Canadian Mining Journal October 2018

c a n a d a

’

s

f i r s t

Quebec’s

m i n i n g

PLAN NORD PAYS OFF

p u b l i c a t i o n

PART II OF OUR

ELECTRIC MINE SERIES

PLUS SPECIAL REPORT

OCTOBER 2018 | www.canadianminingjournal.com | PM # 40069240

01_CMJ Oct2018_cover final.indd 1

2018-09-24 1:48 PM

Energy efficient comminution circuits That’s how we make the big difference, the Metso Way.

To be energy efficient, a circuit needs to not only have the right equipment but have that equipment optimized. Even the most efficient equipment installed on the wrong application will not translate to optimal production or reduced costs.

Metso’s 150 years of expertise helps optimize circuits through debottlenecking, evaluation of expansion options, design of new circuits, and total flowsheet solutions.

Find out more at metso.com/mining. #TheMetsoWay

CMJ Oct2018_Ad pages.indd 2

2018-09-24 2:02 PM

CANADIANMINING

OCTOBER 2018 VOL. 139, NO. 08

JOURNAL

FEATURES 11 Goldcorp’s Brent Bergeron discusses the genesis of Borden,

16

which will be the world’s first all-electric mine when it opens next year.

CMJ

MINING IN QUEBEC & THE MARITIMES

•

•

16 Plan Nord is bringing investment into Quebec’s mining industry.

22 Vancouver-based miner Eldorado Gold is about to open its first mine in Canada.

A N ANova D I AScotia’s N M I N Igold N G revival.

JOURNAL C25

EM&R

27 Three tips to spot grinding mill issues early on.

31

31 How lubricants can play a vital role in reducing total cost of ownership for mining operations.

COMMINUTION 34 Metso celebrates 150 years.

34

DEPARTMENTS 5 EDITORIAL | Quebec’s steady support for mining.

6 UNEARTHING TRENDS | EY Canada’s Patrick Bertrand-Daoust explains why Quebec is well placed to capitalize on the growing demand for high tech metals.

7 LAW | Robert Mason of Norton Rose Fulbright looks at mine streaming finance trends.

8 CSR & MINING | Carolyn Burns and Jane Church of NetPositive explain why communities need a long-term vision to define how mining fits into their social and economic plans.

10 FAST NEWS | Updates from around the mining ecosystem.

www.canadianminingjournal.com OCTOBER 2018

03_CMJ Oct2018_Contents.indd 3

ABOUT THE COVER

This month’s cover provided by Ford.

Coming in November Canadian Mining Journal ’s popular Buyers’ Guide, a comprehensive list of suppliers, products and services for the mining industry in Canada.

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 |

3

2018-09-24 2:04 PM

CMJ Oct2018_Ad pages.indd 4

2018-09-24 2:02 PM

FROM THE EDITOR OCTOBER 2018 Vol. 139 – No. 8

CANADIANMINING 38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Tel. (416) 510-6789 Fax (416) 510-5138 www.canadianminingjournal.com

JOURNAL

CMJ

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

•

•

CANADIAN MINING JOURNAL

News Editor Marilyn Scales mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Art Director Barbara Burrows Manager of Product Distribution Jackie Dupuis 403-209-3507 jdupuis@jwnenergy.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales, Western Canada George Agelopoulos 416-510-5104 gagelopoulos@northernminer.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-800-387-2446 ext 3505 Group Publisher Anthony Vaccaro Established 1882

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

and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry.

Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining. BIG is located at 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 Robert Seagraves at 416-510-6891.

Subscriptions – Canada: $51.95 per year; $81.50 for two years.

USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary.

HST registration # 809744071RT001.

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-387-2446 ext 3505; Fax: 403-245-8666 ; E-mail: jdupuis@jwnenergy.com Mail to: Jackie Dupuis, 2nd Flr. 816–55th Ave. N.E. Calgary, Alberta T2E 6Y4.

We acknowledge the financial support of the Government of Canada.

OCTOBER 2018

05_CMJ Oct2018_Editorial.indd 5

Plan Nord a key support for Quebec miners Alisha Hiyate

P

oliticians love to make announcements about infrastructure investment.

Less so when it comes to actually delivering the promised funding. That hasn’t been the case with Quebec’s Plan Nord.

First introduced in 2011 by the provincial Liberal government of Jean Charest, to spur development and investment in the northern reaches of the province, Plan Nord has encouraged mining investment in Quebec, even during some difficult times for the industry. (See our story on Page 16.)

Plan Nord has resulted in some new infrastructure investment that has been instrumental to mining. Without the 240-km all-weather road that was built to Stornoway Diamond’s Renard mine, 360 km north of Chibougamau, for example, that operation would likely not have been developed and started production in 2016.

Direct investment by Quebec government agencies in mining companies and in infrastructure has provided key support and reassured international investors that the sector has the backing of the government. Both Stornoway and Nemaska Lithium, which is building the Whabouchi lithium mine 280 km north of Chibougamau, have credited that support for helping them land mine financings.

At presstime in September, Quebecers were gearing up for an Oct. 1 election.

Plan Nord may or may not survive a change in government, but a radical change in the approach to mining in Quebec – which is usually highly ranked in the Fraser Institutes annual mining surveys and has long had generous incentives for mineral exploration – would be surprising.

While one party, Québec Solidaire, has said it would look at potentially nationalizing the mining and forestry industries in the province if elected, polls at presstime projected that a minority government is likely – led either by the Liberals or Coalition Avenir Québec (CAQ). CAQ’s leader François Legault has criticized permitting times for new mining projects in the province, pledging to reduce bureaucracy.

Also in this issue, we bring you Part 2 of our Electric Mine series of articles, which began in September with a profile of MacLean Engineering.

In this installment, we speak to Brent Bergeron of Goldcorp about the company’s decision to build the world’s first all-electric mine, Borden, in Ontario.

While more and more mines around the world are adopting battery powered equipment, none are yet completely diesel free. That’s in part because of limitations on battery technology that have rendered it less practical for larger machines or those that require large and sustained energy draws – haul trucks for example.

Indeed, Goldcorp’s development of Borden and work with partner OEMs there is driving the development of such new technology and paving the way for more fully electric mines to come. We’ll take a closer look at Borden in our CMJ December issue.

CANADIAN MINING JOURNAL |

5

2018-09-24 2:05 PM

UNEARTHING TRENDS

Capitalizing on Quebec’s mineral potential

By Patrick Bertrand-Daoust

D

isruption, particularly driven by technology and a focus on sustainability, is creating buzz in the mining and metals sector around the potential of new world commodities. Metals like lithium, nickel and cobalt have become central to the production of high tech and green technologies from batteries and smart phones to advance defence systems.

As demand for these products grows, so does the need for new world commodities – particularly for electric vehicles (EVs) and energy storage systems (ESS). Tightening emissions regulations, government incentives for cleaner technologies and rising compliance costs for internal combustion engines (ICE) – tied with customer preferences for environmentally responsible modes of transport – are all factors driving EV adoption. It’s expected that there will be 130 million EVs globally by 2030 – that’s a massive increase compared with 3.7 million in 2017.

ESS on the other hand is a much smaller market, but still has significant growth potential due to its low current base. Grid storage, for example, is expected to grow by 42% by 2025.

A few early movers have already proactively secured supply to meet expected future demand – including Chinese state-owned enterprises that stepped in to purchase and fund mines and downstream processing, and even exploration for these minerals. As a result, China now controls a significant portion of global lithium supply and more of the refined cobalt market than any other nation.

The opportunity may seem a world away, but it’s not: Quebec is ripe for investment. The province accounts for onefifth of Canadian mining output, and is home to the most diversified production in Canada with 15 metals and 13 non-metallic minerals. Coupled with competitive corporate tax rates and government support for research and develop projects, Quebec has promising mineral potential. Here’s why: w Increased investment in Quebec’s mining sector: Investments in mining and mineral production are on the rise. In fact, the Fraser Institute recently ranked Quebec number six – up from the eighth spot – as the best jurisdiction around the world for mining investment. Downstream players are increasingly looking to access battery raw materials such as lithium and natural graphite by investing in upstream players.

The province as a whole has also seen greater international investment in projects from Chinese players. w Competitive corporate taxation system and stable regulatory framework: The combined tax rate for corporations in 6 | CANADIAN

MINING JOURNAL

06_CMJ October2018_EY trends.indd 6

Quebec is 26.8%, which is one of the lowest in North America. On top of that, to promote mining activity, the Quebec government offers a number of tax incentives for companies that engage in exploration and mining activities. w Government support for research and development: The Quebec government provides financial support for the establishment of R&D and innovation projects. The government recently announced it would contribute a combined $248 million to assist a major mining project, process plant and port improvements in the central part of the province.

There is tremendous opportunity for Quebec to capitalize on mineral potential. However, every opportunity comes with its own set of challenges. As mining and metals companies start to consider greater investments in the province, here are three key things to keep on their radar: 1 Significant capital is required to develop new projects – particularly lithium projects. Major miners have spent the last three years or so strengthening their balance sheets, and have taken a relatively conservative approach to allocating capital due to new risk businesses. The mining sector will need to explore alliances and joint ventures as an avenue to access the new capital and resources needed to progress new projects.

2 Even with rising demand for new world commodities, battery raw materials are a relatively small market compared to other commodities. Mining and metals companies will have to balance their focus between the old and the new.

3 Mining and metals projects tend to overrun budgets and schedules. During project development, companies need to consider the various issues that could arise – including economic, regulatory, supply chain, utilization rate, environmental, social, and governance concerns – and have mediation and financing plans in place before the project begins.

As disruption in technology and sustainability drives demand for new commodities, opportunities are starting to take shape for miners. Mining and metals companies will need to develop flexible and agile business models, and actively review their portfolios for new opportunities if they want to capitalize on the growth. If approached correctly – taking capital, portfolio and project management concerns into consideration – Quebec CMJ could have a significant place in these new markets.

