Going beyond the surface,

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1 NOVEMBER 2014 Going beyond the surface, award-winning service solutions Increasing recoveries with flotation upgrades Delivering knowledge and skills around the globe

2 2 HIGHLIGHTS November 2014 HIGHLIGHTS CONTENTS Welcome to Highlights Minerals 3 What's new at FLSmidth 4 Who's who in Minerals at FLSmidth 5 Venturing into iron ore pelletization 16 Delivering knowledge and skills around the globe 18 FEATURES Celebrating women in customer services across Australia 21 NEW ORDERS INCREASING EFFICIENCY Rekindling old partnerships New portal scraper reclaimer in Mexico Increasing recoveries with flotation upgrades The Qingdao sourcing connection Improving production throughput with innovative screen media 8 Harvesting potash from the Dead Sea 28 Advancing reliability and maintenance 30 INNOVATION Higher pumping efficiencies for medium-duty applications 34 Going beyond the surface, award-winning service solutions 10 Increasing the speed and efficiency of customer service 24 Expanding our service footprint to better serve customers 26 New service center in Zacatecas, Mexico 27 SERVICE IN ACTION Excellence recognized in Brazil 32 gives you more details and additional features FRONT COVER: FLSMIDTH'S CHILEAN SERVICE TEAM RECEIVING AN AWARD FROM THE ENAMI-PAIPOTE MINE FOR A COMPREHENSIVE REBUILD OF A ROTARY DRYER Editor in Chief Andrew Cuthbert Managing Editor Amelia Hawkes Associate Editor Matt Payne Layout Amelia Hawkes 2014 FLSmidth A/S. All rights reserved. Reproduction permitted quoting "FLSmidth Highlights Minerals" as source. All product names used herein are trademarks of their respective owners. Editorial office: FLSmidth USA Inc S. FLSmidth Dr. Midvale, UT USA Tel: minerals.highlights@flsmidth.com TO DOWNLOAD A DIGITAL PDF OF HIGHLIGHTS MINERALS MAGAZINE, PLEASE VISIT

3 HIGHLIGHTS November WELCOME TO HIGHLIGHTS MINERALS Charting the path toward a brighter future Although the cyclical downturn has taken its toll on expansion opportunities, revenues, growth and headcounts, FLSmidth is not only weathering this storm of uncertainty, but laying the foundation for a brighter future for our customers, our employees and our investors. We have toughened up to tackle and overcome these challenges in a positive manner to create a company that is even stronger and more prepared for the fruitful times ahead. We recently announced the restructuring of our divisions, including the creation of one combined Minerals division. Read more on the advantages of this new divisional structure in What s new at FLSmidth on page 4. Behind the scenes, we have taken a look at the company from the bottom up, evaluating our strengths, and learning from our 132 years of experience and expertise whilst building up our diligent team members. As ore grades are deteriorating, process needs are adjusting, and environmental standards are being raised, we ve teamed up with our customers to better understand requirements and symbiotically enjoy greater value from our relationships. When our customers succeed, we succeed. The going has been tough, but together we are optimizing equipment, flowsheets and processes; maximizing plant performance; and creating opportunities for greater profitability and sustainable growth. Loyal customers see the progress we are making and return often to FLSmidth for engineering, products, service and support. Building on a relationship that began more than 50 years ago, we continue to supply equipment to the Roussa mine in Mauritania (page 6). FLSmidth personnel not only solve problems, their solutions win awards. On page 32, see how resultsdriven FLSmidth employees in Brazil were chosen out of 200 suppliers to be awarded the Trofeu Excelencia (Excellence Trophy). Also read about how our service team in Chile won an award for not only quickly repairing a worn dryer shell, but preparing the customer's equipment to continue efficient operations for the next years (page 10). Our 15,000-member strong team comes from all nationalities, cultures and backgrounds. Read on page 21 how FLSmidth women are making a difference to customers in Australia. Our people are involved in operations all over the globe, like a project in one of the world's saltiest bodies of water. Find out (on page 28) how the Arab Potash Company is harvesting the Dead Sea with specialized floating equipment from FLSmidth. Plants have turned to FLSmidth s service capabilities to assist with repair and maintenance projects, keeping equipment in tip-top shape and optimizing wear-life and overall durability. On page 13, learn how an Australian copper mine successfully improved metallurgical performance in its flotation circuit and increased its copper recovery. On page 8, learn how changing out and testing new hybrid screen media technologies are increasing safety and production at a silica mine in South Africa. We trust you will enjoy this edition of Highlights Minerals. As always, feel free to contact us to see how we can help you boost your plant performance and design solutions to suit your specific needs.

4 4 HIGHLIGHTS November 2014 CONTACT JESPER LARSEN What's new at FLSmidth In continuing to build and improve our offerings and services to customers, changes are coming to FLSmidth's organizational structure. As of January 1, 2015, FLSmidth will be organized in two project divisions a product division and a service division. Beginning in January 2015, the Material Handling and Mineral Processing divisions will be merged into a single Minerals division. The Cement and Customer Services divisions will continue to be maintained as separate divisions. Additionaly, a new Product Companies division will be created to foster globalization and growth of FLSmidth's unique product brands. to bring different technologies together, FLSmidth a single source provider, streamlining project requirements, overcoming compatibility delays, reducing startup and operating costs, and increasing the efficiencies of each project and plant. FLSmidth is changing for the better. Working together, our optimized equipment, sustainable technologies and expert learnings provide customers with new ways to responsibly develop the world s resources. FLSmidth has already built a robust reputation around providing safe and reliable solutions for its valued customers. With a broader range of solutions under one combined division, the Minerals division will become an even stronger partner for customers and will continue to serve as a One Source solutions provider. The resulting combined and simplified structure makes it even easier to do business with FLSmidth. It allows our people to better serve industry needs while providing customers with increased access to FLSmidth's full range of mineral processing and material handling offerings. When working with FLSmidth, customers benefit through knowing their equipment is compatible within the process flowsheet and will therefore operate more efficiently. In place of working with multiple vendors Minerals This division will focus on engineering, marketing and selling material handling and mineral processing solutions. These are available as single equipment, bundled equipment, process islands, whole systems of equipment and complete plants. Product Companies This division allows product companies such as ABON, Buffalo, Pfister, Ventomatic, Krebs, MAAG Gear, Airtech, Möller and Automation to grow and provide specialized products and services to customers globally. Customer Services This dedicated services division focuses on helping our customers maintain, service, repair, upgrade and modernize their equipment to keep their plants running at optimum capacities. Cement This division enables a sustained focus on complete plants and product lines, and especially the further development of engineering, procurement and construction (EPC) offerings. FEATURES

5 HIGHLIGHTS November Who's who in Minerals at FLSmidth Manfred Schaffer President Minerals Division Manfred Schaffer, age 56 and an Austrian citizen, became the President of the new Minerals division and a member of Group Executive Management on September 1, He holds a mechanical engineering degree from Kapfenberg in Austria and comes with extensive experience in the global mining industry. From 2006 to 2013, he was President of Sandvik Surface Mining and Systems. From 1998 to 2006, he was the head of Sandvik Materials Handling and Voest-Alpine Materials Handling in Austria. Mr. Schaffer is looking forward to helping to develop FLSmidth's Minerals division as a reliable partner for customers. He sees the challenges of today's market, but remains confident that this will be an opportunity for the Minerals division to improve and become stronger than ever. Brian Day President Customer Services Division Brian Day, age 58 and a U.S. citizen, will be President of the Customer Services division and member of Group Executive Management beginning on January 1, He holds a Bachelor of Science degree from Syracuse University in the U.S. along with leadership and business management education from Stanford University, USA. From 2007 to 2014, he has been successfully heading FLSmidth's customer service activities in mining, first as Vice President, and since 2012, as Senior Vice President of Global Customer Services, Mineral Processing. From 2002 to 2007, he was Vice President, Global aftermarket, GL&V - Dorr-Oliver Eimco, and from 1980 to 2002, he worked in various management positions within Baker Hughes Inc. and EIMCO Process Equipment Company. With Mr. Day's extensive experience leading customer service groups, this new position will allow him to further build FLSmidth's customer support offerings and efficiencies across the globe. Bjarne Moltke Hansen President Product Companies Division Bjarne Molke Hansen, age 53 and a Danish citizen, will be President of the Product Companies division and a member of Group Executive Management. He holds a BSc in engineering. He has been the Group Executive Vice President, Customer Services division since March 2002, and has been with FLSmidth since He was formerly CEO of Aalborg Portland Holding A/S ( ), and as CEO of Cembrit Holding A/S ( ). He has also held various managerial posts in Unicon A/S ( ). Mr. Hansen is eager to get started building this new Product Companies division. This renewed focus on these excellent product groups enables FLSmidth to realize a significant potential from globalizing and growing the company's unique product brands. FEATURES

