Canadian Mining Journal June 2019 by The Northern Miner Group

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PLUS SPECIAL REPORT

RECLAMATION & CLOSURE Cleaning up GIANT mine

JUNE/JULY 2019 | www.canadianminingjournal.com | PM # 40069240

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CANADIANMINING

JUNE/JULY 2019 VOL. 140, NO. 5

JOURNAL

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FEATURES

14 Tax changes irk saskatchewan potash miners. CANADIAN MINING JOURNAL

RECLAMATION & CLOSURE 19 A look at the cleanup plan at one of Canada’s most notorious abandoned

mine sites, Giant.

24 Veolia outlines water treatment considerations at abandoned mines.

EQUIPMENT MAINTENANCE & REPAIR 28 Petro Canada Lubricants shares tips for selecting the right engine oil for heavy duty mining equipment.

3 2 Advice for miners on how to improve maintenance practices.

36 Protecting your drill rig from Mother Nature.

DEPARTMENTS 4 EDITORIAL |

Giant mine’s staggering numbers.

Chad Norman Day, Tahltan Central Government president, discusses why the Tahltan helped create the British Columbia Regional Mining Alliance.

5 FIRST NATIONS |

6 LAW |

Kellie Johnston and Benedict Wray of Norton Rose Fulbright outline the impacts of modern slavery legislation on mining.

ABOUT THE COVER

8 UNEARTHING TRENDS | EY Canada’s Meghan Harris-Ngae on

Coming in August Canadian Mining Journal ’s annual Top 40 issue will include our New Mining Technology supplement, a review of Canada’s top development projects, and a feature report on energy management.

climate-related risks and disclosure for mining companies.

9 CSR & MINING | Karim-André Laz of LKL Consulting discusses how companies should approach security and human rights. 11 FAST NEWS | Updates from across the mining ecosystem.

www.canadianminingjournal.com JUNE/JULY 2019

This month’s cover supplied by Petro Canada Lubricants.

For More Information

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

CANADIAN MINING JOURNAL |

FROM THE EDITOR JUNE/JULY 2019 Vol. 140 – No. 5

CANADIANMINING A giant environmental legacy Alisha Hiyate

The numbers are staggering. In six decades of gold production, the Giant mine, near Yellowknife, N.W.T., yielded more than 7 million oz. – and 237,000 tonnes of toxic arsenic trioxide dust. The arsenic trioxide waste, produced in the roasting process to liberate the gold from the arsenopyrite ore, remains stored onsite in underground chambers. The cleanup bill, which will be fully funded by the federal government, was last estimated at $600 million. But that figure is sure to rise, now that the reclamation and closure plan has been finalized. That plan has been a long time coming. The mine’s last owner, Royal Oak Mines, went bankrupt in 1999. The original reclamation and closure plan was completed in 2007 before being referred to an environmental assessment, a process that was only completed in 2014. Since then, the Giant mine remediation team has been working on incorporating the changes (both mandated and suggested) that came out of the EA. This spring, the team re-applied for a water licence, which is required to complete the remediation work. If the licence is granted, work on final remediation could begin in 2021. In the meantime, care and maintenance for the site costs about $15 million per year. As the arsenic trioxide waste is water soluble and is stored underground, water must constantly be pumped out of the mine to avoid contamination. Some remediation work has already been completed at Giant – emergency items such as dismantling the roaster complex on site. But even once the project gets the permits it needs to execute the reclamation and closure plan, it won’t be the end of the story. That’s because a permanent solution to securing the arsenic trioxide waste does not yet exist. The chosen frozen block method will see the waste remain underground, using thermosyphons to keep the ground frozen passively (see page 19). “This is not considered a permanent solution, but it’s the best solution we have right now,” Natalie Plato, deputy director for the Giant Mine Remediation Project told CMJ in May. “In the meantime, we are funding the Giant Mine Oversight Board to do research into a permanent solution.” These days, mines are required to put up securities that would cover the cost of reclamation in the case of bankruptcy. That is as it should be. But as long as we’re still contending with the environmental consequences of abandoned projects like Giant, the industry will find itself wrestling with their powerful legacy. CMJ 4 | CANADIAN

MINING JOURNAL

225 Duncan Mill Rd. Suite 320, Toronto, Ontario M3B 3K9 JOURNAL Tel. (416) 510-6789 Fax (416) 510-5138 www.canadianminingjournal.com Editor-in-Chief Alisha Hiyate 416-510-6742 ahiyate@canadianminingjournal.com Twitter: @Cdn_Mining_Jrnl

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News Editor Marilyn Scales CANADIAN MINING JOURNAL mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Advisory Board David Brown (Golder Associates) Michael Fox (Indigenous Community Engagement) Scott Hayne (Redpath Canada) Anthony Moreau (Iamgold) Gary Poxleitner (SRK) Manager of Product Distribution Jackie Dupuis 403-209-3507 jdupuis@jwnenergy.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales, Western Canada George Agelopoulos 416-510-5104 gagelopoulos@northernminer.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-800-387-2446 ext 3505 Group Publisher Anthony Vaccaro Established 1882

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

and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining. BIG is located at 225 Duncan Mill Rd., Ste. 320, Toronto, ON, M3B 3K9. Phone (416) 510-6891. Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must ﬁrst obtain the permission of the owner of the copyright. For further information please contact Robert Seagraves at 416-510-6891. Subscriptions – Canada: $51.95 per year; $81.50 for two years. USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST registration # 809744071RT001. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-387-2446 ext 3505; Fax: 403-245-8666 ; E-mail: jdupuis@jwnenergy.com Mail to: Jackie Dupuis, 2nd Flr. 816–55th Ave. N.E. Calgary, Alberta T2E 6Y4. We acknowledge the ﬁnancial support of the Government of Canada.

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FIRST NATIONS

What meaningful engagement and collaboration looks like By Chad Norman Day

he Tahltan Nation’s territory spans 95,933 sq. km of northwest B.C. or the equivalent of 11% of the province. Tahltan territory includes 70% of B.C.’s Golden Triangle – a world-class mining jurisdiction with a thriving mineral exploration sector. Our territory is home to three of B.C.’s 19 operating mines or their shared footprint, and to about 25% of B.C.’s exploration activities by expenditure. Mining has always been part of the Tahltan DNA. For thousands of years, Tahltans prospected and mined obsidian, copper, gold, jade, agate and other precious stones. They turned these resources into essential tools and an important trading resource. Obsidian artifacts have been found thousands of kilometres away, hinting at the immense trade network and its high value for tools and weaponry. In the late 1800s, Tahltans supported miners during the gold rush and we have since evolved into a sophisticated mining Nation. As the president of the Tahltan Central Government, I am responsible for issues relating to the title and rights of the Tahltan Nation. Unequivocally, the Tahltan Nation expects that our distinct title and rights are respected, which includes among other things, meaningful engagement and collaboration. The UN Declaration on the Rights of Indigenous Peoples, the Truth and Reconciliation Calls to Action, and the Canadian courts reinforce this obligation: meaningful engagement and collaboration with Indigenous peoples is no longer an option for exploration and mining, it is a requirement. What does meaningful engagement and collaboration with the Tahltan Nation look like? For the Tahltan Nation, it means that potential project proponents interested in doing business in our territory engage us by introducing their project from the outset, discussing how to include us in project planning, and exploring with us how our Nation will be involved. More speciﬁcally, the Tahltan Central Government has developed an early engagement protocol whereby a communications agreement, opportunity sharing agreement, and exploration agreement must be signed for each project in our territory. Each agreement applies to a different phase of engagement and collaboration during project development. Together, the agreements begin the process of building a positive and mutually beneﬁcial relationship with the Tahltan Nation. With that said, meaningful engagement and collaboration are not one way; indeed, it is incumbent upon First Nations to JUNE/JULY 2019

also meaningfully engage and collaborate for mutual benefit. That is why the Tahltan and Nisga’a Nations, together with the province, the Association of Mineral Exploration (AME), and select exploration companies (Dolly Varden Silver, GT Gold, IDM Mining, and Skeena Resources) have formed the British Columbia Regional Mining Alliance (BCRMA). Officially launched in May 2018, the BCRMA is a collaborative partnership that welcomes the opportunity to share its success stories from grassroots exploration, through operations, from the perspective of all partners. Industry partners selected to join the Alliance must focus on socially and environmentally responsible resource development rooted in local partnerships. Together, the BCRMA is working to combat negative stereotypes and promote mining investment in the Golden Triangle, an area with vast resource potential. Just last year, the Alliance sent a delegation to the U.K., where we spread the message that we are open to discuss further business opportunities and investments into BCRMA companies. This year we are planning more international outreach and engagement. Although in its infancy, the BCRMA is an example of what meaningful engagement and collaboration should be. It showcases that First Nations, the provincial government, and mining and exploration companies can and should be working in collaboration to attract investment and mutually benefit from successful mineral exploration activities which, in some cases, will lead to future mining projects. Earlier this year, I met with B.C. Premier John Horgan who told me: “I am wholly supportive of the mining industry, I understand the potential, and want to see it unleashed as much as you do.” Only by working together can we unlock the vast resource potential of northwestern B.C. To succeed, the mining industry must adapt to modern times and work in partnership with the Indigenous peoples within whose territory they operate. Companies must recognize and respect the unique jurisdictions and title and rights of Indigenous peoples in B.C. and throughout the world. As long as our title and rights are respected through meaningful engagement and collaboration, and we consent to the area where industrial activities take place, the Tahltan Nation is open to projects and partnerships with neighbouring CMJ Nations, the province, and industry. CHAD NORMAN DAY is president of the Tahltan Central Government in British Columbia.. CANADIAN MINING JOURNAL |