PATRICK BERTRAND-DAOUST is the Quebec Mining & Metals Leader at EY Canada.

www.canadianminingjournal.com

2018-09-24 2:05 PM

LAW

Four trends driving mine streaming this year

By Robert Mason

S

treaming transactions have remained at the forefront of mining financing this year.

A mining stream involves the sale by a company of a right to a certain percentage or amount of future production of a commodity from a company’s mining project in exchange for a heavily discounted upfront payment.

As global equity capital markets remain weak, mining companies have increasingly turned to selling streams in order to finance the development and/or expansion of their projects. As a result, there continues to be a rapid increase in the number of private equity funds and other strategic buyers that are seeking to invest in mine streams. In fact, the proliferation of stream purchasers and the significant number of streams being completed suggest that mine streaming has now become “mainstream” as a primary source of financing for resource companies.

While mine streaming is not a new area, there have been four major trends in this sector over the last several months:

due to the amount of a project’s upside that is typically sold to the stream purchaser. This is partly because stream buyers typically calculate their purchase price on the basis of a project’s reserves while either ignoring or heavily discounting the project’s non-reserve resources. As a result, mining companies receive little to no value for resources that are subsequently advanced into reserves after the stream takes effect.

To make streams more attractive, senior mining executives are increasingly demanding limitations on the upside that is sold under streams. For example, the buy-back right has become a significant tool by which a mining company can repurchase all or part of a stream at a certain date for a preagreed price, thereby allowing the company to buy back a portion of the upside originally sold under the stream. In addition, mining companies often insist on a cap on the number of ounces or tonnes of the commodity deliverable under the stream so as to avoid losing decades of upside from a project.

“Security light” A mining company’s obligations to the stream purchaser under a streaming agreement have traditionally been backstopped by extensive security in favour of the stream purchaser over the mining project’s assets and production. This is to provide the stream purchaser some level of protection in the event the seller defaults under the streaming agreement or if the seller becomes insolvent.

However, stream purchasers have recently started to move away from bank-like security on select streams, in particular with respect to streams on producing mines and/or uniquely attractive streams sold by major mining houses. This is because security-related features can lead to streams being viewed as debt by a mining company’s credit rating agencies, which can be a major problem for mine companies that are selling streams to pay down existing debt.

Instead of traditional security, stream purchasers have become more willing to consider security substitutes from such higher profile mining houses, including: staged milestone-related instalments of the upfront payment – which limits a purchaser’s exposure if a project fails early; production and delivery guarantees; and dedicated cash accounts in favour of the stream purchaser.

In combination, these tools are being increasingly employed to avoid the disadvantages of bank-like security on streams.

Streams on new technology commodities For many years, streaming transactions were limited to precious metal projects and later evolved to include various base metals such as nickel and zinc. However, 2018 witnessed the rise of the new technology streams – streams on the metals critical to new battery technology, in particular, lithium and cobalt. Many of the larger and more high profile streaming deals this year involved these new technology commodities. It is too early to know if this trend will continue or if we will see streams on other new technology commodities in the near future.

Limiting the sale of the upside Streams are often viewed as a very expensive source of capital OCTOBER 2018

07_CMJ Oct2018_Law.indd 7

Converting offtakes to streams Offtakes offer a number of financial reporting disadvantages to holders that are public companies which can make the offtake appear on the holder’s financial statements as less attractive than it really is. Many offtake holders have therefore started to negotiate with issuers to convert their offtakes to streams, thereby securing more conventional financial reporting. There has been significant recent activity relating to the negotiation of streams to replace existing offtake agreements.

As the proliferation of mine streaming continues into 2019, these four developments will continue to shape the industry as both stream sellers and stream buyers strive for ways to secure greater financial and economic benefits from these transacCMJ tions.

ROBERT MASON is a partner and head of mining in Canada at Norton Rose Fulbright.

CANADIAN MINING JOURNAL |

7

2018-09-24 2:06 PM

CSR & MINING

Creating a vision to deliver long-term social value

By Jane Church & Carolyn Burns

D

eveloping a clear shared vision and defining what local rightsholders and stakeholders want for the future increases the likelihood of achieving sustained positive outcomes for local communities from extractive development. However, more often than not, a long-term vision for the community relating to mining development is missing.

A vision for extractive development creates a road map for stakeholders to work together in partnership. It starts the

conversation about how extractive development can leave communities better off and identifies how mining can fit into broader economic priorities and social development plans. A vision also enables communities, companies, and government to guide the changes that mining will inevitably bring to a community in a way that meets their objectives.

Communities must be at the centre of any vision for the future. To achieve that, government and project proponents need to treat communities as legitimate, equal partners in extractive development, whether they are formal rightsholders or not (and especially when they are). Too often, communities are left out of critical natural resource and development planning exercises or are brought in only as bystanders or commenters.

In Quebec, Plan Nord was developed in partnership with Indigenous Peoples in the region, including the Cree of Eeyou Istchee. In addition to being part of the Plan Nord discussions however, in 2011, the Cree also set out their own vision for Plan Nord in a separate document. In this vision they stressed that Plan Nord must respect Cree rights and that the Cree must be part of all land and resource planning exercises that affect their territory. These statements from the Cree reinforce that there is still work to be done to put communities at the centre of development planning.

A visioning process can create a platform for open discussion about community, company, and government interests and priorities. It can provide a space to talk about issues beyond

jobs, contracts, or social investment and improve relationships between stakeholders. Company-community discussions about mining projects often focus on job and other financial numbers, without a long-term perspective about how that infusion of cash can contribute to the achievement of a community’s broader socio-economic goals. A clearly defined vision can 8 | CANADIAN

MINING JOURNAL

08-09_CMJ October2018_CSR.indd 8

Starting a conversation about how a community can manage and leverage mining activities can be difficult, but should be started as early as possible so the community can build its understanding over time. enable resources to be allocated more efficiently. It encourages communities and companies to find more meaningful, synergistic social investment opportunities that are aligned with the community’s vision for the future. It also reduces dependency on any one mining project and increases accountability among all actors.

The process of developing a vision can, and often should, be part of broader regional planning. A community working with a

project proponent could decide to start with a project-specific vision and build it into a larger regional plan about how mining will be managed in a region. Or government can work with communities to move from a larger regional plan towards community visions and even a vision for a specific mining project.

One of the biggest challenges to developing a vision, however, is that there is no clear starting point. Mining development is

inherently uncertain, making it challenging or even impossible to have discussions about the future when the earliest work begins. Companies often do not know whether their work will progress and whether they will have a long-term presence in an area. As a result, there is a fear that including communities too early will create unsustainable expectations. However, waiting too long can leave communities out of decision making as momentum builds quickly around a project. Even in parts of Canada with a history of resource development, such as Quebec, there are many communities where mining is new. A community may not have much experience engaging with a project proponent or in understanding the potential impacts and opportunities of mining. As a result, starting a conversation about how a community can manage and leverage mining www.canadianminingjournal.com

2018-09-24 2:07 PM

activities can be difficult, but should be started as early as possible so the community can build its understanding over time. At the same time, it is never too late for companies and communities to sit down together and discuss the future.

Creating a vision requires communities, government at all levels, and mining companies to actively participate in discussions and be prepared to make tangible commitments. It is often necessary

to bring in other companies or civil society groups in the area that also have a stake in the future of an area, such as those working in agriculture, forestry, or tourism. Committing to a visioning process also means committing to the time it takes to talk about the future in sometimes slow ways – it is not usually just a checklist of questions and answers to get through.

The scope of the visioning process will affect the resources required to support it. Working with a community to develop a project-specific vision for the future does not necessarily need to happen separately from existing stakeholder engagement activities for example. However, for a community to participate in a more formal process, they may need support for hiring subject-matter experts or legal expertise (if there will be

anything binding). It may also be helpful to hire a third-party facilitator to help guide the process.

The process of negotiating formal agreements between mining companies and communities, such as impact benefit agreements, can be a useful vehicle for a visioning process.

Agreements become stronger when there is an agreed-upon vision in place that can be worked towards. Many people point to agreement-making as an effective system for decision making about the future, and one that is increasingly used.

However, agreements should not be seen as a de-facto replacement for a common vision. When looking at examples of existing agreements in Canada, many agreements impose one party’s approach (more often the company’s) on the other, as opposed to taking a partnership or shared responsibility approach working towards a common vision. Furthermore, the process of developing an agreement, like the process for developing a vision, is just as important as the result. CMJ CAROLYN BURNS is director of operations at NetPositive, a non-profit that works with diverse stakeholders to help local communities see sustained positive outcomes from mining. JANE CHURCH is a co-founder and director of collaboration with NetPositive.

Nuna Group of Companies dePendaBLe ProJect deveLoPMent

•

Inuit-owned and highly experienced in delivering on multiple fronts: constructIon and MInIng servIces

LeadIng Products

traInIng technoLogIes

• All-Weather Roads & Runways • Contract Mining • Dams & Frozen Core Dams • Dikes • Earthworks & Site Development • Exploration Support

• Industrial Lighting • Concrete Cloth • Portable Flooring Systems

• Program Development • Contract Training for: Heavy Equipment – Field & Simulator

nunalogistics.com

OCTOBER 2018

08-09_CMJ October2018_CSR.indd 9

• Ice Roads & Runways • Large Diameter Drilling • Mine Reclamation – Care & Maintenance • Remote Infrastructure Planning • Site Services & Crushing

nunainnovations.com

nunatraining.com

CANADIAN MINING JOURNAL |

9

2018-09-24 2:07 PM

FAST NEWS • CLASSIFIER |

Updates from across the mining ecosytem

Van Tongeren unveils water-free particle sizer

P

ennsylvania-based process equipment manufacturer Van Tongeren America has introduced a gravitational-inertial classifier (GIC) system that automatically separates dry materials without using water.

