Canadian Mining Journal February/March 2022 by The Northern Miner Group

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RING OF FIRE UPDATE, NEW MINES AND MORE

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FEBRUARY/MARCH 2022 VOL. 143, NO.2

FEATURES 16 CMJ interviews the authors of a new book on how the resource sector can build trust with Indigenous communities.

MINING WORKFORCE 19 A study by Osler finds that miners are still laggards when it comes to diversity in leadership.

22 Costmine parses data on how the “Great Resignation” has affected mining wages.

24 How the pandemic has changed the recruiting game for miners.

ONTARIO 26 Ontario Mining Association president Chris Hodgson discusses the

findings of a new report outlining the importance of Ontario’s critical minerals to the economy and decarbonization.

28 Electra Battery Materials takes aim at the North American EV market, starting with plans to produce cobalt sulphate by year-end.

31 A look at new mines being built in the province, plus recent M&A deals.

36 First Nations in the Ring of Fire are divided on infrastructure in the remote region – and the mining development it would attract.

39 Why northern Ontario remains ‘mining central.’

DEPARTMENTS

4 EDITORIAL | Miners stand on shifting ground as Indigenous groups assert their power. 6 CSR & MINING | In the last of a three-part series on the CommWell Framework to improve well-being in mining-impacted communities, Carolyn Burns of the Devonshire Initiative discusses how to implement the process. 8 LAW | Sharon Singh and Serge Dupont of Bennett Jones identify three mining trends to watch for in 2022: ESG, water and reconciliation.

10 UNEARTHING TRENDS | Iain Thompson and Callum Stewart of EY discuss how miners can realize value in the face of record-high inflation. 12 FAST NEWS | Updates from across the mining ecosystem. 44 ON THE MOVE | Tracking executive, management and board changes in Canada’s mining sector.

www.canadianminingjournal.com FEBRUARY/MARCH 2022

36 About the cover: First Nation community members in Ontario’s Ring of Fire playing an active role in helping discover the metals needed to decarbonize the global economy. CREDIT: NORONT RESOURCES

Coming in April 2022 Canadian Mining Journal looks at battery metals, BEVs and the electric mine, plus a feature report on ESG.

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 https://www.canadianminingjournal.com/digital-edition/

CANADIAN MINING JOURNAL | 3

FROM THE EDITOR FEBRUARY/MARCH 2022 Vol. 143 – No. 2

Alisha Hiyate

Miners stand on shifting ground as Indigenous groups assert their power

ince I started my career in journalism over 15 years ago at Canadian Mining Journal’s sister publication, The Northern Miner, the conversation around Aboriginal rights and mining has changed enormously. Back in the mid-to-late aughts, conflicts between Indigenous communities and the mining sector centred on the duty to consult and the failure of government and industry to fulfill that duty. Since then, Aboriginal rights have been confirmed in the courts again and again. And with more guidance on consultation provided by provincial governments, and more recently, the federal government’s commitment to implement UNDRIP (the United Nations Declaration on the Rights of Indigenous Peoples) into Canadian law, the conversation is now around higher-level participation – including the demand from some communities for Indigenous-led assessment processes. There have been several Indigenous-led environmental assessments in British Columbia. The outcomes so far have been both positive and negative for industry. The one mining project that was subject to an Indigenous-led review, KGHM Polska Miedz’s Ajax copper-gold project, near Kamloops, was rejected in 2017 by the Stk’emlupsemc te Secwépemc Nation (SSN), citing its location in an area the SSN considered sacred. Provincial and federal reviews of the project echoed that decision, rejecting the project. In Ontario, expectations for Indigenous co-leadership of a regional impact assessment of the Ring of Fire could derail the process, which is slated to begin this year (see page 36). The power shift towards Indigenous communities is certainly being felt by the mining industry, which has valid concerns about potentially longer project timelines and greater expenses. A new book, Weaving Two Worlds: Economic Reconciliation Between Indigenous Peoples and the Resource Sector, has been released at the perfect time then for an industry that prizes certainty and is unsure of how to proceed. An engaging and accessible read, Weaving Two Worlds encourages industry to move from being adversaries of Indigenous communities to allies, providing guidance and insights based on the authors’ years of experience in the resource sector, and their different perspectives as Indigenous and non-Indigenous people. I encourage readers to pick up a copy (www.weavingtwoworlds.com). For a preview, please check out our interview with the authors, Christy Smith and Mike McPhie, who also touch on the trend of Indigenous-led environmental assessments (see page 16). And on a personal note, this will be my last issue of CMJ after five years at the helm. In March, I will be taking the position of Editor-in-Chief of The Northern Miner, leaving CMJ in the very capable hands of our Interim Editor Marilyn Scales. Before I go, I’d like to thank the entire small but dedicated team at CMJ for an amazing five years. The magazine is celebrating its 140th anniversary this year and its longevity is no accident. It’s been a pleasure and a privilege to work with you, and to continually raise our own standards in reflection of the mining community we serve. To our readers, contributors and contacts across the industry, thank you for your support and your feedback over the years. Please feel free to keep in touch with me at ahiyate@northernminer.com. CMJ

4 | CANADIAN MINING JOURNAL

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Editor-in-Chief Alisha Hiyate 416-510-6742 ahiyate@canadianminingjournal.com Twitter: @Cdn_Mining_Jrnl Interim News Editor Marilyn Scales mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Advisory Board David Brown (Golder Associates) Michael Fox (Indigenous Community Engagement) Scott Hayne (Redpath Canada) Gary Poxleitner (SRK) Manager of Product Distribution Allison Mein 403-209-3515 amein@glacierrig.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales, Western Canada George Agelopoulos 416-510-5104 gagelopoulos@northernminer.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-888-502-3456 ext 3 President, The Northern Miner Group 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 Glacier Resource Innovation Group (GRIG). GRIG is located at 225 Duncan Mill Rd., Ste. 320, Toronto, ON, M3B 3K9. Phone (416) 510-6891. Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Robert Seagraves at 416-510-6891. Subscriptions – Canada: $51.95 per year; $81.50 for two years. USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST registration # 809744071RT001. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-888-502-3456 ext 3; E-mail: amein@glacierrig.com Mail to: Allison Mein, 225 Duncan Mill Rd., Ste 320, Toronto, ON M3B 3K9 We acknowledge the financial support of the Government of Canada.

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CSR & MINING

The CommWell Framework in practice: How to implement to measure community well-being By Carolyn Burns

he Community Well-Being and Mining Framework (CommWell Framework) is a participatory process for discussing, defining, measuring and analyzing community well-being. The data, dialogue and decisions about community well-being generated by the framework act as a catalyst for various stakeholders to plan and coordinate community development initiatives in the mining context. This article is the last in a three-part series about the framework available at www.canadianminingjournal.com. The first two parts provide an overall summary of the framework and a look at the benefits of using this approach. This part provides more details on the process and how to implement the framework. (For a detailed guidance note that covers the various steps to implementing the CommWell Framework, visit www. DevonshireInitiative.org.) The CommWell Framework is designed to be a flexible process that focuses on community participation. The framework has four main phases with an initial phase 0 for planning and getting organized.

Phase 1. Establishing dialogue and governance

Phase 0. Pre-planning and analysis phase

Phase 2. Co-create indicators

This type of initiative requires an initial person (or organization) to champion it and introduce the concept to the different stakeholder groups that will be included in other phases. (These should include community representatives, civil society organizations, other companies working in the area, and local and regional governments.) This person is called the “Broker.” The Broker identifies the various organizations that could be included and finds a catalyst for the framework. A catalyst could be a regional planning process, a new development program, an environmental social impact assessment (ESIA) or simply the desire for better data, dialogue and decisions about community well-being. You don’t want to reinvent the wheel, so make sure to consider building off current initiatives or forums. The Broker should map out the various relationships and dynamics between stakeholders and how economic, social and environmental data is currently collected. The Broker could do this alone, but it’s always a great opportunity to start building collaboration with other groups. A great example of this is in West Africa where, two Canadian NGOs, World University Service of Canada (WUSC) and the Centre for International Studies and Cooperation (CECI), have been working with local communities in three regions of Burkina Faso, Ghana and Guinea impacted by extractive industries. The NGOs (the brokers) saw an opportunity to pilot CommWell as part of a much bigger development initiative that acted as the catalyst (WAGES).

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In this phase, the Broker sets up a forum for different groups to get involved in the CommWell process. This includes introducing the initiative to various stakeholders and establishing a governance and dialogue system which might include a steering committee. Stakeholders should include groups from various sectors including non-profit organizations, companies working in the region, governments and community groups. The people who represent these stakeholders should also be diverse, including men and women, youth and elders, people from various religions and ethnicities (for example). A wide variety of people and stakeholders will bring important perspectives to the planning phase and make sure that the framework is a meaningful forum for building relationships and tracking well-being. This may also be the appropriate time to bring in a third-party ‘implementer’ to help facilitate the process. The most important thing to remember in this phase is that communication and transparency are key to building openness and alignment.

Now it’s time to collectively determine what the CommWell Framework is going to measure, specifically which indicators will be used in the data collection process. To do this, the ‘implementer’ needs to design and facilitate community dialogue sessions. The trick is to encourage participants to think about holistic well-being in the long term, not only immediate benefits and impacts. After those sessions, the results can be translated into actual indicator lists which can then be validated with stakeholders. These indicators could align with a specific vision of the community, the Sustainable Development Goals (SDG) and/or various impacts identified in the project ESIA. They can also be a great opportunity to encourage cumulative assessments of well-being. (You can find a sample list of indicators at www.devonshireinitiative.org.)

Phase 3. Data collection

This phase is where the rubber hits the road and data is collected. Data collection can happen semi-annually or annually and take place over many years. Data collection should be disaggregated by sex, race, ethnicity, age, etc. to ensure that the initiative can drive diverse policy and program decisions. During the collection phase, it’s important to consider aligning with other initiatives such as census, stakeholder perception surveys or grassroots studies. This is because you don’t want to waste resources or contribute to stakeholder fatigue. It is

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also important to provide regular updates to all stakeholders and ensure data collection and management is understood and agreed to by stakeholders. In communities near the Tasiast mine in Mauritania, Kinross Gold has conducted detailed socioeconomic and perception surveys every three to five years with independent experts. The surveys cover a wide range of social, economic, and environmental metrics, including metrics from CommWell version 1.0. The company was able to align the data with relevant SDG sub-goals which made it easier to communicate with a broader audience. Data related to SDG 1 reveals that poverty levels in the local community, measured by daily expenditure per capita, have declined from 28% in 2011 to 6% in 2017. This shows progress related to SDG target 1.2: reducing the proportion of people living in poverty by at least 50% by 2030.

Phase 4. Results and data

In Phase 4, the data is analyzed and reported to the framework participants and other relevant stakeholders. Again, transparency and clarity is key to ensure that everyone trusts the results. It’s also important WetDrumAd.qxp_Layout 1 8/20/20 3:37that PM the Pagedata 1 doesn’t ‘collect dust.’

Stakeholders need to use the data to inform decision making and planning related to community well-being. To do this, a good facilitator needs to help identify the main findings and provide context for the users. This was done effectively as part of the WAGES project in Ghana where a multi-stakeholder working group oversaw the implementation of the CommWell Framework. A mining company and the regional government where able to align their development work with the communities’ priorities based on the indicators and definition of well-being that came out of the framework discussion. This led to the construction of a community market, the revival of communal labour, the construction of gutters, and access to loans for some female traders. CMJ CAROLYN BURNS is executive director of the Devonshire Initiative, a multi-stakeholder forum focused on improving development outcomes in the mining context. To learn more about the CommWell Framework, visit www.devonshireinitiative.org and check out the Guidance Notes. The notes are not meant to be a blueprint, but to provide some parameters for how the framework can be implemented and ultimately owned by community stakeholders.

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CANADIAN MINING JOURNAL | 7

LAW

Three mining trends to watch for in 2022 By Sharon Singh and Serge Dupont

Warning: This article references ESG but there is substance; continue reading.

he intensifying focus on Environmental Social and Governance (ESG) factors will underpin the acceleration of three interconnected trends for the Canadian mining industry in 2022: > Capitalizing on an ESG narrative and opportunity > Water use and innovation > Canada’s regulatory framework and reconciliation These trends are not emerging; rather the legal and policy developments in these areas are rapidly increasing.

