Epiroc Internal Newsletter Issue 02 - JULY 2020

WORD IN THE TUNNEL

INTERNAL NEWSLETTER

July 2020
Issue #2

A Message from
Jason Smith

Dear colleagues,

We are entering week 19 (July 20th) of the We will continue with most of you (who can)
Covid-19 restrictions here in Canada and again working from home, while the rest of us and our
this is the main topic of my message in this front line warehouse, workshop, service centers
newsletter. and field service teams continue to safely work at
our and our customers' facilities.
We have entered Stage 3 of reopening here in
Ontario and in various regions the remaining Here we must continue to ensure we all follow the
workplaces can now reopen "safely." Further protocols and play our part in managing the
relaxed restrictions were also announced Canadian Covid-19 situation. I again confirm that
regarding public gatherings. We at Epiroc are those who are working from home that want to
in one of the more privileged segments, as work from the offices can contact their managers
mining was rightfully classified as essential and for the necessary arrangements.
we were allowed to continue at reduced
operational levels under our, and regional, When we look at our business after the June
protocols. results, we see a continued contraction, but with a
potential leveling out at a lower level. This will be
This enabled us to support our Customers to good if we start coming back during quarter 3, but
continue with their mining and construction/civil the immediate future still remains uncertain due to
operations to their best efforts under the new the effects of Covid-19.
protocols.

We will continue monitoring the situation and physical distancing, washing our hands well
our business to take the necessary measures to and often, wearing non-medical masks when
ensure we serve our customers and remain social distancing is not possible and especially
sustainable as an organization. isolating ourselves when we are sick.

The scorecard below indicates our local Changing the course of the pandemic
reduced business levels after June and also continues to remain our shared responsibility,
confirms the slower period since Covid-19 so let us all ensure our behaviour is correct
restrictions started in March. wherever we are, at home or at the
office/worksite.
We remain cautiously optimistic for our
immediate future and will continue to monitor I wish you all good health and thank you for
and react as our business levels and situation your efforts in our continued recovery journey, i
materializes; it is very important that we also trust you will enjoy the nice weather we
continue to focus and offer support to our are currently experiencing in Canada.
customers at all times. I repeat myself, but we
all play a role in flattening the curve by Best Summer Wishes!
reducing our physical contacts, observing
Jason Smith, General Manager

From your Business Controller: Sylvie Dumas

Well here we are, back into the full swing of summer and by far, and I mean by a major landslide, my
favourite time of year. I love everything summer. The flowers, the lakes, the sun, the heat even the
bugs. Well maybe not the bugs…..especially spiders. I hope you are all enjoying this weather as
much as I am.
Now to our Canadian results for Q2 2020 and our variable compensation. At present, our sales are
below budget in most regions and we anticipate finishing 2020 more than likely 11 to 15% short of
our target.
As you recall, Q1 VC was cancelled as an immediate action to lower costs in order to stabilize our
overhead along with a reduction in salary to prevent further cost cutting measures.
With sales now seemingly stable and costs down to acceptable levels, we are able to return to 100%
salary effective mid July for the majority of the employees.
Providing that we continue with this new trend, we should be able to maintain our full salaries for the
remainder of the year. However, we need to remain vigilant and be agile and ready for further sales
reductions in case the economy suffers another blow.
Our health officials are quick to remind us that there may be a 2nd wave of Covid so for now, we will
not pay out the little amount of Q2 VC that was earned. Instead, we will defer it and reassess at the
end of Q3. If all goes well, we will be able to pay out Q2 and Q3 together.
Please feel free to contact me should you have any questions or require further information.
Stay safe and stay healthy Epiroc Canada!

CANADA LEADING THE CHARGE

A Global First with Batteries as a Service (BaaS)

Epiroc Canada has partnered with Vale to complete the first Batteries as a Service (BaaS) agreement for
the company globally. The agreement will start in November 2020, and provide our customer with the
battery power (kilowatt hours (kWh)) to run the customer’s machines for their required production.

