Minera Antamina
Transcription
Minera Antamina
2009: issue 5 A publication of Caterpillar Global Mining Mining industry draws over 40,000 to Minexpo 2008 Minera Antamina Setting the standard. Driving the future. shining a light on the miner’s life Men of the Deeps focusing on Sustainability at minexpo new technology improves haul road watering CREATIVE SOLUTIONS to solve skills shortage I’m pleased to present this edition of Viewpoint, a Caterpillar Global Mining publication produced for and about the mining industry. These are challenging times for many global Also in this issue, we take readers to one of the most industries—and the mining sector is no exception. But productive mines in the world—Antamina Mine in we are confident that the industry will remain a steady Peru, which set the standard for a greenfield operation and influential contributor to economies worldwide. and continues to drive the future of what a sustainable While much of the industry is adjusting near-term plans for production, capital outlay and growth, we believe there are opportunities to be gained during this slowdown. We look forward to working with our dealers and mining operation should look like. We continue our focus on sustainability with an overview of MINExpo’s concentration on the important topics of Health, Safety, Environment and Community. customers on getting back to some of the basics—a We address the industry’s critical issue of managing luxury that isn’t always afforded during tremendous and maintaining a skilled workforce, and highlight the growth cycles. Focusing on continuous improvement importance of a dedicated effort to haul road watering, projects, improving maintenance processes, and getting including new truck technologies that control water sprays. equipment current on safety issues and other updates will allow mine sites around the world to be in a better position to take advantage of the growth when it does occur. Viewpoint is just one of the tools Caterpillar provides customers to help them operate more safely and efficiently, improve productivity and increase profitability. This focus on continuous improvement The outstanding attendance at MINExpo 2008 in is even more important as together we navigate the September supports our belief that the mining industry difficult road ahead. is focused on the long-term strategic issues. In this issue, you’ll find a story about MINExpo and the Cat exhibit. Chris Curfman President, Caterpillar Global Mining Caterpillar Editorial Board: Dan Hellige, Editor; Erik Elsmark, Wheel Dozers and Loaders; John Enderby, China and India; Greg Gardner, Europe, Africa and Middle East; Chris Gehner, Underground Mining; Larry Gregory, Trucks; Dan Hellige, Safety; Tony Johnson, Marketing; Kent Lynch, Tractors; Keith Malison, Latin America and the Caribbean; Patrick Mohrman, Field Support; Glenn Morrison, Australia, Indonesia and New Zealand; Shane O'Brien, North America; David Schricker, 6 Sigma c Cat Global Mining / Viewpoint / 2009: issue 5 Viewpoint is a publication of Cat Global Mining, producer of the mining industry’s broadest line of equipment and technology. Caterpillar serves the worldwide mining community through its vast dealer network and a single division called Caterpillar Global Mining, headquartered in Peoria, U.S.A., with additional offices worldwide. table of contents men of the deeps Shining a light on the miner’s life MINExpo 2008 focusing on sustainability new technology improves haul road watering 26 Mining industry draws 6 over 40,000 to minexpo 2008 Mining industry employs creative solutions to solve skills shortage Minera Antamina: Setting 20 28 2 1229 the standard. Driving the future. News from cat Cat Global Mining / Viewpoint 1 M I N I N G in d ustr y d ra w s over 40,000 to MINExpo 2008 Caterpillar presents show’s largest exhibit MINExpo International 2008, held Sept. 22-25 in Las Vegas, Nevada, USA, was a record-setting event in every way—with 11,000 more visitors and 30 percent more square footage than MINExpo 2004. Hosted by the National Mining Association (NMA), the U.S. mining industry’s Washington, D.C.based trade group, MINExpo boasted nearly 42,000 registered attendees and 1,300 exhibitors spread over 600,000 square feet of exhibit space at the Las Vegas Convention Center. By the end of the first day, more than 31,000 people had been through the exhibit and registration had reached 41,000—exceeding the total number of visitors at the 2004 show by a third. “There’s no other place in the world where mining companies can see the number of products and 2 Cat Global Mining / Viewpoint / 2009: issue 5 services shown at MINExpo,” said Moya Phelleps, the NMA’s senior vice president of member services. “From the largest trucks in the world to computer programs to vendors who offer financial services—anyone who is involved in the mining industry at any level was at MINExpo.” The range of products at MINExpo included the latest in automation and robotics; safety and communications equipment; engines and parts; materials handling and processing equipment and services; pollution control equipment; reclamation equipment and services; computer applications; consulting and financial services; and much more. In addition, a conference program with 20 educational sessions tackled issues affecting the mining industry, with many of the industry’s top professionals leading the discussions. GLOBAL AND INDUSTRY-WIDE EVENT MINExpo is touted as the largest mining exhibition in the world. Phelleps reported that official delegations from 16 countries visited the Las Vegas Convention Center. NMA attendance data shows that more than 10,000 of the registered attendees represented mining and processing companies, which is nearly a 40 percent increase over MINExpo 2004. Other attendees included those who provide services to the industry—such as financial experts, engineers, consultants and contractors—as well as original equipment manufacturers and dealers. MORE THAN EQUIPMENT 1 In addition to highlighting best mining practices and advanced mining technology, MINExpo also called attention to the mining industry’s commitment to mine safety and environmental performance. 2 The NMA offered participants 20 educational sessions covering surface and underground mining, metal commodities, exploration, new mine developments, processing and workforce development. Caterpillar dedicated a full day to its global Health, Safety, Environment and Community (HSEC) Forum, held at Caesars Palace on the Saturday before MINExpo began. More than 400 mining company representatives, Cat dealer 3 Caterpillar Inc. estimates thousands of its customers attended MINExpo, including a first-ever delegation of 100 professionals—60 of them customers—from China. More than 80 Caterpillar dealerships served as hosts—with 20 of these dealerships attending MINExpo for the first time. Caterpillar Inc.’s Stu Levenick, group president, reflected on the outstanding attendance: “While the global economy is cause for concern, no other event brings together so many key players in the mining industry, and the outstanding attendance shows the value of this event, even in uncertain times. The NMA pulls it off in spectacular fashion and we congratulate them for hosting such a successful event.” “While Caterpillar has a large presence at the show, we were pleased to share the MINExpo stage with nearly 100 of our dealers and look forward to working alongside them to serve our mining customers,” Levenick continued. “Our dealers brought their customers from all regions of the world. The show has truly grown into a global event, addressing many issues that the industry faces.” representatives and HSEC experts attended the event, which featured displays, opportunities to learn best practices, and facilitated discussions addressing industry challenges. LARGEST EXHIBITOR The largest and most comprehensive state-of-theart indoor exhibit at MINExpo was presented by Caterpillar. The 40,000 square feet of exhibit space highlighted Caterpillar’s mining products, services, technology and people. “MINExpo is an important event for Caterpillar because mining is such an important part of our business,” said Caterpillar Chairman and CEO Jim Owens. “Mining equipment continues to represent a growing portion of our sales.” 1/ LOVAT, a leading global manufacturer of tunnel boring machines (TBMs) recently acquired by Caterpillar, displayed a replica of one of its products at the Cat® Mine Site @ Night venue. LOVAT specializes in the custom design, manufacture and technical support of tunnel boring machines utilized in the construction of circular tunnels. 2/ Caterpillar showcased the technical features of the new C175 engine. 3/ Caterpillar displayed its latest underground mining products and technologies, including this R2900G load-haul-dump machine equipped with the MINEGEM™ underground automation system. The display also showcased the new AD55B truck, powered by the C27 ACERT® engine for an increase in speed on grade. Cat Global Mining / Viewpoint 3 Mining more. MINExpo set the stage for Caterpillar to unveil its next generation of mining trucks, designed to help mining customers produce more, including the Cat 777F and 797F mechanical drive trucks and the new 795F AC electric drive truck. 1 Caterpillar’s theme—“Mining safely. Mining more. Mining right.”—highlighted the company’s commitment to mining efficiently and productively while doing the utmost to protect the health and safety of miners, the environment and the communities where mining companies operate. 2 Mining safely. The Cat exhibit showcased a number of the company’s advancements in improved equipment safety. The machines on display demonstrated significant ergonomic and safety-related improvements. Advancements in machine access were highlighted with new integrated ladder, stairway and lift systems demonstrated on the Cat® 797F, 795F AC and 777F mining trucks, 993K wheel loader and D11T track-type tractor models exhibited on the show floor. 1/ Caterpillar introduced the 795 AC, a completely new truck model that features the new Caterpillar® AC drive system, developed and supported entirely by Caterpillar to assure complete system integration and support of controls, electronics and components. 2/ MINExpo attendees view a dramatic representation of an autonomous mine site in 2013 at the Caterpillar exhibit. 3/ Virtual training simulators like this one in the Cat exhibit can help companies improve safety, increase production, offer training flexibility and reduce costs. 3 Cat showcased updated engineering designs that provide ground level access to the regular service and maintenance points on the machines, helping to improve the safety of maintenance personnel. Virtual training simulators, designed to improve operator performance and safety, were located throughout the exhibit and offered hands-on demonstrations. 