Canadian Mining Journal May 2021 by The Northern Miner Group

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QUANTIFYING THE VALUE OF DIGITAL SOFTWARE FOR SUSTAINABILITY

THE DIGITAL MINE Analytics, automation and change management

MAY 2021 | www.canadianminingjournal.com | PM # 40069240

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CANADIANMINING

MAY 2021 VOL. 142, NO.4

JOURNAL

FEATURES 14 How blockchain technology will help miners meet evolving ESG demands.

CMJ

18 Costmine breaks down the cost of gold heap reclamation in cold climates.

20 A discussion at this year’s virtual PDAC conference examined the

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potential of – and barriers to – digitalization.

27 What miners can learn from early adopters of autonomous technology.

C A N AHow D I Adigital N M I technologies N I N G J O U Rcan N Ahelp L miners improve their reputation and 31

rebuild trust through real-time disclosure of environmental data.

33 ABB offers advice on how miners can attract and retain the digitally

literate workforce of the future.

SOFTWARE 36 Using digital twin technology to safeguard tailings facilities. 40 RPMGlobal discusses advances in software that are helping to unleash innovation in mine planning.

COMMUNICATIONS

42 Nokia outlines how private wireless technology is enabling Mining 4.0.

DEPARTMENTS 4 EDITORIAL | The digital decade to come. 6 CSR & MINING | Simon Chorley of Unicef and Monica Moretto of Pan American Silver offer tips on how miners can engage vulnerable stakeholders — including children and youth. 8 UNEARTHING TRENDS | EY’s Stephanie Porter discusses the challenges of ERP implementation as miners look for growth through M&A. 9 LAW | How contractual risk mitigation clauses protect miners’ international investments. 10 FAST NEWS | Updates from across the mining ecosystem. 44 ON THE MOVE | Tracking executive, management and board changes in Canada’s mining sector.

www.canadianminingjournal.com MAY 2021

Cover image supplied by Sandvik.

Coming in June 2021 Canadian Mining Journal looks at reclamation and closure, mining in the Prairies, and First Nations in mining. Plus, our semi-annual Equipment Maintenance & Repair supplement.

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 MAY 2021 Vol. 142 – No. 4

CANADIANMINING The digital decade to come Alisha Hiyate

ver the last decade, adoption of digital technologies in mining has begun to ramp up, with the support of a growing ecosystem of digital technology suppliers and expertise, and use cases from other industries. But the real decade of sweeping change in front of us. As outlined in a report released last May by the Mining Industry Human Resources Council (MIHR), new technologies that are already in use in mining, or are being piloted, are projected to reach their peak rates of deployment in the next 10 to 15 years. In the next five years, automation could see a huge rise in adoption, with the World Economic Forum estimating that by 2025, the rate for deployment of new automated equipment in the mining sector will be 25% compared to 0.1% in 2017. What does this mean for an industry that’s already short of labour, and which MIHR says may need to hire 79,680 workers between 2020 and 2030? While this issue of Canadian Mining Journal is focused on the digital mine, virtually every story in it acknowledges the role of people and the importance of change management. Miners can’t be successful at digital transformation without a workforce that’s actively engaged in that change. So it’s imperative that they have a plan for attracting, retaining and reskilling workers as their transformation plans advance. Miners generally insist that digitalization won’t result in job losses, but instead create new roles. While this is very likely true, some job categories – mainly lower-skill jobs that rely on manual labour and repetitive actions – will be automated and disappear. And the need for digital literacy across the entire workforce – including low-skill workers – will mean that different skill sets will be required of all workers. “As new technology is deployed, the mining labour pool will require updated skills and expertise to achieve a satisfactory level of operational integration,” says MIHR’s report, The Changing Nature of Work: Innovation, Automation and Canada’s Mining Workforce. Mining employers are already demanding workers with higher levels of education, while decreasing their reliance on less-educated workers, who are most vulnerable to disruption. This has important implications for Indigenous workers, who currently represent about 7% of the total mining workforce. According to MIHR’s report, a high proportion of Indigenous workers are in production occupations that are vulnerable to disruption and automation, including as underground production and development miners, heavy equipment operators, and mine labourers. The mining sector is proud to be a top employer of Indigenous Canadians, but it will have to put plans in place to maintain and increase Indigenous participation in the workforce. MIHR points out that a large percentage of women in mining (who represent less than 20% of the overall workforce) are also employed in vulnerable occupations, namely administrative-type positions. As the digital decade progresses, miners will have to work just as hard in creating a CMJ thoughtful approach to human resources as they will on technology adoption.

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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 Magda Gardner CANADIAN MINING JOURNAL mgardner@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Advisory Board David Brown (Golder Associates) Michael Fox (Indigenous Community Engagement) Scott Hayne (Redpath Canada) Gary Poxleitner (SRK) Manager of Product Distribution Allison Mein 403-209-3515 amein@glacierrig.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales, Western Canada George Agelopoulos 416-510-5104 gagelopoulos@northernminer.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-800-387-2446 ext 3515 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 Glacier Resource Innovation Group (GRIG). GRIG is located at 225 Duncan Mill Rd., Ste. 320, Toronto, ON, M3B 3K9. Phone (416) 510-6891. Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Robert Seagraves at 416-510-6891. Subscriptions – Canada: $51.95 per year; $81.50 for two years. USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST registration # 809744071RT001. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-387-2446 ext 3515; E-mail: amein@glacierrig.com Mail to: Allison Mein, 225 Duncan Mill Rd., Ste 320, Toronto, ON M3B 3K9 We acknowledge the financial support of the Government of Canada.

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CSR & MINING

Engaging the vulnerable and valuable stakeholders: Tips for exploration companies By Simon Chorley and Monica Moretto

s mineral exploration companies begin to conduct their operations, it can be very easy to limit community engagement to existing local leaders. But who is this missing? Which community groups are under-represented? What could the particular impacts of mineral exploration be on these groups? How could companies identify and engage them? What should you do when things go wrong and company-community conflict arises? Mineral activities can often be the largest business in the most remote locations, encountering some of the most marginalized individuals. They have great potential not just to make positive contributions to communities, but also to have negative impacts. The most severe and long-lasting impacts of mining activities are most likely to affect under-represented stakeholders. Underrepresented stakeholders by definition do not have the same access or capacity to influence decisions that affect their lives as do others in their community. The United Nations Guiding Principles on Business and Human Rights is the international framework that equips governments and businesses to protect and respect human rights. The Principles help identify who your most under-represented, or vulnerable, stakeholders might be – Indigenous Peoples; women; minorities, be they national, ethnic, religious or linguistic; persons with disabilities; migrant workers and their families; and children. The Principles provide a lens to understand which groups are most under-represented, and which impacts pose the greatest risk to them. These are called salient impacts. You can identify salient impacts on under-represented stakeholders by applying the Principles’ three criteria of scale, scope, and remediability. • Scale is how serious the potential impact would be. • Scope is how widespread the potential impact would be. • Remediability is how reversible the potential impact would be. This is particularly relevant for children under the age of 18, who make up nearly half of the population in disadvantaged communities, are disproportionately vulnerable to the impacts of mineral exploration projects due to their physical and mental development, and are rarely considered as a significant stakeholder group by companies. The potential impacts from mining are as diverse as the communities themselves, but there are common questions that you can ask across most mining activities: 6 | CANADIAN

MINING JOURNAL

w Environment: How are these groups currently using the land where I’m exploring or operating? How will my activities affect these uses? Will my vehicle use and activities increase noise levels that would disturb vulnerable groups? Will they increase dust and land, air, and water pollution levels that could cause health problems for vulnerable groups? Can I locate my activities so as to cause minimal disruption to these vulnerable groups? Will any community resettlement disproportionately impact vulnerable groups, leaving them with less resources and security? w Community: Will my presence here attract an increasing number of people looking for employment and income? Will this increase local prices and pressure on existing social services, leaving under-represented groups even more vulnerable? Could this also increase social problems such as alcohol and drug use, as well as crime and potential violence and abuse? If criminal activity does occur, what is the track record of local public and private security forces in their conduct towards vulnerable groups such as women and children? w Workplace: How will my project ensure the health and safety of vulnerable groups both inside and outside the project? Does any signage about health and safety risks take into account the language and literacy rates of the local population? Can I educate local groups about road safety? Will I need to fly workers in and out, and will I need to house them, and how can I plan that to minimize the stress on families and children? It may seem obvious, but the best ways of understanding your potential impacts on under-represented stakeholders is to ask them. Before you engage them though, know who you are going to engage, why and how. If engaging them directly would put them at risk, identify people or organizations who could legitimately represent them. During your engagement, ensure you have their free, prior and informed consent to participate, and choose a time, place, language, and format that best suits them. After you engage them, identify and implement follow-up actions and communicate outcomes to them, and provide a grievance mechanism that is accessible and responsive to vulnerable groups if they are not satisfied with the outcome. Meaningful and appropriate engagement of vulnerable stakeholders across www.canadianminingjournal.com

In 2014, Pan American Silver conducted a stakeholder consultation in four operating countries in order to identify the most important issues to its communities of interest. Questions regarding children’s rights and impacts were included in the survey, and children’s representatives were appropriately engaged. Children and youth were subsequently identified as one of the top 10 most important issues for the company. the life-cycle of a project, from exploration through construction to production and closure, can help reduce conflict, increase trust, and build better business for all. Pan American Silver provides a great example of how this approach can be integrated into current practice. Pan American is a Vancouver-based mining company with sites in Canada, Mexico, Peru, Bolivia, Argentina and Guatemala. After a UNICEF Canada presentation at the Convention of the Canadian Institute of Mining in 2014, the company began to integrate children’s considerations into their sustainability approaches. In 2014, Pan American Silver conducted a stakeholder consultation in four operating countries in order to identify the most important issues to its various communities of interest. Questions regarding children’s rights and impacts were included in the survey, and children’s representatives were appropriately engaged. Children and youth were subsequently identified as one of the top 10 most important issues for the company. Pan American then committed to reflecting this priority in its policies. It be-

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came the first known mining company to publicly commit to respecting the Convention on the Rights of the Child in their CSR Policy. In 2015, Pan American Silver conducted a baseline assessment with host communities near one of its sites. This included establishing indicators to gain more detailed information about the company’s actual and potential impacts on children. The assessment informed future data collection exercises, which the company continues to improve. In 2019, Pan American disaggregated their grievance log by both age and gender, to allow it to escalate and tailor their responses to cases involving women and children. In 2020, the company also integrated children’s considerations when it reviewed security practices against the requirements of the Voluntary Principles on Security and Human Rights and UNICEF’s Canada’s Child Rights and Security Checklist. CMJ SIMON CHORLEY is international programs manager, UNICEF Canada and MONICA MORETTO is vice-president of sustainability, diversity and inclusion, Pan American Silver.

