february the redpath group’s global newsletter

INSIDE

Africa | Asia | Australia | Europe | North America | South America

redpathmining.com

REDPATH EUROPE: SLAVKALIY’S NEZHINSKIY

PROJECTFREEPORT’S GRASBERG BLOCK CAVE Production Drawbell Excavation Begins

REDPATH AUSTRALIA Celebrating a Decade

THE REDPATH GROUP’S GLOBAL NEWSLETTER

2019FEBRUARY

Safety - First, Last and Always.

THE REDPATH GROUP’S GLOBAL NEWSLETTER

redpathmining.com

Table of Contents

0203

0813

12171220

Safety and President’s Message

Global Community

Redpath Europe: Slavkaliy’s Nezhinskiy Project

On-site Miner Details

Safety - First, Last and Always

Guest Spotlight

Submit your content to be considered for inclusion in the next issue of the Advance: [email protected]

On the cover: The winding towers of the cage shafts that support the shaft sinking roadheaders on site at the Nezhinskiy potash mining and processing factory in Belarus.

“It is hard to believe that 2019 is already upon us. In 2018, we achieved 16 million hours of work throughout our global operations and by all indications we should be even busier this year than last.” Derek Budge, Director of Health, Safety and Environment The Redpath Group

PRESIDENT’S MESSAGE

SAFETY MESSAGE

“We have just completed a very successful 2018, setting a new standard for safety performance, as well as turning in good operational performance.”George Flumerfelt, Chief Executive Officer The Redpath Group

Redpath enters 2019 in a healthy and confident state of mind. Our work in hand (order book, backlog) remains healthy and Redpath continues to be in very good financial shape.Looking to 2019, the world faces several areas of economic uncertainty. The trade war between the United States and China is of particular concern to the mining industry, as China is a major consumer of metals. A downturn in Chinese demand would certainly have a negative impact on metal prices. In Europe, Brexit (Britain leaving the European Union) is adding to global uncertainty and nervousness. We have Safety - First, Last and Always.

2

a lot of work under contract for many top tier mining companies where we are fortunate to have a core number of long-term contracts. We are also deploying some state-of-the-art shaft sinking technology at our Slavkaliy project in Belarus this year and are entering our first full year of contract mining at Glencore Lady Loretta in Australia. We are in the process of signing up new work in Africa and have recently won several new projects in Canada that we are currently mobilizing. It all adds up to an exciting year. I look forward with confidence and I know that the Redpath team will again meet our clients’ needs in a safe, efficient and timely manner.

Redpath has achieved the best safety record in its history, but there is always room for improvement. One of the ways we can improve our safety performance is to maximize the effectiveness of our safety management systems and programs. Engaging and empowering our workers ensures a team-based approach which strengthens an already strong safety culture. Looking after one another and not being afraid to speak up concerning safety issues including stopping and correcting unsafe acts, helps drive safe behaviors.

Back in 2013 we introduced the Redpath Fatality Prevention Program globally. This initiative was, and still is, driven by senior operations personnel in all business units and is a large part of the continuous improvement we have made in safety performance. Each new field employee is exposed to the Fatality Prevention Program when they are hired and through discussion and training they should acquire a thorough understanding of the 11 Fatal Risk Elimination Protocols and the 10

Cardinal Rules, paying particular attention to the ones that apply to the work at hand. The program is designed to promote discussion and awareness of the highest hazards in our workplaces so that we may put the controls in place to eliminate or greatly reduce the possibility of fatalities. Annual refresher training is an important part of the program, as is the formal Fatality Prevention Program Audit process. In my travels to Zambia and the United States, I have been asked by workers to test their knowledge of the Cardinal Rules. In several instances I have been asked if I want to hear them in order #1 through #10 or starting at #10 going backwards through to #1. Pretty amazing. In Indonesia they wear hard hat stickers that say, “Ask me about the Cardinal Rules”.

There are many new employees entering the industry therefore adequate training is critical to our future success in safety. Please stay vigilant at all times and if you are experienced at what you do, please share your expertise and knowledge with your co-workers.

redpathmining.com 2019FEBRUARY 3

JOHANNESBURG WRAPS UP 2018 IN SUMMER STYLE! Contributor: Kelly Farthing, Marketing and Communications OfficerRedpath South Africa wrapped up 2018 with a relaxed, summer-inspired celebration. The loading bay located in the regional office was transformed into a colourful seating and dance area, complemented by a gourmet hamburger

food truck, a Mexican taco truck and an old school jukebox machine. End of year celebrations are always a time to reflect back on the hard work done by all members of the team, and to take a short break to gear up for the year ahead.

SOWETO DERBY Contributor: Kelly Farthing, Marketing and Communications OfficerA small group of staff members from head office attended the highly anticipated Absa Premiership soccer match between Orlando Pirates and Kaizer Chiefs, at

the FNB Stadium on Saturday, October 27, 2018. On this occasion, the Orlando Pirates claimed the Soweto Derby bragging rights after winning against Kaizer Chiefs 2-1.

CHRISTMAS TAKES ON NEW MEANING WITH REDPATHContributor: Denny Dyatmoko, Human Resources / Industrial Relations OfficerChristmas time is often a celebratory time, and signifies the end of one year and beginning of another. It can also prove to be a difficult time of year to be far away from family when you are working on site. Being physically far from home doesn’t mean being far from the Christmas spirit, as many can attest! During the 2018 holiday season, PT Redpath Indonesia colleagues gathered

The Orlando Pirates (nicknamed “The Buccaneers”) and the Kaizer Chiefs (nicknamed “The Amakhozi”) are long-time rivals that time after time draw massive crowds to matches, which are always guaranteed to be a fun and spirited day out.

