Canadian Mining Journal February/March 2019 by The Northern Miner Group

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CANADIANMINING

FEBRUARY/MARCH 2019 VOL. 140, NO. 2

JOURNAL

FEATURES

53 Could small modular nuclear reactors find a future in mining?

56 As 600,000 visitors descend on Munich in April for the world’s largest construction and mining equipment trade fair, Canada will be in the spotlight.

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ONTARIO 18 Chris Hodgson, president of the Ontario Mining Association on the impact of mining education programs for teachers.

20 Part 3 of our Electric Mine series looks at the collaborative efforts between C A N AGoldcorp DIAN M I Nits I Nsuppliers G J O U RtoNbuild A L the Borden gold mine. and 28 A look at the progress that’s being made to build road infrastructure in Ontario’s Ring of Fire region. 34 CMJ highlights several advanced Ontario development projects.

SUDBURY INNOVATION CLUSTER 40 Inside the push to make Sudbury the ‘Silicon Valley’ of mining technology. 46 Glencore updates CMJ on its Onaping Depth project. 51 Norcat CEO Don Duval explains his organization’s role in addressing the mining sector’s “technology adoption” problem.

REPORT ON DRILLING 58 Caterpillar details the case for blasthole drill automation.

DEPARTMENTS 4 EDITORIAL |

Sudbury innovation puts Canada centre stage.

6 CMJ’S NEW ADVISORY BOARD

8 CSR & MINING | Jane Church and Carolyn Burns of NetPositive outline how miners can craft a new approach to business that meets society’s expectations. 10 FIRST NATIONS | Stephanie LaBelle, mineral development advisor for

Wabun Tribal Council, discusses the Ontario government’s first resource revenue sharing agreements with First Nations.

ABOUT THE COVER

This month’s cover supplied by Hard-Line Solutions.

12 UNEARTHING TRENDS | EY Canada’s John Penner details how smart

contracts could reduce costs and unexpected delays for large construction projects like mines. 14 LAW | Sander Grieve and colleagues at Bennett Jones break down changes to proxy voting guidelines from Glass Lewis and ISS. 15 FAST NEWS | Updates from across the mining ecosystem.

www.canadianminingjournal.com FEBRUARY/MARCH 2019

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Coming in April Canadian Mining Journal looks at water management. Plus a special report on pumps.

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 |

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FROM THE EDITOR FEBRUARY/MARCH 2018 Vol. 140 – No. 2

CANADIANMINING Sudbury innovation puts Canada centre stage Alisha Hiyate

JOURNAL

CMJ

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

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CANADIAN MINING JOURNAL

thought I would avoid the worst of northern Ontario weather by planning my first trip to Sudbury in the late fall, but in a visit in late November, the city rolled out the white carpet for me anyway. Aside from the weather, my impressions of the Greater Sudbury area were positive. That’s impressive considering the descriptions of a blighted landscape that I had heard Sudbury used to be, the legacy of pollution from the historic nickel smelters there. Last year, CMJ reported on how Sudbury has transformed itself into a hub of mining innovation. This year, the story is on the region’s even grander plans for the future (see Page 40). Many of the people I met on my visit were either transplants or people who had spent time away from the north only to return. It’s not hard to see why. From mining supply companies to miners, academia and non-profits in the region, it seems that everyone with ties to the mining sector aspires to be the best in the world at what they do. That includes Vic Pakalnis, CEO of Mirarco, and one of the advocates for the use of small modular nuclear reactors (SMRs) at remote mine sites (see Page 53). It takes a lot of optimism to put two industries with social licence issues together and expect a positive outcome. But that is exactly what Vic envisions. Vic believes the mining sector is the perfect client for SMRs – miners need cheaper energy but they also want to minimize their environmental impact. But both the mining and nuclear industries have to rehabilitate their images. “We have to work on our reputation, our social acceptability and the nuclear industry has to do the same,” Vic told me. “They need better spokespeople that aren’t afraid to be in the media. They’re starting to develop that.” Also in this issue, it seems Ontario is at the centre of battery electric vehicles for mining. We’ve got coverage of both the Borden gold mine owned by Goldcorp (soon to be Newmont Goldcorp when a merger of the two companies is completed in the second quarter) and the Onaping Depth nickel-copper project, owned by Glencore (see Pages 20 and 46, respectively). And quiet progress is being made in the Ring of Fire. To date, there haven’t been any grand announcements on road infrastructure from Premier Doug Ford’s new government, but environmental assessments for community roads in the region are under way, with First Nations communities leading the process (see Page 28). Lastly, to help us better serve the mining industry, CMJ has established an Advisory Board. Going forward, these five professionals (see Page 6), who all have deep industry experience and technical knowledge in their fields, will help us raise the bar on our coverage. We’re excited to have them on board! CMJ 4 | CANADIAN

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News Editor Marilyn Scales mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Manager of Product Distribution Jackie Dupuis 403-209-3507 jdupuis@jwnenergy.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.: 1-800-387-2446 ext 3505 Group Publisher Anthony Vaccaro Established 1882

Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative

and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining. BIG 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: 1-800-387-2446 ext 3505; Fax: 403-245-8666 ; E-mail: jdupuis@jwnenergy.com Mail to: Jackie Dupuis, 2nd Flr. 816–55th Ave. N.E. Calgary, Alberta T2E 6Y4. We acknowledge the ﬁnancial support of the Government of Canada.

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CMJ LAUNCHES AN ADVISORY BOARD

CMJ

is proud to announce the establishment of our new Advisory Board, which will help guide our coverage of the mining industry and serve as advisors on technical matters. The initial board will be made up of the following: Environmental Specialist

David Brown, Golder Associates David has 25+ years of experience in environmental management for the mining industry. As a principal with Golder, David leads multi-disciplinary teams developing environmental design criteria and management strategies and preparing environmental assessments, environmental permits, and closure plans for proposed, existing and closed mines. He has been active in engagement with Indigenous communities and regulatory agencies. David is a registered professional geoscientist in Ontario and Newfoundland and Labrador

First Nations Specialist

Michael Fox, Fox Consulting Michael is the President of Indigenous Community Engagement (ICE) – a national firm dedicated to building relationships, capacity, and projects by providing strategic services and practical solutions that help Indigenous clients succeed. He brings a wealth of experience in structuring projects, partnership, and financing for both industry proponents and Indigenous communities. In his earlier career, he assisted northern Ontario First Nations with economic and enterprise development while working for an Aboriginal financial institution. He earned an honours degree in Political Science with a focus on Aboriginal Law & Resource Development from Lakehead University and has an MBA from the University of Fredericton, specializing in Social Enterprise. He’s originally from Weenusk First Nation.

Mine Contracting Specialist

Scott Hayne, Redpath Canada Scott began his career in the mining industry as a mechanical design engineer and after 18 years in various roles, is now Vice-President, Americas with Redpath Canada. Scott’s most notable project is the Oyu Tolgoi underground development project. This project began with the initial sinking of Shaft 1 in 2005 and has since become a multi-billion dollar, multinational project well known for its widely successful training and development program. Scott worked closely with the owner’s team to

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support the project’s strategic and operational planning. He sits on the board of directors of Dayan Contract Mining LLC, a joint venture between Redpath and Hasu Megawatt. Under Scott’s guidance, Redpath has implemented a number of leading shaft innovations adopted by the industry at large.

Digital Technology Specialist

Anthony Moreau, Iamgold Tony currently leads Innovation at Iamgold. In this role, he provides full support in forecasting, ﬁnancial planning and assessment of future projects while leading innovation strategy and execution. Over his career, Tony has spearheaded a number of signiﬁcant industry initiatives, including the YMP Scholarship Fund, Iamgold’s partnership with Right to Play and the company’s entry into the blockchain space. He also manages an innovative international co-op benchmarking program owned and operated by a network of mining companies. Tony continues to evaluate opportunities in innovation and business that will help move Iamgold forward and best enable miners to meet the demands of the future. A Chartered Financial Analyst and graduate of the Queen’s School of Business, Tony currently serves on the Board at PowerOre.

Mine Engineering Specialist

Gary Poxleitner, SRK Gary is a professional engineer, PMP, Principal Consultant and Practice Leader at SRK, based in Sudbury. He has over 27 years of operational, engineering, management, and consulting experience in the mining industry with a personal focus on underground hard-rock mine design, innovation and mine cost, due diligence, COG analysis and operational improvement. Following graduation from Laurentian University, Gary worked at the Giant gold mine; Westleton diamond mine in South Africa; various Vale mines in Sudbury, and on the underground project management team at Voisey’s Bay, in Labrador. Since joining SRK in 2011, Gary has worked on over 100 projects in Canada and internationally. He currently serves as the Underground Mining Society Chair, National CIM Council, Past Vice-President Camiro, past CIM Membership Chair at the CIM Sudbury Branch, and sits on several mining organizing committees. CMJ

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CSR & MINING

To meet society’s expectations, we need a new approach to mining By Carolyn Burns & Jane Church

ining activities can bring both negative and positive change to local communities. We, as a society, generally expect that the negative impacts will be managed, and the benefits distributed fairly. Local communities and society at large are more supportive of mining activities when they see sustained positive outcomes – when positive change outweighs the negative impacts. Over the past several decades we have worked hard to find a positive balance between the benefits and negative impacts associated with mining. People and organizations around the world are involved in improving government and company performance, setting new regulations and standards, providing guidance and training to communities and companies, and developing new legal frameworks. These efforts have led to significant milestones such as the Voluntary Principles on Business and Human Rights, regulations around extractive revenue transparency, and an increased commitment to free, prior, and informed consent (FPIC) by industry groups. Proven approaches to share benefits and to mitigate negative impacts have been developed, such as skills development, local employment, participatory water monitoring, and community health and safety programs. We have also developed better mechanisms for community participation and forums for dialogue. And more and more regularly there is increased collaboration between industry, civil society and governments at the national and local levels. While these improvements are significant, mining activities are not meeting society’s expectations. This is highlighted by the International Council on Mining and Metals (ICMM) 2018 global survey (www.icmm.com/en-gb/publications/performance-expectations/pes) on their new performance expectations for company members. Survey participants that identified themselves as non-profits or NGOs on average ranked the performance expectations as “falling below my expectation of what a responsible mining company should be doing.” The gap between our expectations and performance is also illustrated in the 2018 index completed by the Responsible Mining Foundation (https://responsibleminingindex.org). The index results “indicate that it is still hard to find evidence of systematic, effective action at any one company on the range of topics that society can reasonably expect companies to address.” These reports reflect the high bar that society has set, which has real implications for the mining industry. Achieving a 8 | CANADIAN

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Achieving a ‘licence to operate’ continues to be a top ten risk facing mining companies around the world.

‘licence to operate’ continues to be a top ten risk facing mining companies across the world. In recent years, community members from several countries have launched lawsuits in Canadian courts regarding alleged human rights abuses by Canadian mining companies. There is increased pressure for national governments to ‘even the playing ﬁeld’ and funnel more tax revenues from mining activities to local communities. In some jurisdictions this has contributed to drastic changes in tax regimes, a change which has completely altered the economics of many mining operations. Fundamentally, our approach to mining development does not meet social expectations. In order to meet those expectations, we need to collectively support a new approach to mining development, one that leads to sustained positive outcomes for local communities. For that to happen, we need all stakeholder groups to: 1. Treat communities as legitimate, equal partners in extractive development. Communities are now being recognized as legitimate stakeholders in extractive development. Yet treating communities as legitimate, equal partners is a different story. That requires involving and enabling communities to be partners in decision-making from the beginning and taking the time to build strong, non-transactional relationships between communities, companies, and governments. 2. Build strong partnerships between communities, companies, and governments. Communities, companies, and governments are the three legs of the extractive development tripod. Achieving sustained positive outcomes for local communities requires the partnership of all three stakeholders. Partnership means being honest, working together to make decisions, addressing power imbalances, and holding each other accountable. Industry must follow www.canadianminingjournal.com

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through with action and not simply use words like partnership as a virtue signalling. 3. Come together to create a clear vision and define outcomes. A vision for extractive development creates a road map for stakeholders to work together in partnership. It starts the conversation about how extractive development can leave communities better off and identifies how extractive development can fit into broader economic priorities and development plans. A vision enables stakeholders to guide the changes that extractive development will inevitably bring in a way that meets their objectives. 4. Make decisions in a systematic and transparent manner. Extractive development systems that affect social outcomes, such as permitting processes, project design, consultation, and decision-making, are usually complex and are often unclear or not transparent. Stakeholders, especially industry, need to communicate how their systems work and they need to find creative ways to connect. 5. Manage tensions between worldviews. Extractive development is a catalyst that brings individuals and groups with divergent worldviews together – which can

create points of tension. Managing those points of tension requires stakeholders to recognize where they might have a different worldview from that of others and to ﬁnd ways to meet in the middle and achieve common goals in creative ways. Typically, this means industry needs to recognize where its way of doing things or seeing the world may dominate the process and hijack the potential for true partnership. A new approach to mining development requires a systemic step change and can only be achieved if communities, extractive companies, governments, civil society groups, and investors are involved. Mining professionals may not think that they play a role – that this work belongs to the Community Relations or Social Performance team. But a new approach requires a paradigm shift, one that geologists, supply chain professionals, evaluations experts, mining engineers, etc. need to be a part of. Adapting the approach to extractive development is undoubtedly an enormous task. Incremental change by individuals and organizations must be the ﬁrst step. Small changes in practice, mindset, or approach can have a very meaningful impact. How do your daily activities relate to the new approach outlined above? How can you think differently about the approach you take? CMJ

CAROLYN BURNS is director of operations at NetPositive, a non-profit that works with diverse stakeholders to help local communities see sustained positive outcomes from mining. JANE CHURCH is a co-founder and director of collaboration with NetPositive.

