Canadian Mining Journal August 2021 by The Northern Miner Group

C A N A D A ’ S

F I R S T

M I N I N G

TOP TRENDS IN MINE DEVELOPMENT THE PSYCHOLOGY OF MINE SAFETY

40 S

A’ D A

TOP

Our annual ranking of producers

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CANADIANMINING

AUGUST 2021 VOL. 142, NO.6

JOURNAL

FEATURES 16 A Costmine analysis shows it pays to be a Canadian miner.

20 What mining leaders need to know about the link between psychological

CMJ safety and physical safety.

CANADA’S TOP 40

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25 Our annual ranking of Canada’s Top 40 miners. 35 Australia’s Newcrest Mining joins the Top 40.

CANAD IAN MINING NEW MINES

JOURNAL

40 Voisey’s Bay underground delivers its first ore. 44 CMJ looks at top trends in mine development – from contracting models to ESG considerations.

46 Four new mines coming to Canada.

CONVEYORS 51 Tips from Martin Engineering on designing safer conveyors. 58 Minimizing environmental impacts with sandwich conveyors. 59-60 News from ABB and PROK.

TRUCKS & VEHICLES

63 Miners and suppliers explore the potential of hydrogen fuel cell technology. 66 Choosing the right tire management partner. 68 How suppliers can help fill in the expertise gap for miners.

DEPARTMENTS

4 EDITORIAL | Canada’s Top 40 miners are flush with cash. 6 CSR & MINING | Carolyn Burns of the Devonshire Initiative explains how stakeholder mapping can help explorers establish positive local relationships. 8 UNEARTHING TRENDS | EY’s Dean Braunsteiner outlines the opportunities for miners in a hot capital market.

10 LAW | How miners can protect themselves against a rising wave of resource nationalism. 12 FAST NEWS | Updates from across the mining ecosystem. 70 ON THE MOVE | Tracking executive, management and board changes in Canada’s mining sector.

www.canadianminingjournal.com AUGUST 2021

About the cover: This months’s cover supplied by Sandvik.

Coming in September 2021 Canadian Mining Journal’s annual gold issue. Plus a report on remote mine site costing.

For More Information

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

CANADIAN MINING JOURNAL |

FROM THE EDITOR AUGUST 2021 Vol. 142 – No. 6

Canada’s Top 40 miners are flush with cash. What will they do with it? Alisha Hiyate

n this issue, we offer a snapshot of the past – and a glimpse of the future. First, our annual ranking of Canada’s Top 40 miners is based on financials from 2020 – a year when all businesses were forced to abruptly adjust to a global pandemic. The mining sector handled the onset of the pandemic admirably. Although 2020 was a challenging year, with miners absorbing the costs of pandemic protocols and temporary suspensions, they also benefited from a strong commodities rally that has boosted cash flows. This is especially so for gold and copper miners, who make up the vast majority of our Top 40. Now that strong commodities prices have pumped more cash into miners’ coffers, they need to decide how to deploy that capital. Returning cash to investors through higher dividends has been a popular option, with Barrick Gold, Newmont, Agnico-Eagle Mines and Kirkland Lake Gold among the gold miners raising their payouts to shareholders last year. Australia’s Newcrest, a newcomer to our Top 40, also announced a hefty increase earlier this year (see page 35). With the need to replace the reserves that are being mined so profitably, mine construction is also picking up, and a slew of feasibility studies have recently been released with more in the works. It seems clear that we are the top of a new construction cycle – with mines like Iamgold’s 70%-owned Côté gold joint venture with Sumitomo Metals and Mining, Argonaut Gold’s Magino gold project, Agnico Eagle Mines’ and Yamana Gold’s Odyssey development at Canadian Malartic, and Nouveau Monde Graphite’s Matawinie graphite project all recently starting construction. But while it is still early in the cycle, there are already signs of costs creeping up – largely because of pandemic pressures on the supply chain. Prices for steel and other construction materials are on the rise, with building contractors flagging increasing labour costs as a risk as well. At Côté, where construction began last fall, Iamgold reported an increase in capital costs in July. It now estimates its 70% share of costs at US$1.1-1.2 billion, up from US$875-925 million last year. That’s an increase of 27% if you compare the average of both estimates. Iamgold said the increase was driven by higher structural, mechanical, piping, electrical and concrete cost estimates for the process facility; higher mine facilities costs; increases in earthworks materials and manpower estimates; as well as certain scope changes. Inflation, currency exchange rates and costs related to Covid-19 also played a part. If cost pressures persist, there’s a danger we could we be in for another period of rampant capital cost escalation in the mining industry. The last one – only a decade ago – drove away investors and soured them on mining stocks. It’s essential that the sector avoid repeating that history. In our article on top trends in mine development (page 44), we highlight a few different ideas, including the use of fixed-bid EPC contracts. CMJ

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MINING JOURNAL

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JOURNAL

Editor-in-Chief Alisha Hiyate 416-510-6742 ahiyate@canadianminingjournal.com Twitter: @Cdn_Mining_Jrnl

CMJ •

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Interim News Editor Marilyn Scales CANADIAN MINING JOURNAL mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Advisory Board David Brown (Golder Associates) Michael Fox (Indigenous Community Engagement) Scott Hayne (Redpath Canada) Gary Poxleitner (SRK) Manager of Product Distribution Allison Mein 403-209-3515 amein@glacierrig.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales, Western Canada George Agelopoulos 416-510-5104 gagelopoulos@northernminer.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-888-502-3456 ext 3 Group Publisher Anthony Vaccaro

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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 Glacier Resource Innovation Group (GRIG). GRIG is located at 225 Duncan Mill Rd., Ste. 320, Toronto, ON, M3B 3K9. Phone (416) 510-6891. 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 Robert Seagraves at 416-510-6891. Subscriptions – Canada: $51.95 per year; $81.50 for two years. USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST 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: 1-888-502-3456 ext 3; E-mail: amein@glacierrig.com Mail to: Allison Mein, 225 Duncan Mill Rd., Ste 320, Toronto, ON M3B 3K9 We acknowledge the financial support of the Government of Canada.

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CSR & MINING

To build positive relationships ahead of exploration, start with stakeholder mapping By Carolyn Burns

ining exploration doesn’t happen in a silo. During exploration, stakeholder engagement is important because it sets the expectations and the tone for relationships throughout the life of mine. This includes relationships with the many people and sub-groups that make up the local community, local governments, and civil society organizations. A good relationship with local stakeholders during exploration builds the foundation for a site’s social licence to operate and a company’s capacity to meet permitting requirements throughout the life of mine. In recent years, there has been an increased interest from investors, mineral and metal end-users that engage with product consumers, home and host governments as well as civil society in companies’ relationships with local stakeholders. All of these groups want to see evidence that miners are building a quality relationship with local stakeholders and that this relationship is informing their social and environmental performance. Despite its benefits. there are a number of reasons why stakeholder engagement doesn’t happen. People don’t have the skills or resources, it’s not well planned, there is a general ‘fear’ of talking to people and sometimes we just lack the creativity to get out there and build relationships with new people. A great way to address these barriers is to plan for and schedule stakeholder engagement. Stakeholder mapping and analysis can kickstart good engagement with the people and groups you need to reach. There are five main steps to effective stakeholder mapping and analysis:

Understand your objective. Why are you doing this exercise? Most companies map stakeholders to identify people who are impacted by and can influence their project. Identifying these priority stakeholders will help you focus your time and resources on building relationships with the people and groups who matter most.

Identify all possible stakeholders. List out every group, sub-

group and person you can think of. Remember all the subgroups that make up the local community, including Indigenous Peoples, people who have land rights and groups that may be disproportionately impacted by your project and future mining activity. Remember that Indigenous groups may have rights to land and water that they don’t use everyday. Once 6 | CANADIAN

MINING JOURNAL

Stakeholder mapping and analysis can sound more complicated than it really is. At the heart of it, it involves taking the time to identify stakeholders and their interests, understanding how they can impact you, and making a plan to get to know them. you’ve made your initial list, identify stakeholder positions (what they say they want) and interests (why they want it). Don’t think of the local community as one group with the same positions and interests. They can have overlapping and conflicting feelings about mining activity. They may have many different positions based on their current land use and the history of mining (and other land-based activities) in the region. Start to record what you know, but don’t assume you know the full story. Review all the documents at your disposal, spend time googling and visiting local social media sites. Talk to peers, permitting officers, land departments and other stakeholders you already have a relationship with. When you start engaging with people, you can learn more and update your stakeholder register.

Map the stakeholders. Once you’ve identified all the stake-

holders, start to map them out based on who is highly impacted by your activities and who has influence. Don’t forget about groups with informal influence. Local governments and informal community leaders don’t always have formal decision-making authority over permitting processes, but hold significant soft power.

Map the connections. Once you’ve mapped everyone’s impact

and influence, use lines to visually represent how they are all related. This will help you understand who has influence over whom and understand the nuance and sub-text between groups. You won’t have access to all the priority stakeholders, so you may have to be thoughtful about building relationships through stakeholders with lower impact and influence. You also have limited resources and identifying a group that has influence and connections with multiple stakeholders can help you scale engagement activities. www.canadianminingjournal.com

Plan your engagement. Once you’re done mapping, you can plan to get out and talk to people. Think about who is most important and if you want to inform, consult, involve or collaborate with them. You should seek to build a strong relationship with any person or group that is highlight impacted by your work as well as those that can influence your activities. We don’t have unlimited amounts of time to talk to everyone, so be sure to prioritize. Engagement activities can include formal meetings and consultation, but also rely on informal interactions between you, your team and anyone you identified on the map.

Tips for building local relationships Now that you have a plan, you’re ready to start building relationships. Here are some last thoughts and tips. Mapping and planning doesn’t have to be fancy or take a ton of time. It does require you to be intentional and document your thoughts. Especially at the early stages of exploration, you can use basic charts and notebooks, you don’t need special software. Just by being present in an area, you’re starting to build a relationship with local stakeholders – so make sure it’s a positive one. Train your team and let them know who the priority stakeholders are, their expectations for how the team should behave, and the main messages you want to share with local

stakeholders. Lean on people in your team who are extroverts and enjoy getting to know people. If you’re invited to a community event or meeting, see it as an opportunity to learn something and have fun. Don’t forget civil society organizations. Non-profits, community-based organizations and religious groups are important stakeholders. They often have strong ties to the community and know the dynamics. Even if you don’t agree on everything, they can help you build relationships with community groups and be an advocate for you. If you leave them out, they will likely fill the void with their own information or opinions of your mining activity. Look for complementary interests. Local communities and stakeholder groups will have many different positions about your activities. Don’t take it personally. Understand that there are many interests that drive these positions. By understanding and respecting them you’ll start to see where people with divergent positions, actually have complementary interests. This will help you understand the real nuance and complexity of peoples positions and build strong and lasting relationships. CMJ CAROLYN BURNS is executive director of the Devonshire Initiative (www.devonshireinitiative.org), a multi-stakeholder forum that supports cross-sector collaboration to support sustained positive outcomes for mining-impacted communities.

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CANADIAN MINING JOURNAL | 7

UNEARTHING TRENDS

Riding the wave of today’s liquid market By Dean Braunsteiner

apital markets have been on a tear over the last 12 months as 2021 makes a splash with a record number of IPOs, mergers and acquisitions, and equity and debt raises. The Canadian IPO market in this year alone has raised over $4.3 billion – compared to approximately $7 billion in 2020 and $1.6 billion in 2019 – and the TSX has set new deal records in the first half of 2021 not seen in over 15 years. While it’s no surprise that the technology sector has been leading the way, we’re starting to see mining companies come to the forefront – including recent news of Triple Flag, the largest mining IPO on the TSX in the last nine years. It goes to show, while mining and metals may have Surging commodity been on the backseat, the re-emergence of prices are spurring commodity prices is spurring a lot more activity in the mining activity in the pipeline. And we can expect and metals pipeline. the current strong momentum in IPOs Right: Figures from EY’s and equity financings to continue through Q1 IPO report. the summer, fuelled by low interest rates CREDIT: EY and increasingly frothy markets. In fact, there are a number of mining companies, at various states of readiness, that the market is expecting to come through in the second half of the year – especially on the base metal side. Even more juniors and mid-tiers, which have been quieter in recent years, are getting involved. It’s not just about the IPO market; mining companies are raising a lot more capital in general. The British Columbia Securities Commission just recently listed mining as the largest capital-raising sector among B.C. companies, raising $8.1 billion in capital in 2020 – up 125% from the previous year. However, much of the capital flowing into Canadian mining companies has been from institutional and special investors. While it’s great to see increasing interest come from this group, there’s certainly room to grow in the retail space. The challenge is that sentiment remains fragile among generalists. There’s fear of a market correction on the horizon, with uncertainties over possible new waves of the pandemic stalling the economy recovery, the speediness of the vaccination program roll-out and potential disruptions to the financial system.

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MINING JOURNAL

IPOs on the main TSX and Venture exchanges

Retail participation is going to take more of an investment from companies as investors look for more prudence from the industry in terms of spending and return of capital. With limited profits from newly public issuers, investors will be paying more attention to additional indicators of future profitability, such as revenue growth, leadership teams, innovation and unique competitive advantages. Mining and metals companies looking to capitalize on the liquid environment will have to go to market with the right story. Although limited standardization in place, developing a solid environmental, social and governance (ESG) strategy will be crucial to securing capital. While having a strong narrative – that covers employees, communities, the environment and shareholders – will not only be a key differentiator against other companies across industries that are competing for the same investor attention, but help to generate greater shareholder returns and deliver long-term value. CMJ DEAN BRAUNSTEINER is the EY Canada Mining and Metals Assurance Leader, based in Toronto. For more insights, visit www.ey.com/ca_en/mining-metals.

www.canadianminingjournal.com

LAW

Resource nationalism: A clear and present danger to Canadian miners By Vasilis F.L. Pappas, Sharon G.K. Singh and Artem N. Barsukov

anadian mining companies are well aware of the risks associated with operating mining projects in developing countries. On any given day, a foreign government can impose new taxes, harsher royalty regimes, or even nationalize a project. Nevertheless, if one were to ask a Canadian mining executive a few years ago about the global investment environment, the response would have been more positive than it had ever been before. Developing nations were fiercely competing to attract foreign investment. Thousands of new investment treaties had come into force. It appeared a truly global marketplace was within reach, one governed by the acceptance of property rights and the rule of law. Fast forward to 2021, things could not be more different. A rising wave of populism, coupled with economic challenges exacerbated by the Covid-19 pandemic, and a renewed focus on environmental rights, Indigenous rights, and other social issues has paved the way for the re-emergence of resource nationalism in many developing nations. To give but a few examples, Tanzania recently announced it would renegotiate agreements with all foreign mining companies in its borders. Peru’s newly elected president vowed during his campaign to nationalize all foreign-owned mines. Mexico announced it would no longer grant new permits or concessions to foreign mining companies and indicated that certain mining operations could be nationalized. And the Kyrgyz Republic recently took over the Canadian-owned and operated Kumtor gold mine based on legislation that was introduced and passed into law in a single day. These are but a few examples of a trend that appears to be taking hold in many developing countries. This should be of grave concern to Canadian mining companies, which have roughly two-thirds of their assets located abroad, many in developing nations. For many Canadian mining companies, hostile government action can potentially destroy their entire businesses, virtually overnight. Miners can protect themselves The good news is that there are ways in which Canadian mining companies can protect themselves. To begin, investment treaties guarantee certain minimum standards of treatment and protections to foreign investors, absent which foreign investors have a direct right of action to sue the states hosting their investments in binding international arbitration before an independent and impartial international tribunal.

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MINING JOURNAL

Mining companies should ensure that their investments are structured to allow them to take advantage of these protections. These protections only extend to entities incorporated in countries with which the host state has an investment treaty and can be limited to certain corporate structures. Once a foreign government takes action, it is too late to restructure, so consideration should be given to corporate structure with all haste. Likewise, risk registers should be updated and robust response plans developed for a hostile government action, including government action premised on the basis of the corporation’s environmental, social and governance performance. Once such actions occur, there are limited windows of opportunity for steps to be meaningfully taken to protect foreign companies, with short timeframes and numerous pitfalls that may not be readily apparent that could result in the waiver of remedies to which foreign companies might otherwise be entitled. In the absence of investment treaty protections, companies should negotiate dispute resolution clauses in investment or concession agreements which would require any disputes be submitted to binding international arbitration in a neutral forum. A major advantage of international arbitration is that it benefits from the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which enables arbitral awards to be enforced in over 160 countries, and prevents states from seeking to compel resolution of disputes in their own courts. Finally, if hostile government actions do occur, mining companies should immediately seek advice from sophisticated international arbitration counsel. Many traps exist which could disqualify a mining company from investment treaty protections and arbitration, so advice should be sought as soon as possible from experienced arbitration practitioners. Likewise, arbitration counsel should be integrated into any government relations activities so a global strategy can be developed, maximum leverage obtained, and inconsistent positions that are so often the cause of frustrated investors avoided. As the old adage goes, failing to prepare, is preparing to fail. Given the rising tide of resource nationalism, Canadian mining companies would be well served to seek qualified legal advice by experts long before any hostile government action occurs. CMJ VASILIS F.L. PAPPAS is a partner and head of International Arbitration in Bennett Jones’ Vancouver and Calgary offices; SHARON SINGH is a partner based in Vancouver; ARTEM N. BARSUKOV is a a partner in based in Edmonton.

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FAST NEWS • PROCESSING |

Updates from across the mining ecosytem

Gekko successfully trials OLGA in Australia

Gekko’s OLGA can measure gold-in-slurry concentrations in real time. CREDIT: GEKKO SYSTEMS.