(L-R): Royke Pinontoan, PTRI HR/IR Superintendent; Nicky Herault, General Manager, PTRI and Heri Susanto, Sangati Director.

The group poses during the Christmas celebrations.

The highlight of the day was the distribution of staff awards which were awarded based on votes from fellow colleagues.

redpathmining.com4

as one big family; the kind that radiates joy and togetherness, regardless of the lack of genetic connection. Many have remarked that there is a special warmth created on site that feels the same as home. On December 8, 2018, Redpath colleagues celebrated Christmas with their families, hosted by the Viadolorosa Church, Ridgecamp. With more than 400 employees in attendance, this year’s celebration felt rich and inviting. PT Redpath Indonesia management members, Nicky Herault, General Manager; Made Pasek, Engineer; James Buckle, General Superintendent, alongside PT Freeport Indonesia management representatives, Ronald Sitepu, underground contracts, and Heri Susanto, member of management for Sengati, were also in attendance.

An important takeaway from this time of reflection is to remain steadfast in the pursuit of safety, not only on the job site, but also in daily routines. Continue to work with heart, continuously improving yourself and your environment, in order to provide the best for your family and colleagues, through whatever challenges lie ahead.

INDONESIAN INDEPENDENCE DAYContributor: Ivan Agustian, Senior Engineer, Redpath Canada LimitedRepresented by Ivan Agustian and Joshua Artus, Redpath was welcomed warmheartedly to celebrate the 73rd Indonesia Independence Day in October, along with the farewell reception of the Ambassador of the Republic of Indonesia, His Excellence Teuku Faizasyah. The celebration took place at the Embassy of the Republic of Indonesia in Ottawa, attended by members of the diplomatic community, business fellows, and representatives from the Government of Canada. The occasion was an amazing opportunity to build a stronger relationship between Redpath and the Embassy of the Republic of Indonesia.

REDPATH STAMPEDE RUSTLES UP A GREAT TIMEContributor: Ivan Agustian, Senior Engineer, Redpath Canada LimitedThe steady rhythm of a country rock song reverberates off the walls. A veritable sea of cowboy hats and plaid shirts dance and spin in sync with the beat; faces beaming with smiles and laughter. Nearby, a mechanical bull gives its brave rider a run for his money, threatening to dismount him with every turn. The scene sounds like one you might find in a country music bar in the United States, not on a beautiful island in Southeast Asia, but that’s exactly where it is! Once again, the Redpath Stampede was hosted at the Freeport Project in Tembagapura, Indonesia. Nancy Emmerton, General Superintendent, and her team worked tirelessly to pull off the event in late September, and their efforts were well worth the while. Special guest, Canadian country music singer, Larry Berrio, gave this year’s Stampede a little extra spirit and excitement. Larry hails from Northern Ontario, Canada - Sudbury to be exact, in one of Ontario’s mining hotspots.This year’s event was very well attended, with over 300 cowgirls and boys shuffling, spinning and boot-

(L-R): Ivan Agustian, Senior Engineer, Redpath Canada Limited; Mrs. Andis Faizasyah, wife to the Ambassador of Indonesia; Mr. Teuku Faizasyah, Ambassador of Indonesia and Joshua Artus, Senior Project Controller, Redpath Canada Limited.

A participant shows the crowd how to ride a mechanical bull during the 2018 Redpath Stampede.

redpathmining.com 2019FEBRUARY

FOR THE LOVE OF THE GAME - MONGOLIAN YOUTH FIND HOCKEY PASSIONThere is an emerging interest in hockey among Mongolian youth these days, and the Canadian Embassy is stepping in to help it flourish.After recognizing the lack of hockey equipment, facilities and adequate coaching, a variety of organizations, including Redpath Mongolia, have offered support. A container of donated hockey equipment was shipped from Canada to Mongolia in late December, at which point the Mongolian Ice Hockey Federation took on the responsibility to distribute the equipment to children via local associations and hockey teams. In addition to the equipment, on-ice training sessions led by Canadian Nate Leslie, of Leslie Global Sports, was donated to players and coaches.

This initiative could not have been made possible without the collaborative and generous spirit conveyed by organizations from both countries. The project will come to a close in line with the end of Hockey Week in Mongolia, scheduled from February 16 to 19, 2019. If momentum continues, this will be the beginning of a strong hockey community for Mongolia’s youth!

Larry Berrio, seen at the far right, was accompanied to Indonesia by his guitarist and bandmate, Stephan Bernard (far left). Filling in from PT Redpath Indonesia and PT Freeport were members of the Liquid Band, a group consisting of mixed companies and departments.

A face-off between Mongolia and Canada is staged for the camera during the press conference for Hockey Week in Mongolia.

Cowboy hats and plaid shirts were the main garments of choice for the crowd attending the 2018 Redpath Stampede.

scooting to the music in a room reminiscent of an old saloon. Hats off for the efforts of the electrical group led by Ashley Gibblet, who ensured the bull was not running too wild around the saloon bar! Feedback from this event was without exception, positive. Everyone anticipates another great Stampede in upcoming years. Yee Haww!