4 Cat Global Mining / Viewpoint / 2009: issue 5 “The development of our next generation of trucks was the single largest investment we have ever made into this important product line,” said Chris Curfman, president of Cat Global Mining and vice president of Caterpillar Inc. “In the next five years, our complete line of mining trucks will be updated with new features and technologies.” Completing the updated mining truck line will be new versions of the 785 and 789 mechanical drive trucks, as well as a new 793, which will be available in both mechanical drive (793F) and electric drive (793F AC) versions. The exhibit also showcased the new 993K wheel loader, a product designed specifically for the mining industry, and highlighted Caterpillar’s underground mining product line and technologies. “Caterpillar is one of the only major manufacturers that offer products for both surface and underground mining,” said Curfman. “We have aggressive plans in place to continue to grow our underground mining business. We’ve expanded our manufacturing capabilities and have a project under way to develop and manufacture underground drills and underground service support vehicles.” The exhibit also provided an overview of Caterpillar’s strategy for autonomy, including a dramatic representation of an autonomous mine site in 2013 and the technologies used to build it. The display featured the DARPA Urban Challenge winner, Boss. The robotic vehicle is a 2007 Chevrolet Tahoe that was developed by Carnegie Mellon University and sponsored by Caterpillar. Autonomous systems for large track-type tractors and underground mining equipment also were on display. “We’re working with customers and the industry directly to develop our autonomous mining truck program,” said Curfman. “We plan to have trucks running under pilot and field follow in late 2009 or early 2010, with expected commercial availability in late 2013.” Beyond products, Caterpillar’s exhibit also showcased the company’s mining offerings for electric power generation, financial products, world trade and other product support services. Away from the exhibit, more than 6,000 people attended Cat’s Mine Site @ Night, which celebrates the capabilities of the Cat dealer network and the service they provide to support the entire machine lifecycle. The star of the evening was a 100,000hour 793 truck from the Sierrita mine in Arizona. Customers also had the opportunity to view a side-by-side display of Cat’s mechanical and electric drive powertrains, as well a display by tunneling equipment manufacturer LOVAT. Caterpillar hosts China delegation at MINExpo 2008 At MINExpo 2008, Caterpillar played host to a China delegation consisting of more than 60 customers, who visited the Cat exhibit and attended a series of Cat organized activities including factory visits, equipment demonstrations, Mine Site @ Night and China Day presentations. These activities combined to provide Chinese mining customers an extensive experience with Caterpillar and its mining offerings. “We felt it was important for our potential Chinese customers to visit production lines and get to know the long heritage and quality management behind our equipment,” said Kebao Yang, President, Caterpillar Global Mining China. Mining right. Caterpillar’s ongoing commitment to sustainability—and how it is integrated into mining—was another important aspect of the MINExpo 2008 program. The company previewed its latest industry film, “Ground Rules: Mining Right for a Sustainable Future,” in a theater on the exhibit floor. The film, shot in high definition in locations around the world, focuses on educating the public about mining’s intrinsic value to society and illustrates how mining companies are doing it in a sustainable manner. Advancements in engine and emissions technology were displayed as the company introduces its latest engine line-up, including the new C175 engine for its largest mining trucks. Every machine on the exhibit included Caterpillar’s patented ACERT® Technology, designed to reduce emissions and improve fuel efficiency. “By pursuing sustainable development and sustainable progress—in every aspect of our business— we strengthen our ability to meet the emerging sustainability requirements of both our domestic and international customers,” said Curfman. ■ For most Chinese customers, it was their first visit to MINExpo and an opportunity to see firsthand a wide range of mining products and services. “Now, after visiting MINExpo and being exposed to the mining machines and solutions, I know why Cat is regarded as a market leader,” said Hu Kaijiang, general manager of Shenhua Xinjiang Energy Sources Co. Ltd. The company is the largest coal producer in China and recently purchased the first Cat D11T track-type tractor in the country. Tan Rui, deputy chief engineer of Kunming Non-ferrous Design Institute, who is involved in mining feasibility and fleet designs of many big mines in China, appreciated the opportunity to learn about underground mining offerings. “Before the trip, I never heard that Caterpillar also offers underground mining machines,” he said. “I was especially impressed by the commitment from Cat to mining safely.” MINExpo’s focus on safety and sustainability earned praise from the China delegation. “In terms of company development stage, I think Level One is to develop market and strive for survival,” said Qu Xiangdong, general manager of Chalco Guangxi, the largest bauxite producer in China and the second largest in the world. “Level Two is to optimize the profitability, and Level Three—the highest level—is to achieve sustainable development through the success of customers and the upgrading of the industry. I see Caterpillar at Level Three.” Caterpillar’s sustainable development film, “Ground Rules,” also received praise from the China delegation. Yuan Junhong, secretary general of China Chemical Mining Association, was so excited about the sustainable growth concept of the film, he asked for a Chinese version to submit to the state-owned Assets Supervision and Administration Commission of the State Council, the key policymaker in China’s mining industry. “We shall not only upgrade the China mining industry with more productive machines and more advanced technology, but also with more social responsibility and commitment to safety and sustainable growth,” he said. Cat Global Mining / Viewpoint 5 focusing on sustainability at MINExpo 2008 Caterpillar hosts global Health, Safety, Environment and Community Forum MINExpo 2008, held Sept. 22-25 in Las Vegas, Nevada, USA, was the largest exhibition of mining equipment and services in the industry’s history. And while equipment and services took center stage throughout the event, the show’s sponsor and many of the exhibitors followed the industry’s lead and focused also on the important topics of Health, Safety, Environment and Community (HSEC). The National Mining Association (NMA), sponsor of the event, dedicated a number of its 20 MINExpo education sessions to important HSEC topics. Health and safety sessions covered issues such as promoting safety cultures with a goal of zero injuries in mines worldwide, and minimizing safety risks through equipment design. Environmental topics included water management, waste management and air quality, including the future of biodiesel and its impact on emission reductions. Community topics included sessions on workforce planning strategies and training for the workforces of the future. HOSTING AN INDUSTRY-LEADING FORUM One major exhibitor, Caterpillar Inc., dedicated a full day to an industry-leading HSEC Forum, held at Caesars Palace on the Saturday before MINExpo began. More than 400 mining company representatives, Cat® dealer representatives and HSEC experts attended the event, where they had the opportunity to gather with mining professionals from around the world; view displays from Cat customers, Caterpillar® divisions and industry experts; learn best practice solutions from other 6 Cat Global Mining / Viewpoint / 2009: issue 5 mining organizations; and engage in facilitated discussions addressing industry challenges. The HSEC Forum also was the site of the premiere of Cat’s new educational film, “Ground Rules: Mining Right for a Sustainable Future.” “The challenges of community socio-economic development are frequently left to ‘community experts’ and social scientists to analyze,” said John Groom, former chief operating officer for the International Council on Mining and Metals (ICMM). “The actual delivery of better results on the ground, at a mine site, usually falls to the mining professionals whose engineering skills are not necessarily the most appropriate. The Cat HSEC Forum presented a great opportunity to discuss mining and community development and related challenges with a ‘new’ audience of mining folk.” Participants were welcomed by Caterpillar leaders Chris Curfman, president of Caterpillar Global Mining, and Sid Banwart, vice president of the company’s Human Services Division. Banwart presented an overview of what Caterpillar is doing from a corporate perspective to support sustainable development and emphasized the company’s commitment. “Business, for a long time, was unsure of its role. Many felt that these problems were best left to governments, philanthropists and non-governmental organizations to solve. But leaders of successful companies see the need to be active partners in the sustainable development space—and they’re often driving the solutions.” Specific projects currently under way at Caterpillar focus on holding water consumption flat, increasing energy efficiency, reducing waste with a goal of “zero waste to landfill,” and using Leadership in Energy and Environmental Design (LEED) criteria and green building standards for new building projects worldwide. Curfman focused on ways Caterpillar partners with its customers in the mining industry to make sustainable progress possible—such as its partnership with BHP Billiton to develop autonomous technologies and products; and health- and safety-related projects like Work Area Vision System, Slow Speed Object Detection radar systems, new ground level maintenance centers on machines, and improved access and egress systems. He pointed out the importance of Caterpillar’s investment in projects dedicated to bringing more sustainable products to market. “Ongoing research and development are critical to our ability to explore alternative fuel use, enhance machine safety, develop autonomous products and provide other solutions that enable customers to operate more sustainably,” Curfman said. EDUCATING THE PUBLIC One of the highlights of Caterpillar’s HSEC Forum was the premiere of “Ground Rules: Mining Right for a Sustainable Future.” The sequel to Cat’s popular “Common Ground” educational film, “Ground Rules” was produced to raise awareness of all that the mining industry is doing to operate sustainably. Furthermore, it highlights the importance of mined materials in modern, everyday life. The film follows the development of a new mine as it works to become a model of sustainable practices. As a geologist and mine manager tackle the complex problems facing any new mine with creative solutions, they draw on the experiences and achievements of other mine sites around the globe to illustrate core concepts of sustainable development and social responsibility. “We’re pleased to stand with the industry to educate the public about the vital role mining plays in everyday life,” said Curfman. “We thank the six companies that allowed us to poke and prod around their sites in order capture their stories.” The film Ground Rules illustrates creative and core concepts of sustainable development and social responsibility through six existing and developing mines around the world. It was shot at mine sites in Canada, Australia, Chile, Indonesia, Ghana and the United States. Cat Global Mining / Viewpoint 7 The HSEC Forum Gallery Walk featured booths on a wide variety of topics, including: 1/ "Courageous leadership for safety and health" by Barrick 2/ "Biodiversity" by Rio Tinto 1 3/ "Risk & Opportunity Management" by Newmont 2 3 SHARING SUCCESS STORIES The HSEC Forum Gallery Walk was made up of 20 booths, each demonstrating best practices in the area of sustainable development. “We designed the Gallery Walk to give our customers the opportunity to demonstrate how they, as industry leaders, shoulder global responsibility while supplying the raw materials essential for society’s progress,” says Dan Hellige, Caterpillar’s HSEC manager and coordinator