mr Steenkamp. The company aims at producing

1.46Moz of gold for the year ending 2020 at an all-in all sustaining cost of R579 000/kg. The

company plans to invest R4.7 billion (US$334 million) in sustaining and growing its business –

66% of this at our South African operations and 34% on its activities in Papua New Guinea

(excluding Wafi-Golpu).

The company has identified its risks falling into safety, reserves depletion, metal price variations,

increase in operating costs, social license to operate, failure to deliver operational objectives,

infrastructure, liability for occupational diseases criminal mining, power and systems planning on

its integrated resource system. The CEO indicated Harmony would invest in South Africa, even as

its gold industry declines amid the geological challenges of exploiting the world's deepest mines.

“Harmony will be operating in South Africa for a very long time,” he said



28

The

MINING EXECUTIVE


Papua New Guinea

Permitting of the Wafi-Golpu project has been delayed.

The Wafi-Golpu Joint Venture entered into a Memorandum

of Understanding (MOU) with the Government of Papua

New Guinea in December 2018, targeting a special mining

lease grant by June 2019. Since the signing of the MOU in

December 2018, a legal matter between the provincial and

national government has interrupted the permitting

process, and continues to do so. The Wafi-Golpu Joint

Venture remains ready to engage with the Government of

Papua New Guinea and the regulators. At this stage, the

permitting timelines and roadmap are still to be redefined.

Harmony remains committed to the project and to

resuming talks with the different stakeholders when the

time is right.



29



30

The

MINING EXECUTIVE


Mergers and

Acquisitions

Peter Bradford:

The IGO-Panoramic takeover

bid: Key Lessons

Peter Bradford, IGO CEO and

Managing Director (picture: GBR)

Why you should

ACCEPT

the offer!!!



Coming from selling non-core assets

such as Stockman and the Jaguar mine

in 2017 and 2018, which did not fit

with its “clean energy” theme, Independence

Group (IGO) has embarked on an aggressive

strategy to rebuild its portfolio, this time with

strategic minerals. Currently producing

nickel, copper and cobalt from its Nova

Operation and gold from the Tropicana JV

with AngloGold Ashanti, there is still so much

room for growth for the company and thus

has targeted metals which are critical for

clean and renewable energy, energy storage

systems and electric vehicles (EV). The

company has a 30% stake in the Tropicana

gold mine with JV partner AngloGold

Ashanti, holding 70%.

Formed in 2001, Panoramic Resources, a

diversified Australian miner, mining the

Savanah nickel mine up north of western

Australia restarted its operations a year ago

after having gone through care and

maintenance from May 2016 to December

2018. Its first shipment was targeted for

February 2019 however since then, the

company has been struggling to meet its

product targets for a number of months with

at some production point, having a target of

60,000 tonnes but only managing 46,000

tones. This shortfall, the company attributed

to seismic events that reduced stope

availability especially in July 2019.The

company has since gone to lower its

production forecast for the remainder of the

2020 financial year to 9500–10,000 tonnes of

nickel, 5800–6000 tonnes of copper, and

600–650 tonnes of cobalt.

The Offer

From a distance, IGO has been

observing with interest the patterns and

saw an opportunity to consolidate its

existing assets considering the strategic nature

of the mineral and how the London Metal's

Exchange (LME) inventory has been

dwindling over time thus on 4 November

2019, IGO pounded on this opportunity and

announced an offer to acquire all of the

Shares in Panoramic. Under the Offer,

Panoramic Shareholders would have 1 IGO

Share for every 13 Panoramic Shares owned.

In its calculations, IGO had valued the

Panoramic assets at AUD$312 million. The

hostile icing was meant to lure all minority

shareholders into swapping their interest

thereby consolidating its holding on the

company. Panoramic's board reacted swiftly

by issuing a “take no action”.

Why IGO believes

shareholders should

have accepted the offer.

he implied Offer value of $0.476

Taccording to IGO represents a very

attractive and significant premium of

42% to the closing price of Panoramic Shares

on 1 November 2019, being the last trading

day before 4 November 2019 which was the

announcement date, a 51% to the 1-month

VWAP of Panoramic Shares up to and

including 1 November 2019.

32

The

MINING EXECUTIVE


The offer would materially de-risk

shareholders' investment in Panoramic

through both receipt of up-front value for their

Shares and through being part of the

combined group; a stronger, larger, more

diversified and more liquid vehicle.

In this regard, IGO strongly projected that due

to the risk factors currently faced by

Panoramic, it is possible that, without IGO's

Offer, the Panoramic share price would fall

below the pre-Offer Panoramic Share price

and the implied Offer value in future.

Shareholders would have an opportunity to

participate in the realisation of the full value

potential from Savannah and its surrounding

geology through IGO's technical, financial

and operating capability than on a standalone

Panoramic basis whilst at the same time

retaining and enhancing exposure to attractive

nickel market dynamics.

Panoramic Shares have not traded at the

implied Offer value of $0.476 per Panoramic

Share since 1 March 2019, prior to

Panoramic's first equity raising of last year

announced on 11 March 2019. IGO's Offer, in

IGO's view, a rare opportunity for Panoramic

Shareholders to realise a very attractive and

significant premium for their Panoramic

Shares.

The offer would come with benefits from

IGO's attractive shareholder returns. But it

goes without saying that there are also reasons

why Panoramic would want to hold on to its

assets considering the amount of work and

effort the company has put into restarting the

project. PANORAMIC Resources has

conceded that its guidance for the current

financial year may not be met due to a number

of operational ailments like the seismic issues

as well as the paste fill equipment which is

poorly performing.

According to Zeta Resources, the targeted

shareholder, IGO launched this takeover bid at

a time when the value for the full ramp up of

mining at the Savannah nickel-copper-cobalt

in the Kimberley region of Western Australia

has not been achieved.

To this effect, the company performance was

and is as expected to be below expectation as

the funds required for this ramp up had just

been invested. In its guidance review, the

company projects FY2020 7000-7500 tonnes

of Nickel (Ni) 4500-5000 tonnes Copper (Cu)

and 400-500 tonnes Cobalt (Co). This

according to Zeta has given IGO the leverage

to inflate share price on offer in order to

acquire the Panoramic shares at a deflated

price.

Change of Course

Panoramic aims to subsequently

transition from the Savannah remnant

orebody to the Savannah North

orebody and is optimistic that the year will

fundamentally change the company's fortunes

as confidence dwindles by the day. The

company maintained a stronghold counter,

"Take no action" stance from the date the

offer was given opening up its doors to other

prospective suitors till IGO recoiled and

retracted its offer recently. Changes in project

financing, along with Panoramic's potential

failure to meet production guidance, likely

breach the conditions set out by Independence

Group (IGO) in its takeover offer. The

company had reforecasted its cash flow and,

in the horizon, saw a need for additional

short-term refinancing scheme of up to AUD

$30 Million.

The bid for Panoramic, though medium a

project in stature compared to other players in

the same field developed an investment ripple

within the nickel market with other

competitors unleashing their purses on

prospective. In a sudden change of tone,

Panoramic opened up its books on 22nd of

November 2019 to potential suitors in the

wake of the November offer by IGO but still

maintaining the “take no action stance”.

This had potential to turn into a bidding war, a

war that if Panoramic would have lost or

looses the company certainly knows that it

would have yielded the best value for its

shareholders. Amongst the suitors who are

believed to have sought access to Panoramic's

Data Room is Western Areas and Black

Mountain Metals.

The data room provides information to

interested parties to conduct due diligence and

gives them the opportunity to put forward

alternative proposals. At the bottom of the

barrel, the catch is, with the electric revolution

taking place, a nickel demand earthquake may

take place in the coming years potentially

sending prices skyrocketing.

This may explain why companies like BHP

are holding onto the nest of the nickel quiver

in their Nickel West mine even when the

company would go through challenging times

with the operation.

Since Nickel so that strategic, if Panoramic

falls, so will other small players start falling

one by one which includes Mincor and

Poisedon as bigger companies like Glencore

and Rio Tinto have also thrown their hats into

the ring in search of new sources of the

mineral.

Shares of Panoramic Resources have been on

a rise since the November announcement. The

game is on and just like a game of Chess, the

strongest will survive. Until then, Panoramic

continues the juggling game.

Early January 2020, IGO seemingly on the

verge of not gaining much success decided to

rescind the offer offering upon lapse of the

offer on 17th of January 2020, a right to

withdraw their acceptance to all Panoramic

Shareholders who had self pollinated and

vested their confidence in IGO by jumping

the Panoramic ship on the offer. As a result,

this would give these shareholders a right to

deal with their normal panoramic shares upon

completion of processing of the withdrawal.

Peter Bradford, Managing Director and CEO

of IGO stated: "IGO recognises that under the

customary terms of IGO's Offer, Panoramic

shareholders who have accepted the Offer



would be unable to trade their Panoramic

shares until after the Offer has lapsed on 17

January 2020.

To alleviate the potential disadvantages of this

for accepting Panoramic shareholders, IGO

has determined, in line with its values and

standards, to grant Panoramic shareholders

who have accepted the Offer a right to

withdraw their acceptances prior to the Offer

lapsing. This will provide accepting

Panoramic shareholders the opportunity to

freely deal with their Panoramic shares earlier

than they would be able to in the ordinary

course.”

33

The

MINING EXECUTIVE


Nico Muller

The motive behind Impala Platinum's US$750

Million acquisition of North American

Palladium Limited.

mpala Platinum Holdings Limited (Implats) recently entered

Iinto a definitive agreement to acquire 100% of the

outstanding shares in Canadian PGM miner, North American

Palladium Limited's (NAP) issued and outstanding common

shares for total cash consideration of approximately C$1.0

billion. Brookfield Business Partners LP, NAP's majority

shareholder with 81.0%, has been offered C$16.00 per share in

cash, while the minority shareholders will receive C$19.74 per

share, in a deal worth C$1 008 million (US$758 million),

resulting in an average total offer price of C$16.77 per share.

“This transaction delivers attractive value for our shareholders

and reflects on five years of hard work we have devoted to

realize the potential of our assets. We have successfully

established Lac des Iles Mine as one of Canada's largest, lowestcost

and safest underground mines, producing a metal that

contributes to a cleaner global environment,” commented Jim

Gallagher, President and Chief Executive Officer of NAP. “Our

employees, suppliers, customers and community stakeholders

can all join me in feeling tremendous pride at this pivotal

moment in our Company's history. By becoming a significant

part of a larger, integrated global producer, we will benefit from

greater access to technical, operational and financial resources

with which to pursue our production, development and

exploration objectives in Canada.”

The offer will be settled via a combination of existing cash of

US$288 million, cash raised through a metal prepayment of

excess inventory of US$120 million and a loan of US$350

million. At this stage, Implats' anticipates refinancing the loan

through a combination of internally generated cash from

operations, term debt and a potential placement of its 16,233,994

Treasury shares by way of a vendor consideration placing. NAP

is a Canadian-based primary PGM producer listed on the Toronto

Stock Exchange (TSX), the US OTC market and the Börse

Frankfurt.

Nico Muller, Implats


(picture: Implats)

NAP wholly owns and operates the Lac des Iles Mine (Lac des

Iles) northwest of Thunder Bay, Ontario, and has a shareholding

in two exploration properties, the Sunday Lake project and the

Shebandowan Joint Venture. During calendar year 2018, NAP

produced 237 461 ounces of palladium, generated EBITDA of

C$147 million (US$111 million) and free cash flows of C$45

million (US$34 million). The operation is on track to meet its

calendar year 2019 production guidance of 220 000 to 235 000

ounces of palladium at an all-in sustaining cost of US$785 to

US$815 per palladium ounce produced.

Implats CEO, Nico Muller, said, “Implats has had an exploration

presence in Canada for more than two decades and over the past

three years we have developed a strong relationship with and

understanding of NAP and its management team and operations.

The ability to acquire NAP and deliver on its medium-term

production plans and exploration potential is an exciting

development for our Group. Ownership of NAP will accelerate

our progress against a number of key strategic imperatives, and it

is Implats' view that the palladium market will remain in a

structural deficit in the medium term, which should lend

considerable support to stronger-for-longer pricing.