LAW

Modern slavery legislation and the mining industry: expected impacts By Kellie L. Johnston & Benedict Wray

he emergence of modern slavery legislation in California, the U.K., France and Australia is giving the business and human rights area an increasing hard law dimension which affects businesses across the board, especially if their operations or supply chains encompass developing countries. Canada may be next to regulate modern slavery in global supply chains. If so, it will follow a global trend in legislative measures to eliminate modern slavery, responding to the 2012 United Nations Guiding Principles on Business and Human Rights, the global standard for corporate human rights obligations. Last October, the House of Commons Standing Committee on Foreign Affairs and International Development published a report highlighting that child labour remains widespread. In response, the February, the federal government committed to consult on possible supply chain legislation. Proposed legislation To date, there are two pieces of proposed legislation: C-423 – An Act respecting the ﬁght against certain forms of modern slavery through the imposition of certain measures and amending the Customs Tariff, a private member’s bill, and the draft Transparency In Supply Chains Act (TSCA) to be tabled in the Senate sometime this year. C-423 targets modern slavery, especially child labour. Subject to certain jurisdictional thresholds, it would apply to any entity that manufactures, produces, grows, extracts, processes or sells goods in Canada or elsewhere; imports into Canada such goods; or controls an entity described above. Such entities would be required to produce an annual report, including policies and steps taken to prevent and reduce the risk of forced or child labour, a list of activities that carry a risk of forced and child labour and remediation measures taken. It would include monetary penalties for non-compliance and an import ban for goods produced with child or forced labour. If passed, C-423 would come into force on Jan. 1, 2020. The TSCA provides four mechanisms to combat modern slavery: a reporting requirement for qualifying entities; a duty of care for all businesses that meet an annual turnover threshold; the creation of an ombudsperson and compliance committee; and mechanisms to receive and investigate disclosures of modern slavery from whistleblowers. The duty of care provisions are potentially far-reaching, in that they would establish a legal responsibility to take reasonable steps to avoid the use of modern slavery in a business’s overseas operations. 6 | CANADIAN

MINING JOURNAL

Both C-423 and the TSCA’s requirements apply to resource companies and would require reporting, provide penalties and may, in the case of the TSCA, establish a positive duty of care to avoid the use of modern slavery in mining operations. Existing modern slavery disclosure requirements On Sept. 14, 2018, the securities regulator in Quebec (the Autorité des marchés financiers or AMF) published guidance to public companies on modern slavery disclosure requirements. The AMF’s guidance highlights existing disclosure requirements in the continuous disclosure documents of issuers and sets out AMF staff expectations. It does not modify existing legal requirements or create new ones. However, the AMF provides comprehensive guidance in response to international regulatory developments. The AMF asks issuers to consider materiality and whether the nature of their business requires them to disclose risks related to modern slavery and risks affecting their supply chain in continuous disclosure documents. In this regard, AMF lists litigation risks, regulatory risks, reputational risks and operational risks. Further, and importantly, the guidance states that boards of directors, audit committees and certifying officers should ensure that the disclosure in documents filed under securities regulations is consistent with management’s assessment of the materiality of modern slavery-related risks. The AMF is the first securities regulator in Canada to specifically address and provide guidance for modern slavery disclosure. Resource companies need to consider materiality of risks posed by modern slavery as well as risks affecting their supply chain in terms of reputation, litigation, regulatory and operational risk and report, in compliance with the AMF guidance, if these risks are deemed material. Implications for Canadian resource companies While the details of any final legislation remain to be seen, it is important that Canadian resource companies and their counsel are aware of the potential impact on their business, especially if their operations or supply chains encompass developing countries. Companies need to consider the potential impact on their business and operations now in order to assess risk and prepare CMJ for reporting and potential duty of care requirements. KELLIE L. JOHNSTON is Of Counsel, business law at Norton Rose Fulbright and BENEDICT WRAY is an associate.

www.canadianminingjournal.com

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UNEARTHING TRENDS

Measuring and disclosing the financial impact of climate-related risks By Meghan Harris-Ngae

ttitude shifts from institutional investors and activist shareholders are putting pressure on mining and metals companies to effectively evaluate and communicate where they stand as it relates to environmental, social and governance risks. Climate change concerns, in particular, are growing. No sector is immune to climate-related risks. The Canadian mining and metals sector has already experienced challenges from increasingly intense and frequent weather events, higher precipitation and warmer temperatures. Heavy rains have flooded access roads, warmer weather has impacted the efficiency of workers and equipment and lower water levels have led to fewer shipping loads. Our environment will only continue to shift unpredictably, which is why companies need to address the financial impact these scenarios will have on their business. Recommendations outlined by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) are becoming the global standard to drive these conversations. The increasing level of shareholder activism is also pushing companies operating in high-risk sectors, like mining and metals, to pay closer attention to their disclosures and familiarize themselves with the TCFD recommendations. Miners have started to disclose climate-related risks, but there’s still room for improvement. EY analysis finds that reporting Scope 1 and 2 GHG emissions, and targets aimed at reducing these emissions, are the most commonly disclosed climate metrics. Although metrics and targets relating to these emissions provide insights into the direct contribution a company is making to mitigate climate change, they do not allow investors to understand whether these are the most material climate impacts associated with their value chain. Put simply, there’s still a disconnect between disclosing the approach to climate-related risks and materializing the greater financial risks posed by them. The challenge is that effectively translating climate risks into quality, quantified financial impacts isn’t easy. Attempts at climate scenario analysis to inform the quantification of the potential financial impacts are challenged by a lack of localized climate impact data. Plus, there are few agreed upon methods and tools to aggregate impacts at the corporate and/or investment portfolio level. 8 | CANADIAN

MINING JOURNAL

Organizations need to start by taking a step back and developing a clear understanding of the range and magnitude of climaterelated financial impacts by conducting scenario analysis that reflects both physical and transitional risks. Where to start? Organizations need to start by taking a step back and developing a clear understanding of the range and magnitude of climate-related ﬁnancial impacts by conducting scenario analysis that reflects both physical (changes in the physical climate that may impact future business activities) and transitional (changes in the economy, including growth impacts, sector re-weighting and other macroeconomic factors) risks. That spans everything from energy costs and carbon regulation to temperature rise and flooding. And make sure to implement cross-function engagement with ﬁnance, risks, sustainability and environmental departments in the process. Where should disclosures go? Given these are forward-looking and not historical disclosures, the TCFD recommends these sit within the Operating and Financial Review — where companies set out business strategies and prospects for future analysis, or in separate sustainability reports. Disclosing this information not only addresses the TCFD recommendations, but also provides companies with the new inputs into business strategy and planning, which enhances internal capability and processes. Although not mandatory yet, Canadian mining and metals companies should treat the recommendations as so. We’re two years into the process and it will likely take several more before organizations are in the position to generate valuable data for investors. However, the earlier companies embark on this journey, the better positioned they will be to engage with investors and shareholders on the impacts and opportunities climate change presents. CMJ MEGHAN HARRIS-NGAE is the EY Western Canada Climate Change and Sustainability Services Leader. She is based in Calgary. For more information on TCFD, visit ey.com/ca/ sustainability.

www.canadianminingjournal.com

CSR & MINING

Thinking differently about security and human rights By Karim-André Laz

ining companies have to address multiple security challenges that are rooted in the complex environments in which they operate. These challenges may include ethnic conflicts, disputes between communities and indigenous peoples over natural resource management, violence committed by non-state armed actors, or poor socioeconomic conditions that can affect the security and productivity of the company’s operations. In this context, the mining sector has traditionally sought to meet these challenges by deploying a variety of hard security measures, like armed security personnel. Unfortunately, where these measures are implemented, new risks often emerge. In particular, human rights risks can be caused by excessive use of force, violations of individual freedoms and, in extreme cases, gender-based violence. In the last two decades, governments, investors, consumers and civil society organizations have pressed mining companies to ensure greater respect for human rights in their activities and relationships. As part of the government of Canada’s Enhanced Corporate Social Responsibility Strategy to Strengthen Canada’s Extractive Sector Abroad, companies are expected to commit to and implement the Voluntary Principles on Security and Human Rights (VPSHR) in their operations abroad. Furthermore, the Mining Association of Canada requires its members to implement the VPSHR for operations abroad. This pressure has led mining companies to intensify their engagement with communities and to transform the management of their security operations. While many companies have now committed to the VPSHR, implementation often remains limited to human rights awareness activities given to security guards employed on sites. Human rights training is important, but it is by no means sufﬁcient to fully implement the VPSHR. VPSHR implementation implies greater transparency and proactive engagement with a variety of stakeholders, instead of simply focusing security efforts on building walls and using coercion. It requires that a company both share its expectations and use its leverage with host governments, including military and police forces, about the sensitive topic of human rights. There are several ways for companies to increase their leverage, including capacity-building and training, local multi-stakeholder initiatives or committees that support VPSHR implementation, and updating contractual arrangements with public and private security forces. Nonetheless, without an