5

redpathmining.com

Olympics Committee, former MP, S. Oyun sent video greetings from overseas and donated 2 million Mongolian Tugrik for the athletes. Armando Torres, CEO of Oyu Tolgoi LLC, said, “Our organization has a Donation Committee. In 2018, six humanitarian projects were funded, one of which was the “Labor” camp meeting with the Special Olympics.” He further made a commitment for additional support to be given to the Olympic athletes from the Donation Committee.B. Bayartsengel, Deputy Director of Redpath Mongolia LLC and Dayan Contract Mining, represented both companies, and brought forth a donation of $5,000.00. “Don’t worry about winning a medal at the Special Olympics; participation is the most important thing. I call our miners eagles. There is a saying that only falcons fly into battle. Therefore, I would like to call the Special Olympic athletes “falcons”. You could try to prove yourself, coming from the land of falcons, in Arabia, but the most important thing is to enjoy being there.” His speech was well-received by the attendees, and brought pride and warmth to the athletes. Additionally, he purchased two paintings by the talented B. Khuvit, an artist who has Autism, for one million Mongolian tugriks. In turn, B. Khuvit donated the money for his friends.

HARNESSING THE SUN’S POWER FOR CANNINGTONContributor: Mitch Gowland, Operations Manager, MetaliferrousRedpath have always been quick to support the South32 Projects team at Cannington over the last 20 years. Small projects outside the core scope of our mining contracts such as underground workshop construction, shaft refurbishment, haul road diversions, and construction of underground crushing infrastructure have demonstrated Redpath’s ability to apply our guiding principles, and ensure success through flexibility.In this continued spirit of collaboration, Redpath are proud to have played a major role in the recently commissioned state of the art Cannington Solar Farm.Redpath were exclusively accountable for the major earthworks required to establish the six hectare installation of 7,200 panels, generating over three

SPECIAL OLYMPICS WORLD GAMES 2019 GALA DINNER FUNDRAISERContributor: http://newspress.mn (translated from Mongolian)The Special Olympics: An evening full of love with “falcons” flying into battle.The 15th Summer Olympic Games will be hosted in Abu Dhabi, United Arab Emirates, and held in March, 2019. The games are being hailed as an extremely comprehensive team, involving 21 athletes with disabilities and seven supporters; in seven different sports.

Donations to cover expenses for the Mongolian athletes were raised at the Shangri La hotel. The reception was fully charged by the Shangri La Hotel and Terence Tan, General Manager, participated in event. At the beginning of the ceremony, Mr. Ulaan, a member of the Mongolian Parliament, and also a board member from the Board of Mongolian Special Olympics Committee, welcomed and called on guests to support the athletes. The head of the Mongolian Special

A young dancer performs during the fundraising gala.

The group poses for a collective photo during the fundraising gala.

(L-R): Armando Torres CEO of Oyu Tolgoi LLC, B.SARNAI (art painter), Marta Torres (Armando’s wife). Armando bought the art in the auction and also donated to the cause as well.

6


megawatts of power; making it one of the biggest off-grid renewable energy installations in Australia. A crew of eight civil construction experts in bulk earthworks and road construction were mobilised to site, along with a fleet of surface mining equipment. Substantial synergies within our existing Cannington Run of Mine scope free up resources to assist in the delivery of the foundation stage of this legacy project ahead of time and on budget. Kicking off the foundation stage then allowed panel installation to commence.Matthew Robson, Redpath’s Project Manager for Cannington, was quick to support the South32 effort to implement energy efficiency initiatives, adding, “South32 have been strong leaders with their approach to reducing greenhouse gas emissions through their very visible Climate Change Strategy. It has been a great opportunity for Redpath to align with that vision for this project. The success of a project of this scale relies on shared values, and it is obvious to me that Redpath and South32 certainly benefit from that at Cannington.”

REDPATH AUSTRALIA CELEBRATES ANNIVERSARYContributor: Gavin Ramage, Managing Director, AustraliaOn October 1, 2018, Redpath celebrated ten years in Australia. To commemorate the occasion, the Redpath Australia Brisbane office hosted an informal afternoon of socialising and refreshments with colleagues. In attendance were George Flumerfelt, Chief Executive Officer and Gavin Ramage, Managing Director, Redpath Australia. Congratulations to Redpath Australia on one decade of mine contracting excellence!

AWARDING AUSTRALIAN WORKPLACE EXCELLENCEContributor: Gavin Ramage, Managing Director - AustraliaEach year employees from the Brisbane and Perth offices are given the opportunity to nominate their fellow colleagues for corporate office Awards. These awards shine recognition on those employees who have achieved outstanding success over the past year. The awards encompass everything from safety, attitude, service to others and project management aspects. Here are the 2018 awards, and their respective winners:Platinum Award: Damien Lambert-Barker For his design and implementation of a Sibs Brake SystemS.T.A.R. Award: Mitch Gowland Recognising an all-rounder in service, teamwork, attitude and reliability.Outstanding Newcomer Award: Geoff Brown Recognising an outstanding newcomer who has demonstrated excellence in job performance, outstanding service to their department and/or projects, willingness to assist, dedication, initiative/creativity and promotes collaboration and cooperation.Outstanding Service to Projects: Terry Sallaway Awarded to the person who has provided fantastic service to projects and goes above and beyond the call of duty. …continued on page 13.

Overlooking what will become one of the biggest off-grid renewable energy installations in Australia. Congratulations to all corporate award

winners for 2018!

7

redpathmining.com

Project Name / Mine Name: Slavkaliy’s Nezhinskiy potash mining and processing factoryProject Location: Lyuban District, Minsk Oblast, BelarusManpower requirements: 336 total, including office and site personnel.Duration: The project began in 2011, and will continue through 2022. One major milestone in 2021 will be finishing both shafts including loading pockets, insets and shaft infrastructure. 2022 will mark the completion of underground development including 90,000 m³ in underground drifts and a bunker to store the ore.