34

The

MINING EXECUTIVE


The increase in rand PGM pricing, together with the step-change in

operational momentum at Implats resulted in considerable free cash

generation and a substantial strengthening of the Group's balance

sheet during FY2019. This has allowed Implats' to pursue these 2

transactions through a prudent and efficient financing structure and, in

doing so, enhance value accretion and returns for the Group and its

stakeholders, generating returns above the Group's internal cost of

capital and with attractive payback periods.”

The Transaction will require approval by at least 66 2/3% of the votes

cast by the shareholders of NAP present at a special meeting of NAP

shareholders. Implats has entered into customary voting support

agreements with Brookfield as well as each of NAP's directors and

executive officers. The Arrangement Agreement also includes

customary non-solicitation provisions following the expiration of a

30-day modified go-shop period, during which period the Company

and its representatives have the right to respond to bona fide

expressions of interest in respect of an acquisition proposal. If NAP

accepts a superior proposal during such period, the Arrangement

Agreement provides that a go-shop termination fee of C$24.5 million

is payable to Implats. If NAP accepts a superior proposal following

the 30-day modified go-shop period, the Arrangement Agreement

provides for a termination fee of $37.7 million payable to Implats.

Implats has the right to match any superior proposal within 5 business

days.

Implats' believes the transaction provides a compelling opportunity

for the Group to further reposition its portfolio and strengthen its

competitive positioning in line with its stated strategy by acquiring a

palladium-rich, operating asset in an established mining jurisdiction:

o Lac De Iles is a low-cost PGM producer and generated cash

margins of 53% in the 12 months to end June 2019. The mine is fully

mechanised with a low labour complement and leading safety

statistics, which further reduces the risk profile of the asset. Resource

base supports a life-of-mine in excess of 15 years, with potential

future upside and the operation leverages modern infrastructure and

advanced underground mining technologies to capitalise on its highly

prospective exploration portfolio. The geological setting presents

highly prospective future exploration opportunities.

Implats aims to develop a competitive global portfolio of producing,

processing and exploration assets, diversify its production base

geographically and operationally with assets on the Western and

Eastern limbs of the Bushveld Complex in South Africa, on the north

and south of the Great Dyke in Zimbabwe and now North America

and enhances the mix of its attributable mine production which is

sourced from a diverse range of PGM-bearing reef types. The

company also aims at reducing dependence on any single mining

complex.

The transaction will be implemented by means of a Canadian Plan of

Arrangement (the Plan of Arrangement) according to an Arrangement

Agreement (the Arrangement Agreement) between NAP, 3 Implats,

and Implats' wholly-owned Canadian subsidiary 11638050 Canada

Inc. (BidCo. The Board of directors of NAP have unanimously

approved the transaction and will recommend to NAP shareholders

that they vote in favour of it. In addition, all directors and officers of

NAP and its majority shareholder have entered into voting

agreements with Implats and BidCo to support and vote in favour of

the transaction. Once the Plan of Arrangement is complete, NAP will

be delisted and become a wholly owned subsidiary of Implats through

the amalgamation of NAP and BidCo. The deal is subject to standard

conditions precedent, as are customary in a transaction of this nature,

including regulatory conditions.

About Implats

mplats is one of the world's foremost producers of platinum and

Iassociated platinum group metals (PGMs). Implats is structured

around five main operations including Impala, Zimplats, Marula,

Mimosa and Two Rivers, with headquarters in Johannesburg. The

Group's operations are located on the Bushveld Complex in South

Africa and the Great Dyke in Zimbabwe, the two most significant

PGM bearing ore bodies in the world. The Refineries operations is



35

The

MINING EXECUTIVE


Mining Investments

Evgenii Nikitin: Rusal to

install over 20 state-of-the-art Dry

Gas Cleaning Systems (DCGS)

at its smelters by 2025.

Evgenii Nikitin, CEO RUSAL

(picture Rusal)

RUSAL, one of the leading global aluminium

producers, plans to install over 20 state-of-theart

dry gas cleaning systems (DGCS) at its

smelters by 2025. These advanced systems

were developed by RUSAL's design and

scientific divisions and the new equipment

will allow the Company to capture over 99.5

The project to retrofit RUSAL's smelters with own DGCS was

launched in 2016. In October 2019, the Bratsk aluminum

smelter put into operation another DGCS, developed and

manufactured by the design and scientific divisions of RUSAL-

SibVAMI (Irkutsk) and RUSAL ITC (Krasnoyarsk). More DGCS' are

already in operation at the Company's industrial sites in Shelekhov and

Novokuznetsk.

As part of RUSAL's environmental action plan for the period spanning

2020-2024, it is expected that another 17 DGCS' will be assembled

and put into operation at the Bratsk, Novokuznetsk and Irkutsk

aluminium smelters.

“This project is truly unique

thanks to our patented design

solutions, enabling RUSAL to

complete the switch to utilising

our own dry gas cleaning

systems as part of our

“EcoSoderberg” technology

implementation. This

innovative new technology

outperforms the existing foreign

analogues and delivers a

superior performance, both in

terms of RUSAL's

sustainability footprint and

overall efficiency

characteristics,” said Victor

Mann, RUSAL's Technical

director.

The company recently

announced the signing of a new

five-year sustainability-linked

pre-export finance facility for

nearly US$ 1,1 Billion. The size

of the facility increased from

the initially announced USD

750 million as the market

supports the Company's

commitment to low-carbon

aluminium technologies and

green aluminium production.

The signed facility is the first

ever sustainability-linked

syndicated facility arranged by

international and Russian

commercial banks in Russia.

The interest rate is subject to a

sustainability discount or

premium depending on the

Company's fulfilment of the

sustainability key performance

indicators (KPI). Sustainability

KPIs are related to the

Company's environmental

impact and sustainable

development and include the

growth targets of ALLOW

aluminium sales – RUSAL's

low-carbon aluminium

produced with hydropower.

Other KPIs also cover the

reduction of carbon footprint

and decrease of fluoride

emissions. They will be

measured annually and verified

by an independent and

specialized third party. The

proceeds of the facility will be

used to partly refinance the

principal outstanding under the

existing up to USD 2 billion

pre-export finance facility that

was drawn in May 2017.



ING Bank, a branch of ING-

DiBa AG, and Natixis were

Coordinating Bookrunning

Mandated Lead Arrangers.

Bank of China, Crédit Agricole

Corporate & Investment Bank,

Societe Generale and UniCredit

S.p.A. acted as the Initial

Bookrunning Mandated Lead

Arrangers, Sberbank of Russia

as the Bookrunning Mandated

Lead Arranger and RCB Bank

LTD as the Initial Mandated

Lead Arranger. Intesa Sanpaolo

Bank Ireland Plc and Bank

ZENIT (Public Joint Stock

Company) were the Mandated

Lead Arrangers and Raiffeisen

Bank International AG was the

Lead Arranger. Societe

Generale and Natixis act as

Sustainability Coordinators.

“We are very delighted to witness

this level of trust from the

investment and banking community

towards the Company's

sustainability initiatives. Such high

market interest also reflects the

rising global demand for the lowcarbon

aluminium, of which

RUSAL is the largest producer. The

sustainability-linked pre-export

finance facility further proves the

Company's seamless focus on

prioritizing the transparency of the

green aluminium production, as is

the case with ALLOW, RUSAL's

low-carbon aluminium. Moreover,

it is a crucial step towards the

refinancing of the Company's debt

optimizing maturities and

financing costs,” said Evgenii

Nikitin, RUSAL's CEO.

RUSAL is the largest producer

of green aluminium in the

world. The smelters which

produce its low-carbon

aluminium ALLOW have a

carbon footprint four times

lower than the industry average

(scope 1&2). RUSAL continues

to pioneer new technology

which is focused on eliminating

its greenhouse gas emissions.

The Company's extensive

sustainability program includes

a variety of initiatives including

a country-wide reforestation

programme, in which 1 million

have been planted in Siberia.

36

The

MINING EXECUTIVE




37

GLOBAL

MINING

REVIEW



38

The

MINING EXECUTIVE


AFRICA & EMEA

Mark Farren

Inside Ivanhoe Mine's perceived

Worlds' second largest Copper mine

in DRC - The Kakula Project.

n the thicket of the green surrounding

Iforest, a vast resource lies in state

dripping some greenish

mineralization awaiting tapping. Within

it, a rich portfolio of elements exists

which have made some of the biggest

miners in the world divest their bases in

order to secure future markets as weights

shift in demand for global metals. In the

distant, further up north of the country

human nature rages as some seek

dominion over others, a brutal conflict

that have left the country torn apart in

some sections.

In contrast, in this massive coalescence

of greenish-metallic existence concealed

by the darkness, peace reigns and the

only form of violence is that of

equipment metal to the modification of

the rock for the purpose of extraction of

the precious ore. This is constantly

moved by mining equipment and

transported to the surface for stockpiling

and later processing. Welcome to the

Kamoa-Kakula Copper Project located in

the South Central region of DRC, about

25km west of Kolwezi.

Mark Farren

Chief Executive Officer of the Kamoa-Kakula

Copper Joint Venture. (picture Ivanhoe)



39

The

MINING EXECUTIVE


Location of the Kamoa-Kukula Project (PICTURE: Ivanhoe Mines)

So huge is the Kamoa-Kakula Project that the deposit is independently

ranked by Wood Mackenzie to be the world's 4th largest copper deposit

which will throw the operation into the league of Escondida, Grasberg,

Collahuasi, Las Bambas and Antamina. Spanning over a size nearly the

same size of Manhattan City, the mine will stretch more than 13 km.

An independent preliminary economic assessment (PEA) issued in

February 2019 indicates that Kamoa-Kakula Project has a potential

production rate of 18 Mtpa. Once this expanded rate is achieved,

Kamoa-Kakula is projected to become the world's second largest

copper mine, with peak annual production of more than 700,000 tonnes

of copper.

Panoramic view of the Kukula Deposit (picture: Ivanhoe Mines)

To one new CEO, an exciting adventure awaits in guiding this massive

project to fruition albeit under demanding circumstances, a feat that

will probably make the project more interesting. On October 8, 2019,

Ivanhoe and Zijin announced the employment of a stand-alone

executive team to take Kamoa-Kakula to commercial production.

Ivanhoe's Executive Vice President, Operations, was in this last quarter

appointed as the Chief Executive Officer of the Kamoa-Kakula Copper

Joint Venture.infrastructure development.



In two concurrent moves to further enhance Ivanhoe's development and

operating capabilities, Louis Watum, Ivanhoe's DRC country manager,

was appointed President of the Board of Directors of Kamoa Copper

SA, the DRC operating company of the joint venture between Ivanhoe

Mines, Zijin Mining Group, Crystal River and the Government of the

Democratic Republic of Congo that is developing the Kamoa-Kakula

Project. Mr. Watum's expanded role includes assisting with

infrastructure development.

40

The

MINING EXECUTIVE


South African mining veteran Warwick

Morley-Jepson has been appointed as

Ivanhoe's new Chief Operating Officer,

assuming the duties formerly held by Mr.

Farren.

“Louis, Mark and Warwick all have extensive

experience in the development, construction

and operation of underground mines in the

region, and we have the utmost confidence in

their abilities to assemble and lead the jointventure

team that will construct and operate

the stage-one, six million-tonne-per-annum

Kakula Copper Mine, while also advancing

development efforts at our Kipushi and

Platreef projects and fast-tracking exploration

drilling on our 100%-owned Western

Foreland licences,” said Mr. Friedland.

Joining Mr. Farren on Kamoa-Kakula's new

executive management team will be Dr. Yong

Chen of Zijin Mining, as Chief Operating

Officer. Dr. Chen has more than 25 years'

management experience in mining operations,

including his most recent role as Director and

General Manager of Xinjiang Ashele Copper

Ltd., a large-scale underground mining and

processing complex majority owned by Zijin

Mining.

“The executive management team will work

closely with Mr. Watum and senior Congolese

management, our government partners and

our host communities to help ensure that the

Kakula Mine is built on time and budget, and

to the best international standards,” added Mr.

