Canadian Mining Journal - October 2015

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October 2015

GOLDEN GLOW

Canadian Malartic Mine brightens future for small Quebec town

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CANADIAN Mining Journal

OCTOBER 2015 VOL. 136, NO. 8

www.canadianminingjournal.com

FEATURES MINING IN QUEBEC 10 CANADIAN MALARTIC MINE Agnico Eagles’ Canadian Malartic Mine is located in downtown Malartic, Quebec, and serves as a perfect example of how a huge mining project can work in harmony with neighbours in a small community.

16 DUMONT NICKEL Royal Nickel’s Dumont property in Quebec’s Abitibi region contains enough nickel to support the fifth largest nickel sulphide operation in the world.

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EQUIPMENT MAINTENANCE & REPAIR 22 24 26 28 30

TRUCK BODIES SCREENS MINE HOISTS LUBRICANTS CRUSHERS

DEPARTMENTS 5 EDITORIAL This month Editor Russell Noble once again talks about the upcoming federal election and why the medical term E.D. has a new meaning. Instead of its true definition of “Erectile Dysfunction,” Noble says it should mean “Electoral Disinterest” in reference to the election because most people don’t appear to be very ‘excited’ about it.

7 FIRST NATIONS Ontario Regional Chief Isadore Day, Wiindawtegowinini, comments on Canada’s broken economy and why First Nations should have been called upon during the federal election to help fix it.

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8 LAW A column by Jean-Phillippe Buteau and Pierre-Christian Labeau of Norton Rose Fulbright, Quebec, talk about legislative developments in Quebec.

9 CSR & MINING A regular column by Michael Torrance, a lawyer in Norton Rose Fulbright’s Toronto office, on Corporate Social Responsibility.

32 IN MY MINE(D) Rob Metka, Global Managing Director (Minerals), Hatch, looks at why asset management is key to improving performance.

34 UNEARTHING TRENDS Rahid Fazal, EY’s Quebec Mining & Metals Leader, talks about the risks and opportunities Plan Nord brings to the mining industry, and the province.

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GOLDEN GLOW

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October 2015

ABOUT THE COVER This month’s cover is a picturesque view of Canadian Malartic’s huge gold mine in Malartic, Quebec.

Canadian Malartic Mine brightens future for small Quebec town

Coming in November Canadian Mining Journal’s popular Buyers’ Guide

OCTOBER 2015

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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

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EDITORIAL

CANADIAN Mining Journal October 2015 Vol. 136 — No. 8 38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Tel. (416) 510-6789 Fax (416) 447-7658 www.canadianminingjournal.com

Editor Russell B. Noble 416-510-6742 rnoble@canadianminingjournal.com Field Editor Marilyn Scales 613-270-0213 mscales@canadianminingjournal.com Art Director Stephen Ferrie Production Manager Jessica Jubb Circulation Manager Cindi Holder 416-510-6789, ext. 43544 cholder@glacierbizinfo.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales Western Canada, Western U.S.A. and Quebec Joelle Glasroth 416-510-5104 jglasroth@canadianminingjournal.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Group Publisher Anthony Vaccaro Established 1882 Canadian Mining Journal provides articles and information of practical

use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining.

BIG is located at 38 Lesmill Rd., Unit 2. Toronto, ON, M3B 2T5.

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 Russell Noble at 416-510-6742.

Subscriptions — Canada: $47.95 per year; $76.95 for two years.

USA: US$60.95 per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST registration # 809744071RT001.

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-888-502-3456 ext 2; Fax: 416-447-7658; E-mail: cholder@glacierbizinfo.com Mail to: Cindi Holder, BIG Mining LP, 38 Lesmill Rd, Unit 2, Toronto. ON, M3B 2T5.

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs.

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By Russell Noble

E.D. and its new definition

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he medical definition for E.D. is “Erectile Dysfunction,” but during this campaign to elect a new Prime Minister, I think those two letters more appropriately stand for “Electoral Disinterest” because nobody seems too ‘excited’ about the election.

At least that’s the impression I get when talking with the politically minded people I know across the country who are normally quite outspoken when it comes to what goes on in Ottawa.

But, and before I go any further, as much as I’d like to take credit for that “electoral disinterest’ definition I mentioned above, I must admit that I heard it on an elevator in Vancouver recently, but thought it was clever and perhaps true enough to repeat.

In any event, back to the election and what to me seems like a lackluster campaign that’s been overshadowed by the Toronto Blue Jays, the NFL season, and Donald Trump’s antics that are just warming up.

I must say that from a mining perspective, there hasn’t been much to give this struggling industry much immediate hope for brighter days ahead. In fact, aside from a few token pledges for investments into resource-related projects, little beyond the oil sands have been given a mention.

Even Bank of Canada Governor Stephen Poloz said more about the natural resources sector than the three main party leaders when he told a business audience in Calgary recently that about 20% of Canada’s economy is the resource economy and “That’s very important: it’s our backbone. It’s always been our history, and the rest is in some way dependent on that continuing to perform.”

I know it’s in the best interest of the Bank of Canada for money makers like miners to make more money and again, Poloz supported his position in favour of this by saying, “We’re a highly diversified economy, and we should be thankful that we’ve got resources as a part of our diversification, whereas lots of other countries don’t have that.”

Being “thankful that we’ve got resources” is something that’s often overlooked, and sadly, that appears to be the case during this election because, again, not much is being committed to natural resources, and in particular to mining.

The Opposition leaders have taken aim at Prime Minister Harper for not doing more to diversify the economy but in fairness, what commitments have they promised to directly help miners?

Millions of dollars are being mentioned for everything from health and education, to pledges for Veteran Affairs’ issues, to astronomical amounts to replace Canada’s aging fleet of CF-18 aircraft with 65 F-35 fighter jets, but nowhere do the words “mining industry” jump out.

Even the Ministry of International Trade’s interest in promoting mining abroad, as it did with its now-defunct Extractive Sector CSR Counsel, is no longer out there working on the industry’s behalf.

And quite honestly, now is when it’s needed more than ever because of the uncertainty from China for international support for technology, as well as trade.

All in all, the opportunities to support the mining sector have been out there for all politicians to run with but unfortunately, not too many have seen the value in it because promoting natural resource development isn’t as newsworthy as hugging babies and shaking hands with the people who support them anyway.

It’s all about photo opportunities with the converted, and not so much with the real issues that are weakening the backbone of this country. CMJ CANADIAN MINING JOURNAL

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FIRST NATIONS

Economy is broken: First Nations needs to be fully involved

By Ontario Regional Chief Isadore Day, Wiindawtegowinini

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aking concrete commitments to fully involve First offs, there could easily have been a $19 billion surplus achieved Nations in Canada’s energy and resource econothrough the revenues generated by First Nation resource develmy should have been front-and-centre during this opment companies. federal election.

The time to fairly and fully involve our Peoples in Canada’s However, none of the federal leaders truly addressed the economy must begin with the next government. We cannot impoverishment that holds both us and the Canadian economy afford to lose yet another generation to poverty, suicide, missing back. None of the leaders offered any clear visions or solutions for and murdered women, and children in care. including the original Peoples in Canada’s shared future prosperity.

Two years ago, First Nations were promised $1.9 billion in eduInstead of ripping and shipping our raw resources, why not cation funding. Another billion dollars on much needed social acknowledge that First Nations can take charge of responsible programs has gone unspent so Indian and Northern Affairs Canada development and value-added refining and manufacturing here (INAC) bureaucrats can collect bonuses for annual cost savings. in Canada?

The shameful reality about this so-called surplus is the cost of The fact remains that Canada has lost at least two decades of doing nothing. If First Nations had equal education and employopportunity to fully involve First Nations in the economy. ment levels with the rest of Canada, we would save $115 billion Canada’s economy is broken and can only be fixed by fully in costs related to poverty and contribute $400 billion to engaging with First Nations in Canada.

Canada’s economy.