Capitalizing on an ESG narrative and opportunity

The Canadian mining ESG narrative and opportunity is at least two-fold: (1) the global transition to a lower-carbon future requires the metals and minerals it can produce; (2) Canada can produce and manufacture these metals and minerals sustainably – and with one of the lowest carbon footprints in the world. Although this narrative has been touted by the industry for some time, it is increasingly being absorbed into the mainstream policy discourse, which optimistically may be an impetus for policy action in support of mining investment. The public increasingly is “getting” how Canadian minerals are critical inputs for everyday products, for example: cobalt, lithium, copper, and nickel for electric vehicles, and tin, tantalum, tungsten, and gold for their iPhone. A strong commitment to ESG measurement and performance will strengthen the brand of the Canadian mining industry. Utilizing ESG standards, frameworks, and ratings is not new to this industry. For example, the Mining Association of Canada’s Towards Sustainable Mining (TSM) program established in 2004 addresses the environmental and social pillars to help ensure that Canadian miners are producing in the most responsible manner. A concerted effort has been made by the industry to have TSM and similar standards adopted and recognized by other jurisdictions. The strong leadership and performance of the Canadian mining industry in ESG-related metrics constitutes a competitive advantage that may be realized, for example, by becoming a preferred supply partner.

Water use and innovation

Mining’s use of, and impacts to, water are well known. However, there is an increasing government focus on rejuvenating water conservation and watershed management, including through significant regulatory proposals such as establish-

8 | CANADIAN MINING JOURNAL

ing a Canada Water Agency, the proposed Coal Mining Effluent Regulations, provincial initiatives to develop watershed security strategies and selenium management. British Columbia, for example, has prepared a discussion paper on developing and implementing a Watershed Security Strategy and Fund, which includes as target outcomes the development of watershed governance and approaches, resetting the water supply and demand relationship, and related collaboration with Indigenous peoples in line with the government’s commitment to the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). A draft Watershed Security Strategy is expected to be released in fall 2022. Implementation of the strategy will have significant implications for land use and water use planning, and therefore the mining industry. Miners in turn have been focused on water stewardship, and research and development (e.g. decreasing water use and wastewater treatment reuse) as both regulatory constraints and public expectations to go beyond legal compliance increase.

Canada’s regulatory framework and reconciliation

The federal mandate letters issued by the Prime Minister to his ministers in December 2021 foreshadow that the pace of significant regulatory and policy change will continue. These changes will have significant implications for both project development and operations, as well as investments into the industry. Along with the ongoing work to implement UNDRIP, development of a National Benefits Sharing Framework, further Crown and First Nation co-management, and collaborative decision-making will see significant changes to how decisions are made and regulatory conditions applying to the mining industry. The shift from Indigenous engagement to joint decision-making is accelerating. As the federal government attempts to launch its Canadian Critical Minerals Strategy to supply the green and digitized economy, improve supply chain resiliency, and position Canada as the leading mining nation – getting mines developed in a timely and efficient manner will be a key success factor. This said, just because it is green does not mean the project will obtain Indigenous nation support, and just because it is supported by the Indigenous nation does not mean it will be supported by environmental NGOs. Success in permitting critical projects will require industry, governments, and Indigenous peoples to work together to align objectives and interests, and to achieve shared progress. CMJ SHARON SINGH is a partner with Bennett Jones based in Vancouver, and SERGE DUPONT is a senior advisor with Bennett Jones based in Ottawa.

www.canadianminingjournal.com

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UNEARTHING TRENDS

Lessons from the last supercycle to combat record-high inflation and realize value By Iain Thompson and Callum Stewart

ntering the new year, Canadians were met with a 30-year high inflation rate. Whether buying groceries, ordering new windows or refuelling the car, inflation continues to have a growing a ripple effect in every business, across every sector – including mining. Supply chain bottlenecks coupled with rising labour and fuel prices are leading to higher premiums on raw materials and driving up input costs. Steel alone was up 51% last year, greatly impacting ROI and expected expenditures for current or planned capital projects. To make matters worse, these challenges are met with the perfect storm as global economic recovery produces a rapid uptick in demand for commodities, pushing miners to produce more and grow investments across the board – particularly in those supporting the emerging energy transition. We’ve seen this before. In the mid-2010s, cost inflation ran rampant, with mining companies pulling the shorter straw on value realization. As a result, the sector didn’t benefit as much as the rest of the value chain, creating long-term restrictions on mining exploration, development and other capital projects. While the impact might be different – given demand is forecast to remain strong and inflation is likely to peak as some form of stability returns – the risk still exists that mining companies are left receiving less of the benefit than the rest of the value chain. Companies must realize the full value opportunity, while maintaining development and capital spend to support production that meets the sustained growth in demand that’s expected. Those that prosper can meaningfully change how they manage input costs and supply chain volatility (now and in the future), reduce their internal production costs through more diligent cost management, and strategically elevate specific cost drivers such as talent acquisition and retention. Here are three things mining companies can explore to mitigate risk and secure greater value this time around as costs and pricing fluctuates. Update supply chain strategies. By understanding inflationary risks both at a granular level and within specific procurement categories, companies can better develop mitigation approaches to safeguard against sustained or future systemic shocks. Organizations that develop robust and flexible supply chain strategies can reduce the risk of inflationary pressures and strategically optimize the value chain. Renegotiating agreements, where appropriate, so they more equitably reflect the current market and balance between supply and demand inflation will be key. This includes ensuring key categories across assets are clearly identified for strategic sourcing, moving high-risk spend categories under contract (if not already) and negotiating extended terms, and ensuring provisions for longer-term systemic risk (i.e., ESG) are negotiated.

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This is not only a value-add to stakeholders in the short-term, but will help to build long-term investor confidence and increase the value proposition for future growth. Conduct a detailed assessment of production-related costs to ensure a rigorous and complete understanding of end-to-end, operational cost drivers, and potential levers to control and address. Having a detailed understanding of cost drivers can provide greater visibility cross-functionally and allow the business to make better decisions. This will help to be more effective in managing costs internally, while also building the foundation for current and future cost discipline and optimization as a buffer against inflation. Creating a culture of cost accountability can help to guard against current inflationary input costs, and eventually deliver value in a lower inflation context. In practical terms, this means building cost models that: accurately reflect spend and budget performance, formalize controls and governance, introduce the operating elements required to support cost discipline and drive accountability in spending, and implement systems to ensure transparency of actual operating spend. Review attraction and retention strategies. The way key talent is attracted and retained needs to adjust rapidly if mining companies are to adequately manage the scarcity of available skills. A rigorous assessment of capability and capacity gaps or risks can help to prioritize focus areas and ensure further refinement of attraction and retention tactics in priority areas. This may include formalizing the assessment of employee value drivers and understanding how current policies miss the mark. Taking a proactive, strategic response to the labour shortage is key to securing the best possible skills while managing increasing labour costs. Developing creative strategies that address both market-related and emerging non-monetary employee value drivers through things like flexible work arrangements, new approaches to support fly-in/fly-out assignments, culture building initiatives or learning and development opportunities will be critical. As questions arise over how far prices will move amid supply chain bottlenecks and tightening labour markets, mining companies cannot afford to miss the value opportunities that come with it. Reviewing supply chains, conducting rigorous cost assessments and developing proactive attraction and retention strategies will all be critical to get the appropriate structures in place to combat inflation pressures while setting up the organization to secure long-term, sustainable value. CMJ IAIN THOMPSON is the Mining & Metals Consulting leader and CALLUM STEWART is Mining & Metals Supply and Operations Specialist at EY Canada. Visit www.ey.com/en_ca/mining-metals.

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FAST NEWS

Updates from across the mining ecosytem

• DECARBONIZATION |

Teck works with Caterpillar, MEDATech, on electrification

Caterpillar is working on a zero-emissions version of its 794 haul truck, to be deployed at Teck Resources’ operations. CREDIT: CATERPILLAR

eck Resources has announced an agreement with Caterpillar to work towards deploying 30 of Caterpillar’s zero-emissions large haul trucks at Teck mining operations starting in 2027. Decarbonizing Teck’s vehicle fleet represents a significant reduction in Scope 1 emissions as Teck works towards its goals to reduce the carbon intensity of its operations by 33% by 2030 and be a carbon-neutral operator by 2050. “Teck is already one of the world’s lowest carbon intensity producers of copper, zinc and steelmaking coal, and now we are taking further action to develop and implement the technology needed to reduce the carbon footprint of our operations and support global efforts to combat climate change,” said Don Lindsay, Teck’s president and CEO. “Decarbonizing our haul truck fleet is a critical step forward on our road to carbon neutrality and we are pleased to collaborate with Caterpillar to advance this work.” Together, the companies plan to progress through a multiphased approach that includes early development, piloting and deployment of 30 zero-emission vehicles, including Cat 794 ultra-class trucks beginning in 2027. Teck anticipates initially deploying zero-emissions trucks at its Elk Valley steelmaking coal operations in British Columbia. The operations are already powered by a 95% clean electricity grid, making it an ideal location to introduce one of Canada’s first zero-emissions large haul truck fleets, with options for trolley-assist technology.

Off-highway electrification

Teck also announced a plan with Collingwood-Ont.-based

12 | CANADIAN MINING JOURNAL

MEDATech’s ALTDRIVE-powered fifth-wheel Western Star truck. CREDIT: TECK RESOURCES.

MEDATech in February to pilot electric on-highway trucks at Highland Valley, marking the first use of a battery-electric truck to haul copper concentrate worldwide. The truck will travel between Teck’s Highland Valley Copper Operations (HVC) in south-central British Columbia and a rail loading facility in Ashcroft, B.C. This pilot of the MEDATech ALTDRIVE-powered fifth-wheel Western Star will help to advance Teck’s goal of displacing the equivalent of 1,000 internal combustion (ICE) vehicles by 2025. It will also provide valuable learnings for the electrification of Teck’s vehicle fleet on the path towards carbon neutrality. The pilot is expected to begin in summer 2022 and is projected to eliminate 418 tonnes of CO2 annually – the equivalent of approximately 90 passenger cars – for the first pilot vehicle, while also reducing costs through fuel savings and reduced maintenance. CMJ

www.canadianminingjournal.com

• ABORIGINAL BUSINESS |

Tahltan Nation signs distribution deal for Sandvik equipment

andvik and Tahltan Nation Development Corp. (TNDC) have entered into an agreement to establish TNDC as a reseller of Sandvik mining equipment, parts, tools, and digital solutions for northwestern British Columbia and the Yukon. Northwestern B.C. and Yukon’s mining industries have seen rapid growth and increased investment over the past several years and TNDC says it is focused on ensuring its participation and positioning the surrounding communities for sustainable economic activity. An Indigenous community-owned business, TNDC was established in 1985 to enable the Tahltan Nation to fully participate in the economic activities and development occurring within Tahltan Territory, which encompasses 11% of the province, includes parts of Yukon, and contains 70% of B.C.’s Golden Triangle. “TNDC is the perfect partner for Sandvik in this rapidly developing region,” says Sandvik Canada’s managing director Peter Corcoran. “Sandvik is committed to continuous improvement in the area of sustainability, which includes economic sustainability for the communities surrounding mining operations that Sandvik is involved in, and TNDC has demonstrated that they are highly capable of bringing this value back to the communities.” “The future of mining lies in technology and sustainability. Coupled with the outlook for the sector and our pending expansion of fibre optics in the region, Sandvik’s global reputation for safety, quality, performance, customer service excellence, and commitment to economic, environmental and social sustainability through equitable Indigenous relationships, makes them an exceptional partner for TNDC,” said Paul Gruner, TNDC’s CEO. “We value Sandvik’s confidence in TNDC’s capabilities and look forward to working together to support the growing industry and create innovative opportunities for Tahltans, local Indigenous communities and all residents in the region.” TNDC and Sandvik will work together to bring these technologies to the region, supporting creation of a technologically advanced mining jurisdiction that brings exciting employment and upskilling opportunities for the ambitious local workforce. Sandvik’s full suite of mining products including surface and underground drills, underground loaders and trucks, FEBRUARY/MARCH 2022

