CIM Magazine March/April 2011

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CONTENTS CIM MAGAZINE | MARCH / APRIL 2011 | MARS / AVRIL 2011

14 NEWS 14 15

B.C. mineral exploration forecast to hit $500 million in 2011 Expectations high after provincial government announces mineral exploration figures at AME BC Roundup by P. Caulfield TMX-LSE merger met with mixed reactions Fusion of the Toronto and London Stock exchanges has been met with a guarded reaction from members of the mining industry by P. Brent

16

Feeding the global appetite In his speech at the Montreal Council on Foreign Relations, CIM president Chris Twigge-Molecey predicts challenges in meeting the world demand for metals by P. Diekmeyer

17

Eyes on new ministry New B.C. mine permitting process receives a cautious

18

Celebrating the past, planning for the future McGill mining engineering’s 140th

response from industry by P. Caulfield anniversary is cause for celebration and a catalyst for a renewed strategy for the program by H. Ednie

20 UPFRONT 20 22 24 28

An incredible journey Built on one side of the world and shipped to the other, the world’s largest autoclaves demanded the best in logistics and engineering by H. Ednie Mapping the past reaps continual rewards MineSight’s 3D modelling software has become the template for geological mapping in the North by N. Judd Inspiring confidence in CSR Terrane Metals success in engaging the community is a direct result of answering the “Seven Questions to Sustainability” by L. Whyte Iron woman’s global challenge Zoë Yujnovich has been a champion of change in her first year as president of the Iron Ore Company of Canada by R. Andrews

46

COMMODITY FOCUS 46

All-purpose treasure The foundation of the modern industrial era, iron ore is the commodity of growth by E. Moore

4 | CIM Magazine | Vol. 6, No. 2

COLUMNS 50 52 53

MAC Economic Commentary by P. Stothart Supply Side by J. Baird Eye on Business by Ministry of Natural Resource

54 55 58 60 62 64 66 68 70 72 73 74 94

Standards by C. Waldie Metals Monitor by J. Goulden HR Outlook by B. Kirby Innovation by T. Hynes Safety by H. Ednie Aboriginal Perspectives by V. Heffernan Parlons en par C. Taschereau Women in Mining by H. Ednie Canadians Abroad by H. Ednie La vie d’étudiant par A. Dorval Student Life by A. Dorval Mining Lore by C. Baldwin Voices from Industry by T. Bowles

Operations

30

CIM NEWS 76

Society of Nova Scotia holds its 123rd Annual General Meeting by F. Sigut

77

FEATURE

by M. Eisner

78

L’EXPLOITATION MINIÈRE EN MOUVEMENT Moving millions Surging demand for commodities is fueling expansion not just for Canadian producers but also for the transport network they rely on by D. Zlotnikov

36

Early exposure to mine turns into inspiring career Bradley Lecomte is the recipient of the Caterpillar and its Canadian Dealers Scholarship for 2010-2011

MINING IN MOTION 30

What mining brings to the table The Mining

80

Le déplacement de millions Une demande accrue pour les biens de consommation pousse l’expansion, non seulement des producteurs canadiens mais aussi du réseau de transport sur lequel ils se fient

81

L’implication des ingénieurs Pierre Laroche, ingénieur minier, a reçu le Prix des membres de l’ICM pour ses 38 années d’implication à Thetford Mines par M. Anelli Looking at the big picture CIM Distinguished Lecturer Michael Doggett discusses long- and short-term business cycles in mining by A. Lopez-Pacheco Winter classic This year’s Canadian Mineral Processors Operators’ Conference boasted a record attendance, a bevy of technical papers and one great hockey match-up by R. Bergen

82

FEATURED PROJECT PROJET EN VEDETTE 38

Future growth built on iron ore legacy Labrador Iron Mines’ revitalization of the Schefferville Projects is new era for a town that was built for mining by C. Baldwin

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Perspectives de croissance reposant sur l`héritage du minerai de fer La revitalisation des projets Schefferville par Labrador Iron Mines représente le début d’une nouvelle ère pour cette ville exclusivement minière

83

CIM signs MOU with Chinese association CIM enters an agreement with the China Non-Ferrous Metals Industry Association with the goal of developing projects together by H. Ednie Taking home the copper Phillip Mackey’s illustrious 40-year career in extractive metallurgy, mentoring and innovation garners him the Selwyn Blaylock Medal by C. Baldwin

HISTORY 85 88

The foundations of modern economic geology (Part 2) by R. J. Cathro Social problems in the mining industry – a historical essay (Part 2) by F. Habashi

TECHNICAL SECTION 91

CIM Journal

IN EVERY ISSUE

38

6 8 10 12 71 76 84 93

Editor’s message President’s notes / Mot du président Letters LinkedIn Comments Calendar Obituaries Welcoming new members Professional Directory

March / April 2011 | 5

editor’s letter Refining the route from mineral resource to marketplace Everywhere is walking distance … if you have enough time. ~ Steven Wright t a recent industry workshop, the president and CEO of a junior exploration company proclaimed himself and his like to be treasure hunters. Considering the mission of these modern-day swashbucklers, the logic behind his assertion makes sense: the incredible odds of finding their bounty, the remote and harsh locales they must travel to, and the cryptic maps and signs they have to decipher. Mother Nature hides her bounty well. And once the valuable cache has been discovered the hard part begins, for there are no express highways deep into the jungles of Surinam or bridges spanning the expansive ice flows north of sixty. If the junior explorers are treasure hunters, then those responsible for determining viable ways of extracting and transporting those treasures are orchestra conductors. In the March/April issue, we take a look at some of the logistical challenges facing the Canadian mining industry as it tries to satisfy the global hunger for the commodities we are so skilled at recovering and delivering. In the feature, “Moving Millions,” writer Dan Zlotnikov explores how mine operators, railway and shipping companies, and storage facilities are addressing issues of limited capacity and extreme conditions in Canada’s vast and incredibly complex transportation system. The story behind the cover photo can be found in the Upfront section’s Engineering Exchange, where you’ll read about the design and incredible journey of the world’s largest autoclaves, engineered and constructed by the Hatch Autoclave Technology Group for the Pueblo Viejo gold operation, a joint venture between Barrick Gold Corporation and Goldcorp Inc. located in the Dominican Republic. Iron ore gets a special focus in both this issue’s project profile – Labrador Iron Mine’s (LIM) Schefferville Projects – as well as in our commodity focus. Following the adage that “the best place to look for a new mine is beside an old mine,” LIM is capitalizing on the solid legacy and infrastructure created by the Iron Ore Company of Canada during its 25 years of operation, including a mine site, company town, rail line and shipping terminal. Also, be sure to read this issue’s safety column, which explores the psychology of trauma and how mining companies are addressing issues of post-traumatic stress among workers and their families in the wake of distressing incidents. You will also find a new addition that helps us share some of the feedback we’ve been getting about CIM Magazine topics on the CIM LinkedIn page. If you haven’t already joined the CIM LinkedIn group, check it out. You’ll find pertinent information as well as the provocative dialogue between a plethora of contributors from all walks of the mining industry. I’d like to sign off with an acknowledgment of CIM Magazine’s own team of desktop explorers. Although the voyage from the raw material to the polished product is not always smooth sailing, it is incredibly rewarding and I am so honoured to be part of this crew.

A

Editor-in-chief Angela Hamlyn, editor@cim.org Section Editors News, Upfront and Features:

Ryan Bergen, rbergen@cim.org Steve Stecyk, sstecyk@cim.org Columns, CIM News, Histories and Technical Section:

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Web Editor Rosy Saadeh, rsaadeh@cim.org Publisher CIM Contributors Richard Andrews, Maria Anelli, Jon Baird, Correy Baldwin, Louise Blais-Leroux, Terence Bowles, Paul Brent, R.J. Cathro, Peter Caulfield, Peter Diekmeyer, Alexandre Dorval, Heather Ednie, Marlene Eisner, Jason Goulden, Genny Griffiths, Fathi Habashi, Virginia Heffernan, Tom Hynes, Neville Judd, Barbara Kirby, Alexandra Lopez-Pacheco, Ministry of Natural Resource Operations, Eavan Moore, Florence Sigut, Paul Stothart, Charles Taschereau, Craig Waldie, Laureen Whyte, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 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 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This month’s cover A 780-tonne autoclave arrives at the Port of Samana, Dominican Republic. Credit: Hatch Layout and design by Clò Communications. Copyright©2011. 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.

Angela Hamlyn, Editor-in-chief Printed in Canada 6 | CIM Magazine | Vol. 6, No. 2

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president’s notes Logistics, a challenge on the global scale As we finally look forward to spring, one can only reflect on the weather extremes we have witnessed over the last few months, both in Canada and Australia. They have had a major impact at the mine site as well as along the links of the export chain — one of the main themes of this March/April issue. From the devastation caused by flooding of Australian coal mines to the implications of an ever-shortening season for hauling materials over ice roads in the Far North, there are a plethora of challenges testing the ingenuity of the industry. On the operation side, the challenge can often be the same, even though the unit scales are normally smaller, but it takes special skills to supply and service remote sites regularly and reliably. In Canada, we are fortunate to have many highly experienced companies to call on. Construction logistics also face an exciting range of opportunities and challenges. One such major undertaking is the transport of 17 smelter modules, equaling 36,000 tonnes, from Qingdao, China, to New Caledonia for the Xstrata Nickel Koniambo Project. Another, moving 780-tonne

autoclave vessels from Malaysia to the Dominican Republic, is featured in this issue’s Engineering Exchange. Development of the Labrador iron ore resources will critically depend on competitive logistics costs. It will be interesting to see how soon we can emulate the Rio Tinto approach in Western Australia, which features fully automated iron ore trains operating from pit to port, all controlled from Perth, over 1,000 kilometres away. It is truly an amazing accomplishment. Further, the heightened exploration of our North — whether in Ungava, Labrador, Baffin Island, Nunavut or Northwest Territories — will lead to future operations in very remote locations. The logistics companies will, I am sure, meet the demands of working in such environments and bring much needed opportunities to train and employ Northern peoples. Very remote travel to any facility always brings to mind the issue of safety, a primary objective of all responsible companies. While we cannot afford to be complacent, as illustrated by the recent spate of mine disasters overseas, we can celebrate the remarkable safety record of our sector, in both construction and operations activities. Mining and metallurgical processing continues to be one of the safest professions. We need to get this message out often. It, along with the hi-tech nature of our business, must be a key element in persuading bright students to join our sector.

Chris Twigge-Molecey CIM President

La logistique, un défi global Bien que l’on se réjouit de l’arrivée prochaine du printemps, on ne peut s’empêcher de penser aux fluctuations météorologiques exceptionnelles de ces derniers mois au Canada ainsi qu’en Australie. Elles ont eu des répercussions importantes autant sur les sites miniers que sur les différents maillons de la chaîne d’exportation – ce sera un des sujets principaux traités dans ce numéro de mars/avril. Une myriade de défis continuent de mettre à l’épreuve l’ingéniosité de l’industrie, que ce soit en raison des ravages causés par l’inondation de mines de charbon en Australie ou les conséquences des saisons de plus en plus courtes pour le transport de matériaux sur les routes de glace du Grand Nord. Au niveau des opérations, le défi reste souvent le même, quoique les unités soient souvent de plus petite taille, des compétences toutes particulières demeurent néanmoins nécessaires pour approvisionner et desservir les sites éloignés sur une base périodique et de manière fiable. Au Canada, nous avons la chance de pouvoir faire appel à de nombreuses entreprises d’une grande compétence. La logistique en matière de projets de construction présente aussi un éventail palpitant d’occasions et de défis. Parmi de telles entreprises d’envergure, nous pouvons souligner le transport de 17 modules de fonderie d’un poids total de 36 000 tonnes, de Qingdao en Chine jusqu’en Nouvelle-Calédonie pour le projet Koniambo de Xstrata Nickel. On compte aussi le déplacement d’autoclaves pesant 780 tonnes de la Malaisie jusqu’en République dominicaine, qui est décrit sous la rubrique Engineering Exchange de ce numéro.

voir le temps qu’il nous faudra pour reproduire l’approche utilisée par Rio Tinto en Australie-Occidentale, où l’entreprise a recours à des trains entièrement automatisés et contrôlés depuis Perth pour transporter le minerai de fer des mines jusqu’au port, sur une distance de plus de 1 000 kilomètres. Il s’agit vraiment d’une réalisation incroyable. Par ailleurs, l’exploration plus poussée des régions nordiques de notre pays, que ce soit dans l’Ungava, au Labrador, sur l’île de Baffin, au Nunavut ou dans les T.N.-O., nous amènera à mettre en œuvre des projets dans des endroits très isolés. Je suis persuadé que les entreprises en logistique sauront répondre aux exigences de tels lieux et qu’elles pourront aussi créer des occasions de formation et des emplois très nécessaires aux populations du Nord.

Le développement des ressources de minerai de fer au Labrador dépendra fortement de la compétitivité des coûts logistiques. Il sera intéressant de

Chris Twigge-Molecey Président de L’ICM

8 | CIM Magazine | Vol. 6, No. 2

Les déplacements vers des installations très éloignées nous mènent toujours à penser à l’importance des questions de sécurité, qui constituent un des objectifs principaux de toute entreprise responsable. Nous ne pouvons pas relâcher notre vigilance, comme l’illustre la récente série de désastres miniers à l’étranger, mais nous pouvons tout de même nous féliciter de nos résultats exceptionnels en matière de sécurité, que ce soit par rapport aux activités de construction qu’à celles des opérations. Les professions au sein de l’industrie minière et métallurgique demeurent parmi les plus surs de tous. Nous devons véhiculer ce message le plus souvent possible. Ce fait, ainsi que la nature hautement technologique de notre travail, représentent des éléments clés à utiliser pour convaincre les étudiants brillants à se joindre à notre industrie.

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letters Mt. Milligan misrepresented, MAX Mine under-represented featured project

Photo courtesy of Thompson Creek Metals Company Inc.

To the editors, I believe you are mistaken. The first new metal mine in B.C. since 1998 is not the Mt. Milligan project (“The way forward,� CIM Magazine, November 2010, p. 38), it was the MAX molybdenum mine owned by Roca Mines of Vancouver. It opened in 2008.

featured project

Engineers conducting environmental planning

The way forward by | Peter Caulfield

Despite the fact that copper is trading today at about US$3.70, the Mt. Milligan project — the first new metal mine in British Columbia in more than a decade — very nearly didn’t happen.

Marilyn Scales Field Editor, Canadian Mining Journal

T

Terrane Metals Corp. was created in 2006 when Goldcorp Inc. sold its copper and gold project, Mt. Milligan, to Rob Pease and his partners. However, Terrane could not secure the financing to begin construction. “In the end, we had to sell the company in order to build the mine,� says Pease, former president and CEO of Terrane. On October 20, 2010, Denver-based molybdenum miner Thompson Creek Metals Company acquired all of the issued and outstanding equity of Terrane. The total value of consideration paid to the shareholders of Terrane was approximately $700 million, of which approximately $420 million was paid in cash, and the remainder was from the issuance of approximately 24.3 million shares of Thompson Creek.

Industry analysts say the project, which should commence production sometime in 2013, could kick start the B.C. mining industry as a whole, as well as benefit local First Nations and job seekers in central B.C.

Shovel-ready Mt. Milligan is 155 kilometres northwest of Prince George in central British Columbia — about 150 kilometres northeast of Thompson Creek’s Endako Mine. Mt. Milligan has proven and probable reserves of about 2.1 billion pounds of copper and six million ounces of gold. Average annual production over the 22-year lifespan of the mine is forecast to be 81 million

pounds of copper and 194,000 ounces of gold. The mine could liked the management, so we agreed to be taken over. Now, create up to 400 permanent jobs. Mt. Milligan will be their number one growth asset.� Pease says Mt. Milligan is completely engineered, financed Thompson Creek chairman, CEO and director Kevin and has almost all of its permits in place. “The mine will be a Loughrey says there are a number of reasons behind his comconventional truck-and-shovel open pit operation that will pany’s decision to get into the copper business. “Until now produce copper concentrate with a high gold content,� Pease we’ve been a pure moly company, and we like the moly busisays. Mt. Milligan will be developed over the next two and a ness,� he explains. “But there are strategic advantages in half years. Commissioning of the mine and mill complex is diversifying. In addition, we had concluded the market wasn’t expected in 2013. Development is scheduled to commence late in 2010. Key components of the project include a 54,000 tonne-perday copper flotation process plant, tailings storage facility, plant ancillary facilities and a 92-kilometre power transmission line. Upgrading of a 26-kilometrelong mine access road was 90 per cent complete this fall. “At the plant site we’ve cleared the building area, and a 600-man construction camp is being assembled.� says Pease. “We expect to be finished that part of the project by the end of 2010, and then we can start pouring concrete and erecting mine buildings in spring 2011.� Pease adds that according to the mine development plan, the pit will be dug in fall 2011. “By late summer of 2012, we can start processing ore, with full com+GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW mercial production by the end of 2012 or the beginning of 2013,� he says. The con2FC +GLGLE 'LBSQRPW centrate will be transported to port facil"CK?LBQ &C?TWUCGEFRQ ities on the coast and shipped to -INING IS A HARD AND HARSH INDUSTRY %NDRESS (AUSER ARE ITS smelters in Japan and Korea. HEAVYWEIGHTS 7ITH A FULL LINE OF MEASUREMENT INSTRUMENTATION SOLUTIONS AND SERVICES DESIGNED TO MEET THE RUGGED REQUIREMENTS OF THE 0RIMARIES )NDUSTRY %NDRESS (AUSER IS YOUR IDEAL CHOICE FOR RAW MATERIAL HANDLING AND PROCESSING IN VARIED APPLICATIONS s 3LURRY FLOW MEASUREMENT s &LOTATION AND CLARIFIER OPTIMIZATION s +ILN TEMPERATURE CONTROL s -ONITORING OF ORE LEVELS IN BINS s #ONTROLLING CONCENTRATIONS IN ACID PLANTS s 3LURRY DENSITY MEASUREMENT s !IRFLOW QUALITY s !UTOMATION SOLUTIONS TO OPTIMIZE LOGISTICS PRODUCTION AND MAINTENANCE PROCESSES

A smooth transition In acquiring Terrane, Thompson Creek has diversified into copper and gold, both of which are trading at high prices now. For its part, Terrane, a Vancouver-based junior, has found a way to finance construction of the relatively large open pit project. “Terrane couldn’t finance Mt. Milligan itself,� explains Pease. “For one thing, market conditions weren’t favourable. For another, our corporate structure was such that an equity issue would have seriously diluted the stock and therefore would have been very risky for our shareholders. We liked Thompson Creek and

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38 | CIM Magazine | Vol. 5, No. 7

Dear Ms. Scales, Thank you for the note. Roca Mines Inc.’s MAX molybdenum mine did earn the distinction of the first new metal mine when it went into production in 2008 with a small mine permit. Last spring, the province approved the proposed ramp-up from 500 to 1,000 tonnes per day at the MAX mine. It is more accurate to say that the Mt. Milligan operation belonging to Thompson Creek Metals Company, permitted by both the provincial and

Assistant Professor in Mining Engineering (Tenure Stream)

federal government to process 60,000 tpd, represents the first new major greenfield project fully permitted since the Huckleberry and Kemess mines were approved in 1996. Regards, Ryan Bergen Features editor, CIM Magazine

T

he Department of Civil Engineering at the University of Toronto invites applications for a tenure stream position at the Assistant Professor level. The appointment to this position will be made 1 July 2011, or as soon as possible thereafter. Candidates are sought with a strong background in mining engineering.

dergraduate courses in the Lassonde Mineral Engineering Program. Candidates capable of contributing to the teaching of mine feasibility studies, and together with surface and underground mine planning and design, will be given particular consideration. The successful candidate will teach at the graduate level in their area of expertise.

The Department of Civil Engineering at the University of Toronto is committed to excellence in teaching and interdisciplinary research and candidates must be able to display evidence of excellence in teaching and research. The successful candidate will be associated with the Lassonde Institute and the Lassonde Mineral Engineering Program.

Candidates should hold a doctoral degree and must be eligible for registration as a Professional Engineer in Ontario. Salary will be commenVXUDWH ZLWK TXDOLĂ€FDWLRQV DQG H[SHULHQFH

The Lassonde Institute promotes and facilitates cross-disciplinary research related to challenges facing the mineral and energy sectors. Construction is currently in progress for the new home of the Lassonde Institute, a $20-million mining innovation centre to be completed by the Spring of 2011. The Lassonde Mineral Engineering Program is an interfaculty and interdepartmental undergraduate course of study offered by the Department of Civil Engineering that crosses traditional EDUULHUV LQ XQLYHUVLW\ HGXFDWLRQ *UDGXDWHV JDLQ D GLYHUVLĂ€HG HGXFDtion in the areas of mining, geology, and other relevant applied science and engineering that makes them highly sought by industry, consulting and research establishments. The successful applicant is expected to have excellent communication skills, to be able to supervise graduate students, and to teach un-

10 | CIM Magazine | Vol. 6, No. 2

November 2010 | 39

All interested parties are encouraged to apply on-line at http://www. jobs.utoronto.ca/faculty.htm. If you are unable to apply online, please send your applications to Professor Brenda McCabe, Chair, Department of Civil Engineering, University of Toronto, 35 St. George Street, Room GB107, Toronto, Ontario, M5S 1A4. Application should include a detailed curriculum vitae (including publications and evidence of capacity and impact), a description of research, teaching and professional interests, and a list of at least four professional and character referees. The closing date for receipt of applications is March 14, 2011. The University of Toronto is strongly committed to diversity within its community. The University especially welcomes applications from visible minority group members, women, Aboriginal persons, persons with disabilities, members of sexual minority groups, and others who PD\ FRQWULEXWH WR IXUWKHU GLYHUVLĂ€FDWLRQ RI LGHDV $OO TXDOLĂ€HG FDQdidates are encouraged to apply; however, Canadians and permanent residents will be given priority.

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Join the CIM LinkedIn Group CIM currently boasts over 1,600 members on LinkedIn. Join us today and get involved in the compelling dialogue. Below are a few of the myriad LinkedIn comments received daily in response to CIM Magazine’s editorial topics.

Will there be any growth for Canada’s mining industry in 2011? Outlook 2011: Global forces, local concerns: December 2010 / January 2011, p. 43 I think the future of the Canadian mining industry is bright. An important factor, however, is how management works. If you take a look at the global market, you’ll find many companies that have performed well even in the slowdown of the economy. so, in effect, how management of Canadian mining companies thinks, plans and manages is what ultimately matters the most.

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Why companies should send engineers to recruit students Sending the right person for the job: December 2010 / January 2011, p. 104 I think a knowledgeable non-technical recruiter knows the ins and outs of technical recruiting and knows the language of the technology for which she or he is trying to recruit. I have been a technical recruiter (in a prior career) and have hired individuals that the technical people passed over. After the fact, they were amazed at the performance of these individuals and admitted they had discounted them because of something specific that had no bearing on their skills. A big one was language; the recruit speaking with an accent that might have been difficult to understand in the interview—a stressful situation in itself. technical people need to be trained to be recruiters and they need coaching and checklists as to what skills or innovative thinking to look for in a prospective recruit. John Salonich, Vice-president/director, Venturi Aeration, Inc., greater Boston Area

yes, there will be growth in the mining industry in Canada, especially for oil and gas, rare metals, nickel, iron-ore, copper, gold, etc. Canada is poised to see considerable growth in this area, especially if the global economy picks up. I even see Canada becoming a bigger player in the rare metals sector. I just hope that there are more jobs to support mining, like processing, next generation of metal applications, etc. I believe this is an area of Canadian strength that is not leveraged enough.

solely using engineers as recruiters may be similar to solely using engineers as managers; you may end up losing a good engineer only to gain a bad manager. perhaps it comes down to having the right person, with the right qualities and experience, do the job, whatever the job. the disparaging tone of the article in relation to the hr function is misplaced. the expectation that recent grads would necessarily have the experience and personal attributes qualifying them to select for personality fit and be in tune with the big picture needs of the company is naive. If there is indeed a problem, the solution seems to be one where seasoned, experienced management needs to be involved in the recruitment effort, and often are, and students should be aware that internships are to observe and learn. It’s not about the specifics of the job. It’s all about fit.

Paul Young, Consultant at IBM, toronto, Canada

Gerry Stafford, sales Manager, protec sales, Vancouver, Canada

Vinay Sahay, geologist, Mining exploration pty Ltd, nagpur Area, India

What are the drawbacks of doing business in developing countries? Outlook darkens for DRC developments: November 2010, p. 14 It is true that there are risks when dealing in the developing world; however, with good, early planning and management, the risks can be mitigated. Arbitration, of course, is the last resort when all else fails (negotiation and diplomacy). some jurisdictions are probably just too difficult, sometimes obviously so, when investing shareholder funds. sometimes the attraction of prospect overrides common sense. there are many recipes for success, but what comes to mind immediately is day-to-day dealings with the host governments with a total lack of arrogance. As a veteran in the developing world, including the drC, we have achieved many successes, but not without angst. this does not, however, stop our industry from pioneering new opportunities – a quality that sets our industry apart. First Quantum (whom I know, but am not associated with) is such a pioneer with a long record of benefitting indigenous populations throughout the Copperbelt. when rule-of-law is absent or, at best, minimal, they have been wise to prepare so well. we, in the FdI [Foreign direct Investment] community, watch with interest. Eurlng Colin Roberts, resource geo-strategist, perth, Australia

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we are actively involved with the recruitment of engineers from many universities and in all instances we involve our existing engineers in any recruitment fairs that we attend. we find that students get an opportunity to talk to their peers about the type of work that they will be undertaking, which increases the attractiveness of the position. Many recruiters see the job fairs as an opportunity to simply collect the contact details of all the students at the fairs and seem to underestimate the importance of selling their organization to the students. In a very competitive environment, where we are often competing for engineers with much larger and well-known brands, it is essential that we are able to sell the benefits of choosing us over the competition. Facilitating discussions between prospective employees and those involved in their area of expertise is a great way of doing this. Peter Craven, Marketing Manager, Cde global Ltd, united kingdom

Do First Nations have more influence on mining development in Canada? Outlook 2011: First Nations exerting more influence on mining development: December 2010 / January 2011, p. 94 Queen’s university is committed to helping First nations communities develop internal capacity for working with industry in a collaborative, mutually beneficial way. Indigenous scholars use the term “de-colonization” to refer to returning respect and control over land to native peoples. Interestingly, this does not mean that mining will be rejected... just that First nations want to participate as equal partners. My doctoral research is about this. Anne Johnson, phd student, robert M. Buchan department of Mining at Queen’s university, ontario, Canada

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news B.C. mineral exploration forecast to hit $500 million in 2011 Teck president sounds cautionary note at Roundup

The optimism surrounding mining in B.C. was highly evident at this year’s Mineral Exploration Roundup, but it was tinged with some careful advice. Spending on mineral exploration in B.C. is expected to reach $500 million in 2011, spurred on by high commodities prices, said B.C. Minister of State for Mining Randy Hawes in his opening speech at the three-day event. “Perhaps the greatest indicator of mining’s excellent health is the development of new mines,” said Hawes. “The mining industry invested over $1 billion last year, expanding existing and operating new mines in B.C.” In 2010, exploration spending in B.C. hit $322 million, more than Don Lindsay speaks at AME BC Luncheon at Mineral Exploration Roundup 2011. double the $154 million recorded in 2009. Between 2009 and 2010, four key Canadian commodities in China. Group (MEG) 21st “Corporate ExploB.C. minerals experienced significant ration Strategies” study, which was But, although the long-term outlook price increases: metallurgical coal rose released at the conference. Canada has remains positive, Chinese demand by 70 per cent, copper by 45 per cent, sat in second place for nine years since might become less dependable in the silver by 37 per cent and gold jumped overtaking Australia in 2002. short term as the Chinese govern25 per cent. Recent mine expansions According to the MEG study, four ment intervenes to keep the economy provinces together accounted for more from overheating. at Endako, Gibraltar, Highland Valley than three-quarters of the $2.2 billion Lindsay counseled companies to Copper and Wolverine are a good indiof planned Canadian nonferrous develop strong exploration programs cation of the appeal the province has even as the search for mineral deposits exploration spending in 2010: to mining companies, added Hawes. Ontario, 31 per cent; Quebec, 17 per leads them to more remote and politiHe cited low corporate taxes and the cally unstable regions. cent; Saskatchewan, 15 per cent; and elimination of 152,000 government Organized by the Association for British Columbia, 14 per cent. regulations since 2001 as major factors Mineral Exploration British ColumSpeaking on the theme of “Explorfor improving the investment climate bia (AME BC), the Mineral ing Today for Tomorrow’s for mining in the province. Exploration Roundup saw record Resources,” Teck Resources president Looking at the international conattendance this year. The event drew text, Canada held the regional number and CEO Don Lindsay sounded a over 7,000 people from over 30 countwo spot for planned exploration more cautionary note on the future of tries, including 270 exhibitors. AME spending in 2010 and attracted 19 per mining and exploration in Canada. BC chair Mona Forster confirmed Lindsay said one of the reasons for cent of worldwide nonferrous explothat it was the best attended Roundup ration spending, according to higher commodities prices was a large and increasing appetite for to date. CIM Halifax-based Metals Economics 14 | CIM Magazine | Vol. 6, No. 2

Courtesy of Brian Dennehy/AME BC

By Peter Caulfield

news TMX-LSE merger met with mixed reactions Industry participants see little merit for small mining companies By Paul Brent The proposed merger of the Toronto and London stock exchanges has created a mixture of curiosity and concern within the Canadian mining industry. Billed as a merger of equals, the announcement has triggered strong reaction among those who make their living in mining. “I don’t want to be negative right off the bat but I’m not exactly jumping for joy,” said Brian Berner, chairman and CEO of Cuervo Resources Inc., a Toronto-based resource exploration company with operations in Peru. “It’s negative for all smaller corporations; you lose your local market.” Under the terms of the deal, the London exchange will control 55 per cent of the merged entity. London and Toronto will have headquarters in each city – London will become the centre of international listings, while Toronto will head the equity listings for the entire group. “I think this merger caught most people off guard,” said Ken Klassen, a partner with Bennett Jones in Toronto, who specializes in mining law. “The

mining industry in Canada is incredibly important, not just for the TSX and the people that work there, but for the thousands and thousands of people who derive very good careers off of this industry.” “The TSX is a world leader in financing exploration companies,” added Klassen, “The London stock exchange is not. To put it bluntly, I’m not sure why the TSX was interested in talking to the London Stock Exchange.” The Ontario Mining Association noted that the two TMX exchanges are “world leaders in mine financing,” accounting for 80 per cent of mine financings in the world and 36 per cent of total equity capital raised globally in the mining sector between 1999 and 2009. At the end of last year, 1,531 mining companies were listed in Toronto – more than any other stock exchange – and last year, there were 208 new mining listings for the TSX, more than any other exchange. Rickard Vernon, managing director and head of metals and mining with Toronto financial firm Stonecap Securi-

ties Inc., said the proposed merger of the exchanges might be most advantageous to the big international mining companies. “The Canadian market is pretty efficient and effective at financing resource stocks, so it may have little to no effect, particularly on the end of the market where we operate, which is the small- and mid-cap space,” said Vernon. Doug Horswill, senior vice-president of sustainability and external affairs at Teck Resources Limited and chairman of the Mining Association of Canada, is awaiting further details on the merger. "If the merger is structured to enable Canada and the Canadian mining companies access to a wider, broader and deeper capital market, this should strengthen the industry," said Horswill. The proposed merger has been met with enough initial concern and controversy in Canada that it will attract scrutiny from regulators and politicians, a development that suits Cuervo Resources’ Berner. “I want the government to have complete parliamentary hearings on this. I want these guys to walk through hoops,” he said. CIM

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news Feeding the global appetite Resource demand is forcing stakeholders to confront mining industry challenges By Peter Diekmeyer

