July 2017 www.miningglobal.

com

THE BIG
MINING
INNOVATIONS
OF 2017

AMUR MINERALS CORP.

COMMUNITY ENGAGEMENT
IN A MISUNDERSTOOD
INDUSTRY
SPECIAL FEATURES
Peak Resources and Xanadu Mines
 TECHNOLOGY

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FOREWORD
WELCOME TO THE July issue of Mining
Global. Our cover stars this month are Amur
Minerals, with the Kun Manie project in the
Far East of Russia, Amur Minerals strives
to create a strong community engagement
programme throughout its operation.
Also featured is the revolutionary IMP@CT
Project that, with its switch on/switch off
method, looks set to transform the global
industry, and improve its image in the process.
Another exclusive interview comes from Xanadu
Mines of Mongolia. John OHanlon talks to
Managing Director Dr Andrew Stewart.
And finally, we look at the 10 mining innovations
of 2017 as the industry heads into a future that
is embracing the future with both hands wide.

As always, tweet your feedback @miningglobal

Enjoy the issue!

www.miningglobal.com
www.bizclikmedia.com
F E AT U R E S

COMMUNITY
ENGAGEMENT IN A
MISUNDERSTOOD
INDUSTRY
PROFILE

06

12
20
TECHNOLOGY

Switching on
sustainable
LIST

mining Mining
Innovations
4 July 2017
2017
 36
XANADU
C O M PA N Y MINES
ASIA
PROFILES
PEAK RESOURCES Limited
AFRICA

28 PT Merdeka Copper Gold Tbk

ASIA
AMG
Mining
BRAZIL

58
46
82
Guinea Ministry
of Mines and
Geology

92
AFRICA

SMB Socit Minire de Bok

AFRICA

5
COMMUNITY
ENGAGEMENT IN A
MISUNDERSTOOD
INDUSTRY Written by:
JESS SHANAHAN

Amur Minerals Corporation is working

with local communities to minimise the
impact of its mining operations while
creating jobs. We speak to CEO Robin
Young about the companys Amur
Kun-Manie project in Russia
 PROFILE
AMUR MINERAL CORPORATION
(AMC) is a nickel copper sulphide
mineral exploration company listed
on the London Stock Exchange, but
focused on the far east of Russia.
The companys principal asset is
the Kun-Manie project located in
Amur Oblast, where drill-defined
resources have been uncovered.
Now the deposits have been
identified, the next stage is to take
this through to production. CEO
Robin Young says: As we develop
the project, I would anticipate
a point in time where someone
approaches us to purchase it from
the project. Until that point, the main
mission is to enter production.
Young is a geological engineer with
40 years experience working in the
international mineral and resource
sector, having worked his way from
core logging through to executive
management. He says: I inherited the
role and started as a consultant to the
company. As the company decided
to go public, the owners asked me
to be the CEO. The rest is history.
AMCs presence in the Amur Oblast
area is creating jobs for locals, along
with several other achievements.
The project is also generating a lot

7
PROFILE

of interest within local communities

and the press. Young says: We
have been getting positive television
press out of the Russia 2 television
channel. Theyve been to our
project site, interviewed us and have
been very excited about the fact
we are creating up to 2,000 jobs.
Theres a great deal of curiosity and
excitement as to what our project
can do for the community.
Working with the locals is of the
utmost importance to AMC, as its
integral to the success of the project
that the community is consulted and
engaged. Young says: There are three
communities located near our project
site, all within 300km, and most of our
summer help is hired from this area.
We are proactive in providing
gainful employment to a significant
number of people in the local area
and when people go home from these
programmes, their quality of life is
affected from working with us. That
in itself is a good way of engendering
a desire for us to offer full time jobs
in the area. The communities have a
very strong positive feeling towards
the company and what we can bring
moving forward with the project.
This kind of community
ITS ABOUT BEING
THERE AND BEING
SUPPORTIVE OF
THE PEOPLE.
THERES A LOT OF
UNEMPLOYMENT
IN THE REGION SO
WE ARENT GOING
TO BRING IN 1,000
FOREIGN PEOPLE
TO DO THAT WORK
engagement not only benefits
the people in the local area, but
keeps stakeholders supportive
as the project slowly unfolds. The
company intends to set up specific
programmes in the future where
itll be even more involved in the
community as Amur Kun-Manie
develops. Young says: We want
to be ahead of the game and have
the backing of the communities by

8 July 2017
 COMMUNITY ENGAGEMENT IN A MISUNDERSTOOD INDUSTRY
providing education programmes
and improving schools. These are
small villages of 200-500 people,
not major cities or towns.
Its about being there and being
supportive of the people. Theres a
lot of unemployment in the region
so we arent going to bring in 1000
foreign people to do that work.
Its going to be 990 local, and 10
foreign. Over time we will work those
numbers to be 100 percent Russian.
As well as working closely with
the communities to show how the
mines will work for them, AMC is
maintaining an ongoing dialogue with
the appropriate Russian authorities
and agencies, which will help to
provide information for the public.
AMC looks at the impact of the
project on each village, town and
city individually. Young says: We
9
PROFILE
looked at what part of the plan could
affect the people of the city of Zeya,
which provides hydroelectric power
to our smelter. Is there anything in that
plan that is going to create a problem?
We develop a detailed design plan
to understand what and who we are
going to impact and then address
any issues before going into the final
details. This way the community is
actually part of the plan to advance the
10 July 2017
project. Its a very important aspect.
As with any project, there are
challenges. For instance, being a
western company in Russian presents
its own problems. Young explains:
Everyone thinks, inappropriately,
that we have a political agenda. In
actuality, we do not. Most of the
people, contractors etc., weve
worked with dont see us as a foreign
company. Theres a concern that
 COMMUNITY ENGAGEMENT IN A MISUNDERSTOOD INDUSTRY

IF A PERSON the benefits the industry brings to

our modern world. Young says: If
DOESNT WANT a person doesnt want mines to be
MINES TO BE active then theyd have to give up their
mobile phone, gold jewellery and so
ACTIVE THEN much more. Its a weird way of looking
THEYD HAVE at it but its the truth. People dont see

TO GIVE UP
this and thats the reason why there is
such a negative view of the industry.
THEIR MOBILE AMC are working to combat

PHONE, GOLD
industry myths with media coverage
and community engagement. Young
JEWELLRY AND concludes: Success is in the

SO MUCH MORE. relationships. Good, transparent,

positive, open clean relationships. Its
ITS A WEIRD WAY really important to have that trust.

OF LOOKING As a late stage exploration project

with detailed engineering work being
AT IT BUT ITS undertake, Kun-Manie represents

THE TRUTH one of the largest potential sulphide

we are not there to simply create
jobs and to mine the project when
thats exactly what were doing. The
challenge has been to communicate
that we are a positive company with a
positive influence on the community.
We are not a bunch of bad guys.
Its not just this perception that brings
difficulties, but the worldwide view
of mining as a whole. According to
young, many people dont understand
nickel operations in the world which
could place it among the top ten
nickel producing companies on an
annual basis. Yet, Young insists that
AMCs focus is ensuring that the
mine benefits the local community
and busts prominent mining myths.
So far, AMC has completed 5,903
metres of drilling (about 30 percent
of the planned programme), so the
advantages of Kun Manie are not yet
fully formed. Watch this space.

11
TECHNOLOGY

Switching on
sustainable
mining
WE SPEAK TO DR KATHRYN MOORE FROM
IMP@CT PROJECT ABOUT SUSTAINABILITY,
BREXIT, MININGS IMAGE ISSUES, AND MORE
W R I T T E N B Y: S T A F F W R I T E R
A PIONEERING UK venture, the
IMP@CT project is determined to spark
an ethical, sustainable, and global
mining revolution. The project is led by
University of Exeter geology experts
and looks to tap into a number of small
metal deposits in Europe and beyond.
Furthermore, they aim to establish
SOSO (switch on, switch off) mining
as a widespread industry method.
SOSO could potentially enable mining
companies to excavate materials that
are most in demand in any given period.
For further details, Mining Global
quizzed project lead Dr Kathryn Moore.