The groundbreaking 1996 Royal Commission on Aboriginal What Canada needs is real leadership that includes eliminatPeoples (RCAP) predicted that First Nations would be major ing poverty and despair. What Canada needs is a real surplus contributors to Canada’s economy within 20 years if we received earned through economic prosperity for all. a significant land base on which to generate our own economies.

The time to be proactive, the time to invest in First Nations Rather, successive federal governments have failed to make is now. We want what all Canadians want – safe, prosperous, those significant investments in land and resources. Instead, happy lives for ourselves and our children. billions of our dollars have been wasted in perpetuating poverty We want a government that will be courageous and intelligent for our Peoples. enough to work us; securing our rightful place within Canada. CMJ Imagine for a moment; if First Nations had complete control of our traditional lands PROSYGMA.CA - there is no doubt we would not be suffering Phone: 450 442-5100 | Toll-free: 1 800 736-6160 abject poverty.

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CONSULTING SERVICES | TRAINING | RELIABILITY AND MAINTENANCE EXPERTISE We could ensure that these projects are environmentally sustainable as possible, and monitored for healthy ecological co-existence.

Instead, we have crumbling infrastructure in our communities and no significant energy and transportation infrastructure to make major resource projects viable.

In a debate on the future of Canada’s economy, we need real leadership – and a WE HAVE THE TOP bureaucracy – with the vision and fortitude CALIBRE PROFESSIONALS to see the value of having First Nation investTHAT YOU NEED! ment in Canada’s broken economy.

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LAW

Legislative developments in Quebec

By Jean-Phillippe Buteau and Pierre-Christian Labeau

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his summer, the province of Quebec has seen several new developments that may have a significant impact on the mining sector: the introduction of Bill 55 on transparency measures, the issuance by the BAPE of its report on uranium exploration, and the publication by the Secrétariat aux affaires autochtones of an informative document for developers regarding relations with aboriginal communities.

Bill 55: An Act respecting transparency measures in the mining, oil and gas industries With the federal Extractive Sector Transparency Measures Act coming into effect at the beginning of the summer, transparency measures have been at the centre of Quebec’s Government recent concerns. Bill 55 was tabled by Quebec’s Minister for Mines on June 11, 2015, with the aim of enhancing transparency measures in the mining, oil and gas industries. These measures are intended to discourage and detect corruption, and to foster the social acceptability of natural resource exploration and development projects.

Scope

If adopted, the Act would apply to organizations that engage in the exploration or development of mineral substances or hydrocarbons, and that have a significant presence in Quebec.

Businesses that transport hydrocarbons rather than produce them, such as pipeline companies, will not be subject to the Act.

Annual statement, oversight by the AMF and penalties

Bill 55 proposes that the subjected entities will have to annually report all payments, equal to or greater than $100,000, made to the same payee. Once submitted to the Autorité des marchés financiers (AMF), the statements will be public for five years.

In addition to its general powers of investigation, the AMF will be empowered to require the communication of any information deemed useful for the purposes of the Act. Moreover, the AMF may impose penalties to any party subject to the provisions of the Act for non-compliance.

“Payees” under Bill 55

The payments subject to the above requirement include all those made to the government, a body established by two or more governments, a municipality, the Kativik Regional Government, a First Nation, an entity that exercises powers or duties of government or any other beneficiary designated by regulation of the government.

At the present time, special consultations and public hearings on Bill 55 are being held.

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BAPE report on potential uranium mining operations in Quebec Since the start, the idea of uranium exploration in Quebec has raised concerns on security and environmental impacts. As a result, the Government has taken measures to assess the sustainability and the feasibility of the uranium projects in the province. During the last year, the Bureau d’audiences publiques sur l’environnement (BAPE) held several public consultations in order to establish the potential of uranium mining operations in Quebec. In its report to the Minister of Sustainable Development, Environment and the Fight against Climate Change dated May 20, 2015, the BAPE concluded that allowing such operations would be counter-productive in the current context.

According to the BAPE, there is a lack of reliable data on the possible impacts of long-term uranium exposure.

The public consultations conducted by the BAPE rapidly revealed that social acceptability would be an issue if the province was to allow uranium mining operations. Also, several parties, including Aboriginal communities, expressed their restraint based on the potential risks associated with uranium exploration and the vagueness surrounding the management of radioactive tailings.

The BAPE concludes that a proper long-term risk management plan is essential if the Government wants to go forward and allow uranium exploration. The costs anticipated with the uranium waste storage is one issue that has to be evaluated.

Relations with Aboriginal communities: Quebec publishes an informative document for developers The Government recently published an informative document on Aboriginal factors to be considered by any developer contemplating a natural resource development project, Information for Developers and General Information Regarding Relations with Aboriginal Communities in Natural Resource Development Projects. It provides avenues for establishing harmonious and constructive relationships between developers and aboriginal communities.

Steps that can be taken by developers

It is recommended that developers establish regular contact with the communities that could potentially be affected by their projects, notably at the preliminary phase in order to learn about the Aboriginal communities’ concerns and expectations. CMJ BUTEAU AND LABEAU are partners at Norton Rose Fulbright’s Quebec office.

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CSR & MINING

Grievance mechanisms and CSR

By Michael Torrance

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rievance mechanisms are a key tool for developing feedback loops with affected communities and stakeholders, including employees, in relation to global projects. Grievance mechanisms are not only good practice, but are part of the CSR approach endorsed by the Government of Canada’s Corporate Social Responsibility (CSR) Strategy for the Extractive Sector (the “CSR Strategy”), and forms part of the expectations of international financiers like Equator Principles banks that apply CSR standards in financing due diligence processes.

The CSR Strategy and Equator Principles both adopt the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards). The IFC Performance Standards provides detailed guidance and requirements on the establishment of grievance mechanisms.

Worker Grievance Mechanisms A grievance mechanism for workers is also expressly required by IFC Performance Standard 2 – Labour and Working Conditions (PS 2). In a workplace context, a grievance mechanism must address complaints and communications from internal stakeholders, namely workers. Where grievance mechanisms are already provided through a collective bargaining agreement that meets the requirements of PS 2, such mechanisms can be used to satisfy the requirements of this IFC Performance Standard.

The establishment of a worker grievance mechanism ensures concerns are brought to management’s attention and addressed expeditiously. The mechanism should be made available to direct workers as well as contracted workers. Such a mechanism must be developed with an awareness of judicial and administrative mechanisms available in the country for resolution of workplace disputes and should not impede access to these judicial mechanisms.

If workers are not covered by a collective bargaining agreement, under PS 2 grievance, mechanisms would be developed for unrepresented workers. Alternatively a company could discuss with any unions the feasibility of extending grievance procedures under the collective bargaining agreement to non-union personnel.

To ensure its functionality, workers must be informed of the mechanism at the time of hire and informed of how to access the mechanism. This mechanism should be designed in a way that is appropriate for them, easy to understand, and adapted to the communications challenge they may face (e.g., language, literacy levels, level of access to technology).

A clear policy and procedure for expressing workplace concerns should be established by all companies and communicated to all workers in a clear and understandable manner, with training on how the grievance mechanism will operate. Workers’ OCTOBER 2015

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representatives should be part of the process of implementation.

Community Focused Project Level Grievance Mechanisms Generally speaking, the IFC Performance Standards require that any project that is likely to generate adverse environmental and social impacts on Affected Communities have in place a project level grievance mechanism. Such a mechanism should be accessible to the Affected Communities and create a process for receiving, addressing, recording and documenting complaints and communications from external stakeholders.

In the case of large projects with potentially complex issues, IFC Performance Standard 1 – Environmental and Social Management Systems, requires that a robust grievance mechanism should be established and maintained from the beginning of the impact assessment process onwards. A grievance mechanism is a locally based, formalized way for a company to accept, assess and resolve community complaints related to company activities. It provides a way to reduce project risk by offering communities an effective avenue for expressing concern and promotes a mutually constructive relationship.

