CIM Magazine February 2009 by CIM-ICM Publications

Publications Mail No. 40062547

February • février 2009

www.cim.org

MINING SAFELY. MINING MORE. MINING RIGHT.

Miners everywhere face similar challenges. Running a safe operation is your highest priority. Nothing matters more. Meeting production and profitability targets is also critical. The pressure is always on to deliver more tons at a lower cost. Environmental responsibility is another key concern. We are all challenged to do the right thing, meeting demand for minerals and metals in a manner than sustains the earth. Caterpillar and your Cat® Dealer understand your priorities. We welcome the opportunity to put our products, services and technologies to work in your operation. Together we can achieve all your business objectives—Mining safely. Mining more. Mining right. To learn more contact your Cat Dealer or visit www.cat.com/mining

© 2009 Caterpillar All Rights Reserved CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

CONTENTS CIM MAGAZINE | FEBRUARY 2009 • FÉVRIER 2009

NEWS 16

Doff your hard hats The Canadian Mining Hall of Fame inducts four new members by M. Kerawala Microfinance, courtesy of the moguls Canadian mining women do their bit for micro-enterprise in South Africa by M. Kerawala

Baptism by fire for new Rio Tinto Alcan CEO

Incumbent leader faces tough decisions and hard times ahead by P. Diekmeyer

12 UPFRONT 18

Digging through Budget 2009 MAC vice president Paul Stothart analyzes the Budget’s implications for our sector by A. Gordon Grace under pressure Revolutionary new pressure sensor coating maximizes uptime at Xstrata Strathcona Mill by J. Talbot Good science In dealing with stakeholder concerns, there is no substitute for expertise by K. DeVos

4 | CIM Magazine | Vol. 4, No. 1

Open letter to the Canadian mining industry and government An appeal for much-needed investment in human resource development by M. Scoble and J. Hadjigeorgiou Help from CELP CANMET technology reduces costs in the Russian Far East by D. Zlotnikov

INNOVATION 38 44 46 48 51 56

COLUMNS

Doing more with less Experts from industry and academia discuss the promise and price of automation by P. Diekmeyer Faire plus avec moins Panel sur l’automatisation dans l’industrie minière Canadian mining beyond the final frontier This country’s mining industry can play a vital role in new-age space exploration by M. Paduada Lunar mining and processing outpost An explanation of the blue-sky thinking that is depicted on the cover of this magazine by G. Baiden Achieving the “perfect zero” It takes more than mere systems to build a zero-tolerance safety environment by C. Bianco Hands off A survey of new products that offer the automation advantage by E. Moore

61 62 63 64 66 68 70 72 74 75 76 130

MAC Economic Commentary by P. Stothart The Supply Side by J. Baird First Nations by J.C. Reyes Innovation by M. Laflamme, M. Grenier, & J. Zinck HR Outlook by J.P. Chabot Student Life by R. Clarke Standards by D. McCombe Engineering Exchange by B. Sundararajan Eye on Business by G. Ho Yuen Parlons-en par D. Gaboury Mining Lore by M. Sabourin Voices by D. Boucher

CIM NEWS 85

85 86

Freedom from the cubicle Arthur Foley Scholarship winner shares his ideas on a mining career by M. Kerawala Off to a great start CIM Edmonton Branch kicks off the 2008-2009 season in style by R. Pillo Assurer l’avenir de l’industrie minière à Thetford Mines Forte de son histoire, la continuité de la section locale de l’ICM est assurée par la collaboration par Pierre Laroche Keeping mining alive in Thetford Mines Steeped in history, the local CIM branch is assuring continuity through collaboration Seeing the power of innovation An interview with CIM Distinguished Lecturer Gord Winkel by R. Pillo

CIM Conference and Exhibition / Congrès et salon commercial de l’ICM

TECHNICAL SECTION 122

This month’s contents

IN EVERY ISSUE 6 8 10 84 87 89 128

Editor’s Message President’s Notes / Mot du président Letters Welcoming new members Obituaries Calendar Professional Directory

HISTORY

78 FEATURED MINE MINE EN VEDETTE 78

Agnico-Eagle strikes Goldex Favourable gold prices make the project viable despite low yields by P. Diekmeyer

Agnico-Eagle exploite le filon Goldex Malgré les faibles teneurs, le projet est viable grâce au prix favorable de l’or

116 119

Homestake, South Dakota (Part 4) by R.J. Cathro The strategic mineral that became an industrial nuisance (Part 1) by F. Habashi

Canada's Global Impact e kick-off every new year of CIM Magazine with our annual Innovation issue, and this one tells the true story of an industry shaped by keen forward thinking and commitment to improvement. Also, this issue includes the preliminary program of the CIM Conference and Exhibition 2009 in Toronto, May 10 to 13, which is a perfect tie-in with innovation as it's a consistent theme throughout the event. In today's shaky times on the markets, the ability to apply innovative ideas and processes to improve performance and results is key to successful navigation through the challenging waters. CIM, as Canada's leading association committed to the transfer of knowledge throughout our industry, strives to be the ultimate venue to foster innovative concepts and enable ideas sharing that will lead to improved operations. Simply read the following pages and you're bound to learn something new! This year's CIM Conference and Exhibition is themed Canada's Global Impact — really, this could be a theme for CIM itself. It speaks to the incredible leadership Canadians have displayed throughout the global minerals industry. It raises questions of what is required today to ensure continued, and potentially even increased, leadership tomorrow. It's a commitment to coming together, and tackling issues together to ensure success. Make sure you take a moment to sift through the conference program on pages 90 to 115 — it's a high-calibre event. Many of industry's top minds are participating, sharing their experiences and knowledge to offer ideas and practices you can take back to your work and apply. I'm looking forward to seeing as many CIM members as possible at the conference and exhibition in Toronto — because this year, we all need to get together and share solutions. See you in Toronto!

Heather Ednie Editor-in-chief

Editor-in-chief Heather Ednie hednie@cim.org Senior Editor Angie Gordon agordon@cim.org Section Editors News and Features: Angie Gordon agordon@cim.org Columns and CIM News: Joan Tomiuk jtomiuk@cim.org Histories and Technical Section: Minaz Kerawala mkerawala@cim.org Technical Editor Joan Tomiuk Publisher CIM Contributors Greg Baiden, Jon Baird, Carmen Bianco, Louise Blais-Leroux, Dale Boucher, R.J. Cathro, Jean Pierre Chabot, Ryan Clarke, Ken DeVos, Peter Diekmeyer, Damien Gaboury, Michel Genier, Fathi Habashi, John Hadjigeorgiou, Kris Holland, Marcel Laflamme, Pierre Laroche, Deborah McCombe, Eavan Moore, Mike Paduada, Robbie Pillo, Juan Carlos Reyes, Michelle Sabourin, Malcolm Scoble, Hal Steacy, Paul Stothart, Binod Sundararajan, Jim Talbot, Greg Ho Yuen, Janice Zinck, Dan Zlotnikov Published 8 times a year by CIM 855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Joe Crofts jcrofts@dvtail.com ext. 310 Janet Jeffery jjeffery@dvtail.com ext. 329

This month’s cover Design by Kris Holland for Penguin Automated Systems Inc. Layout and design by Clò Communications. Copyright©2009. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada 6 | CIM Magazine | Vol. 4, No. 1

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president’s notes Across the mining world, companies are actively reassessing their businesses, from capital spending reductions and project deferrals to operational efficiencies and production curtailments. Along the way, difficult decisions have been made. We are all in business to generate a return on investment. Belts have been tightened and budgets have been cut to maximize the power of every dollar invested into the business. Over my three decades in the mining industry, I have learned time and time again that the best investment a mining company can make is in knowledge. A better process, a safer practice, a more productive and costeffective operation, a more sustainable approach… these can be the difference between a successful operation and a shutdown. This becomes even more important in difficult times like the ones we are experiencing, and it is one reason that I am honoured to serve as CIM’s president. Our organization’s unrelenting focus on continuous innovation in extraction and processing should be considered a valued resource to us all. The best practices and processes that are shared via

this magazine, our website and numerous meetings provide us with the ideas and knowledge that members can take back to their operations and turn into actions that benefit their companies. This May 10-13, CIM hosts its most important annual event, the CIM Conference and Exhibition, being held in Toronto. I am excited by the lineup of speakers and symposia, which will offer attendees the latest knowledge across five streams: Best Practices, Projects, Mine Cycle Management, People Resources, and Earth Biodiversity. In my opinion, this will be the mining “knowledge event” of the year. The knowledge shared and gained at the conference will be one of the best investments you can make. I look forward to seeing you there. Jim Gowans

Les connaissances – le meilleur investissement Dans tout le monde minier, les compagnies réévaluent activement leurs activités commerciales, depuis des réductions de dépenses en capital et la mise sur la glace de projets jusqu’aux efficacités opérationnelles et aux compressions de projets. En chemin, des décisions difficiles ont été prises. Nous sommes tous en affaires pour générer des profits sur les investissements. Nous nous sommes serrés la ceinture et nous avons coupé les budgets afin de maximiser chaque dollar investi dans la compagnie. Au cours de mes trois décennies dans l’industrie minière, j’ai maintes fois appris que le meilleur investissement qu’une compagnie minière puisse faire réside dans les connaissances. Un meilleur procédé, une pratique plus sécuritaire, une exploitation plus productive et plus rentable, etc. peuvent faire la différence entre une exploitation à succès et une qui ferme. Cela devient encore plus important dans ces temps difficiles, comme ceux que nous vivons, et c’est pour cette raison que je suis honoré de servir en tant que président de l’ICM. Le fait que notre organisation vise toujours l’innovation continue en extraction et en traitement devrait être considéré une ressource de valeur pour nous tous.

8 | CIM Magazine | Vol. 4, No. 1

Les meilleures pratiques et les meilleurs procédés, partagés par l’entremise de ce magazine, de notre site Web et de nos nombreuses rencontres, fournissent des idées et des connaissances que les membres peuvent rapporter à leurs exploitations. Ces idées et ces connaissances peuvent ensuite se concrétiser en actions qui profiteront aux compagnies. Cette année, du 10 au 13 mai, l’ICM tiendra à Toronto son événement annuel le plus important, le Congrès et Salon commercial de l’ICM. Je suis enthousiasmé par la liste des conférenciers et des symposiums qui offriront aux participants les plus récentes connaissances dans cinq volets : les meilleures pratiques, les projets, le cycle de vie d’une mine, les gens en tant que ressources et la biodiversité de la Terre. Selon moi, le congrès constituera « l’événement connaissances » de l’année. Les connaissances partagées et acquises lors du congrès constitueront l’un des meilleurs investissements que vous puissiez faire. Je me réjouis à l’idée de vous y rencontrer. Jim Gowans

Photo taken by Gary Mulcahy

Knowledge — the best investment

letters Pumped at MINExpo

Speaking for the other ten per cent

Gord, Imagine the surprise and excitement I felt when I opened up the cover of the September/October issue of CIM Magazine and saw my article listed in the table of contents. I was at the CIM booth on the convention floor at MINExpo in Las Vegas, which made it all the more special. This was one of the highlights of my visit to Las Vegas. MINExpo gave me a much better appreciation of the sheer magnitude of the large haul trucks. The colossal effort that goes into every machine is staggering when seen up close. It was reassuring to see that all the ingredients needed to make a comparable-sized Vector Neutral truck were at the show; the four-motor electric system and the hoist cylinder arrangement on the Liebherr T272 are two cases in point. I want to thank you, Mr. Winkel, for making my MINExpo experience unforgettable. Please pass on my thanks and appreciation to everyone at CIM Magazine.

Dear Ms Ednie: I have been a member of CIM for 30 years, and during that span of time much of value has been published in our Institute’s journals. However, I was utterly taken aback by the Reader Survey highlights given on pages 86 and 87 of the November 2008 issue of CIM Magazine. Under the heading of “readers are movers and shakers,” I saw “90% are male.” That may well be the case, statistically, but to have male gender noted as one of the characteristics of “movers and shakers” left me, as a long-term professional member of the Canadian mining industry, utterly dismayed. This statement is highly insulting to female members of the mining and metallurgical professions in Canada. I do trust that such an untoward association of concepts was inadvertent, and furthermore I sincerely hope that this is the very last time that a statement of that nature, suited to be left behind in the previous century, is printed in a journal of CIM Magazine’s calibre.

Yours sincerely, Mike Parsons Mike Parsons is the author of “Design changes for today’s haul trucks,” which was published on page 66 of the September/October 2008 issue of CIM Magazine. Thanks Mike for your kind feedback. The mining industry appreciates your innovation and personal effort to advance potential improvements that will increase our effectiveness. As we look into the future, and the application of increased automation, it opens up further opportunities for the Vector Neutral truck concept. Thanks for your continued support Mike. Gord Winkel, Imperial Oil, Kearl Oil Sands Editor, CIM Magazine Innovation column

CIM Conference and Exhibition 2009 MAY 10-13, 2009 Metro Toronto Convention Centre

Registration NOW OPEN! www.cim.org/toronto2009

Yours thoughtfully, G. (Gwyneth) Cathyl-Bickford Principal Geologist, Dunsmuir Geoscience Cumberland, BC Hello Gwyneth, Thank you for bringing this to our attention. We certainly never meant to imply anything negative, rather, it was an oversight on our part. At CIM, and through our magazine, we're dedicated to the promotion of a progressive minerals industry, which of course includes a diverse workforce. Sometimes we may make mistakes, such as in this case, and I appreciate members letting us know. Thank you as well for your longstanding membership with CIM. Members are the very backbone of our Institute, and I wish you another 30 years strong! Sincerely, Heather

10 | CIM Magazine | Vol. 4, No. 1

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If you liked our event at the Edmonton CIM Conference & Exhibition, don't miss us at the CIM in Toronto.

news Doff your hard hats

Photo courtesy of Keith Houghton Photography Ltd.

Four new stalwarts are inducted into the Canadian Mining Hall of Fame

Pomp and circumstance at Canadian Mining Hall of Fame’s 21st annual induction gala held January 15, 2009, at the Fairmont Royal York Hotel in Toronto.

With just over 33 million people, a harsh climate and a relatively short developmental history, Canada is still one of the elite G7 economies. So what makes a cold, northerly nation so prosperous despite its smaller talent pool and fund of experience? The by Minaz Kerawala answer lies in our land and our people. Canada is blessed with some of the world’s richest natural resource deposits, which serve as the backbone of our economy. By the application of money, muscle and mind, the people of this industry have transmuted the grit of our land into the wealth that we enjoy as a nation. The ingenious and industrious people of this industry have no natural affinity for the limelight, but they certainly need not remain unsung. Since 1988, the Canadian Mining Hall of Fame has recognized, celebrated and memorialized the achievements of many of Canadian mining’s most valued people. On January 15, 2009, four new members were inducted into the Canadian Mining Hall of Fame at the 21st annual induction gala and banquet, held at the Fairmont Royal York Hotel in Toronto. This brought the total number of members to 140. Like the other stalwarts whose ranks they joined, the four new members boast weighty achievements. They are the pride of the mining industry, which itself is the pride of Canada. Doff your hard hats to these great Canadian miners. 12 | CIM Magazine | Vol. 4, No. 1

A great teacher from the past Born in New Brunswick in 1922, Donald Gorman completed his B.Sc. in 1947 after serving in the Canadian Navy during World War II. He studied economic geology at the Royal School of Mines in England and acquired a PhD at the University of Toronto in 1957. He then began a long teaching career. For the next 41 years, “Digger” Gorman taught mineralogy at his alma mater with great zest and infectious enthusiasm to generations of Canadian geologists, producing scientists of the highest order, trained with rigour and imbued with a sense of adventure and passion for the subject. Gorman also distinguished himself in the public advocacy of his science. He was famed for his preternatural ability to identify absolutely any rock specimen anyone cared to bring in at countless mineral and gem shows. His popular lectures at the Royal Ontario Museum, the Walker Mineralogical Club, on radio and on television helped popularize geology. Gorman won the Peacock Prize for Mineralogy for 1975-76 and the Ontario Confederation of University Faculty Association’s award for outstanding teaching in 1978. In 1981, a newly discovered mineral was named gor-

news manite in his honour. In 2004, Gorman was named one of the University of Toronto’s Great Teachers from the Past.

A corporate craftsman Born in 1938 in France and educated at the prestigious Parisian École Polytechnique, Bernard Michel arrived in Canada in 1967, charged with setting up a large potash mine in Lanigan, Saskatchewan, from scratch. He later moved to Amok, displaying extraordinary technical and managerial prowess, which landed him the senior vice-president of operations position at the Canadian Energy and Mining Company (later, Cameco) in 1988. Michel progressed up Cameco’s ranks rapidly, becoming CEO, president, board member and chairman by 1993. His wizardly leadership transformed $650 million of debts into operating surpluses, brought the company out of public ownership into the private sector, and drove its expansion and globalization. By 1998, Cameco was producing a third of the world’s uranium, with new mines in Saskatchewan, the United States and Kazakhstan. Michel also led the acquisition of major gold interests and made Cameco one of Canada’s

largest aboriginal employers. He directed the company’s participation in a U.S.-Russian governmental partnership for dismantling nuclear warheads. Cameco and its partners purchase the weapons-grade uranium and resell it to strictly regulated utility companies, reinvesting part of the proceeds in further weapons dismantling. Over the years, Michel won many honours including the French Order of the Legion of Honour, the Queen’s Jubilee Commemorative Medal, the Saskatchewan Order of Merit and an honorary doctorate from the University of Saskatchewan.

An old-school adventurer “Have guts, will travel” would probably be the tagline on Roman Shklanka’s business card, had he been active in the days of the Wild West. Born in Saskatchewan in 1932, he earned his master’s degree in geology in 1956 and his doctorate in 1963. Since then, Shklanka has travelled far and wide as an intrepid geologist, discovering deposits, developing mines, conferring with governments, attracting investors and opening up frontiers in some of the

February 2009 | 13

news remotest parts of the world, introducing the wealth of mining to some the world’s poorest countries. In 1978, he went to Australia and subsequently spent over three years seeking new projects. He helped secure the Porgera and Misima deposits in Papua New Guinea and the Kidston gold property in Australia. He also identified and negotiated the acquisition of the Omai and Bulyanhulu gold projects in Guyana and Tanzania, respectively, and helped acquire the Granny Smith and Osborne mines in Australia. As chairman of Canico Resources Corp., he secured and advanced the Onca Puma nickel deposit in Brazil, which was later sold to Vale for $941 million in 2005. Through sheer courage, competence and boldness, Shklanka has helped many Canadian companies secure interests worldwide, enhancing Canada’s status as a centre of mining excellence.

A collier who graduated to diamonds A coal-mining Welshman, born in 1941, came to Canada seeking his fortune in 1964. Today, the seasoned collier, Grenville Thomas, is among the country’s top mineral explorers. His unerring prospector’ instincts have1 4975_CIM_HalfPg_Jan09.qxd 1/21/09 s1:22 PM Page

helped Canada become one of the world’s leading emerging diamond producers. Thomas’s Canadian career began with Falconbridge. In 1975, he founded Highwood Resources, which discovered the Thor Lake rare metals deposit, now developed by Avalon Ventures. In 1980, he founded his flagship junior company, Aber Resources. Spurred by reports of a diamond discovery, in 1991 Aber boldly staked claims in the Lac de Gras, despite being cash-strapped. Aided by his geologist daughter Eira and armed with just his convictions, Thomas battled great odds, raising financing from sceptical investors. Backed by global mining giant Rio Tinto, Aber discovered four viable diamond deposits on the Diavik property by 1995. Today, Diavik is one of the world’s richest diamond mines, producing over 10 million carats a year, employing many northerners and aboriginal people. Aber is now known as Harry Winston Diamond Corporation, and Thomas is now known as a prospector par excellence. He was named PDAC’s Prospector of the Year for 1999. CIM

HIGH TONNAGE, LOW COST

GOLDEX 1.6 MILLION OUNCES OF PROVEN AND PROBABLE GOLD RESERVES AVERAGE ANNUAL GOLD PRODUCTION OF 160,000 OUNCES PER YEAR COMMERCIAL PRODUCTION BEGAN AUGUST 1, 2008 THE NEW GOLD STANDARD

14 | CIM Magazine | Vol. 4, No. 1

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news Giving Back Microfinance, courtesy of the moguls The effort to give a brave group of South African women a fighting chance in their daily battle against poverty has resulted in the Meet the Mogul contest, an innovative fundraising strategy involving 600 Canadian mining women, one magnanimous uranium magnate and three mining moguls. To raise $250,000 for The Townships Project that provides microfinancing to poor South African women, the Women in Mining (WIM) networks of by Minaz Kerawala Toronto and Vancouver roped in three mining moguls, Frank Giustra, Rob McEwen and Eric Sprott to serve as “prizes.” Winners of a special essay contest get an hour’s personal interaction with these inspiring industry leaders. WIM is a powerful network of 600 Toronto and Vancouver professional women who work in a vast spectrum of roles in the mining industry. There are WIM groups around the world and total membership numbers in the thousands. The “moguls” are truly inspiring figures, the sort any aspiring entrepreneur would be honoured to meet. Giustra, president and CEO of Fiore Financial, is a member of the

The funds raised by WIM will help sustain small women-run businesses like this butcher shop in Cape Town, South Africa.

board of the William J. Clinton Foundation and the International Crisis Group and a director of the Radcliffe Foundation. McEwen is the founder of Goldcorp Inc. and has won several prominent awards including Most Innovative CEO, Mining Man of the Year, and Developer of the Year. Sprott, a multiple award-winning entrepreneur, is the founder of Sprott Securities, one of Canada's largest independently owned securities firms. The fundraising initiative received a great start when Stephen Coates, founder, president and CEO of Homeland and chairman of Homeland Uranium Inc., personally donated $50,000 to the cause. CIM

Fun on the inside Syncrude Canada Ltd. contributed $95,000 towards a new indoor playground in the Wood Buffalo region of Alberta, that draws on the local scenery for its design. The play structure includes giant replicas of a bison head, a haul truck and a crane in addition to a climbing wall. The facility is very popular with local children and youth who, because of the long and harsh Albertan winter, must take their recreational and sporting activities indoors.

Funding tomorrow’s research Total E&P Canada has donated $200,000 in support of the endowed Alberta Sulphur Research Ltd. (ASRL) chair in industrial sulphur chemistry. A research unit of global renown, ASRL is affiliated with the University of Calgary’s department of chemistry. The endowed chair will develop a research program that could lead to significant advancements in oil and gas production, sulphur chemistry and the manufacture of petrochemicals in Alberta. 16 | CIM Magazine | Vol. 4, No. 1

news Baptism by fire for new Rio Tinto Alcan CEO It was a rough way to say hello. Late last month, just a few days before taking on her new position as CEO of Rio Tinto Alcan, Jacynthe Côté met the media in the atrium of the company’s Montreal offices to announce that the firm was laying off 1,100 workers and shutting its Beauharnois Quebec smelter. “This is a very difficult situation for all involved,” said Côté. “A large percentage of our facilities are among the most productive in the industry. But times are hard. Aluminum prices have fallen by almost by Peter Diekmeyer 65 per cent during the past several years, which is a lot when you consider the cost of production.” News of Rio Tinto Alcan’s move hit raw materials producers hard; many were already reeling from falling demand. The company, which is one of the world’s biggest users of bauxite, its main raw material input, plans to diminish overall aluminum production by 230,000 tonnes. That brings total production cuts announced by the metals giant to 450,000 tonnes, or 11 per cent of its total annual capacity. Rio Tinto Alcan’s substantial planned cost reductions will be spread among facilities around the globe. However, the cuts will hit Quebec particularly hard. In addition to the permanent closure of the company’s 65-year-old Beauharnois smelter, production at its Vaudreuil alumina refinery will also be dramatically curtailed. The two moves will eliminate 300 jobs from Alcan’s Quebec labour force. The announcement was a rough baptism by fire for Côté, who formally assumed her new role on February 1, 2009. But she is certainly up to the challenge. After completing a bachelor’s degree in chemistry at Université Laval, she joined Alcan

in 1988 as a process analyst at the company’s Vaudreuil works in the Saguenay. Since that time, Côté has taken on a series of increasingly tougher challenges. Prior to taking on her current post, Côté served as CEO of Rio Tinto Alcan’s primary metals business unit. Between 2005 and 2007, she managed Alcan’s bauxite and alumina business unit. However, it is far from cer- Jacynthe Côté tain that Côté’s tough days are over. The day that she announced her recent moves, the Bank of Canada formally noted what many had long suspected: that the country had followed several other major global economies into a recession that could to be long and severe. In short, it is far from certain that the plunge in demand for aluminum has bottomed out. That may mean more bad news for Quebec, because three Rio Tinto Alcan units there — in Arvida, Shawinigan and Vaudreuil — have already been given tough cost-control targets, which is an indication that if things worsen, they could be next in line. In addition to the announced moves, Côté is also carrying out a full review of Rio Tinto Alcan’s organizational structure and operating strategy to determine what adjustments may be necessary to see the company through the current economic hardship. CIM

Achievements Robert Quartermain, president and CEO of Silver Standard has been awarded the Murray Prezim award by the Association for Mineral Exploration in British Columbia (AME BC) in recognition of his tireless efforts to raise finance for mineral exploration. The well-coordinated exploration programs he spearheaded gave the company titles to the largest in-ground silver inventory of any publicly traded company in the world. AME BC lauded Quatermain as “a hands-on financier who has raised $500 million to advance Silver Standard’s projects.”

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upfront Q&A by Angie Gordon

Digging through Budget 2009 MAC vice president, economic affairs, Paul Stothart, evaluates the recent federal budget world metals versus five per cent in the 1980s — to see if it can play a catalytic role. In this global context, there is not much the Canadian government can do about the fact that world nickel prices have fallen from $17 to $5 per pound or copper from $3 to $1.50. In the big picture items — namely broadening availability of capital and increasing infrastructure spending — our early conclusion is that the budget was positive. One unknown, and obviously serious risk, is the extent to which budget drafters have again set Canada on a path of large deficit spending. The last time we went down this path, it took us 24 years to get off!

Given the challenging economic climate, it was certain that the recently tabled Federal Budget 2009 would come under very close scrutiny. To get our own take on how the budget is expected to impact the mining industry, CIM Magazine spoke with Paul Stothart, vice president, economic affairs at the Mining Association of Canada (MAC). Stothart shared his views on how the government fared, the anticipated implicaby Angie Gordon tions for the mining industry, and what more he thinks could have been done. CIM: Given the challenging economic climate, the recent Federal budget certainly drew a lot of scrutiny. In general, how do you think the Tories scored? Stothart: Our general reaction is that the budget is appropriate for the times. There is considerable investment in infrastructure, as well as significant infusions to enhance capital availability. There are considerable investments in training, Employment Insurance 18 | CIM Magazine | Vol. 4, No. 1

adjustments, aboriginal skills, green energy technologies, northern development, and exploration tax incentives — some aspects of which are of value to the mining industry. The government has also stayed the course in some important areas. Corporate income tax cuts — moving from 21 per cent to 15 per cent by 2012 as announced last year — are unaffected by the budget and proceed on the same timetable, as does the $100 million, five-year investment in Canadian geological mapping, two of the things we have championed in recent years. CIM: Did they go far enough in assuaging some of the current uncertainties? Stothart: The main driver of activity and prospects for the Canadian mining industry is the global economy. The downturn in the US housing market and the associated turmoil in financial markets have sparked a collapse of many mineral prices. European demand has also softened. Our industry’s eyes are now upon China — a market that consumes 25 per cent of

CIM: Is any of the projected $12 billion in new infrastructure spending over the next two years going to benefit the mining industry? Stothart: It is hard to say at this stage. In general, one should expect two types of benefits for our industry. First, more federal spending on infrastructure means more consumption of steel (iron ore), copper and other minerals as buildings go up, wire gets strung, and piping gets laid. As well, some of the federal dollars need to be matched by provincial and/or municipal commitments, which could enhance the impact on raw materials demand. Secondly, there are a number of specific infrastructure projects, especially in northern Canada, that, if built, would ease access to mineral exploration and development in remote areas. It is now up to the relevant stakeholders and governments to drive these projects forward. CIM: Budget 2009 promised to accelerate the project approval process. What are the implications of this? Stothart: The budget talks of amending the Navigable Waters Protection

upfront Q&A

Act and of streamlining applicability of the Fisheries Act and Canadian Environmental Assessment Act. We are somewhat skeptical of the government’s ability to make progress at this time. I know from my years on the Hill that it is very difficult to advance sensitive legislative change in a minority Parliament. Plus, if these efforts are perceived as short-circuiting due environmental process, then the public and the opposition parties will oppose them. Two years ago, the government budgeted money to a Major Projects Management Office and to accelerating project reviews. The MPMO’s mandate was to ride herd on those departments who were laggards and to cut average review times in half. We believe the government should simply continue implementing this action plan — give clout to this office and impose timelines on departments involved in reviewing projects. This

doesn’t mean the industry would get the answer it wants on all projects, but at least answers would come on a timely basis. CIM: Exploration activity has been hit hard by the current economic turbulence. Were any of the announced measures aimed at mitigating some of that fallout? Did they go far enough? Stothart: Exploration spending and capital investment is being hit by low world mineral prices and there is not a whole lot that the federal government can do to affect this basic driver. One important measure, the 15 per cent Mineral Exploration Tax Credit — known more commonly as the super flow-through share provision — is an incentive available to individuals who invest in flowthrough shares that are used to finance mineral exploration. Budget 2009 proposes to extend the credit for an additional year — the struc-

ture of this tool means that funds raised with the credit will be able to support eligible exploration until the end of 2011. This is a good measure. Having said this, the budget could have done more. Together with PDAC, MAC has proposed technical measures relating to a “five-year rule” and to at-depth exploration where the federal government could help stimulate further exploration spending through broadening some tax measures and definitions. This remains unfinished business. CIM: Can you explain how the wellpublicized adjustments to the employment insurance program might benefit the minerals industry? Stothart: A number of adjustments have been made to the EI program, including some that enhance the availability of training. One component that may be of value to mining companies as they scrape through

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upfront Q&A

2009 is the Work-Sharing element. This element is designed to help businesses avoid layoffs by offering EI benefits to workers willing to work a reduced work-week while their employer recovers. Budget 2009 increases access to these work-sharing agreements, extends their term, increases flexibility in the qualifying criteria, and streamlines application processes. We still face a longer-term skills shortage and measures such as these could help the industry retain its younger workers who otherwise are often the first to go in a lay-off. CIM: Can you outline some of the initiatives aimed at northern development, and what they mean for our aboriginal communities? Stothart: Among northern initiatives, Budget 2009 proposes to create a new regional economic development agency for the North with a five-year budget of $50 million. The budget also proposes to invest $100 million over three years in the Aboriginal Skills and

Employment Partnership initiative. This is aimed at combining efforts of the public and private sector to enhance skills and employment training of aboriginal Canadians. The mining industry has been a major benefactor of this program. A number of companies in diamonds, oil sands, uranium and base metals have drawn upon this tool in past years and we expect that they will do so in the future. The budget also invests $75 million in a new two-year Aboriginal Skills and Training Strategic Investment Fund. This fund will support short-term initiatives to help aboriginal Canadians get the specific training required for employment opportunities. It may take a bit of time to see how this fund is utilized and whether it can become as useful as ASEP. We welcome any measures that help companies and aboriginal groups work together in training and skills development. Our industry is the largest private employer of aboriginal Canadians in the country and

there is significant potential in the future to further broaden this mutually-beneficial relationship. CIM: What, if any, of the budgetary announcements might help mitigate some major cutbacks on the part of machinery and equipment manufacturers we’ve witnessed in recent weeks? Stothart: There are a few measures in the budget aimed at stimulating investment in machinery and equipment. The two-year, 50 per cent capital cost allowance (CCA) rate for investment in equipment by the manufacturing and processing sector, as announced in previous budgets, was extended a further two years through 2010 and 2011. This measure is relevant to a few Canadian mineral processing operations. The budget also proposes to eliminate tariffs on a range of imported machinery and equipment and it proposes a temporary 100 per cent CCA rate for computer hardware and systems software acquired by Canadian businesses before February 2011.

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upfront Q&A

CIM: Has the Harper government gone far enough? Stothart: We don’t feel that the budget went far enough in this area — there is more that could be done to encourage capital investment. In particular, the government could accelerate depreciation of equipment acquired by a broader array of sectors, including mobile mining equipment for example. The government could also provide a temporary tax credit or incentive to encourage modernization of facilities such as smelters and refineries. We are aware of other industry sectors who share this view and there may be potential for us to combine efforts on a broader theme in the lead-up to next year’s federal budget. CIM: In the area of sustainability, the budget provides $1 billion over five years to support clean energy technologies. Again, what potential benefits are to be reaped by the minerals industry in this area? Stothart: Overall, there was not a lot of new money in this budget aimed at clean technology development and implementation. For example, the wind energy industry is disappointed that the budget failed to expand the ecoENERGY for Renewable Power Program. Some remote mine sites could potentially have capitalized on such support. In terms of the $1 billion, five-year clean energy technology fund, a pri-

mary focus is likely to be on research and demonstration of carbon capture and storage technology. The thermal coal consuming sectors and the oil and gas industry, including oil sands mining companies, should be able to benefit from technological advances in this area. In the long-term, it is possible that a large portion of future greenhouse gas reduction targets for these sectors could be met through implementing CCS technology. Being able to address its greenhouse gas emission challenge is one of the ingredients to long-term vibrancy and prosperity for the oil sands sector. CIM: What other budgetary announcements does MAC deem significant to the mining industry? Stothart: There are a few other initiatives that may affect some companies and communities. For example, with respect to a new Canadian Securities Regulator, the government intends to open an office and to table a securities act this year that would allow willing provinces and territories to participate in the Canadian Securities Regulator. Budget 2009 also provides $1 billion over two years for a Community Adjustment Fund that will help mitigate the impacts of restructuring in communities, particularly those that are resource dependent. The budget also built upon a November 2008 announcement regarding payments

in respect of 2008 solvency deficiencies of federally-regulated pension plans. The measure should help affected companies smoothen asset value changes to stabilize short-term fluctuations in pension plan liabilities. Finally, in another technical tax matter, the budget proposes to repeal a section of the Income Tax Act dealing with the deductibility of interest in certain instances of financing foreign affiliates. This measure, when announced in Budget 2007, provoked some controversy and we are pleased that it has been repealed. This should be useful to some companies in the industry. CIM: If you had one suggestion to make to Stephen Harper and Jim Flaherty on behalf of the mining industry, what would it be? Stothart: There is always potential for the government to provide greater incentive for mineral exploration spending and capital investment. This could be accomplished through introducing new measures or through tweaking and fine-tuning the thresholds and definitions that surround existing measures. As well, direct support for the Canadian Mining Innovation Council would have been a welcome investment in our future productivity and innovative capacity as a key sector of the Canadian economy. We will continue trying to move things forward in these areas. CIM

Moving on up FNX Mining Company Inc. appointed William Shaver as COO, Gord Morrison as senior vice president, exploration and Catharine Farrow as senior vice president, corporate development and technical services. Already in various leadership roles at FNX, the three are expected to lead the company’s response to prevailing market conditions.

Michel Aubertin recently assumed the role of president of the Canadian Geotechnical Society. Aubertin is a Professor in the Department of Civil, Geological, and Mining Engineering at École Polytechnique, in Montreal, Quebec. He also holds the Industrial NSERC-Polytechnique-UQAT Chair in Environment and Mine Wastes Management.

Wendy Mathison has been named vice president of operations at Goldsource Mines Inc. A geologist with 25 years of experience, Mathison was, most recently, vice president of operations at Peregrine Diamonds Ltd. Over the years, she has amassed a wealth of experience in the legal, financial and technical aspects of resource exploration.

Robert Therriault has been named the vice president, finance and CFO of Blue Note Mining Inc., owner of the Caribou lead-zinc mines near Bathurst, New Brunswick. Therriault has extensive public and private sector finance, investment and administration. He has worked with leading banking and natural resource companies. February 2009 | 23

upfront P R O C E S S I N G b y J i m Ta l b o t

Grace under pressure An innovative solution saves Xstrata Nickel from downtime troubles at its Strathcona mill he last thing any resource industry operation can afford, especially in current market conditions, is process downtime. Unfortunately, the vast volumes of throughput and the speeds of processing seen at typical mills make the occasional glitch inevitable. This was the case at Xstrata’s Strathcona mill in Onaping, Ontario.

An abrasive problem At Strathcona, nickel ore is ground first in a rod mill and then in a ball mill. Coarse ore is separated from fine material in a cyclopack — a circular arrangement of hydrocyclones. Underflow from the cyclopack recycles to the ball mill for further grinding while nickel ore fines in the overflow proceed to further processing. The 70 per cent solid nickel ore slurry from the ball mill, fed into the bottom of the cyclopack, travels to the pot head, which distributes the material evenly into the hydrocyclones. The pressure at the top of the pot head is closely measured and monitored, because it is an indicator

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The pressure transmitter mounted on the pot head of the cyclopack monitors the performance of the hydrocyclones.

that things are running smoothly. Based on the pressure reading, operators turn individual hydrocyclones on or off. The number of working cyclones is adjusted to maintain optimum pressure, with more being deployed when the pressure rises and some being turned off when the pressure falls. Obviously, none of this optimization is possible if the pressure sensors don’t do their job. But the pressure sensors, as their name suggests, are under a lot of pressure. “At a flow rate of 200 to 400 cubic metres per hour, the slurry is literally sandblasting this pressure measuring system,” said Brian Couling, electrical and instrumentation supervisor at Strathcona. The solids in the slurry range up to 12.5 millimetres in diameter, but most are about 1.1 millimetres across, enough to create a highly abrasive jet of material that does little good to the sensitive instrumentation. To protect the pressure sensors and extend their life, Xstrata used to cover the measuring diaphragm with a rubber pad. But this was not enough to avert one or two failures a year that caused thousands of dollars per hour in downtime losses.

