february the redpath group’s global newsletter · after four years of declining metal prices...

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INSIDE Africa | Asia | Australia | Europe | North America | South America redpathmining.com REDPATH SOUTH AMERICA: RAISING EXPECTATIONS SHAFT SINKING Finding Success at the Bottom REDPATH AUSTRALIA Rewarding Safety THE REDPATH GROUP’S GLOBAL NEWSLETTER 2018 FEBRUARY Safety - First, Last and Always.

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Page 1: FEBRUARY THE REDPATH GROUP’S GLOBAL NEWSLETTER · After four years of declining metal prices (2011-2016), the markets have finally turned, prices have strengthened and the outlook

INSIDE

THE REDPATH GROUP’S GLOBAL NEWSLETTERAfrica | Asia | Australia | Europe | North America | South America

redpathmining.com

REDPATH SOUTH AMERICA: RAISING EXPECTATIONS

SHAFT SINKING Finding Success at the Bottom

REDPATH AUSTRALIA Rewarding Safety

THE REDPATH GROUP’S GLOBAL NEWSLETTER

2018FEBRUARY

Safety - First, Last and Always.

Page 2: FEBRUARY THE REDPATH GROUP’S GLOBAL NEWSLETTER · After four years of declining metal prices (2011-2016), the markets have finally turned, prices have strengthened and the outlook

THE REDPATH GROUP’S GLOBAL NEWSLETTERredpathmining.com

Table of Contents

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Safety and President’s Message

Global Community

On-site: Miner Details

Human Resources

Redpath South America: Raising Expectations

Safety - First, Last and Always

Guest Spotlight

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

On the cover: Crew members pose in front of the Redbore 60UR at Codelco’s Andina Mine in Chile.

“Redpath’s safety theme for February is ‘Complacency’. Please take the time to review this topic and discuss it with your crews and co-workers.”Derek Budge, Director of Health, Safety and Environment The Redpath Group

PRESIDENT’S MESSAGE

SAFETY MESSAGE

“I know that we will meet the challenges head-on and deliver successful projects to our clients, just as we have always done.”George Flumerfelt, President and CEO The Redpath Group

After four years of declining metal prices (2011-2016), the markets have finally turned, prices have strengthened and the outlook for the mining industry is much more positive than it was a year ago. Mining companies have been commited to repairing their balance sheets over the past few years by focusing on cost management and debt reduction. Most companies have been successful and will now, hopefully, turn their attention to developing and expanding mines which will lead to new contracting opportunities. Redpath is well positioned to take advantage of these opportunities as they arise.Safety - First, Last and Always.

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In 2017, we enjoyed a successful year with revenues increasing slightly over the previous year. Margins, however, tightened last year as the mining contracting industry remains fiercely competitive. I expect it to remain so in 2018. Our safety performance in 2017 was the best in our history and, most importantly, the injuries that Redpath employees sustained were less serious than in previous years. Well done everyone! As we all know, nothing is more important than the safety of our employees.We won a significant amount of new work in 2017, and our work in hand

You have probably heard of the Four States of Mind that can lead to injury and incidents: rushing, frustration, fatigue and complacency.The first three can often be easily identified, while complacency is more difficult to determine due to its subjective nature. It is quite common during the investigation process for those involved to explain how they were rushing (hurrying), frustrated (mad or upset) or fatigued (tired) but you seldom hear about complacency as a cause.Complacency can be defined as “a feeling of quiet pleasure or security, often while unaware of some potential danger, defect or the like; self-satisfaction with an existing situation, condition etc.”At Redpath, we put significant effort into Critical Risk Management – identifying and managing those critical risks which could lead to fatalities.

This is clearly the right thing to do and we will continue with this endeavor. Recently, we have seen various examples of serious injuries resulting from “low hazard” activities at work which wouldn’t normally require Job Hazard Analysis, Risk Assessments, etc.Are we becoming complacent in how we approach routine tasks including walking, driving and handling material manually? Routine, monotonous and boring tasks may lead to us dropping our guard and so we must try to keep safety in mind at all times.Neil George’s definition reads, “Safety is a state of mind whereby we are constantly made aware of the possibility of injury at all times”. Let’s stay aware, let’s stay focused and let’s get our work done in such a way that everyone goes home safe and healthy everyday.

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(backlog, order book) is at a record high. This is excellent news. We’ve won new work in all markets we compete in, and we are going to be fully challenged to start our new projects well, and on time. In the words of Jim Redpath, “Challenge is an important part of life!”

Hampers Make a Great Gift!A Christmas Gifting Ceremony was held in December for all Redpath Rig Resources employees. Each employee received a hamper filled with food, cleaning supplies and other goodies.