6 6 HIGHLIGHTS November 2014 NEW ORDERS CONTACT PHILIPPE BONFILS Rekindling old partnerships STACKER INSTALLED IN 1997 In July 2014, FLSmidth was awarded a contract from Société Nationale Industrielle et Minière (SNIM) for the supply of one bucket wheel reclaimer for its iron ore mine located in Zouerate, Mauritania. FLSmidth will be responsible for the delivery of a bucket wheel reclaimer on a turnkey basis, including engineering, procurement, delivery, mechanical and electrical installation, and commissioning, as well as training services. Commissioning of the machine is scheduled for April This new bucket wheel reclaimer will replace the existing bucket wheel reclaimer that was supplied 30 years ago by the former KOCH Transporttechnik GmbH, which is now part of FLSmidth. It is to be installed at the Rouessa mine, one of SNIM's five operating mines around Zouerate. Within the framework of this capacity extension, FLSmidth is currently installing a train load out at Guelb II Mine (still in Zouerate), as well as commissioning mineral processing equipment at the same site. SNIM is the world's seventh-largest iron ore exporter, supplying around 13 million tons per year to the world market. The Mauritanian government owns 78% of the company. Prospecting and exploration started in SNIM has already embarked into a ramp-up of its production, which should increase to 40 million tons per annum in 2020 from the 13 million tons it produces annually today. The relationship between FLSmidth and Miferma, which is now SNIM, started more than 50 years ago when the KOCH brand supplied a conveying, stacking and loading system for iron ore with a belt conveying system, stacker and wagon loading system. However, the relationship between SNIM and FLSmidth had weakened over the years. But due to the outstanding work executed by FLSmidth's material handling customer service team in supporting SNIM s operations over the past several years, FLSmidth was able to secure the contract for the supply and installation of two Raptor 900 cone crushers at the same Rouessa site near the end of NEW ORDERS

7 HIGHLIGHTS November CONTACT BENJAMIN BECKER BENJAMIN.BECKER@FLSMIDTH.COM New portal scraper reclaimer in Mexico In July 2014, FLSmidth Wadgassen was awarded a contract worth approximately 2.1m Euro by OHL Industrial, a division of Obrascón Huarte Lain (OHL), for the supply of a portal scraper reclaimer for the company P.M.I. (subsidiary of Pemex). This portal scraper reclaimer will be installed at the sulphur solidification and handling plant at Coatzacoalcos, Veracruz, Mexico, which has a throughput of 360,000 tons of sulphur per year. The portal scraper reclaimer with main and auxiliary boom will travel in a longitudinal direction of the pile and reclaim the sulphur pellets, which will be stacked in a pile by the client's overhead stacking conveyor. The material will be removed from the pile by means of scraper blades and will be conveyed by the belt conveyor, which will be installed parallel to the pile base. The erection and commissioning of the portal scraper reclaimer will be carried out by OHL under FLSmidth's supervision. OHL (Obrascón Huarte Lain) is a large international construction group with more than 100 years of history. It specializes in engineering, procurement and construction (EPC) projects, mainly operating in Spain as well as South and Central America. The main criteria for winning this order was FLSmidth s ability to deliver the equipment within a short time frame (between 10.5 and 12 months from contract award to FOB) as well as FLSmidth s know-how and experience in sulphur handling equipment. This engineering procurement services (EPS) contract is the first cooperation between FLSmidth and OHL in relation to material handling equipment and could lead to other project opportunities in the future. NEW ORDERS

8 8 HIGHLIGHTS November 2014 CONTACT IAN HEWAT Improving production throughput with innovative screen media FLSmidth is in the final stages of a trial study to test a new hybrid poly wire modular panel in a screening process. The new type of modular panel is being used to solve maintenance and production issues that arose from previous types of screen media being used in the silica operation. The trial has been carried out in conjunction with Rietvlei Silica Mine, a Glencore Merafe Venture Operation, situated near the town of Rustenburg in the Northwest Province of South Africa. The vibrating screens in the trial were originally designed to use woven wire screens. The screens are 5x10 double deck units used as secondary screens in the production of silica sand. The original design used two of the woven wire screens per deck. The woven wire had to be replaced due to localized wear patterns that had created holes in multiple areas of the screen surface. The handling and installation of new woven wire screen CLOSE-UP OF POLY WIRE SCREEN media posed safety issues. The plant decided at that point to replace the woven wire with modular polyurethane panels. INNOVATION

9 HIGHLIGHTS November The change to the modular polyurethane panels resolved the safety and replacement issues, but decreased production to a maximum of 1,500 tonnes per module, per shift due to the reduction in effective "open area percentage" (Oa%) with the system being used. The mine approached FLSmidth's screen media experts looking for a way to change to a safe modular system that would increase the system's throughput. After analyzing the process and vibrating equipment, FLSmidth made recommendations concerning the setup of the feed to the equipment as well as the use of a new hybrid poly wire modular panel on the bottom deck. Rietvlei Silica Mine agreed to both recommendations and the work began. The poly wire modular panel is a standard 1x1 panel that consists of a "flat top" woven wire screen (20.0 Ap x 7,1 Vibro Optimax wire) that is encased in polyurethane around the edges to enable it to be fixed to the frame using the standard "pin and sleeve" or "bolted pin system" fixing devices. The effective Oa% of the poly wire modular panel is 48%, which is POLY WIRE MODULAR PANELS comparable to the effective Oa% of a standard woven wire screen when installed. The trial was tracked and recorded by FLSmidth's Screen Media Technical Manager, Jannie Engelbrecht, with the assistance of the mine's Jacques Labuschagne. Mr. Labuschagne commented on the improvements, saying, We struggled to put through 1,500 tonnes per shift while not sacrificing on the quality of our product with polyurethane panels. With the poly wire panels we were able to increase our production to above 2,000 tonnes per shift while accommodating more fines and were still able to produce a quality product. WE STRUGGLED TO PUT THROUGH 1,500 TONNES PER SHIFT WHILE NOT SACRIFICING ON THE QUALITY OF OUR PRODUCT WITH POLYURETHANE PANELS. WITH THE POLY WIRE PANELS WE WERE ABLE TO INCREASE OUR PRODUCTION TO ABOVE 2,000 TONNES PER SHIFT WHILE ACCOMMODATING MORE FINES AND WERE STILL ABLE TO PRODUCE A QUALITY PRODUCT. Jacques Labuschagne Rietvlei Silica Mine This equated to more than a 33% increase in production, which means an additional 10,000 tonnes per month. A final goal of life expectancy has still to be finalized; currently, the poly wire panels wear rate indicates that the life will be comparable with the previous modular polyurethane panels supplied by a competitor. The trial with the poly wire panel in a silica operation has been successful in reaching the initial goals of the study by increasing production throughputs whilst offering safe maintenance solutions. This innovative solution has resulted in a happy and satisfied customer and may open other partnership opportunities between FLSmidth and the Glencore Group in the future. INNOVATION

10 10 HIGHLIGHTS November 2014 GUILLERMO ULLOA, FLSMIDTH TECHNICAL ADVISOR AND JAVIER PEREZ MEDEL, FLSMIDTH CONTRACT ADMINISTRATOR RECEIVING AWARD FROM ENAMI-PAIPOTE FOR OPERATIONAL EXCELLENCE AND SAFETY ON KILN UPGRADE Going beyond the surface, award-winning service solutions In February 2013, FLSmidth's Customer Services group in Chile received a call from ENAMI-Paipote after they found a crack in their dryer shell during a normally scheduled maintenance shutdown. Under the direction of Eugenio Cruzat, FLSmidth Product Performance Senior Engineer and Guillermo Ulloa, FLSmidth Customer Services Technical Advisor, the FLSmidth team worked in coordination with the USA-based Kiln Services group to develop and achieve a solution to the problem. CONTACT GUILLERMO ULLOA GUILLERMO.ULLOA@FLSMIDTH.COM CONTACT EUGENIO CRUZAT EUGENIO.CRUZAT@FLSMIDTH.COM SERVICE IN ACTION