GEKKO SYSTEMS HAS collaborated with CSIRO and Evolution Mining’s Mt. Carlton operation to complete the first site-based trial of the Gekko OLGA (OnLine Gold Analyser). The OLGA is capable of directly reading gold in slurries and solutions to sub-ppm levels and is the first of its type to be installed and trialled in an operating environment. The fully self-contained OLGA module technology was developed by the CSIRO and commercialized by Gekko. It was installed in the flotation circuit at Mt. Carlton. Delivering an updated sub-parts per million (ppm) gold measurement every 10 minutes, OLGA provides insights into process performance that are unobtainable with assayed sample sets. This enables

• EQUIPMENT |

ABB, Hitachi to develop all-electric haul truck

ABB AND HITACHI Construction Machinery have signed a collaboration agreement to develop an electric rigid haulage truck with a customized on-board energy storage system. Using ABB’s innovative battery technology will enable trucks to transform from diesel to full electric operation. The electric vehicle draws the power needed from the overhead trolley wire while simultaneously charging the on-board energy storage system. The use of ABB’s high power and long life energy storage systems will reduce the vehicle’s curb weight and lower the initial as well as lifecycle costs of the vehicle. In-motion charging eliminates

12 | CANADIAN

real-time monitoring, helping mine operators to minimize gold losses from process excursions. The OLGA has now been successfully trialled on the flotation feed and flotation tails at Mt. Carlton and has been providing real-time feedback to the operational staff since December 2018. Having access to real-time feedback of the grades in these streams in higher resolution data than previous sampling intervals has enabled Mt. Carlton operational staff to make real-time decisions regarding the operation of the plant. The OLGA can detect short excursions (which were not visible in the existing assay regime) and longer-term trends and significant deviations. CMJ

MINING JOURNAL

recharging stops, and the vehicle’s operational efficiency and productivity are increased. When travelling downhill, regenerative braking allows the energy storage to recharge by converting mechanical energy into usable electrical energy, further improving the overall efficiency of the vehicle. There is a growing trend within the mining industry to electrify mining machinery to reduce the emission of greenhouse gases (GHG). Mine operators are looking to technology leaders to drive electrification and accelerate the process. Because of the need to reduce mining costs and increase

productivity at mining sites, efficient technology must be developed to contribute to the reduction of carbon dioxide while staying competitive and ensuring performance at the same time. This joint development is a first collaboration following the memorandum of understanding signed by Hitachi and ABB in March 2021 to accelerate the energy transition towards a carbon neutral future in mining. The two companies will join forces to collaborate in bringing solutions to the market that will reduce GHG emissions associated with heavy machinery used in mining. ABB’s energy storage solutions can also be used for static charging dump trucks, and the technology is ready for future fuel cell electric vehicles. CMJ www.canadianminingjournal.com

• COLLABORATION |

Rio Tinto, Schneider Electric partner to create circular ecosystem

RIO TINTO AND SCHNEIDER ELECTRIC have teamed up for a first-of-its-kind collaboration to develop a circular and sustainable market ecosystem for both companies and their customers. As part of the multi-product partnership, Schneider will use responsibly sourced materials supplied by Rio Tinto. These include low-carbon aluminum and copper produced with renewable power, iron ore, and borates. Rio Tinto will use energy and industrial services from Schneider, as the companies work together to develop digital platforms, technologies and solutions to be deployed across the metals and mining supply chain to drive further decarbonization. “Working together will allow Rio Tinto and Schneider Electric to pursue opportunities beyond what is possible for either company on its own,” Rio Tinto chief commercial officer Alf Barrios said. “This collaboration also opens doors to consider strategic initiatives such as expanding the use of artificial intelligence and predictive analytics to reduce downtime in our plants, digitization of our supply chains, and a host of other transforma-

AUGUST 2021

Low carbonfootprint aluminum billets produced by Rio Tinto. CREDIT: RIO TINTO

tive technologies.” The partnership will draw on Schneider Electric’s Energy as a Service expertise to evaluate the use of innovative solutions, including microgrids, to supply energy from low-carbon sources, and artificial intelligence and advanced analytics to help meet sustainability goals at Rio Tinto sites and throughout its supply chain. Rio Tinto’s START traceability and transparency initiative, the first sustainability label for aluminium using blockchain technology, will be deployed with Schneider Electric to unlock value for customers, suppliers and part-

ners. The companies will work to expand this transparency, offering START in combination with Schneider Electric’s EcoStruxure platform, an IoT system architecture that connects everything in an enterprise, from the shop floor to the top floor, to deliver enhanced safety, reliability, efficiency, and sustainability. The companies will also partner to evaluate emerging innovation opportunities, such as the efficient production of critical materials for renewable technologies and advances in low carbon, green steel manufacturing, both of which will play a significant long-term role in industrial decarbonization. CMJ

CANADIAN MINING JOURNAL | 13

FAST NEWS

Updates from across the mining ecosytem

• AUTOMATION |

• CRUSHERS |

Flanders, Tribe Tech eye automated RC drill rigs

INTERNATIONAL MINING drill automation specialists Flanders Electric and innovative reverse-circulation (RC) drill rig manufacturing and engineering company Tribe Technology, both based in Perth, Western Australia, have signed a memorandum of understanding to co-develop the next generation of automated RC drill rigs for resource definition in mining. Tribe Tech has put together one of the largest dedicated drill rig design engineering teams in the world to develop the world’s first completely unmanned RC drill rig, the first of which is being manufactured in Tribe Tech’s Belfast, Northern Ireland, facility for their first customer McKay Drilling, a Perth-based drilling contractor. “We’re very excited by the automation technology developed by Tribe Tech and delighted to be working together to bring our industry-leading drill control and monitoring technology to the world of RC drilling.” said Mike Lane, general manager of Flanders in Western Australia. Tribe Tech’s managing director Charlie King says the collaboration would position the companies to enable the development and manufacture of the world’s first fully automated RC drill rig for the mining industry. CMJ

Komatsu launches high capacity, compact Joy HRX 1000 crusher Joy HRX 1000.

THE NEW JOY HRX 1000 is a hard rock crusher designed to push the envelope on where sizers can be successfully applied. High capacity in a compact package make the HRX 1000 an excellent choice for hard rock underground or mobile applications. Utilizing Joy pick technology, the HRX 1000 is designed to cut through abrasive ma-

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MINING JOURNAL

CREDIT: KOMATSU.

terials that traditional sizers cannot. Having been used in an installed base of more than 10,000 pick-utilizing machines, including feeder breakers, longwall shearers and continuous miners, Joy pick technology has evolved to deliver the productivity customers are looking for in a variety of environments. With the introduction of the new HRX 1000, Komatsu expands its product offering of primary and secondary sizers. “Sizers have been successful for many customers, because they perform well where other types of crushers struggle. The HRX sizer is designed to crush harder, abrasive minerals, while providing all the benefits inherent to sizers: fines reduction and the ability to pass muddy, sticky material with no over-crushing,” said Charles Anderson, director crushing systems, Komatsu. “The HRX 1000 utilizes pick technology that has been proven with Joy and Komatsu crushing and mining products.” Recently Komatsu entered into an agreement with Metso Outotec to provide sizers for their stationary or mobile crushing stations. The first project involved the installation of a Joy HRX 1000 on the Lokotrack LT1510RC track plant. The sizer is crushing minerals used for cement production ranging from wet and sticky to hard rock. CMJ www.canadianminingjournal.com

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WAGES

he mining industry in Canada continues to be an integral part of the country’s economy, which according to the Mining Association of Canada, generated over $109 billion in revenue in 2019, and employed over 700,000 people. For this article, Costmine compared wages and benefits for Canadian mines that responded to our surveys from 20112020. Below is the average hourly base wage for selected titles. These job classifications are common at surface mines and show the general upward trend. Electricians at surface mines showed the biggest overall average increase for base wages from $33.39 per hour in 2011 to $42.82 per hour last year. Statistics Canada reported a nation average wage of $29.18 in 2020, clearly making mining a well-paid industry. Mechanics and haul truck operators also showed steady gains. When compared to the minimum wages across Canada, even the lowest paid mine

Costmine analysis shows big salary gains for electricians By Krita Noyes

labourers received 58% to 87% more in base wages. But these average base wages aren’t the whole picture. Benefit packages also add up. Mines in Canada are required to pay for unemployment and workers’ compensation insurance and all of the mines in our recent surveys offered vacation, sick leave, life insurance, disability insurance, and most offered supplemental retirement plans in addition to the mandated Canada Pension Plan. Bonus plans are also an important part of the compensation packages for most successful North American mines, and Canadian mines are no exception. In 2020, 45 of the 69 Canadian mines responding to our survey reported including bonus plans in their compensation packages. When Costmine began tracking this information in 1990, considerably less than half the surveyed mines offered some type of bonus plan. These plans can easily increase a miner’s pay

by 10 to 15% and in some cases, considerably more. Some of these plans are very sophisticated, offering bonuses for meeting or achieving individual, group or corporate goals in safety, productivity, cost savings, environmental protection, profit, and other matters of importance to the success of the operation, such as commodity prices. The more innovative plans contain mechanisms to encourage continued improvement, beyond meeting previously established goals. Despite the temporary shutdown of several mines during the Covid-19 pandemic, the initial response from our 2021 survey indicates that, once again, Canadian miners will benefit from a better than cost-of-living increase of 2-3%. CMJ Since 1990, Costmine has been surveying operating Canadian mines for the latest in mining wages and benefits. For more information or to purchase these studies, please contact Costmine +1 (509) 328-8023 or www.costmine.com.

10 years of change Surface Mines

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Electrician

33.39

34.10

35.24

37.84

37.99

40.07

41.00

41.81

40.92

42.82

Mechanic

33.30

33.80

34.56

37.08

37.44

39.56

40.37

41.03

40.34

42.31

Heavy Equipment Operator

31.35

31.78

33.20

34.74

34.78

36.66

37.28

37.32

37.14

38.56

Labourer

24.67

25.45

26.34

27.95

28.38

28.61

29.61

29.62

28.54

29.32

Sources: Canadian Mine Salaries, Wages & Benefits, published annually 2011-2020. Published by InfoMine USA

16 | CANADIAN

MINING JOURNAL

www.canadianminingjournal.com

Image: dannyfroese/iStock

IT PAYS TO BE A CANADIAN MINER

PROVIX CAS: RealTrac Proximity Detection ALERT ZONE

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Personnel Tag: Increased vibrating and illumination

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The person has entered the «Danger» Zone. The audible alarm is activated & the «Alert» sign flashes on the display.

EMERGENCY ZONE

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The person has come very close to the vehicle & collision is possible. When an object enters the «Emergency» Zone a constant audible alarm is activated & the «Emergency» sign flashes frequently on the display.

The Provix RealTrac Proximity detection and CAS system provides positioning, localization, alert notification and tracking of people, equipment and other objects in underground and in open areas, wherever the use of global navigation systems is impossible or inefficient. Additionally, the RealTrac system is scalable to provide voice communication and data transmission between monitored objects as well as between system managers. Complete back and front office application software, site mapping, AI and IOT functionality is fully enabled. Implemented at underground mines, open pits and industrial sites; RealTrac uses UWB Ultra Wide band and UHF technology to provide positioning accuracy to within 10 centimeters. Two way tag communication enables operator awareness and pedestrian notification of equipment proximity. Contact Provix for Increased Safety & Productivity! sales@provix.net | www.provix.net (705) 424-9960 | +1 (888) 434-0253

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SUPPLIED CONTENT

A LASTING INFLUENCE TITAN ENVIRONMENTAL CONTAINMENT OFFERS INNOVATIVE SOLUTIONS FOR HIGH-PERFORMING ACCESS ROADS, SPILLWAYS AND TAILING FACILITIES

itan Environmental is a Canadawide company with a suite of geosynthetic and civil construction products – including trademarked products– that offer innovative solutions to some of the most common problems in the mining industry. Take, for instance, building an access road on swampy terrain or saturated sub-soils. The typical solution calls for aggregate, aggregate and more aggregate. Even then, long-term stability is hard to achieve and accidents in heavy haul trucks are inevitable. But with Titan’s Swamp Grid™ geogrid, the volume of aggregate can be reduced by as much up to 40% and the roadbed is far more stable than a conventional base. Titan president Kelly Sitarz describes the product as a geotextile with high filtration properties and a high-strength biaxial geogrid surface. “It’s a very cost-effective product,” Sitarz says. “You roll it out over the swamp like a carpet then pour aggregate over the Swamp Grid™, which works like a snowshoe. It disperses the weight of the load. With a more stable structure you have less accidents.” A great example of this is a Mine Haul Road stabilization project in Northern Ontario using Titan’s Swamp Grid™. This project involved construction of haul roads built on compacted clay with blast rock/ granite. These haul roads extend into a mine pit providing passage for rock dump trucks weighing several hundred tons. The conventional solution for this challenge would consist of using 1.0m of compacted crushed rock backfill (aggregate base) over the compacted

clay subgrade. However, the Swamp Grid™ solution provided the mine with significant cost savings by allowing them to use 0.7m thick aggregate base rather than 1.0 m thick. This reduced overall construction costs while also decreasing environmental impact from aggregate harvesting and hauling. Mine-Shield Grid™ is Titan’s other trademarked product and was developed for use underground in hard or soft rock mines. It is an alternative to the steel mesh, shotcrete and rock bolts typically used to stabilize tunnel roofs, ribs and walls. The product comes in two types of material – polyester and polypropylene with fire retardant and anti-static properties, the one ideal for roofs, the other for ribs and walls. Either product can be produced to specific roll lengths, widths and grid aperture opening without compromising the structural integrity. “It’s a great advancement,” says Sam Bhat, Titan’s CTO of Geosynthetics. “Mine-Shield Grid™ is lightweight, high strength and easy to install. It can reduce the installation time for long wall screenings from weeks to days and is also much safer to handle than steel mesh reducing risk of injury.” The specifications of both Swamp Grid™ and Mine-Shield Grid™ have been tested and verified by technical experts at several leading Canadian universities and accredited independent third-party laboratories. In addition, says Bhat, Mine-Shield Grid™ has been put to the test and been proven effective at underground mines in Australia since 2015. Titan has rounded out its suite of

products for mining applications by acquiring exclusive Canadian distribution rights to Concrete Canvas®, which was developed in Britain, and Bituminous Geomembrane (BGM liner). Ron Drewry, Titan’s Concrete Canvas® Specialist, describes it as concrete on a flexible roll that hardens when properly hydrated. The product is used around the world in 54 countries in numerous applications, including the mining sector. In Canada, Concrete Canvas® used in mining projects in British Columbia, the Yukon and Ontario for spillway and channel lining, among other things, or underground for mine vent wall construction to reduce ventilation costs, which are major cost in any underground mining operation. Concrete Canvas® is a multi-layered product with an impermeable PVC backing, a dry concrete interior interspersed among a 3D fibre matrix and a fibrous outer surface, which allows for hydration. It comes in thicknesses of five, eight and 13 millimetres, and three

Above: BGM liner installation showing material liquification and sealing process using specialty heat torch and weighted roller.. PHOTO CREDIT: TITAN ENVIRONMENTAL CONTAINMENT Left: Concrete Canvas® being laid during spillway channel lining project. PHOTO CREDIT: TITAN ENVIRONMENTAL CONTAINMENT

Mine-Shield Grid™ in mine tunnel roof reinforcement application. PHOTO CREDIT: TITAN ENVIRONMENTAL CONTAINMENT

Swamp Grid™ in access road construction project.

formats – bulk rolls, batched rolls or wide rolls. Drewry says it is a low-cost, easy to install alternative to shotcrete, which is typically used in spillways and vent walls. “It’s extremely simple,” he adds. “You lay it out, cut it to length, seal it and hydrate it. It’s a lot easier to work with than shotcrete. It’s cleaner and takes less people to install.” He notes that, “One of the most impressive Concrete Canvas® projects in Canada has been the Eagle Gold Mine spillway erosion protection project done in 2019. This one involved installation of 8,240m² of Concrete Canvas® lining two lengthy spillways, which was completed in 11 days.” Drewry goes on to explain

that the mine had considered using poured concrete with an applied coating however that option involved significant logistical requirements and much slower installation rates. Ultimately Concrete Canvas® was chosen as it allowed the project to be completed quicker, and it was also more economical. A look into the project is offered in this video case study. Bituminous geomembrane is an ideal mine cap or tailings pond liner. The interior comprises two layers of electrostatic bitumen and a single layer of non-woven polyester reinforcement pressed between outer layers of puncture-resistant polyester film. It can be installed at temperatures as low as

PHOTO CREDIT: TITAN ENVIRONMENTAL CONTAINMENT

minus 30 centigrade, which extends the window for constructing a tailings facility. It can be cheaper and easier to install than clay liners, especially if there is no clay on site, and there is no danger of erosion. Since BGM is not a conventional geomembrane it does require specialized installation techniques for efficient execution, which Titan has mastered. This was evidenced last summer at a pond dam raise lining project at a mine in Northern Ontario where Titan was called in to support a less experienced installer whose slow production rate were causing project delays. Putting their expertise with BGM to work, Titan’s field crew installed a recordbreaking 9,347 m2 of BGM in 1 day, while adhering to stringent quality control and safety audits. “We’re happy to have these products and installation expertise in our arsenal,” says Sitarz. Indeed, with BGM liner, Concrete Canvas®, Swamp Grid™ and Mine-Shield Grid™ Titan has a suite of complimentary products for mining sector solutions extending from access roads to spillways and tailings facilities, and taken together, can reduce the capital and operating costs of a mine. Apart from that, Sitarz points out that Titan’s products can reduce the carbon footprint of a mining operation and that is an increasingly important consideration in an era of heightened shareholder vigilance and ESG. n For collection of case Studies on mining projects using Concrete Canvas®, Mine-Shield Grid™ and BGM visit: https://www.titanenviro.com/ resource-centre/case-studies/