Friedland. “The structure of the team reflects

the strong degree of cooperation between the

joint-venture parties, and we are confident

that the individual expertise and leadership

qualities of each member of this executive

team will help ensure a successful start-up of

operations at Kakula.”

“This is an important stage of growth for

Ivanhoe Mines, and I am honoured to lead the

development of the tier-one Kamoa-Kakula

Project at such an exciting time,” said Mr.

Farren.

“We are uniquely positioned to build Kakula

into one of the world's greatest copper mines,

and I am excited to be part of the team that

moves this project forward to production.”

The Kamoa-Kakula Copper senior

management team also includes Congolese

nationals Ben Munanga – Head of Energy;

Teddy Kabongo – Head of Tax; and Dr. Guy

Muswil – Head of Sustainability. As well,

Rochelle De Villiers of Ivanhoe Mines and

David Li of Zijin Mining have been appointed

as Kamoa-Kakula's Co-Chief Financial

Officers.

The company has appointed Warwick

Morley-Jepson as its new Executive Vice

President and Chief Operating Officer. Mr.

Morley-Jepson is a seasoned mining

professional who will assume the duties

previously performed by Mr. Farren. He will

be responsible for overseeing the technical

and development initiatives that Ivanhoe

currently is pursuing at the Kipushi and

Platreef projects.

He also will be a key member of the Ivanhoe

team working with Zijin Mining to oversee

the development of the Kamoa-Kakula

Project.

Ivanhoe sold a 49.5% share interest in Kamoa

Holding to Zijin Mining in December 2015

for an aggregate consideration of $412

million. In addition, Ivanhoe sold a 1% share

interest to privately-owned Crystal River for

$8.32 million – which Crystal River will pay

through a non-interest-bearing, 10-year

promissory note. Since the conclusion of the

Zijin transaction in December 2015, each

shareholder has been required to fund

expenditures at the Kamoa-Kakula Project in

an amount equivalent to its proportionate

shareholding interest in Kamoa Holding.

Currently, Kamoa-Kakula Copper Project

joint venture has the following majority

shareholding: Ivanhoe Mines (39.6%), Zijin

Mining Group (39.6%),

Crystal River Global Limited (0.8%) and the

DRC government (20%). Ivanhoe Mines and

Zijin Mining are co-funding development of

the project. Initial copper concentrate

production from the Kakula Mine, the first of

at least three mines planned at Kamoa-

Kakula, currently is scheduled for the third

quarter of 2021.

Zijin's private share

purchase and sale

transaction with

CITIC Metal Africa

and Robert Friedland

In a related move that follows the

implementation of Kamoa-Kakula's new

executive management team and which

reflects the efforts and importance of Zijin

Mining in the ongoing development of

Kamoa-Kakula as well as the spirit of

genuine strategic cooperation among Ivanhoe

Mines' largest shareholders, CITIC Metal

Africa and Robert Friedland have agreed to

sell 35,752,011 shares (3.0%) and 12,900,271

shares (1.08%) of their shareholdings,

respectively, to Zijin, in a private share

purchase and sale transaction.



After the closing of the transaction, CITIC

Metal Africa will own approximately 26.4%

of Ivanhoe's issued and outstanding shares,

Robert Friedland will own approximately

13.2%, and Zijin will own 13.88%. The price

per share will be fixed on the day prior to

completion of the transaction at the prevailing

one-day volume weighted average price at

that time, but with a floor price of C$3.98 –

the price of the recently completed second

strategic investment by CITIC Metal in

Ivanhoe Mines.

“This rebalancing share purchase and sale

agreement once again proves the high level of

trust and strategic cooperation between

Ivanhoe Mines, CITIC Metal and Zijin

Mining,” said Mr. Friedland.

The completion of the transaction remains

subject to receipt by Zijin of necessary

recordals and registrations with Chinese

government regulatory agencies, as have been

required and obtained in prior transactions.

These are expected to be received within two

months, with the completion of the transfers

following thereafter and prior to the end of

2019.

At the closing of the transaction, Zijin and

Ivanhoe Mines will enter into an investor

rights agreement that will, among other

things, confirm Zijin's entitlement to one

director, currently its Chairman Chen Jinghe

who was elected to the board at Ivanhoe's

AGM held earlier this year. Zijin's existing

standstill agreement also will be amended to

increase Zijin's maximum allowable

shareholding in Ivanhoe Mines to 13.88%

from 9.9% without Ivanhoe board approval.

Zijin Mining also will enter into the same

reciprocal lock-up arrangements that currently

exist between CITIC Metal and Robert

Friedland under which each grants the others

reciprocal disposition and tag-along rights in

the event of certain proposed sales of shares

in the future.

The existing standstill agreements for CITIC

Metal and Mr. Friedland are unaffected by the

rebalancing transaction, and each continues to

be restricted from acquiring more than 29.9%

and 19.9% of the Ivanhoe Mines' common

shares, respectively, until January 8, 2023.

41

The

MINING EXECUTIVE


The Kamoa-Kakula Project

The Kamoa-Kakula Project is approximately 25 kilometres west of the mining centre of Kolwezi in the DRC. Everything about this project is

going to be so big so much that stage one of the operations is being pegged at 6Mta with an estimated capital development cost of US$ 1.1

Billion. The project is projected to have an after-tax yield NPV (8%) of US$5.4 Billion and an Internal Rate of Return of 47% over the entire

25 Life of Mine (LOM). The Kakula project is expected to produce very high-grade copper concentrate in excess of 57% Copper with very low

arsenic levels. Mining will be undertaken in 6m high panels utilizing 60 tonne trucks and conveyed to the surface for stockpiling and processing.

55% of the tailings will be pumped back into the mine for backfilling.

Kukula Deposit in comparison to Manhattan (picture: Ivanhoe Mines)

On March 22, 2019, Ivanhoe filed an updated

NI 43-101 technical report for the Project

covering the independent pre-feasibility

studies (PFS) for the development of the

Kakula and Kansoko copper mines, and an

updated, expanded preliminary economic

assessment for the overall integrated

development plan for the project. Highlights

of the PFS, based on a consensus, long-term

copper price of $3.10/lb included some very

high-grade, stage-one production which is

projected to have a grade of 7.1% copper in

the second year of production and an average

grade of 6.4% copper over the initial 10 years

of operations, resulting in estimated average

annualized copper production of

291,000 tonnes. Initial capital cost, including

contingency, estimated at $1.3 billion with an

average total cash cost of $1.11/lb of copper

during the first 10 years, inclusive of royalties.

The after-tax NPV was pegged at an 8%

discount rate, of $5.4 billion and an after-tax

internal rate of return (IRR) of 46.9% and a

payback period of 2.6 years. Kakula is

expected to produce a very high-grade copper

concentrate in excess of 55% copper, with

extremely low arsenic levels.

On July 29, 2019, Ivanhoe announced assays

from 19 new drill holes at the latest highgrade

discovery at the project

─ the Kamoa North Bonanza Zone. Multiple,

thick drill intercepts of more than 10% copper

were recorded at the new discovery, including

13.80% over 15.50 metres in the central

discovery area. Work immediately got

underway to prepare an initial mineral

resource estimate for the Bonanza Zone, as

well as geotechnical, hydrogeological and

metallurgical test work needed for mine

planning.



42

The

MINING EXECUTIVE


Kakula's underground development and production five-year plan showing more than five kilometres of development

work completed to date (purple with access from the northern declines and yellow with access from the southern decline).

More than five kilometres of underground development was completed in the first nine months of 2019 as the project tracks towards first production

in Q3 2021. The development of the project has made considerable progress with the first of multiple, planned mining areas, the underground access

drives intersecting the mine's initial high-grade ore (+3% copper) in late August, then intersected an even higher grade zone (approximately 6%

copper) in late October as the drives advance towards mining zones of +8% copper in the center of the deposit. The processing plant and other

surface infrastructure build up is also advancing rapidly. The joint venture has issued purchase orders for the long-lead mining and processing

equipment. Initial copper concentrate production from the Kakula Mine currently is scheduled for the third quarter of 2021.

Access tunnels measure six

metres by six metres, allowing

access for large-capacity LHD

loaders and 50-tonne haulage

trucks.



43

The

MINING EXECUTIVE


Kakula's initial processing plant capacity has been pegged at 3.8 Mtpa, an increase of 0.8MTa from an initial projected capacity OF 3.0mtPA. The

expansion in initial plant capacity requires increasing the underground mining crews in 2020 from 11 to 14 to ensure sufficient mining operations to

feed the expanded plant and create pre-production stockpiles of approximately 1.5 million tonnes of high-grade ore and an additional 700,000 tonnes

of lower-grade material (approximately 1% to 3% copper). This should allow the plant to ramp up quickly and maintain a steady state throughput of

3.8 Mtpa.

Kakula's conceptual surface layout, showing the ore stockpiles

(blue circles) and processing plant (yellow box).

The recently completed basic engineering design and costing for Kakula's initial mine and underground infrastructure, the first concentrator module

and associated surface infrastructure put the project's initial capital costs at approximately $1.3 billion (from January 1, 2019), which assumes

commissioning of the processing plant in Q3 2021. The capital costs incurred by the Kamoa-Kakula joint venture during the first nine months of

2019 were $182.5 million with which $60.5 million was spent on the declines and mine development.

A 3-D model of Kakula's processing plant flotation area.



44

The

MINING EXECUTIVE


The company has completed the basic engineering design and costing for the initial five-years with the cost and design of the plant, infrastructure and

mining areas reviewed. The basic engineering package also provided a detailed capital cost estimate by which the project costs can be controlled and

will be included in the independent definitive feasibility study, which will be completed in 2020.

A 3-D model of Kakula's processing plant concentrate thickening filtration and bagging plant.

The processing plant flow diagrams, process control descriptions, processing equipment lists, and piping diagrams have been completed. Major longlead

items including cone crushers, ball mills, regrind mills, thickeners, the concentrate filter press, low entrainment cells, flotation cells and highpressure

grinding rolls (HPGR) have been ordered. Plant earthworks are well advanced, and plant civil works are underway; concrete pouring for the

run-of-mine stockpile has started, and excavation and rebar installation at the HPGR stockpile and ball mill foundations has been completed. To

ensure the progression of the detailed plant designs, the contracts have been signed and the vendor certified information has been sent.

The secondary plant procurement packages, specifically the trash screen, concentrate bagging plant, supply of medium voltage motors and variable

speed drives, vibrating screens, grizzlies, feeders and cyclones are all in the final stages of the procurement cycle. The design and procurement for the

underground rock-handling system also has been completed.

Energy Source

Assembling of the new turbines at Mwadingusha in progress.

The nearby Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure to supply the mine with clean hydro-power

will have six of its turbines refurbished and a permanent road constructed from the mine to Kolwezi airport with at least 1000 units of camp

accommodation on site.



45

The

MINING EXECUTIVE


Europe

Ivanov Sergey Sergeevich

Russian diamond mining giant, ALROSA enters

top 10 of Raex-Europe's ESG independent rankings.

ALROSA has entered the top 10 of

the annual ESG ranking of the

RAEX-Europe independent rating

agency. The ranking assesses

companies' performance against

environmental, social and

governance strategies. There are 30

major Russian companies from

different business sectors within

RAEX-Europe ESG ranking.

Ivanov Sergey Sergeevich -

CEO ALROSA



46

The

MINING EXECUTIVE


Adherence to the ESG principles implies that the company implemented Environmental, Social and Governance aspects in its strategy

and business in accordance with best practices. ESG ranking assesses the optimal set of selected indicators that show how the

company affects the ecological and social environment, as well as a degree of its exposure to the social and governance risks.

Mirny, Sakha, Russia (picture: Alrosa)

In 2019, ALROSA ranked 8th in the ESG ranking. RAEX-Europe

takes into account such indicators as water use, waste and air

emissions, social expenditures and human capital investments, as

well as the frequency of accidents, the number of independent board

members, the free float share and the company's position in

Transparency International corporate reporting rating.

“As the global leader in diamond mining and a major Russian subsoil

user, ALROSA confirms its commitment to sustainable development

standards in environment, social responsibility and corporate

governance. The company will continue implementing the latest

energy and resource-saving technologies, improve corporate

governance, invest in human capital and the social aspect in the

regions of presence,” commented Sergey Ivanov, CEO of ALROSA.