of the forum. DOING IT RIGHT Sustainability was top-of-mind as Caterpillar prepared and produced the materials for the HSEC Forum. The company used existing materials to construct the infrastructure of the Gallery Walk booths instead of creating booths specifically for this event. If exhibitors decided not to have their booths transported for re-use, Caterpillar made arrangements to have the materials recycled. All signage was made either from recycled or recyclable materials such as postconsumer waste plastic bottles, recycled paper and byproducts from the manufacture of cotton fabric. Exhibitors included Caterpillar customers and nongovernmental institutions, as well as Caterpillar groups focused on HSEC issues. Customers exhibited a wide variety of topics, including: Biodiversity, Rio Tinto. The company highlighted its biodiversity strategy, which focuses on land management—first reducing and minimizing impact, then engaging in biodiversity offsets. Managing Fatigue through Wellness and Education, Anglo American. This booth discussed the need for a multidisciplinary approach to fatigue management. Risk and Opportunity Management, Newmont Mining Corp. The company highlighted its safety principles; management of health risks; and initiatives that help protect the environment. Indigenous Workforce Training, FreeportMcMoRan Copper & Gold. “Taking the high road to success” showcased how the company is developing an indigenous workforce, providing training, and developing current employees. The Controlled Water Cart, Thiess. This booth highlighted how Thiess solved a problem of inconsistent water application on unsealed haul roads by developing a Controlled Water Cart, which reduces water usage and has a significant reduction on accidents caused by poor road conditions. 8 Cat Global Mining / Viewpoint / 2009: issue 5 Courageous Leadership for Safety and Health, Barrick. This booth emphasized Barrick’s commitment to employee safety and health. Building Community Relationships, Vale Inco. This booth focused on Vale’s improved communications with the community in Itabira, Brazil, and Inco’s efforts to become a neighbor of choice in Sudbury, Canada. Booths were also presented by the ICMM, World Business Council for Sustainable Development, Pew Center for Climate Change, and Opportunity International. In addition, Caterpillar presented exhibits covering Alternative Fuels, Object Detection, Operator Fatigue, Access/Egress and Materials Stewardship. The company’s new SAFETY.CAT.COM site also exhibited at the Gallery Walk. DEBATING INDUSTRY ISSUES The HSEC Forum’s Discussion Arena gave participants the opportunity to attend four professionally moderated “round table discussions,” where recruited experts debated issues and presented a variety of diverse and sometimes challenging viewpoints. Moderated by a sustainability specialist and consultant, experts represented mining companies, NGOs, and Caterpillar. Building community partnerships “Developing Guidelines for the Sustainable Development Evaluation of Mining Projects— Local, Regional and National Scales,” focused on the state-of-play for sustainability guidelines and how mining companies can work in partnership with regulators and the local communities with the aim of maximizing corporate, national and community benefits, while at the same time minimizing the social and physical impacts. Panelist John Groom of the ICMM emphasized that the industry must contribute to sustainable development. “There is no such thing as a sustainable mine,” Groom said. “But we supply vital materials and we simply have to operate. The mining industry must turn materials into other forms of capital that will last well beyond the life of the mine. We have to do this in an environmentally and socially responsible fashion. And we must demonstrate how it works at a national and local level, contributing to both countries and communities.” the Earth Moving Equipment Safety Round Table (EMESRT), explored the safety continuum and the challenges of achieving it. “Research shows that countries that develop an integrated approach are the most successful in passing development down throughout other entities,” Groom continued. “Companies must be in partnership with the government and non-governmental organizations, and they must make sure those in authority have the skills to apply the mineral wealth.” Calculative—We have systems in place to manage all hazards. Co-panelist Luke Danielson, an environmental lawyer and principal of the Sustainable Development Strategies group, stressed that it is important to apply the mineral wealth throughout the country and into the local communities. “It doesn’t work to have an enormous wealth generator surrounded by a sea of poverty,” he said. “It also doesn’t work when mining companies attempt to solve just one problem— building a school, for example. This is part of the ‘company town’ model—a model that the industry is moving away from. The new model has moved from dependence to independence. Mining companies and communities must work as partners.” Panelist Jim Joy, professor and director of the Minerals Industry Safety and Health Centre (MISHC), stressed the importance of following the path. “You can’t skip a step,” he said. “You have to do them one at a time. And you have to line up your people with your activities.” The discussion began with a short video prepared by Shell and the UK Energy Institute, outlining the steps in the “HSE Ladder,” a model that can be used throughout the industry. Companies move through these steps as they develop a culture where HSE can flourish: Pathological—Who cares as long as we’re not caught? Reactive—Safety is important; we do a lot every time we have an accident. Proactive—Safety leadership and values drive continuous improvement. Generative—(High Reliability Organizations) HSE is how we do business around here. The panelists shared their companies’ journeys along this ladder, and all agreed it can be a long, slow process. “We’re not at the top yet,” said Alan Miskin, BHP Billiton’s fatal risk control manager. “We spend a lot of time and money but I don’t think we’re at the ‘preaching’ level. There is so much variance and you can slip from one level to another.” Is it possible for mining companies to achieve zero injuries? The four members serving on the “Safety: Obtaining Vision Zero” discussion panel believe so. Xstrata Coal’s Tony Egan shared a success story about a 20-year-old site purchased by the company that existed in the reactive state. About five years after the implementation of a safety system, Egan reports the site has developed a true safety culture. “I work for a company that truly believes in a zero injury culture and that all injuries can be prevented,” said panelist Charles Doane, director of health and safety at Freeport-McMoRan Copper & Gold. “We’ve had millions of hours without lost time injuries and this shows us zero is possible.” “It took a lot of effort, but we went from a lost time injury frequency rate of 60 and a total recordable injury rate of 90, and within two years we got recordable injuries down to 10 and lost time to zero,” said Egan, the company’s manager of engineering systems and support. This panel focused on the shared responsibilities necessary to ensure the safety and health of global mineworkers. The four panelists, all members of Doane said Freeport-McMoRan was moving up the HSE ladder, then took a step back and reevaluated priorities. “We were spending as much Obtaining Vision Zero Cat Global Mining / Viewpoint 9 time trying to resolve a minor injury as we were on events where someone could have gotten killed, he said. “Now our primary efforts are centered on fatality prevention.” Federal subsidies for research, development and deployment. This option requires a bureaucracy to identify which technology is the best and to halt development of those not selected. Freeport-McMoRan also has found two key areas that lead to high performance in health and safety. “Without exception it requires active, visible leadership coupled with accountability,” said Doane. “If you don’t have these two aspects, you can’t succeed.” Command and control. Under this option, a government bureaucracy sets a limit on emissions and requires a specific technology be used to accomplish the reduction. Miskin agreed, but pointed out that leadership “Anyone can exercise leadership in health and safety,” said Miskin. “You can have a very passionate individual be the person who sweeps the floor. He can motivate the people around him and do things the right way and encourage change.” takes many forms. The panelists have found that improving health and safety has had an added benefit to their companies—an increase in profitability. “At the same time we were building toward a safety culture, we also saw massive improvements in productivity, costs and attitude in our workforce,” said Egan. Addressing climate change There is growing global consensus that climate change is a reality, and that its cause is directly linked to the emission of greenhouse gases. Panelists in “The Reality of Climate Change: Are You Engaged” discussed the key issues that the mining industry must consider when developing strategies to address climate change, as well as how to best engage in this global debate. Government, non-governmental and industry leaders are gearing up to offer new ways of reversing climate trends. Governments must decide how they will continue not only to maintain but to increase their standard of living while reducing the greenhouse gas footprint, explained panelist Manik Roy, director of congressional affairs for the Pew Center for Climate Change. A number of options are being considered: Voluntary programs. Roy says significant work has been done in this area, but the economy as a whole has not responded. 10 Cat Global Mining / Viewpoint / 2009: issue 5 Cap-and-trade system. Under this system, governments set limits on emissions and the marketplace decides how to meet those limits. This solution shows the most promise, Roy maintains. Under cap-and-trade, companies reduce emissions either through improved efficiencies or by purchasing emissions from other companies. Roy said that no matter what decisions are made on reducing carbon emissions, it’s extremely important for businesses—including those in the mining industry—to engage in the climate control debate. Panelist Marcelle Shoop, Rio Tinto’s principal adviser for sustainable development and climate change, agreed. “The nature of our industry makes climate control critical,” she said. “We are looking at how we operate, how we deliver products to the marketplace, and government policies that address climate change.” The key is using technologies to reduce emissions from coal, Shoop maintained, saying significant funding from the public sector is essential. Peabody Energy’s Vic Svec agrees. “Coal is being used in increasing amounts, with about 75 nations developing coal plants right now, said Svec, Peabody’s senior vice president of investor relations and corporate communications. “Coal has been the fastest growing fuel in the world, and the world is continuing to use it.” Development of new technologies is the answer to conducting business in a carbon-constrained world, said Svec. In China, Peabody is the only non-Chinese equity partner in the country’s US$1 billion “GreenGen” project—the first near-zero emissions coal-fueled power plant with carbon capture and storage in China. Peabody also is a partner in FutureGen, a similar project in the United States that has funding secured but is temporarily stalled while awaiting support from the next presidential administration. Panelist John Disharoon, sustainable development