A grievance mechanism should draw upon conflict resolution resources of the company, as well as traditional, customary and private systems of alternative dispute resolution in affected communities, such as mediation, conciliation and arbitration. In developing grievance mechanisms, clients must understand cultural customs and traditions that may influence or impede their ability to express their grievances, including differences in the roles and responsibilities of subgroups (especially women) and cultural sensitivities and taboos.

The qualitative aspects of a grievance mechanism necessary for its effectiveness include that: communities raising an issue receive acknowledgement of the concern; the company makes efforts to modify its conduct where appropriate; the company’s response is honest and forthright; and some remedial action is taken where appropriate.

In applying these principles, it is imperative that grievances are not handled in an arbitrary or ad-hoc manner. Grievances should also not be dealt with in a rigid manner that simply reinforces or exacerbates power imbalances.

A well-functioning grievance mechanism provides predictable, transparent and credible processes resulting in outcomes that are seen as fair, effective and lasting, builds trust, and enables systematic identification of emerging issues and trends, facilitating corrective action and pre-emptive engagement. CMJ MICHAEL TORRANCE is a lawyer in Northern Rose Fulbright’s Toronto office.

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MINING in QUEBEC CANADIAN MALARTIC MINE

Aerial photo of Canadian Malartic Mine by Hugo Lacroix clearly shows the size of the open-pit mine and its proximity to the Town of Malartic.

DOWNTOWN

GOLD

MINE

CANADIAN MALARTIC MINE PUTS SMALL QUEBEC TOWN ON THE INTERNATIONAL MAP

By Russell Noble

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mall towns in Quebec range in size from the smallest, Barkmere (pop. 58), to one of the larger, Shawinigan (pop. 50,060) and, as can be imagined, there are many bigger and smaller ones in between.

In fact, according to the federal Ministry of Municipal Affairs, Regions and Land Occupancy, between Barkmere and Shawinigan, there are at least 40 other towns considered ‘small’ by the government’s 2011 statistics, and one of note is the Town of Malartic, with a population of only 3,449 people.

But, unlike all of the other ‘small’ Quebec towns, the Town of Malartic is perhaps a little more newsworthy because it is ‘big world’ by comparison to the others thanks to the Canadian Malartic gold and silver mine that is located literally steps from downtown.

To be more precise, there are exactly 96 steps (circled in photo) separating one of the larger gold and silver mines in Canada from the town’s quaint houses and pristine playground and recreational centre.

Located on Highway 117 in the heart of the prolific

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Abitibi Gold Belt in Quebec, approximately 25km west of Vald’Or, the Canadian Malartic Mine has been a mainstay of the town’s economy since 2005 when then-owner Osisko Mining Corporation initiated exploration drilling, followed by construction, until the first gold pour six years later in April, 2011.

Osisko operated the mine until June, 2014, when it was acquired jointly by Agnico Eagle Mines Limited (50 per cent) and Yamana Gold Corporation (50 per cent).

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it is now the largest operating gold mine in Canada... and its partners are continuously working to keep that status. The mine poured its millionth ounce of gold in November, 2013, and with 55,000 tonnes of ore scheduled to be mined from its open pit daily, Canadian Malartic Mine expects to produce approximately 560,000 ounces of gold (on a 100 per cent basis), and about the same number of ounces of silver in 2015.

The mine has 8.66 million ounces of gold in proven and probable reserves; 254 million tonnes grading 1.06 grams of WWW.CANADIANMININGJOURNAL.COM

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MINING in QUEBEC CANADIAN MALARTIC MINE

A close and more detailed look at the mill and maintenance facilities at the Canadian Malartic Mine.

Photo by Hugo Lacroix.

gold per tonne, with a mine life expected to last through 2028 with an extension project.

With these numbers, it’s no wonder both owners are now continuing to work on several mining and milling initiatives to further optimize the operation.

As mentioned earlier, the Canadian Malartic property lies in the Abitibi Gold Belt and covers a 3.5-km long section of metavolcanic rocks that generally strike northwest to west and dip steeply to vertical.

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Like many of today’s mine sites, the property includes past-producing gold mines. Subsequent drilling and compilation work outlined an economic gold mineralization system measuring 3.5km long by 350m, with a variable true thickness ranging from 40 to 270m to a vertical depth of 410m from surface. The system is open to the west and to the south at depth.

Because of its low grade and proximity to the surface, conventional open-pit mining methods were chosen. The mine plan called for three phases to locate the ramp entry, the mill site, and CANADIAN MINING JOURNAL

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MINING in QUEBEC CANADIAN MALARTIC MINE Water trucks constantly dampen pit roads to help keep the dust from heavy haul trucks reaching the neighbouring community.

Photo by Hugo Lacroix.

waste-dump areas to minimize haulage distance and therefore, help control costs.

Haul trucks access the pit via an 8% to 10% decline ramp designed with a maximum width of 35m, and the average strip ratio in the pit is 2.40:1 (waste:ore).

Including an extension project, the final pit will measure 3500m along strike and 920m wide, with a final depth of 410m.

The mine is equipped with a fleet of Cat 6060 28-m3 electric-driven hydraulic shovels, Cat 6050 26-m3 backhoe, L-1850 LeTourneau wheel loaders, Cat 994 wheel loader, and Cat 793F 217-tonne class rigid trucks.

The mine is constantly active, and a well-maintained equipment fleet is needed to meet its production targets. Because equipment and noise go hand-in-hand, the owners have gone to great lengths to limit the noise levels from the mining operations. Various mitigation measures have been implemented, such as: the installation of noise-suppression devices on the larger vehicles, the design of noise-barrier walls, and many more. As a On-going drilling, blasting, and the removal of materials makes the mine one of the more productive mines in Canada. Photo by Hugo Lacroix.

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further step towards being a good corporate citizen to its nearby neighbours, the company waters the pit’s loading surfaces, roadways and ramp to help reduce dust and improve air quality.

When it comes to drilling and blasting, all activities are designed to control blast-induced vibrations and noise pressure on the Town of Malartic, and the mine’s operating procedures also restrict blasting when winds blow toward the town.

To further help reduce the mine’s impact on the community, a green wall was built along the northern limit of the pit in 2011

by Osisko Mining to shield the town from noise and dust from the open pit and processing plant.

Inside the 150-m-wide buffer zone, a landscaped ridge was built mainly from rock and topsoil from the pre-stripping mining works.

The landscaped ridge is 15m high where the residential concentration is higher, and 5 to 6m-high in non-residential sectors.

A security fence at the bottom of the ridge on the town’s side restricts access to the mining activities, but as mentioned earlier, a 96-step structure leads to an observation platform overlooking the open pit.

The view from the top is spectacular as it gives visitors a clear look at the size of the project, including the entire pit and haul roads leading to the mill on the far side of the pit.

It’s from that location that the company processes its 55,000 tonnes of ore per day. Run-of-mine ore is transported to a crushing circuit composed of a gyratory crusher that feeds two cone crushers. Crushed ore is stockpiled in a covered pile, then conveyed to a semi-autogenous grinding circuit followed by three identical ball mills, each in closed circuit with hydrocyclones.

Two pebble crushers handle the oversize material from the SAG mill. Slurry from the mill is thickened to about 50 per cent solid before being fed to a leach-tank circuit for conventional WWW.CANADIANMININGJOURNAL.COM

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A picturesque photo of the pit shows the various areas of activity at night.

Photo by Hugo Lacroix.

An inside look at the mill where the company processes ore from the nearby open pit.

Photo by Mathieu Dupuis.

Covered stairs (bottom right) allow visitors from the park and playground area to climb the 96 steps to view the mining operations. Photo by Russell Noble.

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cyanidation, followed by carbon-in-pulp processing technology.

And then, dore bars containing gold and silver are poured.

Building up to the final pour is what mining is all about, and for Agnico Eagle and Yamana Gold, their investment into the Canadian Malartic Mine has been rewarding in this regard. But, like all good miners, the companies have also shown they’re great corporate citizens too by demonstrating their care and concern for the environment.

With plans to be ‘downtown’ for at least another dozen years or so, including the extension project, Canadian Malartic Mine has made it clear to the residents of the Town of Malartic that it fully intends to be good neighbours to the end, and beyond.