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CANADIAN MINING JOURNAL |

UNEARTHING TRENDS

Overcoming historical challenges for successful ERP implementation By Stephanie Porter

lobally, there’s been an explosion of merger and acquisition activity as vaccine distribution ramp-ups start to translate into greater economic growth. And climbing to the top of the transaction activity list is the Canadian mining and metals sector looking to capitalize on opportunistic deals. But as companies start to grow through acquisition, one of the increasing challenges they will have to overcome is harmonizing the organization to achieve tangible benefits, analytics capabilities and reduced operational risk. Many mining companies end up with multiple disparate systems, depending on the number of assets that they own. Multiple systems often mean additional costs of maintaining different enterprise resource planning (ERP) technologies, plus difficulties making data-driven decisions. It will become quickly apparent that this model just isn’t sustainable. An ERP project is the best way to enable non-system changes that will drive business value. Harmonizing to one platform isn’t just a consideration for those undertaking transactions either. Even companies who are growing organically may look to revisit ERP strategies to address risks with unreliable data, achieve process optimization or put themselves in a better position for future growth. Whether it’s to enable a growth agenda or to release pain points that companies want to resolve, this landscape has fuelled a renewed interest in the last year to revaluate ERP strategies. This isn’t the first time this interest has sparked. Some companies are still paralyzed from challenges seen in previous ERP implementations – and we hear often from executives who highlight a number of risks around prior experiences. So, how can companies ensure they see significant value, control costs and mitigate risks this time around? In a recent webinar, Eldorado Gold shared the main considerations they’ve factored in for success. First of all, take the time to plan out the objectives and scope of the project. This includes determining what will change from a process, systems, data and people standpoint, and utilizing that scope to estimate detailed costs and benefits. Some companies elect to treat this as an ERP-enabled business transformation and complete a fulsome business case to realize maximum value. Others conduct exercises to opportunistically identify areas for improvement and include the highest value changes in their scope. This first step is endlessly important and well worth the time and investment. A robust roadmap can reduce project 8 | CANADIAN

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Many mining companies end up with multiple disparate systems, depending on the number of assets that they own. Multiple systems often mean additional costs of maintaining different enterprise resource planning (ERP) technologies, plus difficulties making data-driven decisions. It will become quickly apparent that this model just isn’t sustainable. An ERP project is the best way to enable non-system changes that will drive business value.

risk, lower overall cost, and improve time to value and predictability in the implementation. Secondly, the focus should be on a comprehensive, integrated plan. It’s common that mining companies execute transformations in phased steps and begin with support functions that can drive significant value. But the strategy, roadmap and plan should be contemplated holistically upfront. Lastly, it’s important to identify the right resources to support the project. Implementing a new ERP system, or making changes to an existing ERP system, will require more than just the IT team. It’s critical to have knowledgeable and influential resources involved in the project that understand the business requirements, are empowered to make future-state decisions and can serve as change ambassadors. Improving aspects of a mining company – from work identification and execution quality, to employee engagement and asset optimization – across various operating sites and assets can be quite complex. By executing a successful ERP implementation plan, companies can reduce the number of systems and risks they currently have, lower overall costs, improve decision making and ultimately drive significant value to the business. CMJ STEPHANIE PORTER is the EY Canada SAP Mining & Metal leader and S/4 Migration leader. She’s a partner based in Toronto. For more information, visit www.ey.com/en_ca/mining-metals.

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LAW

International investment regimes, Part 2: Risk mitigation clauses By Martin Valasek, Alison FitzGerald and Cara Dowling

e previously wrote about the international investment treaty regime and its protections for mining sector investors (see the April CMJ). In this article, we describe another important protective mechanism – contractual risk mitigation clauses. Several types are commonly incorporated into mining agreements with states and state-owned entities to mitigate the risk of state intervention and/or political and economic stability. Stabilization clauses Stabilization clauses are widely used in the mining sector, and seek to preserve the deal between the host state and mining project participants for the life of the project by: (a) mitigating or managing the political risks associated with the project; (b) restoring economic equilibrium between parties should it be affected by a change in law, tax or otherwise; and (c) restricting the state’s legislative and administrative powers. The most common stabilization clauses in the mining sector are freezing clauses and economic equilibrium clauses. Freezing clauses seek contractually to “freeze” the national laws that apply to the contract as of the date of the contract for the term of the project. These clauses have proved controversial as some argue they infringe on states’ sovereignty. As a result, subcategories have developed ranging from full freezing clauses, which seek to fix all laws, to limited freezing clauses, which fix only certain laws. “Inviolability” clauses are another moderate form which restrict any unilateral modification of the contract by the state using whatever inherent power it might otherwise have to do so, unless the parties consent. The effect is to freeze the contract rather than the law. Economic equilibrium clauses require the parties to renegotiate the contract in response to a formal change in law or broader change in the application of existing law (such as through the adoption of a new interpretation), or a change in economic circumstances. The type of protection offered can vary from monetary compensation to compensatory revision of the contract. So-called ‘hybrid’ clauses combine the features of more than one type of stabilization clause and generally: (1) define the changes in circumstance that will trigger renegotiation; (2) set out the effect of the change on the contract; (3) outline the objective and procedure of the renegotiation; and (4) provide for a solution where the renegotiation fails. Sovereign immunity waivers The principle that a state cannot be sued in a foreign court MAY 2021

without its consent is well recognized and respected internationally. A waiver of sovereign immunity clause is therefore critical when a state is a party to the contract. Sovereign immunity clauses typically include express waivers of immunity from jurisdiction and enforcement/execution against state assets, as well as in respect of interim relief. To ensure that these waivers are enforceable, it is important to confirm that the state has capacity or authority under its local laws to waive its sovereign immunity, as well as that any such waiver is enforceable in those jurisdictions where a judgment or award may need to be enforced. Governing law and arbitration clauses Governing law clauses establish the law that governs the contract, which is important as this determines the parties’ contractual rights and obligations, and remedies available. The governing law should be one that offers the maximum protection and stability for the investor. English law is commonly selected in extractive sector contracts because it offers certainty as well as incorporating customary international law principles into its domestic law, including the principles requiring just compensation for the taking of contractual rights by a state. It is also critical that the investor has access to a neutral forum for the resolution of disputes. Commonly, the national courts of the host state are not acceptable to foreign investors due to a perceived risk of state influence or corruption. Yet states are generally unwilling to appear before foreign courts. International arbitration offers a compromise. An arbitration clause designates a neutral seat for proceedings before an independent and unbiased arbitral tribunal, and stipulates rules providing for a fair procedure and equal treatment of the parties. To facilitate enforcement of the resulting award, the seat should be in a state that is party to the New York Convention on the Enforcement of Foreign Arbitral Awards, has a pro-arbitration judiciary, and a restrictive approach to sovereign immunity. Key takeaways In mining, disputes between foreign investors and host states are common, even in developed countries. Foreign investors should seek to incorporate every available protective mechanism against CMJ state intervention and political and economic risk. MARTIN VALASEK is Norton Rose Fulbright Canada LLP’s head of International Arbitration, ALISON FITZGERALD is Of Counsel, International Arbitration and CARA DOWLING is director, Global Disputes. Lindsey Wilson also contributed to this article. CANADIAN MINING JOURNAL |

FAST NEWS • INNOVATION |

Updates from across the mining ecosytem

Epiroc shifts towards automation and digitalization in Canada

AS THE MINING BUSINESS adapts to changing technological trends in the market, Canada has emerged as an industry leader and Epiroc’s Canadian operations have introduced Regional Application Center (RAC) teams to assist in this new digital transformation. Across the board, mining projects are pushing for increased production while prioritizing safety. With this in mind, Epiroc has assembled specialized automation and digitalization support systems in strategic locations across the globe to help improve customer processes and boost productivity. The result is a heightened level of production that keeps workers out of danger zones on site while providing enhanced strategic direction for customers. Interoperability improvements have reduced variability and allow project planners to move towards their targets with renewed confidence. “Our RAC team gives new perspectives on achieving efficiency for the organizations we partner with,” Martin Champagne, application centre manager at Epiroc Canada, said in a release. “The team itself utilizes members from a wide range of disciplines; from data analysts and project engineers to network specialists, software developers, IT specialists and digital product managers – the support system is always available when customers need it.” Epiroc’s Canadian customer centre has successfully applied this technology since the late 1990s, when the RCS Rocket Boomers with advanced boom controls and autodrill features were first introduced. In 2005, Canadian operations implemented one of the first Epiroc Scooptram Radio Remote Controls utilizing long-range Bluetooth technology; followed by the first fleet of semi-autonomous Epiroc Scooptram implementations in 2009; the introduction of the first fleet of Pit Viper 235s with tele-remote systems in 2012; and the 2019 implementation of the first SmartROC D65 autonomous drill. With Epiroc’s 6th Sense offering, the shift towards automation, digitalization and interoperability is already underway and the Regional Application Centers work collaboratively with industry partners across the globe to achieve their goals. While working together with customers, Epiroc has initiated the move from machine autonomy to process autonomy,

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Epiroc Regional Application Center. CREDIT: EPIROC

which consists of automating a complete process and allowing different kinds of equipment to communicate with each other effectively. To help support these functions, a newly renovated Control Tower located at Epiroc’s Lively facility in Sudbury now acts as a home base for the RAC team, who are continually collecting data and developing innovative techniques to improve performance. Customers using this service for their projects can now turn their focus to other areas of the business with the knowledge that Epiroc’s team of experts are carefully monitoring progress on site and offering solutions in real time. Epiroc’s technology and digital division coordinates and develops technology solutions, and provides specialist consulting and engineering services. Meglab acquisition Separately, Epiroc has announced it will be acquiring Meglab, a Canadian company providing electrification infrastructure solutions to mines. The solutions support mining customers in their transition to battery electric vehicles.

