TEN SIGNS OF A SWINDLE

Guide for Owners, CEO s and Investors of Mining Enterprises

By Ph.D. Natalia Petrovskaya
If you are a Mediator, a Contractor or a Consultant, don't read!

Assume that you are an owner or a manager of mining and metallurgical Plant, and
you have a need to solve some complex technical problem (to develop a project of a
new Plant, a new technology, to optimize the processes, to change the equipment,
software, etc.). You can't do it yourself, because you don't have experts. By an advice
of friends you are accessing to the mediation company offering engineering services
and much other. "They will help me for sure here! It's all so serious, it's almost a
ministry!" Maybe so. But you should not relax. After all, only you are interested in a
solution of your problem. All others are only interested in your money and no one is
going to save your money. That's for sure!

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However, enough the presence of the following features to recognize an
unscrupulous contractor:

1. Easy money. Contractor shows an indifference to the final result of solving your
problem. For example, He doesn't agree to take shares of your company as a pay for
his services. Why? Securities is a normal form of payment for the person or company
that focuses on serious and long-term cooperation with you. The contractor's failure
to take your securities denotes a lack of grave intention towards your company. So,
the contractor doesn't believe in the success of your project, your company. He is not
going to seriously deal with your problem. He just wants quick easy money. Most
likely, the contractor wants to sell you a project, a technology that it has already sold
158 times (under different sauce), without dependence of whether how the decision
is suitable for your Plant, for your ore.

2. Bluff. Contractor quickly agrees to solve any your complex problem even without
requesting the necessary information on the subject matter. - "Of course, we can do it
all! Without doubt!" The Contractor easy gives a lot of promises to you. Do not be
surprised when you find a discuss of your problem on Web Forums and somebody
requests free help to solve them. There is only one conclusion: the contractor was not
originally going to really solve your problem. He hopes to get out somehow before
deadline of the project (to find one culpable).

3. Copier. Contractor doesn't have professionals with scientific degree in the staff.
But if you ask about it, the contractor promises to hire the necessary experts already
in the process of the task. The fact that specialists of engineer's level can only repeat
known solutions. Not the fact that it is suitable for your Plant. To create something
entirely new, exclusively for you - is a serious task for a doctorate, but is not a task
for an engineer. Therefore, the contractor often tries to artificially limit the scope of
solving the problem by one or two known options: "Everyone is doing it in the same
manner! Always!". And there is no liability if "everyone is doing it". It's cheap, fast
and convenient for the contractor, but it is expensive and often useless for you
eventually.

4. Bait with a great name. Contractor is trying to get you by a great name of
scientist or a famous professional, who is reportedly already agreed to participate in
the project. Some indirect proof of this is presented to you. But the well-known
scientist (pro) is not contacting with you now (on some reasons). Only a mediator
leads all negotiations and meetings. When the contract has been signed, the famous
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scientist's name is missing from the list of performers of the project by some reason.
Or his name disappears at a later stage of the project. But this is no one cares. They
in fact already spent the money. In some cases, a participation of famous person in
the project is still supported, but only as a sign in the final document. You've never
seen this person. Also, may be another version of this swindle - in the list of
performers of the project will be name (s) of other person (s), but very similar with
the great name. In this case, please contact directly with the famous person, discuss
your project and its part in the project. Often this famous person even doesn't know
about the project.

5. Bubble. Under various pretexts, Contractor is actively trying to attract to the

implementation of the project as much as possible quantity of performers and
subcontractors (often from different countries). He also clearly justifies the need to
divide the project into numerous intermediate parts and sub-parts. Contractor
justifies the need for a large quantity of experiments, analysis, tests, consultations.
Why? Indeed, in this case, it is much easier to justify the exaggerated budget of the
project and to dilute responsibility for the final result. Who is a culpable, that it didn't
work? Immediately one could not tell it. "It's been a part of the project, and it is made
with quality! Let's look at a new project, all these things can be improved!" And your
looting continues. The worse the work is done, the more contractor earns with
additional services to further improve of some things. And you feel a pity for to stop
it all, because you have already given the contractor a lot of money.

6. Dealer. Contractor initially orients you to the technologies and products of certain
brands. In this case, it is likely that the contractor is a partisan representative of these
brands of products. He is initially biased in solving of your problem, and he will not
consider all alternatives with technologies and products, which are better and
cheaper for you.

7. Poseur. On your question of "What you can offer me in my specific situation?",

Contractor says that he and his company is a well-known brand with a reputation and
history. Contractor flaunts with a huge number of diplomas, certificates and other
documents. He concentrates all your attention on the scrolls. If the contractor once
again says about the scrolls and his rich history instead of to discuss your particular
issues and real cases in a practical area, then it is a serious reason to doubt in his
competence.

8. Demagogue. Contractor avoids direct discussion of technical substance of the

draft. He avoids direct answers to your pressing technical questions. He is masked
under common arcane phrases, buzz words, pseudo-scientific formulations. "This is a
very complicated electrochemical process! I can explain it to you, but it is
excessively difficult and it takes a lot of time. You will not understand..." You can't
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win him in discuss. It's impossible! He is a sophist! Most likely, this man and his
team are technically incompetent, they don’t understand the essence of your problem.

9. Innovator. Mediator offers to you new products (equipment, reagents), but doesn't
offer to you a ready-made recipes (decisions) of its application for your Plant, for
your ore. It assumes that you will understand how to apply all those expensive new
items yourself. Very often, these "innovations" are 30-50 years old. Since that time,
there are other, better patents on the use of these products. However, the mediator
doesn't know it. If you don't succeed to get the effect from the use of this new
product in some time, then the mediator answers to your request: "Try to increase the
consumption of new reagent to 2 (5, 10, 100) times! You can also replace your other
reagents (equipment) to the new items (more expensive). We provide it all. Maybe it
will help for you." However, nobody of innovators advises reduce the consumption
of reagents, eliminate unnecessary equipment. All the rest - it is your problem.
10. Anyone who is actively contesting the features 1-9 above, the most likely is a
swindler.
To be continued.
Of course, the presence of one of these signs doesn't mean that the contractor is
unfair. To this can be quite objective reasons. But the presence of two or more signs
is a serious reason to think "Do you need this helper?"
We wish you good luck! Be careful and you will succeed.

This guide is absolutely correct for an area of minerallurgy processes. For other
mining areas it is partially correct.

© Ph.D. Natalia Petrovskaya, January 4th, 2016

nataliapetrovsky@gmail.com