SAFETY

THE MISSING IMPERATIVE:

PSYCHOLOGICAL HEALTH AND SAFETY IN MINING I

t is no hidden fact that mining can be a dangerous industry. The Canadian Centre for Occupational Health and Safety (CCOHS) reports that Canada’s mining industry employs more than 400,000 workers in mineral extraction, smelting, fabrication and manufacturing. “Although injuries and fatalities have been on the decline, and despite a core emphasis on safety culture, there are still workers who lose their lives or are injured while performing their jobs in mining environments,” reads CCOHS’s Drilling Down on Mine Safety report, which also describes hazards as “an everyday, constant reality” in the sector. There are a variety of systems in place to try and prevent these accidents, including compulsory training programs, simulation tests, blasting training and licensing, and up-to-date safety legislation and standards. Many companies, though implementing 20 | CANADIAN

MINING JOURNAL

and reiterating their safety protocols, experience a rise in critical safety incidents and fatalities. This rise can be linked to the correlation of physical safety and psychological safety in the workplace. Safety incidents can have long-lasting impacts on a company’s reputation and investment viability. This is something that Canadian mining companies can’t afford as the competition for skilled workers is fierce, causing a skills gap in the sector. Also, at the forefront of conversations amongst mining companies is the importance of ESG – environmental, social, and governance – which is a formula being widely discussed and used as the baseline for the re-evaluation of safety, ethics, and overall culture within organizations. Now is the time for mining companies to focus on psychological safety, to both improve their reputation www.canadianminingjournal.com

Image: tap10/istock

By Susan Eick

Respect and meaningful relationships with superiors help to cultivate a successful and safe workplace. This requires supervisors that have both the skills and credentials to carry out the job e ecti ely and nderstand ho to engage with and lead their team members in a safe and respectful manner. would not report minor safety incidents to their superiors for fear of being punished. Respect and meaningful relationships with superiors help to cultivate a successful and safe workplace. This requires supervisors that have both the skills and credentials to carry out the job effectively, and understand how to deal with, engage and lead their team members in a safe and respectful manner. The leaders of this mine site lacked those basic characteristics, putting frontline workers at a higher risk for serious accidents.

and credibility, and to attract and retain skilled workers. Refinery, the Vancouver-based leadership development firm that I lead, was called in to help a mining organization that was experiencing a marked increase in injuries and incidents at one of its underground mine sites. This increase occurred even though the company had been carrying out routine safety demonstrations and displayed safety protocols on signs and posters around the site. After conducting interviews with front-line workers and supervisors, the underlying issues reveal a disturbing reality. Within large mining organizations, there is often a fear culture imposed on employees by their superiors which promotes production before safety, as employees feel pressured to perform to the superiors’ expectations – no matter what. In this case, miners reported feeling psychologically ‘unsafe,’ and as a result they AUGUST 2021

Psychological Safety The focus on psychological safety in mining, particularly at mine sites, has been gaining attention in the industry. Timothy R. Clark, author of The Four Stages of Psyhological Safety, defines psychological safety in the workplace as a condition in which human beings feel (1) included, (2) safe to learn, (3) safe to contribute, and (4) safe to challenge the status quo. When an organization reaches a Level 4 culture of psychological safety, it means that employees feel included and heard, and also that their leaders have established an environment where they are allowed to learn and make mistakes. Without a solid balance of permission and respect, psychological safety cannot exist and that makes way for varying degrees of paternalism or exploitation that can create a dangerous work environment where small mistakes can result in injury or death. An absence of psychological safety in these environments can be a major contributor to the increased levels of stress, anxiety and depression for mine workers, who, according to a 2019 Mining Mental Health Study, reportedly experience higher rates of psychological distress, compared to workers in other industries. So, what does a mentally healthy workplace look like? According to the Mineral Council of Australia’s Blueprint for Mental Health and Well-Being: “A mentally healthy workplace creates a positive working environment that builds individual skills and resilience, reduces workplace risks to mental health problems and supports staff with mental health conditions.” There is a good reason for a renewed focus on psychological safety in mining, as we see the impact of mental health issues hitting the bottom line of mining organizations. The Australian Mine Safety Journal estimated in 2014 that poor mental health will cost the mining industry between $320 million to $400 CONTINUED ON PAGE 22

CANADIAN MINING JOURNAL | 21

SAFETY million per year or around $300,000 to $400,000 for an average mine of 170 staff. Applying that math to a larger mining company that operates several operations globally, one can see instantly how the mental health of employees can hit the organization’s bottom line in a dramatic way. The impact of safety incidents on an organization’s ESG score can also be significant. In an October 2020 article, Why ESG is Integral to Analysis of Mining Companies, investment management firm T. Rowe Price noted that safety incidents can have long-lasting effects on a mining company’s reputation, credibility, and ultimately, viability as an investment. “That’s because authorities have the power to place a company into state curatorship or even revoke a company’s mining licence in a worst-case scenario,” reads the article. Unfortunately, the impacts above don’t include the hidden costs of increased employee attrition, decreased employment brand quality, under-reported medical issues, and lack of employee engagement, which further impact a company’s viability. Does your organization have a problem? Figuring out if your organization has a culture of psychological safety might sound daunting but it’s well worth the effort. Collecting a balanced mix of qualitative and quantitative data to fully understand the situation is vital. There are many ways to go about this, including interviews and surveys of employees and leaders in the organization, observing team meetings (and not-

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22 | CANADIAN

MINING JOURNAL

ing whether there is healthy, open debate, feedback and sharing of ideas), and talking with your contractors and vendors to understand how they are being treated by internal employees. Once you gain a full understanding of where your organization stands regarding psychological safety you can come up with a plan of action to mitigate any issues. Bringing in a third party of professionals that deal with identifying psychological safety issues and developing solutions can make the process easier and more effective by eliminating subjectivity, minimizing bias and most importantly, increasing the level of safety for those invited to provide confidential feedback about the environment they work in. efinery s approach Refinery designed a three-part strategic intervention program for the specific mining site menioned above, and its employees. This involved working with upper, mid-level and front-line managers of the plant to adapt their behaviours and outlooks to foster a culture of safety. Front-line workers started to take accountability for their relationships with their leaders, and hold them accountable for their behaviours, and those leaders became more open to learning how to deal with the psychological aspect of management. Changing the culture of psychological and physical risk into one of safety takes time and cannot be fixed by providing safety training programs alone. However, after just four months of the program, each member of the upper management team was able to openly identify their weak points that they needed to work on in order to improve as a leader. These small steps become massive leaps when it comes to moving an organization’s culture towards being safer and more sustainable. Sustainable Psychological Safety and the Experiential Learning Theory Creating and sustaining a culture of safety in a mining organization calls for an integrated development approach that combines solid leadership practices and safety practices. Any organization is ultimately a collection of people, culture, attitudes and behaviours. If your organization prides itself in having a strong safety culture, consider if psychological safety is included as a priority. Making steps towards improving the safety of your organization will allow your company to stand out and give your workers the peace of mind knowing they are comfortable with where they work and who they work for. These issues are important to workers and their families. Having their safety and security not just physically but mentally as your number one priority will make all the difference in the quality of the individuals your organization can attract. Now is the time for your organization to be actively planning to target psychological safety initiatives at all levels. Building a strategy of development that combines leadership development and safety leadership is a starting point toward a culture of sustainable, physical and psychological safety for all employees. CMJ Susan Eick is CEO of Refinery (www.refineryleadership.com), a global leadership development firm that specializes the mining and resources industries. www.canadianminingjournal.com

As the mining industry cycles into an upswing, exploration is needed more than ever. New deposits are harder to reach and in demand. Specialized drilling is the key. Major Drilling is the world leader in specialized drilling. It responds to global demand being established in 20 countries on five continents. The company has strategically updated its diverse fleet of 600 surface and underground drills, and boasts a workforce 3,500 strong. “Over 40 years in the business has honed Major Drilling’s ability to address drilling requirements for distinct equipment and techniques in areas that are difficult to access,” Denis Larocque, Major Drilling President and CEO, said. Services include deep hole, directional and heli-supported drilling to reach deep, underground, remote, or high-altitude locations. Each drilling project adheres to top safety standards—an area where Major Drilling excels with world-class safety programs. The 2021 acquisition of Australian drilling company, McKay Drilling, adds 20 innovative drills, many with rod handling capability, to the fleet. It’s a strategic continuation of acquiring quality equipment, retaining top talent, and effectively responding to market cycles to maintain a strong balance sheet. Customers across all categories seek specialized drilling expertise to increase exploration for commodities including gold, copper and battery minerals for electric vehicles and new technologies. Major Drilling is effectively positioned for the surge. The company also strives to maintain its positive path of sustainability based on a solid ESG framework. Undoubtedly, Major Drilling will continue to be a formidable, specialized drilling partner for the mining industry.

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40 ’S

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GOLD AND COPPER MINERS RIDE PRICES HIGHER CMJ News Editor Marilyn Scales takes an in-depth look at the performance of Canada’s top 40 mining companies Clockwise from top left: Rocanville mine in Saskatchewan. CREDIT: NUTRIEN; Lihir mine in Papua New Guinea. CREDIT: NEWCREST MINING; Detour Lake mine in Ontario. CREDIT: KIRKLAND LAKE GOLD; Gold produced Tanami mine in Australia. CREDIT: NEWMONT; Nevada Gold Mines’ Carlin mine. CREDIT: BARRICK GOLD. Wassa mine in Ghana. CREDIT: GOLDEN STAR RESOURCES

AUGUST 2021

CANADIAN MINING JOURNAL | 25

40 A’S

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TOP 40

REVENUES TOP $125 BILLION AUSTRALIA’S NEWCREST JOINS TOP 10 By Marilyn Scales

26 | CANADIAN

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he Canadian mining industry counted much success in 2020 despite a year that saw shutdowns due to the Covid19 pandemic. Concerned about the health of its workforce and local communities, in many cases miners chose to temporarily suspend operations rather than risk spreading the virus. Temporary shutdowns continued throughout the year at individual sites as outbreaks occurred, but the industry as a whole weathered the interruptions and adopted new safety protocols without major production losses. Long-time readers of CMJ’s Top 40 Canadian mining companies will not be surprised to note that once again potash producer Nutrien has taken the top spot with revenues of $28 billion. It was also the No. 1 revenue generator in last year’s list www.canadianminingjournal.com

Left: Barrick Gold’s Pueblo Viejo mine in the Dominican Republic. CREDIT: BARRICK GOLD

Right: The geology team at Newmont’s Tanami mine in Australia. CREDIT: NEWMONT

Below: Haul trucks at Teck Resources’ Carmen de Andacollo mine in Chile. CREDIT: TECK RESOURCES

and in the previous year. Created in 2018, Nutrien combined the assets of both Agrium and Potash Corp. of Saskatchewan, both of which had dominated our list for a decade. Being a potash producer may lack the prestige of being a gold producer, but we expect potash dominance to continue. There are 7.7 billion people – all of whom need to eat – living on our finite planet. Moreover, the amount of arable land is shrinking due to rising sea levels, warming climate and urbanization. As the population continues to grow, potash will remain a key means to getting the most food from our farmlands. Gold and copper dominate After Nutrien, the Top 40 are dominated by gold and copper AUGUST 2021

miners. More than half of this year’s list – 23 companies – are primary gold miners. Three are copper-gold miners and nine primary copper miners. Together, they account for 87.5% of Canada’s biggest revenue-generating miners. Both gold and copper were winners overall last year, which saw the Covid-19 pandemic begin in earnest in March 2020. The gold price spiked above US$2,000 per oz. last August, driven by uncertainty around the pandemic and waves of stimulus spending globally. And while copper sunk to just above US$2 per lb. last March, it soared to US$3.50 by the end of the year and has hit US$4.70 in 2021 – boding well for copper miners in next year’s Top 40. CONTINUED ON PAGE 30

CANADIAN MINING JOURNAL | 27

Canadian dollars |

All figures in the tables are expressed in millions of Canadian dollars.

A’S

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Canada’s Top 40 by gross revenue C$ millions 2020

2019

Rank 2020

Rank 2019

Company

Ticker

Primary output

Revenue

Net income

Operating cash flow Revenue

Net income

Operating cash flow

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

1 3 2 4 5 6 7 11 — 8 16 9 10 13 17 18 14 15 25 19 12 22 26 39 23 21 24 29 31 27 36 34 38 40 41 43 45 44 33 —

Nutrien Barrick Gold Newmont Teck Resources First Quantum Minerals Kinross Gold Agnico Eagle Mines Kirkland Lake Gold Newcrest Mining* Lundin Mining B2Gold Yamana Gold Cameco Pan American Silver Iamgold Wheaton Precious Metals Hudbay Minerals Turquoise Hill Eldorado Gold Franco-Nevada Centerra Gold China Gold Int’l SSR Mining Equinox Gold Torex Gold Alamos Gold New Gold Pretium Resources Dundee Precious Metals Champion Iron Gran Colombia Gold First Majestic Silver Ero Copper Argonaut Gold Golden Star Resources Taseko Mines Copper Mountain Mining Sierra Metals Trevali Mining Mountain Province Diamond

NTR ABX NGT TECK FM KL AEM KL MCM LUN BTO YRI CCO PAAS IMG WPM BHBM TRQ ELD FNV CG CGG SSRM EQX TXG AGI NGD PVG DPM CIA CGM FR ERO AR GSC TKO CMMC SMT TV MPVD

Potash Gold Gold Diversified Copper Gold Gold Gold Copper-gold Copper-gold Gold Gold Uranium Silver Gold Gold-silver Copper Copper-gold Gold Gold Gold Gold Gold-silver Gold Gold Gold Gold Gold Gold Iron Gold Silver Copper Gold Gold Copper Copper Copper-zinc Zinc-lead Diamond

28,017 16,977 15,405 8,948 6,967 5,645 4,205 3,296 2,910 2,736 2,397 2,092 1,800 1,794 1,664 1,469 1,463 1,445 1,376 1,367 1,263 1,158 1,143 1,130 1,057 1,002 862 828 817 785 524 488 434 429 364 343 342 331 285 227

615 4,843 3,372 (944) (300) 1,821 685 1,055 741 253 900 273 (53) 236 466 681 (194) 663 130 351 548 153 188 28 146 193 (106) 351 261 121 (38) 31 70 19 (24) (24) 50 36 (330) (263)

1,948 7,259 6,553 1,600 2,161 1,798 1,597 1,763 1,329 758 1,274 828 57 619 299 1,025 320 497 571 1,077 1,246 348 468 311 458 493 395 425 264 220 249 143 163 127 80 106 122 90 13 52

1,329 6,129 3,855 (588) (68) 961 634 750 299 253 423 303 (74) 149 286 115 (461) 639 99 461 (126) (43) 75 (27) 95 129 (99) 55 (96) 148 (178) (54) 123 (125) (105) (53) (26) 12 (47) (129)

899 3796 3,840 3,500 1,191 963 1,182 1,231 600 214 659 699 527 241 79 673 417 458 222 842 600 212 196 102 403 348 354 302 133 231 188 146 (5) 99 31 43 51 54 86 79

*Newcrest figures are for the 12 months ending June 30, 2020

28 | CANADIAN

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26,912.56 13,021 13,052 11,934 5,450 4,686 3,343 1,849 2,399 2,537 1,549 2,160 1,863 1,810 1,427 1,154 1,658 1,562 828 1,131 1,843 (795) 813 378 859 915 846 650 541 655 437 488 382 360 273 329 288 307 517 276

CONTINUED ON PAGE 29

www.canadianminingjournal.com

Runners-up C$ millions 2020 Rank 2020

Rank 2019

41 42 43 44 45

— 37 — — —

Company

Ticker

Primary output

Wesdome Gold Mines Osisko Gold Royalties Capstone Mining Lundin Gold Victoria Gold

WDO OR CS LUG VGCX

Gold Gold Copper Gold Gold

The only truly diversified miner on our list is TECK RESOURCES, holding down the No. 4 spot with $9 billion in revenues. The company reported $2.4 billion in copper sales, $2.7 billion in zinc sales, $3.3 billion in steelmaking coal, and $432 million in blended bitumen sales.

Revenue

Net income

215 214 182 180 179

51 16 1 (63) 15

2019 Operating cash flow Revenue

102 108 82 153 112

Net income

Operating cash flow

41 (234) 4 (159) (10)

71 92 94 (28) (5)

164 393 185 nil nil

NYSE:NMG TSXV:NOU FSE:NM9

GREEN BATTERY MINERALS TO POWER THE ENERGY REVOLUTION Developing what is expected to be Western World’s largest and most advanced graphite project providing a localized and carbon-neutral alternative to Chinese supply

THE FINE PRINT We recognize that revenues are an imperfect way of looking at companies, as they discount the value of near term expansions and development projects. Since the cutoff for our Top 40 can be close, we have also included a runners-up table to highlight other companies generating strong revenues. Please see also the criteria for our Top 40 eligibility, which is unchanged from past years. Differences in reported revenue figures between this year and last are attributable to different exchange rates used to convert U.S. dollar figures for each year. For comparability purposes, note that cash flow from operations is calculated after changes in working capital. Financial results are largely impacted by commodity prices and exchange rates. We use the Bank of Canada’s exchange rate when converting U.S. to Canadian dollars: for 2020 the average was US$1.00 for C$1.34. And because so many of our Top 40 miners are gold producers, for reference the average price of gold in 2020 was US$1,770 per oz., compared to US$1,393 in 2019.