11 HIGHLIGHTS November inspections to be sure that the protective paint had remained intact and there was no new corrosion. FLSmidth was asked to quote the kiln shell, inlet and outlet end seals, the trommel, and the radial and axial rollers. All of this equipment would have to be available to the site for assembly during the next major plant shutdown, which was scheduled for June 1, WORN SECTION OF KILN In October 2013, ENAMI signed a contract for the supply of the quoted equipment with the addition of needed major spare parts, including gears, pinions and tires. Delivery was committed for May The USA-based team initiated the project by issuing a first-visit report, which called for a thickness mapping of the cracked area. The report results showed that the entire mapped area (roughly 4 meters long) had thinned out to about half of the nominal thickness. It was proposed by FLSmidth at that point to fit reinforcement to the thinned area in order to preserve the structural torque-transmission capacity throughout the kiln. Upon finding those preliminary results, the rest of the kiln was assessed at the urging of FLSmidth's experts. This more complete assessment showed that a thorough mapping of the entire kiln shells reported a similar thinning condition that covered more than 50% of the shell surface. recommendations and tools needed for the site to be able to achieve its output goals in the future. The report recommended a complete replacement of the dryer shell after concluding that the kiln's premature wear was due to corrosion from acid precipitation during kiln operations. FLSmidth proposed the application of a special protective paint over the first 10 meters of the inner shell in order to prevent future acid-induced corrosion. A liner design modification was also recommended to make it feasible to remove the liners during annual The USA team worked to re-engineer the dryer to not only meet production requirements and environmental legislations, but also to meet the high standards expected of FLSmidth equipment to perform well over its expected operational lifetime. These improved designs were given to FLSmidth's locally based Chilean Quality and Control team to oversee fabrication of the kiln within the country. >> Knowing what this could mean for the customer in later years, and wanting to prevent any future emergency shutdowns, FLSmidth's Customer Services Chilean team offered to carry out a full audit of the kiln in order to diagnose the general wear condition and operational reliability of the kiln. Julio Ortiz, FLSmidth Kiln Engineer, said, "We tried to determine the root cause for the kiln shell useful life reduction considering the average expected life span for this type of kiln is about years." After this full audit, FLSmidth's kiln experts presented a full report to ENAMI with the INTERIOR OF REBUILT KILN SERVICE IN ACTION

12 12 HIGHLIGHTS November 2014 Delivery & Implementation All of the manufacturing was done and the components were delivered on time to the site by May 2014 as promised, right on time for the scheduled plant shutdown on June 1. This project was another testament of how FLSmidth's global and local coordination is able to efficiently respond to customers' needs in a timely manner with a quality product. FLSmidth's Customer Service team was then able to get to work on the installation of the new dryer. FLSmidth's Risk Prevention team defined the work places and procedures documents in conjunction with ENAMI to achieve a no-incident/zero-accident plan. The dryer replacement schedule was then carried out to the customer's full satisfaction and was even completed two days ahead of plan. The work included the rolling system, new transmission, and the inlet and outlet end seals. The kiln began normal operations after that point with no subsequent shutdowns or issues. ENAMI-Paipote was so pleased with the experience that it presented FLSmidth's Chilean Customer Services team with an award for this project. The award was to acknowledge the technical capacity, planning and works execution achievements made by FLSmidth while keeping in line with all safety regulations. The ENAMI-Paipote project manager presented the award to Guillermo Ulloa, FLSmidth Technical Advisor and Javier Perez Medel, FLSmidth Contract Administrator both from the Chilean office. Later, in July, when Palle Hansen, FLSmidth Customer Services Director Americas, visited the ENAMI-Paipote plant and met with Benjamin Medel, ENAMI Maintenance Superintendent, he was told of the client's appreciation for the work performed by FLSmidth during each stage of the project. Mr. Medel highlighted the professional quality of the FLSmidth engineers, the good communication between the companies, the consistent provision of information for key decision making, and the excellent quality of the work accomplished during each stage of the project. All of these qualities were raised even higher by the underlying principle of everything FLSmidth undertakes that safety is above all other priorities. This project was yet another example of FLSmidth's ability to provide full and tailor-made solutions for the specific needs of our customers through a One Source approach that involves experts and specialists in offices around the world joining together to accomplish a common goal. INSTALLATION OF THE NEW DRYER INCLUDING AN FLSMIDTH MAAG GEAR SERVICE IN ACTION

13 HIGHLIGHTS November CONTACT RICHARD JENNER Increasing recoveries with flotation upgrades Recently, a large copper mine in Australia approached FLSmidth asking for a new flotation mechanism design that would improve copper recovery, reduce power consumption, improve the life of wear parts and reduce maintenance costs. FLSmidth was able to accomplish all of the requirements by converting the old Agitair flotation technology to new Dorr-Oliver flotation mechanisms. The customer is now planning to upgrade the rest of the flotation circuit to benefit from this increase in overall copper recovery across all of the flotation machines. The problem The customer's metallurgical team was investigating options to improve the metallurgical performance of their flotation circuit. At the time, the majority of the flotation duty was being performed by Agitair machines shallow (914 mm), low volume (1.7 m 3 ) cells; 304 cells in total. The existing flotation machines had been installed in 1971 and were reaching the end of their serviceable life, so the mechanical stability of each bank was unknown, but certainly not in original condition. AGITAIR FLOTATION MACHINES Batch testing results had indicated that copper losses in the flotation circuit were mostly due to flotation kinetics and mechanical constraints rather than surface chemistry, and that recovery gains might be achieved with improved circuit and flotation machine design. The motors, cabling and control hardware were operating at full capacity, so power could not be increased without costprohibitive expenditures on upgrades in addition to a scarcity of available power. >> INCREASING EFFICIENCY

14 14 HIGHLIGHTS November 2014 DORR-OLIVER 14RS MECHANISM SIDE BY SIDE WITH AGITAIR PIPSA IMPELLOR AND STABILIZER PLAN VIEW OF DORR-OLIVER CONVERSION DESIGN CONCEPT So, any solution would require the limited power draw to be maintained or reduced. A secondary objective for the customer was to reduce the cost of flotation consumable wear parts as part of ongoing initiatives to reduce operating costs. In addition to the outright purchase price of the consumables, the wear life would be critical. The frequency of having to replace the stator and rotor not only impacts the overall consumable expenditure, but the cost to remove and replace wear parts contributes heavily to that price. Possible solutions The client considered several options to overcome their present challenges in order to meet their goals. The option to build a new concentrator building did not meet internal CAPEX approval requirements nor did it complement the current life-of-mine or future expansion planning. The client considered putting entirely new flotation machines into the current concentrator building as well. While costing less than a new concentrator building, this option required too much capital expenditure for the time being. Refurbishing the existing flotation machines and their technology was considered, but this would possibly cost more than replacing the banks with new machines. The most feasible option for the current plant conditions and budget was to upgrade only the mechanisms within the tanks. This would be the lowest cost option that would be quick and simple to test. It would also be relatively easy to convert the entire circuit after the initial tests, provided that the performance targets had been met with the conversion to the new mechanism. Final solution The Dorr-Oliver flotation mechanism for forced-air flotation machines provides: High-efficiency rotor Energy-intensive zone Effective solids suspension Multiple passes of unattached particles Contact with the air bubbles Maximum air dispersion Minimum froth disturbance Dorr-Oliver flotation technology The Dorr-Oliver flotation mechanism forced-air flotation machine has been specifically designed to maximize fine particle recovery. The Dorr-Oliver streamlined, high-efficiency rotor is a very powerful pump that works together with the stator to generate and define an energy-intensive zone in the bottom of the cell. This ensures effective solids suspension and the ability to restart in even the most difficult of applications. The well-defined turbulence zone at the bottom of the cell results in unattached particles through the highest energy dissipation area of the cell where fine particles are driven into contact with the air bubbles. The stator design, in addition to providing good separation of the zones in the cell, also serves to redirect the rotor jet uniformly across the tank to allow the maximum amount of air to be dispersed into the cell without disturbing the surface. Maximizing the air dispersion capability is an important consideration for fine particle recovery. The plant trial It was decided to proceed with a staged plant trial. The trial consisted of the installation of two standard Dorr-Oliver 14RS mechanisms to conduct reliability testing. This was followed by the conversion of a full bank (16 mechanisms) to the Dorr-Oliver mechanisms. Experimental design and block surveys were done before and after the mechanisms conversions. Conditions were monitored closely and controlled carefully to detect and minimize any variables. The metallurgical performance was then tested to determine the impact of the mechanism design on a single bank and on the overall plant recovery rates. INCREASING EFFICIENCY