JUNE/JULY 2019

effort to reconceptualize traditional definitions of security, these efforts may remain secondary to the overarching objective of safeguarding a company’s assets and personnel. A transparent and inclusive approach to stakeholder engagement Unless a company is committed to robust and ongoing engagement with stakeholders, VPSHR implementation may never go beyond the surface. Consulting all stakeholders effectively builds trust and allows a company to understand the sensitivities and dynamics of the local context, which can provide crucial information for the company’s security strategy. The risk assessment and due diligence aspects of VPSHR implementation both require meaningful engagement. It can take time and perseverance to build a sufficient level of trust to discuss security and human rights in an open manner, especially with communities that are not used to being consulted. Multistakeholder dialogue and engagement activities can range from adapting a company’s grievance mechanisms to be used for security concerns raised by communities, to the design of an early warning system for local conflict. Using leverage with host governments and public security forces Clearly sharing expectations about human rights and developing agreements with host government forces are other challenges for VPSHR implementation. Many companies struggle to influence the security practices of public security forces. VPSHR language can be inaccessible for local actors. Issues like the monitoring of force deployment, use of force and equipment transfers can easily be the subject of misunderstanding. This explains why company agreements with public forces often treat these topics superficially. It’s certainly not a company’s role to reform the public security forces of the country in which they operate. Nevertheless, companies must find ways to explain the VPSHR to host governments, including their benefit to all stakeholders. Addressing operational issues with potential impacts on human rights through security agreements can be a real opportunity for host governments. It can contribute to raising the profile of public forces. A company should constantly bring this forward while appealing to values such as “operational excellence.” In areas of CONTINUED ON PAGE 10

CANADIAN MINING JOURNAL |

conflict where human rights abuses are probable, security arrangements are the principal way for a company to use its leverage and set goals that ultimately will enhance the company’s social licence to operate. Reviewing the relationship with private security providers In many cases, the decision to implement the VPSHR occurs while mining operations are already underway. Companies should then revisit the mandate and scope of contractual arrangements with private security providers. If the existing contract does not include the VPSHR, a company should consider an addendum that references the VPSHR, the International Code of Conduct for Private Security Providers (ICOC) and other relevant standards. Moreover, full co-operation by the private security provider on all aspects of VPSHR implementation should be required. Defining security in a manner that includes human rights For many mining companies, deepening their implementation of the VPSHR starts with the way they conceptualize security itself. Answering the question “what is security?” is often complex because security means different things to different people in different contexts. It involves thinking about security more

broadly and in a manner that explicitly includes human rights. This may seem contradictory to traditional approaches that are focused on the protection of company’s assets and personnel. Yet, having that discussion can help the company overcome the challenges posed in VPSHR implementation. It allows a company to use a deﬁnition of security that expands the type of security activities it will undertake to carry out its operations. The level of effort to consult stakeholders – particularly those considered to be a threat to a company’s operation – will vary depending on whether security is perceived as a means or a goal. Companies will be less inclined to use their leverage capacity on host governments if they conceive security as a responsibility of the state rather than society. Similarly, if a company is more attached to the protective aspect of security than its preventive dimension, it may miss the urgency to revise the mandate and the scope of a private security provider. By adopting a broader deﬁnition of security, a company ultimately gives itself more flexibility to implement the VPSHR. Although a clear consensus regarding security doesn’t exist, there is no doubt that adopting an inclusive approach would facilitate the mining industry’s path to the crossroads between security and human rights – a crossroads that seemed improbable not so long ago. CMJ

KARIM-ANDRÉ LAZ is the senior advisor on Security for Human Rights for LKL International Consulting Inc. and assists extractive companies in implementing the VPSHR in their operations. He has experience managing projects with police and military forces of countries around the world and is a former member of the Canadian Armed Forces.

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ConstruCtion AnD Mining serviCes

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www.canadianminingjournal.com

FAST NEWS • BLASTING |

Updates from across the mining ecosytem

Orica reaches 100M electronic detonator milestone

rica produced its 100 millionth electronic blasting systems (EBS) detonator on April 30, marking a milestone achievement for the company and the Brownsburg, Que., facility that produces the detonators. Orica is the world’s largest manufacturer of commercial explosives and innovative blasting systems, and its Brownsburg plant produces the full range of EBS systems for surface and underground operations, including i-kon, uni tronic, eDev and the world’s first wireless initiation system, WebGen. The safety and reliability of Orica’s EBS systems are the best in the industry, the products are designed to perform safely and reliably even under extreme conditions. Orica’s EBS detonators are specifically designed with multiple safety features that enable superior protection against high voltage electrostatic discharge which occur in lightning Initiating a blast using Orica’s i-kon detonator system.. CREDIT: ORICA strikes. These safety features were highlighted recently when an i-kon III detonator in the Hunter Valley The system provides for groups of in-hole primers to be wireregion of Australia was struck by lightning. The in-built safety lessly initiated by a firing command that communicates through features of i-kon performed as designed and did not result in an rock, water and air, removing constraints imposed by the un-intended initiation of the explosive column. requirement of a physical connection to each primer in a blast. Today, Brownsburg has expanded production to include WebGen is a critical pre-cursor to automation and Orica is WebGen, Orica’s game changing wireless technology. WebGen proud to be leading the re-imagination of the mining industry eliminates exposure to high risk activities and enables new min- through digital, automated blasting with products and solutions ing methods and blasting techniques capable of delivering faster like the BlastIQ platform, a cloud-based digital platform loading cycles, lower cost of production and improved, more designed to enable continuous improvement of blasting outflexible blasting reliability and management. comes through insights and data integration. CMJ

• DIGITAL IoT |

Maestro launches Zephyr AQS air monitor

udbury’s Maestro Digital Mine launched its latest digital IIoT solution, the Zephyr AQS at the recent CIM convention and trade show. The Zephyr AQS is a compact, low cost environmental air quality monitoring station for underground mines. The Zephyr AQS is an IIoT device that connects directly to an industrial network without the requirement of adding an expensive and complex programmable logic controllers (PLCs) and several analog based instruments. Since it is a digital device, not only are the real-time environmental conditions JUNE/JULY 2019

reported back to surface via a single ethernet connection, but all the advanced diagnostic data is available, too, assuring maximum uptime. Michael Gribbons, VP sales and marketing, said at the launch, “The Zephyr AQS was developed to satisfy 75% of all the air monitoring requirements of a modern mine. Airflow rate, airflow direction, gas levels, barometric pressure and wet/dry bulb temperatures can be measured in real time, and now, affordably.” Using the Zephyr AQS can increase production, improve miner worker

safety and reduce energy by monitoring and controlling ventilation. Based on direct customer feedback, Maestro’s digital products save mining companies on average 40% to 60% of capex compared to conventional monitoring solutions. Like all Maestro’s solutions, the Zephyr AQS is a fully digital solution that can be plugged into a network switch without the requirement of an expensive PLCs, PLC cabinets and all the associated wiring, terminations, software and complex labour for integration into the network. CMJ CANADIAN MINING JOURNAL |

FAST NEWS • DRILLING |

Updates from across the mining ecosytem

Epiroc introduces next gen rig control system for blasthole drilling

piroc is proud to introduce the fifth generation of rig control system, RCS 5, the next step toward fully autonomous mining. Features include machine-to-machine communication, sharing real time drill plan updates between drills, auto tower angle and integrated camera view advanced awareness. Whether operating from a remote location or on-board the drill, the new and improved RCS 5 intuitive main menu creates a user-friendly experience that ultimately increases productivity. This new design allows the operator to focus on the task at hand and switch seamlessly between screens in a well-organized and dynamic environment. RCS 5 with the new function drill plan generator (DPG) allows for creating and editing drill plans on-board the rig or from a remote location quickly and easily. The new drilling data screen in RCS5 features real time depth and penetration rate feedback with histogram for easy in-hole monitoring. “We’re excited to continue our automation journey, pushing the limits in sustainable productivity. Launching the RCS 5 platform will allow our customers and partners to further advance their operations, saving valuable time and dollars while

Autonomous Epiroc Pit Viper drill rigs in action. CREDIT: EPIROC

increasing predictability and safety with either on board or autonomous operations,” says Tyler Berens, product line manager, automation at Epiroc Drilling Solutions. “Autonomous operations began with RCS 4: Wait until you see where we take it with RCS 5.” CMJ

Dundee introduces the CLEVR and GlassLock processes • TECHNOLOGY |

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Improved commercial certainty & port efficiency