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CANADIAN MINING JOURNAL | 29

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HOW WE CHOOSE THE TOP 40 To be eligible for CMJ’s Top 40 Canadian miners list, companies must meet two of the following three criteria: 1 Be domiciled in Canada. 2 Trade on a Canadian stock exchange. 3 Have a significant share of an operating mine or advanced development in Canada.

Oilsands C$ millions 2020 Company

Ticker

Primary output

Canadian Natural Resources Cenovus Energy MEG Energy Suncor Energy

CNQ CVE MEG SU

Oil sands Oil sands Oil sands Oil sands

Revenue

8,763 7,514 786 10,827

2019

Net income

(1,283) (580) 16 (3,796)

Revenue

10,835 10,838 992 17,602

Net income

1,007 1,920 26 (427)

Sometimes we have been tripped up and non-Canadian miners shave slipped onto the list. However, we have put extra effort into checking the eligibility of all the miners on the current list. We remain open to the suggestions of our readers. Equinox Gold’s Aurizona mine in Brazil. CREDIT: EQUINOX GOLD

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Continuing with the Top 40, gold miners occupy the next two slots on our list. Barrick Gold is No. 2 with revenues of $17 billion, and Newmont is No. 3 with $15 billion. The record high prices for the yellow metal in 2020 did not hurt either of these companies, and with prices remaining strong in 2021, both will likely be near the top of the list again next year. The only truly diversified miner on our list is Teck Resources, holding down the No. 4 spot with $9 billion in revenues. The company reported sales last year of 277,000 tonnes of copper (with a value of $2.4 billion), 646,000 tonnes of zinc ($2.7 billion), 22 million tonnes of steelmaking coal ($3.3 billion), and 11.6 million barrels of blended bitumen (approximately $432 million). Teck is also a producer of germanium, indium, cadmium, silver, fertilizers, and industrial products. Rounding out the 10 best revenue generators are copper and gold producers. At No. 5 is First Quantum Minerals with $7 billion from both copper and gold sales. Then come three gold producers: No. 6 is Kinross Gold with $5.6 billion; No. 7 is Agnico Eagle Mines with $4.2 billion; and No. 8 is Kirkland Lake Gold with $3.3 billion in revenues. More copper-gold producers follow: No. 9 Newcrest Mining with $2.9 billion and No. 10 Lundin Mining with $2.7 billion. All these companies maintain international operations in all corners of the globe. While most of the other 30 miners on the list are copper and

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PROVEN PERFORMANCE USING THE LATEST TECHNOLOGY

Largest revenue gains year-over-year C$ millions

24 8 19 11 29 23 35 2 5 28 16 7 25 9 20 6 31 30 34 37 3 15 33 26 10 38 36 1 27 32 14 12 13 18 17 40 4 21 39

Equinox Gold Kirkland Lake Gold Eldorado Gold B2Gold Dundee Precious Metals SSR Mining Golden Star Resources Barrick Gold First Quantum Minerals Pretium Resources Wheaton Precious Metals Agnico Eagle Mines Torex Gold Resources Newcrest Mining Franco-Nevada Kinross Gold Gran Colombia Gold Champion Iron Argonaut Gold Copper Mountain Mining Newmont Iamgold Ero Copper Alamos Gold Lundin Mining Sierra Metals Taseko Mines Nutrien New Gold First Majestic Silver Pan American Silver Yamana Gold Cameco Turquoise Hill Hudbay Minerals Mountain Province Diamond Teck Resources Centerra Gold Trevali Mining

2020 Revenue

1,130 3,296 1,376 2,397 817 1,143 364 16,977 6,967 828 1,469 4,205 1,057 2,910 1,367 5,645 524 785 429 342 15,405 1,664 434 1,002 2,736 331 343 28,017 862 488 1,794 2,092 1,800 1,445 1,463 227 8,948 1,263 285

2019 Revenue

378 1,849 828 1,549 541 813 273 13,021 5,450 650 1,154 3,343 859 2,399 1,131 4,686 437 655 360 288 13,052 1,427 382 915 2,537 307 329 26,912 846 488 1,810 2,160 1,863 1,562 1,658 276 11,934 1,843 517

Revenue change

198.9% 78.3% 66.2% 54.7% 51.0% 40.6% 33.3% 30.4% 27.8% 27.4% 27.3% 25.8% 23.1% 21.3% 20.9% 20.5% 19.9% 19.8% 19.2% 18.8% 18.0% 16.6% 13.6% 9.5% 7.8% 7.8% 4.3% 4.1% 1.9% 0.0% -0.9% -3.1% -3.4% -7.5% -11.8% -17.8% -25.0% -31.5% -44.9%

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Operating Cash Flow 2020, C$ millions Rank 2020 Company

Revenue

21 20 16 8 11 28 26 31 27 9 25 2 3 19 23 12 33 37 14 18 29 6 7 5 36 22 34 32 30 10 24 38 40 35 17 15 4 1 39 3

1,263 1,367 1,469 3,296 2,397 828 1,002 524 862 2,910 1,057 16,977 15,405 1,376 1,143 2,092 434 342 1,794 1,445 817 5,645 4,205 6,967 343 1,158 429 488 785 2,736 1,130 331 227 364 1,463 1,664 8,948 28,017 285 1,800

Centerra Gold Franco-Nevada Wheaton Precious Metals Kirkland Lake Gold B2Gold Pretium Resources Alamos Gold Gran Colombia Gold New Gold Newcrest Mining Torex Gold Resources Barrick Gold Newmont Eldorado Gold SSR Mining Yamana Gold Ero Copper Copper Mountain Mining Pan American Silver Turquoise Hill Dundee Precious Metals Kinross Gold Agnico Eagle Mines First Quantum Minerals Taseko Mines China Gold Int’l Argonaut Gold First Majestic Silver Champion Iron Lundin Mining Equinox Gold Sierra Metals Mountain Province Diamond Golden Star Hudbay Minerals Iamgold Teck Resources Nutrien Trevali Mining Cameco

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Operating Op CF/ cash flow Revenue

1,246 1,077 1,025 1,763 1,274 425 493 249 395 1,329 458 7,259 6,553 571 468 828 163 122 619 497 264 1,798 1,597 2,161 106 348 127 143 220 758 311 90 52 80 320 299 1,600 1,948 13 57

98.7% 78.8% 69.8% 53.5% 53.1% 51.3% 49.2% 47.5% 45.8% 45.7% 43.3% 42.8% 42.5% 41.5% 40.9% 39.6% 37.6% 35.7% 34.5% 34.4% 32.3% 31.9% 31.9% 31.0% 30.9% 30.1% 29.6% 29.3% 28.0% 27.7% 27.5% 27.2% 22.9% 22.0% 21.9% 18.0% 17.9% 7.0% 4.6% 3.2%

Champion Iron’s Bloom Lake operation in Quebec. CREDIT: CHAMPION IRON

gold producers, there is also one uranium producer (Cameco at No. 13), two primary silver producers (Pan American Silver at No. 14 and First Majestic Silver at No. 32), one iron ore producer (Champion Iron at No. 30), and a diamond miner (Mountain Province Diamond at No. 40). As is customary, we have also created a list of five runners-up, including new entrant Lundin Gold. Again, this year we have segmented the oilsands miners. Their lot is not a happy one as oil prices tanked last year on collapsing demand, and continue to be under pressure with a global push away from fossil fuels and toward renewable energy. The four oilsands producers for which we could segregate Alberta production had total revenues of $27.9 billion. Despite billions in revenues, three out of four had net losses totalling $5.7 billion this year. The Aussies are coming! Looking to the future we see an influx of Australian miners to Canada. The potential richness of our resources makes this a country worth examining. The shift has already begun. Newcrest Mining earned a spot at No. 9 by virtue of its 70% share and position as operator of the Red Chris copper mine in British Columbia. Undoubtedly, the bulk of its revenues come from mines in Australia and Papua New Guinea, but it is included for Red Chris and the fact that its shares now trade on the TSX (see story on page 35.) At the risk of leaving some out, here are several other Australian companies taking a keen interest in Canada. Auteco Minerals is exploring the former Pickle Crow gold mine in northern Ontario; Santa Barbara bought out Atlantic Gold in Nova Scotia; Evolution Mining now owns the Red Lake gold operations in Ontario that are due for a renaissance, and recently bought Battle North Gold for its Bateman project; Galaxy Resources wants to mine lithium on the property it holds near James Bay in northern Quebec; Indiana Resources CONTINUED ON PAGE 34

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Looking to the future we see an influx of AUSTRALIAN MINERS to Canada. The potential richness of our resources makes this a country worth examining. The shift has already begun.

is 50% owner and operator of the St. Stephen nickel-copper-cobalt property in New Brunswick; Austral Gold owns the Clapperton copper-molybdenum property in British Columbia; and Sayona Mining plans to acquire North American Lithium and its Authier lithium carbonate project in Quebec. In addition, Vital Metals has high hopes for the Nechalacho rare earths project in the Northwest Territories, and Paladin Energy still holds the Michelin uranium exploration property in Labrador, although development is hampered by a ban on such projects in the province. Several Australian companies also have interests in coal projects on the east slopes of the Rocky Mountains. They were granted leases last year when the Alberta gave the go-ahead to coal exploration and development. The province has since done an about-face, but the leases remain valid. What will ultimately happen remains unclear. The environmental review panel for the Grassy Mountain colliery near Cranbrook, B.C., recently gave that proposal the thumbs down. The property is ultimately owned by Hancock

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Prospecting, headed by Australia’s richest woman, Gina Rinehart. Also in B.C. is the proposed Telkwa coal mine near the town of the same name and 90% owned by Allegiance Coal, another Australian company. Whatever the outcomes of the individual Canadian projects in which they are interested, watch to see if more Australian companies find their way onto future Top 40 Canadian miners CMJ lists.

Net Income 2020, C$ millions Rank 2020 Company

16 18 21 28 11 6 8 29 2 15 20 9 3 26 23 7 33 30 37 25 14 22 12 38 19 10 32 34 24 1

Wheaton Precious Metals Turquoise Hill Centerra Gold Pretium Gold B2Gold Kinross Gold Kirkland Lake Gold Dundee Precious Metals Barrick Gold IAMGold Franco-Nevada Newcrest Mining Newmont Alamos Gold SSR Mining Agnico Eagle Ero Copper Champion Iron Copper Mountain Torex Gold Pan American Silver China Gold Int’l Yamana Gold Sierra Metals Eldorado Gold Lundin Mining First Majestic Silver Argonaut Gold Equinox Gold Nutrien

Revenue

Net income

NI/ Revenue

1,469 1,445 1,263 828 2,397 5,645 3,296 817 16,977 1,664 1,367 2,910 15,405 1,002 1,143 4,205 434 785 342 1,057 1,794 1,158 2,092 331 1,376 2,736 488 429 1,130 28,017

681 663 548 351 900 1,821 1,055 261 4,843 466 351 741 3,372 193 188 685 70 121 50 146 236 153 273 36 130 253 31 19 28 615

46.6% 45.9% 43.4% 42.4% 37.5% 32.3% 32.0% 31.9% 28.5% 28.0% 25.7% 25.5% 21.9% 19.3% 16.4% 16.3% 16.1% 15.4% 14.6% 13.8% 13.2% 13.2% 13.0% 10.9% 9.4% 9.2% 6.5% 4.4% 2.5% 2.2%

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Newcrest Mining’s 70%-owned Red Chris copper-gold mine in B.C. CREDIT: NEWCREST MINING

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NEWCREST EXPANDS INTO NORTH AMERICA Aussie miner seeks to replicate Cadia block cave success at Red Chris

By Alisha Hiyate

t’s not often that we see a lot of movement at the very top of our Top 40 list. Last year was an exception as U.S.based Newmont became eligible for a spot at No. 2, following its merger with Goldcorp in 2019 and subsequent listing on the TSX. This year, we have another established gold major joining our top 10 – Australia’s Newcrest Mining. Newcrest began as Newmont Holdings – an Australian subsidiary of Newmont Mining – in 1966. It became Newcrest in 1990, when it merged with Australmin Holdings and then BHP Gold. In 2019, 53 years after its founding, it officially expanded into Newmont’s home base of North America with its acquisition of a 70% interest in the Red Chris copper-gold mine in British Columbia. The acquisition, as well as the purchase of a gold prepay, streaming facility and offtake agreement on production from Lundin Gold’s Fruta del Norte mine in Ecuador, have served as AUGUST 2021

Newcrest’s entry into North America. Citing increasing interest in the gold sector from North American investors, the company listed on the TSX last October – becoming eligible for inclusion in CMJ’s Top 40. “A North American listing is part of our strategy of pursuing growth in the Americas following our 70% acquisition of the Red Chris mine in Canada in 2019 and our investments in Ecuador,” said Sandeep Biswas, Newcrest’s managing director and CEO at the time. Noting that 32% of the company’s shareholder base was already in North America, he added: “We believe the TSX listing will improve the global visibility of the company and broaden our access to the large North American capital pool.” Newcrest already had several much larger operating assets than Red Chris closer to home. Those include its flagship Cadia gold-copper mine in New South Wales; its Telfer open pit and underground gold and copper mine in Western Australia, and its Lihir open pit gold mine in Papua New Guinea, where refractory ore is treated using pressure

oxidation before it is recovered via conventional leaching. So what drove it to expand into new territory so far from home? In addition to the opportunity to diversify into North America and acquire a producing asset in a world-class jurisdiction, the Melbournebased miner sees Tier 1 potential in Red Chris. Newcrest, which already operates a 1.4-km deep block cave operation at Cadia, believes the same mining technique can revitalize Red Chris – currently an underperforming open pit mine. “We believe we can bring our unique technical capabilities to unlock the full value potential of this orebody in one of the premier gold districts in the world,” said Sandeep Biswas, Newcrest’s managing director and CEO, in the March 2019 announcement. “The geology of Red Chris is similar to our Cadia orebodies in Australia and we will be applying our considerable experience in exploration, open pit mining, caving and processing to maximize the value of Red Chris and the opportunities in the continued on page 36

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surrounding region. We look at this opportunity in the same way as we do with Cadia, where we have proven we can create significant value from deep underground porphyry orebodies.” $1 billion investment In 2019, Newcrest paid US$806.5 million in cash to Imperial Metals for its majority interest and operatorship in Red Chris and 230 sq. km in surrounding land holdings. (Imperial retained a 30% stake.) Since then, Newcrest has completed well over 100,000 metres of drilling, and in March, released an updated resource for Red Chris and approved $135 million in spending on an exploration decline. The decline will support work needed to prepare a prefeasibility study on a block cave operation at Red Chris, which is due before the end of September. Newcrest is looking at the potential for a block cave

operation starting production in 2027. However, it also sees potential to mine high-grade pods it has discovered through drilling for early cash flow before then. Block caving is a bulk method of underground mining for lower-grade deposits with a substantial vertical dimension. Its use has made Cadia a very lowcost mine: in the quarter ended March 31, 2021, the operation set a new record for the lowest all-in sustaining cost (AISC) of negative US$160 per oz., after byproduct credits. Red Chris holds measured and indicated resources of 980 million tonnes grading 0.41 g/t gold and 0.38% copper for 13 million gold oz. and 3.7 million tonnes of copper. This includes an openpit subset of 310 million tonnes grading 0.28 g/t gold and 0.34% copper and an underground contribution of 670 million tonnes at 0.46 g/t gold and 0.4% copper.