15 HIGHLIGHTS November Cumulative Copper Grade (%) Grade recovery before & after upgrade Cumulative Copper Recovery (%) Size-by-Recovery Comparison of "new generation" FLSmidth rotor/ stator designs. FLSmidth has invested over USD $3M in the last three years in the area of forced-air mechanical cell design improvements. The aim of the research into flotation machine design improvements was to extend the range of coarse and fine particle recovery. Approximately 30 stator and rotor designs, including our competitors' designs, were tested hydraulically in FLSmidth's Salt Lake City, USA laboratory. The best designs were further tested for metallurgical performance at bench and pilot scale. Recovery (%) Particle size (micron/cyclosizer) The result of these R&D efforts is a new generation of flotation mechanism designs with the following benefits: Increased fine and coarse particle recovery Reduced power draw Longer wear life of stators and rotors resulting in reduced maintenance time and cost Ability to upgrade any mechanical flotation machine The Results Grade and recovery The grade and recovery increased significantly in the Dorr-Oliver bank of cells. On the basis of size-by-recovery, recovery rates increased across all size fractions, particularly the coarse range. Maintenance rotor/stator life The old Agitair parts were lasting, on average, 12 months. Dorr-Oliver rotors that were installed for testing were still in use after exceeding 18 months of service life. Although this satisfied the testing criteria, FLSmidth is continuing development work with alternate engineering materials to further extend wear life to reduce maintenance costs. Power draw When the bank was started up, the air feed rates were reduced to lower mass pull in order to prevent the concentrate launders from overflowing. This in turn increased the pulp density and therefore increased motor power draw. The resultant power draw observed across the eight motors was either maintained or marginally increased. It was possible to further optimize the bank to achieve reduced power draw, but the customer was satisfied with the overall increase in recovery instead of pursuing power draw reductions at the cost of recovery. The customer was pleased with the results on the test bank of cells and now plans to implement the upgrade to Dorr-Oliver mechanisms throughout the rest of their flotation circuit. Flotation R&D Although the Dorr-Oliver mechanism design met and exceeded this customer's performance expectations, FLSmidth continues to evaluate the performance FLSmidth's in-house flotation research teams include: Seven dedicated flotation research scientists Dawson Metallurgical Laboratories Ore Characterization and Process Mineralogy Laboratory Pilot plant facility Field testing team Research alliance with Virginia Tech, USA INCREASING EFFICIENCY

16 16 HIGHLIGHTS November 2014 CONTACT VIJAYAN CHIDAMBARA NADAR Venturing into iron ore pelletization FLSmidth and Kobe Steel, Ltd., Japan have entered into a license agreement enabling FLSmidth to market, design and construct iron ore pellet plants using Kobe Steel s pelletizing process called the KOBELCO pelletizing system. Through this agreement, FLSmidth will further explore the iron ore pelletizing markets in India and secure orders for pelletizing plant projects with exclusive rights for FLSmidth India to use KOBE patents, know-how and proprietary rights to sell, design, engineer, manufacture, supply, erect, train staff, commission, start up and provide operational assistance for assigned projects. Extending the service to projects outside India will be decided on a case-by-case basis. Iron ore is one of FLSmidth s core industries. This agreement with KOBE will enable us to provide customers with a complete iron ore pellets production line comprising of material handling, crushing, screening, washing/beneficiation and pelletization, said Bjarne Moltke Hansen, FLSmidth Executive Managment. The synergy between KOBE and FLSmidth is unique with individual business capabilities that will mutually support us to provide value added services to our customers and to take on new opportunities in the iron ore industry. FEATURES

17 HIGHLIGHTS November About the KOBELCO Pelletizing System The KOBELCO Pelletizing System is a grate-kiln process where iron ore pellets undergo heat treatment in two stages. Iron ore and binding agents are ground and formed into green balls, the unfired pellets. The green balls are sent to a traveling grate where they are dried and preheated in the preheating furnace. From there, the balls are fired at a high temperature in a rotary kiln. After the pellets are hardened in a process called induration, they are cooled and stored for shipment. The grate-kiln system is energy efficient. As the pellets are heated in a thin layer in two stages, power consumption is low. In addition, because of uniform firing in the rotary kiln, the pellets are of consistent, high quality. The mixing of the pellets in the rotary kiln enables the pellets to be exposed to the same temperature. The KOBELCO Pelletizing System is also noted for its flexibility in fuel sources. It can use gas and liquid fuels (such as heavy oil), as well as coal to fire the main burner. India produced 81.2 million tons of crude steel during 2013, and steel production is anticipated to be prosperous in the future according to the World Steel Association. The Indian government s aim to increase steel production to 300 million tons by 2025 has enhanced the need for iron and other related production facilities, including pellet plants. Kobe Steel and FLSmidth will cater to this demand by jointly promoting the KOBELCO Pelletizing System. The KOBELCO Pelletizing System makes iron ore pellets that are used as a raw material for blast furnaces and direct reduction plants. Over many years, Kobe Steel has made continuous improvements to the KOBELCO Pelletizing System through the operation of its own pellet plant in Japan and its engineering business, where Kobe Steel has supplied pellet plants and services to companies worldwide. Major projects include a 4 million tonper-year plant and a 6 million ton-per-year plant for Bahrain Steel, which was formerly known as Gulf Industrial Investment Co. (E.C.). Kobe Steel also received an order for two 4.5 million tonper-year plants from Vale Oman Pelletizing Company. About Kobe Steel Kobe Steel Ltd., together with Midrex Technologies, Inc., a wholly owned subsidiary company, also supplies MIDREX Direct Reduction Plants that use iron ore pellets to make direct reduced iron (DRI). As both a steelmaker and a plant engineering company, Kobe Steel offers a unique combination of know-how covering the upstream operations of iron ore pellet and DRI production to client companies. Kobe Steel is a diversified manufacturer with its major businesses concentrated on materials and machinery. The materials business comprises iron and steel, welding, and aluminum and copper products. Machinery includes industrial machinery, engineering and construction equipment, as well as environmental solutions. Other important businesses are wholesale power supply and real estate. The company has head offices in Kobe and Tokyo, Japan. For more information, visit: KOBELCO AND MIDREX ARE REGISTERED TRADEMARKS OF KOBE STEEL, LTD FEATURES

18 18 HIGHLIGHTS November 2014 FLSMIDTH INSTITUTE CONTACT MAURICIO ARROYO Delivering knowledge & skills around the globe Delivering quality training when and where our customers need it most FLSmidth understands that the best way to improve the performance of a plant is to improve the knowledge and aptitude of the people running it. There is no better way than quality training to ensure that employees are up to date with the latest technologies and the best practices of the industry. To meet the need for better trained personnel, FLSmidth Institute for mineral processing offers customers highly technical courses and seminars for the minerals industry. The Institute works closely with FLSmidth's technology groups and subject matter experts to develop the highest quality training programs. Sharing the latest knowledge, expertise and the industry's best practices with customers directly translates into on-the-job results. Customers' investments in training their people through FLSmidth quickly pay for themselves in operational results. FLSmidth Institute currently offers on-site training courses and seminars in process, operations, mechanical maintenance, electrical maintenance, controls, and instrumentation on our various product technologies and equipment. The Institute has trained more than 8,000 people who experienced firsthand the highly specialized and professional expertise of trainers who set the industry standard for mining education. Our global presence has allowed us to successfully conduct on-site trainings and seminars in the most important mining hubs in the world in countries such as USA, Canada, Chile, Peru, Australia, South Africa and Mexico, amongst others. SEPARATION SEMINAR IN SALT LAKE CITY, UTAH IN APRIL 2014 DURING THE CRUSHING SEMINAR IN AUSTRALIA, PARTICIPANTS LEFT THE CLASSROOM FOR A VISIT TO THE SUPERCENTER SHOP FOR A MORE HANDS-ON EXPERIENCE WITH CRUSHER PARTS AND COMPONENTS. IN THE PICTURE, MARK HOLLINGWORTH, TECHNICAL SERVICES MANAGER, WITH SEMINAR PARTICIPANTS AT THE SHOP TOUR ACTIVITY FEATURES