47

The

MINING EXECUTIVE


RAEX-Europe takes into account such

indicators as water use, waste and air

emissions, social expenditures and human

capital investments, as well as the frequency

of accidents, the number of independent board

members, the free float share and the

company's position in Transparency

International corporate reporting rating.

In 2018, ALROSA allocated for social

investments almost 11 billion rubles;

environmental expenditures exceeded 5

billion rubles. ALROSA is a constituent of the

FTSE4Good Index Series created by the

global index and data provider FTSE Russell,

which measures the performance of

companies demonstrating strong

Environmental, Social and Governance (ESG)

practices. ALROSA also has a BB rating in

the MSCI ESG rating system that assesses

environment, social responsibility and

corporate governance. Besides, the company

is in the top 10 of the environmental

responsibility rating of Russian mining

companies developed on the initiative of the

World Wildlife Fund (WWF) of Russia and

the UNDP / GEF project of the Ministry of

Natural Resources of Russia. In 2019, the

company received the Diamond

Empowerment Fund (DEF) award for

implementing social projects in the regions

where it operates (Community Stewardship).

Nyurba Open Pit Mine (picture: Alrosa)



48

The

MINING EXECUTIVE


ASIA

John Lamb

Unleashed, Myanmar Metals set to be the 3rd

biggest Lead (Pb) Project in the world.

John Lamb: CEO Myanmar Metals (Credit: Myanmar Metals)

Myanmar Metals Limited completed an initial Scoping Study in November 2017 and a China Pit Scoping Study

in August 2018. These were later upgraded in June 2019 to a JORC Probable Ore Reserve of 18.4 Mt at 6.4%

lead, 169 g/t silver and 3.4% zinc. The high-grade Shan Lode has been extended with recent exploration

confirming mineralization of 4.2% and 6.5% of Pb and 57g/t of Ag.



49

The

MINING EXECUTIVE


Myanmar though having a tainted past due to political

uncertainty has of late opened up and started attracting

significant international investment. Democratic elections

held in 2015 complimented by the lifting of the US sanctions in 2016

have opened investment streams that were once perceived unlikely to

find their way into the country. The government has made strong

private sector growth a key principle and goal for economic policy,

though challenges still remain in abundance. Access to major

financing has been a major challenge for local investor as only about

1% of fixed-asset investment costs are financed by bank borrowing,

while 92% of firms rely on their own funds. The country has been

plagued by malpractices with non-transparent, uncertain and,

complicated rules and procedures for obtaining, keeping and

transferring land-use rights. Most firms face power outages, the worst

level in the region. As a result, firms are forced to rely on their own

power generators for electricity.

Towering above these challenges is one mining company that is

revamping and re-digging the old wells of Myanmar's rich silver and

lead heritage. The Bawdwin Joint Venture (BJV) intends to redevelop

the world class Bawdwin Mineral Field, held under a Production

Sharing Agreement (PSA) between WMM and Mining Enterprise No.

1, a Myanmar Government business entity within the Ministry of

Natural Resources and Environmental Conservation. With an orebody

that is distinguished by the size and grade of its resources and

remaining open at depth and along-strike, the John Lamb led Tier 1

Myanmar Metals-Bawdwin project is one investment stream that is set

to be an iconic project in modern Myanmar times, well on course to

being the 3rd largest producing lead mine and 10th largest silver mine

in the world. The company holds a majority 51% participating interest

in the Bawdwin Project in joint venture with its two local project

partners, Win Myint Mo Industries Co. Ltd. (WMM) and EAP Global

Co. Ltd. (EAP

Bawdwin Joint Venture Open Pit Design (Credit: Myanmar Metals)

Everything about the Myanmar Metals project from the grades, size in strike and depth, rich cultural heritage, long life, low operating costs, ability to

mine both open pit and underground, to ready markets across the border in China, is what its competitors can only dream about. The company seeks

to develop the operation on an accelerated schedule. Located in the Shan State of Myanmar, Bawdwin project is strategically positioned to access to

some of the world's largest markets in form of smelters in China.



50

The

MINING EXECUTIVE


Bawdwin Joint Venture Open Pit Location (Credit: Myanmar Metals)

Mining of the Bawdwin resource dates to the 15th century, with Chinese artisanal miners extracting

silver from surface and near surface deposits. British underground mining of the deposit commenced in

the early 1900's under the management of Herbert Hoover, the 31st President of the United States.

The mine has been on care and maintenance since 2008. Myanmar Metals has a 51% majority

participating interest in the deposit and aims to create a Tier 1 project in a strategically advantageous

location leveraging on outstanding exploration potential and a well-managed sovereign risk in

Myanmar.



51

The

MINING EXECUTIVE


Myanmar Metals Limited

completed an initial Scoping Study

in November 2017 and a China Pit

Scoping Study in August 2018.

These were later upgraded in June

2019 to a JORC Probable Ore

Reserve of 18.4 Mt at 6.4% lead,

169 g/t silver and 3.4% zinc. The

high grade Shan Lode has been

extended with recent exploration

confirming mineralization of 4.2%

and 6.5% of Pb and 57g/t of Ag.

Myanmar Metals Bawdwin Mine Site (Credit: Myanmar Metals)



52

The

MINING EXECUTIVE


The mine is set to be mined in phases to optimize mining productivity and expenditure kicking off with a 13-year stage 1 pit earmarked for 2021

production at 2Mtpa with the subsequent stages and underground operations scoping stages on the tail. Development of the mine and processing

facilities will be enhanced by the substantial existing infrastructure in place which where possible, will be utilized or re-purposed with modern

mining and processing technologies. The pit will be mined to a depth of 270m below the existing floor. John Lamb, Chairman and CEO, commented:

“The Starter Pit fulfils its purpose with distinction; establishing a low-cost long-life mining operation which achieves an early payback on life of

mine infrastructure expenditure and provides access to underground ore sources for future mining operations.”

Bawdwin Joint Venture Resource Layout (Credit: Myanmar Metals)

Processing will be trough the convectional milling, sulphide floatation and filtration techniques with dry stack tailings to generate a target of 80Ktpa

zinc and 180Ktpa lead, silver concentrates. This John Lamb led lead/silver/zinc gem will definitely put Myanmar's mining industry back on rack and

potentially unlock some key investment.

Some of the striking financial outcomes of the Starter Pit project are as indicated below;

JORC Probable Ore Reserve of 18.4 Mt at 6.4% lead, 169 g/t silver and 3.4% zinc.

NPV US$580 Million (8% Real Discount Rate -100%Basis)

Internal Rate of Return (IRR)- 30%

Payback Period - 4years

Capital Expenditure- US$ 267 Million (with US$33 Million contingency)

Operating Costs: US$108/t processed



53

The

MINING EXECUTIVE


NORTH AMERICA

Delivering

Solid Financial Performance:

THE AGNICO EAGLE WAY

Agnico Eagle Mines Limited has

grown from a small, single mine gold

producer to a multi-mine

international gold mining company under the

watchful eye of Sean Boyd since his

appointment as CEO in 1998 and it comes as

no surprise that the company has managed to

set a consistent pattern of delivering immense

shareholder value.

The company has been handily beating

earnings expectations with an organic growth

over the years and as the gold prices edged

higher in 2019, the company saw its

performance reaching strong financial

performance that can wither its competitors in

its category with admiration as the company

rebuild its cash chest.

"With the expectation of growing production

and strong free cash flow generation, we are

in a good position to continue to invest in our

project pipeline, improve our financial

flexibility and grow our dividend. We are

pleased to announce a 40 percent increase in

our quarterly dividend."

Sean Boyd,


Agnico Eagle Mines Limited

During the end of the second financial quarter

of 2019, the company published its quarterly

net income of $27.8 million which included

non-cash foreign currency translation gains

on deferred tax liabilities of $5.9 million,

derivative gains on financial instruments,

mark-to-market and other adjustments of $3.3

million and non-cash foreign currency

translation losses of $4.1 million. Excluding

these items would result in adjusted net

income1 of $22.7 million or $0.10 per share

for the second quarter of 2019. In the second

quarter of 2018, the Company reported net

income of $5.0 million.

Included in the second quarter of 2019 net

income, and not adjusted above, a non-cash

stock option expense of $3.3 million. In these

first six months of 2019, the Company

reported a net income of $64.8 million. This

demonstrated a strong positive movement

compared with the first six months of 2018

when net income was $49.9 million.

Agnico Eagle attribute the increase in net

income in the first six months of 2019

compared to the prior year period to lower

amortization and income and, mining taxes,

partially offset by lower gold sales volume. In

the second quarter of 2019, cash provided by

operating activities was $126.3 million

($157.3 million before changes in non-cash

components of working capital), as compared

with the second quarter of 2018 when cash

provided by operating activities was $120.1

million ($159.5 million before changes in

non-cash components of working capital).

In the first six months of 2019, cash provided

by operating activities was $275.0 million

($328.1 million before changes in non-cash

components of working capital), a significant

decrease compared to the first six months of

2018 when cash provided by operating

activities was $327.8 million ($340.1 million

before changes in non-cash components of

working capital). Agnico Eagle cites this

decrease to lower gold sales volumes,

partially offset by higher realized gold prices

and higher by-product revenue.



Lower gold sales were mainly as a result of

the expected lower gold production in the

period due to reduced throughput levels at

Meadowbank and mill shutdowns at LaRonde

and Kittila.

54

The

MINING EXECUTIVE


Sean Boyd, Agnico Eagle Chairman and

Chief Executive Officer said, "The second

quarter of 2019 was another period of strong

operating performance with production and

costs tracking well with guidance. One of the

key highlights in the quarter was the

declaration of commercial production at our

Meliadine mine in Nunavut", He further

elaborated ,"With Meliadine ramping up to

full production over the balance of the year

and Amaruq on schedule to achieve

commercial production in the third quarter of

2019, the Company is well positioned for a

strong second half from both a financial and

operational perspective".

Payable gold production in the second quarter

of 2019 was 412,315 ounces at production

costs per ounce of $735, total cash costs per

ounce of $652 and all-in sustaining costs per

ounce of $953. The company set production

and cost guidance for 2019 at 1.75 million

ounces, total cash costs per ounce and AISC

per ounce in the range of $620 to $670 and

$875 and $925, respectively. The company

increased its capital budget for 2019 to $750

million from previous guidance of $660

million citing lower pre-commercial gold

sales credited against capital at Meliadine, the

advancement of the Amaruq underground

development program and accelerated

spending on the Meliadine saline water

treatment system.

With solid financial performance setting tone

in the first and second quarter, Agnico Eagle

has gone to seal its performance record with a

quarterly net income of $76.7 million for the

third quarter of 2019. This result includes

non-cash foreign currency translation losses

on deferred tax liabilities and non-recurring

tax adjustments of $8.3 million, derivative

losses on financial instruments, mark-tomarket

and other adjustments of $3.8 million

and non-cash foreign currency translation

gains of $1.3 million. Excluding these items

would result in adjusted net income of $87.5

million for the third quarter of 2019. In the

third quarter of 2018, the Company reported

net income of $17.1 million.

Included in the third quarter of 2019 net

income, and not adjusted above, is non-cash

stock option expense of $3.4 million. In the

first nine months of 2019, the Company has

reported net income of $141.5 million. This

compares with the first nine months of 2018,

when net income was $67.0 million. In the

third quarter of 2019, cash provided by

operating activities was a record $349.2


non-cash components of working capital), as

compared to the third quarter of 2018 when

cash provided by operating activities was

$137.6 million ($155.0 million before changes

in non-cash components of working capital).

In the first nine months of 2019, cash

provided by operating activities was $624.2


non-cash components of working capital), as

compared to the first nine months of 2018

when cash provided by operating activities

was $465.4 million ($495.1 million before

changes in non-cash components of working

capital).



55

The

MINING EXECUTIVE


The increase in net income and in cash provided by operating

activities during the third quarter of 2019 compared to the prior year

period was mainly due to higher gold sales volumes and higher

realized gold prices, partially offset by the contribution of production

costs from Meliadine, which achieved commercial production in May

2019. Higher gold sales were primarily driven by the contribution of

a full quarter of commercial production from the Meliadine mine,

partially offset by expected lower throughput levels at Meadowbank

as the mine transitioned to the Amaruq satellite deposit.

