Canadian Mining Journal October 2014

CANADIAN Mining Journal c

a

n

a

d

a

’

s

f

i

r

s

t

m

i

n

i

n

g

p

u

b

l

i

c

a

t

i

o

n

October 2014

www.canadianminingjournal.com

Spreading

THE WORD

Goldcorp’s Éléonore Mine in Quebec is ‘the place’ to work

MINE RUNNER

1.519.599.2015 www.rockbreaker.com

35 ELGIN STREET, NORTH THORNBURY, ONTARIO CANADA, N0H 2P0

Departments 5 Editorial

This month Editor Russell Noble takes a whimsical look at what it’s like to be driven to near insanity by the swarms of insects that crews must endure while working at remote sites.

6 Investing

Columnist Ned Goodman talks about money and the job situation.

9 Law

Norton Rose Fulbright Canada’s Crae Garrett and Jean-Philipe Buteau explain Quebec’s Plan Nord program in detail.

CANADIAN Mining Journal CONTENTS

MINING IN QUEBEC

10

Goldcorp goes to great lengths to help ensure that its Éléonore Mine in northern Quebec meets high standards both in terms of production and accommodations.

44 Leadership

Correspondent Carl Friesen discusses why companies need to offer more than mining skills when working on projects in foreign countries.

48 Company Profile

Yokohama Tire (Canada) Inc is the subject of this month’s Company Profile.

52 In My Mine(d)

Doug Morrison, President of the Centre for Excellence in Mining Innovations (CEMI) of Sudbury talks about the organization and its mandate to develop a comprehensive, multi-disciplinary approach to making mining a safer and environmentally friendly industry.

54 Unearthing Trends

A regular column by Ernst & Young LLP, Vancouver.

Renard Mine 38 Stornoway’s continues on its way to becoming Quebec’s first Diamond mine.

transitions its 16 IAMGOLD Westwood project from

a development site into a working mine with an expected 19-year mine life.

EQUIPMENT MAINT E N A N C E & R E PA I R

E Q U I P M E N T M A I N T E N A N C E & R E PA I R CANADIAN Mining Journal c

a

n

a

d

a

’

s

f

i

r

s

t

m

i

n

i

n

g

p

u

b

l

i

c

a

t

i

o

n

October 2014

www.canadianminingjournal.com

Spreading

THE WORD

ABOUT THE COVER This month’s cover shows underground work at Goldcorp’s Éléonore Mine in the James Bay region in northern Quebec.

S LICK SOLUTIO Answers to help keep machines performing well

NS

A special 16-page section in the middle of the magazine features articles designed to help owners and operators of heavy mining equipment keep the machines running and performing as specified.

For More Information Goldcorp’s Éléonore Mine in Quebec is ‘the place’ to work

CMJ2014_Oct.indd 1

2014-09-26 11:36 AM

Coming in November

Canadian Mining Journal will proudly present its annual Buyers’ Guide; a comprehensive list of Products & Services specifically geared to the mining industry.

Please visit www.canadianminingjournal.com for regular updates on what's happening with Canadian mining companies and their personnel both here and abroad. A digital version of the magazine is also available at www.digital.canadianminingjournal.com

www.canadianminingjournal.com October 2014 • Canadian Mining Journal |

3

WE COULD HAVE USED THIS SPACE TO TALK ABOUT OUR SUCCESS, BUT WE’D RATHER TALK ABOUT YOURS.

ENGINEERS: MINING • MECHANICAL • ELECTRICAL GEOTECHNICAL • ENVIRONMENTAL METALLURGICAL

GEOLOGISTS:

We recognize it takes world-class people to run world-class mines. When you work with us, you’re part of a growing community of skilled professionals committed to pioneering advances in modern, sustainable mining.

Together, Creating Sustainable Value.

PRODUCTION • EXPLORATION

BUSINESS SUPPORT: ACCOUNTING • FINANCE HR • SAFETY • SUSTAINABILITY PROJECT SUPPORT & MANAGEMENT

NYSE: GG | TSX: G 3

Join us.

goldcorp.com/careers

CANADIAN Mining Journal October 2014 Vol. 135 — No. 8 80 Valleybrook Drive, Toronto, Ontario M3B 2S9 Tel. (416) 442-5600 Fax (416) 510-5138 www.canadianminingjournal.com Editor Russell B. Noble 416 510-6742 rnoble@canadianminingjournal.com Field Editor Marilyn Scales 613-270-0213 mscales@canadianminingjournal.com Art Director Mark Ryan

Production Manager Steve Hofmann

Print Production Manager Phyllis Wright Circulation Manager Cindi Holder 416 442-5600, ext. 3544 cholder@bizinfogroup.ca Publisher Robert Seagraves 416 510-6891 rseagraves@canadianminingjournal.com Sales Western Canada, Western U.S.A. and Quebec Joelle Glasroth 416-510-5245 jglasroth@canadianminingjournal.com Toll Free Canada: 1-800-268-7742 ext 6891 or 5245 Toll Free USA: 1-800-387-0273 ext 6891 or 5245 Group Publisher Anthony Vaccaro

President Vice-president

Bruce Creighton Alex Papanou Established 1882 Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by Business Information Group L.P. BIG is located at 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Phone (416) 442-5600.

Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved.

The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Russell Noble at 416-510-6742.

Subscriptions — Canada: $47.95 per year; $76.95 for two years. USA: US$60.95 per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add GST and Provincial tax where necessary.GST registration # 809744071RT001.

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374; Fax: 416-442-2191; E-mail: privacy officer@businessinformationgroup.ca; Mail to: Privacy Officer, Business Information Group, 80 Valleybrook Dr., Toronto, ON, M3B 2S9.

Publications Mail Agreement #40069240. PAP Registration No. 11000. We acknowledge the financial support of the Government of Canada through the Publication Assistance Program towards our mailing costs. Return undeliverable Canadian addresses to: Circulation Dept., Canadian Mining Journal, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. E-mail: bigcirculation@bizinfogroup.ca Canada Post: Publications Mail Agreement PM40069240. Please forward Forms 29B and 67B to 80,Valleybrook, Toronto, ON M3B 2S9.

Canadian Mining Journal, USPS 752-250. US office of publication: 2221 Niagara Falls Blvd., Niagara Falls, NY 14304-5709. Periodicals Postage Paid at Niagara Falls, NY. US postmaster: Send address changes to Canadian Mining Journal, PO Box 1118, Niagara Falls NY 14304.

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs.

Canadian Business Press Indexed by Canadian Business Periodicals Index

Editorial

Bugged at work

By Russell Noble

T

he word “Tinnitus,” even with “tin” in its name, has nothing to do with mining. In fact, it’s a medical term for “humming” or “ringing” in the ear but at this time of year, I suppose it does become a medical issue of epidemic proportions for the mining industry too, particularly for those working in the field.

Because mining and exploration are both in full swing during the summer and early fall, exposure to whirling drills and other rotating machinery has a direct impact on the hearing of the men and women working in close proximity to equipment.

But there’s also the ‘humming’ from insects and other flying nuisances that make working in the field all that more challenging.

For those of you who have experienced the unrelentless onslaught of bugs welcoming new blood in camp, you can relate to just how difficult the working conditions can be thanks to the constant bombardment of bites and stings.

No matter how much protective clothing one wears, the humming and buzzing can be a major distraction and in one case I experienced in Yukon a few years ago, it can be mind altering.

It can drive a sane person ‘nuts,’ and in the case I just mentioned, the individual had to be removed by helicopter from a remote site because of an anxiety attack caused by the constant presence of insects.

As we’ve all heard, even hardier animals such as bears, wolves and gigantic moose can be driven to near insanity by swarms of miniscule combatants. The phrase ‘Strength in Numbers’ has never been truer. A frenzy of flies can bring the hardiest of four-legged animals to its knees, and the two-legged variety is that much easier.

In any event, working in the field is far more difficult than many can imagine and it’s a credit to those on the front line

Working in the field often requires staff to wear protective clothing.

of mining for what they put up with for the sake of the industry, and a paycheque.

Mind you, many in the field right now, particularly those first-time geology students working in swamps and marshes or equally nasty places, are probably saying to themselves “no amount of money is worth this” because, like I said earlier, insects can drive you nuts.

However, without advanced geological exploration, most of today’s mines wouldn’t exist and the industry should be thankful for all of the ‘nuts’ out there who are determined to make that next discovery.

Finding the “Mother Load” is in every geologist’s make up and I bet that many of those sitting comfortably behind their Bay Street desks at this very moment during “field” season secretly wish they were in a camp somewhere anxiously awaiting core to be brought up and cut and boxed for a closer look.

It’s this anticipation that gets the adrenaline flowing and there’s nothing more exciting than wetting a section of core and having a profile of the once unknown confirm positive.

Unlike other professions, mining is still a hit-and-miss business and even with advances in exploration technology, the odds for a miss are still there and will never go away.

Kind of like the bugs at work.

CMJ

October 2014 • Canadian Mining Journal |

5

Investing

Botox and free manure Ned Goodman is President and Chief Executive Officer of Dundee Corporation

By Ned Goodman

I

n August 2010 we heard from Alan Greenspan, the then Chairman of the U.S. Federal Reserve, that “The problem we now face is the most extraordinary financial crisis ever seen or read about.”

In 2011, a book by Peter Tanous and Jeff Cox was written to enlighten us that we were about to face the worst financial disaster in American history – “a financial Armageddon.” They also told us that, “The U.S. Treasury will shift its printing presses into high gear as it churns out billions of dollars to cover debts, which will eventually lead to “soaring inflation of an order not seen since the 1970s.”

Along the way Ben Bernanke took over the Federal Reserve and told us not to worry, he had it totally under control by bringing interest rates down to zero (ZIRP) and printing billions of dollars to cover the borrowing capacity that was needed to keep the United States and its banking community in good shape; and he did it while providing the warm feeling for investors to keep the stock market in a rising mode from 2009 to today.

Then, more recently, along came another Chairman of the U.S. Federal Reserve – Janet Yellen – and now the market is looking for Dow 20,000, and she carries the nickname of “Fairy Godmother of the Bull Market.” allowing most U.S. investors to get used to reaping great gains after the head of the Federal Reserve spoke, especially at Jackson Hole in Wyoming where the Federal Reserve 6 | Canadian Mining Journal • October 2014

has held its “Economic Symposium” ever since Paul Volcker was its Chairman in the 1970s – he liked the fishing.

In 2007, “Helicopter” Ben Bernanke stated that the Fed “stands to take additional action to stabilize the market and the Dow shot up by 199 points. In 2008, Bernanke introduced zero interest rates (ZIRP) and the Dow jumped 197 points.

In 2010, Bernanke only had to hint that Quantitative Easing #2 was on the way and the Dow, once again, went up – this time by 164 points.

Those investors who were able to act quickly after his speech were able to bank a 20% return over the balance of the year to 2011.

And then, in 2011, Bernanke did not say anything, but he did hint that unemployment was too high and that he would do whatever he could to try to reduce it; and guess what? Notwithstanding that he did nothing about unemployment, the Dow went up another 134 points.

Recently it was Janet Yellen’s turn to spend a few days at Jackson Hole in Wyoming and in her opening speech “Re-evaluating Labour Market Dynamics” she acknowledged that the stock market is sitting at all-time highs, but the labour market is still not very happy.

She did not make any promises or commit herself to do anything about either the stock market or the labour market, other than keeping interest rates very low a while longer. She said that,

“Monetary policy must be conducted in a pragmatic manner that relies not on any particular indicator or model, but instead should reflect an on-going assessment of a wide range of information in the context of our ever-evolving understanding of the economy.”

Bernanke never told us anything like that, and maybe that was his stock market magic bullet. Mrs. Yellen did admit a small negative about the job market, saying that it still is in trouble; five years after the recession began its decline “the labour market has yet to fully recover” and “people that are employed have seen a pitiful increase in wages,” allowing that “over the past several years, wage inflation has averaged about 2 per cent” and that “there has been little evidence of any broad-based acceleration in either wages or compensation” which she recently called, “worker discouragement and a still-substantial level of long-term unemployment.”

It’s hard to blame “discouraged workers” for not enjoying their jobs at low wages while watching the stock market make higher and higher prices as a result of the Federal Reserve’s continuous printing of money and the creation of a “Botox Economy.”

The best comment I recently read on that topic was that it was easy to believe that CEOs, banks, and shareholders were coming up roses, while the working middle class folk were making the manure that made those roses grow.

CMJ www.canadianminingjournal.com

COMPLETE CUT RESISTANCE

KNIT CR5

4544

Nitrile-coated CE Level 5 cut-resistant palm and impact protection

WORK FASTER. WORK SAFER. WORK CLEANER.™ US: 800.222.4296 CANADA: 877.278.5822

WWW.MECHANIXWEAR.CA #mechanix

Law and Mining in Quebec

Expansion Explained A look at what Plan Nord is all about

By Crae Garrett and Jean-Philippe Buteau

O

n June 4, 2014, the Province of Québec, led by the Québec Liberal government, announced the revival of the Plan Nord, in what is meant to be an enhanced version.

The Plan Nord was originally introduced in 2011 as a longterm program for the economic and social development of the territory situated north of the 49th parallel.

