The International Resource Journal: AMEC MINPROC AMEC MINPROC ================================================================================ admin on 25 March, 2010 12:51:00 When AMEC plc., the UK-based natural resources consultancy, engineering and project management services giant, acquired Minproc, of Australia, it was truly a perfect match. Established in Australia in 1978 to provide engineering services to the gold mining industry, Minproc brought over 30 years of experience to the table. “Over that 30 year period (Minproc) has expanded its horizons to develop gold and other mineral projects around the world, we’ve worked in 35 countries,” Colin Kubank, Managing Director in Africa of AMEC Minproc says. “After we kicked off in gold we expanded our expertise to cover copper and uranium and other base metals and platinum group metals around the world, and more recently in Africa. The company became part of the GRD group in 2000 which was an Australian-listed company. GRD was purchased by AMEC last year in November and the Minproc part of the business was acquired, then we formed part of the AMEC group as AMEC Minproc.” With AMEC’s global reach and broad range of services covered throughout the mining industry, and Minproc’s wealth of experience and expertise in mineral processing, this new company is certainly a force to be reckoned with. “A lot of our competitors were able to provide mineral processing expertise in a similar vein, but because we’re now part of AMEC we have a broader range of services that we can offer, including geology and resource definition, mining engineering, mineral processing technology selection and design, tailings disposal expertise, infrastructure development and environmental studies, plus robust study and project management skills backed with proven project controls systems” Kubank explains. “Generally clients might have come to us, plus two or three or four sub-consulters to do aspects of a mine development. Now they can come to Minproc as part of AMEC and get the whole suite of services from one company.” IRJ spoke with Kubank about Minproc’s ideal position and assets within AMEC, the company’s continued focus on iron ore in Australia and Africa, continuing on in uranium, copper and gold, and its focus on projects in Namibia. Fitting into AMEC Kubank explains that there are two main divisions which make up the wider AMEC group. “The first division is Natural Resources; this covers things like oil and gas, mining and metals, power and process including power generation and transmission, and things like cement manufacturing, pulp and paper and so forth,” he says. “The other division is Earth and Environmental; which covers environmental consulting services. AMEC Minproc falls into Natural Resources in the mining and metals division, and the company is a little odd in structure in that most of this division is centred in North and South America.” Consequently, one of the reasons AMEC acquired Minproc was to provide geographical coverage to other parts of the world. Prior to acquisition, Minproc had already proved strong in Australia, South-East Asia and Africa, and offered new exposure in mining and metals when AMEC appeared. “Also the technical services which Minproc provides in terms of mineral processing expertise dovetails quite nicely into what AMEC has in the America’s in its mining and metals division,” Kubank adds. “It’s been a good fit from both a geographical and technical services perspective.” Today, AMEC Minproc provides an all-encompassing suite of services in project management and study management capabilities for new mining projects. Kubank explains that the company has a strong process engineering and technical database background stemming from its 30 years in industry, much of which is centred on the design and development of mineral processing plants or projects covering gold, uranium, nickel, cobalt, copper, platinum, iron ore and mineral sands. “We provide a one-stop service for mineral processing from the initial technology selection up through feasibility study work and into project execution, generally through an EPCM approach,” he says. “Project management services, construction management capability, procurement services, technical capability; all those things related to successfully delivering a client’s mineral processing project. On top of that because AMEC is very strong in mining and geological capability, we’re now able to provide services across the full mining value chain.” The possibilities are endless now, as the existing Minproc mineral processing services has been bolstered by mining aspects, geology, environmental studies and more making up, “the full gamut of what is required to get a client’s mining project up and running,” as Kubank explains. AMEC Minproc worldwide today Recent project successes exemplify the perfect fit of AMEC Minproc today, beginning with the large amount of iron ore work in Australia that the company is currently involved in. “Here at this office in Johannesburg we’ve just recently completed the Tenke Fungurume copper/cobalt project for Freeport McMoRan in the Congo which is a US$1.8 billion mining project,” Kubank says. “Our portion of the scope was about one billion dollars. That project was successfully delivered last year and is now running at nameplate capacity to produce copper and cobalt.” AMEC Minproc has also recently completed a platinum project in South Africa for an Australian-listed junior miner Platinum Australia. “That was a platinum concentrator that we finished on the eastern limb of the Bushveld Complex in South Africa,” Kubank explains. “We’ve also done some uranium work in Namibia, and more recently we’re working on the definitive feasibility study for the Rossing South uranium project for Extract Resources (of Perth, Western Australia) in Namibia.” Kubank explains that AMEC’s global reach and capabilities enable the company to offer all of the services that a mining project may require and quickly work with a client to look at the initial resource and understand what the requirements are for developing that project. “Basically, it’s early-entry into a client’s project, looking at optimising that project early on, providing expertise to develop a clients mining project in the most effective manner,” he explains. “A lot of these mining projects are in difficult to get to locations. One of our strengths is to be able to work out a logistics plan early on. If we’re trying to get heavy equipment into a remote site, then we have a lot of experience and expertise in doing that, be it by road or air or whatever needs to be done to access the site, open it up and get the development running smoothly.” AMEC Minproc: towards further success Kubank says that AMEC Minproc plans to grow. In light of the global financial crisis and the hit funding for mining projects took a couple of years ago, the company has shrunk to suit the drop in demand and done so successfully. Today, AMEC Minproc is back on the growth track with its reputation for excellence and potential for future company development intact. “Just in the last six months we’ve seen a significant improvement in the number of enquiries coming from clients looking to develop mining projects. Money is now becoming available and commodity prices are generally on the up, particularly in things like gold, uranium and copper,” Kubank says. “We’re seeing a lot of interest in those areas. We’re looking to grow our business again in those commodities, and coal and iron ore which are looking to improve (in the markets). We’re spending a lot of our focus on iron ore projects in Africa and in particular coal in South Africa.” AMEC Minproc’s proven success across a diverse range of commodities, its worldwide experience, capability, and successfully completed projects in current focus regions such as Namibia, provide an enviable footing for the company. The support structure, experience and commercial ability are all in place. Having the right people in the right places has created great potential. www.minproc.com