Developed to replace the traditional wet separation process that often consumes millions of gallons of water daily with a dry process that needs no water, the pneumatic air classifier system harnesses gravitational, inertial, centrifugal and aerodynamic forces at the same time to separate particles at any cut point from 300 μm to 63 μm (50 to 230 mesh).

The proprietary, heart-shaped GIC design passes a current of air through a curtain of falling material then directs each particle towards a series of vanes where coarse particles are discharged and entrained fine particles are recirculated in an eddy current until discharged and captured by a dust collector.

Proven in multiple installations, the novel air classifying system has reduced operating costs, streamlined operations and eliminated the need for settling ponds, in addition to saving water.

• ENERGY |

Ideal for classifying manufactured sand, frac sand, crushed stone, cement, salt, lime, soda ash and a variety of aggregates and minerals, the gravitational-inertial classifier is designed with no moving parts for dependable service and

Van Tongeren’s gravitational-inertial dry classifier.

CREDIT: VAN TONGEREN AMERICA

nearly zero maintenance in unattended, 24/7 operation.

CMJ

Newmont chooses Cambridge redeployable solar in Ghana

C

ambridge Energy Partners (CEP) announced earlier this month that Newmont Mining, one of the world’s largest gold producers and sustainability leaders, has deployed CEP’s redeployable Nomad solar PV tracker to demonstrate lower cost renewable electricity and to offset energy demand at its Akyem gold operation in Ghana.

CEP’s Nomad is a prefabricated and redeployable solar generator with single-axis tracking technology. Capable for use in a variety of applications, this solar tracker is designed to be quickly deployed in scalable 30 kW segments, suitable for both small and large scale projects. Energy generated by CEP’s Nomad is fully integrated into existing electrical networks to create a reliable and sustainable hybrid power system.

“We are thrilled that Newmont shares our vision and is demonstrating our solar technology at the company’s Akyem operation in Ghana,” said Tom Miller, CEO of CEP.

10 | CANADIAN MINING JOURNAL

10_CMJ Oct2018_Fast News.indd 10

“Our vision is to deliver lower cost energy to all remote mining sites with our innovative prefabricated solar tracking technology. In addition, the mobility of our solar technology significantly mitigates the risks often associated with permanent solar installations.”

Elaine Dorward-King, Newmont’s executive vice-president for sustainability and external relations, added: “Renewable energy technologies such as the Nomad play an important role in Newmont’s long term strategy to reduce carbon emissions while lowering our energy consumption and costs.”

The Cambridge Nomad solar tracker enables both fast installation and redeployment yet provides the same performance as traditional large scale solar trackers.

CEP is based in Cambridge, UK, with offices in Spain, South Africa and Canada.

CMJ

www.canadianminingjournal.com

2018-09-24 2:09 PM

Q&A

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

GOLDCORP’S ELECTRIC VISION Goldcorp’s Borden mine, in northern Ontario, is on track to be the world’s first all-electric mine when it opens late next year. A prefeasibility study on Borden, which hosts proven and probable reserves of 950,000 oz. gold in 4.1 million tonnes grading 7.14 g/t gold, is due out before the end of 2018.

Ahead of first production at the mine, we spoke to Goldcorp executive VP, corporate affairs and sustainability Brent Bergeron, about the company’s decision to go electric.

CMJ:

How did the idea for the all-electric mine originate?

We started looking Brent Bergeron: at our strategy going forward, especially with respect to our overall 20-20-20 plan

of increasing production, lowering our costs and increasing reserves. We wanted to make sure that the sustainability aspect of our vision for the future was very well integrated within that plan.

There were a few different factors that influenced the idea for Borden. In Ontario, the cost of electricity is quite high, but we also saw the issue of carbon pricing becoming more predominant here in Canada. We wanted to partner with different stakeholders, government being one of them, demonstrating ways that some of the government’s objectives could be very consistent with some of our objectives, but doing this in a way

OCTOBER 2018

11-13_CMJ Oct2018_Goldcorp.indd 11

that was also productive, efficient and safe for our workers.

Given the fact that we’re not building a mill, we’ll be transporting the ore from Borden to the Porcupine mine in Timmins – this gave us an opportunity to look at using it, in essence, as a pilot project to try and implement different technologies.

Even though it’s a pilot project, the overall cost of building the mine will probably be around $250 million so it’s a fairly large investment for the company. It’s part of our overall strategy, as we move sustainability and innovation forward, to do so while making very strong business cases for our board, our management team, and our investors.

The other two factors that were really important to us were how do we build new projects in the future that will have more social acceptability and actually assist us in the permitting process? We believe that social acceptability and the permitting process are linked together and if people see progressive companies that are making use of better technology and providing

CONTINUED ON PAGE 12

CANADIAN MINING JOURNAL |

11

2018-09-24 2:30 PM

Q&A A battery powered bolter, part of MacLean Engineering’s EV line of equipment.

CREDIT: GOLDCORP

safer environments for their workers, we see that as a plus in terms of being able to get these projects to move forward very quickly.

CMJ:

Has the change in the Ontario government affected you at Borden?

No it hasn’t. The previBB: ous provincial government agreed to provide us with funding up

to $5 million to develop the battery operated trucks we’re going to be using to haul the ore out of the mine itself and there’s no change there. (The federal government is also looking at providing the same amount of funding.)

It will be interesting to see how the discussions go with respect to carbon pricing in between the new government in Ontario and the federal government. However, we want to do this in a way that we can be part of those discussions and demonstrate that these types of projects are feasible and they do have very good business cases – which to us would also help in terms of the new government of Ontario’s objective of trying to send the message that Ontario is open for business. We want to continue with our investments in the province, but we want to do this in a way where we see the future going for mining, which is it has to be done in a responsible and sustainable manner. So it’s not changing the way we’re approaching our projects.

CMJ:

Have you used electric vehicles at any of your other mine sites?

BB:

Yes, we tested different kinds of equipment at mine sites across Ontario so that we could see whether the technology could be used in new projects going forward. So it’s not that we just started on the journey when we arrived at Borden.

CMJ:

BB:

How did you choose suppliers to work with?

We had conversations with some of the larger multimetal companies like Rio Tinto and BHP Billiton

12 | CANADIAN

MINING JOURNAL

11-13_CMJ Oct2018_Goldcorp.indd 12

and one of their comments was in the past, they’ve actually had difficulties getting the supply chain to work with them to develop new technologies. We did go to different producers and some of them came back and said that they weren’t interested in developing new technology – they had their trucks, they had their haul machines that they were selling and that’s what they wanted to stick with -- until we found Sandvik. When we approached Sandvik, they were very open to the partnership, they were very open to designing and working with us on the development of the technology and the equipment. We think that’s going to be very positive for them because right now they’re getting a lot of interest in the technology from other mining companies.

CMJ:

You’re working with Sandvik to develop haul trucks – are these the trucks that are going to take the ore to the Porcupine mill 160 km away?

No, that’s another piece of technology that we’re BB: looking at right now, which is the last mile solution because we also want a haul truck from Borden to Porcupine that will also be using sustainable technology. So we’re looking at whether to use trucks that are powered by hydrogen or any other types of battery operated vehicles that could also be used for that last mile solution to Porcupine.

CMJ:

The mine is going into commercial production at the end of next year. Do you think all the technology will be ready? www.canadianminingjournal.com

2018-09-24 2:30 PM

Sandvik’s DD422iE electric mining jumbo.

CREDIT: GOLDCORP

We’re hoping that it will, we’re supposed to be comBB: pleting our permitting process most likely by 2019 – the mine is already under development right now because

they’re actually doing the ramp, and the trucks are supposed to be early 2020. So by the time we’re ready to actually start hauling material on a full-time basis, we hope the technology will be there. We’re working towards that deadline. It’s a risk for us because we’re permitting for an all underground mine and we did this even through the technology did not exist yet.

CMJ:

That’s an interesting point, that you committed to this without all the technology being in place. We profiled MacLean Engineering, which is another of your partners at Borden, in our last issue.

They said that Goldcorp’s commitment to the project, they might not have built their EV line for years.

Exactly, that’s true. I go back to the Borden mine BB: being what we think of as a pilot project for us. When you’re developing new technology on a mine that has a cost of

$3 or $5 billion, you are taking a very large risk. So given that this was a smaller investment for us, that basically allows us to bring this forward in a way that we can commit to it. We are taking a certain level of risk, but we feel that’s being managed very properly by the company and our supply chain.

CMJ:

Compared to conventional diesel equipment, how much more will you be spending on equipment for Borden?

You’re probably seeing an increase in cost anywhere BB: from 10-20% more and I think that has more to do with the fact that it’s brand new equipment that’s being devel-

oped at this point, so it’s not being mass produced. But what’s really interesting is when you take a look at the overall maintenance costs of this type of equipment compared to conventional, that’s where there is a significant savings because you’re not having to do as much maintenance on those engines or rebuilds on an ongoing basis.

OCTOBER 2018

11-13_CMJ Oct2018_Goldcorp.indd 13

We’re still working out what the overall costs will be, but we can see already that there will be over the life of mine significant savings in those areas.

CMJ:

Have you encountered any regulatory issues in building Borden as an all-electric mine?

One of the things we’re working on right now with BB: the Ontario government is the labour regulations that dictate the type of ventilation that you need in an under-

ground working mine. We have ventilation on demand at the Eleonore mine in Quebec and the province of Quebec actually updated their labour laws to take that into consideration. At the Borden mine, current labour regulations would require us to continue ventilating the mine as if we did have diesel engines underground and were generating diesel particulate. So we are working with the provincial government right now, the Ministry of Labour to modernize Ontario’s regulations. It’s part of the work that we do, but I think that’s a good thing because it allows us to work with our labour unions in different areas, it allows us to work with the ministries of labour in different provinces to make sure that they are also keeping up with the type of innovation that companies are trying to bring forward.