Dany Gaudreault, Sandvik Canada’s Indigenous engagement manager; Peter Corcoran, Sandvik Canada’s managing director; Paul Gruner, TNDC’s CEO; Jamie Gleason, TNDC board member; and Rob McPhee, TNDC’s VP partnerships and growth. CREDIT: TDNC AND SANDVIK

stationary crushers and screens, automation and digital solutions, rock tools, and

parts became available through TNDC on Feb. 1, 2022. CMJ

CANADIAN MINING JOURNAL | 13

FAST NEWS

Updates from across the mining ecosytem

• BLOCKCHAIN |

MineHub, Sumitomo accelerate digitalization of mining and metals supply chains

• M&A |

Quebec’s Group M7 acquires US-based Cast Corp., maker of iron ore pellet plants

SX Venture Exchangelisted MineHub Technologies and Sumitomo are collaborating with the shared goal of bringing efficiency, transparency and responsibility to industrial supply chains, with an initial focus on mining and metals. Sumitomo and Vancouver-based MineHub have been closely collaborating on product development since 2020. Under the partnership, MineHub’s blockchain platform brings the companies will continue efficiency to industrial supply chains. to expand MineHub core CREDIT: MINEHUB platform services, which use blockchain technology. Sumitomo will promote the MineHub platform and solutions to its vast network of suppliers, customers and partners across the globe. MineHub will move to incorporate its existing presence in Japan and expand its operations there in order to support its growing market presence. The partnership will enable Sumitomo and its customers and suppliers to use the MineHub platform to unlock value through digitalization. This includes for instance operational cost savings, emissions reduction, supply chain resilience and working capital optimization. CMJ

14 | CANADIAN MINING JOURNAL

The melt deck at Cast Corporation. CREDIT: GROUP M7

n order to expand its range of highly specialized solutions for the primary and mining industries, Quebec City-based Group M7, through its Metal7 division, is acquiring the assets of the Cast Corporation foundry. This modern company is specialized in the manufacturing of various critical components mainly for iron ore pellet plants. The transaction solely consists of the Cast Corporation foundry, which will be majority owned by Metal7, and the new entity formed will be known as Cast7 LLC. Cast Corp. is a well-established company in northern Minnesota, in the heart of the Iron Range. Its expertise in iron ore pelletizing plants complements Metal7’s highly specialized range of solutions. Metal7 notes that Cast Corporation has the best technology in the area, all combined with an automated manufacturing process allowing it to be a leader in the U.S. market. “The acquisition of Cast Corporation is part of our expansion and consolidation strategy intended to create a Canadian leader in high value-added products and services for the mining industry, a company whose expertise is recognized internationally,” said Bruno Fortin, chairman of Group M7. The acquisition of Cast7 was supported by Export Development Canada. No monetary value was available. Since February 1974, Metal7 has been designing and manufacturing innovative products and equipment mainly for iron ore pellet plants and aluminum industries. CMJ

www.canadianminingjournal.com

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RECONCILIATION

From adversaries to allies

‘WEAVING TWO WORLDS’ LOOKS AT HOW THE RESOURCE SECTOR CAN BUILD TRUST WITH INDIGENOUS COMMUNITIES

ositive relationships with Indigenous communities are key to success for resource companies, but they often prove elusive. A new book, Weaving Two Worlds: Economic Reconciliation Between Indigenous Peoples and the Resource Sector (weavingtwoworlds.com), explores how the industry can fix that. Written by Christy Smith and Michael McPhie, both principals of Falkirk Environmental Consultants, the book brings together Indigenous and non-Indigenous perspectives (Smith is from the K’ómox First Nation in B.C., while McPhie is of Scottish and English descent). It also draws on the experience of each author in the resources sector – Smith as an Indigenous business consultant and Falkirk’s vice-president of Indigenous and stakeholder engagement, and McPhie, as a founding partner and co-chair of Falkirk, as well as a past president and CEO of the Mining Association of B.C. CMJ spoke with Smith and McPhie in February about the concept of ‘allyship,’ the trend of Indigenous-led environmental assessments, and why addressing unconscious bias is a prerequisite to building productive relationships with Indigenous communities. CMJ: To start the conversation off, why did you two decide to write this book? CHRISTY SMITH: Too often we see companies going into communities and engag-

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> By Alisha Hiyate

ing the issue and how to actually do it well. Our belief is that dialogue is going to be the key to success. This is just our experience and our ideas, but it’s based on a lot of years at the frontlines of doing this stuff both at the board and executive level as well as on the ground. So we’re trying to share that experience and help the conversation move forward in a positive way.

ing in what I consider a harmful way that just causes problems from the get-go in development of their relationships. From my experience, Indigenous people are very relationship-oriented and that’s a key to understanding how we operate, our concerns and interests. Without that relationship, there’s no trust. So building these relationships and this trust is key to resource companies in order to move projects forward. MIKE MCPHIE: Senior folks in the resource sector recognize that relationships with Indigenous communities is key to their success. But there’s a real gap in understanding how to get from recogniz-

CMJ: One of the things you talk about in the book is this legal power shift that’s been happening towards Aboriginal communities. Mining and exploration companies are certainly aware of this shift, including the many court cases for reaffirming Aboriginal rights and the federal government’s recent commitment to implement UNDRIP (United Nations Declaration on the Rights of Indigenous Peoples) into Canadian law. But what is the next step for resource companies to take after just being aware of this shift? CS: The first thing companies need to understand is that Indigenous communities are not stakeholders. They are governments that represent their communities and have been stewards of their lands for thousands of years and must be engaged as such. Building relationships takes time. You need to understand the distinct interests and concerns of the communities. That builds trust, which also takes time. Once proponents understand that, they can create a formal engagement and rec-

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onciliation plan, in partnership with the Indigenous communities in their project area. This is a long-term relationship they are building with a community that will have a direct interest in and influence over how their project will be advanced. Listening is key and not truly listening can be a barrier to building that relationship. MM: In the book, we talk about the first step being to educate yourself, understand what you’re dealing with because the mining industry is a global industry and to operate successfully, whether you’re in Central America, Asia or Canada, you need to understand local cultures, their history, and the place that they’re coming from. There are over 200 First Nations just in British Columbia, and all of them have different histories and experiences with resource companies. So the first thing is to understand. CMJ: Let’s talk about that education process. The book calls for the mining sector to play a bigger role in reconciliation and you explain that this has to start at the personal level, with each person examining their own biases and educating themselves about Indigenous peoples and history. How much of a willingness do you see within the resource sector to actually do this work?

Christy Smith

CS: It’s all over the board and it depends on the individual. Change is uncomfortable. Nobody really wants to get deep into self-reflection, especially when examining some of these biases, assumptions and guilt, or what they would presume as normal thoughts. But if that self-reflection isn’t done, the relationship can’t be formed in that positive way. In our book we’re saying in a soft way that you do need to do this to be success-

Michael McPhie

ful, but we’re not jamming it down their throats, saying, ‘You’ve been thinking about these things all wrong all your life and here we are to change you.’ We try to guide people softly through a self-reflective process. MM: There’s been a movement over the last 10 years to a more enlightened view in the resource sector. But the spectrum is really wide. Pension funds and other sources of finance are pushing management teams in that direction, whether it’s through ESG reporting or the Equator Principles. But a lot of the metrics used in ESG reporting haven’t been able to fully address some key issues such as free, prior and informed consent (FPIC) as defined in UNDRIP, which is now law in Canada through Bill C-15 which received Royal Assent on June 21, 2021. We are now in version 2.0 of what engagement and reconciliation with Indigenous peoples is all about and are moving to where people really start to understand what a productive relationship with First Nations and Indigenous people is. CMJ: What would you say to people in the resource sector who would bristle at some of the language like White fragility and White privilege that are part of the discussion in the book, and the concept of decolonization training? CONTINUED ON PAGE 18

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CANADIAN MINING JOURNAL | 17

RECONCILIATION MM: With all honesty, I had trouble with those concepts going into this and Christy really helped me to understand it. It is uncomfortable because most people think they’re good people, right? They don’t see themselves as carrying around these biases or stereotypes in their mind, but I think once you actually recognize what these terms and concepts represent, you can begin to understand it much better. I mean, the domination of White settlers over Indigenous people in the country - there’s no question about the facts behind that. Does that make you (as a non-Indigenous person) a bad person? No. But does that mean you have to acknowledge that history and why people have felt unfairly treated over many, many hundreds of years? This is our shared history, and, importantly, it isn’t an attack on you – it’s an attack on and a questioning of our past as a country. Having those honest conversations, yes, is going to be hard for some people. We try to be really positive on this stuff – nobody is being blamed here. It’s about deepening your knowledge, you have to understand where people are coming

Is your mine design based on sound geology? .com

from to be able to have productive conversations. They don’t really teach this stuff in engineering school and that’s part of the challenge. CS: I want to be clear, when we talk about privilege, I also have to check my privilege and how I’m coming into a room and to the table. I want to hear what the community has to say. Self-reflection is not just Indigenous, non-Indigenous. It’s something everyone needs to do when they’re listening and engaging. And it’s tough when it’s an ingrained behaviour or an assumption that has been normalized. You have to continually work at changes and habits and changing perspectives take time. But it starts with the willingness to do the work. Lots of times the term White privilege offends people and they get their back up, but I think it’s OK to have those hard conversations and make people a bit uncomfortable because that’s where the real change comes. CMJ: You write that the ultimate goal is for the resource sector to shift its think-

ing and move from being an adversary of Indigenous communities towards being an ally. Can you give us any examples of resource companies successfully making that shift? MM: There are a couple in B.C., Skeena Resources and Talisker Resources, where a shared ownership perspective on projects is being developed. The Tahltan First Nation made an equity investment into Skeena and they’re now partners in the development of the Eskay project. Talisker signed an exploration agreement with the Xwísten First Nation (or the Bridge River Indian Band), and as part of that there was a consideration of equity ownership in the company. So that’s where you begin to shift from just consultation and jobs and scholarships to being full partners in development. And that’s where being allies comes in. CS: With respect to allyship, you’ll see the success come when you see the company truly understands what the Indigenous communities want, because there are some that want equity and some that want and need other things. The idea of allyship is supporting that community and lifting that community up. MM: Being allies is also about recognizing that yes, there are benefits during construction and operations, but what is the long-term legacy, and are you working with and supporting a community in the way that they want to be supported to create enterprises and opportunities that last well beyond the mine life? The last thing I’ll say about allyship is that it has to be welcomed. You can’t just show up and say, ‘Hey, we’ve got all this money and all this opportunity – here you go.’ It’s more like, ‘Here’s this opportunity. How do we do it together, and are you willing to accept that?” It’s a reciprocal relationship. CS: When we talk about legacy, the land base will be there a lot longer than the project, so it’s really about becoming co-stewards with the community and ensuring that you’re supporting and protecting the environment into perpetuity in a way that the communities want. So not only providing support from the investment/business side, but also from a land-use planning perspective. CONTINUED ON PAGE 42

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www.canadianminingjournal.com

MINING LEADERSHIP

> By Andrew MacDougall and John M. Valley

MINERS LAG ON DIVERSITY IN LEADERSHIP Osler study finds more progress for women at the board and senior levels than Indigenous people and visible minorities

IMAGE: DESIGNER491/ISTOCK

anadian mining has long struggled to enhance diversity at the board and senior leadership levels. But while the industry has consistently ranked near the bottom among industries in terms of the number and percentage of women in senior leadership roles, change is happening and a number of companies in the industry are taking steps to be more inclusive. Lucara Diamond is one such company. In addition to being a mining company, Lucara is also a tech company. Its proprietary diamond sales platform, called Clara, is built on blockchain technology that uses computer algorithms to match its diamond production to buyer preferences. The link between the diamonds and the technology is Lucara’s president and CEO Eira Thomas. Thomas, a geologist and 25-year industry veteran, co-founded Lucara in 2008 and, a decade later, was developing Clara when Lucara’s board recruited her to replace retiring CEO William Lamb and bought Clara in the process. Lucara also stands out among mining companies because FEBRUARY/MARCH 2022

Thomas is a woman and three of its top six executives are female. In addition, three directors of Lucara’s seven-member board are women. Thomas isn’t the only woman CEO in Canadian mining, but they are nearly as rare as diamonds like the Sewelô (one of the exceptional large diamonds mined at Lucara’s Karowe mine in Botswana). According to data compiled for Osler’s 2021 Diversity Disclosure Practices report, of the Canadian public mining companies included in the data set, there are only six other CEOs who are women. Canada’s mining sector is making modest gains in the number and percentage of female directors and women in senior executive positions (particularly on mining boards), but obstacles remain. Attracting women to careers in mining and keeping them once they are there has long been an issue. The scope of this problem was highlighted in a 2016 industry action plan from Women in Mining Canada. It cited Mining Industry Human CONTINUED ON PAGE 20

CANADIAN MINING JOURNAL | 19

MINING LEADERSHIP Resources Council (MiHR) figures that showed “mining has a lower representation of women compared to the very same occupation in other industries… This holds true whether the occupation is traditionally associated with a higher… or lower representation of women.” These challenges might also help to explain, at least in part, why career profiles of women mining executives and directors suggest a significant proportion enter the field in senior roles directly from other professions, such as accounting, law or finance. Placements for these women tend to be among the midsize and larger firms, where there is more of a focus on governance and a diverse matrix of skillsets among directors. The makeup of most junior mining boards, by comparison, skews more heavily to a tighter circle of geologists and mining engineers – fields where women tend to be underrepresented.