As with many large mining projects, the environmental side of its presence can have an impact, but in the case of the Canadian Malartic Mine, the operators are determined to make their existence as minimal as possible.

To reduce the environmental impact, tailings are detoxified and thickened prior to being pumped to a tailing impoundment facility. By doing this, tailings thickening reduces the required size and footprint of the tailing impoundment, and recycles more of the water back to the plant for re-use.

And any discharge water, always an environmental concern, is always treated prior to being discharged back into the environment.

The tailings are also treated to reduce cyanide levels before they are discharged into containment cells in tailings and sedimentation pond areas from the previous mines that once occupied the same site.

All in all, the Canadian Malartic Mine in the Town of Malartic, Quebec, is a big project in a small town. Having a harmonious relationship with the community is an ongoing process forming part of the success of this operation. CMJ CANADIAN MINING JOURNAL

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MINING in QUEBEC ROYAL NICKEL CORP.

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A rugged, yet picturesque look at an outcrop in the orebody; site of metallurgical bulk sampling.

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BANKING ON

BIG BUCKS QUEBEC NICKEL PROJECT HAS WORLD-SCALE POTENTIAL

By Eastern Correspondent D’Arcy Jenish There are rarely any guarantees when attempting to finance a mining project and, to make matters more difficult, Royal Nickel is attempting to raise money at a time when the world’s stock markets are in turmoil and economic uncertainty seems to be lurking around every corner.

But there’s also a good chance that the Dumont project may be an enticing opportunity for investors with deep pockets and long horizons. The deposit holds 1.17 billion tonnes of proven and probable ore, an additional 1.67 billion tonnes (372 million tonnes is measured category) of measured and indicated, and 500 million tonnes of inferred--enough to support the fifth largest nickel sulphide operation in the world.

Furthermore, the project is fully permitted. On June 25, the Quebec Ministry of Sustainable Development, Environment and Fight Against Climate Change issued a certificate of authorization, which is the province’s most significant permit for a mining project.

Royal Nickel may be a penny stock--its shares traded at a high of $.50 in the year ending August 31--but don’t be fooled

Photo: Emma Archer Photography 2013

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ark Selby, president and chief executive officer of Toronto-based Royal Nickel Corp., expects to be doing lots of travelling, and even more talking, this fall because he will be knocking on doors at major global trading houses and stainless steel producers in a bid to raise a whopping $1.1 billion.

That’s right, $1.1 billion, because, according to Selby, that’s approximately the amount of money the company needs to finance construction of an open-pit nickel mine at its Dumont property in Quebec’s Abitibi region.

Approximately $600-million of financing is expected to come from a contemplated senior bond financing. The balance of capital is expected to come from other sources, including structures such as metal streams, subordinated debt, offtake financing, equipment financing, sale of minority interest in the project, and equity financing.

“We hope to have the financing in place to start construction in early 2016,” he says, and then quickly adds: “There’s no guarantee we’ll get the money.”

Aerial view of the site showing clearing for what will eventually be the home for Royal Nickel’s Dumont project. Inset drawing gives more detail of the operation.

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Crushing of bulk sample for metallurgical testing. Below, an exploration drill site.

by that. There’s plenty of bench strength on the board and management team, which are dominated by former senior executives of Inco Ltd., most of whom left after Brazil’s Vale S.A. acquired that pillar of the Canadian mining industry in August, 2006. Scott Hand, who chairs the six-member board, was chairman and chief executive officer of Inco from April, 2002 to January, 2007 and two other directors also held high-level positions with Inco. As for Selby, he was Inco’s head of commodity research and later head of strategy before departing in early 2007.

Previous owners of the Dumont claims drilled part of the property during the nickel boom of the late 1960s and early 1970s but they focussed on a small, high-grade section of the deposit estimated to contain 60 to 80 million tonnes of ore.

They also completed pre-feasibility and engineering studies, but abandoned their efforts to develop the property when nickel prices fell.

The claims lapsed in the late 1990s and a Cornwall, Ont.18 |

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MINING in QUEBEC ROYAL NICKEL CORP.

based investor named Frank Marzoli picked them up. In 2007, Marzoli helped found Royal Nickel and starting in 2008 several former Inco executives joined the management group and the board. Marzoli remains a director, but is no longer involved in day-to-day management. “We’ve taken it from a scoping study project to a final feasibility, shovel-ready, fully-permitted one,” says Selby.

Royal Nickel has drilled a much larger area than the original owners and delineated a low-grade, but very large deposit that is open at depth along the full five-kilometre strike length. “We realized that the real value was the entire mineralized envelope,” he adds. “If you mine it at the right scale you can generate a lot of value.”

The company plans to build an open pit mine and as a first step will have to strip away up to 50 metres of overburden to reach the deposit, which begins at the surface of the rock and descends to depths of 450 to 500 metres. If all goes well this fall and the company raises the required capital, construction will start in early 2016 and Royal Nickel added more bench strength when Christian Brosseau joined management team as project director. He was part of the engineering team that built the Osisko Gold Royalties Canadian Malartic Mine, (featured

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in the previous article) near the town of the same name in Quebec’s Abitibi region, and he led construction of Detour Gold Corporation’s Detour Lake mine in northeastern Ontario.

Construction of the Dumont mine is expected to take two years. Selby says the company will build a mill capable of processing 50,000 tonnes of ore per day initially, which will yield 34,000 tonnes of nickel annually, but daily output will double to 100,000 tonnes once the mine is fully commissioned.

Other than that, Royal Nickel will have to build an eight-kilometre, high-voltage power line to the property, which is ideally located close to a provincial highway and a rail line.

The mill will produce a concentrate that contains 29 per cent nickel, whereas concentrates typically hold nine to 15 per cent nickel, says Selby, and the company plans to contract with smelters in either Sudbury, China or Finland to further process the material in fluid bed roasters that will eliminate the sulphur. He adds that the concentrate can be shipped to Sudbury by road, or offshore via the rail line that runs through Abitibi and all the way to the port in Quebec City.

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MINING in QUEBEC ROYAL NICKEL CORP.

Selby says, “Roasting concentrate to eliminate sulphur is an upside opportunity that could take advantage of the characteristics of Dumont concentrate; high nickel, low impurities. Roasted Dumont concentrate would effectively be a very highgrade feed that could be used directly by the stainless steel industry. Advantages to RNC are the potential for lower cost due to simpler processing, high playabilities compared to traditional smelting and refining, and greater flexibility for more partners and customers.”

The Dumont mine is expected to be in production for 33 years and would employ over 500 people when it is operating at capacity. “It’ll be one of Canada’s biggest base metal mines once it gets going and you couldn’t ask for a better location,” says Selby. “We’re next to all that infrastructure and you’ve got low-cost power from Hydro-Quebec.”

But everything hinges on arranging the financing and the company has some breathing room there. In July, Orion Mine Finance--a New York-based private equity group--advanced Royal Nickel (U.S.) $10 million (Cdn $12.6 million) in exchange for a 0.75 per cent net smelter royalty and 10 million common shares.

The funds will serve as working capital over the next two years and this fall the company will blast several tonnes of ore from an outcrop on the Dumont property.

It will be shipped by truck to SGS Lakefield Research Ltd. in Lakefield, Ont. to be processed into concentrate. The concentrate will then be sent to another facility for roasting in order to produce samples of the final product that could be used in stainless steel and pig iron mills.

But the number one priority will be raising the capital required to build the mine and to that end Royal Nickel has arranged a $600 million senior bond financing from Swedbank Norway, a leading Scandinavian financial institution. This is not money in company treasury, says Selby, but what is known as a mandate. In other words, Royal Nickel will go out to market--with support from Swedbank--and attempt to sell the bonds to a broad range of investors in exchange for cash.

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The current economic turmoil and uncertainty means the company will be tilting against some strong headwinds, but Royal Nickel will be selling investors on the long-term prospects. “A bunch of projects were financed in 2007 when nickel was selling for $20 a pound,” says Selby.