What is your role and

involvement with the
IMP@CT PROJECT?
In 2012 I took up a new position
(funded by the British geological
survey) as a lecturer on critical and
green technology metal, which was a
slight step from my previous role as a
geologist. The role was quite a diverse
role, a lot of it looking at the geological
origins of the critical metals that we
use in all the new technologies.
The roles involved into a whole
systems perspective, so its not really
just about the geology its about
access or the peripheral topics around

13
TECHNOLOGY
mining that actually make it work.
How did your background
in geology prime
you for work on the
IMP@CT project?
Ive been through several years of
thinking about these issues and
talking to a lot of people from a lot of
different perspectives, from the raw
material producers to the end product
manufacturers. Thats not often
14 July 2017
something we would do as geologists
- there does seem to be a little bit of a
disconnect between the raw material
production and manufacturing.
Several years of talking to a lot
of related people across the value
chain has put me in a good position
to link to all of the disparate partners
that are in this consortium, because
this consortium is very much about
taking this whole system to you, and
thinking, if you can actually deal with
 S W I T C H I N G O N S U S TA I N A B L E M I N I N G

Its a huge issue and particularly for

Europe, it on the top five challenges

The mining facing the mining community. In

industry
terms of accidents and environmental
contamination, if you look at the
has to statistics, its not actually the worst
be very industry out there. However, when
careful incidents do happen, they have the
about tendency to be absolutely awful.
how its The mining industry has to be very
perceived, careful about how its perceived,
because its because its perceived generally

perceived very negatively. Theres good

generally reasons for it - obviously we have the

very occasional catastrophic incident.

negatively
the technology, if you can actually
understand them geologically, what
does it take for that new mining
approach to actually work in practice?
Theres a widespread,
blanket perception that
mining is an unethical
practice. While working
in on the IMP@CT project,
what has been your
experience of this?
Historically, where mining was
operating in societies that didnt
have environmental protection and
through the industrial revolution it
was all about people having jobs and
staying alive basically. There werent
the same checks and balances as we
had now. The problem that we have
now is that the checks and balances
we have in place are very different
in different places in the world.
Mining communities that are based
in Canada, Australia and Europe are
very conscientious and like to employ
best practice, but that isnt the case
across the globe, so you need to
think very carefully about the whole

15
TECHNOLOGY

SOSO (switch on, switch off mining)

THE IMP@CT PROJECTS (SOSO) SWITCH ON-SWITCH OFF
METHOD TO MINE MANY CRITICAL METAL AND OTHER SMALL
COMPLEX DEPOSITS WILL LOOK TO DEVELOP TARGETED,
TECHNOLOGICAL INNOVATIONS IN MINING EQUIPMENT
DESIGN, AS WELL AS MINE PLANNING. THE INNOVATIONS WILL
NOT ONLY REDUCE THE FEASIBILITY STUDIES REQUIRED, BUT
ALSO IMPROVE THE QUALITY OF THE EXTRACTED MATERIAL,
INFRASTRUCTURE, LAND USE, RESOURCE CONSUMPTION
AND WASTE. THE TEAM BELIEVE THAT THIS MODEL CAN BE
ADOPTED BY EUROPEAN AND NATIONAL POLICY MAKERS,
AS WELL AS THE WIDER MINING INDUSTRY IN GENERAL.
 S W I T C H I N G O N S U S TA I N A B L E M I N I N G
acceptability of mining to society.
What specific challenges
does the industry face
when mining in Europe
as opposed to say,
Australia, or Africa?
The issue we have in Europe is that
our supply root is generally from
other countries and that means that
we have an inherent risk in European
manufacturing. The issue in Europe is
that the world class huge deposits are
generally mined out, as the world class
deposits are in other countries. Europe
has vast resources, but theyre largely
in small high-grade complexes, which
dont attract as much investment.
We have the potential to mine for
ourselves, however the small deposits
we have arent necessarily going to
be competitive with the world class
deposits in the production costs-per-
tonne. With the world class deposits
youre working with economies of scale
essentially. The only way for Europe to
be competitive in terms of production is
to find a way of mining that can be done
in a very cost-efficient way that doesnt
require as much investment - thats
what the technological side is about.
The benefits of world class deposits
are that youre going to employ a
large work force over a long space
of time. If thats not the case, well
have to design the mining approach
to work around the community
and increase the life of mines by
decreasing production. Theres a lot
to work out, but if we can do that, then
the small European deposits could
theoretically operate in competition to
international world class deposits.
Can you talk about the
timescales involved in
the IMP@CT project?
This has really come from debates with
manufacturers. The manufacturers
at the very end of the value chain are
making decisions about the release
of products based on how long they
can be sure to have reliable access
based on particular metals. They may
be deciding whether or not to take a
particular product to market or if their
supply from one particular mine runs
out, where do they go elsewhere?
The issue is that geologically we
dont have a problem in access to
resources. Geologically the resources
are available for all these technologies.
The real issue is how long it takes from
identifying a new deposit geologically
17
TECHNOLOGY

to having that mineral deposit

actually in production. Going from
identification in the ground to mine
production can take decades. Thats
on a completely different timescale
from the manufacturers - if they design
a new product, they might want to The
release it in just a couple of years. Or, Horizon 2020
if a conflict arises in a metal producing programme
country, that can cut off supply in a is something
matter of months or even less. The that the
timescale of establishing production
UK bought
and the time scale of manufacturing
into, so even
need are a complete mismatch.
with a hard
Brexit, thats
The idea was if we can target small
deposits and get them up and running
and operating quickly (which you can going to be a
never do for world class deposits) commitment
we have the opportunity to actually that the
respond, in terms of production UK has
at the start of the value, to rapid
changes and the end of the value
chain. Basically, the manufacturing survey. The industry partners are
demand and the production risks mining company Mineco; Metal
create the economic sphere in which Innovations, who build and design
you have to decide whether a product mining equipment; Rados International
is economic or not economic. who design and build ore sorters;
Extracthive, who deal with minerals
Who are IMP@CT and processing, and EPSE deal with
projects partners? minerals and processing as well. The
Weve got five industry partners, University of Exeter and Imperial College
four universities and one geological London also do mineral processing.

18 July 2017
 S W I T C H I N G O N S U S TA I N A B L E M I N I N G
IMP@CT project received
7 million funding from
the EUs Horizon 2020
programme. Will Brexit
have any impact on this?
No, this particular project is safe.
We actually found out that we got
this funding a week before the
Brexit referendum, even with the
trigger for Article 50. Weve started
the project, and as you know,
were not out until were out.
The Horizon 2020 programme
is something that the UK bought
into, so even with a hard Brexit,
thats going to be a commitment
that the UK has. For this particular
project, which ends in 2020, well
be able to see it through. We dont
really have to worry about.
19
TOP 10

TOP 10 Mining
Innovations
2017
MINING IS CRUCIAL TO RETRIEVING THE ORES AND MINERALS THAT
KEEP IMPORTANT INDUSTRIESRUNNING SMOOTHLY, BUT RETRIEVING
THOSE PRODUCTS ISNT ALWAYS SIMPLE OR STRAIGHTFORWARD.
MINING INNOVATIONS DO MORE THAN INCREASE EFFICIENCY; THEY
ALSO PROTECT WORKERS AND ENSURE CONSISTENT YIELD THAT
SUPPORTS FURTHER MINING EXPLORATIONS. HERE ARE 10OF 2017S
BEST OFFERINGS FOR THE FUTURE OF THE MINING INDUSTRY

W r i t t e n b y : S TA F F W R I T E R
TOP 10

09
ECO-
FRIENDLIER

10
ORE
CONSUMPTION
TUNNEL Energy and water are two of the
biggest demands required of ore
BORER processing, but new processes
AUTOMATION are gradually changing that. Rio
Tinto is using a new method,
While tunnel boring itself is a concept
thats familiar to the industry, calledCopperNuWave, in Utah
automating the process increases at itsKennecottCopper mine.
several beneficial verticals: precision, The process uses microwaves to
particularly in areas where excavation determine the copper content of ore,
poses stability risks, miner safety, and allowing them to quickly determine
that all-important efficiency metric, rich ore and discard worthless ore,
speed. While the world isnt quite cutting back on the resources wasted
ready for a push-button solution to on fruitless searches.
tunnel creation, automated borers
are getting the possibility closer than
ever before. In fact, global mining
group Rio Tintoand the Centre of
Excellence in Mining Innovation
(CEMI) have already teamed up to
put this innovation to good use: visit
theNorthparkesMine in Australia and
you might just catch a glimpse of a
borer in action.

22 July 2017
 T O P 1 0 M I N I N G I N N O V AT I O N S

07
EXCAVATOR
REDESIGNS
Hydraulics are leading the way
in excavator reinvention, with big
names like Hitachi committing R&D
resources into optimizing the balance
between energy consumption and

08
peak task performance.Doosanand
Volvo have also tossed their hats
into the proverbial ring, furthering
MINING previous designs that used unique

SIMULATORS features like independent tracked

wheel controls for unprecedented
An excellent tool for trailing new
control through obstacle-littered sites
mining professionals in situations
and heavy site traffic.
that are difficult to commit to paper,
mining simulators are also invaluable
for contingency and emergency
training. They can also be easily used
to determine worthwhile candidates
during the hiring process, and to
judge reaction times and accuracy
for existing mine employees. 2017s
versions offer incredibly lifelike
projected, 360-style visuals that are
as close to the real thing as possible
without actually going underground.

23
TOP 10

06
RAIL SYSTEM
AUTOMATION
Once again, Rio Tinto is leading the
charge with reinventing the mining
site as we know it, but make no
mistake,theyre definitely not the only
ones looking into automated heavy rail
systems. Offering busy mining groups
the ability to quickly and safely move
ore from excavation to processing and
beyond, automating trolleys and rail
systems on-site is a smart move that
makes efficiency not just possible, but
the norm.

05
THE USE OF X-RAY DIFFRACTION
Diffraction technology, much like theCopperNuWave, helps identify
the amount of useful resources in a given piece of ore, cutting down on
wasted hunting by targeting rich materials. Well-known diamond mining
groupALROSAis already using diffraction in itsmining sites, with others looking
to broaden their use of the technology in 2017. With so much of a sites success
riding on spending minimal effort and time for maximum yield, technologies that
make thatprocess easier are transforming mining from the (literal) ground up.