Contributors: Frank Otten, Project Leader for DH; Jochen Greinacher, Managing Director for DHIn 2011, the planning phase for the Nezhinskiy mine near Soligorsk, Belarus, began. Our client is IOOO Slavkaliy, a company owned by the Russian oligarch Guzeriev and co-financed by the Chinese Sinomec Group. In July 2017, Slavkaliy and Deilmann-Haniel signed the contract for the construction of two freeze-shafts and approximately 9,000 metres of horizontal excavations for the Nezhinskiy Mine. A revolutionary technique is used for this: The sinking is carried out with a fully mechanised shaft boring machine called a Shaft Boring Roadheader (SBR) from Herrenknecht AG, which is based on the principle of a roadheader.The very low rock strengths that were measured permit the use of this process, in combination with the freeze shaft.

The handling of explosives as well as entering the bottom during the sinking process (driving, loading) is eliminated. Furthermore, the use of the SBR allows advance rates of three metres per day on average, which is a significantly higher rate than with conventional sinking methods. This is made possible

SLAVKALIY’S NEZHINSKIY PROJECTPotash Mining and Processing Factory

The decision to avoid conventional shaft sinking with drilling and blasting was made mainly due to the significantly improved safety and working conditions.

8


Nezhinskiy is a flat-lying potash deposit, which is currently being mined by OAO Belaruskali in longwall mines that have existed for over 60 years without backfill.

The SBRs used in Belarus were improved using the experience gained from the SBR used at the Canadian BHP Jansen mine. They were optimized specifically for the use in clay and sandy materials with a compressive strength of up to 100 MPa.

by the fact that cutting, transport of mined material and the installation of the concrete lining can be carried out simultaneously. Structure and operation of the SBRThe SBR is a combination of the machine components required for this process and a conventional shaft sinking platform. As a result, the following functions are performed on a total of eleven work decks: • Cutting • Extraction of the mined material from the bottom • Transport of mined material to the surface • Transport of people • Establishment of support • Ensure supply (electrics, hydraulics, ventilation, data, cooling water) A 1.2 metre telescopic boom, which can be rotated by 360°, is located directly above the shaft floor. At the end of the

boom there is a cutting drum with a diameter of 1.2 metres and a width of 1.5 metres, driven by 600 kW of hydraulic power. It can be equipped with either round shaft chisels or scraper blades, with which the rock is loosened. The cutting of the bottom is done automatically with star-shaped cutting patterns in 200 mm increments.

The rough ore is removed from the shaft floor using a Pneumatic Suction System (PNM system), which transports it through a 30 metre long pipe located in its center. An aero-cyclone transports the mined material to a bucket located on a bucket rotary table. On this table, which can be rotated by 180°, there is a bucket on one side, which is loaded via the PNM system, and an empty bucket on the other side. When one bucket is full, the rotary table is moved, the full bucket is transported to the surface for tilting, and the other one is connected to the PNM system. The air from the cyclone is cleaned via a dust extractor and discharged outdoors. The negative pressure is generated by three rotary blowers, each with a drive power of 315 kW. The exhaust air is approximately 70°C, which would normally lead to defrosting of the shaft wall. In order to prevent this, a cooling system was installed which transfers the heat via cooling water pipes to a cooling system

Installation of the new hydraulic driven automatic curb ring (developed by Deilmann-Haniel).

9

redpathmining.com

above ground. Two branches run through the entire SBR for transport. Each branch is operated by its own single-drum hoisting machine with 2.6 and 1.8 MW drive power respectively. The removal side, which is solely intended for the removal of the mined material, is separated from the service side, which is used for the transport of passengers, concrete and materials. After six partial cuts of 200 mm each (i.e. 1.2 metre depths, the machine will be moved by the amount cut), personnel must occupy key positions and extend all supply lines in advance. Work decks 2 and 6 are equipped with stabilizers that serve to brace and center the SBR and prevent oscillating movements; these are retracted before the repositioning process. The SBR is then left hanging; re-centered, and aligned, using four stage winches with a load capacity of 50 tonnes each.Schedule and Key Milestones Work began on the construction site in 2017 with the freezing station and its six

refrigeration plants offering a capacity of 3,600 KW. Soon after this installation was completed, the icing was put into operation. Herrenknecht AG was commissioned to build the two SBRs within one year. In September 2018, the SBRs, which were completely pre-assembled in the factory and subjected

AN OVERVIEW OF SBR WORK DECKS AND THEIR ASSOCIATED FUNCTIONSDECK FUNCTIONS INCLUDED

11 Storage of guide carriage, reception of all lines10 Transformer, cooling, switch cabinet9 Blower, filter system8 Blower, suction line, aero-cyclone7 Bucket changing device, fan

6 Stabilizers, suspension for support ring and formwork, hydraulic power unit

5 Mobile concrete hopper4 Control stand operator, foam system3 Mobile working platform2 Stabilizers, working platform for the installation of support1 Boom with cutting drum

1

23

45

6

7

8

9

1110

Assembly of the SBR.