19 HIGHLIGHTS November I wanted to say thank you, to you and all of FLSmidth, for the excellent thickener seminar last week. I feel like I learned a lot of valuable information about thickeners, as well as made some very valuable contacts, both with FLSmidth and with other companies. The presentations were very good; your presenters definitely have many years of experience and they know what they are talking about. I will be contacting FLSmidth in the coming months for some consultation work at my plant. The agenda was very well put together and everything went very smoothly. The dinner at the end was wonderful! If there are more seminars related to processing of materials (or similar) in the future, please don t hesitate to contact me. Once again, thank you to all of FLSmidth for having me." Neal Matosky Metallurgist I, Concentrate Leach Plant, Freeport- McMoRan Copper and Gold Bagdad Operations (attended the separation seminar in SLC in April 2014) Customized training solutions FLSmidth Institute's customized training programs are flexible solutions designed to address the specific challenges of customers sites. The actual processes and machinery in use are taken into account in the development and structuring of each program with topics relevant to the customers organizations. Customized on-site training is available for all of FLSmidth's mineral processing product groups and technologies, including crushing, grinding, flotation, filtration, sedimentation, process technology, testing, etc. GROUP TRAINED ON-SITE IN MILLS INSTRUMENTATION AND MILLS HYDRAULICS MAINTENANCE IN ANTAPACCAY, PERU These training programs are developed to help increase awareness and understanding of: Operational safety Process and operation parameters Mechanical and electrical maintenance practices Proper operating procedures Maintenance best practices Instrumentation and control systems When FLSmidth Institute prepares a customized training course, all key aspects of the course are tailored to the customers' individual needs. These aspects include: scope, theory, practical training, field visits, case studies, material, language and working culture, among others. THERE WAS A GOOD INTERACTION BETWEEN PRESENTERS AND PARTICIPANTS, AN EXCELLENT VENUE, AND VERY KNOWLEDGEABLE PRESENTERS SITE EXPERIENCED." THIS WAS A VERY GOOD OVERVIEW OF CRUSHERS. IT WAS INTERESTING THE WHOLE TIME." THERE WAS A GOOD SPREAD OF KNOWLEDGE FROM THE PRESENTERS, FOR THE BEGINNER TO THE VERY EXPERIENCED, AND I ENJOYED THE WORKSHOP TOUR." FEATURES

20 20 HIGHLIGHTS November 2014 Public seminars FLSmidth Institute offers more general, public training seminars closer to customers. The objective of these seminars is to enhance the knowledge and specific abilities of participants in regard to product technology and equipment. The participants from these seminars benefit by learning how to: Maintain stable operational parameters to optimize the interaction between processes Improve their knowledge of the equipment's main components and the recommended inspections before operation, during operation and during shutdowns Understand replacement procedures of the main components to maximize the life of the equipment Apply main predictive and preventive maintenance concepts of the equipment and auxiliary equipment Learn control theory in relation to operations Properly maintain the equipment's instrumentation to minimize operational failures Participants also have the opportunity to engage in panel discussions, exchange ideas, experiences and industry best practices with a remarkable network of industry professionals and FLSmidth experts. In recent years, FLSmidth Institute has conducted public seminars in Chile, the USA and Australia. FLOTATION SEMINAR IN ANTOFAGASTA, CHILE IN 2013 The seminar gave me a new outlook on how to evaluate certain operational parameters at my plant in order to increase productivity and efficiency." Francisco Rodriguez, Operations Metallurgical Engineer at Cerro Verde in Peru, (attended the flotation seminar in Antofagasta, Chile in August 2013) VERY SKILLED AND EXPERIENCED PRESENTERS WITH WELL-PREPARED TRAINING MATERIAL." I CAME FROM A FIXED PLANT OPERATION AND LEARNED MORE ABOUT THE COMPONENTS AND THEIR FUNCTIONS, AND ALSO LEARNED MORE ABOUT TROUBLESHOOTING AND HOW TO GO ABOUT CRUSHERS. THANKS!" Successful first seminar in Australia In July 2014, FLSmidth Institute was able to break into the Australian market when the FLSmidth Supercenter in Perth, Australia hosted a successful crushing operations and maintenance seminar for the first time for customers. The seminar reached full capacity with 22 participants from high-profile companies in the mining industry across Australia. During the three-day seminar, participants had the opportunity to interact with FLSmidth's specialists and share their challenges and experiences with the group. FEATURES

21 HIGHLIGHTS November ON THE JOB CONTACT STEPHANIE LAVERY Celebrating women in Customer Services across Australia A diverse workforce has always been an essential part of the FLSmidth culture and something the company believes is a requirement for meeting customers' needs. Women across Australia hold key positions in all areas of the Customer Services division, including sales, administration, purchasing, planning and warehouse roles. Here we highlight just a few of these valuable employees. NIKKI MAYNIER & ELIZABETH KAYE PROVIDING SUPPORT FOR FLSMIDTH CUSTOMERS Elizabeth Kaye National Customer Service Manager Elizabeth manages a large portion of our women in the Customer Service, Internal Support teams in Australia. There are a total of 19 people in this group, including 14 women. This team covers Australia to deal with customers' spare parts and consumable purchases. They also work alongside the Customer Service Area Managers and Site Services teams to create efficient horizontal teams who provide service to our customers. >> FEATURES

22 22 HIGHLIGHTS November 2014 THE CHALLENGES OF BEING A FEMALE IN THE MINING INDUSTRY ARE LESS AS THE YEARS GO BY. THERE IS MORE ACCEPTANCE NOW, NO NEED TO DO THE JOB FROM THE PUB ANYMORE! I JUST EXPECT PEOPLE TO DO THEIR JOB AND BE HONEST." Ann Hesp FLSmidth Internal Support, Customer Services Australia Ann Hesp Internal Support Ann works in the Kalgoorlie office/warehouse. Ann wears many different hats. She works with Internal Customer Service handling customer enquiries, customer quotes, processing orders and expediting. She also runs the office administration working on purchasing, phones and stationery. On top of all of that, Ann also works in the warehouse pulling orders and dispatching them to customers, receiving orders, organizing the racking, working the forklift, delivering to site, working in the yard and even cleaning. "The challenges of being a female in the mining industry are less as the years go by," she said. "There is more acceptance now, no need to do the job from the pub anymore! I just expect people to do their job and be honest." THERESA POZNIAK Theresa Pozniak Area Manager, Aggregates Theresa is currently transitioning from Internal Customer Sales to Area Manager for the fast-growing Australian Aggregates business. Theresa has been with FLSmidth for just over 15 years, working from our Warners Bay facility in NSW. She is used to being in the office supporting the FLSmidth consumables business, but is now looking forward to getting "down and dirty" on site! SIMONE MORRISON Simone Morrison Senior Internal Sales Officer & Customer Services Engineering Support Simone recently joined the Mineral Processing Customer Services business from the Mineral Processing Engineering group within FLSmidth. Simone has been in the engineering industry for 24 years and brings her engineering skills into her position as Senior Internal Sales Officer and Customer Services Engineering Support. ANN HESP FEATURES