Running for Fun

Team members of the Redpath Running Club attended a parkrun on the 9th of December, held at Midstream Estate. Even the youngest members had a wonderful time.

been actively supporting for the last 12 months. Redpath is one of the main sponsors of the underprivileged school’s MiniChess programme (an educational programme that uses Chess as a tool to teach basic math, science, language and life skills to pre-school and foundation phase learners).

In addition to the MiniChess programme, Redpath supports a number of different community empowerment and enterprise development initiatives; all of which are overseen by The Entrust Foundation.

Year-End Celebrations Feature a Turkish Flair

Colleagues in the Redpath Africa office ended the year on a high note, with a Turkish themed dinner held at a castle called A la Turka in December. Dancers, amazing food and fabulous atmosphere kept spirits high all through the evening.

Fist-Bump for Safety!The Redpath Mining Zambia SHEQ team launched the Chibusa Safety Campaign across all Redpath Zambia sites in early December. The campaign involves all staff members greeting their team mates each morning by saying “Chibusa – Safe and Fine”, while bumping fists. Chibusa means, ‘you are my brother and I am looking out for you and you are looking out for me’.

Since the launch of the campaign, the SHEQ team has noticed a marked difference in each member of the team acknowledging one another. Well done to all members of the team; Chibusa!

Chess Continues to Inspire Youth to Learn and Grow

The Redpath Mining Africa team recently attended the year-end student prizegiving at Mvelaphanda Pre-School – a school which Redpath has

The crew during the initial introduction and start up of the campaign.

(L) Evert Van Staden, Safety Executive, and (R) Justine Sinyangwe, Senior HR Officer.

A beautiful evening to celebrate the end of one year and beginning of another.

(L-R): Stephen Hodgson, Commercial Director, Redpath Africa; Mvelaphanda pre-school Student; Marisa van der Merwe, Entrust Foundation Chairwoman.

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Long Term Service Rewarded at Redpath MongoliaDuring a new year celebration held for Redpath Mongolia employees, Long Term Service and Recognition awards from the Ministry of Mining were handed out on behalf of the RMG management team.

(L-R) Sukhbaatar .TS was honoured as Best Miner from the Ministry of Mining and Heavy Industry, and Azjargal.TS was awarded with the Honorable Certificate of the Ministry.

Sukhbaatar .TS (R) receives his award for Best Miner from the Ministry of Mining and Heavy Industry.

one 72R, two Redbore 70s, two Redbore 50s, and one Redbore 40. PTRI will add two more Redbore 50 drills in 2018 for a total of ten drills. That’s more drills than any other Redpath project worldwide.

Not only did Guy make many contributions to Freeport and Redpath, he also impacted the country by fully embracing the Indonesian culture. He learned the language, gave lectures at universities across the country and, through all of this, shaped his legacy. He will be sorely missed in Indonesia.

On behalf of PTRI management, our workforce, Guy’s team, and from the shops and offices in North Bay, we extend our utmost respect and appreciation for his dedicated commitment and service to the Freeport project. There’s only one Guy Julien (better known as Guymo) and we are fortunate to have him on Team Redpath. Guymo’s next adventure? Mongolia - where the Oyu Tolgoi project is starting with just one raise drill…

Long term service award recipients; (top) Shafts 2 and 5 crew; (bottom)Shaft Logistics crew.

Longtime Raisebore Manager Takes on Fresh ChallengeAfter a long and fulfilling career at the Freeport project, Guy Julien, Raiseboring Manager, will be embarking on another adventure.PT Redpath Indonesia (PTRI) celebrated the man who arrived in Indonesia in 1987 and dedicated the next 30 years to building one of the largest and safest raisebore operations at Redpath.

Through Guy’s management and mentoring skills, his team of skilled National and Expatriate employees exceeded 28 years without a lost time incident this year. That’s not only an incredible achievement – it’s almost unheard of in the industry. Guy worked hard at growing the business at Freeport’s Grasberg Mine. Starting with one 82R drill (and the blessings of Freeport!) he built up the drill fleet to one consisting of two 82Rs,

Guy Julien, (centre) has been a part of PT Redpath Indonesia’s Raiseboring team since 1987.

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those working at the face on projects around the world, as well as their supportive family networks.Randy Grenon, who has been at the helm as Director of Operations for South America, took to the podium to offer some insight and reflection on his time with Redpath. His words resonated with many in the room, especially those who have worked with Randy over the years. There is no doubt that his presence will be missed at Redpath, and we wish him nothing but success and happiness in the years ahead!

Annual Redpath Canada Limited Bonspiel Continues to be Popular EventFebruary 3, 2018 saw the annual curling bonspiel held at the Granite Club in North Bay, Ontario, Canada.