With more than C$80 billion in public and private investments over a 25-year period, the Plan Nord was seen as one of the larger multi-generational projects the Province of Québec has ever seen.

After a complete halt and a subsequent rebrand by the Parti Québécois further to its election in September of 2012, the Plan Nord has been put back on track by the Liberals via their first new budget, despite a series of measures to address the Province’s deficit.

The new Plan Nord is articulated around the following key items, all part of the 2014-15 budget: • Creation of Comité ministériel du Plan Nord, a newly created committee, to oversee the implementation of the Plan Nord.

Such Comité will be supported by the Secrétariat au Plan Nord until the Société du Plan Nord is created as a government corporation responsible for coordinating the territory’s development in consultation with all partners, including local and Aboriginal communities to ensure their support.

• Clear commitment of the Government to have the Plan Nord deployed with the participation of local and Aboriginal communities and with sustainable development in mind.

• Creation of the Northern Plan Fund with a C$63 million budget for 2014-2015 to finance major work on road infrastructure in the Plan Nord territory, including the extension of Highway 138 and the repair of Highway 389 in the CôteNord region and the James Bay Highway. The fund is expected to be financed by tax spinoffs generated from mining, energy and public infrastructure projects of the Plan 8 | Canadian Mining Journal • October 2014

2012

Nord. The Government plans to contribute approximately C$2 billion between 2014 and 2035.

• Creation of Capital Mines Hydrocarbures, a C$1 billion fund managed by Ressources Québec (a subsidiary of Investissement Québec) which will acquire equity interests in companies extracting mineral substances in Québec.

• Up to $20 million to be invested by the Government for the completion of a feasibility study, in collaboration with private partners, for a multi-user railway from Sept-Iles to the Labrador Trough to open up the iron-ore-rich region and www.canadianminingjournal.com

Law and Mining in Quebec

Crae Garrett is a partner in Norton Rose Fulbright’s Calgary office. Jean-Philippe Buteau is a partner in Norton Rose Fulbright’s Québec office.

provide the transportation infrastructure necessary to develop several iron ore projects in the area.

• Establishment of an interministerial committee to ensure the fast supply of natural gas and liquefied natural gas to the Côte-Nord region, by sea and land rather than via the construction of a pipeline. The review process could be conducted through a fast-track review process by the Bureau d’audiences publiques sur l’environnement (BAPE).

• $100 million to be invested in educational infrastructure upgrades and training programs for residents of the north, including C$10 million for the training of skilled workers.

• The current tax regime remains mostly unchanged to restore industry and investor confidence by ensuring the rules are favourable, stable and foreseeable.

• Revival of the Québec Tourism Strategy North of the 49th Parallel which will benefit from a C$3.2 million budget to develop northern Quebec as a word-class northern destination.

• $1.1 billion to be invested by Hyrdo-Québec between 2016 and 2018 in the transmission line between the Chamouchouane substation in the Saguenay region and the Bout-de-l’Île substation in the Montréal area The 2014-15 budget clearly confirms both that the new Government sees the mining industry as a partner and a key player of its economic growth, and that it is cognisant of the capital investment challenges that will doubtless be of concern to potential investors looking to participate in developing the largely untapped potential of northern Québec.

Even if the scope and depth of the new Plan Nord remain to be confirmed, it is already seen as a positive change by the mining industry which has suffered, over the last years, from rough market conditions and changing rules.

As we can expect four years of political stability in Québec, there’s every hope the new Plan Nord can deploy itself to the fullest extent possible for the benefit of both the mining companies and the population of Québec.

CMJ

October 2014 • Canadian Mining Journal |

9

| Mining in Quebec

10 | Canadian Mining Journal • October 2014

www.canadianminingjournal.com

A five-star

GOLD MINE Goldcorp goes all out to make its new mine a great place to work

By Eastern Correspondent D’Arcy Jenish

Martin Descoteaux, mechanic.

October 2014 • Canadian Mining Journal |

11

| Mining in Quebec

Réal Laliberté, mechanic.

G

uy Belleau acquired a passion for geology as a youth fishing the rivers and streams around his home town of Lévis on the south shore of the St. Lawrence, directly opposite Quebec City.

When the fish weren’t biting, Belleau studied the shoreline rocks, hoping he might stumble upon embedded gold.

“The rocks were always on my mind,” he says. “And geology has been in my blood ever since.”

That youthful passion led to a career as a mining engineer and jobs at mines in Val d’Or, Abitibi, Mattagami, Chibougamou and Newfoundland, though none quite compared, in scale or personal satisfaction, with his current position as general manager of Goldcorp Inc.’s Éléonore Mine in the James Bay region of northern Québec. Éléonore is one of three mines that Vancouver-based Goldcorp

12 | Canadian Mining Journal • October 2014

is bringing into production this year and, according to the corporate website, it is “a key component of our next generation of growth projects.”

The company expects to produce 40,000 to 60,000 ounces of gold at Éléonore by year end and the operation has been designed to yield between 575,000 and 625,000 ounces of low-cost gold annually (following ramp-up to full capacity expected in H1 2018) and process 7,000 tonnes of ore per day.

Belleau has been working at the site, located some 400km by road, but 200km by plane, east of the Cree coastal community of Wemindji, since the fall of November, 2009, three years after Goldcorp acquired the property from Virginia Mines, the Quebec City-based junior company that discovered what proved to be a vast deposit. And with construction nearing completion, Belleau could hardly wait to get into production.

www.canadianminingjournal.com

“After the past five years of thinking about a world-class gold mine operation, of going through the concept, the design and the permitting, through the hiring and the construction, it’s coming,” he says. “We can smell it. We can almost touch gold.”

Goldcorp has invested about $1.8 billion into a mine that has megaproject written all over it. The company started in November, 2009 with an advanced exploration camp which consisted of several portable trailers that served as office space and bunkhouses for the staff. Construction began in February 2011 after Goldcorp had received all the necessary permits from the Quebec government and had signed a collaboration agreement with the Cree Nation of Wemindji and the broader Cree Nation Government.

Initially the company had to move materials and supplies to the site by barges in the summer and ice roads in the winter.

Since then, Goldcorp has built a 70-kilometre all-weather road that connects the mine site to a Hydro-Quebec road that terminates at a dam on the Opinaca Reservoir, and the company also erected a power line adjacent to the road.

The road will be used to transport equipment and supplies, but the company has also built a fully staffed airport at the mine site and employees will be flown in from Rouyn-Noranda, Montreal, Chibougamou and Wemindji on Dash 8 turboprops with a capacity of 39 passengers. “It’s one of the busier airports in the province,” says Belleau.

Throughout 2014, the airport has been handling 40 to 70 flights per week as the company shuttled construction crews in and out. At any one time, there have been up to 1,400 workers employed around the clock, the camp has grown to 950 rooms,

A closer look at some of the main structures at the mine.

each with two beds, and by the end of August the cafeteria had served one million meals.

However, Belleau notes that Goldcorp has gone the extra mile to ensure that workers enjoy comfortable accommodations and good food.

“We’ve raised the bar,” he says. “The rooms are like you get at a five-star hotel. You’ve got a 42-inch flat screen TV in each one with movies on demand and all the channels in French and English that they watch at home. We have a five-week rotating menu. In other words, what you eat tonight, you won’t see for another five weeks.”

October 2014 • Canadian Mining Journal |

13

| Mining in Quebec Bertie-John Georgekish, rock cutter.

Stéphanie Fitzgerald, environmental trainee and Gabriel Damphousse, environmental supervisor.

The mine will create 2,000 jobs in 2014 and 1200 in 2015 with 700 people full time at the site. Workers will be housed two to a room, but their shifts are staggered so that only one person is occupying a room at any given time. They will work seven days straight, followed by seven days off, meaning that they will have a total of six months per year at home, not including four weeks holidays.

As well, the flights in and out are relatively short; one hour from Chibougamou, one hour and 20 minutes from RouynNoranda and one hour and 40 minutes from Montreal.

“You finish your days in and, bang, you can be home having a beer with your wife in under two hours,” says Belleau.

Darren Moore, truck operator

Goldcorp has also forged a healthy partnership with the Cree governments and the company has already hired and trained 305 Cree workers at the mine.

Some are working underground, others in the mill and still others in the cafeteria or the janitorial services department but the company has developed special training programs, both onsite and off, that allow aboriginal employees to start at entry level positions and advance to sophisticated mining jobs.

“We have people who started washing dishes in the cafeteria and now they are key underground operators,” says Belleau.

By early September, the company had sunk a ramp from surface to a depth of 800 metres while the production shaft had been Jessica Frigon, mining technician.

14 | Canadian Mining Journal • October 2014

www.canadianminingjournal.com

Gordon Asquabaneskum, heavy equipment operator.

sunk to 945 metres and was still about a year from completion.

Goldcorp was set to begin mining the high-grade vein deposits on three fronts and at depths of 350 metres, 400 metres and 650 metres.

“We will go down to at least 1,500 metres one day and the deposit is open at depth,” Belleau says. “We don’t know where it’s going to go beyond that.”

At the same time, Goldcorp holds a very large land position around the Éléonore Mine and will be pursuing an aggressive exploration program in years to come.

“We believe this is just the beginning,” says Belleau. “We’re just scratching the surface. We’re putting a lot of money into exploration and I’m quite confident that in a couple of years we’ll be talking about the next mine.”

In the meantime, though, the focus is on starting and ramping up production at Éléonore.

“We’re putting in world-class infrastructure,” he says. “We’re using the latest technology underground and in the plant. This is a fully mechanized operation and nobody will lift anything. We’re putting a lot of emphasis on our people, on safety and on partnerships. That leads to success in terms of productivity, efficiency and cost.”

CMJ Wayne Gilpin, truck driver.

October 2014 • Canadian Mining Journal |

15

| Mining in Quebec

DEVOTION PAYS OFF Decades of work rewarded with operating mine

By Russell Noble

16 | Canadian Mining Journal • October 2014

T

here’s nothing more satisfying than advancing from the ‘development’ to the ‘production’ stage of a project and that’s exactly what IAMGOLD of Toronto experienced in July 2014 now that its Westwood Mine in Quebec has reached commercial production.

Located in the Abitibi region of the province approximately 420km northwest of Montreal and accessible year-round via paved roads, the mine is situated on a property that covers 1,925 hectares and contains 120 titles, one mining lease, one surface lease and three tailings leases.

The Westwood Project is in Bousquet Township, about 40km east of Rouyn-Noranda and 80km west of Val d’Or, a 120-km stretch in the southwestern part of the province also known for such producing and past-producing mines such as: Mouska, Doyon,

www.canadianminingjournal.com

Underground jumbo drills ore during production.

Bousquet, LaRond and Lapa. The region is well serviced with the operations teams are achieving “excellent” development rates high-speed internet communications, hydro-electric power, of over 1,400m per month.

From the initiation of exploration in 2002 at Westwood to water, and an active railway line just 10km south of the December 2013, Stothart says a total of 540,484m of diamond Westwood Project.

Add to these features an expectation to produce on average drilling was completed during which time the overall Proven and over 180,000 ounces of gold from the Westwood Mine over an Probable Reserves were 940,000 tonnes, 11.5 g/t, containing expected 19-year mine life and it’s no wonder IAMGOLD was 348,000 ounces of gold, Measured and Indicated Resources of pleased to recently announce that “Westwood is a pivotal achieve- 1,394,000 tonnes, 11/9 g/t, containing 533,000 ounces of gold, ment for the company” and why Company President and CEO and Inferred Resources of 9,589,000 tonnes, 10.6 g/t, containing Steve Letwin says that by hoisting ore at an average of 1,075 3,258,000 ounces of gold.

The overall resource estimate has been very stable and the tonnes per day for the first 30 days of July, the project is clearly considered an operating mine and will no longer be accounted for as a development project.

In fact, Letwin says that moving from development into production was significant in many ways because it further establishes the company’s presence in the Abitibi region by adding gold totals from its 30-year legacy of underground mining in Northern Quebec.

IAMGOLD is well positioned to be one of the major players in Quebec and as Gordon Stothart, the company’s Chief Operation Officer says: “Transitioning from the successful operational history of the Doyon and Mouska mines, we expect this region to produce in the range of 100,000 to 120,000 ounces of gold for us this year, including the final production from Mouska and both commercial and pre-commercial producOre being loaded tion from Westwood.” into a truck headed for the surface.

In support of those expectations, Stothart said

October 2014 • Canadian Mining Journal |

17

| Mining in Quebec

Hoist room at Westwood.

average grade has steadily increased. This has given the management team a high degree of confidence in the future of this mine.

IAMGOLD expects to produce a LOM average of 165,000 to 180,000 ounces of gold per year at an average cash cost of between $630 and $690 per ounce produced.

With gold trading at nearly twice that amount, the company’s cost/ounce gives further reason for its confidence in that the Westbrook Mine will be one more reason the name IAMGOLD will be part of the Bousquet Township community and its various activities for years to come.

Now that production at the underground mine has started, processing of ore is being carried out at the nearby Doyon carbon-inpulp (CIP) mill complex. The ore is hauled the 2km where it is crushed and ground in a circuit consisting of the existing SAG mill and a 1,000 HP ball mill.

“However,” says Stothart, “the project is split into two phases. In the first phase, only the gold mineralization is being treated at the mill.