24 July 2017
 T O P 1 0 M I N I N G I N N O V AT I O N S

04
THREE-DIMENSIONAL MAPPING TECH
As important as on-site technologies are, entering mining efforts with a plan
in hand minimizes issues and maximizes targeting for rich ore and lucrative
veins. 3-D mapping helps the entirety of the mining team - from administrators
to miners - get on the same page instantly. By highlighting the most promising
areas for excavation before the machinery is ever powered up, resources are
intelligently used to zero in on the best mining areas in the least amount of time.

03 EQUIPMENT
POWERED
WITH
ALTERNATIVE
ENERGY
As theCopperNuWave
demonstrates, energy conservation
and successful mining operations are
not necessarily mutually exclusive.
South African mining group Harmony
Gold has embraced solar for direct
power, and is piloting a program to
use mining land forbiocropsthat will
later produce natural gas, another
form of alternative energy, to further
power their machinery. This cyclical
system helps to not only drive down
operational costs, but minimize
environmental impact company-wide.

25
TOP 10

02
IMPROVEMENTS IN MINER
SAFETY GEAR
In addition to overall site safety, modern approaches to mining worker safety
also take into account the quality of each job day and the impact of repetitive
stress injuries.SmartCap, a sensor-rigged PPE helmet, continually monitors
common signs of fatigue and measures alertness to cut down on distraction-
related incidents.Centennial Coalhas also introduced a special mining-specific
boot this year, offering the sole stability, ankle support and waterproof design
needed to protect workers overall health while on the job.

26 July 2017
01
CENTRALIZED SITE
AUTOMATION
Much like urban planning, a mining site requires intelligent movement of
workers, equipment, and excavated materials to maximize efficiency while
cutting down on waste. Until now, that endeavor usually resembled a cobbled-
together series of systems and several individuals at the controls of each. Full
site automation is closer than ever before, incorporating other innovations
mentioned above, such as heavy rail transport and tunnel boring. When
algorithms can be immediately implemented across all aspects of a job site,
costs are driven down to levels that maximize profitable enterprise without
sacrificing worker comfort or safety - and thats potentially the best mining
innovation in the industry in 2017 and beyond.

27
Ngualla:
Uncovering
Tanzanias
rare earths
Written by Catherine Rowell
Produced by Richard Deane
29
We speak to Peak Resources
Managing Director Darren Townsend
regarding the companys development
of the Ngualla Project in Tanzania
S
ince listing onto the Australian
stock exchange back in 2006,
Peak Resources Ltd has come
a long way. Whilst exploring for
phosphate minerals in East Africa,
the company discovered rare earth
minerals, creating a significant buzz
across the mining industry that led
to the establishment of its flagship
Ngualla Project. Managing Director
Darren Townsend explains how the
company has taken the project, located
in southern Tanzania, from discovery,
all the way through to the recent
completion of a Bank Feasibility Study.
We found that there were very high
grades of the magnet metal rare earths,
neodymium (Nd) and praseodymium
(Pr), called NdPr. There are seventeen
different rare earth elements, but NdPr
are the most important, he says.
Quickly becoming one of the worlds
largest undeveloped neodymium
and praseodymium rare earth
30 July 2017
projects, the company has received
its environmental permit for the
project and is now moving ahead
with the submission of the mining
license application. With plans to
export approximately 28,000 tonnes
of rare earth concentrate throughout
a 30-year mine life, the company will
undertake the initial processing in
Tanzania, through an on-site multi-
stage processing plant. The high grade
processed rare earth concentrate will
then be shipped to the United Kingdom
to a refinery that will use solvent
extraction technologies to complete
further processing, says Townsend.
He adds further, I dont like to use the
term world-class, but Ngualla simply
is a world class deposit. Its extremely
high grade and our aim is to get this
project up and into production, whilst
looking at additional opportunities to
grow the company and build out the
business further within the rare earths
 MINING

Number of staff at
28
PEAK RESOURCES
LIMITED

Peak
Resources
Corporate
Video

w w w. p e a k re s o u rc e s . c o m 31
 PEAK RESOURCES LIMITED

I dont like to use the

term world-class, but
Ngualla simply is a
world class deposit

www.alignenvrionment.com

space. We see the development of

Ngualla as a starting position for us.

WHO WE ARE
Increased demand
Whilst prices in cobalt have recently
surged up by 150 percent, the demand
Align Environment and Risk is a niche international for other metals including rare earths will
consultancy committed to improving the quality of
environments and livelihoods, and building professional ultimately also increase due to the same
capacity in the places where we work. Our primary
focus is combining practical project de-risking measures transforming driver the electrification
and compliance with international investment standards
for environmental and social sustainability performance. of the automotive industry. Rare
We help our clients to develop innovative, practical
earths are used to make high-
solutions to environmental and social risk through strength magnets, which are 10 times
specific, appropriate planning and management.
stronger than traditional iron boron
info@alignenvironment.com | carina@alignenvironment.com
+255 766 602 155/762 054 422 | +1 720 924 8610
magnets. Such advantages enable this

32 July 2017

technology to be utilised in a number
of applications. Townsend explains
that with 90 percent of drive motors
for the new models of electric and
hybrid cars using rare earth magnets,
this energy efficient alternative
transportation system is brought to
the forefront of building and design.
The world hasnt yet worked out that
we need rare earths in the same way as
everybodys been talking about lithium,
graphite and cobalt. If you want to get
the energy from your lithium battery to
the road, 90 percent of the time youre
MINING
going to be using a rare earth magnet
drive motor, comments Townsend.
Investors have not yet cottoned on to
this potential investment opportunity,
where NdPr will drive significant
growth for companies and investors
through the rise of electric vehicles.
With this in mind, Townsend adds
that if we had 100 percent electric
vehicles within global production, we
would need to mine seven times the
amount of rare earths as we do today.
We will start to see a larger share
of electric vehicles coming into the
market, which will have a big impact
over time on the supply side and
quality. Projects like ours are going
to be very important to keep up with
this expected demand growth.
Peak Resources is developing
Ngualla in partnership with two key
strategic and high quality investors;
International Finance Corporation
(IFC) and Appian Natural Resources
Fund, a private equity group based in
London. Nonetheless, raising funding
is not without its challenges. When
youre a junior developer, you need to
raise funds from the stock market to
move the project forward, explains
w w w. p e a k re s o u rc e s . c o m 33
PEAK RESOURCES LIMITED
Townsend. There are times when
rare earth prices are quite low, which
makes raising equity a little bit more
challenging. However, were really
lucky in having Appian and IFC as
partners to help us with that funding.
Giving back to the
community
Throughout the 30-year project, the
Ngualla Project in Tanzania will directly
employ an estimated 209 people,
predominantly from the local area,
and the company will also undertake
a significant amount of community
projects, as well be an enabler of
sustainable development activity that
will provide economic and employment
opportunities beyond the mining
project. Over the next 30 years, the
company will no doubt have a major
role in making a positive long-term
contribution to the local community.
Additionally, Peak Resources aim to
become a clean, ethical, sustainable
34 July 2017
source of rare earths to global
industry. All processes will operate
at top tier environmental standards,
which will match well and feed into
the supply chains of the products low
carbon technological applications.
The project involves quite small
scale, open cut mining, adds
Townsend. With less than a two to
one waste to ore strip ratio, it has
quite a small mining footprint. The
processing will also be completed
without the use of chemicals such as
cyanide, and the naturally very low
level of radionuclides in the deposit
avoids any issues some projects have
with their high contents of uranium or
thorium. Peak Resources long-term
investment in the local community
and its strong environmental focus
will support future business growth
whilst bringing benefits to the local
communities and enable the company
to expand their operations and
go from strength to strength.
 MINING

Community investments by Peak. TOP

LEFT: Ngwala Primary School classrooms
built in 2012. TOP RIGHT: Waiting area built
for the Nwala village maternity clinic.
BELOW: First bucket of water accepted by
villager at handover ceremony for Madodomia
village water bore and pump donated by Peak.

w w w. p e a k re s o u rc e s . c o m 35
 CAVERNS,
MEASURED
BY MAN
Written by John OHanlon
Produced by Mariana Lee

37
XANADU MINES
Xanadu Mines is indeed defining the
value hidden in the soil of Mongolia, and
discovering enough copper and gold
to build untold numbers of pleasure-
domes
O
n 10 February 1922, the
Peoples Government of
Mongolia signed a landmark
resolution that brought a significant
coal deposit in Nalaikh city under
state control. By the end of the
year, exploration on the deposit
was complete, ushering in what is
today considered the birth of the
mining sector in the country.
In the 96 years that have followed,
the mining industry has undergone
38 July 2017
a number of transformations as its
role in Mongolias economy has
steadily grown into one of its leading
sectors of growth, responsible for
producing 21 percent of its GDP, 70
percent of its total industrial output
and 90 percent of its export product.
Coal, copper and gold form the
principle reserves that are mined
in abundance across Mongolia.
The country hosts approximately
ten percent of the worlds known
 ASIA

coal reserves at an estimated 162 billion tonnes.