Colleagues in the North Bay area were invited to join forces in teams on the ice and do their best to place rocks closest to the button. A blend of experienced and novice players made for a fun mix, as each team tried their best to

Congratulations to all recipients! Redpath Canada Limited Reflects on 2017 with GratitudeThis year’s Christmas party hosted at the Ramada Inn near North Bay, Ontario, Canada was both well-attended and well-enjoyed!

The atmosphere was one of appreciation for the hard work accomplished over 2017 both below and above ground, around the globe. Glasses were raised in a toast to all of

Randy Grenon, Director of Operations for South America reflected on his upcoming retirement and years of service with Redpath.

First place winners at this year’s bonspiel.

The team with the lowest overall score.

knock out their opponents. Plenty of encouraging words and friendly banter made for an entertaining and fun day.

Excellent prizes were awarded to best overall score, lowest score and plenty of door prizes were also handed out.

Redpath Raiseboring Limited: Looking Forward and Looking Back 2017 was a good year for Redpath Raiseboring in many aspects, and bittersweet in others. Johan Davel was welcomed on as Raiseboring General Manager, while at the same time it

The first Redbore 60UR, outfitted with a deflector and destined for Chile, nears completion at the Raisebore Shop Complex in North Bay, Ontario, Canada.

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Redpath Raiseboring’s Research & Development department is focused on automation, with adaptive reaming control as the first order of business for 2018. The department is also in the early stages of developing a software solution for a raise drill training simulator. Safety and efficiency are the end goal for all of RRL’s up and coming design and manufacturing endeavors - here’s to a safe and productive 2018!

Oyu Tolgoi’s Shaft 2 Marks the End of an Era in Shaft SinkingOn January 13, 2018, DAYAN Contracting, a Redpath joint venture, completed the sinking of Shaft 2 at Oyu Tolgoi for Rio Tinto in the Gobi desert of Mongolia. Following is an excerpt from Michel Charron, Project Director Underground to his team at Oyu Tolgoi:Dear colleagues,On the 13th of January, the project reached a significant milestone with the completion of Shaft 2 sinking. This is made all the more impressive by the exceptional safety performance achieved by a national contractor new to shaft sinking, working in what is recognized as one of the most hazardous environments in mining. This milestone has been ten years in the making, enduring two project shutdowns

and consuming one million direct man hours. This has culminated in a 1,284 m deep 10 m diameter shaft with five shaft stations requiring 500 blasts, the mass excavation of 135,000 cubic metres of material and the installation of 1,600 cable bolts and 40,000 resin bolts.Attention now turns to the stripping and equipping of the shaft, that along with concurrent works, in fitting out the head frame will see the delivery of the service and production hoist that will be the primary means of transporting the workforce and mined material to surface.Michel Charron, Underground Project Director Congratulations to all involved in bringing this project to completion!

was with a great deal of sadness that we bade farewell to Dan Kelly, Senior Manager of Raiseboring. Dan’s legacy will never be forgotten, and his impact has helped to bring the department to its current point of growth and productivity.

2017 marked the most productive year ever for Redpath Raiseboring’s manufacturing team. Eight drills were manufactured and shipped. Four drills went to Redpath Chile, one to Redpath Africa, two to the Canadian operations, and one machine was sold to Coeur Mining in Mexico. Four additional machines are currently underway with two more scheduled for Indonesia, one for Africa and one for Canada, all due to be shipped in early 2018. On the operations front, busy times lay ahead with work extending out 18 months. All existing raisebore projects were granted work extensions well into 2018 including Musselwhite, Westwood, Lalor, 777, Reed, Éléonore, and Oyu Tolgoi in Mongolia.In 2018, Redpath Raiseboring Limited will finalize the design of the Redbore 35 and 65 raise drills. These drills will further round out Redpath’s raiseboring offerings, with the 65 drill able to complete a three meter diameter raise and the 35 drill able to complete a one meter mobilized raise. Safety is always a priority and as such, these designs will include the manufacture of safety curtains, shields, liners and falling object protective structures for field operations.

The Redbore 50MDUR in Chile.Shaft 2 nearing bottom.

A ten-year long challenge comes to completion.

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Excavation Complete at Mosaic’s K-3 North ShaftAt what could be called one of the more technically challenging shaft projects Redpath has been a part of, crew members celebrated reaching shaft bottom on Saturday, January 13, 2018. The North shaft reached a total depth of 3,566 feet and is one of K-3’s two shafts which began sinking in 2013.

Congratulations to all team members for working together with safety always first in mind!

The DAYAN Mine Contracting crew gathers for a photo to commemorate the completion of Shaft 2 for Rio Tinto’s Oyu Tolgoi mine.