Val-D’Or-based Meglab designs, manufactures, installs and supports practical and cost-effective electrification and telecommunications infrastructure solutions for customers in several countries. Its products and solutions include system design, substations, switchgears and automation system solutions. These support the infrastructure needed for mine electrification and equipment charging solutions, as well as for digitalization and automation of operations. In a release, Epiroc president and CEO Helena Hedblom said the acquisition will strengthen Epiroc’s capacity to provide the infrastructure required as mines transition to battery electric vehicles. Meglab has over 240 employees and recorded 2020 revenues of about $49 million. The acquisition is expected to be completed in the second quarter. The purchase price has not been disclosed. The business will become part of Epiroc’s parts and services division and will continue to be based in Canada. CMJ www.canadianminingjournal.com

• VENTILATION |

Maestro IIoT solutions now integrate into Ventsim Control

• DIGITALIZATION |

MAESTRO DIGITAL MINE has announced that its ventilation IIoT (industrial internet-of-things) solutions have been successfully integrated into Howden’s Ventsim Control Ventilation Optimization software, strengthening Maestro’s mine ventilation solutions for customers worldwide. Ventsim Control can remotely monitor, control, and automate in real-time underground mine ventilation from the surface. Combined with Maestro’s Vigilante AQS and Zephyr AQS air quality monitoring stations, using MaestroFlex automated regulators, Ventsim Control can be easily configured to manage ventilation by reducing the complexity and integration time of any project. Ventsim Control uses real-time data to continuously optimize and redirect airflow for peak efficiency and safety in all activity levels and headings in a mine as production priorities shift. This software communicates with all hardware and instrumentation mine infrastructure. “Expanding Ventsim Control’s capabilities to incorporate Maestro’s advanced solutions and plug and play ventilation devices is an exciting and logical next step. The integration will now make it easier than ever for mines to enjoy the safety and security of minewide atmospheric monitoring, together with advanced and intelligent ventilation automation to improve safety and productivity and reduce costs,” Howden’s Craig Stewart, founder of Ventsim, said in a release. CMJ

EY CANADA IS launching a new, virtual centre of excellence aimed at offering mining companies in the Americas access to innovative services and technologies to help them solve the pressing challenges they face. The EY Americas Mining and Metals Centre of Excellence will be headed by Theo Yameogo, who was recently appointed EY Americas Mining and Metals Leader. EY says the centre’s integrated, business-led approach will support mining and metals companies’ growth in four key areas: technical expertise, digital transformation, operations management, and decarbonization and ESG. “Post-Covid-19 investments in infrastructure, combined with demand to sustain the energy transition, will drive significant growth in the mining and metals sector over the next three to five years,” said Yameogo. “But capitalizing on these opportunities is going to require a major pivot – and we want to be there to support companies as they navigate the path forward. While working cross-collaboratively with our colleagues in the Americas to combine our business and technical expertise with emerging technologies, the Centre will ground us under one unified vision to help companies drive meaningful and long-term growth.” The centre will be powered by the EY wavespace concept, which aims to help clients quickly solve business problems using collaboration and new technology. The first centre is already open to Canadian clients, with expansion to Latin America planned for later this year. CMJ

MAY 2021

EY Canada launches centre of excellence for mining and metals

CANADIAN MINING JOURNAL |

FAST NEWS • PARTNERSHIP |

Updates from across the mining ecosytem

Symboticware, Schneider Electric to deliver integrated solution

SYMBOTICWARE, an industrial IoT and AI (internet of things and artificial intelligence) company based in Sudbury, Ont., has signed a partnership agreement with Schneider Electric, a global leader in data consolidation and analytics for mobile and fixed assets. While the natural resource industry has historically struggled with the implementation of effective predictive AI solutions, Symboticware and Schneider Electric aim to address this problem. The two companies will offer an integrated solution that combines Symboticware’s patented technologies, hardware solutions, and Operating System of Intelligence with Schneider Electric’s world-leading advanced analytics solutions and services. The partnership and integrated solution are expected to improve machine and operator productivity and enhance safety for off-highway vehicles across the natural resource industries with asset performance management and advanced analytics.

Symbioticware and Schneider Electric’s integrated solution is expected to improve the productivity and safety of off-highway vehicles. CREDIT: SYMBIOTICWARE/ SCHNEIDER ELECTRIC

“Our partnership with Schneider Electric will prove to be transformational for the resource industries. Our product and service offerings complement really well and this partnership is timely as we set out to transform the four million off-highway assets in the resource industries with our Operating System of Intelligence,” Ash Agarwal, CEO of Sym-

boticware, said in a release. “Schneider Electric is a recognized leader in the industry for their advanced analytics and asset performance management solutions and we’re looking forward to bringing a collaborative disruption to the resource industries.” “We are excited to partner with Symboticware and deliver our customers an integrated solution,” added David Willick, Schneider Electric’s VP and regional leader of mining metals and minerals for North America. Symboticware provides an industrial IoT hardware and software platform to help customers unlock, collect and analyze valuable data from their industrial mobile and fixed assets to help improve business outcomes. Schneider Electric is a global leader in data consolidation and analytics for mobile and fixed assets, and provides professional services that include consultancy, systems integration, deployment, maintenance, and managed services for resource productivity and safety. CMJ

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ESG

BLOCKCHAIN

How will help miners meet evolving ESG demands By Alisha Hiyate

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rials back to their origin using digital certificates. Current efforts are moving beyond mere traceability and seeking to attach ESG data to blockchain platforms, providing transparency on sustainability measures – and ultimately moving toward incentivizing and rewarding best practices. Beyond cryptocurrencies In the mining sector, blockchain is already being used to trace materials to ensure they are being produced ethically and without human rights concerns (cobalt, diamonds, tin, tantalum, tungsten and gold). It’s also being used to bring transparency to investing in precious metals, with the security offered by the immutable nature of the blockchain record a big feature in commodities where fraud is a concern. A few examples include: w The Responsible Sourcing Blockchain Network, launched in late 2019, tracks battery minerals cobalt and nickel. The network was built on an IBM blockchain platform and assured by RCS Global Group. The network does not yet include carbon intensity and other ESG data, but there are plans to introduce those metrics in the future. w Startup Circulor has a Hyperledger (open source) blockchain www.canadianminingjournal.com

CREDIT: MATEJMO/ISTOCK

t the Association for Mineral Exploration’s Remote Roundup in January, mining entrepreneur – and master communicator – Robert Friedland laid out his predictions for the future of mining. In addition to a more diverse industry, the founder and executive co-chairman of Ivanhoe Mines sees a more sustainable future for the sector – and one in which the environmental impact of mining will be baked into commodity prices. “There will be no more one price for copper. There will be no more one price for gold,” Friedland told delegates from Singapore. “Everything will be priced in relation to its ESG components and be priced in relation to how much global warming gas is created in making that commodity, because we’re going to head to a price on carbon,” Friedland said. “The minute you put a price on carbon, every mine in the world will have its end product priced according to how deleterious it is or how less deleterious it is on the global environment.” Friedland is far from alone in believing that the implementation of circular economy principles – which aim to reduce waste and pollution – will affect commodity pricing. The movement toward circularity is being driven by investors and consumers who want more information about the conditions under which goods are produced and the environmental and social impacts of that production. It’s also being driven by net zero commitments of governments and investors, and regulations around conflict minerals in the U.S. and EU (already in effect) and the Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc (an industry association-led standard that will come into effect in 2023). But how do we get there? One of the enabling technologies of the circular economy is blockchain. While bitcoin may have been the first application of the technology, its applications go far beyond the cryptocurrency craze. The immutable distributed ledger technology creates a link between the physical and the digital worlds, and offers a secure digital record of transactions that can’t be tampered with. Essentially a decentralized database, it allows traceability of raw mate-

platform that helps manufacturers trace materials and avoid conflict minerals and child labour in their supply chains. w Tradewind Markets Origins solution can trace the origin of gold and the standards under which it was produced for its client base of institutional investors. w U.K.-based Everledger, which bills itself as a digital transparency company, has a diamond blockchain solution used by jewelry retailers (including Chow Tai Fook) to demonstrate to consumers that their diamonds were responsibly mined. Everledger also has solutions to track battery minerals for recycling and reuse (and even offers blockchain for fine wine and art). w A pilot led by ISED (Innovation, Science and Economic Development Canada) and Canadian startups Peer Ledger and Mavennet Systems around the traceability of steel through Canada as it’s imported and exported and manufactured. Detailed ESG data The number of intitiatives that are seeking to provide deeper data on carbon intensity and other ESG metrics is growing. One of them is the Mining and Metals Blockchain Initiative’s (MMBI) emerging Carbon Tracing Platform (COT) – a proof-of-conMAY 2021

cept stage project that was released in December. The goal of COT is to allow mining companies to trace carbon emissions from the mine to the final product. The MMBI is a collaboration between the World Economic Forum and seven leading industry players, including Anglo American and Glencore, that was established in 2019. The COT concept “not only tests the technological feasibility of the solution, but also explores the complexities of the supply chain dynamics and sets requirements for future data utilization. In doing so, the proof of concept responds to demands from stakeholders to create “mine-to-market” visibility and accountability.” The solution also holds potential for more accurate ESG metrics. Most estimates of the carbon footprint of the mining industry’s value chain are currently based on industry benchmarks or non-standard unverifiable data, Jorgen Sandstrom, WEF’s head of mining and metals, told The Northern Miner in December. “This limits the (organization’s) control and ability to improve the footprint,” Sandstrom said. “Our vision is to enable verifiable visibility of the embedded emissions from the mine to the market, and the COT is a big step forward in delivering this vision.” Rio Tinto’s START sustainability initiative for aluminum includes a variety of ESG metrics. Launched in February, the sustainability label – which the miner likens to a nutrition label on food packaging – provides key information about the site where the aluminum was produced, and is delivered to customers via blockchain. The label includes information covering 10 key criteria, including: an operation’s carbon footprint, water use, recycled content, energy sources, community investment, safety performance, diversity in leadership, business integrity, regulatory compliance and transparency. “By launching START, Rio Tinto is helping to support increased transparency and traceability across the aluminium supply chain,” said Paramita Das, general manager, global marketing and development for Rio Tinto Aluminium in an emailed response to CMJ’s questions. “With the current geopolitical environment, increased scrutiny on origin of materials and focus on climate change, we believe this will help meet the needs of end customers while responding to consumer expectations. In addition, using blockchain technology allows us to bring data driven sustainability information to our customers faster and in a secure way.” The company has also launched a sustainability advisory consultancy called START Enhance that includes support on documentation required for green financing arrangements, for example. “START is an ecosystem solution and our hope is that the supply chain can come together to position aluminium as the material of choice against substitute materials,” Das noted. In Australia, the trueGold Consortium is a new ESGfocused gold supply chain assurance solution that allows tracking of gold from the mine site to the end consumer. A 50-50 venture between ASX-listed Security Matters and the Perth Mint of Australia, trueGold launched last year, with a full comCONTINUED ON PAGE 16