manager at Caterpillar, stressed that reducing carbon “CO2 doesn’t know a zip code,” Disharoon said. “If the United States and Europe have strict standards, and China and India do nothing, there is no success. All nations, all economies, have to participate. The hope is that once they see our commitment, others will follow suit.” emissions must be a global issue. Managing a sustainability-literate workforce Panelists in the “Workforce Management: Skills Shortage & Development” session addressed the mining industry’s challenge in maintaining a healthy, skilled workforce—referenced in another article in this edition of Viewpoint. They also touched on the need to develop a workforce that is focused on sustainable development. Katherine Madden of the World Business Council for Sustainable Development, who serves as a manager responsible for implementing sustainable development, discussed the skill sets necessary for workers in the mining industry. “They need to be specialists and technicians,” said Madden. “But they also have to develop sustainability literacy. Everyone in the company needs to understand what sustainability is.” Madden said it is necessary to make sustainable development “real” for employees. “It’s important to put it in everyday terms,” she said. “For example, take employees home and teach them about energy efficiency and why it’s important.” As companies face challenges in finding and keeping their skilled workers, Madden explained that a focus on sustainability can be a differentiator that is useful in recruitment. “New graduates in particular want to work for a company that is sustainable,” she said. Caterpillar’s Ed Cullen, manager of the company’s Global Manpower Development Division, agreed, pointing out a recent company online sustainability forum that addressed this important topic. “We had huge participation,” he said. “We had responses from more than 2,200 people in just 48 hours—and they came from all salary grades. They all want to be catalysts. They all want to make a difference.” Another way to focus on sustainability in the workforce is by partnering with local authorities and providing indigenous people opportunities. For example, mining company Vale and the community of Itabira have grown together through the years. An effort to improve their co-existence led to a diagnosis of the relationship and the development of Coexistence and Strategic Action plans. Vale agreed to increased dialogue and shared decision-making, involving employees, neighborhood leaders and local residents through committees, public meetings and gatherings. “We’re always working together to decide what is best for the company and the community,” said Marcelo Perpetuo, maintenance manager for the Southeast Ferrous Minerals Department at Vale. ■ “While workers may not realize how ‘sustainable development’ is defined, they know what it means to work for a company that cares about the impact it is having on the environment and on the people it employs. People want their families to be proud of the work they are doing.” – Marcelo Perpetuo, Vale 1 2 1/ Environmental lawyer Luke Danielson discusses the importance of mining companies and local residents working as partners to build sustainable communities. 2/ From left, mining company representatives Alan Miskin, Tony Egan and Charles Doane, all members of the Earth Moving Equipment Safety Roundtable, discuss the importance of working toward zero injuries. Cat Global Mining / Viewpoint 11 Minera Antamina: Setting the standard. Driving the future. Just eight years since its opening, Antamina mine in Peru is one of the largest and most productive mines in the world. And already this successful copper and zinc operation is in the beginning stages of a major expansion. When mining companies consider expanding their operations, oftentimes they must overcome a number of hurdles—such as obtaining a social license or addressing safety and environmental concerns. However, this is not the case with Antamina—a mine that set the bar for a greenfield operation five years ago and continues to drive the future of what a sustainable mining operation should look like. “Antamina set the standard in our country for safety and for good relationships with employees and the community,” says Jorge Durán, mining division manager of Caterpillar dealer Ferreyros. “They go above and beyond what is required—and that has been a key to their success.” Decisions are driven by a desire to be a sustainable business, not just by cost or profitability, says Durán. “Cost is second tier or third tier in their decision-making,” he says. 12 Cat Global Mining / Viewpoint / 2009: issue 5 “In the past, the primary purpose of a mine was to produce metals and generate a profit,” says Gonzalo Quijandría, Antamina’s manager of corporate affairs. “Now we’re talking about the balance of the community and other stakeholders so that they realize the benefit. And we balance the need of future generations as well.” About Antamina Antamina produces different mineral concentrates, primarily copper and zinc, as well as molybdenum, silver and lead, which are secondary byproducts. The concentrates are fine mineral dust that has been reduced to microns with a high metallic content. The Antamina surface mine, mill and concentrator; a 302-kilometer (188-mile) underground pipeline for transporting concentrates; and the port facilities at Huarmey on the Pacific Ocean, are owned by BHP Billiton Plc. (33.75 percent), Xstrata (33.75 percent), Teck Cominco (22.5 percent) and Mitsubishi Corp. (10 percent). The independent companies jointly formed the Peruvian company in 1996 after acquiring the long-known minerals deposit from Minero Peru. As of April 2007, the operation employed 1,500 workers, with more than 98 percent of them Peruvian. In addition, Antamina has around 2,000 strategic partners. The deposit is a large copper skarn with zinc, silver, lead, molybdenum and bismuth mineralization. Recently updated estimates show total proven and probable reserves of about 745 million tonnes (821 million short tons) grading 1.06 percent copper, 0.67 percent zinc, 11.7 grams/metric tonne (0.40 ounces/ short ton) silver and 0.03 percent molybdenum. The concentrator also produces saleable lead-bismuth concentrates. Ore reserves yield a 23-year mine life. Cat Global Mining / Viewpoint 13 3 Developing a difficult site Antamina’s US$2.2 billion construction program was one of the largest new mine development projects ever undertaken in the mining industry. It took more than four years to reach the mineral deposits and required the removal of several mountain tops and the draining of a lagoon. The ore body is in the rugged Western Cordillera range of mountains at an altitude averaging 4,300 meters (14,100 feet)—an altitude that creates a difficult working environment for both operators and their machines. Just getting to the site required construction of 210 kilometers (130 miles) of roads, including a 118-kilometer (73-mile) paved highway connecting Conococha to Antamina. Managing the impact In addition to the logistical challenges, Antamina faced a number of unique challenges in the area of environmental protection and management of community interaction. Antamina has been innovative in its approach to these issues, and as a result, has set new standards in Peru for 14 Cat Global Mining / Viewpoint / 2009: issue 5 environmental management and sustainable development. “Managing the environment is a priority for us,” says Antonio Mendoza, environmental manager for Antamina. “From finding ways to minimize emissions and discharges into the environment, to reducing waste and avoiding spills, we use state-of-the-art technologies to prevent and control the impact of our operations.” For example, while it would have been easier to build a road to truck copper and ore to the nearest seaport, Antamina’s owners instead built a pipeline that uses water to transport the ore down the mountainside. The pipeline has a station with four high-pressure pumps and four valve/choke stations, as well as emergency evacuation ponds to reduce 1/ The Punta Lobitos Port facilities near Huarmey were designed to export copper and zinc concentrates from Antamina. The terminal has coastal and marine facilities to receive, filter and store concentrates, as well as a 271-meter (890-foot) long dock that includes a hermetic conveyor belt for concentrates. 2/ A reinforced underground pipeline transports the copper and zinc concentrates from Antamina to the port to be exported. The fully monitored pipeline includes a parallel fiber optic network that sends information about the minerals’ progress through the pipeline and inter-connects the entire company. 3/ Antamina’s community development programs include a focus on improving production and productivity levels in farming, the primary activity of local inhabitants. Programs include a “potato seed” program, education on crops technology, Alpaca raising, and an experimental center for the development of improved sheep. 1 4/ Antamina’s water monitoring program is aimed at determining the level of compliance with current water quality standards and identifying the potential impact of mining operations on the quality of water bodies. Monitoring is carried out in about 60 surface water stations and 20 ground water stations, including both mine and port locations. 2 4 the excessive pressure produced by the decline toward the Punta Lobitos terminal. After it’s purified, the water from the pipeline is used to irrigate an experimental farm in the middle of the desert. A number of programs and policies are in place to keep tabs on the mine’s environmental impact. A training program teaches Antamina’s employees, strategic partners and contractors the importance of taking care of the environment in their everyday tasks. In addition, employees and partners participate in planned inspections to identify potential hazards, evaluate risks and point out unsafe practices. A detailed environmental monitoring and control program mandates regular sampling to test water and air quality. “Antamina believes that permanent monitoring is essential to our environmental management program,” says Mendoza. “We monitored our environmental impact during the construction stage, we’re doing it during the operation stage, and we will continue to do so once we reach the closure stage.” The mine monitors discharges into the environment and evaluates the quality of surface water, ground water, air, soil, crops and animals (terrestrial and aquatic) that may be impacted by its operations. In addition, a closure and restoration plan is already being implemented in preparation for the end of the mine’s life. “We’ve been taking recovery action since the construction phase began, by planting native and exotic species that are known for their adaptability,” says Mendoza. “We’re also working to limit environmental impacts and protect watercourses and sensitive habitats.” The recovery and protection of organic soils, including research to determine suitable plant species and ensure optimal conditions in the areas to be recovered, are also key issues to be considered to guarantee the success of the program throughout the life cycle of the operations, he said. While environmental considerations played a large role in development of the site, Antamina paid a great deal of attention to the impact its operations Cat Global Mining / Viewpoint 15 1/ Antamina has a number of educational programs that provide training for teachers and students and focus on improving educational quality and management in 41 schools. 