10

© Herrenkecht AG


to a functional test, reached their destination partially assembled. Within three months, the units were installed in the 50 metre deep shafts in cooperation with Herrenknecht.One of the first tasks taken on by Deilmann-Haniel included the construction of the ABK (office building and building housing changing/shower facilities), storage hall, winch halls, material warehouse and workshop, as well as the assembly of the winches, hoisting machines and all other equipment necessary for the construction. After delivery of the freezing plant foundation by the client, the freezing plant and its piping was also installed and put into operation between November 2017 and February 2018. The foreshafts were constructed by April of 2018, and the sinking equipment for the main shafts (winding towers, winches, rope installation) was wrapped up by September 2018.The next big milestone is shaft sinking, including the expansion of the freeze shaft sections of the shafts.Challenges during the projectIn contrast with other projects, the majority of the planning was carried out by the client or their Russian planning office. Unexpected changes to the plan within a short period of time made it challenging to adapt, paired with the fact that planning and execution of the work usually took place simultaneously. Working alongside Belarusian authorities was a new experience for the team, and took some time to adjust and develop a good work flow. Subcontractor relationships presented opportunities for innovative thinking during the construction of the

above-ground facilities, and dedicated focus was necessary in order to meet completion deadlines.Deliveries presented their own challenges with some materials shipping later than expected and causing a juggling act with scheduling. The majority of the machines and

equipment, but also many materials, were imported from Germany or Western Europe, adding some lead time to deliveries.By the time the beginning of the sinking was celebrated on December 21, 2018 with the Prime Minister of Belarus, Mr. Herrenknecht (Herrenknecht AG) and Mr. Greinacher (Deilmann-Haniel GmbH), and the team had enough experience to manage just about any obstacle that came their way. Local

personnel were trained as machine operators, signalists and slingers within a short period of time so that they could work with machines and shaft traps. The Russian and Belarusian miners had grown accustomed to the unique conditions presented when sinking

with the SBR, and the specific work requirements to handle them. This did not always prove simple or easy to manage, especially due to cultural differences and language barriers. While the team is going to face many more challenges in the road ahead, they remain confident that through a focus on safe, productive work, the project will continue to progress well, and that a well-coordinated team will emerge from the learning process. The

Imagery of the frozen shaft wall from the bottom.

11

redpathmining.com

team feels a sense of pride for coming so far, despite encountering several starting difficulties. The effort taken to fine tune and smoothly coordinate the complex machine technology with all of its associated peripheral systems cannot be understated. Working through, and intimately understanding these processes takes time and a dedicated focus. The installation and operation of a new type of shaft formwork system deserves a special mention. This consists of two components: the formwork and the support ring. The support ring is supported by 24 threaded rods with plate nuts to support the weight of the formwork and the concrete cast behind it. The support ring is equipped with hydraulically extendable drawers, which ensure the sealing to the face of the shaft. This system has worked excellently so far, due to the very smooth face, and the sealing work normally required with conventional support rings was completely eliminated. Another major hindrance is the geology. The consistency of the material being removed is heavy and thick with clay. This has led to blockages in the opening of the buckets, which are shaped like milk cans and coated with a non-stick material, preventing them from emptying during tipping. Measures taken to enable faster emptying have thus far included wetting the bucket with solution, reducing bucket fill levels and modifications inside the bucket to allow the contents to drain more evenly. A series of tests was carried out involving plates attached to chains on the bottom of the bucket, and installations in the center of the bucket, which were intended to promote the breaking up of the material. Unfortunately under the given conditions, these variants

proved to be unsuccessful. At present, tests are also being carried out with chemical liquids, which are sprayed onto the bottom of each partial cut and introduced at the bottom of the cyclone before the bucket is filled. Challenges like these are overcome by innovative thinking, something with which Deilmann-Haniel is familiar. But despite the adverse geological conditions to which SBR is exposed, it can be said that the engineers at Deilmann-Haniel, in collaboration with Herrenknecht, have planned and built a sinking system that is second to none. Current situation and future advance The battle for every centimetre of cutting power from the machines is a lengthy one. As the learning curve of using this new technology begins to flatten, the geological conditions remain and continue to challenge the crew. The bottom of shaft 2, which has one

month lead time compared to shaft 1, was already at a depth of approximately 75 metres by mid-January. Due to optimisation and improvements, excavation started roughly one month ahead of the contractual schedule. During the first four weeks of the sinking operation, individual daily outputs of almost 3 m were already achieved, and there is no reason to doubt that the planned 3 m per day will be reached regularly after the learning phase.Mining is unpredictable, and new technology adds another dimension of consideration, but there are many reasons to feel optimistic and positive about the progress so far this year. With world-class experience at the helm, and exceptional quality equipment in the ground, the outlook for the Nezhinskiy project looks bright. The project is currently proceeding ahead of the ambitious time schedule and there are still 1,250 exciting metres ahead!

The SBR cutting head.

12


Continued from page 7…Project of the Year / Corporate Department Award: 2018 Project of the Year – Lady Loretta Our Project of the Year award recognises the project that has performed the best across the year, meeting expectations in Safety, Productivity and Profitability. 2018 Corporate Department: HSEQ Department

REDPATH USA WINS CORPORATE MEMBER OF THE YEAR AWARD AT AMA CONVENTIONContributor: Jason Morrison, Area Manager, Redpath USA CorporationAt the Alaska Miners’ Association Annual Convention held recently in Anchorage, Alaska, USA, Redpath USA Corporation earned the award for Alaska Miners’ Corporate Member of the Year. This award recognizes Redpath’s commitment to mining in Alaska through fundraising, membership recruitment, participation in local events and contributions to youth sports and not-for-profit organizations. Over 30+ hourly employees are Association members contributing to Redpath having the most individual members within a corporation. Accepting this award, in the presence of the corporate directors and senior project managers of major mining companies, shows Redpath’s commitment to mining in Alaska. Well done!