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ESG mercial launch expected in next year’s second quarter. Security Matters’ business is focused on the circular economy – from plastics to electronics and fashion to now gold – using technology it’s licenced from the Israeli government. Security Matters CEO Haggai Alon says the unique molecular marking technology and blockchain platform is capable of tracking a material from mine through production and then through recycling or reuse. “We are the only technology that can go from raw material to production, from production to commercial and from commercial to reuse,” Alon says. “And the fourth dimension is having all of these three life cycle spans recorded on the blockchain with one technology and full transparency and visibility on the whole process. So what you really have is the ability to transform linear production to circular because you can interconnect the three lifecycles with one technology.” Alon says the technology captures all the ESG criteria that are demanded by the LBMA (London Bullion Market Association) and the World Gold Council. Notably, the original idea for trueGold came from technology companies looking for ethical sources of gold. “Gold is still one of the best connectors on high-end electronics – til this day there’s no alternate, synthetic, human-made material,” Alon says. “For the tech companies, addressing the challenge of tracing origin as it relates to ethics and provenance and quality was very important.” Limitations of blockchain As much excitement as there is around blockchain, there are some limitations to the technology with regard to ESG, says Ben Chalmers, Senior VP of the Mining Association of Canada (MAC). Most importantly, blockchain can’t replace industry standards that include quality control mechanisms and procedures. “While blockchain is a really important innovation that will allow the easier and more reliable transmission of ESG data up and down the supply chain to enable our customers to secure their supply chains with responsibly sourced material, what really matters is what information is being put into that blockchain and that’s where our focus is,” Chalmers says. “Blockchain is only as good as the information that is entered into it – it’s the old notion of garbage in, garbage out.” Through its Toward Sustainable Mining (TSM) standard established in 2004, MAC ensures that the quality of ESG and origin data is trustworthy. “As we set out in our TSM standard, trustworthy means independently audited or verified data with some sort of credible oversight of it,” Chalmers says. Rio Tinto’s START for example, builds on existing ecosystems for assurance – its RenewAl low carbon aluminum program, the Aluminium Stewardship Initiative and ICMM standards. “It’s not enough for a company to say ‘trust us, we’ve got good ESG systems in place to make sure our products are responsibly sourced,” Chalmers notes. “You need a standard like the AluCMJ minium Stewardship initiative or TSM to attach to it.” www.canadianminingjournal.com

COSTING

GOLD HEAP LEACH RECLAMATION

Costmine compares costs of reclamation in cold climates By Krita Noyes and Sam Blakely

Slope angle reduction Due to the nature of their construction, heap side slopes are often built at the angle of repose and will usually require a reduction in that slope angle during reclamation. The least costly method for achieving this slope angle reduction typ18 | CANADIAN

MINING JOURNAL

ically uses a bulldozer to excavate horizontal cuts into the heap and cast material down the face. The process continues until the desired slope is achieved. Finally, near the lower end of the slope, the bulldozer will travel directly down the face to recontour the toe of the slope. In this example, costs were generated using a 15.1 cubic metre capacity bulldozer upon a heap with an original side slope of 40° and reduced to a slope angle of 34°. Synthetic versus natural capping New heap leach gold projects often require capping of the heap once closed as a means of keeping stormwater at bay. Presented here are the costs of applying both synthetic and natural caps. Also included, to provide context, is the cost of removing the gold heap entirely and hauling the material a distance of 500 metres. In the case of synthetic capping, a man-made membrane with a purchase price of US$23.03 per sq. metre is applied over the entire gold heap pile. The natural cap reclamation cost estimate assumes a mixture of 20% bentonite and 80% soil applied over the heap.

Topsoil placement Included here are the costs of placing the topsoil atop the heap, spreading, contouring, and scarifying. In addition to benefiting revegetation, topsoil covers are often required for their ability to lower seepage by storing stormwater. Topsoil is applied to the heaps that are capped and is assumed to be hauled from a distance of 1 km for both pad sizes. Seeding Seeding is generally required to facilitate more rapid revegetation with desirable species. Seeding, once established, also has the advantage of storing water produced during storm events in the root zone. Here, seed mix was estimated to be spread over areas of 49 and 98 hectares via mechanical methods at a rate of 9 kg per hectare. Results As can be seen in Table 1 and 2 and Figure 1, capping the gold heap is the costliest undertaking during reclamation of the heap. And a natural, 20% bentonite cap www.canadianminingjournal.com

Image: tfoxfoto/iStock

s more gold projects investigate operating gold heap leach technology in cold climates, it is important to keep an eye on reclamation costs. Designing for closure before a project is developed can make a significant difference in the reclamation costs. Costmine first surveyed Canadian gold heap leach facilities, either currently in operation or proposed, to arrive at a relevant gold heap footprint of 1,400 metres long by 700 metres wide for this reclamation cost estimating exercise. We also investigated a smaller heap leach with half of this footprint, or a gold heap of 700 metres by 700 metres. Reclamation activities included in this analysis are comprised of slope angle reduction, capping, topsoil placement and seeding.

TABLE 1: Gold Heap Reclamation Costs, 60 Metre High 700m x 1400m

Reslope

TABLE 2: Gold Heap Reclamation Costs, 60 Metre High 700m x 700m

Synthetic Cap

Natural Cap

Removal

Synthetic Cap

Natural Cap

Removal

$854,000

—

Reslope

$569,000

—

Cap

$36,777,000

$43,365,000

—

Cap

$18,985,000

$22,386,000

—

Removal

—

$125,041,000

Removal

—

$59,326,000

Topsoil placement $4,395,000

$4,395,000

Topsoil placement $2,040,000

$2,040,000

Spread & Contour $407,000

$407,000

Spread & Contour $204,000

$204,000

Scarifying

$86,000

Scarifying

$14,000

Seeding

$154,000

Seeding

$78,000

Total

$42,673,000

$49,261,000

$130,083,000

Total

$21,890,000

$25,291,000

$61,662,000

Figure 1: Gold Heap Leach Reclamation Costs

New heap leach gold projects often require capping of the heap once closed as a means of keeping stormwater at bay. Presented here are the costs of applying both synthetic and natural caps.

Heap Leach Closure Costs $140,000,000 $120,000,000

700m x 700m

$100,000,000

700m x 1400m

$80,000,000 $60,000,000 $40,000,000 $20,000,000

is slightly more expensive than the purchase and application of a synthetic cap. However, these costs pale in comparison to the cost of removing the heap entirely. The decision to cap or remove the heap is often a condition of permitting. However, with good design, the reclamation costs can be minimized while maintaining good environmental compliance. Methods This estimate was compiled using Costmine’s Reclamation Cost Estimator and Gold Heap Leach Cost Guide. The newest entry into cost estimating for reclamation activities, this tool is available online, and saves time and money. The Reclamation Cost Estimator is an engineering-based software program that uses your project and site parameters to estimate the equipment, labour, supply, and administrative costs associated with mine site reclamation. It is designed to quickly estimate the costs of a multitude of common reclamation tasks with up-todate supply and equipment prices automatically queried by the application. Most cost data used by the application is supplied by CostMine’s Mining Cost Service and Mine and Mill: An Estimator’s Guide. CMJ Krista Noyes is a reclamation specialist/ geologist with Costmine and Sam Blakely is a cost analyst/geologist (www.costmine.com). MAY 2021

$0 Synthetic Cap

Reslope

Cap

Natural Cap

Removal

Topsoil placement

Synthetic Cap

Spread and Contour

Natural Cap

Scarifying

Removal

Seeding

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CANADIAN MINING JOURNAL |

DIGITALIZATION

THE DIGITAL PROPOSITION Digital transformation has gone from being a buzzword to being a reality in mining. A panel at this year’s PDAC looked at the progress so far, including Teck’s RACE21 program. By Alisha Hiyate

ith its RACE21 program, which launched in 2019, Teck Resources set out to be a leader in the digital transformation under way in mining. And while the initiative has produced real gains in productivity across its Highland Valley Copper and metallurgical coal operations in British Columbia (see RACE21 sidebar on page 26), those results are not yet fully appreciated by the market, said Kalev Ruberg, Teck’s VP Future and chief innovation officer, at this year’s virtual Prospectors and Developers Association of Canada conference. “The transition has been so fast and effective that analysts have had very little time to react – and they’re not used to looking at this type of change within a mining company and gauging its effect,” Ruberg said in a panel on digitalization at PDAC moderated by Angelina Mehta, director of mining investment banking at Laurentian Securities. The difficulty is that while digitalization has created real value, quantifying that value is not necessarily easy to do – even though digitalization is all about collecting, measuring and acting on data. “These investments actually diffuse their value across the entire company,” Ruberg explained. “You’re changing the way that processing is done by 2% or 3%, but the diffusion of that value is across not only the processing but it begins with the haul, it begins with mining, and goes all the way back through logistics.” CONTINUED ON PAGE 22

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DIGITALIZATION Unlike investment in a physical asset, like a SAG mill that allows you to pinpoint an improvement in production, with digitalization, you get better production by using the same assets in a different way, Ruberg said. “You’re actually learning from the data that these assets are producing, so the assets are not only producing ore and metals – they’re actually producing data.” While he didn’t provide specific numbers, Ruberg noted that “the effect on EBIDTA has been significant and positive,” and that consultants McKinsey have estimated digital innovation has the potential to add 11-16% to the mining industry’s net income by 2025. “The early, quick value generation in 2019 and 2020 – even during Covid – more than convinced Teck’s leadership of the scale and scope necessary to achieve that significant change in value. The operational results both from a cost and production basis really bore that out during both years,” Ruberg added. “Now again, because it’s diffused, it’s very hard to say

well that actually made this difference, but in the operations, the folks who are operating these assets can pinpoint that value.” Getting there Mining companies have been focused on digitization – embedding technology into infrastructure to create a digital capability behind the physical assets, said Colin Williams, executive enterprise architect at IBM. The next step – digitalization – will essentially create assets that can think. “Through a digitization approach of using technology like IoT, sensors, 5G, we’re actually creating an infrastructure that will bring data out of the physical environment for us to be able to move into digitalization,” Williams said. It’s at the digitalization stage data is infused into an organization’s day-to-day capabilities to drive insights that will really allow it to improve efficiencies and focus on making the right decisions. Although the mining industry has been automated for many years, and generates an incredible amount of data, Williams

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noted that the next level will be to curate the data. “How do we bring this collection of data into insights that help individuals make better decisions, automate their processes and help them do their day-today work more efficiently?” Importantly, digitalization underpins the shift toward greater ESG transpar-

All the companies have set goals – 2040 GHG neutral, 2050 GHG free. How we get there depends very much on digital.” —KALEV RUBERG, VP FUTURE AND CHIEF INNOVATION OFFICER, TECK RESOURCES

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Kalev Ruberg. CREDIT: TECK RESOURCES MINING JOURNAL