1 2/ The Conchucos Valley, immediately surrounding the mine, is a remote area in Peru that has little access to resources for development. Antamina seeks to improve the living conditions of its neighbors by working together on health, education, infrastructure and economic development. 3/ Antamina has strategic alliances with several organizations, including the Technological Institute of Huarmey, to support education projects for different population sectors in the community. would have on the people there. Through the Minero Antamina Fund, the mine has committed US$125 million in social programs, the most significant amount invested in poverty alleviation by any private company in Peru. Antamina operates in an area with low economic standards. The Conchucos Valley, immediately surrounding the mine, is a remote area that has little access to resources for development and was at the mercy of terrorist violence in the 1980s. “We think it’s important for our business objectives to be aligned with the hopes and aspirations of the people in these communities,” says Quijandría “That’s why we are in constant communication with them. Our goal is to improve the living conditions of our neighbors and to do it in a responsible manner, working together with the state, nongovernment organizations and, most importantly, the community itself.” The company has developed a number of programs to improve education and health services, create more productive farming, help in the development of small businesses and support local culture and heritage. “We consider ourselves a part of the local community,” says Quijandría. 16 Cat Global Mining / Viewpoint / 2009: issue 5 2 Producing copper and zinc After two years of exploration and nearly four years of construction, Antamina achieved commercial production on Oct 1, 2001. Antamina estimated it will produced 1.1 million tonnes (1.2 million short tons) of copper concentrate and 600,000 tonnes (661,400 short tons) of zinc concentrate during 2008. Keeping the mill and concentrator fed is an aroundthe-clock task, as throughput averages 85,000 tonnes (94,000 short tons) per day. To supply that ore, the site moves 360,000 tonnes (397,000 short tons) of material daily. Antamina operates four Bucyrus 495B shovels and six Caterpillar® 994D and 994F wheel loaders, working with a fleet of 54 Caterpillar 793C and 793D trucks. At least one of the loaders is operating as a production loading tool at all times as the mine operates five mining faces. There are eight principal ore types and many other variations. As a result, stockpile blending is done on site. That task keeps one loader busy, and the other loader works on clean-up jobs or as a substitute for a shovel undergoing maintenance. “We blend to optimize concentrator production,” says Dan Gurtler, mine development manager, “and we have achieved increased throughput and recovery rates.” The stripping ratio is about 2:1, which makes waste removal a big part of the mining plan. The current 3 site is about 2 kilometers (1.2 miles) long and 1 kilometer (0.6 mile) wide. The highest elevation is 4,800 meters (15,750 feet) and the lowest is a bit more than 4,100 meters (13,450 feet), though the excavated area is about 500 meters (1,640 feet) deep. The first division of the material is done with a simple rotary grinder, which has an average capacity of 72,600 tonnes (80,000 short tons) a day. Huge blocks of ore are reduced to 13-centimeter (5-inch) blocks suitable for the concentrator plant. Once the material is fractured, the loading process begins. This product is sent on a conveyor belt through a 2.6-kilometer (1.6-mile) tunnel that crosses the mountain. The nature of the minerals extracted at Antamina made it necessary to design and build a highly complex, state-of-the-art concentrator plant in Yanacancha. Worth US$755 million, the plant has a design capacity of 70,000 tonnes (77,000 short tons) per day but is capable of processing 72,600 tonnes (80,000 short tons) of up to six different types of material at the same time. The plant is industry-leading in terms of automization, safety and environmental respect. Operating safely The mine also is known for the high standards it sets for safety. “It’s not the results, it’s not the numbers and profitability that differentiate Antamina,” says Ferreyros’ Durán. “It’s the safety culture of the mine—the attitude. They think of safety as a culture. We all learn from their efforts.” Antamina requires everyone on the site—including contractors and visitors—to follow strict safety policies. Specific high-altitude physicals and additional medical tests are required for everyone on site. Antamina promotes the health of its workforce by providing annual exams and partnering in healthy lifestyle campaigns within the local communities. The site has adopted key systems to evaluate and control risks, such as the Integral System of Management of Risks at Antamina (SIGRA) and Analysis of Security (AST). The site also has a focus on transportation in cooperation with the local communities. For example, because of the challenging terrain, driving after dark is not permitted. “We have policies and procedures to monitor the safety of everyone who visits Antamina,” says Enrique Alania, manager of industrial safety, health and logistics. The mine provides ongoing training for truck operators that includes the use of truck simulators to reduce truck delays and reinforce safe operating techniques. Mine-wide, the accident rate has dropped from more than 17 reportable incidents per million hours worked to 2.25 during the past two years. Some of the success is attributable to a Cat Global Mining / Viewpoint 17 communications program developed with input from all supervisors, who meet one-on-one with the equipment operators who report to them. “We can see progress—but this is an area where we will never be able to stop working,” says Alania. “We want to assure that everyone is conscious of the risks and that we work to control them in each activity of the day.” Focusing on improvement Having already laid claim to the title of world's largest producer of combined copper and zinc— and having been recognized also for its social and environmental contributions—Antamina managers have their sights set higher as the mine transitions from meeting world-class production goals to instituting world-class operating and maintenance systems. “Every day we work to improve our processes and achieve operational excellence,” says Saúl Lozano, manager of continuous improvement. “Our initial focus is on effective and efficient administration of key processes using Lean and 6 Sigma tools. By doing this—and maximizing the contributions of our partners—we will succeed.” 18 Cat Global Mining / Viewpoint / 2009: issue 5 For example, Antamina has instituted new haulage road standards to deal with the tough condition of the site. High altitude and 10 percent ramps out of the pit present difficult conditions for the trucks and truck operators. Weather adds to problems, as the mine gets significant rainfall during the September to May rainy season, and rolling resistance increases while traction decreases. The new standards include using selected, crushed rock for road base, crowning for better drainage, and ensuring that all roads are 30 meters (98 feet) wide. The newest trucks are equipped with the Caterpillar Road Analysis and Control system (RAC) for detailed evaluation of the roadways based on strut pressures. Six Caterpillar 16H motor graders handle road maintenance. When it’s not raining, dust can be a problem. To ensure a proper water supply during the dry season, the mine has improved the water distribution system. Three water tankers—two Cat® 777-based tankers and a trailer package—constitute the current dust suppression fleet. To help ensure safety, the mine has instituted a policy of shutting down sections of roads if they become too dusty. The policy by itself focuses supervisors on remedying dust problems before they become severe. Antamina also has had the Caterpillar Global Mining audit team evaluate wheel loader and motor grader operations to identify inefficient operating techniques. After identifying needed changes, trainers worked with supervisors and operators 1 1/ The mine’s state-of-the-art concentrator plant is industryleading in terms of automization. The plant produces three types of copper and zinc concentrates as well as small amounts of molybdenum, lead-bismuth and bornite. 2 2/ Antamina’s maintenance group is divided into three areas of responsibility, with Cat dealer Ferreyros taking care of the mine’s fleet of Caterpillar tracktype tractors and motor graders. first in the classroom and then in the mine. “We eliminated many bad practices,” Gurtler says. Building a maintenance team Improvement efforts are not limited to the operations department. Fleet management and maintenance are moving forward, too. Beyond the common problems of supply logistics and the lack of trained technicians, Antamina is working to change the organizational culture to improve teamwork between the maintenance department and operations. “The maintenance department must be aligned with the mission of our customer,” says Victor Pariona, manager of maintenance. “And the production department is our customer. We must work together to improve reliability and to cost-effectively achieve targeted prodution.” Because the Caterpillar dealer, Ferreyros, and Bucyrus Service Pro also provide maintenance services at the mine, the maintenance group is divided into three areas of responsibility. The production group consists of Antamina employees who maintain the truck fleet, wheel loaders and wheel dozers. Bucyrus Service Pro handles the maintenance of the shovels, and Ferreyros handles maintenance of the mine’s 11 Caterpillar tractors and the half-dozen Cat motor graders. Dividing the maintenance tasks among three organizations enables Antamina to meet its needs for trained technicians. Ferreyros has provided much of the training for Antamina technicians maintaining Caterpillar equipment. In fact, many of those technicians previously worked for Ferreyros. Ferreyros also handles all Caterpillar component rebuilds in its extensive shops in Lima. Additionally, Caterpillar is working with Antamina to determine optimized preventive maintenance schedules for the 793C truck fleet. The maintenance department continues to build its maintenance planning program and to work toward predictive maintenance—all as part of the Antamina focus on changes that will bring long-term benefits to the mine. LoOking to the future Antamina has a number of strategies in place as it looks toward the future. A new model of resources has been developed and research and exploration continue. “We have achieved significant progress in each of our strategic areas,” says Quijandría. “We’re working with the interest groups to assure a sustainable future for the community beyond the life of the mine. And we’re always conscious of the need to show success in our co-existence with others—improving the confidence the public has in the mining industry as a source of growth for Peru.” ■ Cat Global Mining / Viewpoint 19 MINING INDUSTRY EMPLOYS CREATIVE SOLUTIONS TO SOLVE SKILLS SHORTAGE Workforce development is critical focus for many companies One of the most difficult areas for the mining industry has always been managing and maintaining a skilled workforce. The industry is all too aware of the importance of its human capital and its direct impact on the bottom line. As the demand for mining materials and the number of new mining projects has grown over the last five years, so has the importance of developing a skilled workforce. At the same time, the industry is dealing with the fallout from years when commodity prices were low, students pursued better-paying careers elsewhere and mining schools shrank. Today, the average age of a production worker in mining is close to 50. While current economic conditions will ease some of the burden of skills shortages, the industry cannot afford to be caught short-handed during the recovery. Even with no growth in its mining sector, Canada will require 87,000 new workers over the next 10 years to meet demand. The Minerals Council of Australia, in a recent report, estimated that by 2015 Australia would need 70,000 employees on top of the 120,000 it has now to keep up with demand. An estimated 75,000 workers are required to work in mines in South American countries. While these numbers and time tables may shift due to global economic conditions, over the long term the demand for skilled labor in the mining industry will still exist. 