THE UNIQUE CHALLENGES OF NORTHERN ONTARIO ROCKContributor: Yves Benoit, Senior Engineer, RaiseboringThe ‘Wisconsinan Glaciation’ ice age ended some 10,000 years ago with the melting of the Laurentide Ice Sheet which covered all of Northern Ontario and a great part of North America. These glaciers measured up to four kilometers in thickness and exerted tremendous pressures on Ontario’s host rock. Over time, these vertical pressures were distributed equally in all directions through a process called hydrostasis. To a great extent, vertical stresses were relieved when the glaciers receded, but horizontal stresses remained locked in. Throughout the rest of the world, horizontal and vertical stresses are generally equal, but not here. This phenomenon is what makes Ontario’s rock challenging for underground miners. Aside from its unusual strength, Ontario’s rock is unique in that it is highly stressed

at shallow depths. This translates into significant challenges in the mining construction industry. Redpath is no stranger to these challenges and recently tackled the excavation of two 5.5 metre diameter raises in highly stressed rock at Musselwhite Mine. These raises measure 321 and 402 metres respectively, and are intended for use as underground vertical conveyance. Both raises were directionally drilled to ensure the verticality of the finished product.In certain sections, the raises began deforming within hours of excavation. Despite these hurdles, Redpath was successful in excavating the raises. An equipping galloway was established following the raiseboring process to install ground support and services as well as slash a short section to final diameter. This phase of the project is well underway and should be complete in the third quarter of 2019.Musselwhite Winze Raiseboring a SuccessWell done to Redpath Raiseboring crews at Musselwhite mine for safely completing the material handling shaft excavation! Andy Bellaire and his crew, consisting of four drillers and assistants, completed the two-leg program with a triple-zero safety performance with over 50,000 hours worked.

THE REDBORE 70 AT TSHEPONG, SOUTH AFRICAThe Redbore 70 at the Tshepong raiseboring operation, located at Harmony Gold’s Tshepong Gold Mine in Odendaalsrus (Free State Province).The project, which kicked off in July 2017 and is soon due to come to an

Redpath USA Corporation employees together with Jason Morrison (centre) in celebration of their award, during the AMA convention.

BEFORE AFTER

13

redpathmining.com

end, achieved great results in a number of areas, including internal audits, safety performance, skills transfer and stellar housekeeping. Congratulations to the crew!

GRASBERG BLOCK CAVE MINE CELEBRATES FIRST EXCAVATION BLAST FOR PRODUCTION DRAWBELLSThe Development and Construction for 160,000 tpd of Underground Mining OperationsPT Redpath Indonesia (PTRI) began the development of the Grasberg Block Cave Mine (GBC) with the AB tunnel project in 2004 and the subsequent Grasberg Ventilation Drift (GVD) drives in 2008. After 14 years of development totaling 224 kilometres of lateral development and the completion of numerous infrastructure projects, a key milestone in this incredible undertaking was recently achieved with the excavation blast of the first production drawbell on December 15, 2018. This represents only the first of more than 1,200 planned drawpoints to be constructed in order to reach full production, and foretells the enormous challenges of mining this world class ore deposit with an equally challenging and impressive block cave

mine. The GBC mine will become one of the greatest mines in the world, and everyone that has played a role in developing this mine should feel a true sense of pride and accomplishment.Project history and plan: 1995: Initial GBC reserve established 2003: Prefeasibility Study completed 2004: Initiate AB Adit Access development by PTRI AB Tunnel 2008: Feasibility Study completed and initiate GVD (Vent Declines); Upper Access Development, and CI3 (Common Infrastructure phase 3) by PTRI CI3/GVD 2011: Initiate shaft sinking (2016 commissioning) 2012: Commission main fan #1 (largest facilities of it’s kind in the world at 1 million CFM) 2014: Commission main fan #2 2015: Commence fixed facility construction 2016: Commence extraction level construction, commission main fan #3 2017: Commission rail system, crushing and conveying system; (largest facilities of its kind in the world), initiating drawpoint construction by PTRI GBC construction 2018: Initiate production drill program by PTRI GBC production drilling. September 12 – initiate undercutting; December 15 – initiate the first drawbell blast 2024: Full productionVentilation LevelPTRI began development of the ventilation level in 2008 with a total of eight parallel drives leading to the production area. Ventilation drifts 1-4 were built for intake usage and ventilation drifts 5-8 were designed for exhaust purposes; each measuring 6.8 metres wide by 9.0 metres high. Four massive chambers for four 5,000 KW main fans, which will supply total

14

GBC chute gallery 44 and rail drift.

PTRI’s GBC construction crew.


6.0 million cfm fresh air to the mine are also being installed. At this stage, three fans are in operation, with the last unit to be commissioned in the third quarter of 2019.Haulage Level The GBC project is planned as a 160,000 tonnes per day mine and requires a highly efficient ore handling system to support planned production rates. Ore is moved from the extraction level’s numerous drawpoints via LHD loaders to a system of ore passes which descend to the rail haulage level loading pockets,

and then loaded into the train cars. The system permits safe and high productivity levels utilizing efficient automated systems. The total GBC rail haulage system will entail over 20 lineal kilometers of track, and comprise of three unloading stations, 20 chute galleries and 120 loading chutes. To date, PTRI has completed two unloading station excavations (12 m wide x 12 m high x 45 m long), five chute galleries; mass excavations reaching eight metres in width, nine metres in height, and more than three kilometers of train rail tunnels.Ore HandlingThe GBC ore handling system consists of primary and secondary crushing plants receiving run-of-mine ore from the haulage level trains and delivering <50 mm of crushed product to the concentrator. The ore is delivered by trains into ore bins and passes through the primary gyratory crushers and onto feeder conveyors to the twin three kilometre long, 1.8 metre wide inclined conveyors. The material then travels to

GBC crusher chamber.