Coping with the Blues - Seasonal Affective Disorder (SAD)

Everyone’s mood can be affected by the weather. It dictates what we wear, when we travel and what activities we choose to do. But when the seasons change, bringing long term changes in the weather, temperature and length of day, some people are affected in other ways. The seasonal changes can affect their entire sense of well-being. If you find that you feel like a completely different person depending on the season, you may have a mental illness called seasonal affective disorder.WHAT IS IT?Seasonal affective disorder, or SAD, is a kind of depression that appears at certain times of the year. It usually begins in the fall when the days get shorter and lasts through the winter. SAD doesn’t only happen in the colder months though. A less common form of seasonal affective disorder affects people in the summer months and usually starts in the spring. It isn’t really clear what causes SAD, but its thought that winter SAD may be caused by lack of sunlight. This may not be the whole answer, as it’s also thought to run in families: 13–17% of people who develop SAD have an immediate family member with the disorder.COULD I HAVE SAD? • I feel like sleeping all the time, or I’m having trouble getting a good night’s sleep • I’m tired all the time, it makes it hard for me to carry out daily tasks • My appetite has changed, particularly more cravings for sugary and starchy foods

(continued on page 11)

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Redpath Chilena Construcciones (RCC) has been active in Chile since 1982, and the first permanent main offices were established in Santiago in 2007. Some of Redpath’s most notable projects in recent years include the ramp development at Kinross’ Fruta del Norte mine in Ecuador, the ramp and tunnel development for Orosur Mining’s Arenal Deeps, the first underground mining project in Uruguay and the Aguas del Rio Blanco tunnel and ramp development project at Codelco’s Andina Division. Redpath also played a part in several projects in Argentina, including Troy Resources’ Casposo project and Yamana Gold’s Gualcamayo project. Raisebore work at Goldcorp’s Cerro Negro project, as well as a four month underground mining training program were also undertaken. Redpath also participated

in the world’s first bi-national mining project, Barrick’s Pascua Lama project at 4,000 m on the border of Chile and Argentina.With the mining downturn making a great impact on the industry in recent years, RCC’s focus has shifted away from mining development work, and re-aligned to the growing demand for raiseboring services. Opportunities for raisebore work in Chile has been on a steady increase in recent years, and Redpath has been there to consistently meet the need for high quality work, on time and on budget.Chile has been blessed with the world’s largest copper resources and is the world’s largest producer of this red metal with Peru and Australia battling for second place. It has been said that current reserves would take over 100

years to extract, given today’s extraction rates.As open pit mining reserves deplete or maximum depths are reached, mines have gone underground using large-scale block caving methods to approach previous surface extraction volumes. Redpath’s block cave machines have filled this niche

well, and demand for up reaming service is on the rise. Unlike open stoping, sub-level stoping, or cut and fill designs, block caving relies on

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Innovation is a central theme at Redpath, to which raiseboring is no exception. Valuable feedback from field operations has led to new designs, and improvements in safety and performance.

Gualcamayo Project, Argentina

Contributor: Marcel Leclair – Manager, Raisebore South AmericaProject name: An overview of various Raisebore projects in South America.Project location: Mining development projects in Chile, Argentina, Ecuador and Uruguay. Raisebore work has been concentrated mainly in Chile and Argentina with future prospects in Peru, Colombia and Ecuador.

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the natural rock mass fragmentation to break up the ore. Development of block caving design takes longer than traditional mine designs as undercut, production, ventilation and haulage levels must first be developed prior to initiating the “cave” and extraction of the ore. Ventilation raises, ore passes between levels and drawbell raises are excavated vertically between these levels. Undercut levels are the first to be blasted to initiate the “cave”; as such, there is no access to the upper level of

the drawbell raises. In the past, these drawbells were blasted using what is commonly referred to in Chile as VCR (Vertical Crater Retreat) or drop raising. The current and more efficient method is done using vertical mechanized excavation via raiseboring or blindhole (up ream). Blindhole drilling uses a raisebore machine to drill a pilot hole vertically upwards above the machine, then attach a reaming head to open up the pilot hole from 0.7 m to 2 m diameter.

Redpath has been involved in blindhole drilling since 1998, initially by converting a Redbore 40 for a project in Manitoba, Canada. By 2008, Redpath had designed and built its first blindhole drilling machine, the Redbore 50UR-025. This machine was unique in that it could do both conventional raiseboring and blindhole drilling, negating the requirement for two separate machines to complete the job, thus benefitting the client.In 2008, RCC opened its Raisebore division in South America with an original fleet of just two machines. The new Redbore 50UR was sent to Chile in an effort to meet the needs of both conventional raiseboring and blindhole drilling at Codelco’s El Teniente mine for a five raise test program with original crew members: Supervisor Mario Araya; Electrician Rodolfo Quiroz; Drilling Analyst Juan Carlos Silva; Operators Luis General and Exequiel Olivares. Work continued throughout 2009 and in 2010, with the fleet growing to include two new Redbore 50MDUR units.The Redbore 50MDUR was developed using the lessons learned from the 50UR design as guidance for improved features. Experiences from the early blindhole drilling days led to the 50MDUR incorporating a pass-through chuck design which allows the machine to drill both blindhole and conventional reaming with minimal conversion time between the two.Down reaming is a raisebore method beginning with a pilot hole, then

The Redbore 60UR doing 2 m diameter work at Codelco’s Andina mine.