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Teck Resources’ Highland Valley Copper mine in B.C. CREDIT: TECK RESOURCES

creating a digitalization roadmap and a business case outlining ROI and spend. Smaller companies generally ask for help finding a specific product or solution, Hannan said. “Smaller clients will say I have X problem, can you help me solve it? They have very specific problems because they haven’t really thought strategically beyond the

here and now.” That said, specific solutions, such as Rithmik Solutions’ predictive maintenance Asset Health Analyzer (AHA) for mobile mining equipment – which is on the Oren platform – can generate real and measureable value for companies. The solution, which uses multi-tiered AI/machine learning to create a digi-

CONTINUED ON PAGE 26

DON’T TOUCH YOUR FACE! ency and decarbonization, Ruberg noted. “All the companies have set goals – 2040 GHG neutral, 2050 GHG free. How we get there depends very much on digital,” he said. “Some of the technologies are future technologies – all of them rely on being able to control a very, very complex environment. And not only control the environment, but as Colin said the data have to behave on their own – they have to become their own masters in a way.” While Teck and other majors are taking a wholesale, comprehensive approach to digital transformation, smaller miners don’t have the resources to follow that approach – at least not without some help. One such place is Oren Marketplace, a platform created by IBM and Shell that aims to connect buyers and suppliers of digital technology for mining. Mark Hannan, U.S. digital venture lead with Shell, noted that the platform has attracted clients of all sizes since it launched in mid-2020, during the pandemic. “Companies don’t know where to begin with digitalization,” he said. “They can buy a solution from one provider, but how do you integrate that is the big part.” Large mining houses, which usually have centres of excellence, look to Oren for help integrating various solutions. Medium-sized companies need help MAY 2021

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DIGITALIZATION tal twin of equipment, shows early on when something is off for that equpment in that specific mine’s context and provide notice of failures well in advance. Rithmik co-founder and CEO Amanda Truscott said the offering, which is on the Oren platform, can save between $10 million and $50 million a year depending on type and size of mine, taking into account the reduced cost of maintenance and downtime along with reduced fuel consumption.

RACE21 Highlights Teck Resources began conceptualizing its RACE21 digitalization program in 2018, with an internal study that showed a compelling business case to establish a dedicated group within the company to support operations in the transformation. While the diversified miner was already well advanced in the adoption of digital technology before the official launch of the program in May 2019, RACE21 aimed to accelerate the process, generate significant new value and improve safety, sustainability and efficiency. The elements of RACE – renewing the company’s technology infrastructure, looking at opportunities for automation and robotics; connecting data systems to enable application of analytics and artificial intelligence; and empowering Teck employees – are all essential ingredients in a successful digital transformation.

• At the Highland Valley Copper operation in B.C., analytic tools in the plant together with drill to mill optimization and blasting improvements, resulted in a 7% gain in throughput and 2% increase in copper recovery. “We’re seeing similar improvements in other mills using these tools,” Gordon said. • From a productivity perspective, across all Teck sites with major truck and shovel fleets (for example, its four steelmaking coal operations and Highland Valley Copper), RACE21 has contributed to record haul productivity. • At the Trail smelter, blending optimization tools led to an approximate $5 increase in the margin per tonne of zinc concentrate processed while allowing end users to effectively handle complex blend conditions presented due to a challenging concentrate market impacted by Covid 19.

Creating a digital culture A central theme of the panel was the importance of culture in pulling off a successful digital transformation. This year, Teck also plans to expand The diversified miner says the program is “This needs to be put into the perRACE21’s scope to include water, tailings delivering measureable value for its copper, spective of an organizational stratand orebody knowledge with the metallurgical coal and zinc operations. In a development and deployment of digital presentation at PDAC, Teck’s Ross Gordon, egy,” said IBM’s Williams. It needs to Value Delivery Manager, orebody knowledge tools. It will also be carried over at the end be aligned and driven both from the of the year as RACE25. outlined some of those wins: top down and bottom up; and it needs to evolve as a culture within an organization.” communicating passion around where they’re leading the comBoards can help drive organizational change by creating and pany, Williams says. “It’s about people, not just technology. They need to see the vision, break that into proper programs, and address skill set issues,” he said. And if the board wants to go one step further, they should be using augmented intelligence at the corporate level, as well as making it available to maintenance technicians. “The big question for indivuals is do I trust the data, do I trust Accelerating Digital Transformation augmented intelligence to help me make right decisions – we in the Mining Industry for Process have to foster that culture,” Williams said. Optimization “I don’t think I’ve seen a board rely on an augmented intelAchieve higher production goals with our mining software ligence assistant in making their decisions over strategies. Why solutions for better engineering data management and not? The data’s there,” he said. “Do you trust in the data? Use improved fixed asset performance, from initial design to mining operation. that data with augmented intelligence to help make the right decision and profile it throughout the organization. It’s not just | Visit bit.ly/HexagonOpsExcelMining about setting the direction and guiding, but using it as well.” Rithmik’s Truscott added that while the pace of digital adoption in mining is accelerating, there’s still a lot of fear about new technologies – something that is important for mining leaders to acknowledge and address. It’s also essential to make room for employees to experiment and make mistakes. “An important element of creating a culture of innovation is creating a foundation of psychological safety – where people feel it’s OK to learn and grow and make mistakes. Innovation by definition requires those things,” Truscott said. Even though this is extra challenging in mines because physical safety is “paramount,” she suggested it can still be done. “Building a culture of innovation there means building a space or ©2021 Hexagon AB and/or its subsidiaries and affiliates. All rights reserved. enclave where it is specifically OK to make mistakes.” CMJ

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Autonomy lessons from early adopters

AUTOMATION

Turns out technology is just one part of the equation

By Adam Brumwell

utonomous and semi autonomous applications were terms once used to describe mines of the future, but that future is now. The industry as a whole is sold on the precision, efficiency and productivity benefits of autonomy, although we are still seeing a more conservative approach to adoption in Canadian mines. Making the shift to semi-autonomous or fully autonomous applications is complex, particularly in remote locations. It often involves a complete redesign of the mine and an overhaul of existing processes. We’ve learned from early implementers that the biggest challenge isn’t the technology itself but the impact it has on people, process and technology. To be effective, a significant amount of time needs to be spent on change management with a strong focus on all three components. When working together, it can lead to an increase in productivity and improved bottom line. A change management approach Autonomous trucks are programmed to operate largely on their own, delivering on their assigned tasks, only modifying their path to accommodate obstacles. They communicate with a central control system that is managed remotely by an operator. The truck can easily drive autonomously from point A to point B, or MAY 2021

Cat 7495 HF Shovel loads Cat 797F truck in an oilsands mine. Oilsands operations have been early adopters of automation. CREDIT: FINNING

Companies first need to identify the end-to-end process of how they work today and how they want to work in the future while closely managing the impact of change on their employees and business.

stop at the push of a button. It is 100% accurate and completely predictable. The key variable is the human component. In mining, where the stakes are high and the way of working has been the same for so long, autonomous implementation can often mean a significant adjustment. The biggest challenge is the organization’s ability to manage the resistance to change. Incorporating a remotecontrol dozer or two into your existing operating practices is a change; but implementing a full autonomous haulage system takes major adjustments and often calls for a complete redesign of mining operations. You’ll need to reconfigure your basic operating procedures and – most important – get everyone on board with the program from the start. This involves a commitment to change management and

CONTINUED ON PAGE 28

CANADIAN MINING JOURNAL |

AUTOMATION

Top left: An autonomous cab in the oilsands. Middle and bottom left: Autonomous touch screens. CREDIT: FINNING

a willingness to adjust to a ‘new normal’ around your autonomous system. But the benefits far outweigh the risks and the right technology dealer can help with this process – not only the implementation of the technology but looking at the skills and competencies of existing operators, risk mitigation and developing greater confidence in the change process and benefits. Collaboration is key Mines are a highly dynamic, complex environment and on any given day there are hundreds of things to deal with – from people, processes, costs, equipment and terrain to weather and material type. The first step is always identifying the problem to be solved, then you can determine the solution to address it and whether a 28 | CANADIAN

MINING JOURNAL

technology solution is the right answer. An autonomous mine site involves a lot more than autonomous machines. While the technology exists to build a truck that can navigate a haul road, it has to be able to work as part of a mine site system – interacting with every piece of equipment and person on site. Partnering with an equipment technology dealer who understands your business is key – they can help identify the infrastructure that needs to be in place, what technology is required and any gaps that may exist. This is an integrated approach, a collaborative effort between the mine management team and the equipment technology provider, using technology as a strategic tool to address safety concerns, increase haulage and productivity and lower your cost per ton. With an unpredictable market and budgets tighter than ever before, converting to autonomous operations is a big commitment. But as more companies implement autonomous systems, the cost of development and the application will become far more cost-effective. This symbiotic relationship works in the technology developer’s favour as well – the more the technology is being used and the more feedback received, the greater the adaptions to the technology, resulting in an even more effective system to support mining operations. www.canadianminingjournal.com

Left: A manually driven truck in the oilsands. This Cat 798 truck can be converted to autonomy. CREDIT: FINNING

The evolution of roles Autonomy allows equipment to operate 24/7 increasing efficiencies on site and totally eliminating downtime associated with breaks and shift changes. The value is undeniable and the benefits are obvious – greater productivity and increased safety for workers. So more focus needs to be placed on addressing what it will mean for jobs on the mine site of the future. There will always be a human element to operating mines and as the industry enters into this new era of autonomy, jobs aren’t necessarily being eliminated, but roles are evolving with the technology and skill set required. Technicians and data specialists who understand operational control, predictive maintenance and mine planning will be in high demand. Workers will need to be highly skilled in technology, computer science and engineering. Even the responsibility of the mining manager will shift – they will still need to understand general mining operations but they will also need to be well versed on autonomous technology systems. Recruitment is an essential part of the strategy. Labour shortages have long been an industry concern – many plan to retire in the coming years and there is a small pool of talent highly CONTINUED ON PAGE 30

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AUTOMATION skilled and educated in sophisticated technology. New workers may understand the technology but they won’t necessarily have an understanding of the mining environment. This experience, knowledge and insight cannot be learned by operating equipment remotely from an office. This next generation will need to tap into the knowledge from those who have decades of experience in the industry. Companies can also overcome concerns of role changes by offering training and education to transition more experienced workers into new roles. The mines of the future will have an expansive range of needs and roles – they’ll need both the experience and insight from on the ground and the skill level and expertise to manage the technology aspects of the business. eap the benefits and overco e the hurdles of change The successful implementation of these new technologies requires changes to every part of the mining business. However, people and process remain the biggest challenge, no matter how smart the technology is. Here are a few ways companies can help remove the barriers to implementation. w Identify technology champions: Technology champions can lead by example and reinforce the importance of change. When there is someone on site committed to maintaining forward progress, it’s harder to fall back into outdated practices that no longer support the operation.