Photo credit: lucetg.com

Global demand for mining Mining companies are also products will continue to rise in coming under increasing presthe coming years, even as those sure in the developing world products get harder to come by, to earn and keep their “licence to operate,” which means predicted CIM president Chris working very closely with Twigge-Molecey at a recent preslocal people and respecting entation to the Montreal Council their concerns about land and on Foreign Relations. “Almost mineral rights, permitting and everything we consume today is the delivery of local benefits. either grown or mined,” he said. In many regions, companies “However, resources are scarce are being forced to renegotiate and we need to make tough royalty rates due to current choices over how to develop high mineral prices. them.” “Resource nationalism will Twigge-Molecey cited modalso become a larger challenge ern mobile devices, which going forward,” noted Twiggetypically include components Molecey, pointing out that made from more than two dozen even Canada got in front of minerals, ranging from iron to the trend when it blocked BHP nickel to rare earths such as Billiton’s recent attempt to neodymium, as an example of CIM president Chris Twigge-Molecey delivers his speech at the Council on acquire PotashCorp of how complex modern societies Foreign Relations in Montreal Saskatchewan. have become. “Environmental Then there is getting the financial protesters would hate to part with process of building 53,000 kilometres backing to exploit a find in the first their cell phones,” he noted. “We have of heavy rail and 13,000 kilometres of place, he added. Mining companies got to be realistic. Even production of high-speed rail tracks, now produces face the additional complication of the food most of us eat relies on fertilhalf of the world’s steel production.” having to raise capital in an environizers requiring significant quantities of That said, many of the risks to curment in which the discoverymined products such as potash and rent raw material demand growth to-production cycle lasts, on average, phosphates.” projections are also China-related. 22 years, while a normal business Having served as engineering firm “There is massive civil unrest in Hatch's managing director in Latin China, including an official number of cycle only lasts between seven America and China, two economies 80,000 riots per year, or 200 per day, and 10. Increasing demand for mined many of which go unreported,” said driving much of the growing minerals resources is expected to continue for Twigge-Molecey. “Furthermore China demand, Twigge-Molecey understands decades as China makes the great leap the issues very well. “China, which in is aging quickly and will likely, as a forward into the 21st century. How the recent times has accounted for as country, get old before it gets rich. Like mining industry responds to the chalmuch as 40 per cent of world GDP much of the developing world, China lenges and meets the demands made growth, is now growing at a pace that is also suffering from significant inflaupon it will be watched with great civilization has not seen before,” said tion in food prices, which could crimp CIM expectation. demand for other products.” Twigge-Molecey, who currently oversees strategic development at Hatch. “They are moving rural dwellers into ACHIEVEMENT the cities at a record pace of 20 million per year. This in turn is creating Cameco has for the second year running been named by the Financial Post as one demand for infrastructure to be built of the 10 Best Companies to Work For in Canada. The company has also been at a rate equivalent to that of seven selected by the Globe and Mail as one of Canada’s Best Diversity Employers. Montreals each year. In fact China alone, which is currently in the 16 | CIM Magazine | Vol. 6, No. 2

Eyes on new ministry B.C. mining industry takes a wait-and-see approach to new permitting process By Peter Caulfield The recent creation of a new ministry in British Columbia to handle all mine permitting issues has been met with cautious optimism from the mining industry. In late October 2010, the permitting and authorization functions for natural resource projects were transferred from the Ministries of the Environment; Aboriginal Relations and Reconciliation; Energy, Mines and Petroleum Resources (now Energy); and Forests (now Forests, Mines and Lands) to the new Ministry of Natural Resource Operations (MNRO). Matt Gordon, MNRO communications director, explained that the new ministry was created to deliver integrated land management services. “With rising demands on our land base ... there is an urgent need for an integrated approach to managing our land,” he said. “Instead of going to nine different agencies to cover the approximately 40 different statutes governing over 1,200 different types of authorizations that are issued by natural resource ministries, now there is one ministry to coordinate and streamline these operations.” “It is still too early to tell the full ramifications of what these changes mean to the sector,” said Gavin Dirom, president and CEO of the Association for Mineral Exploration British Columbia, in his president’s message for the fourth quarter of 2010, “but we are optimistic that we can work with government to help make improvements.” Jason Weber, president and CEO of Kiska Metals Corporation, was guarded in his praise. “The idea is interesting, but I say that with caution,” he said. “It’s too early to tell. We’ll get a better idea when we start applying for permits for the upcoming exploration season.” Dave Copeland, director of project development at HDI, formerly Hunter Dickinson Inc., expressed misgivings about the new ministry. “I think government has made some progress in engaging First Nations, but HDI companies are still facing uncertain processes and unacceptable delays for permitting drilling programs and other earlystage exploration activities in B.C.,” he said. Byng Giraud, vice-president, corporate affairs at Imperial Metals Corporation, had a more confident outlook about the government’s decision. “Unlike many B.C. mining and exploration companies, we have few reservations,” he said. An important reason for Imperial Metals’ optimism is that the company is in the process of developing its Red Chris copper-gold property in northwest B.C., explained Giraud. “Our experience with the new way of obtaining permits and authorizations has been positive,” he said. CIM

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news Celebrating the past, planning for the future Industry and McGill mining engineering collaborate to launch $10 million revitalization strategy By Heather Ednie This year will mark the 140th anniversary of McGill University’s mining engineering department – the oldest in North America. The anniversary celebration will serve as a launching pad for a revitalization strategy for the department – one built on a $10 million fundraising campaign that aims to put McGill back at the top as the leading mining engineering department in the country. ‘’The Faculty of Engineering is proud of the contributions we’ve made to Canada’s mining industry, but we’re determined to evolve with the times to ensure that we strengthen our leadership role in mining engineering,” said Christophe Pierre, dean of the Faculty of Engineering at McGill. “The renewal underway in our mining program will build on that 140-year-old tradition of excellence to ensure that we continue to address industry needs and meet societal goals.’’ McGill mining engineering shares a strong Industry Advisory Board (IAB) with École Polytechnique’s mining department (the two schools offer a joint co-op undergraduate program in mining). The board, led by Jean Desrosiers,

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18 | CIM Magazine | Vol. 6, No. 2

vice-president of mine operations at Xstrata Zinc Canada, supports the implementation of the five-year strategic plan for the department. A steering committee has been formed to assist the McGill faculty and management to develop and implement the plan and fundraising campaign. “My goal is to build a strategic plan that will balance and align the interest of all stakeholders,” said Michael Avedesian, senior associate and advisor to the dean of engineering, who has assumed the mandate to drive McGill mining’s revitalization strategy. The plan is comprised of four main pillars: increase teaching staff and create new chairs in mining; integrate mineral processing and sustainable mine development in the teaching curriculum and research; increase engineering undergraduate student enrolment; and cultivate industry partnerships to support co-op programs. “The students we produce and the contributions they have made to industry carry our department’s reputation,” said Ferri Hassani, a professor in the Department of Mining and Materials Engineering, who has been with the department for 27 years. “Our relationship with industry is strong – it goes far beyond our collaborations on research. We listen to their needs and provide graduates with that knowledge base and experience.” McGill mining’s revitalization strategy is being formulated with industry at the table. Desrosiers said that his involvement on the IAB is intended to ensure that the resources needed to deliver on his company’s projects and operations will be there – that new graduates will come on board and learn through their jobs and eventually lead the operations in five to ten years. “We need to ensure the program is aligned with our needs,” said Desrosiers. As an industry, mining is facing major growth in the long-term, and the success of mining engineering departments is necessary to meet the human resource demands and all that they entail. “We want to ensure strong, long-term partnerships with the schools,” Desrosiers added. “We need the right tools in place and we need McGill to succeed. But the reality is that our schools today need investment from the private sector to help replace what the government is not able to fund.” As the anniversary celebrations get into full swing, Stephen Yue, chair of the mining and materials engineering department at McGill, outlined three key deliverables to be achieved by end of the year. “Hire a new faculty member, increase the number and quality of our co-op placements by 10 per cent, and, with the help and support of the IAB and steering committee, raise $10 million,” he said. “If we achieve these three goals this year, we will have succeeded.” CIM

upfront ENGINEERING EXCHANGE by Heather Ednie

An incredible journey The design, manufacture and global transportation of the world’s largest autoclaves

Courtesy of Hatch

management (EPCM) contract for the core part of the refractory process, namely, the autoclaving facility and supporting oxygen plant. “It’s a double refractory gold ore, associated with two mineralogical issues: sulphides, in the form of pyrite and minor base metals such as silver, copper and zinc, which prevent cyanidation from directly recovering the gold; and a natural carbon component to the ore, which causes issues with the recovery under a conventional system,” explains Hatch project manager Kevin S. Fraser. The incorporation of autoclaving in the processing of the ore addresses these challenges. In the autoclaves, all sulphides are oxidized, producing sulphuric acid as a byproduct. The iron, copper and zinc dissolve into the solution; then the acid is washed Each 780-tonne autoclave took 18 days to be transported just over 120 kilometres from the port at Samana, Dominican out in a counter-current Republic, to the Puerto Viejo operation. decantation (CCD) circuit leaving free microscopic gold he Pueblo Viejo gold operation in the Dominican to allow for leaching in cyanide. The underflow slurry is Republic is on track for its first gold pour in the first pushed to a carbon-in-leach circuit. Also in the autoclaves, quarter of 2012. But getting to this point has not the carbon contained in the sedimentary materials is oxiexactly been easy sailing. Because the ore is double dized with the combination of oxygen and high temperarefractory, in order to access it, the project had to commis- tures. sion the largest autoclaves ever built and transport them Within the autoclaves, oxygen is the primary reagent. halfway across the world from Malaysia to the Caribbean. During design of the autoclaves, Hatch included a heat recovery circuit that, combined with the nature of the Accessing gold exothermic reactions that produce heat within the autoPueblo Viejo, a joint venture between Barrick Gold Cor- claves, makes the heat autogenous by design. “Without the poration and Goldcorp Inc., boasts gold reserves of approx- heat recovery system, we would need some external heat imately 23.7 million ounces. Barrick owns 60 per cent and source,” Fraser adds. “This way, we keep the energy needs is the managing partner. The sulphidic refractory gold down.” deposit is being constructed to a 24,000 tonne-per-day The Pueblo Viejo autoclaves are the largest, by weight, design capacity. In the first five years, it will produce an aver- refractory-lined autoclaves built to date globally, with an onage of 1.042 to 1.125 million ounces annually (100 per cent hook weight of 780 tonnes when shipped lead lined. The basis). massive structures are each 5.6 metres by 34.8 metres, and Hatch Autoclave Technology Group has been on the project will nominally operate at 230 degrees Celsius. There are four since 2006 with the engineering, procurement, construction in total.

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upfront ENGINEERING EXCHANGE

Hatch designed the autoclaves and provided quality assurance during fabrication. They were built by KNM Process Systems Sdn Bhd in Gebeng, Malaysia. “We had two full-time quality assurance inspectors on site throughout the 33-month fabrication,” Fraser recalls. The autoclaves were then shipped approximately 10 kilometres to the Kuantan Port using a 24-line, self-propelled modular transporter (SPMT) heavy-haul unit. At the port, they were loaded on the Beluga Bremen, a P2-class ship owned by Beluga Charters out of Germany, for its maiden voyage. The autoclaves were transported in two shipments of two autoclaves each on the Bremen, which used both of its 750-tonne cranes and needed six hours to load the autoclaves from the SPMT into the cargo hold. The ocean voyage took four weeks one way, heading through the Panama Canal to reach Samana in northeastern Dominican Republic. “Samana is basically an old and unused former cruise ship pier that was refurbished for the Pueblo Viejo project, including the autoclaves,” Fraser explains. There, the autoclaves were transferred from the Bremen onto a 4.9-metre-wide 22-line Goldhofer heavy-haul trailer unit to transport the autoclaves over 120 kilometres to the Pueblo Viejo site, a trek that took about 18 days, and had to be repeated for each of the four autoclaves. “I think I’ve walked every kilometre of that route – I’ve definitely driven it many times,” says Fraser. “The Goldhofer moves at an average of two kilometres per hour and can only operate during the daytime.” Prior to the autoclaves arriving in the Dominican Republic, the project of readying the route to get them to site took about 16 months. Due to the sheer size of the autoclaves, there were a lot of interference issues to deal with: trees, power lines, communications lines, signs in villages that had been modified so they could rotate, and bridges (some had been temporarily reinforced to support the excess weight of the load; others had metal ramp structures added along each side to allow the Goldhofer to drive over them). The actual trek across the land with the autoclaves required a number of teams. Heavy lifting and transport specialist Mammoet Caribbean Inc. was responsible for driving the Goldhofer. A crane and ramp team moved the ramps – the team would go ahead, ramp up a bridge, and then once the Goldhofer crossed, dismantle the ramp, move ahead of the Goldhofer and ramp up the next bridge. A safety team acted as an escort and ensured all were well-fed and hydrated, while also providing necessary crowd control near towns. Upon reaching the massive gates at Pueblo Viejo, which is situated on a mountain, the autoclaves were transferred from the Goldhofer to an SPMT trailer unit, as it can rotate and manoeuvre tightly, using hydraulics for better accuracy. The autoclaves were transported to the north bench area of the project and negotiated into the autoclave building, where a jack-and-slide process was used to lift the large items to be slid sideways onto piers and lowered down onto

two six-metre bearing plates and sixteen 70-millimetrediameter anchor bolts. “The fit was perfect,” Fraser says. By August, the first two autoclaves were on site, and the remaining two were there by mid-November.

Brick by brick The autoclaves are constructed of carbon steel, with the vessel shell made of 100-millimetre-thick plate. A lead lining was put in during fabrication to protect the vessel shell from corrosion. A team of 12 lead burners from JL Goslar GmbH & Co. KG welded approximately 60 tonnes of lead into each autoclave. Currently, at site, a refractory brick lining is being put in the autoclaves by Koch Knight LLC to thermally insulate the process and protect the vessel from the challenging conditions. The lining will be 300 millimetres thick, comprising of four layers of brick. A team of 12 masons is working on site laying 98,000 bricks in each autoclave. “Bricking the autoclaves takes talent – there are many nozzles, openings for pipes, agitators, internal structural components and so on,” Fraser says, “all with specific designs to ensure they are protected thermally and chemically and perfectly fit. The brick work started at the beginning of September 2010 and will finish at the end of June 2011.” CIM

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March / April 2011 | 21

upfront TECHNOLOGY by Neville Judd

Mapping the past reaps continual rewards MineSight helps bridge the gap between 2D and 3D in Canada’s North

Courtesy of Mintec Inc.

MineSight 3D software allows the user to digitize 2D data such as geological maps, drilling and surface data and convert it into a 3D model

icture the mess. Disintegrating paper data, rudimentary computer files close to obsolete – almost a century’s worth of valuable data from the historic Yellowknife Gold Camp on the verge of being lost or destroyed. This was one of the major challenges facing members of the EXTECH III multi-disciplinary project in Canada’s Northwest Territories. Its mandate was to develop new ideas and technologies to help mining companies find new reserves and deal with arsenic remediation issues. EXTECH III began in 1997 as a collaboration of government scientists, private industry and seven Canadian universities. Among its priorities were bedrock mapping and geochronology, surficial mapping and geochemistry, geophysics, mineral deposit studies, and data integration and delivery. The Yellowknife camp is one of Canada’s major historic gold mining districts. The two largest past producers in the camp, the Con and Giant mines, produced more than 5.5 million and 7.1 million ounces of gold, respectively. But weak gold prices, diminishing reserves and the mining companies’ wish to compare mineralization at Con and Giant led to EXTECH III. “It involved an incredible amount of work,” recalls Dean McDonald, former vice-president of exploration for Miramar, then owner of Yellowknife Gold Camp. “It was a project that some of us thought might be too ambitious.”

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Building the 3D model Much of the records from the two mining camps existed as old drill logs, plans, sections and sampling reports. This data needed to be compiled and integrated into a comprehensive three-dimensional geographic information system 22 | CIM Magazine | Vol. 6, No. 2

(GIS) model to provide a framework for both the study and remediation efforts. To accomplish this, EXTECH III used MineSight from Tucson, Arizona-based Mintec Inc., a software system designed to bridge the considerable gap between aging and archaic 2D data and a 3D model. Garth Kirkham, of Vancouver-based Kirkham Geosystems, was responsible for integrating numerous decades and vintages of geological mapping and sampling, exploration drilling, surface data and mining into a 3D model.“The problem really came down to two factors,” says Kirkham. “All of the historic data, for this project and many other legacy mine sites, is 2D and exists as large volumes of paper or linens.” “Multiple grid systems were used for various reasons and purposes,” he explains further. “This posed a problem, linking the datasets and the mines together in 3D now that the whole belt was under one umbrella for the first time.The first step was to digitize the data, which was laborious and time-consuming. Then this digitized data had to be placed and referenced in three dimensions.” Using MineSight, Kirkham archived vast amounts of historical data and visualized the risk areas among arsenic stopes. Drill targets for future exploration were also identified. “The strength of the MineSight system is in its 3D modelling capabilities,” says Kirkham.“This allows the ‘linking’ of the 2D shapes into a 3D solid for visualization and for volumetric analysis. The result was an accurate representation of the mineralized structures along with a complete picture of the mine workings.”

Data mining Surface features, surface geology, structural geology, current and historic mining areas, and point sample data (geochemistry and whole rock) are all now incorporated into the 3D GIS model. Also incorporated are production drilling and surface and underground explorations (including more than 60,000 drill holes). This has highlighted, in 3D, potential gaps in the drilling and areas with exploration potential. As well, geochemical point data derived from more than 5,000 analyses have also been incorporated and combined with the geostatistical models, allowing for useful visual display and analysis. Kirkham says the process of scanning and digitizing the thousands of individual plans and sections, georeferencing and the subsequent modelling took more than two and a half years. “The ability to quickly digitize and integrate data in many formats in 3D was invaluable,” he says. “By getting everything into MineSight, we were able to ensure that it existed in electronic form in the system and export it into AutoCAD.”

upfront TECHNOLOGY

“Accurate models of the arsenic stopes were critical in identifying their precise location,� explains Kirkham. “MineSight was able to pinpoint exactly where those drill holes intersected stopes and drifts, which could be conduits for leakage and flow. Knowing whether these were potential risks for leaks in the future was critical.�

MineSight becomes the standard bearer The results from the study were published in 2006, and the valuable data unearthed from the project is being still used today. The 3D model produced by EXTECH III has become the benchmark at other historic mines undergoing exploration, mine planning and design. “The 3D model that MineSight helped create became an amazing tool to use in exploration for extrapolating mineral, structural or geochemical trends and identifying new targets,� says McDonald, currently vice-president of exploration for Vancouver-based Hecla Mining. “The work from EXTECH III has been a guide for exploration on other greenstone belts throughout the world,� says McDonald. “Had a similar 3D model been available 10 years earlier, with time to explore before the mines were depleted, I suspect there would still be gold production in the Yellowknife greenstone belt.� That legacy is also recognized by government participants in EXTECH III. “The ability to visualize these models often

demonstrated their value by highlighting interesting new targets that had previously been overlooked,� says Scott Cairns, chief geologist at Northwest Territories Geoscience Office. Dr. Lyn Anglin, Natural Resources Canada co-manager of the EXTECH III project and now president and CEO of Geoscience BC, agrees. Kirkham’s work with MineSight, she says, “had, and continues to have, applications to mineral deposit and structural studies of the mine, as well as to environmental remediation work in the area.�

New version, new challenges Late last year, Mintec released version 6.0 of its 3D software. It is being used by Kirkham to update a multi-disciplinary 3D model of the Can Tung Mine north of Watson Lake in the Yukon, for the North American Tungsten Corp. Currently, the software is being used in uranium exploration on Inuit land in the territory of Nunavut. Last Spring, Kirkham received the J.C. Sproule Memorial Plaque from the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) in recognition of his “Long-standing dedication to the development and practical utilization of 3D geological and geostatistical modelling for northern mining projects.� “The work and dedication that I am being recognized for has all been done on the MineSight system and with Mintec’s support,� Kirkham said at the time. CIM

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upfront S U S TA I N A B I L I T Y by L a u re e n W hy te

Inspiring confidence in CSR Seven questions lead to successful community engagement in the Mt. Milligan project were met, but also that regulators faced much less political risk than usual.

A textbook case

Courtesy of Terrane Metals

Terrane Metals’ approach to getting the Mt. Milligan project approved is textbook Seven Questions. The Seven Questions to Sustainability framework was developed by the International Institute for Sustainable Development’s Mining, Minerals and Sustainable Development North America project in 2002 to help international mining companies align their sustainable development goals with those of stakeholders. Seven Questions assesses a project’s commitment to sustainability at each phase of the mining cycle based on deep engagement and partnership with stakeholders. The tool guides companies through the process of developing a sustainability plan, taking into account the life cycle of a mine and all community and ecosystem factors affected by the project’s reach. Using interrogative goal statements rather than a prescriptive set of rules, the framework also clarifies the economic, environmental, social and cultural costs, benefits and risks of putting sustainability concepts into practice, enabling both the company and the community to build a concise sequence of actions and accountabilities. For each of the Seven Questions and its subsets, an “ideal answer” provides the basis for objectives, from which indicators are identified and metrics developed. As the discussion becomes more detail-oriented, site-specific plans can be developed for achieving the objectives, including compromises on how the goals will be prioritized and implemented.

Mt. Milligan Community Sustainability Committee meeting in Prince George in 2009

n November 2, 2010, Federal Environment Minister Jim Prentice announced that Mt. Milligan, Thompson Creek Metals Company’s copper-gold deposit near Fort St James, had been given the final goahead, making it the first new major greenfield mine in British Columbia since the late nineties. The project’s approval process was smoother than most, given the relatively small footprint due to existing road and power infrastructure, a pledge to avoid discharging surface water to nearby streams, and a site already decimated by the pine beetle infestation. But a big part of the project’s success stems from the work Terrane Metals undertook to engage with local community stakeholders, prior to its acquisition by Thompson Creek. It was an approach enabled by its adoption of the rigorous “Seven Questions to Sustainability” framework. Stakeholders’ early and significant involvement in the approval process helped not only to ensure that local concerns

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24 | CIM Magazine | Vol. 6, No. 2

Seven questions in action Terrane acquired Mt. Milligan in 2006 after previous owner Placer Dome’s mine Republished with permission of the International Institute for Sustainable Development (IISD) www.iisd.org.

development certificate expired. That spring, Terrane set about contacting local stakeholders and First Nations to identify interests and concerns. By summer, a project description had been filed with the British Columbia Environmental Assessment Office (BCEAO). Terrane Metals’ corporate leaders wanted to pursue an engagement plan that would help them build a sustainability strategy that was a good fit for Mt. Milligan and its stakeholders. Of all the frameworks and guidance available to the minerals sector, the Seven Questions to Sustainability was adopted as the most relevant and useful tool for building the strategy. As a result, Source: IISD consultation was early and tailored to the style and needs of the communities through open houses and dinners, group discussions, meetings with elders and offreserve residents. Through the initial rounds of community consultations, Terrane Metals responded to community concerns by relocating the water supply pond, realigning part of the tailings dam and changing the location of the concentrate load-out to avoid increased traffic through Fort St. James. Pleased that their voices were being heard, community stakeholders, including the Macleod Lake Indian Band and other Treaty 8 First Nations, remained actively involved with the project throughout its lengthy provincial and federal approval processes.

A measured response

NING AND MET TALS ALS ENERGY | MINING Conceptual and Feasibility Studies Reports NI 43-101 Technical ech Mine Planning and Design Plant Design and Simulation Project Management EPCM Projects Commissioning Assistance Process Optimization and Control

Stakeholders meet To further deepen the dialogue between local communities and mine developers, Terrane decided to form a stakeholder committee. Potential participants, drawn from municipal and First Nation governments, economic development offices, educational and health institutions and local businesses, were identified using a standard stakeholder matrix and invited to work with the company on a long-term strategy for sustainable development. At the first meeting, stakeholders were provided with detailed background material on the proposed mine development and samples of community-based planning in relation to industrial development (areas of priority, capacity building, asset March / April 2011 | 25

upfront

A framework for engagement

S U S TA I N A B I L I T Y

OBJECTIVES: mapping). Once the stakeholders determined that they wanted to work with the company to create and implement a long-term vision and plan, they began defining the character and key values of the communities and how their assets – knowledge, expertise, infrastructure and services – could be used to enhance the benefits and minimize the impacts of the Mt. Milligan Mine. At this point, the stakeholders formed the Mt. Milligan Community Sustainability Committee (CSC). Committee members came from all over the region, including the communities of Mackenzie, Fort St. James, Vanderhoof, Prince George, Macleod Lake, West Moberly and Nak’azdli. The group worked together to determine how they would operate and make decisions. Objectives, terms of reference and areas of focus were also drawn up. As Mt. Milligan enters the first stage of construction, Terrane Metals and the communities have established an enduring partnership, aided greatly by the Seven Questions to Sustainability. This relationship of mutual respect and confidence will remain well beyond the life of the mine. CIM

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To ensure that area residents would be regularly informed about the operation of the mine. To provide a forum for communities of interest to provide suggestions and concerns to Terrane, and assist with the monitoring of project sustainability indicators. To ensure that Terrane Metals’ contributions to community development are aligned with community priorities, ensuring a regional legacy that is environmentally and socially acceptable.

TERMS OF REFERENCE:

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To provide a forum for information-sharing about the mine (by Terrane Metals) and community priorities and issues (by committee members). To advise Terrane Metals on the development and monitoring of project sustainability indicators, community development funding and other areas as necessary. To foster partnerships and collaboration to achieve the project’s objectives.

AREAS OF FOCUS:

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Education & training Business development Health & safety Environment Community development

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upfront Q&A by Richard Andrews

Iron woman’s global challenge An ambitious agenda for IOC president challenging economic climate, a competitive global market, company expansion, a corporate makeover and even floods – these are just some of the challenges for Zoë Yujnovich during her first 12 months as president and CEO of the Iron Ore Company of Canada (IOC), the country’s largest iron ore producer. Yujnovich, 36, is the youngest person and first woman to head IOC, a leading global supplier of iron ore pellets and concentrates to steel producers in North America, Europe and Asia. With mining, concentrator and pelletizing operations in Labrador City, Newfoundland and Labrador, the Montreal-based company also operates the Quebec North Shore and Labrador Railway to ship ore concentrate and pellets from the mines to the port of Sept-Îles, Quebec. Educated in Australia, Yujnovich is a veteran of the international mining group Rio Tinto, IOC’s major shareholder and operator. Prior to February 2010, she was president of Rio Tinto Brazil. CIM interviewed Yujnovich on the eve of her first anniversary at IOC.

Class Safety Performance. That’s not something that fits many people’s image of mining in Brazil. The employees were genuinely very thankful to be working in the mine. They saw it as a good job. They were well trained, well paid by local standards and had sustainable employment for a long period of time. These are all things that cut to the core of a developing country. As a result, the workforce was highly engaged, motivated and interested in the improvement of the workplace. We want to generate a similar engagement here in our Canadian operation.

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We spent a lot of time in the past year constructing a compelling vision of what we need to do differently.

CIM: It’s minus 18 today in Montreal. What was it like moving from the sun and beaches of Rio de Janeiro to come and work in Canada? Yujnovich: We’ve moved a lot as a family. We have a daughter born in Brazil, a son born in America and another daughter born in Australia. Coming to Montreal was one of our easiest transitions. Things function well here and we love the outdoors. Last weekend we went snowshoeing. We make the most of every place we live.

CIM: How would you compare the operating conditions in both countries? Yujnovich: The basic mining process around the world is pretty much the same. The differences between Brazil and Canada, I guess, are more around the people who work in the mines and their cultural influences. Rio Tinto’s Brazilian iron ore operation actually won the Rio Tinto Chief Executive Safety Award three years in a row for Best in 28 | CIM Magazine | Vol. 6, No. 2

CIM: You came in with a mandate for change. What have been the most significant areas that have been addressed to date? Yujnovich: The first one would be aligning the people in the business with what we need to deliver. My executive team has undergone a number of changes to make sure it has clarity about how we’re going to drive the company forward. The second main change has involved sustainable development while changing the health, safety and environmental practices of the company. We’ve had some great improvements over the past decade, but there’s a need to seriously revamp

those aspects. And third is how we deliver. We’ve always had a clear picture of what we need to deliver, but how we do it has always been a little more difficult to articulate. We spent a lot of time in the past year constructing a compelling vision of what we need to do differently. IOC’s strategy is to be competitive in the global iron ore industry. Historically, we’ve been very much a regional player, appropriately, given the market into America and Europe. But being competitive on a global basis requires us to think very differently about how we deliver our product into the marketplace – predominantly China and Asia. While that’s interesting intellectually, practically, it’s difficult to make that mean much to the broader workforce.

upfront Q&A

CIM: How have you tackled that challenge? tries, it rapidly results in either an oversupply of product or Yujnovich: We’ve been talking a lot about building communi- a significant rise in demand. We remain optimistic about the ties. That involves helping countries like China develop future of iron ore, largely because we see continued demand infrastructure such as buildings and bridges. We also help in Asian countries. Apart from China, we see strong longer build local communities and like to work in partnership term demand from Japan, Korea, Taiwan, India and others. with them. The global financial crisis also In Labrador City we partnered with meant that supply into those markets I’ve worked hard the municipal and provincial governwas slower than anticipated, so I think ments and contributed $600,000 there’ll be an imbalance in supply and and always felt I’ve been towards a CAT Scan for the local hosdemand for some time. We’re really rewarded for that effort. pital. That’s because the community working to meet that demand, so if told us there was a most critical need there is a dip in the markets we can I don’t think there are for diagnostic medical equipment. insulate ourselves to some extent by any free tickets Similarly, we contributed $100,000 for being a competitive supplier, without a day care, which was needed. making drastic changes to the way we to a promotion Another example is in Sept-Îles, operate. or an opportunity. where we conducted campaigns with You have to prove CIM: India recently announced plans to Centraide Canada to encourage local double expenditure on economic and community giving. A happy commuyou can deliver. social infrastructure to about $1 trillion nity ultimately affects our workforce. between 2012 and 2017. How significant CIM: To what extent has the bad press the mining industry is India’s growth to your industry? received in the past driven such community involvement? Yujnovich: I think the jury’s still out on that. It’s unquestionYujnovich: The reality for the mining industry is that bad able that India will play a strong part in the future. The quespress comes from a small number of players. Unfortunately tion for me is when? Rio Tinto is already working to bring for the industry, people often don’t differentiate between the into production an iron ore deposit in the eastern state of poor performers and those that promote strong and sustain- Orissa. At the moment, India is not showing the signs of able economic growth in the regions. IOC and Rio Tinto demand that we’re seeing in China, but I do think it’s likely don’t contribute to the bad press, and community involve- we’ll see that change in the near term. ment is one of their fundamental values. We have a strong legacy of building roads and schools in CIM: You were invited to address the Global Summit of Women mining towns. We also understand that our licence to oper- in Washington on the theme of “Creating a level playing field for ate in one place is fundamentally affected by how we operate women.” From your perspective, is that battle still to be won? elsewhere. So the mine here in Canada can affect how we Yujnovich: It’s hard to ask someone in a role like mine to access leases in western Africa. With globalization, the know whether the odds are against you or with you. I’ve nature of this industry is much broader than it once was. worked hard and always felt I’ve been rewarded for that effort. I don’t think there are any free tickets to a promotion CIM: What have been the main challenges of your first year in or an opportunity. You have to prove you can deliver. office? Yujnovich: They are linked to IOC’s goal to be competitive in CIM: Nevertheless, mining has traditionally been a malethe global market. Demand is primarily growing in a region dominated industry. Do you think there is a glass ceiling? that is very distant from us. To be competitive we have to Yujnovich: It might be the case in some companies, but cerfactor in extra considerations, such as shipping, to get our tainly not within Rio Tinto. Every year we’re increasing the product into the new market. number of women in senior leadership roles. There’s been a Internally, we have to make sure that the new pressures transition in the industry. As we enter more global markets encourage us to perform while we continue to do the right we’re not only seeing more gender diversity but also more things for the health and safety of our employees, sustain- cultural diversity than existed five years ago. able development, stewardship of the land, training and development in the communities. CIM: From 1977 to 1983, Brian Mulroney was sitting in your chair and then went on to become prime minister. Do you have CIM: Given the recession and fluctuating commodity prices in similar ambitions? recent times, what do you see as the short- and long-term Yujnovich: My philosophy is that you live as much as you prospects for your industry? possibly can in the present. I like to think that my role today Yujnovich: The 2008 to 2009 global financial crisis showed us is to be a good mother and to lead IOC into the best possible that things happen much more quickly than they used to. So position for future generations. So, for now, I’ve got my work when there’s a ripple effect or an imbalance between coun- cut out for me. CIM March / April 2011 | 29

Moving millions Canada’s mining production in motion by Dan Zlotnikov

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s a major competitor in the global mining arena, Canada relies on many strengths. There is, of course, the sheer enormity of the country’s mineral wealth, without which the industry could never have been conceived. There is also the network of training programs and educational institutions whose graduates are in such high demand, not only in Canada, but around the globe. A less-recognized,

30 | CIM Magazine | Vol. 6, No. 2

yet absolutely vital pillar of the Canadian mining industry is the extensive, hugely complex and constantly expanding transport network. The globalization of trade now demands that raw materials move from pit to rail to port and then traverse oceans to feed the mills in Asia and Europe, whose economies are hungry for our metallurgical coal and ores. Industrialization continues to provide the means for hundreds of millions to

mining in motion

Courtesy of CN

A challenge at the best of times

Canadian National announced that it will invest $1.7 billion in 2011 to build more tracks and improve railway infrastructure.

eat more of the foods that we Canadians take for granted — foods that demand fertilizers this country produces to keep pace with that growing appetite. Without a way to transport your product to the customer, though, you might as well have left it in the ground. Many of the major logistical challenges inherent in a supply chain are not readily apparent to the casual observer, yet must be solved or prevented by the carriers on a daily basis. “I always like to say that we’re out there with oil cans every day to resolve the minor things, to make it flow as smoothly as possible to end customers,” says Steve Douville, director of distribution and logistics for Vale. “Our goal is to be invisible, to look like a plant has produced something and a salesman has sold it and away it goes.”