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opening up the raise from 0.7 m to 1.5 m diameter using a reamer. This method is used when there is no access to the bottom of the raise. In 2014, Redpath designed and built a down ream table for the Redbore 50UR, which then successfully excavated Chile’s first down ream raise at Codelco’s El Salvador mine.Innovation is a central theme at Redpath, to which raiseboring is no exception. Valuable feedback from field operations has led to new designs and improvements in safety and performance. Some of these improvements have included a low-profile muck chute/deflector for the 50MDUR, a U-shaped telehandler manbasket for installing the MUBO (Make Up Break Out) which is a large tool used to torque up the joint between the stabilizer and stem when installing a reamer, as well as a cutter workstation/overhaul table.Working for clients in Chile has unique bureaucratic and administrative challenges. To tackle these, RCC’s Raisebore division achieved ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certification

The Pascua Lama Project lies on the border of Argentina and Chile.

through Bureau Veritas in 2015. We successfully achieved recertification in the updated ISO 9001: 2015, ISO 14001: 2015 and OHSAS 18001:2007 in January 2018. Our team also worked closely with Bryan Maille, who facilitates Redpath’s Raisebore School, to achieve national recognition and accreditation through University Católica del Norte – CEDUC in 2016.

Redpath’s reputation and recognition for providing the highest quality and safety in raisebore services in the market continues to flourish. Since 2008, we have provided services in all of Codelco’s underground mines – El Teniente, Andina, El Salvador and now in Chuquicamata, Yamana Gold’s La Florida and Goldcorp’s Cerro Negro in Argentina. Our client base has also grown into the Tierra Amarilla area of Chile, and includes important clients such as PuCobre, Lundin Mining’s Candelaria, Alcaparrosa, Ojos del Salado, Glencore’s Alto de Punitaqui, and Minera Las Cenizas’ Cabildo mine and Tal Tal in northern Chile.Our fleet has grown to thirteen machines, ten raisebore shop service staff and over 139 field staff and continues to grow. With an eye to the future, there is no telling what potential growth may be achieved in South America. Providing a level of service that exceeds normally accepted standards in the mining industry is a mandate that Redpath upholds globally, and South America is a prime example.

Nicknamed ‘The Red Army’, Redpath’s contingent is easily identifiable by bright red coveralls. The crew is photographed here with equipment from the Gualcamayo Project in Argentina, circa 2014.

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(continued from page 7) • I’m gaining weight • I feel sad, guilty and down on myself • I feel hopeless • I’m irritable • I’m avoiding people or activities I used to enjoy • I feel tense and stressed • I’ve lost interest in sex and other physical contactIf some of these feelings seem to happen each year, have a real impact on your life, and improve during certain seasons, talk to your doctor. It is very important not to diagnose yourself without speaking to your doctor because there may be other causes for these symptoms. And even if it does turn out to be depression, it may not be the SAD form of depression.WHO DOES IT AFFECT?2 to 3% of Canadians will experience SAD in their lifetime, with another 15% experiencing a milder form of SAD that leaves them only slightly depressed, but still able to live their life without major disruptions. People with seasonal affective disorder make up about 10% of all depression cases. There are some

groups of people who are at higher risk of seasonal affective disorder: • Adults are at higher risk of SAD than children and teenagers. After the age of 50, the risk of SAD starts to decline. Researchers aren’t yet sure why.

• Women may be more likely to experience SAD. Some research found that women may be up to nine times more likely to be diagnosed than men. • People in more northern countries or cities are more likely to experience SAD than those who live close to the equator. The amount of daylight you receive changes as you move north, and that change is thought to be part of SAD.

Have you ever noticed how different you feel when the sun is shining on your face? How about when it’s raining or dreary because of a long winter? How do you feel then?

Why Mental Health MattersMining is a physically demanding profession that is hard work and challenging. What is often overlooked among the legitimate concerns about physical risks is that mining is also one of the most mentally taxing professions. When left unsupported, mental health concerns can become a huge problem for both the employee and the company from an ethical, regulatory and economic standpoint.Mental Health in Mining One major contributing factor is the way mining work is organized that may potentially stretch employee’s personal resilience and coping skills: • Mines are usually in geographically remote areas, so workers often operate on a fly-in, fly-out basis. • Separation and reintegration with family and friends or missing out on key family events. • Strain to maintain regular and meaningful communication with family and friends. • Fatigue and stress related to long working hours and long work swings. Evidence shows that long and irregular shift work can cause a variety of health problems for mining workers, including depression, anxiety and fatigue.