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w Leverage education and training opportunities: When it comes to managing change within an organization, it is important to offer education and training programs. This will help prepare your people for autonomous implementation and can make a significant difference with respect to profitability, safety and extending equipment life. w Consider a staged approach: With a staged approach, participants are brought into the discussion early before full autonomy is deployed. While full autonomy is the end goal and can result in seeing the benefits sooner, a semi-autonomous approach may be easier to start with. It eliminates many manual tasks, improving safety and productivity while gaining the trust and confidence of employees through adaptation. Keep in mind, there are no semi-autonomous trucks, so with this approach it could also take longer to see the full benefits of the technology. w Focus on the safety benefits: Operators not familiar with autonomous technology may feel uneasy seeing a huge haul truck driving through a site without a driver. Sensor technology is now so advanced that autonomous trucks sense even the smallest of hazards and react instantaneously. It’s important everyone in the company understands that a switch to autonomous systems can have a huge impact on improving safety – removing workers from harmful situations. Automated equipment including haul trucks can also mitigate the danger of driver fatigue and boost the efficiency of the whole operation. w Help workers get comfortable with the changes: Mine sites need to assess existing processes, pick the ones that work and keep them in place until the team gets comfortable with the changes. When the time comes, it will be easier to transition to the new processes that will further improve operations. A proactive approach helps guarantee success Autonomy is a game changer in terms of improved efficiencies and productivity. Canadian mining companies are beginning to see autonomous technologies as a way to provide a safer and more proficient operation. The real benefits lie in a successful implementation, and when done right can add immense value – providing huge gains in productivity and cost reduction, offering improved safety, efficiency, and a lower cost per ton. To truly see business success, Canadian mines need to drive costs down and autonomy can help. In order to overcome the challenges of tomorrow, mining companies need to rethink the way they do business today, including the way they design, build and operate their mine. Working with the right equipment and technology dealer and making change management a priority can help companies successfully implement an autonomous system, gain substantial benefits in their operations and a significant CMJ advantage over their competitors. Adam Brumwell is the director of autonomous solutions and mining technology for Finning Canada (www.finning.com/en_CA.html). Adam and his team are accountable for implementation and support of autonomous, semi-autonomous, grade control and fleet management systems for mining customers across Western Canada.

abetterweigh@tdmicronic.com www.tdmicronic.com

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www.canadianminingjournal.com

DIGITALIZATION

Digital technologies are making it easier to collect and share environmental data. CREDIT: ADOBE STOCK/TOM SPARK

ENVIRONMENT, TECHNOLOGY & TRANSPARENCY: Rebuilding trust with stakeholders

It’s no secret: After decades of considering environmental performance as second priority, the mining industry urgently needs to regain the trust of communities, project stakeholders and funding partners. Using digital technologies to provide transparency through real-time environmental information can help the industry improve its reputation and rebuild trust. By Jerome Pelletier

n the past decade, mining companies have been improving their practices to prove that they are responsible corporate citizens. Canadian firms were the first to embrace corporate social responsibility (CSR) and they have adopted stricter environmental, social and governance (ESG) criteria in response to new regulatory requirements and national initiatives like Towards Sustainable Mining and ECOLOGO certification. These strides are important, but more still needs to be done to convince the general public of the commitments made by the mining

MAY 2021

industry. With growing worldwide concern about issues like water and air quality, the industry needs to step up its efforts to reassure the public that it is committed to environmental stewardship. Without a major concerted effort, mining companies will continue to face challenges such as push-back from communities – especially from the younger generation – as well as permitting issues and a labour shortage. In today’s world, digital technologies make data monitoring simple. It’s easy to monitor environmental indicators and share data in real time on the web. Also,

considering that other ESG factors, such as worker rights or health and safety records, can’t be so easily measured by technology, being transparent about environmental factors is relatively simple to achieve. “Transparency and accountability are the cornerstones of good governance in all economic sectors, and especially in mining,” said François Vezina, vice-president, technical services at Osisko Development Corp. “Gaining public trust is crucial to the future of our industry. With the right actions, we can improve conditions for

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DIGITALIZATION workers, communities and ecosystems, and position the industry as a responsible contributor to the modern economy.” Proven technology Real-time environmental data collection and sharing solutions – like battery-operated sensors, 5G technology and digital platforms – already exist and are easy to implement. In fact, similar setups are already used at operational mine sites, though the data is only reviewed periodically and compiled into late-stage reports. Recognizing the need to change stakeholder perceptions with transparency, we can use these existing technologies to give the public 24/7 access to environmental indicators and, in doing so, show good faith to those who are worried about mining operations’ impacts. For example, water quality monitoring devices could be installed downstream from a mine site – closer to towns or sensitive areas – and contaminant levels could be displayed on a public website. This would allow individuals, environmental groups and elected officials to keep watch over water quality in nearby streams, rivers and lakes. To make such an initiative successful, corporate decision-makers need to understand the importance of the user experience. The communication platform needs to be carefully designed by UX experts so that members of the public can easily understand the data, including the threshold values of the various factors. A confusing interface that does not promote transparency will only seed frustration. The platform could also provide a bidirectional communication channel for users to post questions of their own. A paradigm shift in communications and accountability Providing raw data in real time changes the corporate-public communications model. It opens the door to dialogue and feedback, while empowering community actors to hold mining companies accountable for taking swift action when needed. That said, the idea isn’t to force the public into a watchdog role. Environmental monitoring remains the responsibility of mining companies. “Posting data publicly will build stakeholders’ trust 32 | CANADIAN

MINING JOURNAL

since it gives community actors a guarantee that they won’t be kept in the dark about worrying trends or only find out about problems once serious environmental damage has occurred,” explains Vincent Clément, director, environment at BBA. “It also implicitly requires mining companies to track environmental data in real time – not just at periodic intervals, as is the standard practice – and respond with effective measures before the public sounds the alarm.”

Recognizing the need to change stakeholder perceptions with transparency, we can use existing technologies to give the public 24/7 access to environmental indicators and, in doing so, show good faith to those who are worried about mining operations’ impacts.

What’s the return on investment? Investing in digital technologies to increase transparency promises to pay dividends. The technical aspects, such as installing sensors and creating an online platform, have quite a low capital cost. More substantial expenditures are associated with new process creation, change management and personnel training, as well as the cost of actually applying corrective measures. However, executive committees must realize that these expenditures aren’t a luxury; they’re part of a crucial transformation of the mining business. You can’t quantify the cost of lost trust. In failing to think proactively and respond adequately to concerns, the mining industry has already experienced a massive loss in public confidence, leaving companies exposed to the risk of losing their licence to operate and struggling to get approval for new projects, both locally and globally.

Potential applications Real-time data sharing should be included in all new mining projects and added to existing operations. As the practice becomes more widespread, it will become a standard that communities expect. Monitoring tools could keep track of water quality and volumes, airborne particulates and even noise levels. Collecting large volumes of data today can also lead to better practices tomorrow. “Artificial intelligence can look for relationships between environmental fluctuations and factors such as temperature, rainfall or humidity levels,” says Michel Serres, innovation and digital transformation strategic advisor at BBA. “These insights could help environmental scientists figure out how to plan mining activities differently, making the industry more sustainable overall.” What will it take? Executives must be willing to uphold their companies’ ESG commitments. A new mindset is needed at the governance level to transform the mining industry’s practices and rebuild its reputation, one project at a time. While real-time environmental data sharing is intended to be just one part of a broader ESG strategy, it’s a concrete measure that companies can implement today. As such, it’s a direction that merits immediate consideration and should be included in mining companies’ digital roadmaps and business transformation plans. Under executive leadership, mining companies may embrace an even bigger change. The industry can set a new target: building trust with a larger audience, the consumer world. Open data will give the world access to new datasets, including things like company name, geography or type of metal. With this shift toward open source, the industry will be able to benchmark and reward environmental champions, best-in-class performance and industry frontrunners. These leaders will position themselves for greater operational certainty, better environmental management, improved market access and overall competitive advantage. Trust is everything, and it should be the CMJ foundation of our industry’s future.

Jerome Pelletier is Executive Director, Business Development with BBA.

www.canadianminingjournal.com

DIGITALIZATION

Creating a digital transformation roadmap. CREDIT: ABB

The mining workforce of the

FUTURE

Mining companies must embrace innovation and partner with a trusted technology provider if they want to attract and retain the next generation of digitally literate talent, and protect their licence to operate, ABB’s Roze Wesby explains.

By Roze Wesby

igital and automated technologies are transforming all facets of the mining industry, including the profile of its workforce. People have to be safe and protected first of all and for that to continue to happen progressively they have to be connected and enabled, and ideally upskilled rather than replaced. Understandably, most people want to know: “Is my job at risk, or will it vanish?” The answer is that manual roles that put workers at risk, such as explosive charging, are the most likely to be replaced with robotic or remote solutions. Other workers, those that carry out checks on electrical safety and maintenance systems, for example, will see the way in which they work fundamentally transformed, from physical inspection to using remote tools to proactively predict and prevent system failures. Workforce safety is vital, and if there is not yet an incentive,

MAY 2021

a carrot, at a national level in certain countries, there is certainly a stick. The Canadian government, for example, plans to issue financial penalties to operators that do not remove workers from the rock face during explosive charging. The onus is on technology providers to develop solutions such as robotics that enable miners to avoid such penalties and to protect workers. In both open-pit and underground mines, greater connectivity equals greater safety. More and more workers are now connected to a central operations hub in real time using short interval geo-location tools managed by an algorithm or manually from an integrated remote operations centre (IROC). Mining operators may track staff using geo-location devices in smart phones and wearables, enabling them to pinpoint their location in proximity to hazardous locations, processes or vehicles. CANADIAN MINING JOURNAL |

DIGITALIZATION

ABB believes mining companies can make themselves more attractive to digitally literate talent: CREDIT: ABB

New digital skillsets and change management Another common question: “Will digitalization and automation create new mining jobs that do not exist today?” In fact, this is already happening. Who would have thought, for instance, that data scientists with solutions architecture, coding and technology experience would one day be in demand at remote mine sites to carry out dashboarding, visualization and technology integration? Some companies are choosing to create in-house digital teams, while others outsource to providers like ABB to take advantage of software and coding expertise, on top of the knowledge of mechanical systems, and platforms such as ABB Ability Genix Industrial Analytics and AI Suite, Operations Management System and Stockyard Management System. In the future, mine operations managers, rather than focusing solely on throughput and process KPIs, will oversee the use of analytics tools and dashboarding that allow them to holistically consider the sites performance with consideration to safety and sustainability. This will require a new skill set to enable them to connect disparate systems, and make sense of, and augment, the algorithms being used. That role doesn’t exist right now. Across the entire value chain of a mining operation, from truck drivers to shift managers, every worker must adapt to the new technologies and processes that continue to be introduced. They should be prepared to improve their literacy in digital solutions from wearables to autonomous haulage and be open and able to work harmoniously with their new colleagues, whether it is with robots or perhaps data scientists. It is up to the chief operations officer, the head of mine operations and the management team to change the culture 34 | CANADIAN

MINING JOURNAL

Across the entire value chain of a mining operation, from truck drivers to shift managers, every worker must adapt to the new technologies and processes that continue to be introduced. They should be prepared to improve their literacy in digital solutions and be open to working with new colleagues.

of the organization to attract and retain a new generation of qualified, digitally literate talent. The technology transition must therefore be supported by the transformation of processes and people. How well a specific solution solves a use case must go hand in hand with how it fits within the overall operational business culture. Successful change management is key but is often overlooked.

