SEPTEMBER 2022 | www.canadianminingjournal.com | PM # 40069240 THE GOLD ISSUE SEABRIDGE GOLD’S KSM ANDALAMOSSTORYGOLDTHEPHASE 3+ EXPANSION OF ISLAND GOLD MINE B2GOLD: CANADIAN LEGACY
Kappes, Cassiday & Associates (KCA) now has four carbon converters successfully operating at mines in Armenia, Argentina, Mexico and Nevada. These units take carbon fines and dirty, wet waste carbon at gold leach plants, thoroughly ash it and remove all mercury. Recovery of gold and silver into bullion is typically 99%. For waste carbon loaded to 200 grams gold per tonne, operating cost is $6.00 per gram, or 11% of the value of the recovered gold. Often waste carbons are loaded much higher - the cost per gram drops accordingly.
THE
Mines with the Carbon Converter can recover their gold quickly without the Chain-of-Custody problems of shipping carbon to outside processors. Shipping mercury-contaminated wastes off-site incurs large risks of environmental contamination, and the Carbon Converter eliminates this risk.
Having the Carbon Converter on site allows the operation to explore various process optimization techniques. For example, carbon fines below 30 mesh are usually lost to tailings in CIL plants, because such fines cannot be recovered cleanly. These losses can account for 1% of the gold fed to the plant. The Carbon Converter can process them. Another opportunity exists where process facilities periodically discard a portion of their coarse carbon in order to maintain optimum carbon activity. With the Carbon Converter, this carbon can be consumed on site and the contained gold recovered economically.
RecoverCONVERTERCARBONKCAGoldFromYourCarbonFinesOnSite
The installed cost of the Carbon Converter is about US$1 million including site services, a building, and infrastructure. For mines which generate at least 50 tonnes/ year of carbon wastes and fines, payback is typically less than one year.
www.carbonconverter.com775-972-7575 or www.kcareno.com
29
4 LETTER TO THE EDITOR 6 ESG | Inclusive
14
10 UNEARTHING
SCREENS13Vibrating
|
DEPARTMENTS4EDITORIAL|The
For More Information Please visit www.canadianminingjournal.com for regular updates on what’s happening with Canadian mining companies and their personnel both here and abroad. A digital version of the magazine is also available at https://www.canadianminingjournal.com/digital-edition/CominginOctober2022
About the cover: Island Gold mine: gold refinery. CREDIT: ALAMOS GOLD
8 FAST
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 3 31
TECHNOLOGY15 How
FEATURES21
Seabridge Gold’s KSM story: interview with Brent Murphy, senior of environmental affairs. Alamos Gold and the Island Gold mine success story. gold miner: the story of B2Gold told by Clive Johnson, founder and CEO.
17 Smart
vice-president
31 Low-cost
BATTERY METALS 22 The
|
11 LAW
THE MINING INDUSTRY: Mining in Canada needs reinforcement not rebranding. screen maintenance for gold recovery. Diagnosing screen media problems. data from space can help miners’ supply chains on Earth. glasses: support reimagined. bonds: how to secure them and why they make sense. new gold: charging up lithium mines in Canada. gold issue: is gold still a haven for investors? Growth: building resilient, sustainable and responsible supply chains. NEWS Updates from across the mining ecosystem. TRENDS | Canadian mining and metals companies lagging on data leadership. | B.C., Tahltan Nation ink landmark consent-based agreement. THE MOVE Tracking executive, management, and board changes in Canada’s mining sector.
37 ON
Canadian Mining Journal’s clean mining and the environment issue with a highlight of mining in Quebec and Eastern Canada.
RECLAMATION19 Reclamation
www.canadianminingjournal.com 1424 SEPTEMBER VOL. 143, N O .7 GOLD MINER 24
The World Bank forecast gold price to fall to US$1,663/oz. in 2023, then dropping to US$1,623/oz. and US$1,584/oz. in 2024 and 2025, respec tively. It expects gold prices to average US$1,394/oz. and US$1,350/oz. in 2030 and 2035, respectively. Gold becomes less attractive when interest rates rise. How do you keep profiting from mining gold? Consider the low-cost mining model represented by B2Gold.
FROM arlier this year, the geopolitical uncertainty induced by Russia’s invasion of Ukraine pushed the gold market to the US$2,000/oz. level for the first time since August 2020. Then, gold prices retreated to around US$1,740/oz. (at the time of drafting this article) when cen tral banks began raising interest rates aggressively to tackle inflation.
In our annual gold issue, we interview the founder and CEO of B2Gold, Clive Johnson, who tells us his story as a lifelong gold miner and explains how B2Gold can exploit its low-cost model in mining gold internationally. We also get insights into the story of KSM project from Brent Murphy, senior vice-president of environmental affairs at Seabridge Gold. Finally, we explore the Island Gold mine success story and the details of the recent expansion announced by Alamos Gold.
I read with interest the article “Rebranding mining: Does mining need a rebrand?” that was featured in August issue of CMJ. I agree with the authors’ conclusions and forward my thoughts for rebranding. I have been a geologist in the classroom teaching from kindergarten to grade 7. I always begin with the question “what have you done today that did not involve a mineral?” Ice is a mineral. Even oxygen owes its existence to minerals. Soil (B and C horizons) is made up of minerals which release various elements (K, Mn, Ca, Mg, etc.) that a plant needs to grow. Also, microbes need some similar elements. Plants and trees generate oxygen via photosynthesis. After many discussions, the students under stand that minerals are involved in everyday life. I rarely discuss mining per se Most mining and exploration companies extol their virtues but fail to engage stu dents and the public. Companies should send their geoscientists into a classroom to engage students in the art of rock and mineral collecting and what they are used for, not spend money on advertising. Tell a person, they forget. Show a person, they remember. Engage or involve a per son, they learn. Minerals are in everything we do; they are the basis of our planet. Mining industry is very poor at public relations. The public is more related to every day life of what mineral extraction brings and does, not necessarily the number of jobs. What does mining do for the whole community is very important. If you use a cellphone, then you are pro-mining.
Bruce Downing, MSc, PGeo, FGC, FEC (hon)
THE EDITORE
Rhino gold bar. CREDIT: B2GOLD
Art Director Barbara Burrows Advisory Board David Brown (Golder Associates) Michael Fox (Indigenous Community Engagement) Scott Hayne (Redpath Canada) Gary Poxleitner (SRK) Manager of Product Distribution Allison 403-209-3515Mein amein@glacierrig.com
Publisher & Sales Robert 416-510-6891Seagravesrseagraves@canadianminingjournal.com Sales, Western Canada George 416-510-5104Agelopoulosgagelopoulos@northernminer.com
Our Law column investigates the recent agreement between B.C. and the Tahltan First Nation, and we continue the discussion on rebranding mining on pages 4 and 21. Why do reclamation bonds make sense? Andrew Cartwright answers this ques tion on page 19 of this issue, we also discuss more screen maintenance issues, and more to read in our annual gold issue.
CMJ Tamer Elbokl, PhD
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 Phone:methods:1-888-502-3456 ext 3; E-mail: amein@glacierrig.com Mail to: Allison Mein, 225 Duncan Mill Rd., Ste 320, Toronto, ON M3B 3K9
We acknowledge the financial support of the Government of Canada.
Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Circulation Toll Free Canada & U.S.A.: 1-888-502-3456 ext 3
President, The Northern Miner Group Anthony Vaccaro
Our gold issue: is gold still a haven for investors?
Established 1882 Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by Glacier Resource Innovation Group (GRIG). GRIG is located at 225 Duncan Mill Rd., Ste. 320, Toronto, ON, M3B 3K9 Phone (416) 510-6891. Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Robert Seagraves at 416-510-6891.
• LETTER TO THE EDITOR
4 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
SEPTEMBER 2022 Vol. 143 – No . 7 225 Duncan Mill Rd. Suite 320, Toronto, Ontario M3B 3K9 Tel. (416) 510-6789 Fax (416) www.canadianminingjournal.com510-5138 Editor in Chief Dr. Tamer TElbokl@CanadianMiningJournal.comElbokl Interim News Editor Jackson jchen@mining.comChen Production Manager Jessica jjubb@glacierbizinfo.comJubb
It’s been said a mine is a hole in the ground with a liar at the top. We beg to differ. At our Melba property, Doug found a pan full of gold from a random surface pile. The terrain is brutal. The only way in is through swamp driving an Argo slower than molasses on a cold day. But it’s a hot day. Even hotter with extra clothing to protect against mosquitoes the size of sparrows and the never-ending brush. It’s not an expedition for the weak. But for prospector, Doug Heath, it’s another day at the office. And what an office it happens to be. Spread out over 1,780 hectares approximately 20 kilometres from Kirkland Lake, Ontario, Melba is our newest gold property acquisition. It’s actually two properties next to each other within the Abitibi greenstone belt. An area that has produced over 70 million ounces of gold over the years. That’s more than $125 billion at today’s prices.
Not
Thepromising.Melba property is a welcome addition alongside our four other properties. But with no time for self-congratulations, we’re embarking on a field program, which apart from the prospecting already begun by Doug, includes geological mapping and a low frequency electromagnetic (VLF-EM) survey, followed by drilling to prepare an NI 43-101 report.
Likely, that’s as far as we’ll take it.
Gold was first discovered on the Melba property in 1934. In 1936, MelbaGold Mines Ltd. began production completing a 75-metre inclined shaft and about 275 metres of lateral drift work. From then until 1988 numer ous companies worked the property. A compilation of the work shows significant gold mineralization remains in all the oldAfterworkings.1988,with the price of gold in free fall, a long intermission of little activity followed.
To date, four gold-bearing quartz-calcite veins have been identified and trenched on the property. The Blue vein discovered in 1934 appears to be the most important with historic underground work concen trated there. Twenty diamond drill holes intersected the Blue vein with visible gold reported in 10 of the first 18 holes. In underground work on the Blue vein, 60 metres were reported to have 12.7 g/t gold over 1.0 metre. The face sampling ran up to 13.2 g/t gold over 1.1 metres for 51.1 metres. Historic sampling by Teck-Hughes Mines in 1939 returned an assay of 11.2 g/t gold over 1.4 metres. Further sampling of drill holes by Pitchvein Mines (1959-1964) returned values ranging up to 120 g/t over narrow width. Most of the drill holes returned visible gold. All of which appears very
You see, Advance United is a different kind of mining company. It has no intention of mining. It acquires undervalued, past producing gold properties and then increases their value through modern technology, field work, and analysis. The goal is to make properties compliant, valuable, and available for acquisition and development. We specialize in the middle work. If you have a gold property with documented reserves and might want to sell, we’d love to talk. Email us at partners@advanceunited.ca. Or call Jim Atkinson, our CEO, at 647.278.7502. Advance United. Exit Stronger. Prospector, Doug Heath with an old ore cart.
We use the newest technology to find gold. to mention, the oldest.
> NGOs are well-placed to help communities seize opportu nities: The projects demonstrated the important role of NGOs in extractive settings. NGOs can build trusted relationships and have the flexibility to work with a variety of actors: govern ment, academic institutes, communities, and companies. They can act as a bridge, facilitate dialogue, and create the conditions for women and vulnerable groups to take advantage of the opportunities offered by extractive activities.
Inclusive Growth: Building resilient, sustainable and responsible supply chains
> Supporting women and communities increases the local benefits from mining activity: By supporting women, resources can be extracted in a way that benefits communities, avoids exploitation and conflict, and results in equal benefit.
> Information facilitates local procurement from womenled SMEs: Many companies were generally interested in buy ing local but lacked the necessary information to do so. Creating a database of the local businesses and the goods or services offered helped companies identify procurement opportunities. Similarly, by providing women with information about the company’s needs, their requirements, the procurement pro cess, and the mining life cycle, they were better able to access opportunities in the supply chain.
There are number of mechanisms to increase local benefits and manage impacts, such as company and community agree ments and royalty or equity arrangements that transfer a por tion of mining royalties to communities. However, women are not often part of the decision-making processes related to these agreements or funds. Women are generally left out of decision making related to mining activity as well as impact manage ment plans, and women-owned businesses also face greater challenges to entering the mining supply chain than their male counterparts.Overthepast decade, several Canadian non-governmental organizations (NGOs) have been implementing international development projects in areas where mining activity is central to the local economy. The projects aim to enable local actors and communities to maximize socio-economic benefits from extractive activities. They also aim to support Canada’s Feminist International Assistance Policy (FIAP) that puts women and girls at the centre of development and addresses the root causes of poverty. These projects demonstrate how gender equality and women’s empowerment can be enhanced in extractive contexts.TheDevonshire Initiative recently completed a study of these projects and identified the following lessons learned. The proj ects reviewed for this study are all international projects, but the lessons learned are also applicable in Canada. To learn more about the projects and more details on how they supported gen der equity, check out the Devonshire Initiative website.
> Promote gender equality at all levels: Don’t just focus on the company – work with policymakers to community mem bers, and in various sectors from mining to finance to promote gender equality. At the local level, promoting gender equality allowed women and youth to contribute to the development and monitoring of agreements and plans to make sure these reflect their needs.
> Engage local training institutes early: Work with training institutes before the mine is open to develop and deliver courses that will allow women and youth to access employment and procurement opportunities. Support recruitment cam paigns that target women.
As we move towards a low carbon economy, there is a grow ing demand for critical minerals, like cobalt, lithium, and graphite. Manufacturers and consumers around the world are also demanding that this minerals be mined responsibil ity so they can contribute to resilient, sustainable and respon sible supply chains. Gender equity is central to building resilient, sustainable and responsible supply chains. However, the impacts and benefits of mining activity are not often experienced equally. Men often have greater access to employment opportunities and informa tion, while women tend to be disproportionately affected by the social and environmental impacts.
> Cross-sector collaboration is beneficial: Engaging with companies helped the NGOs to understand their view of the barriers to working with governments and procuring locally, and to help identify solutions. Involving companies in dialogue about local economic development resulted in more local pro curement and employment opportunities for women in the mining sector. The NGO skillset combined with the mining skill set brings innovation, and companies can contribute to the development process. Working with local governments (includ
ESG
6 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
> Take a holistic perspective: Rather than addressing gender equality as a singular issue, look at it within the greater com plex context. Get to know the women and their needs, but also the community. Particularly as it relates to supporting wom en-led businesses, look at the drivers of trade, the market, the environmental impact, and global issues that influence the market, and examine whether the proposed solutions are com mercially viable and thus more sustainable.