We are also including spare batteries to be used as the production requirements dictate. BaaS is a service
product that allows the customer to obtain the power to run their electric vehicles without spending additional
capital to do it. The batteries are supplied by Epiroc for a monthly fee based on the kWh consumed and can
be tailored to the mine’s specific production needs. This means, the customer pays for their energy usage in
the same way they currently pay for diesel to fuel their diesel engine vehicles. With the BaaS agreement,
Epiroc supplies the batteries (with full warranty) and the individual battery cooling systems for the duration of
the agreement.

Therefore, if a battery component issue occurs then Epiroc will rectify the issue, up to and including a new
battery pack if required. Some of the other features of BaaS include:

Quarterly visits to perform a full machine,battery and battery systems Rig Scan audit, as well as any
internal battery maintenance required.
Remote monitoring of the battery to confirm battery condition and performance.
In stock supply of spare battery components such as sub packs, modules etc.
Adjustment mechanisms to change the battery capacity if circumstances change in the mine for
production requirements or usage.
Ability to leverage spare batteries for multiple machines instead of one per machine, which lowers cost.
One monthly charge per machine.

Sitting Down with
PJ Phillips

Human Resources
Administrator

What is your position within Epiroc?
Human Resources Administrator

How long have you been with the company?
3 years

What are your main responsibilities?
Recruitment and selection, benefits administration, keeping LMS (Learning Management Systems)
updated, following and sharing Human Resource Management processes and principles, monthly
reporting , assigning training through competence portal, providing contracts for new hires,
promotions, and transfers.

What is the most challenging part of your role?
Booking testing appointments to accommodate employee work schedules, and getting the results
sent to site in the time frames requested.

What is your favourite part of the job?
The people. Helping and interacting with employees and managers.

What is the most important lesson you learned in your position?
Always be kind, you never know what is going on in the lives of others and it is so important to
always be kind and understanding.

What is your favourite project you ever worked on?
HR Link Implementation and transfer of well net to the Competence Portal.

ROCK DRILLING TOOLS
DIVISION CONTINUES TO

DELIVER

In recent months, we have navigated through difficult
times as an organization.

Luckily, all of our divisions stepped up to put in
additional effort and perform to the best of their
abilities under the circumstances.

For our Rock Drilling Tools division, that meant
continuing to deliver for our customers on site and
ensuring they had the tools to keep their business
moving.

Our Direct Delivery drivers made sure each machine
in the mine was properly equipped to continue
pushing production forward.

As an essential service in Canada, mining was
greenlit to continue operations and our Epiroc Canada
team proved to be especially vigilant, both in safety
and in the service provided.

While dealing with so much uncertainty in the industry,
our RDT professionals were still able to position
themselves as a source of stability for our customers.

In turn, Epiroc Canada has further solidified
ourselves as a reliable partner, even through the
toughest of times.

Great job all around!

Epiroc’s Next Generation Rig Control System (RCS 5) for Pit Vipers

In recent years, Epiroc has been expanding the capabilities of our automation systems with an increase in
productivity for our customers being the overall goal. The fifth generation of Rig Control System (RCS 5)
is the next evolutionary step toward fully autonomous mining. The system offers Machine-to-Machine
Communication, which shares real-time drill plan updates between drills.

Auto Tower Angle and Integrated Camera View are also included and remain an integral part of the
features RCS 5 offers. Whether operating from a remote location or directly on board the drill itself, the
new and improved RCS 5 system creates a user friendly experience through its intuitive main menu – the
result is better drilling and increased production.

The new design allows operators to switch between screens effortlessly while remaining focused on the
task at hand; all while working in an organized and safe environment. The Drill Plan Generator is another
valuable piece to the puzzle that helps create and edit drill plans while the Drilling Data Screen features
real-time depth and penetration rate feedback.

As new innovations like the RCS 5 keep coming in, we’re excited for what the future holds for our
autonomous Pit Viper portfolio!

A SUCCESSFUL TRIAL IN THE EAST!

Our team in Quebec recently completed a successful trial with Agnico Eagle
showcasing our Scooptram Loaders and Minetruck Underground Trucks (LHD
equipment) at the LZ5 mine in Rouyn-Noranda.