“Those all came onstream in 2010 through 2013. We firmly believe there will be a shortage of good nickel projects in latter half of this decade.”

And Royal Nickel is ideally positioned to fill the pipeline and take advantage of what could be an uptick in prices. CMJ

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Feature

Equipment Maintenance and Repair

BOLD & BEEFY HEAVY-DUTY HAUL BODIES PROVIDE SAFER SOLUTIONS

T

he main things we all want on a worksite — efficiency, safety and profitability — usually don’t come from an off-the-shelf solution. No two mining operations are alike; so why should equipment be the same?

Well-run mines match customized haul bodies with loading tools to increase their loading safety and reduce the potential for damaging equipment. Wider bodies expand the loading target and equalize weight distribution while their lower sides allow the shovel to get closer to the floor of the truck body, which minimizes floor damage and uncomfortable vibrations felt by the driver.

This extends body and tire life because there isn’t more weight wearing on specific areas and reduces damage to the sides of the bodies. And operators benefit with the safer work environment for operators.

Efficiency by design

To help ensure durability, Philippi-Hagenbuch,(PHIL) of Peo22

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ria, Ill. manufactures custom truck bodies with 450 Brinell steel, sourced exclusively from Sweden. The floor bolsters that run from side to side under the body floor extend through the frame rails of its high-performance bodies.

Additional reinforcements and load-distribution cones double the reinforced area around the “sweet spot” within the centre floor section. The added strength from this floor-support structure allows bodies to maintain maximum payload capacity by supporting the full weight of materials hauled without stressing the truck’s chassis over the long haul of the body’s life.

Safety through strength

The 450 Brinell steel comprises the entire body; not just in the areas that contain the greatest load. This is due to its hardness, abrasion resistance, and its lack of ductility in both warm and ultra-cold climates. This also provides greater durability and increases the life of the truck bodies by 25-30 per cent.

In environments that haul sticky materials, hydrophobic steel liners integrate into the front corners and the front third of the www.canadianminingjournal.com

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Equipment Maintenance and Repair » Feature

Removal of heavy-duty truck boxes is made safer and easier thanks to a Lifting Eye System that features lifting eyes that are built into the body floor to reduce stress on the sides of the boxes during maintenance and repair.

body slope, to minimize material carryback. When PHIL designs bodies that are hauling hard rock and highly abrasive ore, they build the floor with specialized chromium carbide-fused steel liner that covers the rear two-thirds to three-quarters.

Josh Swank, vice-president, sales and marketing for PHIL says, “ Often, the payload is a mix of ore and sand, which becomes muddy and sticky, and it tends to form a bridge across the front of the truck body that leaves valuable and costly material clinging to the inside of the bed, which reduces payload.

“As the name suggests, the hydrophobic liner repels moisture so those materials are only hauled once, and the body can operate as efficiently as possible.”

Profitability and beyond

In addition to a custom design, reinforcing bolsters and incorporating strong steel, the right lifting system contributes to greater efficiency and profitability. The traditional method of lifting the bodies from their sides can cause them to bow in.

PHIL’s patented Lifting Eye System — used to remove bodies for maintenance and repairs — features removable, free-floating lifting eyes that are incorporated into the body floor. During installation or removal of a body, operators remove the 10-inchdiameter lifting hole covers and insert rigging into the eyes from beneath the body. There’s no stress on the sides because the lifting eyes integrate into the floor support structure.

Information for this article provided by Philippi-Hagenbach, Peoria, Ill.

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Feature

Equipment Maintenance and Repair

A technician performs a vibration analysis test to provide key information on equipment performance.

PARTNER WITH PRODUCTIVITY Increase screening uptime with preventative maintenance tips

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By Karen Thompson

ining producers are striving to say goodbye to downtime and hello to efficiency. In addition to managing the mine, it’s the producer’s responsibility to keep all equipment in proper working order.

To do so, they use different technologies and services to increase equipment productivity and extend lifecycle. And services that involve a relationship with a manufacturer provide producers with long-term savings and equipment reliability, ultimately increasing ROI. To get the most out of equipment and lessen downtime, consider a few key strategies: a vibration analysis program, a comprehensive service program and proper screen selection and installation.

Get the Full Picture

The ideal vibration analysis system is designed specifically for 24

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vibrating screens. This offers producers a way to safely monitor their screens’ performance in real time. These new programs also detect irregularities early — before they lead to diminished performance, decreased efficiency and increased operating costs.

The vibration analysis system should have eight triaxial sensors, which are attached to key places on the equipment. From there the sensors transmit 24 channels of data to a heavy-duty tablet, which then illustrates the machine’s orbit, acceleration and deviations.

Next, find a vibration analysis system that not only offers real-time reporting but also maintains historical reports on the machine’s performance. Storing machine information in the cloud provides indications of repeat concerns that, if addressed, will improve efficiency and decrease expenses.

Also look for a vibration analysis system that provides key reports on the machine’s performance. An orbit report www.canadianminingjournal.com

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Equipment Maintenance and Repair » Feature

illustrates the machine’s orbit and waveform, as well as data about acceleration, stroke, speed and phase angle. A tuning report concludes deviations between measurement points while providing recommendations on balance, acceleration, stroke and speed. Each tuning report provides producers with feed and discharge analyses as well as diagonal measurements. The variety of data paints a detailed picture of exactly what’s taking place with each machine.

For the greatest reliability, choose a system that sends information via Wi-Fi rather than Bluetooth. Wi-Fi technology has a larger range and higher bandwidth than Bluetooth, which means improved safety, speed and reliability when working near machinery and in isolated areas.

Advanced vibration analysis systems transfer all data wirelessly to a certified engineering team for analysis. Engineers evaluate the machine’s performance, alert the user to any issues, and suggest recommendations for improvement. If the results require a thorough examination, an engineer will schedule a service call. Otherwise, the customer rests assured that the equipment is healthy and efficient.

Build Relationships with Manufacturers

Beyond real-time technology, partnering with a manufacturer ensures heightened equipment functionality through programs such as screen installation, commissioning and operator training. Although producers might take the time to perform preventative maintenance, job turnover can mean inexperience and lead to extended downtime on a worksite. That’s where a manufacturer comes in. Manufacturers, who focus on partnering with a company for success, rather than just machine sales, quickly provide onsite assistance by certified technicians when more than operatorlevel service is needed.

A thorough, trained technician should walk through a detailed checklist to evaluate screening equipment, train personnel on proper operation and screen installation, as well as work with the customer to develop a preventative maintenance plan. Implementing a preventative maintenance plan maximizes equip-

ment service life and uptime while saving on costly repairs.

Additionally, a good manufacturer ensures your essential replacement parts are in stock — always.

Installation Speculation

Even with the best maintenance plans, issues will occur if screen media isn’t properly selected and installed.

Sometimes screening finishes too early, completing before it reaches the end of the screen. By using a heavier screen media with reduced open area on the feed end, you can improve wear life and reduce change-outs while still achieving the right product specifications. Other times it finishes too late, sending wrongsized material off the discharge end resulting in material contamination, premature screen wear or screen damage.

Other producers might struggle with blinding as clay-heavy materials clog the screen openings, or pegging, where nearsized stones get trapped in screen media openings. Working with a manufacturer proficient in screen media takes the guesswork out of screen installation and ensures extended life of the screen.

It’s tough to confidently select a brand and style of screen media, especially with the wide variety from which to choose.

There’s polyurethane and woven wire, a hybrid of the two, rubber and self-cleaning screens. There are square and slotted openings — all of which have different percentages of open area. Top that off with installation options, from tensioned to modular panels. How does a producer

begin to choose the options that simplify maintenance and lengthen screen life?

First, understand that each type of screen media serves a different purpose for different applications, and some work best in tandem with other types. Work with a manufacturer or dealer to find the best combination for the operation and to maximize profits by having a screen specialist blend multiple types of screen media on a single deck.