2700L 613 transfer excavation.

15

redpathmining.com

the surface secondary cone crusher complex and from there, to the concentrating plant. In total, there will be three crusher chamber complexes in the GBC. PTRI completed the first crusher chamber complex (601 Package) in 2015 with total excavation volumes of more 20,000 m3 reaching heights of just over 42 metres. The crusher 602 excavation/construction package is currently in progress and on schedule.Production LevelThe GBC orebody has a large footprint reaching a diameter of over 1 kilometre, requiring a planned 2,400 drawpoints to cover an area of 700,000 m2. The cave initiation approach uses a “crinkle-cut” undercutting system similar to that successfully employed at Freeport’s Deep Ore Zone block cave mine (a previous Redpath undertaking). The GBC orebody is located directly below the two kilometre diameter Grasberg open pit, with the pit bottom elevations only 200 metres above the extraction level. The GBC project design team selected an advanced-undercut approach, with the leading edge of the undercut located at a minimum of twenty metres ahead of drawbelling on the extraction level. The overall footprints are divided into five different production blocks. To date, PTRI has undercut 4,100 m2 and will maintain a rate of 1,000 m2/month in the undercut level 2850L. Three solo production drill units are busy drilling the undercut level for the slot and drill drift.

The extraction level (2,830 metre elevation) is a Chilean El Teniente-style layout (referring to drawpoint design) with production panel drifts spaced at 30 metres and drawpoints spaced at 20 metres. The PTRI GBC area 2 project

to date has excavated 250+ drawpoints and 13 grizzlies (ore pass entry points). The PTRI GBC construction crews follow behind the development with the completion of 221 lintel sets (steel bearing and support set for drawpoints) in drawpoints and ten grizzlies constructed.While all of this can be considered excellent accomplishments, it truly is only the beginning. In the years to come, the PTRI GBC team will require consistent gains and achievement in order to permit production and ramp ups to reach greater capacities. Redpath will continue to meet and overcome these unique challenges that an operation of this scale will present

Fergus Kerr poses in a drift during an underground tour of the Grasberg Block Cave Mine at Freeport.2760L GBC unloading station.

Fergus Kerr (left), and Nicky Herault, (right) in the Grasberg Block Cave Mine at Freeport.

The first GBC slot raise by the Redbore 50X.

16


going forward, and will be prepared to adapt to the conditions in order to succeed in becoming the underground of contractor of choice for PT Freeport Indonesia.

PATHWAYS TO EXCELLENCE INDONESIA 2018Fergus Kerr, Bruce Mennie and Ivan Agustian were in Tembagapura, Papua, early in September 2018 to conduct “Pathways to Excellence I and II” and “Project Management Fundamentals” workshops. PT Freeport Indonesia and PT Redpath Indonesia operations supervisions and management personnel participated jointly in these dynamic and interactive sessions led by Fergus. Workshop sessions included case study analysis, group presentations and high energy discussions within these groups.

Positive participant feedback continues to support these workshops as a vital inclusion in the Redpath tool box for leadership training. The workshops help define Redpath standards and increase understanding of what it takes to produce the intended result. We look forward to hosting another round of workshops in 2019!

CANADIAN OPERATIONS SAFETY DAY KICKS OFF 2019Safety Day for Canadian Operations was held in North Bay, Ontario, Canada, on January 16, 2019 at the Best Western Hotel and Conference center.Jamie Cresswell, Superintendent, Safety and Training, was the master of ceremonies for the day, introducing a variety of guest speakers from Redpath and beyond, to share their insights.

Guy Hubert, General Manager, Canadian Operations, says a few words during the opening sequence for Safety Day.

Michelle Seguin, Supervisor, Health Promotion, Injury Claims and Environment (left) and Kyla McKay, Safety Coordinator (right), present on the upcoming adoption of Intelex safety software.

Jamie Cresswell, Superintendent, Safety and Training, reviews the agenda for the day.

17

redpathmining.com

Case studies of some Canadian projects were presented, with all presenters having answered the same questions in advance of the presentations, allowing for a structured comparison. Key challenges and goals for the coming year were identified,

along with proposed strategies to reach these objectives. The examination of current work stimulated conversations, as parallels between employee engagement, safe work and productivity emerged. Allowing the opportunity to connect with others who are leading in similar environments, also fostered a feeling of solidarity and strengthened the team.With an insightful look into current safety trends, and a motivated group with a renewed focus on communication and engagement with the workforce, 2019 is shaping up to be an excellent year for Redpath!

Starting Well On Time (SWOT) was a concept that was refreshed in everyone’s minds by Rouan du Rand, General Manager, Project Management Support Services. Quoting straight from a letter originally penned by Jim Redpath himself, Rouan reiterated the importance of ensuring all necessary resources are made available, and planned thoroughly at project start-up. A solid start for any project can be the deciding factor for project success, and must be given the importance it deserves.

Training continues to be an important area of focus for Redpath as new projects kick off early in the new year. With additional Supervisory Common Core training sessions planned for projects in the United States and Canada, Redpath’s management teams are destined to be well-equipped to manage the busy times to come in 2019.An update on the integration of customized Intelex software was well-received by the attending group. Benefits of the software’s functionality will increase connectivity and allow for more efficient transfer of data, along with less duplication. The anticipated roll out for the software is expected toward the end of the first quarter in 2019.