A nano-scale solution Recognizing Xstrata’s problems as an opportunity to push forward innovation, Ron Howarth, transmitter product manager for ABB Instrumentation in Canada, chose Strathcona as the testing ground for a new diaphragm coating material called Diaflex. The coated diaphragms were specified for ABB’s 2600T series flange-mounted pressure transmitter. For the trial,

upfront PROCESSING

The cyclopack separates desirable nickel ore fines from oversize. The oversize ore in the underflow recycles back to the ball mill. Project5:Layout 1

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Xstrata replaced the pressure sensor without adding a rubber protective pad for the sensing diaphragm. Instead, the diaphragm was coated with Diaflex â&#x20AC;&#x201D; a new-generation

material with superior anti-abrasion properties. A nanostructured material, Diaflex coating contains titanium and silicon of the nitrides class. Using a process called physical vapour deposition, ABB coats the sensorâ&#x20AC;&#x2122;s 316 stainless steel diaphragm to a thickness ranging from three to five micrometres. Diaflex does its job even at such infinitesimal thinness because its hardness is similar to that of diamond. Despite its durability and rigidity, the coating retains a good spring rate value because of the way it is deposited on the diaphragm. This allows the diaphragm to flex as needed in the normal course of its duty cycle process temperatures ranging from 100 to 700 degrees Celsius. The result: a durable diaphragm that can withstand the harsh rigours of the cyclopack without compromising critical sensitivity and accuracy in pressure measurement. This revolutionary ABB 264 pressure transmitter has been operating for over two years without the need for a rubber protective pad on the diaphragm. Impressed with its performance, Xstrata has converted all cyclopacks at Strathcona to ABB 264 pressure transmitters with Diaflex-coated diaphragms and is testing Diaflex-coated transmitter diaphragms in other mill applications. CIM

February 2009 | 25

upfront S U S TA I N A B I L I T Y by Ken DeVos

Good science A vital tool in meeting stakeholder concerns recent report in the national news media told of a proposed deposition of “toxic mine tailings” into lakes described as fish-bearing. It was alleged that the tailings could adversely impact the fish, and thus the lives and livelihoods of downstream First Nations communities. Such media coverage understandably raises concerns among stakeholders about mining activities. However, as was the case with the news item in question, the mainstream media’s reportage on mining sector activities can at times be one-sided, emotiondriven and short on facts — on top of which, sometimes the “facts” they report are just plain wrong. Criticisms of the mining industry are often based on old projects that are not map is used to indicate the site as community members are asked to identify areas that they use for indicative of current mining practices. The cultivation, firewood collection, water collection, leisure, etc. Furthermore, a lack of knowledge among journalists can reduce this highly complex topic to simplis- metals from the system. Of course, none of this information tic sound-bites. Willful biases are also sometimes at work, accompanied the stirring picture. The appropriate response by the mining company in stemming from certain non-governmental organizations question was to demonstrate that accurate and verifiable sci(NGOs) that appear to be opposed to mining on principle. Whatever its drivers may be, such misreporting and mis- ence had been employed to determine whether the tailings information can result in prolonged stakeholder consulta- posed a risk to the natural environment or to humans, such tion processes, significantly swelling costs and delaying as the hunters who might cross the tailings deposition site. project startup. This impacts the project’s financial viability, Regular verification of field data would then help reassure a crucial measure at a time when commodity prices indicate stakeholders that any changes would be noted and subsequently addressed. This highlights the importance of sitethat projects must pass a high hurdle rate. specific scientific work. It offers stakeholders hard data from Sound science which to draw conclusions. For instance, measuring preThe keys to successfully meeting stakeholders’ and regu- project baseline levels of contaminants can help a mining lators’ concerns lie in the application of good science, the company defend the quality of its post-project remediation proper explanation of issues, and the lucid and accessible and make the case that it is unfair to expect them to achieve presentation of facts. Consider the example of the lake dep- lower-than-baseline levels of harmful substances. osition of tailings. In this case, it is important that stakeholders understand that our standard of living depends on hav- Using visual aids ing the materials provided by mining. However, it is also a Experience shows that in explaining mining issues to stakereality that the process of mining inevitably creates waste holder groups, the use of analogies is valuable. For example, if products that must be disposed of in the best possible way. five lakes out of five thousand will be impacted by tailings depDepending on a wide range of factors, lake deposition just osition, it helps to literally show the contrasting ratio using may be the best way of disposing such waste. small objects, such as marbles. Graphs, charts and other audioConsider also the case in which an NGO published pic- visual aids are also helpful. These days, computer-generated tures of a red rust stain from water flowing out of a metal visualizations can be quite superior, realistic and affordable. mine’s tailings dam. The seep was no larger than many that Models and sketches can help stakeholders visualize what a could likely have been seen in road-cuts in the vicinity. project will look like — for example, the way a mine waste Moreover, the chief risk from tailings occurs when specific dump will look both before and after it is vegetated. metals are released to the environment, and not from the At one public hearing, the chairman placed a bottle of comiron precipitate. The iron precipitate actually helps remove mercially available water on the table and announced to the Photo courtesy of Golder Associates Ltd.

26 | CIM Magazine | Vol. 4, No. 1

upfront

Photo courtesy of Golder Associates Ltd.

SUSTAINABILIT Y

A research assistant conducts a household survey with a community resident.

people present at the hearing that the drinking water contained more total dissolved solids than would be found in the mine’s wastewater effluent. This dramatically and effectively represented the minimal expected impact of the mine’s activities. Stakeholders also need to understand the potential impacts of the alternatives. Some may prefer that the products they use, such as cars and computers, be built with materials sourced from distant places, where the mines involved do not have a direct impact on them. However, it

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needs to be understood that it may be better for the planet as a whole to have the mining carried out in jurisdictions where it will be done responsibly and with minimal environmental impact — which may mean mining closer to home. It may also be necessary to explain alternatives for mine waste storage. The facts on how acids, salts and metals can leach from exposed waste, and how sub-aqueous deposition can render the tailings or other waste inert, need to be collated and succinctly presented. Here too, comparisons help. For instance, if the issue concerns chemicals that may be released into surface water, it helps to compare the impact of the mining activity with that of already-established uses. The discharge from a typical mine closed in compliance with current regulations would have less environmental impact than the discharge from septic systems on a typical cottagecountry lake in northern Ontario. Does that mean that we should ban cottages on all lakes?

The role of third-party consultants Third-party consultants can play a strong role in helping stakeholders understand the potential impact of a mine. Some mining company executives prefer to do their own talking when it comes to managing stakeholder relations. While it is important for interested parties to put faces to a company’s name, third-party consultants may be able to dispel uncertainty more effectively. The fact that their credibility and ongoing business success depend on them remaining at arm’s length professionally helps stakeholders accept that they can get “the straight goods” from such consultants. Their specialized knowledge and experience enable them to provide detailed, well-considered, professional opinions that can stand up to the scrutiny of other participants, such as NGOs. They are also equipped to determine the best means for conveying complex technical information. With their experience on other mining projects, consultants may be able to illustrate examples of good environmental stewardship, such as the health of lakes previously used for tailings deposition. The demonstration of sound science, along with good listening skills, helps mining companies understand the concerns of stakeholders, including local residents, political leaders, other property holders and NGOs, and may help stakeholders put mining into the appropriate perspective. CIM

About the author Ken DeVos is a principal in the Mississauga, Ontario, office of Golder Associates Ltd. He is a professional geologist and a hydrochemist with an M.Sc. in applied earth sciences.

upfront OUTREACH by Malcolm Scoble and John Hadjigeorgiou

Open letter to the Canadian mining industry and government Investing in Mining People We write as representatives of the Canadian Mining Education Council (CMEC) and the Canadian Open letter to the Canadian mining industry andMining Innovation Council (CMIC).

government

CMEC is a long-established organization that represents the nine university-based mining engineering schools in Canada (The University of Alberta, The University of British Columbia, Dalhousie, Université Laval, École Polytechnique, Laurentian University, McGill University, University of Toronto and Queen’s University). CMIC Investing inindustry, Mining People was formed in 2008 as a pan-Canadian initiative between government and academia. Its aim is to network and collaborate to advance Canada’s capacity for accelerating innovation in mining. Both Councils strive to maintain effective interaction with each other to promote synergies. We write as representatives of the Canadian Mining Education Council (CMEC)

These two national councils have both recently identified an urgent need to communicate with the Canadian and the Canadian Mining Innovation Council (CMIC). mining industry and government. This open letter is based on extensive discussions that have taken place between andiswea urge all parties to carefully consider that this message. the councils recently, CMEC long-established organization represents the nine universitybased mining engineering schools in Canada (The University of Alberta, The

seriouslyof concerned that the onset of the global economicLaval, recession willPolytechnique, promote a response The councils are University British Columbia, Dalhousie, Universite École for mining students to gain employment experience may radically reduce the opportunities from industry that Laurentian, McGill University, University of Toronto and Queen’s University). during and after CMIC their studies. was formed in 2008 as a pan-Canadian initiative between industry, government and academia. Its aim is to network and collaborate to advance

both to understudent recruitment, the mining industry dramatically In previous recessionary Canada’s cycles capacity for accelerating innovationreduced in mining. Both Councilsfor strive s mining of several of Canada’ the survival graduates and graduating students. This strategy not only threatened maintain effective interaction with each other to promote synergies. schools, but has also contributed significantly to the current human resources crisis affecting the very health of the industry. In recent mining schools succeeded in raising identified their recruitment levels to meetto indusTheseyears, twothe national councilshave have both recently an urgent need try’s growth, andcommunicate enrolment across Canada is at record levels. with the Canadian mining industry and government. This open letter is based on extensive discussions that have taken place between the

In the recent past, the Canadian and miningtoschools haveconsider succeeded in message. developing a notable councils recently mining and weindustry urge all parties carefully this degree of collaboration in human resources development. CMEC and CMIC together are requesting that the mining industry, its professional institutions and the respective governments strategy nurtures the develThe councils are seriously concerned that the adopt onseta of the that global economic opment of the next generation of mining engineers. If we repeat the mistakes of the past by not placing recession will promote a response from industry that may radically reduce adequate the priority on sustaining the recruitment and education of the of committed mining students, opportunities for mining students to next gaingeneration employment experience during and then the Canadian mining is at risk of losing its global prominence in the future. The recruitment of students afterindustry their studies. in the future will be dramatically impaired. This current recession provides an opportunity to take innovative measures and demonstrate the value that the Canadian industry industry places on its highly qualified people. In previous recessionary cycles mining the mining dramatically reduced student recruitment, for both undergraduates and graduating students. This

The councils urge industry jointhreatened together in ensuring an adequate opportunity for mining students to gain strategy not to only the survival of several of Canada’s mining schools, industrial experience through employment this year. but has also contributed significantly to the current human resources crisis affecting the very health of the industry. In recent years the mining schools have succeeded in raising their recruitment levels to meet industry’s growth and enrolment across Canada is at record levels.

Malcolm Scoble Chair, Human Resources Group Canadian Mining Innovation Council

John Hadjigeorgiou Chair Canadian Mining Education Council February 2009 | 29

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upfront TEC HNOLOGY by Dan Zlotnikov

Help from CELP Kupol applies new CANMET technology o drilling program, no matter how extensive, can guarantee a given deposit will live up to expectations. And since the capital costs of developing a property can run into billions of dollars, it is no surprise that mine operators strive to minimize their exposure to risk whenever possible. But one of the undesirable implications of the endeavour to decrease risk is a reluctance to use new and promising, but as yet unproven methods and technologies. It is all the more rewarding, then, when the bold and informed choice of such technology pays off, as it has in the case of Kupol, a gold-silver property now owned by Kinross Gold in Russiaâ&#x20AC;&#x2122;s Far East. Discovered in 1995, Kupol is located soprema_cim_magazine.pdf 1/23/09 about 7,300 kilometres East of Moscow

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View of the Kupol plant site

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February 2009 | 31

upfront TECHNOLOGY

and about 200 kilometres Southeast of Bilibino, the nearest city. The project is marked by the harsh weather conditions characteristic in this very remote region; the annual average temperature is -13º Celsius, but that is positively balmy when compared to the lows of -58º Celsius that are often reached during the eight months of winter. Still, the challenges and associated costs of running a mine in such a remote and unforgiving environment were compensated for by the high grade of the deposit. Today Kupol averages 14.95 grams per tonne of Shipping routes gold reserves and 180.4 grams per tonne in silver reserves. The deposit’s promise captured the interest of Bema Gold, an intermediate gold producer based in Vancouver, BC. After purchasing a 75 per cent stake from the autonomous Chukotka regional government in 2002, Bema continued to develop the property, and had completed a feasibility study by May 2005. In July of 2005, the company became aware of a new technology being developed by CANMET, said John Rajala, Kupol’s mill manager at that time. The technology, developed by gold researcher Guy Deschênes and his colleagues, was called CELP (CANMET Enhanced Leaching Process), and it promised to have a significant impact on Kupol’s operations. The challenge presented at Kupol involved the high grade of the ore. The recovery of a significant proportion of

the silver was going to require a great deal of cyanide, which the operators would then have to destroy. To address this, the original plant designs called for the incorporation of an acidification-volatilization-recycling (AVR) system, by which cyanide would be recovered and reintroduced into the leaching process. At the time the plant was being designed, AVR was an established technology, however “There were only two such known operations in the entire world,” explained Rajala. “We visited one of them in Argentina.” But while AVR would noticeably decrease the project’s operational costs, it would also require an increased capital outlay, as the unit was expected to cost $5 million. “Today it would probably cost much more,” added Rajala. To mitigate these costs, Deschênes and his team proposed making a chemical change to the leaching process itself. The plant design would remain largely unaffected, as would the Best minds, best practices, best products in operating costs and the gold extraction sustainable energy innovation! rate; however CELP would allow Kupol to cut its cyanide usage in half. In addition, silver extraction rates were Be among the best and the brightest from around the Mike Bossy - acclaimed NHL hockey player and expected to increase slightly. world for a “not to be missed” conference and trade show. motivational speaker. The 2009 conference will profile speakers, presentations The challenge, explained Deschênes, Hana Gartner - Moderator - award winning and workshops examining nuclear power as part of the Canadian journalist. lay in the silver minerals present in the energy mix for a sustainable future. Lorne Elliot - Entertainer - one of Canada’s best known ore as sulphide and antimony comFeatured guests include: comedians. pounds. These minerals are resistant to Dr. John Root - internationally respected scientist with Evraz Place Canada’s National Research Council, and instrumental cyanidation, and slowed down silver March 16 &17, 2009 in the development of neutron diffraction methods for Regina, Saskatchewan extraction significantly. CELP was industrial applications. To register as a conference delegate or for a trade show developed to facilitate the dissolution Thomas Homer-Dixon - author, expert in the field of booth, visit www.Enercanwest.com international relations and global security, Professor in of silver in these compounds, allowing or call (306) 543-1567. the Centre for Environment and Business in the University for faster and more efficient extraction of Waterloo’s Faculty of Environment. of the metal. Co m e b e a p a r t o f t h e Fu t u re ! The study commissioned by Bema The Saskatchewan Environmental Industry and Managers Association showed that operating costs would Growing Saskatchewan’s environmental business. remain virtually unchanged, but there

32 | CIM Magazine | Vol. 4, No. 1

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would be an impact on the capital costs of the project. Namely, the $5 million AVR system would be rendered unnecessary. The mill and extraction plant began operation in May of 2008, following the February 2007 acquisition of Bema by Kinross Gold. By the time the 2008 third quarter results were released, production was well over a million gold equivalent ounces and Kinross was on track to produce 1.8 to 1.9 million gold equivalent ounces in 2008. As Rajala commented, the plant results were better than those seen in the lab. By all appearances, the choice of CELP seems to have been a worthwhile investment that brought rich dividends. With the upcoming publication of another paper by Deschênes and Rajala, Deschênes expects increased interest from other gold-silver mine operators. Now that the technology has proven itself, more companies will be willing to try the technique. Awareness of the CELP technology may influence plant design for future operators as well. Most notably, Rajala said that the long leaching time — approximately 116 hours — could be decreased to account for the faster results produced by CELP. “At Kupol, we had already designed the leach circuit based on conventional leaching technology. It was too late to change it,” Rajala explained. “We probably could have reduced the amount of time with the CANMET-MMSL leaching process, but it was already incorporated in the design, the building was being erected and the equipment was on order.” In the end, Rajala said that he was happy for the added leaching time as it afforded more flexibility. Of course, the CELP technology is not a magic wand. According to Deschênes, the technique is only cost-effective in richer deposits, where the silver grade is expected to

remain above 50 grams per ton. The reason for this is that the amount of cyanide required for extraction is proportional to the amount of silver; too little cyanide, and the savings granted by CELP are consumed by the costs of using the technique. In the case of Kupol, Rajala said, the expectation is that the ore will remain rich in silver throughout the lifespan of the mine, ensuring that there is a long-term need for CELP at the site. Deschênes and Rajala said that work is already being done to further improve CELP. “There are some possibilities for further improvement, mainly in reduction of cyanide consumption,” they said. “If we can do that, we can reduce our cyanide destruction costs as well.” Initial testing has been promising and follow-up testing is underway. “If this works, it may also slightly increase the gold extraction rate,” they continued. “What we’re trying to do now is improve the reagent consumption because the extraction rate is already quite high and we think this is as good as we’re going to get. So now, we are trying to reduce our operating costs.” Deschênes said that one other company had also looked at the CELP technology but had chosen not to use it because of its operation’s already low cyanide requirements. However, the original CANMET study took place in 2004, when silver was priced at around $6 ounce. Now that this price has almost doubled, he feels that a lot of operations would benefit from switching to CELP, as companies seek to improve their extraction rates to levels that have become cost-effective. Now that CELP has demonstrated its ability to decrease cyanide consumption and processing time, and offers the promise of further reductions in operating costs, risk-averse operators would be wise to take note. CIM

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Photo courtesy of Rio Tinto

innovation

Rio Tinto driverless train cabin view

Mining industry automation panel by Peter Diekmeyer ith human and financial capital in short supply these days, companies are increasingly expected to generate better results using fewer resources. For many, increased use of automation seems like a natural fit. To learn more about this trend and to get a feel for where things are and where they are going, CIM Magazine spoke with some of the industry’s top thinkers. Automation, brought on by increasingly sophisticated technologies and shifting industry economics, is steadily gaining prominence at many operations. These productivityenhancing initiatives range from new advances in information technology to remotely operated mining equipment.

Increased efficiency and flexibility “When looking at automation opportunities within the mining industry, it is crucial to distinguish between the short and the long term,” said Greg Baiden, whose credentials certainly put him in a position to know. Baiden is Canadian Research Chair in robotics and mine automation at Laurentian University and is CTO of Penguin Automated Systems Inc. Prior to holding those posts, he worked in Inco’s Mines Research Division. In short, he has watched developments in the sector closely for many years. 38 | CIM Magazine | Vol. 4, No. 1

“Right now with motor vehicle production in a freefall, financing tight and the overall economy slowing, mining companies are hesitant regarding new capital investments,” Baiden continued. “But over the medium and longer terms, we are going to see an explosion in the use of devices and machinery that can improve quality and replace human labour.” Charles Jackson, CEO of Quadrem International Ltd., agrees. “Because many minerals and resources are commodities that have determinant prices that are established daily by global exchanges, the more efficiently you extract and move them to market, the more profitable your company will be,” said Jackson. “Furthermore, over the longer term, demand is projected to grow so quickly that innovation on an advanced level will be needed to help meet it.” Jackson has a point. As a ravenous world marketplace consumes the output of more accessible ore bodies, miners will need to look for resources in increasingly inaccessible places. The trouble, explained Baiden, is that you can’t easily send people to a lot of those places. “One example is the bottom of the Creighton nickel mine in Sudbury,” said Baiden. “The mine extends almost 8,500 feet [2,591 metres] underground. Down there, the temperature is extremely hot, maybe 140 degrees

innovation is that it helps deal with a recurring industry challenge: labour accessibility. Given recent rising unemployment in both Canada and the United States this may seem unusual, but many commodity extraction players report having a hard time finding the right people at the right price, with the correct skill sets to fill certain posts. “The increased urbanization of a good chunk of the world’s population, particularly in the developing world, has been driving demand growth for our three products: copper, iron ore and aluminium,” said McGagh. The biggest labour deficit is projected to be in the trades and semi-skilled workers categories: a shortfall similarly faced in Canada and elsewhere on the globe. So Rio Tinto will have to compete hard for those workers. “It is hard to attract and keep the Virtual machine operation environment to allow right people,” admitted McGagh. multiple real time tele-robotic machine control Automation and labour “That’s particularly true in the highly accessibility challenges technical functions, a problem that is expected to worsen One big argument for the increased use of automation, when the economy starts to pick up again. In normal ciraccording to John McGagh, head of innovation at Rio Tinto, cumstances, when good jobs are available in the city, Photo courtesy of Penguin Automated Systems Inc.

Fahrenheit [60 degrees Celsius] and the humidity level is close to 100 per cent. When conditions get that rough, the temptations to find automated solutions, in which personnel can operate equipment from remote locations, are quite high.” Of course, such challenges pale when compared with those on the horizon. Among the more promising ore bodies that companies will eventually want to develop, many are located in even deeper mines and others lie under the ocean floor, a huge, undeveloped area thought to contain massive potential. “Don’t forget that 71 per cent of our planet is basically unexplored,” said Baiden. “There is one company [Nautilus] that is thinking about mining copper and gold a few miles under the ocean. But to do that, you have to automate.”

February 2009 | 39

innovation people increasingly don’t want to work for extended periods in the bush, or in other remote areas where many mines are located.” However, McGagh is adamant about one thing: though mining sector automation does compensate somewhat for tough labour accessibility, that is not its main benefit. “You cannot justify this just from a manpower standpoint,” he insisted. “You have to look at all of the combined benefits, such as quality of output, lower waste, higher levels of machine operability, lower levels of maintenance and the fact that machines run 24/7,

40 | CIM Magazine | Vol. 4, No. 1

before you can do an effective cost-benefit assessment of automation investments.”

Boosting mine safety through increased automation Christopher Curfman, president of Caterpillar Global Mining, has a slightly different take on the situation. While conceding that automation has a great future, he is a fervent advocate of speeding the process by starting right now. Worker safety is one of his primary concerns. “It is our customers’ number one priority,” said Curfman. “As a result, safety is also the number one priority of our autonomy program.” In fact, according to Curfman, automation often solves labour accessibility and safety concerns simultaneously. “The more that our customers are able to implement automation solutions, the more the safety performance of mine sites will be enhanced,” explained Curfman. “Not only will we be reducing the number of humans operating machinery, but those who will be engaged in the operations will be working from much safer environments.” As part of his overall responsibilities, Curfman oversees the worldwide engineering and development of large mining trucks, tractors, underground loaders and trucks, and other mining equipment. In this capacity, he has increasingly been seeing the writing on the wall: if extraction companies are going to automate, they are going to need new or upgraded equipment. “Caterpillar is striving to be a leader in automation at mine sites,” said the seasoned executive. “We are currently in the middle of our largest ever research and development program on autonomous trucks, dozers, drills and underground machinery, and are collaborating with key customers around the world on both surface and underground autonomy projects.” While worker safety is Caterpillar’s primary concern when addressing automation issues, increased efficiency and productivity are also major factors. “All autonomous machines will operate precisely as they were designed and will not be subject to inappropriate manoeuvres such as over-speed, operating against warnings, overloads and so on,” explained Curfman. “This will drive lower operat-

innovation

Photo courtesy of Caterpillar

Operations Centre (ROC) servicing Rio Tinto Iron Ore Operations 1,300 kilometres away in Perth. Many of the components for the mine of the future have now been assembled in the test mine, called A Pit, which lies within the West Angeles mine located in the Pilbara. Autonomous truck and drill commissioning of A Pit commenced in December 2008 with full capability expected to be reached in the first half of 2009, with ROC support coming later in the year. According to McGagh, when Rio Tinto Iron Ore ROC is completed, it will house at least 320 employees who will work hand-in-hand with their Pilbara-based colleagues, to oversee, operate and optimize the use of key assets and The C175 engine is the result of a huge research and development program by Caterpillar, and it will processes, including all mines, processing be the power plant for most of the large mining equipment. plants, the rail network, ports and power plants. ing costs and reduced costs per tonne, as well as increase Operational planning and schedulling functions are also the life expectancy of machinery.” slated to be based in Perth. Furthermore, machines don’t take coffee breaks. “An Still, according to McGagh, the Pilbara/Perth operaadditional expectation of autonomy is greater machine tions represent only the tip of the iceberg as far as innoavailability,” admitted Curfman. “Autonomous machines will vation at Rio Tinto is concerned. “Many of the world’s best be operating without the inefficiencies and interruptions ore bodies are maturing and fewer Tier 1 surface associated with human operators.” deposits are being discovered,” explained McGagh. “As a Still, Curfman combines his sense of immediacy regard- result, we will almost certainly see continued migration ing automation with a decidedly longer-term view. “Without from surface to underground operations. This, combined question, 2009 will be tighter,” he said. “However, research with the fact that many of the new developments will and development, innovation and automation are at the top encompass lower grade minerals that need to be hauled of our list at Caterpillar Global Mining. Our new electric drive truck models, upgraded mechanical trucks, automation programs, the new C175 engine family and the research and development to support these initiatives are still With over 40 years of engineering and manufacturing experience, IEM in place and progressing along our prooffers a complete range of bulk materials handling equipment for mining jected timelines.” Apron Feeders - Belt Conveyors - Belt Feeders - High Lift Conveyors

Rio Tinto’s mine of the future One of the most innovative automation initiatives underway is Rio Tinto’s “mine of the future,” which was announced by the company’s CEO, Tom Albanese, early last year. The move, which will help alleviate some of the company’s worker availability challenges, is a bid to maintain what it describes as “its position as Australia’s leading iron ore producer.” Several building blocks for Rio Tinto’s automated mine-to-port iron ore operations have been commissioned and will be phased in as they become ready. For example, mine operations at the Pilbara site will be controlled from a new Remote

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February 2009 | 41

Photo courtesy of Rio Tinto

innovation

Lineup of autonomous trucks at Rio Tinto's A Pit test mine at the Pilbara site in Australia.

longer distances, at a time when carbon constraints will deepen, means that the demand for increased productivity will be almost relentless.”

Automation within the office According to Jackson, surprising efficiencies for companies in the mining industries can be generated through automating their supply management processes. One obvious solution: “replacing manual paper-driven processes

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As you might expect from someone charged with looking into the future, given the rapid technology advances of recent years, Baiden is optimistic. The professor/entrepreneur is currently working on a mandate with the Canadian Space Agency that involves planning how one would construct and operate a lunar mining facility remotely from a location here on earth. That’s good news for Baiden, because among his pet projects at Penguin Automated Systems, are the communications systems that his company sells, which enable remote operators to exchange information with off-site machinery. “If you think it’s hard to find people willing to go to northern Canada to do mining work, just imagine how hard it would be to find volunteers to go work on the moon,” said Baiden with a laugh. “Seriously though, automation is the future. Better get ready for it.” CIM

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Le port de Cape Lambert dans la région de Pilbara en Australie-Occidentale

Panel sur l’automatisation dans l’industrie minière onsidérant la pénurie actuelle de main-d’œuvre et de capitaux, les compagnies doivent avoir de meilleurs résultats avec moins de ressources matérielles et humaines. Pour plusieurs, une plus grande utilisation de l’automatisation semble une solution naturelle. Pour en savoir plus sur cette tendance, le CIM Magazine a rencontré quelques visionnaires de l’industrie. La technologie n’est pas le premier mot qui vient à l’esprit lorsqu’il est question d’extraction minière. Sortir quelque chose de la terre puis la broyer et la transformer semble être des travaux de la « vieille école ». Toutefois, ceux qui visitent régulièrement des sites miniers ne peuvent que remarquer les grands changements au cours des dernières années. Des technologies de l’information aux équipements miniers commandés à distance, l’automatisation gagne du terrain. « En examinant les possibilités d’automatisation dans l’industrie minière, il faut absolument distinguer entre le court terme et le long terme », dit Greg Baiden, titulaire de la Chaire de recherche en robotique et automatisation à l’Université Laurentienne et technologue en chef chez Penguin Automated Systems Inc. Il travaillait auparavant à la division de la recherche minière chez Inco. Il connaît

44 | CIM Magazine | Vol. 4, No. 1

donc bien le secteur. « Avec la dégringolade de la production de véhicules automobiles et le ralentissement général de l’économie, les compagnies minières hésitent à faire de nouveaux investissements de capitaux. Cependant, nous verrons une explosion de l’utilisation d’appareils qui peuvent remplacer des humains. » Charles Jackson, directeur-général de Quadrem International Ltd., est d’accord. « En raison des prix des minéraux et des ressources déterminés quotidiennement par les bourses mondiales, plus votre exploitation et votre mise en marché seront efficaces, plus votre entreprise sera rentable », dit M. Jackson. De plus, à long terme, la demande devrait croître si rapidement qu’il faudra des innovations de niveau supérieur pour la rencontrer. » Il soulève un bon point. À mesure que les marchés voraces consomment la production des gisements accessibles, il faudra considérer des endroits de moins en moins accessibles. « Un bon exemple est la mine Creighton à Sudbury », dit M. Baiden. « La mine atteint une profondeur de près de 8 500 pieds (2 591 mètres); la température peut monter à 140º F (60º C) et l’humidité y est près de 100 %. Sous de telles conditions difficiles, il est tentant de recourir à l’automatisation; l’attrait d’opérer les équipements à distance

innovation devient très fort. » De tels plus, les machines défis ne sont rien lorsque autonomes ne connaissent l’on considère ce qui se pas les inefficacités et les pointe à l’horizon. Parmi les interruptions associées aux gisements futurs, plusieurs opérateurs humains. seront encore plus proTel qu’annoncé par le fonds ou même sous le directeur-général de la plancher océanique. Pour compagnie, Tom Albanese, cela il faudra automatiser. « la « mine de l’avenir » de Rio N’oubliez pas que 71 % de Tinto compte parmi les inila planète est encore inextiatives les plus innovatrices plorée », dit M. Baiden. en automatisation actuelleMême avec le chômage ment en cours. Les opéracroissant au Canada et aux tions minières du site États-Unis, les compagnies Pilbara seront contrôlées à d’extraction ont de la diffi- Modèle à l’échelle d’une chargeuse-transporteuse avec électronique à faible temps d’at- partir d’un nouveau centre tente et une pile à hydrogène culté à recruter les bonnes de télé-exploitation situé à personnes, à un bon prix et qui possèdent les habilités pour Perth, à une distance de 1 300 kilomètres. Des trains sans remplir certains postes clés. Le plus grand déficit de tra- conducteur achemineront le minerai de fer sur une voie de vailleurs sera dans les métiers et les tâches spécialisées. 1 200 kilomètres; la compagnie aura aussi des foreuses et « L’accroissement de l’urbanisation, surtout dans les des camions « intelligents ». pays en développement, pousse la demande pour le cuivre, Selon M. McGagh, l’exploitation Pilbara/Perth ne le fer et l’aluminium », dit John McGagh, responsable de la représente qu’une infime partie des innovations planifiées technologie et de l’innovation chez Rio Tinto. « Il est très dif- chez Rio Tinto. « De nombreux gisements de classe mondificile de recruter les bonnes personnes, surtout pour des ale arrivent à maturité et peu de nouveaux gisements de postes hautement techniques, et ce défi ne s’améliorera surface sont découverts », explique-t-il. « Nous verrons pas avec la relance de l’économie. Lorsque de bons postes alors plus d’exploitations souterraines et à teneurs moinsont disponibles dans les villes, les gens ne veulent plus dres dont le minerai devra voyager sur de longues distravailler dans les régions éloignées, justement là où sont tances. La demande pour une production accrue n’arrêtera les mines. » donc pas. » L’analyse coûts-avantages pour l’automatisation doit Selon M. Jackson, les compagnies peuvent faire des tenir compte, en plus de la main-d’œuvre, des effets com- économies substantielles en automatisant leurs processus binés de la qualité de la production, de la diminution des de gestion des approvisionnements, tout d’abord en remrejets, de la disponibilité 24/7, etc. plaçant le papier. Il est bien placé pour le savoir. Sa comChristopher Curfman, président de la division Caterpillar pagnie, Quadrem, exploite un réseau de distribution de Global Mining, a un point de vue légèrement différent. Il transactions qui comprend plus de 55 000 fournisseurs et commencerait l’automatisation dès maintenant. « La sécu- 1 100 acheteurs dont BHP Billiton, Alcoa et Rio Tinto. rité des travailleurs constitue la première priorité de nos Selon lui, les compagnies qui accèdent à son commerce clients », dit-il. « C’est donc aussi la première priorité de électronique bénéficient d’une banque de données et notre programme d’autonomie. » d’outils qui permettent aux professionnels du secteur Selon M. Curfman, l’automatisation règle souvent les minier de trouver des items et des fournisseurs plus effiquestions d’accessibilité et de sécurité en même temps. « cacement. Mieux encore, ils sont payés plus rapidement en Nous réduisons le nombre de personnes qui opèrent des raison du traitement plus rapide. équipements et, de plus, elles travailleront dans des enviM. Baiden est optimiste; ce professeur/entrepreneur ronnements beaucoup plus sécuritaires. Caterpillar cherche travaille actuellement avec l’Agence spatiale canadienne à être le chef de file dans l’automatisation aux sites miniers. sur un mandat qui comprend l’analyse de la planification Avec nos clients à travers le monde, nous poursuivons d’une installation minière sur la lune contrôlée à partir de actuellement un programme de recherche et de développe- la Terre. ment sur des camions, des bouteurs, des foreuses et des Ce sont de bonnes nouvelles pour M. Baiden. Parmi ses équipements souterrains autonomes. » projets chez Penguin Automated Systems, il aime surtout Alors que la sécurité des travailleurs constitue la princi- les systèmes de communication qui permettent à des pale préoccupation de Caterpillar, la compagnie recherche opérateurs à distance d’échanger de l’information avec des aussi un accroissement de productivité et d’efficacité. « équipements hors site. « Si vous croyez qu’il est difficile de Toutes les machines autonomes fonctionneront tel qu’elles trouver des gens qui sont prêts à aller travailler à des mines ont été conçues, sans dépassement de vitesse et de sur- dans le Grand Nord, imaginez ce qu’il faudra pour en charges. Cela abaissera les coûts d’exploitation et aug- envoyer sur la lune », dit-il en riant. « L’avenir est à l’automamentera la durée utile prévue », explique M. Curfman. De tisation; il vaudrait mieux vous y préparer. » ICM February 2009 | 45

RESOLVE scarab rover

innovation A geoscientist at a Canadian Space Agency operations centre reviews a terrain image and issues a command. The instruction, transmitted via satellite, is received moments later by the rover whose laser-based navigation and vision system generated the terrain data. Despite signal noise and delays characteristic of earth-tomoon communications, the rover maintains contact with the operations centre as it manoeuvres to a drill site. Compensating for the sloped terrain, it adjusts the allelectric dry drilling unit into a level position. A few hours later, the rover’s chemical plant heats the crushed regolith sample to 900 degrees Celsius while NASA researchers review the data reported by the gas chromatograph. o some, the idea of the Canadian mining industry playing an instrumental role in the future of space exploration seems like the stuff of Hollywood science fiction. However, the scene just described was actually one of many NASA field test scenarios conducted over a two-week period this past November on a lunar analogue site nearly 2,800 metres above sea level on the dormant Mauna Kea volcano in Hawaii. This, and other NASA field tests, relied on the collaboration of six Canadian companies, two Canadian federal agencies and one Canadian research institute. The reality is that space exploration holds valuable opportunities and crucial roles for this country's mining sector. Sustained space exploration will require a sustained supply of resources, creating some lucrative prospects for the mining industry.

The vision Taking its direction from the U.S. President’s Vision for Space Exploration unveiled in 2004, NASA has been researching, proving and creating the capabilities and technologies required for sustained human presence on the moon and eventually on Mars. While NASA could be given new directions and goals by the Obama administration, the current objective of sending human missions to the moon by 2020 is not likely to change dramatically. In addition to endorsing that goal, the Obama campaign space policy advocates private sector participation to improve capabilities and commercialization benefits to spur technological innovation. A recent, widely circulated MIT independent report titled “The Future of Human Spaceflight” also highlights the need to firmly establish the science and technology necessary to achieve human space exploration plans for the moon, Mars and beyond. "We want to change the way we carry out space exploration," said Bill Larson, deputy manager of NASA's In Situ Resource Utilization (ISRU) program. "In the past — including with Apollo — we took everything we needed into space with us, down to the last ounce. In order to really achieve sustained exploration, you have to be able to live off the land." The land that space explorers will need to live off will initially be the moon, or even possibly Mars. ISRU is based on the concept of using resources natively available in space to reduce the amount of materials that need to be launched and transported from the earth.

The field tests The Mauna Kea site was chosen as the location for the field tests because it features fine volcanic dust and terrain somewhat similar to the lunar regolith that might be found near a crater in the moon’s south pole. (It is speculated that such permanently shadowed craters may contain water in the form of ice.) The site is run by the Pacific International Space Center for Exploration Systems (PISCES), an international research and education centre dedicated to developing technologies to sustain life on the moon and beyond. The field demonstrations were intended to test and evaluate RESOLVE and OPTIMA — two projects focused on recovering oxygen from lunar soil. Larson explained why it may be better to produce oxygen in space when it is so abundant on earth. "We're learning to make oxygen out of soil. An outpost with four people in it would require a metric ton of oxygen a year. Even when we close the life support loop and recycle the carbon dioxide to retrieve oxygen, there are still losses in the system. And, it takes a large sum of money, with a lot of zeroes, to send that amount of oxygen into space." Oxygen has many other potential uses in an outpost setting, such as for producing drinking water or as energy storage in fuel cells. However, as Larson pointed out, the single largest use of oxygen is in propulsion. "A necessary, yet massive, component in rocket propulsion is the oxidizer, and thereby, oxygen,” he explained. “Eighty per cent of the launch vehicle's mass at lift-off is oxygen. If we can start refuelling in space, the rocket gets smaller and the costs go down."

The link to mining The high costs of moving material from the earth into space, coupled with the sheer volume of oxygen needed to get to and function there, generates the sort of voracious resource demands that the natural resources industry has long been familiar with. "This could be the first step towards commercializing the lunar surface and environment," speculated Larry Clark, manager of the Spacecraft Technology Development Lab at Lockheed Martin, who has been involved in ISRU initiatives. "Each kilogram of oxygen produced in space saves about 12 to 15 times that amount of oxygen required to launch it from earth.” February 2009 | 47

The challenge posed by the

harsh conditions is one frequently encountered by Canadian mining companies. He went on to explain why commercialized oxygen production in space could be a boon to NASA and space exploration in general. "A company, the mining industry or some collaborative venture could invest in an oxygen production plant on the moon, and sell oxygen back to NASA at a huge savings for them,” said Clark. “That savings in mass could be used instead to transport payload, experiments and people." Larson concurred on the potential of commercialization. “For commercialization, you’ve got to have a product that somebody wants to buy. Oxygen is certainly such a product in space exploration. As an employee of a government agency, it's not directly my job [to commercialize space]. However, if NASA can get a product cheaper, and doesn’t have to develop

ON THE COVER

and maintain that technology, it's a good deal for the agency and for the taxpayer.”

Canadian connection Canadian mining know-how and experience proved to be invaluable in the field tests. The challenge posed by the harsh conditions — of trying to manage separate, yet coordinated, activities in a high-altitude, windblown, dust pit accessible only by precarious dirt roads — is one frequently encountered by Canadian mining companies. Overall site management was handled by PISCES, but the well-tuned logistics of the Canadian team made it very easy for them to step up and provide assistance when needed.

Lunar mining and processing outpost

The CIM Magazine cover picture depicts an artist’s impression of a uniquely Canadian approach to the building and operation of a lunar mining and processing outpost. In this concept, miners teleoperate equipment located on the lunar surface from the safety of an underground facility, protected from the hazards of radiation, solar flares, micro meteorites and extreme temperature fluctuation. Penguin Automated Systems Inc. is investigating new, enhanced approaches to the construction of surface and underground lunar facilities. Using mining and processing

by Greg Baiden

techniques currently being used in Canada, this research could represent an important step towards enabling the commission and emplacement of vital lunar support infrastructure before human settlers arrive. In this model, the majority of the construction could be performed remotely from earth, eliminating exposure to hazardous environments and the requirement for lengthy stays on the moon by astronauts. This would dramatically reduce the risk associated with human planetary exploration, construction and mining. Once the majority of the construction is complete, astronauts could move into the outpost to conduct scientific research, prospecting, exploration, mining and processing, turning lunar resources into products such as water, rocket propellant, metals, ceramics, glass and solar cells.

Left to right: Dusty winds at the test site on Mauna Kea; Canadian team in a meeting; The RESOLVE crusher built by NORCAT and EVC is prepared for testing in the UHH high-bay.