Latest data on women leaders in mining

The disparity in diversity levels between the boards of Canadian mining companies and other TSX-listed company boards is significant. Data compiled for Osler’s 2021 Diversity Disclosure Practices report shows that just 19% of directors at mining companies in 2021 were women (up from 18% in 2020), compared to 23% for TSX-listed companies as a whole and 33% at S&P/ TSX 60 companies. On a per-board basis, the number of women directors was 1.45, versus 1.83 per board for TSX-listed companies overall and 3.72 for S&P/TSX 60 companies. Although significant, there is less of a differential between the percentage of women executive officers in mining (15%) compared to TSX-listed companies (18%) and S&P/TSX 60 companies (22%).

Trends for women in mining

Osler’s survey data for directors does indicate a substantial overall improvement since 2015, the first full year after the diversity disclosure requirement was introduced. That year, only 7% of directors at mining companies were women. The rate of increase to 19% compares favourably to the improvement rate for all TSX-listed companies, where percentage representation rose to 23% in 2021 from 10% in 2015. The story for women executive officers in the mining sector is also consistent with the trend for TSX-listed companies as a whole. Since 2015, change has been slow and representation remains low in absolute terms (11% in 2015, and 15% in 2021).

Other diverse groups

The story with respect to the representation of other diverse groups, including Indigenous peoples and visible minorities, is a mixed bag. According to MiHR’s 2019 Canadian Mining Labour Market

Data from Osler’s 2021 Diversity Disclosure Practices report found that among federally-incorporated public companies 0.5% of the board positions and virtually no executive officer positions were held by Indigenous peoples. However, although the absolute number of board seats held by Indigenous peoples overall is very low, five of the eight such seats among disclosing companies were on the boards of mining companies. 20 | CANADIAN MINING JOURNAL

Eira Thomas, president and CEO of Lucara Diamond, is one of few female CEOs in mining. CREDIT: LUCARA DIAMOND

According to data compiled for Osler’s 2021 Diversity Disclosure Practices report, of the Canadian public mining companies included in the data set, only seven had female CEOs. Outlook, the representation of Indigenous peoples in the workforce is substantially higher in Canadian mining (7%) compared to other industries (4%), and higher than their representation in Canada’s population (5%). Data from Osler’s 2021 Diversity Disclosure Practices report found that among federally-incorporated public companies 0.5% of the board positions and virtually no executive officer positions were held by Indigenous peoples. However, although the absolute number of board seats held by Indigenous peoples overall is clearly very low, five of the eight such seats among disclosing companies were on the boards of mining companies. In common with other federallyincorporated public companies, mining companies had virtually no executive officers who are Indigenous. The 2019 Canadian Mining Labour Market Outlook reported that the representation of visible minorities in the workforce is substantially lower in Canadian mining (9%) compared to other industries (21%), and their representation in Canada’s population (22%). Data from Osler’s report found that among federallyincorporated public companies, 6.9% of the board positions were held by visible minorities and about 30% of such companies reported having at least one executive officer who is a visible minority. Among mining companies providing disclosure, the percentage for directors was lower at approximately 2.5%, while mining companies had only 14 executive officers who are visible minorities.

Sector leaders

Women in Mining Canada’s action plan offers a twofold prescription to boost female representation: “Outward-focused action to fill the talent pipeline [and]… inward-focused action that changes workplace cultures.” Osler’s research has identified a number of Canadian mining companies that are consistent leaders in best practices to support such efforts. These include:

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> Cameco – diversity and inclusion training, featuring extensive online resources and other awareness initiatives via posters and displays > Teck Resources – promoting culture change with genderneutral approach to job titles and descriptions, as well as familyfriendly policies for mid-career women > Kinross Gold – strategic implementation of global written inclusion and diversity guidelines promoting a more inclusive workplace > Lundin Mining – has established a 14-person multi-disciplinary working group to further the corporation’s diversity and inclusion agenda. Resources and forums are being made available to enable uncomfortable conversations. The corporation has committed to continually evaluating the effectiveness of this program and to modify its approach to ensure it is keeping up with best practices. > New Gold – participates in the International Women in Mining mentoring program that provides mentoring opportunities for female staff across the organization and also provides female corporate employees with membership in Women in Mining Toronto. > OceanaGold – adopted a monitoring program to track progress, and a project to identify and correct gender pay equity gaps.

achieving gender parity. For example, MiHR established the Gender Equity in Mining Works (GEM Works) program that trains gender champions and change agents within organizations with a view to eliminating unintentional barriers to gender inclusion. The Mining Association of Canada’s annual Women in Mining newsletter aims to raise the profile of women by highlighting the work being done by women in the sector. And organizations like Women in Mining Canada and Women Who Rock focus on mentorship and encouraging initiatives that promote professional development for women. With respect to other diverse groups, Osler’s research also identified some Canadian mining companies that are taking action to enhance Indigenous representation. For example, before it merged with Agnico Eagle, Kirkland Lake Gold had implemented cross-cultural training at its sites hoping to recruit more effectively and to build trusted and prosperous partnerships with Indigenous communities.

A number of other initiatives have been launched in the Canadian mining industry in recent years to address the underrepresentation of women and encourage further progress in

Andrew MacDougall (amacdougall@osler.com) and John M. Valley jvalley@osler.com are both partners, corporate at Osler (www.osler.com).

Replicating success

Looking ahead, the key to greater progress for Canadian mining companies overall looks to be replicating the gender practices and diversity performance of our largest miners at the mid-tier and junior levels and replicating them for the benefit of other underrepresented groups at all levels. CMJ

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CANADIAN MINING JOURNAL | 21

WAGES

> By Costmine Staff

Pay holds steady W

DESPITE THE ‘GREAT RESIGNATION’

ages fluctuated wildly in 2021, proving that in yet another way, it wasn’t a normal year. A comparison of the past 10 years wages for mechanics, equipment operators, and labourers at surface and underground mines in Canada indicates that there was a decrease in wages FIGURE 1. Average Hourly Wages for Surface and Underground Mechanics at Canadian Mines

in the 2021 reporting period. The data is slightly misleading as more than half the mines that reported to the survey provided an increase in wages that averaged 2% and the other mines reported that there was no change in wages. No mines indicated a decrease in wages. The overall decrease in wages should be attributed to the “Great Resignation.” Senior miners opted to retire in 2021 and the positions are being filled with workers with less experience. Those workers are still starting with a higher wage than past years.

Underground premium eroding?

There was a time when it was thought to be more lucrative for a miner to work underground. Is that still the case? Costmine compared wages for mechanics, equipment operators,

FIGURE 3. Average Hourly Wages for Surface and Underground

Equipment Operators at Canadian Mines

Labourers at Canadian Mines

IMAGE: LUCKY336/ISTOCK

FIGURE 2. Average Hourly Wages for Surface and Underground

22 | CANADIAN MINING JOURNAL

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Figure 4. Average Hourly Wages for Mechanics at Surface and

To participate in the upcoming Costmine compensation survey for Canadian Mines, contact Krista Noyes at knoyes@glacierrig.com.

Underground Mines in Canada for the years 1996 and 2021.

and labourers in surface and underground operations over the last 10 years. Costmine has published the Canadian Mine Salaries, Wages and Benefits report annually since 1996. That year, underground labourers had a wage 22% higher than their surface mine counterparts, the underground mechanic was 11% higher and the underground equipment operator was 6% higher. The 2021 report showed a shift in favour of the surface equipment operators, while the underground labourers are still making more than those in the surface mines.

FEBRUARY/MARCH 2022

Figures 1 through 3 illustrate the wages for the underground and surface positions of mechanics, heavy operators/underground equipment operator, and labourers over the past 10 years. These show that the base pay has been fairly similar. The difference in base wages between a surface mine mechanic and an underground mechanic was more evident in 1996, when the Costmine survey began. In 2021 the base wages were more similar, shown in figure 4. While the charts show that the wages are similar, it is still generally understood that underground workers are more highly paid than surface mine workers. The difference now comes from bonuses. In 2021, 77% of the underground mines reported providing an incentive plan, while only 50% of the surface mines reported having an incentive plan. Since 1990, Costmine has been surveying operating Canadian mines for the latest in mining wages and benefits. For more information or to participate in or purchase studies, contact Costmine at +1 (509) 328-8023 or www.costmine.com. CMJ n Sources: Canadian Mine Salaries, Wages & Benefits, 1996, 2012-2021

CANADIAN MINING JOURNAL | 23

THE MINING WORKFORCE

> By Erik Buckland

NEW RULES IN THE BATTLE FOR TALENT

How the pandemic has changed recruiting in mining

1 | “Recruiting” is different than “hiring” It’s a common misconception but recruiting and hiring are not the same thing. While they’re both methodologies for bringing new people into your organization, hiring focuses on roles and recruit-

24 | CANADIAN MINING JOURNAL

ment focuses on talent. This is a big difference that requires a shift in mindset and approach. Organizations that focus on hiring will concentrate on the job description, the posting, head counts, compensation banding, conducting interviews, and getting offers out the door as fast as possible. Organizations that focus on recruiting will concentrate on understanding what kind of talent and personalities the business needs, romancing the best candidates by identifying their motivations and needs, and finding the right place within the business to get the most out of their hire. How then do managers evolve from hiring to recruiting? They need to constantly stay on top of industry trends, understand what their competition is doing, and then do things differently. Managers need to proactively network and build dedicated talent pipelines and

succession plans. They need to anticipate their future talent needs and manage their brand as carefully as their people. Managers who RECRUIT know the talent they will need; have identified the people who have it before they need it; and know how to bring that talent on board.

2 | YOU drive recruitment Your primary responsibility as a manager is to ensure that your team is optimized to deliver the best possible results to your stakeholders. That said, you can’t optimize your team if you don’t build it properly and you can’t build it properly if you don’t drive the recruitment process yourself. Too often managers abdicate responsibility to others, choosing to focus on other elements of their job; however, there is no one better suited to lead recruitment than the person who also

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IMAGE: ERDIKOCAK/ISTOCK

fter years of sluggish growth, mining now is happily firing on all cylinders. The result is that there’s a dogfight for good people, and it’s especially vicious in this boom cycle given the dramatic changes in employment conditions, relationships, and values brought around by global pandemic. Managers at all levels in mining companies, from the engineering manager to the VP, need to adapt to this new reality. If you’re looking to rise above the fray and emerge victorious in the war for talent, keep the following in mind.

There is a temptation to assume that the more experienced or specialized a recruiter is, the more hands-off you can be in engaging them. This is a fundamental mistake, and a huge, missed opportunity.

leads the team, is responsible for its success, and experiences firsthand the pain when the team falls short. Have a plan, get involved with the details, and drive it like you would any other project you’re involved with. If you don’t take recruiting seriously, no one will.

3 | Be proactive The most successful professional recruiters don’t wait for top talent to self-identify – they go out and find it themselves. As an executive search and technical recruitment firm, we’re constantly networking, prospecting, and engaging with intriguing candidates regardless of our current portfolio of searches. We’re always interested in speaking to people who have a strong professional pedigree, who have worked on interesting, successful projects, who have a solid track record of accomplishments, and who FEBRUARY/MARCH 2022

we think might add value to our clients. We’re always playing the long game. Managers should follow suit. Network within industry associations. Go to industry events. Make sure your team knows about your recruitment plans and encourage them to help. Create and maintain a list of people who you think would fit in with your team. Reach out regularly and have informal conversations with them about how you might be able to collaborate. Carefully keep track of them and cultivate relationships with them as any recruiter would. Recruitment is an active and ongoing process as you continually build out your teams’ capabilities, even when you have a full roster.