The volume of product to be transported and the distances it must travel mean being invisible is far from easy; any small glitch, magnified by a few hundred kilometres and many hundreds, or even hundreds of thousands, of tonnes does not stay small for very long. And since the name of the game is efficiency, both mine operators and carrier capacity providers work around the clock to prevent or minimize these glitches. To put the challenge in perspective, one need only look at the amounts. According to Statistics Canada, in 2009, mining industry output accounted for almost 107 million tonnes of railway revenue freight. As a number of projects around the country are expected to come online, mine operators will look to the rail system as the transport method of choice. Just as the rail system is of vital importance to Canada’s miners, the reverse is also true. According to Statistics Canada, between 2002 and 2009, mined products have been consistently responsible for over half of all revenue freight transported by rail. In 2009, the mining sector accounted for 44 per cent of all freight shipped by rail in that year. The second largest sector, grain, accounted for 15 per cent. The country’s rail carriers are well aware of the need for added capacity and are working to meet the upcoming demand. Canadian National (CN) says it will spend $1.7 billion in 2011 on capital projects, $1 billion of that amount on laying new track and improving existing lines. Canadian Pacific (CP) says its outlay will be around $1 billion on projects this year, with the bulk devoted to track infrastructure renewal and productivity enhancements. One company faced with the need for expansion is Saskatoon-based Canpotex – the world’s largest potash exporter. Canpotex president and CEO Steve Dechka says the world demand for potash is only expected to rise. Supporting Dechka’s statement is Scotiabank’s January Commodity Price Index report, which states, “We expect the agricultural environment to be one of the best ever seen for fertilizer application in 2011, lifting demand and prices for potash.” Canpotex currently uses its custom-built fleet of some 5,000 rail cars to transport potash from the Saskatchewan mines to Neptune Bulk Terminals in Vancouver, a trek of around 1,600 kilometres each way, and to Portland terminals in Oregon, 1,800 kilometres each way. The company is working with Canadian Pacific Railway to expand physical rail capacity and further its strategy of increasing the length of its trains, says Canpotex vice-president of operations Scott Rudderham. “The limiting factor is the capacity of the sidings,” Rudderham explains. Because both CP and CN have only one main rail line, they use sidings – offshoots of track from the main line – to allow trains to pass each other. It is the length of these sidings that determine the maximum number of cars a train can have when passing another train. Rudderham says that part of CP Rail’s infrastructure March / April 2011 | 31

Courtesy of Westshore Terminals

mining in motion

Westshore Terminals, south of Vancouver, ships about 21 million tonnes of coal annually.

expansion will be to lengthen the sidings in strategic locations, facilitating more long trains on their system, but this is not always possible. “It depends on where some of those sidings are located,” he says. “If they are in the Canadian Rockies, you are going to be limited by the geography that they have to deal with, so they can’t necessarily lengthen all of them. They are trying to do as much as they possibly can.” Canpotex, whose custom-designed 47-foot cars allow the company to maximize the number of cars it can fit on the current sidings, is hoping to move up to lengths of as many as 170 cars per train, going from the current

32 | CIM Magazine | Vol. 6, No. 2

maximum of 15,000 metric tonnes to as much as 17,500 tonnes per train, further increasing the efficiency of its transport network.

In search of capacity The expansion of rail infrastructure could not have come at a better time for Fortune Minerals’ Mount Klappan project in western British Columbia. The project is an advanced-stage anthracite development with reserves of 100 million tonnes and a resource of 2.8 billion tonnes. Unfortunately, the local rail operator’s haulage rates were such that the option was deemed uneconomical, and the company was left with trucking as the only alternative. Trucking the coal would have presented a number of challenges, explains Fortune Minerals president Robin Goad. The company would have had to “construct a 100-kilometre greenfields road to connect to Highway 37, and another 150 kilometres to the port of Stewart,” he says. “This would have meant a truck passing through downtown Stewart every 10 minutes, 24/7.” The truck option would have also put a hard limit on future expansion capacity, adds Goad. This consideration was especially important when rail again became an economical choice. Last year, Goad explains, CN Rail, which had previously acquired the longterm lease on the track leading to the mine, made a more competitive offer, which Fortune Minerals accepted.

mining in motion The track, which requires upgrading and extension along the existing right-of-way and roadbed, will allow the mine to not only match the maximum trucking capacity of three million tonnes per year, but to go far beyond. “We will have the option of going up to five, six or ten million tonnes per annum,” says Goad. Of course, capacity is also a challenge at the end of the rail journey, especially when it comes to the West Coast. Ridley Terminals, the main freight facility serving B.C.’s coal producers, has plans underway for doubling its capacity to 24 million tonnes per year by 2015. But competition for transport capacity is mounting. New projects such as Mount Klappan and existing ones such as Teck Resources’ Quintette Mine coming online will be faced with growing pressure from companies south of the border. Ridley Terminals, Inc. (RTI) recently signed an agreement with Arch Coal, the United States’ second-largest coal producer, for the use of up to 2.5 million tonnes per year. The agreement quickly attracted heavy criticism from Canada’s coal industry over concerns that RTI will not have sufficient capacity to meet the country’s own shipping needs. Counter to that position is RTI’s announcement that the revenue from the new agreement will be sufficient to repay 75 per cent of the loans the company needs to fund its expansion plans. Nor is the cross-border capacity exchange unidirectional — Canpotex has been using bulk terminal facilities in Portland, Oregon for a number of years.

Further alleviating the capacity pressures are B.C.’s lower mainland Westshore and Neptune terminals. Westshore alone has been shipping 21 million tonnes of coal annually. (Neptune Terminals, North America’s largest multi-product bulk terminal, shipped a further 5.5 million tonnes of coal in 2010, a 30 per cent jump from the previous year.) In addition to projects to increase capacity, exporters have been working on making use of alternate shipping approaches. In particular, the Mining Association of Canada 2010 Facts and Figures report highlights the large number of freight containers bringing finished goods to Canada, but then returning to Asia empty. According to the report, “Some agri-food products are now being shipped in containers rather than in bulk and a similar trend may develop in the mining sector.”

Go east With so much attention — and pressure — focused on Canada’s western coast and Asia-bound shipments, it is worth remembering that marine transport can get quite a ways inland from Canada’s Atlantic shore. Terence Bowles, president and CEO of the St. Lawrence Seaway Management Corporation, points out that cargoes can travel by ship as far west as Duluth, Minnesota. The combined Great Lake Seaway System spans 3,700 kilometres and offers 50 ports along the route. Canpotex already uses this option, shipping

March / April 2011 | 33

mining in motion potash to its eastern customers via Thunder Bay. It is also an important route for oil sands operations along which prefrabricated modules are brought from overseas. Bowles also highlights another important consideration. Marine transport is more efficient, and far less carbonintensive, than trucking. According to a study cited by Seaway officials, marine freight is more than four times as fuel efficient as trucking, and 70 per cent more efficient than rail. The Seaway System also serves as a route to one of Canada’s more extreme mining locations, Vale’s Voisey’s Bay Mine in Newfoundland.

Going to extremes When it comes to moving bulk cargos, Canada’s winters can be pretty challenging, but parts of the country are far more taxing than others. The Voisey’s Bay Mine is in one such example as it is hundreds of kilometres from major centres of population, on the eastern shores of Newfoundland. The mine flies its 450 staff in and out, but even at the current prices of around $27,000 per tonne, nickel cannot economically be shipped by air. The solution was to send the product by sea, says Vale’s Douville, but this was not exactly easy. To meet the challenge of Newfoundland’s winter seas, the ship had to be able to crunch through ice up to 20 metres thick.

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“We worked with a company called Fednav to build an ice-going vessel, a very high ice class vessel,” Douville explains. A high ice class means a reinforced and specially shaped hull, and protection for the ship’s screws and rudders to avoid damage from the ice. The result is one of the highest ice class bulk carriers in the world, the Umiak I. Completed in 2006, the Umiak I now makes 12 trips a year between Voisey’s Bay and the port of Quebec, moving over 350,000 tonnes of nickel concentrate annually. Despite the extreme conditions the vessel faces every winter, Fednav’s operations manager for Canarctic, Tim Keane, is not concerned. “In the 13 years that we’ve been going up to the Arctic in winter months, we have always succeeded in doing so,” he says. The Voisey’s Bay operation is by no means the limit the Canadian logistics chain is expected to reach. The Mary River Project, currently under development by Baffinland Iron Mines, is intended to be a large open pit iron mine in the north of Baffin Island. The project, which is expected to reach product volumes of three million tonnes per year by 2014, is going to offer a new level of challenge to Canada’s transport providers. But a proven history of ingenuity and innovation give the miners certainty that the logistics specialists can rise to the challenge of not only moving the nation’s mineral wealth, but doing so almost invisibly. CIM

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34 | CIM Magazine | Vol. 6, No. 2

l’exploitation minière en mouvement

Le déplacement de millions

C

’est grâce à ses nombreux points forts que le Canada a su prendre place parmi les joueurs d’envergure dans l’arène mondiale du secteur minier. Quoique moins bien connu, il demeure que le réseau de transport constitue un élément tout à fait crucial de l’industrie minière, et il s’agit d’un élément d’une vaste portée, excessivement complexe et dont l’expansion continue sans cesse. Sans disposer de moyens rentables et efficaces pour transporter votre produit à vos clients, vous êtes aussi bien de le laisser au fond de la mine. Bon nombre des plus importants défis logistiques d’une chaîne d’approvisionnement ne sont pas faciles à déceler pour un simple observateur, mais ceux-ci sont néanmoins surmontés tous les jours. « Nous avons pour objectif d’être invisibles, pour qu’il semble qu’une usine a produit quelque chose, le vendeur l’a vendu et puis le produit est parti », explique Steve Douville, directeur de la distribution et de la logistique chez Vale.

Un défi, même quand tout va à merveille Si le système ferroviaire revêt une importance cruciale pour les mineurs canadiens, l’inverse est tout aussi vrai. Selon Statistiques Canada, les produits des mines ont compté, entre 2002 et 2009, de façon constante pour plus de la moitié du fret payant transporté par chemin de fer. En 2009, le secteur minier a représenté 44 pour cent de toutes les cargaisons transportées par chemin de fer au cours de l’année. Le grain arrive en deuxième en importance avec 15 pour cent. Les transporteurs ferroviaires canadiens sont tous bien conscients du besoin d’accroître la capacité de transport et s’efforcent de satisfaire à la demande. Le Canadien National (CN) a déclaré avoir attribué 1,7 milliard de dollars à des projets d’immobilisations en 2011, dont un milliard de dollars ira à la pose de nouvelles voies ferrées et à 36 | CIM Magazine | Vol. 6, No. 2

l’amélioration des voies existantes. Quant au Canadien Pacifique (CP), la société prévoit dépenser un milliard de dollars au cours de l’année, dont la majorité ira au renouvellement de l’infrastructure ferroviaire et à des améliorations de la productivité. Parmi les entreprises éprouvant un besoin de croissance se trouve Canpotex, société établie à Saskatoon et le plus important exportateur de potasse du monde. Selon le président et chef de la direction de Canpotex, Steve Dechka, la demande mondiale en potasse ne peut qu’augmenter. Canpotex a recours à sa flotte d’environ 5 000 wagons construits sur mesure pour transporter la potasse sur une distance de 1 600 kilomètres dans une direction seulement depuis les mines de la Saskatchewan jusqu’aux terminaux de Neptune à Vancouver, et à une distance de 1 800 kilomètres jusqu’aux terminaux de Portland, en Oregon. « La société collabore avec le Canadien Pacifique pour accroître les capacités physiques des voies ferrées et augmenter la longueur des trains », a souligné Scott Rudderham, vice-président des opérations chez Canpotex. Grâce à ses wagons construits sur mesure d’une longueur de 47 pieds (un peu plus de 14 mètres), Canpotex peut déjà maximiser le nombre de wagons qu’elle peut inclure sur les voies d’évitement existantes, mais espère prolonger les trains pour inclure jusqu’à 170 wagons par train, ce qui ferait passer la capacité maximale actuelle de 15 000 tonnes métriques à 17 500 tonnes par train.

À la recherche de plus de capacité La croissance de l’infrastructure ferroviaire ne peut pas arriver en temps plus opportun pour le projet du Mount Klappan de Fortune Minerals situé dans l’ouest de la Colombie-Britannique. Ce projet de développement maintenant à un stade avancé concerne une mine d’anthracite contenant des réserves de 100 millions de tonnes et un

Courtoisie de CN

Le secteur minier a représenté 44 pour cent du fret total transporté par rail en 2009.

l’exploitation minière en mouvement gisement de 2,8 milliards de tonnes. Malheureusement, les taux de convoyage du service ferroviaire local étaient peu rentables, ce qui ne laissait à la société minière que le convoyage par camions comme unique solution de rechange. Comme l’a expliqué le président de la société, Robin Goad, le transport par camions du charbon aurait entraîné de nombreux défis. Ainsi, la société devait « construire des zones vertes pour 100 kilomètres de route afin d’atteindre l’autoroute 37, puis 150 kilomètres de plus pour atteindre le port de Stewart. » L’an dernier, le Canadien National a présenté une offre intéressante, que Fortune Minerals a acceptée. La voie ferrée permet à la mine de dépasser la capacité maximale des camions par trois millions de tonnes par année. « De plus, nous avons la possibilité d’aller jusqu’à cinq, six ou dix millions de tonnes par an », a ajouté Robin Goad. La capacité demeure un défi au terme du voyage par train, et surtout sur la côte du Pacifique. Les installations marchandises de Ridley Terminals constituent la ressource principale pour les entreprises houillères de la ColombieBritannique, et Ridley prévoit doubler sa capacité jusqu’à atteindre 24 millions de tonnes par an d’ici 2015. Cependant, la demande de capacité de transport ne cesse de croître : de nouveaux projets comme celui de Mount Klappan, ainsi que des projets existants comme la mine Quintette de Teck Resources où la production vient de débuter, devront contrer les pressions croissantes de sociétés minières au sud du 49e parallèle. Ridley Terminals, Inc. (RTI) a d’ailleurs récemment conclu une entente avec Ach Coal, la deuxième plus importante société houillère des ÉtatsUnis, pour faire passer jusqu’à 2,5 millions de tonnes par an par ses terminaux. Cette entente s’est attirée de dures critiques suscitées par les préoccupations de l’industrie houillère canadienne. Pour défendre sa position, RTI a annoncé que les revenus que l’entreprise tirera de cette entente lui permettront de régler 75 pour cent des prêts qu’elle devra contracter pour financer ses projets d’agrandissement. Par ailleurs, ces échanges transfrontaliers pour satisfaire des besoins de capacité ne s’effectuent certes pas que dans un sens : Canpotex a recours aux terminaux vraquiers de Portland en Oregon depuis plusieurs années déjà. Les terminaux de Westshore et Neptune dans la vallée du Bas-Fraser servent à pallier les besoins pressants de capacité. La société Westshore expédie 21 millions de tonnes de charbon par an. Quant à Neptune, cette société possède le plus important terminal vraquier pour produits multiples en Amérique du Nord, et ses terminaux ont servi à expédier six millions de tonnes de charbon supplémentaires en 2010, soit une hausse de 50 pour cent par rapport à l’année précédente.

Un regard vers l’est Alors que la côte ouest du Canada et les cargaisons à destination de l’Asie font l’objet de tant d’attention et de pressions, il est toujours utile de souligner que le transport maritime peut se rendre assez loin à l’intérieur du pays depuis la côte atlantique canadienne. Le président et chef

de la direction de la Corporation de Gestion de la Voie Maritime du Saint-Laurent (CGVMSL), M. Terence Bowles, a souligné que les cargaisons peuvent se rendre par bateau aussi loin à l’ouest que Duluth, au Minnesota. Le réseau combinant les Grands Lacs et la Voie maritime du SaintLaurent couvre 3 700 kilomètres et compte 50 ports sur son parcours. Canpotex a déjà recours à cette solution pour expédier sa potasse à ses clients de l’est du Canada en passant par Thunder Bay. Il s’agit aussi d’une voie importante pour les activités liées aux sables bitumineux par le biais de modules préfabriqués importés de l’étranger. Selon une étude à laquelle se sont référés les représentants de la CGVMSL, le transport maritime est quatre fois plus économique que le camionnage et 70 pour cent plus économique que le transport ferroviaire. De plus, le réseau de la Voie maritime représente une voie d’accès à l’une des régions minières les plus éloignées au Canada, la mine de la société Vale à Voisey’s Bay, à Terre-Neuve.

Passer aux extrêmes Lorsqu’il s’agit de transporter des cargaisons en vrac, il y a des régions du pays qui présentent plus de difficultés que d’autres. La mine de Voisey’s Bay est située sur la côte est de Terre-Neuve, à des centaines de kilomètres de centres de population importants. Les 450 employés de la société minière s’y rendent et en reviennent par avion, mais même si le nickel se vend à l’heure actuelle à un taux de 27 000 $ la tonne, ce n’est toujours pas rentable d’expédier le minerai par voie aérienne. La solution était donc le transport maritime, comme nous l’explique Steve Douville. De plus, afin de naviguer les eaux de Terre-Neuve pendant l’hiver, le navire devait être en mesure de broyer des glaces pouvant atteindre une épaisseur de 20 mètres. « Nous avons collaboré avec la société Fednav pour construire un vaisseau brise-glace de très haut calibre », nous explique M. Douville. Un vaisseau brise-glace de très haut calibre réfère à la présence d’une coque renforcée d’une forme particulière et d’éléments de protection des gouvernails et des écrous, afin d’éviter les dommages que pourrait causer la glace. Achevé en 2006, l’Umiak I effectue maintenant 12 voyages par an entre Voisey’s Bay et le port de Québec et transporte plus de 350 000 tonnes de minerai de nickel concentré par année. L’exploitation minière de Voisey’s Bay ne représente certes pas la limite que peut comporter la chaîne d’approvisionnement. Ainsi, des travaux préparatoires sont en cours pour le projet de la rivière Mary mené par Baffinland Iron Mines, laquelle prévoit exploiter une large mine de fer à ciel ouvert au nord de l’île de Baffin. Ce projet est censé produire des volumes de trois millions de tonnes par an d’ici 2014 et représente aussi un défi d’un tout nouvel ordre pour les fournisseurs de services de transport. Cependant, l’ingéniosité et l’innovation dont ont fait preuve les transporteurs à maintes reprises par le passé ont servi à convaincre les mineurs que ceux-ci pourront relever ce nouveau défi et transporter les ressources minérales de la nation, mais aussi qu’ils le feront de façon presque invisible. ICM March / April 2011 | 37

Courtesy of Labrador Iron Mines

project profile

The plant is located one kilometre from the first deposit to be mined.

Future growth built on iron ore legacy by | Correy Baldwin

Sixty years ago, the town of Schefferville, Quebec, was built to support the nearby mine in the Labrador Trough. Thirty years later, mine operations ceased. The management at Labrador Iron Mines has scraped the rust from the once-thriving projects – complete with roads, rail connection and power station – and added new life to the iron rich region.

“T

“The best place to look for a new mine is beside an old mine,” says John Kearney, CEO of Labrador Iron Mines (LIM). Following this strategy, LIM is developing the Schefferville Projects, an area operated by the Iron Ore Company of Canada (IOC) for over 25 years. The Projects lie in the iron-rich Labrador Trough that runs through western Labrador and northeastern Quebec. The Trough region has long been the centre of iron mining in 38 | CIM Magazine | Vol. 6, No. 2

Canada and is one of the major iron ore-producing regions of the world. IOC moved into the area in 1950 and over the next four years completed one of the largest civil construction projects in Canadian history. They developed a mine site and the company town of Schefferville, constructed the Sept-Îles shipping terminal on the Gulf of St. Lawrence, and built a 565-kilometre rail line connecting the two sites.

project profile “There was absolutely nothing there before IOC arrived,” explains Kearney. “There was no town; there was not even a camp. IOC built everything – from the roads to the railroad, the power station, the airport, the hospital, the schools and the gymnasium – everything.” But then IOC shut down operations in 1982, leaving behind the extensive infrastructure, as well as 250 million tonnes of mineable reserves. When Kearney came across the Projects in 2004, he immediately saw an opportunity. “I was attracted to this historic mining area that still had a significant resource and infrastructure and was not mined out,” he says. “I also was intrigued by iron ore. I can’t claim that I foresaw the increase in demand that it has reached today, but I certainly thought the future for iron ore was going to be pretty good.” And he was right. Global demand for iron ore is on the rise, in large part because of growing markets like China and India. At the time, Kearney was chairman of the UK company Anglesey Mining. After conducting an early exploration, drilling and sampling program in 2005 and 2006, Anglesey set up Labrador Iron Mines, which acquired a 100 per cent interest in the project under an initial price offering in 2007.

Building on a strong foundation Labrador Iron Mines is set to begin operations in April, and during this initial production year expects to mine about two million tonnes of iron ore. Subsequent years should see this amount increase to about four million tonnes and then later to six million tonnes per year. The company carried out an extensive exploration program throughout 2008 and 2009, with 5,364 metres drilled and 2,459 metres trenched, increasing the 150 million tonnes of historical resources on the property and qualifying about a fifth of it to date as NI 43-101 compliant. They also completed an environmental baseline analysis, as well as studies on railway and shipping port use. The environmental assessment and mine permitting process for the first-stage James and Redmond deposits were completed within two years. “A rather remarkable progress record,” says Donna Yoshimatsu, vice-president and head of investor relations for LIM. “Permits for future phases and stages will be sought in due course and NI 43-101 reports will be prepared in sequence.” The existing infrastructure gave LIM a huge advantage. Access roads, water supply and sewage facilities were already available when LIM moved in, as was access to an

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project profile

From left to right: Bulk sample shipment in transit; a 4.5-kilometre rail spur was completed last June; LIM has benefited from existing infrastructure and pre-stripped sites.

airport, railway and shipping port. “The make or break of any bulk commodity mining operation is infrastructure,” says Yoshimatsu. “The existing infrastructure here was put in place by IOC for these very deposits. That’s why we’re here today, and why we can keep our capital expenditures in the lowest quartile.” Some upgrades have been required. LIM uses expert contractors skilled in construction in the northern climates. The first major construction activity was re-establishing a 4.5kilometre spur line to connect the processing site to the Schefferville-Sept-Îles main line. Installation of the new track along the existing rail bed was completed in 2010 and then used to bring in the main components of the processing plant and accommodation camp. The track will be used to move the initial shipments of sample ore and to move the iron ore when the mine goes into full production. To reduce capital costs, LIM will lease the railway cars. LIM is also planning to improve processing plant features that will increase capacity, recover fines and lower grade ore. Ore will be crushed and washed at a beneficiation plant, with expected recoveries of 70 to 80 per cent. It is also a very clean operation that will not produce any tailings. The beneficiation plant has a design capacity to process 10,000 tonnes of ore per day. Processing will increase the product grade from 57 per cent to at least 62 to 63 per cent iron, and will produce both coarse lump ore and a finer sinter feed. 40 | CIM Magazine | Vol. 6, No. 2

LIM will be developing 20 direct shipping ore (DSO) deposits – the first time in nearly three decades that the Trough region has seen DSO production. The property features several brownfield sites, which are stripped but not mined. LIM plans to develop and mine the deposits in four stages, starting with those located closest to existing infrastructure. The James deposit, located just one kilometre from the processing area, and the Redmond deposit are slated to be mined first. They are accessible by existing gravel roads and have combined Indicated Resources of 11 million tonnes. The Houston deposit, 18 kilometres southeast of Schefferville and also connected by gravel roads, has Indicated Resources of 19.57 million tonnes. The rest of the deposits on the property, with a combined historical resource of 125 million tonnes, are less accessible. Some of the larger later stage deposits are currently only accessible by helicopter or float plane. The iron ore will be shipped out by rail to the port at Sept-Îles, where it will most likely be sent to steel mills in Europe or Asia. The mine will initially employ 60 workers in the early stages and increase to 110 once production is in full swing. LIM has engaged Innu Municipal to handle the hiring and training of the hourly wage workforce. The only snag is the difficult local winter weather conditions, which will squeeze the processing schedule into a tight

All photos courtesy of Labrador Iron Mines

project profile

seven- to eight-month period (between 212 and 240 days) from April to November.

A northern renaissance IOC’s original rail line is still in use, although the northern section has seen a change in ownership. It is now run by Tshiuetin Rail Transportation (TSH), a consortium of First Nations communities and Canada’s first Aboriginalowned railway. LIM recently finalized a haulage agreement with TSH for 2011. “Our location has a rather unique situation,” explains Kearney. “There are a number of different First Nations, each of whom have Aboriginal rights in the area.” In fact, there are four First Nations communities in the area. LIM has negotiated IBAs with the Labrador Innu, the Naskapi Nation of Kawawachikamach, and two Quebec Innu nations, the Matimekush-Lac John and the Uashat and Mani-Utenam (the Uashaunnuat). Much effort has gone into gaining the support of the First Nations communities, and LIM is keen to see that local

people get the most out of the employment and business opportunities that come with mine operations. “Our objective and policy is to partner with these communities to ensure that they participate and benefit to the greatest extent possible from the development of the Projects,” says Kearney. “There’s also a value that they can bring. They have traditional

March / April 2011 | 41

knowledge, and they know how to work in this part of the country.” A resurgence in iron mining in the area is also good news for the town of Schefferville, which lost two-thirds of its population and fell into an economic depression when IOC moved out. “At that time, IOC was owned by the major U.S. steel companies, and their main objective was to make sure that the steel companies had enough iron ore,” explains Kearney. “Once they had enough iron ore from their Carol Lake Mine near Labrador City to supply their requirements, they didn’t need the Schefferville Projects.” “They were motivated by the requirements of the steel company and not by the motivations of a mining company,” Kearney adds. “In my opinion, a mining company would never have walked away from Schefferville.” Kearney believes that Schefferville will once again become the gateway to northeastern Quebec, helping to play a vital role in Plan Nord, the Quebec government’s economic development plan for its northern region. Yoshimatsu echoes these expectations. “LIM’s restart of these operations should create significant jobs and training for the local people, which in turn will engender other services and industries. It will undoubtedly energize the economy of the region.” CIM

42 | CIM Magazine | Vol. 6, No. 2

Courtesy of Tshiuetin Rail

project profile

SYMPOSIUM 2011 • ROUYN-NORANDA SUR L’ENVIRONMENT ET LES MINES • MINES AND THE ENVIRONMENT

À METTRE IMMÉDIATEMENT À VOTRE AGENDA ROUYN-NORANDA, QUÉBEC, CANADA — LES 6, 7, 8 ET 9 NOVEMBRE 2011

L’Université du Québec en Abitibi-Témiscamingue (UQAT) et l’Institut canadien des mines, de la métallurgie et du pétrole (ICM) vous invitent à RouynNoranda, Québec, Canada, du 6 au 9 novembre 2011, à l’occasion du Symposium 2011 sur l’environnement et les mines. Le Symposium est le résultat d’une collaboration entre la Chaire CRSNG Polytechnique-UQAT en environnement et gestion des rejets miniers, l’Unité de recherche et de service en technologie minérale (URSTM), l’Association minière du Québec (AMQ), le Programme de neutralisation des eaux de drainage dans l’environnement minier (NEDEM), le ministère des Ressources naturelles et de la Faune du Québec (MRNF) et l’industrie. Les objectifs du Symposium visent à partager les connaissances les plus récentes et à discuter des expériences pratiques afin de « trouver des solutions pour concilier rentabilité et protection de l’environnement ».

Dimanche 6 novembre : Cours intensif Lundi et mardi 7 et 8 novembre : Programme technique portant sur :

• Rejets de concentrateur • Remblayage souterrain • Roches stériles • Politique et réglementation & Mines et société • Qualité des eaux • Restauration des sites • Nouvelles tendances

Mardi 8 novembre : Séance plénière Mercredi 9 novembre : Visites de sites Un salon commercial se tiendra aussi parallèlement au programme technique des 7 et 8 novembre. Suivez les publications de l’ICM pour plus de détails et visitez notre site web (accessible prochainement) à : www.cim.org/Symposium2011 Pour plus d’information, contactez : Chantal Murphy (ICM) : 1-800-667-1246

Chaire CRSNG Polytechnique - UQAT en environnement et gestion des rejets miniers

projet en vedette

Perspectives de croissance reposant sur l’héritage du minerai de fer

L

Le projet concerne la fosse du Labrador riche en fer qui s’étend de l’ouest du Labrador jusqu’au nord-est du Québec. La fosse du Labrador a longtemps été le siège de l’exploitation du fer au Canada et constitue l’une des principales régions productrices de minerai de fer dans le monde. « Le meilleur endroit pour dénicher une nouvelle mine est près d’une ancienne mine », de dire John Kearney, président et directeur général de Labrador Iron Mines (LIM). Dans l’esprit d’une telle stratégie, LIM développe actuellement le projet de Schefferville, une région exploitée par la Compagnie minière IOC depuis plus de 25 ans. La Compagnie minière IOC est arrivée dans la région en 1950 et dans les quatre années qui ont suivi, a mis sur pied l’un des plus importants projets de construction civile dans l’histoire canadienne. IOC a développé un site minier et la ville de société de Schefferville, et a construit le terminal d’expédition de Sept-Îles sur le golfe du Saint-Laurent et une voie ferrée de 565 km reliant les deux sites. « Il n’y avait absolument rien là-bas avant l’arrivée de la Compagnie minière IOC. Pas de ville, même pas de site », explique M. Kearney. « Ils ont tout construit – des routes à la voie ferrée, la centrale électrique, l’aéroport, l’hôpital, les écoles et le gymnase – vraiment tout. » 44 | CIM Magazine | Vol. 6, No. 2

Toutefois, en 1982, c’est la fin de l’exploitation minière à Schefferville. IOC cesse ses opérations, laissant derrière elle l’infrastructure ainsi que 250 millions de tonnes de ressources exploitables. Quand M. Kearney prend connaissance des projets en 2004, il y voit une occasion à saisir. « J’ai été attiré par ce site minier historique qui regorgeait toujours de ressources et qui disposait d’une infrastructure non exploitée », explique John Kearney. À ce moment-là, M. Kearney agissait à titre de président de la compagnie britannique Anglesey Mining. Après avoir procédé à une exploration initiale ainsi qu’à des programmes de forage et d’échantillonnage en 2005 et 2006, Anglesey a mis sur pied Labrador Iron Mines (LIM), laquelle a acquis un droit de 100 pour cent sur le projet dans le cadre d’une offre initiale d’actions en 2007.