During the first year of operation, the mineralization will be processed at a rate of 700,000 tonnes per year and subsequently increased to a capacity of 800,000 tonnes. We’ve temporarily converted the copper circuit at the Mouska mill to a desulpherization circuit and the cynanide destruction capacity has been increased to treat the tailings.”

Stothart further explained that the current Mouska flotation system will be used for the copper flotation in the second phase of the project.

“Three tanks will be added to increase the retention time and the current copper concentrate thickener will be upgraded from 3.6m to 6.0m in order to meet the higher demand and a new circuit will be installed for zinc flotation,” says Stothart.

The Westwood Mine will process all of its ore at IAMGOLD’S refurbished gold plant, which operated for over 30 years to process ore from the Mouska Mine (closed in 2014) and the Doyon Mine (closed in 2009). The Doyon Mine formerly operated as an underground mine, but also as an open pit mine and at that time the plant processed in excess of 1 million tpa.

The mill.

18 | Canadian Mining Journal • October 2014

www.canadianminingjournal.com

Headframe.

As already mentioned, the new Westwood Mine is designed to hoist between 700,000 and 800,000 tpa. The rate of ramp up to full production will take several years, with the pace of development being dependent upon the price of gold, operating cash flows and the amount of capital the company will be comfortable spending each year. With the mine still in its early days of commercial production, Westwood continues to evaluate various production profiles to optimize and get the best economic return from the processing of its mineral resource During the ramp-up period and even at full capacity the mine will not provide enough throughput to fill the gold plant. The Westwood plant will utilize its spare capacity to process between 150,000 and 200,000 tonnes annually for Gold Bullion Development Corporation.

IAMGOLD is often thought of as a mining company with predominately low-grade open pit mines, but Westwood is different from the rest. It’s an underground mine with a long narrow lens of gold in the prolific Abitibi greenstone belt and is part of the Doyon-Bousquet-LaRonde (DBL) mining camp. The project is located within the southern Abitibi Sub-Province, in Archaean volcanic and intrusive rocks of the Bousquet Formation.

The DBL mining camp hosts two world class deposits: the Doyon and LaRonde-Penna mines and is by far the largest Au-Cu-ZnAg producing district in Québec.

IAMGOLD brings a team with 30 years of underground mining experience to this mine and the mine development teams are already over achieving on their priority headings, another positive sign for the future of the company. The development and operations teams are achieving mine development rates over 1,400 metres per month.

As mentioned earlier, the company has been working hard to move from “development” to “production” and the Westwood Mine is proof that hard work pays. CMJ

BUILT ON EXPERIENCE. FUELLED BY EXPERTISE. For more than 35 years, BBA has been helping industrial clients transform complex problems into practical, innovative and sustainable solutions.

Recognized for its extensive field experience and cutting-edge expertise, BBA delivers a comprehensive range of consulting engineering services, from studies and asset integrity plans to commissioning and operational support.

With offices from coast to coast, BBA is synonymous with proximity and agility.

Energy │ Mining and metals │ Oil, gas and biofuels October 2014 • Canadian Mining Journal |

19

STRONG VALUES. STRONG BOTTOM LINE.

Strong business ethics, transparency and environmental stewardship aren’t just the right things to do – they also help build your corporate brand and strengthen your bottom line.

Find out how EDC can help you strengthen your corporate social responsibility practices at edc.ca/responsible

E Q U I P M E N T M A I N T E N A N C E & R E PA I R

SLICK SOLUTIONS Answers to help keep machines performing well

When the world looks to you Look to Petro-Canada Lubricants It’s operations like yours that make Canada a world leader in mining.

And it’s lubricants like ours that keep it that way.

Petro-Canada brings over 30 years of Canadian mining experience to the development of a full suite of products to help keep your mine running consistently and profitably. We believe that reducing downtime is more than a promise; it’s a commitment to delivering our Tangible Savings Solutions shift after shift.

Call a Petro-Canada representative today to discover how our top-performing lubricants will maximize uptime and productivity for your mining operation.

Call 1-866-335-3369 or visit lubricants.petro-canada.ca/mining

Petro-Canada is a Suncor Energy business Trademark of Suncor Energy Inc. Used under licence.

TM

CONTENTS Feature

Supplement of

Mining Journal E Q U I P M E N T M A I N T E N A N C E & R E PA I R CANADIAN

24

OCTOBER PUBLISHED BY

Canadian Mining Journal 80 Valleybrook Dr., North York, ON M3B 2S9 Tel. (416) 442-5600 Fax (416) 510-5138 www.canadianminingjournal.com

EDITOR

24...

28...

32...

34...

36...

Russell Noble 416-510-6742 rnoble@CanadianMiningJournal.com

SCREENS

ART DIRECTOR

A case history of how one B.C. sand-andgravel producer answers the call for more products by routinely servicing and maintaining its fleet of screening equipment to help ensure it performs well and produces without fail.

Mark Ryan

PRODUCTION MANAGER Steven Hofmann

PRINT PRODUCTION MANAGER Phyllis Wright

FLUIDS

CIRCULATION MANAGER

A detailed look at the various fluids required to keep today’s mining machines performing as specified and how these fluids react to different working conditions in Canada.

28

MAINTENANCE

Managing the scheduling of routine maintenance of equipment is almost as important as performing the service and repairs themselves and this article looks at what fleet owners and operators should know about “Reducing the risk of failure” through equipment scheduling.

CONVEYORS

A look at what one company suggests mine owners and operators keep in mind when operating conveyors systems.

PUBLISHER

Robert Seagraves 416 510-6891 rseagraves@CanadianMiningJournal.com

FILTERS

Keeping filters and breathers clean is essential to good equipment performance. This article provides readers with a few tips on how to keep engines running smoothly and why maintaining filters and breathers is a relatively inexpensive yet important part of taking care of equipment.

Cindi Holder 416-442-5600, ext. 3544 cholder@bizinfogroup.ca

SALES

Western Canada, Western U.S.A. & Quebec Joelle Glasroth 416-510-5245 jglasroth@canadianminingjournal.com

32

Printed in Canada All rights reserved

36

ABOUT THE COVER

The cover to the Equipment Maintenance & Repair section is an over exaggeration of the use of grease but it serves to depict the “Slick Solutions” theme of the 16-page supplement.

E Q U I P M E N T M A I N T E N A N C E & R E PA I R

SLICK SOLUTIONS Answers to help keep machines performing well

EM&R October 2014

» 23

Feature »Equipment Maintenance and Repair

Screening

SUCCESS Upgrades help Agg producer deliver the goods

24 »EM&R

October 2014

www.canadianminingjournal.com

Equipment Maintenance and Repair» Feature

D

owntime is a killer when it comes to lost opportunities and profits and in the fast-moving oil and natural gas fields of the Peace River Region in northeastern British Columbia, this is especially true for companies like sand-and-gravel producer Nels Ostero Ltd., where the push is on to produce more product, faster and more efficiently.

To keep up with the demand for more aggregates, Nels Ostero needed to beef up its screening and as Company Manager Nilson Ostero says, “Over the last three years, the demand for aggregates has really taken off. The area’s infrastructure is rapidly growing, so there’s tremendous pressure to keep up with local aggregate demands.”

Efficiency and optimal uptime are crucial for the company, especially for its six vibrating screens: two 6 x 20 horizontal screens, a 6 x 20 incline scalping screen, a 6 x 16 inclined splitting screen, and two 7 x 16 washing screens, which the Ostero crew refers to as the East and West Screens.

Because of the company’s wide array of machines from different manufacturers, Ostero said the selection of highquality, long-lasting screen media is especially important to the company and its operations.

Since the first years of its existence, the now third-generation company has used W.S. Tyler screens. Although it was happy with the wear life, Nels said the company would occasionally experiment with lower-cost screen media, but it quickly discovered cutting corners led to major sacrifices of time and money and an increase of headaches.

The lower-cost screens had only about 30 per cent of the life that W.S. Tyler screens offered, and that led to screen panel changeouts about every three days. Premature failures were costing the company downtime, production and thousands of dollars in maintenance and labour fees. This was especially true at the feed end of the washing screens, where changeouts were required up to four or five times per year for each screen.

Changeouts on the washing screens are more time- and labour-intensive than on any of the other screens. The confined space with spray bars and the amount of rust that forms on the material make it challenging.

Ostero said washing screen changeouts are the least favourite job among the team. While four employees can change the screen media on a typical vibrating

screen in just two hours, the feed end of a washing unit can take the same four employees up to two shifts to complete.

That’s a $3,000 expense in labour alone.

While the crew is installing the new screens, the entire plant needs to shut down, making lost production very alarming. Ostero says the drainage gravel and concrete sand the company produces ranges from $17-$26 per metric ton. With varying output rates, two 10-hour shifts of downtime can be crippling, easily costing the company more than six figures per changeout. It was an expense and hassle Ostero figured he’d have to live with.

THEN W.S. TYLER CAME CALLING W.S. Tyler had just opened its Haver & Tyler Rocky Mountains facility in Chilliwack, B.C., just on the outskirts of Vancouver. The new location put the company’s technicians and specialists closer to companies like Nels Ostero so they can respond more quickly to investigate problems and find solutions.

Markus Kopper, Haver & Tyler’s general manager, contacted Ostero and offered to visit the site to inspect each of the machines at no cost. The visit would include a complete vibration analysis, Changeouts on the washing screens were more time- and labor-intensive than on any of the other screens. The feed end of these washing units took four employees up to two shifts to complete.

EM&R October 2014

» 25

Feature »Equipment Maintenance and Repair which is a part of W.S. Tyler’s Pro-Deck approach, full inspections of all vibrating machines regardless of brand, recommendations and a Pro-Deck Efficiency Report.

Kopper performed tests and analyzed each of the machines, and the W.S Tyler crew worked around Nels Ostero’s maintenance schedule to minimize downtime. A vibration analysis of each of the six machines revealed that five of the units were performing within normal parameters, and one was in critical need of major adjustments.

W.S. Tyler informed Ostero that the particular machine was showing a high G-Force and twist factor at the centre and discharge end. Further, its right side plate had a crack, the lip support beam was cracked, and the feed material was impacting on the screen media rather than the feed box. Minor adjustments were also suggested to optimize the performance of the machines that were functioning normally.

Another key recommendation was to change screen media on 22 of the 34 sections of deck in the operation to fix problems with blinding, pegging, open area and excessive wear. Special attention was also given to the recommendations for the screen media on the washing screens.

At the time of the analysis, Ostero had Ty-Wire, a blend of polyurethane and wire cloth, on the first two sections of the top deck on both screens. Ty-Wire has a greater open area than traditional modu-

Ty-Max screen media is designed for optimum wear resistance. Even at the feed end, this media reduces changeouts and maximizes productivity.

26 »EM&R

October 2014

lar polyurethane, and the material offers 4-6 times the wear life in comparison to woven wire cloth. The screens at the discharge end were regular square mesh.

“In analyzing the decks of the wash screens, we felt Nels Ostero could benefit from tailoring the first section of the decks to the application and phase of screening. They needed more wear resistance and could reduce the open area to get a larger impact surface for the material. This has the potential to significantly reduce the downtime,” Kopper explained.

He recommended swapping out the first section of Ty-Wire to Ty-Max with the same size opening. Ty-Max screen media is manufactured with polyurethane that is specially formulated for optimum wear resistance. This media handles direct feed better than wire cloth, reduces changeouts and maximizes productivity – exactly what the operation needed.

Because this meant reducing the open area to get a larger impact surface, Kopper recommended a self-cleaning woven wire screen media on the remainder of the deck. A self-cleaning screen would provide maximum open area while preventing blinding or pegging.

At the time of implementation, Kopper predicted that changing of screens would save Nels Ostero somewhere between six and eight days of downtime per season, which would equate to an increase of tens of thousands of dollars.

PUTTING PRO-DECK TO THE TEST The Nels Ostero operation started its season with the Pro-Deck system in mid-April 2014. In just a few months, Ostero said he was delighted with the modifications and relieved the operation is better able to keep up with constantly growing demand.

He reports downtime for screen changeouts has been cut in half. Since the screens are specifically designed for the portion of the vibrating screen deck on which they are placed, he says they last longer.

Although the specialized screens cost more up front than the system the comwww.canadianminingjournal.com

Equipment Maintenance and Repair» Feature Situated within the natural gas fields of the Peace River Region in northeastern British Columbia, Nels Ostero Ltd. was looking for ways to beef up its screening.

The company is home to six vibrating screens: two 6 x 20 horizontal screens, a 6 x 20 incline scalping screen, a 6 x 16 inclined splitting screen, and two 7 x 16 washing screens.

pany had been using previously, Ostero says the payback makes the decision a no-brainer. “We’ve found it’s worth the cost,” he said. “These screens allow more plant uptime, so they pay for themselves in just the first few months of operation.

And the longevity is phenomenal. We’ve already sliced our downtime and maintenance in half.”

Ostero says even after several months of operation, the screens are holding strong. He projects that, with the ProDeck system in place, the screens will reach at least twice the life of the previous system. As an added bonus, Nels

Ostero has also decreased its water consumption on the screens due to the switch to a self-cleaning screen. This self-cleaning design reduces binding and pegging and ensures the screen stays clean, which, in Ostero’s case, has reduced the water needed to clean material from its washing units.