4 | Train your recruitment team Because of how important, and resourceintensive, recruitment is, you may elect to

engage internal or external recruitment support. Whether you use an outside firm or your company’s recruitment team, the better they understand you, the better they will perform. There is a temptation to assume that the more experienced or specialized a recruiter is, the more hands-off you can be in engaging them. This is a fundamental mistake, and a huge, missed opportunity. A professional recruiter who specializes in your field might know your market and have a deep bench and they’ll also have the capacity to truly understand your specific needs. They can internalize the unique challenges you face with your teams, projects, methodologies, and technologies and use that insight to find the best possible candidate for your role. The best way to guarantee this kind of success is to train your recruiters. Bring them as close to your business as possible. Don’t just give them a job description and a few bullets on the benefits of joining your team; ensure they get to know your team, the projects you’re working on, the challenges you face, the problems you’re experiencing and the obstacles you need to overcome. The best predictor for success from your recruitment provider is their proximity to your business. The better they know you, your business, and your pain points, the more effectively they can identify the talent you need and successfully attract them to you. CMJ Erik Buckland is a Client Director with Lincoln Strategic International, human capital consulting firm with a core specialty of executive search and technical recruitment and an exclusive focus on the global mining industry. Erik.buckland@lincolnstrategic.com / www.lincolnstrategic.com CANADIAN MINING JOURNAL | 25

ONTARIO

> By Chris Hodgson

Mining’s TRANSFORMATIONAL potential

New report highlights growing economic impact, importance, of mining to Ontario

fter two years of uncertainty and lockdowns that resulted in the largest drop in global GDP in history, I think we could all use a little hope this year, yes? A report by EY, commissioned by the Ontario Mining Association (OMA) in partnership with Ontario’s Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDMNRF), offers a great deal of hope. The State of Ontario Mining Report employs EY’s proprietary economic contribution model to assess the current state and potential future economic contributions of OMA members’ mining operations. It is clear that mining is the core of the Ontario economy – creating safe and high paying jobs, contributing to regional communities, and acting as an innovation frontrunner by adopting new technologies to unlock our competitive advantage. Ontario mines are a reliable source of strategic minerals that provide society with everyday essentials and are critical to the low-carbon technologies necessary for a greener future. The report outlines the industry’s nimble response to the Covid-19 pandemic, which allowed us to continue producing minerals and protect jobs across our supply chain, while protecting the health and safety of workers and supporting communities. The report also includes an in-depth Critical Mineral Analysis, which suggests that our industry is poised to play a leadership role in our post-pandemic recovery efforts, helping to enable the transition to a low-carbon economy both at home and abroad. There are 41 active mining operations in the province that cover a diverse base of minerals, including precious and base metals, and non-metallic minerals. In 2020, Ontario produced eight critical minerals, with several more projects in the pipeline. Mining operations in Ontario contributed an estimated annual total of $7.5 billion to Ontario’s GDP, $3.3 billion in wages and salaries, and sustain over 48,605 full-time equivalent jobs in the province via direct, indirect and induced channels. Approximately 73% of Ontario mining companies’ GDP contributions stay inside the province. The market value of the minerals produced by major mines in Ontario was over $10.7 billion in 2020, which accounted for 24% of Canada’s total. In 2019, major mining companies’ direct full-time equivalent employment in the province totalled over 21,000, with over $1.9 billion paid in total worker compensation. Total market value of minerals produced in Ontario is projected (based on production volume and commodity prices) to reach $13.7 billion in 2025. In that same year, it is estimated that Ontario’s mining industry will contribute $9.3 billion in GDP,

26 | CANADIAN MINING JOURNAL

$3.4 billion in wages and salaries, and sustain over 51,800 fulltime equivalent jobs via direct, indirect and induced channels. Much of this growth will be driven by demand for responsibly mined raw materials, which is set to soar as the world gears up for net zero. As the move toward cleaner technologies progresses, end-user sectors will need stable access to growing quantities of raw materials, including Ontario’s critical minerals, while also decarbonizing their own supply chains.

Critical minerals analysis

EY performed a thorough analysis for each of the critical minerals deemed strategic to generating investment, increasing the province’s competitiveness in global markets, and creating jobs and opportunities in the mining sector. Profiles were created to demonstrate each mineral’s value chain, production level in Ontario, global trade patterns, price and demand outlooks, and economic and strategic importance to the Ontario economy. A data-driven framework demonstrates the relative economic importance and supply risk of each mineral on Ontario’s proposed critical minerals list, which was released for public consultation in June 2021. Moreover, this framework can be used to identify additional minerals to be included on the list. Ontario’s vast mineral reserves are only part of our success equation. Mining companies are evaluated on the basis of their contributions to a sustainable economy, environment, and local communities. An environmentally conscious and socially responsible mining sector is key to Ontario’s long-term economic growth and prosperity. The EY report illustrates that, across the province, mining companies are leaders in sustainability and environmental protection in areas including energy conservation, carbon emissions reduction, and adoption of clean technologies. Over three-quarters of Ontario’s mining companies participate in a carbon pricing scheme that aims to lower GHG emissions and spurs innovation. The vast majority of senior mining companies – 82% – have established carbon emission reduction goals and 64% have energy management targets. The mining industry in Ontario has adopted advanced clean technologies at higher rates than comparable industries. As of 2019, mining companies have had noticeably higher rates of adoption for energy storage and energy-efficient transportation and have surpassed the provincial average for air, waste, and water treatment technologies. Over 66% of water used by major mining companies in 2019 was recycled.

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Ontario’s mining companies contribute to regional communities by prioritizing local hiring and suppliers, supporting health and education initiatives, and engaging with Indigenous communities. Proportionally, the mining industry is the largest private sector employer of Indigenous Peoples, who represented an average of 9% of employees in Ontario’s mining companies in 2019. In the same year, Ontario miners sourced 44% of supplies, materials and services from local regions, creating an economic multiplier effect. During the Covid-19 pandemic, Ontario’s mines have provided supplies and support to local communities, businesses, and hospitals. Current corporate governance practices are reshaping the industry. Mining companies are implementing equity, diversity, and inclusion targets, voluntarily reporting on ESG compliance, and consider ESG factors in future investment decisions. Ontario’s mining workforce includes varying levels of representation for historically underrepresented groups, such as women (13%), Indigenous Peoples (9%), and other visible minorities (6%). Further diversifying the workforce and attracting more young people presents a success-determining challenge for mining companies. Just 8% of the mining workforce is 24 years old or younger while 22% of the workforce is 55 or older.

Opportunity to change the world

These demographics present an opening for people who recognize the opportunities that mining has to offer. The average weekly wage in Ontario mining is 70% higher than the average industrial wage in the province, with mine workers and mining

support workers averaging a weekly salary of $1,900. Between 2001 and 2019, earnings for mining and quarrying grew by 66% while earnings for mining support activities grew 80%. Jobs in our sector remained stable during the pandemic, with mining being declared essential and companies taking effective action to protect workers’ health and safety. Ontario is one of the safest mining jurisdictions in the world and mining is one of the safest industries in Ontario, achieving a 96% improvement in lost time injury frequency over 30 years. We anticipate that there will be sustained demand for safe and high-paying jobs in our sector, given the long-term impact of the decarbonization-driven super cycle. Ontario mining companies are committed to innovation and welcome workers from other industries who have transferable skills. Tomorrow’s economy will be built on sustainable technologies, sourced from responsible producers, so working in the Ontario mining sector is an opportunity to effect meaningful change in the world. As stated by Rob McEwen, speaking on The Northern Miner Podcast – episode 271, “If you are looking for a sexy career, where you can travel the world, you can earn top dollars, produce materials that will help create a greener world...and if you are ambitious, you can run the whole show in your mid-30s, then the choice is easy – it’s mining.” For people seeking opportunities and professional growth in a purpose-led industry, how hopeful is that? CMJ Chris Hodgson is president of the Ontario Mining Association.

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> By D’Arcy Jenish

ELECTRA AIMS TO SEIZE THE

EV MOMENT

Cobalt sulphate production in late 2022 is just the start of Electra Battery Materials’ plans

Trent Mell, president and CEO of Electra Battery Materials

28 | CANADIAN MINING JOURNAL

rent Mell began his career as a Bay Street securities lawyer before leaving the legal profession to work for, not just one or two, but five different mining companies. These days, though, he’s wearing an entirely different hat as president and chief executive officer of Toronto-based Electra Battery Materials Inc. (EBM) – which is in the early stages of developing a vertically-integrated complex to supply North American automakers with the minerals they need to produce battery electric vehicles. “Hundreds of billions of dollars are being invested to revolutionize personal mobility,” says Mell. “The decarbonization of transportation is a once in a multi-generational moment, not unlike the invention of the internal combustion engine a century ago.” The company was founded in 2017 and traded under the name First Cobalt,

which reflected its original, more limited objectives. The company was primarily interested in finding cobalt assets, either exploration or development projects, that could eventually supply the market with a critical mineral for the decarbonization revolution. To that end, First Cobalt acquired a conventional silver processing mill in the amalgamated community of Temiskaming Shores that includes the town of Cobalt, Ont., which was at the epicentre of one of the first great Canadian mining booms. “We were going to be the only producer of battery grade cobalt sulphate for the North American market,” says Mell.

Expanding ambitions

From that limited start, the company’s ambitions quickly expanded. A rebranded Electra Battery Materials emerged last November with the vision of producing and supplying to battery makers the suite of chemicals required for the nickel-cobalt-manganese (NCM)

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Left: Electra Battery Materials’ refinery in Ontario, with tailings ponds in the foreground. Above: Circuit inside the refinery. CREDIT: ELECTRA BATTERY MATERIALS

batteries currently used in most mid- and high-range electric vehicles. “We’ve got one of the biggest markets in the world south of the border,” says Mell. “We’ve got most of the resources here, but not much attention has been paid to processing the minerals. Our vision is to fill that void.” The repurposed and expanded silver mill will be used to produce cobalt sulphate, which is the first phase of the company’s four-part plan, and is expected to be operational by year end. EBM has signed agreements with Glencore and the trading arm China Molybdenum to acquire cobalt ore from their mines in the Democratic Republic of the Congo. “It’s a path that comes with some geopolitical risks and environmental social governance concerns,” Mell acknowledges. “To mitigate, that we’re dealing with the biggest and best suppliers. As well, we will be following audit trail and supply train certifications they’ve adopted with OEMs.” Electra is now targeting production FEBRUARY/MARCH 2022

of 6,500 tonnes of cobalt annually (32,500 tonnes cobalt sulphate) – up from 5,000 tonnes (25,000 tonnes cobalt sulphate) because of strong demand for batterygrade cobalt and client feedback. Eventually, EBM hopes to have its own supply of cobalt. The company owns the Iron Creek property in Idaho’s cobalt belt and last June launched an exploration program comprising geophysical surveys, geological mapping and 4,500 metres of drilling. That follows the release in 2019 of an indicated resource for Iron Creek of 2.2 million tonnes grading 0.32% cobalt equivalent, for 12.3 million lb. of cobalt equivalent. It also holds an inferred resource of 2.7 million tonnes, with a grade of 0.28% cobalt equivalent for 12.7 million lb. of cobalt equivalent.