It took Mongolia a while to shake down since
shaking off Soviet influence in 1990 and ceasing to
call itself a peoples republic, but today this huge,
sparsely populated country is democratic, peaceful
and stable. Its readily accessible mineral wealth
has started to attract major mining companies
seeking new resources and with copper and gold
prices firming up following a four-year downturn,
Mongolia is looking increasingly attractive.
Since it floated on the Australian Stock
Exchange in May 2010, the Australian exploration
company Xanadu Mines has been single-
mindedly pursuing its goal of adding value to its
properties in the South Gobi district of Mongolia.
Its Managing Director and CEO Dr Andrew
Stewart has long held the view that Mongolia

2010 had the edge on other comparable regions:

In exploration, a good principle is to have a counter
cyclical approach, he says. That might seem like
The year that
a truism but very few companies actually do it.
XANADU MINES
The lean years which saw large projects
was founded mothballed and investment drying up are
coming to an end, but when Xanadu acquired
its assets, he and his team saw their opportunity
to get established ahead of the curve.
We like Mongolia because it is a very under-
explored exploration location, even though it
has been shown to host some of the biggest

w w w. x a n a d u m i n e s . c o m 39
Right Solutions Right Partner
On-site services for the minerals industry.
Inspection.
Premier Coal Laboratory.
Geochemical analysis: Coal quality:
Gold analysis Technical analysis
Exploration packages Density testing
Methods for ores and high grade samples Coking test
Iron ore procedures Coal physical tests
Wet chemistry and other services Miscellaneous analysis

Address: Mongol Nekhmel Building, 2nd Khoroo, Chinggis Avenue,

Khan-Uul District, Ulaanbaatar 17042, Mongolia
Phone: +976 70007667 | Email: ALSMongolia@alsglobal.com

For more information, scan this QR code or visit www.alsglobal.com

 ASIA

We like copper deposits in the world, adds Stewart.

He points for evidence to Rio Tintos massive
Mongolia Oyu Tolgoi project, only 100 kilometres from
because it is Xanadus flagship Kharmagtai project in the south
a very under- of the country. With the cost of bringing it into
explored production estimated at close to $10 billion, the
Oyu Tolgoi mining project represents the largest
exploration financial undertaking in Mongolias history.
location, Discovered in the early 2000s, the mines
even though copper production is projected to come in at
it has been 450,000 tonnes per annum for the next 50 years.
Stewarts commitment to Mongolia is
shown to host only matched by his excitement.
some of the Mongolia is Gods gift to explorers! A
biggest copper junior company like Xanadu can explore
deposits in relatively cheaply, he says.
There are comparable reserves in the world,
the world but most of these are located in remote jungle,
ANDREW STEWART
MD & CEO

w w w. x a n a d u m i n e s . c o m 41
XANADU MINES

Andrew Stewart
Managing Director & Chief Executive Officer
BSc, PhD, MAIG, MSEG & MAICD
Dr Andrew is an exploration geologist with over 15 years experience in mineral
exploration; primarily focused on project generation, project evaluation and exploration
strategy development throughout Asia and Eastern Europe. Andrew has particular
expertise in porphyry copper-gold and epithermal gold deposits, but has worked
across a diverse range of commodities. He holds a BSc (Hons) from Macquarie
University and a PhD from the Centre of Ore Deposits and Exploration Studies at
the University of Tasmania. During his time at Ivanhoe Mines and Vale, Andrew held
various technical and management positions in Mongolia and Indonesia and has been
involved in several green fields discoveries. After providing technical and program
management for Vale in Indonesia and Mongolia, Andrew joined Xanadu Mines as
Chief Geologist leading the gold and base metals project generation and evaluation
team in Mongolia. Andrew has been Managing Director and Chief Executive Officer
of Xanadu Mines since 2016 and prior to that had been Chief Executive Officer.

at high altitude, places with high
rainfall or, like the beleaguered
Grasberg mine in Indonesia,
beset with political disruption.
While Xanadus peers are drilling at
a cost of up to $600 a metre, Xanadus
costs come in at around $100, thanks
to the open nature of the terrain plus
the fact that all of the roads, power,
water and other services that are
required are already in place.
Particularly at Kharmagtai,
this is the benefit gained from the
infrastructure that goes in when
one of the worlds biggest mining
companies builds a tier one asset
next door to our project, he admits.
All three projects that Xanadu
is developing are in highly
prospective deposits. The gold
element is a critical differentiator
between these Mongolian
resources and others in South and
Central America for example.
These porphyry copper
resources we see in Mongolia
are probably the biggest gold
resources globally, he says.
These are precisely the type
of deposit that the major mining

42 July 2017
 ASIA

companies are turned on by at a time when there

is a scarcity of new resources on the one hand
while on the other global economic uncertainties
are encouraging investors to take refuge in gold.
Kharmagtai, with a 30-year mining licence
and a registered water resource, is the
most active currently, and he estimates
that it will take another year to define.
The deposit starts at the surface, giving the
opportunity for early production upside from an
open pit, but in the longer term there is a great
deal more value deeper down. Xanadus local
drilling contractor Litho Resources has already
gone down 650 metres, with some excellent

21%
intercepts, but by mid-2018 he expects it to
reach as far as a kilometre below ground.
Eventually Kharmagtai could rival or
Proportion of surpass Oyu Tolgoi, he believes.
Mongolian GDP Kharmagtai is a big deposit and getting
generated by bigger, he explains. We are getting a lot
mining of interest from strategic investors. With the
shortage of genuine discoveries out there the
majors are on the hunt for new assets. Xanadu
is very much an exploration company and our
job is to provide those assets for the future.
A second project on the South Gobi porphyry
belt, Oyut Ulaan (Red Mountain), is close to
Kharmagtai, and here the emphasis is on gold
rather than copper. It is at an earlier stage of

w w w. x a n a d u m i n e s . c o m 43
XANADU MINES

With three of them in a single company, Xanadu,

this represents a fantastic portfolio. Most companies
would die to have just one of them!
ANDREW STEWART MD & CEO

44 July 2017

exploration. The third is in the north
of the country Sharchuluut Uul.
The point is that Xanadu is not just
sitting on a single project but three
entire mineral districts that have never
been explored at depth, and each
promise potential mining opportunities
of upward of 30 years duration. That
is precisely what the majors are
looking for, and the fact that they
promise returns at relatively low capital
investment adds to their juiciness.
We have three projects, each
of which would support a single
company, Stewart concludes. With
three of them in a single company,
Xanadu, this represents a fantastic
portfolio. Most companies would
die to have just one of them!
ASIA
The coming year will see work
continuing at Kharmagtai to
understand the depth and potential
of that system. At the same time
exploration will continue at Oyut Ulaan,
while Sharchuluut Uul, he confidently
hopes, will emerge as a major new
district in the north of the country.
The demand for copper from
Japan, China and Russia, with ready
logistical access to all of these
markets, boosted by the global thirst
for gold, will make Xanadu Mines
a tempting target for the majors,
though he does not by any means
rule out the possibility that the
company might build its own mines
either alone or in partnership.
w w w. x a n a d u m i n e s . c o m 45
Investing
for the
next
century
Millionaire project seeks to
place AMG Mining as the
largest Lithium concentrate
producer in Brazil

Written by Flvia Brancato

Produced by Glen White
Fabiano Costa,
President of AMG Mining
AMG MINING

A
s the leader in the supply of critical materials
for many applications involving technological
innovations and focused on smart
reduction of CO2 emission, AMG Mining stands
out in the management of a diversified portfolio
of products, having been recognized worldwide
as the largest producer of Ta2O5 concentrate
AMG Brazil operates two business units in the
state of Minas Gerais. The mining unit produces
mineral concentrates from Tantalum, Niobium and
Tin, as well as a byproduct composed of minerals

48 July 2017
 BRAZIL

such as Feldspar, Albite, Quartz,

Micas, with a wide application in
the national ceramic and glass
industry. The other operating
division consists of a chemical
transformation plant that produces
high quality and purity oxides of
Tantalum and Niobium, and a
metallurgical plant that produces
special Aluminum alloys.

w w w . a m g - b r. c o m 49
AMG MINING
The total investment is
over U$ 60 million
President of AMG Mining, Fabiano Costa
LITHIUM PROJECT
Since 2011 the company has been
working tirelessly in what is known
as the largest investment in the
history of the AMG Group worldwide.
The total investment, which
involves the construction of an ore
treatment unit for the concentration
of Spodumene (Lithium Mineral),
expansion of the existing operational
support infrastructure and
construction of a dam, is over U$
60 million, says the President of
AMG Mining, Fabiano Costa.
According to the president, the
project outcome will make them
the largest producer, marketer and,
potentially, the largest exporter of
lithium concentrate in Brazil. We are
50 July 2017
already working on the conceptual
design of doubling the capacity of
the future plant and we will become
the largest producer in the chemical
transformation sector, which is
currently the fastest growing in
the world, focusing in the batteries
manufacturing and the electric
vehicles market, Costa adds.
The project itself has generated
more than 500 jobs during the
deployment phases and when
completed will increase the
companys revenue by almost
five times, breaching the $300
million mark. Costa continues in
celebratory voice: The expectation
is an increase of EBITDA in even
greater proportions due to the
w w w . a m g - b r. c o m 51
AMG MINING
cost savings based on the growth.
The solid foundations established
lately justify this investment
period, which will soon result in
sustainable growth of more than
100 percent of its current revenue.
The first production of the raw
material is expected for
the first half of 2018.
The president also
U$95
highlights the
importance of
positioning in
this increasingly
promising market.
MILLION
He says: If we Annual revenue
look at the metal
commodity trend
line lately, it has been a
decline in demand which raises
the metals prices in general, with
the exception of lithium. This puts
us in a prominent position with
an extremely strategic metal.
OUTSTANDING MANAGEMENT
The responsible management
for the critical materials portfolio
focusing on sustainable long-term
value generation is a unique feature
of AMG. Developed by a highly
qualified team, constantly supported
by strategic information and
specialty of our business,
About plus our logistics and
the constant and
almost obsessed
practice of our
values in our
routine - Security,
Transparency,
Integrity, Focus
on Results and
Innovation - also has to be
highlighted, explains Costa.
AMG Minings green
management concept, although
with a 25 percent increase in CO2
production in its own operations,
exclusively produces critical
materials that have enabled
 BRAZIL

w w w . a m g - b r. c o m 53
 AMG MINING

TECHNOLOGY AND SERVICES

TAILORED FOR YOU
Ensure you get the best technology and services for producing
high-purity lithium carbonate from various raw materials. Our
beneficiation, calcination, leaching, solution purification, and
lithium recovery technologies support your process needs, from
raw materials to end products.