Third quarter of 2019 highlights included:

·Record quarterly gold production – Payable gold production in the

third quarter of 2019 was 476,937 ounces (including pre-commercial

production ounces of 33,134 ounces at Amaruq) at production costs

per ounce of $713, total cash costs per ounce of $653 and all-in

sustaining costs per ounce of $903. Production costs, total cash costs

per ounce and AISC per ounce exclude the pre-commercial production

ounces at Amaruq

·A return to free cash flow generation in the third quarter of 2019

– In 2017, the Company embarked on the largest capital spending

program in its history in order to build two new mines in Nunavut.

That construction program came to an end in the third quarter of 2019

with the declaration of commercial production at Amaruq. This

contributed to a substantial increase in free cash flow generation

·Amaruq declared commercial production on September 30, 2019

– Total pre-commercial ounces of gold produced were 35,281

(including 2,147 ounces in the second quarter of 2019). Total capital

costs for the development of Amaruq were approximately $397

million, which is above the most recent forecast of $350 to $370

million primarily due to the timing of commercial production.

Operations continue to ramp up and production at the Meadowbank

Complex for 2019 (including pre-commercial production) is expected

to be approximately 200,000 ounces of gold

·Production guidance increased for 2019 – Total production for

2019 is now expected to be 1.77 to 1.78 million ounces of gold

(including pre-commercial production from Meliadine and Amaruq),

which is a slight increase from the previous guidance of 1.75 million

ounces of gold. The Company anticipates that total cash costs per

ounce and AISC per ounce for 2019 will continue to be in the range of

$620 to $670 and $875 and $925, respectively

·Dividend increased by 40% – A quarterly dividend of $0.175 per

share has been declared. The previous quarterly dividend was $0.125

per share.

"With record performance at several of our operations and the ongoing

ramp up of our two new mines in Nunavut, we achieved record

quarterly gold production in the third quarter of 2019. As expected,

this strong result, combined with the completion of the extensive

construction spending program in Nunavut, resulted in the generation

of substantial free cash flow in the quarter," indicated Mr Boyd.

It remain to be seen if the company managed to ensure a streak of

great performance for all the quarters of the 2019 year and the plans

the company has for 2020. One thing remains apparent, there is the

Agnico eagle way of delivering.



56

The

MINING EXECUTIVE




57

The

MINING EXECUTIVE


SOUTH AMERICA

Operation Focus:

Anglo American-

Quellaveco Mine

Mark Cutifani -

CEO AngloAmerican Plc

( Photo Credit: AngloAmerican)



58

The

MINING EXECUTIVE


“We see significant potential to

expand Quellaveco beyond its

current 30-year reserve life as well

as to increase throughput above

the initial capacity of 127,500

tonnes (140,500 tons) per day.”

Mark Cutifani

Chief Executive, Anglo

American

Expected Investment

Operating Cost

Reserves

Workforce

Life

:US$5.3 Billion with partner Mitsubishi

:US$1.05/pound of copper produced

:1.3 Billion tones containing 7.5 Million Tons of Copper

:9000 during development and about 2500 in Operation Phase

: About 30 Years

Anglo American-Quellaveco Mine (Credit AngloAmerican)

Building a world-class mine in one of the largest undeveloped

resource with enough copper to wire 90 Million vehicles or 80

Million homes, Quellaveco mine located in the Moquegua

region of in Peru will become another flagship mine of modern copper

mining.



Anglo American-Quellaveco Mine location

59

The

MINING EXECUTIVE


By the time production reaches its peak,

AngloAmerican will have owned the ore

body for nearly 30 years, spent more than 15

years laying the groundwork, invested

millions of dollars, and made thousands of

decisions necessary to get the mine up and

running. Anglo believe that this attention to

detail and commitment to preparation will

allow the mine not only to succeed but to

exceed expectations. The project is expected

to go into production in time and on budget,

with first copper production during 2022.

In fact, before the first copper ore is extracted

from the mine, the company is already

thinking ahead. “We see significant potential

to expand Quellaveco beyond its current 30-

year reserve life as well as to increase

throughput above the initial capacity of

127,500 tonnes (140,500 tons) per day,” says

Anglo American Chief Executive Mark

Cutifani.

Ore reserves sits at 1.3 Billion tonnes at an

average grade of 0.57% 9 tcu (tons copper)

producing 300,000 tonnes of copper

equivalent per year in the first 10 years of

operation. The project will yield >20% return

on capital employed, above 50% EBITDA

margin and a highly competitive 1st quartile

cost position.

Social Responsibility

The project has supported local social

programmes and initiatives including

Progresa Moquegua and Emerge Peru.

By 2019, the project aims to have trained

more than 900 small businesses in local

procurement methodologies and practices and

have 400 local entrepreneurs supported by its

social programmes.



60



61

MINING

ASSETS AND

INFRASTRUCTURE



62

The

MINING EXECUTIVE


Energy

Stuart Mathews: Gold field's Agnew

Mine powers up its 23 megawatt aud$112

million hybrid renewable project.

Picture: Supplied)

Gold Fields has opened its $112 million hybrid renewable project at the Agnew

gold mine in Goldfields, Western Australia. Global distributed energy

producer EDL has switched on its 23-megawatt power station that integrates

four megawatts photovoltaic solar with 16 megawatts gas and three megawatts diesel

generation, to power the Agnew mine. CIt will also incorporate other renewable

energy technologies in stage two of the project.



63

The

MINING EXECUTIVE


James Harman EDL

Chief Executive

EDL Chief Executive James

Harman said the two companies

are leading the way towards clean,

renewable energy to power

remote, off-grid mining operations

without compromising reliability

or power quality.

Gold Fields executive vice

president, Australasia Stuart

Mathews added the company was

hopeful this would enable other

companies to consider the options

for decarbonising their operations.



64

Stuart Mathews

Gold Fields Executive Vice President, Australasia

“This is a significant milestone for both the Agnew gold mine

and the broader Gold Fields Group, demonstrating our ongoing

commitment to strengthening our energy security, optimising

energy costs and reducing our carbon footprint through the

adoption of new technologies,” Mathews said.

The McGowan Government is supportive of mining companies

that are embracing renewable energy solutions, particularly

when it helps reduce their carbon emissions, according to

Western Australian Minister for Mines and Petroleum, Energy

and Industrial Relations Bill Johnston.

“This innovative, Australian-first project is setting the standard

for mine sites throughout Western Australia,” he says.

The second stage of the project, which is backed by a $13.5

million funding from the Australian Renewable Energy Agency,

will include 18 megawatts wind generation, a 13-megawatt

battery and an advanced micro-grid control system. This is

under construction and due for completion mid-next year. Once

completed, the project will provide the Agnew mine with more

than 50 per cent renewable energy over the next 10 years.



65

The

MINING EXECUTIVE


Original Equipment

Manufacturers

(OEM)

Pekka Vauramo

Metso to deliver freeze -

proofed crushing and

screening plants to Antarctica –

operating temperature as

low as -40 °C.

Pekka Vauramo, President and

CEO- Metso Minerals (picture:Metso)

Alengthy journey of the three Metso Lokotrack® crushing and

screening plants from Finland to Antarctica has started. The

three plants that have been retrofitted for extreme cold are on

their way for the reconstruction of the U.S. National Science

Foundation's (NSF) McMurdo research station in extremely cold and

freezing Antarctica region. So equipped is the equipment that it can

crush normally in temperatures as low as -40 °C.

The McMurdo Station is located on an island in the Ross Sea and is

the U.S. Antarctic Program's logistics hub and the largest of the three

stations that the U.S. operates in Antarctica. McMurdo is being rebuilt

under the Antarctic Infrastructure and Modernization for Science

(AIMS) project, a long-range initiative to upgrade the station to make

it logistically and energy efficient.

Metso' equipment will be used for three years in crushing the ground

materials for the new buildings. All in all, this will amount to more

than 126,000 cubic meters of aggregates.

In the extreme conditions of Antarctica, the equipment can only be

used during the Southern Hemisphere summer, which lasts from

October to April. The hard basalt to be crushed will come from an

area near the station.



66

The freezer-equipped Lokotrack LT106 jaw crusher (source:metso)

David DesAutels (left) of the edition, Rick Sack of

Wagner Equipment and Marko Salonen of Metso (source:metso)

Development work for protection against

cold, packaging materials with consideration

for the environment.

The equipment to be delivered to Antarctica –

the Lokotrack LT106 jaw crusher plant, the

LT200HP cone crusher and the ST3.8 mobile

screen – are all retrofitted for extreme cold. In

addition, the mechanics at Metso's

Technology Center for track-mounted

equipment in Tampere, Finland have also

developed additional protections for the

equipment.

“Every part sensitive to cold has been fitted

with immersion heaters and extra insulation.

The selected oils and other fluids are suitable

for the Antarctic climate and the specially

manufactured conveyor belts run even in

extremely cold weather,” says Marko

Salonen, Project Manager at Metso's

Aggregates Equipment business area.

“Alongside the equipment, we also prepared

the maintenance and spare parts service in

such a way that everything conceivable can

be anticipated and serviced independently on

site. Even the packaging materials were

chosen in a way that ensured that nothing

unnecessary would be transported to the

unique Antarctic environment,”



adds Salonen.

Production target 250 tons of crushed stone

an hour. As they oversee the AIMS project,

Leidos intends to operate the machines for

two months after their arrival in 2020, before

ceasing operations for the winter.

“We aim to work 16 hours a day and produce

250 tons of 63 mm crushed stone per hour,”

said Jeffrey Huffman, Leidos Antarctic

Support Contract operations manager. “We

also want to include some degree of fines, to

gain more compact material for the buildings'

foundations.”

67

The

MINING EXECUTIVE


An international team working on equipment testing at the Tampere plant (source:metso)

The crushing plants began their

long journey, spanning nearly the

entire globe, at the beginning of

October.

From Finland, the equipment was

shipped to Germany and from

there to Port Hueneme,

California, from where it will

travel onward to Antarctica via

Christchurch, New Zealand.

The final leg of the journey will

be led by an icebreaker, followed

by two vessels carrying a total of

35 earthwork machines. The

cargo is expected to reach the

McMurdo harbor at the beginning

of February next year.

www.metso.com



68

The

MINING EXECUTIVE


Caterpillar

A peak into how certified rebuilds saves customers

money and unlock value in operational continuity.

Caterpillar D9T Dozer Rebuild (source: caterpillar)

Since 1984, the Cat Certified Rebuild Program has certified over 25,000 machine,

power train, commercial engine, hydraulic and component rebuilds across the

globe and it's only getting started.

Here's how it all got started and why

the Program is only

getting better

with time…



69

The

MINING EXECUTIVE


Introducing A New

Way to Upgrade

hen hard economic conditions hit

Wduring the 1980's, many customers

who needed to upgrade their Cat

machines simply didn't have the resources to

purchase new equipment. But at the time,

buying new was their only option. After

hearing the voice of the customer and

realizing this gap, Caterpillar worked with our

dealers to develop the Cat Certified Rebuild

Program. (Fun fact! The Program celebrates

its 35th anniversary next year!)

In addition, trained dealer service

professionals perform this work using genuine

equipment and parts. Caterpillar provides

information, data, training and service tools to

help dealers make the most appropriate

decisions on which parts to reuse in order to

achieve expected longevity of rebuilt

components. Reuse of components helps us

use materials and energy more efficiently.

The remanufacturing and rebuild programs

allow customers to maximize the built-in

value of their equipment by:

Ensuring maximum productivity

Increasing reliability and equipment uptime

Ensuring cost-effective performance

Receiving a like-new warranty

Increasing the customer's return on their

investment

Providing the customer with a variety of

repair options to meet their service needs

Providing the customer with a higher resale

value

Providing the lowest total owning and

operating life cycle costs

hen hard economic conditions hit

Wduring the 1980's, many customers

who needed to upgrade their Cat

machines simply didn't have the resources to

purchase new equipment. But at the time,

buying new was their only option. After

hearing the voice of the customer and

realizing this gap, Caterpillar worked with our

dealers to develop the Cat Certified Rebuild

Program. (Fun fact! The Program celebrates

its 35th anniversary next year!)