This project allowed us to display the quality of our equipment and the extensive
productivity capabilities a mine can expect when working with our team.

The Senior Management at Agnico Eagle were impressed by the performance of our
fleet as well as the attentive service they received from our project leads. Their
satisfaction has been echoed in other Agnico Eagle projects and has helped to
foster a closer relationship between our team and key players in their organization.

Honourable mentions to our team: A great job to Pierre Lavictoire for instigating
this trial and Justin Pelletier who took on a leadership role throughout the project.

The service team of Sebastien Maltais, Michael Ballard and Erik Ballard received
top marks from the customer along with our training team; Mark Kramer and Ben
Van Alstine.

The Certiq integration was lead successfully by Steve Germain and Andrew
Samuels.

We expect this news will drive further business in a region that is back in the
process of heating up!

ROCK EXPLORATION AND
GROUND SUPPORT UPDATES

March 2 Vol. 56

We have made changes to our facilities in Canada as part of the
ongoing Excellerate! program, which is designed to improve both
availability of parts and delivery times to customers.

Part of this initiative involved converting our North Bay production
facility into a distribution center (DC). The Rock Exploration product
line will now be consolidated and produced in the Montreal location of
Fordia Powered by Epiroc. The Ground Support production will now
occur in Sweden.

The transition will be seamless and pending orders will not be
negatively impacted. We will continue to provide Swellex to our
customers and the quality will remain the same.

This action will allow us to continue an increase in efficiency and will
also ensure we are well-positioned for the future. We will aim to
reduce production costs, leverage synergies and create a more
competitive environment for our customers while delivering the same
world-class products.

Mobilaris (MMI) at
Lalor Mine

MOBILARIS (MMI) MAKING A DIFFERENCE

Mobilaris Mining Intelligence (MMI) is making its mark at the Lalor Mine in Snow Lake, MB. The mine
recently implemented Mobilaris Situational Awareness, which allows for a comprehensive overview of
operations with a 3D map. They also opted for the Mobilaris Scheduler tool; the first implementation of its
kind in Canada.
MMI is a digital technology designed to track people and assets in real time, which allows for an
organized approach to productivity.
Currently, Lalor has 100 machines tagged as part of this initiative. The capability of the MMI system has
been strengthened by the HP Aruba Wifi communication infrastructure on site. The MMI system was
commissioned during the first week of June. Shortly after introducing the system, Lalor began utilizing
short interval control to improve their mucking performance.To run the short interval control system, Lalor
employs two operators running 7 days a week. The coordinators currently schedule shift activities in the
mine (production, development and construction) and monitor performance to plan for future adjustments.
With previous successes in the region, this system is sure to deliver more outstanding results moving
forward!

CUSTOMER LIFECYCLE MANAGEMENT (CLM)

Our Canadian Customer Center has adopted a Customer Lifecycle Management (CLM) system,
which acts as a tool for our sales team to manage their accounts and follow up on new sales
opportunities.

This system will generate reports to track performance and will help identify new business
prospects in each region. As an account-centric program, it allows users to assign tasks to their
team, collaborate on shared projects and track sales trends (among many other functions).

The system has been successfully integrated with Outlook, so calendar updates and ongoing
activities/contacts are synchronized. If you need assistance with the Outlook Add On, please
contact the Communications team to
be set up.

The Communications team will continue to conduct training sessions on the functions of the
system. If you have any questions while working in CLM you can contact:
([email protected] or [email protected]).

Quick tips:

Save the CLM link to your favourites, make sure to use Google Chrome as your browser –
the system will not work properly on other browsers.
A best practice is to work within the Dashboards (Customer Dashboard, Sales Manager
Dashboard and Sales Rep Dashboard) – you can find all your accounts, activities and
opportunities in this section.
Work within an account – when entering the Dashboard, search for the account you want to
work in and select it from the drop down menu.