Battery recycling plans

The second phase of EBM’s project involves recovering minerals from used automobile and consumer electronics batteries. The company plans to have a demonstration project up and running within the existing mill this summer. As Mell explains, recycling companies in Japan, North America and elsewhere strip off the casings then shred batteries to produce a powder called black mass that contains valuable minerals as well as waste products. EBM has contracted with the Japanese conglomerate Marubeni to supply it with black mass,

but several North American companies have also expressed interest in supplying the material. The company will use solvent extraction circuits in the mill to treat the black mass, which involves adding reagents that cause the minerals – a combination of cobalt, nickel, manganese and lithium, depending on the types of batteries – to separate from the waste materials. The demonstration project will cost upwards of $3 million, but the capital expenditure required to build a recycling plant will depend on how many tonnes per day the company decides to process. Phases three and four – a nickel sulphate plant and a precursor plant – are at the concept stage. The company is working on commercial documents and technical studies to determine basic parameters such as energy, water and manpower requirements as well as capital expenditures. “In mining terms, it would be more than a scoping study, more the equivalent of a pre-feasibility study,” says Mell. Nevertheless, he projects that both could be built and producing by 2025, though that will involve some significant financing since the nickel sulphate plant will cost between $300 and $400 million to build and commission while the precursor plant will cost in the neighbourhood of $150 million. There are other hurdles to overcome, CONTINUED ON PAGE 30

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Another view of the reﬁnery, near Cobalt, Ont. CREDIT: ELECTRA BATTERY MATERIALS

one being securing reliable and sufficient supplies of nickel feedstock to keep a plant running. “The problem with nickel is that the stainless steel market is huge,” says Mell. “Nickel sulphate for the battery market is small. It’s something like eight per cent.” Building and commissioning a precursor plant may be the most complex piece of the project and, Mell says, EBM would likely need to bring in a joint venture or commercial partner. A precursor plant is used to blend nickel sulphate, cobalt sulphate and manganese through complex

chemical processes that require the right size particles, the right purity levels and the correct ratios.

‘Huge synergies’

At the same time, there are a number of advantages, one being that EBM would have a vertically-integrated operation that starts with cobalt and nickel ores and ends up with finished products that can be sold to manufacturers of the cathodes used in batteries. “They’re doing this in China and Finland,” says Mell. “You don’t see it in North

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America yet. There’s huge synergies that can be captured with integrated refining and precursor manufacturing.” Apart from the commercial advantages, EBM’s project fits with the Ontario government’s avowed goal of getting the province into the business of producing batteries for the emerging electric vehicle market. The project is also nicely aligned with federal initiatives aimed at reducing greenhouse gas emissions and achieving net zero emissions. And both governments have stepped in with financial support. EBM received a $5-million interest-free loan from the federal government and a $5 million grant from Ontario. “There’s a growing sophistication at the government level and co-ordination and collaboration with industry,” Mell says. “There are civil servants who get it and are working for us.” Still, he worries that other countries, especially Australia, are doing more to promote the extraction and processing of minerals critical to decarbonization. Canada is also being held back, he believes, by NIMBYism and our increasingly dragged out, often fractious permitting processes. “We want to decarbonize, but we don’t want a mine,” Mell says, adding “I know European investors who have shied away from Canada because the permitting regime is too difficult and too long.” CMJ D’Arcy Jenish is an eastern correspondent for CMJ and the author of several books.

www.canadianminingjournal.com

MINING IN ONTARIO

> By Canadian Mining Journal Staff

Ontario attracts

INVESTMENT

Drilling at Generation Mining’s Marathon palladium-copper project, where an environmental impact assessment is under way.

CREDIT: MARATHON MINING

New builds, M&A among the highlights of recent activity, but rising costs a concern

ntario is a strong producer of gold, accounting for 40.5% of all gold produced in Canada in 2020. So it’s not surprising that the yellow metal figures heavily in recent construction and M&A highlights from the province. Billions of dollars are being invested in three new Ontario gold mines that are expected to come online over the next two years – Iamgold’s Côté joint venture; Argonaut Gold’s Magino mine and Equinox Gold’s Greenstone JV. While the mines – all low-grade, open pit operations – will bring welcome jobs and tax revenue, building during the pandemic has come with chalFEBRUARY/MARCH 2022

lenges. Two of the three mines have already seen some serious cost inflation amid supply chain and labour issues. Here’s a look at all three.

Greenstone

Equinox Gold broke ground at its 60%-owned Greenstone gold project in Ontario with 40% partner Orion Mine Finance in late October. As the last in full-on construction (early works at the project started in early 2021), it’s the only one of Ontario’s new CONTINUED ON PAGE 32

CANADIAN MINING JOURNAL | 31

MINING IN ONTARIO The construction camp and facilities at the Equinox Gold and Orion Mine Finance’s Greenstone gold JV.

gold mines that hasn’t warned of rising costs. First gold at the US$1.2-billion Greenstone project, near Geraldton, 275 km northeast of Thunder Bay, is targeted for the first half of 2024. The operation will be one of Canada’s largest gold mines, delivering an average of over 400,000 oz. gold (240,000 oz. attributable to Equinox) during the first five years of its 14-year mine life. According to a late 2020 feasibility study update, the 27,000 t/d mine will produce at all-in sustaining costs (AISC) of less than US$700 per oz. The project’s after-tax net present value (NPV) at a 5% discount rate is estimated at $1.4 billion, its internal rate of return (IRR) at 20.1%, and its payback period at 3.2 years. Just a couple of years ago, the project’s advancement was in doubt, with former 50/50 owners Premier Gold Mines and Centerra Gold at odds on moving forward with construction. Centerra claimed a feasibility study completed on Greenstone by Premier was not up to feasibility standards, while also turning down an offer by Premier to buy its interest for US$205 million. Equinox moved in to purchase Premier Gold in December 2020, and Centerra agreed to sell its 50% stake in the project to Orion Mine Finance for US$210 million plus further contingent

CREDIT: EQUINOX GOLD

Construction of the New Lake North Dam as part of watercourse realignments at Iamgold and Sumitomo’s Côté gold JV.

payments of up to US$75 million. Orion made a deal to sell 10% of its stake to Equinox once its takeover of Premier was completed, setting the stage for the project to move forward. Proven and probable reserves are pegged at 135.3 million tonnes grading 1.27 g/t gold for 5.5 million oz.

Magino

Argonaut Gold began construction of its Magino gold project, 40 km northeast of Wawa, Ont., last January. But in December, Argonaut announced that expected construction costs had ballooned by 57% to $800 million from $510 million. In the same release, the company noted the departure of president and CEO Peter Dougherty. The project is envisioned as a 10,000 t/d open pit project with a 17-year mine life. Its first gold pour is expected in March 2023. From the start, Argonaut had attempted to control potential cost escalation by opting for a fixed-bid EPC contract with Ausenco for the processing plant, which accounted for 40% of the initial capex. But other costs remained unprotected. The company said that cost increases, inflation and Covid-19 impacts accounted for 32% of the capital increase; scope changes related to site development, the tailings management facility and power (choosing to install an LNG plant rather than upgrading line power) accounted for 28%; and quantities (related to site development and indirect costs) accounted for 20%. Schedule recovery accounted for an 8% rise. In mid-February, Argonaut released highlights of a new technical report for Magino and also announced a $45-million bought-deal financing of flow-through shares to support exploration and development at Magino. The new report estimates capital costs at US$492 million ($626 million) including preproduction, sustaining capital and closure, and contingency costs.

Construction at Argonaut Gold’s Magino gold project.

32 | CANADIAN MINING JOURNAL

CREDIT: IAMGOLD

CREDIT: ARGONAUT GOLD

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Argonaut now forecasts Magino’s mine life at 19 years with recovery of 2.2 million oz. gold in total, and 142,000 oz. of gold annually for its first five years. Lifeof-mine all-in sustaining costs are projected at US$963 per oz. Using a US$1,600 per oz. gold price, the project now carries an after-tax net present value of US$421 million (at a 5% discount rate) and an internal rate of return of 19.3%. In addition to the recent financing, funding for Magino will come from cash flow from other operations and about $290 million in cash and credit facilities that the company holds. The report did not consider expansion beyond the initial 10,000 t/d project, although Magino is permitted for 35,0000 t/d and Argonaut sees potential for a staged expansion. Proven and probable reserves now stand at 65.5 million tonnes grading 1.15 g/t gold for 2.4 million contained oz. However, it does not consider capital invested to the end of 2021, which amounted to US$273 million ($347 million). If that spending was not treated as a sunk cost, the overall capital cost would be US$765 million ($973 million).

Iamgold

Iamgold began construction of its 70%-owned Côté gold mine near Gogama, Ont., in July 2020. The operation will be the first CONTINUED ON PAGE 34

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MINING IN ONTARIO M&A deals highlight potential future mines

wo recent M&A deals shine the spotlight on the future potential of Ontario’s undeveloped Ring of Fire region and its established Red Lake camp: Wyloo Metals’ takeover of Noront Resources, and Kinross Gold’s takeover of Great Bear Resources. At press time in late February, both transactions were expected to close in the first quarter. NORONT RESOURCES Six years after Cliffs Natural Resources walked away from the Ring of Fire, seeing no way to develop a mine for decades, interest in the remote, infrastructure-poor but mineral-rich region started to pick up in 2021. A protracted bidding war for Noront Resources last year demonstrated its nickel-copperPGM and chromite assets are attractive for at least a couple of companies with deep pockets, a far-reaching vision, and a willingness to work through divided First Nation support for development. In the competition for Noront, Aussie companies BHP and Wyloo Metals started the bidding at $325 million, or 55¢ per share (BHP) and ended at $616.9 million, or $1.10 per share (Wyloo). At press time, the shareholder vote on Wyloo’s offer was set to take place on Mar. 15. The company already has a 23% stake in Noront, acquired from Resource Capital Funds in late 2020. Noront’s Eagle’s Nest project, located 530 km northeast of Thunder Bay, hosts proven and probable reserves of 11.1 million tonnes grading 1.68% nickel, 0.87% copper, 0.87 g/t platinum, 3.09 g/t palladium and 0.18 g/t gold. A 2012 feasibility study pegged the mine life at 11 years. Noront had been hoping to put the highgrade underground mine into production in 2026. However, first, an all-weather road into the Ring of Fire would have to be built (see page 36 for details of road proposals in the region). The company also holds several high-grade chromite deposits, including Black Thor, which hosts measured and indicated resources of 137.7 million tonnes grading 31.5% chromite. Wyloo, a private company owned by Australia’s Tattarang, which is controlled by mining

34 | CANADIAN MINING JOURNAL

Noront Resources’ Esker camp in the Ring of Fire.

billionaire Andrew Forrest, declined a request for an interview by CMJ until after the takeover is closed. However, last May, before even officially making an offer for Noront, it outlined some big plans for the Ring of Fire. Wyloo’s plans for the region include the creation of a “future metals hub,” and a commitment to invest $25 million to study the potential to create a local battery metals supply chain in the province and the potential for a new ferrochrome plant. The company also promised that the metals hub would be developed in consultation with regional stakeholders and First Nations communities. It added that it would target awarding $100 million worth of contracts to First Nations businesses; pledged to help First Nations businesses with access to capital and other support to create other employment and economic opportunities; and proposed the development of a training and employment centre for northern Ontario and First Nations communities. Even so, it will have some work to do to get First Nations support: in April 2021, several communities in the region declared a moratorium on development in the Ring of Fire, and are demanding a First Nations-led regional assessment (see page 36). GREAT BEAR RESOURCES While Great Bear Resources has yet to release an initial resource for its Dixie project in Red Lake, Ont., it’s been evident for a while now that it has its hands on a substantial discovery. Kinross, which made a friendly $1.8-billion cash-andshares offer for the junior in

CREDIT: NORONT RESOURCES

December, says it’s been doing due diligence on the asset since 2018. The deal was approved by Great Bear shareholders in mid-February. Even without a National Instrument 43-101 resource estimate, a massive drilling campaign at Dixie – more than 790 holes totalling 340 km completed to date – has provided plenty of high-quality data for Kinross and others to draw up their own estimates. The consensus estimate among mining analysts (not National Instrument 43-101-compliant estimate) is that the deposit could host 8.5 million oz. of gold. While the deposit is at an early stage for a nearly $2-billion payout, Kinross says it’s confident its offer is justified by its vision of a high-quality open pit mine at the project’s LP Fault zone alone, even before consideration of Great Bear’s other discoveries. Ultimately, Kinross sees a multidecade mine complex at Dixie, starting with open pit mining at LP, which also has potential for underground mining (mineralization at LP has been intersected to 750 metres

depth and remains open). There’s also potential to mine other satellite deposits at Dixie. Work at the 91-sq.-km project has centred on the 10.8-kmlong LP Fault zone, which has returned consistently impressive high-grade gold intersections within wide, continuous, moderate-grade zones of mineralization. The Hemlo-style mineralization, which occurs in stacked moderate and high-grade gold mineralized lenses, is more continuous than typical Red Lake style vein-hosted gold deposits. Drill results in the Central LP Fault zone have included 101.5 metres of 4.69 g/t gold (from 92 metres), including 5.3 metres of 41.25 g/t gold (hole BR-212). While the market had been looking forward to the release of an initial resource for the LP Fault in early 2022 under Great Bear, Kinross plans to delay that for about a year as it conducts more infill drilling on the deposit. The planned drilling will focus on delineating a 350- to 400-metre-deep starter pit at LP along the 2-km-long Central. A preliminary economic assessment would follow in early 2023. Assuming another 2.5 years for a prefeasibility and feasibility and two years of construction, it’s possible the mine could be in production by the end of the decade, Kinross executives said in a December 2021 conference call. Kinross is planning 200,000 metres of drilling at LP in 2022, plus exploration drilling at other high-grade Red Lake-style deposits at Dixie. The company plans to spend $50-60 million on the 2022 drill campaign.