Dale Boucher, director of innovation at Sudbury-based Northern Centre for Advanced Technology Inc. (NORCAT) and Canadian team lead, commented on the parallels. "It's still a logistics chain. There are many of the same issues [in mining]. How do you get people in? How do you get people out? Then, of course, you need to move equipment. Here we were in Hawaii, about 30 of us, and it's a mining guy who's out there showing everybody how to drive the forklift." NORCAT, a long-time provider of specialized mine training and mining technology development services, used its experience in managing and coordinating the Canadian team. Wellmanaged transportation and communications gave the team the flexibility to adapt and to provide assistance to other test

In addition, a safe and secure underground facility could also be used to develop experimental in-situ agricultural techniques that would enable long-term, self-sustaining lunar operations. This approach could significantly reduce the number of personnel that would need to be launched from earth for mining, construction and manufacturing purposes. The base could continuously grow into a much larger facility by utilizing in-situ resources to support underground farming and the manufacture of power system elements, building materials and repair components, all from within a protected underground environment. CIM The May instalment of “new frontiers of mining” will expand upon the concepts presented in this discussion.

Greg Baiden is the Canadian Research Chair in robotics and mine automation at Laurentian University and CTO of Penguin Automated Systems Inc. He has been developing ideas surrounding mining robotics and automation in harsh environments, on earth, undersea and in space for nearly 30 years in both the private and public sectors.

elements. For example, the 8x8 ARGO utility vehicle provided by CSA performed hours of mobility field tests without disrupting its availability to move equipment on site or to rescue other stuck vehicles. Keeping occupational health and safety in mind, NORCAT also supplied the Canadian team with highly visible red jumpsuits, making them easy to identify when help was needed.

RESOLVE and OPTIMA RESOLVE’s chemistry plant and OPTIMA’s two production plants, ROxygen and PILOT, deal with the reduction of iron oxides at temperatures between 900 and 1,000 degrees Celsius. Kris Lee, the project lead for ROxygen, described the basic process involved. "We have built hardware centred on the hydrogen reduction process. We introduce hydrogen into our lunar simulant. At high temperatures, it reacts with the simulant to produce water. We then capture the water and send it to an electrolysis system where it is split into hydrogen and oxygen. We keep the oxygen, because that's what we're after, and circulate the hydrogen back to the reactor so that we can use it again." The RESOLVE project explores technologies that might be needed for an autonomous resource-prospecting rover. The test situation described at the beginning described one of many drill hole tests conducted by RESOLVE. A space flightcapable descendent of this project might be used on a precursor prospecting mission in a few years. RESOLVE consists of several independently developed systems and subsystems, many developed with significant contributions from Canada's mining industry. The drill and crusher were developed by NORCAT and Electric Vehicle Controllers Ltd. (EVC). The navigation and vision capabilities are provided by a triangulation-LIDAR system developed by the Ottawa-based Neptec Design Group. Other communication elements, contributed by the CSA, CRC, Montreal-based Xiphos Technologies and Edmonton-based Virgin Technologies, provided the operations connectivity, simulating February 2009 | 49

innovation some of the challenges of real earth-to-moon transmissions. Finally, CSA PTOC participated in operational tests from its facility in Saint-Hubert, Quebec. OPTIMA uses the same hydrogen reduction chemistry as RESOLVE, only at larger volumes. It is exploring two approaches to the development of near outpost-scale oxygen production plants, referred to as PILOT and ROxygen. ROxygen, named for the concept of using regolith to obtain oxygen, has two production plants that can run in parallel. While one plant heats and mixes regolith to recover oxygen, the other could be loaded with a second batch. Each plant uses an auger for loading the regolith and a reactor auger for mixing. ROxygen’s current production rate is equivalent to 660 kilograms of oxygen per year — about two-thirds of the production needed for an initial outpost. PILOT also uses an auger for loading, but its reactor uses a mechanism similar to a cement mixer to facilitate the hydrogen reduction. A compact module, it is mounted on top of a mock-up lander platform — a configuration in which it might one day be used. PILOT's current production rate is equivalent to 330 kilograms of oxygen per year, or one-third of outpost scale. Larry Clark explained his vision for PILOT's future. "The entire system could be carried on a single lander launched from a single rocket from earth and landed on the moon independently from any manned system. You could land the thing CIM ad jan 2009:Layout 1 21/01/2009 3:26 PM Page and have it make oxygen, long before astronauts even arrive."

Harsh realities Unexpected events are the very things that people tend to expect during field tests. Laboratory tests simply cannot provide engineers with the same hard-earned lessons. Perhaps the most-cited lesson learned on Mauna Kea concerned the impact of the super-fine volcanic dust. Kris Lee explained. "Dust and dirt in an oxygen system are terrible. It's hard to keep it clean and make sure nothing gets to where that oxygen is, because almost anything will burn. Also, the dust here is very iron rich, even magnetic. It can get into the magnetic transformers in your power supplies and shut down your system, which we didn't anticipate. Our systems are somewhat dust-tolerant, but they were never made to withstand the wind-driven dust that we saw here." In spite of any unexpected glitches, all the projects managed to complete several batches of tests with positive results. If Canada’s mining sector wants to tap into the space resource needs of the near future, it will need to seek the real opportunities that exist now. That means getting involved right now. “These activities can be used to gather information and to help identify precisely where the opportunities lie,” said Boucher. “We need to take the realism of the mining industry and the optimism of the space industry and try to find common ground," added Jerry Sanders, ISRU lead at NASA. The countdown to space has already begun. Now is the time for Canadian mining to get on board as we set our sights 1 on the stars. CIM

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Photo courtesy of Arch Coal

innovation

Safety audit in progress at Arch Coal-Mac complex in West Virginia.

Innovative approach to safety shows why systems are not enough by Carmen Bianco t one time, a recordable injury rate of 0.5 (1 per 200,000 hours worked) would have been considered a spectacular accomplishment. However, today, many mining companies have set their sights on achieving the “perfect zero” in safety performance. There’s just one problem: what got us here won’t get us there. Companies are demanding more out of each worker than ever before, with less supervision. Downsizing, mergers, buyouts, closings, and the grim realities of the national and global economy all contribute to increasing “noise” in the system and an environment that is less stable and certain. Amid these challenges, developing and driving a culture that supports safety requires very deliberate actions and transformational leadership. Simply adding more safety systems or using more muscle, without acknowledging organizational and business realities, won’t move us to safety excellence. Getting to a “zeroinjury” workplace requires rethinking how we use the

systems we have and how we approach the safety performance mechanism itself. Most importantly, it will require a culture in which safety functioning is treated as a part of doing business.

The 2:00 a.m. test Safety systems are essential — indeed imperative — for achieving zero injury performance. At the same time, they are subject to the same pull of activities, conditions and events that influence other business processes and are effective only to the extent that they are aligned with the organization as a whole. The effectiveness of procedures is dependent on how they are perceived in the organization. (For example, is following them a part of standard operating procedure, or is it okay to be lax when things are busy?) Hazard removal is only as good as the infrastructure that supports it. (Is it easy or hard to get this equipment replaced?) The longevity of training depends on alignment with organizational priorities and practices. February 2009 | 51

innovation (Do supervisors support new ways of doing things or will employees meet resistance?) Safety systems thrive when they are both part of how we work and how we see ourselves. Injury-free organizations work at passing the “2:00 a.m. test” — which evaluates what happens on third shift, when most managers have gone home. Even with no one watching, does the employee use safety systems and procedures because it is the right thing to do? In the “2:00 a.m. organization,” employees frequently approach each other independently regarding safety concerns and move safety issues up the chain of command, even when the news is not good. Employees at all levels have ownership for safety outcomes. In other words, the culture itself drives safety functioning.

Four critical elements Getting to the “perfect zero” requires ideological alignment throughout an organization, from its most senior

leaders to the most junior employee at the coal face. It calls for transformational leaders who use a set of defined best safety practices, and employees who embrace peer-to-peer interaction and are motivated to reduce or eliminate hazardous exposure in their work environment. So, all said, what are the critical elements of a high-performing organization with a passion for achieving the “perfect zero”?

Organizational culture: To begin, culture can be defined as the unwritten assumptions that influence decision-making, attitudes and beliefs, and guide the behaviour of those in the organization. The major attributes of organizational culture are definable and observable. They are also measurable in a way that is predictive of safety outcomes. These include: • Procedural justice: The extent to which individual workers perceive fairness in the supervisor’s decision-making process.

ne injury is one too many. That was the core value that led to safety change at St. Louis-based Arch Coal, one of the USA’s largest coal producers. Contributing about 12 per cent of America’s coal from its 11 mining complexes in six states, the organization has historically performed well in safety with a total incident rate that ranks 60 to 70 per cent better than the U.S. industry average. Arch’s commitment to helping employees work safely and act responsibly was already evident in the company’s culture, exemplified by foundational initiatives such as subsidiary safety plans, cross-operational safety audits, and safety improvement process reviews that established mine-specific targets each year. Still, even with an industry-leading safety record, the organization was not satisfied. They felt they were having too many preventable injuries and that safety performance had plateaued.

Taking it to the next level In 2006, Arch Coal and its subsidiaries began efforts to engage and align each organizational level and build upstream measures to drive the “Leading with Safety” initiative. The process began with an organizational assessment of cultural characteristics that predict safety outcomes. This data provided a snapshot that helped the organization target improvement efforts. Diagnostic assessment then shifted to the organization’s leaders, measuring best practices and leadership styles that impact safety performance. Workshops and coaching sessions were conducted for these individuals to inspire action, improve critical skills and build alignment of safety goals. Simultaneously, over the course of two years, tailored behaviour-based safety processes were initiated at the major mining sites. Steering committees were selected at each location to develop a list of critical behaviours that could then be observed by trained peers on the job. Observations were anonymous and had no disciplinary repercussions. They concluded with feedback that addressed the safe and at-risk behaviours present. Data from these observations were tracked to reveal trends and remove barriers, with outcomes communicated back to the workforce. Each site had a designated management sponsor serving as the liaison between the steering committee and the management team, and a process facilitator represented either the hourly workforce or the frontline supervisory level. In addition, four key employees were trained as internal consultants. They now serve as experts in sustaining the process across all of the company’s subsidiary sites.

innovation • Leader-member exchange: The relationship employees have with their supervisors. In particular, this scale measures employees’ level of confidence that their supervisor will go to bat for them and look out for their interests. • Management credibility: Employees’ confidence that what management says is consistent with what management does. • Perceived organizational support: Whether or not employees feel that the organization cares about, values and supports them. • Workgroup relations: The employees’ perceived relationship with their co-workers. How well do they get along? To what degree do they treat each other with respect, listen to each other’s ideas, help one another out, and follow through on commitments? • Teamwork: The extent to which the employees believe that working with team members is an effective way to get things done.

Progress to “perfect zero”

• Safety climate: A scale that measures the extent to which the employees perceive that the organization places a value on safety performance improvement. • Upward communication: The degree to which communication about safety flows freely upward through the organization. Note that only three of the nine dimensions are safety specific. Organizations with low scores on these attributes experience higher rates of injury, and those with high scores (and thereby indicating better organizational function) experience fewer injuries. The important question is: how to improve the culture such that it supports “perfect zero” performance?

Leadership:

We know that leaders, sometimes unavoidably, create organizational culture and climate. They do so in every action, speech, decision and presentation, and by their every response to the behaviours they observe in the organization. Research has identified a set of leadership characteristics that predict organizational culture and safety performance — a framework within which the leader influences safety outcomes. This framework is comprised of three categories of leadership characteristics: • Personal safety ethic: Who the leader is (the emotional connection) and his or her value for people influence

Rather than focus on beating the competition or beating last year’s records, Arch believed it was time to reach for the ultimate goal of zero injuries and environmental violations. Out of this goal a “perfect zero” was born. Integrating the approach with the company’s overall safety processes and achieving employee buy-in has been critical. Arch sponsors annual summits for its subsidiary leadership teams, key personnel and representatives from the steering committees. It also holds annual safety management workshops and regional benchmarking forums for all subsidiary process facilitators. Improvements have included steering committee input on incident investigations, the revision of the safety audit format to include a behaviour-based component, and the participation of facilitators in cross-operational safety audits. To date, 914 subsidiary employees have been trained as observers, 22,671 observations have been conducted, and 688 barriers to safe performance have been removed. Facilitators report that employees have more enthusiasm and ownership of safety, and that leaders visibly demonstrate support. Communication has improved at all organizational levels and the company believes that the culture to eliminate at-risk behaviour is expanding. Ten Arch Coal subsidiary operations completed the entire year of 2007 without a single reportable safety incident. This proved that zero was attainable. Nevertheless, according to Arch, there is still more work to do until they achieve the perfect zero company-wide. CIM

February 2009 | 53

innovation safety decision-making, interactions with subordinates, the priority placed on safety, and how they drive success. • How the leader influences: How he or she motivates and inspires people to go above and beyond the letter of their jobs. • What leaders do: The most effective safety leaders exhibit recurring behaviours that display vision, credibility, action-orientation, collaboration, communication, recognition and feedback, and accountability. Research shows that a leader’s influencing style predicts his or her practices. Aggregated across leaders, this can predict the overall characteristics of organizational culture and safety climate. Our experience has shown that these characteristics can be developed among leaders wishing to become more effective safety ambassadors.

Supervisor development: Increasing demands on the individual worker and teams mean that traditional leadership methods and the cultural status quo are no longer sufficient; organizations need to change the type of leader they value and thereby develop. The midmanagerial/supervisory level is an especially important place to focus on, as leaders at this level most closely represent the organization to front-line employees. The things they say and do weigh significantly on how things are done in the mine. As an added challenge, many leaders in this position are promoted for their technical proficiency

rather than leadership skills. Initiatives that engage supervisors in safety employ many of the same principles as those associated with leadership development: assessment of best practices and leadership style, along with skills development and targeted coaching. What differ are the specific safety-critical behaviours that the supervisors themselves track and coach each other on.

Employee engagement:

At the end of the day, leadership is limited in its ability to provide coverage and even the best safety programs are only as effective as the level of employee buy-in. Engagement breathes life into the safety process and enables an organization to execute the particulars of its objectives. Employee commitment to safety can take on a wide variety of appearances and applications. Fundamentally, front-line employees can help measure and manage exposure at the working interface, assist in identifying solutions to safety problems and provide feedback about organizational systems and efforts. Engagement begins when organizations establish their concern for the employee, assuring that supervisors treat workers fairly and with dignity and respect. They also do this when they assure that the senior leadership and the organization demonstrate concern for employee wellbeing. These behaviours establish a good relationship with employees and foster a strong sense of reciprocity. In this environment, employees tend to go above and beyond their job description because they feel it is the right thing to do for their peers, leaders and the organization.

Getting started It is important to remember that achieving the goal of zero injuries is a marathon not a sprint. Continuous improvement and small significant steps are more important than short-term gains made for “show.” For leaders, this includes acting in a way that communicates high personal standards in safety, fostering a high level of trust in peers and direct reports and encouraging people to give honest and complete information about safety, even when that information is unfavourable. In the end, getting to the perfect zero is possible only by being, or becoming, a truly exceptional leader and organization. CIM

About the author Carmen Bianco is an executive consultant with BST, a global safety consulting firm. He works with companies to design safety intervention strategies. In 2008, Bianco testified about the importance of comprehensive approaches to safety before the U.S. Senate subcommittee on Employee and Workplace Safety.

54 | CIM Magazine | Vol. 4, No. 1

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Photo courtesy of Boart Longyear

innovation

Boart Longyear’s 4200 surface diamond drill

by Eavan Moore ince human beings first used primitive tools in an attempt to extract the earth’s bounty, we have been on a mission to make the work easier, faster, safer and more lucrative. Thanks to new developments in automation and wireless technology, we appear poised to usher in a new era in mining. And automation fever is likely to reach epidemic levels as increasing workforce shortages, more rigid safety standards and pressures to reduce costs drive industry’s efforts in this area.

Safety Heavy lifting, irritating dust and very large, very powerful machinery on the move — an increasing number of products promise to sidestep these potential health and safety hazards through automation. The design of Boart Longyear’s newest drill is squarely pitched at increasing the safety of drill helpers. This group suffers the largest percentage of injuries in the industry, according to Boart’s global product manager, capital equipment, Craig Mayman. The 4200 sur56 | CIM Magazine | Vol. 4, No. 1

face diamond drill rig features a hands-free rod handling system. With the aid of a wearable two-kilogram console, the operator can remotely pick the rods up, set them in place, break the joints and set the rods down after use, all from a safe distance away from the rig’s moving parts. “Rod handling has been the most requested rig improvement from drilling contractors and mine operators,” said Mayman. “This technology alleviates the most difficult aspects of the helper’s job, presenting both a safety and productivity advantage. Whereas manual rod handling tends to slow down over the course of the day, this design allows for the continuous repetition of the same motion without operator fatigue.” TR Minecom’s DACS600 collision avoidance system uses wireless technology to provide early proximity warnings to heavy vehicle drivers. Vehicles and personnel are assigned multipurpose ultra high frequency radio frequency identification (UHF RFID) tags. A dynamic anti-collision system (DACS) fitted to a heavy vehicle continuously searches for active tags in the area, which can be identified as long as the vehicle’s key is in the ignition. When

innovation

Photo courtesy of Caterpillar

tags come into range, the DACS sounds a pulsing alarm and flashes LED lights, alerting the operator. It also generates digital readouts indicating the number of objects in close proximity. Operating at 403 megahertz, the RFID tags emit signals strong enough to travel around corners. Operative distances of 50 to 100 metres are achieved with unobstructed lines of sight. According to TR Minecom’s Mirza Kozarcanin, the system was developed to avert serious collisions between heavy and light vehicles, a particular problem in underground mines where vehicles have no manoeuvring room. He claimed that some mines in South Africa require the fitting of collision avoidance systems on all vehicles. The U.S. Mine Safety and Health Administration recently approved TR Minecom’s communication system as “intrinsically safe,” a designation that, according to Kozarcanin, is quite rare.

Caterpillar tractor under remote control

In 2009, Caterpillar will release an Integrated Remote Control System (ICRS) for its D10T, D11T and D11T CD track-type tractors. The system will allow operators to start the engine, steer, brake, control the blades, flash the lights and sound the horn, all from a safely remote console. The basic system includes a primary transceiver and antenna, a remote control electronic control module (ECM), a relay block for auxiliary function control, an incab emergency shutdown switch and remote control mode indicator, an on-cab beacon that indicates when the machine is under remote control, and a ground-level service centre. For added safety, the system will immobilize a remotely controlled tractor when one of the emergency shutdown switches is activated, the off-board transceiver loses power, or other pre-defined disruptions occur. An optional avoidance system uses GPS to create electronic fences, identifying three-dimensional worksite boundaries that can be overridden for up to three minutes. Caterpillar spokesperson Sharon Hollings explained why the IRCS is unlike aftermarket add-on systems.

“Because it is fully integrated, it is designed to work with all the idiosyncrasies of a specific vendor’s control systems. It is installed, supported and warranted by Cat, so the local Cat dealer would actually maintain the equipment, if needed.”

Efficiency With operations keeping an increasingly tighter hold on the purse strings, anything that reduces the guesswork involved in exploration or mining or that can free up valuable human resources, is a welcome innovation. The Surface Wave Intelligent Profiling System (SWIPS) from Montreal-based Micromentis promises to do just that when it comes to drilling. The portable solar-powered system propagates surface waves through rock using an impact generator. It gathers data through 16 wireless sensors, offering clues to the best spots for drilling. “The technology can determine the physical and mechanical properties of any solid and identify its geological structure,” explained Daniel Rioux, president and CTO of Micromentis. “Knowing those properties, one can identify a rock type for that structure. Many companies are reducing or even halting exploration. With our technology, you can cover a lot of area at low cost. Once sites have been prioritized, more strategic drilling can be carried out. When the economy recovers, companies will be in a better position to start more serious exploration, because they will already know the geological structure.” For companies a little further along the developmental trajectory, DEM Solutions offers a way to minimize expensive equipment testing with its brand of discrete element method simulation software, EDEM Version 2.1. It is used to model, analyze and visualize the interaction of bulk solids without having to build successive physical prototypes. Users can import CAD models of real particles, and add other physical properties to form and store model particles. These can be recalled for behaviour simulations of handling and processing equipment. “EDEM is capable of simulating systems with over a million particles using stanTransport EDEM simulation dard desktop multiprocessor hardware,” said Dolores

February 2009 | 57

Struckhoff, DEM Solutions’ marketing and communications manager for the Americas. It can also help to improve the performance of equipment already in use, reduce wear, avoid downtime, minimize power draw and prevent dust generation. And EDEM is fast. Engineering manager at bulk materials handler Benetech, Inc., Matt Clarke, discovered that DEM Solutions’ system ran 80 times faster than their previous one on the same hardware. “EDEM’s greater sophistication will allow us to create far more accurate models in a fraction of the time we used to spend,” he said. Since December 2008 Komatsu’s FrontRunner Autonomous Haulage System has been on trial at Rio Tinto’s Pilbara project in Australia. Part of the company’s “mine of the future” program, the iron ore operation will eventually be a mouth-to-port facility, with driverless trains and trucks controlled from 1,300 kilometres away. Komatsu’s driverless trucks, however, can also be used in more conventional operations. Equipped with FrontRunner, Komatsu’s 930E-4 truck can be remotely computer controlled to navigate a complex mining environment and deliver a 290-tonne payload, travelling at up to 64 kilometres per hour. According to Hiroshi Sunada, Komatsu public relations manager, the driverless vehicles feature a navigation system, a vehicle controller and a wireless communi-

Photo courtesy of Komatsu

innovation

Komatsu’s FrontRunner Autonomous Haulage System

cator. A GPS and wireless communication network, along with the servers that keep the system running, are located in the office. This enables the operator to control the truck from anywhere, given an adequate connection — an attractive prospect for remote operations with employee retention headaches.

Flexibility Recognizing that operations adopt automation at their own pace, suppliers also offer flexible products that work in conjunction with more conventional systems. Terex® Reedrill’s conventional MK7 jumbo drill can be converted to computer-assisted mode. Once drilling patterns are programmed, the computer determines the most efficient path, sets and holds drilling angles and calculates the footage drilled. While still requiring human direction, the machine greatly accelerates and improves the determination of the best pattern layouts, penetration rates and drifter mapping. Terex regional manager for Canada Jim Laroche said that the converted drill comes with two different automation options. In the more fully automated mode, the booms and feed operate on a predetermined pattern, drilling an entire face before the operator has to manually drill any missed holes. “It makes three attempts to drill a hole before moving to the next one,” he explained. “With the computer assist, the boom and feed are operated manually. The operator can physically see his movement or the position of the feed on the screen. The angles and face pattern are recorded as you proceed to drill the pattern.” According to Terex, computer assistance improves the MK7’s productivity and reduces manual set-up time. Maintenance is also more efficient. Hydraulic and electric components are accessible from ground level, and the time required to commission and shim the feeds between 58 | CIM Magazine | Vol. 4, No. 1

innovation

Photo courtesy of Terex

scheduled maintenance intervals has been cut from eight hours to less than two. Kenwood Electronics also offers to bridge the analog-digital gap with its Nexedge radio systems. The product line, which includes NX-200/300 two-way radios, can operate in analog mode to interface with existing equipment at mines where radio system migration is underway. However, operating in digital mode, it delivers tighter security, error-corrected signals, simultaneous voice and data transmission, and digital trunking capabilities. In mixed mode, a radio monitoring a single channel can receive conversation from both analog and digital radios. Ron Rickward, Kenwood Canada’s assistant manager, engineering and techni- Terex conventional MK7 can be converted to computer-assisted mode. cal services, communication division, explained that communications can be established services. The system is already ready for the 2011 both within and between mines using an IP network to change to narrowband communications mandated by link multiple sites. “If you put in a repeater system that the U.S. Federal Communications Commission and has trunking mode, then multiple sites can be linked Industry Canada. While the fully automated mine may still lie well in the by IP network. As your tunnels become longer, you can put up another repeater and extend the range deeper future, there is clearly increasing interest in technical into the mine,” Rickward elaborated. A 16-site, solutions that can help make mining less dangerous, 60,000-ID network can be built on existing assets and more efficient and flexible. CIM

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February 2009 | 59

MAC economic commentary The economic downturn — two unknowns To mining company managers, an economic downturn is old hat. Typically, a few years of economic growth lead to a year or two of stagnation and low mineral demand and prices. Mining projects are put on hold until the price and availability of labour and materials return to a sound footing. Other variables, such as wars, strikes and technological shifts can exacerbate or mitigate this cyclical movement of mineral prices. The current economic turmoil, however, is not a traditional business cycle. Yes, the real economy is slowing in a traditional manner. Manufacturing is in recession and overheated costs have dampened investment in natural resource development. Falling mineral and stock prices have made the raising of new equity capital and exploration financing difficult or unfeasible. In Canada and overseas, mine development has been postponed or cancelled and companies have entered a “batten down the hatches” mode. Credit Suisse estimates that $50 billion in capital spending in mining — two-thirds of announced global commitments — would be delayed in 2009. Beyond this cyclical slowness, though, two new variables make the present downturn tougher to gauge and recovery time frames more difficult to predict. The first new variable is the collapse of key elements of by Paul Stothart the U.S. financial system and its spill-over effects. Many factors in the United States, including weak governance and ethics in financial institutions, aggressive government housing policies and untenable fiscal and trade deficits, have led to near-trillion dollar liabilities in foreclosures and bailouts. Few analysts offer reliable predictions on the amount of time required to bring stability, good governance and opti-

mism to the financial institutions. The restoration of healthy capital markets is a necessary precursor to enhanced investment in a capital-intensive sector like mining. While the theme of global financial instability has dominated headlines, the impact of the second new variable — namely, the role of China — has received less attention. Until the most recent decade, the “global economy” essentially included Europe, the United States and, to a lesser extent, Japan. No other region had the consumer or industrial heft to drive mineral prices or shorten the duration of a global downturn. Now, after exhibiting 15 consecutive years of double-digit economic growth, China has become a part of the global economy. This is the first recession in modern history in which an economy outside Europe and the U.S. could play a significant catalytic role. But how significant will its effect be? On the bullish side, an estimated 13 million Chinese people are moving from rural to urban regions each year. Despite staggering expansion over the past 15 years, China exhibits relatively low metals intensity in comparison to Western countries. For example, China still has 76 times fewer cars per 1,000 people than the United States and 20 times fewer computers per capita than Canada. There is significant internal demand for metals and minerals for infrastructure and consumer/industrial products. Chinese capital controls are strong, the banks have healthy balance sheets, and the corporate and consumer sectors have low debt loads. The $586 billion U.S. economic stimulus plan announced by the Chinese

government in November reinforces the notion of the country playing a significant global catalytic role as an investor in massive infrastructure projects. In railways alone, China plans to invest $300 billion in expanding its national network by 28 per cent by 2010. On the negative side, some contend that Chinese growth has long been artificially stimulated through free business borrowing costs and that the country has built considerable manufacturing over-capacity and sells its products below true cost. Others point to widespread business corruption, the rewarding of communist party players and the risk of social unrest and disruption that could follow any significant rise in unemployment. China has also erected trade barriers in recent years to guard domestic inventories of key metals. Significant stockpiles of zinc, copper and nickel are reportedly accumulating in Chinese warehouses. The trajectory of these two new variables — the stability of the financial system and the shape of future Chinese demand — will help determine the magnitude and lifespan of the downturn that the global mining industry is experiencing. These factors aside, most observers anticipate slow economic conditions and soft prices until 2010. CIM

About the author Paul Stothart is vice president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues.

February 2009 | 61

supply side Fewer mines mean less business for suppliers Mining suppliers across Canada should be aware of the proposals of the Government of Ontario, which might result in the withdrawal of huge areas from mineral exploration. What happens in Ontario may spread across the country. On July 14, 2008, Ontario Premier Dalton McGuinty announced a major new plan for the mining industry in the province. The initiative has three facets: government revenue sharing with aboriginals, land use and revisions to the Ontario Mining Act. The industry is happy that government is planning to share its future revenues from industrial development in northern Ontario with First Nations, who constitute the largest population group in the far north of the province. This is a model that has been developed in Quebec, Alaska and elsewhere. It helps aboriginal people accept and participate in economic development, which is the key to improving their living standards. The land use proposals are, however, another matter, depending on how the issue is handled. Premier McGuinty proposes to withdraw 50 per cent of the boreal forest area in the north of the province from any industrial development,

A page for and about the supply side of the Canadian mining industry

including mineral exploration and mining. The other half may be developed, but only with the approval of the local peoples. If lines are drawn on maps making territory off-limits to exploration and staking, the government will be offering aboriginal people revenues with one hand but taking 50 per cent of them away with the other. Unlike the assessment of the agriculture, hydro or forestry potential, there is no way of knowing where potential mines will be found. Given that mineral exploration is non-invasive and mining takes far less than one per cent of the landscape, it is ridiculous to remove huge tracts of land from mineral exploration. At a time when Ontario’s economy seems to be faltering, this is a most extraordinary proposal indeed. Rather than 50 per cent, the mining industry would be happy to leave 99 per cent of the land untouched, but 100 per cent needs to be accessible to exploration and development. A wise decision in this respect would benefit all Ontarians and, for that matter, all Canadians. The third part of the proposal concerns revisions to the province’s mining act. There are clear public and aboriginal concerns over access to land for which surface rights are owned or over which traditional activities have taken place. I believe that some compromise on this point will be acceptable, since the current situation is hardly good for the industry. However, if these changes result in loss of tenure of development and mining rights, the industry in Ontario will be crippled and mineral exploration expenditures, now totalling five per cent of world investment, will plummet. The rest of Canada should be watching what happens in Ontario. If these issues are handled improperly, other jurisdictions may follow suit, dealing a severe blow to the exploration and mining industry across the country. If you are wondering what a mine means to mining suppliers, consider the report entitled “The Economic Impacts of a ‘Representative Mine’ in Ontario” issued by the Ontario Mining Association in December 2007. They modelled a mine with annual revenues of $270 million that hired 480 people. This operation also created 1,103 jobs in mining supply firms. There are more jobs these days in mining supply than there are in mining. Thus, suppliers have a vested interest in seeing that governments act responsibly to ensure that their jurisdictions remain attractive to exploration and investment in mining. CIM

About the author Jon Baird, managing director of CAMESE and president of PDAC, is interested in collective approaches to enhancing the Canadian brand in the world of mining. 62 | CIM Magazine | Vol. 4, No. 1

first nations What’s in a name? The rock that kills The Inuit translation for uranium is “the rock that kills.” I tell you this not as a lesson in linguistics, but rather to set the stage for the challenges faced by the Cree Mineral Exploration Board, organizers of an educational expedition on the subject at the Canadian Aboriginal Mining Association (CAMA) conference in Saskatoon last November. The goal of the expedition was to assist a group of trappers from the Mistissini First Nation to get answers to their questions and concerns regarding the mining and exploration of uranium. Personally, I was pretty excited about the opportunity of attending the session because, although I do have a mining engineering background, my exposure to uranium exploration and mining is nonexistent. The impetus for the expedition was the significant amount of uranium exploration that is occurring within approximately 240 kilometres of Mistissini First Nation in northern Quebec. The bulk of that exploration is concentrated around by Juan Carlos Reyes the lakes, rivers and streams that flow into or around the community. Understandably, its members are concerned about the health and environmental ramifications of this exploration. In a search for answers, we went to the region where most of the world’s uranium can be found. The Prince Albert Grand Council (PAGC) tribal region, also known as the Athabasca Basin in northern Saskatchewan, hosts the largest high-grade uranium mines and deposits in the world. Cameco, the world's largest low-cost uranium producer (accounting for 18 per cent of the world's uranium production), operates three mines and one dedicated mill in the area, with the collaboration of the surrounding First Nations. Among the major mines are Cameco's flagship McArthur River mine, the developing Cigar Lake

mine, Rabbit Lake mine and the world's largest uranium mill at Key Lake. As well, Cameco has purchased large amounts of mineral rights in northern Quebec. Our efforts focused on stimulating dialogue between the communities from northern Saskatchewan and Cameco. We felt that it would be most beneficial to have the delegation talk to an aboriginal leader from the region, so our first meeting was with Don Deranger, PAGC’s Vice Chief, who has been instrumental in helping develop the mining industry in northern Saskatchewan in a way that benefits and strengthens aboriginal communities and its members. The Vice Chief’s extensive experience in the uranium mining industry is a shining example of the power of just one aboriginal voice. Our delegates were fascinated with Deranger’s experience and strong bond with his traditional lands. He spent years hunting, trapping and living off the land, which our delegates could relate to because many of them still hunt and trap in the traditional territories. Also, having worked in the uranium mining industry for nearly 30 years, Deranger was able to address many of the participants’ questions and concerns. We felt this meeting was the most important of our expedition because the delegates were able to relate to someone with the Vice Chief’s background and experiences. Regarding health concerns, Deranger explained that uranium is one of the safest minerals to be mined in Canada, due to the stringent regulations set by the Canadian Nuclear Safety Commission. To illustrate the complexity surrounding uranium mining, he cited one of the uranium mines under devel-

opment as an example. Although it will be opening within the next two years, the deposit was actually discovered in 1977! Our final meeting was with Gary Merasty, vice president of social responsibility at Cameco. Previously, Merasty was the Grand Chief of the PAGC. He organized a meeting with a team of managers and mine Elders that he hoped would be able to answer any remaining questions our delegates might still have. In each of our meetings, we asked every person we met if they knew of anyone who had been sick from mining uranium, and not a single person was able to recall anyone. After the delegates were reassured of the highly specialized safety procedures the workers follow, they were more concerned with switching the conversation and focusing on how they could potentially benefit from this development. They were interested in being part of the development and not just sitting on the sidelines while the resources in their lands were being exploited. This mission was very successful. Based on the information gathered from Deranger and others from mining communities, the delegates were confident that the safety procedures in place were adequate and that uranium mining was in their best interest. Along the way, we discovered that the rock that was purported to kill has the potential of breathing new life and economic prosperity to Canada’s First Nation communities. CIM

About the author Juan Carlos Reyes is an aboriginal consultant with efficiency.ca and the organizer of Learning Together. He is passionate about human rights and works tirelessly to help improve the lives of Canadian aboriginal people.

February 2009 | 63

innovation Innovating through research CANMET-MMSL pushes the limits of the possible in Canadian mining The CANMET Mining and Mineral objective was to develop a toolbox of EFRB Sciences Laboratories (CANMET-MMSL) is technologies for underground mining. a branch within the Minerals and Metals Phase 1, completed in 2008, involved Sector (MMS) of Natural Resources an extensive search and evaluation of Canada. MMSL leads the government international knowledge, expertise in the sustainable development and and applicable technologies. Phase responsible use of Canada’s mineral 2, scheduled to begin in 2009, will and metal resources through leadset and focus research priorities ing-edge research and technology and technologies. development. Another research project comThe year 2007 marked our pleted in 2007, in a deep mine, 100th anniversary. Over the years, determined the effect of depth on the economic and scientific impacts exhaust emissions and the performof the work performed at CANMETance of diesel production equipment. MMSL worldwide have proven its effecThis study, the first of its kind, estabtiveness and competency. For lished that carbon monoxide emisexample, in 2007 sions decreased, whereas nitrogen Pewter medallion produced to commemorate the Centennial by Marcel Laflamme, CANMET-MMSL, oxides increased as a function of (1907-2007) of the Mines Branch, now CANMET. Michel Grenier and in conjunction depth. In addition, the study found Janice Zinck with Hydro-Québec, the Société de that conventional instrumentation to measure exhaust gas recherche et développement minier (SOREDEM) and seven concentrations is affected by the drastic changes in atmosmining companies — Agnico-Eagle, Areva, Barrick Gold, pheric pressure encountered when travelling up or down in Cameco, Vale Inco, IAMGOLD and Rio Tinto — established a deep mine setting. a new initiative on explosive-free rock breakage (EFRB). The Among the projects currently underway at CANMETMMSL is a Green Mining Initiative that addresses mounting concerns, such as the mining footprint, water quality, waste management and mine rehabilitation. Proactive, innovative technological solutions are needed to advance sustainable mining while reducing operating costs and long-term liability, to meet increasingly stringent environmental standards and regulations, to increase value added and to protect workers. Building on the success of multi-stakeholder initiatives such as MEND (Mine Environment Neutral Drainage) and NOAMI (National Orphaned Abandoned Mines Initiative), expected benefits of the Green Mining Initiative include: less material mined and hoisted to surface; the minimization or better utilization of wastes; better treatment and waste management technologies; and enhanced knowledge of metal behaviour in air, water and soils that will significantly improve environmental performance and positively change public perception while decreasUniversity of Ottawa co-op student Stephanie Marshall transplants cattails as part of CANMET-MMSL’s research of ing liabilities. the use of organic waste materials for the development of shoreline wetlands in flooded tailings impoundments. 64 | CIM Magazine | Vol. 4, No. 1

innovation The Green Mining Initiative will involve the participation of the mining industry, federal, provincial and territorial governments, regulators, academics and non-governmental organizations. It is focused on four main research themes â&#x20AC;&#x201D; footprint reduction, innovation in waste management, ecosystem risk management, mine closure and rehabilitation. Another future initiative is an international research program on metal-contaminated lands. It will bring together a multi-disciplinary team from the industrial, scientific and regulatory communities. The objective will be to develop and assess innovative scientific methodologies and technologies to quantify and assess the liabilities associated with metal contamination in terrestrial ecosystems and to mitigate potential impacts on the environment. Metal bioavailability in terrestrial ecosystems and the potential for toxicity are not well understood, and there are few standardized methodologies to assess the chemical speciation, bioavailability and toxicity of metals in soils. Regulatory initiatives are moving forward in the face of scarce scientific underpinnings and mostly inadequate tools. MMSL intends to continue collaborating with the mining sector to research and develop the theoretical understanding of and innovative solutions to the challenges associated with mining. MMSLâ&#x20AC;&#x2122;s main areas of expertise are:

â&#x20AC;˘ Research and development on a wide range of processes and technologies involved in extracting ore from the ground and transforming it into concentrates, mineral products or metals. â&#x20AC;˘ Ground stability monitoring and control, mine mechanization/ automation, mine air quality and ventilation, and coal mining health and safety. â&#x20AC;˘ Metallurgical processing and minerals and metals recycling development, and applied mineralogy development and support. â&#x20AC;˘ Treatment of gaseous and liquid mine and mill effluents, including acidic drainage; mine decommissioning and rehabilitation and scientific input for developing environmental policies and regulations pertaining to metals. â&#x20AC;˘ Sudbury Laboratory â&#x20AC;&#x201D; automation of mine ventilation and controlling diesel pollutants and toxic substances. â&#x20AC;˘ Val-dâ&#x20AC;&#x2122;Or Experimental Mine â&#x20AC;&#x201D; underground facility for in situ testing and research in a mining environment. CIM

About the authors Marcel Laflamme, Michel Grenier and Janice Zinck are program managers at Natural Resources Canadaâ&#x20AC;&#x201D;Laflamme in mine mechanization and automation; Grenier in underground mine environment; and Zinck in the mine waste management program.

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February 2009 | 65

HR outlook Innovation amid uncertainty The McKinsey Quarterly recently published an article entitled “Upgrading Talent: A downturn can give smart companies a chance to upgrade their talent.” The article highlights how workforce rationalization and other short-term costby Jean Pierre Chabot cutting efforts undertaken during downturns can jeopardize the talent strategies of companies. Evy Hambro, manager of BlackRock’s World Mining Fund, has suggested that current circumstances notwithstanding, commodity demand fundamentals are sound and that the global market crisis is actually a cash flow problem. Structurally heavily indebted, the mining industry faces many cash flow-related constraints, which could necessitate the restructuring of some mining companies.