By Suzanne Belliveau
> Build gender-based violence prevention into workplace safety: Understand the local context, gender dynamics and power relations to assess the effect of the company’s policies, presence, shiftwork on women and girls in the community. Create safe spaces for dialogue about such violence and estab lish policies that reduce harassment in the workplace or on the mine site.
> Evaluate the impact: Sourcing responsibly does not guaran tee a positive contribution on women or women miners. Similarly, community agreements or other contributions may not have equitable benefits. Go a step further and measure the impact. CMJ This article is an edited version of a case study developed by the Devonshire Initiative (www.DevonshireInitiative.org). It was adapted with permission from Suzanne Belliveau, who wrote the case study and is the executive director of Captus Agency, which provides project support services to private, public and non-profit organizations working in sustainable community development and emergency assistance.
NGOs can be a bridge, facilitate dialogue, and create conditions for women to take advantage of the opportunities.
Participate in multi-stakeholder dialogue tables: Dialogue tables are a space to exchange information on the community’s needs and expectations and the company’s opportunities and requirements to collaborate on initiatives that benefit women and youth.
BROKK PEDESTAL BOOM Continuing the tradition of powerful solutions for confined spaces. Brokk Inc. | 1-360-794-1277 | info@brokkinc.com | www.brokk.com/us
> Small changes can have a big impact on gender equality: Gender equality does not necessarily require large investments in human or financial resources. With a greater awareness of gender equality among policymakers, practical actions can be taken to make policies or laws more equitable. Start with a gen der impact assessment and review policies with a gender lens to identify how women are directly or indirectly affected by policies, root causes of inequality and the changes that can make increase women’s access to opportunities and resources.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 7 ing community leaders or customary authorities) is also import ant because they can engage women, youth, and community members in planning. Support initiatives that are included in the local development plans that reflect community priorities.
ness, the innovation and collaboration. Mining Transformed is a unique, unprec edented opportunity to uncover new ideas and different points of view to ulti mately become more modern, agile and resilient.Mining Transformed tickets are lim ited and available BY INVITATION ONLY at the following link Partytheandadmissionnatedtransportationtheandcateredaccesstomo-codeets-272307467967.ca/e/Mining-Transformed-2022-tickwww.Eventbrite.PleaseusetheproMININGTECH2022atcheckoutcompleteyourpurchase.The$325ticketpriceincludesfulltothetechnologyexhibition,mealsfromalocalrestaurantfreehigh-speedWiFiwhileonsiteatNorcatUndergroundCentreandfreetoandfromourdesigpickupspots.Plus,you’llreceivetoanumberofsocialeventsnetworkingopportunitiesincludingofficialMiningTransformedAfteratDynamicEarth.
•
TRADE FAIR |
Innovative is not just in our name. Our engineers thrive on solving tough mining problems, specializing in:
• SEE
Norcat presents Mining Transformed
FAST NEWS
CMJ StartsINNOVATIONwithIWT Start the conversation today at iwtwireless.com • Reliable Voice & Data Communications • Real-time Personnel & Asset Tracking • Wireless Gas Monitoring • Production & Environmental Sensor Data • Equipment State-of-Health Data • Production & Maintenance Analytics
bauma equipment show set for October THE WORLD’S LEADING construction and mining equipment trade fair –bauma 2022 – will run in Munich, Ger many from Oct. 24 to 30, 2022. The new est in low-carbon, state-of-the-art machin ery and vehicles will be seen in 614,000 m2 of space at the Trade Fair Centre MesseAlreadyMunich.there are several bauma talks online at www.bauma.de covering topics such as tomorrow’s construction methods and materials, how mining can be sustainable, the way to zero emissions efficient and reliable, autonomous machines, and the digital construction site. The talks began in March and run to mid-September.One-dayand three-day tickets are priced from €29 to €80 and may be bought online. CMJ
8 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
MINING TRANSFORMED, the world’s first tech exhibition in an underground, operating mine is taking place next month in Sudbury, Ont. From Sept. 26-29, the Norcat Underground Centre will host over 40 trailblazing technology compa nies giving you the opportunity to see, touch and feel the future of global min ingAttendeesindustry. of Mining Transformed will find solutions to challenges currently fac ing mining companies in the face of the digital transformation of the mining industry, including ground breaking answers to the biggest questions sur rounding how to improve safety, effi ciency and Additionally,sustainability.attendees will join an exclusive community of 150+ fellow min ing industry movers and shakers looking for the next great innovation. Don’t miss this opportunity to connect. As the mining industry continues to transform, it requires new levels of open
Updates from across the mining ecosystem & TOUCH |
|
TSX: SEA NYSE:SA www.seabridgegold.com info@seabridgegold.com
• RAISE BORING
CREDIT: CEMENTATION AMERICAS
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 9
Cementation completes one of largest in North America CEMENTATION AMERICAS announced the completion of the full faced raise bored raise at Solvay Chemicals #5 shaft in Green River, Wyoming. Project require ments were to complete a 6.7-metre diam eter shaft, complete with concrete liner, from surface to a depth of 459 metres. Concrete liner thickness increased as the depth of the shaft increased, so the initial concept was to complete a pilot slash raise with a raise bore drill and then slash from the top down to achieve the differing di ameters to accommodate concrete liner thickness.Cementation instead proposed a full face raise bored shaft solution with variable diameters for each section. Cementation worked closely with Sandvik to design, engineer and manufacture a reaming head that could be diminished in diameter rather than manufacturing different diameters of outside wings. Final design allowed for five diameter options; maximum of 8.1 metres, down to 7.5 metres, in increments of approximately 15 cm. The 8.1-metre diameter reamer consisted of 12 individual secmetres of shaft and 7.5-metre diameter for the final 163.1 metres of shaft to surface.Reaming of the shaft was completed on April 24, 2022, and the Cementation shaft crews are now in the process of completing the shaft lining. This raise was one of the largest ever pulled in the America’s and was completed without incident. Its success was the result of a collaborative effort by all parties involved by providing the best technical solution for the Solvay Chemicals #5 shaft.For more information on Cementation, visit www.cementation.com. CMJ tions, 46 cutters and weighed 136,000 lb. Following completion of 20.7-metre deep collar excavation and lining, Cementation’s Strata 950 raise drill was set up over the collar and a 40-cm diameter pilot hole was drilled with Micon’s rotary vertical drilling system (RVDS). When the completed pilot hole was surveyed, the total deviation from vertical was found to be less than 10 cm over entire length of pilot hole. Based on the pilot hole survey, it was determined that the first leg of the shaft would be reamed to 9-metre diameter for 179.2 metres of shaft, followed by 7.6-metre diameter for the next 86.9
The reamingSolvayhead at the Sandvik workshop in Sudbury, Ont.
100% ownership of KSM, the world’s undevelopedlargestgold and copper project that will use green power.
Of course, that’s much easier said than done. The last couple of years have highlighted the huge potential of digital in the M&M space, with many companies increasing investments in digital transformation. While a step in the right direction, the sector has historically struggled to figure out how to deploy, use and integrate technologies end-to-end to achieve their full stra tegic
By Pradeep Karpur
anada’s growing focus on energy efficiency, the electrifica tion of the transportation sector and carbon pricing policies –all combined with the volatility in today’s energy and com modity markets – means mining and metals (M&M) organiza tions must make faster and more intelligent business decisions.
Data is everywhere, but there is a lack of centralization and true insight: An ongoing issue with the M&M industry is that companies are not good at seizing and developing founda tional aspects of connectivity. From data acquisition and gov ernance to using cloud-based platforms to their full extent (which is central to connectivity), M&M companies either don’t know where to start or don’t know how to execute. Until data is pieced together, it cannot be used to drive insights and decision-making.CDOscanhelp ensure data is linked with data governance leading practice so that advanced analytics and machine learn ing can be leveraged to not only translate data into meaningful insights but to also take visualization of the data to the next level. In the long run, the hope is that the data can enable the M&M industry to implement full digital twin monitoring, which enables a more holistic, integrated understanding of how mines operate.Noreal recognition in M&M of the CDO role today: One of the root causes behind the M&M productivity challenge is a “lack of ownership of the digital transformation agenda.” Having a CDO who can take control of digital transformation strategy is cru cial to focusing efforts on effectively building business capabil ities using new digital technologies, data and analytics that gen erate new competitive advantages and create value. Done right, Canadian mining and metals companies can overcome the data leadership gap to remain competitive in the volatile global environment. Data is power, and the exploitation of data could be an invaluable resource and a great advantage. As the prevalence of CDO roles continue to grow globally, it’s clear that organizations are seeing the value in hiring an effec tive CDO to better make use of their data. CMJ PRADEEP KARPUR partner, data and analytics at EY Canada, based in Toronto. For more information visit www.ey.com/en_ca/mining-metals .
UNEARTHING TRENDS
New research from EY finds that hiring a chief data officer (CDO) is one of the most effective steps companies can take to determine how data will be used and governed throughout the organization. The role of the CDO has become more prevalent in recent years, with 65% of data-intensive organizations con firming they had a CDO in 2021 – up 53% from 2012 . With the right data strategy in place, led by a CDO who understands the sector, Canada’s mining and metals companies will be better positioned to overcome the many structural and market obsta cles they face. There are three growing challenges in the mining and metals sector that a chief data officer can help solve, they are prioritiz ing ESG and decarbonization, centralising and putting data to good use and filling a leadership gap.
The good news is there’s no shortage of data. Now it’s a mat ter of capturing increasing amounts of data, translating it into actionable insights and ultimately empowering more intelli gent business decisions. This will require a more sharpened focus on data-driven capabilities. As data becomes the fuel for economic develop ment, Canada’s mining and metals companies must re-engineer their data strategies and look critically at their leadership teams to remain competitive.
diversification into greener products and improve reporting to boost safety, ESG transparency and sustainability while simul taneously reducing costs. M&M companies need CDOs to help make these transformational changes to drive long-term value for the organizations and the communities they serve.
C
Severalvalue.industries – such as banking, consumer goods and technology – are leading the way, integrating transformative data initiatives into their strategic approach. Meanwhile, Canadian mining and metal companies have only just started to fully appreciate the true value of data moving forward.
ESG and decarbonization is a priority: In a study EY teams conducted on the top 10 business risks and opportunities for mining and metals in 2022, “environmental and social issues” and “decarbonization” were listed as the number one and num ber two trends, respectively. The climate crisis and rising stake holder expectations are increasingly significant forces of change. AI and other data-driven digital technologies can enable
Canadian mining and metals companies lagging on data leadership
10 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
O
The agreement covers environmental assessment for the Eskay Creek revitalization project. The project involves reopen ing the historic Eskay Creek gold and silver mine that is located on Tahltan Territory, and which ceased operations in 2008. The project remains subject to reviews under both provincial and federal environmental and impact assessment regimes, with the agreement modifying the provincial process to allow for greater collaboration between the province and Tahltan cen tral government (TCG).
UNDRIP, consent, and the duty to consult The Declaration Act (which authorizes the agreement) was assented to on Nov. 28, 2019, making B.C. the first province to adopt the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into law. UNDRIP is a non-binding interna tional instrument that enunciates “the minimum standards for the survival, dignity, and well-being of the indigenous peoples of the Canadaworld.”was
one of four nations that voted against UNDRIP when it was first adopted by the United Nations in 2007. Among the Government of Canada’s concerns was a lack of clarity regarding an article requiring consultation to obtain “free, prior, and informed consent” (or FPIC) from Indigenous groups before making certain decisions that may affect their tradi tional territories. There was, and remains, a fear amongst some that FPIC provides a form of “veto” on government deci sion-making that would be inconsistent with Canadian law.
Tahltan Nation ink landmark consent-based agreement
The consent-based decision-making framework outlined in the agreement modifies the standard British Columbia environ mental assessment process in several important ways. Seeking consensus
n June 6, 2022, the Tahltan Nation and the Province of British Columbia entered into the first consent-based decision-mak ing agreement negotiated under B.C.’s Declaration on the Rights of Indigenous Peoples Act. The landmark agreement pro vides an important precedent for government, industry, and First Nations as federal and provincial governments adopt and imple ment legislation incorporating consent-based decision-making in the project assessment and approval process.
Pursuant to section 35 of Canada’s Constitution Act, 1982, gov ernment decision-makers owe Indigenous groups a duty to con sult prior to making decisions that have the potential to adversely affect a proven or credibly asserted Aboriginal or Treaty right. The duty to consult requires that governments engage Indigenous communities in good faith with a view to understanding their concerns and, where appropriate, accommodating them by tak ing steps to avoid irreparable harm or minimize adverse effects. Often, regulatory approval processes play an important role in government’s discharging the duty to consult, as those processes may satisfy government’s obligations through participatory rights in regulatory hearings. However, Canadian courts long held that the duty to consult and accommodate does not provide Indigenous groups with a formal decision-making or veto power. Accordingly, some policymakers and legal experts were con LAW
Unique TCG assessment
The agreement establishes a collaboration team composed of the TCG lands director and the B.C. environmental assessment office (EAO) project lead, as well as any individuals they desig nate, to seek consensus and promote collaboration between the province and TCG. This includes > determining the informational and assessment requirements necessary to support the parties’ decision-making (s. 7.19) > assessing the EAO’s draft environmental assessment report and draft environmental assessment certificate, including any conditions (s. 7.44).
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 11
The collaboration team, alongside the technical advisory committee, will also assist the parties in collaboratively review ing the proponent’s application (s. 7.27).
cerned that FPIC may alter Canadian law.
In 2016, a new federal government expressed full support for UNDRIP and adopted the act in 2021. Despite referencing FPIC in its provisions, the UNDRIP Act does not necessarily grant Indigenous communities and groups a veto over resource and infrastructure projects. The UNDRIP Act establishes the goal of obtaining consent following consultation – and the parameters for this consultation to be meaningful – rather than requiring consent before a project can proceed. In contrast, British Columbia’s Declaration Act provides a means by which obtaining an Indigenous FPIC can be made mandatory. Section 7 of the Declaration Act allows the province to negotiate agreements with Indigenous governing bodies that require their consent before a decision is made. As further specified in section 7 of B.C.’s Environmental Assessment Act, a reviewable project subject to such an agreement cannot pro ceed without the Indigenous nation’s consent. Accordingly, by operation of these laws, such agreements may grant a veto power to Indigenous communities and groups that they would not possess under Canadian constitutional law.