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FIRST NATIONS

Wabun community youth at the Wabun-Mattagami First Nation Mining Expo in 2017. CREDIT: WABUN TRIBAL COUNCIL

Wabun chiefs at the forefront of resource revenue sharing in Ontario By Stephanie LaBelle

n April 2018, the Ontario government signed resource revenue sharing (RRS) agreements with three First Nation organizations, Grand Council Treaty #3, Mushkegowuk Council and the Wabun Tribal Council, representing 32 First Nations across Northern Ontario. Starting in the fall of 2019, partner First Nations will receive 45% of government revenue from forestry stumpage, 40% of the annual mining tax and royalties from active mines at the time the agreements were signed, and 45% from future mines in the areas covered by the agreements. RRS agreements will provide a source of funding for First Nations to allocate towards key priorities, such as economic development, education, health, infrastructure, community and cultural initiatives. Throughout areas with high mineral and forestry activities, developing a framework for RRS has been a priority for First Nation leadership for decades. The traditional and treaty territory of Wabun’s member First Nations (Brunswick House Frist Nation, Chapleau Ojibwe First Nation, Flying Post First Nation, Matachewan First Nation, Mattagami First Nation), which includes the Timmins and Kirkland Lake areas, is deemed to be one of the most proliﬁc and longstanding mining jurisdictions in Canada. Over the years, many models of resource revenue sharing have been discussed among First Nation leadership and the provincial government, among them, Ontario-wide and treaty-based arrangements. First Nations were left to resolve difﬁcult internal conversations around distribution formulas such as approaches based on population, equal distribution, remoteness quotients, as well as proximity to resource 10 | CANADIAN

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Resource revenue sharing is an important step towards reconciliation. It is a demonstration of Nation-toNation relationships between the Crown and Indigenous Peoples, and an acknowledgement of the treaty relationship. extraction activities. Coming to the compromise necessary to advance those discussions proved difficult. It was always the firm position of Wabun’s chiefs that RRS should benefit the First Nations impacted by specific projects. First Nations have different opportunities based on their location. For example, some have negotiated lucrative agreements with hydro-electric producers, while others are in areas where land value and leasing opportunities are more prominent. Wabun’s First Nations carry the advantage of being located on mineral-rich land, therefore they should benefit from those opportunities directly. Wabun suggested in high-level discussions that a more local approach was preferable, and that we were a willing partner to negotiate a regional agreement with the province. The debate over which distribution model suited the Wabun communities was kept internal (without government), and our chiefs settled quickly and amicably on a combination of equal distribution www.canadianminingjournal.com

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(for forestry) and proximity (for mining). Wabun’s First Nations endorsed this sharing model as one that respects those communities whose territorial interests are impacted. In short, communities participate at levels that directly correspond to the revenues achieved from their respective traditional lands. Wabun’s First Nations have lived at the fringes of resource development for the last 100 years with little or no say in how or when mines were developed. Today, however, our First Nations participate in all stages of the mining lifecycle from early exploration, to mine development and operations and finally, closure and rehabilitation. So long as mining is done in a way that respects the traditional values and input of the local First Nations communities, implement the best environmental standards, creates employment and training opportunities for members, provides opportunities for economic development, and commits meaningful financial benefits, Wabun’s First Nations can and will support resource extraction activities to the mutual benefit of the broader Ontario economy and mining industry. It wasn’t until the late 2000s when Impact Benefit Agreements (IBAs) became prevalent, that our First Nations were provided the opportunity to benefit from mining. IBAs are built on the principle that mining causes impact to the land and in return those impacts must create benefits. Notably, Wabun’s First Nations have successfully negotiated and signed IBAs with Imerys Talc, Goldcorp, Kirkland Lake Gold, Tahoe Resources and a few others. As a result, many of the TrampMetalAd.qxp_Layout 1 2/15/19 2:21 PM Page 1

Wabun First Nation communities have transitioned from poverty to relative prosperity. For those members seeking work, there are meaningful employment opportunities. Postsecondary education rates have increased significantly as communities invest in university and college tuitions for their youth. On the entrepreneurial side, sustainable communityowned businesses have been created, providing further employment opportunity and own-source revenues that reduce the dependency on government funding. Resource revenue sharing should not impact our ability to negotiate IBAs with corporations wishing to develop projects within the territory of our First Nations. IBAs and RRS have a different a purpose. While IBAs are intended to create benefits to compensate for impact, RRS is an important step towards reconciliation. It is a demonstration of Nation-to-Nation relationships between the Crown and Indigenous Peoples, and an acknowledgement of the treaty relationship. Nonetheless, it is built on the sharing of a profit-based tax, which should incentivize First Nations to work meaningfully with mining companies with the success and development of existing and prospective projects. At present time, Ontario’s RRS agreements are among the most progressive in Canada, and their completion should be celebrated as a long overdue and important milestone for the government and First Nations. It has not, I believe, been given the platform and spotlight it deserves. CMJ STEPHANIE LABELLE is mineral development advisor for Wabun Tribal Council.

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CANADIAN MINING JOURNAL |

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UNEARTHING TRENDS

Smart contracts are the next frontier for construction projects By John Penner

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A “smart” contract is a blockchain-enabled program that holds key terms of the project, and terms between its owner and vendors, in a computer code. digitally stored in the database and the review process would be automated. Second, post-work certification and transactions between the construction company and the contractors would be executed in real time. This would eliminate the role of the bank, thereby reducing transaction and working capital costs. Arbitration costs would also decrease, since all transactions are secured in a private ledger. Additionally, there’s significantly less risk of fraud and related losses with the use of smart contracts, since the identities of all key players – from the construction company to each contractor – are verified in the database. The integration of smart contracts using blockchain can help steer the mining and metals industry towards more efficient, economic and transparent business. With many benefits to the bottom line, more mining companies need to consider investing in smart contracts now. By waiting, they risk losing more revenue due to vague contract terms, slow work certification and missed deadlines. CMJ JOHN PENNER is a partner in EY Canada’s Advisory Services practice. He is based in Calgary. For more information, visit ey.com/ca/digital.

Image Natali Mis; iStockimages.com

ining companies face many roadblocks before they can officially break ground on a large-scale project – from long and detailed application processes, to studies on profitability and reducing expenses. However, those challenges can sometimes pale in comparison to the obstacles posed by complex contracts that underpin any project. When contract terms are vague and left open to interpretation, conflicts can arise between all parties involved resulting in project delays, added costs and other negative knock-on effects – none of which are good for the bottom line. The situation only gets more complicated when you consider how often earthworks are subcontracted to various project companies for execution. Without a clear and explicit contract, the potential for misalignment and delayed timelines is high. One way to overcome these challenges lies in a “smart” contract: a blockchain-enabled program that holds key terms of the project, and the terms between its owner and its vendors in a computer code. It’s a high-tech alternative to more traditional mining contracts, and with a huge upside: it’s highly secure and transparent, and can self-execute various transactions based on the “if/then” principle. To say this technology could be transformative for mining projects would be an understatement. Take a steel producing company, for instance. Let’s say the company developed a 3 million-ton greenfield facility, containing various units: a coke oven plant, sinter plant, blast furnace, iron plant and a steel workshop. Imagine that each of these units was subcontracted to a project company to execute. And on top of that, the project owner also decides to hire a project management consultant to certify work being carried out on a weekly basis. Now for the first order of business: complete a large quantity of earthworks before the next phases of the project – structural, mechanical, electrical work, etc. – can begin. However, the work certification process often turns out to be long and slow, resulting in significant project delays. In fact, subcontractors have recorded an average delay of ten days per month (and certified by the project management consultant). These delays cause a snowball effect, pushing greater setbacks with the invoice verification process. The use of smart contracts in this scenario would provide a multitude of benefits. First, it would help to drastically reduce delays in the invoice verification process, as all invoices are

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LAW

What’s new for 2019 proxy season: ISS and Glass Lewis updates By Sander Grieve, Jon Truswell, John Piasta and Hind Masri

ecent battles between investors and boards have seen dramatic results and changes of corporate direction. Mining has come in particular focus with contested meetings at Canadian companies. Recommendations from proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis continue to impact the outcome of shareholder meetings and the firms’ updated proxy voting guidelines for 2019 are now in effect. Here are some key aspects of the updated guidelines Canadian mining companies should know. Gender diversity ISS’ gender diversity policy has been expanded to apply to all “widely held” companies. This is defined as S&P/TSX Composite Index companies and other TSX-listed companies designated by ISS, based on the number of their clients holding securities in the company. ISS will generally recommend a withhold vote if a formal gender diversity policy has not been adopted and if no female directors serve on its board. Glass Lewis will generally recommend a withhold vote for the chair of the nominating committee if a company does not have at least one woman on the board. It may also recommend voting against the chair of the nominating committee if the board has not adopted a formal written diversity policy. Environmental and social risk oversight ISS will continue making voting recommendations on a caseby-case basis on environmental and social (E&S) shareholder proposals. In addition to considering whether there are significant controversies, fines, penalties or litigation associated with the company’s existing E&S practices, it will also assess the following factors when evaluating the likelihood that a proposal will protect or enhance shareholder value: w whether the issue(s) presented are more appropriately dealt with through legislation or government regulation; w whether a company has already responded appropriately to the issue(s); and w whether a proposal is unduly burdensome or inordinately inflexible on the company. Glass Lewis has formalized its approach to reviewing how boards oversee E&S issues. Its new policy requires that largecap companies make annual, fulsome disclosure of relevant E&S risks and to clearly identify directors or board-level committees charged with oversight. If Glass Lewis determines that the mismanagement of E&S issues has resulted in a detriment to shareholder value, it will recommend that shareholders vote 14 | CANADIAN

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against directors responsible for overseeing the identified issue. Director overboarding ISS increased the number of permissible directorships that a director may hold without being “overboarded.” An individual director nominee is considered to be overboarded if: w in the case of a CEO, they sit on the board of more than two public companies (including the one they lead as CEO); or w in the case of directors other than the CEO, they sit on more than five public company boards. While ISS previously issued a withhold recommendation for an “overboarded” director if they attended less than 75% of board and committee meetings in the past year without a valid reason, it no longer considers attendance a relevant factor. Executive compensation Glass Lewis expanded its discussion of several executive compensation topics and how these factor into its voting recommendations, including: w contractual payments and arrangements; w grants of front-loaded awards; and w “claw-back” provisions. It says a single factor is unlikely to result in a negative recommendation on a company’s say-on-pay proposal. Virtual shareholder meeting Glass Lewis will not make voting recommendations solely on the basis that a company holds virtual-only meetings. It has, however, expanded on its policy by specifying that the following factors will be reviewed when determining whether effective disclosure has been provided for in a company’s circular: w addressing the ability of shareholders to ask questions during the meeting; w procedures for posting appropriate questions received during the meeting, and the company’s answers, on the investor page of its website as soon as is practical after the meeting; w addressing technical and logistical issues related to accessing the virtual meeting platform. Glass Lewis also provided updates to their 2019 Canadian proxy voting guidelines in the areas of board skills, director and CMJ officer indemnification and auditor ratification. SANDER A.J.R. GRIEVE is a Toronto-based partner and co-head of mining at Bennett Jones LLP. Based in the Calgary office, Jon C. Truswell is a partner, John E. Piasta is a partner, and co-leader of corporate finance and M&A, and Hind L. Masri is an associate.

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FAST NEWS • ENVIRONMENT |

Updates from across the mining ecosytem

Sandvik acquires supplier of battery electric vehicle solutions

andvik has acquired privately owned Artisan Vehicle Systems, manufacturer of battery powered underground mining equipment, based in Camarillo, Calif. The core technology is battery packs, electric motors, power electronics, software and control systems. Artisan’s underground mining loaders and trucks are designed with these high powered, highly reliable and field proven battery electric powertrains. Artisan is the market leader with most battery electric vehicles currently operating in underground mining. “I am pleased to see the strategic acquisition of Artisan so soon after the opening of Sandvik’s state-of-the-art Battery Electrification Innovation and Development Center in Turku, Finland, in 2018. It is in line with our ambition to be leading in the market for battery electric vehicle solutions,” says Lars Engstrom, president, Sandvik Mining and Rock Technology. Artisan will be a business unit in the Load and Haul Division within Sandvik Mining and Rock Technology. “The area in which Artisan is located is a frontrunner in electric vehicle development. Our new R&D foothold there will complement the skillset we have in Finland. The combination of know-how and skills creates a very strong platform,”

• BACKFILL |

Artisan Vehicle Systems’ batterypowered equipment includes a 10-tonne LHD (right) and 40-tonne haul truck (below). CREDIT:SANDVIK/ARTISAN VEHICLE SYSTEMS

says Mats Eriksson, president Load and Haul Division, Sandvik Mining and Rock Technology. Artisan is a start-up company which in 2017 had revenues of US$2.3 million

and approximately 60 employees. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the first quarter 2019. CMJ

Outotec to deliver paste fill system to Canadian mine

utotec has been awarded a contract to design and

accuracy for binder addition, will reduce operating costs of the

deliver a mine paste backfill system to a nickel mine in

mine and allow the operators to fully exploit the underground

Canada. The contract price is not disclosed, but similar

deposits. The new facility is expected to be commissioned

deliveries are typically valued at C$30 million to $45 million.

towards the end of 2020 with a capacity of 300 dry t/h.

The order has been booked into Outotec’s 2019 first quarter order intake. Outotec’s supply includes the design and delivery of a

“We are pleased to support our customer to improve their tailings management in a sustainable way. Outotec has vast expertise in mine backfill design and experience delivering

complete paste backfill system to service two underground

paste plants. This project further solidifies our position in this

orebodies.

market,” says Kimmo Kontola, head of Outotec minerals

The new paste backfill system, with higher degree of

processing business.