23 HIGHLIGHTS November AN INTERESTING ASPECT OF MY POSITION IS THAT THROUGHOUT MY TRAVELS I HAVE GOTTEN TO KNOW LOCAL MEMBERS OF EACH COMMUNITY IN WHICH MY AREA ENCOMPASSES. THESE NEW CONTACTS ENABLE ME TO PROMOTE FLSMIDTH NOT ONLY TO OUR CUSTOMERS, BUT ALSO TO FORGE RELATIONSHIPS IN THE COMMUNITIES IN WHICH OUR CUSTOMERS BASE THEIR OPERATIONS." Kat Spencer - FLSmidth Area Manager, Customer Services, Australia Simone started with FLSmidth in April 2013 employed as a Product Development Technician for engineering change proposals (ECP). In October 2013, she was asked to manage the orders received from FLSmidth's Salt Lake City office to ensure that we were supplying contractually. Simone moved into her current position in March Kat Spencer Area Manager Kat has been with FLSmidth for the last two years working as the Area Manager with the CS-MP group based in Rockhampton, Queensland. Kat's vast area spans Rockhampton to Emerald and as far north as Nebo, including all areas in between. In this area, her main customers include BHP-Billiton and Peabody Energy & Wesfarmers, and she also calls upon numerous smaller sites that generate revenue of around $15 million per year, predominantly from coal sites. STEPHANIE LAVERY KAT SPENCER "An interesting aspect of my position is that throughout my travels I have gotten to know local members of each community in which my area encompasses," Kat said. "These new contacts enable me to promote FLSmidth not only to our customers, but also to forge relationships in the communities in which our customers base their operations." Stephanie Lavery Personal Assistant, Customer Services Stephanie has been with FLSmidth for more than 11 years, beginning with GL&V as a part-time receptionist in the West Gosford, NSW office back in She is a single mother of four children and this job began as a way to be around adults at least three days a week. As the business grew, she moved into a fulltime role assisting the Sales and Marketing team throughout Australia under the direction of David Williams. When David became the Country Head, she moved into the role as his personal assistant which she continues to do today. Her duties vary from day to day as she provides support to David and his current leadership team for the Mineral Processing Customer Services business unit in Australia and Southeast Asia. She enjoys the sales side of the business and is excited to be a part of Customer Services in Australia. Women in FLSmidth These ladies are just a few of the stellar women working for FLSmidth in Australia and around the world. Supporting and demonstrating respect for a diverse and equally represented workforce is imperative to FLSmidth's leadership approach, and it is an integrated part of our business system. FEATURES

24 24 HIGHLIGHTS November 2014 SERVICE CENTERS Increasing the speed and efficiency of customer service RECONSTRUCTION OF A MOBILE STACKER CONVEYOR TRIPPER CONTACT ALEXIS TAPIA ALEXIS.TAPIA@FLSMIDTH.COM CONTACT EUGENIO CRUZAT EUGENIO.CRUZAT@FLSMIDTH.COM When a client in Chile needed help to get their mobile stacker conveyor tripper back into working condition after an operational failure, FLSmidth's experts were able to speed the project along by leveraging the technologies and capabilities available through the La Negra FLSmidth Supercenter located in Antofagasta. In December 2013, FLSmidth received a call for help from Barrick's Zaldívar Mining Company (CMZ), which is located in the second region of Chile. Their RAHCO mobile stacker conveyor tripper had gone through an operational failure while working in the mobile ore stacking area of their copper extraction process. The failure included major structural, mechanical, hydraulic and electric damages. It was reducing the ore stockpiling capacity for CMZ, and service was needed urgently in order to meet site production goals. They asked FLSmidth to carry out emergency repairs to overhaul the equipment and return it to operating condition within 80 days. Under normal conditions, this type of equipment would have been considered impractical to repair, but due to the emergency situation, FLSmidth worked out a plan on how to repair the tripper within the delivery terms. FLSmidth's knowledgeable material handling experts got to work by having field-service personnel perform a damage assessment. From there they were able to create a plan on how to overhaul the equipment back to optimum conditions in the shortest possible time. A highly qualified team was assembled from the Chilean office and the USA-based Spokane office to create a multi-disciplinary group of experts who could offer the customer the best possible solution. In order to be effective and timely, FLSmidth built its teamwork approach with third-party companies who could render support services for hydraulics, electrical and surface preparation, and paint work (crucial for the corrosive environment in which the equipment operates). Permanent risk assessments were completed for each activity of the project to ensure that each task stage was completed in a timely manner and with a zero-incident rate, which would be a feat due to the size and weight of the parts being moved and worked with. The need for immediate assistance and global coordination close to the site made the La Negra Supercenter a crucial asset to making the project work. Due to the SERVICE IN ACTION

25 HIGHLIGHTS November strategic proximity of the Supercenter to the Zaldivar Mine site, it became the central project hub for logistics and repair work for the damaged equipment. The Supercenter also served as a location where the client could be an active participant in regular work development and progress meetings, as well as work inspections. The infrastructure of this specialized service center was fundamental to the success of the work as it provided all of the required tools and characteristics needed, such as logistic areas, warehousing, cutting-edge video conference rooms to join the team members together from around the world, and training rooms for the team to continually teach and learn about the special work-related issues. LA NEGRA SUPERCENTER TEAM COLLABORATIONS ON THE PROJECT HELD IN THE LA NEGRA SUPERCENTER Within the Supercenter, mechanical, hydraulic, electrical and control simulation tests were carried out, and the rail gauge was set up for equipment displacement to verify correct wiring of each component to the controls and that the performance parameters were reached. When the dryrun performance was certified, FLSmidth released the equipment for delivery to the CMZ site. CONSTRUCTION AND TESTING OF NEW TRIPPER CONSTRUCTION OF NEW COMPONENTS IN THE LA NEGRA SUPERCENTER FACILITIES On April 26, 2014, FLSmidth provided the support services for the start-up commissioning at the CMZ site. Currently, the plant is running at full operating capacity (3,000 TMPH) and CMZ has been able to reach their production goals due to FLSmidth's quality service and commitment to delivering optimally conditioned equipment on time. This project exemplified FLSmidth's ability and expertise in offering full and tailormade responses to the specific needs of customers through a global One Source team. The utilization of the La Negra Supercenter showed not only FLSmidth's foresight to build such comprehensive facilities close to customers, but also the strong commitment to being able to provide quality customer services in shorter times to keep our customers' plants running and producing. What is an FLSmidth Supercenter? A Supercenter is more than just an innovative building design it's a partnership with our customers and with the local community. Strategically located close to mining and cement operations, Supercenters provide localized services to ensure timely delivery and support. Each Supercenter houses world-class personnel to assist with customers specific requirements. Add to that parts warehouses, conference rooms, office space, testing facilities and training centers, and you start to see how an FLSmidth Supercenter can give cutomers the competitive advantage they re looking for. SERVICE IN ACTION

26 26 HIGHLIGHTS November 2014 SERVICE CENTERS CONTACT ANDREW LAUGHLIN Expanding our service footprint to better serve customers With tough market conditions forcing many mining suppliers and service providers to cut back, FLSmidth has made a bold decision to expand its Perth Supercenter in Welshpool, Australia, which is now in its second year of operation. The expansion, scheduled for completion in mid-2015, will double the facility s warehouse and workshop from 5,000 m 2 to 10,000 m 2. The investment will benefit FLSmidth s Australian customers by increasing coordination and integration of the company s products and services, and by minimizing lead times through added capacity in its workshop and warehouse. Mark Clifford, Country Head, Australia and Global Vice President, said the expansion will allow FLSmidth to further decrease costs and increase productivity for its customers. SERVICE IN ACTION Aftermarket support and backup is critical in ensuring that our customers meet their productivity and cost targets and will further enhance FLSmidth s relationship with our clients, he said. The expansion will allow us to better support our installed equipment base and keep it operational allowing our customers to get the maximum productivity out of the machines through technical competency, rebuilds or upgrades. When other suppliers are retracting their footprints in Australia, we re increasing our footprint to provide better service to our customers. The Perth Supercenter is one of six large service centers operating worldwide that are tailored to support FLSmidth s customers with warehousing of critical equipment and spare parts, along with rebuild and repair capabilities of components in an efficient and safe manner. David Williams, General Manager of Customer Services, Mineral Processing, Australia, added that the expansion plans demonstrate that FLSmidth is here for the long term. We re making a significant commitment in the industry here, and we re here to support the mining community, he said. WE RE MAKING A SIGNIFICANT COMMITMENT IN THE INDUSTRY HERE, AND WE RE HERE TO SUPPORT THE MINING COMMUNITY. David Williams FLSmidth General Manager Customer Services, Mineral Processing, Australia