Gerry Ouellet, Area Manager, gives an update on the Red Lake Cochenour Project.

Guy Hubert, General Manager, Canadian Operations.

Rouan du Rand, General Manager, Project Management Support Services.

Kaitlin Elliott, Safety Coordinator, speaks about recent safety initiatives being developed and delivered by the training group.

18


Contributor: Mitch Gowland, Operations Manager, MetaliferrousAn enthusiastic group of 18 Redpath Graduate Engineers recently joined Redpath management in Brisbane to kick off 2019 with two days of professional development and networking. A diverse range of challenges were put in front of the young professionals to build on their already established leadership and teamwork skills.Presentations from senior management and department leads were well received and helped put into context why Redpath are investing heavily into the graduate program, based on the strategic growth plan for the business. Gavin Ramage, Redpath Australia Managing Director, made it clear to the group that Redpath values the professionals in the program and see them as a critical part of the future success of the business.

Former Redpath Graduates; Matt O’Leary, Cadia Project Engineer; Merik Merino, Olympic Dam Project Engineer and Alex Wheeler, George Fisher Project Manager, demonstrated future pathways by sharing their experiences since finishing the graduate program. Their advice was valued by the young engineers with plenty of discussion generated.It became obvious that all of the graduates have a competitive edge during the team building go-karting session. Olympic Dam graduate John Athanassiou proved too good for his peers, leading home the graduate race with Brad Drake (Olympic Dam), and Dylan Altus (Cannington) making up the podium.An opportunity to network in a more relaxed environment was provided in the form of a dinner at the iconic Breakfast Creek Hotel. Project and senior management from both Australia

and Canada were present to offer guidance to the group on the night. It was great to see some relationships established which no doubt will result in ongoing mentoring opportunities throughout the program.The refreshed Redpath Graduate Development Program is a three year platform designed to complement our young professionals’ academic education and existing work experience, and ensure that graduates joining Redpath continue to grow and be challenged both professionally and personally. The ultimate goal is to develop the graduate’s management and technical skills by providing the training and experience required to successfully complete their First Class Mine Managers Certificate of Competence.There are currently 18 Redpath Graduates covering a diverse range of skillsets including Safety; Lachlan James, Mining Engineering; Eden Roscoe, Matt Butler, Rob Jankovic, Brad Drake, Lydia Wells, Michael Cerbasi, Harry Knox, Riley McAneney, Damien Abrahams, John Athanassiou, Sveta Temirov, Dylan Altas, James Curwood, Adam Bennett, David Boulton, and Mechanical Engineering; Will Crosling and Max Foley.The scale of this event demonstrates Redpath’s commitment to ensuring our emerging leaders are mentored and provided with support during their development. There is no doubt, based on these young engineers aptitude and attitude, Redpath’s future is in good hands.

REDPATH LEADING YOUNG PROFESSIONAL DEVELOPMENT OPPORTUNITIES IN MINING

Redpath Graduate Engineers skilled in Safety, Mining Engineering and Mechanical Engineering.

19

redpathmining.com

Stay in touch!The Advance is published three times per calendar year, but there’s no need to wait until the next issue for the latest news from Redpath! Our social media channels and website are populated with career opportunities, project achievements and interesting trivia. Follow us, ‘like’ us and stay connected!

20

Global manpower count as of January 31, 2019

6,280

Safety - First, Last and Always.

[email protected]

@TheRedpathGroup

The Redpath Group

facebook.com/The Redpath Group

The year started off on the right foot for Redpath South America. The rise in copper prices and the need to develop new block cave mines to meet global demand, were the catalysts which jumpstarted the Chilean mining industry in 2018. With these positive fluctuations in the market, there has been a tremendous increase in demand for Redpath’s services, and this trend is forecast to continue into the next few years. Many new projects have received budget funding and are scheduled to start in 2019.“Challenge is an important part of life” has been a helpful mantra in overcoming what at times seems to be

impossible hurdles. Balancing company restructuring, moving offices, working with current government legislation, and juggling 16 projects with new and existing clients, (essentially doubling Redpath’s South American workforce!), were just a few of the challenges faced recently in South America. Growth brings more opportunity and challenges employees to develop new skills and refine existing ones. Growth fosters evolution within the company, and leads employees into different directions and roles, with fresh responsibilities.How do we “Control growth in order to maintain a high caliber of service to the industry.”, when our focus as a

GUEST SPOTLIGHT“Extra effort focused on providing continuous safety and procedure training is critical in preventing lost-time incidents, and in maintaining our reputation of providing the highest level of quality in the market.” Marcel Leclair, General Manager, Redpath Chilena; General Manager, Raiseboring

company is to encourage it? One does not necessarily come at the expense of the other. They key to maintaining this balance is control. Extra effort focused on providing continuous safety and procedure training is critical in preventing lost-time incidents, and in maintaining our reputation of providing the highest level of quality in the market. I frequently have to replace my Redpath Philosophy & Guidelines wallet card, either from wearing it out, or due to having handed it out to employees or clients who are facing their own unique challenges. Embracing these challenges and focusing on doing a jobs well done will be the bridge to success as we enter into this new year. Challenges are stressful. But wouldn’t life be boring without them?

15.8 MILLION

total hours worked in 2018

0.4 1.7

3.5 7.2Africa Asia

2.2 0.8North

America

SouthAmerica Australia

Europe

Mill

ions

of H

ours

Wor

ked

by

Reg

ion

Jan.

1 -

Dec

. 31,

201

8

Nezhinskiy Project in Belarus.

february the redpath group’s global newsletter

Documents