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undee Sustainable Technologies has branded its primary patented technologies as the CLEVR (cyanide-free gold extraction) and GlassLock processes (arsenic sequestration) . Dundee’s precious metal recovery process, CLEVR, allows for the extraction of precious and base metals using sodium hypochlorite and provides a true cyanide-free alternative for the development of gold deposits. The primary benefits of the technology are: a short processing time (one to two hours); efficient gold recoveries; and closed loop operation (no liquid effluent), thus eliminating the need and environmental liabilities of a tailings pond. The technology produces a dry stacked, inert and stable cyanide-free tailing. It also treats refractory ores and handles base metals. The GlassLock process was designed as a method for the permanent stabilization of arsenic from numerous sources, including arsenopyrite and environmental remediation. It allows for the sequestration and stabilization of arsenic by incorporating it into a stable and insoluble glass matrix that can contain up to 20% arsenic while meeting or exceeding the requirements of the U.S. Environmental Protection Agency’s toxicity characterization leaching procedure and the synthetic precipitation leaching procedure. GlassLock is becoming an attractive technique to permanently stabilize arsenic, at significantly lower cost than alternatives such as scorodite for deposits or concentrates considered to contain arsenic concentrations too high to be exploited using conventional mining and processing methods. CMJ www.canadianminingjournal.com

• WATER MANAGEMENT |

Outotec introduces 2nd generation paste thickener

ailings dewatering and disposal is a challenge that every mining operation has to deal with. The Outotec 2nd Generation paste Thickener is designed to maximize underflow density regardless of challenging mineralogy and tailings feed rate variation. It enables consistent and efficient dewatering performance – even with changing process conditions. Through consistent performance and high underflow density, the 2nd Generation paste thickener maximizes beaching angle in the tailings storage facility to provide safer operations and maximized lifespan. The new paste thickener provides ease of operation and reliability for applications requiring a high degree of dewatering, such as minerals tailings, mine backfill, and pre-leach and CCD circuits. The technology is customized to address each operation’s unique drivers, which can include environmental concerns, water recovery, regulatory requirements, tailings management, or limitations on available land space.

The Outotec 2nd Generation paste thickener at Yara Siilinjärvi apatite mine in Finland. CREDIT: OUTOTEC

Outotec has a long history of developing paste thickeners as well as the design and delivery of large-scale paste thickening projects. This has given the company a deep understanding of the key aspects of high-density thickeners, including effective flocculation, dewatering, raking, prevention of rotating mud beds, process control, and the discharge of thickened solids. The 2nd Generation Paste Thickener builds on this proven performance with innovative new features. For example,

vertical load monitoring with the Smart Rake Lift system means the paste thickener is one of the only systems in the world that can detect early formation of rotating beds, enabling counteractions to be taken early. The system also monitors and actively adjusts the individual hydraulic cylinders to maintain alignment of the rake mechanism. Incorporating vertical load sensing with plant process data in the Outotec ACT Thickener Optimizer control system means that the solids inventory within the tank can be maintained to ensure a consistent underflow density, stable process, and improved overall thickener performance. In addition to mechanical improvements, process control has been further developed to stabilize and optimize performance. Outotec’s ACT Thickener Optimizer uses a multivariable controller to manage process changes and the associated delays in the response time of the thickener that can be challenging for traditional control systems. CMJ

Reinforcing Progress Follow us on You want to advance your operations efficiently. To improve safety. To minimise downtime and maximise productivity and performance. We have the people and the products for every challenge, and a supply chain you can rely on to deliver. Working alongside you, we help you progress towards your objectives – quickly, reliably, cost-effectively. Sturgeon Falls, ON – Sudbury, ON – Saskatoon, SK – Rouyn-Noranda, QC

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CANADIAN MINING JOURNAL |

MINING IN THE PRAIRIES

DISAPPEARANCE OF POTASH TAX CREDIT IRKS

Saskatchewan m By Alisha Hiyate

askatchewan is consistently rated as a top mining jurisdiction, ranking third globally in Fraser Institute’s 2018 ranking of global mining jurisdictions, second in 2017 and first in 2016. But Saskatchewan potash miners were caught off guard by the province’s latest budget, which eliminated deductions for potash production. The move, which came in March, and is expected to raise $117 million annually for the province, raised the effective tax rate on potash to 9.3% from around 6%. Nutrien, Canada’s largest miner by market cap, said it was “disappointed” with the change. “With these changes, Saskatchewan potash production will be subject to the highest royalty and tax rates in the world,” the company said in a statement to CBC News. “In recent years, the potash mining industry has incurred significantly increased costs and this is yet another step to reduce Canadian competitiveness.” Sarah Fedorchuk a spokesperson for Mosaic Co. said the move would have a material impact on the company, which has

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already been in cost containment mode because of subdued markets. Exploration for “Obviously, if we’re paying more tax we’re less profitable than we were other minerals prior to the announcement,” she said. in the province “Right now we don’t anticipate an recently got a impact on jobs, however it would defiboost with a new nitely give us pause to consider how and where we invest future dollars.” incentive. In a conference call in May, Mosaic’s senior vice-president and CFO Clint Freeland said the company expects the tax increase to raise the cost of goods sold by $35 million in 2019 and by roughly $50 million per year thereafter. While the move will hit potash miners’ bottom line, the biggest concern seemed to be the lack of consultation about the change. “K+S Potash Canada was disappointed that the province completed no consultation with the potash industry in making this unilateral decision and would have appreciated the opporwww.canadianminingjournal.com

n miners Mosaic Co.’s K3 potash mine. CREDIT: MOSAIC CO.

tunity to work with the province on the change in a fair and transparent way,” said Maeghan Dubois, manager, communications and corporate affairs for K+S Potash Canada in an emailed response to questions. “This decision adds to the already significantly increased costs in the industry, including the province’s recent application of PST to real property services, the implementation of a carbon tax, and the uncertainty with regard to regulatory regimes.” Fedorchuk said the lack of consultation was also a big concern for Mosaic Co. “I think that sometimes people forget that there’s potash deposits in a lot of places in the world,” she added. “We’re in a very competitive global market and a decision like this does impact our competitiveness.” While the government had been consulting with industry around potential changes to the potash royalty regime in 2015, those talks were cancelled in 2016 when potash prices took a dip. Fedorchuk says it would have made more sense to open that up again and consider the overall tax structure more holisJUNE/JULY 2019

tically than to eliminate the tax credit suddenly. The change was effective almost immediately, as of Apr. 1. That leaves potash miners with no time to plan for the increase in payments, said Ron Styles, executive director of the Saskatchewan Potash Producers Association. “The government has worked very well with us in the past and maintained a framework and environment that has allowed the potash industry to invest billions of dollars over the past decade,” he said in an interview. “We just want to make sure that that environment and the framework that makes us competitive on a worldwide basis is maintained and continued into the future.” Industry in recovery The potash industry is only starting to recover from a crash that brought prices down from US$900 per tonne at is peak in 2008 during the financial crisis to around US$200 in 2016. At presstime the spot price was around $265 per tonne. Styles says the sector is definitely not operating at full capacity. CONTINUED ON PAGE 16

CANADIAN MINING JOURNAL |

RECLAMATION & CLOSURE K+S Potash Canada’s Bethune mine. CREDIT: K+S POTASH CANADA / GREG HUSZAR

“We are coming out of a downturn in price that lasted for a while. I would say things are starting to improve – prices look like they’re going to move up marginally over the next couple of years but we’re definitely not talking about a return to price levels that we had seven or eight years ago.” Styles said the recovery is expected to be slow and uncertainty around trade and the global economy is also weighing on potash producers. While potash miners weren’t happy about the tax changes, there’s not a lot they can do in protest. The industry is important to the provincial economy – in 2017, Saskatchewan producers exported more than $5 billion worth of potash – their assets

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take a lot of capital to develop and then last for decades and decades, making any shift in capital slow moving. And Saskatchewan’s political stability and infrastructure beats the other top potash producing jurisdictions – Russia, Belarus and China. Saskatchewan finance minister Donna Harpauer indicated that the decision to eliminate the deductions was based on recent and expected growth in the potash industry. “Sales are projected to be up as well as price, and so that was our time to, I think, ensure that Saskatchewan people were benefitting from what is their resource,” she told the Star Pheonix. The tax consists of a base payment on production and then a profit tax. But Harpauer said that deductions over the years have “eroded” the base payment to very low levels. The elimination of the deduction is forecast to boost total potash revenue to $618.6 million next year, up 23%. Energy and Resources Minister Bronwyn Eyre said the effective rate had fluctuated between 3% in the ’90s to 18.5% in 2008 and 6% in recent years and that the recent change would achieve a balance of around 9%. About one-third of the world’s potash is produced in Saskatchewan at 10 mines owned by Nutrien, Mosaic Co. and K+S. Nutrien’s Vanscoy mine, for one, has seen recent layoffs. Meanwhile, BHP Billiton has still not given the go-ahead to complete its Jansen potash project, where it has already spent $2.7 billion over six years. It would need to invest more than $5 billion to bring the project to production. The Bethune mine, owned by K+S, came online in 2017 and was the first new potash mine in the province to be built in 40 years. The company invested more than $4 billion in its Bethune mine, which employs 450 people. Mosaic, which has three mines in the province, says that while the company is in a good position, it’s still in cost containment mode. Fedorchuk notes that the cost of doing business is higher in Canada than it is for companies in many other jurisdictions. “We spend a lot of time thinking of our environmental footprint, we pay really great wages and these are things that we are spending money on that our competitors aren’t,” she said. “So we have the most sustainable operations in the world and we’re competing against jurisdictions that might not have all of the regulations that we do.” www.canadianminingjournal.com