27 HIGHLIGHTS November CONTACT RICHARDT FANGEL New Service Center in Zacatecas, Mexico NEW FLSMIDTH SERVICE CENTER IN ZACATECAS, MEXICO FLSmidth recently opened its newest service center, located in Zacatecas, Mexico. The grand opening took place on August 29, 2014, coming just 358 days after the company held its ground breaking ceremony at the site. This first phase of completed construction on the service center site includes a 1,000 m 2 warehouse along with 250 m 2 offices and training facilities. The facility is located on a 12,400 m 2 parcel of land, with room for planned phases of future development. FLSmidth service centers differ from Supercenters in that Supercenters not only include the warehousing and training facilities of a service center, but also manufacturing and testing facilities. Rather than the typical cutting of a ribbon for the opening of the service center, FLSmidth managers instead planted a tree to symbolize the forthcoming growth and construction. The Ligustrum Lucidum, a small evergreen tree that grows up to 10 m tall and broad, was specifically chosen because its qualities mirror those that FLSmidth looks for in a service center: it grows fast both in sunshine and shadow and its resilience enables it to thrive in ever-changing conditions. said Ms. Romy Gibbons, FLSmidth s Global Supercenter Director. Zacatecas was a natural choice as a service center location because of its proximity to many of Mexico s major mining projects, said Mr. Richardt Fangel, FLSmidth Mexico Country Head. In all, nearly 70 percent of Mexico s mining production takes place within a radius of 500 km from Zacatecas. In order to improve service to its customers in Mexico, FLSmidth grasped the opportunity to open the local service center in Zacatecas. The new facility reinforces FLSmidth s commitment and promising future in the Mexican mining industry. We hope this service center will benefit the local mining customers for many years to come, Mr. Fangel said. The Zacatecas service center business plan has been sectioned into three phases. Each phase will begin as business growth allows. Phase 1: Field service, island service packages, training, exchange and stocking programs, distribution Phase 2: Repair and/or upgrade of equipment Phase 3: Assembly of new equipment Phase 1 began on August 29, 2014 with the opening of the Zacatecas service center. The present FLSmidth warehouse in Monterrey will soon be consolidated to this new location. In building up the service capabilities in Mexico, training and experience has been key as the team is now able to service a complete concentrator line with Spanishspeaking specialists, Mr. Fangel said. We will also expand our equipment service packages with monthly visits by a field engineer for system inspection, process maintenance and spare-parts planning. SERVICE IN ACTION

28 28 HIGHLIGHTS November 2014 CONTACT TIM TEBBE Harvesting potash from the Dead Sea FLOATING TRACKED HARVESTER NO. 9 AT WORK ON THE DEAD SEA FLSmidth and Arab Potash Company (APC) recently launched the site's twelfth RAHCO harvester on-time and on-budget. This latest successful project points to a continuation of a prosperous and successful relationship between the companies. APC s operation is located at the southern end of the Dead Sea in the country of Jordan. The RAHCO floating tracked harvesters (FTH) are placed in a series of pads that make up an interwoven set of water systems whose initial flow is pumped from the Dead Sea to the processing plant located on the southern shores. The Dead Sea is one of the saltiest bodies of water in the world; its salinity is nearly 9.6 times greater than that of the ocean. This makes for a harsh environment in which animals cannot flourish, hence the name of the "Dead" Sea. The high saline levels of the Dead Sea are not good for animals, but provide a rich abundance INNOVATION

29 HIGHLIGHTS November of potash resources as the compound makeup of potash consists of salts that contain potassium in a water-soluble form. Floating tracked harvester technology The harvesters are flat-bottom vessels with four tracks (one at each corner) that are hydraulically raised and lowered to make light contact with the pad's floor. The tracks are used to steer and propel the vessel through the potash pads, which are approximately 2 m deep. Each FTH has a large auger mounted on the front of the vessel, which turns slowly to collect the brine (a combination of water, salt, magnesium chloride and potash). The brine is a byproduct of the highly concentrated minerals-based soil and salt water of the Dead Sea. As the auger screw collects and pushes the material to the center of the auger head, a large vacuum pump system pulls the material into the vessel, sorts and filters the material, and discharges the brine solution via a floating pipeline that tails the FTH. The floating pipeline conveys the material from each vessel to a diverse system of land-based pipelines that convey this material to the processing plant. The design of the FTH has remained essentially unchanged since the 1980s, giving credit to the initial design and functionality of the vessels. FLSmidth's improvements to the initial designs include upgrades to various components. For example, the hydraulic power units (HPUs) have been upgraded with newer pumps and filters as newer designs have improved over the past 30+ years. In addition to the upgraded HPUs, adjustments have been made to the routing of electrical and hydraulic fluid conduit and piping. The e-house has also been upgraded to a newer layout and HMI to aid in the process of data tracking and improved predictable proactive maintenance needs. The auger design has been intensified with a toothed design, which is used to break up harder carnallite deposits. FLSmidth acquired the RAHCO brand of mobile conveying and stacking technology in April Along with the purchase of the mobile conveying technology, FLSmidth also gained the RAHCO floating tracked harvester technology, which has been supplied to the potash industry for more than 30 years. The Arab Potash Company has been FLSmidth's main customer for this technology. This relationship has continued to strengthen over the years into a recently established five-year alliance agreement between FLSmidth and APC. RAHCO FLOATING TRACKED HARVESTER INNOVATION

30 30 HIGHLIGHTS November 2014 CONTACT DAVID STARR Advancing reliability & maintenance THE FIRST FC1200-LS IN OPERATION AT THE NEW ACLAND COAL MINE FLSmidth is constantly moving forward with new innovations to provide more sustainable solutions for customers to get the most out of their investments. The FC1200-LS fine coal centrifuge offers a new design that reduces maintenance downtime, improves reliability and reduces the total cost of ownership. This latest advancement presents the industry with the most reliable and maintenance-friendly machine of its kind in the market today. New Hope's New Acland Coal Mine in Queensland, Australia, has been operating the FC1200-LS fine coal centrifuge for over 11 months. The mine's CHPP Superintendent, Robert Rashleigh, commented on the performance of the unit, saying, "Since the installation of FC1200-LS, with an oil feed top bearing, we consider the following to be true advantages of this new unit: longer run periods due to reduced down time to grease the top bearing, cleaner running efficiencies, no grease contamination in the oil, less scheduled maintenance, and an ability to investigate longer wear life on baskets for reduced maintenance costs." Based on the success of the first FC1200-LS centrifuge, the New Hope Group has chosen to update another machine in their New Acland Mine operations. The Peabody Moorvale Mine has also refurbished one of their fine coal centrifuges to the FC1200-LS to take advantage of the new design improvements and maintenance benefits. INNOVATION

31 HIGHLIGHTS November SINCE THE INSTALLATION OF FC1200-LS, WITH AN OIL FEED TOP BEARING, WE CONSIDER THE FOLLOWING TO BE TRUE ADVANTAGES OF THIS NEW UNIT: LONGER RUN PERIODS DUE TO REDUCED DOWN TIME TO GREASE THE TOP BEARING, CLEANER RUNNING EFFICIENCIES, NO GREASE CONTAMINATION IN THE OIL, LESS SCHEDULED MAINTENANCE, AND AN ABILITY TO INVESTIGATE LONGER WEAR LIFE ON BASKETS FOR REDUCED MAINTENANCE COSTS." Robert Rashleigh CHPP Superintendent The FC1200-LS is a direct replacement for the traditional FC1200 fine coal centrifuge. Existing machines can be returned to the factory to be upgraded to this new patented design. This provides an attractive aftermarket solution to clients looking to reduce maintenance downtime and improve the reliability of their equipment. The new design can be fitted to any plant currently operating the traditional FC1200 machine without any modifications to the plant, and the wet-end consumable parts remain unchanged. The new, patented, integral lubrication system provides filtered oil lubrication to all moving parts in the machine with no need for grease lubrication as seen in traditional machines. Additionally, there are no remote or internal grease points. This means that the machine does not need to be stopped or disassembled for lubrication purposes (outside of scheduled oil changes). The new gearbox design reduces oil contamination from the process stream. This feature removes the need for grease labyrinths, increases the life of the filter circuit and significantly improves the quality of the oil lubrication. These improvements in sealing and lubrication extended the intervals for oil service by up to 30%. The design principles applied have ensured that the easy operation of the traditional machine remains the same, while maintenance and reliability have improved. The product has been designed to the quality standard that is expected of the FLSmidth brand and has involved leading engineers, industry experts, service personnel and key customers to ensure a practical and innovative solution is provided to the industry. Extensive factory testing has THE NEW FC1200-LS been backed by real-world field trials to ensure a reliable turnkey product for customers. Craig Wilson, FLSmidth Global Product Director of Centrifuges and Reflux Classifiers, said, It's fantastic to see the close collaboration between our customers, product managers and our experienced engineers in discussing problems and coming up with solutions to improve the performance of our equipment and the availability of our equipment in their plants. INNOVATION

