An interview with WLF MD Russell Clark August 03, 2014, from the...

An interview with WLF MD Russell Clark August 03, 2014, from the Western morning newspaper in Devon.  It's worth the time to read, as it shows an inside in how the company as well as the new MD, are thinking about the future for its shareholders, I'm very happy with progress at the mine site to date, looking forward to our mine being completed next year, and with some luck, we may see the price of tungsten and tin moving up to a new high in the near future!   


Why is your company called ‘Wolf’?

Wolframite, or wolf’s breath as the old tin miners used to call it, is the tungsten ore found at Hemerdon and that’s what we’re mining here. Hence the name.

What’s your background?

I was born in Bahrain, went to school in Surrey and studied at the Royal School of Mines in London. I left the UK in 1980 and after some work experience in South Africa I went to Australia where I found work in Wollongong in New South Wales at a coal mine. Following an explosion in the mine next door I decided that my preference was not to work in coal. I had a scholarship with Goldfields through university and once I finished I went to work for them in Australia and was with them for 18 years.

Where did the work take you?

Over the years I have worked in South Africa, New Guinea, all over Australia and Florida, Virginia and Nevada in the United States . I moved around a lot as a kid. My dad was in the oil business. He went to the RSM too, as did my brother who now works in the oil industry. My family has travelled with me.
I have never had any regrets going into mining. Over the years you build up experience and knowledge. Was it all planned? No, but I think you make your own luck and I have been lucky.

When did you become involved with Wolf Minerals?

I joined the company in October 2013. Humphrey Hale was the previous MD and had done a great job in identifying the opportunity in the UK, securing the option to mine this place and raising the project finance required to move the project along. We had options on the majority of the properties which needed to be purchased. Many things were in place. Humphrey is an exploration guy and recognised that a different skillset was needed to build and operate the mine. The board also felt it was important to bring in someone with different experience. We had a hand over for about three months and remain good friends.

What do you bring to the role?

I have considerable experience in developing and operating mines and have worked for the larger companies – I know what “good” looks like and recognise the effort we have to put into to acting in a safe and environmentally responsible manner. We have many neighbours and we aim to be great corporate citizens.

Why did you take on this job?

It was a job which appealed to me as it brings me back to my English roots. It’s a fantastic opportunity to build something significant from nothing. This is my third MD experience but often when you do that job you pick up someone else’s legacies which is often a challenge. For once it’s nice to start with a clean slate.

What have you been doing on site since you joined?

We’ve obtained our environmental permit and finalised all the project finance and equity required to start work on the mine. We’ve purchased the properties on site and we have started constructing the mine, the waste facility and the ore crushing and processing plant. We’re building a world class mine.

Why is tungsten so valuable?

Tungsten is tough and hard but also rare mineral which is used in many industries from digging, drilling and cutting to defence and electronics. Many governments including the UK, US and the EU have placed it on their strategic list of critical minerals.
Tungsten is a valuable mineral. As a comparison, a tonne of coal sells for $120, iron ore sells for $90 a tonne, tin goes for $22,000 a tonne but tungsten sells for $38,000 a tonne.

How much tungsten is there at the Hemerdon mine?

We’ll be taking 10 million tonnes of rock out of the ground a year for about 5,500 tonnes of tungsten concentrate (equivalent to 3,500 tonnes of tungsten). It’s about one lorry load a day. The mine has a 10 to 15-year lifespan and when in full production we’ll be producing about 3.5 per cent of the global demand. When you consider that 80 per cent of the world’s tungsten is produced by China, we will produce in the region of 20 per cent of what’s left here in Devon. This is how strategic this mine is. That makes us a major player. We’re not just digging a hole in the ground. We’re building a world class mine.

Why wasn't Hemerdon mine developed before?