CMJ:

What has the reaction been from your investors?

It’s been positive. I think investors want to see our BB: industry move towards more sustainable types of mining operations and you’re starting to see that today with

some of the declarations of some of the large investment firms.

Of course there always has to be a component of that which makes sense form a business perspective. When we think of sustainability, we’re not just doing it to feel good – there actually has to be a very compelling business case to be able to move in these areas. But what we’re finding out is that as you start combining and developing these new types of technology, that a stronger business case is actually being made.

CMJ

CANADIAN MINING JOURNAL |

13

2018-09-24 2:30 PM

14-15_CMJ October2018_nexa ad.indd 14 THC_NEXA_ANUNCIO_42x28.indd 1

2018-09-24 2:12 PM

Your kitchen, your car and even the sunscreen that you use are all connected to what Nexa does:It’s by investing in technology that Nexa transforms zinc into an essential element in galvanised steel parts in cars and contributes to their durability, as it also does with your kitchen appliances.

Zinc enhances the effect of sunscreen, preventing premature ageing.

Nexa technology creates jobs, and delivers consistent results to partners and investors.

NEXA. Taking the best of zinc from the world of mining to the world.

14-15_CMJ October2018_nexa ad.indd 15

2018-09-24 2:122:19 PMPM 14/09/18

I

n December 2014, financially strapped Cliffs Natural Resources announced the closure of its Bloom Lake iron mine – putting some 600 miners out of work and casting a dark cloud over the nearby town of Fermont, Que, located near the Quebec-Labrador border some 400 km north of Sept-Iles.

But one year later, the town’s fortunes took a turn for the better.

Quebec Iron Ore (QIO), a subsidiary of Montreal-based 16 | CANADIAN

MINING JOURNAL

16-19_CMJ Oct2018_Plan Nord.indd 16

Champion Iron, bought the mine, a railway spur line and dozens of mineral claims for the rock bottom price of $10.5 million. By February of this year, QIO put Bloom Lake back into production – and 450 miners back to work – thanks in no small part to direct and indirect support from the Quebec government under its Plan Nord initiative.

The Quebec government made a direct investment of $50 www.canadianminingjournal.com

2018-09-24 2:13 PM

QUEBEC

Plan Nord BEARS FRUIT

Provincial initiative has been a key support for new Quebec projects

By D’Arcy Jenish

million in Bloom Lake – giving it a 37.2% stake in a joint-venture partnership with Champion. As well, the Caisse de dépôt loaned the company $100 million to get the mine and mill up and running. Then the government acquired Cliffs’ Pointe Noire port facility and infrastructure in the municipality of Sept-Îles and QIO became a limited partner in the corporation set up to manage and develop the port.

OCTOBER 2018

16-19_CMJ Oct2018_Plan Nord.indd 17

Nemaska Lithium’s processing plant, in Shawinigan, Que. CREDIT: NEMASKA LITHIUM

“We have a great partnership with the Quebec government,” says Michael O’Keefe, president and CEO of Champion. “I’ve worked closely with the people at Plan Nord.”

CONTINUED ON PAGE 18

CANADIAN MINING JOURNAL |

17

2018-09-24 2:13 PM

QUEBEC

N PAGE 20

Bold beginnings In May 2011, former premier Jean Charest launched Plan Nord – a bold initiative meant to stimulate resource development, among other things, north of the 49th parallel from RouynNoranda to Baie Comeau. The plan languished after Charest’s Liberal party lost the 2012 election, but Charest’s successor Philippe Couillard revived it when the Liberals returned to power in 2014.

The Couillard government created a new agency called Société Plan Nord (SPN) with a mandate to promote the development of natural resources, to diversify the mining industry and to support private sector projects through direct and indirect investments. To that end, the government established Fonds d’initiatives du Plan Nord and projected that it would invest over $350 million between 2015 and 2020 while contributions from other government departments and agencies would bring the total investment to $1.3 billion.

“It confirmed that the government was committed to development in northern Quebec,” says Guy Bourassa, president and CEO of Quebec City-based Nemaska Lithium, which is developing a lithium mine near the Cree community of Nemascau, some 300 km north of Chibougamou. “It has had a big impact on us.”

In May, the company completed a $1.1-billion financing that included a US$350-million bond offering, a US$150-million streaming agreement and a $454-million share issue. Ressources Québec, a provincial agency, bought $80 million worth of shares, giving it a 12.5% stake, and other government entities have contributed an additional $50 million.

“That really helped the rest of the world to put money into the project,” says Bourassa. Indeed, SoftBank Group of Japan invested $94 million for a 9.9%

stake and the right to nominate one member of the board – the first time the Japanese investment giant has put money into a mining venture.

Nemaska is developing an open pit mine with a projected life of 33 years and expects to begin production in the second half of 2019. The company plans to mine to a depth of 190 metres over a period of 20 years before going underground. Initially it will employ 200 people, many of them Cree.

At the outset, the company will be producing a lithium concentrate known as spudomene. Nemaska is currently building a processing plant in Shawinigan that will refine the spudomene into high purity lithium hydroxide and carbonate through a proprietary process, which it has patented. The plant is expected to be complete by the end of 2020 and will employ about 100 people.

Lithium is a key component of batteries in cell phones, tablets and other consumer electronics and is also used in batteries for electric vehicles. Some analysts warn that the world market is becoming saturated. However, Nemaska has signed supply agreements that commit 90% of future production to two companies LG Chem Ltd., South Korea’s largest chemical com-

RIGHT: Nemaska Lithium CEO Guy Bourassa; Nemaska’s Whabouchi mine.

CREDIT:NEMASKA LITHIUM

18 | CANADIAN

MINING JOURNAL

16-19_CMJ Oct2018_Plan Nord.indd 18

www.canadianminingjournal.com

2018-09-24 2:13 PM

LEFT: Champion Iron’s Bloom Lake iron ore mine.

CREDIT: CHAMPION IRON

pany, and Northvolt, a Swedish consortium founded in 2016 to develop the world’s cleanest battery technology.

First vanadium producer Société Plan Nord and other branches of the Quebec government have played an integral role in advancing BlackRock Metals’s vanadium, titanium, magnetite mining project. The privately owned, Montreal-based company has been exploring and developing its property near the community of Chibougamou since 2008.

The company has raised a total of $1.2 billion and that includes $85 million in equity from Quebec’s Fonds Capital Mines Hydrocarbures, as well as a $50-million loan from Investissement Québec and a second $50-million loan from Ressources Québec.

“If you look at this project from the government’s perspective, it diversifies the province’s mineral production, which is one of the goals of Plan Nord,” says BlackRock chairman Sean Cleary. “And we’ll be hiring a lot of people.”

The mine and concentrator will create 200 jobs while a processing plant will employ another 300 people. Cleary says

OCTOBER 2018

16-19_CMJ Oct2018_Plan Nord.indd 19

BlackRock will begin preliminary construction of the open pit mine this fall with full construction slated to begin March 2019.

Production will commence in 2021.

The company is planning to build its metallurgical plant at Grande Anse, a federally owned port on the Saguenay River, south of the city of Chicoutimi, with an adjacent industrial park developed by the Quebec government at a cost of some $63 million.

Cleary anticipates that the company will find multiple buyers for the output from its mine. For one thing, BlackRock’s mine will be the first vanadium producer in North America. Five countries – Russia, Ukraine, South Africa, Brazil and China – account for most of the world’s production and China consumes all its output internally.

Vanadium is a key component of large batteries used to store electricity generated by solar and wind energy installations. It is also an alloy used to make stronger lighter steel and as Cleary notes: “As the world moves toward electric vehicles we will need stronger, lighter materials.”

The company will also be producing high purity magnetite iron, which is used in recycling steel. “It allows producers to use a higher percentage of scrap steel,” says Cleary. “That’s very positive for the environment. Our project has been well received downstream by users of the product.”

CMJ

CANADIAN MINING JOURNAL |

19

2018-09-24 2:13 PM

ADVERTORIAL

YOUR

TOUGHEST GETS OUR TOUGHEST

The 2018 Ford Super Duty is the Most Capable Super Duty Ever

Y

ou don’t step into the 2018 Ford Super Duty, you step up to it. An absolute beast of a truck, it’s designed to challenge the laws of physics - outworking, outmuscling and outtowing the competition. No matter how tough your task… this truck has your name on it. Depend on the 2018 Super Duty to get the job done, and then some.

It starts with a newly upgraded 6.7-litre Power Stroke V8 diesel engine offering best-in-class* 450 horsepower and 935 lb.-ft. of torque – also best in class. Super Duty continues as the heavy-duty champ, owning key capability claims in the segment including: horsepower, torque, gooseneck towing, conventional towing and payload.

Best-in-Class^ Towing You’ll get best-in-class^ towing with a maximum gooseneck towing of 34,000 lbs. and a conventional towing maximum capacity of 21,000 lbs. (capabilities higher than any other heavy-duty pickup).

So if you’re looking to tow big, call on the best.

Best-in-Class** Payload This truck’s 7,630-lb. maximum payload rating is also best-inclass**. When the Super Duty went to a military grade‡ aluminum alloy bed and body paired with a high strength steel frame, the net weight saving‡‡ went into its frame, leaf springs, trailer hitch, rear

axles and transfer case, while also coming out up to 24 times stiffer than the outgoing model. This truck doesn’t buckle to even the heaviest payloads.