20 Cat Global Mining / Viewpoint / 2009: issue 5 “I’m concerned that given the current economic situation, employers might try to save money by cutting staff and training,” says Anthony Hodge, president of the International Council on Mining and Metals (ICMM). “That’s exactly what happened in the 1980s and 1990s, when mining schools were reduced all over the world, particularly in Canada and the United States. And now, of course, the industry is facing a crisis in human resources—there are some companies that will have, in the next five years, retirements across their systems of 40 to 50 percent of their people. It’s absolutely without precedent.” IDENTIFYING THE CAUSES While growing demand for commodities had dramatically increased the need for an expanded workforce, the shortfall can also be attributed to a number of additional causes. Like many industries, mining is affected by retiring baby-boomers, who possess a great deal of knowledge that has not been passed onto a younger generation of miners. In addition, changes in technology and general modernization of the mining industry have increased the training, education, and skills required for the average worker. These changes have not only made it more difficult to find qualified employees, but they have also resulted in higher salaries; longer, more intensive training; and larger investments in human capital. photos/ High-tech equipment and advanced systems like those found on most mining operations require a highly specialized workforce. Many technicians are trained to be specialists dedicated to certain activities. Other causes of the shortage include: • The specialized nature of some jobs in the industry • A history of under-investment in the industry during downturns • A lack of awareness of the opportunities in mining • A lack of promotion of the positive aspects of the industry • Remote locations of mining operations • A history of fluctuating employment rates that follow the boom and bust cycle • Concerns about safety and managing the difficult lifestyle that mining requires. Ed Cullen, manager of the Global Manpower Development Division at Caterpillar Inc., believes the root cause goes back more than two decades. “Twenty years ago, educational systems began encouraging all students to go to four-year colleges,” he says. “This push de-emphasized the skilled trades and now it seems that 80 percent of students, at least in the United States, aspire to go to college. Those who actually go to college and graduate is a small fraction of that number. We need to re-emphasize that skilled trades are a good career choice.” Hodge says it’s important that mining is portrayed as an industry focused on sustainability. “Graduates are increasingly interested in the reputation of their prospective employer, so any perception that mining is a dirty business will do nothing to attract new talent,” says Hodge, who in addition to his duties at ICCM is a professor of mining and sustainability at Queen’s University in Kingston, Ontario, Canada. “I am in a privileged position to see just how excited students are about the sustainability aspect of the industry. Linking sustainability ideas and mining makes sense to my students and brings a whole new light to mining. At ICMM it is the same for our members. I find this encouraging, though there is much that remains to be done.” “We need to work with students and their parents to help them understand the opportunities in industrial careers such as manufacturing, mining and ore processing.” – ed cullen, caterpillar FINDING SOLUTIONS Mining companies and the organizations that support them are introducing new ways of combating workforce challenges. To increase retention and development of current employees, companies are offering flexible hours, increased salaries, ongoing training and clear career paths. New employees are developed through in-house training institutes; partnerships with colleges, universities and technical schools; new training techniques like simulators that speed learning; mentoring programs with knowledgeable veterans; and more. Cat Global Mining / Viewpoint 21 photos/ Technician training combines classroom work with experiential learning—giving students in-the-field practice so they are comfortable and knowledgeable at a hands-on level. Companies also receive support from governments and non-governmental organizations. For example, institutions like Australia’s Mining Industry Skills Centre, South Africa’s Chamber of Mines, and the ICMM in the United States, conduct research, report and deliver workforce development and training initiatives to provide knowledge and support to mining companies. “We recognize the industry has to get more involved,” says Cullen. “We need a grassroots effort. There is no magic pill.” While promoting the positive aspects of the mining industry will help, Cullen believes it will also require personal recruitment. “One-on-one relationships will cause people to be interested,” he says. GROWING A WORKFORCE OF TECHNICIANS High-tech equipment and advanced systems like those found on most mining operations require a highly specialized workforce. Caterpillar, Cat dealers and customers are addressing this challenge with training institutes that are having a significant impact on reducing the shortage in their workforces. Cat’s Dealer Service Technician Program, called ThinkBiG, trains students to become dealer technicians in many industries, including mining. Currently, 19 programs are in place or under development through partnerships between Caterpillar, Cat dealers and community and technical colleges. 22 Cat Global Mining / Viewpoint / 2009: issue 5 The two-year, college-level program teaches students how to service Cat equipment using cutting-edge diagnostic and maintenance systems, advanced technologies, and high-tech tools. Students earn an associate’s degree that can be used for further studies toward a four-year degree if they choose. ThinkBiG combines classroom work with experiential learning—giving students hands-on practice with Cat machines and engines. The program has graduated over 1,500 students in seven countries, with the capacity to graduate 300 to 350 per year. More than 40 Caterpillar dealers participate in ThinkBiG programs. “If this opportunity had not appeared to me, I would’ve had to emigrate to Spain to study and work, said Carlos Arias, a ThinkBiG graduate from Ecuador. “I didn’t want to go because I wanted to graduate and work in my country.” Other dealers, like Gecolsa, the Cat dealer in Colombia, provide their own independent training. Gecolsa created its Training Institute at its mining business headquarters in Barranquilla as a source of trained technicians and engineers to satisfy the massive demand for resources for the mining sector in Colombia. “We anticipated the growth in demand before it happened,” says Ricardo Chegwin, Gecolsa’s technical manager. “We simultaneously implemented the plan to increase the number of technicians and engineers while we were expanding our facilities.” Gecolsa expanded its capabilities in its machine shop, service shop and Component Rebuild Center (CRC) in Barranquilla, as well as at its customer work sites. “The brick and mortar expansion was the easy part compared to human development.” Gecolsa had provided training on a smaller scale for many years, but recently improved and expanded its program to train large numbers of technicians. In 2003 Gecolsa had 38 students (30 technicians and eight engineers). By 2004, that number had more than tripled to 118 (79 technicians, 24 engineers and 15 technicians-in-training). In 2008, the institute had 141 new technicians, 36 new engineers and 37 technicians-in-training. The Gecolsa institute focuses heavily on technicians and engineers, educating primarily students who have graduated from the Colombian National Technical Institute. While these students are already technically trained, the Gecolsa institute provides training that is very specific to the mining industry and its equipment. “There are government-sponsored technical schools that give young people the basics,” says Luis Jiménez, operations manager. “Our course provides intensive training on Caterpillar systems, including engines, hydraulics, brakes, hoist, powertrains, electronics and tools like VIMS and Failure Analysis.” The training provided by Gecolsa at the institute, as well as ongoing training provided throughout an employee’s career, are based on specific competencies. These competencies address government requirements while also meeting the level of skills established by Caterpillar as necessary to perform proper maintenance on its machines. This combination has allowed Gecolsa Institute to be recognized by the government as an official Institute for Employment and Human Development. Gecolsa needs its engineers to be knowledgeable at a hands-on level. “They can’t be scared of iron and they can’t be scared to get their hands dirty,” says Jiménez. “We want them to go through a program with technicians and study with technicians and eat and breathe with them during their formal training.” The institute’s program consists of 67 specific skills that technicians will learn during their six months of training—from the basics to systems operation, preparing them to perform proper maintenance, including component removal and installation. When they are finished at the institute and continue to grow their careers, they may reach the advanced technical level and be qualified to perform diagnostics. “When they reach that level, then we have a complete technician,” says Carlos Escorcia, training area coordinator. “In essence, we are building a technician, step by step.” In addition to technical skills, the Gecolsa Institute includes intensive study in English, focused on reading. Students also learn self-development and effective communication skills, helping them become more successful when interacting within the company and with customers. During the last three months—the practical stage of the institute—the new technicians are joined by experienced ones, creating a competitive environment that improves the performance of both groups. “As these technicians develop their skills, we make periodic evaluations so if we need someone to perform a special task—electronic troubleshooting, for example—we know who we can call on to efficiently and confidently perform the repair,” says Escorcia. Building a team of specialists A main focus of the institute today is on developing more focused and specialized training based on the tasks one or a group of technicians must perform. It’s one of the main differences between the Gecolsa institute and other training programs, such as Caterpillar’s Think BiG. “When these students become employees of the mine, it has a tremendous economic impact on them and their families. They can afford better homes, better living conditions, better education for their children, and raise their standard of living significantly.” – Ricardo Chegwin, Gecolsa “We don’t train technicians to do everything,” says Chegwin. “They are not generalists at all. They are trained specifically for tasks focused Cat Global Mining / Viewpoint 23 wasn’t to be a school. We needed to certify that students either can or cannot perform a specific skill.” “The challenge was where to get the simulators for all of these skills we need to measure,” he continues. “So we decided, ‘We’re going to build them.’ Then we said, ‘Where do we get the manpower to build these simulators.’ And we decided, what better way for students to learn than to build the simulators themselves?” Cat dealer Matco builds unique technician training program Matco was pleased when it got its first full Maintenance and Repair Contract, for a fleet of 26 machines—mostly Cat 777s and 992Gs—for a mining customer. But as the dealership took on the responsibility of caring for this fleet, it became apparent that it would also have to build a workforce of technicians to do the job. In response, Matco developed an aggressive plan to expand its team, implementing a unique mining training program that has helped increased its service—expanding its workforce to nearly 450 technicians. Matco looked inside its own organization, identifying the most skilled technicians across all the industries it serves and providing them additional training on mining equipment. “Our top technicians were invited to take part in a focused training program, says Alfredo Fonseca, General Service Manager. “They learned a lot about safety, and they spent six months on the sites working with veteran technicians, doing repairs and mine-specific maintenance. “The best technicians earn a certification by Matco,” says Fonseca. “And the best of the best get Cat-certified,” he says. “Ten years have passed since the beginning of this successful business relationship, and both the mining customer and Matco have benefited,” Fonseca says. “This is reflected in the growth both companies have experienced— the customer fleet and Matco’s workforce have expanded to about four times their original size.” Building simulators—and technicians Like other companies facing a shortage in technicians, Matco began looking for a way to speed up the learning process. As they considered options, they kept in mind the adage: “What you hear, you forget. What you see, you remember. What you do, you understand.” “We decided to use hands-on simulators to break the formal way we used to do training,” says Fonseca. “We were doing classes, tests, etc., which are important—but our goal 24 Cat Global Mining / Viewpoint / 2009: issue 5 In partnership with a local university, Matco developed the Programa Practicantes Internship Program, which takes the school’s best students each year and gives them the opportunity to learn at Matco. The majority of the interns are studying to be electrical or electronic engineers. Interns receive compensation for transportation and other expenses. Projects are defined based on service department needs relative to training, technician development, operations, etc. Local universities are solicited for candidates in their sixth semester or higher. The new interns are introduced to the service team and the project to be developed is assigned. Once they are familiar with the project, a work plan is presented. The most common project is to design a training simulator. Typically these are based on components donated from Cat as a result of warranty failure. Matco interns have developed dozens of simulators. The majority are engines, but some projects simulate transmissions or hydraulics. Others focus on topics like safety, contamination control and service truck design. From day one, the students are a part of the Matco organization. “They feel like they are working in the company, learning and preparing for real life. I treat these guys like they were any other service engineer in the company,” Fonseca says. “They are more than just students; they commit to finishing the projects they are responsible for in a timely manner. That kind of early commitment shapes the character of our future service engineers.” Reaping the benefits “The results of the program have proven to be invaluable,” say Fonseca. “The interns have fulfilled service department needs through the development of lube trucks, training materials, filtration and fluid dispensing systems, and service shop control systems—all of which ultimately lead to more efficient operations while reducing cost and increasing revenues.” Matco’s training philosophy has been modified as a result of the training aids. The training is organized to provide 30 percent class time and 70 percent simulator time. The results have been reflected in a rise in the technicians’ production capacity, parts and machine sales, and a reduction of redo in the shop—which has been reduced from 6 percent to 1 percent three years in a row; the Cat benchmark is 2 percent. mainly on maintenance activities at a customer’s mining operation. Gecolsa’s technicians are developed with skills in very focused areas. “For example, we used to develop preventive maintenance technicians— technicians that are efficient and skilled in oil, fluids, filters, etc.,” he says. “Now we’re developing technicians that are specialized in activities like removal and installation of major components in mine sites and disassembly and assembly in the CRC shop.” Having dedicated specialists allows quicker repairs. “The faster and more focused on the task we can be, the better our customers’ machine availability and reliability will be,” says Escorcia. Community involvement Another Gecolsa training institute recently opened near the Colombian coal mining sector of La Jagua in partnership with local mining companies Drummond and Prodeco; Gecolsa; and the Servicio Nacional de Aprendizaje (SENA), the country’s National Training Service, which was created in 1957 as a result of the joint initiative of organized workers, entrepreneurs, the Catholic Church and the International Labor Organization. SENA invests in the social and technical development of the Colombian workers—offering and executing vocational training for the integration of people to productive activities that contribute to the economic, social and technical development of the country. The La Jagua training center will serve the mining community by developing a diverse workforce and creating opportunities in the various disciplines within the mining industry. To Gecolsa, the new center is an opportunity to respond to the intense requirement for more technicians and engineers, and also to meet the social need of the community. “This training center has been a tremendous benefit for the local community,” says Chegwin. “It helps our mining customers address social need and minimize the political issues by adequately preparing people for employment.” FOCUSING ON OPERATORS In addition to finding and training skilled technicians, mining companies and equipment dealers must also address a shortage of skilled operators to work in the mines. Gecolsa offers training for all of the equipment it sells, supporting that training with a trainer who travels to the site. Special training modules also allow customers to train their own new operators. Typically, operator training consists of 10 hours in the classroom, 10 hours in a simulator, 10 hours on-site becoming familiar with the machine, and 10 hours operating the machine while being supervised by a trainer. Gecolsa believes it’s very important for its customers to have their operators well trained—so they can work safely as well as achieve the optimal cost-per ton. Peter Salfinger, CEO of Immersive Technologies, partners with companies to provide simulators—a safe, effective learning environment. Simulators train to a higher skill level, he maintains, by providing a range of scenarios, production techniques and emergency situations. Research shows simulator-trained operators are generally more productive on real machines. Simulators also reduce costs by decreasing the need for training supervision and lowering the training time and machine operating costs. They also offer training flexibility because training is available at any time. Simulator systems are also available through Caterpillar. The Cat Virtual Training System (VTS) teaches entry-level operators the basic machine operation skills and application knowledge. Systems “Simulators help reduce training times, which sometimes are up to 50 percent shorter. An added benefit is the reduction in maintenance costs and less damage to machines because operators are trained in a controlled environment.” – Peter Salfinger, immersive technologies are available for the M Series motor grader, large hydraulic excavator, large wheel loader and medium off-highway truck. Salfinger said simulator technology has been well received and is having a substantial impact in developing countries, helping new mines get up and running. An added benefit of the simulator training is that it uses computer/video game type scenarios, which a younger generation of potential employees finds familiar and attractive. ■ Cat Global Mining / Viewpoint 25 New technology solves inconsistent haul road watering Smart Watering improves safety, reduces costs Mine sites have been controlling haul road dust the same way for generations: Operators fill their water truck, drive onto the haul roads (often at speeds slower than the trucks around them) and then quickly spread the contents of their tank. However, the process of placing the right amounts of water in the right locations with the right application or spread of water is a much more complicated task, requiring different approaches for different haul road conditions. Add to this that mining operations in some cases assign the task to less experienced operators and it becomes easy to understand why some mine sites are watering improperly— compromising safety, wasting fuel and water and even reducing tire life. That’s why Caterpillar Inc. and some of it’s mining customers have been cooperatively developing new smart watering technologies: to make accurate watering a simple, safe and efficient task for mines. Safety issues Improper watering creates ideal conditions for haul road accidents. As a result of over-watering, haul road surfaces become spongy and slick, causing trucks (especially empty haul trucks) to lose traction and slide. It can also cause engines to rev and tires to spin, increasing fuel burn and reducing tire life. Under-watering creates its own set of hazards, such as allowing dust to permeate the site. These wakes of dust reduce visibility and can tax the various filtration systems on the machines, including those serving the operator environment. Dry patches also create potential hazards when directly adjacent to an oversaturated patch of ground—especially on bends in the road. If a truck starts sliding on a wet patch and then hits a dry surface, a stopping-effect can occur which could cause structural damage to the truck. Smart watering 26 Cat Global Mining / Viewpoint / 2009: 2008: issue 5 The unique approach Cat and its customers have created (and are currently testing) addresses these issues by making use of a semi-automated onboard watering system, controlled by a simple operator interface. Within the cab, the operator chooses from an array of specific watering conditions, selecting the mode of operation that best describes the type of haul road situation he is encountering. Making use of specialized, smaller and highly adjustable spray nozzles—which are placed closer to the ground on a lowered spray bar for greater spray control—the technology automatically