E N G I N E E R I N G

Record free cash flow Like the other gold and copper miners in our Top 40, 2020 was a good year for Newcrest. For its half-year ended Dec. 31, 2020, the company reported record free cash flow of US$439 million (Its fiscal year runs to the end of June). Newcrest also adopted a new dividend policy to target a payout of 30-60% of cash flow to shareholders, up from 10-30%. The company reported revenue of US$2.2 billion and a statutory and underlying profit of US$553 million. Across its operations, Newcrest produced 1 million oz. gold, 69,000 tonnes of copper and 445,000 oz. silver for the six month period. All-in sustaining costs were US$974 per oz. Red Chris contributed 24,000 oz. gold, 13,000 tonnes copper and 57,000 oz. silver at an AISC of US$2,961 per oz. of gold. CMJ

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TECHNOLOGY TRENDSETTER ABITIBI-TEMISCAMINGUE, QUEBEC. While the LaRonde Mining Complex is often regarded as the mine that created Agnico Eagle, LaRonde Zone 5 is the project that is turning heads today as the site of two firsts for the North American mining automation.

ive hundred kilometres north of Montreal, the town of Val d’Or in the Abitibi region of northwestern Quebec is rich with mining history. Dubbed “Valley of Gold” in a gold rush in the early 1900s, Val d’Or has persevered through the many booms and busts that have occurred since and has been home to many major miners. Perhaps most famous among them is Agnico Eagle, which established its flagship underground gold mine, the LaRonde Mining Complex, in the area in 1988, initiating the start-up of a now widely recognized global gold miner. Mining operations superintendent Luc Girard describes LaRonde Zone 5 as a small mining area within the larger LaRonde Mining Complex. “The people who work at LaRonde Zone 5 have a strong interest in new technologies,” Girard says. Agnico Eagle uses the site as a testing ground for new technologies, later to be implemented at the company’s other mines around the world. A 4G LTE cellular signal is present throughout the underground mine, a first in the Canadian mining industry that streamlines the mine’s communications abilities, and 51-tonne driverless trucks emerge from the portal like clockwork loaded with rock every 30 minutes while there appears to be no workers on site. One technology that the mine has been focused on testing since 2018 is Sandvik’s AutoMine platform. In three short years LaRonde Zone 5 has evolved its AutoMine system from a single loader working in an isolated stope, to three Sandvik LH517i loaders, and four Sandvik TH551i trucks, working extra autonomous shifts throughout the week to increase the mine’s production by 10 percent. During 2021, Girard explains,

that fleet will grow again to four Sandvik LH517i loaders and six Sandvik TH551i trucks. “Within a month the operators at LZ5 were able to become familiar with the Sandvik system,” says Devin Wilson, the superintendent of technical services. “It’s not a very complicated system. Once you know what’s going on it’s really very easy to use.” Although learning the system may have been quick, LaRonde Zone 5’s application of AutoMine is unique and brought challenges. Sandvik’s AutoMine system at LaRonde Zone 5 was the first deployment in North America to autonomously haul ore from the production level up a haulage ramp to the stockpile, and it includes automated traffic control along the way. Automation is typically considered for applications where routes are repetitive, such as a transfer level, but in an open stoping application the situation is quite different. At LaRonde Zone 5 there is no dedicated automation zone. On any day the automation zone could be different. “It’s really a dynamic process for us,” Wilson says. “In the past, AutoMine and automation has really been used to move muck from point A to point B. What we’ve done at LaRonde Zone 5 is try to make more of a dynamic process where on one day we might be in one spot and the next day in another spot.” Mine automation specialist Marc St Pierre checks the production plan daily and programs new routes that the trucks and loaders will drive. “The trucks go anywhere we ask them to go,” he says. “They will be going up to the surface in one assignment and then they are going to be assigned to another task at a different level.” Wilson explains the mine’s LTE

network has been critical to facilitate the constantly changing routes of the AutoMine fleet. “No matter what, we have communication with LTE and this is what has allowed us to have automation throughout our whole mine,” he says. In addition to utilizing the AutoMine system in this dynamic environment, LaRonde Zone 5 had a vision of automating a full mucking and hauling cycle, from the stope all the way to the stockpile on surface, which meant autonomous trucking on the haulage ramp, a second North American-first in the same mine. Equipment is operated manually during the mine’s day and night shifts, but during shift changes and over weekends the entire mucking and hauling cycle is completed from a surface operations room. A Sandvik LH517i will start in a drawpoint where the AutoMine operator will engage tele-remotely to take a bucket from the stope. Then the loader will tram autonomously to a loading bay, automatically raising its bucket as it approaches a Sandvik TH551i and an operator tele-remotely dumps it in the truck. Once the truck is loaded an AutoMine operator will send it to surface by route of the haulage ramp. Automated traffic management permits

AGNICO EAGLE Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States, Sweden and Colombia.

multiple AutoMine-connected vehicles to use the haulage ramp at the same time, to prioritize loaded trucks over empty ones, and to manage the movement of the trucks safely. Wilson explains that there are wait points along the haulage ramp for an empty truck to pull off the ramp to allow a full truck to pass. “Sandvik has done a good job of putting in place good traffic logic,” he says. “Everything just happens by itself and it is a fluid movement of the vehicles. All we really have to do is send equipment from point A to point B and the traffic logic works everything else out.” Automating the mucking and hauling cycle has provided LaRonde Zone 5 with 48 extra production hours per week as the mine can now work autonomously through two night shifts on the weekends, and two shift changes per day. “The key with automation at LaRonde Zone 5 is that we have been able to take advantage of those down times that we previously couldn’t bring muck out of our mine with and now we can use

them,” Wilson says. Typically, he says, the AutoMine operators can make four trips of a Sandvik TH551i truck over a shift change and 40 trips during a weekend night shift, amounting to an average of 136 extra trips per week. “With the use of AutoMine, our figures show that we have increased our daily tonnage capacity by 10 percent,” Girard says. In 2020, tonnage mucked and hauled autonomously in otherwise unproductive time was 12 percent and the targets for 2021 are even greater. “Our objective for 2021 is 17 percent but when the stars align and we have stopes in the right spot and the system is running well, we can move as much as 20 or 25 percent of our muck with automation,” Wilson says. “Some of the productivity gains have really surpassed what we originally expected. Without automation we could not have increased our tonnage from 2,000 tonnes per day a couple years ago to 3,000 tonnes per day today.” The benefits the mine has seen extend beyond increased daily tonnage. As

Girard explains, the mine has had no medical injury claims or lost-time injuries in the three years since they have been using AutoMine. “By using AutoMine to muck development ramps or to transport the ore out of the site, you remove miners from these potentially more hazardous areas,” he says. According to Wilson, one challenge the mine experienced was cultural. He said the best way to help employees overcome that challenge was by demonstrating how AutoMine could improve their health and safety performances. “Once they have seen how effective the system can be, they are quickly converted to supporters,” Wilson says. “Some of the operators have said to us that it’s going to extend their careers into the future, being able to operate from surface. There’s no way we would have been able to get where we are today if we didn’t believe in it, if we didn’t have the support from the management all the way to the muckers underground.” Girard and Wilson agree that the collaboration between LaRonde Zone 5 and Sandvik has been crucial to the mine’s success. “When we do business with a supplier of equipment or services, the first thing we look for is cooperation from that supplier, and then it’s service, service, service,” Girard says. “Sandvik was always with us to accompany us and find a solution to one of our problems and it is for that reason that we are where we are today with automation,” Wilson agrees. The mine plans to continue pushing the boundaries of what AutoMine is capable of, introducing new technologies into the mine and blazing the trail for more mines to follow. “Based on the situation and our needs Sandvik is a great choice for automation,” Wilson says. “We have been dreaming about this technology for the last 10, 15 or 20 years but for the first time I think we can say it’s here, it’s ready, it’s mature.” n Kate Parkinson/Photo: Christian Leduc

MINE DEVELOPMENT

VALE UNLOCKS NEXT PHASE OF

Voisey’s Bay $1.7B investment in undergound development extends mine life to 2034 eration with local aboriginal groups, an innovative financing ne of the largest nickel deal for byproduct cobalt and deposits in the world has operational efficiencies both on been given a new lease on site and at Vale’s Newfoundlife. Vale’s Voisey’s Bay propland-based Long Harbour erty in northern Labrador, opProcessing plant provided by erating as an open pit mine engineering and project mansince 2005, was nearing the agement firm Hatch. end of its production life. Construction for this new Instead, innovations in partphase, dubbed the Voisey’s Bay nerships and technology will Mine Expansion (VBME), allow Vale to go underground began in 2016. Exploration and develop two new orebodaround the Ovoid deposit ies that will extend the life of identified two major deposVoisey’s Bay to 2034. Vale’s Voisey Bay nickel mine in northern Labrador. CREDIT: VALE its, Reid Brook and EastFirst ore production on the ern Deeps, located at depths new underground phase of from 200 metres to 900 metres Vale’s Voisey’s Bay project was announced duction phase, the development of two underground close to the current open pit on June 11, with full production capacity new underground mines – Reid Brook and Ovoid deposit. Underground mining for slated to be reached by August. Following Eastern Deeps – at the northern Labra- these two new deposits will be conducted the completion of the above ground pro- dor site was made possible through co-op- via two decline and ramp systems.

By David Keating

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Left: First production from the Voisey’s Bay expansion was announced in June. Below: The underground expansion will extend the life of mine to 2034. CREDIT: VALE

The expansion of the Voisey’s Bay project is welcome news for the province, with the construction phase having employed 650 workers. The new underground phase of Voisey’s Bay will produce about 40,000 tonnes of nickel-in-concentrate annually, creating 400 new full-time positions. Other highlights of the new investment include increased power generation, expanded accommodations and onsite offices and maintenance shops and new conveyer systems. The existing concentrator, port and support facilities, as well as the Newfoundland-based Long Harbour Processing Plant, will continue their current roles in production. A key driver for the $1.7-billion expansion is the burgeoning demand for battery minerals. Vale signed a 2018 stream financing deal worth $690 million for the sale of byproduct cobalt with Wheaton Precious Metals Corp and Cobalt 27 Capital Corp. The transaction, “one of the world’s biggest cobalt stream to date,” AUGUST 2021

A key driver for the $1.7-billion expansion is the burgeoning demand for battery minerals.

according to Reuters, made the large investment possible. “By unlocking the value of the cobalt byproduct at Voisey’s Bay through this streaming deal, Vale has found a way to resume substantive work on the underground project,” said Eduardo Bartolomeo, Vale’s base metals executive officer, on the announcement of the deal. Reported in 2018, Voisey’s Bay has reserves of 32.4 million tonnes – underground reserves estimated at 23.6 million tonnes - with a nickel grade of 2.13% and

a cobalt grade of 0.13%. Open pit mining operations of the Ovoid deposit are scheduled to ramp down through 2021 and 2022. Critical metals future Ed Moriarity, executive director of provincial industry association Mining NL, is optimistic about the growing demand for battery minerals and its potential for the province. According to Moriarity, the market for critical minerals used in electric vehicles and other green technologies is forecasted to grow by 500%. Newfoundland and Labrador is already a significant producer of copper, cobalt and nickel – with companies like Search Minerals working on the development of rare earth element deposits in Labrador. “I see substantial opportunity for Newfoundland and Labrador to lead the country in critical minerals development. We have the experience, know-how and resource base to realize long term sucCONTINUED ON PAGE 42

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MINE DEVELOPMENT cess,” Moriarity said. “Together, industry and government must make it a priority in partnership with our people and communities.” enefits for local ndigeno s gro ps Since the discovery of the Voisey’s Bay deposit in 1993, development of the project has depended on co-operation with the local Indigenous population, including benefits agreements that ensured employment for Labrador’s Inuit and Innu communities. The original Impact and Benefits Agreement (IBA) reached with both groups will roll over and continued with the new underground phase of Voisey’s Bay. The Labrador Aboriginal Training Partnership (LATP), an agreement between Vale and the Labrador Inuit and Innu of Nunatsiavut, Nunatukavut and Innu Nation has been instrumental for recruiting and training Aboriginal workers from the region. Employment numbers from these Aboriginal groups at

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Since the discovery of the Voisey’s Bay deposit in 1993, development of the project has depended on co-operation with the local Indigenous population.

Voisey’s Bay is touted as being 50% of the overall workforce. “Vale’s partnership with the Labrador Aboriginal Training Partnership has been a great resource,” says Kristie Cochrane, manager of corporate affairs for Vale’s Newfoundland and Labrador Operations and Projects. “LATP provides skills development and training-to-employment opportunities that will assist many Indigenous participants in Labrador to have the

opportunity to work at the Vale mine site. Participants will gain skills and on-thejob training in various occupations including underground miner, apprentice trades, and mine site support and services,” Cochrane adds. “Our goal is to implement strategies aimed at preparing Indigenous people for work in the future underground mine and to ensure that we maintain and grow our aboriginal workforce well into the future.” Custom data management solution A key partner for Vale in developing this next phase of Voisey’s Bay has been the engineering and project implementation firm Hatch. A fit-for-purpose digital operations management solution has been a cornerstone of the Hatch strategy for Voisey’s underground phase. This new system allows for efficiencies in data management for both real-time communications and operational decision-making. “The project is now moving into an exciting stage where underground production has started on Reid Brook,” Cochrane says. “We now have Vale workers developing the mine and they continue to use on their smartphones our DevOMS system (Development Operational Management System) to provide real-time control of the activities underground.” Part of the original agreement with the Province of Newfoundland and Labrador for the development of Voisey’s Bay was the processing of ore within the province. Aligned with that, Vale’s facility in Long Harbour, Newfoundland is the destination for the Labrador ore. Hatch has also been a partner in creating efficiencies for Vale’s Long Harbour Processing Plant, the destination for Voisey’s Bay nickel. A 2020 technical paper presented at the Conference of Metallurgists by Hatch representatives highlighted digital transformation at the Long Harbour Plant, including model predictive control (MPC) that incorporates “process data and machine learning-based predictive analytics” to create efficiencies. “Over the years a solid Integrated Project Team has been created on this project with Vale and SEM-Hatch professionals that have supported the results Vale has CMJ achieved to date,” Cochrane says. www.canadianminingjournal.com

A PERMIT TO PRACTICE IS NOW REQUIRED FOR MINING FIRMS Under BC’s new Professional Governance Act, organizations that engage in the practice of professional engineering or professional geoscience in BC must register for a Permit to Practice by September 30, 2021. A Permit to Practice grants organizations the legal authority to practice in BC.

WHO’S INCLUDED? All organizations in the public and private sector that engage in engineering or geoscience as part of their operations, even if these services are only provided internally. This includes: • Consulting firms

• Local government

• Manufacturers

• Sole practitioners

Not sure if your firm qualifies? Find out at egbc.ca/assessment-tool.

HOW TO REGISTER 1. Provide business and contact information and pay fees to receive your Permit to Practice. 2. Complete training and documentation requirements within 12 months.

Visit egbc.ca/firms to register today.

NEW MINES

TOP TRENDS IN MINE DEVELOPMENT By Alisha Hiyate

Construction is under way at Argonaut Gold’s Magino project in Ontario. CREDIT: ARGONAUT GOLD

ith rising metals prices spurring an increase in mine development activity across Canada, CMJ spoke to two of the engineering and construction management company contractors that are in the middle of the action to find out what they’re seeing on the ground. Wood is building the Côté gold joint venture between Iamgold and Sumitomo Metal Mines, in Ontario, while Ausenco is responsible for building the processing plant at Argonaut Gold’s Magino gold project, also in northern Ontario (see page 47). Contracting for cost control Judging by the work that Ausenco has recently landed, EPC (engineering, procurement and construction) contracts are 44 | CANADIAN

MINING JOURNAL

on the rise in North America. In January, Argonaut Gold awarded a roughly $200-million fixed-bid EPC contract for its Magino gold project in Ontario to Ausenco. Ausenco also recently won a $76.5-million EPC contract for Silvercrest Metals’ Las Chispas silver-gold processing plant, in Mexico. And it’s in the midst of finalizing a $236-million fixed price EPC contract with Artemis Gold for a 5.5 million t/y processing plant and related infrastructure at the Blackwater gold project in B.C. In an EPC contract, the contractor guarantees the price at which the project will be delivered – providing cost certainty and transferring risk from the client to the contractor. In an EPCM contract (engineering, procurement and construc-

tion management) the client is at risk if costs escalate. EPC is especially attractive to companies that are not financing projects internally, and really need certainty around plant costs because of financing conditions – especially juniors and mid-tiers. Originally from Australia, Ausenco really started to get attention in North America after it completed a $90-million EPC contract to build a 2 million t/y CIL processing plant for Atlantic Gold’s Moose River gold mine in Nova Scotia in 2017. “I think that opened a lot of eyes for people,” says Garry Warren, Ausenco’s president, project delivery for North America. EPC had previously been “much more palatable” and popular in the Southwww.canadianminingjournal.com

ern Hemisphere than in North America, Warren says. “Whether because of of lower grades or higher costs, they’re always innovating to successfully execute projects,” he explains. In the case of EPC, this type of contract became popular there when “prices were running amok” years ago.

massive 30% plus increase in steel prices. “We had to endure that on a couple of projects. All I can say is that when people go EPC with us, that’s our risk to bear for the two years it usually takes to engineer and build a plant.” Contractors, because they order larger volumes of equipment and materials from suppliers, however, have more negotiating power than a mining company would. “We can bring a bit more pressure to bear on some of the suppliers for certain things because we do buy a lot as an organization,” Warren says. Michael Woloschuk, Wood’s VP of global business development and consult-

with schedules because of potential delivery delays and also post-Covid in terms of logistics.” Wood’s team also flags labour availability as something that will become an issue as mining construction activity picks up. As a result, the contractor says the mining industry should focus more on modularization and pre-fabrication/pre-assembly to reduce on site labour hours and improve safety.

Increasing activity... leading to cost in ation After a lengthy lull in which few new mines were built, rising metals prices have ESG with a capital ‘E’ awakened the market. ESG pressures are affecting the way new Ausenco’s Warren says there’s no projects get built. denying that the industry is at the start of “We are seeing right from the invesa new cycle. tor level, pressure for companies to “Gold bubbling along at have strong ESG programs – that US$1,800 an ounce and copimpacts the way projects are movper being north of US$4 a pound, ing forward,” says Woloschuk. you’re certainly seeing more activity At the same time, cost pressures in the marketplace and yes, eventusuch as rising fuel prices, and the ally you will see flow through (to tendency towards mining more costs),” he says. complex and deeper orebodies has The industry last had a major also pushed miners toward new problem with runaway capital costs technology. about a decade ago, during a period “The adoption of technology of high construction activity. achieves some of what the investors It is reasonable to speculate that are asking for, but it also produces the uptick in mine development projects that have better financial activity combined with supply metrics,” Woloschuk notes. chain issues that have arisen during The Odyssey mine development. CREDIT: CANADIAN MALARTIC PARTNERSHIP Specific technologies that are the pandemic could feed cost inflagaining traction in response to tion heading into the new building cycle. these pressures are dry-stack tailings, and Perhaps an early indicator of this trend, several technologies that reduce energy at presstime, Iamgold announced a sigconsumption: ore sorting, coarse ore flonificant increase in costs at its Côté joint tation and high-pressure grinding rolls Starting in 2023, venture, where construction began last (HPGR) for more efficient grinding. fall with EPCM contractor Wood. The Dry stacking can offer up to a 65% operators at the Odyssey company now estimates its 70% share of reduction in footprint vs. conventional mine will also be able to haul tailings, and increased water recovery – costs at the joint venture project will be ore by remotely controlling a significant factor where water is scarce, US$1.1-1.2 billion, up from US$875-925 million estimated last year. the equipment from surface Woloschuk says. It also eliminates the Iamgold pointed to higher costs in sevrisk of a tailings pond failure. Silverusing an LTE network. eral areas, including elements of the proCrest’s Las Chispas and Nouveau Monde cess facilities, increases in earthworks Graphite’s Matawinie project in Quebec materials and manpower costs, as well as are examples of new builds that will use inflation related to pandemic-caused sup- ing, says it’s hard to make a blanket state- dry stacking. ment about whether the industry will see ply chain issues. Energy savings feature in the design The Wood team confirmed separately a comeback of capital cost inflation. of the Côté plant. A high-tonnage, low “What happens in a mining boom is a grade project, Côté will incorporate what that at Côté, they have seen increases in pricing for almost all construction materi- lot of the technology providers experience will be the largest HPGR in Canada, als, as well as drastically reduced bid valid- higher volumes of orders, there’s a fixed using rolls measuring 2.4 by 2.4 metres amount of capacity in terms of manufac- from WEIR. ity periods. Ausenco has also seen upward pressure turing large mills, so you tend to see the Renewable energy and hydrogen techdelivery of items being pushed out, Wolo- nologies are also on the horizon as mines on inputs during the pandemic. “A big one that’s already bitten a lot schuk says. “You’re probably going to see look to reduce their carbon footprint. CONTINUED ON PAGE 46 of people is steel,” Warren says, noting a some impact on projects going forward AUGUST 2021

CANADIAN MINING JOURNAL | 45

NEW MINES

FOUR NEW MINES COMING TO CANADA Rising metals prices have kicked off exploration and mine development activity across Canada. Here’s a look at four new builds in Canada – all in Ontario or Quebec – that have gotten the go-ahead in the past year.