Diversification efforts Saskatchewan already has half of world’s potash reserves and a large uranium sector, which has also been hit by a prolonged slump in prices and demand. Exploration for other mineral resources in the province on the other hand, recently got a boost with a new incentive. Aiming to encourage mineral exploration and also diversify its mining sector, the province announced the Targeted Mineral Exploration Incentive, part of the province’s Mineral Development Strategy, in 2017. Starting in 2018-19, the incentive program aimed at base

Nutrien’s Vanscoy potash mine. CREDIT: NUTRIEN

metals, precious metals and diamonds, offers a rebate of 25% up to a max of $50,000 per company. The incentives are available for a defined area in east-central Saskatchewan which includes areas of base metals and gold production (Creighton and La Ronge) and existing diamond projects (Prince Albert). Other provinces already have mineral exploration incentives in place. The program was capped at $750,000, but the government says it has already started to pay off with more than $6.5 million in exploration spending planned for the targeted area. CMJ

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ADVERTORIAL

Climate change impact on abandoned mines Denison Environmental Services (DES) has been providing care and maintenance to the Denison Mines closed uranium mine sites in the Elliot Lake camp for over 20 years. During this time, we have observed progressive climate change and have needed to adapt our methods and operations to address the new challenges presented by climate change. Janet Lowe, General Manager of Denison Environmental said, “If there is one thing we have learned over the 20 years, it is that climate change has made the operation of the closed legacy mine sites unpredictable at best.” As with all closed or operating mine sites, water management on the sites and the control of water leaving the site is the priority. Over the past few years, we have experienced more occurrences of high winds, resulting in downed trees and power outages. Site access to operating treatment plants has been restricted due to road debris. Near record precipitation events (i.e. rain or snow) have created new challenges for water management operations and required additional resources and methods to ensure dam safety. On the other extreme, periods of dry hot weather can result in a decrease of water cover for tailings management areas. At Denison Environmental, we use an adaptive management approach to measure the success of the closed sites along with an effective care and maintenance strategy. DES has been able to identify issues early so that they can be investigated and resolved.

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www.canadianminingjournal.com

RECLAMATION & CLOSURE

A GIANT’s

LEGACY Remediation at Giant mine has a long way to go

The Giant mine, located just 5 km from the city centre of Yellowknife in the Northwest Territories, produced more than 7 million oz. of gold over its entire history, starting in the 1940s. Through the ore roasting process, the mine also produced an enormous amount of highly toxic arsenic trioxide dust. When the owner of the mine went bankrupt in 1999, the cleanup of the site fell to the federal government. If the project gets its water licence approved, full remediation could finally get under way in 2021 and be completed in 2030. CMJ spoke to Natalie Plato, deputy director for the Giant Mine Remediation Project in May about the site’s history and progress towards its remediation. Canadian Mining Journal: Tell us a little bit about the history of the Giant mine site. The mine began production Natalie Plato: in the ’40s and operated to 1999 and was one of the largest gold mines in Canada. But in

1999, the owner at the time, Royal Oak Mines, declared bankruptcy and walked away from the site at which time the federal government under DIAND (Department of Indian Affairs and Northern Development) took responsibility for the site. We had an interim operator, Miramar, and they operated the site for us until 2004. When they finished, they left the site and it officially became abandoned. At that time, DIAND, or CIRNAC (Crown-Indigenous Relations and Northern Affairs Canada) as we’re called now, developed a remediation plan and took responsibility for the remediation of the site. In 2007, we submitted our Closure and Reclamation Plan to the Mackenzie Valley Land and Water Board, outlining how we were going to remediate the site. CONTINUED ON PAGE 20

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CANADIAN MINING JOURNAL |

RECLAMATION & CLOSURE During that water licencing process, we got referred to environmental assessment by the City of Yellowknife, citing significant public concern. We were in an environmental assessment until 2014, at which point we came out of the EA with 26 measures and a number of suggestions that needed to be met before we could go back into the water licencing process. Since 2014, we’ve been working on meeting those measures and now we have resubmitted a post-environmental assessment information package to the Mackenzie Valley Land and Water Board, and re-initiated the water licencing process as of April 1.

CMJ:

Can you give us a little more context about the necessary remediation? How polluted is the site from more than five decades of gold production?

During the operation of the mine, one of the NP: byproducts of the mining process was arsenic trioxide. During the early days of the mine, the dust went up the stack and was left to settle where it may. Once they realized that this wasn’t an acceptable practice, they captured the dust and they piped it underground into old mining stopes or even purposebuilt chambers. There’s 237,000 tonnes of arsenic trioxide dust stored underground at Giant. That would be the main legacy pollutant, but as I mentioned, some of the dust did go up the stack in the earlier years, so there’s some surface contamination from aerial deposition of the dust as well, along with what would be more traditional tailings ponds – there’s four tailings ponds at site. And there are approximately 100 buildings and structures onsite as well.

CMJ:

Some rehabilitation has already taken place at the site. What has already been done and what is left to do?

Above: The Giant mine site. Far left: Dismantling the C-shaft in 2015. Left: Thermosyphons CREDIT: CROWN-INDIGENOUS RELATIONS AND NORTHERN AFFAIRS CANADA

We need a water licence to do the remediation so in the We submitted all the paperwork on April 1 of this NP: meantime, the site has been in care and maintenance NP: year, so we have the preliminary schedule from the and continuing to deteriorate. We have already addressed Mackenzie Valley Land Review Board, and if the schedule measures that were deemed high-risk and emergency measures. One of the biggest ones was the roaster complex, the building where the actual arsenic trioxide dust was produced. It was deteriorating very rapidly so we dismantled it. Obviously, that was a very contaminated building so it was done very carefully, under negative air pressure, fully wrapped from 2012-14. The waste is currently still stored at Giant until we can put it underground with the rest of the arsenic trioxide. That would be the main one that was done. A couple of the shafts, like the C-shaft head frame, the iconic structures of Giant, have been taken down as well.

CMJ:

Regarding the main remediation plan that you need the water licence to actually start on, where is the permitting process right now and how far away are you from actually starting work?

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doesn’t change, closing statements will happen in March 2020 and we anticipate we would have a licence sometime in the summer of 2020 and then we would start work in 2021.

CMJ:

What are you doing currently at the site?

Care and maintenance is the No. 1 item that we’re NP: continuing to do. We are continually pumping and treating water to keep the site safe and keep the surrounding

community safe. Right now we’re in the water licencing process so we’re doing some studies to advance the designs, for instance on the tailings, we’re designing our cover right now. We have some studies looking at what the tailings are made of and drilling in the tailings, but other than that, the work would be quite minimal. www.canadianminingjournal.com

ARSENIC TRIOXIDE To liberate the gold found in the arsenopyrite ore at the Giant mine, the ore had to be roasted at extremely high temperatures, which produced toxic arsenic-rich gas. Early on, much of that arsenic was released directly into the environment. In 1951 a Cold Cottrell Electrostatic Precipitator, which acted as a scrubber, was installed, removing a lot of the arsenic trioxide waste. As a result of adding a second scrubber – a Hot Cottrell Electrostatic Precipitator - to the roasting process in 1955, arsenic releases were further reduced from 7,400 kg per day in 1951 to 2,900 kg in 1956.

CMJ:

The water that you need to pump and treat, is this from the underground workings?

NP:

Yes, because we keep the water pump below the arsenic chambers, currently we are continually pumping water from the underground mine. We store it and we seasonally treat it and discharge it. If we didn’t do this, the mine would flood and the arsenic chambers would get water in them and there could be a potential release of arsenic trioxide.

In 1958, a Dracco baghouse was added to collect the waste, reducing airborne arsenic emissions to 52 kg per day by 1959. Over the years, that number would fluctuate up to 300 kg per day. Since the waste was collected instead of released, it needed to be safely stored. In the 1950s, scientists and government agencies agreed storing it in underground stopes and chambers was an appropriate, long-term solution. They believed that, when Giant mine closed permanently, the natural permafrost in the area would re-establish around the storage vaults and seal in the arsenic trioxide. – Adapted from www.giant.gc.ca.

CONTINUED ON PAGE 22

CMJ:

Planning for the remediation project started a long time ago – the plan was finalized in 2007, but how much has the plan changed since then?