Tungsten was discovered at Hemerdon in 1867 but the main periods of activity were during the First and Second World Wars.
The price of tungsten has fluctuated a lot over the years. There was a company looking at this project in the 80s but just when they were ready to start building the project the price of tungsten plummeted because Russia and the US sold off stockpiles after the Cold War. Nowadays there is a lot of demand for tungsten from the vibrator in your mobile phone to the drills you buy in the shop, loaders and industrial shaping tools. Tungsten is a hard wearing metal. As growth around the world rises, people want more stuff. And to make more stuff you need to drill, cut or shape the metal or wood that it’s made of. That’s why it’s so valuable.

What is the longevity of the mine?

With current reserves it is 10 years but we know there is more tungsten outside the planning permission area. That could add a few more years. We could potentially have an underground mine here so the prospects for this project are excellent.

When is the mine going to start?

We are constructing the project now and expect to be commissioning by the middle of next year, producing our first tungsten concentrate shortly thereafter.
What are you doing right now in term of prep work?
We’re taking the scrub away, demolishing the old Second World War tungsten processing plant and clearing space for our new processing plant. We’ve already taken eight metres off a hill for it. We’ve built access roads and our buildings will be going up in the near future.

How big will the mine be?

Two hundred metres deep, 400 metres wide and 850 metres long. Two deep holes have been drilled to 400 metres and tungsten is still there, so there may be an opportunity for an underground mine in future.

How did you raise the capital for Wolf Minerals?

Wolf is listed on the Australian stock exchange and on the UK AIM market. We had previously raised £75 million of debt from three European banks and recently raised £100 million in the equity markets. We’re fully funded.

How many jobs will the mine create?

It will have about 200 staff and has already created 125 construction jobs. The jobs are well paid for the area. We have put in place a high quality management team with a wealth of mining experience. Many of these guys have studied at the Camborne School of Mines or in London but had to leave the country because of a lack of opportunities here. This is a great opportunity for them to come back. As well as jobs the mine will benefit the community at large from the shops to the local pub to the housing market.

Is Wolf Minerals involved in other projects around the world?

This is our only project. This is all we do which is why this is so important to us. We have been a small company but now we are building a £130million mine we’re not so small any more. We need to focus on this project and build it on time and on budget.

What has the response from the community been like?

The feedback has been positive and there is recognition of the need for good jobs. We are a high standard company and focus on safety and our community and environmental obligations. The area is used to mining which helps. Imerys has been in operation since 1830, and we have evidence which shows people have been mining in this part of the world for 3,500 years.

How did you answer the environmental concerns opening a mine has created?

We’ve worked very closely with the Environment Agency. We’ve done everything they asked for. We’ve spent over £300,000 on environment monitoring studies. We monitor water levels and quality. We know every dormouse, every bat and every badger on site. We’ve created bat habitat and built £12,000 worth of eel passes to let them get under the haul road. We’ve also planted 40,000 trees and we’ve not even started mining yet. It’s part and parcel of the job. Mining is no longer allowed to leave a mess and we recognise our obligations in this regard.

What will Wolf Minerals do after the mine has been exhausted?

We will have effectively dug a large hole and created a new hill. With a mine like this you need an exit plan and we do have a final restoration concept agreed with Devon County Council. The hole will fill up with water naturally. It will be clean water and the sides will be made safe so you could imagine it becoming a pleasant lake or wildlife reserve.
The site of the waste tip will be landscaped with broad-leaf woodland on the lower slopes, heathland on the higher ground and a wetland area on top. We’ll make sure the slopes are not too steep and it blends in as much as possible within the landscape.

What has changed in the industry since you joined?

The environmental and safety standards are a lot more stringent. Fatality rates on mines have dropped dramatically. Now it’s about how many bandaids we have issued on any day. And we don’t put many bandaids on people. That’s how much it has changed.

The technology has changed a lot too. The processing plant is automated, the trucks are bigger.
The number of women in mines has increased. There are more opportunities for them and women are actively encouraged to consider a career in the mining industry.

Pay and conditions have improved too. Now it is a well paid industry.

http://www.westernmorningnews.co.uk/Chasing-Wolf-Dartmoor/story-22051773-detail/story.html