Getting the right style and combination of screen media up front saves time and money by lessening maintenance issues and preventing premature wear.

Lifetime Commitment

A good maintenance program prevents downtime because it includes a detailed vibration analysis program, comprehensive service program, and proper screen selection and installation. Working with a reliable manufacturer that employs professional service technicians ensures fewer screen changeouts, less downtime and less money spent on new screens.

These technicians will work day-in and day-out to help producers improve existing screening processes and stay up-todate with necessary upgrades.

Overall, maintaining equipment increases the longevity and efficiency of machines. And, as with any business, profits are the key measure of success.

Partnering with the right manufacturer ensures peak equipment performance and reliability for years to come.

Karen Thompson is the president of Haver & Boecker Canada.

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Feature

Equipment Maintenance and Repair

HOW SAFE IS YOUR MINE HOIST?

In today’s era of ever tightening resources, human and financial, it is becoming ever more challenging to ensure mine hoists perform to the expected standard

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By Slobodan Vidmar

ine hoists are responsible for the safe transport of people and material underground so they need to be 100 per cent reliable. Keeping the hoist up and running requires - more than any other item of mining equipment the skills of two diverse engineering teams: the electrical, and the mechanical.

Yet the electrical and mechanical engineering skills needed to look after today’s mine hoists have changed considerably in the past decade.

Mine hoists are sophisticated machines. They are packed with the latest technology, including process control systems, variablespeed drives, electric motors, controlled braking systems, electrical networks, temperature control, limits of travel, and rope and shaft equipment protection – all of which are programmed and finely tuned to work together, reliably, efficiently and in a way that ensures these multiple levels of protection will prevent serious incidents. Mine hoist systems need to operate at maximum effi26

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ciency with optimum capital and maintenance cost.

And that is exactly what hoists strive to do. To date, their track record of safe performance at thousands of mines worldwide has been relatively unblemished.

Changing performance

Over time, however, mine hoists begin to get less efficient. For example, they may slow down or begin to operate irregularly –often using increasingly more energy as compared with initial specifications. Even if a hoist is operating well, it could be masking a problem. Things to watch out for include a change in emergency deceleration rate during emergency stop, mechanical or tread wear compensation, drift in duty cycle due to tread wear, and any abnormal noises or changes in running temperatures, bearings and motor.

Skills shortage

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Equipment Maintenance and Repair » Feature

plifying the issue. A key factor is generally an insufficient understanding of how the mechanical and electrical systems influence each other. Additionally, as on-site maintenance workers become less specialized, dealing with increasingly sophisticated mine hoists becomes more difficult.

Over time, system settings need to be adjusted due to equipment wear, and overall changes in operating conditions, which lead to hoist performance deviating from its optimum set up.

To carry out these setting adjustments, an engineer must have a deep knowledge and overall understanding of the mine hoist.

Existing maintenance procedures, however, focus on individual parts of the hoist rather than the construct as whole.

Considering that mechanical issues can impact electrical parts (and vice versa), dealing with one problem, without adequately considering the system in its totality, can have unintended consequences in the mine hoist’s overall functioning.

Mine operators without specialist on-site hoist maintenance expertise, therefore, need to ensure that outsourcing maintenance goes to the supplier with the best blend of electrical and mechanical skills.

Maintaining standards

The selected supplier must be familiar with local mining authorities’ regulations and standards covering performance and safety of mine hoists. Each country has its own individual mining regulations, with others, notably Canada and Australia, having regional authorities that further specify additional requirements.

If the hoist owners are not complying with requirements, the local authority has the right to close down the mine operation.

The American approach to mine safety in general, and to mine hoist ropes in particular, differs significantly from that used in Europe. The American regulations are fewer and less detailed, and leave room for the mine operator to exercise their authority.

This regulatory simplicity is facilitated by the overriding laws that make the mine operator fully responsible for the results of their actions. It is the operator who decides what standards apply, who does the inspection/ maintenance work, and how much training is needed. This simplicity in turn lowers the cost of training and enforcement, as well as reduces the bureaucracy.

Safety

The most critical issue is “hidden failures,” problems lurking behind the scenes, unobserved, unless a failure occurs or specific tests are conducted to detect their presence.

Considering that hoist systems have heavy payloads travelling at high speeds, any failure is likely to have fatal and/or expensive consequences. Mine hoists, however, are large constructs spread over massive areas and maintenance time windows are limited. As a consequence, some parts are rarely checked, if ever.

Consider end-of-line protection devices, for example; they never work unless needed. If they are not tested regularly, how do you know if they will work correctly? Checking these parts

can be a time-consuming and intimidating undertaking as it means means disabling all the fail-safe devices that go before within the system.

For instance, a jack catcher is a device that prevents a hoist from falling into a shaft if there is an incident. It is the last line of defense, but it is rarely called into action because of all the earlier fail-safe devices. However, because it rarely operates, it hardly ever gets maintained. During one inspection severe corrosion was spotted on the jack catcher. The plant supervisor was surprised as no one had ever inspected this component. The result is that, after 15 years, all jack catchers were fully replaced.

It is critical these life- and equipment-saving devices work.

If you don’t test them, however, you don’t know whether you are, in fact, protected.

Performance

Sub-standard performance is often man-made. When troubleshooting, for example, a hoist’s production cyle is reduced until the issue has been resolved. It is not uncommon for maintenance crews to forget to return the duty cycle to its normal level following the repair –particularly if it took several shifts to fix the problem. Hundreds of thousands of dollars can easily be lost before this oversight is corrected.

Reliability Common causes of unscheduled repairs include a build-up of dust and dirt under the switches and in the latch arms on the skips.

Changes and over-wind trips on the friction hoist’s manufacturing cycle are often the result of excessive friction insert wear.

Unplanned breakdowns can cost up to seven times more than planned repairs so regular maintenance is essential to maintain optimum performance cost effectively.

ABB, the leading power and automation technology group, has launched a relatively new service product called Hoist Performance Fingerprint (HPFP) to help mine operators assess and optimize the condition of their mine hoists –whether they use ABB equipment or not. This auditing service simultaneously covers all electrical and mechanical parts.

With assessment and testing of the entire system, ABB can recommend actions that are prioritized with respect to urgency, budgetary constraints, and status of the equipment lifecycle.This information will also help close hoist performance gaps with respect to compliance against local statutory requirements, hidden failures, shortfalls in preventive maintenance, and maintenance training.

Launched first in Australia, a majority of hoist sites there have subscribed to the HPFP service; some have even signed up for quarterly inspections. Its appeal lies in the fact the service enables hoist operators to reduce operational costs, while simultaneously increasing production and business sustainability.

Slobodan Vidmar is the Underground Global Product Manager, Hoist Performance Fingerprint, ABB.

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Feature

Equipment Maintenance and Repair

EFFICIENT GEAR REPAIRS WITHOUT DOWNTIME

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By Justin Koozer

ill gears often have a design life greater than 20 years, but mines rarely run perfectly. Misalignment, contamination, lube system failures, overloading, or failures in the mill drive-train can result in premature wear of girth gears that result in high vibrations. When gears are damaged, the operator is left with a few costly options: Continue to run the gear with the risk of catastrophic failure Grind the damaged areas to relieve stress risers Turn the current or install a new pinion.

Catastrophic failure can bring a mill down for months. Lead times on new gear sets can reach 6-12 months and the time and equipment required for installing a new gear set is considerable. Also, mills that are allowed to run under high vibrations cause risk to the surrounding equipment and foundation.

Mechanical treatment to the damaged areas can prolong the life and reliability of the gear, but should be carried out by a trained engineer. Grinding requires significant downtime to remove the gear cover and grind each tooth flank and while 28

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grinding may alleviate stress risers, it may not lower vibration levels significantly.

Using the unused side of the pinion or installing a new pinion also requires significant downtime. Once the new surface is in operation, there is still a chance of transferring the damage from the bull gear to the new pinion surface.