CMJ FAST NEWS CONTINUED ON PAGE 16

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FAST NEWS • SECURITY |

Updates from across the mining ecosytem

Siemens Canada joins Canadian Institute for Cybersecurity

iemens Canada has announced its corporate membership with the Canadian Institute for Cybersecurity (CIC) housed at the University of New Brunswick (UNB). In May 2018, Siemens announced the creation of a Cybersecurity Centre in Fredericton with support from OpportunitiesNB (ONB). The centre is now operational, focusing on research and development, consulting and managed services, and creating potential for global exports of locally developed cybersecurity solutions. Up to 30 highly skilled jobs in engineering, cyber analysis and consulting will be created in Phase 1 by 2020, with another 30 jobs expected in Phase 2. As an important part of these activities, Siemens Canada is joining CIC as a corporate member to partner on research

projects and the training of cybersecurity talent. In the era of hyper-connectivity, cybersecurity labour shortage is a mounting concern. The Global Information Security Workforce Study reports we are on pace to reach a cybersecurity workforce gap of 1.8 million by 2022. This gap is concerning as cybercrime damages are forecasted to cost close to US$600 billion, nearly 1% of global GDP, each year. Cybersecurity innovation relies on strategic industry partners like Siemens and CIC working together to vigilantly protect critical infrastructures and defend the ever-changing cybersecurity landscape. Siemens will provide valuable resources for CIC to recruit and train highly qualified cybersecurity experts who will lead discoveries and build cybersecurity solu-

tions that protect our society and economy against costly cyberattacks. Recognizing the evolution of the fast-changing cybersecurity discipline, CIC and the faculty of computer science at UNB will offer a career focused master’s program in cybersecurity. The Canadian Institute for Cybersecurity at the UNB is a comprehensive multidisciplinary training, research and development, and entrepreneurial unit. It operates in close collaboration with researchers in the social sciences, business, computer science, engineering, law, and science, and other national and international centres of excellence such as the Siemens Cybersecurity Centre. CMJ

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www.canadianminingjournal.com

2019-02-14 4:38 PM

• IOT |

Maestro launches new digital solution

aestro Digital Mine has launched its latest digital solution, EthernetI/O. The Lively, Ont.-based company manufacturers Internet of Things (IoT) measurement and control instrumentation for the optimization of underground mine ventilation and underground digital networks for last mile of communication. Maestro’s EthernetI/O provides both remote I/O functions as well as two full PID control loops over standard industrial ethernet communication protocols. EthernetI/O helps to reduce or eliminate the use of complex and expensive PLCs in the underground mine environment. Instead of purchasing an expensive programable logical controller (PLC), a rack and installing in a robust enclosure, adding power supplies, loop isolation and wiring, the EthernetI/O is a solution that can be rolled out and configured using simple web pages. No additional power supply, enclosure or wiring. No more programming. No more expensive and complicated solutions. No more software licensing models and renewals. EthernetI/O is mine hardened out of the box. EthernetI/O is currently available in two versions. One for analog and discrete devices (AD4) and a second (RTD12) with RTD inputs. Applications for the EthernetI/O range from level entry monitoring of utilities such as water, compressed air, diesel fuel and paste/back fill; level entry control of compressed air shutoff valves for energy programs; level entry control of water pressure regulation; monitoring of fan/motor bearings and motor stator temperatures; and monitoring of ore pass and bin levels. Other applications include monitoring and control of automated doors, level air regulators and dewatering pumps; gate control and monitoring; remote fuel station level monitoring; and monitoring of shaft bottom level. EthernetI/O can communicate over Modbus TCP/IP or EtherNetIP industrial protocols, making integration into both current and legacy systems simple. Maestro has successfully deployed this solution in some of the world’s largest mining operations, including those owned by Rio Tinto, BHP Billiton and Vale Canada, as well as several small to medium sized operations. Its products are made FEBRUARY/MARCH 2019

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exclusively for the underground mine automation, IT and ventilation sectors, delivering energy savings and productivity improvements while meeting the highest health and safety standards. CMJ Maestro Digital Mine’s new EthernetI/O digital solution. CREDIT: MAESTRO DIGITAL MINE

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2019-02-14 4:38 PM

Ontario

INSPIRING TEACHERS TO INSPIRE STUDENTS

Mining education tours shine light on modern industry by Chris Hodgson

stablished in 1920 to represent the province’s mining sector, the Ontario Mining Association (OMA) is on the cusp of our centennial. As we prepare for this momentous milestone, we are taking stock of opportunities and advancements in mining to inspire another 100 years. The anniversary celebration in 2020 will be an exciting chance to broadly share our members’ stories to illustrate the rich history of mining in the province and highlight its current role in making modern life and innovation possible. However, there is a group of individuals with whom we have been sharing these stories for years, and who have helped pass them along to the young people whose informed decisions will shape the future of the province and our industry. I am referring to teachers. Since 2010, the OMA has partnered with the Canadian Ecology Centre (CEC) and Mining Matters to develop and deliver a professional learning program for teachers, themed around the mining sector. Originally named the Teachers’ Mining Tours, the ﬁve-day, fully-sponsored program owes much to the leadership and advocacy of then CEC Executive Director

Since 2010, the OMA has partnered with the Canadian Ecology Centre and Mining Matters to develop and deliver a professional learning program for teachers on mining.

and renowned educator, Bill Steer, as well as George Flumerfelt, president and CEO of Redpath Mining, who chaired the OMA when the program was ﬁrst proposed. Over the years, both have remained steadfastly committed and personally involved in the program, attracting many other passionate supporters. Along with continuous ﬁnancial backing by OMA members, and the participation of numerous individuals representing companies such as ALS Environmental, Atlas Copco, Boart Longyear, Caterpillar, Cementation, Glencore, Goldcorp, Knight Piesold, North American Palladium, and Vale, the tours garnered valuable contributions from partners at the Canadian Institute of Mining, the Canadian Federation

A 2018 visit to Goldcorp’s Hoyle Pond Mine in Timmins. CREDIT: ONTARIO MINING ASSOCIATION

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www.canadianminingjournal.com

2019-02-14 4:34 PM

of Earth Sciences, the Thunder Bay Community Economic Development Commission, Science North and Dynamic Earth’s Science Education Centre, Ontario’s Ministry of Northern Development Mines, and others. Hosted at the CEC, an environmental science education and research facility located in Samuel De Champlain Provincial Park, near Mattawa, Ont., the Teachers’ Mining Tours were designed to let teachers know what modern mining is all about, emphasizing occupational health and safety, environmental stewardship and sustainability, and exciting career opportunities in the sector. In addition, they help teachers connect their newly acquired knowledge to the curriculum, and expose them to educational resources that support their efforts back in their own classrooms. For the most part, these resources are developed by the talented team at Mining Matters, a charitable organization with which OMA has partnered for the past 25 years on a variety of initiatives. It is dedicated to bringing knowledge and awareness about Canada’s geology and mineral resources to students, educators and the public. With the generous support of OMA member companies, participating educators are given the unique opportunity to tour an underground mine, learn about environmental management and reclamation, visit mine service suppliers, and engage with industry professionals eager to share their career experiences. The inaugural Teachers’ Mining Tour was delivered in the summer of 2010, serving the first cohort of Ontario teachers and focusing on the Sudbury camp. As part of this initial offering, participants also had the opportunity to earn part of their Environmental Science Additional Qualification through Nipissing University and the Ontario College of Teachers. Since then, the program has engaged hundreds of teachers, and benefited from their valuable feedback. Indeed, one of the most rewarding aspects of delivering this program is hearing back from the participants and being inspired by their insights and enthusiasm. Examples of comments include: “On my first tour, I was amazed by how much the mining industry had changed from what I was taught in school. I quickly realized that although the mining industry had definitely changed, I had also been taught long obsolete ideas and information about the industry. The misconceptions I had were quickly and efficiently dispelled as I listened and talked to presenters and guides, and through my own observations.” “Ever since that first tour I sought out ways to better incorporate modern mining into my classes. Every time I did, the students ate it up. I developed lessons, activities, props and models to help teach modern mining. My students became more aware of where their stuff comes from, more supportive of the sector and some even started to consider careers in the mining sector.” “Since participating in the mining tour I have realized that my original misconceptions about mining are very common. Proper education and exposure to the realities of modern mining are key to appreciate our stuff and increased support for the industry. Our educators are perfectly placed to fulfill that need once they have accurate and up-to-date information.” FEBRUARY/MARCH 2019

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“Last spring, I had an opportunity to visit Lac Des Îles Mine in North Bay. It was my first time being in a mine… As the Ontario Youth Apprenticeship Facilitator, this tour really opened my eyes to the variety of skilled trades, and technology careers that the mining industry can offer these young individuals.” “The teacher mining tours I have been on have been some of if not the best [professional development] I have participated in. The message has been consistent – modern mining is an excellent place to work, technically it is on the cutting edge, it requires people with a huge variety of skills and most importantly, safety is number one. As a teacher that has been underground and seen how mining is being done, the message has much more meaning when I deliver it to my audience, whatever their age.” Given an overwhelmingly positive reception and growing demand, the program initially expanded to include a second tour, then a third, multiple camps (i.e., Sudbury, Timmins and Thunder Bay), and became open to include teacher participants from across Canada. In 2016, it underwent a significant re-visioning to reflect participant and facilitator feedback. At the suggestion of OMA’s Indigenous Relations Committee, for instance, audiences were expanded to include Mineral Resource Development Advisers, learners from Indigenous communities, and other educators, including those from industry and informal educators. In addition, requests for tours have come directly from Indigenous and educator groups, including the Anishinabek Nation and senior administrators of Durham District School Board. In its current iteration, the program has been rebranded Mineral Resources and Mining Education Tours, and reorganized to promote a deeper level of professional learning: we encourage participants to start with a Mineral Resources and Mining Education Foundations Tour, followed by the Mine Life Cycle Tour, participating in consecutive years in both Sudbury and Timmins, and complete their training by participating in the Life in a Mining Camp Tour. Upcoming tours include Mineral Resources and Mining Foundations on Aug. 11-14, 2019, and Mine Life Cycle on Aug. 14-16, 2019. Details are available at www.canadianecology.ca/professionaldevelopment/miningtour. As always, we will be offering an enriching learning program, supported by content experts, experienced facilitators and industry representatives. Given its priority status for our industry, safety will be first on the agenda. This year, we have exciting news to share: we met our zero fatality objective in 2018, with no fatal workplace injuries thanks to the concerted efforts of all mining safety partners. Curious how we arrived at this achievement and the values that stand behind it? Want to know what is next on our journey towards zero harm? Been wondering about the progress Ontario mining companies are making in sustainable practices and environmental stewardship? All of this and more is covered during the Mineral Resources and Mining Education Tours. Thank you to our association members, who commit their time and resources to this edifying program, as well as to the CMJ partners who help us with its implementation. CHRIS HODGSON is president of the Ontario Mining Association. CANADIAN MINING JOURNAL |

2019-02-14 4:34 PM

ELECTRIC MINE

PART III OF OUR ELECTRIC MINE SERIES

In this series, we look at some of the key suppliers and mining companies that are working to develop a new template for underground mining – the electric mine of the future.

Collaboration key to innovation at Goldcorp’s Borden mine, near Chapleau, Ont. CREDIT: SANDVIK

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www.canadianminingjournal.com

2019-02-14 4:35 PM

By Alisha Hiyate

f you were to visit Goldcorp’s Borden gold project, currently under construction near Chapleau, Ont., you would be hard-pressed to distinguish one supplier or contractor from another, or from members of Goldcorp’s own project team. “Everybody that contributes to this project, we make sure that they become a team member so they’re not a supplier, they’re not a contractor,” says Luc Joncas, Borden project manager. “When they come to site they have all the same colour of coverall, same hats. We make sure people understand it’s all about being on the Borden team. Some of them now feel more like Borden employees than of their own companies!” The effort to create a single, integrated team at Borden is all part of Goldcorp’s approach to encourage collaboration and make sure its ambitious project – which will be the first-ever modern, all-electric underground mine when it enters commercial production later this year – is successful. From the start, the company knew that success at Borden would rest on finding partners as invested in its vision for an all-electric mine as Goldcorp itself.