Garanta que a planta receba as melhores tecnologias e servios

para a produo de carbonato de ltio de alta pureza a partir de
vrias matrias-primas. Nossas tecnologias de benficiamento,
calcinao, lixiviao, purificao, e recuperao de ltio suprem www.outotec.com
as suas necessidades de processo, desde as matrias-primas
at o produto final.
 BRAZIL

significant reductions for customers

This puts us in the automotive sector and mainly

commercial aviation, reaching a total

in a prominent savings of almost 30 million cubic

meters of CO2. Our environmental

position with responsibility is reversed in product

innovation that can effectively

an extremely result in substantial savings in

CO2 emissions, says Costa.
strategic metal AMAZING JOURNEY
President of AMG Mining, The Mining Engineer with a Masters
Fabiano Costa Degree in Planning and Mining

w w w . a m g - b r. c o m 55
AMG MINING
Operations and a postgraduate in
Mineral Processing, at University of
Queensland in Australia, Fabiano
Costa, has much to be proud of.
He began his young career, still at
the age of 16, working in the family
mining business and later on as
an operator of heavy equipment
in the extinct guas Claras Mine,
56 July 2017
former MBR, which today is the
giant Vale. For six years he was a
Mining Engineer at Samarco until
he left to explore other horizons
in Chile, Canada and Australia,
through BHP Billiton, a global
leader in natural resources. In Laos,
Southeast Asia, he was part of the
implementation of the largest copper
 BRAZIL

and gold mining in that region. leading a project that, along with
Later in 2011 he took over the other business of the Brazilian unit,
operations of the AMG mine in will account for almost half of the
Brazil (former CIF Mining), and over groups total outcome in 2020.
his management the mine became
the most profitable company in
the group. Soon he took over the
second unit, becoming the president
of AMG in Brazil. He is currently

w w w . a m g - b r. c o m 57
INDONESIAN MINING
ON THE WORLD STAGE
Written by Nye Longman Produced by Richard Deane

59
PT Merdeka
Copper Gold Tbk:
Financially and
environmentally
sound, the Tujuh
Bukit Project
in East Java is
set to be one
of Indonesias
finest mines

W
ith production already underway at
Indonesias Tujuh Bukit Project in
East Java, the company in charge, PT
Merdeka Copper Gold Tbk, is already proving its
worthiness for such an important undertaking. An
Indonesian-owned operation, the company is set to
oversee a profitable, safe, and sustainable mine that
will pay dividends for shareholders as well as the
local community. We speak to Merdekas CEO Colin
Moorhead to discover how one of the countrys most
promising mines in recent years will make the grade.
With an estimated Mineral Resource of some 99

60 July 2017

million tonnes of ore at an average
grade of 0.8 grams per tonne of gold,
and 25 grams per tonne of silver, the
near-surface ore deposits contain
approximately 2.45 million ounces of
gold and 79 million ounces of silver.
The underlying porphyry deposit has
an Inferred Mineral Resource of some
1.9 billion tonnes at estimated grades
of 0.45 percent copper and 0.44 grams
per tonne gold making it one of the
largest projects of its kind in the world.
w w w. m e rd e k a c o p p e rg o l d . c o m
AFRICA
All told, the porphyry is estimated
to contain 28 million ounces of gold
and 19 billion pounds of copper.
I come from 30 years mining
experience working on some of
the largest mines in Australia and
PNG, he explains. Ive been asked
to build a technical team capable
of taking Tujuh Bukit to those
standards. Im proud to say we could
take anyone from Australia and
they would be impressed with our
61
ATTITUDE.
RELIABILITY.
KINDNESS.
AWARENESS.
TEAM WORK.
ORGANIZED
We are a Heavy Equipments
Rental company with more than
300 Units of Equipments. We
also experienced in Earth Work
Construction services, Toll Road,
Dam and Mining Services.

PT UNITEDA ARKATO
www.arkato.com | uniteda@arkato.com
Rumah Gadang Office @ Jalan Pinang Ranti II
no 44 Jakarta Timur 13560 Indonesia PT Arkadaya Hak
www.arkadaya.co
Tel: (+62-21) 801 1647, 809 8049
info@arkadaya.co
kato Persada PT Arkadiya Fourhaka Indonesia
om www.arkadiya.co.id
om info@arkadiya.co.id
 AFRICA

construction and operating standards. Operations

Merdeka is listed on the Indonesia Stock
Exchange following a successful IPO in 2015
and controls the companies that hold the Tujuh
Bukit mining leases. These consist of PT Bumi
Sukesindo (BSI), which is permitted for mining
production, and PT Damai Sukesindo (DSI),
which holds the adjacent exploration permit. The
company is fully engaged in Indonesias mining
industry and, working to international standards,
is focussed on developing the countrys gold,
silver, copper and other mineral deposits.
The company has three major Indonesian
shareholders, one of which is PT Saratoga Investama
Sedaya, Tbk the countrys premier investment-
holding company, PT Provident Capital Indonesia,
a leading investor in Southeast Asia, and Pak
Garibaldi Thohir. This winning combination ensures
that the mine will remain liquid throughout its life.
The technical mining potential in Indonesia is
huge, Moorhead comments. It has some of the

What we aim to do is create an

internationally respected, high standard
and high integrity mining company
Colin Moorhead, CEO

w w w. m e rd e k a c o p p e rg o l d . c o m 65
PT MERDEKA COPPER GOLD TBK

biggest gold and copper deposits This could set us up as a 30 plus

in the world. What we aim to do is year copper-gold producer.
create an internationally respected, The oxide gold silver development
high standard and high integrity commenced operations in December
mining company. Tujuh Bukit has a and produced its first gold in March
typical epithermal gold oxide cap 2017, just 18 months after construction
that has been developed as an open work started. This mine offers low
pit mine, overlying a two billion tonne costs and high margins. Using
sulphide porphyry copper conventional open pit mining,
deposit that could be the ore is crushed and
developed in stages The number of agglomerated before
as a series of mass staff at PT Merdeka being stacked on a
underground mines. Copper Gold Tbk heap leach pad where

1,500
PT MERDEKA COPPER GOLD TBK

68 July 2017
 AFRICA

the gold is dissolved in a weak cyanide solution.

The pregnant solution is then pumped to an
ADR (absorption, desorption, recovery) plant
where gold and silver is recovered and produced
as dor. Initially the operation will process four
million tonnes of ore annually and will produce on
average 100,000 ounces of gold and up to 300,000
ounces of silver per year over the next decade.
Looking further ahead, Merdeka is also conducting
a study on expanding the mines heap leach
capacity to 50 million tonnes and its production

w w w. m e rd e k a c o p p e rg o l d . c o m 69
 PEOPLE
ACHIEVEMENT
DEDICATION

Madhani provides clients with a complete pit to port mining solution. Our modern fleet of
mining equipment includes hydraulic excavators ranging up to 350 tonne & haul trucks up
to 150 tonne capacity.

Madhani construction services cover all commodity types and include mine site
infrastructure and ore processing/handling facilities. Construction capabilities include
airstrips, containment dams, equipment maintenance workshops, site camps, fuel storage
tank-farms, explosive magazine facilities and site office complexes. We can supply, install
and operate crushing plants, conveyor systems and port loading facilities.

We are always ready to meet the needs of our clients no matter where they are located.