Steps can, and must, be taken to minimize the impact of any restructuring on the long-term availability of a highly skilled and mobile mining workforce. Companies typically respond to downturns with hiring freezes, aggressive personnel reductions and professional development budget cuts. These measures may be justified, but the timing and methods of deploying them send a signal to current and potential employees about the company’s dedication to its workforce. Companies that are quick to lay off workers during a downturn are likely to find it difficult to recruit workers during upturns, when labour shortages are prevalent. The mining industry can benefit from a long-term approach to developing talent during both upward and downward trends. Current events provide the industry an opportunity to

refocus attention on optimizing operational processes and consolidating resources to increase productivity. But we must meet the challenge of keeping students enrolled in mining-related programs engaged with the industry. Not doing so would be gambling away our future workforce. This downturn is an opportunity for industry to work more closely with all stakeholders on the development of counter-cyclical strategies that address both the financial volatility and the need for a highly skilled and mobile workforce. Industry can alleviate some of the negative impacts of the current downturn on the mining labour force in the following ways.

Six-month to one-year options • Take advantage of provincial programs that offer training options to Employment Insurance (EI)-eligible candidates. Companies who lay off workers could use these programs to bridge the period between the layoff and the time when the economy picks up again. • To avert temporary layoffs, consider applying to Service Canada’s WorkShare Program, which provides income support to EI-eligible workers willing to work a temporary

mac facts In 2006, spending on metals and mining sector R&D was over six times higher than the combined investment of the agriculture, fishing and forestry sectors. 66 | CIM Magazine | Vol. 4, No. 1

HR outlook reduced work week (the program can be used for up to 38 weeks). • Get engaged in MiHR’s mentorship program to stay connected to students in mining-related disciplines. • Look into using federal and provincial government wage subsidy programs to help new graduates develop their mining careers (i.e. Service Canada’s Career Focus Program). • Offer older workers early retirement packages to help reduce your workforce through attrition.

One-year to two-year options • Encourage skilled personnel to return to school to complete a master’s program or a university degree to enable them to contribute to projects with a broader perspective on mining (i.e. MBA, rural development studies, applied research,etc.). • Help recent graduates gain experience and stay engaged in the

industry through internship programs. • Look into using national and regional level career focus programs, administered through Service Canada and Human Resources and Skills Development Canada (HRSDC). • Consider placing university and college graduates into programs that can link them to the new geomapping initiatives that are to be funded by the federal government. • Look into the HRSDC’s Targeted Initiative for Older Workers to help retired workers become trainers for the next inflow of workers who may need to have their skills assessed with the Prior Learning

Assessment & Recognition and the National Occupational Standards systems developed by MiHR. Companies should take a longterm approach to their talent strategies. Some of the solutions to the industry’s challenges lie in collaborative industry-wide initiatives that tap existing programs. For further information on such programs and initiatives, please contact MiHR. CIM

About the author Jean Pierre Chabot is manager of research and policy analysis at MiHR, responsible for the analysis of HR policy options and constraints that impact the mining industry in Canada. Formerly the project coordinator for a number of Latin American projects, he brings an international perspective to issues facing the Canadian mining industry.

February 2009 | 67

student life Lessons learned What history can teach us about the future

Ryan takes time out in Labrador to feed “Whiskey Jack.”

The route to my entry into the mineral engineering program at the University of Toronto can best be described as circuitous. I spent four years working for a construction company, three years at a community college and four years in engineering consulting before I began attending classes in 2006. Although I do not claim to be an expert in any particular field, the experiences I have had on that winding road have provided me with some valuable insights into how the mining industry — and industry in general — works. We tend to measure by Ryan Clarke the value of mining and exploration companies in terms of resources and reserves, but I have discovered that the best measure of any company is the quality of the personnel that it recruits and retains. We have recently entered a time of economic uncertainty, which has caused many companies to take a step back and re-evaluate their business practices, including their hiring 68 | CIM Magazine | Vol. 4, No. 1

policies. Many companies may not be in a position to hire new graduates as readily to fill expected openings in accordance with forecasted ramping up of production, as exploration and production projects come to a halt. The mining industry has historically followed a cyclical pattern; recessions in the 1980s and 1990s also exhibited periods of reduced hiring and tough times for new mining graduates as well as industry veterans. This pattern can be expected to repeat itself, indicating the likelihood of a future boon in the mining and energy sectors to offset the current downturn. This sentiment is echoed in a recent Ernst and Young report that suggested that an additional 70,000 workers would be required in the mining and energy sectors in the next ten years. I think that it is crucial that the industry as a whole take the time during this current economic downturn to reflect on its business prac-

tices over the last five years and determine the best approach for proceeding to a promising future. Slashing expenditures and laying off employees may be an immediate way to combat a tumultuous market, but care must be taken to ensure companies are equipped for the future. To my fellow students, I would suggest that you not give up hope of obtaining jobs within the mining industry. The aging demographics suggest that as experienced workers retire in the coming years, there will be increased hiring at all levels. This being said, the industry is still small and the best way to obtain employment is through the recommendation of industry representatives. Many of its current leaders have been working in this sector for longer than some of us have been alive; the companies that they have helped to build are their legacies. It is up to us to prove to them that we are capable and responsible enough to justify becoming a part of those legacies and contributing to their growth. The industry desperately needs ambitious young people to assert themselves as leaders of tomorrow. It is actually quite easy to meet industry representatives — including those at higher levels. An important first step? Become involved in CIM. Membership is free for students and limited spaces are reserved for students at many monthly luncheons — spaces that unfortunately often remain unused due to lack of response. Also, I urge students to remain accessible to mining companies. A number of

student life which allows students and industry representatives direct access to each other. This year, the luncheon will take place on May 12 in Toronto. The CIM annual general meeting, to be held on May 10 at the conference, also provides an opportunity for student-industry interaction. The bottom line is times are tough â&#x20AC;&#x201D; for the mining industry and for the economy in general. We in the mining industry are at a slight advantage in dealing with this situation, as we are tight-knit and have a history of being supportive. By banding together in uncertain times, we can assure the success of the industry as a whole for future generations. CIM

About the author

Ryan (left) with his security guard at the Dornod uranium property, Mongolia, during a stope design investigation for an abandoned Russian uranium project.

valuable opportunities exist. Job fairs are held at all universities and provide direct interaction between students and industry representatives. Faculty departments are more than willing to work with industry to provide further access to their students. To the mining companies, I implore you to reconsider putting a halt to hiring. This economic slowdown has created a unique opportunity for you to take your time in choosing the best employees for your company. Without the pressure to just fill vacancies, potential employees can be measured according to how they meet the companyâ&#x20AC;&#x2122;s strategic goals, rather than representing a mere cog in a production machine. Decreased market certainty has also given mining companies the opportunity to invest time and effort into currently employed junior staff. Mentor them now and you will cultivate the intermediate and senior leaders of tomorrow. Also, by supporting the staff that you currently employ through difficult times, they are more likely to stick by you in boom times, when other industries may be vying for their participation. One of the drawbacks of the recent commodities boon was that companies often had to hire indiscriminately in order to maintain the growth necessary to compete in the market; little was known about new graduates at the time of issuing job offers. The interview process became rushed and each graduate would typically receive up to five job offers. Now is the time to get to know potential hires better and choose the individuals who will be best suited to your particular company. Many opportunities exist for student-industry interaction. Most significantly, CIM hosts a student-industry luncheon at the annual CIM Conference and Exhibition,

Ryan Clarke is a third-year student in the Lassonde Mineral Engineering program at the University of Toronto and co-chair of the 2009 Canadian Mining Games. His work on engineering projects has taken him across Canada as well as to the United States, Mongolia, Portugal and Ecuador.

February 2009 | 69

standards Change in Chile New law recognizes the role of “competent persons”

International and Chilean professionals share experiences at Santiago seminar.

One of the requirements of being a Qualified Person (QP) under Canada’s National Instrument 43-101 Standards of Disclosure for Mineral Projects is membership in a professional association. A professional associaby Deborah McCombe tion is defined as a self-regulatory organization of engineers, geoscientists or both engineers and geoscientists that: • is given authority or recognition by statute in a jurisdiction of Canada, or a foreign association listed in Appendix A to NI 43-101; • admits individuals on the basis of their academic qualifications and experience; • requires compliance with the professional standards of competence and ethics established by the organization; and • has disciplinary powers, including the power to suspend or expel a member. If you are a member of one of the provincial or territorial professional associations of engineers and/or geo70 | CIM Magazine | Vol. 4, No. 1

scientists in Canada, you would fulfill the first requirement. Professional associations of geoscientists and engineers in most countries meet the last three components of the definition but are not always recognized by statute. The intent of NI 43-101 was to allow geoscientists or engineers who are members of professional associations in foreign jurisdictions to be recognized as QPs; however, many foreign professional associations are not able to meet the Canadian definition of recognition by statute. A list of Recognized Foreign Associations is appended to NI 43-101. This list is also law, so it can only be amended when NI 43-101 is amended. Currently, there are no South American countries on this list. On December 31, 2007, a law that established the concept of a Competent Person in Mineral Resources and Reserves in Chile came in to effect. This was a result of a five-year effort to parallel the system that other mining countries

have already set up to improve investor confidence and support financings in the mining industry. The Chilean law (20.235) authorizes the Institution of Mining Engineers, the Association of Geologists, the Association of Engineers, the Mining Conseil (Consejo Mineral) and the Society of National Mining (SONAMI) to set up the Chilean Commission for the Qualification of Competencies in Mineral Resources and Reserves (Comisión Minera) that includes one representative from each of the five organizations. The Comision Minera will be responsible for the registration and handling of all matters related to the Competent Persons in Chile. The law also includes the principle of reciprocity such that foreign Competent Persons (or Qualified Persons) will have automatic registration in Chile on the condition that similar privileges are provided to Chilean professionals in these foreign countries.

standards Mining, Capital Markets and the Role of the Competent Person in Chile Seminar In order to highlight the opening of the Registry of Competent Persons in Mineral Resources and Reserves in Chile, the Comisión Minera scheduled the Mining, Capital Markets, and the Role of the Competent Persons Seminar, held November 26, 2008 in Santiago. The seminar provided a networking venue for national and foreign professionals in the mining/financial industries. It was an opportunity for international and Chilean professionals to share issues and experiences and to consolidate relationships between both the professionals who will qualify to inform and report on the mineral resources and reserves in the capital markets and those professionals who develop their activities in these The1 Project7 2/6/08 4:39markets. PM Page seminar was also concurrent with

the annual meeting of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) technical task force of the International Council on Mining and Metals (ICMM). Approximately 126 participants attended the seminar, which was a success in terms of organization, themes and speakers. Speakers from Australia, Canada, South Africa, the United States, Ireland, England and Chile acknowledged the international importance of this event. CIM representatives on CRIRSCO, John Postle and Deborah McCombe, attended the seminar. I gave a presentation on Canadian mining disclosure standards and Janis Koyanagi of the TSX presented a paper on the Canadian financial markets.

Edmundo Tulcanaza, corporate vice president of development for CODELCO and president of the Mineral Resources Committee of the Institution of Mining Engineers of Chile, was a driving force in establishing the Comisión Minera. He will continue to lead the organization as president and to participate in CRIRSCO as a representative from Chile. The Ministry of Mines of Chile recently presented the Alexander Sutolov 2008 Award to Tulcanaza in recognition of his outstanding contributions to the Chilean mining industry. CIM

About the author Deborah McCombe, executive vice president of Scott Wilson Roscoe Postle Associates, is a consulting geologist who is strongly involved in Canadian disclosure standards for the mining industry.

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engineering exchange Distinguished at any depth

Shaft sinking at Xstrata Nickel’s Nickel Rim South project in Sudbury, Ontario

The mine contracting and engineering consultancy Cementation has been recognized in recent years as the most active shaft sinking contractor in North America, both in terms of volume of work as well as in the complexity and technical difficulty of projects undertaken. Cementation has played critical mine building, engineering and shaft sinking roles in a number of noteworthy projects — the Lupin mine in the Arctic, by Binod Sundararajan the Picadilly project in Sussex, New Brunswick, the Red Lake mine in northwest Ontario (widely recognized as the richest gold mine in the world in terms of grade), the Diavik diamond mine in the Arctic, the Resolution mine in Superior, Arizona, and the Kidd mine in Timmins, Ontario. Roy Slack, president of Cementation Canada, described the approach that enables Cementation to successfully 72 | CIM Magazine | Vol. 4, No. 1

deal with the complex engineering challenges posed by these projects as a “best for project philosophy.” This philosophy allows them to continuously look for ways to help the client and the project. “As the contractor, we wanted the ability to add value at the concept and feasibility stages,” said Slack. With this approach, Cementation can develop fast-track construction techniques and more accurate and realistic schedules and budgets. Shaft sinking, in general, requires a higher degree of technical support and innovation than other mine development work. Sinking through water-bearing strata carries additional challenges. In these cases, the shaft lining must be carefully shored and sealed and any ingress water must be handled as well. Slack explained some of the challenges with reference to the Kidd, Diavik and Resolution mines. In the

case of the Kidd mine, Cementation began by working with the owner on the base case building schedule. By doing the headworks and the first section of the shaft concurrently, they were, quite remarkably, able to shave about a year off the schedule. The main challenges revolved around the sinking of a 7.63-metre concrete winze (internal) shaft underground. “The thing about a winze is that all of the same equipment and facilities that you would use on the surface now have to be excavated and constructed in rock,” explained Slack. “Of course you are doing it at depth, so there are geotechnical challenges. There are all the logistics of ventilation and power distribution. All those things are complicated enough on surface, but the complexity is multiplied underground.” At Kidd, it was the depth of the shaft that came into play. Because it extended 3,220 metres below the sur-

engineering exchange

Cementation crew in pre-sink for the shaft at the Resolution copper project in Superior, Arizona

tion had to be paid to quality control to ensure the right things were done at all times.” Foreseeing another challenge in the offing, Slack added that at the Resolution mine, as they go

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face and had a completed winze depth of 1,906 metres, heat and ventilation were highly problematic. Slack said that having both the headworks and the first section of the shaft done at the same time doubled the amount of engineering required at the front end. That shaft was the deepest in the world outside South Africa. The logistics of moving all the equipment underground — the grounded depth, the heat and ventilation — were all major issues to deal with. “Anytime we sink a shaft or go to depths in a mine, the geothermal gradient is a factor,” Slack explained. “Every metre of depth adds a little bit of temperature. With Kidd, initially it wasn’t a problem, but when we got to lower levels, we had to use cooling systems and staged work to make the conditions acceptable.” “With Diavik, initially we were dealing with permafrost,” Slack said, recalling another challenging undertaking. “On the approach to the kimberlite pipe, the ground changes, and there are other issues to deal with. There are certain methods of coping with these ground and water issues, which are not necessarily innovative. However, to ensure the integrity of the excavations, particularly close atten-

deeper, heat is going to be more of an issue than at Kidd. “Each one has its unique challenges,” he added. Cementation adheres to high safety standards. One of the projects they are quite proud of is the Nickel Rim South twin shaft project. “We just sank two shafts at Nickel Rim with no lost time injuries,” Slack said proudly. Cementation has now been recognized for three years in a row by Mediacorp Canada as one of the top employers in Canada and, most recently, by the Financial Post as one of the top ten employers in Canada. The company seeks to be an employer of choice and has been continuously focused on that. With such focus on its people, adherence to the highest safety standards and industry-standard benchmarks for quality and innovation, Cementation has definitely cemented its reputation and legacy as one of North America’s finest mining contracting and consulting organizations. CIM

www.golder.com February 2009 | 73

eye on business Topical issues in mergers and acquisition transactions Until the third quarter of 2008, mergers and acquisitions (M&A) activity in the mining sector threatened to surpass every other sector. The global commodities boom was in full swing and the sector seemed to be in the consolidation phase of the cycle. Strategic buyers competed furiously for attractive projects, and target company shareholders could expect to receive large premiums for their shares. A sharp reversal in commodity prices and capital constraints on intermediate and senior players now pose challenges to completing M&A transactions. Without access to capital, some junior companies are seeking M&A transactions as the only remaining means of salvaging value for shareholders. Meanwhile, some buyers have reduced their offer prices as volatility continues to prevail in the capital markets. This article focuses on a few legal issues M&A transactions face in the new environment. Conditions are a standard component of support agreements and essentially permit a party to terminate the transaction if the other party breaches its representations and warranties, fails to abide by its covenants, or if there is a “material adverse change” (MAC) that relates to the business, operations or financial condition of the other party by Gregory Ho Yuen or which threatens the timely completion of the transaction. Material adverse change conditions have seldom been used to terminate transactions but there is some evidence that MAC clauses will be scrutinized carefully by buyers who may wish to re-evaluate transactions after they have been launched. Target companies should therefore attempt to minimize and circum74 | CIM Magazine | Vol. 4, No. 1

entering into the acquisition agreescribe conditions that could give rise ment and closing of the transaction. to a material adverse change. In particular, they should ensure that force Such an investment can provide an majeure and other macro factors, immediate cash infusion without such as commodity prices, economic increasing the cost of the acquisition outlook or the condition of the capi- for the buyer/investor or diluting tal markets, do not constitute a mate- the consideration to be received by rial adverse change that would entitle existing shareholders under the the buyer to terminate the transacoffer. These investments need to be tion. As well, they should try to structured around the valuation and negotiate MAC clauses that exclude minority shareholder requirements certain other changes, such as the of “related party” rules under secutarget’s failure to meet previously rities laws. Target companies also announced forecasts and estimates or should note the rules and policies of decreases in its share price or trading stock exchanges that relate to the volumes, since changes of this sort pricing and size of offerings. As would result from the impact of well, where an investment will cremacro factors described above. ate a significant shareholder and In several recent transactions, materially increase the cost that a potential buyers have reduced their subsequent bidder would have to offer prices after launching their pay to acquire the target company, bids. While no specific reasons were directors of the target company need given, public disclosure suggests that to weigh the company’s immediate at least one buyer used a possible need for capital against their fiducimaterial adverse change on the part ary obligation to maximize shareof the target as reason to amend holder value. CIM (rather than terminate) its About the author offer. In the absence of a Gregory Ho Yuen is a breach of condition, securipartner in Fasken ties laws would have obliged Martineau's Global Mining a buyer seeking to reduce its Group. He advises mining offer price to terminate its clients on equity financing existing offer and incur the and M&A transactions. delay and expense of making Greg is a regular speaker a new offer. While securities on capital markets regulators do not seem to transactions and NI 43have intervened where a 101 issues. buyer has reduced its offer price, it remains to be seen whether their position will change if this practice becomes more common. Where a target company is in desperate need of There are a total of 4,592 funds, some buyers have R&D workers in the made significant equity investments in it, providing mining sector. the target with funds during the interim period between

mac facts

parlons-en Collaboration industrie–université : l’exemple de SEMAFO dont le Maroc, la France, les pays de l’Afrique de l’Ouest et du Québec. Parallèlement, la terminologie employée peut être problématique. Par exemple, au Québec on utilise le terme « laves en coussin ». En Afrique, dû à l’influence de la France coloniale, ils emploient le terme « pillow lavas ». De plus, certains concepts familiers comme la tectonique des plaques commencent timidement à faire leur apparition en sol africain, particulièrement pour les séquences birimiennes, âgées de 2,2 milliards d’années. Excursion sur le site de la mine Nyafé, Burkina Faso, lors de la formation en métallogénie de l’or en avril 2008.

En sciences de la Terre, les collaborations université-industrie sont relativement communes, particulièrement en exploration minérale. Cellesci s’échelonnent d’une collaboration simple centrée sur un projet de recherche réalisé par un étudiant de 2e ou 3e cycles jusqu’à des formes plus structurées comme les regroupements (DIVEX) et les consortiums (CONSOREM). Sans égard à la spécificité des collaborations, celles-ci ne reposent généralement que sur la composante recherche.

recherche. Ses équipes de géologues devaient en bénéficier. Sur cette base, un volet de formation a spécifiquement été inclus dans l’entente. Ce volet de formation prend la forme de cours intensifs avec des visites sur le terrain pour appliquer les notions théoriques. Depuis bientôt deux ans, deux formations ont été dispensées : volcanologique appliquée et métallogénie aurifère, à plus d’une cinquantaine de géologues. La prochaine formation, sur la géologie structurale, est prévue pour le mois de juin.

Une approche différente

Les défis de l’enseignement

Récemment, SEMAFO et l’UQAC ont formulé une entente de collaboration. SEMAFO est la plus importante société minière aurifère du Québec avec 3 mines en opération en Afrique de l’Ouest - en Guinée, au Niger et par Damien Gaboury au Burkina Faso. L’UQAC est reconnue pour son expertise en exploration minérale, et ce, particulièrement pour les terrains volcano-sédimentaires anciens. Dès les premières discussions, il était clair pour Michel Crevier, directeur de la géologie chez SEMAFO, que la réalité africaine imposait plus qu’une simple collaboration basée uniquement sur la

Enseigner en Afrique comporte sa part de difficultés. D’un point de vue logistique, par exemple, trouver des salles et des projecteurs numériques relève souvent du défi. Même un simple tableau peut se faire rare. Déplacer les géologues de deux ou trois pays, coordonner leur transport et trouver des solutions pour compenser leur absence constitue également un travail colossal. Au point de vue pédagogique, plusieurs facteurs doivent être pris en compte. Le plus important étant la disparité du niveau de formation entre les géologues. Il faut considérer ici que ceux-ci proviennent de plusieurs pays,

Les bénéfices directs et indirects Après deux formations, un constat s’impose : cette formule est très appréciée des géologues. Outre l’aspect pédagogique et l’objectif de rendre les participants encore plus compétents, elle permet le rapprochement entre les géologues. Spécifiquement, elle a permis de développer l’esprit d’équipe et a engendré des contacts continus entre les géologues oeuvrant sur des sites différents, mais qui sont confrontés à des problèmes similaires. L’aspect le plus positif est probablement le sentiment d’importance que chaque participant a ressenti lors des formations. Aux dires de plusieurs, c’était la première fois qu’un employeur en Afrique considérait l’importance de la formation continue de ses employés. Lors de la distribution officielle des attestations de formation, les immenses sourires en disaient long sur leur fierté d’appartenir à « la SEMAFO », comme ils disent là-bas… ICM

L’auteur Damien Gaboury est professeur en sciences de la Terre à l’université du Québec à Chicoutimi et directeur du Laboratoire de métallogénie expérimentale et quantitative. February 2009 | 75

Worth their salt A history of sweat and toil at Malagash mine

he deposit that led to Canada’s first salt mine was accidentally discovered by Peter Murray in 1912. Murray, a farmer in Malagash, on the northern coast of Nova Scotia, had dug a well that ran almost dry. Upon drilling a new well, he encountered water too saline to be used by his cattle. Local lore has it that Murray did find a use for the strongly briny water. When asked at the nearby Tatamagouche market how he got his pork so perfectly salted, Murray would reply: “Oh just the water out of my well.” Word about this briny well water travelled quickly, due either to the fame of Murray’s pickled pig or to the results from a chemical analysis carried out in Ottawa that found the well water to be a saturated solution of common salt with very few impurities. This news eventually reached Robert Chambers, an engineer at an iron mine in Newfoundland, George by Michelle Sabourin and MacKay, a wealthy civil engineer. Both men hailed from New Glasgow, Nova Scotia, some 80 kilometres east of Malagash. Their interest piqued, MacKay and Chambers travelled to Malagash in 1917 and obtained permission from Murray and a neighbouring farmer to start a diamond drilling campaign on their properties.

Breaking new ground With a team of only five men and a horse, Mackay and Chambers began sinking the first shaft near Murray’s farm on July 1, 1918. 76 | CIM Magazine | Vol. 4, No. 1

Men fill 50 pound bags of salt using a machine invented by a Malagash employee.

Digging through nearly impervious clay, with the aid of a gin pole, block and tackle, the men hoisted all the material to surface with the assistance of the horse. On Labour Day, 1918, the first rock salt ever mined in Canada was raised to surface through this shaft, creating a major source of work for the people of Malagash for the next 41 years. Prior to this discovery, all Canadian salt had been obtained through ocean brine evaporation. Commercial-quality rock salt was struck at just 87 feet below surface.

The 300 foot-thick deposit was divided into three seams: Lucas, MacKay and Chambers. The Chambers seam was considered unsuitable for mining due to its frequent fracturing. The other two, however, were continuous and extended for miles. Workers — local farmers turned salt miners — also became professional mountaineers, manoeuvring in steeply dipping salt beds. At most stope faces, the sole means of elevating or lowering oneself was overhand on a three-quarter-inch rope. Access

in and out of the mine was by a single flight of 220 stairs, with some ladders descending almost 200 feet vertically. It was hard work — eight- to tenhour shifts, six days a week. On the plus side, the work was clean, relative to coal mining, and the ambient temperature was a comfortable 13 degrees Celsius — cool in summer and comparatively warm in the winter. Shortly after the discovery, 30 to 40 tons of salt were coming up daily. An open stope overhand method, similar to coal mining, was employed. The salt rock was blasted underground from a series of ascending stepped benches. As the stopes progressed further and further from the shaft, the men shovelled the salt Miners in a Malagash shaft with a “modern” undercutter. into a skip, transported it hundreds of feet in a lorry, and hoisted it up 200 feet to surface. Here, the salt was forced to retreat 110 feet below. They Malagash after Pugwash built a brattice with jute bags soaked By the mid-1950s, Malagash had dumped onto two picking tables, crushed with a sledge hammer and in water and used additional wet bags prospered from farmland into a selfover their faces as filters. Raging for sufficient community. It included a sorted by hand. Horse-drawn sleds or wagons over two hours, the fire consumed the grocery store, a post office, a community hall showing a weekly moved 200-pound burlap sacks movie, a pool room and a tea of salt from the mine to the room for the ladies. wharf warehouse four kilometres While things appeared away, or to the Malagash railway at the successful above ground, it station, about 13 kilometres away. In spring, with the wagons nearby Tatamagouche market how was not the same case below. The salt was becoming very often mired, the heavy salt sacks he got his pork so perfectly salted, costly to mine because the had to be carried the rest of the ore had to travel larger disway in the mud. The salt was Murray would reply: tances underground before shipped to Newfoundland, the being hoisted to surface. The Magdalen Islands and the New narrowness and contortions England states. Trainloads of it of the seams precluded the went as far west as Prince Albert, use of larger equipment Saskatchewan. underground. Consequently, Primarily used in the fisheries when a dome of salt over industry, the salt was also used 1,400 feet thick was discovas a preservative for hay and in Canadian National Railway refrigera- mill, the headframe and the ered in Pugwash, 29 kilometres to the tor cars. By the 1940s, growing BuschSelzer diesel engine — the sec- northwest, mining in Malagash dwindemand for road de-icing salt in ond of its kind in America at the time. dled until the mine shut down permaOntario and Quebec brought great After it died down, the men emerged nently in 1959. unscathed. Today, the main industries in profits to the Malagash salt mine. Others were less fortunate. On Malagash are agriculture and fishing. Tragedies February 5, 1957, one man was killed Malagash’s temperate microclimate is On July 28, 1923, a fire broke out and another severely injured when a also good for growing grapes, making in the mill, trapping about a dozen scheduled blast caused a pillar to wine production a successful men underground. The men were crumble unexpectedly. enterprise. CIM

When asked

“Oh just the water out of my well.”

February 2009 | 77

featured mine

Goldex ore storage dome

Agnico-Eagle strikes Goldex The continued strengthening of gold prices is making low yield bodies, such as Quebec’s Goldex operation — which hit full production earlier this year — more economical. by | Peter Diekmeyer

For many years, Agnico-Eagle’s Goldex deposit, located in Quebec’s gold-rich Cadillac-Bousquet belt, was not considered an economical ore body to mine. Although the property had been on the minerals industry’s radar screens for some time, its low-grade status and weak gold prices meant that the business case for investing there was weak. As a result, the project remained on a backburner. In 2004, Agnico-Eagle, which already operated the nearby LaRonde mine, decided to move ahead with a feasibility study of the Goldex project, and an ongoing production decision followed in 2005. The move proved to be prescient. “The timing was excellent,” said Yvon Sylvestre, Goldex mine manager. “Production began at a time when gold prices were holding up well, especially relative to those of many other commodities.” 78 | CIM Magazine | Vol. 4, No. 1

Agnico-Eagle’s long-term policy is to not hedge its production. This positions it well to profit when prices move up.

A long-term presence Agnico-Eagle Mines was formed in 1972, following the amalgamation of Agnico Mines Limited and Eagle Gold Mines. However, until recently the operation’s revenues came from a single major stream: the LaRonde mine, located a short driving distance from the Goldex operation. At Goldex, construction work to the tune of about $183 million was completed in 2008 and production began in August of that year. This past January, the mine hit its full capacity at 7,000 tonnes per day. So far, according to company reports, the milled grade has been running at about 2.1

featured mine grams per tonne, which is closely in line with the initial block model estimates. The Goldex mineâ&#x20AC;&#x2122;s proximity to its LaRonde operation turned out to be a major boost, making the synergies of combined infrastructure possible. As a result, total cash production costs per ounce are currently running at $315, which compares favourably with initial forecasts. As production efficiencies increase, those costs are expected to fall further, bottoming out later in the mine life at a projected $270 per ounce. In fact, Agnico-Eagle regards itself as one of the lowest total cash costs per ounce producers in the North American underground mining industry. If current plans come to fruition, Goldex is expected to yield an average of 165,000 ounces of gold annually for the next ten years.

Minimizing costs The Goldex deposit is both large and impressive. Estimates are that it includes about 23.1 million tonnes of probable mineral reserves at an average grade of 2.2 grams per tonne, which would imply an eventual yield of 1.6 million ounces. The deposit itself extends from about 510 metres to 770 metres below the surface. To access and process those reserves, Agnico-Eagle built new mining and milling facilities, which incorporated many

Development crew underground

innovative technologies and processes. â&#x20AC;&#x153;The fact that ore yields are so low there compared to other bodies in the region meant that the only way that we could justify the mine development was to find ways to minimize extraction and processing costs,â&#x20AC;? said Sylvestre.

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featured mine Mining, pre-production and blasting According to Sylvestre, Agnico-Eagle uses a relatively simple, though productive, high-volume bulk mining method. It incorporates large step-like excavations, as well as a hybrid longhole drilling/shrinkage method. The drilling and blasting are done in a manner that ensures good muck size. A percentage of the broken ore is kept in the stope to minimize ground control costs. No backfill was used. The Goldex facility also incorporates underground crushing, surface grinding, a gold gravity recovery circuit, sulphide flotation and a concentrate handling facility. Flotation tails are disposed mainly in an old abandoned tailing site, 23 kilometres away and in a new tailings pond, five kilometres south of the complex. Once the ore is blasted free, it is mucked and then undergoes preliminary crushing, before being hoisted to the surface. Once there, the ore is conveyed to the processing plant where it is reduced to units of about 100 microns, which are then gravity separated in centrifuge machines to isolate the high-density gold chunks. The gold bullion from the initial separation and from subsequent processing is sent to the mint, and the flotation concentrate is shipped to the cyanidation plant at Agnico-Eagle’s LaRonde facility.

Maintaining strong community relations One major challenge that Agnico-Eagle faces with its Goldex operation, said Sylvestre, relates to its location within the suburban area of the town of Val-d’Or, Quebec. “We provide the region with close to 230 well-paying jobs, so naturally our corporate brand value there is high,” said Sylvestre.“But we have to constantly work to maintain that respect. Our presence Above, top to bottom: Aerial photo of Goldex site; concentrator; celebrating the first gold pour at Goldex. there is considerable and many parts of the To speed up the extraction process, a 5.5-metre diameter mine are visible from the town itself. Bearing that in mind, we shaft was dug to a depth of 865 metres and bordered with a try to maintain the smallest footprint possible in the area.” 50.8 centimetre concrete lining, using a steel sheet piling According to Sylvestre, maintaining excellent community method for the 24.4-metre collar in overburden. The shaft relations is an integral component of running the Goldex facilneeded to be so large to accommodate both the hoisting ity. The surrounding community is kept aware of all major iniequipment installed within, and to provide space for proper tiatives undertaken at the mine, particularly those related to ventilation. The hoisting system, which includes a refurbished noise mitigation efforts and the environment. This is accomunit, now handles both production and service duties. An auxil- plished in several ways, including visits to the mine’s closest iary friction hoist single-drum unit was also installed to accom- neighbours, holding open house sessions, distributing newsletters and making presentations to various citizens’ committees. modate personnel, service and emergencies. 80 | CIM Magazine | Vol. 4, No. 1

featured mine Major efforts were made to mitigate some of the more noticeable disturbances. The design of the facility itself was kept intentionally compact, to minimize land use. Mining can be a very noisy business. To keep the decibel count to a minimum, Agnico-Eagle installed ventilators underground to dissipate sound. The company also constructed a large dome on top of the ore stockpile to reduce the amount of dust that gets blown around. And finally, no cyanide is used in the Goldex process. Rather, a sulphide concentrate is produced and sent to the LaRonde mine, where it is reprocessed.

Environmental initiatives Environmental concerns also run at the top of AgnicoEagle’s agenda. To help deal with these issues on an ongoing basis, the company has set up a multi-disciplinary environmental team comprised of engineers, biologists, chemists, mining technicians and operational personnel. One key environmental initiative involved finding a way to avoid building a large tailings pond, in an effort to better preserve natural resources in the area. Through a cooperative program with the Quebec government, an old acid-generating tailings site located at Manitou was rehabilitated. Tailings from the Goldex site, which contain some neutralizing properties, are transported to the Manitou site via a 23-kilometre pipeline.

Studies and tests show that by covering the existing Manitou tailings with tailings from the Goldex site, the acidity of the effluent from the site will be reduced and metal concentration will fall within acceptable limits. The result of this combined private sector-government effort, which Sylvestre hails as a first in the mining industry, is that a wetland will be established upstream and several wildlife and aquatic habitats will be rehabilitated.

Just the tip of the iceberg However, according to Sylvestre, the Goldex and LaRonde operations represent only the tip of the Agnico-Eagle iceberg. The company’s longer-term strategy is to continue to search for new ore bodies and build on its Quebec operations. The long-term goal is to turn Agnico-Eagle into what Sylvestre calls “a multi-mine platform,” which will have six mines running. These will include a third mine in Quebec (Lapa), an operation in Finland (Kittilla) where construction began in 2006, one in Nunavut (Meadowbanks) and a gold and silver mine in Pinos Altos, Mexico, where production is expected to begin some time this year. In addition, the company is currently conducting a scoping study that is investigating the possibility of boosting the Goldex mine’s current production rate by an additional 15 per cent. Results of the study are expected later this year. CIM

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February 2009 | 81

Dôme recouvrant la halde de minerai.

mine en vedette

Depuis plusieurs années, le gisement Goldex d’Agnico-Eagle, situé dans la riche ceinture aurifère Cadillac-Bousquet au Québec, n’était pas considéré un gisement idéal à exploiter. Bien que la propriété ait été sur l’écran radar de la compagne depuis quelque temps, sa faible teneur et les bas prix de l’or rendaient cet investissement peu attrayant. Le projet a donc été relégué aux oubliettes. En 2004, Agnico-Eagle, qui exploitait déjà la mine LaRonde à proximité, a décidé de développer le projet Goldex. La décision a été la bonne. « Le moment était excellent », dit Yvon Sylvestre, le directeur des opérations minières de la compagnie. « La production a débuté lorsque les prix de l’or se maintenaient bien, surtout par rapport à ceux des autres biens. » M. Sylvestre ne badine pas, surtout si l’on considère la politique à long terme d’Agnico-Eagle de ne pas prévendre sa production, ce qui place la compagnie en bonne position de profits lorsque les prix grimpent.

Une présence à long terme La compagnie Mines Agnico-Eagle a été fondée en 1972 à la suite de la fusion de Agnico Mines Limited et de Eagle Gold Mines. Toutefois, jusqu’à tout dernièrement, les revenus de la compagnie ne provenaient que de la mine LaRonde, situé à une courte distance de l’exploitation Goldex. Le travail de construction à Goldex, à un coût d’environ 183 M$, a été achevé en 2008 et la production a débuté en août de cette même année. En janvier dernier, la mine a atteint sa pleine capacité de 7 000 tonnes par jour. À ce jour, selon les rapports de la compagnie, la teneur à l’usine est d’environ 2,1 g/t, ce qui concorde avec les estimés initiaux. La proximité des mines Goldex et LaRonde a été incontestablement une bonne stimulation en raison des synergies réalisées par l’utilisation d’infrastructures combinées. Les coûts totaux de production sont actuellement de 311 $ l’once, ce qui concorde avec les premières estimations. Avec l’augmentation de l’efficacité de production, ces coûts devraient diminuer 82 | CIM Magazine | Vol. 4, No. 1

encore plus, pour atteindre un seuil inférieur projeté d’environ 270 $/once plus tard cette année. En effet, Agnico-Eagle se considère comme l’un des producteurs ayant les coûts de production par once les plus bas de l’industrie minière en Amérique du Nord. Si les plans actuels se concrétisent, Goldex devrait produire une moyenne de 165 000 onces d’or annuellement pour les dix prochaines années.

Réduction des coûts Le gisement Goldex est vaste et impressionnant. Selon les estimations, il contiendrait environ 23,1 millions de tonnes de réserves minérales probables à une teneur moyenne de 2,2 g/t, ce qui impliquerait une production éventuelle de 1,6 million d’onces d’or. Le gisement en soi se trouve à une profondeur d’environ 510 mètres à 770 mètres sous la surface. Afin d’avoir accès à ces réserves, Agnico-Eagle a construit de nouvelles installations minières et de traitement avec plusieurs technologies et procédés innovateurs. « Avec un minerai à si faible teneur par rapport aux autres gisements dans la région, la seule façon de justifier le développement de la mine était de trouver des moyens pour minimiser les coûts d’extraction et de traitement », dit M. Sylvestre. Afin d’accélérer le processus d’extraction, un puits d’un diamètre de 5,5 mètres a été creusé jusqu’à une profondeur de 865 mètres et ceinturé d’une couche de six pouces de béton en utilisant un rideau de palplanches. Le puits devait avoir cette largeur afin de pouvoir recevoir les équipements d’extraction qui y étaient installés et avoir assez d’espace pour assurer une ventilation adéquate. Le système de levage, qui comprend une unité remise à neuf, peut répondre aux tâches de production et d’entretien. Une unité auxiliaire a aussi été installée pour le personnel et pour les urgences.

Extraction, pré-production et sautage Selon M. Sylvestre, Agnico-Eagle utilise une méthode relativement simple, très productive d’extraction de grands vo-

mines en vedette lumes. Cette méthode incorpore de grandes excavations de type marches; la mine est aussi exploitée par les méthodes de longs trous et de chambres-magasins. Le forage et le sautage se font de manière à assurer une bonne dimension de blocs pour le marinage et un certain pourcentage de minerai concassé est gardé dans le chantier d’abattage afin de minimiser les coûts de remblayage. L’installation Goldex comprend aussi du concassage souterrain, du broyage en surface, un circuit de récupération de l’or par gravité, la flottation des sulfures et une installation pour manipuler le concentré. Les résidus de la flottation sont déposés dans un nouveau bassin de résidus situé à trois kilomètres au sud du complexe. Une fois que le minerai a été abattu, il est chargé et transporté puis il subit un premier concassage avant d’être monté en surface. Rendu en surface, le minerai est acheminé à l’usine de traitement où il est broyé en particules dont la taille est d’environ 100 microns; ces particules sont envoyées dans une centrifugeuse afin d’isoler les fragments d’or à haute densité. L’or en lingots non affinés provenant de la séparation initiale et des traitements subséquents est envoyé aux installations de la Monnaie royale canadienne et le concentré provenant de la flottation est envoyé à l’usine de cyanuration de la mine LaRonde.