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ELECTRIC MINE That’s because some of the equipment needed to electrify Borden did not exist when the miner made the commitment in November 2016. Sandvik and MacLean Engineering, both leaders in electric equipment for underground mining, were brought on as ofﬁcial partners to provide non-diesel machines. Joncas contrasts the partnership at Borden with the traditional transactional relationship between miners and suppliers where both sides seek to extract value from the other. “In our case, we’ve really committed to partnership and collaboration,” he says. “Collaboration can create win-win situations for both parties.” For the gold miner, the win will be to get the equipment and technology it requires in the timeframe it needs – and for all the components to work together

that tsunami of that transition happening,” he said, adding that coming particulate regulations in the EU will hasten BEV adoption. The project also provides a real-life testing ground and real-time feedback to develop their emissions-free product lines, says Dale Rakochy, Sandvik’s business line manager for LHDs and haulage trucks. “It does help when you have real customers with real applications to sort of sit on your design board or offer critiques as you’re going down that design path,” Rakochy says. “There’s nothing that matches the experience from our actual customer operators who can help us be assured that when we develop something, we’re going to have a good reliable product that offers value to our customers.” Having that testing ground also helps to ensure machine components are up to Left: A Sandvik DD422iE electric drill rig and mining jumbo. CREDIT: SANDVIK

Below: The portal at Borden. CREDIT: SANDVIK

to make an economic mine. “A lot of these things can be done, but it has to be kept simple, effective, easy to install, it has to be a way that will make us perform in a proﬁtable manner,” Joncas says. “So our goal is not just to build an electric mine but to build a proﬁtable electric mine – as profitable as a diesel mine.” For Sandvik and MacLean Engineering, the partnership will undoubtedly give them an edge in a market that is only expected to grow for environmental, cost and health and safety reasons. “Goldcorp went out a few years in advance of everybody else globally, but we see all the other majors lining up. It’s coming,” says Stuart Lister, MacLean’s vice-president of marketing and communications. “Right now all you really see is the Borden project, and some other examples like Kirkland Lake, but I think that the early 2020s is when we’re going to see 22 | CANADIAN

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snuff as the OEMs look to build new, non-diesel based supply chains. “Our traditional diesel driven environment has evolved over many years and all of our suppliers have also evolved over the years as the products have evolved,” Rakochy explains. “All of a sudden, we’re changing to a very non-traditional type of a drive system and at times, there aren’t products that are readily available that lend themselves to the compactness of an underground mining machine and the challenging environment.” In late January, Sandvik announced the acquisition of Artisan Vehicle Systems, a private U.S.-based start-up specializing in BEVs for underground mining – another sign of its commitment to non-diesel technology. Why electric? For Goldcorp, the Borden project presented the opportunity to build a silent, www.canadianminingjournal.com

2019-02-14 4:35 PM

invisible mine that would cohabitate nicely with the neighbours, including nearby First Nations communities and cottagers, says John Mullally, the company’s vice-president of corporate affairs and energy regulation. “Borden Lake is 100 or so metres away from where we’re building the infrastructure and the project is on the traditional territory of three First Nations – Chapleau Cree, Chapleau Ojibway and Brunswick House,” he says. “That meant that it was an opportunity to build a mine that was highly inclusive of the communities around us, but also focused on being silent and being very conscious of our environmental footprint. This was really the context that prompted a lot of what we have then gone out and built.” Mullally adds that aside from suppliers, Goldcorp also counts as partners

Above: A battery electric boom truck, manufactured by MacLean Engineering CREDIT: MACLEAN ENGINEERING

On a recent tour of the mine hosted by MacLean, Anthony Griffiths, product manager for fleet electrification at MacLean, said the difference was immediately observed by the guests. “Everyone couldn’t believe how quiet it was and the temperature and the quality of air,” he recalls. “I don’t know how you would put a dollar and cents figure on that workplace improvement, but it’s certainly one of those things you notice right away.” The benefits of electrification don’t end with environment and health. The reduced ventilation requirements will save 33,000 megawatts of energy per year, and combined with 2 million litres in diesel fuel savings, are expected to reduce operating costs by $9 million a year. Goldcorp will also spend less on maintenance of its battery electric fleet.

Our goal is not just to build an electric mine but to build a profitable electric mine – as profitable as a diesel mine. – LUC JONCAS, BORDEN PROJECT MANAGER

both the federal and provincial governments (it’s received grants of $5 million from each for clean technology), all three First Nations and other mining companies with which it’s shared information. Borden won’t be a huge mine: it is expected to average 2,000 tonnes per day over a 9-year mine life (probable reserves stand at 1.2 million oz. gold in 5.9 million tonnes grading 6.34 g/t gold). Rather than building an onsite mill, ore will be trucked to the Porcupine (Dome) mill near Timmins for processing. Still, the difference in environmental impact is significant. Goldcorp expects Borden to produce 70% less greenhouse gases than a comparable diesel mine, eliminating 7,000 tons of CO2 per year. And for workers involved in underground development at the $250-million project, the work environment is already far quieter, cleaner, cooler and comfortable than a diesel mine. FEBRUARY/MARCH 2019

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Those lower operating costs are important as battery electric vehicles have a higher upfront capital cost than diesel. Over the full life cycle, EV manufacturers say the total cost of EV machine ownership is comparable to diesel – and that’s before factoring in reduced ventilation energy, fleet maintenance and infrastructure requirements of an all EV mine, as well as operator productivity gains. As the technology continues to develop, there are already indications that in some cases, BEVs could make previously uneconomic orebodies profitable to develop, Griffiths says. “In a couple of circumstances we’ve been approached by companies where the orebody was not economic with diesel equipment because of the depth of the orebody or the ambient rock temperature,” he says. “They’re now saying with battery powered equipment, we can do this.” CONTINUED ON PAGE 24

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ELECTRIC MINE

An electric vehicle at Borden. CREDIT: GOLDCORP

Equipment challenges Goldcorp chose Sandvik and MacLean as its partners at Borden because of existing relationships with the suppliers, the size and type of equipment they offer, and their flexibility. In terms of battery technology, Goldcorp also preferred opportunity charging through on-board chargers, as opposed to having to swap out batteries on mobile equipment, something both suppliers delivered. The two OEMs also work together at Borden, including providing maintenance to any machine that needs attention, even if it’s not their design. “One project, one team is the mantra

up there, so as a supplier, our maintenance person is there to provide whatever maintenance is needed on that shift on any given day,” says MacLean’s Lister. MacLean introduced its first battery electric vehicle, a BEV version of its popular scissor bolter, at MineExpo

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2016. Since that time, the company has converted its complete line of 3 Series (8-ft.-wide) mobile underground mining equipment to battery power, from ground support to ore flow/secondary reduction and utility vehicles. Sandvik is providing larger equipment to Borden, including 14-tonne load-haul dump (LHD) machines, jumbo drills and 40-tonne production trucks. The company already has a battery electric jumbo drill and a tethered electric 14-tonne LHD – both in use at Borden. But it’s still working on a solution for the production trucks. With the exception of the production truck, development at the mine, which passed the 360-metre-level late last year, has all been done with non-diesel equipment. “The only exception is the trucking – that’s diesel and it’s only due to the fact that we did not find the right technology for our case,” Joncas says. Despite recent advances in battery chemistry, the energy density in batteries is not yet sufficient for a fully loaded 40-tonne truck to haul material uphill out of the mine, he explains. The production truck, which weighs about 40 tonnes and carries a payload of another 40 tonnes, has to climb 600 metres of ramp to get to the surface. “Imagine the energy required in a battery to bring that mass of 80 tonnes from 600 metres below surface up to surface and repeat that five to ten times a shift,” Joncas says. “We’re asking too much www.canadianminingjournal.com

2019-02-14 4:35 PM

A Sandvik electric jumbo at work.

Designing an electric mine The switch to electric from diesel affects more than just the actual machinery. It also affects the mine design and infrastructure. And that too is becoming an area of greater collaboration. “Especially as we go down the electrification road, planning the electrical system underground will need to take into consideration how this equipment will be powered up and what kind of an energy draw will be required,” Rakochy notes. For Canadian mines, a 600-volt electrical system is standard, but Goldcorp has made the decision to use a 1,000volt standard at Borden, which will allow the mine to be more energy efficient and require fewer electrical substations. While other jurisdictions in the world such as Australia and South Africa use a

u PER Y EA OZ A 00 N R U C T IO

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UNDER

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CONST

from a battery truck right now.” However, Goldcorp and Sandvik are working together to find a solution, says Goldcorp’s Mullally, with the delivery of the 40-tonne truck expected in the third quarter of 2020. “Right now, we’re still running with Sandvik diesel trucks,” he says. “We continue to work iteratively with them around designing the model that’s going to work for us,” he says. The other piece of equipment that’s been challenging is the 14-tonne LHD. Sandvik doesn’t yet offer a BEV loader in that size (it has one that is 6.7 tonnes), but it does have a tethered electric LHD. Tethered machines offer lots of power, but because they need to remain plugged in, have a trailing cable that limits their mobility. As long as there’s only one face being developed at Borden, the mine works smoothly using tethered loaders. However, as more faces open up during production, the mine will need a loader that’s more flexible and mobile, Joncas says.

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CONTINUED ON PAGE 26

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CANADIAN MINING JOURNAL |

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ELECTRIC MINE MacLean Engineering is electrifying its entire fleet of mobile underground mining equipment. CREDIT: MACLEAN ENGINEERING

1,000-volt standard, it is a departure for Canada. “I think we owe a lot of credit to Luc as the project manager who is willing to test preconceived notions or longheld assumptions – to test those by just asking, ‘Is this the best way to do that?” Mullally says. Joncas says the decision has resulted in a faster pace of development and reduced costs. “The substations can be placed further away from each other, so we were able to eliminate quite a few substations while driving the ramp,” he says. “We did not put any substations until 1,200 metres – that’s due to the choice of voltage, 1,000 instead of 600.” While the suppliers don’t have direct involvement in the mine design, they are

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consulted on the design, especially as it relates to getting the best value out of the equipment they’re providing. “Mining companies have really become open to including you in the mine design, the layout of the charging stations, the runs and heading sizes and all that,” Griffiths says. Griffiths, who has 25 years of experience in the industry with MacLean Engineering, says this trend extends beyond Borden and is part of a change in

the wider culture of mining. “Before, you were given a specification for a type of machine – it had to do this and this and you competed on price and a couple of other things, but basically you knew what they wanted,” he says. “Now, the miners are willing to come to the OEMs and say ‘Can you do this? What do you think if we did do this?’ There’s a real sort of back and forth relationship going on with the development of the CMJ equipment.”

www.canadianminingjournal.com

2019-02-14 4:35 PM

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Making inroads on the

RING OF FIRE?

Progress is being made on community access roads in the Ring of Fire region. While these would tie into the north-south corridor that leads to the Ring of Fire, a First Nations proponent for that stretch of road has yet been determined. CREDIT: NORONT RESOURCES

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www.canadianminingjournal.com

2019-02-14 4:36 PM

By David Godkin

epending on who you talk to, Noront Resources has apparent the process was unwieldy and doomed to failure. either taken a key step forward to meeting its production “The Webequie and Marten Falls First Nations are the tratargets at its Eagle’s Nest nickel-copper-platinum-pal- ditional landholders in the area and always felt that they should ladium development in the Ring of Fire (ROF) or a giant be the leaders on the project,” Coutts says. So Noront and step backwards. To date, the Toronto base metals company government left both First Nations to sort out any difficulties. has handed off environmental assessThe risk remained, however, that other ment (EA) permitting for the contenFirst Nations land users would become tious all-weather community access road alienated by the preponderant role played into the site to local First Nations – by Webequie and Marten Falls in road while delaying by another year its producdevelopment. tion timeline to 2023. Coutts is confident that Webequie and “Our production depends entirely on Marten Falls “as they do their road developthe timing of the road construction and ment will consult with other First Nations they still have to finish the EA and physicommunities.” Once that is complete, cal construction of the road,” says Noront Noront will turn to completing the EA on CEO Alan Coutts. “You can’t rush these the longer road into the Ring of Fire, and assessments; they have to be done propconsult with those communities as well. erly, or they will end up in the courts.” “We think we’ve landed on a nice soluAlong with the vagaries that accomtion. I also see that some of the approaches pany environmental assessment and to the western Canadian pipelines are First Nations consultation is the shifting mimicking what we’ve done.” health of commodity prices and investor confidence. Add to this the province’s The road to chromite hesitation under Premier Doug Ford’s So far stewardship over the EA process by Progressive Conservatives to match or Webequie and Marten Falls seems to be – ALAN COUTTS, NORONT CEO approach the previous Liberal governworking well. The EA for the first half of ment’s promise of $1 billion in minthe road to the Albany River with a coning-related transportation infrastructure nection to Marten Falls has started, as has and questions about its commitment to the Ring of Fire remain. the Webequie’s EA on their road to Pickle Lake. On Jan. 25, Webequie also released its official notice of commencement on A bigger role for First Nations terms of reference for an EA along the corridor from its comSince acquiring the McFaulds Lake copper-zinc deposit in munity into the Ring of Fire. 2015 and MacDonald Mines Exploration’s interests two years The focus now is precisely along that stretch of road up into later (see CMJ June 2017), Noront controls about 85% of base the Ring of Fire. “Government, Marten Falls and Webequie as metal holdings in the ROF, which is about 500 km northeast of we speak are determining who’s going to be the First Nations Thunder Bay. Now, drilling is underway at a recently discovered proponent of that stretch of road,” said Coutts in early Februcopper zinc deposit 15 km east of its Eagle’s Nest camp – draw- ary. “We’re hoping to hear that announcement within maybe ing attention once again to that all-weather road. two or three weeks’ time.” “There are a number of smaller copper zinc deposits and we Let’s be clear, though, says past First Nations chief and curthink we’ve got a large one to complement that,” Coutts says. rent advisor to Marten Falls, Lawrence Baxter. In an interview “If that’s the case, theoretically you can see a copper zinc enter- with CMJ, Baxter made it abundantly clear an access road must prise making a copper zinc concentrate that could be trucked.” first be built into the Marten Falls community. The excitement in Coutts’s voice over a large mineralized land “We fought hard for that. At this point in time we’re not base in which to work and reap profit is palpable. But like any considering building a road into the Ring of Fire,” Baxter said. large holding where the terrain is uncertain, it’s important to For her part, Christine Kaszycki, Assistant Deputy Miniskeep eyes trained on potential pitfalls, notably an array of land ter responsible for the Ring of Fire notes baseline studies have users in the region anxious to protect their social, economic and already been undertaken, including wildlife and water impacts. environmental rights. “Those studies include the segment extending north to the One solution proposed by previous government was consul- Ring of Fire and they are being carried out as part of the work tation with the entire Matawa First Nations Tribal Council to underway with respect to the community access road.” Kaszyensure the rights of up to nine communities were protected. cki sees that as a signal of the community’s interest in pursuing CONTINUED ON PAGE 30 After four years of attempted consensus building, it became

We think we’ve landed on a nice solution. I also see that some of the approaches to the western Canadian pipelines are mimicking what we’ve done.