Epiroc Canada Helps Develop and Unveil
New Hudbay Lalor Shop

At the Lalor Mine in Snow Lake, Manitoba, our Mid- Some of these achievements in Canada include:
West team has participated in the design and
development of a new world-class service shop. In The first Minetruck MT6020 in North America
total, 18 Epiroc employees have helped shape the The first Minetruck MT65 in North America
culture of this underground area, which is one of the The first Scooptram ST18 fleet delivered in
largest streamlined and reliability-oriented shops on Canada
the continent. The first MD20 Rock Drill in Canada
One of the largest users of ARV in Canada
This particular site was built for the maintenance of Lalor is used as a model for developing Certiq
large machines like the Minetruck MT65, Minetruck globally
MT42, Scooptram ST14 and Scooptram ST18. While First Mobilaris roll out in Canada
working with this equipment, our team has completed
the Original Equipment Manufacturer (OEM) We are extremely proud of the work the team has
recommended maintenance while continuously done to bring these many “firsts” to the market in
improving on current practices and surpassing Canada; this partnership has culminated with one
expectations. This opportunity has further of the largest service agreements in the country.
strengthened our partnership with Hudbay and
allowed us to achieve significant milestones in our Well done!
company’s global operations.

WESTERN PULSE MEETINGS

In Western Canada, the local regional management team has been getting
together for weekly pulse calls via WebEX to share updates on business as
well as get in a few laughs over video wherever possible. As you can see
from above, Al and Wayne almost look like they were taking a brief cat nap
in a recent call!
This has been a really great opportunity for us all to stay connected through
COVID-19 and talk through our key business opportunities in the
region. We do our best to limit these calls to an hour per week and I think
they are helping to keep the morale up within the team in these challenging
times.
Jamie Charland

BOLTEC PUMPABLE RESIN SYSTEM OFFERS SOLUTIONS FOR VALE AT VOISEY'S BAY

At Vale’s remote fly in/fly out site in Labrador, the Epiroc team was tasked with finding a solution to
issues with rock reinforcement. The mine, which specializes in extracting nickel, cobalt and copper was
experiencing significant fracturing in their ground condition; making this procedure especially difficult.
The resin rebar technology was facing challenges as the freshly drilled holes would often collapse
before the bolt could be inserted. This inevitably put ground reinforcement behind schedule. Voisey’s
Bay turned to Swellex installation to try to improve cycle time. This allowed the rounds to be bolted
faster, but it was a temporary fix which required the area to be bolted permanently at a later date.
Eventually, our Pumpable Resin Technology was selected as the best way to solve the problem; this
solution utilizes a two-part epoxy system mounted on our Boltec M, which mixes directly before injection
for a quicker setting time. It was able to install faster than Swellex, which is already a quick process.
It offers flexibility with either a 2 step, drill then bolt with hollow bit process, or a self-drilling anchor with
a sacrificial bit as a 1 step process. Voisey’s Bay chose a sacrificial bit for a 1 step process (without
extracting the drill before inserting the bolt, the hole can’t collapse.)
In the end, Pumpable resin technology has a higher average success rate when bolts are tested under
load than conventional (resin rebar) systems. Voisey’s Bay is now using this system on site with their
fleet of Boltecs.
Great work to our team across Canada for their collaborative efforts to get the job done!

External Audit

Epiroc Canada Makes the Grade!

In early July, the Mississauga and Lively branches were audited remotely by a third party;
our global registrar DNV-GL.

The process lasted for two days, with a focus on the following areas:

The involvement/engagement of management and employees in our Integrated
Management System (IMS).      
Purchasing processes.
Management of Safety, Health, Environment and Quality.   
Legal aspects to our business.
Sales and Customer Service departments.       
Logistics and warehouse operations.
Product, service provision & outsourcing.    
Change management; specifically the MORE and Excellerate! programs.