Poursuivre sur des assises solides LIM prévoit entamer ses opérations en avril et dans le cadre de cette année initiale de production, la société entend exploiter environ 2 millions de tonnes de minerai de fer. Dans les années subséquentes, on peut s’attendre à une hausse atteignant environ 4 millions de tonnes, puis 6 millions de tonnes par année.

Courtoisie de Labrador Iron Mines

LIM prévoit entamer ses opérations en avril.

projet en vedette La société a procédé à un programme d’exploration d’envergure en 2008 et 2009, avec un forage de 5 364 mètres et des fouilles en tranchées sur 2 459 mètres, haussant ainsi les ressources historiques sur la propriété de 150 millions de tonnes et assurant à ce jour la conformité d’environ un cinquième de la propriété (conforme à l’instrument national 43-101). LIM a également effectué une analyse de base sur l’environnement, ainsi que des études sur la voie ferrée et l’usage du port d’expédition. L’étude d’impact environnemental et le processus d’émission de permis relatifs à la mine pour les gisements de James et de Redmond (de première étape) se sont effectués dans un délai de deux ans. « Une évolution du dossier assez remarquable », mentionne Donna Yoshimatsu, vice-présidente et chef des relations avec les investisseurs pour LIM. « Des permis pour les phases et les stades à venir seront demandés en temps opportun et les rapports de conformité à l’IN 43-101 seront préparés de façon successive. » L’infrastructure existante a conféré à LIM un avantage de taille. Les chemins d’accès, l’alimentation en eau et les installations d’égouts étaient déjà disponibles, ainsi que l’accès à un aéroport, à une voie ferrée et à un port d’expédition. Certaines améliorations ont été nécessaires. La première activité importante de construction a été le rétablissement d’une ligne secondaire de 4,5 km afin de relier le site de traitement à la ligne principale Schefferville–Sept-Îles. L’installation d’un nouveau rail à l’assiette des rails existante a été achevée en 2010; le nouveau rail a été utilisé pour acheminer sur le site les principales composantes de l’usine de traitement et des installations matérielles. Le rail sera aussi employé pour déplacer les chargements initiaux d’échantillons de minerai de fer et pour déplacer le minerai de fer une fois la mine en production. Afin de réduire les coûts d’immobilisation, LIM louera les wagons. LIM compte également améliorer les propriétés de son usine de traitement en vue d’accroître la capacité et de récupérer les fines de fer et le minerai de fer à plus faible teneur. Le minerai sera broyé et lavé au sein d’une installation d’enrichissement, avec une récupération prévue de l’ordre de 70 à 80 pour cent. Notons aussi qu’il s’agit d’une opération très propre puisqu’elle ne produira aucun résidu. L’installation d’enrichissement a une capacité nominale de traiter 10 000 tonnes de minerai par jour. Le traitement permettra d’accroître la teneur du produit de 57 pour cent à au moins 62 à 63 pour cent de fer, et produira à la fois du minerai grumeleux grossier et une matière de charge pour le frittage plus fine. LIM développera 20 gisements de minerai expédié sans traitement préalable — une première dans la région depuis près de trente ans. La propriété est constituée de nombreuses friches industrielles, lesquelles sont décapées, mais non exploitées. Les plans de développement et d’exploitation des gisements de LIM en quatre étapes se concentrent d’abord sur les gisements situés à proximité de l’infrastructure existante.

L’exploitation du gisement de James, situé à seulement 1 km de l’aire de traitement, et du gisement de Redmond est prévue en premier. Ces gisements sont accessibles par les chaussées en gravier existantes et présentent des ressources indiquées combinées de l’ordre de 11 millions de tonnes. Le gisement de Houston, situé à 18 kilomètres au sud-est de Schefferville, aussi relié par des chaussées en gravier, présente des ressources indiquées de 19,57 millions de tonnes. Les autres gisements de la propriété, offrant des ressources historiques combinées de l’ordre de 125 millions de tonnes, sont moins accessibles. Le minerai de fer sera expédié par voie ferrée au port de Sept-Îles, d’où il sera vraisemblablement acheminé à des aciéries en Europe ou en Asie. La mine comptera d’abord 60 employés aux stades initiaux; elle en embauchera 50 de plus une fois la production vraiment entamée. LIM s’est tournée vers la municipalité Innue pour la prise en charge de l’embauche et de la formation des effectifs à salaire horaire. Le seul problème qui se pose est les conditions rigoureuses de l’hiver, lesquelles restreindront l’horaire de traitement à un délai serré huit mois, soit d’avril à novembre.

Renaissance du nord La voie ferrée originale de l’IOC est encore en usage, bien que la partie nord de la voie n’ait plus le même propriétaire. Elle est maintenant gérée par Tshiuetin Rail Transportation (TSH), un consortium de communautés des Premières nations et la première voie ferrée au Canada appartenant à la collectivité autochtone. LIM est sur le point de terminer les négociations avec Tshiuetin Rail pour l’utilisation de la voie ferrée. En fait, il existe quatre communautés des Premières nations dans la région. LIM a négocié des AIP avec la population Innu du Labrador, la Nation Naskapi de Kawawachikamach, et deux nations innues du Québec, Matimekush-Lac John et Uashat et Mani-Utenam (Uashaunnuat). « Notre objectif et notre politique consistent à établir un partenariat avec ces communautés afin d’assurer leur apport au développement des projets et qu’elles en tirent le plus d’avantages possible », explique M. Kearney. « Ces communautés peuvent également apporter une valeur aux projets. Elles disposent d’un savoir traditionnel et elles savent comment travailler dans cette partie de la province. » Un renouveau sur le plan de l’exploitation minière du fer dans la région constitue aussi une bonne nouvelle pour la ville de Schefferville, qui a perdu deux tiers de sa population et a souffert d’une dépression économique lorsqu’IOC a quitté les lieux. John Kearney croit que Schefferville deviendra de nouveau le point d’accès au nord-est du Québec, ce qui lui permettra de jouer un rôle crucial dans le Plan Nord, le plan de développement économique du gouvernement du Québec pour la région du nord. ICM March / April 2011 | 45

commodity focus iron ore

ALL-PURPOSE TREASURE by Eavan MOORE

be more sought-after. It is especially tricky with hematite, says Ralph Holmes, theme leader, carbon steel materials, at the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia’s national science agency. “The process that we’ve been working on, which is still at the laboratory stage, is a heat treatment process at as low a temperature as possible, followed by a leaching process to leach out the phosphorus,” says Holmes.

Prices on the move

Courtesy of Rio Tinto

Iron ore prices have risen 500 per cent in the last decade, to approximately US$182 per tonne. Benjamin Cox, founder of research group Oreninc and CEO of Roche Bay PLC, traces this back to 2000, when a previously fragmented iron ore industry consolidated to three major producers — Vale, Rio Tinto and BHP Billiton — and gained the upper hand in negotiating the yearly price contracts that had been the industry norm since the 1960s.

Australia is the world leader in iron ore production; much of that comes from Rio Tinto’s operations in the Pilbara region of Western Australia.

umble and ubiquitous, iron has been mined for at least 3,000 years and has played a critical role in human cultural history, from weapons and vehicles to literature and medicine. Today, iron in the form of steel underpins and encases our daily life, while iron oxides give it detail in places as disparate as lipstick and ATM cards.

H

Pure raw talent World reserves of iron are estimated at 87 billion tonnes. Of the 1.6 billion tonnes mined yearly, almost 99 per cent goes into steelmaking via a blast furnace or similar vehicle. Most iron mines extract the ore as hematite and magnetite, which have different properties and different implications for sale and processing. The highest grades of hematite, 60 to 67 per cent iron, are known as direct shipping ore (DSO) because they can be fed directly into a blast furnace with minimal or no processing. Magnetite ore is typically lower grade and requires more energy to grind it finely, extracting the magnetite and then pelletizing it before smelting can occur. Miners also consider the fragility of the ore and the presence of deleterious elements in judging ore quality. A phosphorus concentration of more than .08 per cent can cause problems for steelmakers. As the availability of high-quality deposits tightens, techniques to remove phosphorus may 46 | CIM Magazine | Vol. 6, No. 2

As Chinese steel production ramped up in 2004, Cox says, its steel mill structure and hot demand for iron ore encouraged high-priced spot trading. Seeing the upward trend, BHP led Vale and Rio Tinto in switching to a quarterly pricing system indexed to Chinese spot prices. Smaller steel producers have taken issue with the switch, but analysts think the shorter term pricing appears to be here to stay.

China’s impact China’s growth continues to drive seaborne iron ore markets, as it accounts for two-thirds of global seaborne iron ore demand. State investments in housing, infrastructure and other projects to promote GDP growth have generated world-leading steel production of more than 600 million tonnes per year. China is a major iron producer in volume, but analysts doubt the long-term potential of its low-grade domestic iron ore deposits. Michael Zurowski, executive vice-president of Baffinland Iron Mines, explains that as worldwide demand for iron ore has doubled in the last ten years, China has gone from importing 70 million tonnes in 2000 to 3,620 million tonnes in 2010. In January 2011, it imported 69 million tonnes alone. “China’s facing a long-run logistical and mining challenge to maintain current levels of self-sufficiency,” says Peter Richardson, chief metals economist at Morgan Stanley Australia. He foresees lower cost overseas operations expanding to meet demand with supply, but not until 2013 or 2014 at the earliest. But the power of the Chinese market has generated some concern. Should there be a Chinese downturn, iron ore

commodity focus iron ore producers would feel the impact. A Fitch Ratings report suggested that in a hypothetical 2011 slowdown of Chinese GDP growth to 4.7 per cent, global commodity prices would fall by as much as 20 per cent and iron ore would be the commodity most affected.

WORLD PRODUCTION (millions of tonnes) 2009

2010 est.

Reserves Crude Iron ore content

Australia

394

420

24,000 15,000

Brazil

300

370

29,000 16,000

India

245

260

7,000

4,500

China*

880

900

23,000

7,200

Russia

92

100

25,000 14,000

Ukraine

66

72

30,000

9,000

South Africa

55

55

1,000

650

Canada

32

35

6,300

2,300

United States

27

49

6,900

2,100

Iran

33

33

2,500

1,400

Kazakhstan

22

22

8,300

3,300

Sweden

18

25

3,500

2,200

Expansive plans

Venezuela

15

16

4,000

2,400

In times of high cost and high demand, there is incentive all around to buy up iron reserves. Chinese and Indian steelmakers are among those responding to high prices and demand by securing raw material supplies overseas; for example, Shangdong Iron and Steel has decided to invest in a Brazilian iron ore project with an estimated yearly output of 25 million tonnes of concentrate. “At this point, buying your own iron ore is cheaper than buying market ore, and will be so for the foreseeable future,” Cox explains.

Mexico

12

12

700

400

Mauritania

10

11

1,100

700

Other countries

43

50

11,000

6,200

Some economists warn that growth sustained by government spending will have to end sooner than the country is ready. “Debt levels are already too high to support too many more years of misallocated investment,” says Michael Pettis, professor of finance at Peking University’s Guanghua School of Management. “I think the investment party will go on for at least another year and probably more, but growth rates will slow, and when they do, I am pretty sure they will slow much more sharply than anyone expects today.” However, the tendency among analysts is to predict at least another several years of strong seaborne iron ore market conditions. “Ultimately the sheer size of the demand uplift and the per capita impact of what’s happened will continue to sustain Chinese demand for steel late into the current decade,” Richardson says.

However, Zurowski points out that transfer pricing is carefully monitored by the nations of the world. Iron ore

World total (rounded)

2,240

2,400 180,000 87,000

* The production figures for China are based on crude ore, i.e. in 2009, China produced the equivalent 233 Mt of ore comparable in iron content to that of other countries, according to Raw Materials Data. All other figures represent usable ore. Source: U. S. Geological Survey

producers must sell their ores at world prices, but would reap the benefits of dividends from the mining operations.

Mr. Pierre Shoiry, President and CEO of GENIVAR is pleased to announce the appointment of Mr. Marz Kord, P. Eng., M. Sc., MBA to the position of Executive Vice President, Global Mining. Marz joined GENIVAR in 2007 and has more than 25 years of mining engineering, operations and project management experience, having led various mining projects across Canada and abroad. With his experience, he will leverage GENIVAR’s expertise in the mining industry in order to support the Company's long-term growth in this sector. GENIVAR is a leading Canadian engineering services firm, with more than 4,500 staff working in more than 85 offices in Canada and internationally, providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, procurement, construction management, and maintenance.

www.genivar.com

Marz Kord, P. Eng., M. Sc., MBA Executive Vice President, Global Mining GENIVAR Inc.

March / April 2011 | 47

commodity focus iron ore Iron Ore have recently taken ownership of Baffinland Iron Mines. Baffinland’s deposits are estimated at 990 million tonnes of DSO low in deleterious elements.

E11 0== 0=1 011

Mining in the Arctic does come with challenges; transport lines will need to be built on permafrost that thaws in the warm months. The cost of building the project is estimated at $4 billion. But the changing market for iron ore appears to have made that number workable.

@A0 @EA

@=1 @11

==HE =1

JEHK

EAHA

E=H=

EJH2

0A

0EH2

$5 # BC D% B( 66 ( 5 #$ F5 % .5 &% #G % !$ I$ 7( )6# . %I ' &" (,. I" $ ,& 6# "; (L ; .6 O# &5 % .6 "5& 6# N, ($ 8& M& %; N5 F+ % &5 N5& .6 % ' P" N%4 #8 .46 (5. (Q N %R 6 %; .5 )' 8" 5H% .6 %> &N #8 ", &N %

&%

?( >(

#%

<. 6

Source: Raw Materials Data, 2010

1

?#-%5&$%)6#*.6%("#$%#"&%-"#78,&"N%($%0112%/;53

Existing sites are being expanded; for example, Rio Tinto plans to expand its production at Pilbara operations to 333 million tonnes, while Swedish producer LKAB plans to boost its capacity from 27 million tonnes to between 35 and 40 million tonnes by 2015. Vale intends to boost its output by 50 per cent by 2015. A number of iron and steel companies have looked to West Africa for new sources of iron ore. For example, Rio Tinto is hoping to get a massive new project in Guinea into production in the next five years. The Simandou project would produce 95 million tonnes of fines annually at full production.

Canada’s situation With an estimated 2.3 billion tonnes of iron reserves and around 32 million tonnes shipped yearly, Canada has an active and growing iron ore industry. The iron-rich Labrador Trough has been mined since 1954; activity among exploration companies and major producers has picked up there in the last several years with acquisitions and expansions by Rio Tinto, Cliffs Natural Resources, Vale and steelmaker ArcelorMittal. The region has existing infrastructure and port access, making it fertile ground for new mines. New Millennium Capital Corp. plans to develop two large magnetite deposits and recently entered a joint venture with Indian-based Tata Steel on a DSO project near Schefferville, Quebec. Consolidated Thompson, now in the process of being bought by Cliffs Natural Resources, started off its Bloom Lake operation at eight million tonnes of iron ore concentrate per year and will increase production to 16 million tonnes in 2013. The last decade has seen renewed interest in iron deposits on the Canadian Shield in Nunavut. Even above the Arctic Circle, where long winters and permafrost pose challenges to construction and operation, ArcelorMittal and Nunavut 48 | CIM Magazine | Vol. 6, No. 2

Zurowski downplays the challenges of working in the Arctic. “If you think about Canada, we have been mining for 50 or 60 years in the Labrador Trough and at certain times of the year, it’s really exactly the same as mining in the Arctic,” he says. “The only difference from mining in the Arctic is that winter is a little bit longer. Shipping is the key for Arctic development.” Vic Pakalnis, Kinross professor in mining and sustainability at Queen’s University, remarks that climate change could melt the Arctic ice cap enough to make shipping ore easier. “It’ll create a great transportation route between Europe and Asia,” he says. “The Northwest passage, so to speak.” CIM

• MINES • MINERALS • METALS • MATERIALS Mining fOR sOciEty

M4S

The inner frontier Nanosized iron oxide particles have low human toxicity and high magnetization, which has led to their use as a contrast agent for magnetic resonance imaging. When injected into the body, the particles collect in specific tissues and alter the magnetic signals the tissues emit, thus generating a clearer image for MRI scanners. The promise of iron oxides as vehicles for nano-level techniques has inspired scientists to find new areas of application. For example, particles that generate heat when exposed to an alternating magnetic field could be used for rendering cells more sensitive to radiation therapy or chemotherapy, or for fusing tissues together. In the future, iron oxide nanoparticles could serve as a minimally invasive drug delivery vehicle, with the aid of MRI targeting. The uses that are currently under study range from repairing joint injuries to treating brain tumors.

Upcoming 2011 Seminars NEW — Certification in Ore Reserve Risk and Mine Planning Optimization (in collaboration with AusIMM) Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Dates: Week 1 – August 22-26, 2011; Week 2 – September 12-16, 2011; Week 3 – October 17-21, 2011; Week 4 – November 7-10, 2011 • City: Week 1 – Perth, Australia; Week 2-4 – Montreal, Canada • Info: www.mcgill.ca/conted/prodep/ore

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Learn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle; an optional half-day skills refresher workshop on Whittle may be available. Instructors: Cindy Tonkin, Gemcom, Australia, Roussos Dimitrakopoulos, McGill University, Canada, and Gerald Whittle, Whittle Consulting, Australia • Date: September 21-23, 2011 • City: Toronto

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most

cutoff grade estimation problems by developing techniques and graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods. Instructor: Jean-Michel Rendu, Executive Consultant, Snowden, Australia • Date: September 7-9, 2011 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution, how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI 43-101 and the SME Guide. Instructors: Marcelo Godoy, Golder Associates, Chile, Jean-Michel Rendu, Executive Consultant, Snowden, Australia, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 1216, 2011 • City: Montreal

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments, how to gain a practical understanding of economic/financial evaluation principles, and how to develop the skills necessary to apply these to support mineral project decisions. Instructor: Michel Bilodeau, McGill University, Canada • Date: October 24-27, 2011 • City: Montreal

COLUMNS

| MAC economic commentary

Mining: from “old economy” in the 1990s to “sexy and strategic” in the 2010s Paul Stothart It is unlikely that any sector in Canada has undergone a transition in recent decades comparable to that seen within the mining industry. The mining sector in the 1980s and 1990s was an afterthought. Mineral prices worldwide were in the dumps. Exploration and prospecting (in effect, a form of R&D aimed at finding tomorrow’s stream of commodities) were neglected and investments in them were piddling. Effort in attracting new talent to the industry was minimal and university mining programs closed. The sector was shunned by Canadian politicians and policymakers as “old school,” dark and dirty, and non-technological; economists and financiers held similar views. Even the leading companies at the time, such as Inco and Noranda, were viewed as complacent and staid despite being viewed as world leaders in many respects.

50 | CIM Magazine | Vol. 6, No. 2

The contrast with Canada’s shining beacons of the day was stark. The information technology sector was booming, as every desk in the nation became equipped with personal computers. Canada’s telecom industry invested billions in research, routinely paid millions in bonuses and equipped countries around the world with telecommunications systems. The biotechnology sector began marking its presence in pharmaceuticals, agriculture and other cross-cutting applications. The hydrogen economy and fuel cells were on the cusp of a much-hyped global impact and politicians raced each other to visit facilities and cut ribbons.

My, how times have changed Today, the mining industry is arguably the most strategic of any Canadian sector. Merger and acquisition

activity is measured in the tens of billions of dollars. The sector is the backbone of the nation’s stock exchanges, accounting for a large proportion of Toronto Stock Exchange (TSX) value through over 1,400 issuing companies. The sector’s linkage to the worldwide clean energy revolution is direct and fundamental – hybrid engines, long-life batteries, wind turbines, solar cells and lightweight materials are all dependent on the mining industry. Seemingly mundane products such as potash have become strategic for economic and political reasons and have attracted mammoth takeover interest. The mining industry, including oil sands mining, directs revenues to Canadian governments measured in the tens of billions that are in turn directed to support health care and education. Base metal export restraints in China have provoked sensitive World Trade Organization battles affecting Canada and other Western countries. Chinese policies in the area or rare earths have caused strategic concerns and responses at the highest levels of Western governments and defense technology companies. Finally, the mining industry in Canada has become the largest private employer of Aboriginal Canadians, a mutually beneficial relationship that should expand further – yet another point of high importance to governments. The main drivers of this transition have been numerous, although the emergence of the Chinese economy has been the most significant. China has had annual economic growth ranging from eight to 15 per cent every year since 1982, with the exception of 1989-90 when growth was four per cent. This virtually uninterrupted double-digit annual growth over three decades, predicated around building its infrastructure and becoming the

MAC economic commentary | COLUMNS “world’s factory,” has transformed China into the leading driver of global mineral prices. Where China consumed only five per cent of the world’s metals in the 1980s, it now consumes over 30 per cent. Mineral prices during the past ten years, the decade when Chinese growth had the most impact, have grown anywhere from five to 40 times faster than inflation, depending on the commodity. As leading stewards and producers of many minerals, Canadian companies and taxpayers have been the main beneficiaries of this price growth and wealth generation. Beyond the China story, it should also be stated that successive federal governments – Liberals and Conservatives – have built a strong and competitive investment environment in Canada. The flow-through share federal tax provisions and enhanced credits at the federal and provincial levels have served to strengthen Canada’s exploration investment. Partly linked to this,

the TSX has developed innovative and efficient techniques for raising capital to fund the industry’s initiatives here and abroad. The ability to deduct capital investment costs is also relatively attractive in Canada, as are overall corporate tax rates. While challenges remain in areas such as government support for industry innovation and infrastructure, the overall Canadian investment environment is attractive. The progressive nature of individual Canadian companies in managing and benefitting from good Aboriginal relations is also impressive. The technological skills of industry in building and operating mines in extreme weather conditions, and the growing number of potential mines in the North, meshes well with a Canadian priority on responsible northern economic development.

Finally, in the clean energy sphere, it is anticipated that global investment will reach some $450 billion per year by 2012 – with the associated demand for minerals and metals. All of these factors have enhanced the strategic importance of the Canadian mining industry. And it is unlikely that this “strategic and sexy” characteristic will diminish anytime soon. The staggering statistic that the world will produce and use more metals in the next 25 years than in all world history to date will see to this. CIM

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

Professional Master ’s Program in

MINERAL RESOURCE MANAGEMENT The Purpose

Enrolment & Format

The Queen’s Professional Master ’s Program in Min neral Resource Management is designed to provide a new supp ply of Mining professionals to help address the burgeoning global demands d of the mining industry y. Intake to the program is focused on candidates who have completed an undergraduate university deegree in either an engineering discipline or a relevant science specialization (e.g. Geology y, Chemistry y, Physics, etc.). Suitable caandidates who are admitted to the program will develop and u upgrade their mining specific technical knowledge and skill sets. The degree encompasses a broad spectrum of mining subjects oveer an intensive

Class size will be capped at 50 students to foster a collaborative atmosphere and ensure a world-class learning experience. The program will be delivered in a modular format, divided into 3 two-month terms with breaks for major holidays. Classes will be taught by subject matter experts from around the world in 4 or 8-week modules within the term. Topics include surface and underground mine design, geology & deposit modelling techniques, mineral economics, mineral development management, environmental management and others, all with an unwavering focus on thee safety & business concerns of thee

QUEEN’S Q UEEN’S U UNIVERSITY UNIVERSITY, Y,, KINGST KINGSTON, ON, ONT ONTARIO TARIO ARIO March / April 2011 | 51

COLUMNS

| supply side

Canada’s future well-being will depend heavily on exports

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

Jon Baird According to an article in the January 19, 2011, issue of Embassy – Canada’s Foreign Policy Newsweekly, Statistics Canada says that when the recession started, Canadian export earnings fell by 30 per cent in less than six months. This unparalleled collapse in exports came in the context of tumbling global trade flows. The bite of the recession in Canada was reduced by government “stimulus” spending and, fortunately, by consumer spending. However, the gushing stimulus taps will have to be turned off sooner rather than later if the deficit is to be reduced. As a result, the economy will again turn to export growth as a means to sustain its recovery. Keep in mind that exports account for 30 per cent of our GDP. It is estimated that the recession-led drop in exports accounted for a two per cent reduction in GDP growth. Further, while parts of our economy have recovered, exports are still well below pre-recession levels, although they are expected to rise this year. But, growing exports will be difficult. Our dollar is expected to remain strong and our biggest trading partner, the United States, with which our trade is highly integrated, continues to see slow growth. European countries have announced export stimulation programs. At mining trade shows, we will

52 | CIM Magazine | Vol. 6, No. 2

see the competitive effects of these Our sectoral and multi-sectoral national efforts, just as we do with the efforts such as the Team Canada miswell-organized Australian export drive. sions of a few years ago have In March 2010, the Obama disappeared. Federal government administration launched its National export assistance programs such as Export Initiative, a strategy aimed at Brand Canada and Program for Export doubling U.S. exports in five years. Market Development (PEMD) have The aim of the program is to help been shut down. American firms enter new markets, In the wake of a weak and misassist them with export financing guided foreign policy, including that and advocate for them abroad. The on the environment, respect for U.S. Embassy has ramped up its Canada in the world is diminishing to hosting of business delegations to the point that we were embarrassed in Canada. losing a UN Security Council seat to But what are we doing? The Portugal. If people do not respect us, Export Development Corporation will they buy from us? (EDC) is more active than ever in However, if Canada really wants to stimulating exports. Not only do expand and diversify markets, then they continue to provide essential export promotion abroad becomes very financial services and solutions for important. We need the federal governexporters, but they are widening ment to place a fresh emphasis on their range of informational prod- collective ways, as a nation and as ucts and marketing promotional industry sectors, through which we can activities. The Trade Commissioner better promote ourselves as a high-qualService, as always, is an excellent ity, reliable and competitive provider of ally, but is currently understaffed goods and services to the world. CIM and underfunded. While multilateral trade talks at the World Trade OrganizaJon Baird, managing director tion have stagnated, of CAMESE and the Canada is pursuing immediate past president of bilateral agreements PDAC, is interested in that will make Canacollective approaches to dian exporters more enhancing the Canadian competitive in selected brand in the world of mining. countries.

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eye on business | COLUMNS

Streamlining the permitting process Getting B.C. mines into operation quicker

Our identity as Canadians and British Columbians is tied to our forests, mountains, rivers, coastlines, farmland and abundance of natural resources. With increased economic activity on the land, more complex environmental pressures and more crossover between sectors, there was an urgent need for a more integrated approach to managing British Columbia’s land base. That is why the B.C. government created the Ministry of Natural Resource Operations – to deliver efficient, informed integrated land-management services to British Columbians. By bringing all of the decisionmaking activities on the land – from permitting to First Nations consultation to wildlife management – into one ministry, the province now has a 360 degree view of the land base and can make better decisions more efficiently. Integrated decision-making will provide opportunities and certainty for significant project development while ensuring strong environmental management under a single land manager. What does this mean for the mining industry? Mine projects require many authorizations and in the past, this meant going to multiple ministries. Now, instead of having nine different agencies and approximately 40 different statutes governing over 1,200 different types of authorizations issued by multiple natural resource ministries, there is one ministry to coordinate all of these activities. To streamline the permitting processes, the province is implementing a “one project, one process” approach across British Columbia. By bundling permits together, the ministry can consult and process the applications once rather than multiple times, as in the past. Resource experts from each region are working in a

Courtesy of B.C.’s provincial government

Ministry of Natural Resource Operations

The new streamlined permitting process will help B.C. mines enter into production faster.

tions involving the use of land in more integrated way, finding efficiencies and creating greater flexibility in British Columbia. B.C.’s provincial government has put how sector-based decisions are made. policies in place that have helped give Through the provincial Major Projthe minerals sector the resilience to ects offices and FrontCounter BC, withstand the economic downturn: applicants will have access to assis$322 million was spent in 2010 on mintance to fully understand information eral exploration in the province. This and application requirements for both represents the third-highest total in small and large mining projects. B.C.’ s history and a 109 per cent increase “One project, one process” means on the $154 million spent in 2009. not having to wait for one authorizaThe provincial government is comtion to be processed before applying for mitted to supporting mining in B.C. the next permit. It means that the govCreating the Ministry of Natural ernment will process the application Resource Operations is a significant efficiently and the client will not have step towards ensuring that decisions to help it through the system. It also around mining projects are made in an means the client will have many of efficient, consistent manner that baltheir authorizations issued as a packance the environment, economy and age, so they can put shovel to ground CIM natural resources. immediately after the Mines Act permit decision is made. The province continues to work with the federal government to harmonize The B.C. Ministry of Natural Resource Operations federal-provincial processes delivers integrated land-based management to in order to apply the “one ensure economic prosperity and environmental project, one process” sustainability in the province. approach to all authoriza-

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March / April 2011 | 53

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| standards

Electronic disclosure and regulatory compliance Craig Waldie As more ways of electronically disclosing information become available, mining companies need to remember that National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) is applicable to all public disclosure related to scientific and technical information. Electronic communication, including but not limited to websites, blogs and social media, should be considered an extension of a company’s formal corporate disclosure record, and companies need to ensure that information disseminated is compliant with disclosure requirements.

Website technical disclosure When securities regulators review the continuous disclosure of mining companies, one of the most significant areas of non-compliance is with website disclosure and associated corporate presentations, fact sheets and third-party information. In general, mining companies appear to be careful to make sure news releases, Management Discussion & Analysis and annual information forms are reviewed by a Qualified Person and checked for compliance with the requirements of NI 43-101. On the other hand, information contained on their website or other electronic disclosure does not appear to be reviewed with the same scrutiny. Some common deficiencies with companies’ website disclosure include: • Failing to name the Qualified Person. • Omitting the required cautionary language for historical estimates, exploration targets and preliminary assessments. • Reporting in situ or gross metal values. • Providing unsupported claims about the potential viability of a project or misrepresenting the project’s stage of development. • Adding Inferred Resources to other categories of Mineral Resources. 54 | CIM Magazine | Vol. 6, No. 2

• Stating quantity of contained metal without associated tonnes and grade. • Not stating the effective date and missing key assumptions, parameters and methods for Mineral Resource and Mineral Reserve estimates. • Linking third-party reports or providing hyperlinks to reports that are not compliant with NI 43-101. When missing or non-compliant technical disclosure on a company’s website is identified during a regulatory review, the company will likely be required to immediately revise and remove the information and issue a clarifying/retracting news release identifying the missing or non-compliant disclosure.