Innovate, or lose competitive advantage The digital transformation is often referred to in terms of futuristic technology, but in fact, if it is done well, it is more a commitment to continuous improvement and perpetual change. One of the most notable trends to emerge during the Covid19 pandemic, for example, has been the advent of remote commissioning. ABB recently partnered with a zinc mine in Kazakhstan to explore commissioning of water-cooling towers using ABB Ability Remote Insights and Microsoft HoloLens headsets, allowing their own team in Spain to collaborate with www.canadianminingjournal.com

their team in Kazakhstan in real time and access hands-free data on field assets. Partnering with a technology provider at the earliest possible stage of a project is crucial to allow mining operators to define a coherent strategy and implement an effective solution architecture. ABB Ability MineOptimize is an integrated, end-to-end methodology that leverages ABB’s technologies and those of its partners to deliver a holistic solution architecture that considers the entire value chain: the stack of hardware, software, integration platforms, cloud platforms, visualization and analytics tools, as well as the various operations: electrification, maintenance, processing and sustainability. An example of this approach is ABB Ability Ventilation Optimizer, ABB’s Ventilation on Demand solution, where the mine ventilation system is directly linked to the geo-location of people and vehicles. Using fans only where and when they are needed can reduce overall energy consumption by up to half and maximize both safety and profitability. Licence to operate and recruitment By failing to embrace new technologies such as these, and integrate them successfully with existing processes and people, mining companies risk not hitting their KPIs and losing com-

petitive advantage. In addition to profitability and cost per tonne, failure to innovate can impact the licence to operate. If a miner is not taking quantifiable, documentable steps around HSE (health, safety and environment) and sustainability, it risks losing the backing of the board and investors and may not be permitted to work in certain jurisdictions. ABB is working with mining companies to help them reduce their CO2 footprint, which also reduces ABB’s Scope 3 emissions. By leveraging its position as both a mining vendor and customer, ABB – in addition to training its own workforce in the skills they need to work ethically and sustainably – can help operators transition to safer, more sustainable operations and protect their licence to operate. One of the stories heard most often from c-level mining executives is that their company is not attractive to the next generation of talent. Here again, presenting a brand image and a successful track record of investing in sustainability is the key to recruiting the skillsets required for the digital transition, and ensuring that the mining workforce of the future is protected, connected, and enabled for success. CMJ Roze Wesby is global digital transformation manager for process industries at ABB.

Maximize the value of your operation with RPMGlobal’s cutting-edge optimization solutions

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MAY 2021

CANADIAN MINING JOURNAL |

SOFTWARE

HOW

DIGITAL TWINS can help safeguard tailings facilities

Seequent shares insights into the potential of digital twin technology for better management, safety and sustainability By Pieter Neethling

nvironmental, socioeconomic and political risks along with a need to digitally transform the mining industry, has put tailings storage facilities (TSFs) in the spotlight. Better stewardship has become the crucial operational objective. This article explores the potential of a digital twin to help better manage performance, enhance sustainability, and improve safety. My career has spanned 35 years, and, in this time, I have experienced a compelling evolution of the industry. Intelligent mining is the new strategic imperative – a departure from siloed legacies towards an agile, value-driven business model. The drive to a digitally enabled, productive, safe operation is now key and the potential to create a dynamic digital twin is a game changer in the industry. The value of Seequent’s visualization technology lies in providing a constant, clear picture and a better understanding of the physical system throughout all phases of the project lifecycle. In doing so, geoscientists and engineers can make informed and timely decisions. 36 | CANADIAN

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What is a digital twin? Simply put, a digital twin is specifically designed to bridge the physical and digital worlds. It provides a virtual representation of an object or system across its lifecycle, using real-time data that can be examined, altered and tested but without real-world interaction or disturbance. In mining, a continuously or dynamically updated digital twin can incorporate changing sub-surface and geotechnical data to consistently evaluate all spatial, numeric and intellectual information of a facility in a powerfully visual 3-D context. TSFs are constantly evolving structures and potentially high risk. Ultimately, a digital twin can enable collaborative learning and reasoning to support improved decision making and identify problems early to help avoid negative consequences such as environmental damage or failure.

What is driving the change? As the mining industry becomes increasingly exposed to environmental, social and governance (ESG) compliance, there is a shift in the way the industry manages risk and adheres to responsible mining practices. Investors want to ensure that their money is used in a sustainable and responsible fashion. Responsible investment demands greater transparency in tailings management disclosure across industry, community, regulatory and financial stakeholders. To truly learn from a failure event and fulfil the ultimate goal of the global standard, complete transparency regarding a chain of events is essential. We can easily imagine how a dynamiwww.canadianminingjournal.com

Open pit mine with tailings dam. CREDIT: SHUTTERSTOCK/JOHN CARNEMOLLA

cally updated digital twin – with version control, multiple realizations of the geology, and a single source of truth – can give geoscientists and engineers options to explore different physical phenomena as a facility evolves, and to help prevent a potential disaster. Vast and complex challenges Tailings facilities are some of the largest built structures on earth, making understanding all data, analyses and decision-making processes, inherently challenging. As a TSF evolves with time, the change in the factor of safety and scenario testing to help predict potential failure is a huge concern. In our experience, technical teams believe the issue is MAY 2021

not only the data/file incompatibility but the lack of multi-disciplinary interaction and comprehension that causes miscommunication. Our conversations with senior management find a common thread where, reporting on storage facilities at varying ages, conditions and locations, with little standardization in how the structure is monitored, is a major issue. There is agreement that teams waste time struggling to get data into a useful and consistent format. Managers are not fully confident that they are delivering a comprehensive picture of all the assets and that problems are not being missed. Empowering teams to do better The key to any solution is that it provides

the means to work effectively as a team and ensure data transparency. These are the underlying principles that allow for a robust review and decision-making process. But how is this accomplished? Firstly, all stakeholders in the project, whether modellers from different geoscientific groups, project managers, Engineers of Record or third parties (such as consultants and joint venture partners) need to have access to the latest data in as near real-time as possible. Secondly, everyone needs to work collaboratively from a single source of truth to create up-to-date models that facilitate the development of a digital twin. A dynamically updated digital twin enables an adaptable design that allows CONTINUED ON PAGE 38

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SOFTWARE

Seequent Tailings Storage Facilities Solution

material changes to be identified “in the moment.” Informed field decisions can be made to either alter the design or accept the current construction trajectory that meets the factors of safety. A transparent o of infor ation Seequent’s TSF solutions include Oasis montaj, Leapfrog Geo, Leapfrog Edge and GeoStudio. These products bridge the gap between typically disconnected monitoring and technical analysis workflows to solve the data management and multi-stakeholder conundrum and centre activities on as-built performance and failure prevention. We understand that it’s not about one source of data or a single technology, but how you bring it all together that counts. Core to the solution is Seequent Central – a cloud-hosted model and data management system with web-based visualization that facilitates collaboration. We truly believe we can assist in the paradigm shift required to push tailings governance from a dominantly reactive,

Tailings Management Team Geoscientific data analysis and decisions

Mine Owner Ownership & responsibility

Tailings Storage Facilities Engineering Consultants, Principal Engineer Technical sign off & due diligence

Communities & Others Due diligence, transparency, openness, communication

Seequent’s software solutions offer dynamic modelling and rapid easy updating designed to keep the technical understanding and risk analysis of a facilities digital twin consistently up to date.

long-term modelling approach to a more strongly agile, even predictive short-term modelling method. CMJ Pieter Neethling is one of five Segment Directors

at Seequent who focus on delivering solutions to complex earth challenges across the mining operations, mining exploration, environmental, civil and energy industries. He can be reached at pieter.neethling@seequent.com.

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OPTIMIZE DAILY ROUTINES WITH

MICROMINE Do you know how much time your team is losing every day just to customize the appearance of your data, and then document the steps you have taken to get to the end result? Or even worse – have you ever sent high-grade ore to the waste dump simply because the blocks in the model had a different color? The answer is – these are both avoidable and there is a simple solution these problems.

The amount of time spent manually saving technical parameters and / or changing color sets may not seem excessive at the first glance. However, those 10-15 minutes a day adds up to more than 50 hours a year, that’s practically an entire Christmas vacation, for each team member! Thankfully, Micromine has the solution; its user interface is built around the idea of keeping things organized in intuitive manner. Every tool has its own form set that stores technical parameters and visual customization. If you need to figure out “what went into the model” – you can just open the form set database and find a record with appropriate date modified / name. Even better, this approach allows the user to create multiple views for different kinds of tasks. For instance, if you want to switch from your drillhole planning view to resource model update, there is no need to manually load each individual

layer, you can “group” required layers and save it as view. Saving the form set is the first step in building an automated process with a macro. Virtually any form set can be used in a macro, all you have to do is chain existing form sets together similar to how you plan your day. No specialized training required – just select the tool, the form set that you would like to use, put few comments, and the macro the ready for production. If you are up for the challenge, Micromine provides its own Python API that allows users to record and re-use most of the tools. So, creating a script is as simple as toggling on the record button and manipulating the form sets using Python scripting. No need to reinvent the wheel! If you are looking to try something more ambitious, the Micromine support team is always just a call or email away. —Denis Li

SOFTWARE

Unleashing innovation in

MINE PLANNING RPMGlobal on advances that are helping mine planners stay ahead of the curve By Lorrie Fava

ine planning is being transformed by recent advances in technologies, ranging from rugged devices in the field for monitoring equipment operation and scanning rock faces, to optimization software in the engineering office. The digital transformation sweeping the industry is enabling engineers and planners to spend less time on tedious detail work and instead consider a broader range of scenarios than was previously feasible. An exciting next phase of technological breakthroughs is emerging, relating to mine planning workflows. With recent advances in decision-support software for all aspects of the mine planning cycle, every step of an existing mine planning workflow can now be examined with a fresh perspective, rooting out any aspects that are found to be legacy issues from technology of a prior generation. As an example, consider at a high level the well-established planning process for a surface mine. From a block model, a sequence of pushbacks is designed, comprising the ultimate pit. Building on these pushbacks, a long-range schedule is subsequently generated. RPMGlobal’s Schedule Optimization Tool, SOT, generates the ultimate 40 | CANADIAN