The consent-based decision-making agreement
B.C.,
By Maureen Killoran, QC, Martin Ignasiak, QC, Sander Duncanson, Sean Sutherland, and Ashley Light
In addition to the right to participate in the provincial environ mental assessment process alongside other interested parties, TCG will conduct an independent “Tahltan risk assessment” and prepare a “Tahltan risk assessment report” to inform its deci sion on whether to consent to the project (s. 7.1). This report will set out TCG’s conclusions with respect to whether the proj ect is likely to cause significant residual and/or cumulative effects to “Tahltan values” (s. 7.39). Tahltan values are identified
Implications
Judicial review
LAW, continued by TCG and may include archaeological sites, environmentally or culturally sensitive areas, wildlife, fish, plants, rivers, water bodies, or other features important to Tahltan (s. 1.1).
12 | CANADIAN MINING JOURNAL
The agreement specifically contemplates judicial review pro ceedings, with both TCG’s final decision and the province’s offi cial decision being open to judicial review (ss. 12.1, 12.4). This means that TCG’s power to veto the project is constrained by standard administrative law principles and the TCG decision cannot be arbitrary, unreasonable, or the process procedurally unfair. The agreement further requires that both the province and Tahltan participate in any judicial review proceedings related to the project.
On the other hand, a consent-based process may negatively impact timing to obtain a regulatory approval and may increase the likelihood that the project in question is rejected (based on the Indigenous group refusing to give consent), which could add a layer of uncertainty to some projects and deter private capital from investing in resource and infrastructure projects in Canada. The government of British Columbia hopes that later project permitting will proceed more quickly with the agree ment in place due to robust Tahltan involvement early in the process, but the impact of such agreements on project timelines and investor confidence remains to be seen. CMJ MAUREEN KILLORAN is is national co-chair, Osler, Hoskin & Harcourt LLP. MARTIN IGNASIAK is a partner, regulatory, environmental, indigenous and land, Osler, Hoskin & Harcourt LLP. SANDER DUNCANSONIS a partner, regulatory, environmental, indigenous and land, Osler, Hoskin & Harcourt LLP. SEAN SUTHERLAND is an associate, litigation, Osler, Hoskin & Harcourt LLPa. ASHLEY LIGHT is a law student, McGill University
Once the EAO’s effects assessment is complete, TCG will decide whether to provide FPIC to the project (s. 8.2), which is required for the project to proceed (s. 4.3). While the minister can request that TCG reconsider its decision (s. 9.1), such a request does not fetter TCG’s discretion in reaching its final decision (s. 9.5). In other words, it is within TCG’s authority to say “no” to the project, and for that decision to be final and binding subject to reconsideration, judicial review, or dispute resolution.
Final decision
The proponent’s role
www.canadianminingjournal.com
The agreement demonstrates how consent agreements can integrate FPIC into the project approval process. While the gov ernment of British Columbia has stated that this agreement is “not a veto power but is rather the opportunity for consent to be provided,” it certainly appears to be a veto power of sorts.
Where the agreement requires that the parties achieve consen sus, and they are unable to do so, the collaboration team will refer the issue to a separate body of TCG and government offi cials (the senior officials table) (ss. 6.2, 10.1). If the senior officials table is unable to resolve the issue in a timely manner, they can refer the issue to a dispute resolution facilitator (s. 10.3).
This agreement exemplifies a novel approach to project assess ment and decision-making that others will likely seek to replicate across Canada, particularly for projects on the traditional terri tory of a single Indigenous group. Agreements between govern ments and Indigenous communities or groups that enable shared environmental assessment – and in some cases even require consent – are likely to become increasingly common.
Tahltan decision-makers can say no, which is precisely what British Columbia’s environmental act allows under s. 7(b) and the Agreement confirms in sections 4.3 (“consent is required”) and 4.7 (which describes a “prohibition on the project proceed ing without the consent of the Tahltan central government”).
Dispute resolution
Consent agreements can result in several benefits for project proponents, governments, and Indigenous groups, including advancing reconciliation and promoting collaboration, as well as attracting investment that accords to the highest of environmen tal, social and governance (ESG) standards. Consent agreements may also provide increased certainty and stability in terms of the process required for ultimate project approval. A consent-based process is arguably more transparent than a bilateral consulta tion process between government and an Indigenous commu nity, in which the proponent may not have an active role.
The collaboration team and the parties are required to engage with the proponent in developing the process order (s. 7.21), reviewing the application (s. 7.31), and discussing the EAO’s draft environmental assessment report, the draft environmental assessment certificate, and the draft Tahltan risk assessment report (s. 7.45). However, the proponent is not part of the collab oration team or the dispute resolution process discussed above.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 13
Vibrating goldmaintenancescreenforrecovery
Identify problems Before starting a preventative mainte nance program, it is important to identify what – if anything – needs fixing. Start by listening to the vibrating screen for unusual noises. Grinding noises, for example, are unusual and are a concern. Also, look for obvious signs of wear, such as broken or excessively worn screen media, cracks, or other signs of damage. A service visit from the original equip ment manufacturer (OEM) can go a long way toward identifying problems and figuring out how to fix them. For exam ple, some manufacturers implement a comprehensive service program to iden tify problems and give customers the solutions they need. One step of that pro cess is often using a vibration analysis tool. Accelerometers collect vibration data, which service technicians then use to give recommendations for improving performance and preventing machine failure. The data can also point to prob lems difficult to catch with the naked eye that could lead to more costly repairs down the line, such as hairline cracks in the side plate or bearing complications. Stay proactive to save money
Take a daily look at cleanliness, proper greasing, loose parts and any changes in oscillating behaviour. CREDIT: HAVER & BOCKER NIAGARA
It is almost never a bad idea to focus more on proactive maintenance. Neglecting simple tasks such as greasing can cause premature and costly bearing failures, way in regard to quality, there is simply no way they can guarantee the parts they manufacture meet exact OEM specifica tions. A component that is slightly off might not seem like a big deal, but some only need to be less than a millimeter dif ferent from the carefully engineered OEM specifications to cause problems. The issue may not be immediately apparent but can lead to a chain reaction of problems that could result in far higher costs in repairs than the money saved buying an aftermarket part instead of OEM.
Plan, plan, plan Gold mining operations should set pre ventative maintenance as a priority. A preventative maintenance schedule will pay off in reduced downtime and fewer repair costs. Work with the vibrating screen manufacturer to not only opti mize inventory management but also to ensure the best screen media and equip ment for an operation. The result will be higher productivity, more uptime and better peace of mind. CMJ Wilm Schulz is a service manager at Haver & Boecker Niagara. which can lead to damage to other crucial parts of the vibrating screen. Here are a few things to look for.
> Daily: Take a daily look at cleanliness, proper greasing, loose parts, and any changes in oscillating behaviour. Keep the vibrating screen clean of sticky or caked-on material to prevent interfer ence with equipment operation.
> Monthly: Look at the motor mount, belt tension, and other wear components monthly.
SCREENS > By Wilm Schulz
Just like changing a car’s oil is necessary for smooth operation, preventative maintenance can help operators avoid unplanned breakages and downtime. As a key part of almost any gold process ing operation, vibrating screens deserve special attention. Watching and listening for problems and staying up to date with routine maintenance are just a few ways to keep things running smoothly. Here are some tips for proper vibrat ing screen maintenance.
> Annually: Annual examination of the rubber mounts or springs is crucial. Develop a preventative maintenance schedule to get in the habit and to maxi mize uptime. Part management Where a company buys its vibrating screen components is another important consideration. It is no secret that parts from the OEM often cost more than something fabricated at a local machine shop, but there is measurable value in sticking with OEM versions. While fabricators have come a long
> Weekly: Operators should inspect structural components and screen media installation weekly.
CREDIT: MAJOR Serge Raymond
CREDIT: MAJOR
Problems with downtime and produc tion quality can be frustrating. Aggre gates and mining operations must work quickly to resolve issues and min imize losses from downtime and repairs. Knowing how to diagnose problems and find the best fix can expedite the process. Here are some things to consider when it comes to common mineral processing challenges. Pegging, blinding, and carryover It is no secret that operations regularly face issues with near- or odd-size mate rial pegging screens or fine, sticky mate rial blinding openings. The depleted open area can ultimately result in carry over or contamination of the screened product, making this a costly problem.
SCREENS > By
Above: Being proactive in the beginning can help minimize the chance of problems.
equipment or improper installation. Proper tension is key for both the perfor mance and the longevity of the screen media. Check screen tension weekly to ensure it is correct. Improper tension leads to early breakage. It can be overwhelming to diagnose screening problems but partnering with an OEM or local dealer to find the right screening solution can help. After all, careful thought and selection can improve the bottom line and reduce headaches associated with downtime and lost profit. CMJ Serge Raymond is a product specialist at Major, a Haver & Boeker company.
Diagnosingscreenmediaproblems
Another thing to consider is whether the problems are caused by damaged
Knowing how to diagnose problems and find the best fix can expedite the process of fixing them.
14 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
The primary solution for these issues is often the choice of screen media. If using woven wire, consider a high-vibra tion screen media that bonds the wires with polyurethane strips. This setup allows wires to move independently, effectively dislodging pegged or blinded openings, such as the case of screening material with heavy clay deposits. The extra vibration amplifies overall stratifi cation. Too much wear and early breakage If the scrap pile is growing too quickly, it may be time to consider a new screen media configuration. Ideally, the screen media should complement the three main phases of screening: the feed end, the middle of the deck, and the discharge end. Many operations use mixed screen media for optimal results.
Maritime automatic identification system (AIS) data from Spire Global. Gordon Feller ver the past several decades, the infrastructure responsible for the movement of goods and people has become increasingly complex. More over, the interdependencies amongst and between critical assets, such as roads, railroads, ports, and airports have become much stronger. These factors, coupled with an increase in the inten sity and frequency of extreme weather events resulting from a changing climate, have put our infrastructure systems at a considerable risk of disruption. Adverse weather events reduce the overall effec tiveness and efficiency of all modes of transportation, which in turn leads to supply chain slowdowns and disruptions. In worst case scenarios, degradation in transportation operations can be accom panied by the loss of life, including those responsible for ensuring operations as well as those leveraging the service. Mitigating the impact of weather, as it relates to the movement of goods and the safety of people, requires an integrated, seamless approach based on improved historical, current, and predicted standing and prediction of extreme weather.Consider the situation facing all the various kinds of ports which miners depend upon, whether on the seacoast, on the riverbank, or on a lake. The logis tics systems on which miners depend are focused on optimizing port operations such that the right berth is open for the right ship at the right time. A ship that is delayed at port not only creates down stream supply chain disruption but increases costs while increasing pollu tion. A study published by Singapore’s Nanyang Technological University esti mated that emissions from ships at the port of Los Angeles doubled between July 2020 and 2021 and increased by 123% in Singapore.Historically, optimization has been dif ficult because the estimated time of arrival provided by ships is often off, up to 40 to 60 h (about 2.5 days). The EDS systems used to manage logistics can be a day late from when a ship arrives or departs.Spire’s Maritime provides more accu improvements, particularly the retrieval of data regarding the vertical structure of the atmosphere in data-sparse regions of the world. Such observations are essen tial in determining the initial state of the atmosphere, which can then be used to forecast the future state through tools such as numerical weather prediction (NWP)Spire’smodels.constellation of more than 100 satellites provides a proven platform for gathering Earth observations and has demonstrated that the time and cost of putting satellites into orbit can be signifi cantly reduced. The capacity to place sen sors in orbit in a fraction of the time and expense compared to conventional satel Pat. Pend.
How data from space can help miners’ supply chains on Earth
O
Magnetic Heater Panels For Chutes, Bins and Hoppers www.mag-heat.com 1-877-693-7693 1-304-259-5860 1-304-788-1400 Plugs into any outlet, extension cord or power source
TECHNOLOGY > By
Containers 2.6 -1.1 -49.7 -44.8 (-1.8% of voyage (-79.6% of voyage (-71.8% of voyage duration) duration) duration)
Dry bulk 4.7 -3.1 -58.4 -29.8 (-2.8% of voyage (-51.3% of voyage (-26.1% of voyage duration) duration) duration)
Tankers 3.9 -3.3 -69.1 -41.9 (-3.6% of voyage (-73.8% of voyage (-44.8% of voyage duration) duration) duration)
TECHNOLOGY
16 | CANADIAN MINING JOURNAL
Average Average error of voyage predicted ETA from ETA from the first Most frequent ETA duration
Average error of ETA reported in AIS
The Spire Maritime solution is improving vessel data efficiency across the open ocean to the mining and metals supply chains.The pressures of the pandemic and inflation have resulted in supply chains being strained across the globe. According to John Lusk, senior VP and maritime GM of Spire, his company’s maritime data solutions “help address the disruption by providing route visibility, analyzing fleet and vessel characteristics, and monitor ing commodity trends. “We are excited to work with MineHub and provide cutting edge data to their platform because both companies are aligned on the increasing need to create digital solutions that cre ate visibility and improve accuracy across the supply chain.”
www.canadianminingjournal.com
approaches to predicting a ship’s arrival through real-time satellite tracking data and over 11 years of historical data to help train machine learning models. This real-time vessel location along with port congestion data can also help operators make actionable decisions like slowing down the speed of the ship to save on both fuel costs and reduce car bon emissions near populated areas.
There is a clear link where actionable data insights can improve both supply chain performance and reduce harmful environmental impacts. The best way to solve your last-mile delivery problem is to start tracking and acting from the first mile.The Port Optimized Forecast delivers data that includes dew point tempera ture, relative humidity, minimum and maximum temperature, precipitation probability, surface wind speed and direction, surface visibility, cloud cover age percentage, ice, and thunderstorm probability. This can help port authori ties in managing vessel traffic during poor weather conditions such as fierce winds, swells, and currents. Pushing forward on the use of such data by mining companies, Minehub Technologies is taking an initiative. It provides an open enterprise-grade plat form for digital trade in the mining and metals supply chains and is using Spire’s satellite and terrestrial automatic identi fication system data, global vessel track ing data, and vessel characteristics to help power its commodities platform and optimize routing for bulk carrier vessels.