Posting third-party reports

radio, television and online news reports, about the company on its website. Instead of posting third-party reports on the company’s website, an alternative approach is to provide a complete list of all analysts who follow the company, together with contact information, so that investors may contact the third party directly. Beyond the common disclosure deficiencies identified above, another area of concern is the posting of newsletters or “tout-sheets.” There have been some cases where companies provide technical information to an apparent independent newsletter writer, often for a substantial fee, and the writer suggests the company is on the brink of discovery, under-promoted and overlooked by the markets. Since this disclosure is made on behalf of the company, it is part of the company’s public disclosure record and the company should be prepared to support and justify any promotional statements and scientific and technical disclosure in the newsletter. While websites, corporate presentations, blogs and social media provide a powerful way for companies to communicate with shareholders, it is important to remember that information provided must be in compliance with NI 43-101 disclosure requirements. CIM

When posting third-party reports on a company’s website, it is important to keep in mind that “if you disseminate it, you own it.” Companies should be careful about posting scientific and technical information prepared by third parties unless the information was prepared on behalf of the company or is general in nature and not specific to the company. If a company decides to distribute or post the information or report on its website, it then becomes part of its disclosure record and NI 43-101 applies. In addition, if a company chooses to post third-party reports, it The views expressed in this article are must make every effort to ensure that those of the author and do not necessarall significant articles concerning the ily represent the views of the OSC. company are included and that negative and positive articles are given similar prominence. Companies that Craig Waldie is a disclose positive news but senior geologist with withhold negative news could the Ontario Securities find their disclosure practices Commission. subject to scrutiny by regulators. Similar concerns also exist regarding the posting of media articles, including

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metals monitor | COLUMNS

Metals Economics Group world exploration trends Nonferrous exploration rebounds 45 per cent to second-highest total on record Jason Goulden nonferrous planned exploration expenditures, including uranium allocations, totalled more than $12.1 billion in 2010.

The overall trend Riding the wave of rising metals prices, worldwide nonferrous exploration allocations increased for six consecutive years to an all-time high of $13.2 billion in 2008 (excluding uranium). The mining industry’s boom years came to an abrupt halt in September 2008, however, as the world fell into the worst economic and financial downturn in decades. Widespread forecasts of a deep and protracted global recession painted a grim outlook for near-term global commodities demand, pushing most metals prices into steep decline and forcing companies to slash their 2009 exploration plans – some by choice and others to survive. The

resulting 42 per cent drop (about $5.5 billion) in worldwide nonferrous exploration budgets from the 2008 high was the largest year-onyear decline (in both dollar and percentage terms) since MEG began the CES series in 1989. After bottoming out in early 2009, the industry recovered much more quickly than most would have dared predict. Although the recovery remained fragile, the global economy improved markedly over the course of 2009 and into 2010. Metals prices improved steadily and were again well above their long-term trends through most of 2010. Responding to rising prices and more stable market conditions, most companies increased their exploration budgets in 2010, resulting in a 45 per cent increase ($3.5 billion) in our estimated exploration budget total for 2010, restoring almost two-thirds of 2009’s estimated $5.5 billion cut.

F

Nonferr Nonferrous ous Explor Exploration ation (US$ bil)

Nonferr Nonferrous ous Exploration Exploration Total Total Ur Uranium anium Explor Exploration ation Total* Total* Annual Indexed Metals Price $ 14 $14

3. 5 3.5

$ 12 $12

3.0

$ 10 $10

2. 5 2.5

$8 $8

2 .0 2.0

$6 $6

1.5 1.5

$4 $4

1.0 1.0

$2 $2

0. 5 0.5

$0 $0

Annual Indexed Metals Price (1993=1)

Responding to rising metals prices and more stable markets, most mining companies increased their exploration budgets in 2010. The result was a 45 per cent increase in estimated worldwide nonferrous metals exploration spending compared with 2009. Metals Economics Group’s (MEG) 21st edition of Corporate Exploration Strategies (CES) reports a 2010 exploration budget total of $11.2 billion. The industry restored almost twothirds of the $5.5 billion that was cut from exploration in 2009 in response to the global financial crisis. The speed and strength of the 2010 rebound were a welcome surprise to many, given the severity of the downturn and widespread forecasts of a deep and protracted recession. MEG’s 2010 exploration estimate is based on information collected from more than 3,200 mining and exploration companies worldwide, of which almost 2,100 had exploration budgets reported in the CES study. These companies (each budgeting at least $100,000) together budgeted $10.68 billion for nonferrous exploration, which we estimate covers about 95 per cent of worldwide commercially oriented nonferrous exploration budgets. Adding our estimates of budgets that we could not obtain, the 2010 worldwide exploration budget total reached more than $11.2 billion. Recent editions of the CES study also include uranium exploration budgets. The 2010 edition covers uranium budgets totalling almost $830 million. Including uranium, the number of companies covered by the study increased to more than 2,200, and the aggregate exploration budget (including the $10.68 billion nonferrous total above) increased to $11.5 billion. Including estimates for budgets MEG could not obtain, worldwide

0.0 93 94 94 95 95 96 96 97 98 98 99 99 00 0 0 01 02 02 03 03 04 04 05 05 06 06 07 08 08 09 09 10 93

Estimated worldwide exploration budget totals, 1993-2010 * 1993-2006 uranium totals are MEG estimates based on totals reported in the OECD 2007 Red Book; 2007-2010 uranium totals are based on figures compiled as part of the CES studies. March / April 2011 | 55

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| metals monitor

Increased global exploration spending Planned exploration spending increased in all regions of the world in 2010, and one – the Pacific/Southeast Asia region – exceeded its previous high, set in 2008. (The annual budget totals for Canada, Australia and the United States are typically much larger than for most other countries; as a result, MEG also treats these countries as regions in its CES studies.) Latin America drew the largest share of allocations, attracting 27 per cent of global spending in 2010, and has been the most popular exploration destination since 1994. Five countries – Mexico, Peru, Chile, Brazil and Argentina – traditionally attract the vast majority of exploration spending in Latin America, and 2010 was no

exception. Just 17 per cent of planned 2010 exploration in Latin America was targeted outside the borders of these five countries. Base metals exploration outpaced gold in Peru, Chile and Brazil, while gold led the way in Mexico and Argentina. Canada was also a big draw in 2010, with planned spending rebounding 73 per cent. This allowed Canada to regain the second spot, which was claimed by MEG’s “rest of world” region in 2009. The provinces of Ontario, Quebec, Saskatchewan and British Columbia attracted about two-thirds of total Canadian allocations. Planned expenditures for gold exploration in Canada increased dramatically to capture 54 per cent of total spending. After a year in second position, MEG’s “rest of world” region (covering

SYMPOSIUM 2011 • ROUYN-NORANDA SUR L’ENVIRONMENT ET LES MINES • MINES AND THE ENVIRONMENT RESERVE THE DATE IN YOUR AGENDA ROUYN-NORANDA, QUEBEC, CANADA — NOVEMBER 6 TO 9, 2011

The Université du Québec en Abitibi-Témiscamingue (UQAT) and the Canadian Institue of Mining, Metallurgy and Petroleum (CIM), invite you to Rouyn-Noranda, Québec, Canada, to attend the Symposium 2011 on Mines and the Environment, from November 6 to 9, 2011. This Symposium is the result of collaboration between the Industrial NSERC Polytechnique-UQAT in Environment and Mine Wastes Management, the Unité de recherche et de service en technologie minérale (URSTM), the Association minière du Québec (AMQ), the Mine Environment Neutral Drainage (MEND) Program, the ministère des Ressources naturelles et de la Faune du Québec (MRNF) and the industry. The objectives of the Symposium are to share recent knowledge and research developments and to discuss common practices to find solutions that reconcile profitability and environmental protection. Sunday, November 6: Short course Monday and Tuesday, November 7 and 8: Technical program addressing the following subjects: • Tailings • Backfill •Waste Rocks • Policies and Regulations • Contaminated •Site Restoration in Mining in Society Water •New Trends Tuesday, November 8: Plenary Wednesday, November 9: Site tours A trade show will also be held on November 7 and 8. Information will be available in the CIM Magazine. Also look on our web site for more details (accessible soon) at: www.cim.org/Symposium2011 For more information, please contact: Chantal Murphy (CIM): 1-800-667-1246

Chaire CRSNG Polytechnique - UQAT en environnement et gestion des rejets miniers

56 | CIM Magazine | Vol. 6, No. 2

countries in Europe, mainland Asia and the Middle East) fell back to third. China outpaced Russia for the first time as the top exploration destination in this region, and together the two countries accounted for half the region’s 2010 total. Gold was the leading target in the region, attracting 49 per cent of recorded budgets. Africa continued to attract more exploration spending than Australia, accounting for 13 per cent of 2010’s global budgets compared with Australia’s 12 per cent. Planned spending in Africa was heavily weighted towards the Democratic Republic of Congo, South Africa, Zambia and Burkina Faso, which together accounted for almost half the region’s total. In Australia, three states – Western Australia, Queensland and New South Wales – together accounted for three-quarters of the region’s total allocations. Gold was the top exploration target in both Africa and Australia. The United States remains firmly entrenched in sixth place. Nevertheless, it boasts the largest year-on-year increase in planned exploration spending in 2010, rising 75 per cent from 2009 and increasing its share of worldwide spending to eight per cent from 6.5 per cent. Gold allocations in Nevada and Alaska account for a large portion of the total; however, base metals exploration in Arizona and Minnesota also contributed to the increased activity. Planned exploration in the Pacific/Southeast Asia region also increased substantially in 2010. While its share of worldwide exploration increased in recent years to almost seven per cent in 2010, it remains well below the 10 to 12 per cent range reached in the mid-to-late-1990s. The traditional big three destinations – Indonesia, Papua New Guinea and the Philippines – attracted 75 per cent of the region’s total allocations in 2010. In most years, the bulk of global exploration spending is carried out by Canada- and Australia-based companies; however, resource-hungry China is also becoming an increasingly important investor in mineral exploration

metals monitor | COLUMNS worldwide. In 2010, Chinese companies accounted for about 11 per cent of the global exploration total, with about 31 per cent of their budgets allocated outside China’s borders – primarily targeting Canada, Africa and Pacific/ Southeast Asia regions.

Gold attracts record exploration Following steep declines in exploration allocations in 2009, budgets for all targets covered by the CES study resumed their upward trend in 2010, with the exception of diamonds, which dropped nine per cent year on year. In 2010, global economic fundamentals kept the spotlight on gold, and historically high prices prompted gold explorers to increase their aggregate budget by $1.9 billion. This increase lifted planned spending on the yellow metal to $5.4 billion and its share of total budgets to 51 per cent – the first time since 1999 that gold accounted for more than half of total planned spending and the highest dollar total in the history of the CES. Ten countries – Canada, Australia, United States, Mexico, Russia, China, Peru, Colombia, Brazil and Chile – accounted for two-thirds of the 2010 gold exploration budget total. Overall, base metals exploration budgets (aggregating copper, nickel and zinc) also bounced back in 2010, but did not exceed their 2008 peak of more than $5 billion. As a percentage of global exploration activity, base metals accounted for 33 per cent – the second consecutive decline since a high of almost 41 per cent of global exploration in 2008. Latin America consistently accounts for the largest share of worldwide base metals budgets, topping 33 per cent in 2010 – the region’s largest share since 2003. The nine per cent decline in diamond allocations in 2010 represented just three per cent of worldwide

exploration, a far cry from almost 15 per cent in 2003 and the lowest share recorded in the 21-year history of the CES. Canada, Russia and southern African countries continued to be the primary destinations for diamond exploration. Compared with 2009, PGM exploration increased a relatively minor 13 per cent in 2010. As a result, PGM’s share of worldwide spending slipped below two per cent, continuing the steady erosion of its share of global spending since reaching six per cent in 2002 and 2003. Almost half of PGM allocations were destined for Africa, with Canada receiving about a third. Budgets for the “other targets” group of commodities almost doubled from 2009, but fell just shy of their 2008 peak of $1.3 billion. Silver accounted for more than a third of the “other targets” total; however, most silver exploration occurs in conjunction with the search for gold or base metals polymetallic deposits. Potash and phosphates – by far the most popular targets among the remaining ”other targets” – attracted more than 20 per cent of the group’s total. As market interest in lithium and rare earth elements continued to increase in 2010, exploration budgets for these commodities jumped to almost four times the amount spent in 2009. Nevertheless, they remain a relatively small part of the industry’s overall exploration effort, accounting for about 13 per cent of the 2010 “other targets” total.

Emphasis on late-stage exploration continues

most year on year (up 52 per cent from 2009) to account for about 42 per cent of the worldwide total, while the rise in grassroots budgets was on par with the worldwide increase, keeping its share of the overall total flat at just under 33 per cent. Mine site budgets increased more modestly at 35 per cent year on year, dropping its share of the global total to 25 per cent. Late-stage spending outweighed grassroots spending for the past six years. Grassroots’ percentage of budgets has generally declined since the mid-1990s, and dropped an average of 2.5 per cent annually from a recent high of 52 per cent in 2001 to a record low of about 33 per cent in 2009 and 2010. This decline correlates with the upward trend in late-stage budgets, as companies spend more on late-stage projects to move them towards production or make them attractive for acquisition in the metals price environment of the past six years. Similarly, mine sites’ share of overall spending increased in recent years as producers view it as a more economical and less risky means of replacing and adding to reserves. The stabilization in grassroots’ overall percentage in 2010 at least temporarily halted the erosion of its share of the worldwide total; however, the proportional shift away from grassroots spending over the past cycle could put pressure on future production. With companies of all types focusing less on grassroots work, there is some concern that many companies, and perhaps the industry in general, may be sacrificing long-term project pipelines in favour of short-term growth. CIM

Planned spending for all stages of exploration increased in 2010, and the recent trend of increased emphasis on late-stage exploration continued. Late-stage Jason Goulden serves as budgets increased the Metals Economics Group’s vice-president, research, authoring and co-authoring Notes: All figures are reported in U.S. dollars; All historical exploration figures throughout this several of MEG’s distinctive report represent dollars of the day and have not been inflation adjusted; Nonferrous exploanalytical reports and ration refers to expenditures related to precious and base metals, diamonds, uranium and leading information services. some industrial minerals; it specifically excludes iron ore, aluminum, coal, and oil and gas.

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March / April 2011 | 57

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| HR outlook

Recognizing and retaining talent Certification becomes a reality for mining workers in industry pilot

Over the past six years, MiHR has been coordinating a collaborative effort by mining sector employers, employees, educators and other stakeholders to develop a program that will recognize the knowledge, skills and competencies of its mine operations maintenance workers. Unlike the trades, skilled workers in these occupations have never before been awarded an industryrecognized credential that supports mobility and retention within the mining workforce; the Canadian Mining Credentials Program (CMCP) has been developed to address this challenge. During 2010, seven mine Dawn Hamilton taking a chemical readout on rock samples in the chemical lab for the Iron Ore Company of Canada. Minerals sites across Canada partici- processing operator is one of four occupations for which National Occupational Standards have been developed through the CMCP. pated in the Certification Pilot Program: • Brunswick Mine (Xstrata Zinc), workers, and leading up to a national areas where they have already demonBathurst, New Brunswick event, which will take place this comstrated competency in the workplace. • Totten Mine (Vale), Sudbury, ing May at the CIM Conference & Furthermore, employees with skill Ontario, and Trout Lake Mine Exhibition 2011 in Montreal. sets that are not recognized by their (HudBay Minerals), Manitoba Of the approximately 100,000 workindustry can become frustrated and (partner: Cementation) ers needed by the end of this decade to may seek opportunities elsewhere. A • Diavik Diamond Mine (Rio Tinto), support growth in the industry and to recent MiHR survey of mining indusNorthwest Territories replace retiring workers, approximately try employers revealed that turnover • Greenhills Operation (Teck Coal), 20 per cent will be required in in these occupations is almost twice skilled occupations that have, up until as high as other mining sector jobs. British Columbia now, lacked a national recognition • Kemess South Mine (Northgate “As a national representative, I saw system (including production miners, that the expertise and knowledge that Minerals Corp.), British Columbia development miners, heavy equipment miners had accumulated wasn’t • Highland Valley Copper (Teck operators and mill operators). Resources), British Columbia recognized,” says Walter Manning, The certification program will be national representative, communicaThese pilot sites will be conducting an essential component in increasing tions, Energy and Paper Workers. “I 10 to 20 evaluations each and it is and retaining the valuable skills certainly heard from the shop floor anticipated that a group of between 60 required to keep the mining industry that workers wanted recognition for and 100 miners will become the first sustainable. Without a formal creden- their skills, and the credentials pronationally certified Underground Mintialing framework for these jobs, gram will do that.” ers, Surface Miners and Minerals employers may struggle to evaluate Processing Operators. A pan-Canadian The vision of the CMCP is to the qualifications of experienced can- increase recognition of skills and comrollout will commence in mid-2011, didates and may end up wasting time petencies, support worker mobility and beginning with a series of local events and resources retraining new hires in create consistent, quality training for the to recognize the first group of certified 58 | CIM Magazine | Vol. 6, No. 2

Courtesy of MiHR

Barbara Kirby

HR outlook | COLUMNS mining and minerals exploration industry in Canada. The CMCP has three components: national occupational standards, certification and accreditation of training. The strategy for the program is to build the systems for certification and training accreditation based on industry-defined standards. To date, under the guidance of industry development committees, MiHR has developed four National Occupational Standards: Underground Hard Rock Miner, Surface Miner, Minerals Processing Operator and Diamond Driller. The National Occupational Standards and related essential skills profiles can also provide the basis for the development of new training pro-

establishment of recognized National grams. For example, the Assembly of Occupation Standards and a certificaFirst Nations and MiHR are develoption program will have a significant and ing “Mining Essentials: A Work long-lasting effect on our sector. CIM Readiness Training Program for Aboriginal Peoples.” This pre-employment mining training program is a potential For more information, please email entry point to MiHR’s CMCP, with a certification@mihr.ca or visit www. miningcredentials.ca. curriculum based on industry standards. It can take anywhere from two to five years to train a skilled worker Barbara Kirby is MiHR’s senior for the mining industry. director, workforce development. Now is not the time to She is responsible for overseeing the take our foot off the gas Council’s skills, learning and mobility when it comes to investinitiatives, including the Canadian ment in workforce Mining Credentials program. development. The

author

training created by industry, for industry

You are invited to meet Canada’s first nationally certified underground miners, surface miners and mineral processing operators. Join the Mining Industry Human Resources Council (MiHR) in recognizing the achievements of the first group of workers certified through the Canadian Mining Credentials Program (CMCP) at the CIM Conference & Exhibition in Montreal in May. Representatives and certified workers from participating mine sites will be on hand to commemorate this historic event for Canada’s mining industry. Do not miss this opportunity to meet some of Canada’s first nationally certified mining workers. Learn more about the Canadian Mining Credentials Program and how certification can bolster your company’s recruitment initiatives and motivate your employees to excel. The CMCP is the cornerstone of the mining industry’s efforts to recognize the skills, knowledge and experience of mining workers.

Tuesday, May 24 at 6:30 pm

CIM Conference & Exhibition 2011 • Montreal, Quebec Location details to be announced For more information, email certification@mihr.ca Funded in part by the Government of Canada's Sector Council Program. Financé en partie par le Gouvernement du Canada par l’entremise du Programme des conseils sectoriels.

March / April 2011 | 59

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| innovation

Stepping up research efforts Initiatives propelling innovation forward Tom Hynes Building relationships with key industry stakeholders will be instrumental to CMIC in its efforts towards securing Canada’s role as a leader in research and innovation. One such relationship, with the Oil Sands Tailings Consortium, will extend CMIC’s reach even further and has the potential of helping with the advancement of its own Tailings Management Initiative.

Collaboration on R&D efforts Canadian Natural Resources, Imperial Oil, Shell Canada, Suncor Energy, Syncrude Canada, Teck Resources and Total E&P Canada recently announced that they will partner in a unified effort to advance tailings management. This collaboration reflects the companies’

commitment towards operating in a socially and environmentally responsible manner and responds to the Alberta government’s policy to affect the timely reclamation of tailings. The consortium’s efforts will foster innovation and collaboration in R&D relating to tailings. “The issue is not whether we can manage tailings; the issue is whether we can do it better,” says John Broadhurst, vice-president of Shell’s Oil Sands Development. “We believe that this relationship is a key step towards tailings solutions that will allow us to accelerate the pace of reclamation using the most advanced environmental measures.” Each company has pledged to share its existing tailings research and technology and to remove any barriers that would hinder collaborating

NOW HIRING CMIC Exploration Program Director CMIC IS SEEKING A PROGRAM DIRECTOR to manage the research program of its Exploration Innovation Consortium and to assist, as required, with other research initiatives. The ideal candidate will have experience in managing exploration research in Canada and a demonstrated success record of delivery of research programs/projects, preferably including collaborative projects. He/she will: • have an advanced degree in geological or mining-related sciences, • be a team player, an excellent communicator and a selfstarter, and • possess excellent interpersonal skills. Contact Michel Plouffe at info@cmic-ccim.org for further information.

60 | CIM Magazine | Vol. 6, No. 2

on future R&D efforts. The joining of forces and sharing of scientific expertise by these industry giants has the potential to produce greater results more quickly. The companies have agreed to the following core principles to guide the actions of the research collaboration: • Make tailings technical information more broadly available to industry members, academia, regulators and others interested in collaborating on tailings solutions. • Collaborate on tailings-related R&D and technology with companies outside the consortium as well as with research agencies. • Eliminate monetary and intellectual property barriers to the use of knowledge and methods related to tailings technology and R&D. • Work to develop an appropriate framework whereby tailings information is organized, verified through peer review and kept current. “This is a tremendously positive step for research into improved technology for managing tailings,” says David Lynch, Dean of the Faculty of Engineering at the University of Alberta. “These companies are to be congratulated for their foresight and willingness to work together in this way.” Existing tailings research and development will serve as the knowledge base for the collaboration, and research objectives are planned to be finalized early this year. Further information can be obtained through Sean Beardow at sean.beardow@cohnwolfe.ca.

Other research initiatives moving ahead CMIC is focusing on six major initiatives, all of which are in various stages of development. These large, multi-year, multi-partner programs centre on exploration, mining (mineral

innovation | COLUMNS

SPECIALIZING IN

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extraction), mineral processing, green mining (environment), tailings and energy. Each initiative is driven by an industry champion and committee tasked with keeping a strong focus on the need for innovative technology to support a profitable, safe and environmentally responsible industry. This strong support is critical to the success of the CMIC initiatives. CMIC’s Exploration Innovation Consortium has recently defined its major research themes. For deep, mature camps, the consortium will address multidisciplinary exploration footprints (deposit); “deep mapping� techniques to unravel deep 3D geology in mature camps; and the development of robust and reliable down-hole data collection that is delivered in real time. For remote and covered deposits, it will focus on multidisciplinary terrain footprints (regional); mapping through cover,

data integration and cover mapping; detection thresholds of key characteristics (data density); and secondary dispersion mechanisms, tools and techniques. The mining and processing initiatives have recently identified champions who are now in the process of building their respective committees for their programs: • Mining Initiatives: Alex Henderson, general manager of mining and milling technology, Vale • Processing Initiative: Rob Henderson, vice-president of technology, Kinross Not quite as advanced as the others, the Energy Efficiency Initiative is in the process of discussing a potential champion with one of our member companies, and the

Environmental Management and Tailings Management initiatives have yet to identify champions, but they are actively pursuing potential candidates for these positions. CMIC anticipates that all of its initiative committees will be in place and active within the next several months and working to define the long-term R&D needs of the industry. CIM For further information on CMIC or its initiatives, contact Michel Plouffe at info@cmic-ccim.org.

author Tom Hynes has worked in the uranium and base metals industries, and has been a provincial regulator and a federal government research manager. He is the executive director of the Canada Mining Innovation Council.

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March / April 2011 | 61

COLUMNS

| safety

When the dust settles, the trauma begins Handling post-incident stress at the mine site Heather Ednie As the recent cave-in at Chile’s San José Mine so starkly reminded us, even in the era of safety first, major mining accidents can still occur. Apart from the injuries and destruction, there is a huge psychological impact on both the workers involved and the rescue and clean-up crews. And, some of the worst psychological trauma kicks in later, when the incident is over. As a result, mining companies are now putting more energy and resources into dealing with post-traumatic stress disorder (PTSD) resulting from on-site accidents should they occur, with dedicated staff and programs to help get workers and their families through the ordeal.

During a traumatic event, the human body is programmed to get through the challenge and to safety – the fight or flight response. But in the days and weeks that follow, as the body calms down and life begins to return to normal, acute stress tends to strike. There is no way of knowing who will be affected, or how strongly, or how long. “Most cases do not [develop PTSD], although 15 to 39 per cent of people will need some kind of care,” says psychologist Anna Baranowsky, CEO of the Traumatology Institute (Canada) located in Toronto. So what determines how strongly a person will be affected by a traumatic event? “It can depend on the severity and duration of the event,” explains Baranowsky. “Was it ‘human’ in design – for example, a personal attack – or was it ‘natural’, meaning a true accident?” Reactions to witnessing someone else’s trauma – known as secondary traumatic stress, or compassion fatigue – are also very real and also frequently require treatment. “It can happen especially when people have to go into the same mine the next day, where the traumatic event occurred,” Bara62 | CIM Magazine | Vol. 6, No. 2

Courtesy of Barrick Gold Corporation

The aftermath

During a training session, emergency rescue team members help a person injured in a vehicle accident, treating the injuries to stabilize the person before extricating from vehicle.

nowsky says. “The feelings will be combined with a sense of loss as well.” The three main diagnosis criteria for PTSD are: • Physiological arousal: physical symptoms such as shortness of breath, rapid heart rate, startling easily. • Intrusion: recurrent thoughts, nightmares and overwhelming reactions to reminders, such as going back on site. • Avoidance: withdrawal from anything or anybody that reminds a person of the event. These symptoms are shared between primary and secondary PTSD and must last at least a month or longer and impact on the individual’s work or life to be considered PTSD.

The action plan Most companies now have some form of Employee Assistance Program (EAP) to help workers after an incident. “At Barrick, part of our policy is to maintain a high degree of emergency preparedness,” says Craig Ross, the company’s vice-president of health and risk. “We have a detailed emergency response crisis management program, which includes counselling for the rescue team, workers and families.” “We automatically assume everyone involved will be traumatized, one way or another,” Ross continues. “So, upon an event occurrence, we immediately engage our human resources department, who engages the EAP and brings

safety | COLUMNS put to the test. Last fall, a female truck operator named Karla Dávila was fatally injured while operating a haul truck at a Goldcorp mine in Mexico. Karla’s death had a huge impact throughout the company. She was a single parent of a threeyear-old and the primary financial provider for her extended family. “We had mines in South Dakota taking collections and making great efforts to raise money for her child and family on their own; they were not asked to do anything by the corporation,” Farrow says. “When Karla’s mother accepted those donations and gifts, it helped her to see how much Karla was cared for across the company.” Courtesy of Goldcorp Corporation

in necessary experts. Those experts are called to site immediately – we ourselves lack the knowledge to provide such service.” Counsellors are kept available as necessary – on site or in the local communities, for weeks even – to ensure a flexible, accessible approach for everyone to seek treatment and help as needed. Goldcorp’s Musselwhite First Nations mine rescue team members “Typically, we’d start with a group session, then “I was an emergency responder and break off for individual help as needs arise,” says Ross. “During such a time, went through that training,” Ross says. we will ensure the entire workforce is “When you’re dealing with critical aware that counselling is available on stress, it’s not so evident during an incisite for anyone needing it. As well, we’ll dent. It’s after, when everything shuts make it available in the communities or down, that it hits you and then you at home – whatever the individual is need to watch each other.” Goldcorp is planning on taking most comfortable with.” Like Barrick, Goldcorp relies on its PTSD awareness a step further, by EAP to provide professional assistance including it in its Supervisor Leaderfor employees and their families in ship Development Program. “We want times of traumatic incidents. As well, at all our supervisors and managers to understand [PTSD],” says Farrow. “If fly-in/fly-out operations, on-site nursing staff has some experience and they see an employee looking unentraining dealing with trauma, and is gaged, they are to follow up.” equipped with referrals to seek immeKeeping it real diate help for any in need. Looking at on-site accidents in relaOn site, a process is set up to monitor employees and watch for signs of critical tion to their impact on family and coworkers has been a major driver stress or post-traumatic stress. “We do a behind improving PTSD care at Goldroutine check-in with all the people, corp. “Our people and their families three to six months post-situation,” says are known to the managers,” says FarPaul Farrow, Goldcorp’s vice-president row. “We rely on those relationships; of safety and health. “As well, everyone our employees know we care. And that undergoes the annual health screens. These are confidential, but provide makes them more willing to come foropportunity to observe and potentially ward when incidents arise.” Employees are encouraged to look link troubles to an incident in the past.” out for one another; peer support can Knowledge is power be critical after a traumatic event when The role of the EAP and general family and others unrelated to the site stress management are part of the regmay not understand the extent of their ular safety training at Barrick. But if an trauma. “We rely heavily on peer supincident occurs, workers are immediport; it has a ripple effect,” Farrow ately gathered and briefed on what to says. “With the caring activity at work look out for in terms of PTSD. First obvious, employees know they can go responders and emergency rescue to a colleague or their supervisor to teams are trained to recognize the signs talk as needed.” Goldcorp’s corporate culture of carof trauma – in others and in themselves ing has, unfortunately, been recently – as part of their standard training.

Think ahead Smart companies will be equipped to deal with the effects of a severe trauma, even as they pull out all the stops to avoid having one happen. Baranowsky recommends a few simple steps to ensure companies will be in a position to provide the best support for their workforce at such times: • Have experts in post-traumatic response available for staff and their families. • Have a program in place to educate workers about PTSD symptoms. • Be prepared to offer a variety of treatments: individual and group counselling, peer-to-peer support, etc. • Ensure the potential psychological impacts of such an event are well understood, and that all managers are able to identify those individuals who may need extra care. Mining companies have to be flexible and willing to do what it takes to provide opportunities for treatment for workers and their families in such times. “We must listen to the counsellors,” Ross adds. “The right answer is, ‘we’re not experts, we’re miners’. In an emergency, there are a few calls you make and the EAP is one of the first ones.” CIM March / April 2011 | 63

COLUMNS | aboriginal perspectives

Servicing the North Aboriginal-owned transport companies fulfil mining industry needs

Access to reliable transportation can make or break a mining project. The Jericho diamond mine in Nunavut, for example, got off to an inauspicious start in 2006 when a melting winter road choked shipments of fuel, explosives and other necessities. Despite several attempts at revival, the mine never really recovered from the opening blow and closed before its second birthday. Whether transportation partnerships with First Nations groups in the remote territory would have made a difference to Jericho’s fate is debatable, but the advantage of having partners familiar with the lay of the land is not. Because the majority of Canadian mines are located in the North, it is logi- NRT driver Troy Webb hauling crushed lime from Saskatoon to Areva Resources Canada’s McClean Lake Mine for use in the milling process. cal for exploration and mining companies to partner with transportation companies run by Transportation: a history of commercial never have gotten off the ground 25 northerners who, in most cases, are enterprise; a strong Band council that years ago if the Saskatchewan governAboriginal. fosters entrepreneurship; and the ment had not made support of opportunity to service the mining northern business a condition of givProximity = opportunity industry, because of proximity and/or ing the go-ahead to the Key Lake There are clusters within Canada help from provincial or federal uranium mine. where Aboriginal communities have a initiatives. Another well-established transport strong presence in transportation for “Saskatchewan Indians have been company with Aboriginal ownership is the mining industry, for example, in organized politically since the 1930s, Kanata-based First Air. In 1978, specentres near the uranium mines in and you tend to find that with a strong cial legislation in Quebec gave First northern Saskatchewan, the diamond political organization there is a strong Air’s owner, Makivik Corporation, the mines and exploration camps of the entrepreneurial spirit,” says McIlmoyl. mandate to administer the compensaNorthwest Territories and Nunavut, He adds that the Cree, the largest First tion funds resulting from the first and the gold, base metal and iron ore Nations group in Canada, is particucomprehensive Inuit land claim in mines of northern Quebec and larly endowed with this spirit because Canada, the James Bay Northern QueLabrador. And there are opportunities of their history of being heavily bec Land Claim Agreement. elsewhere. involved in the fur trade. The Lac Inuit-owned Makivik bought First Success comes down to three main La Ronge band is the largest Cree band Air in 1990 and since then, the airline factors, says Dave McIlmoyl, vice-presin Canada and the largest partner in has grown to become the third largest ident of Saskatoon-based Northern NRT, which transports supplies to gold in Canada with more than 1,000 Resource Trucking (NRT), a joint venand uranium mines in northern employees, almost half of whom live ture between 12 First Nations and Saskatchewan using a fleet of 80 and work in the North. First Air’s HerMétis groups and Calgary-based Trimac trucks. McIlmoyl says NRT would cules aircraft are dedicated to 64 | CIM Magazine | Vol. 6, No. 2

Credit: Dale Peacock

Virginia Heffernan

Courtesy of First Air

aboriginal perspectives | COLUMNS

First Air serving Snap Lake Mine

supplying the mining industry in Nunavut and the Northwest Territories, from the gold exploration camps at George Lake and High Lake to the Snap Lake diamond mine and the Meadowbank gold mine. This year, the airline is expanding its service and Aboriginal partnerships to serve the mining and mineral exploration industry in two of Nunavut’s three regions where there are several development and advanced-stage exploration projects in progress. In the Kivalliq Region, First Air has teamed up with Sakku Investments Corporation to launch Sakku First Aviation Ltd., a joint venture airline headquartered in Rankin Inlet. Sakku is the business arm of the Kivalliq Inuit Association. The region hosts Agnico-Eagle’s recently opened Meadowbank gold mine and its advanced-stage Meliadine gold project, as well as Areva Resources’ Kiggavik uranium project. In the Qikiqtani Region, the airline has an agreement with Qikiqtaaluk Corporation (QC), an Inuit-owned birthright development corporation, to start a new airline to be named Qikiqtani First Aviation Ltd. The region hosts Baffinland Iron Mines’ iron ore deposit and Peregrine Diamonds’ Chidliak diamond exploration property.