Entretenir de bonnes relations communautaires M. Sylvestre stipule que l’un des principaux défis d’AgnicoEagle face à la mine Goldex est en rapport avec son emplacement en banlieue de la ville de Val-d’Or. « Nous fournissons près de 230 emplois bien rémunérés; la valeur de notre image corporative est donc bien établie », dit-il. « Nous devons cependant travailler constamment pour maintenir ce respect. Notre présence est bien évidente et de nombreuses parties de la mine sont visibles de la ville proprement dite. Nous nous efforçons donc de maintenir la plus petite empreinte possible dans la région. » Selon M. Sylvestre, le maintien d’excellentes relations communautaires constitue une partie intégrante de l’exploitation de Goldex. La communauté environnante est tenue au courant de tous les grands projets de la mine, surtout ceux qui concernent l’environnement et les efforts d’atténuation du bruit. Cela s’accomplit de diverses manières : des visites de la mine pour les voisins les plus proches, la tenue de journées portes ouvertes, la distribution de bulletins et la tenue de présentations pour divers groupes de comités de citoyens. De sérieux efforts ont été faits pour atténuer quelquesunes des perturbations les plus marquantes créées par des exploitations minières typiques. L’installation a été conçue afin d’être compacte et de minimiser l’utilisation de terrain. Une exploitation minière peut être très bruyante; alors, pour

garder le nombre de décibels à un minimum, Agnico-Eagle a installé ses ventilateurs sous terre afin de dissiper le son. La compagnie a aussi construit un grand dôme sur la halde de stockage du minerai dans le but de réduire la quantité de poussières qui pourraient être soufflées un peu partout. Finalement, aucune quantité de cyanure, un sous-produit de la production, n’est conservée sur le site; le cyanure est plutôt envoyé à la mine LaRonde où il est retraité.

Initiatives environnementales Les préoccupations environnementales sont aussi très importantes pour Agnico-Eagle. Afin d’aider à traiter de ces enjeux sur une base continue, la compagnie a établi une équipe environnementale pluridisciplinaire composée d’ingénieurs, de biologistes, de chimistes, de techniciens miniers et de personnel des opérations. Une initiative environnementale clé consistait à trouver comment éviter de construire un grand bassin de résidus, afin de mieux préserver les ressources naturelles dans ce secteur. Grâce à un programme coopératif avec le gouvernement du Québec, Manitou, un ancien site de résidus miniers, générateur de drainage acide, est en voie de restauration. Les résidus de la mine Goldex, qui possèdent des propriétés de neutralisation, sont transportés au site Manitou par un pipeline de 24 kilomètres. Les officiels croient que recouvrir les résidus existants à Manitou avec des résidus du site Goldex permettrait d’assurer une diminution de l’acidité de l’effluent et la réduction des concentrations de métaux à des niveaux acceptables. Grâce à ce partenariat secteur privé – gouvernement, que M. Sylvestre salue en tant qu’une première dans l’industrie minière, un marais sera établi en amont et plusieurs habitats fauniques et aquatiques seront rétablis.

Une toute petite partie de la réalité Toutefois, selon M. Sylvestre, les exploitations Goldex et LaRonde ne forment qu’une petite partie de l’ensemble Agnico-Eagle. La stratégie à long terme de la compagnie est de rechercher de nouveaux gisements et de miser sur ses opérations au Québec. Le but à long terme est de faire d’AgnicoEagle, avec ses six mines en exploitation, une « plate-forme multi-mines ». Ces exploitations comprennent une troisième mine au Québec, une exploitation à Kittala, en Finlande, dont la construction a débuté en 2006, une autre au Nunavut et une mine d’or et d’argent à Pinos Altos, au Mexique, dont la production devrait débuter au cours de l’année. En plus de tout cela, la compagnie effectue actuellement une étude afin d’évaluer la possibilité d’accroître la production de la mine Goldex de 15 %. Les résultats de l’étude sont attendus plus tard cette année. ICM February 2009 | 83

cim news CIM welcomes new members Accad, Elie, Quebec Astuvilca, Rosario Maria, Ontario Atkinson, Joseph, Quebec Azimi, Ghazal, Ontario Banton, Catherine, British Columbia Barnes, Janice, Newfoundland and Labrador Bates, Larry, British Columbia Beck, Erik, USA Bian, Yankui, Ontario Bird, Howard Michael, Ontario Birur, Anand, British Columbia Bouchard, Yves, Quebec Bougher, Bryan, Ontario Brinke, Cecelia, USA Brooks, Ron, British Columbia Brown, Thomas, USA Brunette, Mike, USA Bryan, Mattew, British Columbia Burdenie, Bill, Alberta Burke, Michael, Ontario Carrière, Claude, Ontario Casteel, Steven, USA Chaffiotte, Robert, USA Collette, Ron, Saskatchewan Marynissen Johannes Sipakwe, Cornelis, Saskatchewan Da Prat, Robert, Ontario Deener, Brent, British Columbia DeLallo, Michael, USA Desjardins-Ceccanese, Tyna, Ontario Dmytrowich, Garett, Saskatchewan Ducellier, Thomas, Ontario Duvall, Jeff, British Columbia Eaid, Michael, Saskatchewan Eshun, Peter A., USA Esser, Robert, Nunavut Faber, Daniel, Ontario Fedoruk, Lindsay, Saskatchewan Feldman, Jon, Ontario Ferguson, Michael, USA Frazer, Alvin, Saskatchewan Fuller, Danielle Marie, Ontario Gareau, Michelle A., Ontario Gerhardt, Dean, Saskatchewan Ginnetti, Pat, Ontario Grenon, Randy, Ontario Harbicht, Travis, Saskatchewan Hayes, Charles, USA Hayward, Michael, Saskatchewan Hebert, Guy, Quebec Hientz, Dana Michelle, Alberta Hodgson, Linda, British Columbia Hollyer, Greg, Ontario Huang, Shih-Cheih Herman, Alberta Hussain, Shahid, Saskatchewan Hutchinson, Bobby, Ontario Inglis-McQuay, Carolanne, Saskatchewan Jolicoeur, Marcel H., Quebec Judge, Colin, Ontario Juneau, Richard, USA Kavli, Darren, Newfoundland and Labrador Kelly, Mary Kathyrn, Ontario Kinchen, Dean, Saskatchewan Krauss, Jason, Ontario Labrecque, Pierre, Ontario Lambert, Richard, Ontario Landa, Dan, British Columbia Landreville, Michelle, Nova Scotia 84 | CIM Magazine | Vol. 4, No. 1

Lapierre, Dianne, Ontario Lapierre, Mitch, British Columbia Latendre, Robert, Ontario Lebel, Robert, Quebec Lemay, Andy, Ontario Létourneau, Sylvain, Quebec Levine, Adam, British Columbia Linden, Alan, Ontario Lockwood, Dan, British Columbia Lomas, Robert, Ontario Loo, Steven, Ontario MacDonald, Garett, Ontario Madenga, Vandirai, Saskatchewan Malley, Gord, Ontario Martin, Chad, British Columbia Mason, Raymond, Newfoundland and Labrador Mathewson, Mark, Ontario Mayer, Theo, British Columbia McGlynn, Frank, Ontario Melnikel, Paul L., Saskatchewan Mercier, Patrick, New Brunswick Michalishion, Glenn, Saskatchewan Moise, Alexandru, Quebec Moores, Andrew, Ontario Morris, Cory, Yukon Morriseau, Cynthia, Ontario Moss, Erin A., Saskatchewan Murray, Rob, British Columbia Myers, James, USA O’Handley, Hugh, British Columbia Ouellet, Denise, New Brunswick Paterson, Terry, British Columbia Perkins, C. Trevor, Saskatchewan Piche, Lola, Saskatchewan Pierce, Shaun, Saskatchewan Proulx, Yvan, Ontario Putnam, David, Ontario Quick, Duncan, Ontario Racine, Jacques, Quebec Rannelli, Thomas, Ontario Regier, Marlon, British Columbia

Reifferscheid, Laura, Saskatchewan Robertson, John, Ontario Rojas-Arbulu, Carlos, Ontario Roulston, Brian, New Brunswick Saeed, Sadia, Ontario Scheel, Erik, British Columbia Sexauer, Jason, Quebec Siebring, Elenor, British Columbia Skoskiewicz, Andrzej, British Columbia Smith, Terry, British Columbia Sobush, Arden, Saskatchewan St. Louis, Carole, Ontario Ste. Marie, Jason, Newfoundland and Labrador Stoddart, Don, Newfoundland and Labrador Stone, Barton G., British Columbia Tarr, Krisitie, Ontario Torjusson, Glen, British Columbia Torrie, Mel, USA Turner, Mackenzie, New Brunswick Tyler, Kim, Ontario Velezmoro, Susan, Ontario Venosse, James, Yukon Vézina, François, Quebec von Allworden, Silke, Saskatchewan Wallace, Kevin, British Columbia Way, Brad, Newfoundland and Labrador Webb, Tim C., New Brunswick Woito, Norm, Ontario Woodfine, Tony, Newfoundland and Labrador Wright, Nelson Gerard, Saskatchewan Xing, Ruonan, British Columbia Yip, Darian, British Columbia Yu, Justin, British Columbia

Corporate Eco Waste Solutions Stewart Craike Management Inc.

A look back in time 20 YEARS AGO… • The Government of Ontario released a Green Paper, initiating a review of the Ontario Mining Act to facilitate streamlined regulatory procedures. Because much has changed since then, the Act now is under review again. • Robert Parsons cautioned the government against imposing heavy tax burdens on mining companies at a time when they were doing relatively well. Citing historical evidence, he asserted that doing so would undermine the industry’s capacity to cope with leaner periods in the future. • Tracing the history of silver mining in Nelson, British Columbia, an article described the treasures of the Nelson Museum. An excellent virtual exhibition on the city’s mining heritage is available on the museum’s website (www.nelsonmuseum.ca). • Nominations were invited for the 1989 British Columbia Science and Engineering Awards in the applied science, natural sciences, health sciences and industrial innovation categories. The above were taken from the February 1989 issue of CIM Bulletin.

cim news Freedom from the cubicle Arthur Foley Scholarship winner shares his ideas on a career in mining Maciek Armatys, a mining engineering student at the Université de Montréal’s École Polytechnique, won the prestigious CIM-administered Arthur W. Foley Scholarship. The $3,000 scholarship is awarded annually to a mining engineering student who has completed three trimesters of study and an internship. With competition for the award being intense, winning it is quite an honour, one that Armatys acknowledged with gratitude and a touch of pride. Originally from Poland, Armatys first enrolled in a civil engineering program. Realizing that he was among 130 classmates who would one day compete with one another for elusive jobs in a shrinking market, he was quickly disillusioned. He dreaded ending up, like innumerable engineers, in a desk-bound job with nominal or non-existent links to engineering. Fortunately, this disgruntled would-be civil engineer had a timely conversation with a friend who was studying mining engineering at McGill University. His interest piqued, Armatys discovered that mining engineering offered many things that few other engineering disciplines could — remunerated summer placements and internships, a good mix of indoor and outdoor work, superb starting salaries, near-certain and immediate availability of lucrative employment opportunities, and a sustained skills demand for the foreseeable future. Faced with these facts, he could not but sign up, and the ranks of future mining engineers swelled by one. Armatys, who intends to eventually return to Poland, is excited by the prospect of having his pick of reputed employers and exotic locales when he graduates. For now, he concentrates on keeping his grades up and finding work in what he calls “a solid company that will help me grow.” In the longer term, he wants to specialize in by Minaz Kerawala rock mechanics or geotechnical excavations. Confident though he is about the future, Armatys is a realist and is aware that there will be challenges. “The big difference between school and real life is that when the professor gives you an assignment, you know what book to look in to get the answer,” he said. “In real life, there will be problems to which solutions aren’t written in any handbook. It will be up to me to find a solution.” He draws inspiration from the competence and erudition of his teachers, who, it seems to him, have answers to even the toughest questions. “I’m hoping to achieve their level of aptness one day,” he added. Wining the Arthur W. Foley Scholarship was a timely blessing for Armatys who, after three consecutive

trimesters and an internship at Seleine Mines, was running low on money. The award helped tide him over to the next term. But its monetary component was not all that touched Armatys. “It’s noble that the mining industry cares for its future engineers enough to offer such scholarships. Receiving this award is a huge honour that encourages me to keep going,” said Armatys graciously, expressing his gratitude to his teachers and friends for their support. Armatys’ advice to young Canadians on the brink of a career choice is simple and to the point. “If you are looking for guaranteed employment, like playing with giant Tonkas, watching things explode and getting superior pay, mining is definitely the way to go!” CIM

Off to a great start Spirits ran high last September at the CIM Edmonton Branch kick-off meeting for the 2008-2009 season, held at the University of Alberta Faculty Club. Greeted with cocktails and a magnificent view of the River Valley, guests were then treated to a succulent dinner. Next came the CIM Awards presentation by past president Jim Popowich, where local members who have left their mark on the minerals industry were recognized. Darren Alessandrini received the CIM Fellowship Award, Amar Amarnath, the McParland Memorial Award, and Jeremy Richards, the Julian Boldy Memorial Award. Special mention went to Wally McMorran, who was awarded the District 5 Distinguished Service Award. CIM Edmonton Branch chair Gord King personally delivered the award to Wally last summer. The festivities continued as Mike Brackenreed, chairman of the Edmonton Chapter of the Firefighters’ Burn Treatment Society, by Robbie Pillo was presented with an $11,000 donation. The money was raised through a raffle held at the CIM Conference and Exhibition 2008. The prizes — two stunning necklaces — had been generously donated by Placer Gold Design and Diavik Diamond Mines. Half of the proceeds were given to the society, with the balance going to the Canadian Mining and Metallurgical Foundation. Proceeds from a fashion show and guest gift sale also made up a portion this generous contribution. Tim Joseph, CIM Coal and Industrial Minerals Society chair, closed the evening with an informative presentation on tire maintenance and management — an aspect of mining “savvy socializing” logistics that is critical to project success. CIM February 2009 | 85

cim news Assurer l’avenir de l’industrie minière à Thetford Mines En 1878, une première entreprise minière commençait l’extraction de l’amiante chrysotile dans la région de Thetford Mines, une municipalité située à 100 km au sud-ouest de la ville de Québec. Thetford Mines abrite donc un des plus anciens camps miniers au Canada. À son apogée, une dizaine de mines souterraines et à ciel ouvert étaient en opération. Deux mines de chrysotile sont encore en exploitation à Thetford Mines et à Asbestos. La Section Thetford Mines de l’ICM aurait été fondée vers 1902. En juin 1979, notre Section organisait la 3e Conférence des Opérateurs d’exploitations à ciel ouvert et en août 1988 la 6e Réunion du District no 2 de l’ICM. Les surplus financiers de ces deux activités ont servi à créer un fonds dédié à l’octroi de bourses d’études à des étudiants de niveau collégial et universitaire dans les domaines des mines, de la géologie et de la métallurgie. Nous avons la chance à Thetford Mines d’avoir sur place, une institution d’éducation de niveau collégial : le Cégep de Thetford. Ce collège abrite un département de technologie minérale qui forme des techniciens en géologie, en exploitation minière et en minéralurgie. Le Cégep dispose aussi d’un centre collégial de transfert technologique (CCTT) appelé Centre de Technologie Minérale et de Plasturgie (CTMP). Ce centre de recherche fournit aussi des services techniques à l’industrie par Pierre Laroche minière et aux entreprises du domaine des plastiques. Ces institutions jouent un rôle dans la promotion de l’industrie minière dans notre région. En plus de mettre en réseau les ingénieurs et techniciens du secteur minier local, notre organisme rassemble les étudiants et enseignants du secteur minéral, des industriels, des fournisseurs, des équipementiers, des 86 | CIM Magazine | Vol. 4, No. 1

prospecteurs et autres intervenants du milieu. Depuis plus de vingt ans, les villes de Thetford Mines et d’Asbestos ont amorcé leur diversification économique pour contrer le déclin de l’activité minière. À Thetford Mines, des entreprises œuvrant en plasturgie, métallurgie, construction mécanique, fabrication d’équipement, transformation du bois et des minéraux, etc., ont pris le relais du secteur minier. Pour assurer la pérennité de notre section de l’ICM, il nous faut colla-

borer étroitement avec tous les organismes apparentés, comme le Cégep, le CTMP et le Musée minéralogique et minier en plus de nos partenaires traditionnels que sont nos entreprises minières, les fournisseurs miniers et les industries de la transformation des minéraux. L’organisation d’activités pertinentes pour notre centaine de membres compte tenu de la diversité de leurs intérêts constitue un défi d’autant plus que plusieurs de nos conci-

Keeping mining alive in Thetford Mines Chrysotile asbestos mining began in the Thetford Mines area in 1878. Located approximately 100 kilometres southwest of Quebec, the city of Thetford Mines is one of Canada’s oldest mining camps. At its peak, ten underground and open pit mines were in operation in the region. Today, two chrysotile mines are still operating — one in Thetford Mines and one in Asbestos. The CIM Thetford Mines Branch was founded around 1902. In June 1979, our branch hosted the Third Open Pit Operators Conference. In August 1988, we hosted the sixth CIM District 2 meeting. The proceeds from these activities were dedicated to the creation of a scholarship fund for college and university-level students in mining, geology and metallurgy. The leading academic institution in our region, the Cégep de Thetford has a mineral technology department that trains technicians in geology, mining and mineral processing. The Cégep also has a College Centre for the Transfer of Technology, the Centre de Technologie Minérale et de Plasturgie (CTMP). This research centre offers technical services to the mining and plastics industries. These institutions have played a leading role

in promoting the mining industry in our area. In addition to helping local engineers and technicians in the mining sector establish networks, our branch brings together students and teachers in the mineral sector, industrialists, suppliers, equipment manufacturers, prospectors and other industry partners. For the past 20 years, Thetford Mines and Asbestos have diversified their economy to counter the decline in local mining activity. Thetford Mines has turned its attention to other industries such as plastic processing, metallurgy, engineering, equipment manufacturing, and wood and mineral processing. In order to ensure the continuity of our branch, we collaborate closely with all parent organizations: the Cégep, the CTMP, the Musée minéralogique et minier, and with our established partners, the mining companies, mine suppliers and the mineral processing industries. Organizing pertinent activities for our 100 or so members is always a challenge, due to their diverse interests and the fact that they are often involved with many other local organizations. An aging membership

cim news

toyens sont sollicités ou impliqués dans de multiples organismes locaux. Le vieillissement de nos membres constitue un autre défi pour la relève des officiers de la Section. En 2008, nous avons organisé un tournoi de curling et un tournoi de golf. Nous avons aussi organisé 4 conférences techniques dont la participation a varié de 40 à 50 membres. Depuis environ deux ans nous publicisons nos activités par des communiqués de presse dans nos médias locaux et régionaux

ainsi que dans le CIM Magazine. Cette initiative a un impact positif sur la participation de nos membres et l’attraction de nouveaux membres. La barrière linguistique constitue un défi important : tous nos conférenciers doivent s’exprimer en français devant nos membres francophones à 99 %. Des conférenciers de Polycor, du Cégep, de Royal Nickel et des Mines Opinaca (Goldcorp) ont su captiver leur auditoire dans la langue de Molière.

Nous croyons fermement à l’importance de maintenir active notre Section de l’ICM. Le secteur des mines et de la métallurgie est important pour notre économie locale et nationale. Je tiens à remercier mes collègues MM François Jacques, Richard Rodrigue, et Thomas Coleman, du comité exécutif de la section de Thetford Mines, ainsi que Mme Jocelyne Vallée de LAB Chrysotile, pour leur appui et engagement continu. ICM

Obituaries CIM expresses its sincere condolences to the families and friends of the following members: John S. Carter became a member of CIM in 1962 and attained life member status in 1994. Ralph W. Edie passed away recently. He was a member of CIM for many years and became a life member in 1984. 2009 Scholarship winners with members of the executive committee. Boursiers 2009 avec les membres de l'exécutif.

represents another challenge for the branch when it comes to renewing its executive committee. In 2008, we organized a curling tournament and a golf tournament. We also organized four technical conferences, each with 40 to 50 members in attendance. For the past two years, we have publicized our activities through news releases in the local and regional media as well as in CIM Magazine. This initiative increased member participation and attracted new members. The linguistic barrier is also considered a significant challenge. Because our membership is 99 per

cent francophone, presenters are required to speak in French. Several speakers from Polycor, the Cégep, Royal Nickel and Opinaca Mines (Goldcorp) have captivated our audience in the language of Molière. We are committed to keeping our branch active in the service of the mining and metallurgy industry — a vital part of our local and national economy. I would like to thank my colleagues François Jacques, Richard Rodrigue and Thomas Coleman from the CIM Thetford Mines Branch executive committee and Jocelyne Vallée of LAB Chrysotile. Without their support, little would be possible. CIM

Pierre Larouche, ancient president de la section de Thetford Mines de l’ICM/ CIM Thetford Mines past chair

Richard Albert Fyles was a CIM member for many years and achieved life member status in 1994. Glenn M. Hogg joined CIM as a junior member in 1953 and became a life member in 1993. John T. Martin joined CIM as a junior member in 1969. He passed away in July 2007. Donald Hector Mode first joined CIM as a junior member in 1940 and attained life member status in 1977. He recently passed away. Peter Popowich recently passed away. He had been a member of CIM since 1993. February 2009 | 87

cim news Seeing the power of innovation An interview with CIM Distinguished Lecturer Gord Winkel The next time you are at work, take a good look around you. You just might see it; your colleagues actively engaged and excited over finding a better way to do something. Innovation: everyone is doing it, including the Canadian mining industry, whose hightech wizardry and ground-breaking concepts have propelled it to the forefront of the global market. Staying at the top of this highstakes game will be a challenge; however, innovation has never been more imperative. Canada needs to harness the power of innovation, and CIM Distinguished Lecturer Gord Winkel’s presentation, “The Innovation Imperative,” might help to point it in the right direction. CIM: Why innovation? Winkel: In my early experience in mining research we were challenged to significantly improve heavy surface mining equipment performance, and I had the opportunity to work with many talented people from different areas — from maintenance and engineering, to management. Each played an important part in making a given initiative a success. Major improvements resulted. I began to realize that when people worked together in an environment that enabled sucby Robbie Pillo cessful collaboration, they could realize solutions that were simply outstanding. Setting this positive environment makes innovation happen at every level in the company, from the dozer operator optimizing pit Gord Winkel is oil sands technology manager, Kearl Oil Sands Project, Imperial Oil Resources Ltd. and chair, Surface Mining Association for Research and Technology.

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performance to the executive strategizing on asset management. CIM: Does your lecture look at specific aspects of innovation or does it cover a broader perspective? Winkel: I am happy to say it touches on both. It takes a very national view of our industry by tackling some of society’s expectations for mining, ranging from environmental responsibility to meeting social challenges and delivering on sound economic performance. And mining has done a great job. We discuss the history and trends in innovative mining practices and achievements. In support of this, we introduce the Canadian Mining Innovation Council (CMIC) as an effort that sets a national agenda for innovation and promotes research and technology development within the industry. The lecture then shifts gears and discusses the importance of implementing an innovation culture through principled leadership, and backstopping this with supportive systems within a mining company to reach higher standards of creative achievement. CIM: What is the agenda for CMIC? Winkel: CMIC seeks to establish Canada as a global leader in the mining industry through leading-edge research and innovation. This effort looks at prioritizing research efforts and resources, addressing skill shortages, leveraging research effort through greater collaboration, reinvigorating Canada’s mining innovation systems and culture, and communicating and strengthening the Canadian mining sector’s brand and reputation for excellence and sustainability. CIM: What is innovation culture in a mining company? Winkel: An innovation culture is one that recognizes the importance of being diligent and vigilant in understanding

what’s out in the industry in terms of best practice and new technologies. It then enables employees to integrate these new ideas or technologies into practical operating procedures or improvements, and ensures that these improvements are effective and enduring. It is providing the right environment to regularly harness talent, ideas and creativity and apply them towards a tangible result. CIM: How prevalent is leadership in an innovation culture? Winkel: I think that principled leadership in a company is absolutely instrumental in setting the stage for employees to feel connected and to collaborate successfully towards that next level of innovation. It becomes a source of pride and achievement for both the mining firm and the people involved. Innovation leadership is an imperative towards making a successful mining business. CIM: This is your second time in the Distinguished Lecturer Program. Why do it again? Winkel: This program is supported by progressive mining leaders in Canada to share results that promote mining excellence in various fields. It is a learning network — a network that allows people to share knowledge, information and innovations across the country. In turn, being a distinguished lecturer is a great learning experience. In sharing your experiences you learn from others as well. CIM: What is the future of innovation in mining? Winkel: Simply — moving forward. Innovation has always been with us and always will. People are continually innovating to attain that next step of performance excellence. That will never stop and we will continue to see innovation in mining. CIM

calendar CIM EVENTS

AROUND THE WORLD

Assemblée générale annuelle de la section de Québec Présentation : M. Daniel Lamothe, MNRQ 23 février Québec, Québec Personne-ressource : Pierre Verpaelst Courriel : pierre.verpaelst@mrnf.gouv.qc.ca

UEMOA Min-Tel 2009 February 24–26 Niamey, Niger Contact: Siham Ammoura Tel.: +44.207.596.5213 Email: siham.ammoura@ite-exhibitions.com

Red Lake Branch Technical Meeting CIM Distinguished Lecturer: Robin Sheremeta March 11 Red Lake, Manitoba Contact: Carmen Storey Tel.: 807.727.3272 Email: carmen.storey@ontario.ca Soirée vins et fromages de la section d’Harricana 20 mars Val-d’Or, Québec Personne-ressource : Marcel H. Jolicoeur Tél. : 819.825.4711 Courriel : marcel.h.jolicoeur@genivar.com Conférence technique de la section de Québec Éminent conférencier de l’ICM : Clifford Stanley 23 mars Québec, Québec Personne-ressource : Marie Fortin Courriel : marie.fortinicm@hotmail.com Sudbury Branch General Membership Meeting March 25 Sudbury, Ontario Contact: George Darling Email: gbdarling@mcintoshengineering.com Conférence technique de la section d’Harricana 29 avril Val-d’Or, Québec Personne-ressource : Gérald Lefrançois Tél. : 819.825.3702 Courriel : gerald@corriveaujl.com CIM Conference and Exhibition Congrès et salon commercial de l’ICM May 10 -13 Toronto, Ontario Contact: Chantal Murphy Tel.: 514.939.2710, ext. 1309 Email: cmurphy@cim.org

PDAC 2009 International Convention, Trade Show & Investors Exchange March 1-4 Toronto, Ontario Contact: Maya Kwasnycia Tel.: 416-362-1969, ext. 240 Email: mkwasnycia@pdac.ca Website: www.pdac.ca/pdac/conv/index.html Asia Mining Congress 2009 March 23-27 Raffles City, Singapore Contact: Winnie Koh Email: winnie.koh@terrapinn.com Website: www.terrapinn.com/2009/asiamining MININGWORLD Russia 2009 April 15-17 Moscow, Russia Contact: Anna Aleinikova Tel.: +44.0.20.7596.5186 Email: anna.aleinikova@ite-exhibitions.com Paste 2009 – XII International Seminar on Paste and Thickened Tailings April 21-24 Vina del Mar, Chile Contact: Olga Cherepanova Tel.: +56.2.652.1519 Email: info@paste2009.com 1st International Seminar on Safe and Rapid Development Mining May 5-7 Perth, Western Australia Contact: Jill Holinshead Tel.: +61.8.6488.3300 Email: acginfo@acg.uwa.edu.au Website: www.srdm.com.au

February 2009 | 89

Table of Contents / Table des matières 92 92 92 94 95 96 97 98 98 100 100

Welcome Plenary Session Workshops Field Trips Guest Program Social Program Student Program Mining in Society Career Fair Bienvenue Séance plénière

100 102 103 104 105 106 106 107

Ateliers Excursions Programme des invités Programme social Programme étudiant Foire des carrières Les mines dans la société Technical Program / Programme technique 113 CIM Exhibition / Salon commercial de l’ICM

Sponsors / Commanditaires Premier

Organizing Committee/ Comité organisateur CIM President / Président, ICM Jim Gowans CIM Executive Director / Directeur exécutif de l’ICM Jean Vavrek

Diamond / Diamant

Honorary Chair / Président honoraire Ian Pearce General Chair / Président général Thomas Rannelli Technical Program / Programme technique Peter Broad, Heather Ednie

Gold /Or

Mining in Society / Les mines dans la société Dominique Dionne, Adrianna Stech, Ingrid Hann, Lesley Hymers, Catharine Shaw, Melanie Sturk, Josée Dallaire Sponsorship / Commandites Ian Pritchard, Jean Vavrek

Silver / Argent

Exhibition and Career Fair / Salon commercial et Foire des carrières Martin Bell Meeting Coordinator / Coordonnatrice de congrès Chantal Murphy Guest and Social Programs / Programme social et des invités Kathleen Gowans, Nancy Mcnab, Ian Blakley, Marty Dregishan Workshops / Ateliers Joe Hinzer

Copper / Cuivre

Student Program / Programme étudiant Philip Chang, Rick Hutson Field Trips / Excursions sur le terrain Curtis Clarke, Catharine Shaw Marketing Heather Ednie

South Australian Government, Department of Trade and Economic Development

Friends / Amis

Awards / Prix d’excellence Robertina Pillo Budget and Finance / Budget et finances Serge Major Supervision, Trade Show Logistics / Supervision, logistique du Salon commercial Jean-Marc Demers Administration Lorraine Brown

EBA Engineering Consultants Ltd. Group of Companies Partnerships and Joint Ventures

Rock Engineering Symposium / Symposium sur la mécanique des roches

Rock Engineering Symposium / Symposium sur la mécanique des roches Luc Beauchamp, Giovanni Grasselli District 3 Vice President / Vice-président District 3 David K. Joyce CIM Toronto Representative / Représentant, ICM Toronto John Lindsay Caterpillar Contact / Personne ressource - Caterpillar George Moubayed February 2009 | 91

Welcome to Toronto!

have every confidence that this year’s conference and exhibition will be our best ever. As you will see in this conference guide, CIM has lined up an impressive array of speakers and technical sessions, with topics ranging from integrating the latest technologies into mature operations, to mining in space. We have attracted leading speakers for our Plenary Session, titled Canada’s Global Impact, which once again will be moderated by Rex Murphy, CBC commentator and public intellectual. This year the technical sessions have been expanded to encompass a day-long examination of financial and mine management issues, designed to deliver vital information and knowhow in light of the current global economic conditions. In addition to the technical conference, the CIM Conference and Exhibition attracts students and families to our Mining in Society show, which offers an interesting and interactive introduction to the world of mining. It gets better each year and has maintained this trend in 2009. The Career Fair is adjacent to Mining in Society and is a tremendous draw for job hunters and an excellent and affordable opportunity for industry to pursue recruitment efforts. Our exhibition was sold out early and offers a great opportunity for supplier industries to show off their latest innovations. It is probably the greatest concentration of mining innovation you can find anywhere in the world. This is the event that is designed for mine managers, procurement experts, engineers and technicians. Whatever your objective, from knowledge to networking, the CIM Conference and Exhibition is an outstanding opportunity and shouldn’t be missed. I look forward to meeting you there! Regards, Thomas Rannelli General Chair CIM Conference and Exhibition 2009

Plenary Session Canada’s Global Impact In keeping with the conference theme, Canada’s Global Impact, the Plenary Session will bring together a panel of leading experts to discuss global projects and promote how we, as Canadians, are adding value in developed and emerging economies — providing employment, skills and management, technological solutions, environmental stewardship and leadership in the areas of corporate social responsibility and sustainability. The discussion will also explore areas where the Canadian mining industry needs to innovate to ensure continued leadership. Moderated by the popular CBC television host Rex Murphy, the session will feature insights from top mining industry leaders like Jim Gowans, president and CEO of De Beers Canada; Ian Pearce, CEO of Xstrata Nickel; Engin Özberk, vice president, innovation and technology development, Cameco Corporation, and co-chair, Canadian Mining Innovation Council; and Tony Hodge, president of the International Council on Mining and Metals.

Rex Murphy

Workshops Half-day Workshops Mining 101 This course is a relatively non-technical introduction to the basic concepts of mining, exploration, ore extraction, mineral processing, mine waste management, key aspects of the economics of mining and a few ideas about mining in the 21st century. Although the content and approach are simple, knowledge of high school science would be helpful. The workshop qualifies for the UBC Mining Certificate program, and participants receive access to a complementary online course by EduMine™. Time: 13:00 to 17:00 | Room: 206D | Participants: 10 to 45 | Cost: $150 | Instructor: Scott Dunbar, associate professor, University of British Columbia

Why Mining and Exploration Companies Should Be Interested in Carbon Finance Part One Regulatory Overview — Climate Change Compliance Systems • The Canadian federal regulatory system • The North American system, including the Western Climate Initiative and California • The Kyoto Protocol and EU ETS, as well as the Australian and other international systems

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One-day Workshops Using Dynamic Discounted Cash Flow and Real Options to Value and Manage Mining Projects

on a Canadian stock exchange. An overview of the civil liability regime in Canada under Canadian securities law and the new civil liability legislation for secondary market disclosure will also be provided. Time: 9:00 to 17:00 | Room: 205D | Participants: 10 to 45 | Cost: This workshop provides an overview of how the Dynamic Discounted $350 | Instructor: Greg Gosson, former chief mining advisor to the Cash Flow and Real Option valuation methods can help identify and British Columbia Securities Commission, now technical director of describe project value drivers and risk characteristics. Case studies geology and geostatistics, AMEC Mining and Metals Consulting Group include valuing a long-life base metal project, investigating a windfall tax, analyzing the hedge loan covenants in a project financing proposal, Corporate Social Responsibility: and estimating the flexibility value of sub-economic gold resources. the Extractive Industries Transparency Time: 9:00 to 17:00 | Room: 206F | Participants: 10 to 25 | Cost: $350 | Instructor: Michael Samis, vice president, valuation and Initiative Led by representatives from the Government of Canada, this workshop business modelling, Ernst & Young LLP | Workshop Chair: Keith focuses on Corporate Social Responsibility (CSR) efforts in the extracSpence, president, Global Mining Corporation tive sector. The one-day event will highlight key initiatives such as the Extractive First Nations: Learning Together This workshop, organized by Learning Together, will examine the intri- Industries Transparency Initiative, the OECD Multinational Enterprise cate relationships between the mining industry, aboriginal leaders and Guidelines and the United Nations Environmental Programme’s their community. The emphasis will be on aboriginal participation and Principles for Responsible Investment. experience to increase awareness of best practices on how participa- Keynote speakers will deliver “theatre-style” presentations on a range tion, engagement and accommodation can occur. Although every min- of subjects relative to CSR in Canada and abroad, touching upon subing company and aboriginal community has different expectations, it is jects of concerns to industry, governments and academia. important to participate in these live case studies to truly gain an Time: 9:00 to 17:00 | Room: 206A | Participants: 15 to 30 | Cost: $350 | Instructor: To be announced understanding of what could work for your community or company. Time: 9:00 to 17:00 | Room: 206B | Participants: 10 to 45 | China-Canada: Valuation Case Studies Cost: $350 | Instructors: Lana Eagle, board member, and Juan This workshop introduces attendees to the Chinese Mineral Property Carlos Reyes, executive director, Learning Together Valuation Standards. Presenters from CAMRA (Chinese Association of Mineral Resources Appraisers) will discuss five Chinese standards that NI 43-101 Short Course The course focuses on NI 43-101 disclosure issues and filing require- are available in English. Basic valuation concepts, methodology and ments applicable to exploration and mining companies with Canadian income, cost and market valuation techniques will be explained. The investors or companies that are seeking finance in Canada, or listing workshop will include a case study comparing valuations prepared by experts from both countries. Time: 9:00 to 17:00 | Room: 206C | Participants: 10 to 45 | Cost: $350 | Instructor: To be announced All workshops will take place on Sunday, May 10. Students pay a flat $100 for day-long workshops and $25 for half-day workshops.

Part Two Managing Risk: Regulatory Risks, Project Impacts and Sustainable Development • Canadian and international regulatory risk/requirements • Assessment and management of climate change risks impacting mining • Integration of climate change into mining industry sustainability efforts Part Three Opportunities in the Carbon Finance World • Offset projects: who can participate; outline of offset protocols under the Canadian federal system, the Kyoto system and the WCI • Carbon finance and its role in mine development • Emissions trading — strategies and investment opportunities Time: 13:00 to 16:00 | Room: 206E | Participants: 10 to 45 | Cost: $150 | Instructors: Barbara Hendrickson, partner, McMillan LLP; Corinne Boone, managing director, CantorCO2e; and Doug Tingey, associate counsel, Davis LLP

Exploring for Iron Oxide Copper-Gold Deposits: Canada and Global Analogues Comprising a range of polymetallic deposits, iron oxide copper-gold (IOCG) deposits defy simple classification. Their oxide-rich, rather than sulphide-rich, ore zones and their atypical combination of commodities present great challenges. Their unique characteristics provide means to reassess seemingly disparate Au, Cu, U, Ag, Co, REE showings and Kiruna-type alteration, facilitating the identification of potential IOCG targets in under-explored areas. This course addresses critical issues in exploring for IOCG deposits, emphasizes the importance of alteration mapping and describes giant metasomatic systems. Representative photos and rock samples from the Great Bear Magmatic Zone (Northwest Territories) will be available to examine and discuss. Time: 9:00 to 17:00 | Room: 205C | Participants: Minimum 20 | Cost: $350 | Instructors: Louise Corriveau, research scientist, Geological Survey of Canada and adjunct professor, INRS-ETE; and Hamid Mumin, professor and chair, Department of Geology, Brandon University February 2009 | 93

Field trips The four field trips (two overnight and two day-long) are designed to offer first-hand insight into mining in Ontario, its challenges, opportunities and latest developments. Among the most popular components of every CIM Conference, field trips can sell out quickly. Book early to avoid disappointment.