Drilling at Great Bear Resources’ Dixie gold project.

CREDIT: GREAT BEAR RESOURCES

www.canadianminingjournal.com

open pit gold mine in Canada to use autonomous haulage. While Iamgold reports that the project is still on schedule for first production in the second half of 2023, it reported in July 2021 that costs have risen by 25-30%. The gold miner now expects its 70% share of costs to be US$1.1-$1.2 billion, compared to US$875-$925 million in the previous year’s estimate. Sumitomo Metal Mining holds a 30% stake in the JV. Contributing to the cost increase are: higher structural, mechanical, piping, electrical and concrete estimates for the process facility; higher mine facilities costs; increases in earthworks materials and manpower estimates; certain scope changes; and inflation – including pricing increases due to Covid-19 related supply chain challenges. Currency exchange rates and other pandemic-related costs also played a part. The 36,000 t/d operation is expected to produce an average of 489,000 oz. annually over its first five years. Production over the full 18-year mine life is estimated at 367,000 oz. annually at all-in sustaining costs of US$802 per oz. Côté holds proven and probable reserves of 233 million tonnes grading 1 g/t gold, for 7.3 million oz. (on a 100% basis). A technical report updated in 2021 gave the project an after-tax NPV of $1.6 billion (discounted at 5%), an IRR of 19% and a payback period of 3.7 years. The project is 92.5% owned and operated by the Iamgold-Sumitomo JV, with 7.5% held by a third party. Iamgold’s president and CEO Gord Stothart stepped down in January, followed by chairman of the board Don Charter. RCF Management, a 5.2% shareholder, is pushing for further changes to the board. Iamgold announced a strategic reviews of its Rosebel and Westwood mines in January.

Generation makes progress at Marathon

Looking further down the line, a likely candidate for the next new mine is Generation Mining’s Marathon palladium-copper project. The project is in the midst of a joint federal-provincial environmental impact assessment review. Generation recently secured a 100% interest in Marathon when Sibanye-Stillwater opted not to exercise its right to earn a 51% stake in the project. In return for its 16.5% interest, Generation issued shares to Sibanye-Stillwater, leaving the South Africa-based miner with a 19.1% holding in the junior. Generation also secured $240 million in financing to build the mine, estimated to cost $665 million. The funds come in the form of a streaming deal with Wheaton Precious Metals that will see it buy the first 150,000 oz. of payable gold production, dropping to 67% of gold production for the remainder of the mine life, and between 15% and 22% of palladium production. Wheaton will pay a portion of the spot price (between 18% and 22%). Generation is working with Endeavour Financial to source funds (including project debt, offtake agreements and equipment financing) to cover the remainder of the capital cost. A 2021 feasibility study on Marathon outlined a 25,200 t/d open pit operation that would produce an average of 146,000 oz. palladium, 36 million lb. copper and 41,000 oz. platinum per year, plus gold and silver credits at an all-in sustaining cost of US$809 per palladium-equivalent oz. The project’s after-tax net present value (using a 6% discount rate) is estimated at $1.1 billion with a 29.7% internal rate of return and a 2.3-year payback. The study used long-term metal prices including US$1,725 per oz. palladium and US$3.20 per lb. copper. CMJ

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CANADIAN MINING JOURNAL | 35

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> By Alisha Hiyate

PROGRESS OR

PERIL?

Noront Resources’ camp in the Ring of Fire. CREDIT: NORONT RESOURCES

First Nations in the Ring of Fire divided on infrastructure – and the mining development it would attract

arten Falls Chief Bruce Achneepineskum is eager to start work on a 200-km permanent, all-season road to his remote, fly-in First Nations community in the James Bay Lowlands, about 170 km northeast of Nakina. Achneepineskum says the road, which would link to forestry roads near the Aroland First Nation near Nakina, would be a “lifeline into the community,” making the shipment of fuel, building materials, food and other essentials more affordable, and allowing community members to travel more freely. An all-season road is also becoming a more urgent necessity as the winter ice road seasons become shorter and less reliable because of climate change. The road would bring new, permanent infrastructure closer to the Ring of Fire – still about 120 km to the north.

36 | CANADIAN MINING JOURNAL

But in a best-case scenario, it will still be close to a decade before the road could be completed. An environmental assessment (EA) is under way; assuming it is approved, an engineering study will still need to be completed. And according to the project description, construction would take at least three years – but could take as long as 10, depending on the terms of funding. While planning and design work began in 2018 with the initial project description submitted in 2019, the permitting schedule has been slowed by the Covid-19 pandemic. “It will probably be four or five years before we see a shovel in the ground,” Achneepineskum says. However, the project could be facing further delays. In November, about a month after the terms of reference for the road EA were approved by the Ontario government, the Neskan-

www.canadianminingjournal.com

Nonetheless, Achneepineskum acknowledges there are areas of overlapping jurisdiction with other First Nations, adding that Neskantaga is within its rights to pursue its court action. “That’s part of the issue that we’re facing today is – what does that really mean? Who has the ultimate authority within those lands to make decisions? If Marten Falls is going to make a decision on moving forward with development, and there’s a First Nation objecting, how do we find a resolution to that? Who’s going to resolve those issues?” he said. “I think it’s going Map of Ontario showing the location of the Ring of Fire and several nearby First Nations communities. to be all parties that have to resolve those issues.”

taga First Nation filed an action in Ontario Superior Court, arguing that it has not been adequately consulted on road proposals in the Ring of Fire region – especially considering it has been dealing with a long-term boil water advisory, a community evacuation in October 2020 because of unsafe water, and the disruptive effects of the pandemic that have prevented it from engaging in meaningful consultations. The suit against the Ontario government, which also names

CREDIT: NORONT RESOURCES

From one road to four

Marten Falls as a respondent, asks the court to define scope of adequate consultation, something that Ontario’s Environmental Assessment Act does not address. In addition to the lawsuit, the chiefs of Neskantaga and several First Nations belonging to Mushkegowuk Tribal Council of communities in western James Bay and Hudson’s Bay, declared a moratorium on any development in the region last year. The chiefs feel they’ve been reduced to token involvement in a federally-led regional assessment of the Ring of Fire that is slated to begin this year. In an interview with CMJ in February, Marten Falls Chief Achneepineskum said that as the proponent of the road, he was confident with the way the community is handling the EA. Marten Falls has consulted with 23 communities. “There are going to be First Nations that object to our position and we’ll respect their positions and where they’re coming from,” he says. “But we are assuming our own jurisdiction within our own lands and our environmental assessment falls within Marten Falls traditional lands.” FEBRUARY/MARCH 2022

There have been various proposals for transportation in the Ring of Fire, located 540 km northeast of Thunder Bay, Ont., over the years – including the current north-south route, an eastwest road, and a rail corridor. The north-south route has been broken up into three different segments. While previously, the proposals were industry driven, the proponents of projects currently in the environmental assessment phase are all First Nation. In addition to the Marten Falls road, Webequie First Nation is also proposing a 107-km supply road between the community and the Ring of Fire camp; and together, Marten Falls and Webequie are proposing the 155-km Northern Link to connect the two roads. Over the years, Marten Falls and Webequie have both worked closely with Noront Resources, which holds the most advanced nickel-copper-PGM and chromite projects in the region, and which Australia-based Wyloo Metals has offered to buy for $617 million (see page 34). Mushkegowuk Council communities east of the Ring of Fire are also exploring their own permanent 550-km-plus road. The road would connect western James Bay coastal communities, reaching as far as Attawapiskat First Nation, with the provincial highway system. Attawapiskat Chief David Nakogee says there’s a key difference between the Webequie and James Bay Road proposals. “They are inviting industries to come and use their highway and what we’re proposing is for the people, to cut the cost (of living),” he says. “There’s no invitation to industries to come in and I would say invade our territory to start production of everything and anything they can get their hands on.” Nakogee is also concerned about pollution to the Attawapiskat River as well as James Bay and Hudson’s Bay. Kate Kempton, Attawapiskat’s lawyer and a partner with Olthuis Kleer Townshend, says while the Marten Falls road may be justified as a community access road, the other two segments of the road are for industry use. Kempton adds that all three were originally part of one road to serve industry. “Ontario has been the driving force behind this by telling the Matawa First Nations, who used to be working together on a regional approach, several years ago that it would only do bilateral agreements with First Nations and provide funding for CONTINUED ON PAGE 38

CANADIAN MINING JOURNAL | 37

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The three proposed road projects in the Ring of Fire.

CREDIT: NORONT RESOURCES

capacity building and economic development if the First Nation would appear to be pro-mining. So that was an inducement that led to that,” says Kempton, who adds that splitting the project into three segments with different processes is “immoral.”

Regional Assessment

Complicating the picture is the federal government’s commitment in February 2020 to conduct a regional assessment (RA) of the ecologically sensitive region of boreal forest and peatlands. The request was made by several parties, including Aroland First Nation, one of 34 First Nations in the region. Regional assessments are a new option under the 2019 Impact Assessment Act. Only one RA – for offshore oil and gas drilling in Newfoundland – has been completed so far. One of the key goals of an RA is to examine the potential cumulative effects of development in an area – something that project level assessments can’t do – ways those impacts could be mitigated, and priority areas for further study. The process is also meant to incorporate Indigenous knowledge. But the process, which is still at the draft terms of reference (TOR) stage, is off to a rocky start. The First Nations chiefs that declared a moratorium on development last year say the draft TOR – which will govern the scope of the assessment and the way it is conducted – was drawn up by the federal and Ontario governments with little input from First Nations. “The Impact Assessment Agency of Canada has breached the honour of the Crown ... and the project of reconciliation and decolonization by acting with duplicity behind our backs in collaboration with Ontario, to render the (RA) little but political puffery, with mere token First Nation ‘involvement,’ narrow in its focus and weak in its result,” they said in a statement. Instead, the chiefs want an RA process that is co-led by a new Indigenous governing body composed of affected First Nations. They also believe the scope of the assessment needs to encompass a much larger area than proposed in the draft.

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First Nations communities have until Mar. 2 to comment on the draft terms of reference. Soon after, if the federal Minister of Environment and Climate Change Steven Guilbeault approves the document, an independent committee would be formed to conduct the RA. The committee would have 18 months to complete its work. So far, the federal government doesn’t seem inclined to start the process over. While the Impact Assessment Agency has encouraged communities to nominate committee members, it recently told TVO.org that only groups currently defined as “jurisdictions” under the IAA can be signatories to a regional assessment agreement. While the agency said it is developing regulations to broaden that definition, it told the news organization that the process would not be completed before the Ring of Fire RA begins. However, there have been Indigenous-led project-level environmental assessments in B.C. And Kempton says that should be the case for regional impact assessments under the IAA as well. “The federal Impact Assessment Act allows for agreements with Indigenous governing bodies and those agreements could and would provide for co-leadership – the Crown and a group of First Nations who are affected would co-lead a regional impact assessment and make decisions mutually,” Kempton said. “Canadian law allows for it. Our opinion is Canadian law requires it, based on the legal principle of reasonableness. Essentially, it would be unreasonable to not use the mechanism from Canadian law to require this to happen here – a co-First Nation-led regional impact assessment that is also broad and thorough and comprehensive in scope.” Kempton says the James Bay Lowlands, as the second largest peatlands in the world, are globally significant as a carbon sink, so it’s imperative to make informed decisions about development there. “Peatlands are five to fifteen times more effective than forests at sinking carbon, so if we lose them to mining, we lose a critical defence against worsening climate change,” she says. “But also, if they’re radically disturbed or destroyed from mining, all of the carbon that is currently sunk there will be released into the atmosphere and that could be a tipping point that leads to a domino effect into catastrophic irreversible climate change. “We have to get this right. We have to understand potential direct and cumulative impacts of any development up there because the risks of catastrophe are far too great if you get it wrong.” For his part, Marten Falls Chief Achneepineskum is participating in the regional assessment process, but says he has no objection to an Indigenous co-led RA process. He also points out that the Marten Falls EA is Indigenous-led. Discussing the community road project specifically, he said: “There’s a lot of discussion on the environment, pollution and far-reaching effects. There’s a lot of fear mongering that’s happening, but in the end, we have to base our own analysis and our own decisions on actual facts and science. And that’s what we’re trying to do with our environmental assessment is come up with good studies and a good project that will answer all those questions. Hopefully the regional assessment will also do the same thing.” CMJ

www.canadianminingjournal.com

MINING IN ONTARIO

> By Norm Tollinsky

Why Northern Ontario remains

MINING CENTRAL Vale South Mine headframe.