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an all-weather road directly into the ROF. Noront’s Coutts appears to have made progress along another front, i.e. narrowing down the location for a chromite smelter from four proponents to Timmins and Sault Ste. Marie. The goal, Coutts said, is to mine a chrome ore at its Blackbird site and truck that ore to a local railhead before sending it by rail to the Sault. How does government indecision around the road impact all this? Big time, replies Coutts. Glencore, which owns the Timmins site and Algoma Steel, owner of the Sault Ste. Marie site, can’t wait forever. “We said, ‘Guys stand by, you both have excellent sites that can be re-purposed to produce a ferrochrome.’ “And we’re going to continue to negotiate the commercial terms for both those sites. But we need to get some clarity from the provincial government on when this road’s going to get built before we can sign an agreement.” Continued uncertainty? As she has in the past Kaszycki offers mostly generalities about where the road goes from here, arguing a number of factors come into play, not the least of which is federal funding. While the feds have provided socio-economic funding for investments in First Nations housing and water treatment, Kaszycki says nothing has been forthcoming recently on funding support from Natural Resources Canada or Infrastructure Canada for roads development into the ROF. “Certainly Ontario is very interested in ensuring the oppor30 | CANADIAN

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tunity extends into the ROF with respect to the roads currently being constructed,” Kaszycki said, “and we’ll continue to work with communities and the company to move forward in a timely fashion.” Is that enough for Coutts? “Ultimately, it’s about a five-year timeline from today to construction of a nickel concentrate from Eagle’s Nest that could go down that all-season road.” But only, Coutts added, if the province makes up its mind www.canadianminingjournal.com

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From left, clockwise: Mining claims in the Ring of Fire; Noront’s Esker camp; Snowmobile training for Noront staff. CREDIT: NORONT RESOURCES

about its support for the road. In addition to completion of the EA process, financing the Eagle mine will be required as road construction progresses. Much can happen over that five-year period, of course, but Coutts remains bullish. “We’re working well with local First Nations and with Greg Rickford, Minister of Energy, Mines, Northern Development and Indigenous Affairs. So we think everything is lined up very nicely and hope to see that EA advancing early this year.” Investors will be happy to hear that, especially those who heard Coutts warn earlier the entire project could be halted if financing dried up. A critical question for investors now will be how delays have impacted or may impact long term valuation and cap costs at Eagles’ Nest. “I can’t really say they have changed, because we haven’t done a lot of work in that area,” Coutts said. “Once the road permitting is established and construction starts to move ahead we will update our feasibility on Eagle’s Nest.” Coutts noted, for example, the price of nickel may be lower now than it was in 2012, but the price of palladium is double the price it was. How that updated feasibility study turns out “might give us a different view,” he concluded. CMJ FEBRUARY/MARCH 2019

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NEW MINES

ON THE

RISE

Gold projects dominate CMJ’s list of advanced development projects By D’Arcy Jenish

here are 38 producing mines in Ontario – 28 of them metal mines and the balance non-metals, according to a 2018 survey by the Ontario Mining Association. The non-metal, or industrial mineral mines are scattered across the south – from Windsor to Lanark County in eastern Ontario. The metal mines – with one exception – are situated in the north or Far North, the latter being the province’s vast, largely undeveloped land mass beyond Lake Superior. Ontario is the country’s largest gold producer – thanks to the 17 mines currently in operation – and the province could increase its dominance if a number of currently promising projects reach production. An OMA year-end survey listed 30 advanced mineral projects – over half of them gold prospects. Here is a look at some of the most promising projects – six gold and one lithium. They are listed alphabetically. First Mining Gold’s Springpole gold project. CREDIT: FIRST MINING GOLD

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1 Goldcorp’s Dome mine in Ontario’s Porcupine district.

1: Century – Goldcorp

CREDIT: GOLDCORP

Goldcorp’s Century project is located within the municipal limits of the city of Timmins in the historic mining district of Porcupine. It is one of three Goldcorp projects in development in the province of Ontario. However, the other two – Borden, which is located 160 km west of Chapleau in the Porcupine District, and Cochenour, 5 km from Red Lake in northwestern Ontario, are both more advanced. Goldcorp is re-developing the former Dome mine, an open pit and underground operation which was in production from 1910 until 2016. To date, Goldcorp has completed a concept study on the engineering, waste rock management and economics of

an open pit mine and related processing facility. The company envisions doubling the depth and diameter of existing open pit. A prefeasibility study was expected to be complete in 2018 with a feasibility study to follow this year. The company also planned to continue infill drilling from surface and underground in order to convert inferred resources to reserves. However, given the merger with Denver-based Newmont Mining, announced in mid-January, there is always the possibility that priorities could change.

2: Goliath – Treasury Metals Toronto-based Treasury Metals is advancing through the permitting process and projecting “near-term Canadian gold production” from its Goliath property, which is located 20 km east of Dryden in northwestern Ontario. The Goliath project is an amalgamation of two properties – Thunder Lake, which Treasury acquired from Teck Resources and Corona Gold in 2008, and the Laramide property, purchased that year from Laramide Resources. Since acquiring Goliath, Treasury has The Goliath gold project, near Dryden. CREDIT: TREASURY METALS

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completed more than 143,000 metres of diamond drilling and filed three NI 43-101 resource estimates. The company has also completed a full baseline environmental study and in March 2017 an updated preliminary economic assessment (PEA). The next step is to produce a bankable feasibility study. Last October, the company released an updated resource. Measured and indicated resources now stand at 1.3 million oz. gold equivalent, up 64% from a 2015 estimate, and an additional 226,700 inferred oz. The preliminary economic analysis concluded that bringing the property into production would require a capital expenditure of $133 million. The Goliath mine would produce an average of 87,500 oz. of gold and 160,000 oz. of silver over the 13-year life of the mine. At a discount rate of 5%, the mine would generate a net present value (NPV) of $306 million and a 25% internal rate of return.

3 4: Magino – Argonaut Gold

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Nevada-based Argonaut Gold cleared a major hurdle in January at its Magino mine property – located 40 km northeast of Wawa – when the federal Environment Ministry approved the company’s environmental assessment in late January. The company anticipates provincial approval later this year and, meantime, will continue with design and engineering studies. Argonaut acquired Magino – a historic underground mine – in December 2012, but envisions an open pit operation with a life of seven to eight years. The company published a feasibility study in late 2017 that put proven and probable reserves at 59 million tonnes of ore averaging 1.13 g/t gold for 2.1 million contained oz. Argonaut Gold’s Magino project. CREDIT: ARGONAUT GOLD

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3: Hardrock – Premier Gold Mines and Centerra Gold In 2008, Premier Gold Mines acquired the Greenstone gold property, located 275 km northeast of Thunder Bay. Part of that land package included the former Hardrock underground mine, which produced more than 4 million oz. of gold between 1930 and 1970. Premier carried out an extensive drilling program at the Hardrock site and published a PEA in 2014. Then in March 2015, the company formed a 50/50 joint venture partnership with Centerra Gold, which has since invested $185 million to advance the project. The partners released a feasibility study in November 2016 that outlined an open pit project with probable mineral reserves of 141.7 million tonnes grading 1 g/t gold. They forecast average annual production of 288,000 oz. of gold, or 4.2 million oz. over the 14.5-year life of mine. To design, build and commission the mine would require a capital investment of $1.3 billion. The partners forecast an after-tax payback period of 4.5 years based on a gold price of US$1,250 per oz. In December, the federal Ministry of Environment and Climate Change approved the environmental assessment done on the project and provincial approval is expected in 2019. Reverse-circulation drilling at the Hardrock project.

5: Madsen – Pure Gold Mining

Vancouver-based Pure Gold acquired the Madsen property, located 16 km west of Red Lake in 2015, hoping this historic producer could be put back into production as quickly as Underground at the Madsen gold project during test mining. CREDIT: PURE GOLD MINING

CREDIT: GREENSTONE GOLD MINES

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possible. And there was ample reason to think that could be achieved. The property – which is fully permitted – came with most of the required infrastructure, including a 1,000 t/d mill, a headframe, a 1,275-metre deep shaft, as well as a portal and ramp. There are also 27 levels of underground workings – legacy of the property’s history as a producing mine. Between 1938 and 1976, Madsen yielded 2.4 million oz. of gold. But there is believed to be a lot of high-grade gold yet to be mined. In early February, the company released a resource update increasing indicated by 319,000 oz. The latest figure is 7.2 million Indicated tonnes grading 8.9 g/t containing 2.1 million oz. A feasibility study, which Pure Gold began in early 2018, is due out in early 2019. A preliminary economic analysis released in September 2017 estimated that Madsen could be put into production for $50.9 million and could produce 66,100 oz. of gold annually for 14 years. Payback would be achieved in 2.8 years based on an after-tax NPV (at a 5% discount rate) of $258 million and an after-tax IRR of 47%.

6: PAK – Frontier Lithium Val Caron, Ont.-based Frontier Lithium is the sole owner of the PAK Lithium deposit, located 175 km north of Red Lake. The company’s objective is to develop a low-cost lithium and tantalum mine that will supply technical grade spodumene concentrate to the glass-ceramic market, which currently consumes roughly a third of global production. Long-term, the company hopes to produce higher grade concentrates and sell to manufacturers of batteries used in electric vehicles as well as electrical grids. As part of a prefeasibility study published in March 2018, measured and indicated resources were pegged at 8.5 million tonnes of 1.78% lithium oxide with inferred resources adding 1.9 million tonnes of 2.01% lithium oxide. Resources of that magnitude would support a mine for 16 years, of which 11.5 years would be open pit and the balance underground. The study also set pre-construction capital costs at $147 million and life of mine revenues at $1.9 billion. Channel sampling at the Spark discovery, near the PAK lithium project.

6 CREDIT: FRONTIER LITHIUM

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7: Springpole – First Mining Gold Vancouver-based First Mining Gold describes itself as an emerging development company with a diversified portfolio of gold projects in North America. Springpole, which the company acquired in November 2015, is the company’s flagship asset. Located approximately 110 km northeast of the town of Red Lake, it spans 324.5 sq. km. The company released a PEA in September 2017 that indicated that the deposit contains 4.7 million oz. of gold and 24.2 million oz. of silver. Infrastructure in place includes a 72-person camp, a winter access road, nearby hydro lines and a logging road which is 10 km away. In March 2018, First Mining began an environmental assessment and initiated consultations with several nearby First Nations, but has yet to submit its EA to the federal or provincial governments. CMJ

First Mining Gold’s Springpole gold project. CREDIT:FIRST MINING GOLD

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SUDBURY INNOVATION CLUSTER

the

‘SILICON VALLEY’ of mining tech Sudbury’s mining players aim to create a global hub By Alisha Hiyate

orcat’s underground test mine facility, about 40 minutes northwest of Sudbury, Ont., is full of interesting sights: New technology being installed and tested, underground classrooms that are used to provide safety training, a production crew of miners who are learning on the job. And soon, the above-ground facilities will be equally impressive. The current buildings – which now consist of a couple of portables that house modest offices and change rooms – will be replaced by a purpose-built structure more befitting of Norcat’s big ambitions. “Our intent is really to become the global one-stop shop for all that is the future of mining technology and innovation,” says Don Duval, the organization’s CEO.

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A private, non-profit organization that was founded in 1995, Norcat’s plays a central part in Sudbury’s rising place in international mining. “We’re the only innovation centre in the world that owns and operates an underground mine that enables startups, small and medium companies, international companies to develop, test and ultimately demonstrate emerging technologies that they believe are poised to transform the global mining industry,” Duval says. “That is the role that we play – to really anchor this mining technology/mining innovation ecosystem based around this unique asset.” Laurentian University’s new Cliff Fielding Research, Innovation and Engineering building. CREDIT: YALLOWEGA BELANGER SALACH ARCHITECTURE

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’

Above: Shots from the interior of the Cliff Fielding building. CREDIT: YALLOWEGA BELANGER SALACH ARCHITECTURE

Top middle: Pierre Zundel, Laurentian University’s interim president. CREDIT: LAURENTIAN UNIVERSITY

Construction of Norcat’s new $3-million building, which will include meeting spaces, office space for tech companies, and space for academic institutions and government organizations, should start in March and be complete by the end of 2019. In addition to connecting the “buyers” and “sellers” of mining innovation, Norcat provides skilled labour training and development programs. Its services – both at its test mine and its main location in Sudbury – are in high demand. “We’re heavily investing in expanding our service operations just to meet the forecasted demands,” Duval says, adding the new facilities will sustain the organization for the next seven years of growth. Twenty per cent of the organization’s business already comes from outside of Canada – compared to five years ago, when it had no international clients. Global ambitions It’s not just Norcat that has global ambitions for itself and for Sudbury. Ricus Grimbeek, who was appointed as COO of Vale’s North Atlantic Operations and Asian Refineries in mid-2018, has signalled that he intends to run the division from Sudbury, with the city serving as a central node. He also sees the potential FEBRUARY/MARCH 2019

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for Sudbury to become “the global hub for digital underground mining,” he said at a Greater Sudbury Chamber of Commerce event in January. Sudbury is already a natural hub of mining: Vale and Glencore operate six mines within the city limits; there are roughly 350 mining service and supply companies that call Sudbury home; and there are three post-secondary institutions that train the mining workforce. But Pierre Zundel, interim president of Laurentian University, says the university, Grimbeek and others want to push the Sudbury’s status to a new level. “We’re working together with Vale, the city, Glencore and a number of other players with the idea of turning Sudbury into the worldwide hub of deep mining and creating that sort of Silicon Valley equivalent for mining technology here in Sudbury,” Zundel says. The university itself also has high aspirations. “I think we are already Canada’s mining university, we’re the only university in the country where mining figures prominently in its strategic plan and we have that strength right across the mining cycle disciplines,” Zundel says. “Our society can’t function without mining and the products that mining creates. Our ambition is to make sure that mining CONTINUED ON PAGE 42

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Bolter testing at Norcat’s underground test mine, outside of Sudbury.