Day Trips

Overnight Trips

De Beers Canada Victor Mine, Northern Ontario

Xstrata Nickel Rim Project, Sudbury

Observe the mining and processing of rough diamonds at Ontario’s first and only diamond mine. Opened in July 2008, Victor is the second De Beers Canada mine in Canada. Located in northern Ontario’s James Bay lowlands, about 90 kilometres from Attawapiskat, the remote open pit mine is only accessible by air or winter road. One of 18 kimberlite pipes in the area (of which 16 are diamondiferous), the 15-hectare Victor kimberlite consists of two surface-coalesced pipes. The mine is expected to produce 600,000 carats a year, over a projected life of about 12 years. Time: 06:30 to 18:00, Thursday, May 14 | Cost: $2,000 (including bus transportation to the airport and at the site, flight, tour of mine and mill and a cafeteria lunch) | Departure: From the InterContinental Hotel | Participants: Minimum 20 to maximum 30 Creative Commons photograph by Randy OHC on Flickr.com

Niagara Tunnel, Niagara Falls, Ontario Marvel at a feat of extreme engineering. The world’s largest hard rock tunnel boring machine (TBM) is currently driving a 14.4-metre wide tunnel under Niagara Falls City. In boring 10.4 kilometres from the Niagara River to the Sir Adam Beck hydro-electric complex, the TBM will chew up 1.6 million cubic metres of rock — enough to fill up Toronto’s Rogers Centre! At the surface, about 140 metres above, no vibrations will be felt. Another drill-and-blast access tunnel is concurrently being driven from an island in the Niagara River. Time: 7:00 to 17:00, Thursday, May 14 | Cost: $150 (including bus transportation, site tour and lunch) | Departure: From the InterContinental Hotel | Participants: Minimum 20 to maximum 40 94 | CIM Magazine | Vol. 4, No. 1

Visit Sudbury’s newest and safest nickel project, and tour the underground and surface plant to learn how safety and mine development objectives were met. Discovered in 2001, Nickel Rim South is expected to provide highvalue ore feed for more than 15 years, while significantly reducing Sudbury’s unit cost. This high grade, poly-metallic resource was found at depths of 1,100 to 1,700 metres. With a 14.5 milliontonne inferred resource, the project will ramp up to 60 per cent of its ultimate 1.25 million tonne per annum production capacity in 2009. Time: 15:00, Wednesday, May 13 to 18:30, Thursday, May 14 | Cost: $400 (including bus transportation, one night’s hotel accommodation, site visits and a catered lunch) Departure: From the InterContinental Hotel | Participants: Minimum 20 to maximum 40

Vale Inco Creighton Mine, Sudbury Vale Inco’s Creighton Mine is one of the world’s deepest base metal mines. Observe Vale Inco’s extraordinary efforts to reclaim land affected by mining. The company operates surface and underground greenhouses at Creighton Mine, where some 250,000 seedlings are grown annully. Vale Inco also conducts an innovative aerial seeding program each September to treat barren lands. Since 1990, approximately 5,000 acres have been restored using this method. Creighton is one of Canada’s longest running operations, having started production in 1901. To date, more than 155 million tonnes of have been extracted at Creighton. Creighton also hosts the SNOLAB, a leading astroparticle physics study facility. Time: 15:00, Wednesday, May 13 to 18:30, Thursday, May 14 Cost: $400 (including bus transportation, a night’s hotel accommodation, site visits and lunch at the Copper Cliff Club) Departure: From the InterContinental Hotel | Participants: Minimum 20 to maximum 30 Required equipment: CSA-approved safety boots

RELIVE THE EXCITEMENT

of gold-rush prospectors. One fortunate individual will win a beautiful gold pendant and chain, designed, made and donated by Placer Gold Design. Inspired by nature, the pendant and chain links are shaped like asymmetrical natural gold nuggets. The pendant is crowned by a diamond and has a natural pearl at its base. The total worth of this treasure is over $9,000.

Guest program

All that glitters

The Guest Hospitality Suite in the InterContinental A mesmerizing necklace and matching Hotel’s Caledon/Oakville rooms will open for earrings have been donated by one breakfast each morning at 7:30 from May 11-13. very generous individual. Here, registered guests can claim a special locally Hand-crafted in gold, citrine and diamonds, this sensational set is worth nearly $10,000. crafted gift and enjoy complimentary continental breakfasts (7:30 to 9:00). After breakfast, the Suite will be the departure point for inspiring and exciting guest events.

WINE! Niagara Wine Tour

CLOTHESLINE! Trend Alert

Monday, May 11 Crush on Niagara Wine Tours presents the Social Swirl — a day trip in Ontario’s Wine Country that includes visits to: Peninsula Ridge Estates Winery; On The Twenty and Cave Springs Cellars to sample VQA wines and luxuriate over a luncheon; and Flat Rock Cellars. Time: 9:00 to 16:00 | Price: $130 | Maximum: 100 participants Departure: Meet at the Caledon/Oakville rooms and depart by bus from the InterContinental Hotel Dress: Smart casual

Wednesday, May 13 Learn about the latest fashion trends and get knowledgeable tips on styling from a leading fashion and design columnist, Lynn Spence. Hone your aesthetic sense at this interactive presentation that will give participants a comprehensive overview of fashion from cut and colour to fall and fit. Time: 9:00 to 10:30 | Price: Free for registered guests Maximum: 100 participants | Location: Caledon/Oakville rooms at the InterContinental Hotel

DINE!

A Toronto Culinary Experience

Tuesday, May 12 Meet the chef of the Royal York Hotel, which boasts Canada’s largest hotel kitchen — a three-floor facility as spacious as the interiors of three Boeing 747 aircraft! Explore the Hotel’s 18th-floor organic herbal garden and visit the apiary. Go back in time with city historian Bruce Bell’s guided walking tour of downtown Toronto, then learn trade secrets on buying the best produce in the St. Lawrence Market from a local culinary school chef. The finale: Sheer gustatory indulgence at The Chef’s House, a unique George Brown College signature restaurant. Time: 9:00 to 17:00 | Price: $75 (including tours and three-course luncheon) | Maximum: 60 participants | Departure: From the Ontario Room at the InterContinental Hotel | Dress: Casual

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Social program Taking advantage of Toronto’s famed vibrancy and thriving social scene, this year’s social program will be bigger, brighter, bubblier and better than ever before. Pick your events and mark your calendars.

Social program highlights Saturday Welcome Event "Taste of Toronto"

Sunday CIM Coal and Industrial Minerals Reception Opening Reception

Monday Lunch in the Exhibition Cocktail in the Exhibition CIM Awards Gala

Saturday, May 9

The “Taste of Toronto” Welcome Event Jointly hosted by CIM and its Toronto Branch, “Taste of Toronto” kicks off the conference, big-city style! With fine food, beverages from Toronto craft brewers, eclectic music and live entertainment; this will be one memorable Saturday night. Reception Time: 18:30 | Tastings: 19:00 to 23:00 | Price: $100 includes food and beverage tastings | Location: Royal York Hotel, Canadian Room | Dress: Business Casual Sunday, May 10

CIM Coal and Industrial Minerals Reception The CIM Coal and Industrial Minerals Society invites you to a complimentary reception that will facilitate networking, renewing acquaintances and making new friends. To mingle with the fastest growing CIM interest group, talk to Ken or Tim at the reception. There will be a brief society meeting at 3:00 p.m. Time: 14:00 to 16:00 | Price: Free | Location: Room 104

Opening Reception Tuck into a sumptuous buffet, enjoy lively entertainment and get to know your fellow conference participants at this Komatsu-sponsored, official inaugural event. Time: 18:00 to 21:00 | Price: Included in the registration fee | Location: CIM Exhibition floor | Dress: Business Casual

Tuesday Lunch in the Exhibition Student-Industry Lunch VIP Reception - By Invitation Only Cocktail in the Exhibition P&H Reception and Dance

Wednesday Closing Lunch Baseline Studies – New York Yankees vs. Toronto Blue Jays

96 | CIM Magazine | Vol. 4, No. 1

Monday, May 11

CIM Awards Gala In keeping with tradition, Caterpillar Inc. and its Canadian dealers are proud to sponsor the 111th Annual CIM Awards Gala. Back by popular demand, master of ceremonies Fred Keating will anchor the evening with his usual wit and charm as we honour the 2009 CIM Awards winners. The night’s entertainer, Molly Johnson, one of Canada’s greatest voices, is equally at ease in genres ranging from pop to jazz and blues. She has regaled royalty, hypnotized a head of state and crazed crowds with her crooning. It is your turn to be mesmerized. Reception: 18:00 | Dinner: 19:00 | Price: $150 Location: Foyer of Room 104 | Dress: Oscar-style

Student program Registration

Tuesday, May 12

Student-Industry Lunch Hear a guest speaker on a topic pertinent to your future career in the mining industry. After the talk, mingle with industry representatives and fellow students over lunch. Begin networking even before your career takes off. Time: 12:00 to 14:00 | Price: Included in the student registration fee | Location: Room 104A

P&H Reception and Dance Connect, cut loose and carouse. The P&H Gala offers a classy ambience to those of sedentary proclivities. For the more energetic, there will be some pulsating music to move to on the dance floor. Time: 20:00 to midnight | Price: Included for all participants | Location: To be announced | Dress: Sharp and chic Wednesday, May 13

Closing Lunch A last opportunity to make new connections and cement old ties over a toothsome spread. Time: 12:00 to 14:00 | Price: $60 | Location: Ontario & Niagara rooms at the InterContinental Hotel

Baseline Studies – New York Yankees vs. Toronto Blue Jays Watch the New York Yankees battle the Toronto Blue Jays from the exclusive Windows private pavilion that affords superb views of the action in the Rogers Centre. Time: Doors open at 18:30 and the game starts at 19:07 | Price: $90 (including entrance ticket and stadium fare buffet) | Location: Windows @ Rogers Centre (entrance located next to Radisson Hotel Lobby) | Dress: Casual

The registration fee is $50 for student members and $85 for non-member students, who automatically obtain a year’s CIM membership. The benefits of registration include: • Full access to technical presentations • Admission to the CIM Exhibition, Mining in Society Show and Career Fair • Invitation to the Coal and Industrial Minerals Reception on Sunday • Two drink tickets at the Sunday night Opening Reception • Drink tickets for Monday and Tuesday receptions at the CIM Exhibition • Lunch for two days on the Exhibition floor • Special student session on life after graduation and a career in mining • Student-Industry luncheon on Tuesday with a guest speaker • P&H Reception and Dance on Tuesday night • Free access to the technical papers on the web after the conference

CIM Student Poster Competition Earth sciences students, will showcase their talents before the “who’s who” of Canadian mining. Posters will be presented on a wide range of topics from geology and mining to processing and sustainability. Up to $4,000 in cash prizes will be awarded!

Student Information Session What do future employees look for in employees? Who better to answer this question than the insiders themselves? Get a handle on résumé writing, networking, preparing for interviews, industry conventions and practices, accessing the leading recruiters, relevant regulations and other useful career-building tips and hints. Time: Monday, May 11, 2009. 14:00-16:00 Location: Room 104A

Student-Industry Lunch Enlightenment, nourishment and advancement are the orders of the day at the student-industry luncheon. Hear a guest speaker on a topic pertinent to your future career in the mining industry. Enjoy lunch with industry veterans. Start networking early on in your career. Time: 12:00 to 14:00 Location: Room 104A February 2009 | 97

CIM Career Fair The 2009 CIM Career Fair is the place to be for those with a focus on careers in the mining, minerals and resource sector. For 2009, we are expanding the focus of our Career Fair. This broader focus will not only connect job seekers and employers, but will also enable visitors to access information on skills development and training related to careers in mining. The 2009 CIM Career Fair presents a unique opportunity for students, educators, professionals, organizations and corporations alike. It will: • Help maximize your recruitment efforts by connecting employment seekers with potential employers • Provide a venue for information sharing on training and skills development to potential students and professionals seeking enhanced or new skills • Provide a venue for educating students and professionals about the variety of rewarding careers available in the mining and minerals sector CIM is casting a wide net throughout the Greater Toronto Area, from Hamilton to Oshawa. We will be placing advertisements, conducting public relations and actively reaching out to traditional and non-traditional market segments in order to attract visitors to the event. Don’t miss this unique opportunity to meet them!

Women in Mining Forum As part of this year’s outreach, a Women in Mining forum will be held at MIS on Tuesday. In the morning, a panel of women from a variety of fields in the industry will share their experiences of working in the mining sector and answer questions from a crowd of female high school students. The panel will reconvene for another round in the evening, this time interacting with an audience of college and university students, young professional women, and interested delegates and members of the public. 98 | CIM Magazine | Vol. 4, No. 1

Mining in Society Held from Sunday, May 10 to Tuesday, May 13, Mining in Society (MIS) will kick-off with an opening ceremony that brings together leaders from the diamonds and space mining communities. Prestigious awards and scholarships will also be presented. MIS is the avenue at which the mining industry shows itself off to the public. Participants help showcase the dynamism, social engagement and technical prowess of the resources industry — the backbone of Canada’s economy. Pavilions displaying five main areas of mining — Mining/Processing, Exploration, Sustainability, Products/Fabrication and Education — will allow visitors to “take a walk” through the mine cycle. In addition, a special pavilion on New Frontiers will feature emerging developments in subsea and extraterrestrial mining. This pavilion is sure to be a favourite among visitors. Another draw will be the public airing of the winning videos from the Ontario Mining Association’s So You Think You Know Mining video contest, aimed at getting young people to think of the mining industry as a socially and economically beneficial enterprise and a potential avenue of rewarding employment. • MIS is your chance to connect with the public, your ultimate customers and possible future employees • Over 5,000 students have already signed up to attend • Participation in MIS is free • CIM provides the space and all the facilities Contact Josée Dallaire (jdallaire@cim.org, 514.939.2710 ext. 1320) for details.

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A gorgeous slice of self- penned retro-jazz... huge crossover appeal

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May 11, 2009 Toronto Convention Centre Toronto, Ontario Tickets 1.800.667.1246

www.cim.org

Presented by Caterpillar and its Canadian dealers

Bienvenue à Toronto!

e suis persuadé que le Congrès et Salon commercial de cette année seront les meilleurs à ce jour. Comme vous le verrez dans ce guide du congrès, l’ICM présente un vaste groupe de conférenciers et plusieurs sessions techniques; les sujets varient de l’intégration des plus récentes technologies dans des exploitations matures à l’exploitation minière sur la lune ou même sur d’autres planètes. Nous avons attiré des conférenciers de marque pour notre séance plénière : l’Impact mondial du Canada; cette séance sera encore cette année animée par Rex Murphy, commentateur et intellectuel public à la CBC. Cette année, les sessions techniques ont été élargies pour comprendre une session d’une journée complète sur l’étude des questions de gestion des finances et des exploitations minières; cette session a été conçue pour livrer de l’information et des connaissances vitales à la lumière des conditions économiques mondiales. En plus de la conférence technique, le Congrès et Salon commercial de l’ICM attire des étudiants et des familles à notre exposition Les mines dans la société qui offre une introduction intéressante et interactive au monde des mines. L’exposition s’améliore d’année en année et la tendance a été maintenue en 2009. La Foire des carrières se trouve adjacente à Les mines dans la société et elle est grandement fréquentée par ceux et celles qui cherchent des emplois; c’est aussi une occasion très abordable pour l’industrie dans sa recherche de candidats. Notre Salon commercial a vendu tous ses espaces très tôt; ce salon constitue une grande occasion pour les industries de présenter leurs plus récentes innovations. C’est probablement la plus grande concentration d’innovation minière que vous puissiez trouver au monde. C’est l’événement qui est conçu pour les directeurs de mines, les experts en approvisionnement, les ingénieurs et les techniciens. Quel que soit votre objectif, de l’acquisition de connaissances au réseautage, le Congrès et Salon commercial de l’ICM représente une occasion remarquable; ne la manquez pas! Je me réjouis à l’idée de vous y rencontrer! Meilleures salutations, Thomas Rannelli Président général Congrès et Salon commercial ICM 2009

Séance plénière L’impact mondial du Canada Pour continuer avec le thème du congrès, l’Impact mondial du Canada, la séance plénière ressemblera un panel d’experts de renommée qui discuteront de projets mondiaux et comment nous, en tant que Canadiens, ajoutons de la valeur dans les économies en émergence et en voie de développement – fournissant de l’emploi, des habiletés et de la gestion, des solutions techniques, la gérance de l’environnement et du leadership dans les domaines de la responsabilité sociale et de la durabilité. La discussion traitera des domaines que l’industrie minière canadienne devra cibler afin d’innover pour assurer un leadership continuel dans le futur. Animée par le populaire présentateur de la CBC, Rex Murphy, la session présentera des points de vue experts de l’industrie minière tels que Jim Gowans, président-directeur général de De Beers Canada, Ian Pearce, directeur-général de Xstrata Nickel, Engin Özberk, vice-président, innovation et développement technologique, Cameco Corporation, et Tony Hodge, président de l’International Council on Mining and Metals.

Rex Murphy

Ateliers Ateliers d’une demi-journée Exploration minière 101 Ce cours est une introduction relativement non technique aux concepts de base en exploration minière, en extraction de minerai, en traitement des minerais, en gestion des résidus miniers, présente les aspects clés de l’économie minière et quelques idées concernant l’exploitation minière au 21e siècle. Bien que le contexte et l’approche soient simples, des connaissances scientifiques d’un niveau scolaire secondaire seraient utiles. L’atelier réunit les conditions prescrites pour le programme UBC Mining Certificate et les participants obtiennent l’accès à un cours en ligne d’EduMineMD. Heure : 13 h à 17 h | Pièce : 206D | Participants : 10 à 45 | Coût : 150 $ | Instructeur : Scott Dunbar, University of British Columbia

Les raisons pour lesquelles les compagnies minières et d’exploration devraient s’intéresser au Fonds Carbone Première partie Survol de la réglementation — Systèmes de gestion de la conformité pour les changements climatiques • Le système de réglementation fédérale canadien • Le système nord-américain, incluant la Western Climate Initiative (WCI) et la Californie • Le Protocole de Kyoto, le système européen

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Ateliers d’une journée Utilisation des flux monétaires actualisés dynamiques et des véritables options pour évaluer et gérer des projets miniers

d’exploration qui ont des investisseurs canadiens, qui cherchent du financement au Canada ou à être inscrites à une bourse canadienne. On présentera aussi une vue d’ensemble du régime de responsabilité civile au Canada dans le cadre de la loi canadienne sur les valeurs mobilières et la nouvelle législation concernant la responsabilité civile relativement à la divulgation sur le marché secondaire. Heure : 9 h à 17 h | Pièce : 205D | Participants : 10 à 45 | Coût : 350 $ (comprend le matériel didactique, deux pauses-santé et le déjeuner) | Instructeur : Greg Gosson, ancien conseiller en chef pour les mines auprès de la Commission des valeurs mobilières de la Colombie-Britannique et maintenant directeur de la géologie et des géostatistiques pour AMEC Mining and Metals Consulting Group

Cet atelier donne une vue d’ensemble de la manière dont les flux monétaires actualisés dynamiques et les véritables options d’évaluation peuvent aider à identifier et à décrire les moteurs de la valeur des projets et les caractéristiques des risques. Les études de cas comprennent l’évaluation d’un projet de métaux de base de longue durée, l’étude d’une taxe inattendue, l’analyse des stipulations dans les prêts de couverture et l’estimation de la valeur de la flexibilité des ressources aurifères économiquement non exploitables. La responsabilité sociale corporative : Heure : 9 h à 17 h | Pièce : 206F | Participants : 10 à 25 | Coût : 350 $ l’initiative relative à la transparence des (comprend le matériel didactique, deux pauses-santé et le déjeuner) | Instructeur : Michael Samis, vice-président, évaluation et établissement industries d’extraction de modèles d’affaires, Ernst & Young LLP | Président de l’atelier : Keith N. Dirigé par les représentants du Gouvernement du Canada, cet atelier cible les Spence, président, Global Mining Corporation thèmes pertinents aux efforts de responsabilité sociale corporative dans le secteur des industries extractives. Les Premières nations : le projet Learning Cette journée soulignera les initiatives clés telles que l’Initiative relative à la Together transparence des industries extractives, les Principes directeurs pour les entreCet atelier, organisé par Learning Together, examinera les relations complexes prises multinationales de l’OECD et les Principes pour l’investissement responentre l’industrie minière, les chefs autochtones et leur communauté. L’emphase sable du Programme des Nations Unies pour l’environnement. portera sur la participation des Autochtones et l’expérience pour accroître la sen- Les conférenciers principaux feront des présentations de style « théâtre » sur sibilisation aux meilleures pratiques et comment la participation, l’engagement et divers sujets relatifs à la responsabilité sociale corporative au Canada et à l’él’accommodation peuvent se présenter. Bien que toutes les compagnies minières tranger, discutant de sujets qui préoccupent l’industrie, les gouvernements et et toutes les communautés autochtones aient des attentes - il est important de les universitaires. participer dans ces études de cas pour obtenir une véritable compréhension de Heure : 9 h à 17 h | Pièce : 206A | Participants : 15 à 30 | Coût : 350 $ ce qui pourrait fonctionner pour votre communauté ou votre compagnie. (comprend le matériel didactique, deux pauses-santé et le déjeuner) | Heure : 9 h à 17 h | Pièce : 206B | Participants : 10 à 45 | Coût : 350 $ Instructeur : à confirmer (comprend le matériel didactique, deux pauses-santé et le déjeuner) | Chine-Canada : Étude de cas d’évaluation Instructeurs : Lana Eagle, membre du conseil et Juan Carlos Reyes, Cet atelier examine les normes chinoises d’évaluation des propriétés minérales. directeur exécutif, Learning Together Des présentateurs de la CAMRA (Chinese Association of Mineral Resources Norme 43-101 – Cours abrégé Appraisers) traiteront de cinq normes qui sont disponibles en anglais. On expliLe cours cible les questions de divulgation contenues dans la norme NI 43-101 quera les concepts de base de l’évaluation, la méthodologie et le revenu, les et les exigences de la présentation applicables aux compagnies minières et techniques d’évaluation des coûts et des marchés ainsi que les techniques d’évaluation des marchés. L’atelier comprendra une étude de cas qui compare des évaluations préparées par des experts dans les deux pays. Tous les ateliers se tiendront le dimanche 10 mai au Palais des congrès du Toronto Heure : 9 h à 17 h | Pièce : 206C | Participants : 10 à 45 | Coût : 350 $ métropolitain. Les étudiants paient un tarif fixe Instructeur : à confirmer de 100 $ pour les ateliers d’une journée et de 25 $ pour les ateliers d’une demi-journée.

d’échange des quotas d’émissions (EU ETS) ainsi que les systèmes australiens et d’autres systèmes internationaux Deuxième partie La gestion du risque : les risques liés à la réglementation, l’impact des projets et le développement durable • Les risques et les exigences liés à la réglementation canadienne et internationale • L’évaluation et la gestion des risques des changements climatiques et leur impact sur les mines • L’intégration des changements climatiques dans les paradigmes de durabilité pour l’industrie minière Troisième partie Les occasions dans le domaine du Fonds Carbone • Les projets de compensation : Qui peut y participer? Vue d’ensemble des protocoles de compensation selon le système fédéral canadien, le système Kyoto et la WCI • Le Fonds Carbone et son rôle dans le développement des mines • Échange de droits d’émission — stratégies et occasions d’investissement Heure : 13 h à 16 h | Pièce : 206E | Participants : 10 à 45 p | Coût : 150 $ | Instructeurs : Barbara Hendrickson, associée, McMillan LLP; Corinne Boone, directrice générale, Cantor CO2e; et Doug Tingey, procureur associé, Davis LLP

L’exploration pour des gîtes d’oxydes de fer-cuivre-or : le Canada et les sites mondiaux analogues Comportant un éventail de gîtes polymétalliques, les gîtes d’oxydes de fercuivre-or (IOCG) défient les classifications simples. Les zones minéralisées riches en oxydes plutôt qu’en sulfures et leur combinaison minéralogique atypique présente de grands défis. Leurs caractéristiques uniques fournissent des moyens de réévaluer des indices Au, Cu, U, Ag, Co, éléments de terres rares, à première vue disparates, et une altération de type Kiruna, facilitant ainsi l’identification de cibles IOCG potentielles dans des secteurs sous-explorés. Le cours traite des enjeux critiques à explorer pour des gîtes IOCG, il souligne l’importance d’une cartographie de l’altération, et il décrit aussi les immenses systèmes métasomatiques. Des photographies représentatives et des échantillons de roches provenant de la zone magmatique Great Bear (Territoires du Nord-Ouest) seront disponibles pour examen et discussion. Heure : 9 h à 17 h | Pièce : 205C | Participants : minimum 20 | Coût : 350 $ | Instructeurs : Louise Corriveau, recherchiste scientifique, Commission géologique du Canada et professeure adjoint, INRS-ETE; et Hamid Mumin, professeur et détenteur de chaire, Département de géologie, Université Brandon February 2009 | 101

Excursions Les quatre excursions (deux impliquant un coucher et deux d’une journée) sont conçues de manière à offrir un aperçu de l’exploitation minière de l’Ontario, ses défis, ses possibilités et les derniers développements. Comptant parmi les aspects les plus populaires de chaque Conférence de l’ICM, ces excursions sur le terrain peuvent se remplir rapidement. Réservez tôt votre place pour éviter d’être déçu.

Voyages d’une journée

Voyage avec nuitée

Mine Victor de De Beers Canada, Nord de l’Ontario

Projet Nickel Rim de Xstrata, Sudbury

Venez observer l’exploitation et le traitement des diamants bruts à la première et seule mine de diamants de l’Ontario. Inaugurée en juillet 2008, la mine Victor est la seconde mine de De Beers Canada au Canada. Située dans les basses terres de la Baie James, au nord de l’Ontario, à environ 90 kilomètres d’Attawapiskat, la mine à ciel ouvert isolée n’est accessible que par avion ou par route d’hiver. L’une des 18 cheminées kimberlitiques dans la région (dont 16 sont diamantifères), la kimberlite Victor de 15 hectares comporte deux cheminées qui coalescent à la surface. La mine devrait produire 600 000 carats par année sur une durée de vie projetée de 12 ans. Durée : de 6 h 30 à 18 h 00, le jeudi 14 mai Coût : 2000 $ (comprend le transport par autobus vers l’aéroport et sur le site, le vol d’avion, la visite de la mine et de l’usine ainsi qu’un déjeuner à la cafétéria) Départ : de l’Hôtel InterContinental Participants : minimum de 20 à un maximum de 30. Photo : Creative Commons, Randy OHC on Flickr.com

Tunnel Niagara, Niagara Falls, Ontario Venez admirer un tour de force d’ingénierie extrême. Le plus grand tunnelier en roches dures au monde est en train de percer un tunnel de 14,4 mètres de largeur sous la ville de Niagara Falls. En perçant 10,4 kilomètres entre la rivière Niagara et le complexe hydroélectrique Sir Adam Beck, le tunnelier concassera 1,6 million de mètres cubes de roche, suffisamment pour remplir le Centre Rogers de Toronto! Aucune vibration n’est ressentie à la surface, environ 140 mètres plus haut. Un autre tunnel d’accès percé par forage et sautage est en cours à partir d’une île dans la rivière Niagara. Durée : de 7 h à 17 h, le jeudi 14 mai Coût : 150 $ (comprend le transport en autobus, la visite du site et le déjeuner) Départ : de l’Hôtel InterContinental Participants : Minimum de 20 à un maximum de 40 102 | CIM Magazine | Vol. 4, No. 1

Visitez le plus récent et le plus sécuritaire projet de nickel de Sudbury ; faites une tournée souterraine et de l’usine en surface afin de voir comment ils ont réussi à atteindre ces objectifs de sécurité et de développement minier. Découverte en 2001, le projet Nickel Rim South devrait produire un minerai de haute teneur pendant plus de 15 ans, tout en réduisant le coût unitaire à Sudbury de manière importante. Cette ressource polymétallique de haute teneur a été découverte à des profondeurs de 1100 à 1700 mètres. Le projet atteindra progressivement 60 % de sa production ultime de 1,25 million de tonnes par année en 2009. Durée : de 15 h le mercredi 13 mai à 18 h 30 le jeudi 14 mai Coût : 400 $ (comprend le transport par autobus, une nuit à l’hôtel, les visites de sites ainsi qu’un déjeuner avec traiteur) Départ : de l’Hôtel InterContinental Participants : minimum de 20 à un maximum de 40

Mine Creighton de Vale Inco, Sudbury La mine Creighton de Vale Inco est une des plus grandes mines qui exploite la mine de métaux de base. Venez observer les efforts extraordinaires de Vale Inco pour restaurer les terrains touchés par l’exploitation minière au cours du dernier siècle. La compagnie exploite deux serres à la mine Creighton, l’une en surface et l’autre sous terre, dans lesquelles quelque 250 000 semis sont plantés annuellement. Vale Inco effectue également un programme novateur d’ensemencement aérien à chaque mois de septembre pour traiter les terres dénudées. Depuis 1990, environ 5000 acres (2023 hectares) ont été restaurés en utilisant cette méthode. La mine Creighton est l’une des plus anciennes au Canada en fonctionnement ininterrompu depuis que la production a débuté en 1901. Plus de 155 millions de tonnes de minerai ont été extraites de la mine Creighton à ce jour. Le site héberge également le SNOLAB, un laboratoire important en physique des astroparticules. Durée : de 15 h le mercredi 13 mai à 18 h 30 le jeudi 14 mai Coût : 400 $ (comprend le transport par autobus, une nuit à l’hôtel, les visites de sites et le déjeuner au Copper Cliff Club) Départ : de l’Hôtel InterContinental Participants : Minimum de 20 à un maximum de 30

REVIVEZ LA FRÉNÉSIE

des prospecteurs de la ruée pour l’or.

Un individu chanceux gagnera un pendentif en or, conçu, monté et donné par Placer Gold Design. Inspiré par la nature, le pendentif a la forme asymétrique de pépites d’or naturelles. Le pendentif est serti d’un diamant dans le haut et d’une perle à sa base. La valeur totale de ce trésor est de plus de 9000 $.

Principales activitiés du programme des invités La Suite hospitalité dans les salons Caledon/Oakville de l’hôtel InterContinental sera ouverte pour les petits déjeuners du 11 au 13 mai à 7 h 30. Les invités inscrits pourront obtenir un cadeau d’artisanat local et les petits déjeuners continentaux gratuits (7 h 30 à 9 h). Après le petit déjeuner, la Suite sera le point de départ pour les passionnantes et captivantes activités des invités.

LES VINS! Tournée des vins du Niagara Lundi 11 mai Crush on Niagara Wine Tours présente le Social Swirl — une excursion d’une journée dans la région des vins de l’Ontario, incluant une visite à : Peninsula Ridge Estates Winery, Celliers On The Twenty et Cave Springs pour goûtez à des échantillons de vins VQA et Celliers Flat Rock Heure : 9 h à 16 h | Coût : 130 $ | Maximum : 100 | Départ : rencontre dans les salons Caledon/Oakville et départ par autocar depuis l’hôtel InterContinental | Tenue : décontractée chic

MANGER!

Une expérience culinaire à Toronto

Mardi 12 mai Rencontrez le chef de l’hôtel Royal York. La cuisine est la plus grande cuisine d’hôtel au Canada; elle est aussi spacieuse que l’intérieur de trois Boeing 747 ! Explorez le jardin-toiture vitrifié au 18e étage; toutes les herbes sont organiques. L’historien torontois Bruce Bell présentera un tour guidé du centre-ville de Toronto à travers le district financier. Puis nous rencontrons également un chef local qui nous donnera des trucs pour le choix des produits disponibles au marché. Pour terminer, une visite de The Chefs’ House du George Brown College, un restaurant unique situé dans un immeuble patrimonial Heure : 9 h à 17 h | Coût : 75 $ (comprend les tournées et un déjeuner trois services) | Maximum : 60 | Départ : du salon Ontario de l’hôtel InterContinental | Tenue : décontractée

MODE! Nouvelles tendances Mercredi 13 mai Voici l’occasion d’en savoir plus sur les plus récentes tendances de la mode et d’obtenir des conseils éclairés sur le style de la part de Lynn Spence, une chroniqueuse experte en mode. Cette présentation interactive donnera aux participantes une vue d’ensemble complète de la mode, de la coupe et la couleur à la tombée et à l’ajustement. Heure : 9 h à 10 h 30 | Coût : gratuit pour les invités enregistrés | Maximum : 100 participants | Endroit : salons Caledon/Oakville de l’hôtel InterContinental

Ça brille encore Ça brille encore! Un collier, d’une beauté fascinante, et une paire de boucles d’oreille ont été données par un individu très généreux. Faits à la main en or, et comportant des citrines et des diamants, les bijoux ont une valeur combinée de près de 10 000 $.

February 2009 | 103

Programme social Profitez de la scène sociale, vibrante et dynamique, de Toronto; le programme social de cette année sera encore plus gros, plus effervescent et meilleur que jamais. Choisissez vos activités et inscrivez-les à votre agenda.

Principales activités du programme social Samedi Réception de bienvenue « Un goût de Toronto »

Samedi 9 mai

Réception de bienvenue « Un goût de Toronto » Tenue conjointement par l’ICM National et sa section locale de Toronto, la réception « Un goût de Toronto » lance le salon commercial en grande pompe! Avec d’excellents mets, des consommations gratuites fournies par les meilleures brasseries artisanales de Toronto, de la musique éclectique et un spectacle sur scène, ce samedi soir sera mémorable. Heure de la réception : 18 h 30 | Dégustation : 19 h à 23 h | Coût : 100 $ (comprend les dégustations de nourriture et de boissons | Endroit : Royal York Hotel, salon Canadian | Tenue : d’affaires décontractée

Dimanche 10 mai

Réception de la Société du charbon et des minéraux industriels de l’ICM La Société du charbon et des minéraux industriels de l’ICM vous invite à cette réception gratuite qui vous permettra d’établir des contacts, de renouer avec des amis et de faire de nouvelles connaissances. Si vous voulez vous joindre au groupe d’intérêt de l’ICM qui affiche la croissance la plus rapide, parlez-en à Ken ou à Tim à la réception. La Société tiendra une courte réunion à 15 h. Heure | 14 h à 16 h | Coût : gratuit | Endroit : salle 104

Dimanche

Réception d’ouverture

Réception de la Société du charbon et des minéraux industriels de l’ICM Réception d’ouverture

Profitez d’un buffet somptueux, de divertissements ingénieux et socialisez avec vos confrères et consœurs durant cette soirée officielle d’inauguration du congrès, commanditée par Komatsu. Heure : 18 h à 21 h | Coût : inclus dans les frais d’inscription | Endroit : Salon commercial de l’ICM

Lundi Déjeuner dans l’enceinte du Salon commercial Cocktail au Salon commercial Gala de remise des prix d’excellence de l’ICM

Mardi Déjeuner dans l’enceinte du Salon commercial Déjeuner étudiants-industrie Réception VIP – par invitation seulement Cocktail au Salon commercial Réception et danse P&H

Mercredi Déjeuner de clôture Match de baseball : les Yankees de New York contre les Blue Jays de Toronto 104 | CIM Magazine | Vol. 4, No. 1

Lundi 11 mai

Gala de remise des prix d’excellence de l’ICM Fidèles à la tradition, Caterpillar inc. et ses détaillants canadiens sont fiers de commanditer le 111e Gala des prix de l’ICM. De retour à la demande générale, le maître de cérémonies Fred Keating animera la soirée avec son humour et son charme habituels alors que nous honorons les récipiendaires des prix 2009 de l’ICM. Possédant l’une des plus belles voix au Canada,la chanteuse Molly Johnson est à l’aise dans tous les genres de musique, le pop, le jazz et le blues. Elle a chanté devant la royauté, hypnotisé des chefs d’état et épaté les foules avec ses chansons. C’est à votre tour d’être envoûté. Réception : 18 h | Souper : 19 h | Coût : 150 $ | Endroit : foyer de la Salle 104

Principales activités du programme des étudiants Inscription

Mardi 12 mai

Déjeuner étudiants-industrie Un conférencier invité traitera d’un sujet pertinent à votre future carrière dans l’industrie minière. Après la conférence, socialisez avec les représentants de l’industrie et vos confrères étudiants. Établissez des contrats avant même de lancer votre carrière. Heure : 12 h à 14 h | Coût : Inclus dans les frais d’inscription des étudiants | Endroit : salle 104A

Réception et danse P&H Socialisez, relaxez et faites la fête. Le Gala P&H offre une ambiance de classe pour les délégués plutôt sédentaires; les plus énergiques pourront mettre leurs souliers de danse et se dandiner au rythme de la musique. Heure : 20 h à minuit | Coût : inclus pour tous les participants | Endroit : à confirmer

Mercredi 13 mai

Déjeuner de clôture Une dernière occasion d’établir de nouveaux contacts et de solidifier les anciennes amitiés à l’occasion d’un délicieux déjeuner. Heure : 12 h à 14 h | Coût : 60 $ | Endroit : salons Ontario et Niagara à l’hôtel InterContinental

Match de baseball : les Yankees de New York contre les Blue Jays de Toronto Regardez les Yankees de New York affronter les Blue Jays de Toronto à partir des loges privées de Windows qui offrent une vue spectaculaire de l’action au Centre Rogers. Heure : les portes ouvrent à 18 h 30 et le match débute à 19 h 07 | Coût : 90 $ (comprend le billet d’entrée pour le match et l’accès au buffet du stade) | Endroit : loge Windows au Centre Rogers (l’entrée est située à côté du hall de l’hôtel Radisson)

Les frais d’inscription sont de 50 $ pour les membres étudiants et de 85 $ pour les étudiants non-membres, qui deviennent automatiquement membres de l’ICM pour une année. Les avantages de l’inscription comprennent : • le plein accès aux présentations techniques • l’admission au Salon commercial, à l’exposition Les mines dans la société et à la Foire des carrières • une invitation à la réception de la Société du charbon et des minéraux industriels (dimanche) • deux coupons pour une consommation lors de la réception d’ouverture du dimanche soir • des coupons pour une boisson lors des réceptions de lundi et de mardi dans le Salon commercial • deux déjeuners dans l’enceinte du Salon commercial • une séance spéciale d’information sur la vie après la remise des diplômes et une carrière en exploitation minière • le déjeuner étudiants-industrie avec un conférencier invité (mardi) • la réception et danse P&H, le mardi soir • le libre accès aux conférences techniques sur le site Web après le congrès

Compétition ICM d’affiches par les étudiants Étudiants en sciences de la Terre, démontrez vos talents devant la crème de la crème de l’industrie minière canadienne. Présentez une affiche sur une gamme de sujets, de la géologie et de l’exploitation minière au traitement des minerais et le développement durable. Les présentateurs d’affiches ont aussi la chance de gagner jusqu’a 4000 $ en prix en argent comptant!

Séance d’information pour les étudiants Que recherchent vos futurs employeurs? Que recherchent vos futurs employeurs chez leurs employés? Qui de mieux pour répondre à ces questions que ceux qui y travaillent! Perfectionnez votre CV, apprenez à réseauter, préparez-vous pour des entrevues que sont les conventions de l’industrie, les meilleurs recruteurs, obtenez des conseils utiles pour faire avancer votre carrière. Heure : le lundi 11 mai 2009; 14 h à 16 h Endroit : salle 104A

Déjeuner étudiants-industrie Des révélations, des aliments et l’avancement sont à l’ordre du jour lors du déjeuner étudiants-industrie. Écoutez un conférencier invité traiter d’un sujet concernant votre future carrière dans l’industrie minière. Profitez de ce déjeuner avec des vétérans de l’industrie. Commencez votre réseautage dès maintenant, au début de votre carrière. Heure : 12 h à 14 h Coût : inclus dans les frais d’inscription des étudiants Endroit : salle 104A February 2009 | 105

La foire des carrières La Foire des carrières 2009 de l’ICM est l’endroit tout désigné pour ceux qui aimeraient faire carrière dans le secteur des mines, des minéraux ou des ressources. Pour l’année 2009, nous élargissons la cible de notre Foire des carrières. Cet élargissement non seulement réunira les employeurs et ceux qui cherchent des emplois mais permettra aux visiteurs d’avoir accès à de l’information sur le développement des habiletés et la formation requise pour poursuivre une carrière en exploitation minière. La Foire des carrières 2009 de l’ICM représente une occasion unique pour les étudiants, les éducateurs, les professionnels ainsi que pour les organismes et les corporations; elle aidera à : • maximiser vos efforts de recrutement et à soulager votre budget en faisant rencontrer les chercheurs d’emplois et les employeurs potentiels • fournir un endroit pour partager de l’information sur la formation et le développement des habilités avec des étudiants et des professionnels désireux de rehausser leurs habiletés ou d’en apprendre de nouvelles • fournir un endroit pour éduquer les étudiants et les professionnels quant à la variété des carrières enrichissantes disponibles dans le secteur des mines et des minéraux L’ICM jette un large filet dans toute la région du Grand Toronto, de Hamilton à Oshawa. Nous allons installer des annonces, tenir des événements de relations publiques et activement chercher à rejoindre les segments traditionnels et non traditionnels du marché afin d’attirer des visiteurs à la Foire. Ne ratez pas l’occasion de les rencontrer.