On top of the screen longevity and boost in efficiency, Ostero has been pleased to see his biggest fear – loss in production – dissolve with the fines.

While Ty-Max reduced open area on the feed end, the self-cleaning screen provided more open area at the discharge

end. This blended solution gave Ostero the optimal combination of open area, durability and productivity. So as it turned out, Ostero says, his greatest fear going in has actually been the most impressive improvement.

“Usually, when switching to a more durable screen, the open area decreases and production is lost,” he explained.

“But the Ty-Max is holding strong at the feed end, which has reduced changeouts and actually helps us maximize productivity.”

Information for this article provided by W.S. Tyler.

EM&R October 2014

» 27

Feature »Equipment Maintenance and Repair

Is your hydraulic fluid up to the

JOB? Understanding the solutions for optimal hydraulic fluid performance in even the most severe conditions

O

perations around the world are facing pressures to increase productivity and manage the risk of downtime, all while lowering or maintaining operating costs in order to attain a competitive edge. Nowhere is this more evident than in areas such as mining operations, where equipment is expected to perform in harsh environments, through extreme temperature fluctuations and where failure caused by fluid breakdowns can be expensive to fix, and even costlier in terms of lost production.

28 »EM&R

October 2014

Choosing what type of fluid to use in your hydraulic equipment can make the difference between productivity and inefficiency, between profit and loss.

“Conducting a regular review of hydraulic fluids is something many maintenance and purchasing managers often overlook,” says Robert Farthing, Hydraulic Oil Category Portfolio Manager, PetroCanada Lubricants. “Despite the fact that failure to evaluate can result in the use of a low-quality fluids with short service lives that require frequent top ups or

change outs. The resulting downtime and repairs can increase maintenance costs, slow production and ultimately reduce profit margins.”

Knowing how to select the right hydraulic fluid amid extreme conditions is essential to the success of today’s operations.

THE CHALLENGING OUTDOORS Mining equipment is frequently exposed to dirt, dust and aggregate, putting hydraulic fluids at increased risk of contamination. In addition, environmental www.canadianminingjournal.com

Equipment Maintenance and Repair» Feature

Fleets of heavy equipment working in harsh conditions require maintenance more often because of their surroundings and hydraulic fluids and lubricants need particular attention when servicing machinery.

conditions, particularly wide temperature swings and humidity levels, add to the overall strain on equipment.

“Outdoor operations always present more challenges,” says Farthing. “And remote locations pose unique problems because of the limited resources to store product.”

Kris Calverley, an owner and operator of Double R Repairs, knows first hand that a hydraulic fluid is needed to not only endure rugged and demanding conditions, but to maintain optimal performance.

“We sell and service all types of hydraulic systems for construction and oil field equipment,” says Calverley. “This equipment operates year round in harsh conditions including temperatures as low as -40˚C (-40˚F) in the winter, and as hot as 35˚C (95˚F) in the summer.”

Cold start-ups can be a major risk to equipment as frigid temperatures can slow the movement of fluids through hydraulic systems. Low temperature properties of a hydraulic fluid are essential to ensure the lubricant will flow to the critical areas within the equipment to prevent metal to metal contact and equipment wear. But if you over-compensate with lighter viscosity oil, the protective fluid film can break down when the operating temperature gets higher and that can compromise protection. The regular starting and stopping of outdoor equipment and heavy loads only exacerbates these problems.

Darryl Purificati is certainly familiar with the hydraulic fluid demands of today’s industries. As Manager of OEM Technical Sales for Petro-Canada Lubricants, Purificati recommends a multi-grade fluid such as HYDREXTM XV as a solution to operating in these drastic temperatures.

“The right all-weather hydraulic fluid will ensure both adequate flow properties at start-up over a wide range of temperatures, as well as maintain an appropriate viscosity at high operating temperatures to ensure sufficient boundary lubrication,” says Purificati. “It can also

allow a company to consolidate its seasonal fluids and minimize storage requirements, which is an issue for many remote operations.”

“Reliability is critical for my customers”, says Kris Calverley. “It’s nice to know that your hydraulic fluid can provide extra protection, even during severe wear periods.”

FILTRATION Many outdoor and remote operations need additional filtration for their equipment in order to combat dusty, dirty or unpredictable environmental conditions.

“Filtration is an area that is often overlooked but it’s very important in hydraulic systems,” says Purificati. “The tolerances in hydraulic systems can be tight and if you end up with particles in the oil it will reduce the efficiency of the system.”

Like any system, a good preventative maintenance schedule and proper maintenance practices are vital to the performance of hydraulic equipment.

“Filters can be inexpensive insurance for a hydraulic system”, says Purificati.

“And they can make a world of difference when it comes to protecting the entire hydraulic system as they can help to reduce the fine particle count, potentially extending fluid life.”

MOISTURE CONTROL Moisture is also a major challenge for the performance of hydraulic fluid in outdoor operations. Once moisture gets into the EM&R October 2014

» 29

Feature »Equipment Maintenance and Repair biodegradable, recyclable, odorless and free of heavy metals. It also lasts up to eight times longer than the leading vegetable-based hydraulic fluid.

WEAR PROTECTION There are many factors that can make or break the fluid you use, such as the time and intensity of equipment operation, pressures and application temperatures.

“Today’s equipment is being pushed farther and farther and with that comes elevated temperatures,” says Purificati.

“Fluids need to be able to take the heat or equipment could wear prematurely.”

Kris Calverley of Double R Repairs has tried many types of hydraulic fluids and was unable to find one that met all expectations. Until he used HYDREX XV. When a pump’s shut-off valve failed it convinced him that HYDREX was the best hydraulic fluid for his customers.

“With a pump running out of control for two straight hours, oil reaching high temperatures, rubber mounts melting and the filter disintegrating, I was amazed that the pump never seized,” says Calverley.

“No other hydraulic fluid could have stood up and protected the equipment like HYDREX XV did.”

Not every hydraulic system will be put to that kind of test, but extreme working conditions, whether in the field or on the manufacturing line, demand extra protection.

Lab work helps product specialist develop with right products for the various applications.

system it can create foaming, which decreases the efficiency of the system.

“One problem with foam is that it can introduce air pockets,” says Purificati. “The system then pumps air and foam instead of fluid, which may create gaps in the fluid film layer, leading to metal to metal contact and premature wear. Another outcome of excessive foaming is pump failure and that kind of breakdown results in costly downtime and expensive repairs.”

Air and moisture can creep into the system through leaks in the pump and around seals. In addition to addressing the mechanical causes, you can protect your systems by using a hydraulic fluid with foam suppressant additives formulated to accelerate the breakup of foam and separation of entrained air.

Another way to protect against both particle contamination and moisture is to 30 »EM&R

October 2014

use a hydraulic fluid that performs and protects longer so you can extend drain intervals on your equipment.

“The less a reservoir is opened, the lower the chances of contamination entering the system,” says Purificati.

“Reducing the number of top ups and change outs reduces the number of times a reservoir is exposed.”

ENVIRONMENTAL PROTECTION Protecting the environment is always a concern when using fluids in outdoor applications. While companies strive to guard against any type of contamination from their operations, there is always risk.

In environmentally sensitive situations, Purificati recommends a zinc-free fluid such as ENVIRON, especially when working around watershed or natural habitats.

ENVIRON is non-toxic, inherently

OXIDATION STABILITY Extreme working conditions put a lot of heat on hydraulic systems. Be it through the intensity of the environment or the intensity of production, as the temperature of the hydraulic fluid gets hotter, the rate of oxidation climbs higher.

When the fluid breaks down under excessive heat, the entire hydraulic system is put at risk. One of the fallouts from extreme heat exposure is increased acidity in the fluid, which can accelerate corrosion.

Also, oil thickening and the formation of varnish and sludge can interfere with valve operation, plug filters, reduce flow and eventually lead to poor performance.

“Even with a good filtering system, excessive sludge can increase system pressures and seriously damage the hydraulic pump,” says Purificati. “In the end, it makes the system work harder for less of a result.” www.canadianminingjournal.com

Equipment Maintenance and Repair» Feature

Harsh weather conditions challenge equipment exposed to cold and heat to perform as specified.

What does this all amount to? Well, when your company’s productivity and operations rest on the performance of their hydraulic systems, you can’t afford to ignore quality. Using the right high-performance hydraulic fluid will help to ensure optimal productivity while saving you money.

For an even wider range in temperatures, Petro-Canada Lubricants’ HYDREX EXTREME hydraulic fluid is recommended for vane, gear and axial piston hydraulic pumps over an extremely wide range of operating temperatures. So, whether you’re dealing with low start-up temperatures or high operating temperatures, or maybe both, you can rely on IT. With its low temperature pumpability, you can rest easy knowing your equipment will start-up in temperatures as low as -48°C (-54°F) to operating temperatures as high as +76°C (169°F) for mobile equipment and +68°C (+154°F) for industrial machinery.

What does all of this mean for you and your business? You could potentially eliminate seasonal change-outs which help reduce inventory costs, downtime and chance of misapplication. You get longer oil life which also helps extend time between oil changes, reducing downtime and costs. HYDREX can help keep your money and your productivity levels where they should be.

While oil cooling rates are primarily dependent on the engineering of the hydraulic system and quiet time in the reservoir, a quality hydraulic oil with an advanced additive package will be better suited to tolerate such temperature extremes.

“A fluid with good thermal stability will resist degradation in high temperatures,” says Purificati. “And it reduces the need for additive top up.”

A high performance hydraulic fluid like HYDREX EXTREME makes it easier for heat to dissipate from the hydraulic system.

That means the oil can also cool down quicker and better protect equipment from the damaging effects of oxidation.

OIL MONITORING With equipment being pushed to the limit for hours on end, day after day, often in harsh conditions, it is becoming increasingly important that companies use top quality hydraulic fluids that can both persevere and perform.

“A regular review of hydraulic fluids is something many maintenance and purchasing managers often overlook,” says Petro-Canada Lubricants; Farthing. “Yet failure to evaluate can result in the use of low-quality fluid with short service life that requires frequent top-ups or change-outs.

The resulting downtime and repairs can

increase maintenance costs, slow production and ultimately reduce profit margins.”

Oil monitoring programs, such as Petro-Canada Lubricants’ Lubri-Test, are low-cost preventative-maintenance programs, used to evaluate the condition of lubricants and equipment on a routine basis. The program monitors oil properties such as viscosity, oxidation levels and metals content to help detect abnormal equipment wear and unwelcome contaminants like dust, dirt and water. Oil monitoring programs can be used to help extend drain intervals until they are actually necessary.

“By reviewing the performance of hydraulic fluid, many companies have been able to reduce unscheduled downtime, improve equipment reliability and extend equipment life,” says Farthing.

“The results of reduced maintenance costs and improved equipment performance help build a stronger bottom line.”

The tougher the job, the stronger your hydraulic fluid needs to be. If you haven’t analyzed your oil in a while, now is a good time to assess whether you’re getting the best performance and protection you could be. It’s a relatively easy way to meet the extreme demands on your equipment and your business.

Information for this article provided by Petro Canada.

EM&R October 2014

» 31

Feature »Equipment Maintenance and Repair

Keeping Fluids

CLEAN All systems demand close attention

M

oisture contamination in lubricating oils and hydraulic systems can cause damage to the system and components such as motors and pumps, becoming an even bigger threat than its more obvious big brother — particle contamination.

There are several ways that contaminants can find their way into equipment, including poor oil top-up and sampling methods, poor seals, and improper handling methods.

Here’s what happens in moisture contamination.

Individual water molecules that get dispersed through oil are considered “dis32 »EM&R

October 2014

solved.” All industrial fluids contain a very small level of dissolved water, which can typically be handled at levels between 200 and 600 parts per million (ppm). The fluid’s temperature plays a key role in its ability to maintain water in a dissolved

state. Newer motor oils can handle three times these amounts before contamination is noticeable.

But at some point, individual water molecules saturate the oil and the water begins to coalesce. Some signs of this www.canadianminingjournal.com

Large pieces of equipment used in mining require special attention when it comes to the number of complex systems required to keep the huge machines running. Lubrication and hydraulic fluids need routine maintenance in order to keep equipment performing without breakdowns.

Equipment Maintenance and Repair» Feature one per cent contamination can reduce component life by up to 90 per cent.

So what can you do to stop moisture contamination?

Finding the right breather will help the systems in your equipment last longer and prevent unnecessary downtime and oil replacement. Desiccant breathers are especially useful in environments that contain high dust and humidity levels.

Desiccant breathers are comprised of a silica gel that attracts and retains up to 40 per cent of its weight in water. Together with a synthetic filter media, they prevent moisture and particle contamination from getting into your reservoirs as pressure

fluctuations occur through thermal expansion and contraction of the fluid and the level changes produced by the filling and emptying of the reservoirs.

When carbon is added to the silica gel, the breathers can capture oil mist and evenly disperse incoming air so that the synthetic filter and silica gel combination works more effectively. The more the air passes through both, the cleaner it becomes. If a breather is designed with more vent holes to allow variable airflow patterns, it increases the filtration media and desiccant drying capabilities.

Information for this article provided by Hitachi.