VesselBot’s routing timestamp after observed during Ship type (d) model (h) port departure (h) the voyage (h)
All ships 2.9 -1.5 -53 -43.6 (-2.2% of voyage (-76% of voyage (-62.5% of voyage duration) duration) duration)
MineHub’s digital platform is modern izing how the mining and metals supply chain operates. It provides greater trans parency and traceability via real-time vis ibility, automation, streamlined credit management, paperless transactions, and emissions tracking. Spire’s AIS data will enhance coverage and reduce latency of tracking bulk vessels on MineHub’s inte grated supply chain platform. The use of data and analytics allows for quicker deci sion making and shorter processes, which could save MineHub customers time and money. CMJ
glasses:Smart
REIMAGINEDSUPPORT
solution is smart glasses invented by Beumer to transform traditional support systems by providing the quality of in-person technical support, but entirely virtual and at a lower cost stemming from the mine’s investment and down time. Support as easy as 1, 2, 3 Smart glasses provide fast and easy sup port to find the fault and repair it effi ciently, ensuring a trouble-free opera tion. This smart technology gives you immediate access to Beumer’s world wide service network in three easy steps: Step 1: Put on your smart glasses. Step 2: Start the Beumer support app via voice command. Step 3: Share your service code and pin. mize operational security and minimize downtime.Agoodexample is Beumer’s support system which is composed of field ser vice and hotline support systems where mining operations receive assistance 24/7 from highly trained, multi-skilled engineers. Mining operations are often located in remote, desolate locations which make it difficult for them to receive timely on-site support for com plex issues. Beyond the impact of loca tion, it is important to recognize how dif ficult it is for operators to communicate complex issues while under the stress of an impending bottleneck. With down time having a major impact on your bot tom line, the challenge is to deliver the next generation of customer support for even the most remote sites. The latest
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 17 CONTINUED ON PAGE 18
TECHNOLOGY > By Beumer Corp. staff
Mining operations around the world face several bulk handling issues, such as transportation over demanding routes, energy-efficient solu tions, storage and homogenization of raw materials, and downtime. Ores, raw salt feeds, waste rock, and overburden pass through various steps from mine to mill. The support system should ensure smooth, economical, and environmen tally friendly processing at each stage of materials handling despite extensive transport routes. When your mine hits a standstill There is a need to look beyond handling solutions. You need to develop and imple ment a comprehensive and flexible sup port program designed to each custom er’s individual requirements to maxi
Expert service 24/7 from highly trained, multiskilled engineers for even the most remote operation.
CREDIT: BEUMER CORP.
Now, regardless of the geographic location, you have connected to one of Beumer’s global technical support experts via audio and video as they pro vide direct guidance to your operation’s staff in repairing or responding to the equipment issue. Not only do smart glasses allow you to solve the problem, but they also simplify the process of requesting a technician for a service need. Say goodbye to waiting anxiously for the service technician’s arrival or try ing to verbally communicate a dynamic issue. Beumer gives you direct one-onone support where, together, you and an engineer see the machines and data as you receive precise instructions for get ting your operation back online.
18 | CANADIAN MINING JOURNAL www.canadianminingjournal.com ENGINEERING INC Mine Hoist Systems 24/7 Local Technical Support www.hepeng.com sales@hepeng.com
“Language barriers or the lack of spe cialized knowledge are no longer relevant for troubleshooting,” said Christopher Kirsch, Beumer’s director of global inno vation. “Together with the user, we can also better validate why the fault occurred based on the recorded images.”
Proudly Designed & Manufactured in Canada
A key attribute of Beumer’s customer support system, for both customer care and smart glasses, is long-term optimiza tion strategies for clients. Beumer ana lyzes available data to assist plants in understanding why the issue occurred, how to avoid the issue in the future, and how to predict peak time optimization changes based on live data. Smart glasses technology comple ments Beumer’s technical support or ser vice contracts around the globe. Smart solutions: Beyond the buzz Too often, it seems “smart solution” is merely a buzzword to upsell a product. However, Beumer’s approach to reimag ining customer support to a “reduce downtime by looking over the shoulder” style has been implemented in what they call “acid tests.” The tests are long-term implementations with customers in a bevy of industries to determine efficacy and market response to the product. With a worldwide customer service net work in place to provide field service from highly skilled technicians and now the ability to remotely identify and pro vide immediate support, companies can count downtime in minutes instead of hours no matter where they are. CMJ Direct supportone-on-onetogetyouroperationbackonline.CREDIT:BEUMERCORP.
TECHNOLOGY
> ESG: Many sureties are now perform ing ESG (environmental, social, and gov ernance) reviews. The sureties now look
> Financial strength: Sureties will review financial statements for the min ing operation in question. They prefer a track record of profitability, strong cash flow, and a balance sheet with a strong equity and working capital position rela tive to the bond. For a pre-production or junior miner where the above items might not be present, they will look at future projections, roadmap to profitability, pos itive cash flow, and positive earnings before interest, taxes, depreciation, and amortization (EBITDA).
Surety bonds are used in a variety of industries outside the mining space.
As you can imagine, the demand nature of reclamation bonds makes them higher risk, so when a mining company is look ing to secure those, the threshold will be higher than securing a traditional “default bond” of similar value. Different sureties will have appeal to different types of miners. Some only like larger highly rated established compa nies, some prefer precious metals, and some will prefer junior miners. However, overall, surety companies will look at a few items when determining whether they will support a reclamation bond.
Abond in the simplest terms is a agreement.”“three-partyInthecase of a reclamation bond, a surety company is guaran teeing to the government (also known as the obligee) that a miner (also known as the principal) will perform the terms and conditions of the reclama tion plan. This can include remediating and reclaiming the land as well as ongo ing monitoring of the site. Jurisdictions across Canada require these bonds to ensure that the taxpayer is not left with the costs (both economic and environ mental) of dealing with an abandoned mine site. To secure these obligations, government owners will request secu rity from the mining company. This can sometimes be in the form of a bond but can also be requested in the form of cash or a letter of credit from a bank.
> Reclamation plan/Feasibility study: Sureties will review the reclamation plan to determine what activities are required to reclaim the land as well as the pro jected and approved mine life. In conjunc tion, they will review the feasibility study to determine the mine viability and proven and probable resources available. Ensuring that the plans are prepared by a reputable consultant with experience in the industry will help increase the com fort with the surety.
> By Andrew Cartwright work with a default mechanism versus demand is important as we discuss what is required to secure reclamation bonds.
STOCKYINGYAIPUMI/ADOBECREDIT:
Traditionally, these bonds are default instruments, meaning that if the obligee believes the principal to be in default under the bond (or underlying contract), the obligee must prove a default has occurred. The principal then has an opportunity to contest that default before the surety makes their determination. A default under the underlying contract (and therefore bond) must be proven for a claim to be Reclamationvalid.bonds are different instruments as claims can be made against these bonds without the burden of proof requirement up front. The indus try refers to these bond types as “demand bonds” as they are more like a letter of credit. If the obligee places a claim under the bond, it acts as a demand upon the surety for repayment under the bond which must be met in a short period of time (usually under one week). The difference between bonds that
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 19 RECLAMATION
Reclamation bonds have been around in Canada for many years. They are used in a variety of industries including mining, oil and gas, and construction. For the purposes of this article, we are going to discuss reclamation bonding in the Canadian mining industry. We will talk about what reclamation bonds are, how they work, why they make sense for a mining company, and how best to secure them.
Reclamation bonds: How to secure them and why they make sense
artin belt cleaners, with high-performance urethane blades, reduce a multitude of carryback issues, making your conveyor systems cleaner, safer and more productive. Eliminating waste prevents possible injuries and excessive downtime for maintenance and cleanup. Because when the belt stops, profitability goes down the chute.
www.canadianminingjournal.com
The goal with any surety arrangement for a miner is to be able to free up capital or lending capacity by replacing cash or a letter of credit with a bond and to do so while providing the least amount of col lateral at the lowest rate. In the reclama tion space, the rates can vary widely depending on the financial health of the mining business, underlying assets, remaining mine life, and collateral pro vided. Generally, these can range any where between 1% to 3% of the value of the bond required, annually. These rates can be re-negotiated with the surety if there are meaningful improvements in the operation. Furthermore, if collateral is provided to the surety to secure a rec lamation bond, the surety will often pro vide a lower rate against the portion of the bond that is collateralized and a higher rate on the uncollateralized por tion which results in a blended rating.
In Canada, the number of surety bro kers involved in the reclamation bond space is small, many have surety experi ence but not specific expertise related to reclamation. As a result, to ensure you are navigating the process of securing a bond carefully and securing the most favour able terms, it is important to pick a surety broker and then ultimately a surety com pany that has this expertise. CMJ Andrew Cartwright is the vice-president of surety for FCA Insurance.
If there are weaknesses in the above underwriting areas this does not mean a miner will be unable to secure a bond.
Overall In looking at these questions, the surety is looking to confirm the sophistication, financial viability, and the value of the underlying mine as all these protect the surety from claims on the bonds or allow, in an insolvency situation, for the asset to be picked up by another producer with out a claim on the bond.
RECLAMATION at the environmental practices, social conscience track record, and the local political environment. This is especially important for international mine loca tions. They are looking for a miner that has plans and is responsible to their local environment, strong track record of treating their employees fairly and with high standards of safety, jurisdictions where the mine operation is located to ensure there is a stable government with a clear legal framework, and transparent approach to handling mining operations.
Instead, it may mean that the surety will look for ways to augment their overall security. For example, pre-production or junior miners will, in many cases, be required to post some form of collateral in support of the surety. This could be in the form of cash, or it could be in the form of a letter of credit from a bank.
> Commodity: The surety will also examine the commodity in question. They will also look at the mine’s AISC (all-in sustaining cost) and will compare that to general industry benchmarks. The lower the AISC, the more likely a mine is to be profitable despite fluctuations in the underlying price of the asset. This provides the surety comfort with the lon gevity of the operation.
Over time, as the track record of that miner improves and the financials con tinue to build, the level of collateral can be negotiated downwards.
For factory-direct service, training and sales call 1-309-852-2384, or to access our professional development options visit martin-eng.com and click the Learning Center tab.
Our belt cleaners work with all belt sizes and speeds, and in the most challenging environments. And our techs and engineers can provide expert site-specific advice on these products and all of your bulk material handling questions. Keep it rolling with Martin.
CMYCYMYCMYMCK CMJ8-22_insertV1.pdf 1 8/9/22 1:44 PM
My goal is to illustrate that Canada’s mining history can be linked to stories. The interactive maps were built with search ability by time built into it to portray the sequence of events. If you pick a year like 1880, notice the lack of mines in Saskatchewan. The CPR was finished on Nov. 7, 1885, and then by 1920, there were mines in Saskatchewan. That is an easy search. This map can be used to highlight so many other stories related to the development of Canada. This tool can be used by kids, such as in classrooms, through to adults.
Mining should be a solid brand as those in the industry know; a brand that puts a spotlight on society’s needs for us. Click on any dot, and there is a “Use-Commodity” box that can be filled in. Specific deposits in Canada can be related back to abutments for railway bridges and culverts, aggregate, agricul tural limestone, stoneware, brick making, carvings, cement making, ceramics, dental porcelain, drywall, electricity, fertil izer, fireplaces, golf course sand, gravestones, jewelry, monu ments, paving stones, road construction, steel making, and so on. Similarly, search for a town name and see what is in the vicinity of where someone lives. Check out the different map options as imagery is an option too. The public can use satellite imagery to see for themselves what happens to historical mine sites after closure.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 21 THE MINING INDUSTRY > By Donna Beneteau
Historical Canadian mines data hub and visualization centre: https://www.cim.org/the-hub/
BENETEAUDONNACREDIT:
The article “Rebranding mining: Does mining need a rebrand?” by Mike Commito and Steve Gravel (published in August 2022 issue of CMJ, pages 11-12) was excellent. But rather than rebranding mining, I feel we should help reinforce the existing brand by highlighting the incalculable uses of the planet’s rock resources using the internet to communicate. “If it’s not grown, it’s mined” is a necessarily broad description of mining, one that highlights the universal need for excavation of rock. My goal of building the historical Canadian mines data hub and visual ization centre is to document the story of Canadian mining, not just of the mining of the rock, but the incredible things that the rocks and minerals have been used for. This tool is in the pub lic domain, so anyone with interest can interact with maps and stories. By acknowledging how we, as a society, have benefited from the resources of the Canadian landmass in an easily acces sible and interactive way, we can better educate the public on the importance of our work.
Mining in Canada needs reinforcement not rebranding
The additional layer “Mining Makes” will be a layer where we can tie the Canadian mining industry to Canadian mining inven tions. My son already wrote the story of Wolverine since comics are his interest, so he easily saw the connection. The famously Canadian superhero Wolverine worked in a mine as a teenager, and the metal infused to his bones would have been mined. This example shows the breadth of Canadian mining, that its signifi cance is felt even in the Marvel universe. When I worked at the Holloway mine, I had a miner’s lunch box that was invented by Leo May. What are other inventions from small to large that can be directly attributed to a location on this map in Canada? I will add those like the layer for the mining and geology exhibits. For every dot on this map, we can add pdf write-ups about the mines or inventions. How did mining make an impact on you? Can you even just fill in the missing information for a mine you worked at? So many people are doing genealogy. Do you know of someone that has written down their story of working in a mine? I have had the honour of working with Toby Cote of Saskatoon, who documented the discussions with her father, Harvey Laberge, about the start-up of the Patience Lake mine. Mines were built by people, and that too is an important element of the story. Please help to tell the story of our mines on this platform so that the importance of this indus try to the Canadian economy is so obvious that mining can evolve to having a positive connotation. With over 14,000 entries so far, I cannot do it alone. Canada has the second larg est land-area in the world, and we have explored widely. “If it’s not grown, it’s mined” can be reinforced through collaborative storytelling to raise the reputation of the mining industry. CMJ Donna Beneteau, PEng, MASc is an assistant professor at the Department of Civil, Geological, and Environmental Engineering, University of Saskatchewan. donna.beneteau@usask.ca
try to get more lithium out of the ground. Several auto manufacturers, including Kia, General Motors, Ford, and Nissan have suggested that wait times for new e-vehicles are up to three years (Source: Financial Post). This opportunity is ripe for the taking. Let us also not forget about the rise of other electric mobility options in major cities, such as trains, buses, e-scooters, and e-bikes. In northwestern Ontario, we are well positioned to take on this work. We have a deep-rooted history as a mining centre for Canada, providing labour, equipment, and resources for numerous mining proj ects for generations. We are a major sup plier to the gold industry, as well, with close to 1.6 million oz. of gold forecasted to come out of Thunder Bay by 2023 (Source: City of Thunder Bay). Of course, at a small level, we also mine lithium — the new gold. Unionized mechanical contractors in Thunder Bay are excited to leverage our talented and highly trained skilled trades and deep knowledge and expertise in mining to extract the world’s new gold. The process to mine lithium is no differ ent than the other metals allowing trans ferable resources from our current work force. We have the technology, infrastruc ture, skilled labour force, environmental and safety best practices, and training facilities run by our partners at the UA Local 628. We are shovel ready. Which begs the question, what is holding the industry back from going “all out” on lith ium deposits? Why has the pick-up in Canadian lithium mining been slower than in other parts of the world? Some aggravating factors impeding new mining ventures include slow mov ing regulatory bodies, investment appe tite, economic climate, and, to a lesser extent, skilled labour shortages. Environmental hurdles, navigating bureaucracy, and access to remote sites has also made it challenging. Skilled lithium market and perhaps even far sur pass our work in the oil and gas industry. While most in the mining industry know, it is not a small number to quote that there are 2.9 million tonnes of lithium resources (M+I, inclusive of reserves) in Canada (Source: Natural Resources Canada). The question of what is being done about it is not as clear and perhaps Canada is missing out on an opportunity to become a world leader in this space.
