BSI Inspectorate. India International Gold Conference. Partners in global risk management. Mumbai. 24 th 25 th August 2005.

Transcription

1 BSI Inspectorate Partners in global risk management 1 Presentation to: India International Gold Conference Mumbai 24 th 25 th August 2005 Ian Gathercole, Sales & Marketing Manager Precious Metals Ian.gathercole@inspectorate.co.uk tel: mob:

2 About Us : Inspectorate 2 Top 4 analysis and inspections company Over 3,500 people in 100+ countries worldwide Minerals, Oil, Agricultural and Food Safety Trusted by hundreds of clients for 150+ years Independence, integrity, innovation

3 About Us: 150 year track record 3 present BSI Inspectorate: investing in people, facilities and technology worldwide BSI acquires Inspectorate Inspectorate Shanghai established. One of the first major foreign inspection companies in China Inspectorate acquires D.C. Griffith Inspectorate established, covering Europe and Middle East D.C. Griffith established as assayer to Bank of England and Royal Mint.

4 Services: Inspection BSI Analysis Consultancy Inspectorate inspection services Vessel draft surveys Load & discharge supervision Visual inspection of bulk scrap, sampling of shredded scrap Weighing system checks Quality sampling, sizing & sample preparation Moisture determination Worldwide coverage Highly trained inspectors 4

5 Services: Inspection Analysis Consultancy 5 BSI Inspectorate analytical services Party and Umpire & Geochemical Analysis Key labs ISO certified ISO 9001:2000 (quality management) certified in all key operations Technological capability: Wet bench chemistry: Fire assay Instrumental techniques

6 Services: Inspection Analysis Consultancy 6 BSI Inspectorate consultancy Precision and bias testing of sampling and weighing systems Design of sampling and measurement systems Auditing of sampling, weighing and production quality systems Developing and implementing appropriate analytical procedures Design of geochemical sampling programs Review of contractual advice relating to weighing, sampling, assaying, exchange and arbitration services Security audits to protect your metals and minerals

7 About Us: Clients 7

8 Services: Precious Metals 8 Precious metal ores & concentrates Gold, silver and platinum group metals (PGMs) bullion/doré Precious metal catalysts and gauzes Au, Ag, Pt, Pd, Rh, Re Residues/scraps (anodic slimes, nickel matte) Precious metal solutions LBMA (London Bullion Market Association) Associate Members and registered supervisor of pro-active monitoring scheme. IPMI (International Precious Metals Institute) Patron Member and 2003/2004 Presidency.

9 Services: Non-ferrous Metals and Minerals 9 Non ferrous ores and concentrates copper, lead, zinc, tin, antimony, molybdenum, tungsten Intermediate products matte, blister, anode, bullion Electrolytic materials slimes, residue Refined products cathode, ingots Non ferrous scrap UK and Singapore Laboratories recognized and accredited by the LME

10 Services: Steel and Energy Products 10 Ores and concentrates - Fe lump, pellet & fines, Mn, Cr, bauxite Coal and coke we have preparation & testing facilities across around the world Steel scrap Ferro-alloys - inspection and verification of raw materials used in the steel industry Members of the BIR, committed to recycling and the environment

11 Services: Geochemical and Exploration Analysis 11 Coal Metals (exploration samples, concentrates, refined metals and bullion): Precious metals Base metals Non-metallic (industrial) minerals: Limestone and clays Silica sands Specialist Geochem Labs in: USA & Peru Sample prep labs throughout the Americas: Mexico, Guatemala, Brazil

12 Reno, Nevada 12 Production Built & Designed Laboratory For High Grade and Geochemical Analysis 30,000 square foot laboratory in Sparks, NV New LIMS with bar code sample control Sample Reception & pick-up throughout the Americas Customer sample tracking Sample preparation Pulp/reject storage Fire Assay & Screened F.A. Approx 4,000 fire assays daily Cyanide Extractable Au Single & Multi-Element Packages ICP-OES ICP-MS AAS High precision wet chem methods Complex digestions