Office Address:
PT Madhani Talatah Nusantara, Alamanda Tower 12th Floor,
Jl. TB Simatupang Kav. 23-24, Jakarta 12430, Indonesia CONSTRUCTION AND MINING CONTRACTORS

Web: www.madhani.co.id | Email: info@madhani.co.id


rate from four million tonnes to
six million tonnes per annum.
The second opportunity at Tujuh
Bukit is to develop a series of
underground mines to exploit the
massive porphyry copper gold deposit
that underlies the oxide mine. We are
currently doing the pre-engineering
to put an exploration decline into the
porphyry which sits below the oxide
mine we are operating, Moorhead
adds. That upper high grade zone
(UHGZ) of that deposit is estimated
to contain about 300 million tonnes
at 0.8 percent copper and 0.8 grams
w w w. m e rd e k a c o p p e rg o l d . c o m
AFRICA
of gold. The decline will help
Merdeka acquire the data needed
to support a prefeasibility study for
the first mass underground mine.
Sustainable mining
The journey to developing one of
Indonesias best deposits, and
with that, one of its most reputable
mining companies, has not been
easy. Issues over ownership and
permitting slowed progress before
a single brick was laid. And once
that had been taken care of, the
company had the weather to contend
71
PT MERDEKA COPPER GOLD TBK

of PT Bumi Sukesindo (BSI), which is permitted

for mining production, and PT Damai Sukesindo
(DSI), which holds the adjacent exploration permit.
The company is fully engaged in Indonesias mining
industry and, working to international standards,
is focussed on developing the countrys gold,
silver, copper and other mineral deposits.
The company has three major Indonesian
shareholders, one of which is PT Saratoga Investama
Sedaya, Tbk the countrys premier investment-
holding company, PT Provident Capital Indonesia,
a leading investor in Southeast Asia, and Pak
Garibaldi Thohir. This winning combination ensures
that the mine will remain liquid throughout its life.
The technical mining potential in Indonesia is
huge, Moorhead comments. It has some of the
biggest gold and copper deposits in the world. What
we aim to do is create an internationally respected,
high standard and high integrity mining company.
Tujuh Bukit has a typical epithermal gold oxide
cap that has been developed as an open pit

We have a commitment to spend

1.5 percent of our return revenue
capital on local projects
Colin Moorhead, CEO

72 July 2017
 TOTAL
EXPLOSIVES
SOLUTION!
WHY DAHANA?
DAHANAs line of business covers Explosives Manufacturing, Drilling & Blasting Services and Related Services for customers
throughout Indonesia and ASEAN Region. Dahanas explosives users comprise of Mining Industry, both metal and non
metal; Quarry & Construction such as cement, asphalt and andesite quarries and construction projects such as dams, roads,
tunneling, irrigation, harbor and building demolition; Oil & Gas Sectors such as oil well perforating, seismic prospecting and
also defense related.

Owing to its 25-year experience, DAHANA enjoys extensive customers trust for its proven exemplary integrated explosives
services for various purposes and conditions, including bench blasting, trench blasting and underwater blasting, which are
quite complex. Dahana has been able to handle the whole blasting process, starting from the designing, calculation, drill
hole preparations, explosive configuration, explosives supply, blasting, up to the operational security.

DAHANA has been in operation for drilling and blasting work in more than 20 sites scattered in Indonesia under the support
of its On Site Plant (OSP) and Mobile Manufacturing Truck (MMT), among others, is the one in operation at Mine Site of PT
Bumi Suksesindo (BSI) in Banyuwangi, East Java.

Local Content Customization Go Green Total Service

As a domestic company,
DAHANA uses local materials
in the country for the products
and services it produces. It is
a form of approbation and
support for the independence
of the domestic industry.
Menara MTH 17th floor,
Jl. MT Haryono Kav. 23
Jakarta, Indonesia
With the support of Energetic
Materials Center (EMC) as
a center for production and
research and development
of energetic materials,
DAHANA is able to answer
the challenge for explosive
material tailored to a variety
of terrains and purposes.
www.dahana.id
corporate@dahana.id
Solution
DAHANA constantly grows
The integrated Services
along with the environment
of DAHANA range from
in their business activities The
production of explosives,
Green Concept applied to
drilling and blasting services
both of the management of
to related services such as
buildings and products has
demolition,warehousing,
resulted in numerous awards
consulting and licensing as
both nationally and
well as the mobilization of
internationally.
explosives, also the explosives
services for defense as
propellants for large munition
and small munition, rocket,
PETN and warplanes bomb.
PT MERDEKA COPPER GOLD TBK

74 July 2017
 AFRICA

w w w. m e rd e k a c o p p e rg o l d . c o m 75
OUR CLIENTS LIKE OUR VALUES
Openness Trust and Integrity Passion for Quality
Teamwork Responsibility for our Actions Can-do: Safely
PT Prasmanindo Boga Utama, established in 1985,
is one of Indonesias preferred Catering and Camp
Services partners in the Mining and Oil & Gas
industries. We strive to be a best-in-class provider of
contract foodservice and support services; renowned
for our professionalism.

Better known in the market as PBU we predominantly

operate in remote locations across the archipelago
with leading Indonesian, Multinational and
International clients.

Our vast experience can be applied to the most

demanding of challenges and we are committed
to consistently deliver superior service in the most
efficient way, for the benefit of all our stakeholders.

PT. Prasmanindo Boga Utama,Wijaya Graha Puri Block F 33 - 34

Jl Wijaya II , Kebayoran Baru, Jakarta 12160, Indonesia
+62-21-7206621 | www.ptpbu.com | pbujkt@ptpbu.com

Email: info@psi-ind.com
Website: www.psi-ind.com

PSI Drilling Services & Support

Consistently providing successful, cost effective drilling solutions
throughout the South East Asian mining & energy sectors. Currently
operating in Indonesia, Malaysia, Thailand, Laos & Myanmar
 AFRICA

with. Having centuries of experience delays by using our status as an

locked into its workforce, Merdeka
has been able to shrug off these risks,
and ensure that the project has a
positive impact on local businesses,
the community, and the surrounding
environment. No small order.
We had the wettest year on record
which hampered our earth
works considerably,
owner-executor. I think if we were
using an EPCM arrangement we could
have had a large cost blowout.
Unlike many players operating
in the countrys mining space,
Merdeka is fully owned by locals,
with expats making up less than one
percent of its workforce. But the
companys commitment to

2012
Moorhead says. We Indonesia doesnt end
were able to handle there, as Moorhead
those impacts and explains: On

The year that PT

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w w w. m e rd e k a c o p p e rg o l d . c o m 77
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 AFRICA

the community side we have a commitment to

invest 1.5 percent of our revenue on community
social responsibility (CSR) projects.
We are tailoring those projects to the
needs of the people, which include capacity
building, scholarships for kids, and helping
businesses. We are in the early days of that.
The company initially also granted 10 percent
of its shares to the government of The Regency
of Banyuwangi, which has effectively granted
rights for local people to participate in these
mining projects. The further intention of the
share grant is to provide the community of
Banyuwangi Regency with sustainable economic
benefits from the gold mining project.

w w w. m e rd e k a c o p p e rg o l d . c o m 79
PT MERDEKA COPPER GOLD TBK
Protecting local water supplies is
essential, and no fewer than six dams
have been constructed with this
specific purpose in mind. Moorhead
adds: We have two process water
dams which take water from the
catchment, one storm water pond
which is a clay and plastic lined, and
three environmental control dams
that collects all the runoff. These
can also handle the extreme rainfall
events up to three times over. We
80 July 2017
also have a detox system to manage
cyanide and arsenic levels in excess
process water, backed up by mercury
scrubbers if required. Merdeka has
also spent over 15,000 man-hours on
safety training and continues to build
skills and awareness in this regard.
With the Tujuh Bukit Project now in
production, Merdeka has its sights
confidently set on the future dividends
that a mine of this size and quality
is certain to bring. Its shareholders
 AFRICA

own and control a number of other Indonesian

mining companies with assets and are looking
for where it makes sense to consolidate those
under Merdeka. In three to five years time we
will have that copper project to pre-feasibility
level and ready to construct and potentially
multiple operating mines producing a significant
amount of gold per annum. If we are successful
at that we could be a $3 billion company.

w w w. m e rd e k a c o p p e rg o l d . c o m 81
FOREWORD:
AN INTERVIEW
WITH GUINEAS
MINISTRY OF
MINES AND
GEOLOGY
WE ASKED DIAKHABY MAMOUNA OF THE MINISTRY
ABOUT ITS ROLE IN THE COUNTRYS MINING AND HOW
IT GOES ABOUT CHAMPIONING RESPONSIBILITY

Produced by Richard Deane

83
G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
Tell us briefly about the history of
the Guinean mining Mining and
the role that the Ministry plays
in promoting and protecting it.
Guineas mineral tradition is
centennial. Since ancient times,
Guineans have been exploiting
gold; a fact notoriously recorded
in the legendary voyage of King
Kankan Moussa in 1325 to Mecca.
However, it was not until
colonial times that the mining
industry was developed and the
minerals riches of the country
discovered, uncovering in the soil:
4 0 billion tons of bauxite,
at more than 40 percent
content of Al203, which
represent over a third of
global reserves of bauxite
2 0 billion tons of iron ore,
the largest and highest
grade of untapped deposit
of iron ore in the world
700 tons of gold, and
between 30 to 40
million carats of proven
reserves of diamonds.
84 July 2017
The diversity and quality of the
minerals coupled with 320 km of
seacoast on the Atlantic allowing
for evacuation through deep-water
ports has helped the development
of the Guinean mining Mining.
Over the years, Guinea has
risen to become both Africas
largest producer and the Worlds
second-largest producer of
bauxite. The mining industry
accounted for about 15 percent
of the countrys gross domestic
product in 2016. Mineral exports
of bauxite, diamonds and gold
accounted for 80 percent of the
nations total exports in 2016.
With the advent of its transition
into a democratic state in 2010,
Guinea, through its Ministry of
Mines and Geology, has undergone
a series of reforms to promote
transparency, accountability
and sustainability in the mining
Mining. The Ministry is keen
on protecting and ensuring the
judicious use of these resources
for sustainable economic
growth and development.
 AFRICA

w w w. m i n e s . g o v. g n / e n 85
G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
Outline the importance of the
forthcoming Symposium of Mines
in raising the profile of Guinea.
The organisation of this event in 2017
is pivotal to the departments mining
promotion policy. The Symposium
Mines Guine (SMG) is designed for
a better understanding of Guineas
mining and investments potential.
The SMG will draw a clearer
picture of Guineas business
climate as well as the governments
strategic orientations and reforms.
The Ministrys goal is to appeal to
More information
about SMG is
available online:
86 July 2017
key mining players and connect
qualified investors to Guineas
largely untapped resources and
promising projects. Industry
leaders, junior companies,
investors, institutions will receive
detailed briefings on mining and
exploration projects. In short the
SMG will allow us to develop a
strong networking value chain.
The aim is to organise the event
on annual basis and make it
West Africas definitive meeting
place for mining professionals.