A demonstration of Maestro Digital Mine technology at Norcat’s test mine.

CREDIT: NORCAT

happens in a way that’s environmentally safe, that’s respectful of Indigenous communities and the local population, that’s safe for workers, and we think we can help with all of those – not just here, but around the world.” The status that Sudbury and Laurentian already enjoys is evident in the international visitors they get – delegations from China, Russia, Peru, Chile and other places that are looking to tap into the latest knowledge on environmental practices, safety practices or new technology. “We had a delegation of 22 execu-

tives from Chinese mining companies and government agencies here in the fall looking to figure out how it is that Ontario is the safest mining jurisdiction in the world and looking at our research and development work around mining and safety,” Zundel says. “So we’re ambitious, we think that we can do some good in the world and we’re going to go hard.”

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Competitive advantage The mining sector remains subdued, at least compared with previous manic phases of growth and unsustainably high metals prices. Yet companies, organizations and individuals that are part of Sudbury’s mining innovation cluster are unfailingly optimistic about their individual and collective futures. The global mining industry is looking for solutions to its productivity, environmental, and health and safety issues, and the unique concentration of mining supply and service companies, academic and non-profit organizations in northern Ontario and centred in Sudbury, is delivering them. Hard-Line Solutions, for example, a company that provides teleremote systems for underground mining machinery, may be based just outside of Sudbury in Dowling, but it doesn’t depend on local business. Only 4% of Hard-Line’s sales are in Sudbury – and the company has aggressive global expansion plans. “Every time there’s a local strike, we grow,” says Hard-Line founder and CEO Walter Siggelkow, recalling the year-long strike at Vale’s operations in 2009-10. “We don’t follow the rules when it comes to following the downturns in mining – we are very competitive.” Once Canadian companies start working with Hard-Line in Canada, they tend to deploy the technology to their other operations in other parts of the world, he notes. “In one year we did work in Honduras, Nicaragua, Chile, the year after was Tunisia – but it was all taken there by Canadian mining companies.” While Sudbury is not the most convenient base to serve international clients, Siggelkow says it has been helpful to have so many mines within a 20-minute drive, plus others in northern Ontario and Quebec that are only a few hours’ drive away. He also credits Norcat’s testing and demonstration facilities as a big help in developing the business, especially since arranging www.canadianminingjournal.com

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Top: The Laurentian University campus. Bottom: Niranjan Mishra teaches an engineering materials lab at Laurentian’s Cliff Fielding building. CREDIT: LAURENTIAN UNIVERSITY

testing in most working mines is so difficult. “The Norcat facility gives a place for companies to go rent space and they’re guaranteed they’re going to have X amount of time to do their testing,” Siggelkow says. “That’s one of the things that’s really helped us be able to push our technology ahead is the availability of our test mine.” The company, which has grown from a startup in 1996 to an international business, can take clients to the drift at the mine that they rent at almost any time to demonstrate its technology in action. It’s also run their machine at the Norcat test mine remotely from Perth, Australia, to show potential clients. “It’s a 12-hour time difference so the Norcat people were very willing to actually work a weird schedule so that we could actually do that demonstration and that testing,” Siggelkow says. The workforce of the future It’s no secret that the mining sector is facing a severe and wors-

ening talent shortage. To compete for existing talent, Hard-Line is opening a new building to house its R&D team in the city as a means of attracting and retaining talent who want to be downtown. Felicia Brunelle, Hard-Line’s vice-president of business development, says one of the tangible benefits of Sudbury’s growing reputation for mining innovation could be attracting the right talent to the area, which allows the company to keep its head office in Sudbury. “That growing reputation will be very important because recruiting for these technical positions is critical to maintaining our competitive advantage,” Brunelle says. It, and other companies, are also working closely with Laurentian. The Bharti School of Engineering for example has recently seen a $2-million donation from Iamgold to help develop labs in mining engineering technology, and a $250,0000 donation from Hard-Line to establish a mechatronics lab at the school. The partnerships provide industry insight into where mining education is headed and Laurentian insight into industry. Laurentian University’s close ties with industry are helping it devise strategies to bring more people into the sector. “We are training increasing numbers of people with mining cycle discipline capabilities,” Zundel said. The university recently had 25 faculty members and students from the University of Limpopo in South Africa for graduate and undergraduate degrees in mining-related disciplines. “They were supported by Ivanhoe Mines, a Canadian company operating in South Africa to come here because it’s really the best place to do that type of work,” Zundel said. “And we have ongoing conversations with other Canadian mining companies at various stages of development who are looking to send students from their operations overseas to Canada.” CONTINUED ON PAGE 44

www.puregoldmining.ca PGM:TSX-V

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SUDBURY INNOVATION CLUSTER

While some of the students who study in Sudbury go back to their home countries, others stay and add to Canada’s talent pool. While it’s not yet a formalized initiative, Zundel has also been speaking with industry players about offering guaranteed opportunities for internships, co-ops and placements for students coming to the mining-related programs so the pathway to work is clearer for them. Also in the next several months, Zundel expects a new director of the university’s Goodman School of Mines to be named. The Sudbury ‘miracle’ Sudbury’s unique underground mining innovation network has arisen as a result of both natural factors and a lot of deliberate planning, hard work and ambition. “Of course we’re sitting on the largest environmental rehabilitation project related to mining in North America and the re-greening of Sudbury,” Zundel says. On the environment front, the city’s collective expertise in cleaning up mine waste comes from Sudbury’s mining history. The region was extremely polluted because of emissions from the nickel refineries. “I was here in the ‘70s, working for Falconbridge as the senior ground control engineer,” says Vic Pakalnis, the CEO of Mirarco (Mining Innovation Rehabilitation and Applied Research Corp), another part of the mining innovation ecosystem. “Sudbury was awful. The air was so thick with sulphur dioxide. The lakes were 80% dead. “I come back six years ago and it’s a miracle – the lakes are back – 300 of them. We have more lakes than any other municipality in Canada and they’ve got fish in them that you can eat!” The re-greening of Sudbury was accomplished through work by the University, whose Vale Living With Lakes Centre continues to do top-flight work on remediation of industrial landscapes, as well as the mining companies. “We were one of the groups that made it possible to re-green the Sudbury basin,” Zundel says. “It was our earth scientists

Hard-Line Solutions’ donation of $250,000 to the Bharti School of Engineering will go towards a “mechatronics” lab – a combination of mechanical engineering and electronics. CREDIT: HARD-LINE SOLUTIONS

who developed the chemical formula that was used to make the soil habitable for plants again as part of that re-greening and many of our grads have done work on both the soil and the lakes to try to figure out how to bring them back to life after that industrial pollution.” Now, so much progress has been made in terms of emissions technology that Vale recently announced it is decommissioning its 380-metre Superstack, which since the early 1970s has been used to disperse sulphur gases from its smelter away from Sudbury. It will be replaced by two, more efficient 137-metre stacks. The company recently completed a $1-billion Clean AER (atmospheric emissions reduction) project that will reduce sulphur dioxide emissions by 85% and metal particulate emissions by 40%. “We have an amazing population here that’s very entrepreneurial,” says Mirarco’s Pakalnis. “I’m very proud of Sudbury CMJ and what it’s become.” Supported by

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08/02/2019 09:42

www.canadianminingjournal.com

2019-02-14 4:41 PM

Fuel, Anywhere. Exploration, mining and construction operations take on several new challenges when they take place in Canada’s High Arctic. Keeping the camp supplied with fuel is one of those challenges. When roads and waterways become impassable, operators run the risk of isolating their operation. Previously, this risk was overcome by hauling ill-suited fuel drums inside an aircraft. Drums can damage the interior of the craft, have a negative impact on the environment, and can cause injury during handling. Return flights must lug spaceconsuming drums back out of the camp once empty. Simply put, this costs a lot of money.

However, the fabric that usually constructs these tanks acts differently in a harsh Arctic environment. This fabric is prone to cracking at sub-zero temperatures. Tanks can fail under the weight of significant snow drifts. Bladder tanks constructed of SEI’s proprietary ArcticShield fabric is designed for jet fuel and diesel fuels. It can be deployed at -50°C and has a one-way vent system to help manage the load from heavy snowfalls. The Arctic King tank is certified to meet CSA standards and can help site operators build and maintain a tank farm for fuel storage, even in the most challenging environments.

The Bulk Aviation Transport Tank, or BATT, is ideal for these situations. It is designed for each individual aircraft to maximize the payload. It can be stored when not in use so the aircraft can haul other equipment or people. It enables operators to buy bulk fuel and save the drum deposit, surcharges, backhaul costs and disposal costs. In use around the globe, the BATT is already a mainstay of the mining exploration community. Eliminate empty backhaul flights, injury and environmental risks and save money.

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SUDBURY INNOVATION CLUSTER

GLENCORE digs deep in Sudbury

Onaping Depth will be Glencore’s first all-electric mine and its deepest By Alisha Hiyate

s a long-lived mining jurisdiction, the mines in Sudbury, Ont., are only getting deeper and more expensive to develop. And at less than US$6 per lb. at press time, the price of nickel isn’t exactly soaring. But Peter Xavier, vice-president of Glencore’s Sudbury Integrated Nickel Operations (INO), hasn’t been more confident in the future of the operations in years. Glencore’s US$700-million Onaping Depth project is under construction, the company is evaluating a deep project at its Nickel Rim mine, and it’s turning up promising results at its Norman West project near Capreol. “We have a strong set of operations now, we have one project being built, one on the cusp of moving forPeter Xavier ward and then from an exploration perspective, we see further potential even beyond that,” he said in an interview in Glencore’s Sudbury offices in November.

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“For us in Sudbury it’s been decades since we’ve had that type of vision on our longevity. We were always facing depleting reserves, we didn’t always have an option for what was next.” Xavier joined Falconbridge in 2001, before the company was taken over by Xstrata in 2006 and then Glencore in 2013. In 2015, he was promoted to his current role, overseeing the Sudbury operations, which include the Nickel Rim South and Fraser mines, Strathcona mill and Sudbury smelter. The company’s newest project, Onaping Depth, was approved in early 2018 and will see first ore by 2023. Onaping Depth, located just northwest of Sudbury, was first discovered in 1994 below the Craig mine, but despite its high grades, at 2.5 km depth, it hasn’t been feasible until recently. “When Onaping was first discovered back in the ‘90s, it was quite deep for Sudbury and there were a lot of unknowns around mining at that depth,” Xavier explains. “What’s since happened is up in Timmins our sister operation in the zinc group, the Kidd mine, has developed down to those levels; Glencore’s Onaping Depth project lies deep underneath its Craig mine, near Sudbury. CREDIT: GLENCORE

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Vale’s Creighton as well; and Agnico’s LaRonde in Quebec – so there’s been a lot of learning, understanding from the geotechnical context.” Deep mining The challenges of deep mining are both economic and technical. “Naturally, these deposits are more expensive. They’re more capital intensive to develop and the time before you get first ore or first revenue is much longer. So your traditional net present value and internal rate of return calculations are going in the wrong direction,” Xavier says. And given their depth, the deposits harder to find, explore and define.

ogy. In late 2016, the company completed a feasibility study on Onaping Depth and made the decision to go battery electric, which made a big difference in the overall economics. “On the ventilation side, going battery-electric means that machine requires a lot less air, even from a regulatory perspective because we have no contaminants to clear,” says Xavier, a mine engineer and graduate of Laurentian University. “You then can resize your heating, your cooling and your ventilation systems, which saves you a lot of capital and operating cost in the future. So when you put that all together, that’s what brought a tremendous benefit to the mine.” Going electric means a 44% reduction in greenhouse gas emissions, a 40% reduction in ventilation requirements and a

Glencore’s Strathcona mill, which processes ore from the Fraser and Nickel Rim South mines, as well as from third parties. It produces both nickel-copper and copper concentrates. CREDIT: GLENCORE

Glencore’s Fraser nickel-copper mine.

From a technical perspective, there are also geotechnical, heat and logistical challenges. “At Onaping Depth, we have ambient rock temperatures of 40-50°Celsius, so we have to think of things we never had to think of before, like cooling,” Xavier adds. “And then obviously logistics – deeper means people, materials, all your services – they just have that much farther to go, and all your material you’re bringing out, the ore, is having to go that much farther to come out against gravity. So all else being equal, everything is going to a higher degree of difficulty and complexity.” It’s in that context that the INO division got the project approved after many years of work. Onaping Depth contains mineable indicated resources of 13.8 million tonnes grading 2.25% nickel and 1.02% copper. The US$700-million project was approved in late 2017, with initial development beginning on the two primary headings required to develop the internal shaft earlier that year. Learnings from other recently developed deep mines have helped inform the mine design to make Onaping Depth viable. But the real game changer has been battery electric technol-

41% reduction in overall power required. It also allows for a 23% reduction in shaft diameter. From a production point of view, diesel-free equipment also makes sense because it adds operational flexibility – in traditional mines, air flow regulations limit the number of pieces of equipment you can run in any particular area because of emissions. Glencore has been testing battery equipment from multiple OEMs, including MacLean Engineering (bolters and boom trucks), Papa Bravo and Sudbury-based Industrial Fabrication (mine carriers), Epiroc (jumbos), Caterpillar (LHDs), as well as diesel-converted equipment from MineCat and Marcotte Mining. “Everything we buy today we look to see if there’s a battery-electric equivalent on the market. In some cases it’s not the right time to buy it and in other cases we do to gain exposure, gain confidence and start to learn it,” Xavier says. “Ontario is where you see most of the BEV activity happening,” Xavier observes, adding that colleagues from other operations across Glencore have visited their operations to see the machines in action.

