December 2006

NEWMONT MINING TRANSLOAD ASSIGNMENT UNDERSCORES COMMITMENT TO ENVIRONMENT & SAFETY

We recently provided oversight for the construction of a totally enclosed, environmentally sensitive bulk transload operation on a mining company’s property – believed to be the first time a transload facility has been built at a mining site.

We helped develop the facility to move copper concentrate between truck and rail, a vital link in an intermodal, transborder transportation solution we engineered for the client, Newmont Mining Corporation, one of the world’s largest mining companies.

The building project was part of a multiyear contract MHF Logistical Solutions (MHF-LS) was awarded by Newmont to package and transport copper concentrate – a Class 9 hazardous material – from its mine in Nevada to a smelter in Quebec. We are currently moving about 1,000 tons of concentrate each week, utilizing 50 gondola railcars from our privately owned fleet of rail equipment. Each gondola car is totally enclosed with a fiberglass cover secured for transport.

“From the outset, Newmont was adamant about protecting the environment and safety of the personnel involved in the operation and the communities traversed in the transportation program,” said Timothy Blythe, the MHF-LS business development manager who helped win the assignment. “We too have a strong commitment to the environment and safety, and that gave us a solid bond with Newmont for developing the innovative game plan.”

Adds Newmont’s Gary Kaliher, “MHF-LS has been a valuable ally for us as we began the program of moving the copper concentrate. Their on-site managers and operations personnel have been excellent additions to our team.”

The specialized transload facility, built over a 90-day period by a Newmont sub-contractor to MHF-LS specifications, can accommodate the loading of two 52-foot, 109-ton gondola cars simultaneously. The copper concentrate is brought from the mine in fully enclosed side dump trucks. The building is secured to ensure that no contaminates can be released into the air, and the material is dumped onto a loading pad. From there, a front-end loader transfers the copper concentrate into the gondola cars, which are then securely sealed for the journey northeast to Canada.

Railcars are shuttled in and out of the transload facility by trackmobile. On-site MHF-LS personnel manage the entire transloading process.

We track the shipments while en route to the Quebec site to ensure Newmont’s production schedule can be met. The Union Pacific and Canadian National Railroads transport the gondola cars to Quebec via an interchange between the lines in Chicago. Both railroads are valued partners in the overall transportation process.

We handle all border-crossing regulatory requirements.

“Our national network of permanent and temporary transload facilities is a significant advantage for our clients,” continued Blythe. “These facilities allow us to bring the benefits of rail transportation – lower costs through transportation economies of scale, plus enhanced safety – to bear, even if the client’s point of origin is not rail served.”

MHF-LS has five permanent transload facilities in the U.S. and we build temporary ones for specific projects.

Copper concentrate is a valuable commodity and each railcar we ship positively impacts Newmont’s bottom line. “We’re aware that there are financial implications for Newmont with each shipment that leaves Nevada and we make a concerted effort to keep the logistics of the operation flowing smoothly,” said Blythe.

During last summer’s construction of the transload facility, in fact, we mobilized 166 tarp-top intermodal containers to move the concentrate to Quebec. During that time, we subcontracted with a Nevada crane company to transload the tarped containers from truck to rail. During one 10-day period, we were able to package and move 4,000 tons of copper concentrate.

“Our work with Newmont is a wonderful example of how protecting the environment and ensuring worker and public safety can go hand-in-hand with commercial success,” said Blythe. “This project is a win-win for everyone.”

You can reach Timothy Blythe at 724.772.9800 ext. 5521 or tim_blythe@mhfls.com.