IM 2019 August 19 | Page 60

HIGH PROFILE China’s top mine developer In the first of our new series of articles based on meetings with the key Chinese mining services, equipment & technology providers, Paul Moore caught up with Jianzhong Zhang, Managing Director of JCHX Mining Management operating subsidiary Jimond Mining (JMMC). JCHX is a top mining contractor in China but has also been increasingly successful in the international market Q How has the mining contracting and mining development market within China developed and changed in recent years? A The requirement of basic metals for social development is essential and China’s mining industry as such has continued to grow to meet this demand. That said a change is that the Chinese government has been showing much greater concern with regard to environmental controls “to keep the green mountain and clear water” as they are in the face of increased mining activity. Using the latest methods and technologies in the Chinese mining industry helps the most advanced Chinese contractors to maintain environmental standards, and JCHX is one of them. It is a challenge to adopt the new and give up the old but all of the premium Chinese mining contractors have recognised the importance of environment protection.   Q Would you say the focus on safety as well as environmental sustainability in mining has increased? A It has absolutely changed across the whole mining industry in China in relation to both safety and the environment. It can be described as happening on three levels: the first level is from the government with new regulations and laws to not allow mines to be developed until a proper safety and environmental evaluation has taken place to help prevent any incidents during actual production. The second level is at the ownership level of mining, where they are compelled to invest more in safety and environmental protection, otherwise they are not permitted to start production. And the third level is for the mine workers & mining contractors. Contractors like JCHX are enhancing their training for employees both at home and abroad to instil in them importance of safety and environmental protection. All employees are better understanding the importance of mining industry safety for them and for their families. JCHX is spending much more on safety and environment controls for the duration of its mining contracts and this is all covered by our standardised systems.   Q Is there still a large market for “lower cost, lower value” Chinese contractors? 56 International Mining | AUGUST 2019 A This really reflects the mining situation years ago. JCHX as an example is one of the top mining service providers and we know that growth of the mining industry in China requires us to continuously improve capabilities on safety, quality and passing on reasonable contracting costs. JCHX has signed contracts with and become one of the ten key global accounts with the largest underground mining equipment suppliers Epiroc and Sandvik, which goes to show we have realised remaining reliant on the traditional Chinese concept of mining construction has no place going forward. We believe the period of “lower cost, lower value” has already been consigned to the history books. But that said, we believe that Chinese contractor knowhow and hard work can still give them more flexibility on project economics without compromising on quality. The practical combination of high technology and economics helps to provide mine owners with more profit margin.   Q Shaft sinking is highly specialised, are there any recent examples of JCHX shaft sinking work that you would single out as being especially challenging and that you are proud of as a company in being able to meet these challenges? A JCHX’s capability on shaft sinking has made more and more progress over recent years. One big shaft under construction for the Shaling gold mine in Shandong province will be over 1,580 m deep and another 1,526 m shaft was completed two years ago in Yunnan province, and on that Jianzhong Zhang, Managing Director of JCHX operating subsidiary Jimond Mining (JMMC) project what was then a new sinking record was achieved. Q Can you also single out any recent contract mining project examples that JCHX is particularly proud of as a company? A The Kamoa copper mine in DRC is a good example to show JCHX’s capabilities. Kamoa is the third biggest copper mine in DRC and we have successfully completed the first stage contract by developing two twin declines over 3,000 m long. Recently we have signed another five year contract for underground development of 50,000 m with a contract value of $288 million. We have adopted all worldclass equipment and standards to operate our works at Kamoa and have created more than 600 jobs for the local people. This project has helped to raise the profile of JCHX much more in the global mining construction business.   Q Who are the other premium mining contractors you are mainly competing with in China and how do you differentiate your offering against theirs? View from the top of the Kamoa-Kakula copper mine boxcut