SOME THINGS TO KEEP IN MIND WHEN SELECTING DESICCANT BREATHERS:

• When choosing a desiccant breather size, be sure to consider the amount of air exchanged (cubic ft./min.) for each application. Airflow capacity must match or surpass the tank’s fill and drawdown rate. Breather size should increase as the flow rates increase.

• Choose a steel or plastic breather housing, depending on your operating environment. Steel is a better choice if you’re dealing with hot, dusty environments.

• Pay attention to the color of the silica gel as an indicator of when to change breathers, as most breather manufacturers put dyes in the silica gel to facilitate a color change when the gel becomes saturated.

• If you operate in a damp and dirty environment with minimal air-volume changes, newer expansion-type breathers can better control the breathing action and permit expansion and contraction of the airspace.

• Consider more specific applications for desiccant breather filters than mobile hydraulic systems, such as switch gears, gearboxes, turbines, feed pumps, oil-cooled transformers, and diesel-fuel storage tanks.

Because hydraulic systems are such an integral part of a machine’s makeup, keeping your hydraulic fluid clean is essential to keeping machines operating at optimum performance.

Since building the first hydraulic excavator nearly 50 years ago, Hitachi continues to deliver smooth operating machines thanks to innovative engineering and advanced technology, plus careful attention to routine service and maintenance recommendations.

HERE ARE A FEW MORE TIPS FROM THE COMPANY TO HELP KEEP MACHINES OPERATING AS SPECIFIED. would be a cloudy appearance or the creation of microdroplets. Finally, after the emulsified water increases, it settles to the bottom of tanks and sumps as a layer of free water.

Settlement isn’t your only problem.

Once water mixes with oil, chemical reactions occur. These reactions, called hydrolysis, involve not only the water and base oil, but also various additives, including extreme pressure- and wear-resistance agents, rust and oxidation inhibitors, and viscosity improvers.

The result? Oil’s aging can accelerate tenfold. And you’ll experience sludge, varnish, various acids, surface deposits (rust), and polymerization. What’s more, a mere

• Filter hydraulic fluid even if it’s new. New fluid isn’t necessarily clean fluid. In most cases, the hydraulic system of your machine cleans the fluid to a higher level once in use but this could be risky if the cleanliness of the initial fluid is unknown. As a general rule, the best practice is to filter caddy the fluid while topping off your machine.

• Invest in a filter caddy. A filter caddy can remove excess contamination after a repair and reduce contamination levels on machines that are having trouble maintaining the right balance on contaminants in their hydraulic systems. A filter caddy can extend the life of fluid by keeping it clean and boosts the life of components. For practical purposes, the filter caddy should have the ability to read particle counts, humidity, and in some cases, viscosity of the fluid.

• Conduct oil analysis. Oil analysis can detect changes in the physical properties of the fluid that diminish its protective properties. Fluid analysis can detect the wear metals inside the machine that are being lost little by little from its components. Remember, an oil change alone is not a guaranty machines will survive longer – it does not replace the need for oil analysis.

• Avoid mixing different types of hydraulic fluids. By mixing types and brands of fluids, you create a new product with differing ratios of additives and even base oils. Machines are very sensitive to these changes and can have negative reactions.

• Avoid intrusive repairs in the open. If the repair is necessary, always filter caddy the machine afterward. Take a fluid sample after a repair to make sure the machine complies with particle-count specifications. Additionally, don’t leave hoses uncapped and cover disassembled components properly.

EM&R October 2014

» 33

Feature ÂťEquipment Maintenance and Repair

Reducing the risk of

FAILURE

Special Report* ithin Facilities Management of almost all organizations, including mining, maintenance plays a critical role in the overall productivity, safety, and efficiency of the operation.

Regularly scheduled preventative maintenance procedures are required in order to maximize equipment life and reduce the risk of catastrophic failure. In combination with the purchasing and procurement departments, a large portion of the maintenance responsibility also means ensuring that the right parts are available in the right quantity at the right time.

Although this may not sound complicated, the challenge is doing so cost effectively. Determining optimal inventory stocking levels should be a strategic, datadriven calculation, however, the unfortunate reality is that many companies do not have accurate data and statistics to make these calculated decisions. Too often maintenance professionals are influenced by the fear of stocks outs, while procurement leaders and the finance team strive to minimize on-hand inventory and cost.

Two of the most difficult challenges that maintenance and procurement professionals face are maintaining quality data for effective analysis while balancing inventory investment versus production downtime risk.

In a maintenance mindset, the cost of having extra inventory on the shelf is incomparable to the cost that would be incurred if those parts were unavailable during catastrophic equipment failure.

While there are arguments to support this theory, the ideal solution is to find a calculated balance, where both risk aversion and cost-effective inventory management are satisfied.

It may seem like an overwhelming challenge to tackle at first glance, but there is a solution that can generate immediate

W

34 ÂťEM&R

October 2014

The Full Enhancement Cleanse is typically selected when data is being used by maintenance and engineering, in which case comprehensive and complete item descriptions are required for efficient part search ability and identification. For the purpose of procurement, spend analysis and inventory optimization, only pertinent purchase information is required. In this case, a basic Cosmetic Cleanse can be performed to segregate Manufacturer Names and Part Numbers, assign Noun-Modifier pairs, and apply accurate commodity codes. With this information, the inventory analysis and optimization process can begin.

EXAMPLE: Raw Client Data: 62052rs-C3, Bearing, Skf, 25mm ID Cosmetic Cleanse: BEARING, BALL, SKF, 6205-2RS

Data-Driven Cost Savings Progression Model: Image illustrates the cost savings progression model, which begins with data cleansing (data quality) and moves thought the various phases of the inventory optimization process.

cost savings and improved efficiency, while providing many indirect procurement benefits along the way.

The first step to establishing a proper foundation for inventory optimization is to assess materials data quality. Now before you jump to the conclusion that you’ll have to spend hundreds of thousands of dollars on a full data cleansing and enhancement project, let us explain. There are three levels of data cleansing available depending on how the data is being used. Those levels include: Cosmetic Cleanse, Standardization Cleanse, and Full Enhancement Cleanse.

Based on 24-36 months transactional purchase history and on-hand quantities, inventory data is sorted into OEM and MRO categories. From there items are segmented into typical commodity groups, including: Bearing & Power Transmission, Electrical, Instrumentation, Mobile Equipment, Industrial Supplies, Fluid Power, and Pipes, Valves & Fittings.

The next phase of the inventory optimization process requires inventory to be segmented based on usage and activity.

First, items are categorized as RequiredActive, Excess-Active or Inactive. The Required-Active category represents items, which are used frequently and must be stocked at all times. The Excess-Active category is simply overstock of RequiredActive items that must be minimized in an effort to reduce inventory costs.

Finally, the Inactive category is broken down into Critical Spares, Slow-Moving, and Obsolete Materials. Critical Spares www.canadianminingjournal.com

Equipment Maintenance and Repair» Feature are items which are essential for the business to operate and stocking out of these parts would significantly impact production, quality and safety. The Slow-Moving category represents infrequently used items with long lead times or recommended spare parts which are kept to satisfy risk aversion. Furthermore, Obsolete Materials are items that are no longer used within the facility and must be disposed of in an effort to recover some type of investment dollars.

Optimization and rationalization of the above mentioned categories require a very strategic approach but can return significant cost savings. Typically we find that Required-Active items range from 25-30%, Excess Active items range from 10-20% and Inactive items range from 50-60% of all inventories. Within all Inactive inventories, we consistently find that Critical Spares represent 15-20%, Slow-Moving items represent 20-25%, and Obsolete items represent 15%.

The opportunity for cost savings predominantly comes through the elimination of duplicate items and the rationalization of Excess-Active and Slow-Moving inventory. There are a number of disposition strategies that can be used to reduce excess inventory and turn dead stock into cash. Some of those strategies include using down excess inventory through attrition, returning inventory to suppliers for cash or credit towards future purchases, e-commerce (eBay, Amazon, etc.), corporate internal redeployment, and thirdparty liquidation.

Once inventory has been accurately commoditized and categorized, a comprehensive spend analysis can be performed.

The detailed spend analysis will reveal

spend by commodity, spend buy supplier, and maverick purchases. Upon review of the results, the organization can leverage spend to establish preferred suppliers programs, take advantage of volume rebates, and capture reduced MRO item pricing.

As the inventory optimization process continues, adjusted min/max levels are recommended based on the analysis of usage and purchase history. At the same time, a supply chain stock status report can be performed to ensure that all necessary MRO items are stocked at the preferred supplier’s supporting branches.

The added reassurance of part availability then allows organizations to further reduce on-hand inventory, while satisfying risk aversion.

Let’s look at a recent case study to illustrate the results of an inventory optimization project.

A multi-site manufacturing organization with eleven locations decided to undertake a pilot inventory analysis project at their four Wisconsin sites. If the project was successful and returned enough value, then it would be extended across the entire corporation. The cleansing process was completed across all four sites in which item descriptions were standardized into noun-modifier format, industry nomenclature was used and a corporate catalogue was created to consolidate all items.

Site by site, the cleansed data was first sorted for duplicate identification, and then it was segmented into categories by commodity group and analyzed based on usage and supplier.

The results of the project were impressive and immediately attracted the remaining seven sites.

Duplicate items represented approximately 9% of inventory. The item bins were consolidated and it was determined that the overstock would be used down through attrition.

Approximately 20% of inventory items were found to be at excess stocking levels.

These items were returned to the supplier for credit, yielding cash savings of $1.1 Million.

Obsolete materials were identified and disposed of, generating $100,000 cash.

A long-term plan was designed to address Slow-moving inventory items to determine the value and life expectancy of the part and its appropriate stocking level.

Finally, the company decided to share highly valued spares within the regional area, further reducing stocking levels at all four locations.

With a return of more than $1.2 Million, the pilot project was deemed a success and was later implemented at the remaining seven sites.

The fact is every company has excess inventory, regardless of how robust their ERP system may be or what strict maintenance/purchasing processes they have in place. The important thing is how these issues are addressed and what strategies are implemented to resolve them.

As a result of Inventory Optimization and MRO Analysis, companies can uncover millions of dollars in cost savings and improved efficiency, while establishing a solid foundation to effectively manage inventory investment and risk moving forward. *This Special Report provided by Jocelyn Facciotti, Marketing Manager for I.M.A. Ltd., of Tilsonburg, Ontatio, a company that specializes in Materials Data Cleansing and Inventory Optimization.

PROFESSIONAL DIRECTORY

TROJAN TIRE INC.

Reusable HD Soft Core® LS

EL

-C

R AI

Soft Ride

Ultimate Flatproofing Best Traction Longer Tire Life Increased Load Capacity

Tel: 905.633.6886 • Email: info@trojantire.com EM&R October 2014

» 35

Feature »Equipment Maintenance and Repair – Company Profile Massive conveyor systems require routine service and maintenance to help ensure they perform as needed.

MONEY

MAKERS Conveyors build the bottom line

C

onveyor systems, and in particular the belts that help make them work, are key components to many mining operations and as mine owners and operators know, when a system goes down, so do profits.

In fact, few components in the makeup of mining equipment can shut down an entire operation faster than a broken conveyor system and that’s why Fenner Dunlop Americas has been working toward one clear-cut goal over the last six years to become a provider of all services, a one-stop shop for the belting industry.

Recognizing that miners cannot afford equipment breakdowns, the company has added to its capabilities by making key acquisitions and plant expansions, investing about $300 million in the process that fit in with its growth program. One of those investments involved the purchase of Allison Custom Fabricators, a company that specializes in the design, engineering, 36 »EM&R

October 2014

machining and metal fabrication of customized material handling equipment.

“We’ve become a full solutions company … because it’s not just the best price for belting anymore,” said Cassandra Pan, president of Fenner Dunlop Americas.

“We now provide premium conveyor belting, complete conveyor systems, conveyor structure and idlers, monitoring products and services, conveyor components, and advanced engineered drive systems as a totally integrated conveying solution.”

Pan says the company begins with a thorough analysis of a customer’s current problems, performance expectations, operation, production and objectives and record those events or circumstances that interrupt a normal operation.

“Modern conveying dynamics are shifting from product design and installation services only to a fully integrated conveying solution, an approach that looks at all the products and services being used along with environmental conditions, operating parameters and expected performance goals,” says Pan. The company’s full range of capabilities

allows it to custom design, manufacture, install, monitor, maintain and even operate conveying systems and that’s why President Cassandra Pan says with confidence that Fenner Dunlop Americas is well positioned to provide the Canadian mining community with innovative solutions to help keep products, and profits flowing.

Information for this article provided by Fenner Dunlop Americas

www.canadianminingjournal.com

REMOTE caMps caN bE up aNd RuNNiNg THis EasiLY WiTH asi.

ASI provides fast, easy-to-deploy, customized water and wastewater solutions for mining services, oil companies and remote camp operators. Using some of the most advanced environmental technologies, we make it easy to get your project started and your existing sites running more efficiently. No two projects are exactly alike so we develop right-sized, custom solutions that are tailored to your specific situation.

From obtaining regulatory approvals, to design, build and ongoing operation, we provide a single-point of accountability and cost certainty for our clients. For over 25 years we’ve made water and wastewater solutions our core business, so you can focus on what you do best.

Learn more about how we’re solving water and wastewater challenges with custom solutions.