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• Low control over work and life while they are at camp and/or safety disputes due to political and social climates • The tendency not to seek help – due to workplace culture or stigma regarding mental health difficulties.How poor mental health among employees affects business The company is not solely responsible for their worker’s health. If an employee is experiencing feelings of depression or anxiety, these feelings may not be directly influenced by their job. However, workers, in particular miners, spend a large proportion of their time working so the work environment is definitely a major influence on a worker’s life. The detrimental effects of poor mental health impact on a company in a number of significant is tangible through costs associated with poor mental health include: 1. Absenteeism - workers missing days of work, 2. Presenteeism – reduced productivity at work, 3. Compensation claims – due to leave of absence related to mental health challenges.

What the statistics say about mental health in the workplace When businesses adopt policies and programs to address mental health including presenteeism and psychological health and safety, they incur between 15% to 33% fewer costs related to mental health issues.

When health and wellbeing are actively promoted, organizations are: • 2.5x more likely to be a best performer; • Seen as 4x less likely to lose talent within the year; • Likely to have employees which are 8x more engaged.Check the Facts • 1.3 million Canadian workers suffer from mental health conditions related to anxiety and depression, with 60% still at work with reduced hours of capacity while others are no longer able to work at all. • About 1 in 4 adults in the US and Canada has symptoms of mental health disorder, a substance abuse disorder, or both. Over 75% of these people are employed. • Between 10-40% of people with the costliest chronic conditions (diabetes/hypertension/pain/heart disease) also have depression.ROI from investing in mental health There is a clear financial incentive for an employer to invest in improving the workplace mental health of their company. Investing in mental health has a cost but brings a variety of benefits that will bring down costs in the medium to long term: • Shorter sick leave periods • Fewer days missed by workers because of substance abuse issues • Increased productivity - increased number of hours worked, improved resilience, increase in goal attainment • Reduction in compensation claims • Reduction in turnover • Lower management costs • Lower insurance premium costsWhat can a company do to create a mentally healthy environment? There are several things a mining company can do to improve the mental health of their workforce. It needs to be business priority!

Focus on Engagement! Appreciate your employees - Let your employees know that you value them! Not only does positive recognition boost employee happiness and engagement, but it is also linked to higher productivity levels. Employees who received consistent recognition were 50% more productive than employees who did not.

Promote exercise. Encourage your employees to get moving. Engage in team building activities - Rapport among employees is extremely important! Take some time this season to re-engage your employees by reconnecting them with one another. Help your employees grow. Engage your employees by providing professional development and growth opportunities. A lack of this offering is among the most common reasons for leaving a company. Know the legal limits. Is there a duty to accommodate? – Please speak to your local Human Resources team for detailed guidance on illness/injury in the workplace.Benefit coverage. Contact your local Human Resources team regarding what the company benefits offer related to coverage of counseling or other support through the company benefit plans.Any of our workplace initiatives are underpinned by a focus on leadership, training resources for supervisors and employees, prevention controls and a strong capability to understand and learn from negative experiences in our workplaces while also supporting the recovery of affected individuals and teams.

Redpath Australia supporting the Beyond Blue campaign in 2013.

WE WANT TO HEAR FROM YOU! Over the coming months we will be looking at strategies for how to provide an improved environment for mental health to be considered in our workplaces. If you have suggestions on how we as a company can do better and be better regarding addressing mental health in the workplace, contact your local Human Resources team with your suggestions.

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Making the GradeCongratulations to Ntakadzeni Khuba (Qualified Artisan at Northam’s Zondereinde Mine) for having passed his trade test as a Diesel Mechanic. In addition to receiving the overall best Phase 1 Diesel Mechanic Award in April 2016, Mr. Khuba also completed his diesel mechanic training before the scheduled time due to his exceptional performance.

Redpath Australia: Safety and Training Down UnderAuthor: Graeme Christie, HSEQ Manager, Australia

2017 has come to a close, and what a year it was for Redpath Australia! Business doubled in size in 2017 with the increased scope of work at the Olympic Dam Project, in addition to the new MICO project in Mt Isa Queensland.Overall, Redpath had a solid Safety performance, experiencing only a slightly elevated TMIR last year; the majority of injuries being of a low severity in nature.Some of the outstanding achievements in safety performance in 2017 were: • Cannington ROM Project achieving five years TMI free; • Raisebore division achieving two Years TMI free; • Redpath Australia achieving a milestone of 1000 days Lost Time Injury Free and;