Available Class-Exclusive Trailer Reverse Guidance System† The Ford Super Duty is the only heavy-duty truck in its class to offer an available Trailer Reverse Guidance System† to increase its sightlines. Visibility is enhanced via cameras in the side view mirrors and visual guides in the centre dash screen, giving you a clear rear view of where the trailer is going. And with a customer-placed rear trailer camera that seamlessly integrates into the centre stack screen, it turns reversing a trailer from an exercise in futility into an exercise in precision. n

^ When properly equipped. Maximum gooseneck towing capacity of 34,000 lbs. on F-450 4x2 with 6.7L diesel engine configuration. Maximum conventional towing capacity of 21,000 lbs. on F-350/F-450 DRW with 6.7L diesel engine. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. ** When properly equipped. Maximum payload of 7,630 lbs. on F-350 DRW Regular Cab 4x2 with 6.2L gas engine. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. ‡ 6000-series aluminum alloy. ‡‡ up to 350 lbs, † Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. Driver-assist features are supplemental and do not replace the driver’s attention, judgment and need to control the vehicle. ©2018 Ford Motor Company of Canada, Limited. All rights reserved.

THE 2018 SUPER DUTY. WORKS AS HARD AS YOU DO, AND THEN SOME. 20 | CANADIAN MINING JOURNAL

20-21_CMJ Oct2018_Ford advertorial.indd 20

www.canadianminingjournal.com

2018-09-24 2:14 PM

THE 2018 SUPER DUTY®

OUTWORK. OUTPERFORM. OUTLAST THE COMPETITION.

When your reputation matters, you can’t be too capable, too powerful, or too smart. That’s the philosophy behind the 2018 Super Duty.

Dig deeper with best-in-class towing* and payload^. Out-think every challenge with available class-exclusive† innovations such as blind spot sensors that cover your truck and trailer, and cameras that give you a full panoramic view around your vehicle to help you manoeuvre your trailer, avoid a collision, and so much more‡. Smart. Tough. Capable. Super Duty.

BEST-IN-CLASS MAX TOWING* 34,000 LBS

BEST-IN-CLASS MAX PAYLOAD^ 7,630 LBS

BEST-IN-CLASS DIESEL TORQUE** 935 LB-FT

BEST-IN-CLASS GAS TORQUE^^ 430 LB-FT

THE PERFECT PAIRING OF MILITARY-GRADE◊ ALUMINUM ALLOY AND HIGH-STRENGTH STEEL

‡‡

EXPLORE THE SUPER DUTY. FORD.CA/SUPERDUTY Vehicle may be shown with optional features. *When properly equipped. Maximum towing capacity of 34,000 lbs on F-450 4x2 with 6.7L diesel engine conguration. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. ^When properly equipped. Maximum payload of 7,630 lbs on F-350 DRW Regular Cab 4x2 with 6.2L gas engine. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. †Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. ‡Driver-assist features are supplemental and do not replace the driver’s attention, judgment and need to control the vehicle. **Maximum diesel torque of 935 lb-ft with standard 6.7L V8 diesel engine 6-speed automatic transmission conguration.

Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. ^^Maximum gas torque of 430 lb-ft on with standard 6.2L V8 gas engine. Class is Full-Size Pickups over 8,500 lbs.

GVWR based on Ford segmentation. ◊6000-series aluminum alloy. ‡‡F-Series is the best-selling line of pickup trucks in Canada for 52 years in a row, based on Canadian Vehicle Manufacturers’ Association statistical sales report up to year-end 2017. ©2018 Ford Motor Company of Canada, Limited. All rights reserved.

20-21_CMJ Oct2018_Ford advertorial.indd 21

2018-09-24 2:14 PM

International miner looks to expand its footprint in Canada

ELDORADO SPEEDS TOWARDS PRODUCTION AT LAMAQUE

By Alisha Hiyate

E

ldorado Gold is best known for its international assets – among them, the Kisladag and Efemcukuru mines in Turkey and the Olympias and Stratoni mines in Greece. Until 2016, when it sold its assets there, it also had mines in China.

But the company is about to open its first mine in Canada, after acquiring Integra Gold and its Lamaque project in Vald’Or, Que. last year.

Importantly, Lamaque finally gives Eldorado an operating asset in its home country, something president and CEO George Burns says was “strategically important and desirable.”

“Although we like Canada and wanted to be an operator here, it’s a very competitive environment so we’d been looking for that right entry point.”

With its eye on Lamaque as that entry point, the company made an initial investment for 15% of Integra in 2015. In mid-2017, it negotiated a $590-million friendly acquisition of the junior.

With current reserves of 893,000 oz. gold in 3.8 million tonnes grading 7.3 g/t, outlined in a prefeasibility study early this year, Lamaque is expected to produce an average of 117,000 oz. gold per year over an initial seven-year mine life.

And starting next year, when it enters commercial production, Lamaque will play a key role in Eldorado’s plan to double 22 | CANADIAN

MINING JOURNAL

22-24_CMJ Oct2018_Eldorado.indd 22

production to 600,000 oz. by 2021.

“In the mix of our mines, Lamaque will be our second largest mine and be a very important contributor to value at Eldorado,” Burns said in an interview. “And it’s got probably the most exciting exploration potential in terms of the ability to extend mine life and increase reserves.”

It also gives the company an asset in the highly stable and mining friendly jurisdiction of Quebec, lowering its overall geopolitical risk. Eldorado is looking at transitioning its Kisladag heap-leach mine in Turkey to a larger operation with a mill. In Greece, the company has seen permitting delays at its Skouries project and in September announced it would be seeking €750 million from the government in compensation.

At Lamaque, permits have been granted without delay and development has progressed quickly, said Burns in late August.

“We acquired (Lamaque) a little over a year ago and we’ve completed 10,000 metres of underground development. Out of that, about 5,500 metres has been done this year and essentially that’s ramp development and setting up sills for longhole stoping.”

The mine is permitted for up to 2,000 tpd and the operating permit for the mill is expected by year end. www.canadianminingjournal.com

2018-09-24 2:15 PM

Scenes from Eldorado Gold’s Lamaque mine in Quebec. Bottom left: Eldorado CEO George Burns.

CREDIT: ELDORADO GOLD

According to a March 2018 prefeasibility, Lamaque’s economics are healthy. The project has an after-tax net present value (NPV) of US$211 million and an internal rate of return (IRR) of 35%. That’s calculated using a 5% discount rate and based on US$1,300 per oz. gold. However, Lamaque still shows positive economics at US$1,200 per oz. gold, with an NPV of $150 million and an IRR of 25.9%.

The project has a low projected capex of $122 million plus $57 million of pre-commercial costs. That will be offset by $80 million in pre-commercial gold sales for a net startup capital of $99 million. The pre-commercial gold sales, from toll milling of ore that has come of development, has helped to de-risk the project from a technical standpoint.

“That’s given us confirmation that our metallurgical assumptions and our modelling of the underground deposit is consistent with the gold production this year,” Burns says. “It’s helping us offset capital costs but most importantly, it’s helping verify all the key assumptions that underpin this investment.”

Project history The Lamaque property consists of the historical Sigma and Lamaque mines, which were owned, respectively, by Placer OCTOBER 2018

22-24_CMJ Oct2018_Eldorado.indd 23

Dome and Teck. Between them, the mines, located in the Abitibi greenstone belt, produced almost 10 million oz. gold starting in the 1930s and ending in the 1980s.

Subsequent attempts by McWatters Mining and then Century Mining to put the mines back into production were ultimately unsuccessful.

However, Integra Gold’s discovery of the Triangle deposit, located about 2.5 km south of the Sigma and Lamaque mines, showed that the property’s potential was far from exhausted.

Triangle is an Archean orogenic lode gold deposit, with gold hosted in quartz-tourmaline-carbonate veins that occur within a series of sub-parallel, sub-vertical shear zones centred around the Triangle Plug.

One of the factors keeping capital costs low at Lamaque is existing infrastructure, including the Sigma mill.

The company is refurbishing the mill, which was last updated in the late 1990s and has two ball mills and one rod mill. Eldorado is replacing four CIP tanks and refurbishing three at the mill, as well as rebuilding the mill motors, and constructing a new reagent building. It’s also installing a state of the art new operating system to control the mill and maximize recoveries.

CONTINUED ON PAGE 24

CANADIAN MINING JOURNAL |

23

2018-09-24 2:15 PM

Eldorado is also taking advantage of other opportunities to modernize the mine with technologies aimed at improving productivity and minimizing environmental impacts. For example, it’s looking at dewatering or thickening its tailings.

Underground, the company will use tagging and tracking technology on workers and equipment to improve safety. It will also use ventilation on demand technology to decrease operating costs and the operation’s environmental footprint.

“We’ve also brought in electrical experts to assess both the underground and the mill to look for opportunities to make the electrical systems as efficient as possible for the exact same reasons – to reduce our footprint and improve our energy efficiency,” Burns says.

Exploration While the Triangle deposit is the focus of Eldorado’s mine plan, Burns believes there’s a lot more potential for further discoveries.

“What we liked about (Lamaque) was it’s a large property position; there’s a lot of untested exploration targets,” said Burns. “We’re in the early stages of developing and understanding the full potential of the Triangle deposit and we have a couple of other resource areas that we think have really good potential. We’re reasonably confident that with additional focus and exploration we’ll be able to expand our reserve base beyond the Triangle deposit and be able to ramp up production to a higher level.”

Only one of the two veins that are included in the deposit’s maiden reserve is actually drilled off, Burns explains.

“The second vein is thicker, higher-grade and only half of the

vein so far has been infill drilled, which enables us to consider them reserves.”

Although the company believes it will be able to convert resources in the bottom half of the vein – the Lower Triangle deposit – to reserves, expanding reserves hasn’t been the focus of its work this year.

“This year, our exploration’s been focused on some of the deeper veins and the reason why is we really wanted to have a reasonable understanding of the full potential of the deposit in order for us to strategically design infrastructure to support that ultimate mine life.”