Another key mode of transport for bulk mining projects such as Mary River is shipping by sea. Last year, QC teamed up with Quebec-based Ocean Group to form Tulaktarvik, an Inuitowned company that provides ice-class harbour tugs, barges for cargo and related services for Nunavut communities and the mining industry. There are also opportunities opening up in the iron-rich region of northern Quebec and Labrador, where several advanced-stage exploration projects are underway. In 2005, the Innu Nation of Matimekush-Lac John, the Innu Takuaikan Uashat mak Mani-Utenam and the Naskapi Nation of Kawawachikamach formed Tshiuetin Rail Transportation (TSH) to become Canada’s first Aboriginal-owned railway. Seeing an opportunity for social and economic development in the impoverished area, TSH purchased a 217-kilometre stretch of track running from Schefferville, Quebec, to Emeril Junction, Labrador, from the Iron Ore Company of Canada (IOC), the country’s largest iron ore producer. Emeril Junction is close to IOC’s mine, concentrator and pelletizing plant in Labrador City, where phase 2 of an expansion program is underway. TSH provides all passenger service to and from the area.

Northern development “The biggest challenge of servicing the mining industry is the cyclical nature of commodity prices, as mines are threatened with closure during a down cycle,” says McIlmoyl. He remembers a lean period not so long ago when the uranium price dipped below $20 per lb U3O8 and stayed there for several years. NRT scraped through, but with costs of $650,000 for a truck and trailer, McIlmoyl is grateful to be back in an environment of rising uranium and gold prices. Future opportunities will depend on federal, provincial and/or territorial government support for infrastructure building – whether that be ports, roads, railways or airports – that allow Aboriginal transportation enterprises to blossom. For example, Nunavut is currently proposing a $1.2 billion, 1,200-kilometre road linking Manitoba to Kivalliq. “We must now consider infrastructure not only based on community needs, but on the development of industry,” said Shawn Maley of Nunavut Airports, Economic Development and Transportation, in a presentation at the Kivalliq Trade Show last November. “This includes marine roads to access resources and improvements at our airports.” CIM March / April 2011 | 65

COLUMNS

| parlons en

La demande à la hausse du lithium fera prospérer la région de l’Abitibi Charles Taschereau

Un peu d’histoire De 1955 à 1965, la mine Québec Lithium, située dans la municipalité de Lacorne en Abitibi, au Québec, était parmi les principaux fournisseurs de lithium au monde. Une importante usine métallurgique située sur le site produisait alors du carbonate de lithium, de l’hydroxyde de lithium, du chlorure de lithium et du concentré de spodumène. La région comptait alors également des mines de zinc, de molybdène, d’argent, de bismuth, etc. La gare de Barraute était un important point de transit de minerai et le domaine minier était l’un des moteurs importants de l’économie régionale. Dans les décennies qui ont suivi, avec l’épuisement des réserves et les 66 | CIM Magazine | Vol. 6, No. 2

Vue aérienne du site

Courtoisie de Québec Lithium inc.

Québec Lithium inc. prévoit commencer les travaux de construction de sa mine au printemps 2011, visant une mise en production de l’usine à la fin de 2012, et l’atteinte de la pleine production au cours de 2013. La mine produira alors 20 000 t/an de carbonate de lithium, soit environ 12 pour cent de la production mondiale; Québec Lithium en sera alors le principal producteur nord-américain. Le projet Québec Lithium, une filiale de Canada Lithium Corp., se situe à 30 kilomètres au sud d’Amos et à 60 kilomètres au nord de Val-d’Or. La construction de la mine représentera un investissement de plus de 200 millions de dollars, dépensé en majeure partie dans la région, en main-d’œuvre et auprès d’entrepreneurs régionaux. L’exploitation de la mine injectera environ 60 millions de dollars par an dans l’économie régionale, dont plus de 25 pour cent en salaires. La mine emploiera près de 200 employés et créera en plus des emplois indirects et induits.

fluctuations des prix des métaux, ces mines ont fermé, elles ont été remplacées par de nouvelles mines dans d’autres régions ou encore ailleurs dans le monde. Quoique de nombreux habitants de Lacorne travaillent encore dans le domaine minier, plus aucune mine n’était en exploitation dans la municipalité depuis de nombreuses années. Le site de Québec Lithium a donc dû être totalement restauré au cours des années 1990.

La renaissance du lithium La demande pour le lithium est maintenant de nouveau forte grâce au développement de batteries et de piles rechargeables pour les téléphones cellulaires, les ordinateurs portables, les outils sans fils et les voitures hybrides et électriques. Le prix et la demande du lithium sont en hausse constante pour un marché en expansion rapide. Les batteries et les piles au lithium sont très légères, sans effet de mémoire, conservant longtemps leur

charge et pouvant fonctionner à basse température. Les fabricants de batteries demandent une très grande pureté de produit : au moins 99,5 pour cent. La qualité du minerai du gisement de Québec Lithium permet d’obtenir cette concentration. En pleine production la mine extraira 2950 tonnes par jour de minerai contenant en moyenne 1,2 % de LiO2. Le minerai sera d’abord concassé, puis broyé et flotté pour obtenir un concentré de spodumène (le minéral contenant le lithium) à 6,5 % LiO2. Ensuite le concentré de spodumène sera chauffé, dissous et les impuretés seront précipitées; le résultat final sera un carbonate de lithium pur à 99,5 pour cent et même plus.

Au profit de la région De plus, Québec Lithium veut s’assurer que le développement du projet respecte les trois piliers du développement durable : la protection de l’environnement, le développement

économique et le développement social. Pour contribuer au développement social, la société encourage les investissements locaux, le principe de « la goutte d’eau », selon lequel les retombées économiques profitent le plus à l’échelle locale avant de s’étendre au reste de la région puis à l’ensemble de la nation. Le choix du maître d’œuvre (EPCM), des entrepreneurs et des employés reflètera cette volonté de contribuer à l’économie régionale en plus de développer la mine. Les entrepreneurs et les employés locaux et régionaux seront favorisés par rapport à ceux provenant d’autres régions. Une entreprise ne peut se développer à long terme que si le milieu où elle œuvre est sain du point de vue environnemental et social. Une maind’œuvre qualifiée et motivée et des fournisseurs et des prestataires de services doivent être présents pour assurer le succès de l’entreprise. Des programmes de formation sont en préparation avec les centres de formation d’Amos et de Val-d’Or afin d’assurer une main-d’œuvre qualifiée dès le début des opérations. Toutefois, la tradition minière de la région et la proximité de plusieurs villes minières faciliteront l’embauche de maind’œuvre qualifiée. Au niveau environnemental, Québec Lithium veut mettre en place les standards les plus élevés. Le lithium fait en effet partie de l’économie verte, car l’objectif à la base de plusieurs de ses usages est de réduire l’utilisation d’énergies fossiles. Il est donc essentiel de produire le lithium d’une manière responsable et environnementale. C’est ce qui a été mis en place chez Québec Lithium, avec une planification détaillée et des études poussées. Le plan de réhabilitation du site est déjà en place et l’argent requis pour la réhabilitation sera mis de côté dès le début de l’exploitation. Le type de minerai permet de minimiser les impacts environnementaux potentiels. Le minerai ne contient pas de sulfures et ne risque donc pas de

Courtoisie de Québec Lithium inc.

parlons en | COLUMNS

Tania Ilieva, géologue, examine des carottes de forage.

causer de drainage minier acide, aucun métal lourd ou toxique n’est associé au minerai, les résidus (quartz et feldspath) et le stérile (granite) sont stables et ne risquent pas de causer d’impacts environnementaux. En ce moment, l’ingénierie détaillée avance rapidement et toute l’équipe attend avec impatience le début officiel

des travaux de construction dans quelques mois. Avec des firmes de fabrication d’éléments de batteries au lithium comme Phostech et Bathium et les programmes appliqués de recherche de l’Hydro-Québec à son centre de recherche IREQ, Québec Lithium fera partie de la grappe industrielle naissante des énergies vertes au Québec. ICM

l’auteur Charles Taschereau est un ingénieur des mines avec près de 20 ans d’expérience dans le développement et l’opération de projets miniers au Canada et à l’international. Avant d’être nommé Chef de l’exploitation de Canada Lithium Corp., il était en charge du développement et la mise en opération du projet minier Essakane au Burkina Faso.

March / April 2011 | 67

COLUMNS

| women in mining

Forging ahead Young mill manager takes on the optimization challenge

In the dynamic environment of an operation undergoing expansion, Laila Potvin’s thirst for challenges is setting the pace. “It’s incredibly busy, but I’m not complaining,” says the 34-year-old manager of mill operations at Gibraltar Mines Ltd. “I like the fast pace; it’s far from boring.” In fact, boredom is possibly the gravest of enemies to this young processing dynamo. After graduating from the Lassonde Mineral Engineering Program at the University of Toronto, Potvin went to work for Vale (then Inco) in Thompson, Manitoba, as a processing engineer. In addition to a full workload, she pursued and completed a Master’s degree at McGill University. Then, in 2005, she joined the team at the Lac des Îles operation near Thunder Bay, Ontario, as mill superintendent. “After three years, we got to the point where the mill operation was running smoothly and was fully optimized,” she recalls. “This was expedited when the operation was

Credit: Patrick Campeau

Heather Ednie

Laila Potvin in front of a soon-to-be obsolete SAG feeder conveyor.

shutdown in October 2008 due to the economic downturn and drop in palladium prices. Though I was one of the people retained through the care and maintenance process, the day-to-day

work was becoming routine, so it was time for me to look for a new challenge.” In February 2009, Potvin began her current role at Gibraltar and has been enjoying the bustling environment from the onset. “At Gibraltar, we’re striving for improvements,” she says. “It will take a while to get bored – there is so much to do.”

Living the life The mining industry was not Potvin’s initial career choice. “Frankly, my original plan was to go into environmental sciences, but when I found out I’d be in classrooms with 250 people, all I could think of was, ‘how will I get a job when I graduate?’” she remembers. “I heard engineers were in demand and so I called the University of Toronto. The mining industry appealed to me because it offers such a diversity of experience, with different opportunities around the world.” The change in career path has worked out nicely for Potvin. Her husband, a blasting supervisor, also works 68 | CIM Magazine | Vol. 6, No. 2

women in mining | COLUMNS in the mining industry so they are able to move around together, learning about life in new regions, at new operations. “By moving, I get to experience different areas and really immerse myself in the new community and region,” she explains. “On the negative side, we have to go out and find all the best fishing holes with each new place we live – but that’s a challenge that is fun to have.” This spring, Potvin and her husband will embark on the biggest challenge of all – becoming new parents. “From a professional standpoint though, I’m really looking forward to coming back to my role with a new energy and perspective, focusing on the plant’s operation,” she says. “It will almost be like starting a new job again except I’ll know the people, processes and systems already.”

Always room for improvement Potvin sees herself more as an optimizer for existing operations rather

than a commissioner. Her expertise lies in assuming responsibility for an operation and developing and executing plans to make the process as efficient as possible. Although she is not responsible for the expansion project at Gibraltar, Potvin will assume control of the operation when it is complete. Meanwhile, she must keep the mill running smoothly while construction goes on in its midst. “It hasn’t been too much of a challenge,” she says. ”The process is very controlled and organized, and the team is aware of where everyone is and what funds are being spent.” The real excitement will come in 2012, she claims, when the expansion is completed. Potvin has many process changes in mind to lower unit costs. “We’re not doing it wrong now, but there are definitely areas to improve,” she says. “I will have to lean on people because I have a list of about 125 projects to push us for-

ward, but you can only do so much at one time.”

Making it all happen Having experienced the best of both worlds – working with both small and large companies – Potvin prefers working with junior to mid-tier corporations. “Things are faster compared to larger companies where there’s more red tape or more sets of eyes watching,” she explains. “Something that takes an hour here could take seven hours elsewhere. We have a ‘just go and do it’ attitude at Gibraltar. If it doesn’t work, put it back to the way it was. You advance quicker this way.” With her “forge ahead” attitude, Potvin believes anything is possible. “Choose whichever path you want to take, even if it means you must acquire new skill sets,” she advises. “You can achieve anything you want. Being relatively new to the industry, there is still so much to discover, and that’s a challenge that I find exhilarating.” CIM

March / April 2011 | 69

COLUMNS

| canadians abroad

Around the world in a briefcase Snowden’s Bob McCarthy has become a savvy traveller Heather Ednie

Courtesy of Bob McCarthy

Bob McCarthy has never actually relocated outside Canada, but it has often felt that way. The general manager at Snowden Mining Industry Consultants sacrificed a lot of time outside his native Vancouver while his kids were growing up, and he has even lived in different cities than his family. But McCarthy’s a pragmatist. “It’s never been a big issue; you just adapt,” he says. Still, he is glad that now the kids are big and his wife has retired, they can do at least some of the globetrotting as a family.

A dangerous decade McCarthy got his first taste of intense international business travel under the most difficult circumstances imaginable – just two weeks after 9/11. “It was an interesting time,” recalls McCarthy, who was with Luscar Coal at the time visiting clients in Japan, Taiwan, Germany and Brazil. “Security was through the roof, and I earned triple Air Miles – an incentive to try to get people back on the planes. We visited steel companies and their mills, never staying in one place more than two nights. I remember being virtually dragged through airports and train stations by the marketing guys.” Besides security nightmares, McCarthy has spent time in countries where he would fear for his safety. After Luscar, he joined Modular Mining and, as a new product manager, he visited Africa a number of times to study potential applications for the underground environment. “It was the first time I really did not feel at home,” he says. “I was much more concerned about my personal safety. The same went for South America around that time. I was once chatting with someone there who had, only a week before, been carjacked at gunpoint.” Carjacking fears aside, McCarthy has enjoyed most of the trips, finding 70 | CIM Magazine | Vol. 6, No. 2

Beauty and the beast. Bob McCarthy stands atop a waste dump overlooking breathtaking countryside, in the state of Minas Gerais, Brazil.

time to visit game farms and explore breathtaking countrysides. He has spent time immersed in a number of different cultures, learning to appreciate both the similarities and the differences between locations. Since Snowden scooped him up three years ago, he has travelled to Australia, Mexico, South America (including Chile, Columbia, Peru and Brazil) and the United States regularly.

The savvy business traveller After all the miles he has clocked, McCarthy has learned a few tricks to help make business travel easier and more successful. Most importantly, he says, do your homework before you expand your business into another country. If you want to succeed, you have to learn about the culture, especially how business is done there. For example, he says, in Brazil, where Snowden currently has numerous projects in the works, there are a number of labour protection regulations we do not have here in Canada.

“There are certain labour rules we must adhere to, such as how the country dictates raises,” he says. “There’s a nation-wide salary adjustment. So you wait for it, then decide whether to give more. It’s all good in the end – you just need to educate yourself first,” he adds. Then there is how to survive the gruelling task of getting from point A to point B in one piece. After some incredibly long trips – it once took him 49 hours to get from the Amazon jungle to Vancouver (it was a real “planes, trains and automobiles” story) – he has picked up some practical travel habits to help make the whole ordeal much easier. The first major rule he follows is to pack light so he has only carry-on luggage, whenever possible. “I’ve even done two weeks with carry-on,” he says. “The potential to have your luggage lost is huge and, on short hops, it never catches up. It can be a real headache, and best avoided. You learn these things over time.”

His second rule of thumb is to always be nice to fellow travellers; you never know when you might need each other. Once, heading from Tucson to Vancouver during a thunderstorm, McCarthy’s flight was delayed over and over. “I got on the plane to Phoenix, but there was no hope of making the connection to Vancouver,” he remembers. “I befriended someone on the plane, though, who invited me as a guest in the lounge in Phoenix. I knew there was one flight going to Seattle, so I cruised up, got tickets, had a beverage and got on the plane without any of the normal stress.” A final travel tip is to try to learn the local language. McCarthy is currently learning Spanish, although says he is not yet fluent. “Working in another country, it’s important to speak their language, really, there’s a responsibility there,” he adds. “I’m spending at least a month per year in South America, so I need to learn.” CIM

calendar CIM EVENTS CIM Conference & Exhibition 2011 May 22-25 | Montreal, QC Contact: Chantal Murphy Email: cmurphy@cim.org www.cim.org Mining Society of Nova Scotia 124th Annual Meeting June 8-11 | Cape Breton, NS Contact: Florence Sigut Email: florence@ns.sympatico.ca www.miningsocietyns.ca Section Harricana Tournoi de golf 4 juin | Val-d’Or, QC Responsable : Francine Fontaine Courriel: francine.fontaine@genivar.com Saskatoon Branch Annual Golf Tourney July 8 | Saskatoon, SK Contact: Jim Corman Email: jim.corman@areva.ca

AROUND THE WORLD BPI 5th International Industry Summit on Mining Performance May 10-12 Radisson Hotel, Rapid City, South Dakota, U.S.A. www.PSUminingsummit.com/2011 Sulphur, Suplhuric Acid and SO2 Abatement 2011 May 16-19 Sun City, Pilansberg, South Africa www.saimm.co.za Aluminum Two Thousand 7th World Congress May 17-21 Royal Hotel Carleton, Bologna, Italy www.aluminium2000.com Austmine 2011 May 17-18 Sofitel Brisbane Hotel, Brisbane, Queensland www.austmine2011.com

March / April 2011 | 71

COLUMNS

| la vie d’étudiant

Visite minière en Pologne Alexandre Dorval L’été dernier, trois étudiants de l’Université Laval en génie des mines et de la minéralurgie ont entrepris un voyage quelque peu exceptionnel. Le professeur Jacek Paraszczak a aidé à organiser la visite de cinq mines polonaises qui présentaient des aspects que l’on retrouve peu dans les mines canadiennes, par exemple les méthodes de minage, les équipements et les dimensions des gisements et des De gauche à droite : hôte polonais, Vincent Gingras, Alexandre Dorval, Jacek Paraszczak et Dominic Gravel. équipements, etc. Les Droit : Statue devant la mine Wieliczka en Pologne. mines, toutes souter- Crédit : Dominic Gravel raines, ont été visitées dans l’ordre suivant : Pomorzany (zinc-plomb), Ziemowit ulier et sont très (charbon), Wieliczka (sel), Polkowice- différents des Sieroszowice (sel et cuivre) et Rudna installations de (cuivre). surface des mines Chacune des mines visitées nous du Québec. accueillait chaleureusement et nous Les premières avons reçu des échantillons de roches mines visitées difficiles à trouver et des démonstraprésentaient diftions d’équipements théoriquement en férentes méthodes maintenance. de support de terTout au long de notre périple, nous rain. Des arches en ressentions une différence culturelle bois ou en métal se retrouvent partout assez importante. À prime abord, la dans les installations permanentes. De langue. Nous avons essayé de notre plus, dans la mine de charbon, une mieux de parler polonais, mais cet méthode de minage restée quelque effort fut plutôt vain. Heureusement peu théorique nous a été démontrée et pour nous, M. Paraszczak nous a expliquée. Nous sommes entrés dans traduit l’intégral des explications un chantier de longue taille du charfournies par nos hôtes. En second lieu, bon, au milieu du support la religion. Les Polonais sont beaucoup hydraulique, pour voir la haveuse en plus pratiquants que les Québécois et marche. Le gisement était à l’avant et cette différence était évidente par le l’affaissement avait lieu derrière nous. nombre d’autels, de chapelles et d’obÀ plusieurs reprises dans les difjets religieux. Ils ont aussi beaucoup férentes mines, nos guides ont de statues représentant des mineurs. interrompu des travailleurs afin de Les sites miniers ont un attrait particnous faire voir les différents 72 | CIM Magazine | Vol. 6, No. 2

équipements en fonction. J’étais plus qu’heureux et reconnaissant de cette attention. À mi-chemin dans nos visites minières, nous avons visité la mine historique Wieliczka. Ouverte aux touristes, elle offre aussi un trajet pour les gens ayant des connaissances de base dans les mines. Petites galeries, veines à pendage de 45 degrés et géologie surprenante nous y attendaient. L’air salin et les cristaux de sel étaient plus qu’abondants dans cette mine exploitée depuis sept siècles, mais utilisant maintenant la dissolution du sel dans de l’eau chaude. Un choc particulier nous attendait en Pologne : la différence de taille des gisements et tout ce que cette différence engendre. Environ 400 millions de tonnes de cuivre, une réserve énorme de sel (± 3 milliards de tonnes) dans la mine PolkowiceSieroszowice, ainsi que deux types d’équipements pour une seule méthode de minage, par chambres et piliers. Le sel est exploité par un tunnelier creusant des galeries d’une surface de 25 m² et des équipements à profil surbaissé travaillent dans la zone de cuivre. Encore une fois, nous avons eu droit à une impressionnante démonstration d’équipements, résultant cette fois en une tempête de sel. Fait impressionnant, aucun support de ter-

student life

| COLUMNS

Ordinary turned extraordinary rain n’est présent dans la zone de sel, malgré la taille de certaines chambres. De plus, la température atteint les 35 °C, malgré que la zone de sel ne soit qu’à une profondeur de 300 mètres. Finalement, nous avons visité la mine Rudna, avec une superficie minéralisée de 416 km², 11 puits et une production journalière de 43 000 tonnes. Le tout est exploité par chambres et piliers. Chaque mine emploie environ 4500 travailleurs. Finalement, j’ai vraiment apprécié ce voyage, que je décrirais d’expérience de vie, car avoir une telle opportunité est très rare. J’aimerais d’ailleurs remercier les différentes mines de nous avoir accueillis et de nous avoir montré certains équipements avec lesquels nous sommes peu familiers. Merci à Dominic Gravel d’avoir eu l’idée de cette visite et d’avoir organisé le logement et le transport du voyage avec l’aide de Jacek Paraszczak. Un grand merci à Waldemar Korzeniowski (professeur et directeur du département à la faculté de génie minier de l’AGH – Académie des mines et de la métallurgie) pour avoir aidé dans l’organisation de la visite des mines et finalement, un grand merci à M. Paraszczak pour sa grande part de l’organisation, autant au Québec qu’en Pologne et surtout pour avoir eu la patience de tout traduire les explications de nos hôtes. Comme les mineurs polonais nous ont si souvent dit : « SZCZĘŚĆ BOŻE » (Que Dieu vous bénisse!). ICM

l’auteur Alexandre Dorval est un étudiant finissant (automne 2011) en génie minier à l’Université Laval.

Poland field trip was the highlight of a Laval University student’s summer Alexandre Dorval A field trip to Poland made last summer an exceptional one for me and two other mining engineering students from Laval University. The primary goal of the trip was to deepen our understanding and knowledge of mining methods and equipment that are rarely seen in Canada. We visited Pomorzany (zinc-lead), Ziemowit (coal), Wieliczka (salt), Polkowice-Sieroszowice (salt and copper) and Rudna (copper), all of which are underground operations. We received a very warm welcome at all of the mines and were treated to rare rock samples and demonstrations of equipment on maintenance. Throughout our trip, there were moments when the cultural gap felt pretty big; language was our biggest hurdle. Happily, we had Professor Parazsczak to help us. Then there was religion. Poles are a lot more religious than Quebecers, and we were amazed by the sight of chapels and religious objects everywhere we went. But probably the most surprising thing we saw was the way the mine buildings and exterior yards were decorated with statues representing miners; there was also a lot of open space between buildings. This was quite different from what we have at home. The first visits were very interesting. For ground support, arches made of steel and wood are the foundation of everything permanent. We also had the opportunity to see a demonstration of a shearer. Observing the shearer working in front of us, with the hydraulic support on the ceiling and the caving behind us, was the best way to learn and understand the process. A few times during our visit, our guides even stopped the workers to show us how the equipment works. Half-way through our trip, we went to visit the famous 700-year-old Wieliczka salt mine near Krakow that offers tours to the public. Happily for us, there is a tour for people with at least a basic understanding of mining. Salt sculptures, cathedrallike caverns, a sanatorium, 45-degree veins and fascinating geology awaited us there. The salty air and salt crystals were everywhere in this mine that is still operational – although now the salt is extracted by dissolving it in hot water. At the two last mines, we explored differences in ore body volume and everything related to it. At Polkowice-Sieroszowice, around 400 million tonnes of copper and about three billion tonnes of salt are mined using the room-and-pillar method, but with different equipment in each case. The salt body is exploited with a tunnel boring machine (TBM) using 25 square metre surface, while the copper body is exploited with low-profile equipment. Once again, we were treated to a demonstration, this time of a TBM, which ended in a salt storm. To my amazement, there were no rock-supporting devices to be seen, even though some rooms were huge. The temperature reached as high as 35 degrees Celsius, even though we were only 300 metres deep. The last mine we visited, Rudna, has an ore body area of 416 square kilometres and 11 shafts, for a daily production of 43,000 tonnes, all exploited by the room-and-pillar method. An impressive 4,500 employees work at each mine. This field trip was a once-in-a-lifetime opportunity for me and I thank all the mines for their hospitality. I am grateful to Professor Paraszczak and to Dominic Gravel for his idea of visiting Poland and for organizing the hotels and flights. Thanks also to Waldemar Korzeniowski (professor and department director in mining engineering faculty of AGH – University of Technology) for helping organize the mine visits. Last but not the least, a huge thanks to Jacek Paraszczak for the major part he played in the organization of this awesome field trip and for translating everything our hosts were telling us. As the Polish miners would say to us when we met them underground: SZCZĘŚĆ BOŻE (God bless you!). CIM March / April 2011 | 73

Albert Low: the “Iron Man” of the GSC Correy Baldwin

74 | CIM Magazine | Vol. 6, No. 2

Courtesy of Library and Archives Canada

I

n the winter of 1884, a Geological Survey of Canada (GSC) team was waiting out the bitter weather at a Hudson Bay Company post on the shores of Lake Mistassini, deep in the wilderness of northern Quebec. The two lead members of the team had been arguing for months and now, stuck together in cramped quarters, their disagreement was reaching its height. The young, stubborn, no-nonsense geologist Albert Low had had enough of the team’s leader, John Bignell – and the feelings seemed to be mutual. Their differences too great to be resolved, Low decided to take matters into his own hands. He packed up his things and, accompanied by two other men, marched out into the blowing snow. He was heading back to Ottawa to convince the GSC to put him rather than Bignell in charge of the expedition. He was facing a 300-kilometre trek by foot and just as far by sleigh before even reaching a train station, and the blizzards were howling. The two men were part of a joint expedition of the Quebec government and the federal government’s Geological Survey to survey Lake Mistassini, rumoured to be just as large as the Great Lakes. Bignell, a land surveyor for the Quebec government, was given leadership of the expedition and Low was brought in as the team’s geologist. At 23 years old, it was Low’s first major assignment with the GSC. Bignell was 67 and much more experienced. The team was to take an unexplored route into Mistassini to survey a large area to the east and south. Bignell decided that they would winter at the HBC post, which, given the

Albert Low’s photo of the birchbark survey canoe on Lake Mistassini in the summer of 1885. James Macoun, foreground, holds a survey rod.

unknown route, would require an early departure. But, as Bignell assembled an unnecessarily large team, the departure was delayed until the end of August. Low was not impressed. Frustrated by the delay, Low left early with his team and arranged to meet Bignell at a halfway point. There, he waited impatiently until Bignell arrived. Travel became difficult as winter set in and eventually the team was forced to stop to build toboggans and snowshoes to complete the journey. By mid-December, they were trekking in minus 40 degree weather, their food supplies running out. They finally arrived at the HBC post on December 23, hungry and weary. Low wanted to begin surveying the lake immediately, but Bignell opted to wait out what was shaping up to be a

brutally cold January. Low was fed up. He considered the entire expedition a disaster and blamed Bignell. By the end of the month, the two were not on speaking terms and when February arrived, Low decided to leave for Ottawa. His trek out of Mistassini was no easier than the trek in: heavy snowstorms slowed the journey and forced him and his two companions to abandon some heavier equipment including, incredibly, their tent and stove. They spent the rest of their nights huddled in snow caves. Low eventually reached Ottawa and reported to his superior, Dr. Selwyn, detailing his grievances about Bignell’s leadership. Selwyn wrote to his Quebec counterpart, E. E. Taché. Convinced by Low, the two agreed to recall Bignell and to put Low in charge. Low set out

once again, this time armed with a dismissal letter. By the time Low set out by foot from Lac Saint-Jean, it was the end of March and spring was setting in. This time his trek was slowed by slush and mud. He eventually ran out of food and had to be rescued by men from the HBC post, but he finally made it back to Mistassini, more-or-less triumphant, on April 29. He handed Bignell the dismissal letter and sent the furious surveyor back to Quebec City. Bignell had been busy while Low was away, having emerged from the post in February to begin surveying. Now Low continued with the work and surveyed the circumference of the lake by birch bark canoe after the ice breakup. The lake turned out to be much smaller than suspected – nothing compared to the Great Lakes. Still, the trip had been a success for Low, whose

stunt secured his status in the GSC. The Mistassini trip would be the first of many expeditions. He spent nine seasons in the field, eight of those in the Quebec-Labrador region. He quickly gained a reputation as a rough traveller and hardy explorer. Such qualities were to be admired, but they were also just part of the job. It was an era when geologists were expected to truly rough it in the bush. You could say that Low had big boots to fill: the walls of Sir William Logan’s office, the first director of the GSC, were famously lined with dozens of worn-out field boots. Low more than lived up to expectations. All in all, he spent nearly 1,600 days in the field and covered well over 13,000 kilometres. He also became known for his accurate and meticulously detailed field notes, reports, sketches and maps.

His 1892 expedition up the Chamouchouane and Eastmain rivers was the first of five years of surveying by canoe, a period that solidified Low’s reputation as an expert in the geology of northeastern Quebec and Labrador. His 1893-94 expedition into the largely unexplored Labrador Peninsula was his longest, covering over 8,000 kilometres. On that trip, he discovered the vast deposits of iron ore that make up the Labrador Trough. He immediately recognized the potential of these deposits, which a half century later would support a massive iron mine industry in the area, centred around Schefferville, Labrador City and Fermont. Low resigned from the GSC in 1901 to prospect for iron at Hudson Bay, although he returned in 1906 to serve as its director. He retired in 1913. CIM

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March / April 2011 | 75

cim news What mining brings to the table MSNS Annual Meeting takes a look at how mining has improved our lives

Obituaries John J. Asselstine joined CIM in 1965 and became a Life Member in 1993. He died on April 6, 2010.