• Winning the Queensland Mining Industry Innovation Awards with the Safe Stop Anti Door Jam Unit.These achievements are testament to the good proactive work done within the business on the safety front, and the commitment of our people across all projects. Innovation has been an intense focal point for Redpath in recent years, and by engaging our workforce to improve safety at the working face many excellent ideas were implemented across the business in 2017. Review your work practices and engage people to develop innovative ideas that can help mitigate those potentially at-risk activities and behaviours involved in completing tasks. Innovation doesn’t always have to be a big ticket item; small innovations such as a new tool or piece of kit can have a significant impact on the way people carry out their work. A simple innovation can lead to reduced harmful exposures and an improvement in safety performance.Focus on remaining proactive, not reactive - and innovate!Training2017 bore witness to a technical leap forward with the introduction of the E-learning Online Induction and Training Program. Online induction

modules went live in July 2017 and have paved the way for a new era in training within Redpath Australia.Stage two of the e-learning program was successfully rolled out in October at Redpath’s Brisbane Plant Yard and provided employees the ability to

complete all theory-based training via an online portal. This process allows employees to complete the required training on their own time and at their own pace, enhancing the ability to retain the knowledge and information.The E-learning Online Induction and Training Program is currently in its infancy, but will grow rapidly as new modules continue to be developed through 2018. This move will allow better efficiency, more effective training and the ability to foster a paperless environment.Shotcrete Simulator Training New simulator training was introduced over the past year using the EDVIRT Simulated Shotcrete Training Program. The program is designed to enhance operator skill levels and improve the overall quality of sprayed shotcrete. The training has been rolled out across three projects so far, and will continue to expand into 2018.

Pathways to ExcellenceRedpath’s leadership development program, Pathways to Excellence I & II,

were offered in Brisbane in November, with 26 members of management participating over four days. The training was well received with excellent feedback from the group. Planning is currently underway for a second session in 2018. Many thanks

Ntakadzeni Khuba, receives a token of congratulations from Redpath Mining Africa’s Northam Zondereinde Mine Manager, Hennie van Vuuren.

TO EXCELLENCE

Fergus Kerr (far left) and Derek Budge (far right) with the Pathways group during the Australian visit.

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redpathmining.com

with force the pin locks and prevents the plunger from retracting which does not allow the door to close. The plunger will only retract when gentle pressure is applied. This engineering control significantly reduces the risk of crush injuries to workers hands and fingers.This innovation was so successful, that it went on to win the Innovation Award at the Queensland Mining Industry Health and Safety Conference on the Gold Coast in August. Kirby was the driving force behind this innovation and with the support of his team, they made it a reality. We thank Kirby for his contribution to improving Health and Safety in the workplace!

Corporate AwardsThe Brisbane office recently celebrated the end of another busy year with

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to Derek Budge, Director HSE and Fergus Kerr for making the long journey from Canada, and teaching such an excellent course. Be diligent in maintaining an increased safety focus moving forward in 2018. Remember - our people are our most valuable asset!Safety Innovation - Platinum AwardEach year employees are encouraged to submit their Safety Innovation Ideas for consideration. Innovations that are determined successful receive recognition via a Silver Award. At the end of each year, these innovations are reviewed and the best Innovation will receive the “Platinum Safety Award’.

In 2017, the Platinum Safety Award was presented to Kirby Marr for the Safe Stop-Anti Door Jam System Innovation. The Safe Stop Anti Door Jam System is a simple device which is mounted on the inside of the door or door frame of equipment to prevent the door from slamming shut. When the device is hit

a Christmas party for staff and their partners. As part of the celebration there were a number of team and individual awards presented: • Project of the Year - Cannington ROM • Corporate Department of the Year - Human Resources Department • STAR Award - Jessica Sturlese • Newcomer of the Year Award - Rhiannon Lisle • Service to Projects Award - Peter Cavanough

Congratulations to all nominees, and to everyone on their outstanding contribution!

Cannington ROM; Five Years Restricted Work Injury-Free

Human Resources Department - winners of the Corporate Department of the Year for 2017 for Redpath Australia!

The Safe Stop Anti-Door Jam System.

(L-R): Peter Cavanough winner of the Service to Projects Award; Rhiannon Lisle, Newcomer of the Year Award and Jessica Sturlese, STAR award.

(R) Gavin Ramage, Managing Director, with Mitch Gowland, Cannington Project Manager for winning the Project of the Year Award.

ROM Crews A and D (L-R); Mitch Gowland, Ben Taylor, Alan Fuss, Jordan Pons, Damien Graveson, Mick White, Allan Gray, Peter Pashen, Luke Lawrence, Aaron Gibbs, Dave Watson, Bart Lopez, Chris Turner, Ben Streich, Mark Weaver.