Preserving the majority of energy and

materials required to make the original

component or machine

Rebuilding highlights the many lives of

caterpillar machines. “Caterpillar was one of

the first heavy equipment manufacturers to

provide this type of customer option that

highlights the multiple lives built into Cat

products,” said John Baptiste, Project

Engineer - Cat Certified Rebuild Products.

“The Cat Certified Rebuild Program is

designed to provide customers with rebuilt

machines that perform, look and even smell

brand new. Rebuilding their current machine

fulfils the customer's need for updated

equipment for a fraction of the cost of new.”

The program continues to progress to meet

our customers' changing needs and highlight

the Cat dealer network's outstanding service

capabilities.

Rebuild programs increase the lifespan of

equipment by providing customers with

product updates for a fraction of the cost of

buying a new machine. Rebuild programs

include Cat® Certified Rebuilds, component

overhauls at Cat® dealers, Solar Turbines

rebuilds and Progress Rail Services rebuilds.

A complete Cat Certified Rebuild includes

more than 350 tests and inspections,

automatic replacement of approximately

7,000 parts and a like-new machine warranty.



70

The

MINING EXECUTIVE


Today, the program offers rebuild

services for complete machines,

machine power trains, machine

components, hydraulic system and

commercial engine rebuilds.

Dealers receive a list of parts (defined by program standards) that

must be inspected and/or replaced. They also receive engineering

updates and machine enhancements that can add capabilities the

machine didn't have when it was new.

Over the years the program has evolved to meet shifting

customer needs, including in 2001 with the addition of Cat

Certified Power Train. This was designed for customers

with smaller machines and involves rebuilds from the

radiator to the axles to enable performance.



71

The

MINING EXECUTIVE


BMT's new software v3.6, aiding the interface between

precision and production due to misclassification.

With the many challenges that Iron

Ore and Porphyry Copper mines

face to determine the most effective

blast de-sign and develop the most effective

ore recovery, BMT's BMM system is

becoming the most globally trusted sys-tem;

the go-to system that supports ore polygon

data and the blast, the most chaotic event in a

heterogenous envi-ronment. Up until now the

system has been effectively working in

commodities that are hard rock, narrow vein

in nature and/or experience high loss and

dilution due to an unknown or highly variable

movement. As a company heavily focused on

R&D, BMT continues to map out ways their

system can be incorporated into other mining

digiti-sation plans.

Offering solutions for other commodities and

operational limitations that challenge the

ability to uti-lise this specialised system are

constantly being considered. Most recently

BMT released the Flight Enabled Detec-tor to,

amongst other benefits, remove the restriction

some mine sites impose on accessing the

muck pile post-blast. This new hardware

product has opened-up the ability to employ

the BMM system at Tier 1 companies that

most often regulate this muck pile restriction.

On the software front, time and research has

been spent tailoring the systems algorithms to

also address a soft bulk ore polygon module,

where mines are experiencing economic

challenges based around misclassification.

Our soon to be released BMM Explorer v3.6

will now also offer the ability to detect

varying grades of ore and update dig lines

accordingly. The importance of this improved

grade control allows mine sites to adhere to

the incredibly stringent specifications imposed

by iron ore customers, and thus avoiding the

harsh penalties for shipping a prod-uct that is

below spec, or the financial loss that the mine

would incur if the product is shipped above

spec.

Misclassification is a major issue for such

commodities as iron ore, porphyry copper,

and many more.

BMT carried out a short trial at an Australian Iron Ore site with the

aim to minimize misclassification of material, as a direct re-sult of

blast movement. In the diagram, Fig. 2, the green shows the variation

from its in-situ location, ignoring blast movement (as was the current

practice at this particular mine), then there could be as much as 12% or

31,000 tonnes of misclassification, or ore ending up at the incorrect

downstream location.

The abil-ity to calculate this through the new BMM software will

inher-ently improve mine performance and offer a more accurate calculation

for the mining team to work with. General Release of the new

BMM Explorer v3.6 is scheduled for the start of 2020. There will very

soon be updates to this calculation to include the implications of

mixing material based on not only Fe% but also; SiO2, Al2O3, P, Mn,

LOI, S, TiO2, MgO and CaO to name a few.



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Communication

Jeremy Hanrahan

MST Global announces major

improvement to underground

communications with all-in-one

network solution

Say goodbye to handheld radio,

WELCOME

to

CORTEX UNDERGROUND

SMARTPHONE

“MST customers will now have a full-featured

underground telecommunications solution

that integrates with their existing

surface telecommunications network,”

Jeremy Hanrahan

Software Product Manager

MST Global.



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Mineral extraction from underground

settings present some of the

harshest operating conditions, a

situation that takes delicate skills for seasoned

operators to navigate smoothly.

Underground mining communications

technology is fast evolving, a move that has

tremendously improved performance of

mining operations as well as safety. MST

Global, recently announced the upcoming

release of their new smartphone and network

solution, Cortex. The phone and network will

be used as the primary communication

solution for harsh underground environments.

MST will become the first communications

provider to implement the total solution

methodology underground.

“Our Cortex solution also works seamlessly

with Wi-Fi and LTE networks, meaning our

customers no longer need products from

multiple suppliers for their phone, radio, datanetwork

and VIOP applications,” said Jeremy

Hanrahan, Software Product Manager, MST

Global.

“We used our extensive experience with

underground mining and tunnelling

operations to develop this solution. The

battery life will outlast a shift

underground, the smart-phone is easy to

use and there is specific industry

functionality of push-to-talk. This simple,

single device is easy to deploy and train

staff to use,” said

Keep in touch with personnel by sending messages or calling

Locate employees underground using personnel tracking

Broadcast communication to send instructions quickly and easily

Man-down feature that help personnel in duress

Smart-phone application capability

By bringing together the complete telecommunications solution it is easy to manage and support,

with the additional benefit of not being locked into fluctuating carrier rates. Cortex is part of the

new MST Underground Communications Network Solution which is delivered as a complete

commercial package for small, medium and large operations.

MST Global specializes in harsh industrial technology that empowers customers to unearth safety

and productivity improvements. Since 1989 MST has consistently delivered innovative solutions

that do not only address the needs of customers today, but also address their future needs.

MST Solutions:

Smart Network Infrastructure

Safety & Tracking

Voice & Emergency Communications

Workflow Management Software

Operational Intelligence Software

Control & Automation Software

If your goal is to achieve operational excellence across mining, tunnelling, remote construction or

in a quarry we are here to help you.



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MINING

FUTURE



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Mining Innovation

Helena Hedblom

A partnership to deliver blast automation

straight from the source of everything that

matters in mining particle size distribution

control.

Helena Hedblom -

Epiroc Senior Executive Vice President

Mining and Infrastructure (source: Epiroc)

“This promising collaboration with Orica is an important first step on an exciting journey toward automating

the whole drilling and explosives charging process. It is a vital part of both Epiroc's and Orica's vision of

making the mining operation as safe, productive and cost efficient as possible.”



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Mining process optimization can never get

any better unless the companies and

individuals involved in primary product

formulations and designs come together and

draw a line on how clients can benefit on an

end to end business value chain.

Up until recently most companies supplying

the mining industry with products or

equipment have been trying to optimize the

performance of their products in isolation, a

feat that produce good results in one phase of

the operation but not necessarily in the

integrated circuits.

“Individually optimized segments

of an operation or system do not

necessarily result in a fully

optimized end to end mining value

chain”

“Individually optimized segments

of an operation or system do not

necessarily result in a fully

optimized end to end mining value

chain”

As a first step to unlock some of this value

addition, Orica and Epiroc, companies that

are heavily dependent on each other when it

comes to how their products are applied in the

field by clients have decided to join hands and

unleash a value addition first. The Orica and

Epiroc automation partnership aims to

redefine underground drill and blast

operations.

The two companies will jointly develop a

semi-automated explosives delivery system,

enabling safer and more productive blasting

operations in underground mines. As mines

go deeper and ore bodies become more

remote, the case for blasting automation

becomes clearer.

Angus Melbourne

Orica Chief Commercial and Technology

Officer

Epiroc Senior Executive Vice President

Mining and Infrastructure Helena Hedblom

said, “This promising collaboration with Orica

is an important first step on an exciting

journey toward automating the whole drilling

and explosives charging process. It is a vital

part of both Epiroc's and Orica's vision of

making the mining operation as safe,

productive and cost efficient as possible.”

Orica and Epiroc are the ideal partners to

optimise the explosives charging process for

underground mining. Orica is the world's

largest provider of commercial explosives and

innovative blasting systems to the mining,

quarrying, oil and gas and construction

markets, and Epiroc is the industry leader in

developing innovative underground mining

equipment, including face drill rigs and

production drill rigs.

The first prototype system is expected in 2020,

with the first commercially available systems

to enter service in 2021.

The partnership will bring together the deep

expertise and experience of two global

industry leaders to address the growing

demand from customers mining in

increasingly more hazardous and challenging

underground operations.

“This exciting partnership with Epiroc

will allow us to leverage our exclusive

wireless initiating system, WebGen, to

deliver the critical first steps towards the

automation of drill and blast operations.

Automation is a key pillar of our

technology strategy and supports our

vision of transforming drill and blast to

unlock mining value by creating safer and

more sustainable operations.”



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Mining Technology

Komatsu P&H4800XPC-

A beast in the mining load and haul

fraternity has been unleashed

ROBUST AND

STABLE DESIGN

Robust and Stable Design: That is how the

new Komatsu 4800XPC can be likened to

when it comes to versatility and ease with it

can execute work. From its ultra-rugged

lower works to their spacious machinery

decks and classic, twin-leg style handleand-dipper

configuration, the P&H 4800 XPC

electric rope shovel is part of the family of

shovels that have earned a place as a

preferred loading tool for high-production,

high-efficiency mine operations. Its position

will even be more consolidated.

Komatsu P&H 4800XPC shovel in action at

Teck's Fording River Mine ( picture: Jason Wood)



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P&H electric shovels are designed and built to help mines

move more material at a lower cost per ton. Equipped with a

nominal payload of 122.5 metric tonnes (mt), dipper

capacity of 65.7 to 70.3 m3 (86 to 92 yd.3), adaptive

controls technology, direct-drive crowd with integral fleeting

sheave to help eliminate boom jacking and optimized boom

design for improved maintenance access, the loading beast

will take its rightful place and give Komatsu a huge edge

over its competitors.

The P&H 4800 is so good that it can easily load in threepasses

a 360mt ultra-class haul truck. The 4800XPC, when

compared to its predecessor, the 4100XPC, offers up to 20%

increase in production and up to 10% decrease in cost per

ton.

It took a journey to get the monstrous machine running with

Komatsu working to establishing a new facility for its

Western Canada supply missions at a staggering value of

$40 Million dollars down in Sparwood, British Columbia.

The shovel eventually found its way to Fording River

Operations, located about 29 km northeast of the community

of Elkford, British Columbia. Being one of Teck's, Fording

River produces steelmaking.

The mine targets an annual production of 9.0 Mt with Life of

Mine at Fording River projected beyond 43 years. “So very

proud of the Fording River team on the commissioning of

the world's first P&H 4800 XPC Shovel. Thrilled to have

this addition to our fleet. First ever 3 pass loading of an

ultra-class haul truck,” Jason Wood, Fording River Manager

of Operations was quoted saying.



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Specifications

Working on a range of height of cut

of up to 19m within a radius of

24m, the 4800XPC also offers a

maximum dump reach of 19.4m, with a

dumping height of 10.8m. The machine offers

an operator eye level of 10.1m, tail swing

radius of 16.2m and floor level radius of

16.2m. The machine comes in 15.2m in

length, a width of 15.0m, and a height of

14.7m (over the gantry)

Mechanical Versatility

The digging machine readily has a full

suite of service products and

consumables available, including wire

rope, GET, crawler shoes and more with

mechanical upgrades, repair and rebuild

services are available worldwide. According

to Komatsu, “Our focus on modular

component design means more efficient

maintenance and upgradability. This emphasis

on ease-of-maintenance, combined with the

traditionally rugged P&H mechanical systems

and increasingly smart, fast control systems,

translates into some of the most reliable,

productive loading machines in the mining

industry today”

The direct-drive crowd with integral fleeting

sheave on the machine reduces maintenance

costs and helps eliminate boom jacking whilst

optimized boom design with stabilized handle

geometry improves dipper manoeuvrability

and maintenance access. The enhanced ring

gear resists fatigue and accommodates

increased payload. It comes with:

A wide twin-leg handle for

stability through the dig cycle.