MINING JOURNAL

Often the optimization software may produce a solution that the planner initially finds to be counterintuitive After a thorough revie this can be an occasion for reali ing that a conventional practice is actually limiting value in the case at hand

pit and the strategic life-of-mine schedule in one process. Why might a planner then feel the need to formulate pushbacks from such a solution? Every time technology advances, this type of question can be posed across the planning cycle, in relation to individual steps of the process and more broadly. Gradually at times, and occasionally with step changes, new planning methodologies will emerge. Several planning engineers and advisors are providing leadership in the industry by developing and sharing innovative workflows. Their expertise is being applied to the development of study roadmaps that aim to maximize the value derived from a mining property, exploiting the latest optimization software tools. For underground mining, the study roadmap will commonly include iteratively optimizing financial models, geological and structural models, stope designs, access designs, and schedules, with increasing detail as study of the property progresses. It’s important to know at any given stage what aspects of the plan require a more detailed formulation. Is it sufficient to know that a plant

upgrade will be required after year 10, or is it important to have more clarity on the timing of the upgrade, because it impacts other aspects of the plan? Sensitivity analysis can be undertaken at a strategic level in a consistent and much less time-intensive manner than was possible with prior technologies. Again taking an example from SOT, the planning engineer can evaluate the optimal timing for a plant upgrade that will increase capacity, relax blending constraints, and improve recoveries, assessing dozens of alternative scenarios in a matter of hours. Often the optimization software may produce a solution that the planner initially finds to be counterintuitive. After a thorough review, this can be an occasion for realizing that a conventional practice is actually limiting value in the case at hand. It is inevitable that in parallel with the development of these innovative workflows there will be a progression towards more facilitation of such processes on the software side, and towards the establishment of new best practices on the engineering side. www.canadianminingjournal.com

Integrated approach A primary benefit of these efforts by mine operators and software providers is, of course, financial. A significant increase in net present value is generated, or a solid business case is produced for the expansion of an operating mine. However, the improvement in mine plans is not only economic, it is also in relation to the quality of the plan. A multidisciplinary roadmap customized to the mining operation ensures that the input of various domain experts is brought into the planning process in a timely manner. Advanced software platforms on offer today provide transparency and a channel of clear communication among technical teams. They have continual access to the updated planning information, designs, and schedules to fine tune their input appropriately. Thus, all technical teams can weigh in from their respective areas of expertise early in the planning cycle. The outcome will be a safer, more robust, and highervalue mine plan. In addition to breaking down silos between technical teams, silos between MAY 2021

facets of the planning process can also be addressed. Optimization of each facet in isolation limits value. This can be clearly seen in the example of a plant that is shared by mines that are each optimized separately. Not only will it be prohibitively difficult to get a consistent blend in the plant feed, but even the initial allocation of plant capacity across the two mines for the long-range plans can destroy value. SOT allows the simultaneous optimization of multiple mines, underground and surface, in one process. Across the industry, software platforms provide opportunities for process integration and an increasingly holistic planning approach. Right timing for decisions With improvements in technology, strategic planning decisions throughout the planning cycle are evidence-based and fully auditable. Some strategic decisions can now be made later in the planning cycle. How many years before mining a particular zone is it necessary to settle on the cutoff grade for that zone, or even the access points? In the years preceding its

RPMGlobal’s Schedule Optimization Tool. CREDIT: RPMGLOBAL

excavation, the product price projections will have changed, and the orebody will be better defined. A robust plan will allow the planning team to carry forward multiple options and decide when to decide. Whatever the strategic decision being contemplated, each domain expert will know when they have enough information to narrow the range of options with confidence. If there is an opportunity cost of postponing a strategic decision, that cost can be weighed against the availability of more information and resolved uncertainty. Strategic mine planning workflows, leveraging the technological innovations of ever-increasing optimization capabilities and integration opportunities, create value and unlock creativity, helping mine planners stay ahead of the curve. CMJ Lorrie Fava is SOT and Attain product manager with RPMGlobal (www.rpmglobal.com). CANADIAN MINING JOURNAL |

COMMUNICATIONS

MINING 4.0 comes of age with private wireless

Underground mining environments create a difficult environment for connecting miners and machines, but private wireless is addressing this for various operators globally. CREDIT: NOKIA

By Calin Miculescu

ndustries as diverse as medical care and manufacturing are being digitally transformed by Industry 4.0 technologies – and mining is no exception. ‘Mining 4.0’ makes use of technologies such as edge computing, artificial intelligence and machine learning (AI/ML) and IoT sensing as well as high bandwidth, low latency wireless networks to power a list of use cases that automate critical processes, improve worker safety and increase productivity and efficiency. While some 42 | CANADIAN

MINING JOURNAL

of these use cases would have seemed wildly futuristic, even a decade ago, others are small but crucial enhancements to well-known operations practices. Either way, both surface and underground mines provide challenges for the application of these technologies. One of the most demanding, but also most critical areas involves wireless communications. Reliably connecting IoT sensors, handheld devices, workers, vehicles and equipment wirelessly is difficult for traditional IT communication technologies like Wi-Fi, which aren’t suitable for underground and

weren’t designed for large open areas. Perhaps because of these challenges, the mining industry was an early innovator in using private wireless networks based on 4G/LTE. Nearly a decade ago, Rio Tinto began experimenting with running autonomous haul trucks in Australia’s Pilbara region. They originally used Wi-Fi but ultimately abandoned the technology because the network performance was too unpredictable, causing additional operational expense and technician headaches due to constant network drops. The predictable wireless connectivity www.canadianminingjournal.com

4G/LTE provided, however, solved Rio Tinto’s issues and autonomous haulage has since become commonplace in the Pilbara – and many other open pit mines worldwide. Using private wireless for other applications was relatively simple as long as they operated on the surface. The next frontier for private wireless was going underground. Underground communications Because underground mining environments are characterized by confined spaces and continuously increasing networks of drifts and galleries, there are a wide variety of harsh production areas – in spiral ramps, vertical shafts, horizontal and narrow drifts with massive rock walls. This creates an understandably difficult environment for connecting miners and machines, because propagating radio waves through solid rock isn’t simple, and there is a lot of potential for blind spots. Fortunately, the mobile communications industry solved many of these radio propagation issues over the last two decades as they sought to bring 3G, 4G/LTE, and soon 5G services to subway commuters and provide high bandwidth coverage within the labyrinth of underground walkways and parking lots in dense urban centres. As a result, cellular wireless systems now have the capability to be deployed, with the proper planning, in almost any underground environment using a combination of radio technologies such as small cells, micro remote radio heads (RRH), distributed antenna arrays (DAS) and radiating cables (also known as leaky feeders). Taken a step further, this technology has been ruggedized, so it can also reliably operate in harsh underground mining environments. This kind of innovation ensures that private wireless is now the most suitable communications technology to support teleremote operations and automation applications in underground mines, while the same network infrastructure and services can be deployed above ground to support telemetry applications, autonomous vehicles and critical voice and video communications across entire mine sites. MAY 2021

Private networks A growing number of global mining companies, including BHP, Vale and Teck, have announced Mining 4.0 projects based on private 4G/LTE connectivity, and some of them, like Codelco in Chile, have started running 5G pilots. One of the organizations that is actively exploring the possible use cases for Mining 4.0 technologies, is Norcat, which has its Underground Centre in Sudbury, Ont. In 2020, Norcat partnered with Nokia and CENGN (the Centre of Excellence in Next Generation Networks) to install a private 4G/LTE underground network at the facility. The network is fully operational and is used by Norcat’s ecosystem partners to develop, test and showcase cutting-edge products and services. Sandvik, a global supplier of automation and digitalization for underground mining, has also implemented a private 5G standalone (SA) network in its test-mine facility in Tampere, Finland. The network will

5G also supports most video applications used in the teleremote operations of drill rigs, bolters and LHD loaders. It can also support video from drones and CCTV cameras used for operations monitoring and security surveillance – and can even be used for augmented reality (AR) applications, such as heads-up displays used by repair crews with remote assistance from experts. Private wireless also supports the specific communications capabilities of large sensor networks, which can be used to gather data on structural integrity, temperature, humidity, water leaks, gas levels, dust, noise and vibration. This data can then be analyzed by AI/ML algorithms and used to improve ventilation systems, trigger geo-fencing alerts to nearby workers, or flag the need for safety inspections of critical infrastructure. Additionally, private wireless can be used for worker safety by connecting smart personal protective equipment (PPE) for

Having a single wireless network for nearly every possible use case unleashes the potential of Mining 4.0. The more data that can be shared, the greater the possibility of finding correlations using analytics and AI/ML to identify inefficiencies in individual applications or system-wide processes.

enable the company to showcase an entirely new range of game-changing products and capabilities, with the ability to run several different applications over the network. With 5G, Sandvik will be able to reserve a certain capacity from the bandwidth for specific applications – resulting in predictable performance and improved reliability. Having a single wireless network for nearly every possible use case unleashes the potential of Mining 4.0. The more data that can be shared, the greater the possibility of finding correlations using analytics and AI/ML to identify inefficiencies in individual applications or system-wide processes. The high bandwidth of 4G/LTE and

monitoring heart rate, oxygen levels or the presence of local health hazards. The digital transformation of mining is picking up steam as mine operators around the world embrace the power of Mining 4.0. The number of use cases that can leverage private wireless technologies is potentially unlimited. In practice, this means that the question of which connectivity technology to use has finally become a non-issue. This is resulting in a big reduction in operating costs and a huge increase in possible operational gains – CMJ both above and below ground. Calin Miculescu is Nokia’s director, Canadian Mining. CANADIAN MINING JOURNAL |

A PRI L 20 21 | VO LUME 2 | ISSUE 4

ON THE MOVE

Canadian Mining Journal May 2021

Articles inside

Mining 4.0 comes of age with private wireless

Unleashing innovation in mine planning

How digital twins can help safeguard tailings facilities

ENVIRONMENT, TECHNOLOGY & TRANSPARENCY: Rebuilding trust with stakeholders

Autonomy lessons from early adopters

The digital proposition

How blockchain will help miners meet evolving ESG demands

ABB offers advice on how miners can attract and retain the digitally literate workforce of the future