THE NEW
BATTERY METALS > By
Charging up lithium mines in Canada Eric Niemi
22 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
It is fair to say the strong demand for lithium suggests new projects will be very lucrative. Given today’s climate change initiatives and the quickening progression to renewable sources of energy, explora tion activity and the resultant potential mining is a growth industry. Now, as fuel prices for the end consumer are reaching record highs, consumers and businesses continue electrification at a rapid rate. This is putting a never-before-seen increased pressure on the mining indus GOLD
Lithium ion battery stands out among others. CREDIT: DESTINA The world is starting to see the begin ning of a transformational phase in mining especially as it comes to lith ium, a new hot commodity. While lith ium has been used in some ceramics and glass, lubricating greases, continuous casting fluxes among others, its demand is growing with the rise of electric cars that use lithium-ion batteries. In fact, electric vehicles, are now responsible for 71% of global demand for lithium, accord ing to Natural Resources Canada. Before the battery rush over the past decade, lithium carbonate prices have been noto riously volatile. However, the winds are beginning to change in response to new demand from the green technology and automotive sectors. More and more, increased exploration into lithium mining is fuelling potential prospects, while new undertakings add momentum to the green future. Canada has an opportunity to lead the world’s
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 23 TSX: BTO | NYSE AMERICAN: BTG | NSX: B2G | B2GOLD.COM ACQUIRE | DISCOVER | FINANCE | BUILD | OPERATE
labour shortages are a factor, and promo tion and recruitment of trades and heavy industry is required to fill the impending void. What makes the unionized pipe trades in the region unique is that we are ready to recruit and train more bodies as soon as mining projects reach critical mass and break ground. We also work closely with Indigenous communities and businesses, who make up an important part of our work force and contribute to the success of these projects. According to the Mining Association of Canada (MAC), this country mines in the most socially, economically, and environ mentally responsible way, making it one of the safest places on earth to mine.
As a responsible mining company, B2Gold’s commitment to Health & Safety and Environment, Social & Governance continues to result in exceptional outcomes at the Company’s operations around the world.
MAC’s internationally recognized Towards Sustainable Mining initiative shows how trusted and recognized Canadian mines are. Our standards and practices are so sought after that they are used around the world.Most mining communities experience a finite life however, long after the mines close — a strong community remains — ready and waiting for the next opportu nity. This alone should encourage the government to feed this local economy with opportunity. Just from lithium alone, dozens of trades will be needed.
Starting with construction, building trades, technical personnel (engineers and technologists), project managers, QA/QC personnel, and more. Once opera tional, miners, maintenance personnel, technical staff, mechanics, heavy equip ment operators, as well as spin-off sup port industry staff will be needed.
A Low-Cost International Senior Gold Producer
Founded in 2007, today, B2Gold has three operating gold mines and numerous development and exploration projects in various countries including Mali, the Philippines, Namibia, Colombia, Finland and Uzbekistan.
Across the country, the industry employs near 400,000 workers from min eral extraction through to manufacturing. It indirectly employs another 315,000 peo ple who support these mining communi ties (Source: MAC). According to MAC, mineral exports made up 21% of Canada’ total exports with the sector feeding around $107 billion (or 5%) to Canada’s nominal GDP. That is no small feat. Northwestern Ontario is just one example of a story playing out in many mining communities across Canada that are ready to explore and develop new lithium ventures. All with easy access to the knowledge needed and a skilled labour force equipped with the technical expertise.Itremains clear that to meet worldwide demand, it is a lot more than just about having the resources — it is about work ing through the barriers to production and allowing these projects to ramp up quickly. Undoubtedly, Canada, especially northwestern Ontario, has the resources, training centres, technology, skilled work force, and expertise to seize this enor mous economic opportunity.
CMJ Eric Niemi P.Eng., MBA is president, Mechanical Contractors’ Association of Thunder Bay; industrial manager, Clow Darling Mechanical Contractors.
24 | CANADIAN MINING JOURNAL www.canadianminingjournal.com
GOLD MINER
Seabridge Gold’s KSM story
KSM is the world’s largest undevel oped gold project by resources: 88 mil lion oz. measured and indicated (M+I) plus 66 million oz. inferred in addition to 19.4 billion lb. of copper resources in the M+I categories. More than half of these resources are categorized as reserves. Seabridge released the updated pre
T
his year, Seabridge Gold is plan ning to spend approximately $150 million to ramp up field activities and to undertake early-stage con struction activities to achieve the “substantially started” status for the KSM (Kerr-Sulphurets-Mitchell) proj ect by July 29, 2026. Approximately 75% to 85% of the funding will go to local and Indigenous contractors. This investment will make Seabridge one of the largest private spenders in B.C. this year. To date, the company has spent more than $480 million on the KSM gold-cop per-silver-molybdenum project on explo ration, engineering, and environmental work to move the project forward. The project underwent one of the most com prehensive environmental assessments in Canada and British Columbia. After a seven-year review process (2008-14), the project received approvals under the B.C. Environmental Assessment Act, the Canadian Environmental Assessment Act (1992), and the Nisga’a final agreement.
Interview with Brent Murphy, senior vice-president of environmental affairs
CONTINUED 26 feasibility study for the KSM project in June 2022. It shows a more sustainable and profitable mining operation and estimates the annual gold output at the KSM project to rise 90% to more than 1.0 million oz. in each of 33 years. The project could play a major role in providing the critical metals necessary to fuel the transition to a green econ omy and provide a continuous and stable source of responsible copper to help Can ada meet its 2050 target of net-zero car bon emissions. Location and climate KSM is in the rugged coastal mountains of northwestern BC with elevations rang ing from 520 m to over 2,300 m. Located about 950 km northwest of Vancou ver, 65 km north-northwest of Stewart, and 21 km south-southeast of the Eskay Creek mine (see page 37 in August issue of CMJ), this area has been the site of mining and exploration for decades. The climate is typical of the northern coastal rainforest with sub-arctic conditions at highDuringelevations.PDAC 2022 in Toronto, I caught up with Brent Murphy, senior vice-pres ident of the environmental affairs at Seabridge Gold and discussed KSM proj ect with him.
CREDIT:
> In 2020, Seabridge Gold acquired East Mitchell (25.9at1.7ProjectadjacentdeposittotheKSMwhichaddedmillionM+Itonnes0.48g/tgoldmillionoz.).
> Signed Nisgagreementsbenefitswitha’a(2014)andTahltan(2019)Nations,anenvironmentalagreementwiththeGitanyowWilpsrepresentedbytheGitanyowhereditarychiefs’officeandreceivedletterofsupportforenvironmentalassessmentapprovalfromtheGitxsanhereditarychiefs.
> Measured and indicated (M+I) resources total: 3.7 million tonnes averaging 0.55 g/t gold (88.3 million oz.), 0.16% copper (19.4 billion lb.), 2.4 g/t silver (13.6 million oz.), and 66 millionmolybdenumppm(742Ib.).
BM: I have been with Seabridge Gold since March 2008. I was brought in by Rudi Fronk, the chairman and CEO and Bill Threlkeld, our senior VP of exploration, Camp building at the early stage construction at KSM project. SEABRIDGE
CMJ: Let us start the conversation with you; how long have been with Seabridge Gold? How did you join Seabridge, when, and why did you really think that it is a much better place to work and why focus on the environment?
> Estimated spending over project life (based on a 2018 Study): $54.6 billion in capital and operating costs and $47.9 billion injected directly into BC economy.
Quick facts about the KSM Project:
GOLD
ON PAGE
> Estimated GDP contribution over project life: $30.6 billion for British Columbia; $50.7 billion nationally (2018 Study).
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 25 > By Tamer Elbokl, PhD
> Since 2011, Seabridge Gold has donated over $1.3 million to support community events and initiatives and invested over $1 million to support northwestworkforcestronginitiativeseducationtobuildaeducatedinBC.
BM: Depends who you are talking to. A copper company can focus on the high er-grade copper zones, while a gold company can focus on KSM’s gold rich deposits. We believe the flexibility will help Seabridge attract a partner to respon sibly build and operate a mine at KSM. CMJ: How is Seabridge going to work to integrate East Mitchell into KSM?
CMJ: Please give us a quick idea on Seabridge Gold and the history of the KSM project in terms of location, acquisition, why specifically this project? What are the current reserves and resources?
BM: Adding East Mitchell substantially enhances KSM’s open pit production pro file which benefits prospective partners who are more comfortable with this min ingWemethod.arein discussions with several large mining companies: some are cop per focused, and some are gold focused. Our work has shown that the best eco nomics are derived if you initially focus on the open pit gold opportunities which produce less copper.
CMJ: What are the benefits of the project?
CMJ: When you acquired East Mitchell, did you have that information already about its M+I and inferred resources?
Jobs and GDP contribution? BM: The KSM project is a major responsi ble investment project for British Colum bia and will also contribute significantly to the Canadian economy. The estimated GDP contribution over project life (EA approved mine life of 52 years) is $30.6 billion for BC and $50.7 billion for Can ada. Over the life of the project, the total fiscal revenues for the BC and the federal governments are estimated at $7.6 and $7.8 billion, respectively. The KSM proj ect will also generate multi-generation employment opportunities, as the proj ect is expected to create 1,550+ direct and 4,500+ indirect jobs during the five-year construction period and another 1,400+ direct and 4,000+ indirect jobs when in production.
CMJ: Did you work with the Alaskans during the environmental assessment process?
BM: Yes, we did that deliberately even though there was no legal requirement for us to do that at the time, because we knew it was the right thing to do. As Alaska is located downstream from KSM, we engaged vigorously and extensively with Alaskan regulators and stakehold ers throughout the environmental assess ment review and permitting phases of the KSM project to ensure their concerns were heard and addressed. Because of the input we received from the Alaskans and the various local First Nations, we made sig nificant design changes to our project that added over $330 million in capital esti mates to address concerns. The KSM project was approved on the basis that there would be no significant downstream impact to the receiving envi ronment. We put forward a whole series of mitigation water treatment processes to minimize the impact of the project.
In 2008 we initiated the environmen tal assessment process. We immediately started consultation and engagement with the various Indigenous groups in northwestern BC, including the Tahltan and Nisga’a Nations, the Gitxsan, Gitan yow and Tsetsaut Skii km Lax Ha which ultimately led to a seven-year environ mental review process. In 2014, we were successful in receiving a joint harmo GOLD MINER nized BC and federal environmental assessment approvals. During the environmental assessment (2008-14), KSM continued exploration and identified the Iron Cap deposit that is located to the north of Mitchell, as well as the down-dip extension of the Kerr deposit. Both Iron Cap and Kerr have much higher copper grades than found at Mitchell and Sulphurets deposits. In 2021, we acquired the East Mitchell (formerly Snowfield) deposit from Pre tium Resources which added 25.9 million oz. of M+I gold resources and another 9.0 million oz. in inferred. We now have five separate depos its at KSM: Kerr, Sulphurets, Mitchell, East Mitchell, and Iron Cap. All of them together are 100% owned by KSM Min ing ULC, a wholly owned subsidiary of Seabridge Gold Inc.
BM: Seabridge Gold is the owner of KSM project, the world’s largest undeveloped gold project by reserves and resources, which is in northwest British Columbia. Seabridge Gold acquired the prop erty in 2000 from Placer Dome, who had conducted approximately $25 million in expenditures yielding a defined resource of 3.4 million oz. of gold and 2.7 billion lb. of copper. In 2004 we optioned the project to Noranda who focused on exploring for copper. In a limited drill program in 2005 they intersected predominantly gold min eralization at the Mitchell zone. Since they had little interest in gold, as well as going through a merger with Falconbridge at the time, we were able to buy Noranda out of their option thereby restoring 100% of the project back to Seabridge. Our first exploration program was in 2006 resulting in an initial resource esti mate at Mitchell of 13 million oz. of gold. Over the next several years we contin ued exploration activities, yielding excep tional annual growth in gold and copper resources.Aspart of Seabridge’s strategy to de-risk its projects for eventual sale of joint ventures, we advanced the engi neering and permitting activities at KSM.
26 | CANADIAN MINING JOURNAL
www.canadianminingjournal.com to lead the team for the environmental assessment of the KSM project. I had done work for Rudi and Bill in the Northwest Territories assisting them in completing their initial due diligence on Courageous Lake in 2002, which is another property owned by Seabridge Gold. Prior to that, I was working for a consulting firm, and I kept in touch with Rudi and Bill. I liked their approach, and I was very impressed with them. When I was hired on, Rudi said, “come on and have some fun for six months.” Here I am 14 years later.
BM: Yes, we had conducted joint studies back in 2010 and 2011 with Pretium look ing at how East Mitchell could fit into the greater KSM. In 2020 we finally were able to reach terms with Pretium Resources, and we acquired the deposit in Decem ber 2020 for US$100 million in cash. CMJ: Looks like it made perfect sense? BM: Certainly! Not only did it add to our overall resource base, but more impor tantly, it will allow us to redesign KSM into a more profitable opportunity.
CMJ: So, would you call it a gold mine or a copper mine?