Since the end of 2017, the company has completed more than 12,000 metres of expansion drilling, with another 10,000 metres planned this year. That drilling has found additional veins with good potential, and determined that the mineralized system extends to at least 2 km depth. With that knowledge in hand, the focus will now switch to deep drilling to bring that material into inferred resources while also shoring up reserves.

The last focus of exploration is on the known historical deposits, Plug 4 and Parallel. In terms of long-term development, Eldorado is studying building a second ramp at Lamaque that would provide a more direct corridor from the Triangle deposit to the Sigma mill, as well as exploration access to Plug 4, Parallel, and other targets.

“This is a pretty unique opportunity for us and I’m hopeful it’s the beginning of reaching our full potential,” concludes Burns.

“We like Canada, we like Quebec, and we’ll be looking for further opportunities beyond Lamaque to expand our footprint here in Canada.”

CMJ

BUILDING THE NEXT GOLD MINE IN QUEBEC Eldorado is proud to be building the Lamaque project in Val-d’Or, Quebec. Commercial production is expected in early 2019.

Eldorado is a leading intermediate gold producer with a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with the communities where it operates. eldoradogold.com eldoradogoldlamaque.com TSX: ELD | NYSE: EGO

24 | CANADIAN

MINING JOURNAL

22-24_CMJ Oct2018_Eldorado.indd 24

www.canadianminingjournal.com

2018-09-24 2:15 PM

Photo: Joshua Fahning, iStockphot.com

EAST COAST

NOVA SCOTIA’S GOLD REVIVAL Historic mines guide new players

{

Nova Scotia is Canada’s second smallest province and not one that immediately comes to mind as a top gold mining jurisdiction. But companies that are investigating historic gold production in the region are finding new potential. Here’s a look at three of them.

Atlantic Gold

Atlantic Gold has been active in Nova Scotia since 2014. Early this year, after only four years advancing its Moose River Consolidated (MRC) project, the company declared commercial production at the mine – its first.

MRC is forecast to produce an average of 87,000 oz. gold per year over 8.5 years at an AISC of $690 per oz. based on production from two of four deposits at the property – Touquoy and Beaver Dam. But a prefeasibility study on a second phase expansion of the mine shows that the Fifteen Mile Stream and Cochrane Hill satellite deposits can be brought into the mine plan for a staged capital investment of $396 million. The study, released earlier this year, shows the satellite deposits will boost the mine life to 10 years and increase production as high as 200,000 oz. gold per year during peak years while maintaining a low AISC of $692 per oz. gold.

CONTINUED ON PAGE 26 OCTOBER 2018

25-26_CMJ Oct2018_East Coast.indd 25

Atlantic Gold’s Moose River Consolidated gold mine.

CREDIT: ATLANTIC GOLD

CANADIAN MINING JOURNAL |

25

2018-09-24 2:15 PM

NP

EAST COAST The study pegs the expansion project’s post-tax net present value (NPV) at $188 million, assuming US$1,300 per oz. gold and a 5% discount rate.

Stage 1 production is based on proven and probable reserves in Touquoy and Beaver Dam totalling 760,000 oz. in 16.5 million tonnes grading 1.44 g/t gold. Stage 2 production would be based on adding reserves totalling 825,000 oz. in 22 million tonnes grading 1.17 gram per tonne from Fifteen Mile Stream and Cochrane Hill.

Further drilling is under way on the satellite deposits with an updated resource due out before the end of the year.

MRC is located in central Nova Scotia, about 60 km northeast of Halifax. First production at the property dates back to the late 1870s. Whereas historic production was based on highgrade veins, Atlantic is targeting disseminated mineralization amenable to low cost, open pit mining.

Anaconda Mining

In August, Anaconda received permits to take a 10,000tonne underground bulk sample from Goldboro. Extraction of the sample, which is expected to take four months, will use an existing decline excavated in the late 1980s. The sample will inform a feasibility study planned to begin in September.

Past production at the Boston Richardson mine on the property dates back to the 1890s.

Resource Capital Gold

Resource Capital Gold completed a 45,600-tonne bulk sample at its Dufferin project in southeastern Nova Scotia this summer.

Taken over a 14-month period from four different “saddles” at the saddle reef vein system, 5,846 oz. of gold were recovered from the sample for a grade of 4.17 g/t gold. Gold recoveries averaged 80.9%.

The site contains a fully permitted 300 tpd gravity and flo-

Anaconda Mining, which operates the small Point Rousse gold mine in Newfoundland, acquired the Goldboro project in Nova Scotia in 2017 from Orex Exploration.

Earlier this year, it released a preliminary economic assessment (PEA) outlining an open pit and underground mine at Goldboro that would produce an average of 42,000 oz. gold a year over an 8.8-year mine life. Capital costs were estimated at $89 million (including a $20 million contingency). Concentrate produced at Goldboro would be shipped to the company’s Pine Cove mill in Newfoundland for gold recovery. Goldboro is located on tidewater in the Eastern Goldfields of Guysborough Cty., 185 km northeast of Halifax.

The recent PEA was based on measured and indicated resources of 102,500 oz. gold in 1.1 million tonnes grading 3.01 g/t gold (open pit) and 422,900 oz. in 2.6 million tonnes grading 5.09 g/t gold (underground).

tation mill, which was used for test milling. It was built by a previous owner who briefly brought the mine into production in 2014.

The vein system at Dufferin has been defined over 1.4 km and to 400 metres depth, with 14 different saddle reef veins identified. The project is located 25 km from Sheet Harbour in southeastern Nova Scotia, about 135 km northeast of Halifax.

Dufferin contains an indicated resource of 58,000 oz. gold in 151,500 tonnes grading 11.9 g/t gold and an inferred resource of 150,000 oz. gold in 703,900 tonnes grading 6.6 g/t gold.

A 2016 PEA projected that 216,000 oz. of gold could be recovered over a 10-year life at Dufferin with a capex of $9.85 million, a post-tax NPV of $89.2 million and an IRR of 121%.

Resource Capital says that moving forward, its exploration focus will be on the Tangier and Forest Hill projects, two other past producers in the province that it is advancing toward CMJ PEAs.

Anaconda Mining’s Goldboro project.

Resource Capital Gold’s Dufferin gold project.

CREDIT: ANACONDA MINING

CREDIT: RESOURCE CAPITAL GOLD

26 | CANADIAN

MINING JOURNAL

25-26_CMJ Oct2018_East Coast.indd 26

www.canadianminingjournal.com

2018-09-24 2:15 PM

CREDIT: METSO CORP.

p28 p31

3 TIPS TO SPOT GRINDING MILL ISSUES EARLY

HOW LUBRICANTS CAN LOWER YOUR TCO

27 | CANADIAN

MINING JOURNAL

27_CMJ Oct2018_EMR cover.indd 27

www.canadianminingjournal.com

2018-09-24 2:17 PM

IT’S TOUGH TO EXTEND DRAIN INTERVALS TO 750 HOURS BUT NOT FOR DURON™

WHAT YOU D CANHURT YOUR MILL

by Moris Fresko

D TM

Owned or used under license.

28 | CANADIAN

MINING JOURNAL

28-30_CMJ Oct2018_metso.indd 28

o not let hidden defects bring your mill to a halt. Often, your mill can seem to be running smoothly until a major failure strikes. Over time, issues arise from wear and tear on your grinding mill that are not easily visible. Here are the top three undetected issues with grinding mills and how to catch them.

Misalignment, damaged gears and pinions, wash, leaks, structural failures and more can eventually bring your operawww.canadianminingjournal.com

2018-09-24 2:18 PM

With DURON protecting your engine you could achieve drain intervals* of up to 750 hours in even the most demanding of operations. That’s the kind of drain intervals we call tough.

And it’s all proven in the real world with field testing on tough jobs like yours. We’ve talked tough.

Now we’ve proven it.

THE TOUGHER. THE BETTER.™

U DON’T SEE T A Metso expert explains how to spot grinding mill issues early

HEAVY DUTY DIESEL ENGINE OILS

FIND OUT MORE. THE SOONER. THE BETTER. DURONTHETOUGHERTHEBETTER.COM

tions to a stop, often unexpectedly. When you are caught off guard, the damage can be exponentially worse and have a cascading effect on your operations. In this article, we discuss three common issues and tests that can help you spot these problems early and change the fate of your operations.

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

ABOVE: A Metso ball mill; a Metso employee in the plant.

CREDIT: METSO CORP.

OCTOBER 2018

28-30_CMJ Oct2018_metso.indd 29

CANADIAN MINING JOURNAL |

29

2018-09-24 2:18 PM

Cracks in gears and pinions

• PROBLEM: Small cracks can appear in the gears

and pinions. If not detected early enough, cracks can progressively become worse until tooth breakage occurs.

• SUGGESTED TEST: Magnetic Particle Inspection, also known

as MPI, is a non-destructive test for discovering surface and shallow discontinuities in ferromagnetic materials. If an indication is found such as a crack on a gear, the crack can be ground out or the tooth issue can be relieved by grinding out the crack.

The gear may be fit to run with or without repair, require flipping or replacement. Finding and fixing issues early will avoid undesired wear, broken teeth or even complete failure of the gear and pinion. An MPI test is done on a fully cleaned gear and pinion. This makes it easier for a trained expert to also perform a more thorough visual inspection to discover other issues caused by wear, contamination, or lack of lubrification. Other forms of inspection that do not require cleaning make it more difficult to spot these types of problems.

Slurry wash under the liner

• PROBLEM: In wet grinding mill applications, slurry

can seep underneath trunnion or shell liners and start washing the mill components, particularly when the liner rubber backing is missing or damaged. Often, this goes undetected for long periods of time causing excessive wear to the mill rotating components.

• SUGGESTED TEST: To

prevent a potential failure due to excessive wear, it is important to catch slurry build up behind liners. A quick and easy way to do this is with Ultrasonic Testing (UT). UT is a method used to measure the thickness of a mill structural component such as a head, trunnion, or the shell.