Can you give us an overview of
national industry developments
and investment?
The Ministry of Mines and
Geology has implemented
comprehensive and courageous
structural and institutional
reforms to enhance productivity,
accountability and sustainability
in the extractive industry. Those
steps include among others:
The modernisation of its
mining cadaster which is
now available online at www.
guinea.miningcadastre.org
The creation of a one-stop-
shop for mining projects, with
an internet portal covering all
relevant information on permits
and authorisations. In total, 107
permits and various authorisations
issued by 13 ministerial
departments during the year 2016
can be found on the portal.
The implementation of the
Master Plan for Mine-Related
Infrastructure Development,
notably through the signing of the
agreement to pool infrastructures
AFRICA
related to mines between major
companies such as CBG, GAC,
Rusal Dian-Dian and the State.
The establishment of a
fully operational National
Mining Commission for
greater transparency.
The consolidation of these
reforms initiated since 2010 has
favored investment commitments
in 2016 of more than $2.4 billion in
the bauxite industry alone. Mining
companies such as Dadco, Alcoa,
Emirates Global Alumina, Anglo
Gold Ashanti, Managem have all
heavily invested in the Guinean
mining Mining. Lenders such as IFC,
Socit Gnrale, BNP Paribas,
UFK, Overseas Private Investment
Corporation, Socit Gnrale de
France, Natixis, Crdit Agricole, ING,
Africa Finance Corporation have in
the past year alone financed many
major mining projects in Guinea.
Production in the bauxite industry
is predicted to reach 60 to 80
million tons by 2020. Production
in the gold Mining is expected to
reach 65 millions tons by 2020.
w w w. m i n e s . g o v. g n / e n 87
G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
What are the Ministrys
regulations and/or views on the
importance ofenvironmental
responsibility?
As stipulated in the Mining Code,
any mining activity undertaken
must comply with the legislation
and regulations governing
environmental protection and
management as well as health.
In particular, any application
for an authorisation or mining
operation permit must include
an Environmental and Social
Impact Study in accordance with
the Environmental Code and
its implementing regulations as
well as internationally accepted
standards in this area.
Administrative requirements
depend on the extent of the
scheduled work, ranging from
simple Environmental Impact
Notice for an Exploration Permit
to a detailed Environmental and
Social Impact Study including
for example a Hazard Study,
a Risk Management Plan.
Aside from these regulations and
legislation, the Ministry of Mines
88 July 2017
and Geology has implemented an
environmental and social strategic
evaluation (ESES) process, as a
tool of sustainable development
enabling a better consideration at
the national level of environmental
and social concerns.
The ESES aims to:
(I) a ssist the Government in
identifying nationally the
environmental and social
impacts of existing and
future mining activities so
as to avoid, so as to avoid,
mitigate or compensate them
by adopting an appropriate
mode of governance;
(Ii) p rovide the necessary
information and knowledge
to support ongoing dialogue
with stakeholders.
Can you describe any current,
relevant legislation?
Guinea adopted a new mining
code on 9 September 2011,
which was amended by the 2013
Bill. The new amended code
has been widely acclaimed.
w w w. m i n e s . g o v. g n / e n 89
90 July 2017
 AFRICA

How important is sustainability?

What is your major goal?
The Ministry of Mines and Geology main goal
is to transform the non-renewable resources of
Guinea into sustainable development gains for
all stakeholders. In that spirit, the government
in partnership with the World Economic Forum,
the International Finance Corporation, UNDP, the
African Minerals Development Center and GIZ,
launched and achieved the Responsible Mineral
Development Initiative (RMDI) during 2016-2017.
The Ministry with its partners gathered
together for seven months mining operators,
local communities, civil society and the state
around a shared mining vision to identify
priority themes, areas for joint actions and
approaches to sustainably advance Guinea
mineral development. The recommendation
that emanated from this initiative is informing
the governments national strategic plan for the
mining Mining. The Ministry has a win-win and
effective business approach to the development
of the industry. In that respect, it has create a
one-stop shop to promote greater efficiency
in the delivery of non-mining permits and
cut down on cost for mining companies.
For a sustainable approach to community
development, the Ministry in collaboration
with the PNUD, elaborated last month a
CSR policy for the mining Mining.

w w w. m i n e s . g o v. g n / e n 91
GUINEA GOES
INTERNATIONAL
Written by Wedaeli Chibelushi
Produced by Richard Deane

93
We talk to SOCIT MINIRE DE BOK-
WINNING AFRICA (SMB-WAP) about its fast-
paced strict compliance bauxite mining project in
Guinea. Managing Director Frederic Bouzigues
and CEO of the groups Winning Logistics
Services Bosco Lau explain the process

A
ccounting for 26.9 percent of the worlds
total reserves, Guinea is the number one
bauxite producing country globally. The
small, yet-resource rich West African country
exceeds competitors like Australia, and furthermore,
Guinea is predicted to rapidly increase its bauxite

4
exports in the coming years. Asian-Guinean
consortium Socit Minire de Bok-Winning Africa
(SMB-WAP) plays a major role in this future.
The consortium, consisting of four international
entities, is currently mining bauxite in Guineas Bok
region, then transporting it to China. SMB-WAP prides Members of the
itself on fast-tracking, but with strict compliance SMB-WAP
that is going from excavation to export in minimal consortium:
time. To find out how SMP-WAP balances speed, Winning Shipping Ltd
compliance, sustainability and spending, we spoke UMS International Ltd
to Managing Director Frederic Bouzigues and Bosco Shandong Weiqiao
Lau, CEO of the groups Winning Logistics Services. The State of Guinea
SMB-WAP was established in 2014. Frdric
Bouzigues, who has lead the group for two years,

94 July 2017
calls the consortium a union of some
of the strongest companies in their
respective sectors. Said firms are
the Chinese Wei Qiao Group (biggest
aluminium manufacturer in the world),
Singaporean Winning International
Group (transporter of 90 percent of
Chinese bauxite imports), UMS Guine
SARL (leader in West African logistics)
and the State of Guinea, which is a 10
percent shareholder in the project.
A year after forming, SMB-WAPs
first barge carried bauxite from
Guineas port of Katougma. Before
the consortium could achieve this
goal, it needed to acquire permits from
the government. We firstly obtained
a surveying permit so that we could
do reconnaissance ourselves on
an area that was not limited to the
main mining body area in Guinea, in
fact the first mine we explored and
exploited had never been fallen into
the radar of any other party when
the others sit on the countrys high
grade reserves for decades without
w w w. s m b - g u i n e e . c o m 95
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SMB Winning is working with the Vermeer T1255 Terrain Leveler SEM in West Africa. At this moment they have 2 Terrain
Levelers working in their mines in Guinea-Conakry. Since they started working with Vermeer in October 2016 they know
the benefits of working with the Vermeer Terrain Leveler SEM first-hand, starting with their ability to bypass primary
crushers. Most material is less than 200mm and the biggest part even less than 100mm. This enables SMB Winning to