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 27
CMJ: Seabridge is pursuing three valueenhancing strategies: Can you please explain how those strategies apply in case of the KSM project?
BM: For the first strategy, a fantas tic example is acquiring East Mitch ell in 2021. We paid $100 million for the deposit, and we received approximately 35 million oz. in total gold resources. At approximately $3 per ounce, the acquisi tion was certainly accretive.
CREDIT: SEABRIDGE GOLD
The example for the second strategy is the work we have done at KSM since 2006 when we got the property back from Noranda and expanded the resources to the existing resource base. Additionally, we have taken the project through the environmental assessment review pro BM: The mill we are using is a carbon flo tation mill that will create a concentrate containing gold, copper and silver, and then we will be treating a pyrite concen trate which will go through a cyanide cir cuit to extract the gold and silver that is tied up in the pyrite and not recovered in the flotation concentrate
Brent Murphy Senior vice-president of environmental affairs, Seabridge Gold
Construction of Glacier Creek fish habitat offset program. CREDIT: SEABRIDGE GOLD Seabridge is pursuing three strategiesvalue-enhancing : 1 Searching for gold projects in North America which would be accretive in terms of gold resources (ounces per share). 2 Funding exploration and engineering work to expand resources and upgrade them to reserves. 3 Limiting risk by selling or partnering the projects before they reach the production stage.
Installation of Bell Irving river bridge.
CMJ: Is the feasibility study complete? Is it being updated?
Currently, I am the executive respon sible for managing the work associated with the existing design of the TMF. After we received the assessment approvals for the existing location which consists of a U-shaped valley, we also commissioned a leading geoscience and engineering consulting firm to under take a best available tailings technology (BATT) review to ensure the proposed TMF will be utilizing the safest and most reliable technology. This study concluded that our selected and approved approach with wet tailings deposition was the best option. KSM’s designed tailings facility has centerline constructed dams located at either end of the valley with low per meability cores; seepage collection dams are downstream of tailing dams. In January 2015, more than a year before it became a legally mandated requirement, we also announced the creation of an independent geotechni cal review board, and we committed to full public transparency. Our reports are publicly shared. The board has over 350 years of experience among its mem bers of senior world class engineers who worked on similar structures worldwide and they meet annually. To date, we have completed seven meetings with our eighth meeting scheduled for October 2022. In April 2016, the IGRB concluded, “The layout and type of structures, the tailings management approach, runoff and seepage control measures, and the closure plans are appropriate for the site conditions and intended purposes.”
BM: We are in the process of updating the 2016 KSM prefeasibility study (com pleted in June 2022) to incorporate East Mitchell in the original KSM project. Our business strategy is that we will not bring the project into full operation, as we want that to be done by a major responsible mining company. We will leave the completion of the final feasi bility study to our potential joint ven ture partner. However, we will have an updated preliminary feasibility study which shows a considerably more sus tainable and profitable mining operation and estimates the annual gold output at the KSM project to rise 90% to more than 1.0 million oz. for 33 years.
BM: We have proposed a tailings man agement facility (TMF) based on indus try-leading best practices and best available technologies. We worked with the local First Nations to select a tailing storage facility and evaluated over 15 dif ferent options. During the environmen tal assessment, the design of the tailings management facility was reviewed inde
CMJ: What kind of mill are you planning?
pendently by First Nations and by the fed eral government and they decided that it was an acceptable and safe design.
CMJ: How will the tailings management facility be engineered to avoid potential spills?
CONTINUED ON PAGE 28
Note: Seabridge Gold announced the results of a preliminary economic assessment (PEA) study for a potential copper-rich underground mine at its 100% owned KSM project. The 2022 PEA outlines a stand-alone mine plan that has been undertaken to evaluate a potential future expansion of the KSM mine to the copper-rich Iron Cap and Kerr deposits after the 2022 PFS mine plan has been completed.
> Green hydro power will replace signif icant diesel generation over the five-year construction phase, with a corresponding reduction in greenhouse gas emissions.
CMJ: Can you give us some information on the financing deal with Sprott Resource Streaming, Royalty Corp., and Ontario Teachers’ Pension Plan for a KSM silver royalty? Is that the kind of partnership you were looking for as part of your third strategy for KSM?
BM: This agreement is a significant vali dation of the KSM project. It is an invest ment by Sprott Royalty Corp. and the Ontario Teachers’ Pension Plan. The lat ter does not make investment decisions lightly. That is why we are very pleased. They gave Seabridge Gold $225 million for KSM in exchange for a note that will convert into a 60% silver royalty at com mercial production. This money will be used to continue our early-stage construction activities, includ ing site access roads, camps, bridges, and fish habitat, which will allow us to de-risk the project. It makes us a more attractive partner for potential joint venture compa nies because we are making a significant investment that is advancing the project. Our project staff went up to approxi mately 60 people from 20 since August 2021. We are spending a budget of $150 million (each) this year and next year. Since we have already invested more than $480 million in the project, we have been a significant investor company in BC and in Canada for the last 14 years. CMJ
GOLD MINER matters. The agreement is estimated to provide significant dollars in payments, employment, and contracting opportuni ties to the Nisga’a Nation and its members over the life of the KSM project. Likewise in June 2014, Seabridge and the Gitanyow signed the Gitanyow Huwilp sustainability agreement within which Seabridge agreed to provide fund ing for wildlife, fish, and water quality monitoring to address concerns raised by the Gitanyow Huwilp, as well as a joint committee to maintain co-operation and communications for the life of the KSM project.In2019, we signed an impact bene fits agreement (IBA) with the Tahltan after several years of negotiations. This agreement received a 76% approval rat ing following a community vote. We have been transparent with all the Indigenous groups, throughout the environmen tal assessment process; we changed our design and added capital as I mentioned before: it was one of the most compre hensive environmental assessment pro cesses in Canada and working with the Indigenous groups remains one of core priorities as we advance KSM CMJ: And you said you listened to them, or you consulted them for the tailings?
CMJ: In March 2022, Seabridge Gold entered into agreement with BC Hydro to supply green, low-cost construction power to KSM project. How does connecting to BC Hydro’s Northwest Transmission Line (NTL) earlier than previously planned benefit the project, including the ESG and economics?
BM: Yes, they were part of the process in selecting our tailing site. We initially selected 15 sites and cost was the least of the evaluation process in selecting the final tailings management location. Land disturbance, impact on the receiving environment, impact on any traditional First Nations land were the main con cerns that we worked with Indigenous Peoples to resolve.
BM: First, we would like to congratulate the Tahltan Nation and the government of BC on the agreement. The Tahltan Nation is one of our Indigenous partners of the KSM project and we have taken our responsibilities to be transparent, engage and collaborate with the local Indigenous communities very seriously. We are one of the trendsetters in that approach. In June 2014, Seabridge and the Nisg a’a Nation entered into a comprehensive envi ronmental and socioeconomic impacts agreement for the project that established a framework for Seabridge and Nisg a’a to work together on ongoing development
CANADIAN MINING JOURNAL
Finally, our goal is to sell or joint ven ture our projects. At KSM we had various deals offered to us in the past. Our view is we only get to do this once, and we will be patient to ensure we do the right deal with the right partner able to finance, build and operate the project responsibly. When the gold price was lower (19992002), Seabridge Gold acquired nine North American projects with substan tial gold resources, including Courageous Lake and KSM. During the subsequent 20 years, we have sold some of these that we did not see the opportunity to drive fur ther value. To date we have received over $75 million in proceeds from selling noncoreThoseassets.sales basically funded most of our early work for KSM, and because of that, we minimized dilution to our share holders.
> The transmission line will eventually be required for operations and moving this infrastructure forward in the project schedule de-risks construction.
BM: The agreement with BC Hydro is sig nificant to KSM. It will reduce our carbon footprint and it will help with the overall decarbonization approach of the prov ince. It provides several significant ESG and economic advantages:
CMJ: You mentioned the collaboration with Indigenous Peoples, which is currently a crucial part of the mining process in Canada, especially in BC. Recently, the BC government and Tahltan Nation announced a landmark agreement that will ensure Indigenous consent is obtained before mining takes place, and it will benefit all projects in that province. The Tahltan are very savvy when it comes to mining. How is that kind of agreement and social license going to affect the KSM project, and what are the differences between this kind of agreement and the ones that Seabridge already had entered (comprehensive environmental and socioeconomic impacts agreement) for the KSM project with several First Nations?
> The installation is part of our work towards “substantially started” designa tion which will ensure that KSM’s envi ronmental assessment certificate remains in place for the life of the project.
> Hydro power is less than 25% of the cost of diesel-generated power with oper ating cost savings.
28 | www.canadianminingjournal.com cess and have received the approvals. We also have the permits required to allow us to do the first 2 to 3 years of construction.
The Island Gold story In November 2017, Alamos Gold acquired Richmont Mines and the Island Gold mine, a long-life, high-grade under ground mine with growing production located in Ontario. Island Gold’s story began in 1985 when gold mineralization was first drilled. Richmont Mines achieved commercial production in October 2007 and Island Gold has since produced over 1.1 million oz. of gold. Island Gold is one of Canada’s high est-grade and lowest-cost gold mines. Through ongoing exploration success, its mineral reserves and resources have continued to grow in both size and qual ity. This has supported a multiphase expansion of the operation, driving pro duction higher, costs lower, and strong free cash flow growth.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 29 GOLD MINER > By Tamer Elbokl, PhD
> The expansion will transform Island Gold into one of Canada’s largest and most profitable gold mines. Following the completion of the expansion in 2026, the mine will be the seventh largest gold producer in Canada, the lowest cost, and the fifth most profitable.
CREDIT: ALAMOS GOLD study which outlined a larger, more prof itable, and valuable operation than out lined in the Phase 3 expansion study released in 2020. Based on the results of the Phase 3+ expansion study, Alamos announced that they are proceeding with an expansion of the operation to 2,400 t/d. Phase 3+ expansion is more significant than Phase 3 for the following reasons:
Alamos Gold is a Canadian-based gold producer that was formed in 2003.
An aerial view of the Island Gold mine.
Alamos Gold and the Island Gold mine success story
> The mine life will be more than dou bled, extending operations until 2039, which is four years more than what the
How it was done: Expansion planning To increase the plant throughput rate, the comminution circuit was assessed to identify its maximum capacity, and the existing crushing and grinding circuits were simulated at differing throughputs to determine which alternatives were available. The assessment indicated that the existing crushers and mills can handle a maximum throughput of 1,600 t/d, which requires upgrades or additions to several of the other areas of the process plant such as the fine ore stockpile capacity, pre-leach thickening, leaching, CIP, acid wash, process water management, and otherTheequipment.optionsto further increase the throughput of the plant to approximately 2,400 t/d included the following: > The addition of an equivalent ball mill ing circuit in a parallel configuration, and > The addition of a new SAG milling cir cuit prior to the existing mill to create an in-series grinding configuration.
The company operates three mines: two in Canada (Island Gold mine and Young-Davidson mine) and one in Mex ico (Mulatos mine) in addition to a strong portfolio of development stage proj ects in Canada, Mexico, Turkey, and the United States.
> It will allow the expansion of the oper ations from 1,200 to 2,400 t/d, which is scheduled for completion in 2026 (as out lined in the timeline).
Phase 3 expansion plans outlined.
The Island Gold mine is located outside Dubreuilville, Ont., and is one of the highest grade and fastest growing deposits in the world. Island Gold has a strong track record of exploration success with its mineral reserves and resources nearly tripled over the past four years. This low-cost underground operation produced 140,900 oz. of gold in 2021.
> It will drive production higher to an average of 287,000 oz. of gold per year at significantly lower costs.
The announcement On June 28, 2022, Alamos Gold reported the results of the Phase 3+ expansion
A responsible miner Alamos Gold adopts a sustainable busi ness model through the following strate gies: 1 Conservative, low-risk strategy: work ing in safe jurisdictions (100% North American production), being debt-free $122 million cash (as of June 30, 2022) and $622 million total liquidity, and fully funded organic growth.
allows for a single milling stream to operate while the other stream is offline for maintenance. The downstream cir cuits may require modifications to allow the plant to run at the lower tonnage for an extended period.
30 | CANADIAN MINING JOURNAL www.canadianminingjournal.com GOLD MINER
SGS IS THE WORLD’S LEADING TESTING, INSPECTION AND CERTIFICATION COMPANY
2 A balanced approach to capital alloca tion.
Commitment to the local community
The new shaft infrastructure Following the completion of the expan sion in 2026, the operation will transition from trucking ore and waste to skipping ore and waste to surface through the new shaft infrastructure, thus driving production higher and costs significantly lower.The main components of the shaft infrastructure are unchanged from the 2000 Phase 3 study with the exception of the addition of a bin house and hoist drive cooling building. The bin house will allow for a more efficient and lower costs of transferring material to the haul trucks on surface.
To support the economies of local com munities, Island Gold offers training and education, including technical training to help local residents acquire the qualifica tions required for long-term employment at Island Gold and in the mining sector.
Selected expansion approach When selecting an option for the through put expansion, Alamos Gold had to con sider the following parameters:
Our fit-for-purpose solutions encompass the skills of qualified geologists, geostaticians, analytical chemists, mineralogists, metallurgists, process engineers and mining engineers brought together to provide accurate and timely mineral and process evaluation services across the mining life cycle.
Island Gold prioritizes hiring from Dubreuilville, Wawa, and White River, as well as contracting and sourcing unless their needs cannot be met locally.
3 A long-term track record of value cre ation: acquiring high-quality assets at weaker point in cycle; focus on explora tion including discovering 3.7 million oz. of inferred mineral resources at Island Gold over the past four years at a cost of $12/oz.; $1.7 billion combined value added at Young-Davidson and Island Gold mines since acquisition.
The Phase 3+ expansion will create new job opportunities, and Alamos Gold attends and organizes job fairs, commu nity meetings, and open houses. In 2021, 45% of the workforce was local.