When we resubmitted on April 1, we had to outline NP: what some of those changes were. I can highlight a couple. One of the ones we heard from stakeholders was regarding the eight open pits onsite. Originally, we had planned to leave them open, but we are now planning to fill them with solid material. Another big change was the tailings cover. We had originally proposed a vegetative cover, but hearing from stakeholders, there was a desire for a rock cover. All of the tailings ponds will have engineered rock covers.

CMJ:

As you mentioned, the biggest part of the rehabilitation project will be safely securing the 237,000 tonnes of arsenic trioxide dust underground. Can you describe the method that will be used and why it was chosen?

NP:

Sure. The methods to contain the arsenic trioxide were studied quite extensively – we looked at over 50 different options and the one that was chosen is called

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RECLAMATION & CLOSURE WATER TREATMENT The existing effluent treatment plant at Giant only operates seasonally, during the summer. Mine water pumped out of the underground mine goes to the Northwest Pond to be stored before treatment. Any surface water than needs to be treated is also pumped there and then to the plant for treatment; treated water is released to Baker Creek. The remediation plan includes the construction of a new and water treatment plant that would operate year round, remove more arsenic from the water, and release treated water into Yellowknife Bay.

the freeze, or the frozen block. It’s basically creating a frozen shell around all the chambers to keep water out and keep the dust contained. We looked at a number of ways to do that and the method we settled on is using a passive technology using themosyphons. Thermosyphons are a common technique to keep ground frozen in the north. It uses a tube charged with carbon dioxide that basically extracts heat from the ground using air temperature so it doesn’t require power and keeps ground frozen. It’s commonly used to freeze building foundations. So we’re going to use that to surround the rock around the chambers of arsenic trioxide dust to create a frozen block and contain the arsenic trioxide.

CMJ:

Is this a permanent solution?

Our project was given licence for 100 years and this is not considered a NP: permanent solution, but it’s the best solution we have right now. In the meantime, we are funding the Giant Mine Oversight Board to do research into a permanent solution.

CMJ:

Is there any concern about using this solution given the warming climate in the Arctic?

Certainly because it is using temperature, it’s something we have to fully NP: incorporate into our design. We do use the latest climate change predictions as well as obviously having contingency and room for changes, so it’s something

we’re continually looking at and modelling. We will also be monitoring the freeze at all times and we will have a presence on the site, so it’s something we can adapt to as well. We’re looking at ways we might be able to incorporate active freeze as contingency should it be needed. We’re certainly looking at all the climate change models and taking it into account in that design.

CMJ:

Parsons was awarded the lead contractor role for the project in 2018 – Can you outline what their responsibilities are vs. the Giant Mine Remediation Project team’s responsibilities?

Parsons is the main construction manager. They’re not performing any NP: of the work, they’ll basically be contracting the work for us. They’ll be advising us on how to package the work from a constructability lens as well as timing, help us manage all those contracts and make sure they’re appropriate to the work force. CMJ

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www.canadianminingjournal.com

ADVERTORIAL

IN MY MINE(D)

Presenting Closure Plans to Communities The typical mine closure plan is a lengthy report designed to meet all the requirements of owners and regulators, not to mention SRK’s numerous technical specialists. Is it any wonder that the average person has trouble forming a clear picture of the plan’s final results? For over ten years, SRK’s Vancouver staff have been working with clients to more fully engage community groups and other stakeholders in mine closure planning. Bridging the gap between the detail required by good technical practice and the clarity needed for effective dialogue is one of the key challenges. We won’t claim to have it all figured out yet, but we have developed one tool that seems to be helpful. We produce renderings using a program called 3DS-Max, formerly known as 3D-Studio. The 3D-Studio series is one of the premier animation platforms in use today for movies (Avatar, anybody?), video games, and other virtual modelling. SRK Vancouver staff has developed a workflow that allows the engineering drawings typically found in closure plans to be transformed into 3D-Studio models, and then rendered to

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produce individual pictures and even short videos of closed and reclaimed mine areas. The workflow is the key. Really anyone could do this, given enough time. But doing it with an efficient workflow makes it possible to see what the site will look like under many closure options, and that helps to truly engage community groups in the closure planning process. We used this type of graphics in a multi-day closure planning meeting with over 90 community participants. They helped to show people exactly what each option would leave behind for their children and grandchildren. Interestingly, even the veteran engineers and scientists in the room took great interest in these graphics. Maybe the innate 3D visualisation skills that we mining and geology types like to boast about are not quite as effective as we think? Or maybe it’s just that a picture really is worth a thousand … engineering drawings! Article by Daryl Hockley with recognition to Lucas Hockley and all project contributors.

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CANADIAN MINING JOURNAL |

RECLAMATION & CLOSURE

By David Oliphant & Alain Gadbois

Water treatment for abandoned mine sites

Why a water treatment strategy is vital

he process of dealing with â&#x20AC;&#x201C; or remediating â&#x20AC;&#x201C; a closed mine site can come with several key issues and challenges, especially from a water treatment perspective. To face up to these challenges, a range of innovative strategies and technologies has been devised and deployed around the world producing results that can be shared in Canada. Treatment challenges At the end of their productive working lives, it is vitally important to ensure that 24 | CANADIAN

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mines are managed in a manner that mitigates or eliminates any potentially adverse effects. In practice, this means that the owners of individual abandoned or closed mine sites often have a duty of care to protect the natural environment â&#x20AC;&#x201C; both in and around the area. They need to make every effort to eliminate the possibility of any negative impacts, which can include contamination of the surrounding land and surface watercourses, as well as the pollution of local groundwater supplies and drinking water aquifers.

In doing so, the deployment of an effective water treatment strategy is likely to form a key component for effective mine closure and reclamation. This is chiefly because contaminated water at closed mine sites can contain a range of harmful and toxic substances and dangerous chemicals, as well as metals such as cadmium, nickel, iron, copper and zinc. Such materials will tend to vary depending on the nature and location of the mine site. Furthermore, water at abandoned mine sites can be highly www.canadianminingjournal.com

Left: Veolia’s Actiflo technology providing total suspended solids removal at a remediation site in Ontario. Below: Closed mine in the UK operated and maintained by Veolia. CREDIT: VEOLIA

acidic, which can pose a dangerous threat to human, animal and plant life. pH adjustment There is a wide range of factors and issues to consider from a water treatment perspective when dealing with an abandoned mine or remediating and reclaiming a mine site. To begin with, many abandoned mines have been ‘orphan’ for a substantial period. The ﬁrst step for a project manager often centres on the process of obtaining appropriate basic JUNE/JULY 2019

information relating to the site. This part of the process is, in many ways, identical to that which would apply for any water treatment project – namely the speciﬁcation of the volume, composition and flow rate of the water to be treated, as well as the establishment of target objectives. Several key challenges may be encountered at this stage, including the fact that abandoned mine sites are commonly located in remote areas, with limited available space to carry out operations. Often project teams will be required to conduct activities in very cold – nordic – conditions with sensitive receiving streams. In addition to these underlying conditions, water treatment companies will also often be required to implement rapid solutions – perhaps in response to an emergency such as a damaged dam, or in order to expedite the restart of production activities at mine sites that are still economically viable. In many cases, such circumstances may imply a short treatment time – in some cases meaning that a water treatment company is only in situ at a site for around two years, and where package plants (in basic terms a ‘no concrete’ solution) becomes the basic offering. Moreover, the majority of mine remediation projects will also entail pH adjustment – or neutralization -– and the removal of metals and Total Suspended Solids (TSS). Overall toxicity removals will also have to be considered, as well as site specific targets, for example, relating to thiosalts.

Passive treatment In an effort to respond to the often complicated and challenging conditions prevailing at abandoned mine sites, a wide range of appropriate technologies and techniques have been developed globally. Many such techniques fall into the category of ‘passive’ treatment – which employs naturally occurring processes to neutralize waterborne acids and oxidize or lower metal contamination levels. In broad terms, passive treatment technologies can be divided into biological and geochemical categories. Biological technologies tend to be based on the activity of bacteria and may also deploy some form of organic matter to promote reduction in microbial sulphates and adsorb contaminants. Examples of dedicated passive treatment plants include constructed wetlands, vertical flow wetlands, and bioreactors – with many employing a combination of aeration, settlement ponds and reed beds to remove contaminants via natural chemical reactions, often with the assistance of bacteria that is naturally present in the mine water itself. Geochemical-based passive systems generally introduce materials that generate alkalinity, such as limestone, to mine water. An increasingly common passive geochemical approach is the use of Reducing and Alkalinity Producing Systems (RAPS), which entail the use of compost and limestone beds to raise pH levels and stimulate iron removal. Elsewhere, experimental and full scale containerized Vertical Flow Reactors (VFR) have been successfully deployed. In one example, the users of a VFR at an abandoned mine site in Finland have reported the removal of 95% of the iron and about 80% of the arsenic in the mine water. Active treatment Although passive treatments prove effective in many cases, their use is not always possible. In some cases, the extremely poor quality mine water will require some form of chemical or other active treatCONTINUED ON PAGE 26