Operators can determine the location and extent of the thinning areas. Using a UT test has the benefit of detecting wash inside the mill without removing the liners, which minimizes downtime required for the inspection as it is performed from outside the mill.

30 | CANADIAN

MINING JOURNAL

28-30_CMJ Oct2018_metso.indd 30

Metso ball mills in action at a mine site. CREDIT: METSO CORP.

Structural failure in mill components

• PROBLEM: A grinding mill goes through considerable

rotations in one year and fatigue cracks can develop over time. If undetected, these cracks will grow until the components fail (crack through). Evaluating the causes of these cracks are as important as detecting them.

• SUGGESTED TEST:

Magnetic Particle Testing is typically used to find cracks whereas Ultrasonic Testing is used to find and locate wear or wash in rotating components. Once the inspections are completed, a structural evaluation may be necessary. This can be done using Finite Element Analysis. FEA is an engineering tool used to calculate stresses and deflections within a structure where a complex geometry is broken into smaller simple elements and results are then combined to give a complete picture. In most cases, and especially on newer mills, the causes of the structural failures are not due to a weak design, but rather mill abuse, mill overload, or wash. An FEA evaluation determines if a worn component is too thin and should be repaired before further damage occurs. Similarly, mill loading may be excessive and needs to be cut back. FEA can also help to determine what options could work as a temporary fix while waiting for a replacement part.

Looking beyond the obvious Though important, visual inspections often do not give a full picture of your mill’s condition. Of course, it is important to visually inspect your mill but it is also important to use additional non-destructive methods to find defects that can easily be missed. Having a clear understanding of the complete health of your mill will better help with maintenance planning and avoid unwanted downtime and costs. To learn about all the different mill inspection packages and testing options from Metso, go the website at www.metso.com. CMJ This article was originally posted on Metso’s website. www.canadianminingjournal.com

2018-09-24 2:18 PM

smooth OPERATIONS How lubricants can play a vital role in reducing TCO

A

utomated lubrication systems are designed to provide optimal performance and longevity of mining equipment by delivering lubricants in the proper amounts, at the proper times, to the appropriate places on these machines.

They also are designed to provide consistent distribution in the harshest environments. If the systems are not properly inspected and maintained, however, damage can result. The cost of component failure can far exceed planned maintenance expenses.

A disciplined, ongoing inspection and maintenance schedule can save companies hundreds of thousands of dollars each year in lubricant, maintenance and repair costs. These inspections can also help avoid unplanned downtime by identifying components that need replacement before a catastrophic failure occurs.

In assessing the cost of routine maintenance, it’s important to consider the total cost of ownership, or TCO. This is the entire amount a mining company spends on its equipment, including purchase costs and lifetime operating expenses, along with the expense of lost production during downtime. Mine operators can improve their TCO by reducing operat-

OCTOBER 2018

31-33_CMJ Oct2018_shell.indd 31

ing and lost-production expenses, boosting both productivity and profitability.

“It is challenging to understand all of the factors that contribute to total cost of ownership,” says Duane Schulze, Shell Lubricants Service Expert. “It is even more challenging to identify and mitigate all of those potential risks before they become an expensive issue. By proactively managing your maintenance schedule and lubrication systems, you help put yourself in a better TCO position.”

Understanding automated systems The first step to improving TCO is understanding the components of automated systems and how they work. These systems can be complex. A single-line grease system usually has a controller governing its timing and function; a pump that draws grease from a central tank and circulates it; injectors that meter the grease to the bearings; and a pressure switch that ensures the injectors deliver the proper amount of grease at each lubrication point. However, the systems on most mining equipment can be more complicated, and a typical shovel may have 95 separate lubrication points served by six different systems.

Given this complexity, leaks – especially small ones – may be difficult to find.

Some companies choose to accept a small level of leakage and replace lubricants more frequently. Unfortunately, more frequent lubricant replacement drives up costs. Even though the cost of lubricants is small relative to other components, it can add up to hundreds of thousands of dollars.

“Customers often get used to the issues they are having and do not realize they could help make their equipment last longer and reduce costs just by selecting better quality grease,” Schulze says.

The second step in improving TCO is to recognize the benefits of proper lubrication management. Companies should be sure to match grease selection to the equipment needs and the operating environment. In addition, grease should be properly stored and handled to reduce contamination.

Choosing the right grease Rather than saving money, buying lower-grade or improper grease may actually increase costs. Selecting the proper grease, however, is not as simple as it CONTINUED ON PAGE 32

CANADIAN MINING JOURNAL |

31

2018-09-24 2:21 PM

sounds. There is not always just one correct answer in choosing the best grease for an automated lubrication system. Usually, grease selection involves tradeoffs.

Grease consists primarily of base oil and additives, which provide the critical performance characteristics. A thickener gives the grease its consistency and keeps it in place on the equipment. These elements enable the grease to lubricate despite temperature variations, vibrations and environmental conditions, while also staying in place and maintaining its consistency over time.

Choosing the correct grease helps ensure that equipment operates correctly while potentially minimizing the cost of maintenance and component replacement and improving operational efficiencies. The first step in selecting grease is to review OEM recommendations and baseline operating conditions. Mining operators should focus on the Usable Operating Temperature. Depending on the geography and operating conditions, a grease’s ability to perform at low temperature is as important as performing at high temperatures. Some greases are specially designed to maintain their consistency and protection properties while 32 | CANADIAN

MINING JOURNAL

31-33_CMJ Oct2018_shell.indd 32

operating in extremely low or high temperatures.

The benefits of an effective TCO program Based on years of experience working closely with customers across various industries, Shell Lubricants knows that lubrication can reduce TCO and improve equipment efficiency and productivity.

Although lubricants account for less than 5% of most companies’ maintenance costs, lubrication issues may contribute to as much as 75% of all equipment failures.

Surprisingly, many companies fail to recognize the critical role of lubricant selection and application in reducing TCO. An independent survey found that 60% of companies believe lubricants can reduce maintenance expenses by less than 5%. In fact, for some sectors, improving lubrication practices can cut maintenance and repair costs by as much as 30%. In other words, companies that fail to incorporate lubricants into their comprehensive TCO assessments are potentially leaving money on the table.

Proper lubricant selection and management can affect costs significantly.

In a survey, 46% of users acknowledged that errors in lubricant selection or

management caused unplanned downtime. Twenty-seven percent said their cost exceeded $250,000, and more than one in 10 admitted the associated costs exceeded $1 million.

TCO programs do not always generate benefits that are immediately obvious.

Getting TCO right is often about balancing short-term and long-term costs with long-term improvements. Mining equipment is designed to be durable, and its tolerance to poor or lax maintenance can make it difficult to quickly demonstrate tangible benefits of a TCO program. For a program to succeed, companies must look ahead and recognize that selecting better quality grease today and having a strong grease management and reliability program can reduce maintenance costs in the long run.

How to help prevent a failure Given our years of experience working with all types of mining equipment, Shell Lube Service Experts can help spot early signs of trouble before they result in unplanned downtime or equipment failure. When our experts conduct preliminary assessments on a shovel, they typically start with a visual examination www.canadianminingjournal.com

2018-09-24 2:21 PM

Although lubricants account for less than 5% of most companies’ maintenance costs, lubrication issues may contribute to as much as 75% of all equipment failures.

KGHM’s Robinson mine in Nevada. CREDIT: SHELL LUBRICANTS

of all components, looking for loose bolts, cracks in the frame, noises, and other general housekeeping. Next, they check the gear box temperatures and take oil samples (if the customer requests it).

They also inspect all pumps and injectors for grease and air leaks, check the system pressure and review all lubrication points throughout the machine to ensure each component is receiving the proper amounts of grease. In addition, they examine the open gear lube system, dipper handle, rack and pinion, slew gear and pinion, and spray or drip feed system. They also conduct by-pass checks on all injectors.

An example of one inspection underscores the importance of regular inspections. In 2016, a Nevada copper and gold mining company began working with Shell Lubricants to reduce its TCO for critical equipment at the mine. During the coldest winter months, Shell Lube Service Experts working alongside the mine’s staff found a cracked tooth in the crowd bull gear of an electric rope shovel – a discovery that wound up saving the company almost $900,000.

Shell Lubricants’ team worked with the company to analyze the potential for OCTOBER 2018

31-33_CMJ Oct2018_shell.indd 33

component failure and identify signs of weakness or fatigue in key system components including: open gearing, pins, bushings, bearings, and automated lubrication systems. In examining the automated systems, the team determined if they were functioning properly and delivering the right amount of lubricant at the right time. The Shell Lubricants team started by establishing a baseline.

On the company’s electric rope shovels, Shell Lube Service Experts visually inspected the systems and noted areas that appeared to be under- or over-lubricated. Team members inspected both the hoist and crowd bull gears by cleaning a tooth flank on each to identify wear, fatigue or plastic deformation.

It was during this inspection that the teams identified the cracked tooth.

The team immediately notified the maintenance crew’s lead mechanic and the shovel and drill crew supervisor. If the shovel had returned to operation without removing the tooth, the gearing may have failed. Using an ultrasound, the maintenance crew checked adjoining tooth flanks and found another crack.

The maintenance crew scheduled repairs for the crowd bull gear and monitored

the shovel operations daily until the repairs were completed.

If the gear tooth fatigue had not been found, a catastrophic failure could have occurred causing extensive damage to the crowd bull gear, crowd drive pinion or crowd gear box. It also could have resulted in unscheduled down time. The $900,000 savings represents the difference between the cost of the repair and the expense of replacing the crowd bull gear and the associated downtime and production losses.

The mining company’s inspection shows how in today’s environment, taking the time for preventative maintenance can have a big impact on operations. Shell Lubricants works with mining companies globally to help them improve their TCO approach to lubrication, resulting in more than $55 million in documented customer savings from 2011 to 2016. By working together to develop a TCO program specific to each company’s needs, Shell Lubricants can help clients improve the efficiency, productivity and reliability of their automated grease systems. CMJ This article was provided by Shell Lubricants.