Forum Les femmes en exploitation minière Dans un cadre de sensibilisation et de rayonnement, un forum, Les femmes en exploitation minière, sera tenu avec Les mines dans la société, le mardi 12 mai. Dans la matinée, un panel de femmes de divers domaines de l’industrie partageront leurs expériences de travail dans le secteur minier et répondront aux questions d’étudiantes du secondaire. Le panel sera présent de nouveau en soirée pour les étudiantes de niveau collégial et universitaire, des jeunes femmes professionnelles, des déléguées intéressées et les membres du public. 106 | CIM Magazine | Vol. 4, No. 1

Les mines dans la société L’exposition les Mines dans la société, tenue du dimanche 10 mai au mardi 12 mai 2009 débutera avec une cérémonie d’ouverture qui rassemble les chefs de file du monde des diamants et de l’exploitation extraterrestre pour une remise de prix et de bourses. L’exposition Les mines dans la société est le moyen choisi par l’industrie minière pour se faire connaître du public. Les participants aident à informer, à éduquer et à démonter le dynamisme, l’engagement social et les prouesses de l’industrie des ressources – le fer de lance de l’économie du Canada. Des pavillons illustrant les cinq principaux domaines de l’exploitation minière – l’exploration, l’extraction / le traitement des minerais, la transformation / les produits, la durabilité et l’éducation – permettront aux visiteurs de se « balader » dans l’industrie. De plus, un pavillon spécial sur les Nouvelles Frontières présentera les développements en émergence dans l’exploitation minière sous les mers et dans l’espace. Ce pavillon sera certainement l’un des préférés des visiteurs. Un autre point d’attrait sera la présentation publique des vidéos gagnantes du concours So You Think You Know Mining de l’Association minière de l’Ontario qui visait à faire penser aux jeunes que l’industrie minière constitue une entreprise bénéfique, économiquement et socialement, en plus d’être une source d’emplois intéressants. L’exposition représente votre chance de communiquer avec le public, vos clients en bout de ligne, et de possibles futurs employés. • Plus de 4500 étudiants ont déjà signalé qu’ils y participeront. • Il ne vous coûte rien pour participer, c’est gratuit. • L’ICM fournit l’espace et toutes les installations. Contactez Josée Dallaire (jdallaire@cim.org, Tel. : 514.939.2710, poste 1320) pour plus de détails.

Technical Program / Programme technique Sessions will offer insight on key topics of interest, be they matters of innovation and technology, maintenance and operations, geology and processing, or human resources and sustainability. The program will be structured around five major themes: Operating Best Practices; Projects; Management through the Mine Life Cycle; People,the Most Valuable Resource; and Biodiversity — Down to Earth. Les sessions offriront des points de vue sur les principaux sujets d'intérêt : l'innovation et la technologie, la maintenance et les opérations, la géologie et le traitement des minerais, les ressources humaines et la durabilité. Le programme est structuré autour de cinq thèmes principaux : les meilleures pratiques d'exploitation; les projets; la gestion tout au long du cycle de vie de la mine; les gens, notre ressource la plus précieuse, et la biodiversité – des choix terre à Terre.

Mining Finance and Management Day This day-long series of presentations, will be held on Wednesday, May 13, 2009. Emphasizing the interdependency of the technical, operational and financial aspects of mining, the program will offer insights into the often misreported, rarely understood world of high finance. Expert-led sessions will address the practicalities of project development, mergers and acquisitions, valuation, listing and fundraising in Canada. A central theme underpinning the presentations will be Canada’s role on the world mining stage along with emerging players from China, Russia and India, and the opportunities presented by changing market dynamics.

Journée de gestion et de finances minières Cette journée de présentations sera tenue en parallèle avec le programme technique, le mercredi 13 mai 2009. Avec une emphase sur l'interdépendance entre les aspects techniques, opérationnels et financiers de l'exploitation minière, le programme abordera le monde de la haute finance, un monde souvent mal décrit et rarement compris. Des sessions animées par des experts traiteront de l'aspect pratique du développement de projets, des fusions et des acquisitions, de l'évaluation, des inscriptions et des levées de fonds au Canada. Un thème central des présentations sera le rôle du Canada sur la scène minière mondiale, à côté des nouveaux joueurs de la Chine, de la Russie et de l'Inde, et étudiera les occasions qui se présentent dans la dynamique des marchés changeants.

International Mine Managers’ Conference The Second International Mine Managers' Conference (IMMC) will be held as part of the CIM Conference and Exhibition this year. The IMMC will be comprised of two of the main streams in the technical program: People, the most Valuable Resource and Management through the Mine Life Cycle, combined with the Mine Management and Finance Day to offer the ultimate toolbox of practices, equipment and processes for today's mine managers. Held two years ago in Australia with the AusIMM, the IMMC brings together leaders from various fields pertinent to managing a mine operation to share best practices and emerging trends. Access to this conference is included in the delegate registration.

Conférence internationale des directeurs de mines La deuxième Conférence internationale des directeurs de mines se tiendra dans le cadre du Congrès et Salon commercial de l'ICM de cette année. Deux des principaux thèmes du programme technique : Les gens, notre ressource la plus précieuse et La gestion tout au long du cycle de vie de la mine seront jumelés à la Journée de gestion et de finances minières pour offrir une panoplie de pratiques, d'équipements et de processus pour les directeurs de mines. Tenue il y a deux ans en Australie, conjointement avec AusIMM, la Conférence internationale des directeurs de mines rassemble les chefs de file de divers domaines pertinents à la direction d'une mine afin qu'ils partagent leurs meilleures pratiques et les nouvelles tendances. L'accès à cette conférence est inclus dans l'inscription des délégués.

February 2009 | 107

Operating Best Practices

Projects

Management through the Mine Life Cycle

People, the Most Valuable Resource

Biodiversity — Down to Earth

Monday PM

Challenges driving innovation

Ontario

From discovery to feasibility and beyond

Health and safety

Climate change

Tuesday AM 1

Integrating new technologies into existing operations

Soft rock

Mine construction and development I

Engaging aboriginal people in mining

Water management

Tuesday AM 2

Solutions to energy and fuel challenges

Oil sands

Mine construction and development II

Mastering aboriginal inclusion in mining

Mining in space

Tuesday PM

SMART-led session and R&D

Speciality metals and minerals

Mine operation

Economics or ecology? Finding a sustainable balance in troubled times

Beyond reclamation

Wednesday AM 1

The next new thing I

Arctic and remote projects

Managing for closure

Mining for diversity

Wednesday AM 2

The next new thing II

International projects

Mine management and control using wireless technology

Workforce development solutions

SCHEDULE

Monday PM

Operating Best Practices

Management through the Mine Life Cycle

Challenges driving innovation

From discovery to feasibility and beyond

Chairs: Stephen Lucas, Assistant Deputy Minister, Minerals and Metals Sector, Natural Resources Canada; Michel Plouffe, senior research engineer, MMSL, Natural Resources Canada; and Robert Lomas, special advisor to the director general, Natural Resources Canada Innovation drives the improvements needed to keep our operations viable and maintain Canada’s world leadership in mining. This session will look at challenges to and best practices in innovative thinking and development. The session will include presentations by:

Chairs: Keith Spence, president, Global Mining Corporation; and Barbara Mossop, manager, environment and energy, Ontario Forest Industries Association

S. Lucas, Assistant Deputy Minister, Minerals and Metals Sector, Natural Resources Canada J. Thompson, vice president, technology, Teck Y. Harvey, directeur-général, Consortium de recherche en ressources minérales (COREM) G. Winkel, oil sands technology manager, ExxonMobil Corporation W. Westgate, 3M Global Mining and Mineral Extraction

Projects Ontario Chair: Chris Hodgson, chairman, Ontario Mining Association The session highlights some of the leading technologies improving production, safety and efficiencies at mine projects in Ontario. These technology stories demonstrate that the application of innovative thinking and responsible management can spell operational success. CAMIRO Microbolter C. Graham, CAMIRO Mining Division, and R. Rennie, Medatech Engineering Helping Ontario's newest underground mines optimize ventilation M. Masse, Simsmart Technologies

Who decides if an NI 43-101 technical report is still current? G.J. Gosson, AMEC Americas Limited Evaluating exploration projects: getting the most ‘bang for your buck’ B. Bell, P. Guj, Centre for Exploration Targeting, and O. Kreuzer, Regalpoint Exploration Quantitative risk analysis for mine life cycle management D. Evans, C. Coulthard, and I. Henderson, CSC Project Management Services How should mining companies select the optimal portfolio of production projects considering the risk of their NPV? J.C. Lucio, Vale

People, the Most Valuable Resource Health and safety Chair: Ric deMeulles, president and general manager, Mines and Aggregates Safety and Health Association The economic moment of truth for safety commitment D. Ritz, Barrick Gold Corporation Challenges and successes in establishing a safety culture from a contractor’s perspective R. Slack, Cementation Canada Inc. Research moves safety closer to the “no harm” goal T. Eger and A. Godwin, Laurentian University Safety leadership in tough times V. Baker, FNX Sudbury Operations

Biodiversity — Down to Earth Climate change

Abstracts available online www.cim.org

108 | CIM Magazine | Vol. 4, No. 1

Chair: David Clarry, director of business consulting, mining and mineral processing business unit, Hatch Ltd. Climate change: risks and opportunities for mining and exploration companies B.J. Hendrickson, McMillan LLP

What’s in a goal? Strategies for carbon management in mining B. Dudley, The Delphi Group Nickel and climate change S. Wong and B. McKean, Nickel Institute GHG abatement through energy optimization D. Clarry, J. Tsai, and E. Cruz, Hatch Ltd.

Tuesday AM 1

Operating Best Practices Integrating new technologies into existing operations Chair: Mike Lipsett, professor, department of mechanical engineering, University of Alberta How wireless applications are improving performance in mining, metals and petroleum industries D. McKenna, Honeywell Process Solutions Integrating environmental management and mine production management G. Melvin, Mincom Implementation of the ARVARC (autonomous ready) drilling control system L. York, C. Stacy, and J. Cima, Flanders Electric MLA and applications in plant design and optimization J. Zhou and Y. Gu, JKTech Pty Ltd.

Commissioning — the interface between construction and operations B. Bailey, Hatch Ltd. Nickel Rim South — Xstrata Nickel’s first new mine in Sudbury in 20 years M. Welch and R. Collins, Nickel Rim South Project Improving mineral project performance F. Biery, Independent Project Analysis

Projects Soft rock

People, the Most Valuable Resource

Chair: Paul Labbé, manager, business development, Saskatoon Mining and Minerals, Wardrop Engineering Inc. The session will include presentations that investigate the leading operations in potash, coal and other soft rock commodities. Topics will include project overviews, technical challenges, new developments on the technological, logistical and economic fronts, and discussions of the general state of the soft rock extractive industry in Canada and beyond.

Engaging aboriginal people in mining Chair: Ryan Montpellier, executive director, Mining Industry Human Resources Council (MiHR) A mining employment guide for aboriginal communities R. Montpellier, Mining Industry Human Resources Council (MiHR) Best practices in aboriginal development: reclamation and prospecting (RAP) program M. Van der Touw, Northwest Community College An overview of the First Nations Natural Resources Youth Employment Program — aboriginal camps L. Hymers, Prospectors and Developers Association of Canada Mining Matters

Management through the Mine Life Cycle Mine construction and development I Chair: John Pearson, director, Hatch Ltd.

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! February 2009 | 109

Biodiversity — Down to Earth Water management Chairs: Hugh Fleming, global director, Hatch Water; and David Gladwell, senior geochemist, Wardrop Engineering Inc. Environmental concerns are a driving force behind innovation, permitting and mine design. This session will highlight some of the latest developments in the management of the environment, especially with respect to water-related issues.

People, the Most Valuable Resource Mastering aboriginal inclusion in mining Chair: Ryan Montpellier, executive director, Mining Industry Human Resources Council (MiHR) Mastering aboriginal inclusion in mining: MAI in mining helps organizations become employers-of-choice for aboriginal talent and creates prosperity for aboriginal workers K. Lindsay, Aboriginal Human Resource Council, and R. Montpellier, Mining Industry Human Resources Council

Biodiversity — Down to Earth

Tuesday AM 2

Operating Best Practices Solutions to energy and fuel challenges Chairs: Mel Harju, energy advisor, Maxemiser Energy Services; and Andy Lemay, energy analyst, Vale Inco Ltd. This session will discuss the fuel challenges that different mining companies are experiencing and the solutions they are devising. A panel of energy specialists will explain the problems and their companies’ solutions. The viability of alternatives such as using geothermal energy will be discussed. The panel will comprise: B. Dahl, CMRP, maintenance superintendent, Musselwhite Mine, Goldcorp A. Lemay, energy analyst, Vale Inco Ltd. M. Burke, director, industrial programs division, Office of Energy Efficiency, Natural Resources Canada

Projects Oil sands Chair: Ken Chekerda, senior mining technologist, Syncrude Canada Ltd. Some of the leaders of Canada’s critical oil sands industry take the podium to address concerns, present facts and dispel misconceptions about this industry, one of the mainstays of the Canadian economy. Speakers will include: D. Thompson from the Oil Sands Developers Group, who will speak on Unearthing facts in the oil sands debate Anne-Marie Toutant from Suncor Keith Firmen from Shell

Management through the Mine Life Cycle Mine construction and development II Chair: Ian Pritchard, executive vice president, operations and projects, PhosCan Chemical Corp. Crowflight Minerals — Bucko mine development P. Keller, Crowflight Minerals The development of Buzwagi mine in Tanzania D. Anthony, Barrick Gold Corporation Paracatu Project, Brazil L.A. Tondo, Kinross Gold Corporation “Opscap”: Victor Project’s transition to operations T. Copland, AMEC, and B. Rausch, De Beers Canada

110 | CIM Magazine | Vol. 4, No. 1

Mining in space Chair: Dale Boucher, director, innovation, Northern Centre for Advanced Technology Inc. (NORCAT) Mining for space — why now? M. Doyon, Canadian Space Agency Space resource utilization hardware field demonstration W. Larson, J. Quinn, and T. Simon, National Aeronautics and Space Administration Technology transfer: examples and applications J. Richard, Electric Vehicle Controllers Ltd. NASA and lunar mining — construction activities and plans G. Sanders, K. Sackstede, and W. Larson, National Aeronautics and Space Administration

Tuesday PM

Operating Best Practices SMART-led session and R&D Chair: Gord Winkel, chair, Surface Mining Association for Research and Technology (SMART) EMESRT (Earth Moving Equipment Safety Round Table) S. Leveritt, EMESRT, and M. Byrne, Newmont Mining Benchmarking and mining supporting continuous improvement R. Doll, Marston & Marston Inc., and T. Demorest, Syncrude Canada Ltd. The innovation imperative for the mining industry G. Winkel, SMART, and T. Demorest, Syncrude Canada Ltd. The large tire user group P. Graham, Albian Sands, and B. Jones, Barrick Gold Coporation

Projects Specialty metals and minerals Chair: Chuck Edwards, director, metallurgy, AMEC The Legacy Potash Solution mine project: advantages and challenges from exploration to operation M. Ferguson, Potash One Inc., S. Halabura, North Rim Exploration Ltd., and M. Ramey, Potash One Inc. Diamonds in Saskatchewan E. Cline, Shore Gold Inc. Exploration of the Novoveska Huta uranium deposit in Slovakia R.N. Eliason, Tournigan Energy Ltd. Adapting to ore characteristics at Lac des Iles mine E. Legault-Seguin, North American Palladium Ltd. Advances in cobalt processing P. Wells and K. Scholey, Vale Inco Technical Services Limited

Management through the Mine Life Cycle

Wednesday AM 1

Mine operation

The next new thing I

Chair: Kirk Rodgers, principal, Golder Associates Ltd.

Chair: Jean-Marc Demers, senior director, business management and strategic development, CIM

Mine operations: is bigger better? E. Hinton, Golder Associates Ltd. Grade control and the life of mine plan M. McKevitt, Golder Associates Ltd. Manning best practice in Australia S. Williams, M. Rajagopalan, B.M. Smith, and N. Farrell, AMC Consultants Pty Ltd Get more production reliably from existing mobile and fixed assets –technology advancements to optimize asset performance J, Nesbitt and K. Donovan, Ivara Corporation Towards optimum value in underground mine scheduling L. Fava, MIRARCO - Mining Innovation, P. Dunn, Western Australian School of Mines, J Fitzgerald, Kiko (Aust) Pty Ltd, and S. Wilson, Barrick Gold Corporation

People, the Most Valuable Resource Economics or ecology? Finding a sustainable balance in troubled times Chairs: Joseph Ringwald, vice president, operations, Brett Resources Inc.; and Lee Nehring, vice president, sustainability and human resources, Xstrata Nickel As the global economic crisis deepens, economic survival becomes the top priority. In these circumstances, will commitment to sustainability and good corporate citizenship become marginalized? Should we allow this to happen? Or is it sheer indulgence to even discuss these concerns at times like this? These are the fundamental questions that a panel of experts from the resources industry, the banking and finance sector, First Nations communities and non-governmental organizations will address. Panellists will pose questions about why and how to strike a balance between commitments to survival, profitability and sustainability. The discourse will help erect a framework within which companies can effectively manage priorities in the years to come.

Operating Best Practices

Integrating radar proximity sensing and machine vision to improve mining equipment safety with minimal operator distraction N. Nabavi and N. Ziraknejad, Motion Metrics International Corp. New developments for sensor based sorting in mining K. Bartram, Commodas Inc., and M. Kowalczyk, Terra Vision Innovative infrastructure applications S. MacRae and D., Heckendorn, Atlantic Industries Limited How 3D images support rock engineering A. Gaich, M. Poetsch, 3G Software & Measurement GmbH, and W. Schubert, Graz University of Technology

Projects Arctic and remote Chair: Brock Junkin, president and CEO, Sakku Investments Corp. Arctic environs can be an enormous challenge for personnel, machines and logistics. It is an unforgiving environment with muggy conditions in summer and 24-hour darkness with -60º wind chills in winter. In spite of these odds, this challenge has been met by the resources industry. Learn how this is done from four leading northern operators: N. Poushinsky, Nunami Jacques Whitford Ltd., will talk about the environmental ramp-up to successful mining and exploration in Canada’s north. M. Hempenstall, Nuna Group of Companies, will address the many logistic challenges of a northern operation. A. Ducharme, president, Starfield Resources Ltd., will tell the story of the advanced exploration play at Ferguson Lake in the Kivalliq Region of Nunavut. D. Gourde, mine site manager, Meadowbank, Agnico-Eagle Mines, will expand upon the challenges of building a mine in the Kivalliq Region of Nunavut, “the land where the north wind blows.”

Biodiversity — Down to Earth Beyond reclamation Chair: David Bleiker, leader, Eastern Canada mining sector and associate engineer, AMEC Lessons learned from wide area risk assessment studies of mining and smelting sites C. Moore, R. Hull, E. Sigal, G. Ferguson, L. Marshall, and R. Willis, Intrinsik Environmental Sciences Inc. Wasteland to biofuel source A. Lock, G. Spiers, MIRARCO, P. Becket, Laurentian University, and B. Tisch, Natural Resources Canada Use of engineered wetland technology for long term minewater treatment at closed mines J. Higgins, M. Liner, Jacques Whitford Ltd., D. Baxter, Ontario Graphite Ltd., A. Mattes, Nature Works Remediation, and M. Liner, Jacques Whitford Ltd. Geomorphic design of alluvial channels for closure drainage D. McDonald, L. Sawatsky, and F. Ade, Golder Associates

February 2009 | 111

New discoveries in the relationship between macro and micro grindability J. Starkey, Starkey & Associates, and M. Samuels, Fortune Minerals Limited The key to thickener performance K. Roberts, Outotec (Canada) Ltd.

Projects International projects Chair: Peter Edmunds, director, global strategic customers, Atlas Copco

Management through the Mine Life Cycle Managing for closure Chair: Elizabeth Gardiner, vice president, technical affairs, Mining Association of Canada Long range mine planning at Vale Inco Ontario operations L. Weitzel and S. Lowen, Vale Inco Green Mining Initiative J. Zinck, L. Laverdure, G. Tremblay, and T. Hynes, CANMET-MMSL

People, the Most Valuable Resource Mining for diversity Chairs: Ryan Montpellier, executive director, Mining Industry Human Resources Council (MiHR); and Ingrid Hann, vice president, human resources, De Beers Canada Mining for Diversity is the result of MiHR’s Mining Attraction, Recruitment, and Retention Strategy (MARS), a research project involving 27 mining companies. This session will introduce the Mining for Diversity tool and highlight several companies’ HR best practices focusing on aboriginal people, women, youth and new Canadians. The 90-minute session will include presentations by: I. Hann, vice president, HR, De Beers Canada, on her company’s efforts to create an environment conducive to maximizing the contributions of all available talent, including women, aboriginal peoples and intergenerational groups H. Bruce-Veitch, manager, HR and organizational effectiveness, IOC Canada, on the company’s “Grow Our Own” initiative S. Junor, senior specialist-workforce planning, Cameco Corporation, on his company’s strategies to engage youth and aboriginal people M. Sturk, Mining Industry Human Resources Council (MiHR), on Mining for Diversity: An employer’s guide to attract, recruit and retain a diverse workforce

Wednesday AM 2

Operating Best Practices The next new thing II Chair: Jean-Marc Demers, senior director, business management and strategic development, CIM SIROVISION J. Korczak, Datamine Canada Inc. RockWeb – an innovative TSL technology for today’s mining environments and the next generation of hard rock mine operations T. Macpherson, Spray On Plastics Ltd. 112 | CIM Magazine | Vol. 4, No. 1

Succeed globally O. Corbu, Department of Foreign Affairs and International Trade Challenges of international mining projects M. Beare, SRK Consulting (UK) Ltd. A review of current rapid mine drifting and tunnelling at selected mines and civil projects around the world G. Nord, Atlas Copco Rock Drills AB Using international construction project management techniques in the mining industry F. Russell and T. Harrison, Turner & Townsend

Management through the Mine Life Cycle Mine management and control using wireless technology Chair: Glenn Booth, vice president, marketing, Rajant Corporation An informative and interactive panel session on the latest in off-site and remote control technology including deployment case studies. The session includes presentations by: G. Anderson, senior vice president, Rajant Corporation, who will speak on Advancements in radio, wireless and mining technology S. Beer, GM, information systems and technology, Rio Tinto, who will speak on Improvements to efficiency and production through technology R. Kummer, senior analyst, mobile plant, Rio Tinto, who will speak on Iron Ore Company of Canada and Kennecott Utah Copper Corp Case Study — deployment lessons learned J.P. Peck, president, PeckTech Consulting and department head of mining engineering, Queen’s University, who will speak on Mining machine automation — future requirements

People, the Most Valuable Resource Workforce development solutions Chairs: Ryan Montpellier, executive director, Mining Industry Human Resources Council (MiHR); and Ingrid Hann, vice president, human resources, De Beers Canada Labour market intelligence: an update on the supply and demand of human resources for the Canadian mining industry B. Kirby, Mining Industry Human Resources Council (MiHR) Explore for More — a career brand for the industry M. Sturk, Mining Industry Human Resources Council (MiHR) Engaging the next generation of talent — marketing strategies to attract youth S. Chen, Ramius Corporation

Keep up to date Visit www.cim.org

CIM Exhibition The CIM Exhibition will be grander, more vibrant and more impactful than ever before. Leading equipment, technology, processes and services will be on display at the Canadian mining industry’s premier event. The CIM Exhibition attracted approximately 4,000 participants in Edmonton last year. This year’s exhibition is already a sell-out. A larger-than-ever number of participants are expected to visit the show, meet new exhibitors, reconnect with loyal suppliers, contractors, and consultants and generally mingle with the leading lights of the industry. It’s the place to learn about the tools, technologies, services, and other opportunities available to foster the strength of your operation and profession.

Le Salon commercial de l’ICM Le Salon commercial de l'ICM sera encore plus grand et aura encore plus d'impact qu'auparavant. Les entreprises chef de file en équipements, en technologies, en procédés et en services seront toutes présentes à l'événement par excellence de l'industrie minière canadienne. Le Salon commercial de l'ICM a attiré environ 4 000 participants à Edmonton l'an dernier. Cette année, les places sont déjà toutes vendues. Avec un taux de croissance de 15 pour cent au cours des trois dernières années, un plus grand nombre encore de participants devraient visiter le salon, rencontrer les nouveaux exposants, renouer avec leurs loyaux fournisseurs, entrepreneurs et consultants et, de manière générale, socialiser avec la crème de l'industrie. C'est l'endroit tout désigné pour apprendre ce qu'il y a de nouveau concernant les outils, les technologies, les services et les autres possibilités offertes pour accroître la force de votre exploitation ou de votre profession.

List of exhibitors / Les exposants Company/Companie

Booth/Stand

3G Software & Measurement GmbH 3M Canada Company 48e Nord International A.W. Chesterton Company Ltd. ABB Inc. ABC Canada Technology Group ABS Canada Acklands-Grainger Inc. Active Control Technology Inc. ADAM Technology AGAT Laboratories Ltd. AirSep Corp., Commercial Products Division Alberta Research Council Algosys Inc. Allied Construction Products, LLC AMEC AmerCable ATCO Frontec Atlantic Industries Limited Atlas Copco Construction and Mining Canada B.I.D. Canada Ltd. BASF Construction Chemicals BBA Engineering Beijing United Chinese Business International Consulting Co. Ltd. Bison Fire Protection Inc. Boart Longyear Canada Breaker Technology Ltd. Bridgestone/Firestone Canada Inc. Business Today Butler Manufacturing Company C.J. Stafford & Associates Canada Kalprotect Inc. Canadian Association of Mining Equipment & Services for Export Canadian Dewatering Ltd. Canadian Light Source Inc. Canadian Mining Journal (CMJ) Canun International Capotex Carlson Software Cattron-Theimeg Canada Ltd. Cavotec Canada Inc. Cementation Canada Inc. Centre for Excellence in Mining Innovation (CEMI) Chemline Plastics Limited CK Logistics Claessen Pumps Limited Clark Builders Clifton Associates Ltd. COGEP Columbia Steel Casting Co., Inc. Commodas Inc. Continental Cartage Inc. Continental Conveyor Ltd.

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Company/Companie

Booth/Stand

Converteam Canada Inc. Corriveau J.L. & Ass. Inc. / 3D Gyro Survey & Scan Cover-All Building Systems of Ontario Cubex Limited Cummins Eastern Canada LP Datamine Canada Inc. De Beers Group Services Pty Ltd. Delkor Americas Department of Trade and Economic Development, Government of South Australia DEVTRA Inc. DMC Mining Services DOK-ING Ltd. DuBois Chemicals Inc. Dumas Contracting Ltd. Duratray International Pty. DUX Machinery Corporation Dynapro Equipment Limited Dyno Nobel Canada Inc. EBA Engineering Consultants Ltd. Electrical Safety Mining Services Group Endress+Hauser Enduride Canada USA Engineering Seismology Group Canada Inc. (ESG) ErgoTech Ltd. EtQ, Inc. Explosives Partnership Fabreeka International, Inc. Fenner Dunlop Conveyor Belting Americas Festo Inc. Firestone Building Products Company Flairbase Inc. Flanders Electric Motor Service Flip Productions Ltd. FLSmidth Minerals FMC Technologies Fransen Engineering Ltd. FT Services Fuller Industrial Corp. G Plus Industrial Plastics inc. Gartner Lee Limited GCTS Testing Systems GEA Westfalia Separator Canada Inc. Gemcom Software International Inc. General Electric General Kinematics Genivar Geosynthetic Systems GMSI/(GijimaAst Mining Solutions International) Golder Associates Ltd. GroundProbe NA LLC 114 | CIM Magazine | Vol. 4, No. 1

733 909 1610 633 227 1016 337 1520 610

1630 204 1537 1511 326 1316 311 126 205 1221 1310 928 1504 732 1405 1319 332 116 1304 1531 530 921 1621 737 627 804 1539 1213 1528 922 1201 1239 1502 803 1333 1530 910 1339 317 816 438

Company/Companie

Booth/Stand

Groupe Canam inc. Gundlach Equipment Corporation Hägglunds Drives (Canada) Inc. Hamsar Diversco Inc. Hatch Heath & Sherwood (1964) Limited — Mississauga Hedweld Engineering Pty Ltd. Heintzmann Hella, Inc. Hepburn Engineering Inc. Hermann Paus Maschinenfabrik GmbH HLS HARD-LINE Solutions Inc. Honeywell Horne Hosokawa Micron Powder Systems HPD Imperial Oil Ltd. Independent Mining Consultants Inc. Industrial Fabrication Inc. Inflatable Packers International Pty Ltd. InnovExplo Inc. Instrumentation GDD Inc. International Mining ITT Water & Wastewater ITW Devcon J. Lanfranco Jacques Whitford Limited Jannatec Radio Jebco Industries Jennmar Canada Joest Inc. John Meunier Inc. JPi Kal Tire Kenwood Electronics Canada Inc. Komatsu International (Canada) Krupp Canada Inc. L. Fournier & fils inc. Larox Canada Lasher Tools (Pty) Ltd.

932 1637 1427 1535 321 1512 1321 1635 1327 1223 1028 701 118 809 1331 1209 721 206 117 1623 917 1006 NS02 711 813 108 235 1411 1218 1602 1030 1207 521 621 1404 417 216 920 1219 513

Company/Companie

Booth/Stand

Layfield Group Ledcor CMI Ltd. Leica Geosystems Inc. Les aciers JP Les Industries Desjardins ltée Les Systèmes Semco Limitée Liebherr-Canada Ltd. Loesche GmbH Luff Industries Ltd. LYNN Co. Ltd. Machines Roger International Inc. MacLean Engineering & Marketing Co. Limited Mailhot Industries Mala GeoScience Mansour Group of Companies Marcel Baril ltée Marco Systemanalyse und Entwicklung GmbH Maschinenfabrik Gustav Eirich GmbH & Co. KG Maschinenfabrik Köppern GmbH & Co. KG Matrikon Inc. McClellan Healy Associates MDH Engineered Solutions Mecanicad MegaDome Meglab Electronics Met-Chem Canada Inc. Métallurgie Castech inc. Metcon Sales & Engineering Ltd. Mettler Toledo Michelin North America Inc. Micromine North America MiHR (Mining Industry Human Resources Council) Mincom Mincon Mining Equipment Mine Cable Services Corp. Mine Design Technologies Mine Hoists International Ltd. / G.L. Tiley & Associates Ltd.

1338 437 208 1007 901 939 237 1032 1222 1402 923 536 1005 334 416 906 1034 1038 1026 330 1615 439 1004 1009 902 1011 908 1418 130 517 1401 105 1317 132 1423 1217 436

Company/Companie

Booth/Stand

Mine Site Technologies 1020 Mining Equipment 2000 1002 Mining Technologies International Inc. 617 Minova Canada Inc. 1436 Mintec, inc. 1506 MIRARCO - Mining Innovation 231 MMD Mineral Sizing 821 ModSpace 1434 Motion Metrics Int’l Corp. 1517 Moventas Ltd. 333 MTU Detroit Diesel 527 Mullen Trucking LP 620 Multiurethanes 122 Multotec Canada Ltd. 717 MWG Apparel Corp. 1409 National Compressed Air 433 National Railway Equipment Company 534 Natural Resources Canada 727 CANMET-MMSL Natural Resources Canada / CIPEC 1334 NL Technologies Inc. 1400 Nord Gear Ltd. 839 Nordex Explosives Ltd. 1430 810 North American Construction Group North Fringe Resources Inc. 226 1229 Nuclear Waste Management Organization Ontario Ministry of Northern 1510 Development & Mines 1611 Optical Cable Corporation Orica Canada, Inc. 603 1300 OSIsoft (Canada) BNS2 Outotec (Canada) Ltd. P.R. Engineering Limited 1403 Pacific Bit of Canada Inc. 121 Peacock 1634 Peter Kiewit Sons Co. 1305 Petro-Canada Lubricants 210 124 Pipeline Systems Incorporated 2 Placer Gold Design Plafolift 1003 1516 Polar Mobility Research Ltd. 1336 POLARIS Laboratories, LLC

Company/Companie

Booth/Stand

Polycorp Ltd. Polydeck Screen Corporation Pompaction inc. Precismeca Limited ProMinent Fluid Controls Python Mining Consultants and Python Recruiting Services Queen’s University - Mining Engineering Dept. R.D.H. Mining Equiptment Rajant Corporation Randy Smith Training Solutions Rexnord Canada LP RGF Environmental Group, Inc. Rich Rotstein Chartered Accountants LLP Rock-Tech Sales & Services Ltd. Rocscience Inc. Roymec Technologies (Pty) Ltd. RPA Process Technologies RST Instruments Ltd. Runge Mining (Canada) Pty Ltd. RW CTS Ltd. Sabin Metal Corporation SAFEmap North America Schurco Pump Company Schwing Bioset, Inc. Scott Construction Group / AECON Scott Wilson Roscoe Postle Associates Inc. Seprotech Systems Inc. SEW-Eurodrive Co. of Canada Ltd. Shaft Drillers International Shaw Almex Fusion Canada Shell Canada SIEMAG M-Tec Inc. Siemens Canada Ltd. SimMine Simson Maxwell SM-Cyclo Canada SME (Society for Mining, Metallurgy & Exploration) SMS Equipment Inc.