Customized water & wastewater solutions.

asi-group.com

| Mining in Quebec

STORNOWAY TAMES

RENARD Quebec’s first diamond mine prepares for 2016 start

By Field Editor Marilyn Scales

I

n fable and song, Renard is a cunning fox. He understands his home, its nooks and crannies, where its secrets lie. But if you are Stornoway Diamond Corp., you have outsmarted the fox thanks to thorough exploration, determination and a vision of the future that includes Quebec’s first diamond mine.

Diamond exploration began on the Foxtrot property 350km north of Chibougamau, Que., in 1996. Five years later, partners Ashton Mining Canada and Soquem, had discovered and drilled five Renard kimberlites. Results were promising, and a conceptual study of Renard 2 3, 4 and 65 pipes was prepared in 2004. Bulk sampling followed the construction of a 10-t/h DMS plant at the Renard 2 kimberlite in 2006.

38 | Canadian Mining Journal • October 2014

Stornoway acquired Ashton and its 50% interest in the Foxtrot property in 2007. An economic assessment study was commissioned the next year, but it would be two more years before it was completed.

The outlook continued to look extremely promising, and Stornoway acquired the remaining 50% of the project.

The feasibility contract was awarded in 2011 to SNC-Lavalin with a resource update to be provided by GeoStrat Consulting. The list of contributors includes some of the best talent available anywhere in the world – Golder Associates, Itasca Consulting, G Mining Services, AMEC Americas, Roche Ltée, and RPA Inc. As outlined in the feasibility study, the Renard project has a post-tax net present

value discounted at 7% of $391.5 million and $683.5 million pre-tax. The internal rate of return is 16.3% on an after-tax basis and 20.3% on a pre-tax basis. The payback period from the end of the preproduction period in May 2016 is 4.8 years (after-tax) and 4.7 years (pre-tax).

The economic indicators for an economic mine were aligning, and the time came to begin building, starting with an all-weather road. To reach the property, the province of Quebec and Stornoway teamed up to build a 240km all-season road from Temiscamie to the mine site. That makes Renard the exception to fly-in/fly-out operations so common in the north.

The road was divided into four segments. The province funded the first two, building approximately 140km of twowww.canadianminingjournal.com

Aerial view taken at Renard site showing early excavations.

An artist’s concept of the Renard site showing the various components of the mine.

and cryogenic LNG shipments will be trucked to the mine site year-round. The decision also reduces potential greenhouse gas emissions and eliminates propane use at the site.

Diesel fuel will be used during the construction phase of the project, and will continue to be available for the mining and other mobile equipment when production starts.

lane gravel highway. Stornoway agreed to build the remaining 100km, known as “Renard mine road.” It is a single-lane gravel road.

Stornoway’s portion of the road was financed by a $77-million loan from the province. The mine road was completed two months ahead of schedule and 10% under budget. The first vehicle to traverse the entire length arrived at the mine site on Sept. 3, 2013. The savings from road construction were applied to the landing strip at the mine site. The first plane arrived on Nov. 3.

Another major benefit of the all-season road is that it allowed Stornoway to choose natural gas generators, a thriftier alternative to diesel-fired units. Seven 2.1MW, gas-fired gen-sets will be installed,

SHOW ME THE MONEY The story of how Renard was financed is remarkable.

“What we did,” Stornoway President and CEO Matt Manson told Canadian Mining Journal, “was to take a company with a market capitalization of $120 million and raise $946 million for a greenfield project during tough markets.”

The financing took a couple years to put together but during that time everything necessary to develop the project was nailed down. The needed permits from Quebec were received in the fall of 2012, as was the mining lease. Federal authorities gave their blessing in the fall of 2013. The bankable feasibility study was complete.

The impact and benefits agreement with the Cree was signed. All this work amounted to a very thorough due diligence.

Putting together the money to take Renard to production was the largest ever project financing package for a publicly listed diamond company. The list of transactions includes a $427-million common share subscription, a $275 million diamond streaming agreement, $155 million in two debt facilities, and $48 million cost overrun facility.

“This was a one shot deal,” said Manson.

“And I don’t think anyone is going to be able to do it again for quite a while.”

The reason the financing came together all at once rather than being raised in tranches, was that all the interested parties could see the entire proposal at once and understand how the various aspects came together, he added.

The deal closed on July 8, 2014, and $464 million was immediately available with which to start construction.

Backers of the Renard project include Orion Mine Finance, Diaquem Inc., Ressources Québec, and the Caisse de dépôt et placement du Québec. Caterpillar Financial is providing an equipment financing facility.

With the award of the EPCM contract to SNC-Lavalin and subcontractors AMEC Americas and DRA America’s mobilization the site officially began in August 2014.

RESERVES AND RESOURCES Before anyone builds a mine, there must be something that can be economically mined. That is certainly the case at Renard. One estimate puts the total value of diamonds recovered over the life of the project at $5.1 billion.

The probable mineral reserve of the Renard kimberlites is 23.79 million tonnes grading 75 cpht and containing 17.95 million ct. The property has 35.45 million indicated tonnes grading 76.4 cpht and containing 27.09 million ct. The inferred resource, including not only the Renard pipes but also the Lynx and Hibou dykes, totals 29.67 million tonnes grading 56.8 cpht and containing 16.85 million ct.

October 2014 • Canadian Mining Journal |

39

| Mining in Quebec Unlike most others in Canada, the Renard kimberlites do not taper as they get deeper. Instead, they tend to be as wide at depth as they are at the surface.

That gives the project considerable upside for the expansion of resources.

Drilling at the Renard 2 kimberlite has already confirmed the existence of mineralization to at least 370 metres below the mineable resource as currently outlined, or 970 metres below surface.

Stornoway is planning additional exploration of the pipes and dykes expecting to outline between 54.6 million and 84.9 million more tonnes containing between 25.7 million and 47.8 million ct.

If the exploration program expands resources by even the minimum estimates, Renard will have a very long and productive life.

OPEN PIT MINING Stornoway plans to use a combination of open pit and underground methods to recover kimberlite from three pipes – Renard 2, Renard 3 and Renard 4. The initial pit will encompass the R2 and R3 pipes providing feed to the plant in 2016.

Underground access will be through the pit floor into the R2 pipe, with the R3 and R4 pipes accessed via underground development of the R2 pipe.

The R2/R3 open pit, as designed by G Mining Services, will result in a single pit

40 | Canadian Mining Journal • October 2014

at surface with two pit bottoms. The ultimate dimensions will be 455 x 310 metres at the surface with a depth of 113 metres.

There are approximately 2.04 million tonnes grading 94.0 cpht and containing 1.91 million ct of diamonds that can be recovered from the R2/R3 pit.

Because of its small size, the R2/R3 pit will mined in a single phase. The preponderance of blasting will be done with emulsion in 165-mm diameter holes bored by a single down-the-hole drill. The pattern in kimberlite will be 4.0 metres with a powder factor of 0.50 kg/t to break 424 tonnes/hole. In waste rock it will be 5.0 metres with a powder factor of 0.30 kg/t and break 675 tonnes/hole. Pre-split blasting with packed explosive will be practiced to stabilize bench faces and inter-ramp angles.

Blasting activities are planned for day shift only. A heated surface explosives storage facility with a 40,000 kg capacity will be established.

The production fleet for the R2/R3 pit is minimal. As planned it will include one Caterpillar 390D hydraulic excavator with a 6.0-m3 bucket and one Cat 990H wheel loader with an 8.6-m3 bucket. Haulage will be handled by three Cat 740 articulated and four Cat 775F rigid body trucks.

A number of Caterpillar support equipment will be on site, including a motor grader, tracked dozer, compactor,

tool carrier, and service excavator. Service, fuel and lube, and water trucks will most likely be supplied by Kenworth.

A second pit measuring 450 x 315 metres and 61 metres deep will be established at the Renard 65 pipe. Country rock from this pit will be used as construction aggregates and underground backfill when the surface waste rock stockpiles are exhausted. The kimberlite will be used as a bed for the ore stockpile.

The kimberlite can be reclaimed and processed at a future date. The completed R65 pit will have a role to play in water management by acting as a catch basin.

UNDERGROUND MINING Stornoway has chosen blasthole shrinkage (BHS) as the preferred underground mining method. There are several advantages: it meets the 6,000-t/d production target; minimizes development needs; allows the use of large equipment; controls dilution; and underground mining can begin before the pit is finished. As the stopes are drawn down, waste rock backfill will be introduced by dumping it in the R2/R3 pit and through three boreholes for the R4 pipe.

The backbone of the mine development will be a ramp driven to a depth of 610 metres around the Renard 2 pipe using an Atlas Copco Boomer 282 twoboom jumbo. Access for the Renard 3 pipe will be from the 250 level and for the

www.canadianminingjournal.com

Renard pipe from the 235 level. The ramp will connect the surface with six drill levels and three production levels. All employees, equipment and materials will pass through the ramp.

Underground mining will begin at a reduced rate of 550 t/d in the largest pipe, Renard 2, in October 2016. The three mines so far planned have a combined life 10 of years, into 2027.

The mine plan calls for the R2 kimberlite pipe to be divided into three vertical zones with mucking levels at 250, 430 and 610 metres. Each zone is subdivided into vertical panels – seven panels above the 250 level, 10 panels between the 250 and 430 levels, and 11 panels from the 430 level to the 610 level.

The production drills of choice are Cubex 6200HH in-the-hole units. They will bore 165-mm downholes with typical lengths of 60 to 75 metres in the body of the stope. The blastholes will have toe and burden spacings of 4.0 metres, giving a planned drill factor of 22 t/m. Slot raises in each zone will be drilled with a Machine Roger ITH raise head. Both production and development blasting will use emulsion, placed by a Dux loader.

Broken ore will be mucked through drawpoints at the bottom of the stope.

These drawpoints are to be drilled uphole using a Maclean Mine Mate BH3. The holes will be 75 mm in diameter and 25 to

30 metres long. These holes will be drilled on a 3-metres toe and a 2.7-metres burden, for a drill factor of 10 t/m. Plans call for drawing down 35% of the ore through drawpoint to accommodate the swell of broken ore above.

Caterpillar will supply the mucking and haulage equipment – seven 5.7-m3 Scooptrams and twelve 60-tonne AD60 haul trucks. The LHDs will load the trucks in nearby bays to minimize their travel distance. To reach the planned production rate of 6,000 t/d, each LHD will haul 270 buckets of 12 tonnes each per shift.

Mining will proceed from the top down in the R2 pipe, beginning with the panel at the northern edge of the pipe and progressing in a southerly direction. This creates a stair step configuration. Ore will be drawn from the bottom of each panel as backfill is placed above the muck.

Eventually all panels will break through to the pit bottom and contain backfill above broken muck.

The Renard 3 pipe is a narrow deposit with the bottom of the indicated resources at a depth of 250 metres. Mining will begin there in 2017 and continue through 2020. The orebody will be mined from the bottom up, again using blasthole shrinkage with drilling and production levels established at 30-metre intervals. Access to R3 will be from R2 underground development at the 250-metre level. Ramps to

the drill/mucking levels will be driven as well as a fresh air raise.

The Renard 4 kimberlite will be the last one mined, beginning in 2022. It lies in the vicinity of the R65 waste pit. To ensure structural integrity, a 100-metre-thick crown pillar will be established, leaving a 135-metre vertical height to be mined. One production level and two drill levels will be developed for blasthole shrinkage. The R4 orebody will also be subdivided into vertical panels in a manner similar to the R2 deposit. The bottom production level will be 280 metres below surface, the same level as the access drift from the R2 mine.

The ventilation requirement of the Renard mine at full production is 400 m3/s. All levels will connect to a 6.1-metre diameter air intake raise located near the ramp from surface to the 610 metre level.

Fresh, heated air will be drawn across the workings and exhausted through two adjacent vertical raises 4.1 metres in diameter.

Internal 3.0-metre diameter raises will be excavated in the R3 and R4 pipes to aid in bringing fresh air to those workplaces.

The main fresh air raise will also serve as a secondary escapeway and a conduit for mine services such as electricity , mine water and communications. A second 3-metre diameter raise will be bored from the surface to the ramp about 30 metres below surface to allow fresh air to enter that as well.

October 2014 • Canadian Mining Journal |

41

| Mining in Quebec

A fleet of heavy machines work to level part of the site.

Three sumps and pumping stations will be established on the 250- , 430- and 610metre levels. Engineers have designed the lowermost level with a pumping capacity at 1,960 m3/day. The 430 and 250 stations will have larger capacities of 2,725 m3/day each. The 610 pumping station will be equipped with five pumps, and the other two stations will have four pumps. All pumping levels will have an equal number of backup pumps should they be needed.

A leaky feeder communications system capable of transmitting both data and voice as well as high speed internet and telephone will be installed. The conventional telephone service will be provided to the fuel magazine, maintenance facilities and refuge stations.

KIMBERLITE PROCESSING The kimberlite processing plant as designed by AMEC will have a single pro-

cess line for crushing and grinding to minimize the footprint and capital requirements. It will be built with a nameplate capacity of 6,000 t/d or 2.2 million t/y. It is designed for expansion to 7,000 t/d with minimal additional cost.

Run of mine ore from the Renard pit will be stockpiled ahead of a 1.0 by 1.25 metre surface jaw crusher supplied by Westpro Machinery. The material will be reduced to <250 mm. A secondary cone crusher will further reduce the size to <50 mm. The flowsheet has the potential for adding an x-ray sorter at this point to recovery large diamonds.