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to load the material directly on barges for
ocean transport to the refinery in China,
says Ruben de Meijer, General Manager
Vermeer West Africa.
Another advantage is the selective mining.
With the help of GPS and the patented tilted
drum it is possible to follow ore-bodies and
select the high-grade ore from the lower
grade. The patented tilted drum makes it
also possible to make mining floors
on-grade. Especially in the rainy season in
Guinea-Conakry which enables SMB Winning
to continue their operation.
The Vermeer Terrain Leveler SEM is a very
maneuverable and stable 2 track machine
with a low center of gravity. SMB Winning
has been cutting 21% / 12 degrees, but the
machine is able to cut up to 36% / 20
degrees. The bauxite mines in
Guinea-Conakry are hilly, so this is an
extremely important benefit. It allows you to
mine in all places of the mine without
preparation work needed
While starting to work with the Vermeer
Terrain Leveler SEM SMB Winning had 3
Vermeer people on site to train the operators
and technicians about operation and
maintenance of the machine for 6 months.
After the training SMB Winning continued to
operate with 1 supervisor on site (24/7
support). And both machines are operating
24/7 from day 1. By setting up operation this
way they are able to react quickly.
Vermeer machines are used to work in the
most remote areas where you cant take
anything for granted. Vermeer West Africa
is co-operating with SMB Winning to have a
good parts availability on site to keep the
machine running. We know that 1 hour
downtime in the mining industry can cost
a lot of money and it is our job as a partner
to support the customer to lower operating
costs says Ruben de Meijer, General
Manager Vermeer West Africa. Vemeer West
Africa also offers factory support for in-depth
training and advice about mine planning,
GPS sysems etc. to get our customers work
most efficiently.
The co-operation with SMB Winning has
been a great partnership. They give us the
tips and ideas to improve the machine. Every
environment has its own particular
circumstances and from that we can learn
as distributor and manufacturer.
SMB Winning is using the Vermeer Terrain
Leveler SEM for mining, but the machine
can also be used to construct haul roads
etc. as well. With the creation of a smooth
surface it can increase the average speed of
the trucks and lowers the wear and tear of
these trucks. As the speed increases a lower
amount of trucks is needed, which can lower
the CAPEX.
Vermeer also offer a wide range of
trenchers and HDD drilling rigs, which can
be used for utility installation (electricity,
water, telecommunication etc.) and for
drainage purposes. In addition, Vermeer
also offers land-clearing equipment, like
forestry mulchers, grinders and chippers to
make your mine ready for operation in an
early stage.
B O K M I N I N G C O M PA N Y ( S M B )

98 July 2017
 AFRICA

doing anything, we said we boleh (Malay word

for can do) Bouzigues says. This took almost
nine months. Subsequently, we obtained our
exploration permit and followed the mining code to
the letter, giving the government regular updates.
SMB-WAPs pooled financial resources (Lau
notes that the projects capital expenditure is $600-
700 million) and in-house competences enabled it
to progress rapidly from this point. The consortium
carried out rapid drilling campaigns with its own
equipment and staff, and with the help of
its on-site laboratories, staff were easily

2014
The year that SMB-
able to determine which areas were
prospects. Once the results were
positive, we applied for the
mining license since we did
WAP was founded not need to waste time for
raising construction funds, seeking
consultants/contractors, nor securing
offtake. This came six months after
obtaining the research permit and starting
the production phase, Frdric Bouzigues says.
To enable production, the consortium
established two entities in Guinea. Frdric
Bouzigues explains: We have Bok Mining
Company (SMB), which mines bauxite in the Bok
region, and Winning Africa Port SA (WAP), which
manages all of the river port terminal operations
on the Rio Nuez for the shipping of bauxite.
The bauxite mining industry does not use any

w w w. s m b - g u i n e e . c o m 99
QUALITY FIRST
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 AFRICA

products, processing, drying or burning. Thus,

In all
excavation is the sole element in the process.
Frdric Bouzigues adds: Its worth remembering aspects, the
that at SMB we are dealing with people whose process is in
main task is logistical. We mine (moving ores from
compliance of
underground to the ground) the bauxite, load it
in trucks that transport it to the ports, and from all regulations
ports to boats it is transported by barges. and CSR.
With a field strength of more than 350 trucks (e.g. We do this
HFO tank trucks, fuel tanks and cement tanks), UMS
carries out the land transport process. The West
to unlock the
African companys trucks travel via the only road countrys
leaving the mine, and transport the bauxite to the port mineral
of Katougouma. After they arrive, The Winning Group
takes over the process. Winning built the river port
and river
of Katougouma with consortium funds. The harbour transportation
covers an area of 41 hectares and has four quays worth, and for
for the 17 bauxite boats of 8,000 tons. Winnings
the country
boats ship the bauxite to China to be processed.
According to Lau, trans-shipping is a major to fund the
component of the process. It is the worlds biggest development
transhipment system, he says. Similar standard
of other
operation models can be found in USA, Europe,
Middle East, Australia and Indonesia. However, there business
is no match of scale. Furthermore, the Winning sectors
Groups 30 odd cape size vessels ensure ocean BOSCO LAU
freight competitiveness and stability of Guinean
products going to the far away PRC market.
After the bauxite arrives in China, it is finally
processed into aluminum by the Wei Qiao Group.

w w w. s m b - g u i n e e . c o m 101
B O K M I N I N G C O M PA N Y ( S M B )

Bauxite is transformed into alumina development of other business sectors,

in a refinery, and then transformed
into aluminium with a smelter.
The journey from bauxite to
aluminium is achieved by prudent,
disciplined, quick and timely
decisions. Lau explains: This is
possible because of the mutual
trust with the country
like agriculture, industry and tourism.
Custodians
Frdric Bouzigues explains that
SMB-WAP is heavily involved with the
communities at all of its sites (near
the river terminals, in extraction
areas, in the construction of

1,500
[Guinea] and the people, living and logistics bases).
and the consortiums The consortium
own fund, mainly focuses on
competence The number of jobs that employment -
and SMB-WAP has created SMB-WAP is
skilled staff committed to
to physically employ in all the
construct the project localities in which the
without the need of project operates. It has
external assistance. also built a literacy centre
SMP-WAP stresses that which enables young people
its fast-track process does not without training to gain skills, then be
come at the expense of corporate hired by the consortium. In association
social responsibility. Fast-track is with the Jiantsu Marine Institute, the
not achieved by cost saving, Lau Winning Group offers courses to train
says. In all aspects, the process is future Guinean tugboat and ocean-
in compliance of all regulations and going ship sailors: a worldwide market.
CSR. We do this to unlock the countrys Lau describes further community
mineral and river transportation efforts. We support the state
worth, and for the country to fund the mineral reserves survey and initiated,

102 July 2017

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 AFRICA

sponsored and supported city planning studies

by Surbana of Singapore and the Bok special
economic zone. The consortium has also arranged
The
for Chinese and Singaporean potential investors project has
to explore investment opportunities in Guinea, he attracted and
states. SMB-WAP also uses its logistics system
worked with
to bring reliable, competitive two ways flows of
goods and materials between Guinea and Asia. stakeholders
We ask how SMB-WAP ensures minimal of international
environmental damage. The environmental standard
impact is minimal because we primarily have an
operation which is exclusively excavation without
from all over
transformation, Frdric Bouzigues answers. the world
No drying, burning or adding chemicals. We are BOSCO LAU
lucky to have bauxite treated as a block, which
does not spread much dust in the air. Moreover,
making use of the unique high temperature
high pressure high traffic volume operation
environment, the consortium innovatively caused
the haulage road to basically a dust free corridor.
Additionally, SMB-WAP has built programs for the
rehabilitation and reorganisation of excavated areas.
It will replant crops such as cashew and palm trees.
The consortium also recognises that it has an
economic responsibility to the people of Guinea.
Professional services network PwC monitors the
payment of foreign exchange taxes from SMB-WAP
to the state and SGS analysis of cargoes. It is
interesting to refer to an important point which was
made precisely by PwC on the bauxite market,

w w w. s m b - g u i n e e . c o m 105
B O K M I N I N G C O M PA N Y ( S M B )

Frdric Bouzigues says. SMBs entry
into production has enabled Guinea
to double its exports of bauxite from
2016 with about 12 million tonnes
of bauxite already exported.
SMB-WAP presents other impressive
statistics. As of 2017, the consortium
will increase its production, by
adding one more port (the port of
Dapillon) and another set of marine
logistics equipment, making it the
first bauxite company in the Guinea
to export 30 million tons. Bouzigues
expects this total to rise to 35 million
from 2018 to 2022. In 2016 alone,
SMB contributed US $30 million
in mining and export taxes.
None of these achievements
would have been possible without
SMB-WAPs partners. The
project has attracted and worked
with stakeholders of international
standard from all over the world,
Lau comments. The consortium
is supported by the expertise and
resources of its partners, which are
all leaders in their respective sectors.
These partners include Vermeer (USA),

106 July 2017


Sinotrucks (China), Terex (Germany)
and Bureau Veritas (France).
Despite substantial support from
partners, SMB-WAP must retain some
credit for itself. The consortium has
defied borders in order to create an
international team of mining experts,
while priding itself on giving back. The
consortium recognises the potential
of Guinea and its people, thus it
empowers communities and boosts
the countries overall bauxite exports.
SMB-WAP plans to continue on the
economically responsible trajectory.
AFRICA
We have two river terminals, each
with a processing capacity of about 25
million tons of bauxite. So, if we have
enough reserves, our consortium will
be able to reach a production of 50
million tons. Combined with taxes this
would have a considerable impact
on the countrys economy and its
development, Frdric Bouzigues
concludes. With this success and
the consortiums logistics strength,
SMB-WAP has decided to kick
off an intensive feasibility study of
building a refinery in Guinea.
Beyond bauxite, the established
infrastructure can and will be used
for import of capital goods and CKDs
(for the assembling industry to be
developed), and the development of
a regional hub in Boke for the West
Africa region. For instance, fertilizers
and pesticides can be imported
cheaply and reliably to support a
cashew nut project in the pipeline.
w w w. s m b - g u i n e e . c o m 107
futureenergy
andfinance
AUSTRALIA
31 October 2 November 2017
Melbourne Convention & Exhibition Centre