807 1629 817 1503 1301 1601 435 827 338 104 127 1606 1407 310 1227 413 1500 1508 1320 836 106 1620 1518 1625 101 1608 1329 1626 1330 217 1437 832 307 1505 936 1521 532

Booth/Stand

SNC-Lavalin 110 Snowden 934 1337 SoilVision Systems, Ltd. Soprema 1428 South African Consulate General: 410 Toronto Stantec Mining (formerly 1237 McIntosh Engineering) Starkey & Associates 1312 STC Footwear 919 Superior Safety Inc. 336 Takraf Canada Inc. 1526 Technosub Industrial Pumps 916 Tega Industries Canada 1527 Telsmith, Inc. 312 TEMA Isenmann, Inc. 1205 TEMA Systems, Inc. 1603 Terex Mining 533 Terra Vision 835 The Mining Equipment Prospector NS01 The Northern Miner 100 Thermo Scientific, part of Thermo 1416 Fisher Scientific Thomas Engineering Ltd. / 811 MDL Canada Thunderbird Mining Systems 114 Triple D Bending 1326 Tsubaki of Canada Ltd. 1633 United Central Industrial Supply 316 Company Urecon Ltd. 1306 URS Washington Division 320 URSTM - Unité de recherche 904 et de Service en Technologie Minérale Vancouver Gear Works Ltd. 1211 VDMA c/o Gesellschaft zur 1036 Foerderung des Maschinenbaues GmbH Victaulic 1203 1419 Vicwest Voith Turbo Inc. 200 VSE Engineering cc 412 800 W.S. Tyler Canada Wabi Iron & Steel Corp. 1431 Wajax Industries 705 1616 Weir Power & Industrial 131 WesTech Engineering Inc. Western Protection Alliance Inc. 221 1507 Westpro Machinery Inc. 1013 Wilson Mining Products Winsted Group Inc. 1639 1519 WOLF - Metalúrgica 606 WorleyParsons Canada - Minerals & Metals 1231 YieldPoint Inc. ZETEC Technologies International inc. 1000

637 February 2009 | 115

history Homestake, South Dakota (Part 4)* by R.J. “Bob” Cathro

“An accusation frequently leveled at the mining industry is that local people, towns and state received little in benefits from the extraction of irreplaceable natural resources. Homestake has been a clear exception on that score. The company stands in the forefront for its flair and equitable treatment of its workers and the town of Lead, and for its willingness to work with the state of South Dakota on an array of issues. From the days of George and Phoebe Hearst through World War II, paternalism in its best clothes has been a hallmark of the Homestake Mine and Lead. ‘The town is the Homestake and the Homestake is the town,’ commented one writer.” ~Smith, 2001

*The information on the industrial relations of the Homestake Mining Company has been derived from Cash (1973), Fielder (1970) and Robbins (1994). The descriptions of the other mines in the Black Hills was obtained from Koschmann and Bergendahl (1968), from published records of Wharf Resources and from personal communications with Jim Lessard, exploration/land manager, and R.E. ‘Dutch’ Van Tassell, former vice president of exploration, Wharf Resources. 116 | CIM Magazine | Vol. 4, No. 1

The Homestake mine was not only a great gold deposit that produced for over a century and contributed enormously to the science of economic geology. It was also the heart of a mining camp that served as a striking example of how a mining town such as Lead could be a fine place to live and work in. It was quite unlike other mining towns of that era in the American West. In the words of Malone (1986), “the great Homestake gold mine was a bit of an anomaly: from its beginnings in 1877 and lasting until the outbreak of World War II, the Homestake venture generated great profits for its investors and regular paychecks for the miners.” The Homestake camp is a stark contrast to Butte, Montana, which will be the next camp to be described in this series. Both camps were founded on remote deposits that produced for over 100 years and made an internationally significant contribution to global production and geological knowledge. Moreover, both received their initial funding from the Hearst Syndicate and became the basis for multinational mining companies. The main difference between them was that Lead was a peaceful company town that was operated in a paternalistic manner, whereas Butte, which didn’t have a single, benevolent, corporate owner for the first several decades, became the epitome of the Wild West on steroids. Lead was fortunate that the local environment was largely unharmed because the treatment process did not require a smelter. Modern amenities, such as professional fire and police services, paved streets, and excellent modern schools and hospitals, were introduced in Lead as soon as they appeared in larger cities. The company strongly encouraged home ownership by assisting with home loans. Lots were provided free and the homeowner was required to pay taxes only on the home, not the land. After George Hearst died in 1891, his majority ownership in Homestake Mining shares was inherited by his wife Phoebe, 22 years his junior. An educated and strong-willed woman whose social views were quite advanced for her era, she probably deserves much of the credit for the enlightened attitude subsequently adopted by senior management. In particular, she had strong ideas about industrial relations and the treatment of workers. Her policies were largely carried out by her protégé, a relative named Edward H. Clark, who served as a Homestake director for half a century (18941944) and as president for the last 30 years. Phoebe’s particular interests were in the fields of education and the general Phoebe Hearst (1842-1919), George Hearst’s widow. Photo courtesy of health of the workers. In Homestake Mining Company.

economic geology

1894, she established a free library that subscribed to over 80 magazines and newspapers, many in foreign languages to serve the many nationalities represented in the workforce. In 1900, she established a free kindergarten, and provided generous support for churches and schools. She also believed in the ‘Americanization’ of the workers and their families by assisting them in learning English and qualifying for citizenship. To that end, night schools were introVertical cross-section of the South Foley Zone showing mineralization in the dolomite member of the Deadwood Formation and in duced in 1906. vertical feeder structures, courtesy of Wharf Resources. A free community centre in vertical fractures, and commonly have a close spatial was built in 1914 that included a pool hall, card room, association with Tertiary intrusions. In addition to size, gymnasium, bowling alley, theatre and swimming pool, the Tertiary ore bodies differ from the Homestake while a recreation commission operated by the workers deposit in their lower average grades; lower gold to silsupported baseball, basketball, skating, rifle and pistol ver ratios (generally below 1:1); their sulphide comporanges, skiing and golf. Disability and sickness insurance sition, with pyrite as the dominant mineral; and their were introduced in 1910 and retirement pensions in 1917, significant lead-zinc concentrations with traces of tungand after 1920, medical care was free. The Hearst family sten and telluride minerals. involvement in the company ended when Phoebe’s son, In 1983, Wharf Resources introduced open pit mining William Randolph, sold the Homestake interest after her and heap leaching with cyanide into the Black Hills at a death from influenza in 1919. However, it continued its mine in the Bald Mountain district, five kilometres southprogressive and pioneering labour relations policies. west of Lead. Mineralization was discovered there in 1877 According to a report by John R. Commons, Chairman and about five million tonnes, with an average recovered of the U.S. Commission on Industrial Relations, grade of 6.5 g/t (0.19 oz/ton) gold and 17.5 g/t (0.51 Homestake’s welfare measures were far ahead of anything oz/ton) silver, was mined intermittently between 1901 available in any similar industrial centres (Engineering & and 1959, some of which was treated in a small cyanide Mining Journal, August 8, 1914, p. 324 and October 2, mill prior to 1915. Exploration was resumed around the 1914, p. 616). These working conditions at Lead, which former mines by a joint venture between Homestake and were incomparably superior to those at Butte, have been a Wharf predecessor in 1974 and continued after Wharf described as “benevolent despotism.” They had only one purchased the Homestake interest in 1979. To the end of negative condition — “that the miner shall have nothing to 2007, Wharf had mined about 69 million tonnes, with an say about it himself.” The Homestake system of labour relaaverage grade of 1.1 g/t (0.032 oz/ton) from six separate tions was, in effect, a welfare state that paid great dividends zones with an average strip ratio of 1.85 to 1. It was in workforce stability and productivity but avoided exploitprocessed on leach pads to recover approximately 1.81 ing the workers. It also showed that treating workers million ounces of gold. Between 1983 and 1996, the decently was not terribly expensive. recovery rate was about 76 per cent. A Canadian company, Other gold mineralization in the Black Hills Goldcorp Inc. (formerly Dickenson Mines) has controlled In addition to the Homestake mine, the northern part Wharf since 1988. It has reported that sufficient reserves of the Black Hills contains significant gold deposits of exist to operate until the end of 2010, at which time gold Tertiary age, although their production has been relaproduction may cease in the Black Hills for the first time tively small. These are generally oxidized replacements in over 135 years. with manto-like shapes hosted by dolomite and limeBetween 1989 and 1996, Wharf also operated a nearby stone horizons of the Cambrian Deadwood Formation. mine, the Golden Reward, situated about one kilometre The deposits display both structural and stratigraphic east of the mine discussed above, on the opposite side of controls, are transected by higher grade mineralization a ski development. It recovered 276,000 ounces of gold February 2009 | 117

economic geology and 361,000 ounces of silver from similar mineralization. Another noteworthy gold producer in the Black Hills was the Deadwood camp, which produced about 285,000 ounces, starting in 1875. Most of this was placer gold from Deadwood Gulch, although a small amount came from three neighbouring creeks and tributaries. The first lode gold came from the Hidden Treasure mine, a socalled placer deposit at the base of the Deadwood Formation that was actually a gold-bearing conglomerate horizon of detrital origin that overlies and was probably derived from erosion of the Homestake Formation. It was treated in the first stamp mill to reach the Black Hills in September 1876 and produced about 1,000 ounces within a The original Homestake stamp mill, courtesy of Homestake Mining Company. year. By 1878, 20 mills with 500 stamps were in operation, but lode mining ceased by 1881 tres closer to Lead, which produced about 35,000 when the ore was exhausted. The total amount of gold ounces. Both are hosted by Proterozoic schist. recovered is unknown. The equipment was presumably Impact of the Homestake camp on economic geology moved to the Homestake camp. The complex structural deformation and higher grade The Mascot mine, situated four kilometres southeast of metamorphism at the Homestake mine had seldom been Deadwood, was discovered in 1892, and the nearby Oro encountered before within major European or U.S. mining Fino deposit of Gilt Edge Mines Inc. was located the next districts, except perhaps in the Alps. It presented a new and year. The Tertiary Mascot ore is hosted by carbonate rocks difficult challenge to prospectors, miners and geologists of the Deadwood Formation, similar to the ore at the searching for extensions of surface mineralization and deterWharf mine, whereas the adjacent Gilt Edge ore occurs in mining its origin. Solving those problems represented an Tertiary intrusive rocks. Modern exploration of the Gilt important advance in the field of economic geology. Study of Edge mine by Brohm Mining Corp. and Minven Gold the Homestake mine was a precursor, in a way, of the geologCorp. in the 1980s outlined an oxide reserve of 6.2 milical tools that would be required to explore mineral deposits lion tonnes, with an average grade of 1.6 g/t (0.046 oz/ in the prolific Proterozoic and Achaean gold and base metal ton) gold. An open pit mine with a cyanide heap leach camps of the Canadian Shield, and in other strongly that opened in October 1988 was terminated almost deformed rocks worldwide. By lowering the economic cut-off immediately because of an acid rock drainage problem. grade for gold mining through improved mining and recovFour other camps in the district produced minor ery methods, the Homestake mine expanded the scope of amounts of gold. The Cloverleaf mine on Elk Creek, future mining ventures. As a result, many more opportunities about 13 kilometres southeast of Deadwood, produced were created in the field of economic geology through the about 44,000 ounces between 1878 and 1937, mostly study of new deposits. CIM before 1890, from a saddle-shaped mass of quartz containing native gold with galena, sphalerite and pyrite in References the Proterozoic rocks. Another is the Ragged Top camp, Cash, J.H. (1973). Working the Homestake. Ames: The Iowa State University Press. about 11 kilometres northwest of Lead, which produced Fielder, M. (1970). The treasure of Homestake gold. Aberdeen, SD: North Plains Press. about 75,000 ounces between 1885 and 1906 from siliciKoschmann, A.H. and Bergendahl, M.H., (1968). Principal gold-producing districts of the fied breccias hosted in karst-like zones with narrow verUnited States, U.S. Geological Survey Professional Paper 610. Washington: United States tical feeder veins. The occurrences are hosted by siliciGovernment Printing Office, pp. 232-239. fied Mississippian limestone, contain traces of telluride Malone, M. (1986). The collapse of western metal mining: an historical epitaph. Pacific minerals, and are associated with Tertiary porphyry bodHistorical Review, No. 55, p. 455-484 (quoted by Robbins, 1994). ies and a phonolite laccolith. The others are the Keystone Robbins, W.G., (1994). Colony and empire: the capitalist transformation of the American west. Lawrence: University Press of Kansas. camp, situated about 55 kilometres southeast of Lead, Smith, D.A., (2001). Staking a claim in history: the evolution of Homestake Mining which produced about 130,000 ounces, mainly between Company. Walnut Creek, CA: Homestake Mining Company. 1892 and 1903, and the Hill City camp, about 15 kilome118 | CIM Magazine | Vol. 4, No. 1

metallurgy The strategic mineral that became an industrial nuisance A history of the changing fortunes of pyrite: Part 1 by Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Introduction Pyrite has been known since antiquity. Mentioned by the Greek writer Theophrastus (ca. 372-287 BC), it was named for the Greek word for fire "pyr," as it produces sparks when struck with another stone. Gold and pyrite, very similar in appearance, are often hard to distinguish visually. Pyrite was used for ornaments and jewelry in ancient Greek and Roman civilizations. The Incas even used polished pyrite slabs as mirrors. Being cubic in atomic structure pyrite usually forms attractive cubic crystals. It also exists in a rhombic phase called marcasite. Pyrite is the most common sulphide mineral and is widely associated with other metal sulphide deposits. Containing about 53 per cent sulphur, pyrite was once of great strategic importance as a source of elemental sulphur for gunpowder manufacturing and of sulphur dioxide for sulphuric acid production. In the 16th century, heap leaching of copper-containing pyrite was practiced in the Harz Mountains area in Germany and the Río Tinto mines in Spain. Here, pyrite was piled and left for months in the open air, where the action of rain and air brought about oxidation and the dissolution of copper. A solution containing copper sulphate was drained from the heap and collected in a basin. Metallic copper was precipitated from this solution by scrap iron — a process that became known as “cementation,” ostensible from the Spanish word for precipitation, “cementación.” The importance of pyrite can be judged from Johann Friedrich Henckel’s (1679-1744) book on the mineralogy of sulphide minerals, Pyritologia, oder Kiess-Historie. Published in Leipzig in 1725, the book was translated into English in 1757 and French in 1760. In 1907, the French chemist P. Turchot published a comprehensive book on pyrite.

However, when other sources of cheap elemental sulphur became available, pyrite not only lost its importance but also became a nuisance to the metallurgical industry.

Pyrite for gun powder manufacture Gunpowder, also called black powder, was the only explosive available for centuries before the invention of dynamite. It consisted of, approximately, 75% saltpetre (potassium nitrate), 15% charcoal, and 10% sulphur. The sulphur used in gunpowder had to be of high quality. Limited amounts of sulphur were mined from a deposit in Sicily that comprised a mixture of sulphur, gypsum, limestone and clay that typically contained about 25% sulphur. Sulphur melted from the excavated material was purified by sublimation. Major quantities of sulphur were, however, obtained by heating pyrite in absence of air. Agricola (1494-1555), in his De Re Metallica, described the recovery of sulphur from brimstone and pyrite. The process was also described by Diderot in his Encyclopaedia (1751-1772). Pyrite lumps were stacked on logs that were ignited. The resultant sulphur vapours were condensed on the roof of the chamber and collected in pots below. Sulphur in the pots was then refined by heating and the sublimed crystals are collected in a cone constructed in the roof of the furnace. So important was this operation that the distinguished French chemist Antoine Lavoisier (17431794) was in charge of the black powder factory in Paris. After Lavoisier was executed during the French Revolution, his student, Eleuthére Irénée du Pont de Nemours, migrated to America and, in 1802, established a plant near Wilmington, Delaware, to produce black powder based on the French technology.

Production of sulphur from pyrite as described by Diderot in his Encyclopaedia February 2009 | 119

metallurgy Pyrite for sulphuric acid manufacture The second important role of pyrite was in the manufacture of sulphuric acid, the backbone of the chemical industry. The major industrial demand for sulphuric acid was for the Leblanc process of making sodium carbonate (developed c.1790)1, for treating phosphate rock to manufacture superphosphate and for the pickling of steel. Sulphuric acid was usually produced from brimstone found in Sicily. When the Neapolitan Government granted a French firm the monopoly over brimstone trade in 1838, the firm raised its price from £5 to £14 per tonne. Sulphuric acid manufacturers, therefore, turned to pyrite as a source of sulphur dioxide, obtained by the following reaction: 2 FeS2 + 11/2 O2 → 4 SO2 + Fe2O3 In 1817, the Swedish chemist Jöns Jacob Berzelius (17791848), observing the formation of a red deposit in a lead chamber acid plant using pyrite from the Falun mine, discovered selenium. Lead chambers were also deteriorated when pryrite containing traces of mercury was roasted because volatilized mercury attacked the chambers’ lead lining. Mercury and selenium are also harmful because they poison the catalyst used in the contact process, which had replaced the chamber process. The manufacture of phosphatic fertilizers, organic dyestuffs, nitro compounds for explosives; the pickling of steel; the refining petroleum products; and many other applications led to increased demand for sulphuric acid. Sulphur dioxide was also in demand in the pulp and paper industry.

Roasters A variety of roasters were specially developed for roasting pyrite for acid manufacture. The first multiple hearth roaster was designed by the British inventor Alexander Parkes (1813-1890), which was later bettered by the American engineer, John Brown Francis Herreshoff (1851-1932). Multi-stage roasters was later replaced by the more efficient fluidized bed reactors invented in Germany in 1922 by Fritz Winkler (1888-1950). Pyrite cinder While sulphur dioxide can be readily converted to sulphur trioxide and then to sulphuric acid (H2SO4), iron oxide (called cinder) cannot be used directly for manufacturing iron because of the presence of impurities. Also, some pyrite contained appreciable amounts of copper and zinc and it was desirable to recover these values. In 1844 in England, W. Longmaid patented a method of purifying cinder and simultaneously recovering the nonferrous metals 1

Sodium chloride was treated with concentrated sulphuric acid to form sodium sulphate, which was then reduced with carbon to form sodium sulphide, which, in turn was reacted with limestone to form sodium carbonate and calcium sulphide. The Leblanc process was supplanted by the Solvay process in 1863. 120 | CIM Magazine | Vol. 4, No. 1

present in it. The method was first applied by William Henderson of Scotland in 1859. Lower copper content in pyrite, especially since World War I, compelled the extraction of further products from pyrite. In the LongmaidHenderson process, pyrite cinder was roasted with sodium chloride and then leached with water to recover nonferrous metal chlorides. The technology was adapted in Germany for over a century at the Duisburger Kupferhütte plant in Duisburg from 1876 to 1982.

Typical analysis of pyrite cinder ppm

% Iron Gangue Sulphur Copper Zinc Lead

54-58 6-10 2.5-4 0.8-1.5 2.0-3.2 0.3-0.5

Cobalt Nickel Manganese Silver Gold Cadmium Thallium Indium

300-1500 10-1500 300-3000 25-50 0.5-1.5 40-100 15-45 1-50

In this plant, pyrite was imported from all over the world and sold to acid manufacturers in Germany on the agreement that the iron oxide (cinder) resulting from roasting would be shipped back to Duisburg for further treatment to recover nonferrous metals, precious metals and metallic iron. The pyrite cinder is mixed with common salt (NaCl) and heated continuously in a multiple hearth furnace at 800 degrees Celsius to transform nonferrous metals into water-soluble chlorides. Each batch requires about two days for leaching in vats. Copper is precipitated from the solution in two steps: Cu + CuCl2 → Cu2Cl2(ppt) Cu2+ + Fe → Cu + Fe2+ Copper for the first step is obtained from the second step. Interestingly, the blue copper chloride solution turns pink after reduction and precipitation of cuprous chloride due to the presence of cobalt ions in the remaining solution. The residual copper is colourless. The recovered cuprous chloride is treated with calcium hydroxide to precipitate copper (I) oxide, which is reduced with coal in a furnace to black copper: Cu2Cl2 + Ca(OH)2 → Cu2O + CaCl2 + H2O 2Cu2O + C → 4Cu + CO2 The black copper was cast into anodes and refined electrolytically, with precious metals being collected in the anodic slimes. The solution obtained after cementation is evaporated under vacuum to recover Na2SO4.10H2O. In 1975, the production of black copper was abandoned in favour of a hydro-electrowinning process in which cuprous oxide was leached in recycle acid and the copper

metallurgy sulphate solution obtained was electrolyzed to produce copper cathodes. The residue, called “purple ore,” a high-grade iron ore (61 to 63% Fe), is sintered and delivered to the blast furnace. Because lead and silver form chlorides during roasting that are insoluble in the leaching step, they remained in the purple ore. When the sintered purple ore was charged in the blast furnace, lead-silver alloy was formed. Being insoluble in iron and having a higher density, it settled to the bottom of the hearth. An opening was let into the furnace below the iron notch to tap the lead-silver alloy once a week. Duisburger had an excellent research laboratory staffed by highly skilled chemists and engineers who devised a complex and ingenious process. Chemical Research Laboratory at Duisburger Kupferhütte

Data on Duisburger Kupferhütte plant

reduction zone, sulphur dioxide is reduced by coke to elemental sulphur, which is volatilized as vapour. The reactions are as follows: Upper zone: FeS2 → FeS + 1/2 S2

• Imported 3,000,000 tonnes of pyrite annually • Processed 2,000,000 tonnes of cinder • Employed 4,100 people • Produced annually: ❍ 1.2 million tonnes pig iron ❍ 6,000 tonnes Pb ❍ 24,000 tonnes Cu ❍ 60,000 tonnes Zn ❍ 50 tonnes Ag ❍ 70 tonnes Cd ❍ 10 tonnes Tl ❍ Minor amounts of Co, Au, In, Pt ❍ 170,000 tonnes sodium sulfate • Consumed 200,000 tonnes NaCl

Oxidation zone: FeS + 3⁄2 O2 → FeO + SO2 Middle zone: SO2 + C → CO2 + 1⁄2 S2

Smelting of pyrite concentrates Pyrite smelting was developed to melt massive sulphide ore to form matte and to recover the excess sulphur in the elemental form. Pyrite smelting was first successfully operated in 1928 by Orkla Grube in Norway. Similar operations existed in Sweden, Portugal, Spain and Russia. Pyrite containing about two per cent copper is mixed with coke, quartz, and limestone and heated in a blast furnace. In the upper part of the furnace, one atom of sulphur in pyrite is distilled as elemental sulphur. In the oxidizing zone, iron sulphide formed is oxidized to ferrous oxide and sulphur dioxide. In the middle part of the furnace, the

Carbon disulphide and carbon oxysulphide are formed in the furnace. They are converted to elemental sulphur on catalytic beds. The matte produced contains six to eight per cent copper and is usually re-smelted with coke, silica, and limestone to 40% Cu. The average analysis of the ore treated at Orkla Grube, and the composition of slag, matte and the exit gases from the furnace are given in the table. Ores containing arsenic are difficult to treat by this method because sulphur vapour containing a large percentage of arsenic starts to condense at 350 degrees Celsius, but arsenic-free vapour condenses at a much lower temperature. Further, liquid sulphur containing arsenic is viscous and difficult to handle. Passing the gases over catalyst beds for converting carbon disulphide and carbon oxysulphide to sulphur is therefore not successful. CIM

Data for the Orkla process Analysis of Ore

Analysis of Slag %

S Cu Fe Zn Co SiO2 Al2O3 CaO MgO As Se Ag Au

41.0 1.8–2.5 38.0 1.9 0.1 12–16 0.3 0.8 0.3 0.05 0.005 20 g/ton 0.2 g/ton

Analysis of Matte

% Cu Fe S SiO2 Zn CaO Al2O3 MgO Co

0.3 42.0 2.3 33.5 1.6 4.5 1.4 0.13 —

Analysis of Furnace Exit Gases

% Cu Fe S SiO2 Zn CaO Al2O3 MgO Co

38.50 32.46 25.55 0.14 — — — — 0.11

S CO CO2 O2 SO2 H2S CS2 COS

% Vol.

g/m3

— 13.2 0.2 0.5

300

75.0 12.3 28.8 22.3

February 2009 | 121

executive summaries

YOUR

GUIDE

TO INDUSTRY KNOWLEDGE Peer reviewed by leaders in their fields CIM Bulletin abstracts 123

Underground milling of uranium ores C. Edwards

124

Development of a computer simulation method for assessing line-of-sight for load-haul-dump vehicle operators J. West, T. Eger, P. Dunn and S. Grenier

125

Exploration and Mining Geology Journal Volume 17, Numbers 3 and 4

126

Canadian Metallurgy Quarterly Volume 47, Number 3

Complete CIM Bulletin papers are posted in the online Technical Paper Library

www.cim.org 122 | CIM Magazine | Vol. 4, No. 1

executive summaries Underground milling of uranium ores

The flowsheet shows the basics of the proposed underground milling scheme, which assumes the existence of a high-grade underground uranium mine producing 20 million pounds U3O8 per year, similar to Cameco’s McArthur River operation. Grinding, leaching, solid/liquid separation and tailings deposition are all carried out underground. Leach liquor is pumped to the surface for impurity removal, precip-

Several environmental benefits are expected. First, the visual impact of the operation is reduced by keeping grinding, leaching, solid/liquid separation and tailings disposal underground. Second, the leach residue tailings, which retain most of the radioactivity from the mined ore, stay underground; there is no tailings management facility on surface. Stored deep underground as filter cake in stopes developed in competent basement rock, the residue is arguably more isolated from the environment (for example, ground water) than the ore was before mining. Third, preliminary hydrogeological modelling of this tailings disposal scheme shows that contaminant transport from the tailings to surface waters (for example, a nearby lake) would be extremely slow; i.e. there would be zero impact on groundwater entering the lake after the usually required modelling period of 10,000 years. Relatively high radium concentrations in McArthur River-type ore/tailings would have a negligible impact on adjacent surface and groundwater due to extremely long travel times in combination with radioactive decay. Modelling results show radium remaining below Saskatchewan Surface Water Quality Objectives (SSWQO) at all times through to the limit of the model time, which is 300,000 years. Fourth, application of membrane technology to water treatment for the underground milling scheme, combined with the relatively short and innocuous suite of reagents used (i.e. oxygen, sulphuric acid, lime, magnesia and hydrogen peroxide), is expected to provide an aqueous effluent with minimal loading to the environment. Re-using the membrane treatment plant permeate as process water and injecting any surplus permeate back underground could reduce this already minimal loading even further.

P R O C E S S I N G

In response to the current uranium supply/demand situation, there has been a “uranium rush” in many parts of the world, including the resource-rich Athabasca Basin in northern Saskatchewan. A recent count found over 40 junior uranium companies looking for uranium in this region, in addition to Cameco’s own exploration efforts. Positive results from any of these explorations could, depending on their location, potentially provide a source of additional feedstock for existing milling centres in northern Saskatchewan and/or result in the establishment of additional new milling capacity. Underground milling would be considered in the latter instance.

itation and drying. The impurities, removed as chemical precipitates, are moved back underground for disposal.

M I N E R A L

Cameco operates the high-grade McArthur River uranium mine in northern Saskatchewan and is constructing the high-grade Cigar Lake uranium mine. Cameco has studied the concept of underground milling of high-grade uranium ore and, compared to conventional milling on surface, the underground milling scheme appears to offer significant cost savings and a lower environmental impact. This paper describes the underground milling scheme, presents process flowsheets and plant layouts, and assesses potential benefits from underground milling.

In addition to these substantial environmental benefits, the results of a conceptual study indicate that, relative to conventional mining and milling, underground milling gives a capital cost saving in the order of 35 per cent and an operating cost saving in the order of 30 per cent.

C. Edwards, AMEC Americas Limited, Saskatoon, Saskatchewan February 2009 | 123

executive summaries

M A I N T E N A N C E

A N D

E N G I N E E R I N G

Development of a computer simulation method for assessing line-of-sight for load-haul-dump vehicle operators INTRODUCTION

RESULTS

Heavy-duty equipment operation is a major contributor to accidents in the underground mining environment and poor line-of-sight (LOS) has been identified as a causal factor in many of the accidents. Several methods have been developed to assess LOS for various heavy equipment vehicles. Methods such as the point light standard (ISO 5006-1) used by the International Organization for Standardization (ISO) have been employed previously with great success on mobile earth-moving equipment. However, they are not ideal for the evaluation of operator LOS for LHD vehicles operating in an underground mine environment. Both the modified laser scanning method and the computer simulation methods were successful for evaluating LOS for an LHD vehicle. However, these methods were not sensitive to machine placement within an underground mine drift. The purpose of this paper is to establish a standard approach for measuring and reporting LOS for underground LHD vehicles.

A comparison of Model Bo (original) and Model Br (redesign) was performed to illustrate how sensitive the CLOSE method would be in assessing virtual design modifications for improvements to operator LOS. Typical results demonstrate the percent difference between the original and redesigned versions of Model B during forward and backward travel. If the table reports a positive value (+), then there is increase in LOS; a negative value (-) represents a decrease in LOS; if nothing is reported then there is no detectable change to LOS.

METHODS

The CLOSE method separates the LHD vehicle into a forward and rear portion at the articulation joint in order to assess LOS from the LHD vehicle while travelling in either a forward or backward direction. A computer-aided drawing (CAD) LHD model was imported into the virtual environment of the digital human modelling computer software program Classic Jack™ (version 4.1), developed by UGS. A 50th percentile male virtual human was positioned in the operator’s cab with the between-eye position orientated at 650 millimetres, directly over the seat index point of the CAD model seat. LOS was assessed by creating a cube-like 3D boxed surface surrounding the LHD. The percentage score of the obstructed and visible areas was recorded for each visibility square.

J. West, T. Eger, School of Human Kinetics, Laurentian University, Sudbury, Ontario, P. Dunn, MIRARCO — Laurentian University, Sudbury, Ontario, S. Grenier, School of Human Kinetics, Laurentian University, Sudbury, Ontario 124 | CIM Magazine | Vol. 4, No. 1

CONCLUSION

The availability of a standardized assessment tool, such as the CLOSE method, for evaluating LOS from LHD vehicles could be a valuable resource for the mining community. The standard reporting method would allow manufacturers to evaluate potential design iterations prior to the physical prototype phase and would also allow vehicle selection teams within the mining industry to choose a vehicle that is appropriate for their mine layout and infrastructure. With increased awareness of LOS impairments and a tool to evaluate LOS associated with the operation of LHD vehicles, the implementation of this method could ultimately reduce injuries and fatalities within the mining industry.

emg abstracts

Exploration and Mining Geology Journal Volume 17—Numbers 3 and 4 The Schaft Creek Porphyry Cu-Mo-(Au) Deposit, Northwestern British Columbia J.E. Scott, J.P. Richards, L.M. Heaman, Department of Earth and Atmospheric Sciences, University of Alberta, Edmonton, Alberta; and G.S. Salazar, CopperFox Metals Inc., Calgary, Alberta Schaft Creek is a calc-alkaline porphyry Cu-Mo-(Au) deposit located in northwestern British Columbia. The deposit formed in a volcanic arc setting, likely on a back-arc rifted continental fragment. It is hosted by Late Triassic basaltic to andesitic volcanic rocks of the Stuhini Group (Stikine Terrane), and is associated with porphyritic granodiorite dikes emanating from the nearby Hickman batholith. The age of the Hickman batholith is approximately constrained here by a composite U-Pb zircon date of 222.1 ± 9.6 Ma, which is in broad agreement with a wellconstrained age for mineralization at Schaft Creek of 222.0 ± 0.8 Ma (Re-Os molybdenite). The deposit is in most respects typical of calc-alkaline porphyry systems, but displays silica-poor sericite-chlorite alteration in mafic country rocks in place of classic phyllic alteration. The deposit is comprised of three distinct, but related, zones: the northern Paramount zone, the Main zone, and the West Breccia zone. Two phases of mineralization are observed. The first phase occurs as hydrothermal veins and breccias, and minor disseminations, and consists of bornite, chalcopyrite, molybdenite, and pyrite with potassic and sericite-chlorite alteration. The second phase is minor and consists of veins of molybdenite ± specularite as well as Cu-Pb-Zn sulfide veins without any significant corresponding alteration. Extensive structural modification has affected the deposit both during and after its formation. Two Contrasting Iron Deposits in the Precambrian Mineral Belt of Cameroon, West Africa C.E. Suh, Economic Geology Unit, Department of Geology and Environmental Science, University of Buea, Buea, South West Province, Cameroon; A.R. Cabral, Department of Geology, Rhodes University, Grahamstown, South Africa; E.M. Shemang, Department of Geology, University of Botswana, Gaborone, Botswana; L. Mbinkar, Department of Earth Sciences, Faculty of Science, University of Yaoundé, Yaoundé, Cameroon; and G.G.M. Mboudou, Geology Unit, Department of Geology and Environmental Science, University of Buea, Buea, South West Province, Cameroon Two iron deposits within the Precambrian mineral belt of Cameroon are described in detail for the first time: the Archean Metzimevin replacement iron deposit enclosed in Fe-enriched itabirite, and the Proterozoic granitehosted, shear zone-related Mayo Binka magnetite deposit. In the Metzimevin deposit, quartz is corroded and microplaty hematite overprints martite-textured hematite. The Mayo Binka massive magnetite veins show evidence of deformation in magnetite (fracturing and microbrecciation) and in overgrowths of specular hematite (mechanical twinning and undulating extinction). The magnetite is partially replaced by hematite (martitization) and goethite. Ores from both deposits have >88% total Fe2O3 and low contents of contaminants such as SiO2, Al2O3, MgO, CaO, P2O5, and TiO2. They are also poor in Cu, Pb, Zn, V, Cr, and Ni. The Metzimevin massive hematite is characterized by an accentuated light rare earth element depletion relative to the Fe-enriched itabirite. It is suggested that the Metzimevin iron deposit is the result of hypogene leaching of gangue minerals from, and further hematitization of, an itabirite protore. Although the genesis of the Mayo Binka massive magnetite is unclear, it is spatially related to Neoproterozoic granitic rocks. The data allow some comparison of these little known, but potentially economic iron deposits, with some of the world’s better investigated deposits, and are useful to the exploration efforts for iron ore currently underway in Cameroon and the Central African subregion.

Excerpts taken from abstracts in EMG, Vol. 17, Numbers 3 and 4. Subscribe—www.cim.org/geosoc/indexEMG.cfm

February 2009 | 125

cmq abstracts

Canadian Metallurgical Quarterly Volume 47—Number 3

The Leaching of Tennantite, Tetrahedrite and Enargite in Acidic Sulphate and Chloride Media P.A. Riveros and J.E. Dutrizac, CANMET-MMSL, Ottawa, Ontario This paper describes the leaching of the common copper minerals tennantite (Cu12As4S13), tetrahedrite (Cu12Sb4S13) and enargite (Cu3AsS4) in acidic media using Fe(SO4)1.5, FeCl3 or O2 as oxidizing agents. At temperatures <100 °C, tennantite dissolves slowly in Fe(SO4)1.5-H2SO4 media and the rate is directly proportional to the area of the sized tennantite. The rate increases sharply with increasing temperature and the apparent activation energy is 69 kJ mol-1. Increasing Fe(SO4)1.5 concentrations slightly increase the tennantite leaching rate. The dissolution kinetics of disks of synthetic iron-bearing tetrahedrite in Fe(SO4)1.5-H2SO4 media are linear; the leaching rates are slow but increase significantly with increasing temperature with an apparent activation energy of 120 kJ mol-1. The dissolution of sized particles of naturalAg-bearing tetrahedrite in FeCl3- HCl solutions proceeds according to the shrinking core model and both Cu andAg dissolve at about the same rate provided that the total chloride concentration of the solution is sufficiently high to solubilize the AgCl reaction product. The leaching rates are slow and the apparent activation energy is 116 kJ mol-1. The addition of sulphate ions to the FeCl3-HCl systemreduces the tetrahedrite leaching rate to values similar to those realized in the Fe(SO4)1.5-H2SO4 system. At <100 °C, enargite dissolves slowly in either Fe(SO4)1.5 or FeCl3 media and the dissolution rate obeys the shrinking core model. The rate increases with increasing temperature and the apparent activation energies are 50–64 kJmol-1. The rate increases slightlywith increasing FeCl3 concentrations in 0.3 M HCl media. The leaching of enargite at elevated temperatures and pressures was also investigated. Potentially useful leaching rates are achieved above 170 °C, at which temperature sulphate, rather than sulphur, is produced. Lower temperatures (130-160 °C) lead to fast initial leaching rates, but the dissolution of the enargite is incomplete because of the coating of the enargite particles by elemental sulphur. Reaction Product Layer on Chalcopyrite in Cupric Chloride Leaching M. Lundström, J. Aromaa, O. Forsén, Helsinki University of Technology, Helsinki, Finland; and and M.H. Barker, Outotec Research Oy, Pori, Finland During the leaching of chalcopyrite in cupric chloride solutions, a reaction product layer forms on the mineral surface. In the present work, the formation and the composition of the reaction product layer on solid stationary chalcopyrite was studied in a chemical environment similar to that of the HydroCopper® process. The effect of the process parameters on the reaction product layer was investigated. Electrochemical measurements, including A.C. impedance spectroscopy, were carried out and an equivalent circuit was used to estimate the surface parameters of the reaction product layer, such as resistance, capacitance and porosity. Scanning electron microscopy was used to complement the electrochemical measurements. The results suggest that at pH = 1, a fragile more resistive elemental sulphur layer forms, whereas at pH = 3, a porous less resistive FeOOH layer is formed.

Excerpts taken from abstracts in CMQ, Vol. 47, No. 3. Subscribe—www.cmq-online.ca

126 | CIM Magazine | Vol. 4, No. 1

cmq abstracts Improved Chalcopyrite Leaching Through Optimization of Redox Potential N. Hiroyoshi, M. Tsunekawa, Hokkaido University, Sapporo, Hokkaido, Japan; H. Okamoto, R. Nakayama and S. Kuroiwa, Sumitomo Metal Mining Co. Ltd., Tokyo, Japan In the leaching of chalcopyrite with sulphuric acid solutions, the copper extraction rate reaches a maximum at a given redox potential. This article reviews our studies on the determination of the optimum redox potential for chalcopyrite leaching. Shaking flask and column leaching experiments for a chalcopyrite concentrate were performed under various conditions and the results were analyzed using a normalized redox potential defined from a reaction model assuming the formation of an intermediate Cu2S from chalcopyrite. Factors, such as metal ion concentrations, solid/liquid ratio and the presence of iron-oxidizing bacteria, caused significant variations in the copper extraction versus time plots. However the copper extraction rate versus normalized redox potential plots were independent of the above factors and the copper extraction rate reached a maximum at the normalized redox potentials around 0.43. Converting the normalized redox potential to the solution redox potential gives the optimum redox potential for chalcopyrite leaching as a function of cupric and ferrous ion concentrations. This semi-empirical equation can be used to predict the optimum redox potential during leaching operation and is useful to design the redox-controlled heap leaching for chalcopyrite. Interaction of Silver Ions with Sulphide Minerals with Special Emphasis on the Chalcopyrite/Pyrite Galvanic Couple J.A. MuĂąoz, Complutense University of Madrid, Madrid, Spain; D.B. Dreisinger, W.C. Cooper, University of British Columbia, Vancouver, British Columbia; and S.K. Young, Versitech Inc., Tuscon, Arizona Short and long term immersion tests were performed using different massive mineral sulphide specimens of museum grade and quartz of analytical grade in an acid medium containing silver ions. After attack, the sample surfaces were observed by SEM and products characterized by EDS. Parallel, massive specimens of pyrite (FeS2) and chalcopyrite (CuFeS2) were embedded in an epoxy resin, either electrically isolated or in electrical contact and treated with solution containing silver ions in the presence of bacteria. Finally, massive chalcopyrite and pyrite electrodes were subjected to electrochemical measurements in an acid medium under different experimental conditions (addition of silver ions and inoculation). Silver deposition took place preferentially on specific mineral surfaces: chalcopyrite, galena, covellite and chalcocite. Conversely, the chemical reaction of silver ions with pyrite and sphalerite was negligible. In a mixture of chalcopyrite and pyrite, silver was deposited on the former surface creating new cathodic sites which accelerated the electrochemical reactions of chalcopyrite dissolution. Online Free Acidity Measurement of Solutions Containing Base Metals M. Huang and V.G. Papangelakis, University of Toronto, Toronto, Ontario Electrodeless conductivity was employed to investigate the feasibility of continuous online monitoring of the free acidity of sulphate and/or chloride solutions of Cu and other base metals from various hydrometallurgical processes. These solutions were measured with both commercial and experimental electrodeless conductivity sensors from 15 to 250 Â°C. It was confirmed that hydrogen ion has the greatest impact on conductivity by carrying the bulk of the current because it is the most mobile ion. In combination with a solution speciation analysis the conductivity sensor can be calibrated to account for the contribution of Cu electrolytes as well as other dissolved salts allowing fast and accurate online measurement of free acid. The sensor was tested at both lab and pilot scale with very good performance. The average difference between the measured and the titrated acid concentration was less than 5%, which is excellent for industrial applications. Modelling of Heterogeneous Material Processing Performance M.L. Free, University of Utah, Salt Lake City, Utah This paper provides a model for predicting heterogeneous material processing performance. A method for quantitatively determining fractions of valuable material that are liberated, partially locked and full-locked is described as the foundation for the model. This method is based on size distribution functions for host rock and valuable mineral particles as well as associated geometric relationships. Mineral exposure measurements are used to evaluate this part of the model. The second part of the model is the derivation and use of models that describe the performance of liberated, partially locked and fully locked valuable material for hydrometallurgical extraction. The integration of the two parts forms the overall model that predicts hydrometallurgical extraction performance as a function of particle size distributions. Extraction of copper from malachite is used to evaluate the model.

February 2009 | 127

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voices from industry

What’s in it for us? The Canadian mining industry’s emerging role in space exploration by Dale Boucher, director, innovation and development, NORCAT

ater and oxygen are the basic necessities for survival on the moon for any length of time. Apollo missions were limited to 72 hours duration on the moon surface, largely because these essential life support materials were too difficult to transport there. Now, with plans to establish permanent human presence on the moon, including NASA’s proposed outpost at the lunar south pole, it has become necessary to examine ways to provide life support and fuel on a sustainable basis. The main driver is the cost of safely landing anything on the moon — about one hundred thousand dollars per kilogram. The solution is to live off the land through the mining and processing of lunar regolith (soil) — an activity the space jockeys have termed “in situ resource utilization” (ISRU), but which I still call mining. The production of oxygen from lunar regolith involves the hydrogen reduction of crushed ilmenite, a mineral that ranges from one per cent to 12 per cent by weight in select areas of the lunar surface. But ilmenite is not the only resource of interest. Orbital studies indicate that there is a very good chance that water ice may be present in some locations near the moon’s poles, just centimetres below the surface. Some power system researchers claim that the moon has the only viable source of He3, a product required for the next generation of fusion reactors. So what is really in all of this for the Canadian mining industry? There is an apparent logical disconnect between space mining and terrestrial mining — at least at first take. Where is the drill blast muck cycle? Why would the metals industry want to spend the money to get to the moon to mine an ore body only to ship it all home again? What would you do with a million ounces of He3? It really makes little sense until you take into account that the most precious resources right now are water and oxygen. The long-term requirements are real. The supply can only come from the lunar regolith. The ISRU cycle of prospecting, delineation, extraction and processing is really a mining activity. And the customers for these fuel and life support products are NASA, the European Space Agency, the Japan Aerospace

130 | CIM Magazine | Vol. 4, No. 1

Exploration Agency and the Canadian Space Agency. Mining on the moon will happen — and within the next five to ten years. NORCAT just completed a field test on Mauna Kea with NASA and CSA for mining systems intended for use on the moon. And we will be going back in the next year for more field testing on much more advanced systems as we move towards flight readiness. Companies with mining know-how and technology that are not risk averse will realize benefits in terms of cash flow, new product development, and the cross-pollination of capabilities and intellectual property back to terrestrial markets. Examples of this are not hard to come by. NORCAT has been working with Winnipeg-based Dimatec since 2001 to develop drill bits capable of operating in extreme environments (dry drilling at -185º Celsius) for the drill system we have built for NASA and the CSA. In addition to realizing their engineering and production costs, Dimatec has had direct benefits, ranging from validation of construction materials through to new marketable products. Other examples of beneficial spin-offs include: • the evolution of a hydro-geology shallow drill for use in terrestrial studies, now marketed by another partner, Electric Vehicle Controllers Ltd of Val Caron; • a credit-card-sized controller for underground mobile systems, marketed by Xiphos Technologies and EVC; • a laser imaging system for use in petrological studies, marketed by Neptec of Ottawa; • the development of a lunar regolith simulant by NORCAT/EVC in cooperation with Avalon Ventures, for application in machine design using local anorthosite rock and custom processing. The short answer as to what is in this for the Canadian mining industry is that long duration human space exploration is a new venture for all of us. There is a real role for the mining industry in this adventure. And there is a real need for innovative entrepreneurs with mining sector experience to help guide the activity and provide basic expertise to the effort. CIM

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