A geometry optimized for

fatigue resistance in shock

and high-load conditions.

Maximized cutting forces for

improved fill factors and cycle

times.

Komatsu describes the machine as a reliable

machine of high availability which can

consistently achieve over 90% mechanical

availability with proven mining duty motors

and gearboxes for extended component lives

and a structural design that uses high-strength,

low-alloy steels for improved fatigue lives. It

has rugged components that includes dualhoist

motors for balanced and evenly

distributed loads, DELTA drive for improved

shoe-to-tumbler engagement, and planetary

transmissions with proven long life on swing

and propel (over 20 million hours logged).

The digging unit comes with highly precise

motor controls due to the existence of rugged

centurion-based compact-design ABB drives,

direct torque control with the best dynamic

performance, AC drives that are compact, aircooled,

and modular, maintenance-friendly

modules that are easy to replace, monitored

and controlled neural network of over 500 I/O

nodes, using fast, high-capacity Profibus fiberoptic

cable network and optimized shovel

performance for maximum production rates.

The PreVail remote health management

(RHM) system provides timely and efficient

machine health and performance data. The

PreVail RHM system taps into the powerful

communication, command, and control

capabilities of the shovel's electrical control

system, transforming the data into valuable

knowledge, including KPI (key performance

indicator) dashboards, graphical analysis

tools, predictive modeling, and reporting

tools.

There is

no

shadow

of a

doubt

that the

Efficiency and

Operator Comfort

he rresponsive control system offers

Tthe operator confidence throughout the

digging cycles. The clean graphical

user interface displays shovel systems

operation and health information whilst the

high visibility enabled and efficient sight lines

with refined ergonomics (adjustable heated

seat, massage controls, adjustable lumbar

support, and two-position footrest) improve

operator effectiveness and reduce fatigue.

So well ergonomically designed is the

operator cabin that loading control joysticks,

brake and propel transfer functions are easily

at operator's fingertips, and dipper trip and

signal horn trigger switches reduce operator

fatigue and repetitive strains.

Filtered air comes through the house

pressurization system for cooling and dust

repression. The P&H 4800XPC just like its

family members features hand-operated hoist,

crowd, swing and propel control joysticks

feature thumb-actuated auxiliary switches for

siren, dipper trip functions. There is also

convenient access to shovel control buttons,

switches mounted to the left, right consoles

flanking operator. Safety of the operator is

enhanced by the modular counterweight and

boarding stairs which are also easy to

assemble and disassemble.

The included Mine Air Systems (MAS)

climate control system provides air

conditioning, heating, air filtration, and

pressurization for your electric mining shovel.

The design takes into account careful thought

on modular design for unmatched change-out

speed and convenience, unique weather-sealed

roof-plate eliminates dust and water leaks into

the cab and electrical room, stainless steel

construction, designed specifically for ozone

friendly R-407C refrigerant, high-efficiency

air filters to suit each application, industrialsized

extra-efficient filter/pressuriser with air

pre-cleaner, smooth and quiet scrolltechnology

compressor and enhanced dipper

design which provides improved bank

penetration and higher payload-to-weight

ratio.

Komatsu P&H4800XPC

is a beast in the mining load and

haul fraternity and it has been unleashed.



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Mining Data

Mining Education: Australia's Future workforce

needs as First qualification in Autonomous Control and

Remote operations is Launched.

The massive growth of the mining industry has put a strain on

the education sector to try and address the low intake in

numbers for students currently being experienced. In a move

that has had companies taking the training and skills development of

their future needs into their own hands, curriculums have been and are

being developed to try and address the future workforce needs. A

Bachelor of Engineering degree alone will get to a point where if the

current structures remain in place will not be adequate as companies

integrate technologies that require some new skills.

The courses have been developed over the last year and are now

accredited by the Training Accreditation Council (WA).

The Certificate II in Autonomous Workplace Operations has been

introduced to Technical and Further Education (TAFE) curriculum and

piloted by a group of Rio Tinto's iron ore workforce. The courses are

also targeted for Year 11 and 12 students in selected high schools

across the Western Australian state. A Working Effectively in an

Automated Workplace micro-credential course for trade-qualified,

apprentices and technicians will also be available.

Powering into the future mining companies look to driverless vehicles

for efficiency and safety improvements at their operations, In April

2018, the State Government partnered with Rio Tinto to begin

development of Australia's first dedicated qualifications in automation.

A career in Engineering Design and Automation offers the opportunity

to work in a field that is challenging, interesting, in-demand and wellpaid.

These exciting changes are already affecting employment

prospects - and the workforce of tomorrow. A career in Design and

Automation Engineering will see one working at the forefront of

rapidly evolving technologies with opportunities in many industries.

This was a good start, but as big Pilbara mines continue surging

forward with driverless trucks and train technologies, the Autonomous

Haulage Systems, there is need for more. Enters the Certificate II in

Autonomous Workplace Operation and the Course in Working

Effectively in an Automation Workplace.

These define Australia's first nationally recognised qualifications in

automation, providing workers in the resources sector and others

looking to join it, with the skills and knowledge needed to succeed in

the rapidly changing automation mining environment.So much about

these courses defines the state of future mining with underground

mining already using the remote operations systems, there is need to

start integrating the core concepts of these courses even at degree

elevel.

“This is a great example of industry working in partnership with

government to ensure our training sector creates a highly skilled

workforce. These new courses will allow us to maintain our

competitive advantage as a leader in automation technology in

Australia and ensure local people have the skills for the new jobs that

are being created through technological innovation. They will also

ensure the diversification of our economy and help Western

Australians assist the mining industry well into the future,” WA

Premier Mark McGowan was quoted saying in June 2019 when the

course was unveiled.

The Certificate IV in Autonomous Control and Remote Operations, a

pilot project is set to begin in 2020 with about 30 Rio Tinto employees

and has just gotten national recognition by the Western Australia

Resource Industry Collaboration. The course will provide the skills

needed to work at Rio Tinto's Remote Operations Centre in Perth. If

the pilot is successful, the first Certificate IV course may start in 2021

to all external stakeholders.

“With more than $108 billion in major projects in the pipeline across

the WA resources sector, it is fundamentally important that companies

can access the right skills, in the right locations, at the right time,”

Chamber of Minerals and Energy of Western Australia's (CME) Chief

Executive Paul Everingham was quoted saying on the announcement

of a Skills Organisation Pilot would ensure trainees and apprentices

had the relevant skills to match the needs of employers in the mining

and energy sector. ”The value proposition is clear and the flow-on

benefits to local communities immense, if we can get this right.”

It remains to be seen how other institutions will adjust their education

curriculums to suit the demands placed upon them by the mining

industry.

Rio Tinto's West Angelas iron ore mine in the Pilbara (photo Ian Waldie)



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Exploration

Mitch Hunter-Scullion

Asteroid mining technology, are we anywhere close?

The transition causing nightmares for space explorers.

A wave of space focused

mining exploration

investments has been created

and like never before, the

race is on, not to peg claims

of vast resource rich tracks of

lands but for huge clusters of

rich rocks scattered across the

universe. Top 5 space players

spent over US$74 Billion only

in 2016 exploring the universe

with USA leading at US$48

Billion, China US$11 Billion,

Europe US$ 7 Billion, Russia

US$ 4 Billion. USA recently

announced its intention to

develop a Space Force, a

move that is set to cement and

accelerate space investment.

Mitch Hunter-Scullion:

CEO Asteroid Mining Corporation (picture AMC)



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he space industry is globally estimated

Tto be a US$300 Billion market and is

expected to triple that in the next 10

years. Space resources are expected to create

major socio-economic benefits in many areas,

including GDP impacts, employment creation

as well as market and technology spillovers in

several technical domains such as data

analytics, materials science, additive

manufacturing and robotics.

The current rupture within the space industry

in reusable space technology especially

rockets coupled by the growth of the global

population, predicted to be nearly 10 Billion

by 2050 has created streams of interest in the

possibility of us mining from above the earth

in the near future. With current deposits

getting deeper, poorer in grades, narrower and

more challenging to extract, the possibility of

going up for minerals resources is becoming

more real especially where universe

exploration is concerned.

The fragility of our planet and our dwindling

resources have led to governments and

companies looking for alternative resources.

A wave of space focused mining exploration

investments has been created and like never

before, the race is on, not to peg claims of

vast resource rich tracks of lands but for huge

clusters of rich rocks scattered across the

universe. Top 5 space players spent over

US$74 Billion only in 2016 exploring the

universe with USA leading at US$48 Billion,

China US$11 Billion, Europe US$ 7 Billion,

Russia US$ 4 Billion.

USA recently announced its intention to

develop a Space Force, a move that is set to

cement and accelerate space investment.

"Up until now; looking for metals elsewhere

has meant going to more environmentally

fragile regions of the world; the arctic, the

rainforest, under the sea. But in space, there

are resources beyond our wildest dreams,"

BomaGlobal, an organization that delivers

transformational experiences that make

positive change actionable and accessible was

once quoted.

For one company, Astroid Mining

Corporation, this is a venture that has so

much potential and is bound to be the future

of mining. The company in the past projected

that the adventure of buiding a satellite to go

in search of mineral rich asteroids could cost

as much as £2.3million with a a potential to

mine asteroids worth £2.3billion each at an

estimate cost of £500million.

“I realised it was the future and we needed to

be doing it. An asteroid about 25metres in

diameter could be worth £2.3billion –

£725million of that would just be the

platinum content. Rhodium and palladium

can also be found in it.

These are very highly valued and highlyscarce

materials on earth but they're abundant

on asteroids. We estimate to mine an asteroid

like that would cost £500million,” Mitch

Hunter-Scullion, CEO Asteroid Mining

Corporation was quoted saying.

No nation has claim to a space celestial body

and as such, these bodies remains open to all.

Success in asteroid mining may see some of

the earth mining projects being rendered

obsolete due to their cost efficiency, high

concentration on quality metals and

voluminous nature of deposits.

Necessity

t takes more propellant to escape the Low

IEarth Orbit (LEO) which is only about

300km from the earth's surface than is

required to travel the next 300 million

kilometers by the same spaceship.

It takes about 50kg of propellant to just

deliver 1 kg into the LEO but only 4kg to

move the next 35,000km after that only 2kg

the last 300 Million kilometers to get to Mars.

There are over 16,000 asteroids sharing the

same orbit with Earth containing an estimate

of 2 trillion tonnes of water and the number

keeps on growing due to discovery of new

ones. One of the key resources being explored

and will be the first to be mined once their

programs are successful is water which is an

integral life support and rocket propellant

component.

Since asteroids have infinity quantities of this

water, bases have to be set up to extract this

and refine it into the much-needed propellants

for deep space exploration at more than 1000

times cheaper than if provided from the

earth's surface. So, asteroid exploration is a

must to ensure viability of solar system

exploration.

“The asteroid Psyche 16 is a very special space rock. It is almost entirely made of metal, including

iron, nickel, and gold, which has led astronomers to believe that it was originally the core of a

planet. It's also estimated to be worth around $700 quintillion—enough to give each of the 7.6

billion people on Earth about $92 billion each. You read that correctly—$92 billion each. This

asteroid has the potential to make us all richer than the Pharaohs—or, you know, crash the world

economy.”

Aestroid Psyche 16 (source: open)



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We could then see water becoming the new revolutionary currency of

future space exploration, a resource abundantly available on earth but

with potential to make untold riches for people in the sky in potential

fuel supply stations, the new oil field in space terms. Since these

asteroids contain, ultrahigh grade minerals, mining just like it has

benefited from the current digital transformation of technological

revolution, will also benefit immensely through using existing

infrastructure on asteroids for mining ventures which are even closer

than venturing to the moon.