Repair lubricants can be used as a stand-alone treatment to alleviate stress risers in damaged tooth flanks, prevent surface asperities from welding after grinding, or help mate a new pinion surface to a damaged bull gear. The advantage of using the Kl端ber Lubrication line of service lubricants is that the girth gear drive remains fully operable.

Compared to several days of standstill, as in the case of mechanical treatment or gear replacement, repair lubrication only requires short downtimes for control and documentation. In fact, repair lubrication is even more successful with higher loads.

Kl端ber Lubrication repair lubricant, Kl端berfluid D-F 1 Ultra, contains specially developed compounds that subject the metallic surfaces to chemical and corrosive wear in the contact www.canadianminingjournal.com

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Equipment Maintenance and Repair » Feature

points. Klüberfluid D-F 1 Ultra is manually applied by a service engineer while the running-in compound, Klüberfluid B-F 2 Ultra, is applied through the lubrication system. It contains a unique additive package that encourages mixed friction, but prevents surface asperities from welding.

The combination of Klüberfluid B-F 2 Ultra and Klüberfluid D-F 1 Ultra can repair damages such as scuffing, scratches, plastic deformation, and pittings by eroding material at the overloaded areas. This leads to an improved contact pattern which reduces the specific tooth flank peak loads. Due to the minimally controlled wear, repair lubricants can also be used to prevent transfer damages from an older girth gear on a new pinion surface.

Recently, a zinc concentrator near of Montreal, Quebec, contacted Klüber Lubrication for a consultation on a ball mill experiencing significant vibrations. After welding a large crack in the shell, the mill shell became distorted, which caused the axial and radial runouts to fall outside of the recommended values. They had a mill on hand, but due to operational demands and a foundation crack, they were unable to schedule downtime long enough to install the new gear set for 10-12 months. The condition of the mill had become so bad that they decided to reverse the direction of the single pinion drive to continue running, but were still experiencing high vibrations.

An engineer inspected the gear and discovered that the vibration levels were approaching unacceptable levels accord-

ing to ISO 10816-1. The edge-to-edge temperature differential was over 15°C and the contact pattern was less than 50 percent.

The condition of the tooth flank could not be determined due to the over application of an asphaltic based open-gear lubricant preventing the visual inspection of the tooth flanks.

Klüber Lubrication recommended a repair procedure using Klüberfluid B-F 2 Ultra and Klüberfluid D-F 1 Ultra. A member of the our team performed the repair procedure over a 24-hour period and continues to monitor the situation.

After the repair, the operational open-gear lubricant was changed to Klüberfluid C-F 3 Ultra. This lubricant is transparent on the gear surface, which allows the tooth flank condition to be monitored visually. It also offers improved wear protection while reducing the amount of lubricant needed.

The repair resulted in an overall tooth flank temperature reduction of 12°C and the edge-to-edge differential was reduced from 15.1°C to 1.9°C, indicating a contact ratio >90%. The vibration levels were reduced up to 48% and brought back within acceptable limits according to ISO 10816-1.

All in all, lubricants and services for open gear drives can result in significant cost savings in terms of production up time, lubricant consumption, and cost to repair damaged gears.

Justin Koozer, Klüber Lubrication NA, Global Competence Centre, Mining.

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Feature

Equipment Maintenance and Repair

To increase production and efficiency, operators need a strong working knowledge of a crusher’s parameters and should perform regular maintenance and cleaning to reach the crusher’s maximum lifespan.

BUILT ON EXPERIENCE. FUELLED BY EXPERTISE. For more than 35 years, BBA has been helping industrial clients transform complex problems into practical, innovative and sustainable solutions.

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GREATER CRUSHER LIFE

EM&R October 2015

s Blow Bars: As a fundamental element in the crushing process, blow bars come in contact with abrasive material at great speed and force when moving materials. These parts require daily inspections and, if worn or damaged, replacement. s Curtain Anvils: Like blow bars, curtain anvils also come in contact with and take the impact of abrasive material while crushing the moving material. For optimal performance, inspect daily and replace if worn or damaged. s Screen Cloth: Screen cloth sorts and separates crushed material. Examine the screen cloth for left behind debris and to prevent potential screening problems clean the screening cloth by hand. www.canadianminingjournal.com

2015-09-25 12:04 PM

Equipment Maintenance and Repair Âť Feature

DISCOVER

MERLO IN ACTION

Small imbalances inside crusher components can lead to substantial, expensive problems if left unchecked. Daily, comprehensive inspections can identify issues such as broken or worn parts, debris build-up and loose components.

PANORAMIC 25.6

THE ULTIMATE Hard, abrasive materials such as granite, ores and rock found in many mining applications expose crushers to the risk of excessive wear. This wear can cause even greater damage and slower production if not kept in check.

MACHINE INCREASE YOUR PROFITS:

PRECISION PRODUCTIVITY VERSATILITY FUEL s Belts: Belts take on the impact of the crushed material while moving it. Check conveyors for loose, punctured or broken belts.

If damaged, make the proper adjustments or repairs.

Overall Maintenance Strategies

Small imbalances inside crusher components can lead to substantial, expensive problems. Daily, comprehensive inspections identify issues such as broken or worn parts, debris build-up and loose components. Keep units serviced, making sure wear parts remain properly secured.

A well-maintained crusher leads to several more years of service and more profit when it comes time to resell.

PANORAMIC 72.10

ROTO 38.16 S

FIND A MERLO DEALER NEAR YOU:

/canada-dealers

Sean Donaghy is national sales manager, IROCK Crushers.

EM&R October 2015

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2015-09-25 12:04 PM

IN MY MINE(D)

Asset management is key to improving performance

By Rob Metka

C

hanging market conditions, an uncertain global economy, and shareholder demands are driving mining companies worldwide to find ways to improve existing assets. The Quebec mining and metals industry is no exception. In many respects, it faces the same pressures and economic forces we are seeing in all natural resource economies, whether in Australia, South Africa or South America.

The top business risks facing the mining industry have changed dramatically since the economic supercycle of 2008. Productivity and access to capital now rank as the highest risks. In the new mining paradigm, the need to improve operational performance has taken on a much greater importance and sense of urgency. For companies in Quebec and elsewhere, the focus now is not on size, but on cost reduction and optimizing processes and efficiencies.

Companies need to have the right people, partners and technologies in place to make this transition successfully.

A key aspect of improving operational performance is effective asset management. This requires an organisation-wide approach, drawing on every aspect of the business, from financial management, to operations, technology, engineering, and maintenance. It involves finding the right compromise between competing interests: investments to optimize assets versus conserving capital; workforce reductions versus preserving intellectual capital; and short-term benefits versus long-term sustainability. The goal in each case is to determine the optimal combination.

COMPANIES NEED TO INVEST IN, AND APPLY NEW INNOVATIVE TECHNOLOGIES...

Companies need to invest in and apply new innovative technologies that capture high-level knowledge to debottleneck operations and create greater efficiencies. This means eliminating silos in decision-making processes and taking into account an operation’s entire supply chain. An example is the application of dynamic simulation. Through simulation testing, a mine’s planning schedule and decision-making can be connected right 32 |

CANADIAN MINING JOURNAL

InMyMind.indd 32

down to the details of rail shipments, vehicle movements and shift changes on site. This targeted information can then be extracted to improve overall supply chain efficiency.

Many engineering and professional services firms tend to focus predominantly on project management and administration. But the scope of today’s challenges requires bold, imaginative thinking if we are to improve existing sites and take advantage of the opportunities associated with developing new capital projects. The ability to tap into resources located in remote sites and regions such as Northern Quebec presents additional challenges. These include a lack of infrastructure, longer logistics chains, rigorous regulatory conditions, more difficult access to financing, rising community expectations and lower product pricing forecasts.

As an industry, we must continue to build on our project construction management capabilities, while investing in specialized engineering and technical skills that give companies a competitive edge. Ultimately, we need to change the way we look at project engineering, and sharpen our focus on operational performance, use of assets and enhanced capabilities to meet the business and sustainability goals of our clients.