CREDIT: MARIE FJORDELL

Investment, innovation fuel growth in Sudbury-North Bay mining cluster

his year’s annual U-Haul Growth Index, which tracks the net gain of one-way U-Haul trucks arriving in a Canadian city, ranked North Bay, Ont., as the country’s leading growth city for the second year in a row with Sudbury following close behind in third place. Covid-19 and skyrocketing housing prices in the Greater Toronto Area certainly had something to do with it, but both cities owe much of their appeal to the economic impact of northeastern Ontario’s mining cluster. Vale and Glencore’s Sudbury Integrated Nickel Operations (SINO) are both in the midst of major new mine developments, gold and nickel prices are high, drills are turning and new mines are ramping up across northern Ontario, suppliers are on a roll and Sudbury in particular has emerged as one of the country’s most important hubs for mining-related research and innovation. SINO is advancing its $1.3 billion Onaping Depth project and is in the midst of sinking an internal shaft to a depth of 2.6 km from surface. Scheduled to begin producing ore in 2024 with mine completion projected for 2025, Onaping Depth will also serve as a showcase for leading edge technologies, including FEBRUARY/MARCH 2022

mine-wide LTE communications, teleremote and autonomous equipment operation, and the deployment of battery electric vehicles. “Onaping Depth is a step change into a depth we haven’t mined previously,” said Glencore vice-president Peter Xavier. “It unlocks that opportunity going forward which is where our future lies given that all of the near-surface deposits in the Sudbury Basin have been mined out. It opens another horizon of exploration opportunities for us.” Advances in geotechnical understanding, seismic monitoring, predictive modelling and new technologies like battery electric equipment “have given us confidence that we can safely mine at those depths,” he added. An extension of Nickel Rim South that overlaps Vale’s Victoria property will be in position for project approval as a joint venture by the end of 2023, while Moose Lake, another orebody at depth is close enough to Glencore’s Fraser mine to leverage existing infrastructure. Yet another opportunity at depth is Norman West, described by Xavier as “one of the largest undeveloped orebodies in Sudbury.” CONTINUED ON PAGE 40 CANADIAN MINING JOURNAL | 39

MINING IN ONTARIO

Komatsu’s MC51 Dynacut mechanical cutting machine is being tested at Vale’s Garson mine. CREDIT: ANDY CHARSLEY

Vale turns page on tough year

Meanwhile, Vale is in the final stages of completing its $900-million Copper Cliff South project with plans for first ore production later this year. “It’s going to be a significant mine in our portfolio and we will be relying on it heavily for the long term,” said Gord Gilpin, head of the company’s Ontario operations. The Copper Cliff operation, like all of Vale’s other four mines in the Sudbury Basin, is equipped with mine-wide LTE and is trialling electric vehicles. “LTE enables us to see into our operations in real time, which will help us with decision-making, quicker understanding of where we have problems and how to best go about solving them,” said Gilpin, who assumed his current role in January. The year 2021 was challenging for Vale with production disrupted by a two-month strike, the ongoing pandemic and the shutdown of Totten mine in September, when a scoop bucket being sent underground detached and blocked the mine shaft, trapping 39 miners for three days. (All were safely rescued.) However, Gilpin is optimistic about 2022 with Totten back in production as of mid-to-late February, Copper Cliff South expected to begin producing ore in the second half of the year, and nickel prices in favourable territory. At its Garson mine, Vale is also trialling Komatsu’s MC51 Dynacut mechanical cutter and assessing its potential to replace traditional drill and blast technology in hard rock mines. “It’s an exciting project and from a high level, we see promise there. But the equipment is complex, and it’s going to take more work and testing to get to a point where we are able to draw some serious conclusions,” Gilpin said.

Thriving mining supply sector

Meanwhile, the mining supply sector in Sudbury and North Bay is firing on all cylinders. MineConnect, an association of mining suppliers in northern Ontario, has more than doubled its membership to 209 companies since 2018, and in December, opened an office in Elko, Nev., to better serve the mines in this important export market. Strategic Development Officer Sheena Hansen has been hired to manage the office and work with the first 10 northern Ontario suppliers to enrol in the program. Shaft sinking at the Onaping Depth project at Glencore’s Craig mine. The shaft will extend deeper than Glencore has previously mined in Sudbury, to a depth of 2,630 metres. CREDIT: ALEX HALL/GLENCORE

40 | CANADIAN MINING JOURNAL

www.canadianminingjournal.com

NORCAT’s underground test mine. The innovation centre recently added a 15,000-sq-ft. surface building to its facilities. CREDIT: NORCAT

“It was a no-brainer to select Nevada because a number of our suppliers have established relations in this market,” said MineConnect executive director Marla Tremblay. “Every time we survey our members and ask what markets they’re interested in, the Nevada market always tops the list.” The cluster’s appeal as a location for mining supply companies was confirmed by Epiroc’s opening of a 22,000-sq.-ft., stateof-the art component remanufacturing centre in Sudbury last year. The new facility will recycle powertrain components for underground equipment from Chile, Mexico, the U.S. and Canada. According to reman centre plant manager Brian Bernier, Sudbury is an ideal location because of its “skilled talent pool of qualified technicians and generations of Sudburians who have worked in the mines.” North Bay, home to Redpath, Cementation, Foraco, Boart Longyear, Miller Technology and a number of other mining suppliers, welcomed the addition of Norgalv, a $21-million, state-of-the-art galvanizing plant at the city’s Airport Industrial Business Park. North Bay was selected by the plant’s South African investors as an ideal location to serve the region’s mining suppliers and steel fabricators, which had to rely on shipping product to southern Ontario in the absence of a northern Ontario galvanizing plant. “It’s great to see something like this in the north,” said Roy Slack, former president of Cementation and past president of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). “North Bay is an integral component of the northern Ontario hub supplying the global mining industry and Norgalv is a welcome addition as there are many applications for galvanizing in the mining industry. “Cementation has a lot of work on the order book and the drilling industry is hiring, which is always a good sign,” added Slack. FEBRUARY/MARCH 2022

Innovation ecosystem

The cluster has also evolved as one of Canada’s most important hubs for innovation and prototyping. In July, for example, the Centre for Excellence in Mining Innovation (CEMI) received a $40-million allocation from Industry Canada’s Strategic Innovation Fund to establish the Mining Innovation Commercialization Accelerator Network (MICA). Headquartered and managed from Sudbury, MICA is tasked with identifying and commercializing made-in-Canada solutions for the mining industry by working with the Bradshaw Research Initiative for Minerals and Mining in British Columbia, InnoTech Alberta, Saskatchewan Polytechnic, MaRS, le Groupe MISA in Quebec and the College of the North Atlantic in Newfoundland. MICA is in the process of onboarding companies interested in participating in the five-year project and was scheduled to issue a call for proposals in February for projects able to improve productivity, reduce greenhouse gas emissions, mitigate environmental risk and advance the development of smart, autonomous mining systems, said Charles Nyabeze, CEMI’s vice-president of business development and commercialization. NORCAT, the only innovation centre in the world with its own underground mine, cut the ribbon on a new 15,000-sq.-ft. surface building with meeting rooms, offices, and men’s and women’s dry facilities for companies using the mine to develop, test and showcase emerging mining technologies. From Sept. 26-29, the expanded complex will host the world’s first technology exhibition in an underground mine. “We will be inviting emerging technology companies from around the world to install their solutions at the NORCAT Underground Mine so they can connect with delegates from global mining companies and enable transactions to get done,” said NORCAT CEO Don Duval. CONTINUED ON PAGE 42 CANADIAN MINING JOURNAL | 41

MINING IN ONTARIO NORCAT also operates its Open Innovation Platform, a portal designed to expedite technology adoption in the mining industry by connecting the builders and buyers of technology, said Duval. The initiative began with NORCAT posting some of Vale’s challenges and opportunities and inviting technology companies to propose solutions using new or existing products. With two years under its belt, NORCAT has refined the program and is expanding it to include the global mining community. Also focused on mining innovation in Sudbury is Cambrian College’s Centre for Smart Mining, a technology access centre funded by the Natural Sciences and Engineering Research Council of Canada. “The Cambrian College’s Centre for Smart Mining is part of northern Ontario’s mining innovation ecosystem. Centre for Smart Mining serves mining CREDIT: CAMBRIAN COLLEGE technology companies with ideas they’d like to see go into the mining industry,” said Centre for Smart Mining manager Stephen Gravel. “Typ- Earth Sciences and the Bharti School of Engineering’s Departically, they don’t have their own R&D capabilities, so they use ment of Mining Engineering both lost several faculty members, our teams of faculty, students and researchers to respond to the forcing remaining professors to increase their teaching load. While there are still some concerns about the impact on the technology needs their customers are expressing.” The centre typically averages between 15 and 20 projects per university’s reputation, strong demand for geologists and minyear and boasts a so-called “maker’s space on steroids” with ing engineers is expected to keep enrolment close to historical big water jet cutters, five axis CNC machines, large volume 3-D levels. “The mining sector has traditionally been, and certainly will printers and a fully equipped electronics shop for prototyping continue to be, a significant area of focus for us,” said Laurenpurposes. Laurentian University, Sudbury’s other post-secondary insti- tian University president Dr. Robert Haché. “We take great tution, plays a critical role in the region’s mining cluster as one pride in the work we’ve done in this space and continue to view of Canada’s pre-eminent academic institutions with its geology the mining industry as an integral part of what makes Laurenand mining engineering programs. Unfortunately, in Febru- tian unique.” CMJ ary 2021, the university filed for insolvency under the Companies Creditors’ Arrangement Act, which led to the dismissal of Norm Tollinsky is a freelance journalist and former editor of 100 professors and dozens of programs. The Harquail School of Sudbury Mining Solutions Journal.

RECONCILIATION, CONTINUED FOM PAGE 18 CMJ: You flagged a really interesting trend in in the book of Indigenous-led environmental assessments. This is a still a very new area, but what do miners need to know about this? MM: For quite some time there’s been increased involvement of Indigenous people in the assessment of the economic and environmental effects of projects. It’s mostly being led out of B.C., but it’s also happening in other places where you’re seeing provincial or federal processes being either amplified or even almost replaced. There are only a few jurisdictions that are moving in that direction so far, but I would expect over the next 10 years it’ll become much more common.

42 | CANADIAN MINING JOURNAL

The Squamish First Nation on the West Coast of B.C. did their own environmental assessment on the Woodfibre LNG project that was being proposed in their territory in 2019. The Tahltan Nation is moving rapidly in that direction, and there’s lots of other discussion in that regard. We don’t know exactly how this is going to play out but the trend is real. We do not see the essential science and methods of doing an EA changing, but the questions that are being asked, how the Indigenous community is involved in the review and the process that is to be followed will evolve. Procedurally, it may affect timelines, it could be a little bit more expensive and complicated. Hope-

fully though, where these assessments are Indigenous-led, or where they have their own parallel process, the projects will have a higher degree of certainty and support at the end, which could be a real positive. CS: The government has been tasked with implementing UNDRIP in B.C. and now across the country. Having these processes in place where there’s true engagement and consensus-making forums I think will help the process in the long term. There may be ups and downs, but as far as I can see to date, it’s been super positive and the communities have a voice at the table with respect to their land, which is huge. CMJ

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FEBRUARY 2022 | VOLUME 3 | ISSUE 2

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