CANADIAN MINING JOURNAL |

RECLAMATION & CLOSURE ment as the only viable solution. One notable technology is a ballasted clarification technology, which works by flocculating water with microsand and a polymer specially designed draft tube. The microsand enhances the formation of robust flocs and acts as ballast, significantly increasing their settling velocity. This patented Actiflo technology, developed by Veolia Water Technologies, is capable of delivering very low water metal concentration at parts per billion (ppb) levels (for example, 1 ug/L) in mine site effluent. Such technology has already been used for the treatment of contaminated water at a number of mine sites across the world. One example is at an abandoned mine site in Yukon, where a mobile version of the Actiflo system with a treatment capacity of 5,500 cubic metres/day was used for the emergency removal of TSS from water containing a high concentration of ferrous iron â&#x20AC;&#x201C; with the option of further upgrades to a solution

capable of removing metal and reducing toxicity if required. In this case, the system worked by oxidizing ferrous iron to ferric iron, which acted as the systemâ&#x20AC;&#x2122;s coagulant. One of the other novel solutions that Veolia has been implementing for decades focuses on the integration of biological treatments adapted to the particular set of issues faced at cold mine sites. This has demonstrated the use of very cold nitrification as part of its AnoxKaldnes Moving Bed Biofilm Reactor (MBBR) attached film process. Nanofiltration membranes Another solution that can be a part of the technology arsenal for abandoned mine water treatment are nanofiltration (NF) membranes. NF is often used to soften and remove organic matter, or synthetic organic matter. As well as having a lower power consumption than reverse osmosis, NF membrane applications typically operate at between 3 to 30 bar and can be used for processing large continuous

volumes of water. They have been successfully demonstrated at a remote abandoned nickel mine site in Quebec. Here, a pond was dewatered using a mobile nanofiltration system to remove more than 99.9% of the toxic thiosalts present in the water stream. Depending on toxicity levels, metals removal and pH adjustment needed for the water at the abandoned mine sites, different levels and configurations of water treatment technology will be needed. Owners of individual abandoned or closed mine sites have a duty of care and legal obligation to ensure a sufficient water treatment plan is in place. CMJ

David Oliphant is the vice-president of business development and Alain Gadbois is the vice-president of technologies at Veolia Water Technologies. They can be reached at david.oliphant@veolia.com and alain. gadbois@veolia.com.

SEVILLE 15-17 October 2019 Conference and Exhibition Centre (FIBES) www.mmhseville.com

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CREDIT: SCHRAMM

p28 p32 p36

TIPS ON ENGINE OIL SELECTION

HOW TO IMPROVE YOUR MAINTENANCE PRACTICES

PROTECTING YOUR DRILL RIG FROM THE ELEMENTS

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Photo: guvendemir, iStockimages.com

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TOP TIPS

FOR OIL SELECTION

Picking the right lubricant can help avoid downtime for heavy duty mining equipment By Brian Humphrey

ining equipment has many specialized requirements due to the significant power levels at which they operate. It is expected to perform at full capacity for 24 hours a day, seven days a week. Combining these factors with operations in some of the worldâ&#x20AC;&#x2122;s harshest conditions, the role of engine oil becomes a crucial factor in the reliability and performance of mining equipment. Working throughout these extreme conditions, lubrication is especially important to ensure the necessary equipment protection by minimizing metal-to-metal contact between moving components. This is particularly CONTINUED ON PAGE 30

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IT’S TOUGH TO EXTEND DRAIN INTERVALS TO 750 HOURS BUT NOT FOR DURON™ important during cold starts, which are a significant factor in contributing to engine wear. Extended warm-up periods can adversely affect the lubricant’s viscosity and in turn, affect the protection offered to vital components. Lubricants are limited to optimal temperature ranges and consequently, when their temperatures change and reach the “critical” zone, lubricants can become overly viscous. The consequence of this can be harmful to equipment; if improper lubrication occurs, under these stressful conditions, equipment can seize up or even fail. With the impact of downtime being so significant in a mine, selecting the right lubricant requires careful consideration. To ensure the correct selection of lubrication, there are four key tips to consider: n The

decision should always begin with consulting the original equipment manufacturer (OEM) vehicle manual – or contacting the manufacturer directly for further advice when deciding upon a suitable product. what conditions the equipment works in – both how the oil is used and the climate in which it operates should be reviewed. Lubricants are available in different SAE (Society of Automotive Engineers) grades, which dictate the acceptable temperature range in which they can perform optimally. According to the engine oil viscosity classification, the “W” following SAE viscosity grade stands for “winter” and not “weight” as many believe. This indicates that the oil is suitable for use in, and most importantly, provides protection in colder temperatures. For mining equipment working in warmer conditions, a heavier grade oil such as SAE 30 or 40 grade may be more suitable. These oils can resist the lubrication breakdown that comes with higher operating temperatures by ensuring adequate lubrication flow and the subsequent protection of critical engine components.

Owned or used under license.

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Understanding oil viscosity is essential for selecting the correct lubrication for mining equipment as it dictates the oil’s ability to flow, or its internal resistance to flow. If the oil’s viscosity www.canadianminingjournal.com

Photo: Zffoto, iStockimages.com

n Consider

Photo: Zffoto, iStockimages.com

UNDERSTANDING OIL VISCOSITY IS ESSENTIAL FOR SELECTING THE CORRECT LUBRICATION FOR MINING EQUIPMENT.

With DURON protecting your engine you could achieve drain intervals* of up to 750 hours in even the most demanding of operations. That’s the kind of drain intervals we call tough. And it’s all proven in the real world with field testing on tough jobs like yours. We’ve talked tough. Now we’ve proven it. THE TOUGHER. THE BETTER.™

is too high, the oil will resist easy movement which could delay lubrication and protection of critical engine components during a cold startup event. This could increase engine wear and affect equipment performance. n Review the benefits of synthetic vs. non-synthetic

– Full synthetic and synthetic blend engine oils possess better stability than conventional oils. Full synthetic oils are formulated with synthetic base stocks that are blended with high quality and often unique, performance-enhancing additives. These formulations offer a greater level of protection in a variety of weather conditions.

n Proof of performance

– the final consideration should be whether the oil manufacturer can demonstrate their product line’s credentials with proof – such as OEM approvals, field data in same engine and vocation or customer testimonials.

To provide solutions for these recommendations and to adhere to the highest industry standards – including North American API CK-4/ FA-4 – Petro-Canada Lubricants developed the DURON heavy-duty engine oil product line. Successfully extending oil drain intervals and providing protection in extreme environments within a range of heavy-duty mining vehicles, DURON has a proven history of helping mining fleet operators reduce their maintenance costs. Selecting an incorrect grade of lubricant or adding an aftermarket additive to it could result in the invalidation of warranty, increased aeration issues causing foaming, increased wear, inefficient engine operation or unnecessary downtime. Therefore, ensuring that professional recommendations play a part in the decision-making process should be a priority for mining operations. CMJ

HEAVY-DUTY DIESEL ENGINE OILS

FIND OUT MORE. THE SOONER. THE BETTER.

DURONTHETOUGHERTHEBETTER.COM *Extending drain intervals should always be undertaken in conjunction with an oil analysis program.

Brian Humphrey is OEM Technical Liaison with Petro-Canada Lubricants. To find out more about DURON, visit lubricants.petro-canada.com and search DURON. JUNE/JULY 2019

CANADIAN MINING JOURNAL |

Photo: Dapur Melodi

8 STEPS

to improve your mining maintenance

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Photo: Lorenzo

hen it comes to mining maintenance, the goal is continuous improvement. Your equipment never takes a break and neither should you. Besides, you can bet your competitors aren’t resting on their laurels, but are challenging the status quo. Complacency doesn’t breed success in mining. It leads to failure. That said, the process of improving your maintenance doesn’t happen overnight. It requires a series of continualimprovement steps. We must adjust, change and improve. In this article, we’ll look at eight steps we can take to improve.

Photo: Pixabay

By Gerard Wood

www.canadianminingjournal.com

Step one: Benchmarking

Continuous improvement starts with benchmarking. How does the availability score for your site’s truck fleet stack up to other mines? Is the reliability of your drills better this year than last year? Sometimes it is difficult to benchmark against other companies or mining sites; one company may calculate their performance differently than you do, and their mining operation or ore deposit may be much different than yours. In such cases, it’s best to benchmark against yourself. When benchmarking, think of your best-performing machine and ask yourself, “How can I make that machine even more dependable?” Similarly, if you benchmark against others and find you’re the best, think about how you can do even better.

Step two: Breakdown analysis

Photo: rawpixel.com

You might have heard this called root-cause analysis or defect-elimination process. This is when you analyze why a machine broke down and how to prevent future failures. It needs to be a simple process, not complicated by heaps of written material and data processes with different steps and thresholds. Focus on improvement and avoid over-analysis that takes time away from implementing changes.

Step three: Top 10 Pareto analysis

Vilfredo Pareto developed the 80-20 rule, which essentially says that 80% of the effects are caused by 20% of the causes. A Pareto chart helps prioritise the top 10 problems. Ideally, you will want to chase, to the failure mode, every single breakdown in the top five. When you look at areas of a plant that cause difficulties, you will want to refer to Pareto charts to visualize what areas you should focus on.