Some Quebec projects have risen to the challenge and are setting industry standards. Rio Tinto’s (RTA) AP60 project, named 2014 Project of the Year by the Project Management Institute, located in Jonquiere, Quebec, is the first plant of its kind in the world and will produce 40 per cent more aluminum per cell than the previous generation of AP technology. The $1.3 billion project, which was executed under an engineering, procurement and construction management (EPCM) contracting model, was completed within budget and one month ahead of schedule. The project established a new benchmark for efficient aluminum production, and achieved a new industry standard for safety performance.

Market and economic conditions are always changing. What won’t change is the industry’s need to adapt, innovate, and find solutions. Right now, this means stretching existing assets, modifying processes, and applying technological advances to improve operational performance. It also demands greater alignment and collaboration among mining companies, engineering firms, communities and stakeholders to achieve sustainable outcomes and superior results. These efforts will allow us to maintain Canada’s leadership in the mining sector today, and prepare us to seize opportunities at the next upturn. CMJ ROB METKA is Global Managing Director, Minerals, Hatch.

WWW.CANADIANMININGJOURNAL.COM

2015-09-25 12:10 PM

PROFESSIONAL DIRECTORY MONTT GROUP SpA

Over 35 Years of Experience

Chilean Mining Attorneys Montt Group SpA offers a full array of legal and technical services, particularly creation of mining companies, filing for mining claims, easements, administrative permits, due diligence and legal surveillance Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

ADVERTISERS INDEX

www.monttgroup.com +562 2544 6800 monttcia@monttcia.cl BBA...................................................30............................www.bba.ca Doppelmayr......................................35............................www.doppelmayr-mys.com Galaxy Broadband............................21............................www.galaxybroadband.ca Goldcorp...........................................19............................www.goldcorp.com Grace Industries..............................33............................www.graceindustries.com Hard Line Solutions............................2............................www.hard-line.com Hercules...........................................25............................www.herculesca.ca Kalenborn.........................................29............................www.abresist.com Luff Industries..................................29............................www.luffindustries.com Manulift............................................31............................www.manulift.ca/canada-dealers Montt Group.....................................33............................www.monttgroup.com Motion Canada...................................6............................www.motioncanada.com Pro Sygma..........................................7............................www.prosygma.ca Siemens Canada....................... 4 & 36............................www.siemens.com/mining Simsmart Technologies....................23............................www.simsmart.com SRK Consulting.................................20............................www.srk.com Stu Blattner Inc................................33............................www.stublattner.com

OCTOBER 2015

Professional Directory.indd 33

Your complete raise bore soluƟon!!! www.stubla�ner.com DON’T MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015.

Cost as low as $250.00 per issue Contact: ROBERT SEAGRAVES 416-510-6891 Fax: 416-447-7658 rseagraves@canadianminingjournal.com

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CANADIAN MINING JOURNAL

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2015-09-25 12:11 PM

UNEARTHING TRENDS

Managing risk in a Plan Nord era

By Zahid Fazal

C

hange is a constant factor in the mining sector, and in the face of shifting global economic trends and calls for economic and social development of Quebec’s northern region, the province’s revised Plan Nord is likely to bring both risks and opportunities to this industry.

In April, the Quebec government unveiled its revised The Plan Nord toward 2035. In spite of a downturn in global commodity prices, the 2015-2020 Action Plan outlines a $1.3-billion investment in infrastructure and other projects over the next 5 years designed to attract $22-billion in private-sector investment.

In EY’s recent report entitled Business Risks Facing Mining and Metals 2015–2016, the top three global risks are the switch to growth, productivity improvements and access to capital.

Leaders are asking tough questions about their organization’s readiness to manage these risks – and the risks unique to the Quebec sector in particular.

Beyond conventional infrastructure of transportation, energy and more, Plan Nord also addresses digital infrastructure which remains a challenge in this region. Among several actions, Plan Nord emphasizes the importance of improved internet speed and access, and a master plan for a northern fibre optic-based telecommunications network.

Key to understanding the Plan is recognizing that many of the strategies – for infrastructure and more -- involve multiple ministries and jurisdictional plans, which include the Ministère des transports, the forthcoming 2016 Quebec Energy Policy, the James Bay Development Corporation, multiple aboriginal nations and several municipalities undertaking infrastructure projects of their own – to name just a few. What’s more, the plan explicitly states the need to offer support for communities in their efforts to adapt to change and benefit from development, and to continue supporting the Québec municipal infrastructure program (Programme d’infrastructures Québec-Municipalités).

Infrastructure remains dominant risk factor in Quebec

Opportunities amidst commodity price corrections

Quebec’s unique geography means that access to infrastructure remains the prevailing risk for all players in this sector. Whereas infrastructure has dropped off EY’s list of overall global business risks for 2015-16, it’s still very much the priority challenge for this market. And it’s more than just access to roads and airports; rail, hydroelectric facilities, telecommunications and housing are among several infrastructure components that are critically important for mining operators in the remote landscape of Quebec’s northern-most areas.

Plan Nord acknowledges the essential role of improved access to the region, and addresses it in both broad and specific terms.

It acknowledges that existing aging infrastructures will require major reconstruction work to extend their life and capacities. It also cites the need for an integrated effort to build new capacity.

For example, the government is mapping out improvements to transportation infrastructure which include: improving the main highway corridors; maximizing St. Lawrence River traffic; developing new rail links, including one to the Labrador Trough, and; creating a new model for air travel that benefits not only industry-related air transportation but also tourism, services and surveying travel.

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CANADIAN MINING JOURNAL

While access to infrastructure remains the dominant risk factor in this region, it is by no means the only one shaping its future. It is impossible to discuss the Quebec mining sector without acknowledging the impact of the current global commodity struggle.

Amidst consumption and growth corrections in the Chinese market – and volatility in its equity market and the devaluation of the Yuan – the global market is also experiencing oversupply even while production increases. One bright spot is that commodities remain relatively inexpensive compared to other assets and valuations remain low. For some companies, this may be an excellent growth opportunity. In such circumstances, a ‘buy’ decision requires a careful assessment of all the capital options.

With margins squeezed on all sides, the spotlight falls once again on the importance of productivity and cost management.

Consolidating competitive advantage through productivity gains, acquiring assets and capabilities and driving innovation should be the key areas of boardroom focus, along with controlling costs and a rigorous capital strategy. These tools help manage business risks, and will equip enterprises in Quebec’s dynamic mining sector to ride out volatile market conditions and prepare to thrive amidst Plan Nord and the development it hopes to ignite. CMJ Zahid Fazal is EY’s Quebec Mining & Metals Leader.

WWW.CANADIANMININGJOURNAL.COM

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2015-09-25 12:12 PM

E20001-F350-T195-X-7600

SIMINE gearless drive systems for conveyors Overland conveyor with gearless drive system commissioned at copper mine in Peru

For the first time, a large-scale belt conveyor system with gearless drives has been installed outside of Germany: For an order from the Australian mining company Xstrata Copper, ThyssenKrupp supplied the conveyor system and Siemens the gearless drive system for the Antapaccay copper mine in Peru. With a conveyor speed of 6.2 meters per second on a belt 1,370 millimeters wide, approximately 5,260 tons per hour of copper ore can be transported over a distance of about 6.5 kilometers from the mine to the processing plant. The only comparable conveyor drive system in the world was installed in 1986 – also by Siemens and ThyssenKrupp (previously O&K) – in the Prosper-Haniel coal mine of Deutsche Steinkohle AG in Germany and is still in operation.

The drive system consists of two low-speed synchronous motors, each with a power rating of 3,800 kilowatts, and the associated Sinamics SL150 cycloconverters, converter transformers, a containerized E-house, and related electrical equipment. Compared to conventional high-speed motor and gear units, this gearless drive solution enables the installation of larger drives, increases reliability and efficiency, reduces maintenance effort – and delivers maximum availability.

Siemens’ scope of supply also included the entire switchgear and gearless drive systems for a 40-foot SAG mill and two 26-foot ball mills with all associated power supply equipment.

siemens.com/mining

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