CANADIAN MINING JOURNAL |

33

2018-09-24 2:21 PM

METSO CELEBRATES

150 YEARS C

rushing and grinding giant Metso Corp. was officially established in 1999 through the merger of two Finnish-based industrial companies, Valmet and Rauma. Today, the leading manufacturer of mining and aggregate equipment has 12,000 employees in 50 countries. But Metso, which also makes and services equipment for the process and recycling industries, has a history that extends much further back.

In fact, the company can trace its beginnings to 1868, when Sunds Bruk, a small iron works in Finland, was founded. That company eventually ended up as part of Rauma.

Through a steady stream mergers and acquisitions over the years, Metso now has more than a dozen heritage brands that have contributed to its impressive expertise and depth of knowledge in comminution in particular. Looking back at the company’s history, it’s easy to see how Metso has achieved such scale and longevity.

One of its Metso’s oldest brands, Nordberg, was established in 1886. Nordberg designed and built the Symons cone crusher, which “revolutionized” coarse to fine grinding for mining plants, says 34 | CANADIAN

MINING JOURNAL

34-36_CMJ Oct2018_metso 150.indd 34

(The Symons cone crusher) was really the gold standard for plant design from the 1920 until the ’60s or ’70s.”

– DUSTY JACOBSON

A Symons cone crusher.

CREDIT: METSO CORP.

Dusty Jacobson, sales and product support manager for mining.

With a different mechanical design that changed the concentric motion of the crusher, the Symons machine was able to handle larger tonnages and achieve a finer grind than ever before.

“It made it more practical to process more tonnes in a mining plant,” Jacobson explains. “It was really the gold standard for plant design from the 1920s until probably the ‘60s or ‘70s when semi-autogenous grinding mills and autogenous grinding mills started to get more popular.”

Although it’s now an older product, the Symons cone crusher is one of the biggest products overall in Metso’s lineage, with about 17,000 units sold.

Nordberg became part of one of Metso’s predecessor companies, Rauma-Repola, in 1986.

Another heritage company, Allis-Chalmers, made the first ball mill in 1898. It also made the first hydro cone crusher and was one of the first companies to modernize the primary gyratory crusher with a design that allowed for easier operation and maintenance.

“What they made in the 1950s is actually very www.canadianminingjournal.com

2018-09-24 2:22 PM

COMMINUTION

E

similar to a lot of the machines that you see on the market even today,” Jacobson says.

Megaliner More recently, one of Metso’s most successful inventions has been the Megaliner, a mill lining product which was introduced about eight years ago.

Changing out mill components, which is typically done every three to 12 months depending on the application, is labour intensive and dangerous work, notes Todd Moir, director of product management.

“The Megaliner product reinvented the way these parts are installed,” he says.

By allowing the components to be fastened from outside the mill rather than inside, the Megaliner vastly improves safety – an accomplishment that has been recognized with an industry award for safety. The product also allows the job to be completed more quickly, slashing downtime by as much as 50%, Moir says.

Industry trends Several industry trends have shaped Metso’s recent offering.

OCTOBER 2018

34-36_CMJ Oct2018_metso 150.indd 35

Left: The Symons cone crusher ‘revolutionized’ grinding in mining plants.

The machines handled more ore and could achieve a finer grind than previous crushers.

Right: Nordberg HP cone crushers.

CREDIT: METSO CORP.

For example, in response to the decreasing ore grades and harder ore types that many mines are seeing, Metso has introduced products such as its HRC – a newer-style high-pressure grinding roll (HPGR) unit that handles higher tonnages with better energy and water efficiency.

And in the last decade, with miners facing financial pressures and uncertainty, Metso has really advanced its optimization efforts, says Jacobson.

“Customers are very focused on squeezing as much out of the plant for the lowest operating cost that they can, so our customers have actually pushed us to advance our technology and optimize our technology to a very high degree to make sure we’re getting the most utilization of the equipment that we can.”

Service focus Since 2003, when it secured the first large-scale services contract in mining globally from a Chilean company, Metso’s focus on the services aspect of its business has only grown. In the company’s 2017 annual report, it notes that services make up CONTINUED ON PAGE 36

CANADIAN MINING JOURNAL |

35

2018-09-24 2:22 PM

COMMINUTION

ship of a crusher or a mill and we supply the spares and wears for it along with the operation of the mill and the replacement of parts,” Moir explains.

The market is demanding being more service-driven and a solution provider.”

– TODD MOIR, DIRECTOR OF PRODUCT MANAGEMENT

66% of its sales in the minerals segment vs. 34% from the sale of equipment.

Mines are running leaner – with fewer staff, fewer tradespeople and a different type of workforce overall than in decades past. This has given a boost to Metso’s strategic focus on services.

“The market is demanding being more servicedriven and a solution provider,” Moir says.

This means more than lifecycle service contracts – where the company offers a service along with its product. It also means helping mining companies more in their overall operations, in some cases even running equipment.

“We have some service contracts where we run a portion of the plant, so we kind of take owner36 | CANADIAN

MINING JOURNAL

34-36_CMJ Oct2018_metso 150.indd 36

Top row: Old and new models of Nordberg cone crushers.

CREDIT: METSO CORP.

Digitalization Predictive maintenance and condition monitoring are other areas Metso has been hard at work on.

“That is something that we’ve really tried to focus on here in the last couple of years,” Jacobson says. “We have been focusing on data collection with the framework of condition monitoring to be able to put advanced analytics together to do predictive analysis, and help with maintenance planning as well as failure analysis.”

Currently, Metso has pilot projects at a dozen minerals processing plants in the U.S., South America, Africa and Australia to test its new cloud-based IoT solution to be launched in November. Metso’s platform is able to do predictive maintenance through “connected” crushers.

At 150, Metso is still reinventing itself. Last year, the company went through a reorganization of its overall structure and division of business lines, effective Jan. 1, 2018. As part of that change, and with the aim of spurring innovation, R&D teams were put in place in each of the company’s business lines, says Moir.

The first of the new products out of these teams – including its new IoT solution – will be released before the end of the year.

For Jacobson, who has been with Metso since 2003, the focus on innovation is invigorating.

“If I work for Metso for another 40 years, I know that I’ll constantly be challenged and that we’ll have new products and strategies and innovations always coming out,” he says. “That makes it exciting.”

CMJ www.canadianminingjournal.com

2018-09-24 2:22 PM

PROFESSIONAL DIRECTORY

Cylinder Repair Seals, Kits & Cylinder Repair Parts For Mining Equipment.

   

STOCKED FOR SAME DAY SHIPPING!

BARRIE, ONTARIO MONTREAL, QUEBEC T 800.665.7325 | F 800.565.6990 T 800.565.6534 | F 800.263.9533 barrie@HerculesCA.ca montreal@HerculesCA.ca Oline Ordering www.HerculesCA.ca

DONT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2018.

WWW.CONMICO.COM

List theas Costin as low $250.00 perMining issue Canadian Contact: Journal’s ROBERT SEAGRAVES Professional 416-510-6891 Fax: 416-447-7658 rseagraves@canadianminingjournal.com Directory

GROUT SYSTEMS MIXERS SHOT-CRETERS CONCRETE PUMPS TEL: 1(905) 660-7262

We’re your common ground .com You

Cost as CONTACT: List in the low as Robert Seagraves JOELLE GLASROTH Canadian Mining Fax: 416-447-7658 416-510-6891 416-510-5104 Fax: 416-447-7658 $250.00 jglasroth@canadianminingjournal.com Journal’s Professional rseagraves@canadianminingjournal.com per issue

Mine site

Financier

Directory

ADVERTISERS INDEX Conmico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 37 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . conmico.com Eastmain Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . eastmain.com Eldorado Gold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . eldoradogold.com Ford Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 20/21.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... ford.ca Hard-Line Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . hard-line.com Hercules... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 37

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . herculesca.ca

Maestro Mine Ventilation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . maestroventilation.com Metso

. . .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .

2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . metso.com/grindingwears

Nexa Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14/15.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . nexaresources.com Nuna Logistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 9 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . nunalogistics.com Petro Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28/29.. . . . . . . . . . . . . . . . . . . . . . . . . . . . duronthetougherthebetter.com Sandvik... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 40

......................................

rocktechnology.sandvik

SRK Consulting.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... srk.com

OCTOBER 2018

37_CMJ Oct2018_Directory.indd 37

CANADIAN MINING JOURNAL |

37

2018-09-24 2:23 PM

WOULD LIKE TO THANK THE VALUED SPONSORS OF THE 2018 PROGRESSIVE MINE FORUM

DIAMOND

GOLD

SILVER

The Progressive

MINE FORUM New Ideas > Next Generation

BRONZE

MaRS PARTICIPANTS

MEDIA SPONSORS

Presented by

-&-

October 10, 2018 MaRS Discovery District - Toronto, Ontario

CMJ Oct2018_Ad pages.indd 38

2018-09-24 3:16 PM

“THE FIRST GIGABIT NETWORK PROVIDING BOTH DATA AND POWER USING CONVENTIONAL COAXIAL CABLE.”

WI-FI

VIDEO

RFID

TELEMETRY

VOICE

Race to the Face.

We get you through the last mile quicker.

Plexus PowerNet™ Plexus PowerNet™ delivers a high speed, low latency digital communication network that provides PoE+ power to Wireless Access Points, cameras and any IP based device. The system eliminates the need for costly outside fiber optic contractors and can be installed and maintained by any internal tradesperson.

maestrodigitalmine.com

CMJ Oct2018_Ad pages.indd 39

2018-09-24 2:03 PM

CMJ Oct2018_Ad pages.indd 40

2018-09-24 2:03 PM