applies water to the surface of the haul road in an ideal spread for each application. In addition to correct watering, this automated approach enables operators to keep their hands on the wheel and their eyes on the road. The new technology also adjusts for the speed of the truck, enabling the operator to travel more at the speed of haul road traffic. And when the water truck speeds up or slows down, electronic sensors on the truck recognize the change in velocity (as well as the amount of dust in the air) and the system regulates water flow and activates the spray heads accordingly. Better technique During periods of peak demand, operators tend to flood haul roads with streaks of water to give themselves time to respond to other tasks. Caterpillar has found that a more appropriate approach, however, is to distribute water evenly using spots or pulses. For this reason, smart watering has been designed to spread water more precisely in a staggered spray or drizzle formation. Water is laid down in an even coverage—just enough to control dust without causing slick or spongy conditions. This pulse or spot watering approach also saves water. Engineers estimate a savings of 10 percent over traditional watering techniques. And because smart watering allows for travel at normal speeds without revving the engine for higher revolutions, engineers estimate an additional 10 percent savings on fuel, as well. “Typically, pulse watering is the ideal approach,” says Caterpillar haul road support specialist Kent Clifton. “There are timers available today that you can use to set cycles or rhythms to give you those pulse patterns. You can adjust them to your ground speed, how much water you need and how long of a duration for the spray. Of course, the new smart watering system will automate most of that.” Additional savings When purchasing a new water truck, the relative costs of adding this smart technology will be minimal compared to the value of the safety improvements on haul roads. The potential operational savings could make for an enormous return on investment, as well. Says Clifton: “When you water a haul road properly, you make an impact not only on tire life, but on component life, your brakes and your wheel groups. You reduce your fuel burn. Ultimately, you make the site safer for everyone.” ■ Controlled Water Cart— developed by Thiess and Caterpillar According to the Queensland Department of Mines, at least one vehicle slides out of control in Queensland every two to three weeks due to haul road saturation. So mining contractor Thiess spent two years developing its own Controlled Water Cart for the Collinsville Open Cut Mine in North Queensland. Much like the projected Caterpillar design—and using a Cat off-highway truck as the base—the Thiess cart features: • Automated water delivery based on truck speed • Lowered spray bar with more, smaller spray heads • No water delivery below 5 kilometers per hour (3 miles per hour) Thiess soon rolled out its new technology to nine other sites due to the success achieved at Collinsville. Coupled with site changes like greater operator training and accountability, the Controlled Water Cart enabled Thiess to: • Minimize its haul road accident rates • Achieve plant maintenance savings • Extend tire and transmission lives • Reduce water usage by about 10 percent • Reduce ongoing maintenance costs “Controlled water solutions like the one developed by Thiess are really in their infancy,” says Clifton. “The technology has come a long way already, but we’re well on our way toward additional enhancements, such as a more operator friendly interface.” Cat Global Mining / Viewpoint 27 The Men of the Deeps: Shining a light on the miner’s life Since 1967, The Men of the Deeps, a choir of working and retired coal miners from the island of Cape Breton in Nova Scotia, Canada, have been singing of the work and lifestyle of the coal miner. Their recent Caterpillar sponsored performances during MINExpo 2008 were a moving tribute to the mining industry’s hard-working men and women. Dressed in the miners’ garb of coveralls and hard hats, they made an impressive impact when they walked to the stage in total darkness with their helmet lamps providing the only light. 28 Cat Global Mining / Viewpoint / 2009: issue 5 Organized in 1966 as part of Cape Breton’s contribution to Canada’s Centennial Year (1967), the group’s inception was an effort to preserve in song some of the rich folklore of that island’s coal mining communities. The group has performed in every province and territory in Canada, in a number of U.S. cities, the People’s Republic of China and Kosovo in the former Republic of Yugoslavia. www.menofthedeeps.com Russian contractor Transtonnelstroy, owner of two LOVAT RME222SE Tunnel Boring Machines (TBMs), recently contracted Caterpillar owned LOVAT to perform a complete refurbishment of both machines. After undergoing a comprehensive inspection, the TBMs, originally delivered in the 1980s, were modernized and retrofitted with current technologies and state-of-the-art safety equipment as part of the refurbishment program. Both machines had their diameters increased to support planned future tunnel projects in Russia, including a 2,691-meter (8,830-foot) long tunnel in the Zapolyamaya Coal Mine in Vorkuta. Refurbishment of the TBMs, performed in Russia under the supervision of LOVAT technicians, was completed in spring 2008. Ground-Engaging Tools feature hammerless installation Caterpillar® LM Series™ Ground-Engaging Tools (GET) feature a new “hammerless” retention system that improves safety and productivity. The new Caterpillar CapSure™ tip-retention design allows tip installation and removal using only a 19-millimeter (3/4-inch) ratchet. The pin and retainer are integral with the tip, so the technician needs only to turn the side-mounted locking system 180 degrees, exerting minimal force to activate the system. Positioning access to the locking system on the side of the tip reduces wear and results in easier, faster tip replacement. New underground truck features more power The new Caterpillar AD55B articulated truck for underground mining with the Cat® C27 ACERT® engine features more power and enhanced braking and retarding for faster speed on grade and greater productivity. The 55-tonne (60.5-short-ton) capacity truck also has new components and layouts for greater reliability and easier maintenance. Operator comfort and safety are enhanced with smooth transmission shifting, a new system to absorb shock, an ergonomically designed operator station, and a safety interlock system that automatically applies the park brake if the operator fails to do so before exiting the cab. » For more Caterpillar news, visit www.cat.com news cat From LOVAT refurbishing machines to support projects in Russia Shroud system protects underground loader buckets Cat to develop autonomous blasthole drill system Caterpillar’s new Mechanically Attached Shroud System provides extended cutting-edge life for buckets used on three Cat underground loader (LHD) models—the R1700G, R2900G and R2900G XTRA. The shroud system features hammerless installation and removal, allowing safe, fast shroud segment changes for reduced downtime and increased productivity. The new shroud segments are retained via a simple mechanical system that incorporates a locking pin and retaining piston secured with a cap screw. The design offers protection for both the top and bottom surfaces of the bucket lip, and the shroud segments feature increased wear material to prolong service life. Caterpillar recently announced a development program that will create an autonomous system for blasthole drills used in surface mining operations. Cat will design the drill control program by building on the proven software and hardware of the AQUILA™ Drill System, which uses satellite navigation to determine precise hole location and collar height, enabling correct positioning of the drill and accurate drilling depth. The autonomous drill system will leverage the sensing and motion technologies used in the Caterpillar autonomous haulage system and will integrate with the Cat autonomous mine infrastructure. Cat celebrates 30 years of high drive Caterpillar recently marked 30 years since it introduced the revolutionary high-sprocket drive system on the D10 Track-Type Tractor. Today, the high-drive system has become an industry icon and continues to set the standard for large dozer track systems. Well over 100,000 high-drive tractors have been sold around the world. Advantages include a suspended undercarriage that keeps the track on the ground in varying conditions, providing outstanding balance and maximum performance across all applications, a modular design that helps simplify maintenance procedures to reduce downtime; outstanding operator visibility; and easy disassembly of the tractor for easier transport. Cat offers new learning opportunities Caterpillar’s Equipment Training Solutions now include e-learning opportunities, as well as instructor-led, simulator-based classrooms and in-the-iron programs. The new e-learning curriculum includes tips and techniques on safety, machine inspection and operation. Technology-enabled learning creates a new type of classroom—one that is created when users log onto a Web site, insert a disc or join a virtual classroom. A Virtual Training System using simulators is another key tool, providing a safe environment to learn skills on hydraulic excavators, motor graders, off-highway trucks, wheel loaders and wheel tractor scrapers. New remanufacturing facility will serve emerging markets As part of its plan to increase remanufacturing operations and better support the mining industry in Asia, Caterpillar has announced it will open a new remanufacturing facility in Singapore. The site will serve as the regional source for remanufactured major components, including mining truck engines, transmissions, final drives and torque converters. The new 20,000-square-meter (215,278-square-feet) facility will expand Caterpillar’s current remanufacturing operations in the Asia-Pacific region, which includes an existing facility in Shanghai, China. The facility is expected to be operational by mid-2010. Cat earns sustainability designation for eighth year Caterpillar has been named to the Dow Jones Sustainability World Index for the eighth straight year and has retained the leadership position in the Industrial Engineering sector for the third year. The process involves a thorough analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance and citizenship, risk management, branding, climate strategy, supply chain standards, product stewardship and occupational health and safety. Cat Global Mining / Viewpoint 29 Viewpoint is published in English. Text-only versions in Chinese, French, Portuguese, Spanish and Russian are available at www.cat.com/viewpoint. Viewpoint es publicado en Ingles. Versiones en Chino, Francés, Portugués, Español, y Ruso disponibles en texto únicamente a www.cat.com/viewpoint. Viewpoint est publié en Anglais. Les versions texte-seul sont disponibles en Chinois, en Français, en Portugais, en Espagnol, et en Russe à www.cat.com/viewpoint. Viewpoint é publicado em Inglês. Versões somente em texto em Chinês, Francês, Português, Espanhol e Russo encontram-se disponíveis no site www.cat.com/viewpoint. Вьюпойнт публикуется только на английском языке. Переводы текста на китайский, французский, португальский, русский и испанский языки находятся на сайте www.cat.com/viewpoint. For a subscription, please e-mail your contact information to [email protected] www.cat.com © 2009 Caterpillar | All Rights Reserved | Printed in USA CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. AEDQ0048