Jason Smith, General Manager, opened the meeting with a safety share and an overview of
our business in Canada. The auditors were impressed by our team’s involvement in the IMS.
Thanks to everyone involved, the audit went well; the closing remarks were:
    

No Major or Minor Non-Conformity     
Two observations for review     
Three opportunities for improvement

Epiroc Safety Day (April 28, 2020)

Due to COVID-19, we were unable to arrange a traditional safety day meeting in our
branches across Canada this year. Our office employees have been working from home
according to quarantine safety regulations as of March 14, 2020 and the shops and
warehouses continued to operate while following Canadian health authority guidelines.
Under the circumstances, we decided to utilize WebEx for the meeting session with our
Canadian CC employees. Jason Smith, General Manager, welcomed everyone and
made the introductory statements.
"April 28 – is the National Day of Mourning within Canada for workers who have been
killed, injured or suffered illness as a result of work-related incidents. 1027 workplace
fatalities were recorded in Canada during 2018 (76 more vs 2017) – 27 were young
workers between the age of 15 – 24. We remain committed to protect our workers and
prevent further workplace tragedies," said Jason Smith, General Manager.
Even when we are away from each other we still remain strongly connected, inspired
and united. Safety is our top priority and Safety Day is very important to us.Topics
covered included “The influence of human factors on our personal safety decision
making (related to SafeStart) and Live Work Elimination.”
Gholamreza Rezaei

The Open Pit: Epiroc Canada’s Wellness Blog

This blog was designed as an outlet where employees can anonymously share their
stories in a safe environment within the workplace.

There is an unfortunate stigma surrounding “Mental Health,” and we hope that by
generating these discussions this will create an environment of acceptance. Mental
Health and well-being should be made a part of our daily lives. The more comfortable
people are with it, relating to it, being aware of the signs, the less shame or negativity
individuals may feel regarding the matter and will be encouraged to seek help.

We hope to encourage employees to share their experiences with the goal of helping
others, as well as shedding some light on Mental Health and Wellness.

The Open Pit blog also hosts helpful articles monthly on various topics ranging from
health to finance provided through our Employee Assistance Program (Lifeworks).

Visit The Open Pit: https://mcahrsupport.wixsite.com/theopenpit , It can also
be found on SharePoint under the HR Homepage.

Blog Features and Navigation

The Homepage displays the latest blogs that have been posted. You are able to like
and share each post.

The Share Your Story tab directs you to where you are able to send in your story.
When you submit your story, the only employees who can view your identity is your
HR Team. Once received, a team member from HR will post your story on the blog
and your identity will be kept completely anonymous.

The Blog tab displays all of the posts that have been uploaded to The Open Pit.

With the Subscribe tab, you can navigate to an area that will allow you to enter your
email address. This function will enable you to stay- up-to-date with the latest
information posted on the Blog. You will be notified each time new information is
uploaded.

The Get Help tab provides various support lines and websites, including our
company’s Speak Up hotline and website. The COVID-19 tab includes various links to
websites providing information and support related to the Coronavirus pandemic.

We hope you enjoy the blog and find it to be a helpful tool, outlet and resource for
your Mental Health and overall well-being.

Share Your Stories

Do you have an exciting story from site? A great picture?
Our ongoing mission is to continue to grow our social media following and overall
engagement. If you have something you would like to share, please send it to the
Communications Department, [email protected] (with a brief
description if necessary).
Stories about on-site experiences, exciting projects and new hobbies (possibly
during quarantine) are encouraged and the most creative submissions will be
included in our internal newsletter and/or added to SharePoint Home (with full
credit to the photographer). Please do not include recognizable customer site
landmarks in photos unless you receive written permission. If there are non-Epiroc
employees included in your pictures, we will require their written consent.
A big thanks to the team members who have been sending in their photos; we are
looking forward to more great content throughout the summer!

The Point of SharePoint

SharePoint is the area where all of our internal documentation is located. This is the
first place to navigate through when looking for templates, procedures, files etc.This
hub allows users to share and update documents with their team and contains
additional information such as “The way we do things’, which outlines overall company
policies.
SharePoint is currently set as the homepage on Internet Explorer. You can access the
Canadian page by clicking the “Local Sites” tab at the top of the screen. This page
includes recent news and company updates regarding operations in Canada. Once
you have arrived at the Canada homepage, the tabs on the left side of the screen
allow you to access the following areas:

If you require further training on the functions in SharePoint, please contact the
Communications Department.