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CREDIT: GLENCORE

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Mines in Ontario are among the first where there’s a solid economic case for battery electric without subsidies, he says. “Maybe it’s because of the combination of our depth and the regulations around ventilation, as well as the heat at depth, the need to heat and cool our air,” he says. In the meantime, development at Onaping Depth is well under way. Lateral development has been carried out by DMC Mining, a subsidiary of KGHM. Although the Craig mine ceased production in 2009, KGHM has been using the infrastructure to mine its Morrison deposit, which is located between the Craig and Levack shafts. “The good thing for us is it kept the operation maintained and being used which was a very good thing and one of the enablers for Onaping Depth because you can imagine if this was sitting idle since 2009, they would need a lot more capital to get back up and running,” Xavier says. Glencore and KGHM are currently sharing the Craig infrastructure, but KGHM will be moving to access its deposit through the Levack shaft. The Craig shaft extends to about 1.5 km depth and is located about 1 km horizontally from where the new internal Onap-

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Inside Glencore’s Sudbury Smelter, which smelts nickel-copper concentrate from the company’s Sudbury, Raglan and XNA (Australia) operations. CREDIT: GLENCORE

ing Depth shaft will be. The internal shaft, which will involve setting up an underground headframe, will start at the 1,200metre level and extend to the 2,630-metre level, or 1,430 metres in length. The contract to develop the 7.2-metre-diameter production shaft has been awarded to Cementation, with work expected to begin towards the end of the year. Development also includes the construction of hoistrooms and a bulk air cooling plant. Battery electric advances Understanding that battery electric equipment would play a big part in the future of deep mining, Glencore has been actively involved in pushing OEMs to develop common standards through the Global Mining Standards and Guidelines Group. Glencore Sudbury wanted to avoid an iPhone-type situation where different chargers are needed for different devices, Xavier says. “You have to get consistency on those types of things, whether it’s battery swapping or charging, get those systems standardized.” Even as development work continues at Onaping Depth, battery technology is rapidly improving. Quick-charging is getting better and faster (as little as 15-20 minutes for some machines) and even battery swapping is becoming less cumbersome. Whereas a crane might have been necessary to swap batteries in the past, there are now “cassette” options that make swapping faster and easier and don’t require specialized equipment. Even so, Glencore has anticipated that there may still be limitations on battery power when the equipment is needed in mid-2022, particularly with the ability of large 40-50 tonne trucks to haul loads uphill. www.canadianminingjournal.com

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To mitigate against that risk, the company has incorporated changes in its mine design, Xavier says, with the design allowing trucks to haul loads downhill to the final dump point, and boosting the battery as they go through regenerative braking technology.

Left: Glencore’s Sudbury Smelter. Right: Glencore’s Nickel Rim South mine. CREDIT: GLENCORE

Future of mining The future of mining in Sudbury is deep mining, and it’s shaping new technology and innovation in mining. “Going deeper in Sudbury is a natural consequence of mining here for a long time, thereby having exhausted the near-surface deposits presents a unique set of challenges. So I think the approach is now to match up the areas of innovation and technology to address those challenges and ensure a sustainable future,” Xavier says. Glencore INO’s vision for those sustainable future operations is electric, digitally connected and involves minimizing waste. The company is already making use of automation where it makes sense: its rockbreakers at Nickel Rim are remotely operated from surface, while its production scoops are partially automated. Operators drive them until they get to an open production stope, where they get off the machine and remotely drive the machine in and out. “Right now, the algorithms are not quite efficient enough to ensure a full bucket each time, so basically the operator does that and from there he puts it on autonomous and it drives to the dump point by itself, it dumps, and it comes back by itself.” While automation creates a lot of safety and productivity benefits, at the end of the day mining is still a batch process with discrete drill, blast and muck cycles that’s fragmented and less efficient than it could be, Xavier says. “In order to go fully autonomous you have to figure out how to go to continuous first,” he says, adding that Glencore is participating in a Canadian Mining Innovation Council (CMIC) working group on continuous mining. “Once you’re continuous, now you’re getting into a much simpler process that then is CMJ more amenable to automate.” FEBRUARY/MARCH 2019

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ELDORADO GOLD OPENING NEW LAMAQUE MINE IN VAL-D’OR, QUEBEC With four mines currently in production, gold and base metals producer Eldorado Gold is getting ready to add a fifth mine to its production portfolio. The Lamaque mine, located in Val-d’Or, Quebec, is on track to declare commercial production in the first quarter of 2019, with expected gold production of 100,000-110,000 ounces in 2019. “In the mix of our mines, Lamaque will be our second largest mine and be a very important contributor to value at Eldorado,” George Burns, President and CEO of Eldorado Gold, said in an interview. “And it’s got probably the most exciting exploration potential in terms of the ability to extend mine life and increase reserves.” Eldorado acquired the Lamaque project in July 2017. “The acquisition is Eldorado’s first Canadian project,” explains Burns. “Quebec, specifically Val-d’Or, understands, lives and breathes mining, so it was an excellent place for us to invest.” Since the acquisition, Eldorado has drilled over 150,000 metres, largely completed refurbishment of the historic Sigma Mill, and advanced 14,000 metres of underground development at the newly discovered Triangle deposit. As a result of excellent infrastructure and a dedicated team, Eldorado has been successful in bringing the project into commissioning in a short 18 month period. In 2018, 225 new jobs were created in the region, expanding the Lamaque team to over 500. “Our primary resource is our employees,” said Sylvain Lehoux, General Manager of Eldorado

Gold Lamaque. “We have built a driven team focused on reaching our objectives. It is this spirit and tenacity that has helped us achieve our goals, and keep Lamaque on track for anticipated commercial production in the first quarter of 2019.” The Triangle deposit is the focus of Lamaque’s mine plan. It has a current reserve base of about 950,000 ounces. Other identified exploration targets in the immediate vicinity to Triangle are Plug 4 and Parallel, which have a resource base of 120,000 ounces and 200,000 ounces respectively. On exploration potential, Burns says, “In addition to extending the deep potential on the Triangle deposit, we are also investigating Parallel and Plug 4 in an effort to expand those into additional reserves for production growth. Beyond that, we believe there is great potential to have new discoveries on this property package.” With a track record of operating responsibly across all of its global assets, Eldorado understands the importance of operating to the highest health, safety and environmental standards and working with communities to leave behind a positive lasting legacy beyond the life of mine. “Everybody is focused on making this a successful operation that we can be proud of at Lamaque, at Eldorado, and in the Val-d’Or community,” Burns says. “We have a fantastic business plan, a good ore body and a great group of people that are going to create a lot of value for the local community and for Eldorado shareholders.”

LAMAQUE: THE NEXT GOLD MINE IN QUEBEC Eldorado is proud to be commissioning the Lamaque mine in Val-d’Or, Quebec. First gold was poured in December 2018 and commercial production is expected in Q1 2019. Eldorado is a leading intermediate gold and base metals producer with a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with the communities where it operates. eldoradogold.com eldoradogoldlamaque.com TSX: ELD | NYSE: EGO

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www.canadianminingjournal.com

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SUDBURY INNOVATION CLUSTER

The global mining industry’s ‘technology adoption’ problem By Don Duval

he global mining industry has embarked on a remarkable innovation and technology transformation journey – driven in part by unprecedented pressure for executives to enhance shareholder value, improve productivity and safety, and expand asset utilization. As this unfolds, Norcat has had an unrivalled opportunity to watch and learn. From our Sudbury, Ont., technology innovation cluster, we have seen mining companies, as well as mining technology and innovation ecosystems, work together to achieve these goals and ultimately drive sustained prosperity for the industry. We run the only regional innovation centre in the world with an operating mine. Our Underground Centre enables start-ups, small-to medium-size entities (SMEs), and international companies to develop, test, and showcase new technologies in an actual mining environment. This one-of-a-kind active laboratory creates, connects, and brokers relationships between mining tech firms (builders of innovation) and global mining companies (buyers of innovation). As such, it fosters a tech ecosystem like no other in the world. Given our privileged perspective, we offer these meaningful and bold insights to help mining executives overcome the innovation adoption hurdle. The innovation adoption hurdle What’s the problem plaguing the industry? Is it innovation? No. Global mining does not have an innovation problem. It has what loosely can be defined as a “technology adoption” problem. By participating in discussions and innovation workshops with mining executives, we contend that companies realize the importance of innovation. However, they struggle with knowing how to deploy, use, and integrate innovation to achieve their strategic priorities. A great example relates to the perceived lack of data within the operation of an average mining company. Mining companies don’t have a data problem. Instead, they have a data utilization problem. What’s more, solving it doesn’t necessarily require an emerging “home run/big data” technology. Perhaps refining internal processes and using a technology that scores a single or a double could resolve the issue. The barriers fall into three buckets The continued expansion of Norcat’s Underground Centre is based on feedback from both mining technology companies FEBRUARY/MARCH 2019

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The ongoing divestiture of in-house R&D within mining companies creates vibrant mining supply, service, and technology clusters like ours in Sudbury. Innovation in the global mining industry is thriving; however, it continues to evolve and look different from what many may have anticipated.

and mining companies. We asked them the same question: “What are the main barriers precluding emerging technologies from being adopted by the global mining industry?” Among the varied answers, there were three key action themes from both the buyers and builders of innovation: Before mining companies invest or make a “buy” decision to implement a new technology, they want to see it, touch it, and validate that it works. Plus, they want to observe it in an operating mine environment – not on paper, not in an academic lab, not in someone’s garage.

1 Try before you buy:

Mining executives want surety that the life expectancy of the technology company they are buying from is healthy enough to deliver ongoing service and support over the life of the deployed technology. Does the vendor appear reliable and have the potential to be there for the long haul? These are critical factors.

2 Vet the vendor:

Perhaps more relevant to the start-up and SME mining tech ecosystem is a foundational item that applies to all. Mining companies are increasingly seeking a meaningful partnership with their technology providers – both in the development and deployment of technology solutions. Norcat’s Underground Centre is a global one-stop shop for all that is the future of mining tech and has become “the place” to facilitate these relationships and support business getting done.

3 Innovation is a team sport:

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A demonstration of Hard-Line Solutions’ teleremote technology at Norcat’s underground test mine. CREDIT: NORCAT

Take a deep breath At the 2018 Mines and Technology conference in Toronto, a brewing observation was further validated: many mining companies continue to get caught up in the innovation excitement bandwagon without defining a clear strategy, vision, and roadmap. Discussions around artificial intelligence, big data analytics, digitization, autonomous robotics, creating in-house convergence/collaboration spaces, among countless other topics, while fun and exciting, need to be tempered. What’s the remedy? Pause, slow down, and fix things before jumping on the tempting innovation train. As an example, for those with plans to implement AI in the coming year, bear in mind that an October 2018 Gartner report identified “through 2020, 80% of AI projects will remain alchemy, run by wizards whose talents won’t scale widely in the organization.” Make sure the bus is going in the right direction with the right people on board in the right seats, before pushing too hard to catch the wave. Learn from the experience of others The ongoing divesture of in-house R&D within mining companies creates vibrant mining supply, service, and technology clusters like ours in Sudbury. Innovation in the global mining industry is thriving; however, it continues to evolve and look different from what many may have anticipated. That said, 52 | CANADIAN

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although this outsourced model has been spurring innovation, there still is a lot of creative capacity in the mining technology innovation ecosystem. To completely grasp this, I would encourage mining executives to look at and learn from the innovation journey experienced in other sectors such as life sciences, financial services, and consumer goods. Although these industries have no direct connection to mining, they have undergone an innovation transformation that the mining industry is just starting to embark upon. As a case in point, beyond the physical technologies, we see an increase in executives expecting more financial, service, and delivery model innovation from mining tech suppliers. At the 2018 North American Mine Expo, an ad hoc discussion with a handful of mining officials asked, “Why not apply SAAS business model principles to physical technologies under consideration from capital-constrained mining companies?” Good question. As Einstein famously said, “We cannot solve our problems with the same thinking we used when we created them.” How does this apply to mining? Sometimes, and this time in particular in innovation adoption, it makes sense to stop, fully assess the issues along the path and apply that learning to make great leaps forward. CMJ DON DUVAL is the CEO of NORCAT.

www.canadianminingjournal.com

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TECHNOLOGY

SMR IDEA

gets a reaction from miners Image: Natali Mis; iStockimages.com

Small modular nuclear reactors could soon be available to mine sites

mall modular nuclear reactors (SMRs) aren’t new technology, but until now, they have been confined to military uses – nuclear subs and ice breakers. New advances in the technology, however, could soon make them a via-

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ble option to power remote locations, including mining operations. Those advances caught the attention of Diane Cameron, director of the nuclear energy division at Natural Resources Canada about five years ago. “It was clear to me over the course of

the last several years that a certain number of key breakthroughs were being made and a certain momentum globally was starting to form around the real possibility of near-term deployment of small modular reactors,” Cameron said in an CONTINUED ON PAGE 54

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TECHNOLOGY

interview in January. After conversations with stakeholders in the nuclear industry and her counterparts internationally, Cameron realized that Canada was uniquely well placed to lead the SMR space – if it wanted to. “In recognition of that and at the request of a number of stakeholders who came forward and said hey, this is a real opportunity for Canada and there’s a role for the federal government to play, we decided the time is right, we need to do our homework. This is all very new, we have a lot of questions, so let’s bring together a dialogue.” NRCan invited interested parties – both provincial and territorial governments as well as Canadian power utilities – to participate, and over the course of eight months in 2018, produced an SMR roadmap addressing key questions. A key finding of that work was that SMRs are real, with Russia already operating one, and other countries building or preparing to build prototypes. The report also found that Canada does have competitive advantages, including top-notch nuclear labs and R&D, and a regulator that can handle advances in technology such as SMRs. “The international race is on and there will be significant first mover advantage,” Cameron said. Mining connection So where does mining come in? SMRs at this stage don’t even exist at the prototype stage – at least not in Canada. To get there, the nuclear industry needs clients. Heavy industry – both the oil and gas and mining sectors –have been identified as potential markets for the technology. Because of its reliance on expensive diesel fuel at remote operations, the mining sector would be a natural first client, Cameron says, as opposed to oilsands operators, which have access to cheaper natural gas.