Near Earth Objects take different forms. These include comets, which

are formed in the cold zones of the outer planetary system which are

made up of frozen water embedded with dust particles. The residue of

the material that constituted Mars, Mercury, Venus and Earth formed

the rocky asteroids and these are closer home found in the warmer

inner solar system between the orbits of Mars and Jupiter. Asteroids

show a large variety of material composition, such as carbon-rich (Ctype),

metallic (M-type) or mineral-rich silicate (S-type). A typical

asteroid over a kilometre in diameter can be valued in the trillions of

pounds due to their relative abundance of Platinum group metals.

One such successful mission was the recent

one from Japanese satellite Hayabusa which

spend some time on asteroid Ryugu. On

November 13, 2019 at 10:05 JST, the

Hayabusa2 spacecraft departed from asteroid

Ryugu to return to Earth. The Hayabusa2

spacecraft with the MASCOT asteroid lander

had been visiting the asteroid Ryuga which is

around 900m wide and nearly spherical in

shape.

The Hayabusa2 Mission, is the first mission

ever sent and meant to collect samples from a

C type asteroid and return them to Earth . C-

type (chondrite) asteroids are the most

common type accounting for 75% of known

asteroids. C-type asteroids tend to be rich in

organics and hydrated minerals. This mission

is very important for asteroid mining in many

ways.

“The first being that this proves that the

concept of going to an asteroid, mining and

then transporting the gathered material back

to Earth is possible.

Hayabusa 2

The mission is not gathering much material,

however that is not the aim of Hayabusa2.

When asteroid mining companies go to

asteroids, they will have only one aim and

that will be to get the maximum amount of

desired material off the asteroid and transport

it to Earth,” according to Asteroid Mining

Corporation.

As national budgets tighten, governments are

increasingly seeking to involve the private

sector in all aspects of space transportation

and exploration to which they are keen to do

as the commercial imperative transforms the

economics of space. Both established players

and start-ups are using lower cost

technologies – including nano- and microsats

– to build innovative systems and services in

Earth observation or satellite

communications. A Luxembourg space

agency study predicts a market revenue of up

to 170 billion Euros generated by the space

resources utilization industry over the 2018-

2045 period with projected space savings of

135 Billion Euros for end users and

customers.



Challenges in

Space Mining

Just the feasibility of getting the projects off

the ground is staggering enough to make a lot

of investors sweat. Asteroid mining requires

the patience to develop technologies to

explore, time to extract, and then find inspace

applications for the resources that

would have been extracted. The sheer size of

equipment and time required for the whole

value chain with minimal returns to

beneficiation of minerals is discouraging to

many. Though trillions of litres of water may

exist, space missions, unlike vehicles that

swam the earth surface like ants, will not be

high traffic activities hence the economics of

quantities will not just be allowing some

commercially viable opportunities.

It seems with the enormous challenges faced

in the prospect of space mining, a lot of new

start-ups have gone into hibernation mode,

either with deep investments towards

technology development for use or just

waiting to capitalize on other potential

players who are making strides towards the

cause.

Some of the major players working in space

mining include SpaceX, Deep Space

industries, Planetary Resources, Space

Resources Australia, Asteroid Mining

Corporation, Space Resources.LU.

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The Future of Mining (source Asteroid Mining Corporation)



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Corporate Social

Responsibility

and Sustainability

Glenn Kellow

Peabody U.S. Mines making

great progress in addressing key

social, safety and environmental

issues through innovation,

advocacy and education.

“Coal is essential to affordable, reliable

energy and will continue to play a

significant role in the global energy mix

for the foreseeable future, Peabody

views technology as vital to meeting

energy needs, reducing emissions and

advancing global climate change

solutions. We are pleased to recognize

this year's recipients for their

tremendous contributions in continuing

to drive toward the ultimate goal of

near-zero emissions from this valuable

product.”

Glenn Kellow

President and Chief Executive

Officer - Peabody

Glenn Kellow, President and

Chief Executive Officer Peabody

(picture: Peabody)



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With many companies scratching the

bottom of the barrel to address key

issues affecting future global

sustainability needs, Peabody's charity begins

at home where the company recently bagged

three national awards recognizing the

company's safety and land restoration efforts.

The Rawhide Mine Coal Processing Facility

near Gillette, Wyo received a prestigious

Sentinels of Safety Award from the National

Mining Association (NMA) for recording the

most hours without a lost-time incident in the

small coal processing category. Additionally,

Kayenta Mine in Northeast Arizona and the

former Vermillion Grove Mine in Ridge Farm,

Ill. were recognized with National Awards

from the U.S. Office of Surface Mining

Reclamation and Enforcement (OSMRE).

It became a game recognise game situation

in November when the company went an

extra mile to recognise organizations and

individuals the company works with for

distinguished work they are undertaking to

advance clean coal technologies with the

company's annual Peabody Global Clean Coal

Leadership Awards.

The awards were presented at POWER-GEN

International in New Orleans, Los Angeles

(LA), and included the categories of High-

Efficiency, Low-Emissions (HELE) Innovator;

Carbon Capture, Use and Storage (CCUS)

Innovator; Clean Coal Advocate and Clean

Coal Educator.

With the National Mining Association (NMA)

awarding the company's operation Rawhide

the prestigious Sentinels of Safety award,

which was initiated in 1925 by then

Commerce Secretary Herbert Hoover, for its

safety record and land restoration for some of

it operations, there is more to being just

responsible that is etched in the company's

culture.



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Kemal Williamson, President –

Peabody U.S. Operations (picture: Peabody)

“Safety and Sustainability are two of our core values, and while we

emphasize safety and reclamation because they are the right thing to

do, it is always a positive when our people are recognized for their

hard work," said Kemal Williamson, President – U.S. Operations.

"These honors are well deserved, and we are proud of all our team

members for their contributions."

Rawhide, the recipient of the award employs 110 people and had an

annual sale of 9.5 million tons of coal in 2018. In total, the mine

generated $160 million in direct and indirect economic benefits in

2018. The award remains the nation's most prestigious recognition of

mine safety and has helped foster a strong safety commitment on the

part of U.S. mines.

Office Of Surface Mining Reclamation And Enforcement (OSMRE),

created in 1977 is a buruea within the United States Department of

Interior responsible for establishing a nationwide program to protect

society and the environment from the adverse effects of surface coal

mining operations, under which OSMRE is charged with balancing the

nation's need for continued domestic coal production with protection

of the environment. In a country where a lot of mining activities are

taking place, it is a huge feat beat recognized by such a department for

successfully reclaiming old and mined out pits.



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Peabody's NARM Mining (picture: Peabody)

This was Kayenta, another Peabody operation in the view of OSMRE

as the operation got rewarded for the successful reclamation of the

former N11 pit. The reclaimed area covers 854 acres with adjacent

steep red rock hills and low valleys. Use of the land today includes

wildlife habitat, shrubs and woody plants. The Kayenta Mine ceased

production earlier this year and is currently in reclamation.

Another of Peabody's operations, Vermilion Grove was also

recognized by OSMRE for the successful reclamation of a former 88-

acre refuse disposal area. The reclamation work included dewatering

of slurry through the use of a filter press during coal production,

effective grading and alkaline amendment to the coarse refuse

material and an enhanced soil coverage plan. The area is now used for

wildlife. The mine closed in 2009 and reclamation activities are

ongoing at the site.



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Powder River Basin: NARM (picture: Peabody)

By setting such a huge tone for fellow competitors in the industry, it fares well for Peabody to recognise and cultivate the culture and mentality of

talking ownership and responsibility within its greatest assets: the manpower and organizations contributing to this immense social and safety

responsibility hence its annual Peabody Global Clean Coal Leadership Awards.

The Peabody Global Clean Coal Leadership Awards honorees included:

a) Electric Power Research Institute

(EPRI)

Honored as HELE Innovator, EPRI has long

been a leader in the evaluation and

development of HELE coal-fueled

generation, among its many research areas.

EPRI's leadership includes being the

technical lead on the U.S. Department of

Energy-funded advanced materials program,

which has focused on developing, testing and

validating novel metals needed to make

advanced ultra-supercritical coal-fueled

power plants a commercial reality. EPRI has

also focused on numerous other HELE topics

including advanced, high-efficiency coal

power cycles and carbon capture and storage.



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b)Mitsubishi Heavy Industries

(MHI)

Honored as Carbon, Capture, Utilization and

Storage (CCUS) Innovator. MHI served an

integral role in the completion of the world's

largest carbon capture project on a coal-fueled

power plant. MHI's dedication to carbon

capture includes participation in broad

stakeholder groups such as the Carbon

Utilization Research Council, Carbon Capture

Coalition and Energy Advance Center, as well

as collaboration on Front-End Engineering

Design (FEED) studies to identify the next

large-scale carbon capture project.

In 2014 Japan Coal Energy Centre (JCOAL),

Mitsubishi Heavy Industries, Ltd. (MHI) and

Mitsubishi Hitachi Power Systems, Ltd.

(MHPS) together with The International CCS

Knowledge Centre (Knowledge Centre),

announced a collaboration on a study to

jointly assess the feasibility of the potential

application of Japanese technologies in future

CCUS (Carbon, Capture, Utilization and

Storage) projects in Saskatchewan.

CURC's technology-specific mission

makes it a unique, nonpartisan voice on

Capitol Hill in support of the

development of advanced fossil fuel

technologies. With that technical

expertise, CURC plays an important role

in educating policymakers on the role of

technologies like carbon capture,

utilization and storage (CCUS) in a

larger national clean energy strategy.

CURC recently testified before the

House Energy and Commerce

Subcommittee on Environment and

Climate Change on the contribution of

fossil fuel technology to deep

decarbonization objectives.

The collaboration intended to show how

Japanese technologies could improve CCS

(Carbon Capture System) and AQCS (Air

Quality Control System) applications for

CCUS projects in Saskatchewan, as well as

identify potential global applications of these

technologies. CCS has been identified as a key

technology which is required to meet

international targets for climate change.

c) Carbon Utilization Research

Council (CURC)

Honored as Clean Coal Advocate. Created in

1998 CURC is an industry coalition focused

on technology solutions for the responsible

use of fossil energy resources as part of a

balanced portfolio to meet the nation's

demand for reliable, affordable energy.

CURC has long been a leader in advocacy

efforts with policymakers, NGOs and other

stakeholders to ensure development of

advanced fossil energy technologies is an

integral part of the larger U.S. national energy

strategy. CURC has provided technology

development roadmaps, offered

Congressional education on technologies,

participated in Congressional hearings and

played a critical role in the reform of the 45Q

tax credit.

Receiving the Peabody

Clean Coal Advocate

(picture CURC)



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d) Professor Richard Axelbaum.

Professor Richard Axelbaum

(picture: Washington University

in St. Louis)

Honored as Clean Coal Educator. Dr.

Axelbaum studies combustion

phenomena, ranging from oxy-coal

combustion to flame synthesis of nanotubes.

His studies of fossil fuel combustion focus on

understanding the formation of pollutants,

such as soot, and then using this

understanding to develop novel approaches to

eliminating them. Professor Axelbaum has

provided significant contributions to the field

of combustion and the development of a novel

coal-fueled pressurized oxy-combustion

power plant concept and possesses a vast

understanding of both the fundamental and

commercial aspects of advanced coal

technologies. As Director of the Consortium

for Clean Coal Utilization, Professor

Axelbaum oversees the distribution of seed

grants to early-stage researchers globally and

regularly educates an array of stakeholder

groups on the value of coal and progress in

minimizing its environmental footprint.

The Peabody Global Clean Coal Leadership

Awards program was established in 2014 to

highlight innovative leadership and raise the

profile of clean coal technologies. Peabody

(NYSE: BTU) is the leading global pure-play

coal company and a member of the Fortune

500, serving power and steel customers in

more than 25 countries on six continents. The

company offers significant scale, high-quality

assets, and diversity in geography and

products. Peabody is guided by seven core

values: safety, customer focus, leadership,

people, excellence, integrity and

sustainability.



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THE MINING EXECUTIVE MAGAZINE JANUARY/FEBRUARY 2020 EDITION

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