Ontario Premier Doug Ford and Prime Minister Justin Trudeau at the groundbreaking ceremony for the Côté mine. CREDIT: ADAM SCOTTI/PMO

Côté gold mine Ontario

In addition to using an array of available technologies (and developing new ones), there’s a simpler way to reduce the footprint of a project – either by reducing the size of the plant through a very compact design or right-sizing a project rather than going for maximum tonnage. For example, as the Côté project advanced through economic studies, Wood reduced the size of the processing plant from 60,000 t/d to 36,000 t/d. In the process, the project’s internal rate of return nearly doubled, says Woloschuk. “Bigger’s not always better.” Autonomy Underground mines in Canada are well advanced with teleremote options for equipment operation. The underground Odyssey development (see page 48), an extension to the Canadian Malartic mine in Quebec that was approved in February, will be outfitted with an LTE communications network that will facilitate the operation of equipment from surface. The Canadian Malartic Partnership for the Odyssey mine chose the technology because it is much more than an ultrafast wireless communication network that allows workers to communicate with each other via cellular. For example, it will allow them in future to geolocate workers and equipment underground, which is important in the event of an accident for an effective and accurate response. Starting 46 | CANADIAN

MINING JOURNAL

in 2023, operators will also be able to haul ore by remotely controlling the equipment from the surface using the LTE network. Fully autonomous haulage systems for open pit operations are only starting to be implemented in Canada, but globally, they are already becoming standard. “There are large mining companies that have said to us any mines that we build now will never have a driver in a truck – autonomous haulage fleets are going to be standard for us,” says Woloschuk. Iamgold’s Côté JV is slated to be the first open pit operation in Canada outside of the oilsands to employ autonomous haul trucks. Autonomous fleets increase productivity by eliminating production pauses due to lunch breaks, shift changes, and meetings. Woloschuk notes there’s also a 10% increase in tire life compared with conventional trucking, and damage to equipment – a cost that miners don’t typically budget for – is reduced. Lastly, automation results in a reduced head count and camp costs – and a shift in the types of skills needed in the mining workforce. “Where you have a permanent camp at a project like Côté, you’re reducing the numbers significantly by not having truck drivers,” Woloshuk says. “The remaining operators onsite will typically be more multiskilled and have lower exposure to repetitive stress injuries, so it is also a safety improvement.”

FIRST PRODUCTION: H2 2023

COST: Approx US$1.6 billion MINE LIFE: 18 years

MINE TYPE: Open pit

Iamgold and its 30% partner at the Côté gold project in northern Ontario, Sumitomo Metals and Mining, announced the approval of the open pit operation last July. Construction began in the fall. Located 20 km southwest of Gogama, in between Timmins and Sudbury, the project is slated to be Canada’s first open pit hard rock mine to employ autonomous trucks when it pours first gold in the second half of 2023. The mine will also employ fully autonomous drills. Iamgold is working with Caterpillar and Epiroc to supply the autonomous equipment. The operation will be big, mining 62 million t/y – or 36,000 t/d – with an average mill feed grade of 0.98 g/t gold. Annual production will average 367,000 oz. gold at all-in sustaining costs of US$771 per oz. over the 18-year mine life. While the mine’s initial capital cost was estimated at US$1.3 billion last year when construction was approved, in late July, Iamgold announced that construction costs had risen. The gold miner is now budgeting to spend US$1.11.2 billion for its share of costs – up from US$875-925 million estimated last year, an increase in the neighbourhood of roughly 27%. Iamgold said the increase was driven www.canadianminingjournal.com

Magino gold project Ontario

FIRST PRODUCTION:

H1 2023

COST: US$360-380 million MINE LIFE: 17 years

MINE TYPE: Open pit

The Côté gold site in northern Ontario last fall. CREDIT: IAMGOLD

by higher structural, mechanical, piping, electrical and concrete estimates for the process facility; higher mine facilities costs; increases in earthworks materials and manpower estimates; certain scope changes; and inflation – including pricing increases due to Covid-19 related supply chain challenges. Currency exchange rates and costs related to Covid-19 also played a part. The project, which was 27% complete at the end of June, remains on schedule. In addition to the initial capital investment, the JV will spend an estimated US$1.1 billion on sustaining capital over the life of mine. Proven and probable reserves at Côté total 233 million tonnes grading 0.97 g/t gold for 7.3 million oz. A 2018 feasibility that used a gold price of US$1,350 per oz. gold, put the project’s after-tax net present value (NPV) at

US$1.1 billion (at a 5% discount rate) and its internal rate of return (IRR) at 15.3%. The project is 92% owned and operated by the Iamgold-Sumitomo JV, with Iamgold holding a 70% interest. A third party owns a 7.5% stake.

Argonaut Gold announced the green light for its Magino gold project in Ontario in October. The open pit project with a price tag of US$360-380 million, is expected to produce first gold in the first half of 2023. Construction started at the 10,000 t/d project, 40 km northeast of Wawa, in January 2021. While Magino will be a conventional operation, the processing plant has a very compact design, intended to reduce both its cost and its environmental footprint. In order to control costs, Argonaut went with a fixed-bid EPC contract for the processing plant. The contract, which totals 40% of the total initial project capex, was signed with Ausenco in January, and provides CONTINUED ON PAGE 48

Drills onsite at Argonaut Gold’s Magino project. CREDIT: ARGONAUT GOLD

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NEW MINES | FOUR NEW MINES COMING TO CANADA Argonaut protection from any cost esclation that may occur during construction. Ausenco also completed a $10-million placement in Argonaut in March, acquiring 4.3 million of the gold miner’s shares. A 2017 feasibility study for Magino outlined a 10,000 t/d open pit operation with a 17-year mine life, producing an average of 150,000 oz. of gold in the first five years of operation at all-in sustaining costs of US$711 per oz. The project’s NPV, at a 5% discount rate, came in at US$288 million. While Magino will start at 10,000 t/d,

the project is permitted for 35,000 t/d. Aronaut believes there is potential to first expand to 20,000 t/d with an open pit and underground operation. Since making a construction decision for Magino, Argonaut has discovered several high-grade gold zones outside of the planned open pit. The project is located immediately west of Alamos Gold’s Island underground gold mine, in the Michipicoten greenstone belt. At a US$1,200 per oz. gold price, Magino hosts proven and probable reserves of 58.9 million tonnes (diluted) grading 1.13 g/t for 2.1 million oz.

Odyssey gold mine

will have a 17-year mine life, extending the current mine life from 2028 out to 2039. At full production for its last 10 years, Odyssey will average 545,400 oz. gold per year at total cash costs of US$630 per oz. As open-pit production from Canadian Malartic begins to decrease in 2023, first ore will start from the underground ramp at a rate of about 3,000 t/d. First production from the shaft is expected in 2027, with full production of 19,000 t/d following by 2031. As an underground development that will take advantage of an existing 55,000 t/d processing complex and other infrastructure, Odyssey will already have a relatively small environmental footprint. But it’s also planned to be a state-of-the-art electric mine, using

Quebec

FIRST PRODUCTION: COST: US$1.1 billion

Late 2023

MINE LIFE: 17 years

MINE TYPE: Underground – ramp and shaft access

The Odyssey project is a substantial underground extension of the Canadian Malartic mine, which produced more than 568,000 oz. gold in 2020. The Canadian Malartic Partnership, owned by 50/50 partners Agnico Eagle Mines and Yamana Gold, announced a positive construction decision in February. The US$1.1-billion development, which includes both ramp access and a 1,800metre, 20,000 t/d production shaft, will take about seven years to build, but it

At the Odyssey gold mine in Quebec. CREDIT: CANADIAN MALARTIC PARTNERSHIP

48 | CANADIAN

MINING JOURNAL

electric equipment and ventilation-ondemand to reduce its carbon emissions and energy use. In addition, it will operate more safely and efficiently by making use of remotely operated trucks and hammers on the two main levels of the mine with loading pockets. Automation will be faciliated by the use of LTE technology. The company has not yet selected a supplier for the equipment. Odyssey contains an inferred resource of 75.9 million tonnes grading 2.82 g/t gold for 6.9 million oz., with indicated resources totalling 6.2 million tonnes grading 2.07 g/t gold for 410,000 oz. An internal preliminary economic assessment has been completed by the partnership. Based on a gold price of US$1,250 per oz. and a discount rate of 5%, Odyssey carries an after-tax NPV of US$481 million and an IRR of 11%. At US$1,705 per oz. gold, those figures rise to US$1.5 billion and 20%. CMAC-Thyssen Mining Group is developing the ramp, and in engineering, the Canadian Malartic team is working primarily with WSP for the headframe and shaft, Golder for the paste backfill plant, and SNC-Lavalin for infrastructure such as the garage.

Matawinie graphite mine Quebec

FIRST PRODUCTION: COST: $276 million

Spring 2023

MINE LIFE: 25.5 years MINE TYPE: Open pit

After receiving a key provincial authorization in February, Nouveau Monde Graphite announced it would begin early construction works for North America’s first new graphite mine in 50 years – its Matawinie project in Quebec. Located 150 km north of Montreal, the Matawinie mine and concentrator will produce 100,000 t/y of high-purity graphite concentrate – with full-scale commercial production in 2023. The company also has a scaleable facility in Becancour, 150 km by road from Matawinie, that will produce 45,000 t/y of anode material and purified jumbo flake. www.canadianminingjournal.com

A 2018 feasibility study for Matawinie projected an initial capex of $276 million, with a post-tax net present value of $751 million (at an 8% discount rate) and an internal rate of return of 32.2%. The study used a life-of-mine average sales price for graphite concentrate of US$1,730 per tonne, with a concentrate purity of over 97% graphitic carbon.

The project, with a 25.5-year mine life, has probable reserves of 59.8 million tonnes grading 4.35% graphitic carbon for 2.5 million tonnes. Nouveau Monde and the Atikamekw First Nation signed a predevelopment agreement in 2019, but they do not yet have an Impact Benefits Agreement in place. CMJ

Nouveau Monde’s Matawinie graphite project in Quebec. CREDIT: NOUVEAU MONDE GRAPHITE

The mine’s product will not only support the green energy transition by supplying the battery electric vehicle and energy storage markets – but the way in which it is mined will also be notably low impact. While Nouveau Monde will start production with dieselpowered vehicles, it plans to switch to a fleet of all-electric vehicles supplied by Caterpillar in 2028, and become a carbon-neutral operation. Although adoption of battery electric vehicles is widespread in underground mines, this would be the first wide-scale application of electric vehicles in an open pit mine in Canada. It’s not certain yet if the zero-emissions equipment will be powered by hydrogen fuel cell or lithium-ion battery electric technology. The operation will also reduce its environmental footprint through the use of dry stack tailings to minimize water usage, codisposal of tailings and backfilling in the pit starting in year six. Mine construction still needs to be financed, and construction contracts awarded. In late July, the company brought on financial advisors to help with the structuring and arrangement of financing, focusing on export credit agencies for a secure, lower-cost from of long-term capital. AUGUST 2021

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Designing safer conveyors

Minimizing environmental impact

57-58

News from ABB and PROK

CONVEYORS

Photo: Doppelmayer

CONVEYORS

ENGINEERING

SAFER

CONVEYORS: ART MEETS SCIENCE

Additional attention to design early on can pay dividends in safety and life-cycle costs By Todd Swinderman

ll new conveyor systems will inevitably succumb to the punishing bulk handling environment and begin the slow process of degradation. The system will eventually require more time and labour for maintenance, experience shorter spans between outages and longer periods of downtime, and the cost of operation will escalate. This period is also accompanied by an increased chance of injury or fatality as workers are progressively exposed to the equipment to perform cleaning, maintenance and to fabricate short-term fixes to long-term problems. A total system replacement is cost prohibitive, but to remain compliant and/or meet ever-increasing production demands, upgrades and repairs are unavoidable. When examining the safety of a system, improving efficiency and reducing risk can be achieved by utilizing a hierarchy of control methods for alleviating hazards. The consensus among safety professionals is that the most effective way to mitigate risks is to design the hazard out of the component or system. This usually requires a greater initial capital investment than short-term fixes, but yields more cost-effective and long-lasting results.

standards and enhancing operators’ ability to incorporate future upgrades cost-effectively and easily by taking a modular approach. Designing hazards out of the system means alleviating causes with the intent to bolster safety on a conveyor system, but the methods of protecting workers can vary greatly. In many cases, it will be necessary to use more than one control method, by incorporating lower ranked controls. However, these lower-ranking approaches are best considered as support measures, rather than solutions in and of themselves.

The science: Hierarchy of control methods Examining the U.S. Occupational Safety and Health Administration (OSHA) accident database reveals the dangers of working around conveyors. Studies have revealed that the highest prevalence of accidents are near locations where cleaning and maintenance activities most frequently take place: take-up pulley, tail pulley and head pulley. Designs should be forward-thinking, exceeding compliance

Types of hazard control At the bottom of the hierarchy, PPE includes respirators, safety goggles, blast shields, hard hats, hearing protectors, gloves, face shields and footwear, providing a barrier between the wearer and the hazard. Downsides are that they can be worn improperly, may be uncomfortable to use through an entire shift, can be difficult to monitor and offer a false sense of security. But the bottom line is that they do not address the source of the problem.

52 | CANADIAN

MINING JOURNAL

HAZARD MITIGATION EFFECTIVENESS

Hierarchy of control methods ELIMINATE BY DESIGN SUBSTITUTE GUARDS/CONTROLS

Safety improves as the type of hazard control moves higher up the hierarchy of methods. CREDIT: MARTIN ENGINEERING

WARN/MARKING ADMINISTRATIVE PPE

www.canadianminingjournal.com

Moving up one level, administrative controls (changes to the way people work) create policy that articulates a commitment to safety, but written guidelines can be easily shelved and forgotten. These controls can be taken a step further by establishing “active” procedures to minimize the risks. For example, supervisors can schedule shifts that limit exposure and require more training for personnel. However, these positive steps still do not remove the exposure and causes of hazards. Warning signage is generally required by law, so this is less of a method than a compliance issue. It should be posted in plain sight, clearly understood and washed when dirty or replaced when faded. Like most lower-tier methods, signs do not remove the hazard and are easily ignored. About half-way up the hierarchy, installing systems such as engineering controls that allow remote monitoring and control of equipment – or guards such as gates and inspection doors that obstruct access – greatly reduce exposure. But again, they do not remove the hazard. One more level up, using the substitute method replaces something that produces a hazard with a piece of equipment or change in material that eliminates the hazard. For example, manual clearing of a clogged hopper could be replaced by installing remotely triggered air cannons. Finally, examples of ‘eliminate by design’ are longer, taller and tightly sealed loading chutes to control dust and spillage or heavy-duty primary and secondary cleaners to minimize carryback. By using hazard identification and risk-assessment methods early in the design process, engineers can create the safest, most efficient system for the space, budget and application.

Higher-level controls need to be incorporated early LOW

Ability to utilize higher level controls

OPERATION START UP

it’s best to implement safer designs in the planning and initial construction stages, rather than retrofitting the system later. The added engineering cost of PtD is often less than an additional 10% of engineering but has enormous benefits in improved safety and increased productivity. The cost of PtD initiatives after initial construction can be three to five times as much as when the improvement is incorporated in the design stage. The biggest cause of expensive retroactive improvements is cutting corners initially by seeking lowest-bid contracts. Low-bid process vs. life-cycle cost Although the policy is generally not explicitly stated by companies, the low-bid process is usually an implied rule that is baked into a company’s culture. It encourages bidders to follow a belt conveyor design methodology that is based on getting the maximum load on thconveyor belt and the minimum compliance with regulations using the lowest price materials, components and manufacturing processes available. But when companies buy on price, the benefits are often short-lived, and costs increase over time, eventually resulting in losses. In contrast, when purchases are made based on lowest long-term (life-cycle) cost, benefits usually continue to accrue and costs are lower, resulting in a net savings over time.* CONTINUED ON PAGE 54

Incorporating eﬀective hazard control techniques is easier and less costly in the early stages of a project. CREDIT: MARTIN ENGINEERING

CONSTRUCTION

ACCURATE REAL TIME MEASUREMENT OF PRODUCTION & INVENTORY

DESIGN SPECIFICATION

HIGH Time Line

Prevention through design Another way of saying ‘eliminate by design’ is PtD (Prevention through Design) – the term used by The National Institute of Occupational Safety and Health (NIOSH). As a department of the U.S. Centers for Disease Control (CDC), the organization spearheaded the PtD initiative. In its 2010 report, Prevention through Design: Plan for the National Initiative, the Institute points out that, while the underlying causes vary, studies of workplace accidents implicate “system design” in 37% of job-related fatalities. Cost is most often the main inhibitor to PtD, which is why AUGUST 2021

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CONVEYORS problem-solving components in the basic configuration of the conveyor provides improved safety and access, without increasing the structural steel requirements or significantly increasing the overall price. It also raises the possibility for easier system upgrades in the future.