Tertiary crushing will be accomplished by passing the ore through high pressure grinding rolls (HPGR) to the final size of < 30 mm. It is interesting to note that the final grind size corresponds to a 200 ct octahedral diamond.

And this is another unique thing about

Renard. It has the potential for very large diamonds because the size distribution of the stones. Manson said they could recover a couple stones between 50 and 200 ct as often as every two weeks (at least that what the statistics point toward).

“And that’s just gravy,” he added. “The recovery of big diamonds is not reflected in our costs or feasibility.”

Kimberlite is scrubbed and screened before the screen overflow is treated in one of two 200 t/h dense media separator (DMS) circuits. From the DMS circuits, the diamond-bearing material goes to the recovery plant where diamonds are recovered using x-ray sorting technology.

Diamonds are then cleaned and packaged.

Diamonds will be shipped to Antwerp, Belgium, for auction. Stornoway is not going to do any cutting or polishing itself.

Underflow from the screens ahead of the DMS circuits passes over degritting screens and into a Westpro high rate thickener. Recycled process water is collected from this thickener.

Overflow from the screens and DMS circuits are centrifuged, and the dry processed kimberlite is loaded into trucks for the journey to the processed kimberlite containment (PKC) area.

Stornoway considered five different sites for the PKC facility, finally choosing a site north of the R2/R3 pit and the waste rock storage area. The site has enough capacity to contain all of the kimberlite

Runway and aprin taking shape.

42 | Canadian Mining Journal • October 2014

www.canadianminingjournal.com

treated over the life of the mine. PK will be dewatered using centrifuges at the processing plant, trucked to the PKC facility and dry stacked. The selection of dry stacking facilitates progressive reclamation and helps reduce closure costs.

The PKC facility includes engineered and compacted berms as well as erosion barriers. Any runoff water will be collected and treated before release. It will hold all tailings from the mine, including potential to mine what is now inferred resources. Neither the PK or separately stored waste rock are acid generating and have little potential to leach metals into the environment. The design of the PKC reduces the potential impact on local groundwater, allows progressive closure of the facility, and avoids potential impact on fish habitats.

The mine closure plan consists of allowing the pits to flood and revegetating the waste rock, PK tailings and the plant site.

A road enables heavy machines to access the site.

LOOKING FORWARD As this issue of CMJ went to press, work at Renard was moving quickly. The ground breaking ceremony was held on July 10.

Mobilization is proceeding. Two temporary construction camps have been built.

Work is underway on the permanent camp that is to be ready by the end of next March. Creation of the dry pads for the main surface facilities has started. The selection of long lead time equipment has

THE BROADEST PRODUCT LINE IN THE MINING INDUSTRY

begun. With commercial production targeted for the second quarter of 2017, from discovery to completion Renard was fasttracked all the way.

Stornoway is proving to be one of the brightest lights in the Canadian mining sky. And if there are more mineable kimberlites on the Foxtrot property (and no one doubts that there are), this is the company to make them economic producers.

CMJ

WHEREVER THERE’S MINING, WE’RE THERE.

MAC 18-14D

MAC 18-14A

Wherever there’s mining in Quebec and in Western Labrador, you’ll find Cat products hard at work – drilling and digging, loading and hauling, grading and dozing. You will also find a Hewitt Equipment Limited branch, providing unmatched support, expert service and integrated solutions. Superior products. World class service.

One source.

1 866 444-9944 | hewitt.ca

MAC 18-14D ANNONCE CIM 7X4.875-02.indd 1

October 2014 • Canadian Mining Journal14:52 | 43 2014-09-22

| Leadership

BUILDING BEYOND BORDERS Working abroad takes more than knowing how to mine

By Carl Friesen*

44 | Canadian Mining Journal â&#x20AC;˘ October 2014

www.canadianminingjournal.com

G

iven today’s difficult environment for mining, companies and financial sources want to put their money on a “sure thing” as much as they can, and this goes beyond hiring professionals with solid reputations for expertise in their specific fields.

In many cases this often involves publishing thought-leadership content too that demonstrates an understanding of the issues facing mining and the local people who are often impacted by a mine’s presence.

This can be on topics as diverse as ore evaluation and extraction plans, designing haul roads, developing underground ventilation plans, preparing heap leach pads, paste plant operation and closure plans.

NEWSJACKING A term from the world of content marketing, “newsjacking” means taking a news event that is of significance to the people you want to reach, and then developing content that shows your grasp of the issues.

For example, let’s say you’ve heard that there’s a new way to accurately assay rock in bulk (such as on a conveyor belt), to indicate the percentage of ore. An article on this topic might describe the new technology, indicate how it’s a significant improvement on current equipment, and then (and most important) give your analysis of what will change as a result of this development.

TREND CONTENT Similar to newsjacking, “trend” content describes a development (but the focus is on a slower change), that might get missed because it’s so gradual. If you’re in a position to understand the trend, you can perform a valuable service by bringing it to the attention of people who will be affected by it.

For example, the trend towards driverless haul trucks is likely to change a great deal about mining, and your analysis might drill down into what this means for safety; costs, mine design, staffing and other factors.

Another trend can be the rising importance of good closure plans, to

minimize long-term liabilities attached to the property.

It’s important to note that both newsjacking and trend content can focus on very narrow topics, provided they are of interest to the people you might want to reach.

An article on a new type of paste thickener might be of no interest to the general business market, but to a mining company looking to speed up the backfilling of stopes, for example, it might be big news indeed.

CASE STUDIES Stories are the oldest form of communication around, and that’s what a good case study is. To anyone in that specific field, it can be as gripping as a good detective novel. A case study works best if it proves a point or has lessons that can be learned from it -- and must also be on a topic that is relevant to the reader. For example, many mining companies are looking for ways to help improve their social and economic impact on people affected by their projects, so they will also be interested if you have demonstrated success in a project that improved the lives of people living in mining areas.

BEST WAYS TO PUBLISH YOUR IDEAS While many business professionals have their own regular blog, podcast, or channel on YouTube or SlideShare, it may be best for you to use opportunities that are already available. This means less work promoting your content, and a bigger audience for what you have to say.

ARTICLES IN MAGAZINES, AND GUEST BLOGGING Many business publications (hint: such as this one) are eager for well-written, informative content written by industry observers who have something relevant to say to their readers. Many rely on “expert” contributors to provide articles that are informative, authoritative and written with their readers in mind. These authors typically don’t get paid for the article, but then they don’t pay for the space either. A few success points: • Don’t make it a sales pitch. All you need to do is provide useful information that October 2014 • Canadian Mining Journal |

45

| Leadership showcases your expertise, and readers can get in touch. Editor Russ Noble is not interested in being part of your personal marketing program, and he will reject anything that sounds too promotional.

• Present your idea to the editor first: an email that describes your proposed article, reasons why readers of this

publication will be interested, a bulletpoint outline, and your qualifications to write on this topic.

• Pictures help — but be sure that you have the rights to use the images, so it may be best if you take your own photographs to go with your articles.

Many influential bloggers are inter-

Think Innovation, Durability, Quality • 100,000’s of Options • Same Quality • Same Lead Time

Find your storage solution at rousseaumetal.com

ested in providing other viewpoints for their readers (and also, maybe taking a break from writing) and so are often willing to consider guest blogs from other contributors. Present your idea first to see if they’re interested.

PUBLIC SPEAKING Like bloggers and editors, the organizers of professional events such as conferences and luncheons are always looking to fill their lineups with good public speakers.

Being a truly amazing public speaker isn’t generally as important as is having something relevant and useful to say.

A FEW SUCCESS POINTS: • Find the right person to send your idea too — many of these groups are run by volunteers, and there’s turnover on their Boards, so check first.

• Present your idea to the conference organizer in an e-mail along the lines described above.

• Be persistent — you may not hear back right away, so try phone calls, leaving messages, re-sending your concept, sending updates such as “Here’s a copy of an article I published on the topic I’d like to speak on.”

It may take a lot of effort to get the speaking engagement, but it’s a powerful position to be in — wearing a “Speaker” badge at a conference just seems to give

Durability

Many members of the mining sector are looking for expertise in fields such as creating economic and educational opportunities for people affected by mining projects -- such as people in Goma, eastern DR Congo, shown here.

Modular Drawer System " Get an unbeatable product with exceptional strength. " Other Rousseau product lines

1.866.463.4270 info@rousseaumetal.com

rousseaumetal.com

46 | Canadian Mining Journal • October 2014

www.canadianminingjournal.com

your conversations more weight, because you’re someone with authority. The presentation itself is a great way to bring across your personality, so that potential clients or employers are more likely to think, “I think I’d enjoy working with that person.”

YOUR LINKEDIN PROFILE If someone’s heard you present, or read an article or blog post you’ve written, they may want to know more about you.

And, their first stop will almost certainly be LinkedIn. So, take a quick look at your own profile — is there enough there to impress someone that you have expertise in your field of specialty? Or is your profile the equivalent of a ghost town? A few points: • Have a Summary that’s factual, but also one that brings across your personality as engaging and good to be with. Write it in the first person, and make it a story.

• Include full information on your Experience and your Education, to demonstrate what you have to offer.

• Have plenty of Recommendations, which are testimonials from people who know you — and one way to build that part of your profile is to recommend other people you’ve worked with, in hopes that they’ll return the favor.

• Include content — LinkedIn makes it easy for you to upload PDF versions of slide shows from presentations you’ve

given, articles you’ve published, infographics and other content that displays your expertise.

Demonstrating thought leadership is not a fast process, and one that takes years, but being seen as someone with subject-matter expertise can open many

doors and give you preference in career opportunities.

CMJ Carl Friesen, MBA, is Principal of Global Reach Communications Inc. of Mississauga ON. He is author of four books on thought leadership, most recently, “Your Expertise Edge: How firms supporting a more sustainable future can use their thought-leaders’ expertise to grow.” For more on this topic, see www. showyourexpertise.com.

High Performance Commercial Grade

Enterprise Networks

For 20 years, Galaxy has been providing reliable, affordable and innovative

enterprise communications

to companies with remote office and camp locations beyond the reach of fibre or cell coverage.

Innovative, Reliable and Affordable Network

Managed Services and Network Solutions

Best Integrated VoIP and Fax

Rugged Fixed and Auto-Deploy Systems

Supported by Local Partners across North America

1.877.463.9728 galaxybroadband.ca

October 2014 • Canadian Mining Journal |

47

| Company Profile: Yokohama Tires

48 | Canadian Mining Journal â&#x20AC;˘ October 2014

www.canadianminingjournal.com

ROCK

&

RUBBER

Mining tires face the harshest of conditions

By Russell Noble

R

ock and rubber are synonymous with mining because there are very few machines used in today’s mines that don’t rely on either tires or rubber tracks to keep material moving.

From deep underground at the face, to down in an open pit mine beneath a clear blue sky, machines used to drill, load and haul ore to the surface face rugged conditions every day and without the support of equally rugged tires (and tracks); most machines would not be able to perform.

In fact, the majority of today’s mining machines would be stopped in their tracks, so to speak, and would leave mine owners and operators with production slowdowns resulting in costly delays.

One company that recognizes the importance of reliable equipment and its impact on profits and losses is Yokohama Tire (Canada) Inc, and the role its highperformance tires play in many mines across Canada.

Established in 1917, Yokohama Rubber has continued to expand its business scope, making its presence known in North America and today the company has

October 2014 • Canadian Mining Journal |

49

| Company Profile: Yokohama Tires

1.

2.

THE ADJACENT PHOTOS: 1 & 2 (above) clearly show the size of the tires and equipment needed to handle the heavy loads found in today’s mines.

3) An underground tire (ready to be replaced) shows signs or wear thanks to harsh mine conditions.

4 & 5 (below) with new tires being installed on two different-size pieces of equipment.

3.

4.

50 | Canadian Mining Journal • October 2014

more than 30 subsidiaries and affiliates around the world with over 19,000 employees and $7 billion (Cdn) in annual revenue.

In other words, the company is huge and here in Canada, Yokohama Tire (Canada) Ltd. has been contributing to the bottom line since 1983 through the sale and distribution of tires from centres in Laval, Quebec, Brampton, Ontario and Langley, British Columbia.

As mentioned, Yokohama has been importing and distributing tires in Canada for more than 30 years and now ranks eight in the world in new tire sales behind frontrunner Bridgestone, followed in descending order by Michelin, Goodyear, Continental, Pirelli, Sumitomo and Hankook.

Like all tire manufacturers, Yokohama depends on research and development to stay competitive. Comprehensive R&D activities cover materials development, product design, testing and evaluation, while manufacturing of its various tires is handled by 22 manufacturing plants around the world.

Products range from conventional automotive tires, to those designed for high-speed racing, to large and rugged tires for on and off-road trucks, to tires designed for the massive machines required to operate in mines.

Ben Duyzer, a Senior OTR (Off The Road) Specialist at Yokohama Tire (Canada) Inc, in Langley, B.C., says, “Tires are one of the more widely used products found in society today and without them, much of the industrialized world would grind to a halt.