13 Witham, U.K. Largest independent lab of its kind in the world 3.5m turnover 3000 elements/month 9000 tests/month 27% elements party to umpire ratio Trusted worldwide for Party and Umpire Analysis Most accurate methods and technologies Comprehensive range of materials handled Precious metals Ferrous and heavy bulk Ferro-alloys Finished steel Steel scrap Non-ferrous metals Coal and coke Non-metallic (industrial metals) Geochemical and exploration analysis 13 State of the art equipment, with exhaustive checks an audits to ensure peak performance. Continual reviews of performance, internally and externally. Continual research and development in order to improve performance.

14 Minimizing Risks: Inspectorate s Proposition 14 process control health, safety & environment time delays profit erosion weight measurement material security quality measurement compliance/integrity quality of analysis contract disputes

15 Minimizing Risk: Time Delays 15 Potential costs Financing a 120,000mt coal shipment can cost $5,000/week. A 1 day delay in assay results can add 5,000mt copper concentrate cargo. $1,000 on a Causes and impact Disputes, poor analysis, unreliable port attendance, slow response can cause: Vessel demurrage costs Letter of credit expiry Additional finance cost Late customer delivery / material shortage Consequential losses

16 Minimizing Risk: Time Delays 16 BSI Inspectorate risk minimization Dedicated personal contacts 24/7 inspection capability worldwide Prompt and accurate assay results Laboratory Scheduling System - reliable target dates, highlighted opportunities for early completion Sample Tracking System - track your sample s progress and access preliminary results Development of quicker or optimum methodology BSI Inspectorate service advantages On-site reporting Quick Check preliminary assays using mobile XRF Inspectors report remotely

17 Minimizing Risk: Weight Measurement 17 Potential costs A 0.1% variance in weight determination can result in $15,000 loss on a 5,000mt copper-gold concentrate. Causes and impact Weight and quality errors can be a result of: Poor equipment Low quality procedures Unknown or incorrect vessel parameters Poor calibration Inexperienced staff Non-compliant operators Spillage, theft, contamination

18 Minimizing Risk: Weight Measurement 18 BSI Inspectorate risk mitigation BSI Inspectorate recognize the costly risks of poor measurement and offer: Qualified, expert supervision Immediate reporting of concerns Spillage recovery Loss minimization Hold cleanliness checks ISO-based measurement and supervision procedures Vessel database (global)

19 Minimizing Risk: Material Security 19 Potential costs Material stockpile loss cost one operator $2m. A shipment of lead concentrate was switched in transit at a cost of $250,000. Causes and impact Material losses occur through: Stockpile theft Switching in transit Non-compliant operators Poor consignment management Receiver bankruptcy

20 Minimizing Risk: Material Security 20 BSI Inspectorate risk minimization BSI Inspectorate Staff are familiar with security threats at many locations world-wide. Our service protects your interests through: Professional security audits Remote Stockpile monitoring Ethical inspection and supervision, enforced through BSI s Fair Trading Policy Concentrate fingerprinting Material ID tagging

21 Minimizing Risk: Quality of Analysis 21 Potential costs A 0.2% variance in Copper grade $30,000 financial risk to a 5,000mt copper concentrate cargo Causes and impact Poor material analysis can impact: Shipment value/profit Mine productivity Element penalty charges Smelter hazards/productivity

22 Minimizing Risk: Quality of Analysis 22 BSI Inspectorate risk minimization BSI Inspectorate has over 150 years experience in the laboratory analysis of metals and minerals. UKAS /ISO and ISO 9001 ensure: Standard processes Consistent operations over time Reliable results Six Sigma methodology to: mize variation Improve speed, cost and accuracy BSI Inspectorate advantages Certified Reference Material (CRM) to: Control each and every batch Calibrate process Ensure global consistency ISO standards representation to raise industry standards Round robin participation to benchmark facilities Acknowledged global recognition for leadership in quality UKAS / ISO compliance 7163