Return on safety vs. purchase considerations +

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Safe

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Low Bid

Return on Safety

Costs over time

Savings

Losses

Life

Red, Amber, and Green List for Designing Better Belt Conveyors RED LIST

Procedures, techniques, products, and processes to be prohibited in the Specification and Design stages of a conveyor project. Prevent loading on the transition of the belt. Prevent transition of more than 1/3 trough. Prevent loading against the direction of the receiving belt. Prevent loading conveyor to 100% of CEMA standard cross section capacity.

Prevent control and sequencing that allows conveyor(s) to run empty longer than necessary.

The return on better design and quality is realized over the extended life and safety of the system. CREDIT: MARTIN ENGINEERING

Prevent belt identification stamps in top cover. Prevent installing equipment in elevated locations without provision of safe access or tie-offs. Prevent Component Selection Based on ‘Or Equal’ Specifications or ‘Price Only’ Bidding.

The art: Design hierarchy Rather than meeting minimum compliance standards, the conveyor system should exceed all code, safety and regulatory requirements using global best practices. By designing the system to minimize risk and the escape and accumulation of fugitive material, the workplace is made safer and the equipment is easier to maintain. Life cycle costing should play into all component decisions. Buying on life cycle cost and anticipating the future use of

AMBER LIST

Procedures, techniques, products, and processes to be eliminated or reduced as much as reasonably possible. Only allowed with a change in the specification and notice to project owner/manager explaining potential issues and ability to address them in the future. Avoid reversing conveyors. Avoid multiple load points on a single conveyor. Avoid designs created with the intention to increase capacity in the future by increasing conveyor speed; design the system to accommodate future needs. Avoid combined vehicle and personnel travelways or uncontrolled exits from buildings into traffic patterns. Avoid a site layout that does not allow for safe and efficient delivery, storage, lifting of major components such as pulleys, drives, and belting.

GREEN LIST

Procedures, techniques, products, and processes to be encouraged in specification and design stages of a conveyor product. Consider ergonomics in the design and access of frequently cleaned or maintained equipment. Consider use of pulleys with diameters larger than minimum required for the specified belting.

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Consider access and clearances according to CEMA recommendations. Consider the use of design to reduce exposure to hazards.

Rather than meeting minimum compliance standards, conveyor systems should exceed code, safety and regulatory requirements. CREDIT: MARTIN ENGINEERING

Best Practices: The Evolved Basic Conveyor Using the Hierarchy of Controls along with the Design Hierarchy, engineers will be able to construct an “Evolved Basic Conveyor” that meets the needs of modern production and safety demands. Built competitively with a few modifications in critical areas, an Evolved Basic Conveyor is a standard bulk material handling conveyor designed to allow easy retrofitting of new components that improve operation and safety, solving or preventing common maintenance problems. Installing or providing for maintenance-minded solutions in the loading zone can greatly improve safety and reduce manhours and downtime. These components include slide-in/ slide-out idlers, impact cradles and support cradles. On larger conveyors, maintenance aids such as overhead monorails or jib cranes assist in the movement and replacement of components. Also, designers should ensure adequate access to utilities – typically electricity and/or compressed air – to facilitate maintenance and performance. Next-generation conveyor designs may even feature a specially-engineered idler capped with an independent power generator that uses the conveyor’s movement to generate power for a wide array of autonomous equipment. Dust, spillage and belt tracking are top concerns for many safety professionals. Field tests have shown that enlarged skirtwww.canadianminingjournal.com

Components of an Evolved Basic Conveyor facilitate operations, maintenance and safety. CREDIT: MARTIN ENGINEERING

right conditions, be it ambient humidity, material wetness, volume or surface grade. Flow aids such as vibrators or air cannons on chutes can sustain material movement, improve equipment life and reduced the safety hazards associated with manually clearing clogs.

boards and engineered settling zones promote dust settling and reduce fugitive material. Curved loading and discharge chutes control the cargo transfer for centered placement and reduced turbulence. As the load is centred on the belt, guides ensure even travel through the takeup to promote consistent belt tracking. Any transfer point is prone to buildup and clogging under the

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Long-term strategy Engineering safer conveyors is a long-term strategy. Although design absorbs less than 10% of the total budget of a project, additional upfront engineering and applying a life cycle-cost methodology to the selection and purchase of conveyor components proves beneficial. By encouraging the use of the hierarchy of controls at the planning stage, along with the design hierarchy at the design stage, the system will likely meet the demands of modern production and safety regulations, with a longer operational life, fewer stopCMJ pages and a lower cost of operation. Todd Swinderman is CEO emeritus of Martin Engineering

* See “The Economics of Workplace Safety: Putting a price on material handling mishaps,” by Todd R. Swinderman in Coal Age, April, 2018.

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CANADIAN MINING JOURNAL | 55

SUPPLIED CONTENT

DOPPELMAYR’S MATERIAL TRANSPORT SYSTEMS ESTABLISH EFFICIENT LINKS ACROSS CHALLENGING TERRAIN M aterial transport systems by Doppelmayr span gorges, crossroads and rivers and transport the customer’s material safely from A to B, also in difficult terrain. They do so reliably, economically and without unnecessary detours. RopeCon® is a technology developed by the ropeway manufacturer Doppelmayr, which is especially well suited for challenging terrain. The system offers the advantages of a ropeway and combines them with the properties of a conventional belt conveyor. It essentially consists of a flat belt with corrugated side walls. Just as on conventional belt conveyors, the belt performs the haulage function. It is driven and deflected by a drum in the head or tail station and fixed to axles arranged at regular intervals to carry it. The axles are fitted with plastic running wheels which run on fixed anchored track ropes and guide the belt. The track ropes are elevated off the ground on tower structures. A RopeCon® application is in operation at the premises of the South African mining company Booysendal Platinum (Pty) Limited, a subsidiary of Northam Platinum Limited as part of the expansion at the Booysendal concession. This system transports 909 t/h of platinum ore from Booysendal South to the existing processing plant. The terrain between the new mining areas to the north of the Booysendal concession and the existing processing plant is challenging in terms of topography. In a straight line, a distance of approx. 4.8km and a difference in

TECHNICAL DETAILS: Length Difference in elevation Conveying capacity Speed Number of towers Motor rating cont.

4,767 m 530 m 909 t/h 4.2 m/s 12 2,400 kW

STOCKPILE FEEDER Length Difference in elevation Conveying capacity Speed Number of towers Motor rating cont.

185 m 25 m 909 t/h 3.0 m/s 1 100 kW

elevation of 530m must be covered. The material mined at Booysendal South is loaded onto the RopeCon® belt via a silo and two chutes. In the vicinity of the processing plant, the RopeCon® is linked to the existing conveying equipment. A switch chute allows for the material either to be transferred directly onto a feeder conveyor to take it to the processing plant, or to be discharged onto a stockpile via a second, smaller RopeCon® thus creating a temporary buffer. Booysendal was also particularly careful to choose a transport system that would minimise the environmental footprint of the mine. Because RopeCon® is guided over towers, the only space required on the ground is for these structures, which, in the case of Booysendal, amount to no more than 12. At the same time, the system does not represent an insurmountable obstacle for wildlife or humans. The track crosses a number of roads, and even wildlife can

roam freely underneath the RopeCon®. As part of an additional expansion programme, Booysendal awarded to Doppelmayr the contract for a second RopeCon®, which will connect with the first system and enable transport from another mining area north of the concession. The second system is designed to transport 400 tons per hour over 2.8km and a difference in elevation of -160m. n

CONTACT:

Doppelmayr Transport Technology GmbH Konrad-Doppelmayr-Straße 1 6922 Wolfurt / Austria T +43 5574 604 1800 dtt@doppelmayr.com | doppelmayr-mts.com Doppelmayr Canada Ltée / Ltd 800 rue St-Nicolas, Saint-Jérôme, Qc, J7Y 4C8, Canada Tel: +1 450 432 1128 Ext.281 Cell: +1 450 821 1743 silviu.varzescu@doppelmayr.ca

RopeCon® Efficient Solutions for Bulk Material Handling Wherever bulk material needs to go – across impassable terrain, rivers, highways and buildings – RopeCon® delivers without a hitch! Long distances, capacities of up to 25,000 tonnes/hour, minimal environmental footprint, quiet operation plus low operating and maintenance costs: These are the features that convinced leading mining businesses. Visit us at our booth at the MINExpo, September 13-15, 2021, in Las Vegas and discover the latest news about our systems. We look forward to welcome you there at booth #7891. doppelmayr-mts.com

Doppelmayr Transport Technology GmbH, Konrad-Doppelmayr-Strasse 1, 6922 Wolfurt / Austria, T +43 5574 604 1800, dtt@doppelmayr.com Doppelmayr Canada Ltd., 800 St. Nicolas Street, St. Jérome, QC J7Y 4C8 / Canada, T +1 450 821 1743, silviu.varzescu@doppelmayr.ca

CONVEYORS

Solving ‘green’ challenges in remote diamond mines

Adoption of DSI Sandwich belt high angle conveyors to minimize environmental impacts

wenty-five years ago, “going green” wasn’t quite the popular phrase that is it today. However, in the late 1990s, Dos Santos International was presented with a “green” challenge to use the least amount of space possible to process and separate one of the Earth’s greatest treasures – diamonds – at De Beers’ Snap Lake underground mine in the Northwest Territories. Because of Snap Lake’s remote location, construction and operations required careful planning. This led to the development of the space-saving DSI Sandwich Belt high angle conveyor technology – an invention of DSI president, Joe Dos Santos. Being located in a hostile, Arctic environment, the kimberlite processing facilities had to be enclosed and heated. A smaller footprint for the plant was determined to be the optimal way to minimize environmental impact and cost. In the process building, the kimberlite had to be elevated then discharged into the various crushing, screening and sorting functions. The original concept was to use a multitude of Sandwich conveyors to minimize the facilities. This was ultimately rationalized to require only two Sandwich conveyors, which defined the facility’s minimal footprint. The ability to convey at any high angle made the DSI Sandwich Belt high angle conveyors ideal. The Sandwich belt technology imparts a gentle, yet firm hugging pressure on the material in the belt sandwich. This allowed the precious gems within the kimberlite to be elevated at high angles without damage or spillage. The Snap Lake project incorporated two DSI Sandwich conveyors, each travelling to opposite ends of the building. The units were standardized at 36” belt width to simplify spare parts inventory. Design of the units included provision for future upgrade, from 275 t/h to 524 t/h, merely by increasing the belt speed. By operating at the lower speed until the upgrade was required by the Sandwich conveyors, optimal energy efficiency was preserved. In addition, for heated facilities in cold climates, Sandwich coneyors offer the least heat escape, and thus the lowest heating costs. Snap Lake operated to very high environmental standards and certified its environmental management systems to international standard ISO 14001. The success of Snap Lake led to the incorporation of three DSI Sandwich Belt conveyors into the Victor mine, the first diamond mine in Ontario. Inventory at Victor was simplified with all units at a 42” belt width. However, tonnage requirements for these units varied from a low of 185 t/h to a high of 422 t/h. For prolonged equipment life and energy conservation, one unit (11) ran at a slower speed. 58 | CANADIAN

MINING JOURNAL

The DSI Sandwich Belt conveyors at the Victor mine had variable speed drives to conserve energy. CREDIT: DOS SANTOS INTERNATIONAL

Other industries have also used Sandwich Belt conveyors. Because their profiles can conform to irregular (steep) paths, they are able to blend in with the surrounding environment. This feature also precludes the need for many transfer points, a common source of spillage and fugitive dust. By virtue of their high capacity, high angle and adaptable profile features, Sandwich conveyors facilitate the most compact arrangement of any materials handling system. This of course minimizes disturbances of the environment, and results in a most economical system when all aspects (including the value of real estate, cost of site preparation and excavation) are considered. CMJ This article was provided by Dos Santos International (www.dossantosintl.com). www.canadianminingjournal.com

CONVEYORS

ABB launches condition monitoring digital service

BB has launched ABB Ability Condition Monitoring for belts, an advanced digital service to enable mine operators to track speed, misalignment, damage, thickness and wear, slippage and temperature of conveyor belts in real time. The solution aims to anticipate maintenance, avoid unplanned downtime and improve belt reliability and lifetime. Belt damage can cause significant production time loss in mines and processing plants with in-person inspections typically carried out to determine the condition of conveyor belts. The new ABB Ability Condition Monitoring for belts offers a complete overview of the assets’ condition through continuous monitoring of belt health, generating alarms and warnings in the event of deterioration. By moving from preventative to predictive maintenance, it enables operators to avoid the costly failures that can occur between physical inspections and personnel can be removed from dangerous areas. The technology is based on sensors installed in strategic points of the conveyor belt equipment and is specifically designed to withstand harsh environments while monitoring asset health and condition. ABB Ability Condition Monitoring for belts provides easy access to informative dashboards. Fault trend analysis, event alarms, data logs and reports can be monitored for single or multiple convey-

AUGUST 2021

ors and by remote connection, SMS text message and email. “Real time monitoring of the actual belt performance prompts the necessary corrective actions ahead of failure or further and more costly damage,” said Eduardo Botelho, global material handling service product manager for ABB. “With equipment condition continuously assessed, operators can plan necessary maintenance only when certain indicators give the signal that the equipment is deteriorating, and the probability of failure is increasing. It will consistently catch misalign-

ABB has launched a digital condition monitoring service for belts. CREDIT: ABB

ment or speed issues online, long before failure, and pre-empt issues such as falling material, energy waste, excessive belt wear, rupture or fire.” The solution can work as a stand-alone option or can be integrated into any control system, being interoperable with existing maintenance tools and infrastructure. KPIs can be customized, based on customer’s needs or pain points. CMJ

MARTIN®

CLEAN BELT

SYSTEMS & SERVICES Martin clean belt systems and services ensure your conveyor belts are cleaner, safer, and more productive by providing unsurpassed cleaning performance and remote monitoring with industry-leading technology, experience, and knowledge. Learn more at

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CANADIAN MINING JOURNAL | 59

CONVEYORS

PROK’s new HDPE roller designed for high speed, large tonnages

lobal conveyor component manufacturer PROK has just released a new high-density polyethylene (HDPE) roller which is lighter, more durable, and avoids secondary conveyor damage in the event of a failure, reducing the unscheduled downtime that costs mining companies millions of dollars in lost productivity annually. PROK global product and engineering manager Ray Anderson said the new roller was specifically designed for high-speed and large-tonnage applications where reliability is crucial. “Conveyor rollers are a big cost and can cause huge risk to an operation’s output,” he said. “A mine or port facility with a large conveyor system will often need to replace several rollers in a day, and that requires a lot of maintenance manpower.” If a traditional steel roller breaks, it can damage the conveyor belt and the whole conveyor system can go offline, he added, noting that for that reason, the mining industry has been steadily moving towards lighter, more durable rollers made of advanced

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MINING JOURNAL

PROK’s new highdensity polyethylene (HDPE) roller. CREDIT: PROK

composite materials. “Reliable rollers are crucial to maintaining production levels. If a conveyor stops due to roller failure, you start losing money.” PROK pioneered the use of lightweight HDPE material in conveyor rollers over 10 years ago searching for a solution that would not damage the conveyor belt in the event of failure and would reduce the risk of manual handling injuries when rollers were being installed or changed out. Built on more than 18 months of research and development, the company’s latest solution is state of the art, taking low maintenance rollers to a whole new level. Using a specially formulated reinforced polymer matrix, the lightweight, belt-friendly, wear-resistant roller has been created for heavy duty applications. Incorporating features to lower maintenance costs and a high-performance bearing housing to ensure there is no risk of end-cap walk over time, PROK HDPE delivers the reliability that can help mining companies increase production and improve safety. Made from a specifically engineered high-density polyethylene, the HDPE rollers are suitable for corrosive environments and premium seal arrangement (with low friction properties to ensure low break away mass and run resistance during operation). The rollers come in a range of sizes to suit a variety of mining operations and applications. In a world first, the new HDPE roller also includes visual wear indicator technology which assists mining companies to improve their maintenance planning. The original PROK yellow tube combines with a green inner layer to act as a visual wear indicator for maintenance teams so they can better plan their roller changeouts. This innovative feature will help customers to simplify idler maintenance and reduce costs. CMJ www.canadianminingjournal.com

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Kaltiremining.com

Harnessing hydrogen to cut emissions

Choosing the right tire management partner

Filling the expertise gap

TRUCKS & VEHICLES

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www.canadianminingjournal.com

TRUCKS AND VEHICLES

Harnessing hydrogen Miners explore use of hydrogen-powered haul trucks By Diane L.M. Cook

ith pressure on the global mining industry to decarbonize, and Canada’s mining industry consuming 2 billion litres of diesel annually, mining companies are looking at reducing their carbon emissions and their energy costs through the use of green hydrogen. Large haul trucks can represent more than 50% of the greenhouse gas emissions of an operation’s total surface mobile fleet. According to a May 2021 report by Hatch, On the Path to Zero Emissions, reducing those emissions is a big reason why miners are considering the use of green hydrogen in mining. Green hydrogen is made from renewable energy, typically wind or solar, and produces zero carbon emissions. However, industry faces many barriers before it can fully implement this new technology into their operations. The benefits of hydrogen Although hydrogen fuel cell technology is still considered in its infancy, global and Canadian mining companies are currently investigating the potential of using hydrogen-powered haulers in their mining operations. “Given the current outlook on decarbonization pathways to achieve zeroemission large haulers for mining operations, the clearest technology option in replacing diesel-powered, ultra-class haul trucks is the use of hydrogen fuel cell technology,” says Michael Bobotis, engineering coordinator, Open Pit Mining North America, at Hatch. Decarbonizing large mining trucks is a key focus for the industry. CREDIT: ANGLO AMERICAN

AUGUST 2021

A passenger vehicle only needs a 5-kilowatt power system and a passenger train only needs about a 500-kilowatt system, whereas a mining hauler truck needs about 2 megawatts. The challenge for technology providers is to ensure that these fuel cell systems can be packaged properly to reach such scale while maintaining the required system efficiency and operational requirements. – CONSUELO GLARIA LOPEZ, HYDROGEN SOLUTIONS DEVELOPER, BU HYDROGEN AT ENGIE

“As renewable power in the form of green hydrogen continues to become more available and decreases in cost, the benefits of green hydrogen-powered fuel cell trucks will eventually be two-fold: providing a truly zero-emission vehicle similar in performance and range to current ultra-class trucks, and facilitating a similar operating paradigm to current large-scale operations. Productivity at any mining operation is key, and introducing equipment that causes minimal disruption to future mining operations is vital to the industry as a whole,” says Bobotis.