“Mining, in particular, depends on tires that are almost ‘bullet proof,’ so to speak, because of the payloads and rough conditions they face every day. No other tires get such a harsh beating on a day-

5. www.canadianminingjournal.com

WE BUILD PARTNERSHIPS THAT STAND THE TEST OF TIME 5.

With our industry leading expertise and in-house capital, we are here to help in good times and bad.

Yokohama Tire (Canada) Inc’s distribution centre in Langley, B.C. shows trailers lined up at the shipping/receiving doors and a container being unloaded at the 65,000-square-foot facility.

to-day basis and because of that, mine tires are expected to be stronger and perform longer.”

But as Duyzer said, mining is a tough test for any tire and as all mine owners and machine operators know, sidewall tears and straight punctures are almost inevitable on mine sites and keeping the supply chain at the ready is also a critical part of our distribution team.

Duyzer says the warehouse is stocked with tires of all sizes at all times and with a regular flow of them arriving in containers from Japan on a weekly basis, supplying mines in Canada is not a problem.

In fact, Duyzer is proud to say that with our dealer network across the country, tires can be delivered almost the next day to many mines in Canada.

Distribution and service, says Duyzer, are critical to the tire business especially when serving customers in the mining industry who often keep their machines operating 24/7, and with different operators who treat the machines with varying degrees of care and consideration.

It doesn’t matter how strong we make our tires, or how people treat them, Mother Nature is stronger and always throws new challenges our way to come up with a product that can withstand heat and cold, water and rock, and everything else in between.

“We think we’re doing a pretty good job for the miners of Canada but there’s always something new on the drawing board at Yokohama and we’re accepting the challenge of exploring new territories, just like the miners do,” says Ben Duyzer.

CMJ

Dundee Capital Markets is a full-service investment dealer focused on hard assets with principal businesses that include investment banking, research and institutional sales & trading.

dundeecapitalmarkets.com

DUNDEE CAPITAL MARKETS IS A REGISTERED TRADEMARK OF DUNDEE CORPORATION.

IDLERS | PULLEYS | IMPACT BEDS | ACCESSORIES

Heaviest Pulley in the Industry Industry leading pulleys fabricated from heavy schedule pipe for better performance and a longer life.

their shell our shell

Large trapezoidal crown angle provides superior belt tracking and ensures maximum concentricity.

A heavy haul truck gets a new set of tires.

A wide range of hub styles and lagging available

CONVEYING PERFORMANCE tf: 1.888.349.LUFF (5833)

Luff Industries Ltd.

w: www.luffindustries.com

e: info@luffindustries.com

October 2014 • Canadian Mining Journal |

51

In My Mine(d)

Innovation in progress for the Global Mining Industry

By Doug Morrison*

T

here are a great number of organizations serving the mining industry in Canada and The Centre for Excellence in Mining Innovation (CEMI) in Sudbury is one of them.

Since it was established in 2007, its mandate has been to direct and coordinate step-change innovation in the areas of exploration, deep mining, integrated mine engineering, environment and sustainability for the metal mining industry.

CEMI identifies, assesses and manages industry-focused applied research and development projects that extend from geology and engineering to the natural sciences. It offers a single point of entry for knowledge resources and human capital that enhances the scope, extent and impact of innovation for the global metal mining industry.

CEMI regards innovation as a threephase process: research, development and implementation (R&D+I). With commercialization, innovative ideas are operationally integrated into best practices that are socially responsible and attuned to community needs and expectations. We create capacity for excellence in innovation and add value to the economic development of the metal mining industry by collaborating with Canadian and global mining companies, universities, government researchers, consultants, and innovative small and medium sized enterprises (SMEs) in the service and supply sector.

Our aim is to impact key aspects of mining through innovation that will significantly improve or accelerate the costeffective, safe production of metals.

The Canadian hardrock metal mining community has the ability to be the primary source of innovation for the underground mining industry worldwide. The expertise that exists in the mines of 52 | Canadian Mining Journal • October 2014

A protective canopy is just one of the many innovative devices being promoted for use as a safety measure in mines.

Northern Ontario, Quebec and Manitoba, offer unparalleled opportunities to engage scientists and engineers from around the world, and with these organisations as partners, CEMI will become a leading source of innovation to this globally vital industry. We already have a track record of innovations and collaborative networks focused on mine construction and highstress conditions, and with our current focus on highly productive bulk mining below 2.5km, we are now are leading the way with the Ultra-Deep Mining Network (UDMN).

Acknowledging the importance of deep mining research, the Honourable Greg Rickford, Minister of Natural Resources awarded the UDMN $15 million through the Business‐led Networks of Centres of Excellence (BL‐NCE) program. This $46 million business-driven Network is supported by members of the mining and oil & gas industries, and many small to medium sized enterprises as well as industry agencies, research facilities and academia.

The goal of the UDMN is to help the mining industry develop and adopt commercially viable projects that lead to the deployment of innovative technologies.

Managed through CEMI, UDMN aims to

support solution teams capable of creating the tools and technologies in the next 1-3 years that will help bulk mining operations below 2.5km to operate more profitably and safely by improving operational productivity and human effectiveness.

With project participants based in several Canadian provinces, CEMI is now a Canadian leader in mining research, innovation and commercialization, and from this foundation we aim to expand Canada’s role in improving the performance of the mining industry globally.

We have active projects in every aspect of mining operations from mineral exploration, mine development, production efficiency, energy consumption, human factors, environmental impact and post-closure land use. We have also developed a comprehensive approach to mining innovation, integrating excellence from science, engineering, social, medical and commercial disciplines and we believe that the success of mining as a productive, safe and environmentally responsible industry in the 21st Century will depend, more than ever before, on such a multidisciplinary approach.

CMJ Doug Morrison is President of the Centre for Excellence in Mining Innovations (CEMI) of Sudbury www.canadianminingjournal.com

PROFESSIONAL DIRECTORY

SEPRO PUMPS

SLURRY · SUMP · FROTH · TANK · FLUID www.sepropumps.com · sepro@seprosystems.com · +1 (604) 888 5568

Long Lasting Piping The Right Lining Material for Different Applications

High Quality, Powerful, Cost Effective

and ready for delivery!

MINERAL PROCESSING AND AGGREGATE SPECIALISTS KALCOR® Zirconium Corundum KALOCER® High Alumina Ceramics

Material Combinations

Providing effective, environmentally responsible waste management solutions since 1994. www.ecosolutions.com

KALMETALL® Hard Steel

KALMETALL® W Hard Overlay Welding

Kalenborn Abresist

Coming Soon — 100% Solids Corrosion Resistant Linings!

email: randy@abresist.com or info@abresist.com

Kalenborn Canada

www.abresist.com

email: info@abresistkalenborn.ca

ADVERTISERS INDEX Andritz Separation Inc.....................13....................................www.andritz.com ASI Water...........................................21...............................www.asi-group.com BBA Inc..............................................19......................................... www.bba.com Breaker Techologies.........................2........................... www.rockbreaker.com Dundee Capital Markets..................35........www.dundeecapitalmarkets.com DUX Macinery Corp..........................37.......................www.duxmachinery.com Eco Waste Solution..........................37......................... www.ecosolutions.com Export Development Canada..........20...................... www.edc.ca/responsible Galaxy Broadband Communications...........................31.................... www.galaxybroadband.ca GoldCorp..............................................4..................www.goldcorp.com/careers Hard-Line Solutions..........................40................................www.hard-line.com Henkel Canada Corporation............39.................. www.henkelna.com/mining Hercules Sealing Products Canada..................... EMR15..........................www.HerculesCA.ca Hewitt Equipment..............................27........................................ www.hewitt.ca Kalenborn...........................................37....................................www.abreist.com Les Industries Permo Inc................38...........................www.permodome.com Luff Industries....................................35.........................www.luffindustries.com Mechanix Wear Canada...................7................... www.MECHANIXWEAR.CA Petro Canada................................. EMR2....www.lubricants.petro-canada.ca/ mining Redpath Mining.................................15...................... www.redpathmining.com Robert Transport................................9.....................................www.ROBERT.CA Rousseau Metal Inc.........................30..................... www.rousseaumetal.com Sepro Mineral Systems...................37..........................www.sepropumps.com SRK Consulting(Canada) Inc...........14...........................................www.srk.com Trojan tire Inc............................... EMR15............................www.trojantire.com Westpro Machinery Inc...................25............. www.WestproMachinery.com Zee Best T-Shirts..............................24.................. www.ZEEBESTTSHIRTS.CA

For Your Toughest Jobs With over 40 years of experience manufacturing and servicing underground equipment for mining projects worldwide, DUX offers outstanding reliability so you can maximize productivity at the lowest cost per ton.

Contact DUX for innovative field-proven haulage and utility solutions for your toughest jobs.

Underground Mining Equipment Worldwide DUX MACHINERY CORPORATION 615 Lavoisier, Repentigny, Quebec Canada J6A 7N2 TEL +1 (450) 581-8341 FAX +1 (450) 581-5138 www.duxmachinery.com

October 2014 • Canadian Mining Journal |

53

Unearthing Trends

Productivity challenge: Improving or transforming?

Zahid Fazal is a partner and EY’s Quebec Mining & Metals Leader. He is based in Montreal.

By Zahid Fazal

T

he commodity boom between 2000 to late 2012 led many mining and metals companies to turn their attention to production and mine development in order to get product out as quickly as possible but not as economically as possible. Innovation also slowed during this time compared to other sectors. As a result, both labour and capital productivity, on both a volume and cost basis, has been declining significantly in the mining industry for over a decade.

This challenge has come to the forefront in recent months. EY’s annual Business Risks Facing Mining and Metals Global Report reveals productivity as the top risk facing the sector this year. More than ever, productivity concerns are topping the boardroom and CEO agenda as executives begin to realize that regaining lost productivity will be critical for longterm profitability.

Making productivity gains is not as simple as further cost-reduction efforts.

The length of the super cycle and pursuit of growth led to a subversive change of the organizational DNA of many mining companies. Their structures, processes, performance measures and cultures have all drifted to favour growth over productivity.

The size of the problem is too large for conventional solutions to work. Real and sustainable productivity gains will only come from broad business transformation.

Unfortunately, many organizations see productivity as a phase after the slashand-burn of cost reduction and before the return to growth. When the focus on productivity is short term and/or temporary, it is unlikely that improvements will be sustainable. The quest needs to be long term and requires a change in culture across the organization from the boardroom to the pit.

MINING INDUSTRY OUR COMMITMENT TO QUALITY AND RELENTLESS ATTENTION TO DETAIL SETS US APART!

The mining industry is unique; it is often located in areas more or less isolated. Column-free steel structures covered with a tensioned fabric account to the industry for its exceptional advantages as it is easily installed, saving on time and costs compared to a conventional building.

Your equipment and materials are protected from inclement weather just as your staff can carry on with their work.

1 888 464-7376 THOUSANDS OF SATISFIED CUSTOMERS

2564, Bernard-Pilon Saint-Mathieu de Beloeil Québec, Canada J3G 4S5

www.permodome.com

54 | Canadian Mining Journal • October 2014

Transformation means that all systems, processes, interfaces and interlinks are well understood so informed decisions can be made. This may require significant adjustments including: • Changing mine plans • Reassessing mining methods • Making changes to equipment fleet and configuration • Reducing production • Increasing or reducing automation

Leading companies are not thinking productivity in a conventional way. They think about it with a value-chain view.

They are launching initiatives that will add to the long-term bottom line, instead of just moving the problem around. The most successful companies in addressing the productivity challenge demonstrate the following traits: • Bold and not incremental • Have a long-term vision and plan • Take an end-to-end view • Look for broad solutions • Eliminate silos • Align objectives to strategy • Set consistent performance measures for productivity that creates value • Address the behavioral and cultural settings necessary for sustainability • Learn from history, but are open to innovation • Deliberate in planning and executing their initiatives

Now is the time for mining companies to boost productivity. Doing so will help them regain ground lost over the super cycle, support innovation to recover lost competitive advantage, and help counteract shrinking margins.

CMJ www.canadianminingjournal.com

LOCTITE® NORDBAK® FAST CURE WEARING COMPOUND AND LOCTITE® NORDBAK® FAST CURE PNEU-WEAR

• Available in 6 lb. and a NEW 25 lb.

Kit Pail format.

Wear and corrosion are common causes for failure in industrial equipment. Loctite® Nordbak® Fast Cure Wearing Composites not only offer exceptional protection of new and worn equipment in a variety of applications, they also offer quick return to service when compared with standard wearing composite products.

• Fast Cure products work in less than half the time of conventional wearing composites • Easily identified by distinct blue colour - our regular cure speed wearing composites are gray • Ceramic-filled paste repair material to rebuilding and repair chutes, pumps, elbows cylcones, augers, and other material-handling equipment against pneumatic abrasion • Provides a durable sacrificial coating on protected surfaces • Thixotropic paste adheres to irregular vertical and inverted surfaces and does not shrink • Designed to combat Large or fine Particle Abrasions

To arrange direct factory support for your applications or to learn about additional Nordbak® wearing composites or backing compounds, call 1.855.436.5354 or visit henkelna.com/mining

All marks used are trademarks and/or registered trademarks of Henkel and its affiliates in the U.S. and elsewhere. ® = registered in the U.S. Patent and Trademark Office. © 2014 Henkel Corporation. All rights reserved. AD-186-14.