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redpathmining.com 2018FEBRUARY

Contributor: Mitch Gowland, Project Manager for Cannington projectThe Cannington ROM Team continues to raise the bar for the industry in general courtesy of their enviable safety performance with no restricted work injuries sustained since project commencement in 2012. On November 22, 2017, the ROM Team achieved the significant milestone of five years recordable injury-free, in an inherently risk-encompassing environment with a combination of semi-fixed material processing plant and heavy mobile plant. A strong focus on interactive management through positive communication has been one underpinning element of the project’s success. A major transition already underway at Cannington will challenge this principle, as the operation moves towards relying solely on decline trucking for ROM ore delivery. A major infrastructure upgrade will see South32 commission a new underground crusher in early 2018 after the current underground crushing plant was recently mothballed, leaving the hoist idle for up to six months.An increase in underground haul truck traffic on the ROM, along with the expanded stockpile footprint to accommodate the increased volume of material to be crushed by Redpath, has been carefully managed through a revised ROM traffic management plan and stockpile layout to ensure separation of underground and ROM fleet while a second mobile crusher is in use. Communication will be key in managing the two separate crushing work flows both feeding the mill simultaneously to

ensure interactions are minimised, and managed where there is the potential for an exchange of energy.The safety and operational excellence shown by the Cannington ROM team to date earned the inaugural “Redpath Australia Project of the Year” award for 2017, highlighting the value of the project in the greater Redpath Australia business.With our Cannington workforce now exceeding 120 personnel, the challenge moving forward will be to ensure the strategies that have kept us safe and productive as a much smaller team are able to be scaled up to fit the expanded workforce. Redpath Cannington has always been a collaborative site where initiative is fostered and accomplishments are celebrated. The loyal personnel we are fortunate to have as part of the Redpath Cannington team have amassed a considerable amount of site specific operational experience which is often key in guiding decisions. The challenge is to now ensure we disseminate these attitudes and behaviours to new team members.Challenge is an important part of life, and with it comes opportunity. Redpath have comfortably delivered on ROM targets at Cannington for over five years and despite this recent variation pushing the operation closer to capacity, the same principles that have kept the ROM Team safe for close to 2,000 days will continue to be applied. An intrinsic understanding of the fatal risks on the ROM and a proactive approach to safety will see Redpath Cannington once again deliver targets safety.

Developing National Talent National Hoist Operator Azjargal Tsend (Azaa) recently took on the challenge of operating the hoist at Oyu Tolgoi Mine in Mongolia during a heavy lift, offering an opportunity for learning to her operator trainee, Odbaatar Yondon (OD).

The operation went exceptionally smoothly, and was a valuable learning experience for OD, as he had never performed a heavy lift with the hoist previously.Azaa was honoured with a token to celebrate her successful shift, and her exemplary leadership skills. Her positive influence is admirable and OD is under excellent tutelage as her trainee. This heavy lift was a true Khamtdaa day! (day of togetherness).

(L-R) National Hoist Operator – Azjargal Tsend (Azaa); DAYAN Project Manager (UDS/MSS) Andy McParland; National Hoist Trainee Operator – Odbaatar Yondon (OD).

National Hoist Operator – Azjargal Tsend (Azaa) poses for a photo while at the helm of the hoist operating station.

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Congratulations to the team at Mindola Deeps Project for achieving 500 LTI-Free Shifts!

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THE REDPATH GROUP’S GLOBAL NEWSLETTERredpathmining.com

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

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Global manpower count as of January 31, 2018

6,270

Safety - First, Last and Always.

[email protected]

@TheRedpathGroup

The Redpath Group

facebook.com/The Redpath Group

“We do not over commit.”With the current turn around in the mining sector, this particular Redpath Guideline for Success statement is quickly gaining added importance. We have weathered the industry down turn in significantly better shape than most other companies in our business. This was largely due to the long term partnerships we have with so many companies – quite a few we’ve worked with for decades.We now see many new and exciting projects coming online that our people would like to be involved in. That enthusiasm must be tempered with

ensuring all of our long term partners continue to receive the level of service they’ve come to expect from Redpath. It is exceedingly difficult to say, to a client, that we’re not in a position to help them - - particularly when they say to us, “The work is yours…just come and get it done.”The fact that this is a good problem to have, doesn’t make it any easier. That is a prime example of why we have established Philosophy and Guidelines. The statements aren’t just platitudes on a plaque. We believe and follow them. They have served Redpath well for over five decades and will continue to do so.

GUEST SPOTLIGHT“We now see many new and exciting projects coming online that our people would like to be involved in.” Mike Kelly, President, Redpath Raiseboring Limited Senior Vice President, Redpath Canada Limited

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Millions of Hours Worked by Region January 1 to December 31, 2017

Africa Asia Australia Europe North America

South America

14.5 MILLION

total hours worked

Africa

4.5 5.5 1.2 0.9 2.1

Asia

0.3

Australia Europe NorthAmerica

SouthAmerica