Anglo-ENGIE partnership Large multi-national mining companies and suppliers are working on hydrogen solutions. The most public effort in this space is Anglo American’s partnership with ENGIE SA, established in October 2019. Together, the world’s largest producer of platinum and the multi-national energy services company are working to develop and fuel the world’s largest hydrogen-powered mine haul truck. This project is part of Anglo American’s approach to sustainable mining, FutureSmart Mining, which will help the company meet its carbon and energy targets for 2030 and its vision of operating carbon-neutral mines. Anglo American will develop the truck and ENGIE will provide the hydrogen generation solutions. This project marks the first time a truck of this size and load capacity has been converted to run on hydrogen. In an October 2019 release, Anglo said that “first motion” of the hydrogen powered truck – meaning the first time the truck will be able to move self-propelled by its new power plant system – was expected in 2020. After that, the plan is to conduct a validation program at the company’s Mogalakwena platinum group metals mine in South Africa, followed by depoloyment of the trucks at other Anglo American operations. “Operational performance of the converted trucks is expected to be the same or better than the original diesel trucks, with the additional benefits of cleaner air, less noise and lower maintenance costs,” the company said. As of mid-2021, the truck is not yet CONTINUED ON PAGE 64

CANADIAN MINING JOURNAL | 63

TRUCKS AND VEHICLES in operation. However, its power plant module is in the final testing stages in the United States where it was engineered, developed and built. After that’s completed, it will be shipped to South Africa for integration into the truck later this year. The construction work for the demonstration facility at the Mogalakwena mine includes a 3.5-MW (700 NM/h) electrolyzer to produce hydrogen on site. Construction is in the final stages with first production of hydrogen expected before the end of 2021. The proof of concept of the entire system – hydrogen production, refuelling, operation of the truck – is expected to run for six months. After that time, first results will be reviewed. ENGIE is working toward becoming a world leader in the development of an industrial-scale hydrogen economy to help its customers transition to zero-carbon emissions. “Our aim is to support the industrial and heavy-duty mobility players worldwide to reach their carbon-neutrality objectives,” says Consuelo Glaria Lopez, Hydrogen Solutions Developer, BU Hydrogen at ENGIE. “Our target for green hydrogen production is 4 GW by 2030. This is concrete now as we already have a portfolio of 70 projects; 20 of those projects have an installed capacity of electrolysis equal to or greater than 50 MW.” Two years ago, ENGIE launched a program to co-create hydrogen-based solutions to help mining companies achieve their decarbonization targets. The potential usages of green hydrogen within the mining ecosystem are very broad and can displace a significant amount of fossil fuels, in addition to those that are currently already

being displaced on the electrical side, with renewable energy plants. Hydra Project ENGIE is also working with research organization Mining3 to convert mining vehicles in Chile’s mining sector to hydrogen power through the Hydra Project. Last August, ENGIE announced that it received funding from Chile’s Economic Development Agency for the Project to help design and supply a new powertrain for mining vehicles to run on renewable hydrogen instead of diesel. The project aims to scale up the solution to convert mining vehicles at several mining sites in Chile. The Hydra Project is currently in Phase 2, which includes the design and validation of the performance of a 100- to 200-kilowatt hydrogen fuel cell battery powertrain. The powertrain will be subject to endurance tests using an industrial bench testing facility where power loads and mining conditions can be simulated. This stage also includes evaluating the feasibility (business case, value proposition and risk), impact and opportunities of the new technology in a modelled mine site; conducting a supply chain study and integrating the findings into modelling and simulation; and canvassing existing global regulatory work related to hydrogen in mining. ENGIE will also perform a gap analysis and work to develop a series of informed recommendations that further the advancement of an international standard for the use of hydrogen in mining operations. “We are exploring the participation

CANADIAN APPLICATIONS The federal government has taken steps to outline what is needed to develop a hydrogen industry, implement hydrogen vehicles in mining and build a regulatory framework. In 2019, Natural Resources Canada released its framework titled, Towards Deployment of Vehicle Hydrogen Power by the Canadian Mining Industry. The framework acknowledges the drivers toward cleaner energy applications (rising oil prices, the need to reduce GHGs, workplace health); as well as the need to address factors such as hydrogen supply, technological readiness, operations guidelines, and adoption and vehicle safety and performance considerations. There have been some limited applications of hydrogen power in Canada, including in the mining industry. In 2015, Natural Resources Canada supported a project at Glencore’s Raglan nickel mine in northern Quebec. The mining complex uses a closed loop, microgrid system that converts excess wind power to hydrogen. Two wind turbines save more than 4.4 million litres of diesel fuel and 12,000 tonnes of GHGs per year.

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of several entities, such as Sernageomin in Chile and CanmetMINING in Canada, that will support us on the hydrogen standards and regulations workstream,” Lopez says. Despite these initiatives, there still exist many barriers facing the mining industry which could preclude some mining companies from fully adopting green hydrogen technology in their mining operations. Barriers to hydrogen While hydrogen technology is being adapted for passenger and other vehicles, hydrogen-powered mine haulers have a long way to go before they will be commercially available. “Currently, we can buy fuel cell-powered personal vehicles, buses, road trucks and even passenger trains,” says Lopez. “A passenger vehicle only needs a 5-kilowatt power system and a passenger train only needs about a 500-kilowatt system, whereas a mining hauler truck needs about 2 megawatts. So, the challenge for technology providers is to ensure that these fuel cell systems can be packaged properly to reach such scale while maintaining the required system efficiency and operational requirements.” Another challenge is integrating such a fuel cell system within the mining vehicle, which operates in heavy-duty conditions. “It can definitely be done but if we want to reach the net-zero targets of the mining companies – some as soon as 2030 – we would need to accelerate and require even stronger cross-sector collaboration,” Lopez says. Other barriers to adoption include the capital expenditure required to transition from diesel-fuelled haulers to hydrogen; the logistics of using green hydrogen; the logistics and expense of using fuel cells versus diesel-powered haulers; lower powertrain and energy efficiency as compared to battery electric vehicles (BEVs); safety concerns surrounding hydrogen refuelling stations; and properly skilled onsite labour for the production and storage of hydrogen and the operation, maintenance and fuelling of equipment. The use of hydrogen-powered haulers in mining is promising but implementation could be as far away as 2030, as global and Canadian mining companies continue to investigate its feasibility. CMJ www.canadianminingjournal.com

TRUCKS AND VEHICLES

s mining tires often account for one of the top expenditures for surface mines, and a significant expense for underground mines, they can feel like an extraneous line on the budget – and yet they’re imperative to the successful operation of a mine. With the right OTR tires and a strong management program that focuses on preventative maintenance and uptime, mines can significantly improve productivity and total operating cost of tires. As market changes bring the acute need for productivity, sustainability and, of course, operating safely, how can mines ensure they choose a tire

The benefits of having a partner at the

wheel

management partner that will help them succeed and is aligned with their goals? Kal Tire’s Mining Tire Group is a leader in mining tire management and supply in Canada and across five continents. Here are a few considerations based on our nearly 50 years of experience. SAFETY In the last year, mines needed to rely on their partners’ response to Covid-19 to safely continue operations. The best suppliers continued the same level of service while also ensuring Covid-19 policies and procedures aligned. This ensured there were always enough technicians to keep mines running. With the day-to-day inherent risks of tire management, it’s imperative that teams on-site bring an uncompromising commitment to safety. Ask the following to find out if your safety values align: What’s on their ‘won’t do’ list? If a tire management partner is prioritizing safety, they’ll likely have guiding principles – ‘golden rules’ that, in the name of safety, they simply won’t violate. An example might be: We will only follow the safe work procedure for dismounting earthmover tires, an everyday process that – in its final moments, as technicians loosen the last two lug nuts – brings incredible inherent risk.

CREDIT: KAL TIRE

Choosing the right tire management partner can make for a smoother ride By Dave Allan

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www.canadianminingjournal.com

How are tire technicians trained? Asking about training and standards details gives you a concrete sense of how technicians can perform tasks safely 100% of the time. Make sure you fully understand technician training delivery. For example, at Kal Tire, technicians undergo 27 months of training as they work toward certification, learning through 300 online safety and technical training modules. Along the way, accredited mentors and assessors provide hands-on instruction and conduct in-field competency evaluations. The demonstrated competency piece is critical to ensuring that teams on-site are following all necessary safety protocols. What tooling is used to promote safe tire work all around the wheel? How are they investing in access to tooling that protects technicians from both common and serious risks? At Kal Tire’s Innovation Centre in B.C., we have designed many tools that increase safety and efficiency and deployed them to teams around the world. For example, the Gravity Assist System, which is a 100% mechanical arm that supports the weight of heavy tools such as a 36-kg torque gun, reducing risks such as pinched fingers, muscle strain and fatigue, and creating a more efficient process. SUPPLY Even in ‘normal’ operating conditions, reaching productivity targets calls for tire availability and performance, but this last year called for unique considerations. Kal Tire helped customers with their inventory needs by slowing the pace of tires needed on site as operators parked trucks or reduced production because of the

pandemic. More inventory was held for customers while their demand decreased, and we continued to work with tire manufacturers to make this as easy as possible for customers. How will they ensure your trucks are outfitted with the best tire for your needs? Having the best rubber compound and tread for the application is paramount. If you have an independent supplier that sources from multiple brands and tiers – and you have a partner with the expertise to make the right recommendation – you’re apt to improve tire life, performance and value, depending on your goals. How can they help ensure access in the event of a shortage? Tire shortages come in waves, often unexpectedly. Ask a potential partner how they’ll leverage networks and relationships to help ensure you’ll be able to carry on without disruption during a shortage. SUSTAINABILITY Achieving sustainability targets has become a must rather than a nice-tohave for many miners. Ask your partner about their sustainability approach and offerings. Do they offer retreading as well as repairs? Retreading extends tire life, lowers total cost of ownership and can also create significant carbon and fuel emissions savings compared to buying a new tire. Ultra Repair, Kal Tire’s process for repairing large injuries to a tire that would otherwise be scrapped, offers similar benefits. Both sustainability solutions also keep casings out of scrap piles.

Do they offer environmental reporting tools? For many mines, the ability to report on environmental efforts is essential. Kal Tire recently launched its Maple Program, which uses an accredited carbon calculator to track and report on the fuel and carbon emissions that mines have saved by opting to retread or use Ultra Repair, and it will be available in the fall in Canada. EXPERTISE, STRATEGY & FLEXIBILITY Mines are becoming much more data driven, and rightly so. Expertise, strategy and flexibility are also critical deliverables, so it helps to understand how they’ll show up everyday at your site. How far-reaching is their experience? Understanding the depth of knowledge they’ll be able to draw on at every stage of the tire life cycle will help you evaluate whether they can help you meet your evolving goals. What tools or processes support a strategy and data-driven approach? If your partner is using an advanced tire management system, such as TOMS, Kal Tire’s proprietary Tire Operations Management System, you’ll have a team focused on executing your strategy. TOMS automates tire work scheduling and reporting to reduce downtime and inform decisions. It aims to improve planned tire management throughout the life of a tire, from changeouts and rotations to repairs and retreads to inventory, all while connecting to customers’ systems. In the end, you’ll benefit most from a partner that’s invested in what’s important to your mine operation – and can provide measured results to show how they’ll CMJ deliver that to you. Dave Allan is VP Canada, Kal Tire’s Mining Tire Group.

AUGUST 2021

CANADIAN MINING JOURNAL | 67

TRUCKS AND VEHICLES

How the right PARTNERS can help fill the EXPERTISE GAP for miners

The right supplier can help companies build a holistic maintenance program.

CREDIT: SHELL INTERNATIONAL LTD.

Shell outlines how suppliers can offer value beyond products By Scott Kwas and Alan Harris

pervasive trait for companies across every industry is the challenge of gaining a competitive advantage. This is especially true in the mining sector, where companies are challenged to maintain high productivity while operating in extremely harsh conditions, sometimes more than 20 hours per day, against increasingly tight project timelines and budgets. When productivity is a priority, the mining industry needs to ensure staffing is optimized and that critical machin68 | CANADIAN

MINING JOURNAL

ery has maximum utilization. These goals can be supported by world-class suppliers who bring a suite of lubrication solutions to the industry relationship. Holistic maintenance program Studies* have shown that 96% of mining maintenance staff have experienced an equipment breakdown in the last three years and 56% believe this is directly related to poor lubrication application or management. The challenge for companies is a shift in mindset - companies must think beyond lubricants as another product to be purchased within an increasingly

tightening budget. Instead, lubricants should be just one element of a holistic maintenance program designed with an innovative supply partner that will provide quality products along with a suite of tailored services. It can be considered a best practice to find a lubricant supplier that provides solutions to prevent maintenance issues as an effective method to help increase business profitability and sustainability. Your relationship with your lubricant supplier should provide more than product dropped at your shop. It should form the foundation of a progressive maintewww.canadianminingjournal.com

and enabling your staff to focus on the jobs they were hired to do.

Lubricants comprise 3-5% of a typical maintenance budget. CREDIT: SUNSHINE SEEDS/ISTOCK

nance program that yields results through a solutions-focused approach from highly trained, field-based engineers with deep industry expertise. At a minimum, your supplier should provide a complimentary site visit and maintenance practice assessment. Areas of focus for the assessment should include a standard review of lubricant storage and handling, contamination control, lubricant application practices, oil condition monitoring analysis and maintenance frequency. A world class supplier should also identify knowledge gaps for employees and offer a structured coaching plan to upskill or reskill as needed. A partner supplier will also analyze maintenance data, beyond the product supplied, to devise actionable recommendations, standard procedures and establish KPIs (key performance indicators) to help optimize equipment usage. Following the completion of the on-site assessment, improvement strategies should be identified by field-based experts with an expected value delivery, in cost savings or productivity increases, along with the projected completion date for improvement projects. Follow up assessments should be completed on AUGUST 2021

a set interval to ensure continuous monitoring and improvement. In response to customer needs, harnessing technology to deliver value through continuously evolving solutions, such as on-vehicle oil analysis sensors, web-based applications and long-life products is critical and should be leveraged and explored with your supplier and solutions provider. Consistent collaboration with your supplier prioritizes a proactive maintenance regimen versus a reactive, transactional, product-focused approach. A supplier’s crucial role is to assist in understanding why the equipment failure occurred and what solution can be implemented to prevent it from happening again. Most importantly, the supplier should leverage their technical services and expertise to find ways to deliver business value beyond the product they supply. As technology and industry trends are constantly changing, mining companies can lessen the burden of staying up to date by seeking external counsel from trusted, trained, and passionate engineers who provide industry-leading solutions that are not available in-house. By working with a supplier who provides this knowledge, you are adding to your team

Filling the expertise gap In a recent example, a large multinational company based in Canada was experiencing a decrease in their MTBF (mean time between failures) in their operational critical rotating equipment, along with an increase in wear metal flaggings during routine oil analysis. This resulted in increased maintenance cost and NPT (non-productive time). The company’s maintenance and reliability staff lacked the time and expertise to complete a full investigation or design a solution to the problem. Instead, they retained a leading lubricant supplier to deliver expertise and technical services and perform a complete investigation with root cause analysis. The analysis resulted in an understanding of why the failures were occurring, and eventual identification of a solution that saved the company an estimated $2.5 million annually. Lubricants comprise only 3-5% of a typical maintenance budget and are often treated like a consumable such as a bolt or a tube of sealant. As a result, relationships with lubricant suppliers are often treated as transactional. However, leveraging the right lubricant supplier to design a solutions-based maintenance program can unlock exponential benefits for an organization. These benefits spread beyond reduced maintenance costs and increased equipment reliability, allowing companies to leverage expertise that facilitates upskilling and reskilling of current staff, potentially increasing talent retention rates and desirability for inbound recruits. Considering the broad benefits for mining companies of ranging sizes, a lubrication program and supplier partnership should prioritize solutions-based services over mere product application to fill key industry gaps concerning worker knowledge, equipment breakdown prevention and maximized efficiency. CMJ *Statistics based on a survey, commissioned by Shell Lubricants and conducted by research firm Edelman Intelligence, of 181 international mining sector staff who purchase, influence the purchase of, or use lubricants as part of their job from November to December 2015.

Scott Kwas is Shell Canada Technical Team Lead and Alan Harris is Shell Business Development Manager for Services in North America. CANADIAN MINING JOURNAL | 69

JU LY 20 21 | VOLUME 2 | ISSUE 7

ON THE MOVE

Canadian Mining Journal August 2021

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