By Florence Sigut The Mining Society of Nova Scotia (MSNS) held its 123rd Annual General Meeting on June 9-11, 2010, at the Keltic Lodge Resort and Spa in Cape Breton, Nova Scotia. Chaired by past president Bob MacDonald, the meeting featured informative technical sessions, industry updates from business leaders, a panel discussion and a round of golf at the worldrenowned Highland Links Golf Course. Under the theme “Atlantic Canada mining – improving our lives,” the technical program focused on the leading industry innovations, projects and social issues facing the region today. The highlight of the meeting was the Awards Dinner & Dance, celebrating special achievements within the local industry. Winners included: • Xavier D. Michaud (Dalhousie University) and Nicholas Guest (St. Francis University) – Centennial Scholarship Medals • Anna West (Dalhousie University) – Donald MacFadgen Memorial Scholarship

• Gordon Dickie – Mining Society of Nova Scotia Medal • Alan Davidson – President’s Citation Notable speakers included CIM President Chris Twigge-Molecey and the Honourable John MacDonell, Minister of Service Nova Scotia and Municipal Relations, and Minister of Agriculture. CIM

Thanks to our sponsors for their generous support ADI • AECOM • Amirault Ventures • Atlantic CAT • Atlantic Explosives • Atlantic Hardchrome • Canada Steamship Lines • CBCL • Contestoga-Rovers • Dexter Construction • Dyno Nobel • LaFarge Canada • Logan Drilling • MacLeod Resources • MANS • MAXXAM • MERREX GOLD • Millennium Contracting • National Gypsum • Nova Scotia Department of Natural Resources • Sansom Equipment Limited • Senes Consultants Limited • Shaw Resources • S & M Trucking • Stantec • The Canadian Salt Company • Wilson Equipment

CALL FOR PAPERS Papers are currently being accepted for the 124th Annual General Meeting of the Mining Society of Nova Scotia to be held on June 8-10, 2011, at the Keltic Lodge Resort and Spa in Cape Breton, Nova Scotia. Submit technical papers to: willie.mcneil@stantec.com For further information or to register, contact: Florence Sigut Tel.: 902.567.2147 Email: florence@ns.sympatico.ca

76 | CIM Magazine | Vol. 6, No. 2

W. Keith Buck became a member of CIM in 1952 and a Life Member is 1987. He died on September 8, 2010. Alex Cormode became a member of CIM in 1975 and achieved Life Member status in 2009. He died on February 10, 2010. John D. Dinsdale joined CIM in December 1990. Byron C. Elsley, a Life Member of CIM since 1977, died on February 20, 2009. Howard Foshang joined CIM in 1976. He died in June 2010. James D. Knauer became a Life Member in 2000. He died on February 6, 2010. Arnold McAllister joined CIM in 1955 and became a Life Member in 1989. He died on November 16, 2010. Murray W. Pyke, a Life Member since 2003, died on May 6, 2009. Clifford C. Rennie became a member of CIM in 1978 and a Life Member in 2004. He died on November 24, 2009. George C. Riley, a member of CIM since 1949 and a Life Member since 1991, died on September 2, 2010. George Ruddle joined CIM in 1987. Nathaniel S. Scott was a member of CIM since 1958 and a Life Member since 1993. He died in 2010. Alvin Edgar Storey joined CIM in 1954 and became a Life Member in 1992. He died on October 10, 2010. Walter Herbert Thompson, a member of CIM since 1956 and a Life Member since 1991, died on September 20, 2010. Susan Zador joined CIM in 1985. She died on October 3, 2010.

scholarship winner

| cim news

Early exposure to mine turns into inspiring career By Marlene Eisner

Credit: Tom Broddy

Bradley Lecomte, the with a goal of becoming a 2010-2011 recipient of professional engineer. His the Caterpillar and its current interests lie in uraCanadian Dealers Scholarnium and coal. “Uranium ship, visited the Hucklemining is so completely berry Mine near Houston, different from any other British Columbia, when area of mining in terms he was in elementary of the challenges and school. Although fasciuniqueness of the propernated by what he saw, he ties,” he adds. “And coal is never imagined that one also really different. I took day he would find himself a class on coal processing, behind the wheel of a and what I saw on the way large haul truck. But, for coal is mined really interthe last two summers, the ests me.” 21-year-old, fourth-year But, until that hapUniversity of British pens, Lecomte is looking Patricia Dillon, Trustee for the Canadian Mining and Metallurgical Foundation, presented Columbia mining engi- the Caterpillar and its Canadian Dealers Scholarship to Bradley Lecomte, a mining engiforward to the two-week neering student has been neering student at the University of British Columbia. trip to Brazil his fourthhauling ore at the very year mining class will same mine, an experience he says take at the end of the semester. “That When he graduates this spring, will one day help him as a mine will be an eye-opening experience for Lecomte says he wants to work in an CIM engineer. me,” he says. “I can’t wait.” engineer-in-training (EIT) program, In high school, Lecomte enjoyed math, physics, economics and computers. Studying engineering was a natural choice for him, but when he entered university, he knew little about the various fields open to him. “When I saw a presentation put on by the mining department, it sparked an interest I had in mining that started back in elementary school,” he says. “One of the things about mining that I’m really interested in is the way the physical, political, social, economic and environmental challenges all come together when mining engineers work on a job.” While at Huckleberry Mine, Lecomte was able to gain a good perspective on mining operations from speaking with other employees. “In my future career, if people complain about the haul road being too small, for example, I will be in a better position to understand that,” he says. “These trucks don’t turn on a dime; they do need large roads.” March / April 2011 | 77

cim news

| récipiendaire

L’implication des ingénieurs Par Maria I. Anelli Cette année, Pierre Laroche, ingénieur minier chez LAB Chrysotile, a reçu le Prix des membres de l’ICM pour ses 38 années d’implication à Thetford Mines, tant au niveau technologique et culturel qu’éducatif et sportif. Originaire de Montréal, rien ne semblait destiner le jeune Laroche à cette carrière, sauf un nom prédestiné et un intérêt marqué pour le secteur primaire. Il eut la piqûre lors de stages durant ses premières années à l’École Polytechnique de Montréal. Le baccalauréat s’étendait alors sur cinq ans, dont deux ans de tronc commun. « J’ai travaillé dans des mines de métaux à Chibougamau et à Matagami, puis à Elliot Lake dans une mine d’uranium. C’est ce qui m’a le plus intéressé », a-t-il expliqué. L’obtention d’un 2e prix à un concours d’Expo-mines le motiva encore davantage. Diplômé Bachelier en 1969, M. Laroche a travaillé à QIT Fer et Titane à Havre-Saint-Pierre, après l’obtention de sa maîtrise en 1970. Son employeur actuel, LAB Chrysotile (jadis Lac d’Amiante du Québec), l’embauche en 1972 comme ingénieur minier. « J’ai aussi été assistant-surintendant de l’usine », a-t-il expliqué. « J’avais une équipe de dessinateurs et de concepteurs et on a travaillé énormément pour assainir le milieu de travail. » Le jeune ingénieur s’est fait connaître alors qu’il a participé à la Commission d’enquête sur la salubrité dans les mines d’amiante, suite à la grève de neuf mois en 1975. Par la suite, une entente entre les mines a permis le libre échange de nombreuses données relatives à la prévention de l’empoussiérage du milieu de travail. M. Laroche et son équipe ont grandement contribué à faire accélérer la mise en œuvre de ces améliorations. Directeur du contrôle de la qualité depuis le regroupement des mines LAQ, Asbestos Corporation et Bell en juillet 1986, M. Laroche veille aussi à tout l’aspect environnemental, un sujet qui lui est cher. Qu’est-ce qui passionne encore cet ingénieur expérimenté? « Le secteur minier dans son ensemble », répond-il. «Autrefois, c’était le moteur de l’économie locale mais, depuis la fermeture de plusieurs mines, l’économie s’est diversifiée. La mine qui demeure en opération est maintenant une composante non négligeable, mais uniquement une parmi tant d’autres entreprises. D’ailleurs, mes implications dans les chambres de commerce me permettent une vision plus globale du développement et du succès économique régional. »

78 | CIM Magazine | Vol. 6, No. 2

Il préside la Chambre de commerce régionale de Chaudière-Appalaches, est membre du conseil d’administration de la Fédération des chambres de commerce du Québec et siège au Conseil d’administration de la Société de développement économique de la Région de Thetford Mines depuis 2007 en plus de siéger au conseil exécutif de la chambre de commerce et d’industrie de Thetford Mines depuis 2002. M. Laroche compte aussi de nombreuses autres réalisations, dont : cofondateur de la Société minéralogique de la Région de l’Amiante et du Musée minéralogique et minier de Thetford Mines. « Les gens sont peu ou mal informés des activités des travailleurs et des ingénieurs miniers », fait-il remarquer. « Quand j’ai choisi ce domaine, ma mère était très craintive, puisque les médias ne rapportaient souvent que les tragédies dans les mines de charbon. Le musée constitue donc une belle vitrine pour démystifier nos ressources et faire connaître l’ensemble du secteur minier, tant québécois que mondial. » Conscient de l’impact positif de l’ICM, M. Laroche a présidé ou été actif au sein de la section ICM de Thetford Mines en 1992-1994 ainsi qu’en 2007-2009. Pourquoi s’impliquer autant? « Parce que la pérennité du secteur minier dépendra beaucoup de l’image projetée qui devra mieux refléter la réalité d’aujourd’hui », affirme-t-il, « mais, surtout, pour inciter la relève en raison de la pénurie de main-d’œuvre qui persiste. » Lorsqu’il était à Polytechnique, M. Laroche avait été inspiré par une conférence de son futur patron, M. Lionel Piuze, le vice-président de LAQ. « C’était un ingénieur de grande qualité mais aussi un humain impliqué dans son milieu. C’est cette facette qui m’avait vraiment impressionné », conclut-il. M. Laroche s’impliquait déjà à cette époque à l’Université (association étudiante, coopérative, théâtre étudiant etc.). Par la suite, à Thetford Mines, il collabore comme entraîneur au hockey mineur et comme membre du comité organisateur du tournoi de ringuette. Père de deux grands enfants, une enseignante et un ingénieur, M. Laroche pourrait se reposer sur ses lauriers en attendant que lui et son épouse ne deviennent grands-parents. C’est mal le connaître. Aussi passionné qu’à ses débuts, il entend demeurer actif tout en poursuivant la défense des ressources naturelles régionales comme le chrysotile. Il collabore d’ailleurs au Mouvement PROChrysotile, afin de promouvoir l’usage sécuritaire du chrysotile. Il préside également le Conseil d’administration du Centre de technologie minérale et de plasturgie associé au Cégep de Thetford. Parions qu’à l’instar de son ancien patron, M. Laroche inspirera d’autres jeunes à suivre ses traces. ICM

Le 23 mai 2011 Palais des congrès de Montréal Montréal (Québec) Billets 1.800.667.1246 / www.cim.org

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20 11

PaGAGnini Un accord entre la musique classique et l’humour Les musiciens de PaGAGnini offrent une interprétation tout en humour de certaines des plus grandes pièces de l’histoire de la musique. Le violoniste virtuose Ara Malikian, de concert avec trois autres musiciens, interprète les compositions de génies de la musique comme Mozart, Pachelbel, Chopin et, bien sûr, Paganini, tout en faisant la part belle à certains styles populaires comme le rock ou le folk. Les musiciens jouent, dansent, rient, pleurent et échangent avec l’assistance, faisant de PaGAGnini un spectacle d’humour original où le violon et le violoncelle se transforment spontanément en instruments nouveaux et inédits.

http://www.flixxy.com/classical-music-comedy.htm PRÉSENTÉ PAR

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“Un spectacle fascinant qui galvanise les foules et provoque des rires et du plaisir à n’en plus finir. C’est du théâtre à l’état pur.”

“Cette parodie hilarante d’un récital classique a un effet jubilatoire sur les foules.”

“Pagagnini n’est pas un spectacle qu’on aime, c’est un spectacle qu’on adore.”

– ABC

– El Pais

– The Gazette, Montréal

cim news

| distinguished lecturer

Looking at the big picture Michael Doggett helps companies ride the waves of economic cycles By Alexandra Lopez-Pacheco Michael Doggett has a long history of involvement in the mining industry. With more than 25 years of experience in the field of mineral economics, he has carried out numerous consulting assignments advising mining companies, governments and international agencies, and has delivered professional development courses in mineral project evaluation to more than 1,200 people in a dozen countries. In 2002, he was the recipient of CIM’s Robert Elver Mineral Economics Award. Today, in addition to being president of HanOcci Group, a resource investment and mining advisory service based in Toronto and Vancouver, Doggett is also an adjunct professor at Queen’s University, where he served as director of the Mineral Exploration Master’s Program from 1997 to 2007. He is currently a PDAC director and serves on the board of directors of six publically traded exploration and mining companies. As one of this season’s CIM Distinguished Lecturers, Doggett will be sharing some key observations and analysis on the long- and short-term business cycles faced by the mining industry and how understanding these can help companies better address the associated challenges. CIM: What are the long- and short-term cycles you have identified? Doggett: There are short cycles that are in the seven- to 10-year range of ups and downs, based on commodity prices. The longer term cycles have about a 30-year window. Take copper as an example: regardless of the short-term cycles, when looking long term, copper has had a fairly consistent increase in demand. So prices may go up and they may go down, but in the long-term, the demand for copper continues to increase. CIM: Why is understanding these cycles important? Doggett: There are challenges and implications in operating in a business environment with often conflicting shortand long-term objectives. From an exploration perspective, if you look at the typical timeline associated with finding, delineating, permitting, financing and building a new copper mine, for example, it can be pretty long, something in the order of 15 to 20 years. So, if you have seven- to 10year short-term cycles and it takes 15 to 20 years to actually go through all the stages of what I would call the long-term supply issues, then you have a bit of an overlap, or conflict. As a company, you strive to have a consistent 80 | CIM Magazine | Vol. 6, No. 2

approach to overcoming the risks in the long time frames, but at the same time, you’re subject to the commodity swings in the general short-term business cycles. CIM: How do these cycles impact exploration, in particular? Doggett: It’s going to impact exploration in two ways. Cash flow companies, or the major companies that are producing metals in an up cycle, are going to have more money for profits and, therefore, they’re more likely to spend money on exploration. If metal prices are high and there’s some expectation of profit in the future, then it is easier for junior companies to finance exploration through straight equity shares rather than profit. The market is more interested. So, you have both things happening at once: more profit from larger companies and easier access to capital markets for the junior companies. But, in the low cycles, many junior exploration companies cease to operate. CIM: What originally led you to study the cycles in the mining industry? Doggett: I consider myself a “big picture” guy. I like to step back and look at the whole industry and observe how it functions. Obviously, the juniors and seniors are part of that, as well as the short-term business cycles, but the overriding message is that in the long-run, the demand for mineral commodities has increased by an average of about three per cent per year. When you compound that over 30 years, it means that the output of copper, for example, has doubled in that time. So, even though there are ups and downs and all-time highs and lows, that’s the reality everyone is working within. CIM: Are there any other important insights to be gained from understanding these cycles? Doggett: Coming from an academic background, you see the way the commodity and business cycles impact the enrolment numbers in the technical fields in mining and geology. It’s pretty tough if you’re a third- or fourth-year student and you pick up a newspaper and read about geologists and mining engineers being laid off because the cycles are so low. So, part of my thought here is that we need to step back as an industry, including academia, and concentrate on the real long-term positives in growth on the industry. If we focus solely on all the short-term things, we tend to get overwhelmed by what’s going on in the present. We need to stop getting caught up in the highs and lows. Let’s keep a steady approach. CIM

Book a Distinguished Lecturer now: www.cim.org/activities/lecturers2011.cfm

cim news

Winter classic Record turnout for CMP Conference By Ryan Bergen A solid technical program with a healthy mix of networking and social activities attracted a record 498 delegates to the Westin Ottawa in January for the 43rd annual Canadian Mineral Processors Operators’ Conference. The theme of this year’s plenary session was Better Flowsheeting with Modern Process Mineralogy. CIM Distinguished Lecturer Norm Lotter began the technical discussions and was followed by 37 papers on topics that included operations, plant optimization, flotation, advanced technologies, gold ore processing and comminution. The program also included a special presentation from Tony Lipiec on the work performed by the CMP sub-committee created at the 2009 conference to establish the best practice guidelines in mineral processing for NI 43-101. Don Leroux, the technical chair of the conference, told those at the CMP business meeting, “We are proud to say we are covering a broad range of commodities and operations from around the world.” The papers presented were drawn from 60 submissions. Prior to the technical program, Lotter and Jorge Oliveira, both of Xstrata Process Support, led a half-day primer course in sampling in the mineral processing discipline that focused on the sampling protocols for drill core and blasthole chips. Thanks to the sponsorship of 42 industry firms, as well as Natural Resources Canada and the Government of Canada, 31 mineral processing students from 16 post-secondary institutions were able to attend the conference, which included a student mixer, a “beer and sandwich” luncheon, and a reception hosted by CMP chairman Dominic Fragomeni. At the annual awards banquet, Jean Robitaille earned the Mineral Processor of the Year Award for his work as vice-president of metallurgy and

Top: Conference goers filled the room during the technical discussions; bottom: Team West (black) defeated East 4 to 1 in the Kilborn Cup, the annual hockey game open to any paid conference delegates. Credit: Al Kuiper/NRCAN

marketing with Agnico-Eagle Mines. Yves Breau, director metallurgy at IAMGOLD, was honoured with the Bill Moore Special Achievement Award. Bradley Kaplin of McGill University claimed the $5,000 André Laplante Memorial Scholarship. Queen’s University student Spencer Reeves won the CMP student essay competition. The tireless efforts of Janice Zinck were also celebrated with the new Ray MacDonald Volunteer Award, created to recognize the contributions volunteers make to CMP.

Finally, the grinding style of Team West won the Kilborn Cup for 2011 with a 4 to 1 victory over Team East. Despite the loss, East goalie Sylvain Caron earned the distinction of the Ray MacDonald Player of the Game. Now in its 11th year, the East-West Hockey Classic has become a mainstay of the annual gathering. With the Westin Ottawa reserved for the third week in January for the CMP conference until 2017, the rivalry should remain healthy. CIM March / April 2011 | 81

cim news

CIM signs MOU with Chinese association By Heather Ednie CIM has entered a Memorandum of Understanding (MOU) with the China Non-Ferrous Metals Industry Association (CNIA), which represents more than 600 nonferrous metals, mining and processing companies in China. Within the MOU, a number of areas of mutual interest have been identified with the aim of developing projects together to support and improve the health of workers, communities and the environment through the development of the mining and metals industry worldwide. The core areas of interest the CIM-CNIA agreement has identified are health and safety, standards, environment and recycling. Both parties have committed to the following basic deliverables: • CNIA will identify the knowledge, expertise and training needed in these four areas of interest in the Chinese nonferrous industry, as well as the events to support the sharing of such information, and co-host such events in China and/or Canada. • CIM will identify the required expertise and knowledge on these four issues in Canada and elsewhere to meet the Chinese requirements, and co-host events with the CNIA. • The leaders of CIM and CNIA will meet periodically and report annually to their boards on the status of cooperation in each of the four identified areas. • Both CIM and CNIA will promote each others’ conferences and potentially organize conferences jointly. As well, they will establish methods for visiting delegations to meet local companies. • Possible distribution of each others’ technical publications is to be investigated. CIM president Chris Twigge-Molecey signed the agreement on behalf of CIM. “I personally have been working on a variety of initiatives with CNIA for about seven years, including putting on a Hatch-CNIA workshop on carbon trading about five or six years ago,” he said. “The discussions around a CIM-CNIA cooperative agreement went relatively fast as a result of the existing relationships.” According to Twigge-Molecey, the MOU is a step forward in CIM’s strategy to internationalize and reach out to other regions to establish useful best practice transfer mechanisms and networks. “The intent is to attract new members and support current members who are overseas,” he added. “We see China as a key element in the future of a significant part of our membership, both overseas and in Canada, where the Chinese are buying up resources at an astonishing rate.” What is next? Discussions are underway about a conference on energy efficiency and standards to be held in China later this year. Depending on its level of success, CIM and CNIA will then work together to determine a program for 2012. CIM 82 | CIM Magazine | Vol. 6, No. 2

award winner

| cim news

Taking home the copper Phillip Mackey’s winning streak is far from over By Correy Baldwin

Credit : Normand Huberdeau/ NH Photographes Ltée

It was 1969 when Phillip Mackey packages have promoted demand for moved from Australia to Canada to different materials and metals, so it’s take a job with Noranda Mines as a worldwide.” research engineer. Noranda nabbed Copper is also playing a vital role in Mackey straight out of the University a greener future. “It’s key for electrical of New South Wales, where he had efficiency, and electrical efficiency is just received his Doctorate in metalkey to climate control, so it’s a key lurgical engineering. They immedimetal in the green society,” Mackey ately put him to work spearheading adds. “A sustainable industry,” he says, development on a project that would “is one that is efficient, uses minimum become the Noranda Process. energy and has minimum environmen“The Noranda Process was a new tal impact, and we’re working towards technology to treat copper concentrate those kinds of objectives.” in an efficient manner,” explains Mackey and his wife Angele at CIM Conference & ExhibiMackey has written on a wide range Mackey. “When it began it was defi- tion 2010 in Vancouver of topics on copper, nickel and other nitely a major development. It was metals, including energy consumption probably one of the key developments in copper metallurgy in and production efficiency for over 100 publications. One of the last century.” his interests is tracking the development of various metallurNot a bad way to begin a career. Mackey went on to gical technologies. “We [the industry] are always thinking a supervise the pilot plant of the Noranda Process, and then to little bit about the future, but it’s good to know how we oversee the project’s technology sales: a role that would take arrived at the present time in order to discover how things him and his team all over the world. “The process was might unfold in the future.” installed in China, Chile and Australia. And for every instalMackey is currently co-editing a book with a colleague lation there might have been five or ten prospects.” Through that will cover Canada’s developments in metallurgy these projects and a number of worldwide due diligence throughout the last 50 years with papers prepared by numerstudies carried out for Noranda, Mackey gained a unique ous contributors from across the country. “It will also insight into the world of copper. include a chapter on future directions,” he exmplains. “We It was a major success for Noranda, and a great achieve- are thinking about how mining and metallurgy might look ment for Mackey, but he was not finished making innova- in 50 years.” It will be a commemorative book in celebration tions to copper smelting. His work in the Noranda Process of the 50th Conference of Metallurgists, hosted by CIM’s led him and the team at Noranda to pioneer a new continu- Metallurgical and Materials Society, to be held this coming ous converting process. The continuous converter was October in Montreal. developed to produce a final copper product through treatMackey recently retired from Xstrata to open his own ing the intermediate material (matte) produced in the consulting company, a job that he enjoys tremendously, Noranda Process. using his experience working on copper and nickel projects The continuous converter – which became known as the worldwide. Noranda Converter – had an enormous impact on copper The Selwyn Blaylock Medal has been a career highlight. smelting and subsequently earned Mackey the 1998 “Blaylock grew up in Quebec, and graduated from McGill. Noranda Technology Award. He had extraordinary achievements in Canadian mining By this time, Mackey was the chairman of Noranda’s New and metallurgy and through his vision, helped build ComIdeas and Innovation Committee. It was a well-deserved inco (now Teck),” he says. “To be recognized for developpromotion, given how innovative both the Noranda Process ments that I carried out is certainly an honour. I was and the Noranda Converter were when they were intro- thrilled to receive it.” He is also emphatic in acknowledgduced. “I’ve always had an interest in how new technology ing the support of his wife Angele, whom he thanks for can be effectively commercialized,” he says. years of encouragement. She now helps with the new comThe Noranda Converter remains just as important today. pany. “Copper is going through a boom because it’s in demand in The Selwyn Blaylock Medal recognized Mackey for his China and India and other countries,” says Mackey. “Copper innumerable contributions to the field of extractive metalis at one of its highest prices in many years, primarily lurgy: his publications, technological advancements and because of demand from new markets. Different stimulus mentorship of several generations of engineers. CIM March / April 2011 | 83

cim news

CIM welcomes new members Ahmed, Laique, Pakistan Al Haffar, Sarah, Quebec Alarie-Routhier, Dominique, Quebec Almond, David, USA Anglehart, Philippe, Quebec Aumond, Robby, Quebec Barrette, Cédric, Quebec Batick, Fabien, Quebec Belisle, Jessica, Quebec Benoit, Philippe, Quebec Bernard, Alexandre, Quebec Bernier, Mathieu, Quebec Bernier Lachance, Johanie, Quebec Bertrand, Andrée-Ann, Quebec Biege Jr., Neal, USA Blake, David, USA Boudreault, Keven, Quebec Brochu, Vincent, Quebec Bucio, Jorge, Ontario Caner, Ernesto, Ontario Chamberlain, Mike, Ontario Cook, Mike, Ontario Corriveau, Samuel, Quebec Costello, Jessica, Quebec Côté, Lilas, Quebec

Côté-Gingras, William, Quebec Côté-Lafrenière, Karl, Quebec Dabbas, Mohannad, Quebec Dansereau, Carl, Quebec Dickey, Guylain, Quebec Dickie, Brett, Saskatchewan Dorval, Alexandre, Quebec Dumain, Nicolas, Quebec Dupont, Sonny, Quebec Dupuis, Jean-Francois, Quebec El-Khoury, Elie, Quebec Eprinchard, Maeva, Quebec Filidore, Anthony, USA Gagnon, Frédéric, Quebec Garant, Manon, Quebec Gauthier, Keven, Quebec Gingras, Jonathan, Quebec Gingras, Nicolas, Quebec Godard, Myrane, Quebec Godmer, Julie, Quebec Gosselin, Nicholas, Quebec Goyette-Levac, Thomas, Quebec Guimond-Rousson, Janie, Quebec Hamilton, Craig, Saskatchewan Hanson, Brett, Alberta Hébert, Jean-Philippe, Quebec

Héroux, Jean-Marc, Quebec Hughes, Rory, Quebec Jeannotte, Marie-Christine, Quebec Joly, Nicolas, Quebec Jourdain, Nathan, Quebec Kedo, Aurianne, Quebec Kinoshita, Jason, Saskatchewan Klemmer, Stephen, Saskatchewan Kohmuench, Jaisen, USA Konda, Sandeep, India Kumar, Manoj, Pakistan Ladouceur, Guillaume, Quebec Laliberté, Simon, Quebec Lambert, Marie-Pier, Quebec Lamothe, Christian, Quebec Langlois, Marc-Antoine, Quebec Lanoix, Jasmin, Quebec Lapointe, Jean, Quebec Lapointe, Sébastien, Quebec Larouche-Leblanc, Jérémie, Quebec Lavoie, Eric, Quebec Lefebvre, Alexandre, Quebec Locker, Tiphaine, Quebec Lofstrom, Matt, Saskatchewan

Marcoux-Gagné, Stéphane, Quebec Marineau, Carl, Quebec Mayers, Keeshan, Quebec Mercier, Marc-André, Quebec Mindia, Jonathan, Quebec Mitchell, David, Saskatchewan Murray, David, Saskatchewan Naday, Les, USA Neault-Vachon, Michael, Quebec Ngaiohni, Pierre, Quebec Paradis, Miguel, Quebec Parent, Chantal, Quebec Pelletier, Rémi, Quebec Pelletier-Larouche, Joel, Quebec Peluso, Tony, Quebec Pinard, Michel, Quebec Pinet, Karl, Quebec Pomerleau, Pierre-Luc, Quebec Pomerleau, Josée-Anne, Quebec Prévost, Charles, Quebec Prince McNeil, Sheldon, Quebec Provencher, Frédéric, Quebec Rabouin, Nicolas, Quebec Régnier, Alexandre, Quebec Renshaw, Loel, Ontario Rheault, Jasmin, Quebec

Riopel, Marie-Eve, Quebec Rousseau, Enrick, Quebec Roy, Yannick, Quebec Roy, Mathieu, Quebec Saidova, Madina, Quebec Samsom, Jérémie, Quebec Savoie, Nicholas, Quebec Sénécal, Mikael, Quebec St-Amand, Benjamin, Quebec St-Cyr, Alexandre, Quebec St-Germain, Serge, Quebec Swiniarski, Rob, Ontario Tanguay, Tommy, Quebec Taschereau, Antoine, Quebec Thompson, Justin, Ontario Thouin, Vincent, Quebec Vallière, Mathieu, Quebec Vallière, Michael, Quebec Varencaus, Skaidra, Quebec Vellet, Catherine, Quebec Verge, Morgan, Quebec Vergunst, Ron, Ontario Viera Martinez, Roberto, Ontario Yakobo, Stanley, Quebec Yandle, Dawn, USA

Canadian Metallurgical Quarterly The Canadian Journal of Metallurgy and Materials Science New to Maney in 2011...CMQ publishes original contributions on all aspects of materials science, including mineral processing, hydrometallurgy, pyrometallurgy, materials processing, physical metallurgy and the service behaviour of materials. Issue 1 of Volume 50 now published...Including a letter from Editor-inChief, Professor Doug Boyd, Queen’s University, Canada Online content...The full archive of CMQ is available to member subscribers. To view archive and current content online visit: www.ingentaconnect.com/content/maney/cmq Member subscriptions...To subscribe as a member, simply log-in as a CIM member and proceed to subscribe: www.cim.org www.maney.co.uk/journals/cmq

84 | CIM Magazine | Vol. 6, No. 2

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HISTORY OF

economic geology The foundations of modern economic geology (Part 2) By R. J. “Bob” Cathro, Chemainus, British Columbia

A Boston school-teacher may buy the shares of Great Wildcat as an ‘investment’, whereas a Wall Street broker recognizes that it is highly ‘speculative’, and a Nevada mining engineer knows that it is a rank ‘gamble’. These terms are relative; they connote a crescendo of risks; even an investment has a slight element of risk; a speculation has more; a gamble, most. Sometimes stock is bought on the expectation of a rise; it remains steady for years; it proves to be what is called a ‘forced’ investment. The idea of expectation is implicit; the human factor is never absent; we are dealing not with lexicons but with human affairs.