32 32 HIGHLIGHTS November 2014 CONTACT FRANCISCO DAVOS Excellence recognized in Brazil When Samarco Mineração needed assistance with its latest expansion project, it looked to FLSmidth as a trusted and experienced supplier. Based in Belo Horizonte, Samarco Mineração has been operating since 1977 and is a joint venture between Vale S.A. and BHP Billiton. The company engages in the mining, beneficiation and pelletizing of iron. Up until recently, Samarco had been producing at a capacity of 22.3 million tons a year (Mt/y) to ready iron ore for export to steelmakers around the world. This was accomplished through its three pelletizing plants located in the Espírito Santo state of Anchieta in Brazil. To increase capacity, Samarco added a fourth pelletizing plant inaugurated during the first half of The expansion included an iron ore beneficiation plant with equipment being supplied by FLSmidth to extract and separate the iron ore and increase its grade value before it was pelletized for shipment. The project has been very successful, increasing production output to 30.5 Mt/y. To recognize the superior contributions and performance of suppliers, Samarco created the Excellence Award, which this year was presented to FLSmidth. Evaluation criteria for the award included delivery, quality, safety procedures during and following erection, commissioning and startup, social and environmental responsibility, and performance and reliability of the equipment. Out of 200 suppliers and because of its good management practices during the fourth expansion project, FLSmidth received outstanding results and was announced as a winner. SAMARCO DIRECTORS (L R): RICARDO VESCOVI (PRESIDENT), EDUARDO FERREIRA, MAURY SOUZA, EDUARDO BAHIA, WITH FRANCISCO DAVOS/FLS (CENTER) The prestigious award, known as the Trofeu Excelencia (Excellence Trophy) was presented to members of FLSmidth management at Samarco Mineração s gala dinner held on the September 4, 2014 in Belo Horizonte, Brazil, with more than 400 VIP guests and suppliers of the minerals industry in attendance. This award belongs to all FLSmidth, said Francisco Davos, Brazil Country Director. It belongs to each employee of the company. It's an award that makes us very proud to continue our journey, and even more motivated to continue offering the best solutions to the market. Thanks to everyone who contributed to it. SERVICE IN ACTION

33 HIGHLIGHTS November CONTACT TECK SOH The Qingdao manufacturing connection FLSmidth is improving procurement and manufacturing solutions to provide on-time, reliable products at good prices. The Qingdao manufacturing facility focuses on reducing costs to its customers for standardized equipment. The marketplace demands reliable products at a good price and delivered on time. Part of FLSmidth s operational strategy to remain at the leading edge and deliver competitive products and services, is to reduce cost while increasing quality and availability. While commodity prices and raw materials fluctuate, we had to look for opportunities to cut costs but still deliver timely products that are built with safety and quality in mind, said Mark Fielder, FLSmidth Vice President, Minerals Global Operations. A global procurement strategy allows FLSmidth to source equipment and materials competitively, thus creating more opportunities for reduction of cost and optimization of delivery schedules. Utilizing engineering services through FLSmidth s India offices and then effectively negotiating price and conditions with global and local suppliers have improved our cost structure, allowing FLSmidth to pass on the savings to mining customers. In addition, as part of our procurement and manufacturing solutions and to reduce dependency on outside vendors, FLSmidth has invested in manufacturing a number of products in low-cost countries to maximize cost efficiencies while maintaining a high standard of quality and reliability. FLSmidth s manufacturing in its Chinese and Indian facilities is increasing, and we are more effectively utilizing available production capacity. One such operation was set up more than three years ago in the Shandong Province of eastern China. The Qingdao facility is a strategic manufacturing/assembly center that supports all of FLSmidth as an integrated production unit that secures compliance in safety, quality, delivery and reduced cost.this 36,000 m 2 facility is focused on standard products with high labor content that require only light-tomedium fabrication. That emphasis, combined with local sourcing and dedicated work centers, enhances production of standard products. Another benefit is that quality specifications can be more easily maintained; in fact, the Qingdao team has been ISO9001 certified since Intellectual property rights are better protected when manufacturing through insourced capabilities, which ensures the customer is receiving the best, tried and tested, most efficient products available. All this is backed by FLSmidth s process know-how and service. Core manufacturing capabilities of the Qingdao team include fabrication work with welding certification to AWS (American Welding Standard) and AS/1554 part 5 (Australian Standard, which is especially critical to Australian customers in coal preparation); in-house blast and paint booth; Polyurethane; ceramic tiling; and assembly. The facility includes a quality lab and up-to-date Oracle enterprise resource planning (ERP) systems to increase integration, trackability and communication with FLSmidth offices throughout the world. Since moving this specialized manufacturing in-house, we have found our products can be produced with equal or better quality and at a substantially reduced price, enabling us to be globally cost competitive, Mr. Fielder said. ORACLE IS A REGISTERED TRADEMARK OF ORACLE INTERNATIONAL CORPORATION INCREASING EFFICIENCY

34 34 HIGHLIGHTS November 2014 CONTACT KENNY DON Higher pumping efficiencies for medium-duty applications FLSMIDTH KREBS MILLMAX-E PUMP Climbing power prices, particularly for new mine sites in remote locations, have sparked an increasing global demand for power savings solutions in the mineral processing industry. Over the years, plants have been using heavy-duty slurry pumps in applications where they are more powerful than needed. Because no plant should pay out increased energy costs for under-used pumps in medium-duty applications, FLSmidth Krebs has developed the millmax-e pump, which is a hybrid between a heavyduty slurry pump and an extremely efficient water pump that operates with efficiencies above 80%. INNOVATION

35 HIGHLIGHTS November FLSmidth Krebs Pump Application Ultimate MIll Discharge (UMD) pump Heavy duty slurrymax pump millmax pump millmax-e pump Medium duty vmax pump INVENTOR JOHN FRATER BESIDE THE BRAND-NEW MILLMAX-E PUMP John Frater is a leader in the design of slurry pumps. In 1996, John invented the revolutionary millmax pump. John will be inducted into the 2014 International Mining Technology Hall of Fame on February 16, 2015 during the SME Annual Meeting in Denver, Colorado in the bulk handling category. His internationally renowned pump designs have made an extraordinary contribution to the mining industry worldwide. Read more at Water THE MILLMAX-E PUMP WAS DEVELOPED TO MEET THE NEEDS OF OUR CUSTOMERS BY GIVING THEM A DURABLE PRODUCT WITH THE HIGHEST EFFICIENCIES AND LOWEST TOTAL COST OF OWNERSHIP. John Frater FLSmidth Krebs Pump Technical Director, millmax Sales FLSmidth Krebs has long been an industry leader for efficient and long-lasting, heavyduty slurry pumps. The millmax-e pump is the newest member of FLSmidth Krebs' millmax pump product family which was created by world-renowned pump designer John S. Frater and was designed with value in mind. It's built with the same heavy-duty shafts and bearings used in the standard millmax pumps products, thus maintaining the robust reliability of the product line. Though robust, it features a leaner design with new power frames that beneficially lower its total capital cost. This new pump was put through extensive computational fluid dynamics analysis and hydraulic lab testing to ensure highly efficient performance. The millmax-e pump also features the same patented adjustable millmax suction side sealing system as FLSmidth Krebs' other horizontal slurry pumps. The millmax-e pump is versatile for different applications from medium abrasive (any slurry with 10 15% volumetric concentration and below) to corrosive slurries. It comes standard with high chrome wet-end materials, but can be used in corrosive applications with possible hypoeutectic high chrome or stainless steel options. Previous to the millmax-e pump, FLSmidth Krebs did not have an option for urethane-lined pumps, but the millmax-e pump will be available with a urethane lining, making it suitable for applications in mineral sands. The millmax-e is not meant to be put into applications with severely abrasive slurries, such as hard rock mill discharge or tailings applications. For heavier-duty applications, FLSmidth Krebs' heavy-duty Ultimate Mill Discharge (UMD), millmax and slurrymax (rubber-lined) pumps are better suited to get the job done. No matter the application, there is a millmax pump to fit the job. INNOVATION