A 5.0-m diameter concrete lined shaft will be constructed with a steel head frame. The shaft will house two 12-t skips in dedicated compartments for ore and waste movement and a double-deck ser vice cage for the transport of personnel and materials. The shaft will be sunk to an initial depth of 1,373 m. The hoist is designed for an ultimate depth of 2,000 m, providing flexibility to accommodate future exploration success. At the initial depth of 1,373 m, the shaft has a capacity of 4,500 t/d, more than sufficient to accommodate the peak mining rates of 3,600 t/d (ore and waste). Post completion of the shaft, a total of five haul trucks will be required to sup port a mining rate of 2,400 t/d. This com pares to a peak of 18 haul trucks required to sustain ramp haulage at 1,200 t/d. This
The shaft expansion option for Phase 3+ expansion – in addition to presenting the strongest economics and most effi cient and productive scenario – also means that the operation will be less reli ant on a mobile fleet of haul trucks using diesel. The shaft will be connected to clean, low-carbon intensity grid power, resulting in significantly lower diesel consumption. CMJ
DeliveringNAM.NATURALRESOURCES@SGS.COMWWW.SGS.COM/NATURALRESOURCESfit-for-purpose
Committed.Independent.Trusted.RESOURCESNATURAL
Greenhouse gas emissions reduction Phase 3+ expansion will result in a 35% reduction in life of mine greenhouse gas (GHG) emissions relative to the current operation, supporting the company-wide target of a 30% reduction in GHG emis sions by 2030.
solutions across the entire mining life cycle
The approach would also require a new crushing plant and additional upgrades to the leaching area, pre-leach thickener including its underflow pumps, tailings pumps, and process water management. The comminution assessment also provided an option to increase the throughput of the process plant to 2,400 t/d by way of utilizing an SAB comminu tion circuit design. This would require installing a SAG milling circuit prior to the ball milling circuit (in-series grind ing) as well as upgrades or additions to several other areas of the process plant.
1 The rate at which ore is delivered to the process plant from the mine, 2 Metallurgical performance (potential for gold loss mitigation), 3 Versatility (ability to cope with spikes in head grade, varying feed particle sizes, and mitigation of bottlenecks), 4 Construction complexity (duration of downtime and tie-in points to the exist ing plant), 5 Equipment reliability, and 6 Capital and operating costs for the plant changes.
Utilizing a parallel milling circuit contributes to the lower ventilation requirements and significantly lower diesel usage.
The selected option was to combine the initial expansion plans from 1,200 t/d to 1,600 t/d with the parallel grinding expansion plan, to increase the produc tion of the plant to 2,400 t/d, which entails the addition of a new ball milling circuit in parallel to the existing circuit as well as a new Pumpcell plant and elution circuit at the back end.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 31 CONTINUED ON PAGE 32 > By Tamer Elbokl, PhD
LEGACY:CANADIAN THE STORY OF B2GOLD TOLD BY THE CLIVEFOUNDERCOMPANY’SANDCEO,JOHNSON GOLD MINING
CJ: Our history is about two public companies. It is about Bema Gold and then about B2Gold. I grew up in the gold exploration business while I was paying for university. Bema Gold is a com pany that myself and other founders started almost 35 years ago (in 1977). Then, that little contracting and consulting com pany started to grow, and we decided to go public.
Founded in 2007, today, B2Gold has three operating gold mines and numerous development and exploration projects in various countries including Mali, the Philippines, Namibia, Colombia, Finland, and Uzbekistan. This year, B2Gold forecasts gold production to be 990,000 to 1,050,000 oz.
During PDAC 2022 in Toronto, which was the first in-person PDAC in two years, I caught up with Clive Johnson, president, CEO, and director of B2Gold.Clive Johnson (CJ) has served as a director and the president of B2Gold since December 2006 and chief executive officer since March 2007. Johnson oversees B2Gold’s long-term strategy and development as well as the day-to-day activities. Previously, he was involved with Bema Gold and its predecessor companies since 1977.
CMJ: To start our conversation, could you please talk briefly about the history of B2Gold, locations of the current projects in different stages, and what are the current reserves and resources?
In the early eighties we went public for the first time, looking to build our own exploration company, and in 1988, the compa nies that we had started amalgamated to become Bema Gold. When we decided to go public with Bema Gold, we quickly established ourselves. We built a gold mine in Idaho. Then, we went to Chile in 1988 before it was a popular place to go for gold, but we were driven by geology rather than geography. We have always believed in looking around the world for potential gold deposits and then figure out everything else. We have always been very entrepreneurial, and it has paid off well.
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, B.C.
minergoldlow-costfromLessonsa
In 2007, Bema Gold attracted the attention of Kinross Gold Corp. because they also had a mine in Russia. We were two thirds of the way through building Kupol in Chukotka. Kinross Gold made an offer to our shareholders. We did not want to sell Bema Gold; you do not want to let go of your baby, but we work for the shareholders. So, Kinross Gold acquired Bema Gold for US$3.1 billion; a big disappointment for us because we wanted to keep going, but at the end of the day, the shareholders accepted the offer. Then we said, what are we going to do next? Nobody on the management team wanted to retire. Let’s try and do it all over again. Bema Gold was zero to US$3.1 billion over about 30 years, so let’s start over with B2Gold. We started B2Gold in 2007 with nothing but our own money and several exploration projects in Colombia. We then went on to acquire Central Sun in Nicaragua in 2009 and built a new mill there and had another great success story. Those Nicaraguan assets, the Limon and La Libertad mines, were vended into another company called Calibre Mining in 2019. We made sure they adopted all our employees in Nicaragua because we care very much about our people. Then, we acquired and upgraded a mine in the Philippines in 2013, the Masbate mine. It is a very low-cost producer, and a well-run mine that produces about 200,000 oz. of gold/year. In 2014, we acquired a project in Namibia, the Otjikoto mine, which our own construction team built very successfully, on budget and ahead of schedule. It has been a successful pro ducer around that 200,000 oz. of gold/year range. The last acqui sition was when B2Gold acquired the world-class Fekola proj ect in Mali through a merger with Papillon Resources Limited in October 2014.
The Fekola project had some good drilling results and a good feasibility study, but the market attitude towards growth was very negative because so many global companies had overpaid for assets or had not delivered on construction. So, we got a good deal. It was about 3 million oz. of reserves when we acquired it, meaning 10 years at 300,000 oz./year, but it also had excellent exploration potential. Thus, we overbuilt the mill capacity so we could expand very cheaply. We started the mill at 300,000 oz./year, and now we have doubled the size of the reserve base and are producing 600,000 oz./year. It is a worldclass gold deposit, and we think we are just started there because we have a whole belt of 20 km, and we have another 3 million oz. resource to the north on the Anaconda area. There is a good chance we will end up building a second mill, north of the Fekola mine.
Part of our way to grow the company is a little thinking out
Masbate mine in the Philippines.
Later, that led us to a discovery in a joint venture north of Russia, right next to Alaska, in the Chukotka region. We entered a joint venture with the local government of Chukotka. Several drill holes and trenches there were spectacular, but we did not know how deep it was, or how big it could be. We ended up dis covering one of the richest gold and silver mines in the world in the last 50 years called Kupol and we raised US$300 million to build it. We are different because we build our own mines, and we do not use many consultants or contractors. Not because they are not good, but because we want accountability. Our whole cul ture, of both Bema Gold and B2Gold, is based on fairness, respect, transparency, and accountability. That is how we treat people around the world, and that is why we have been successful in so many countries – because it comes down to the way we treat peo ple. And the most important thing, if there is a secret sauce to our success, is delivering on the promises we make.
Bema Gold made two very large discoveries in Chile. One was the Refugio mine, which we put into production, and the Cerro Casale discovery.
CREDIT: B2GOLD
CJ: No, the Cerro Casale project has gone through a series of other ownerships and development. It should have been built a long time ago in my opinion; it is a big gold-copper project. The Refugio mine was in production for many years. Being entre preneurial, we started a project in South Africa where we acquired a producer there to grow our production profile. We then went to Russia in 1998, which was a very contrarian move at that time, but we were attracted by a small but very highgrade deposit in Magadan, in far east Russia.
I have been around the world, meeting leaders of countries, mining ministers, and all sorts of people in the local communi ties, and I have told them that we would like to build a mine in 2.5 years, we will pay a fair tax rate, we will create jobs, we will help to develop the local community, and as a world leader in ESG and CSR, we are going to take care of the environment. In developing countries, they believe me when I tell them we are going to do that because I am the CEO of a Western company. They are not as cynical as we are; therefore, we better deliver on those promises to avoid losing their trust. Delivering on the promises we make is one of the primary reasons for our success beside our entrepreneurial spirit.
32 | CANADIAN MINING JOURNAL www.canadianminingjournal.com GOLD MINING
CMJ: So, you went there despite the political instability? CJ: That was also when Russia just had a financial collapse, and gold was US$300 an ounce, trading at or near an all-time low. Everyone thought we must be out of our mind trying to raise money to build a gold mine in Russia during that time. That is a good example of being bold; our team has always been pre pared to do that. Although it was difficult, we raised the money somehow to build that mine, and that was a great success.
CMJ: Are they both still in production?
CJ: Most exploration companies should never become a pro ducer because it is a totally different business. At B2Gold, we have the hunger of the explorer and the technical and financial strength of a respected senior producer.
We have allocated approximately US$28 million in 2022 for our grassroots exploration program, which includes several new regions. In Finland, we allocated approximately US$11 million to the Central Lapland joint venture with Aurion Resources. It lies immediately to the west of Rupert Resources’ Ikkari discovery, comprising similar geology. Diamond drilling in 2021 has con firmed the presence of mineralization on this structure. In Uzbekistan, we allocated approximately US$6 million to advance exploration on the ground we have acquired in prox imity to the world-class Muruntau super mine. A total of 32,700 metres of diamond and reverse circulation drilling has been planned. In Côte d’Ivoire, we have planned work on two newly acquired early-stage permits. Other areas include Zimbabwe, Papua New Guinea, and Egypt. Our scope is international.
CJ: We are seeing excellent drill results on the Anaconda area, with more than 3 million ounces of resources in the updated estimate. With the proximity of Oklo’s properties to the Anaconda area, it made sense: the acquisition of Oklo is expected to provide B2Gold with an additional landholding of 1,405 km2 covering highly prospective greenstone belts in Mali, West Africa, including Oklo’s flagship Dandoko project (550 km2), which has a near surface resource of approximately 600,000 ounces. The Oklo properties are located on a subparal lel, north-trending structure east of the prolific Senegal-Mali Shear zone, approximately 25 km from the Fekola mine and approximately 25 km from the Anaconda area, where we are conducting a drill program of approximately 225,000 m of drill ing with a budget of US$35.5 million.
CONTINUED ON PAGE 34
CMJ: So, are you happy with where you are now?
CMJ: After so many years of pursuing opportunities in prospective gold regions, what are B2Gold plans for exploration in new regions?
CMJ: Recently, B2Gold announced an updated, significantly increased mineral resource estimate for the Anaconda area, located near the Fekola mine in Mali; then B2Gold acquired Oklo Resources and its extensive land package near the Fekola mine.Why did you make that acquisition, is it the proximity to the Fekola mine? What are the benefits of the project?
CJ: Definitely, and I think for us, the success is great, but more importantly is how we did it by taking care of the communities, by being environmentally responsible and innovative and building things like solar plants, by thinking outside the box with supporting local populations and programs and agricul ture. We are an extension of the Canadian culture of fairness, transparency and respect. I tell people that the Canadian passport might get you a smile, and it might get you a meeting or an introduction to somebody, Gold pour at the Fekola mine, Mali. CREDIT: B2GOLD
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 33 side the box, by overbuilding a mill for example. If our explora tion is telling us there is a good chance for more gold, let’s not build something smaller and regret it three years later. Now, we are world-class in our safety and all the aspects of ESG and CSR, but we are also low-cost miners, very disciplined and entrepreneurial. We were born of exploration twice. You know, the cheapest ounces will always be the ones you find, not the ones acquired, but we have done a combination of good acquisitions and found our own gold. We are debt-free. We have about US$600 million in cash in the bank, we will generate US$600 million cash this year in gross profits. It is one of the reasons I still do this after 40 years: it is still fun and still entrepreneurial.
Middle: B2Gold forecasts gold production this year from its operations in Mali, Namibia, and the Philippines to be between 990,000 and 1,050,000 oz.
CREDIT: B2GOLD
As a responsible mining company, B2Gold is committed to developing resources in a way that is protective of people and respectful of human rights and cultural heritage, creates socio-economic development, and mitigates environmental and biodiversity impacts.
CMJ: Most of your projects in various stages (exploration, development, and production) are in less developed countries (Mali, Namibia, the Philippines, and Colombia). How do you ensure the economic value B2Gold generates is distributed locally in ways that improve people’s lives in those countries?
CMJ: B2Gold released its 2021 responsible mining report prior to PDAC, a tradition that started in 2016. How is that commitment reflected across the company? What are the major highlights from the 2021 report?
GOLD MINING
34 | CANADIAN MINING JOURNAL www.canadianminingjournal.com but then you’ve got to deliver on your promises. It is the culture and delivering the promises you make. My parents came to Toronto from Liverpool, England, and I was brought up in Vancouver, so I am very proud of being Canadian in the mining industry and of what we give back worldwide.
CJ: I think last year, we spent over US$9 million on our CSR and community development projects. It is great that investors are demanding this now, but I think it is important to point out that we have been investing in our communities for a long time, before it became cool or required. It is part of our culture again.
CJ: Our investments are part of a win-win partnership with governments, communities and the private sector, all who ben efit from our operations. We generate tremendous economic value in the countries where we operate through payment of wages and benefits, payments to governments at all levels, local procurement and support for local companies, local hiring and training programs, and major community investments. The impact is tremendous – last year, for example, we spent over US$153 million on wages and benefits to our almost 5,000 com pany employees worldwide and paid over US$400 million in taxes and royalties to governments. 97% of our employees are nationals of the countries where we operate, including 64% of senior management positions staffed by local employees. B2Gold is wholly committed to conserving the quality of the natural environment in the areas where we operate, and to minimize the impact from our operations on the environment. We have taken the lead in sustainable mining, building two major solar plants at our mines in Africa. As an example of our commitment to sustainability and responsible mining, we built one of the first hybrid solar plants, a 7 MW facility, at the Otjikoto mine in Namibia. We have now built a larger 30 MW solar plant at the Fekola mine in Mali, one of the largest off-grid hybrid solar-heavy fuel oil plants in the world. It cuts our car bon footprint down, reduces our emissions, and at the same time we save on operating costs. We also initiated a campaign to save the black rhinos in Namibia, through the donation and sale of 1,000 oz. of gold (val ued at approximately US$1.9 million) from our Otjikoto mine. We produced 1,000 limited edition Namibian Rhino gold bars in various sizes, and sold them with a 15% conservation premium, which is invested to sustainably finance community driven conservation efforts and support rangers, trackers, and com munities who live alongside the black rhino. We sponsor an orphanage and private academy in northern
Top: Mill operations at night at Fekola mine, Mali. Fekola mine is expected to produce between 570,000 and 600,000 oz. of gold in 2022.