The Engineering and Mining Journal (EMJ) was founded in 1866 and is still being published today, over 140 years later. This must be close to a record for any North American publication. It was probably not a coincidence that EMJ was born at the same time mining activity in the southwestern United States began to require large amounts of capital investment. Between 1875 and 1932, at least seven industrial publications were absorbed into EMJ, all with titles containing the words mining, engineering, metallurgy, coal or iron. In 1922, EMJ was consolidated with the Mining and Scientific Press, based in San Francisco, and the combined publication operated as Engineering and Mining Journal-Press until 1926, when it reverted to the original title. These two were unquestionably the two leading international sources of information about mining methods, equipment and activity. They were also the most influential periodicals providing news and papers on economic geology up to about 1910. T. A. Rickard (TA) became the editor of EMJ at the beginning of 1903. Although he had no previous journalistic experience, he had contributed stories and technical papers to the journal for years and was eminently qualified. He had ~Rickard, 1919 nearly 20 years of experience as an international mining engineer, was well-read and articulate, believed in editorial independence, and had a wide circle of senior contacts within the mining industry. He succeeded R. W. Raymond and R. P. Rothwell, who had shared the title since 1867. Rickard’s first initiative was to expand the list of special contributors from one (Raymond) to 12, seven of whom were based in New York, Boston, Philadelphia and Washington, and the others in Denver, London, Johannesburg and Sydney. Among the Americans were such eminent experts as S. F. Emmon and W. H. Weed of the USGS, Raymond, W. R. Ingalls, R. A. F. Penrose and Philip Argall. In addition, he enlisted a group of about 60 mining engineers, metallurgists and geologists to become small shareholders in order to demonstrate the strength and breadth of the journal’s professional support. Of these, about 10 were based in New York, Boston and Philadelphia, 22 in Colorado, eight in London, five each in California and Mexico, four each in Montana and British Columbia (names unknown), and two each in Salt Lake City, Australia and South Africa. By November 1904, the number of special correspondents had increased to 28, of whom 20 were based in eight American cities, and the others were in London. Australia and South Africa. The first weekly edition under TA (January 3, 1903) illustrates why it was such a invaluable resource. It was longer than normal, at 72 pages, because it contained 1902 summaries for every important metal, plus coal, steel and phosphate; the New York, Boston and London stock markets; and activity in the Lake Superior copper industry, Arizona, Montana, Leadville, Utah, Boundary district of British The building housing the office and press of Mining and Scientific Press following Columbia, South Africa, Western Australia, Coeur d’Alene, the 1906 earthquake and fire (Rickard, 1906) March / April 2011 | 85

HISTORY OF

economic geology

Rickard completing the purchase of MSP from J. F. Halloran on December 1, 2005, just as a small earthquake shook the building (Rickard, 1920)

Sudbury, New Caledonia, York Region of Alaska tin deposits, Bolivia, Joplin zinc, Mexico, Kansas coal, Wyoming, Colorado petroleum, metallurgical progress in Australia, and the cyanide process in the United States. EMJ was published every Saturday and posted internationally as second-class mail. Subscription rates were $5.00 in the U.S., Canada, Mexico, Cuba and The Philippines, and $7.00 elsewhere. Branch offices were located in six American cities (four in the west) as well as Vancouver (Molson’s Bank Building), London, and Dortmund, Germany. Although the journalistic side of EMJ prospered, the publishing side suffered from the financial weakness of the current owner. Within two years, the journal had passed into the hands of a third publisher, John A. Hill, who announced he intended to make significant changes that threatened TA’s journalistic independence. Hill later became a partner of James A. McGraw and formed the giant McGraw-Hill Publishing Co. TA resigned from the journal at the end of June 2005 and, obviously pleased by his taste of technical journalism, purchased the Mining and Scientific Press (MSP), based in San Francisco, from J. F. Halloran for $200,000. This made him both the publisher and editor. During the six months before he took up his new duties, he spent six weeks in Nova Scotia on a consulting contract studying the provincial gold industry and a month in the fall touring Mexican mining districts. He later published an account of the Mexican trip (Rickard, 1907). TA had a lot of family ties in the Bay Area and was pleased to settle in Berkeley, on the east side of the bay. His uncle Reuben had been president of the town council in 1888 and Reuben’s son Thomas was elected mayor in 1905. He took over ownership of MSP on December 1, just as one of the frequent, moderate temblors shook the office. “That always happens when the Mining and Scientific Press is transferred,” Halloran joked. The next six months proved to be an exciting and severe test of TA’s managerial skill. At 5:13 a.m. on Wednesday, 86 | CIM Magazine | Vol. 6, No. 2

April 18, 1906, 18 weeks after he became the owner, a major quake occurred, followed by a destructive fire that burned for three days. Known as “THE San Francisco Earthquake,” it completely destroyed much of the city, including the entire MSP plant. TA and his new business manager, Edgar Rickard, who was another of Reuben’s sons and TA’s cousin and brother-inlaw, proved they were up to this unique challenge. By noon, they had confirmed that their plant had been destroyed. Fortunately, they had saved a copy of their subscription list. By 5 p.m., they had rented space in a bank building in Berkeley and arranged for typesetting and printing by a local newspaper. An emergency issue of the MSP was mailed on Friday. With telegraph lines down, this was the first detailed news that many subscribers had of the damage. After Earthquake and Fire, a reprint of articles and editorial comment that appeared in MSP, was published later in the year (Rickard, 1906). That was the eighth book that TA had published since 1897, preceded by books on stamp milling of gold ores, alluvial deposits of Western Australia, sampling and estimation of ore in a mine, the copper mines of Lake Superior, the economics of mining, and pyrite smelting. Some of these were collections of papers submitted by experts in the field for publication in EMJ that were edited and compiled by Rickard. MSP had been established in 1860, six years before EMJ, and became the principal voice for western miners and equipment suppliers, a position it retained even after the transcontinental railways were built and eastern suppliers became paramount. It was also a popular journal around the Pacific Rim, particularly in Australia, New Zealand and India, and was a prominent early home for those mining engineers who wrote on economic geology subjects. Early in 1909, with MSP firmly on its feet and doing well, TA was urged by friends in London, some of them Americans, to start a real mining paper there. He reasoned that the centralization of the British mining business in one city would make it easier than in the United States. Both TA and Edgar moved there, leaving MSP in the hands of capable managers. The first issue of The Mining Magazine, which was a monthly, was published on September 15. It was comprised of seven pages of review of mining, 14 pages of editorial, and 12 pages of reports from special correspondents based in Johannesburg, Mexico, San Francisco, Denver, New York and Cornwall. Two pages of discussion followed. Although it was profitable within a year, the magazine was always much smaller than the two American journals. TA was surprised to learn that English suppliers didn’t have the same appreciation of the value of advertising as their North American competitors. The curse of technical journalism in London was the intimacy with corporate finance. Most of the London newspapers lived largely on the payments they received for publishing reports of company meetings, particularly the chairman’s

HISTORY OF

economic geology mining engineer.” (Rickard, 1922) TA now entered the third phase of his career, as an author of mining history and technical books. His most useful book was perhaps A Guide to Technical Writing, first published in 1908 and issued in revised versions at least four times, the last in 1948. This was probably the first mining Mining executives in London resented paying T. A. Rickard at work in the MSP office. Although this cartoon shows him style-book in the English advertising rates for official reports of pecking at a typewriter, he stated in his autobiography that he never used one. language. His most popular company meetings. (Rickard, 1920) (Rickard, 1920) books were Man and Metals (in two volumes) in 1932, A speech. Those were usually printed in the body of the paper History of American Mining, also in 1932, and The Romance of like real news. TA preferred to attend the more important Mining in 1944. meetings and report on them on the editorial pages. That After travelling to all parts of the globe in which mining was real journalism, telling readers what had happened at was important, and living most of his adult life in the United the meeting. Lord Harris, chairman of the Gold Fields States, TA made the surprising decision to retire in 1932 to group, was typical of those who were unhappy with having the Canadian city of Victoria, British Columbia, which he their company report placed on the advertising pages, and had visited many times. He had become disappointed with he cancelled all their advertising in the magazine. TA the U.S. response to the Great Depression and England was explained to critics that the success of mining journals no longer the country he had known before the war and the depended on advertising by mining suppliers that needed decline of the British Empire. Moreover, Victoria was the to reach the mining engineers who placed equipment orders. only place in North America that had both a British feel to it Financial success did not depend on the patronage of and a balmy climate where he could indulge his passion for promoters. golf year-round (he stated in his autobiography in 1937 that With English investment and mining activity sharply cur- he had played at least 250 different golf courses around the tailed by the Great War and MSP gradually declining in the world). He continued to enjoy his interest in history by hands of hired managers and editors, TA had to return to becoming president of the Victoria section of the BC San Francisco in March 1915. MSP soon recovered as the Historical Society from 1937 to 1941, and was a founding industry expanded to handle the war effort and much of the member of the Advisory Board of its quarterly publication. paper’s attention was focused on the new flotation process. Thomas A. Rickard died in Victoria in August 1953, two Within two years, enough material was published on the weeks before his 89th birthday. subject to make two books on flotation in 1916 and 1921. Also, TA was able to use his London experience to write insightful editorials on European affairs. When the industry Acknowledgment Except where noted, information on T. A. Rickard is derived from Rickard (1920 and began to decline at the end of the war, TA accepted an offer 1937). from EMJ to purchase MSP in July 1919. That marked the Rickard, T. A. (1906). After earthquake and fire. San Francisco: Mining and Scientific end of TA’s career as a journalist and publisher and the end Press, 194 p. of a publication that lasted about 60 years. Rickard, T. A. (1907). Journeys of observation. San Francisco: Dewey Publishing Co. TA summarized his views of technical journalism as follows: 255 p. (This book includes a reprint of a 1902 book written by Rickard and published by the Engineering and Mining Journal. It is titled Across the San Juan Mountains and “The urge to write is the moving spirit of journalism and the describes a horse trip within the mountainous mining districts in Colorado). impulse to criticize is the very life of editorial writing. Rickard, T. A. (1919). Mining: an investment, a speculation, or a gamble? San Sometimes this criticism hurts the feelings of friends … but that Francisco: Mining and Scientific Press, April 19,1919, p. 523. (This paper was delivered to the International Mining Convention at Vancouver on March 17). is the penalty of (the editor’s) position and it prevents many Rickard, T. A. (1920). A chapter in journalism. San Francisco: Mining and Scientific kindly spirits from becoming effective editors. … I am an expoPress, May 22, 1920, p. 745–757. nent of class journalism - that which is meant for a particular Rickard, T. A. (1922). An apologia. New York: Engineering and Mining Journal-Press, class, not the general public. … My own interest is mainly in April 1, 1922, p. 516–517. those engaged in mining and allied operations. … In a mining Rickard, T. A. (1937). Retrospect: an autobiography. New York, Whittlesey House, paper I reach people with whom I have much in common and McGraw-Hill Book Company, Inc. 402 p. whom I understand. In short, although a journalist, I am still a March / April 2011 | 87

HISTORICAL

metallurgy Social problems in the mining industry: a historical essay (Part 2) By Fathi Habashi, Laval University, Quebec City

Riots and massacres The harsh working conditions in underground mines, the potential for cave-ins and fires, meagre wages and mine management’s strong opposition of the creation of unions have, throughout the years, led to confrontations that resulted in property damage, injuries and even loss of life. Following are some of the more notable confrontations that took place around the world.

Miners’ revolt at Real del Monte in Mexico (ca. 1766) In the late eighteenth century, the silver mining industry of New Spain was in full swing, incurring great capital investment. The metal was exported to Spain and controlled by the Crown; however, each company had its own unique set of customs, traditions and rules. The first Mexican labour strike (also the first strike in North America) took place in the summer of 1766 at the Real del Monte silver mines, about 100 kilometres north of Mexico City. Although this was not the first time the miners had ceased to work – miners at Guanajuato had walked off the job over taxes being imposed on tobacco and over the expulsion of Jesuits from the site – it was the first time a walkout occurred because workers wanted to make changes to their contracts. Mine owner and well-known industrialist Pedro Romero de Terreros (1710-1751) implemented 12hour shifts. However, it was when he tried to cut wages to make up for the cost of having to drain water from one of the seams in the mine that the strike occurred. On July 28, 1766, acting on the advice of their priest, miners persuaded a scribe to draft a petition. Seventy signatures were collected and the workers’ grievances were presented to officials at the Royal Treasury in Pachuca. A few days later, on August 1, a new petition was drafted and dur-

ing a meeting, it was decided that it should be sent to the highest authority in the land – the Viceroy of New Spain in Mexico City. The situation quickly worsened. On August 8, four of the pivotal strike leaders were arrested and during the riot that ensued seven days later, both the district manager and a foreman were stoned to death. Over the next few days, approximately 4,000 armed men, women and children roamed the area looking to settle old scores. An emissary from the Viceroy eventually arrived on August 27 to consult with workers, foremen and management. The discussions resulted in a solution that was favourable to the workers and in antagonistic administrators being dismissed by the Viceroy. Over the next ten years, Spanish authorities and mine owners made sure that the recommendations were carried out.

The Mold riot in Wales (ca. 1869) It was the extensive development of the mining industry near the town of Mold in North Wales during the 18th and 19th centuries that first defined it as an industrial town. The iron, lead and coal that helped power Britain’s Industrial Revolution were all mined in this area. In the summer of 1869, some troubling events occurred. Miners were angered by a series of decisions made by the manager, an arrogant Englishman who had sought to ban Welsh miners from speaking their native language when underground. However, it was his announcement of a wage cut that sent workers over the edge, leading to the manager being attacked and his house vandalized. Two men were later arrested and sentenced to a month’s hard labour. As they were being taken from the court to be transported to jail, the angry crowd began throwing stones at the guards. In retaliation, nearby soldiers opened fire on the crowd, killing four and injuring dozens. These tragic events led authorities to change the way in which they dealt with public disorder. Schuylkill coal mines disturbances in Pennsylvania (ca. 1877) On June 21, 1877, a day also referred to as Black Thursday, ten Irish miners were hung for the murder of 24 mine foremen and superintendants in the Pennsylvania coalfields. Known as the Molly McGuires (also written Molly

Pedro Romero de Terreros 88 | CIM Magazine | Vol. 6, No. 2

Miners riot in Mold, North Wales

HISTORICAL

metallurgy Maguires), this secret band of men took revenge on the Reading Railroad and its mine managers for the terrible conditions at the mines. The group was infiltrated, captured, tried and hung by the Pinkertons and the railroad for these crimes.

Hocking Valley coal strike in Ohio (ca. 1884) Hocking County was founded in 1818 halfway between Columbus and Athens in the state of Ohio. In 1884, miners working for the Columbus and Hocking Coal and Iron Company went on strike when company management lowered wages by 25 per cent. During the nine-month strike, scab labourers were hired to replace the striking workers and armed guards to protect company property. Violence quickly erupted – seven mines were set on fire and three railroad bridges were destroyed. The strike finally ended in the spring of 1885 when workers agreed to the company’s terms. Haymarket riot in Chicago (ca. 1886) In October 1884, a convention held by the Federation of Organized Trades and Labor Unions set May 1, 1886, as the date by which the eight-hour work day would become standard. As the date approached, American labour unions prepared for a general strike in support of the eight-hour day. On Saturday, May 1, rallies were held throughout the United States. In Chicago, the movement’s centre, an estimated 40,000 workers went on strike. The following day, someone threw a bomb at the police. The blast and ensuing gunfire resulted in the deaths of seven police officers and an unknown number of civilians. Riots started and quickly became violent. Four anarchists were tried for murder and put to death, while another committed suicide in prison. The area where the inci-

dent took place was designated as a Chicago Landmark in 1992. The Haymarket Martyrs’ Monument in nearby Forest Park was listed on the National Register of Historic Places and as a National Historic Landmark in 1997.

Homestead steel workers’ strike (ca. 1892) The Amalgamated Association of Iron and Steel Workers was an American labour union formed in 1876 that negotiated national uniform wage scales on an annual basis, and helped fix working hours and improve working conditions. With the steel industry doing well and prices high, the union asked the Carnegie Steel Company for a wage increase, which management refused. When no collective bargaining agreement was reached, management locked the union out, built a high fence topped with barbed wire and equipped towers with searchlights. High-pressure water cannons were also placed at each entrance. A strike began on June 30, 1892, at the Homestead Steelworks in the Pittsburg-area town of Homestead, Pennsylvania, which culminated in a battle between strikers and private security agents on July 6, 1892. It was one of the most serious labour disputes in U.S. history. Earlier strikes had been largely disorganized mass uprisings of workers, however, the Homestead strike was organized and purposeful. Three hundred armed Pinkerton agents were hired to protect the plant. With the arrival of more than 5,000 armed mill workers from the nearby works, intermittent gunfire from both sides broke out and continued throughout the day. On July 12, more than 4,000 Pennsylvania state militia arrived and surrounded the plant. Company officials were back in their offices and another 2,000 troops camped on the high ground overlooking the city. The company quickly brought in strikebreakers

Commemorating the coal miners’ strike

Haymarket Martyrs’ Monument in Chicago

Scene in 1884 from the Hocking Valley, Ohio, coal strike showing Pinkerton’s detectives

A painting by W. P. Snyder of the 1892 Homestead strike March / April 2011 | 89

HISTORICAL

metallurgy working for the mine. This was a brutal and bloody period in Colorado’s history.

Virden massacre in Southern Illinois (ca. 1898) The precursor to the bloodshed at Virden in 1998 was the great strike of 1897 that comprised miners from West VirThe Virden monument honouring coal miners ginia to Pennsylvania to Illinois and established the first Ackton Hall Colliery strike of 1893 and re-started produc- agreements between coal operators and the United Mine tion. Desperate to find Workers. a way to continue the The unwillingness of the Chicago-Virden Coal Company strike, the union to adhere to the new higher wage scale caused miners to asked Carnegie Steel organize and fight back. The coal operators recruited to re-open negotia- African-American miners from Birmingham, Alabama, to tions, but manage- drive a wedge between white and black miners. They also ment refused. On July hired former police officers from Chicago and private detec18, 16 strike leaders tives from St. Louis and equipped them with new rifles. Dynamited concentrator at Bunker Hill, April 29, were charged with However, it was October 12, 1898, when a train carrying 1899 conspiracy, rioting and strikebreakers and armed guards approached the mine that murder. Five days the battle began. Eight union miners and four mine guards later, an anarchist shot and stabbed general manager Henry died and approximately 45 were injured, five of which were Clay Frick (1849–1919) in his office. Although seriously guards. A month later, the company granted the wage wounded, he survived the assault. This incident prompted increase and Illinois became a bastion of union power in the the collapse of the strike. The state militia retreated on Octo- coalfields for decades. On October 28, 2006, a monument was unveiled comber 13 ending the 95-day occupation. On November 20, the memorating the massacre. miners voted to return to work. A nationwide steel strike in 1919 was also unsuccessful. In 1935, the Amalgamated Association of Iron and Steel Bunker Hill strike in Idaho (ca. 1899) Workers partnered with the Steel Workers Organizing ComIdaho was admitted to the Union in 1890 as an undermittee. On May 22, 1942, the two organizations disbanded developed frontier state. It was still struggling to establish and formed the United Steelworkers. In 1999, the Bost itself politically and economically when the nationwide Building in downtown Homestead, the association’s head- depression occurred in 1893. For nearly a century, the quarters throughout the strike, was designated a National Bunker Hill Company was one of the premier mining and Historic Landmark. Today, it is used as a museum devoted smelting corporations in the United States. Located in Kelnot only to the strike, but also the steel industry in the Pitts- logg, Idaho, in the Coeur d’Alene region where the lead and burgh area. silver mine was discovered in 1885, Bunker Hill played a key role in the U.S. industrial development. However, at the Ackton Hall Colliery strike in the United Kingdom (ca. 1893) same time, it was the seat for unprecedented labour strife. In In 1893, Ackton Hall Colliery, in Yorkshire, was the scene 1887, the company encountered labour troubles. An armed of a sustained period of rioting, during which the colliery battle ensued and some mills were destroyed before work was wrecked. The military was called in to restore order, finally resumed. however, they fired into the crowd killing four men, two of In the early years, when miners tried to organize to whom were innocent bystanders. improve their conditions, they often found themselves fired and blacklisted. Trouble came on April 29, 1899, Cripple Creek miners’ strike in Colorado (ca. 1894) when a lockout, wage cuts and scab hiring triggered a vioThe Cripple Creek miners’ strike of 1894 was a five- lent response. Miners commandeered trains, opened fire month-long strike by the Western Federation of Miners in on scabs and proceeded to blow up the ore concentraColorado that resulted in a victory for the union. The strike tor – one of the largest in the world at the time. The govis famous for being the only time in United States history ernor of the state relied on both the National Guard and when a state militia was called in (May-June 1894) to sup- Federal troops to end the rebellion. Mass arrests were made port striking workers. The strike ended after a stand-off and ten men were tried and convicted. The company between the Colorado state militia and a private force closed in 1981. CIM 90 | CIM Magazine | Vol. 6, No. 2

TECHNICAL ABSTRACTS

CIM Extraction of dimension stone as a co-product of civil engineering works: A case study M. Cardu, Politecnico di Torino, Torino, Italy, and E. Lovera, Torino, Italy

journal

ABSTRACT The present study analyzes the feasibility of an odd operation: to obtain, using a properly tailored drilling and blasting scheme, blocks suitable for the production of dimension stone from tunnel driving. Clearly, a compromise must be found between the rate of progression and the achievement of workable blocks. As a case study, a civil work under consideration in northern Italy was examined. The work was planned to cross a conglomerate that has traditionally been locally exploited for the production of highly prized paving and lining stones with excellent strength and aesthetic features. Natural exposures and mined-out quarries were available for tests. The relevant rock data are given, blast designs are shown (within the limitations of contour accuracy), and the test program is described. RÉSUMÉ Le présent article analyse la faisabilité d’une opération inhabituelle : obtenir, par un programme de forage et sautage sur mesure lors du fonçage de tunnels, des blocs qui pourraient servir de pierre de taille. Il est évident qu’un compromis doit être établi entre le taux d’avancement du tunnel et l’obtention de blocs exploitables. Un ouvrage de génie civil en construction dans le Nord de l’Italie sert d’étude de cas. Selon les plans, l’ouvrage devrait traverser un conglomérat traditionnellement exploité localement pour des pierres de pavage et de revêtement de haute qualité et possédant d’excellentes caractéristiques de résistance et esthétiques. Il était possible d’effectuer des essais sur des affleurements naturels et dans des carrières épuisées. L’article comporte des données pertinentes sur le roc et les patrons de sautage (selon les limites de précision des lignes de contour) et il décrit le programme d’essais.

The development and commissioning of Ontario’s first diamond mine: Victor diamond mine A. Hempstock, McMaster University, Hamilton, Ontario, N. Morrison, AMEC Americas Limited, Oakville, Ontario, R. Welyhorsky, Detour Gold Corporation, Toronto, Ontario, and I. Holl, DeBeers Canada Limited, Timmins, Ontario

ABSTRACT The Victor diamond mine is located in the James Bay lowlands, 90 km west of the First Nations village of Attawapiskat. The project was the first of its kind in northern Ontario. The process plant was designed to produce a 95 to 98% by weight diamond concentrate through three stages of comminution, dense medium separation, and proprietary x-ray technology for final recovery. The plant was commissioned over a period of six months, commencing prior to substantial completion of construction. Through effective planning of the commissioning phase, the Victor mine start-up was safely completed nine months ahead of schedule. RÉSUMÉ La mine de diamants Victor est située dans les basses terres de la baie James, à 90 km à l’ouest du village de la Première nation d’Attawapiskat. Le projet a été le premier du genre dans le Nord de l’Ontario. L’usine de traitement a été conçue pour produire un concentré de diamants de 95 à 98 % (poids) au moyen de trois étapes de comminution, une concentration en milieu dense et une technologie brevetée de rayons-X pour la récupération finale. L’usine a été mise en service au cours d’une période de six mois, débutant avant la finalisation complète de la construction. Grâce à une planification efficace de la phase de mise en service, le démarrage de la mine Victor a été effectué de manière sécuritaire neuf mois en avance sur l’échéancier.

A geometric scaling approach to evaluate tire-oil sand interactions T. G. Joseph, University of Alberta, Edmonton, Alberta, and A. Sharma, Syncrude Canada Ltd.

ABSTRACT Ultra-class haul trucks operating in oil sand face operational and maintenance issues as a result of soft underfoot conditions (Joseph, 2002). With exposure to frequent high g loading events, tire life is reduced due to sidewall belt flexure and frequent ground contact. Therefore, an improved understanding of the interaction between tires and oil sand is needed. This paper examines the outcomes of a series of static and cyclic loading tests, performed using a scale tire on rigid, sand, and oil sand surfaces. Geometric predictions are made regarding the footprint area and vertical deformation of an ultra-class tire on similar surfaces. RÉSUMÉ Les camions de transport géants œuvrant dans les sables bitumineux sont confrontés à des problèmes d’opération et d’entretien en raison des sols mous sur lesquels ils travaillent (Joseph, 2002). Étant fréquemment soumis à des facteurs de charge élevés, la vie des pneus est réduite en raison de la flexion du flanc latéral et de ses nombreux contacts avec le sol. Une meilleure compréhension de l’interaction entre les pneus et les sables bitumineux est donc nécessaire. Le présent article examine les résultats d’une série d’essais de chargements March / April 2011 | 91

TECHNICAL ABSTRACTS

CIM

journal

statiques et dynamiques, effectués en utilisant un pneu à l’échelle sur des surfaces rigides, sablonneuses et bitumineuses. Des prévisions géométriques sont effectuées en ce qui concerne la surface d’empreinte au sol et la déformation verticale d’une classe de pneus supérieure sur des surfaces semblables.

Modelling cable shovel geometry and kinematics T. G. Joseph, University of Alberta, Edmonton, Alberta, and N. Shi, JPi

ABSTRACT A series of algorithms were developed to perform geometric and kinematic analyses of cable shovel dipper-ground interactions for a given set of mining face conditions. The routines examine and analyze (a) the position of the dipper in relation to the shovel; (b) the dipper in relation to the face conditions; (c) the dipper position in relation to possible interference or collision with crawler tracks during digging cycles; and (d) kinematic and geometric considerations with respect to any point on the dipper as it conducts a duty cycle. In all cases, field measurement verification provided good agreement (within 4% variance). RÉSUMÉ Une série d’algorithmes a été développée pour effectuer des analyses géométriques et cinématiques des interactions sol-benne d’une pelle à câbles pour un ensemble donné de conditions du front d’abattage. Les routines examinent et analysent (a) la position de la benne par rapport à la pelle; (b) la benne par rapport aux conditions au front de taille; (c) la position de la benne par rapport à une interférence ou une collision possibles avec les chenilles durant les cycles de creusage et (d) les aspects cinématiques et géométriques par rapport à tout point sur la benne alors qu’elle effectue son cycle de travail. Dans tous les cas, la vérification par des mesures sur le terrain a été concordante (< 4 % variance).

Effect of extraction water chemistry on the self weight consolidation of oil sands fine tailings W. G. Miller, WorleyParsons Services Pty Ltd., Perth, Australia, and J. D. Scott and D. C. Sego, University of Alberta

ABSTRACT As part of an overall study of properties and processes influencing consolidation of oil sands fine tailings resulting from different extraction processes, self-weight consolidation tests were performed. Fourteen 2 m and 1 m-high standpipe tests were instrumented to monitor the rate and magnitude of consolidation of seven fine tailings materials. Tests provided valuable information about the variation of consolidation related to differences in fine tailings material properties that result from a change in bitumen extraction process (caustic versus non-caustic). In addition, the effect of adding a coagulant to caustic fine tailings was measured. Test results are presented and discussed in terms of consolidation rate, long-term volume decrease, compressibility, and downward drainage. Non-caustic fine tailings had faster initial consolidation, which is important in tailings ponds for reducing storage capacity and returning decant water at a faster rate to the extraction plant. Similar results were obtained for caustic fine tailings with a coagulant addition. However, long-term settlement of the different fine tailings appears to converge to a similar value over time because it is then governed by effective stress.

RÉSUMÉ Dans le cadre d’une étude générale sur les propriétés et les processus qui influencent la consolidation des résidus fins de l’exploitation des sables bitumineux selon différents procédés d’extraction, des essais de consolidation sous le poids propre des résidus ont été effectués. Quatorze essais dans des colonnes montantes de 2 m et de 1 m ont été instrumentés afin de suivre le taux et l’ampleur de la consolidation de sept résidus fins. Les essais ont fourni de l’information importante sur la variation de la consolidation par rapport aux différences dans les propriétés des résidus fins qui découlent d’un changement dans le procédé d’extraction du bitume (caustique par rapport à non caustique). De plus, l’effet d’ajouter un coagulant aux résidus fins caustiques a été mesuré. Les résultats des essais sont présentés et discutés : le taux de consolidation, la diminution du volume à long terme, la compressibilité et le drainage vers le bas. Les résidus fins non caustiques avaient un taux de consolidation initiale plus rapide, ce qui est important dans les parcs à résidus pour réduire le volume d’entreposage et pour retourner l’eau de décantation plus rapidement à l’usine d’extraction. Des résultats semblables ont été obtenus pour les résidus fins caustiques auxquels un coagulant avait été ajouté. Toutefois, le tassement à long terme des différents résidus fins semble conExcerpts taken from abstracts in CIM Journal, verger vers une valeur similaire dans le temps puisqu’il est régi par Vol. 2, No. 1. Subscribe—www.cim.org la contrainte effective. 92 | CIM Magazine | Vol. 6, No. 2

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Freeport McMoRan's Tenke Fungurume operation, Democratic Republic of the Congo

MINES WITHOUT BORDERS The potential and pitfalls of mine development in West Africa

MINE PROFILE IAMGOLD’s Essakane Mine in Burkina Faso A Q&A with Pete Ondeng, director of Making Africa Work

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voices from industry

A 21st century St. Lawrence Seaway By Terence Bowles, president and CEO, The St. Lawrence Seaway Management Corporation, incoming president-elect, CIM, and former president and CEO, Iron Ore Company of Canada

anada's mining and shipping industries have enjoyed a historic and mutually beneficial partnership, dating back over half a century to the opening of the Great Lakes–St. Lawrence Seaway in the spring of 1959. In the decades since then, more than 2.5 billion tonnes of cargo – including iron ore from eastern Quebec and western Labrador, coal from western Canada and aggregates and road salt from Ontario – have moved safely, economically and efficiently through the waters of the St. Lawrence River and the Great Lakes. This historic partnership has changed greatly over the last half century. In the 1960s and 1970s, the seaway was bustling with traffic from morning until night. Upbound ships loaded with iron ore and downbound vessels carrying western grain kept the seaway's locks, canals and shipping channels operating at peak capacity until traffic declined sharply during the recession of 198182. Although the economy recovered, iron ore shipments did not return to their previous levels because American steel producers spent much of the 1980s downsizing and reducing production. More recently, the recession of 2009-10 delivered another sharp blow to both the seaway and the shipping industry. In 2009, the seaway's 50th anniversary year, cargo volumes fell 30 per cent to their lowest levels since 1961. Despite such adversity, the seaway, shipping companies and port authorities have invested well over $1 billion in the past three decades to ensure that the marine mode remains an efficient, competitive and reliable means of transport. The seaway has installed a number of leading-edge technologies and adopted many best practices to reduce transit times and enhance the safety of the system. These measures include a state-of-art traffic control system, remote control operation of bridges and the conversion of the Welland Canal locks from mechanical to hydraulic drives. As well, the seaway has been testing hands-free mooring technology that would eliminate the need to tie up vessels while transiting a lock and has implemented a self-spotting system for vessel mooring positioning. These initiatives hold the potential to raise productivity within our system. Canada's leading shipping companies have demonstrated their faith in the future of marine transport by undertaking major fleet renewal programs. Over the past decade, Montreal-based Fednav International and Canada Steamship Lines, and Algoma Central Corporation of St. Catharines, Ontario, have either ordered new vessels or

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94 | CIM Magazine | Vol. 6, No. 2

commissioned upgrades to existing ships, amounting to a total investment of more than $1 billion. Another positive sign is the emergence of small, yet innovative new shipping companies. In the mid-1990s, Hamilton-based McKeil Marine launched a tug-and-barge service and currently operates the largest fleet of these units on the Great Lakes. Shallow draft barges can sail in and out of ports inaccessible to seaway-max lakers. They can haul bulk commodities, liquid commodities and project cargo such as windmill blades. As well, they can be used on short-sea or long-haul runs. Increasingly, Canadians expect their governments and the private sector to pursue economic growth in ways that are environmentally sustainable – and marine transport has a vital role to play in achieving this objective. Ships consume less fuel, generate less noise pollution and fewer emissions than either trucks or trains. They are involved in fewer accidents and are responsible for fewer spills. Furthermore, increased use of marine transport would greatly ease the congestion on our roads and railways. One fully loaded, 222-metre laker can move as much cargo as 870 transport trucks or 225 rail cars. The St. Laurence Seaway Management Corporation (SLSMC) and its partners recognize the global nature of world trade and the incredible demands that places on primary producers in Canada's mining sector. Raw materials must move seamlessly and efficiently from pit to rail to port, and must travel thousands of kilometres to meet the demand for ores and metallurgical coals in Europe, China, India and other points in Asia. It is worth remembering that Canada's marine transport system offers safe, reliable and cost-effective solutions to the mining industry's logistical challenges. It should also be noted that the seaway and the shipping companies have excess capacity that can be put to work moving commodities from points of origins in Canada to the markets of the world. The seaway reaches 3,700 kilometres inland, from the Gulf of St. Lawrence to the head of Lake Superior. There are 50 ports on the system. The Canadian shipping industry has an enviable record of moving cargo quickly, safely and cost-effectively. As for the SLSMC itself, the investments in new technology and improved operating procedures ensure that vessels loaded with ore can move from the upper lakes to the lower St. Lawrence and onto the ocean in one smooth, hassle-free journey. The SLSMC will continue to refine its strategy, becoming more nimble and productive in the process. In collaboration with our stakeholders, the SLSMC is committed to enabling North American industries to thrive in a 21st century global economy. CIM

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