23 Minimizing Risk: Contract Disputes 23 Potential costs A one month delay in settlement of a 120,00mt coal shipment could add $25,000 costs to the transaction. Causes and impact Contract disputes are caused by: Poor material analysis Non-compliant operators Material security Loss or theft Weight/volume differences

24 Minimizing Risk: Contract Disputes 24 BSI Inspectorate risk minimization BSI Inspectorate upholds its reputation for fair trading, impartiality and the highest levels of integrity. Umpire Analysis Process and risk evaluation Buyer/seller joint representation Umpire loss ratio evaluation Historical material records

25 Minimizing Risk: Compliance/Integrity 25 Causes and impact Not all companies enforce a fair trading policy. Risks in this area are difficult to measure but are potentially of the highest level. BSI Inspectorate risk minimization Management: BSI takes issues of compliance very seriously; it s our business. Directors are accountable and take responsibility. Employees: All our staff are trained and committed to our global compliance standards. Full details publicly available at: Open door policy: Audits: All your files and results openly available for review, no notice required. Our laboratory results are your results. Nothing hidden. Report register of all issues along with a confidential line to report concerns. Internal auditors conduct random checks on Code compliance. Comprehensive external audits conducted annually.

26 Minimizing Risk: Health, Safety & Environment 26 Potential costs An un-inspected shipment of scrap exploded, causing 12 fatalities with a potential cost of millions of dollars. Causes and impact A poor record of Health, Safety and Environment can result in: Loss of life or serious injury Legal proceedings Closure of operations Poor employee relations Loss of shareholder value Major impact on profit Poor government relations Negative publicity/brand impact

27 Minimizing Risk: Health, Safety & Environment 27 BSI Inspectorate risk minimization BSI Inspectorate recognize the risks and impact of Health, Safety and Environment issues and provide seamless policies with their customers. Risk assessment and management procedure to provide a safe environment for all employees Fully equipped and trained personnel Full awareness, training and adherence to customer/partner policies

28 Minimizing Risk: Process Control 28 Potential costs In a large mining-concentrating operation, decreased metal recovery due to sub-optimal plant performance can cost... $5,000/day in lost income. Causes and impact Poor metal recoveries are caused by: Poor or biased sampling Poor equipment or calibration Inexperienced staff Low quality procedures BSI Inspectorate risk minimization Skilled, experienced operators worldwide Information you need to make the right decisions: Sampling and sample processing Audit of existing procedures, operators and equipment Bias & precision testing

29 Minimizing Risk: Profit Erosion: gold 29 Open-cut mine, Australia e.g. 200,000 oz./year Au Processing plant Plant optimisation for material quality. ±1% Au recovery $2,300/day Transit - 500kg Au dore (90%) Theft 0.1% $5,800 Damage 0.1% $5,800 Total: 0.2% $11,600/shipment 3rd party site Weighing ± 0.3% $17,400 Sampling errors ± 0.3% $17,400 Fraud ± 0.1% $5.800 Total ± 0.7% $12,000/shipment

30 About Us: Technical Papers 30 Supporting technical papers Ask your BSI consultant for these documents to find out more about our services. Sampling Methods and Errors Draft Surveys Material Analysis and Method Selection Security Laboratory Quality Measures

31 About Us: Contact Us 31 UK headquarters BSI Inspectorate Ltd. 2 Perry Road, Witham, Essex CM8 3TU, UK Tel: Fax: marketing@inspectorate.co.uk US regional hub BSI Inspectorate Americas Inc Aerospace Avenue, Houston TX Tel: Fax: corporate.admin@inspectorate.com Asia regional hub BSI Inspectorate Singapore Pte Ltd. Blk 28 Ayer Rajah Crescent 01-03, Singapore Tel: Fax: inspss@bsi-inspectorate.com.sg India regional hub BSI Inspectorate India Pvt Ltd 608 Central Plaza 2/6 Sarat Base Rd, Kolkata Tel: Fax: calhq@bsi-inspectorate.co.in