Bottom: Solar power, Fekola mine, Mali .
We show people that we respect their country and the envi ronment. For example, in the Philippines, we have replanted more than 1.5 million mangroves and planted 38,000 corals on over 2,200 installed artificial reef structures. These are huge concrete balls that are sunk into the ocean, to which coral is attached and regrown. The coral reefs have been destroyed, not by us but by overfishing, dynamite fishing, and other damaging practices. Our work has been internationally recognized, including PDAC awarding us their 2021 Sustainability Award.
In Nicaragua, we started working with the local people – arti sanal miners – around our mine who were processing mineral ore using mercury, which is poisonous and harmful to the envi ronment. We offered them access to gold veins on our property that we were not going to exploit and built a small mill for the miners where their ore would be processed without using mer cury. If we could do that in Nicaragua, we could do it anywhere.
RecRuitment of qualified peRsonnel in engineeRing and geosciences www.hrhworkforce.com Canada : +1 (514) 612-7172 South America : + 57 (601) 790-0072 ProfessionnalSelectioninfo@hrhworkforce.comofthecandidateandbackground checks Recruitment process Language Immigrationcoursesandarrival processes Integration into the company ... And many more services ! contact one of ouR RepResentatives :
CJ: We have always been very global. We tend to be driven by geology and mining opportunity rather than geography. We are looking all over the world right now. We are open. We would love to do something in Canada for sure, but it must be the right fit where we can bring our expertise to the table. We do not have to rush into anything. I think we have an advantage over many companies because we can do it interna tionally. We have shown our ability to succeed in many juris dictions.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 35
CMJ: How did the COVID-19 pandemic affect your operations in those countries? How did the company work with local authorities in each country it operates, since those developing countries did not have early access to the vaccines?
In Mali, we worked with a community that was quite close to where we were going to be blasting in our open pit, to come to the joint decision to move the community to allow for them to develop. Our pit was going to be about 200 m from the village, but the government had given a permit without the requirement to move the village. However, the right thing to do was move that village. We talked to the local leaders and asked them to pick a new spot, and now this rebuilt village is one of the most modern in Mali, with solar panels for every home, improved community hygiene infrastructure, water distribution within the commu nity, and accommodation for everyone. I am also proud that in Mali, we partnered with Global Affairs Canada on a program to provide technical and vocational training to villagers so that they could learn skills to apply in their communities.
CMJ: Your interests are international, but are you currently looking for opportunities in Canada?
CMJ: In Canada, would you be looking for exploration and then operating the mine, or are you open to joint ventures with companies that have finished exploration of mines such as KSM in B.C.?
Namibia for children who have lost their parents to AIDS or other reasons. The first graduates from the academy have been enrolled in a state-of-the-art secondary school to allow them to continue their education, providing them a promising future.
CJ: From the beginning of the COVID-19 pandemic, we put mea sures in place and introduced additional precautionary steps to manage and respond to the risks associated with COVID-19 to ensure the safety of our employees and the surrounding com munities. We worked with national and local authorities in each coun try we operate in to comply with all public directives. We are very proud of how all our workers in these different countries performed through the COVID-19 pandemic. These countries do not have a safety net. They cannot just shut down mining because the revenue and wages generated are so important. We all wanted to keep mining during COVID-19 pandemic, but only if we could do it safely. It is the building of the social license over years that earns that trust from the governments and the people in these countries. In each country, we made a considerable impact on helping to respond to the pandemic.
CJ: We are very committed to complying with recognized global standards and then looking beyond that. That is an important part of the business. Historically and currently, we are not having trouble meeting any of the requirements of the regulations because we have got a great team, and our actions can be seen in detail in our annual responsible mining reports.
CJ: What we have done in the past was friendly acquisitions of companies where their shareholders receive our shares. That is a map for great success for us. If the project is big enough, we would be interested in a joint venture. We are open, but we are very disciplined in our due diligence. We do not use consultants and contractors to do due diligence. We do it ourselves because we have the team that can do it. And I want accountability – if those guys recommend acquisitions and they do not work well, we expect our stakeholders to hold us accountable. We would like to continue to find the resources ourselves and develop our projects. We want to grow this company by doing exactly what we have been doing for 15 remarkably successful years, from zero to a million ounces of gold production. CMJ
CMJ: Let’s get to some technical topics for a change; how are the tailings management facilities engineered to avoid potential spills?
Constant Change is the New Normal DON'T GET LEFT BEHIND Miners are in the unique position of striving to go “green” and exceed ESG standards while providing the resources for the rest of the world to reach net-zero. The pace of change in how we mine has been exponential but much more is still needed. Building on the success of our first Reimagine Mining symposium, this event will connect delegates with industry leaders on the forefront of these changes. Topics to be discussed include: ESG, Water Management, Automation, De-carbonization, Digitization, and the role of New Technologies. Interact with experts tackling mining’s big challenges and specialists who can shed light on how to implement these solutions. EVENTS.NORTHERNMINER.COM/REIMAGINE-MINING-2022 PRESENTED BY LIVE OctoberSYMPOSIUMVIRTUAL12-13,2022 REGISTER FOR FREE JOHN MCCLUSKEY President and CEO Alamos Gold Inc. CHRIS KENNEDY Director, Water Teck Resources Ltd. KEYNOTE SPEAKERS
» Francisco Freyre is the new CFO at Aurania Resources, replacing Tony Wood » Bonterra Energy’s George Fink will be retiring as president and CEO.
» Peter Richardson was appointed executive managing director of Nevada Gold Mines » OceanaGold’s current COO Scott Sullivan will take on the new role of chief technical and projects officer. Peter Sharpe will serve as COO Asia-Pacific, and David Londono was promoted to COO Americas. Current EVP exploration and development Craig Feebrey returns to his role as EVP exploration.
» Excellon Resources named Shawn Howarth president and CEO.
MOVE AUGUST 202 2 | VOLUME 3 | ISSUE 8
TOP MOVES IN THIS ISSUE
MANAGEMENT MOVES
» enCore Energy appointed Gregory Zerzan as chief adminis trative officer and general counsel.
» Kutcho Copper appointed Andrew Sharp as COO.
» E3 Lithium promoted Leigh Clarke to VP corporate strategy and sustainability; Peter Ratzlaff to VP resource development; and Chris Ward to VP Clearwater project.
» Falco Resources named Mireille Tremblay VP of legal affairs and corporate secretary.
» Lundin Mining named Juan Andres Morel SVP and COO; Teitur Poulsen SVP and CFO;
Lukas LundinDon Lindsay
Peter Nicholson Lukas Lundin, founder and former chair of Lundin Mining, DiamondLucara and Filo Mining, passed away on July 26 of brain cancer. Over 40 years, he was a driving force behind the successes of 11 Group.withincompaniestheLundinAt
» Alpha Exploration appointed Francisco Del Castillo as CFO.
Client Director Global Mining Recruitment M: +1 416.854.8468 E: erik.buckland@lincolnstrategic.com W: www.lincolnstrategic.com
» Nick Furber resigned as CFO of Keon Capital » Kinross Gold appointed Claude Schimper as EVP and COO.
» 5N Plus appointed Roland Dubois to the newly created posi tion of chief commercial officer.
SEPTEMBER 2022 CANADIAN MINING JOURNAL | 37
» Turmalina Metals named James Rogers CEO. » West Vault Mining confirmed the appointment of Sandy McVey as CEO.
David Dicaire SVP Josemaria project; and Kristen Mariuzza, SVP sustainability, health and safety.
» Luis Villa will assume the role of VP Nicaragua at Mineros, replacing the retiring Carlos Mario Gomez
» Minto Metals named Channa Kumarage director, corporate development, and Tania Barreto director, investor relations.
Executive, Management and Board Changes in Canada’s Mining Sector
Don Lindsay announced his retirement as president and CEO of Teck Resources after 17 years with the company. Jonathan Price will succeed him as CEO, while Harry Conger will serve as president and COO. Lindsay joined Teck as president in January 2005. He was appointedlaterto the company’s board and named its CEO. Lindsay is a graduate of Queen’s University (BSc Hons) and Harvard Business School (MBA). Prior to joining Teck, Lindsay was employed by CIBC World Markets.
» Juan Enrique Rassmuss replaced Juan Andrés Morel as president of Tintina Mines
» Vivian Austin joined Argo Gold as corporate controller.
» FPX Nickel appointed Cooper Quinn as president and CEO of its carbon capture and storage subsidiary. » Goldflare Exploration named David Corbeil-Héneault, currently finance and administration manager of the company, as CFO.
SPONSORED BY ERIK BUCKLAND
» Dolly Varden Silver appointed Rob van Egmond as VP of exploration.
ON THE
» American Lithium named Ted O’Connor EVP of the company.
» Radisson Mining Resources appointed Vivien Janvier as director of geology.
» Silverton Metals appointed Kyle Appleby as CFO to replace Killian »RubySkeena Resources welcomed Nalaine Morin as its new VP of sustainability. » Keith Li replaced Mario Miranda as CFO of Snow Lake Resources » Teck Resources named Jeff Hanman SVP sustainability and external affairs, and Tyler Mitchelson SVP copper growth.
» Director and Pan Global Resources appointed Juan Garcia Valledor as general manager Spain. » PolyMet Mining appointed Denton Henkelman as VP and project director.
» Harfang Exploration appointed Jérôme Lavoie as its chief geologist.
» Pacific Bay Minerals’ president and CEO David Brett stepped down. Succeeding him is Antonio Vespa, previously VP operations.
Appian AdvisoryCapital appointed Peter Nicholson as the head of its Australia and Asia division. In addition to companies,portfoliooverseeinghe will execute (FINSIA).ofServicesofandaQueenslandthegraduatedfund.privateofdirector,asexperiencehasregions.exitsinvestmentsportfolioandacrosstheNicholsaon13yearsofservingmanagingAustralia,aminingequityNicholsonfromUniversityofwithBEng(mining)isafellowtheFinancialInstituteAustralasia
Lundin Gold, which he founded in 2014, Lundin oversaw the development of Ecuador’s first modern gold mine, Fruta del Norte. The Group has a combined market cap in excess of US$11 billion, directly employing more than 15,000 people.
» Champion Iron appointed Donald Tremblay as CFO. » Clear Sky Lithium named Patrick Morris as CEO.
» Marcus Archer resigned from the board of Northern Shield Resources.
» Tintina Mines chair Juan Andrés Morel resigned from the board. His replacement is Juan Enrique Rassmuss.
.........................................
EQUIPMENTACCESSTOPLATFORMSWORKSAFELYYOUR www.scissordeck.com | 877-730-2704scissordeck@shaw.ca
» GR Silver Mining director Michael Thomson resigned. » Graphite One added a new director, Bedi Singh. » Brooke DeLong was appointed to the board of Imperial Mining Group » Fernando Porcile, former executive chair of Los Andes Copper, passed away. » Lundin Mining appointed Natasha Vaz to its board.
» Clayton Olson joined the board of Basin Uranium HRH Workforce 35 www.hrhworkforce.com 8 www.iwtwireless.com Kappes Cassidy & Associates 2 www.carbonconverter.com Martin Engineering 20 www.martin-eng.com Mining 40 www.rocktechnology.sandvik Seabridge Gold 9 www.seabridgegold.net SGS Canada 30 www.sgs.com SRK Consulting 16 www.srk.com
.................................
» Guy Elliott joined Nova Royalty as an independent director.
................................................
» Scott Margach replaced Barry Girling on the board of Silverton Metals
38 | www.canadianminingjournal.com
CANADIAN MINING JOURNAL
» SilverCrest Metals welcomed Anna LaddKruger to its board.
Innovative Wireless Technology ..................................
» Cameron MacDonald was appointed to the board of Pacific Bay Minerals
Thermo-Tech Inc. 15 www.mag-heat.com Titan Environmental 9 www.titanenviro.com Westpro Machinery 38 www.westpromachinery.com
» Aurania Resources announced Thomas Ullrich as a director.
Sandvik
» American Lithium added Claudia Tornquist to its board. » Pedro Turqueto replaced Philip Reade on the board of Aura Minerals
» Hugh Devlin, joined the Royal Road Minerals’ board.
» Silver Wolf Exploration welcomed Honza Catchpole to its board.
» Western Gold Exploration director Willie McLucas passed away.
» Gowest Gold director Yungang Wu resigned.
» Paramount Gold Nevada appointed Samantha Espley as a director.
» Essex Minerals appointed Elena Tanzola to its board. She replaces the retiring James Harris » Shawn Howarth will join the board of Excellon Resources. » Glencore appointed Liz Hewitt as an independent non-executive director.
» Tony Wonnacott is now the chair at Metallum Resources following the resignation of Simon »RidgwayMonarch Mining appointed Benoit Desormeaux as a director.
» Patriot Battery Metals appointed Brian Jennings as a director. » Pure Energy Minerals appointed Mao Yuankai as director.
» The Nuclear Waste Management Organization named Glenn Jager its new chair and Subo Sinnathamby to its board.
BOARD ANNOUNCEMENTS
JOIN US SEPTEMBER 28-29 events.northernminer.com/q3-gms-2022 #GMS2022 DOUG SILVER MINERAL ECONOMIST, KEYNOTE SPEAKER & AUTHOR HEMINGWAYGEORGE MANAGING PARTNER STRATALIS GUEST SPEAKERS VIRTUAL MINING CONFERENCE SHOWCASING THE BEST PROJECTS, TECHNOLOGY & TALENT 2022 - Q3 EDITION | SEPT 28-29 ERIN BOBICKI ASSOCIATE UNIVERSITYPROFESSOROFALBERTA CHRIS TAYLOR ADVISOR TO DISCOVERY GROUP REGISTER ONLINE
Explore our ROCKTECHNOLOGY.SANDVIKwebsite REPLACE OR REDESIGN? TH550BRETHINKbySandvikisafully battery powered truck and the only battery powered truck for underground mining with a 50 tonne capacity. The truck combines Sandvik’s 50 years of experience in developing loaders and trucks with Artisan’s innovative electric drivelines and battery packs. Learn more about the Sandvik TH550B along with the self-swapping battery system.
