"Ontario is the engine room of the Canadian mining industry, and it will keep being that."

Zimi Meka

CO-FOUNDER, CEO AND MANAGING DIRECTOR, AUSENCO

April 27, 2023

What are your general observations on Ausenco’s performance in 2022?

2022 was a record year for Ausenco. We did over a billion dollars (AUD) of revenue in 2022, all achieved through a very busy backlog of work and by taking market share. I am confident that we will remain well positioned for the remainder of 2023.

What environmental initiatives are most feasible in helping mining companies achieve their ESG targets?

Pit-to-port energy usage in mining is significant. Simply grinding the ore pre-processing accounts for about 2% of the world's CO2 emissions. The challenges are going to be around how we reduce energy consumption on the processing side, and with grades falling, companies are having to grind more rock without any mineral in it. Preconcentration and coarse particle flotation will come to the fore, where companies will not necessarily have to grind as fine, and they will reject material that is non mineral bearing.

The other issue to consider is with respect to water reduction, specifically around tailings. Looking at filtration of tailings, we are seeing a lot of work done in dry stacking, where you filter tailings, recover the water, and stack a dry tailings product. This is better environmentally and geotechnically, it’s safer, and at the same time helps recover water, which is cost-saving.

There is a lot of work being done around electrification of mining trucks, and I think there is going to be a lot of enhancements in that area. Finally, with bulk materials, here in Australia, coal and iron ore are typically transported to ports by diesel train. There is a lot of work being done to use electric trains. Given rising interest rates many companies are considering a bootstrapper model to get to cash flow quicker.

Do you feel this is an appropriate model given the current environment we are in?

Capital is key, so the way we have been taught is to bootstrap and expand later. Companies should see how much money they can raise, work back, and use that to inform their development plans. If they can get the project up and running, bootstrap cash flow and then do a stage two in 2-3 years’ time, increase tonnage or do more exploration, they are off to the races. Some of the great mines in the world have started this way. Projects that began with a five-year life turned into a 50-year life, and they never would have gotten off the ground if they considered it a 50-year project initially.

To what extent are inefficient permitting processes dissuading investors from allocating capital into mining projects?

You can have a list of economically viable projects, but it can take between five and seven years to get a permit. We are working on a lot of projects, in particular in Canada, where permitting is a holdup. When permits do come through, there are often numerous conditions that must be reviewed. There must be some methodology to expedite this process, so companies know early on what they are dealing with.

What is Ausenco looking forward to in Ontario in 2023?

We are still on track to complete Argonaut’s Magino project in the first half of 2023, with the first pour scheduled in May. In February, we completed the PFS at Treasury Metals’ Goldlund project, and overall, there remains some great exploration happening in the province. Ontario is the engine room of the Canadian mining industry, and it will keep being that. Ausenco has been named one of Canada’s Top 100 Employers for Young People in 2022.

What does this say about the culture you have developed?

We received that award in Brazil, Peru and Canada. Over the last six or seven years, we have put a major focus on supporting graduates and young professionals. We have a well-developed graduate program where we hire from various universities globally for two years, and then progress these graduates into our young professionals program. Our young professionals and graduates are very dynamic groups here at Ausenco, and every time we survey them, they score very high in terms of their engagement with the company. We promote from that group quite heavily, and we get great results.

INTERVIEWS MORE INTERVIEWS

"Across mining as a whole, digitalization has become important, from underground operational control rooms to data handling and the onset of machine learning and AI."
"We expect continued consolidation as larger companies seek to secure assets before the opportunity set dwindles even further."
"By the end of August 2024, we already had 30 new listings, a significant increase from the 20 we saw throughout 2023."
"SEMS has therefore focussed on providing technical services that our customers may not have in-house, such as topographic and geophysical drone services, which is a great area of growth for us."

RECENT PUBLICATIONS

MACIG 2025 pre-release

The scramble for supply drives miners back to geological credentials, and therefore to Africa, the world’s most resource-abundant continent.

MORE PREVIOUSLY PUBLISHED

MACIG

"By the end of August 2024, we already had 30 new listings, a significant increase from the 20 we saw throughout 2023."

SUBSCRIBE TO OUR NEWSLETTER