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While miners were “cautiously interested” in the SMR idea in the year leading up to the release of the roadmap last fall, they wanted more information. “In successive order, I would say the questions that we get from mining stakeholders are: when are these things going to be available? How much are they going to cost? And how do we deal with or build public confidence?” Cameron says. Miners are more enthusiastic now that many of their initial questions have been answered in the SMR roadmap. “When the roadmap was completed and published on the website in the first week of November, I had within one

Advances in safety have been key to the viability of SMRs. The new designs all include ‘inherent’ or passive safety features instead of active safety features, which rely on action from a person. week about 20 different mining stakeholders – a combination of associations and companies emailing and calling me to say, ‘OK, we’re ready to talk.’” In addition to industry consultations, workshops have been held in communities in the North, New Brunswick, Ontario, Saskatchewan and Alberta, including Indigenous communities. Three markets SMR refers to any nuclear reactor that

generates less than 300 MW of electricity. But NRCan and the nuclear industry envision three size classes for three distinct markets. The smallest SMRs would be designed for remote communities that now rely on diesel. (There are 200 of these communities in Canada. Some have expressed interest in SMRs, while others may not be interested, Cameron says.) The largest, about 150-300 MW would be for provinces and territories, with some governments looking to SMRs as a greenhouse gas emissions-free replacement for coal energy. Heavy industry would use a mid-size of SMR – between 10 and 80 MW. Designs in this category could be modular, and also mobile, so they can be moved when they are no longer needed. Refuelling, which might need to be done after 20 years could be done simply, by bringing a new fuel cylinder to site, or by taking the SMR offsite. Advances in safety have been key to the viability of SMRs. The new designs all include inherent or passive safety features instead of active safety features, which rely on action from a person. “What some of the SMRs do is flip that on its head – so you have to do something to keep the reaction going and if something goes wrong, literally hands off, and the laws of physics drive it to zero. So they automatically shut themselves down,” Cameron explains. “This is clearly something the market wants – if you can’t show me that this thing is going to shut itself off at the first sign of something going wrong, an earthquake or whatever – then I’m not interested.” Although there’s no reason why a mining company could not decide to become an owner-operator of a nuclear reactor, the most likely business model is that a miner would buy combined heat and power and high-quality steam from a nuclear operator, Cameron says. OPG, Bruce Power and New Bruns-

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designs for SMRs. Waste from the reactors would be stored in the Deep Geological Repository for Nuclear Waste, when a site for the repository is chosen. (Four communities are still in the running for the repository, down from 26 that originally applied.) Economics The main reason mining companies are open to SMRs is economics. “What I think we’re looking at is a huge, huge change in the mining industry in terms of the cost of electricity in the North,” says Vic Pakalnis, CEO of Mining Innovation Rehabilitation and Applied Research Corp. (Mirarco). Pakalnis, an early proponent of the use of SMRs in mining, says they could cut the cost of energy for mines in half – or even more for Arctic sites. “The savings would be material,” he says. “You could open up more mining projects to development because electricity costs are one of our big problems in mining.” Mirarco announced last year that Bruce Power had agreed to provide $1 million over five years to fund a new position at the organization, and in December, Laurentian University professor Francois Caron was named as the Bruce Power Chair in Sustainable Energy Systems. One of Caron’s duties will be to examine the potential for SMRs in rural and remote regions, including mine sites. “Mining companies are very, very positive on the idea, but most of them don’t want to be the first,” Pakalnis concedes. Social licence For the mining sector to say yes to SMRs, one or more designs will need to be tested at a federal lab and run for about five years to develop a track record. Canadian Nuclear Laboratories is aiming to demonstrate at least one prototype by 2026.

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Currently, there are about 150 SMR designs around the world. In Canada, about a dozen have started pre-licencing engagement with the regulator and four or five are more advanced with detailed applications that have been submitted for serious consideration. Winning designs will have to be approved by the Canadian Nuclear Safety Commission (CNSC), be demonstrated at Canadian Nuclear Labs; and lastly, will need to have a nuclear operator that wants to build and operate the design. In terms of earning a social licence to use SMRs in mining, miners have indi-

pathways to build the public confidence that you need for deployment to a mining site is achievable in that five-year window.” Of course, the first SMR sites would be chosen carefully, where communities are more comfortable with the technology and nuclear energy in general. “In mining, as with nuclear, the end game is not some kind of national consensus where every Canadian is pro,” Cameron says. “It’s about community level engagement. It’s about the economics and the culture and the values community by community, project by CMJ project.” For more information on SMRs, see https://smrroadmap.ca.

What I think we’re looking at is a huge change in the mining industry in terms of the cost of electricity in the North.

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cated it would take about five years to get a sufficient track record in order to deploy at Canadian mine sites, to build the information base about SMRs and to socialize the issue with their employees and with the surrounding communities at their sites. In many cases, mining companies already have the relationships established to do this work, says Cameron, who is planning further outreach to miners this year through the Prospectors and Developers Association of Canada convention, CIM and other trade shows. “I think that the mechanisms and the

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CANADIAN MINING JOURNAL |

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CANADA IN THE GLOBAL SPOTLIGHT AT

TRADE SHOW

BAUMA 2019

he Bauma trade fair, held every three years, is the world’s largest construction and mining equipment show, with the last exhibition in 2016 drawing nearly 600,000 visitors to Munich over seven days. This year’s show, held Apr. 8-14, is expected to be even bigger. That could be a good thing for the official partner country of bauma 2019 – Canada. While the Canadian presence at the show is dwarfed by exhibitors and delegates from the European Union – there were only 1,580 Canadian visitors in 2016 – the organizer is hoping to increase those numbers this year. Canada was chosen as a partner country because it is the sev56 | CANADIAN

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enth largest market for the construction industry and among the top five producing countries for almost all mineral resources. Klaus Dittrich, chairman of organizer Messe Munchen, says that with the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) coming into effect, there’s a stronger incentive for Canadians to attend. “Strong free trade is a basic requirement for good business. CETA, the free trade agreement between the EU and Canada, will lend fresh impetus to bilateral trade. This is why we want to use Bauma 2019 and the opportunities afforded by the partner country concept to bind our industries even closer together,” Dittrich said in an emailed response to questions. www.canadianminingjournal.com

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Left: Overhead view of the open air area of Bauma 2016. CREDIT: MESSE MUNCHEN/DARREN JACKLIN

Massive trade show presents opportunity for Canadian mining supply companies

CETA will lend fresh impetus to bilateral trade. This is why we want to use bauma 2019 and the opportunities afforded by the partner country concept to bind our industries even closer together. – KLAUS DITTRICH, CHAIRMAN OF MESSE MUNCHEN

At bauma 2016, nearly 139,000 visitors – or 24% – were from the mining sector. About 20% of the trade show’s exhibitors serve the mining industry. This year, the organizers expect 39 Canadian exhibitors, 14 of them organized in a joint booth in the mining hall (hall C2), one of 18 halls that together total 614,000 sq. metres of exhibition space. As partner country at the 32nd edition of Bauma, Canada will enjoy special exposure. “Visitors of bauma 2019 will gain a deeper insight into the Canadian market,” Dittrich said. “With our supporting program, they will get information on current projects in the FEBRUARY/MARCH 2019

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construction and mining sector in one of the most important commodity-producing countries. In the Canada Visitor Lounge, visitors can meet top investors and companies from Canada and at the Canadian Pavilion they will gain an overview about business and investment opportunities. Current construction and mining projects will be presented at the bauma Forum, also a perfect place for networking.” One of the top trends to note at this year’s show is the ongoing digitalization of the construction and mining industries, which will also be reflected in onsite experiences. “At Bauma 2019, visitors will be able to experience the digital construction site with the help of virtual and augmented reality – for example, at our VR Experience at Hall B0,” Dittrich said. “For the first time, companies can even present themselves completely digitally. The VR Experience is not only a special happening, it also offers a high level of added value for everyday business. “Completely new opportunities are available in the areas of planning and development, but also for training, advanced training, and sales. Anyone wanting to train their apprentices under realistic conditions – in machine maintenance, for example – or looking to explain the inner workings of a crane to the customer, no longer has to even leave the site.” CMJ For more information, see https://www.bauma.de/index-2.html. CANADIAN MINING JOURNAL |

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REPORT ON DRILLING

A CAT MD6250 rotary blastholle drill operating autonomously. CREDIT: CATERPILLAR

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THE CASE FOR BLASTHOLE DRILL AUTOMATION By Jim Peterson

aterial fragmentation has compounding effects on mining costs and productivity. Drilling and blasting results impact loading, hauling and crushing and play a significant role in the success of the total mining system. At the start of the mining cycle, where the rock mass is drilled and blasted, the degree of fragmentation and the muck pile configuration are determined, as are the effects on cost and productivity of all subsequent operations. Consider the cost of managing oversize material â&#x20AC;&#x201C; including secondary handling, overloading, reduced diggability, higher load factors, extra pass loading, increased machine wear and reduced throughput rates.

Also consider how improper bench slopes and uneven floors slow loading and hauling. When we automate the drill, we can lower the variability in drilling so that the mine receives quality holes that match the designed drill-and-blast patterns. Additionally, with automation and on-board communications, we can off-load key data that can be used to track formation variations in real-time â&#x20AC;&#x201C; enabling mine managers to take actions that mitigate potential risks to the production schedule. For example: n Make adjustments to the drill pattern (spacing, burden, hole depth, hole angle) CONTINUED ON PAGE 60

A Caterpillar drill equipped for semi-autonomous operation. CREDIT: CATERPILLAR

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REPORT ON DRILLING

base machine automation functions and Terrain guidance to achieve the consistency of autonomous operation. The system enables an operator onboard the drill to select a row of holes and complete the entire drilling cycle automatically with the operator being the safety monitor. The communication network is the same as that required for Terrain for drilling.

Make adjustments to the blasting mix (powder factor, timing, stemming material used) n Make adjustments to the downstream load-and-haul operation and/or processing plan The drill automation journey is one that can be taken in incremental steps. n

Building blocks matched to needs Cat drill automation technologies are laid out in a building block Semi-autonomous drill operation, managed from a tablet computer. approach to allow mines to enter CREDIT: CATERPILLAR No operator aboard at different levels depending on The fourth building block removes specific site needs. The building the operator from the cab of the block approach also enables upgrading the machine and operates the drill semi-aulevel of automation in the field as mine tonomously. This system has several needs change. on-board safety systems, virtual geo-fences The journey typically starts with the and definable working parameters that can base drill auto-functions. Cat drills offer be set up for a work site. The drill autonan advanced auto-controls package, which omously completes a single row at a time. includes auto leveling/auto levelling jack This level of autonomy is intended to retract, auto mast raise and lock/auto allow one operator to control multiple unlock and lower mast, plus single-pass machines with a recommendation of three auto drilling to include the entire drilling as optimum. The operator sets the rig up cycle from collaring the hole and working to a row of holes, launches autonomy, through changing ground conditions, to monitors the autonomous machines via drilling down to exact depth and a retract a tablet computer, and interacts with the and swab cycle – all programmable to machines only to perform any exception adapt to the ground conditions and applimanagement, such as shutting down a rig cation requirements. for refueling. The next layer is outfitting the machine Adding a remote operator station to with Cat Terrain for drilling, which enables this semi-autonomous solution enables an high precision guidance and a back-office operator to do all the exception handling package used to create and upload virtual drill patterns to the while off the pattern, thus minimizing exposure to the elements onboard operator. The system also sends information back to and health and safety risks. the Terrain office where software generates reports on drill proSemi-autonomous operation is the last building block before ductivity and utilization and tracks consumables usage. entering into full autonomy, which automates both drilling and Terrain uses high precision global navigation satellite sys- tramming. The full-scale autonomous solution can vary by site tems to locate the machine over the hole. The system takes since each site has different objectives. The solution requires a into account the orientation of the drill string in relation to the thorough analysis of the safety system, highly reliable network designed drill pattern to ensure the rig “touches” centre mass infrastructure and additional on-board hardware. There is sigof the hole target with the bit, regardless of mast angle – out nificant change to be managed in migrating from a manned to 30° for angle drilling. It also monitors machine pitch and operation to a fully autonomous system. Operators will be able roll while on tracks, and it calculates trajectory of the bit when to monitor multiple machines from the remote operator station the machine is leveled. This ensures the machine can position or from a non-line-of-sight control centre. Operators can take over-the-hole perfectly without having to lower back to tracks manual control of the machine if any exceptions occur. and make minor adjustments. Terrain also controls hole depth Use precision, automated guidance to drill to plan for a more to effectively reduce over- and under-drilling, even on rough even, efficient blast and reduced costs downstream. And conground. sider semi-autonomous and autonomous functions to enhance Once Terrain is installed, the drill can be equipped with the safety and improve consistency and drill utilization. CMJ next level of automation, Operator Mission Assist, part of Cat Command for drilling. Operator Mission Assist leverages the Jim Peterson is Mining Technologies Applications Specialist, Caterpillar.

Semi-autonomous is the last building block before entering into full autonomy, which automates both drilling and tramming.

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