Step four: Maintenance delay analysis

This is something people don’t do very well these days. People focus primarily on breakdown analysis but rarely examine delays in scheduled maintenance. Why were there delays in the service? Were the correct tools not delivered to the site? Did the mechanic fail to show up? Was the machine not set up properly? If you don’t find what caused lost time, you can’t improve the planning. Most maintenance KPIs measure whether the work was completed and don’t analyze delays unless something prevented the job from being completed. That’s unfortunate because analyzing delays can lead to greater efficiency even if the job was eventually done within the scheduled window. CONTINUED ON PAGE 34

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Photo: rawpixel.com

Delays should not be accepted as normal, and they can be avoided with improved planning and organization. There’s never going to be a perfect plan, but you can improve significantly by understanding what caused delays.

Step five: Safety observations

Also known as field leadership, this involves identifying areas where people disregard safety procedures. Nearly all companies have a version of this. Done correctly, safety observations have been fundamental in the mining industry’s safety improvement record. I did a safety observation during a manual handling task to change a starter motor. I noticed that people didn’t have the right lifting equipment especially for the tight space, and the starter motors were way heavier than documented safety standards of 20-25 kg. We identified procedural improvements and a different lifting device that would help us in the future to remove the starter motors safely using the overhead crane. More importantly, though, it made us realize that people were not aware of our current standards for these types of manual handling tasks.

Step six: Area inspection

Photo: Burst

Area inspection correlates with safety as well as efficiency. Ensuring your work area is in order is an essential step in an improvement plan. I would have daily inspections of our workshop around a simple set of checks: • Are all things in their place? • Are people following procedures? • Are all the isolations in place? • Are tools stored correctly? These inspections create a controlled environment. Without the daily discipline to ensure standards are maintained, order usually degrades.

It is critical to have a sound maintenance budget and review performance against that budget. To have success in this area, bring everyone involved with expenditure decisions into the budget-making process. When the budget is finalized, create a simple reference tool or book so supervisors, planners, and superintendents responsible for spending decisions can easily determine if an expenditure is in the maintenance budget. If not, there must to be directions for identifying improvements or alternatives so the actual costs are reflected in the maintenance budget each year. From there, capture knowledge and continually improve the maintenance budget. You must record and learn from times when expenditures are outside the budget. Using cumulative life cycle

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Photo: Pixabay

Step seven: Cost review and analysis

cost management tools can highlight these instances, and reviewing this on a regular basis may reveal further maintenance cost savings. www.canadianminingjournal.com

Step eight: Job observations

Photo: Anamul Rezwan

Like safety observations, examines the quality of work and whether quality standards are followed. As with safety observations, this must be a self-auditing process. For example, if you are observing how a crew changes an engine, you can see whether people follow the engine change procedure and quality checks. Do they have all the parts bagged and tagged? Are critical bolt torqueing steps verified? With self-audits, you can self-correct as you go and prevent failures. CMJ

Gerard Wood is one of the mining industry’s foremost authorities on proper mining equipment maintenance. In his long career, Wood has been all over the world, working his way up from an electrician’s apprentice to a maintenance manager with advanced degrees in electrical engineering and business. As managing director for Bluefield AMS, Wood helps the world’s largest mining companies keep their machines running with a simple, practical approach that saves money and improves equipment reliability. This article was adapted from Simplifying Mining Maintenance, available on Amazon.

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PROTECT YOUR RIG FROM

Mother Nature Preventing damage to keep your rig drilling By Eric Mosley

anada’s climate ranges across temperature extremes and combines with humidity and precipitation to constantly threaten the integrity of heavy outdoor equipment like drilling rigs. Protecting this equipment from the elements can vastly extend the rig’s productive life. Drilling rigs and equipment are fabricated from multiple materials, all of which are susceptible to damage from exposure to a variety of climate conditions because of the fundamental laws and principles of physics and chemistry. As such, protections against the elements are applied to rigs during the manufacturing process, but ongoing preventive maintenance and other efforts are necessary to prolong the rig’s integrity and the capital investment in the equipment. Rigs in Canada must endure a number of fluctuating harsh conditions. Scorching summer temperatures. Punishing UV rays from sunlight. Oppressively high humidity. Parching levels of low humidity. Heavy winds. And water in various forms, including snow, sleet, ice and acid rain. Frequently, several of these extremes combine. Over time, all of these conditions threaten the rig’s integrity. Corrosion, an electrochemical process, occurs when metal is in contact with an electrolyte, such as water. With relative humidity of 60%, the metal will be in contact with an electrolyte. Chemical reactions triggered by precipitation and humidity will inevitably lead to metal degradation following extended exposure. Extreme cold temperatures can also make metal brittle, shortening fatigue life. Polymers such as plastics used for seals and screens can become too flexible in heat and brittle in cold, making them prone to cracking and breakage. Extremely arid conditions can peel the protective paint off of 36 | CANADIAN

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INSPECTIONS ARE CRITICAL TO EXTENDING THE OPERATIONAL LIFE OF A RIG THAT MUST SURVIVE IN A RANGE OF EXTREME CLIMATES AND CONDITIONS. a rig. UV radiation can degrade protective coatings and corrode metal. Continued and heavy wind can damage the rig itself. Hydraulic fluids subjected to extreme cold become viscous and congeal. At that point, they can starve components of lubrication prior to startup, which can damage metal and lead to less efficient operations and possibly catastrophic failure. Preventing such a failure is a matter of physics, or ensuring energy into the system equals the energy exiting the system. If a metal cylinder in extreme cold conditions is not heated to operating temperatures before it begins operating, that cylinder simply cannot perform as efficiently as it would if it had been pre-heated. There are many ways to defend a rig against the elements. The process starts during rig design with materials selection, moves through the manufacturing phase with the application of protective coatings, and continues throughout the operational life of the rig. Coatings such as paint guard metals from the elements to prolong the rig’s operational life. Paint seals the metal off from potential damage from corrosion and UV radiation. Coatings www.canadianminingjournal.com

Exposure to the elements can wreak havoc on drill rigs. CREDIT: SCHRAMM

insulate materials from absorbing or radiating energy, so they simultaneously protect the metal from degradation while also protecting humans from burns caused by bare metal exposed to sunlight for extended periods. Coatings like lubricants protect equipment such as pumps and engines from wear due to friction as well as from seizing during operations. Following proper handling methods will help keep a rig in top operating conditions even when facing harsh temperatures. For example, in periods of deep cold, bringing equipment up to operating temperatures prior to starting the equipment will prolong the equipment’s life. Avoiding shock loads by smoothly transitioning equipment into operation will also help keep the equipment in good condition. Keeping the rig clean not only contributes to safety and efficiency in the workplace but also helps prevent environmental damage from occurring to the rig while extending the service life of equipment. Removing moisture from surfaces helps stave off opportunities for corrosion to take hold. Removing dust and dirt from the surfaces prevents them from entering into sensitive equipment and damaging it. Clean equipment promotes the effectiveness of visual inspections by making it possible to clearly diagnose what service and repair work is needed. From an opex perspective, equipment such as hydraulic cylinders will deliver an extended service life when hydraulic cylinder rods are kept clean. Preventive maintenance helps keep at bay the wear and tear caused by normal operating conditions as well as any damage caused by environmental conditions. Such maintenance includes periodically repainting the rig to shore up protection against corrosion and changing out hydraulic fluids and seals. Other preventive maintenance activities that can prolong the JUNE/JULY 2019

productive life of equipment includes the periodic inspection and replacement of filters, lubricating mating surfaces, periodically applying UV ray-blocking solutions to polymers, and testing lubricants and coolants at regular intervals. Inspections are critical to extending the operational life of a rig that must survive in a range of extreme climates and conditions. Frequent and routine non-destructive testing inspections will identify defects in protective coatings and the rig itself before they have a chance to cause serious damage. Visual inspections can catch obvious defects. Ultrasonic testing inspects the internal structure of equipment, making it possible to detect changes in material thickness, cracks, voids and other structural defects. Radiographic testing also inspects the internal structure, and the X-rays or gamma rays can travel through steel, concrete and ceramics. If an inspection flags a problem, the rig operator can schedule repair work for the rig. Another way to protect drilling rigs – active or idle – from the elements is to shelter the rig from damaging conditions. Because drilling rigs are large, it would be cost-prohibitive to erect a structure to cover the rig. However, using tarps to protect surfaces that need to be protected from the elements will minimize the reach and effects of damaging conditions on the rig. Many pieces of equipment come together to make up a drilling rig, and they are all at the mercy of Mother Nature. Infrequent maintenance and neglect will rapidly diminish its functional life while diligent maintenance and adherence to proper handling procedures will prolong the functional life of the investment. CMJ Eric Mosley is the director, aftermarket, for Schramm Inc. For more information, see www.Schramminc.com. CANADIAN MINING JOURNAL |

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