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CONTENTS CIM MAGAZINE | MAY 2010 | MAI 2010

NEWS 12

A gilded frontier Integration treaty with Chile has Argentina at the frontier of exploration and development by C. Kroll

How to strike a deal Model mine development agreement creates a foundation of best practices on which to build by H. Ednie

14 16

Playing hard in Halifax Students from across Canada compete in the Canadian Mining Games by C. West Africa opening up to resource development Revised mining codes and improving infrastructure reflects a continental commitment to mineral development by M. Schwartz

Record turnout at PDAC Convention Strong attendance reflects interest and optimism in the mining and mineral exploration sectors by J. Borsato

20 21

Canadian mining companies on the rise in 2010 With more money moving and rising commodity prices, the prognosis is good for the industry by P. Caulfield Encouraging developments Mining associations receive positive signals from both federal and B.C. provincial governments by P. Caulfield

UPFRONT 24

Mining at depth Undersea ore deposits near production

Tailings pond, 12010 AD Years of research yields

in the South Pacific by R. Bergen insight deep into the future of uranium and potash tailings by D. Zlotnikov

28 30

Liberating a treasure Coalbed methane â&#x20AC;&#x201C; an unconventional gas headed for the mainstream? by M. Kerawala Beyond tokenistic engagement Rio Tinto addresses gender equality in the pursuit of sustainable development by M. Eisner

Harmonizing upwards A discussion with environmentalist Mike Simpson on pursuing social justice without passing judgment by H. Ednie

102 4 | CIM Magazine | Vol. 5, No. 3

3rd International Conference on Uranium 40th Annual Hydrometallurgy Meeting August 15 â&#x20AC;&#x201C; 18, 2010 | Saskatoon, SK

COLUMNS 63 64 67 68 70 72 74 76 78 80 82 85 88 89 118

CIM NEWS 90 91 91

FEATURES 35

Chilean grad student interested in oil sands Mineral-bitumen liberation research yields

A man of integrity Distinguished lecturer

scholarship for UBC grad student by M. Eisner

Making the grade The challenges of climate and geography test the roads of Canadian mines,

An eye for detail The latest of generation of aggregates industry products put a premium on

and the expertise of their operators by H. Ednie efficiency and dust reduction by E. Moore

Georges Kipouros addresses materials and asset integrity by M. Eisner

FEATURED MINE

MINE EN VEDETTE 100

Re-imagining a natural resource Whitemud Resources’ metakaolin operation set to supply a new market with a proven product by M. Eisner

Cross-country tech talk / Présentations techniques inter-Canada CIM Distinguished by R. Pillo, M. Tremblay and N. Singh

La responsabilité sociale des entreprises, un concept en pleine croissance Établir des partenariats avec des collectivités locales pour obtenir de meilleurs résultats

The tie that binds Alastair Sinclair honoured with 2009 Selwyn G. Blaylock Medal by R. Pillo Crowsnest’s sweeping success A turnout for ‘in-turns’ at branch curling bonspiel by D. Declerq

Lecturer travels through Quebec / Un éminent conférencier de l’ICM visite des sections au Québec

CSR grows up The ethical and economic case for a pro-active approach to corporate social responsibility by G. Woodford

Supply Side by J. Baird MAC Economic Commentary by P. Stothart Innovation by H. Ednie HR Outlook by L. Forcellini Eye on Business by C. Kazaz Safety by G. Woodford Women in Mining by H. Ednie Engineering Exchange by H. Ednie Canadians Abroad by H. Ednie Student Life by J. Gonzalez Standards by G. Gosson and T. Lipiec First Nations by J.C. Reyes Mining Lore by C. Baldwin Parlons-en par J. Raymond et R. Therrien Voices from Industry by L. Nehring

Nouvelle image pour une ressource naturelle Whitemud Resources bien placé

Sharing knowledge and best practices Processors make their annual pilgrimage to Ottawa for CMP conference by J. Zinck and A. Nichiporuk Building for tomorrow CIM retools its information technology systems by R. Bergen Construire pour demain Le réingénierie des systèmes de technologie de l’information de l’ICM

HISTORY

pour une croissance verte avec son procédé métakaolin

107 110

Porphyry deposits (Part 5) by R.J. Cathro The beginnings of mineral processing research in Canada (Part 4) by F. Habashi

TECHNICAL ABSTRACTS 112 114

Canadian Metallurgical Quarterly CIM Journal

IN EVERY ISSUE

6 8 10 96 106 116

Editor’s message President’s note / Mot du président Letters Welcoming new members Calendar Professional directory May 2010 | 5

editor’s letter Building on strong foundations

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

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

ancouver 2010.” This phrase evokes powerful sensations of pride for most Canadians. At the recent Olympic Winter Games, Canada demonstrated its great leadership potential — both on the athletes’ podiums and on the world stage. For many CIMers, “Vancouver 2010” has also held an additional connotation, as it is to be the venue for the CIM Conference and Exhibition 2010. The location seems particularly fitting, as never before has there existed such a golden opportunity for the Canadian minerals industry to demonstrate its global leadership role. In this issue of CIM Magazine, we have taken the theme of this year’s conference, “Mining — our foundation for a better world,” both literally and figuratively. In the literal sense, we take a look at two foundational components of our industry — the aggregates sector and haul road infrastructure. When we were determining the editorial lineup almost a year ago, the industry was suffering the effects of a global recession. Federal stimulus spending on infrastructure was one of the few sources of optimism. We therefore decided that this spring would be a good time to review the impact these initiatives have had on the aggregates industry. Read what Canadian aggregate suppliers had to say about current conditions and concerns in Eavan Moore’s feature article, “An eye for detail.” Meanwhile, in “Making the grade,” Heather Ednie explores the ins and outs of the haul road programs of some of Canada’s most industrious operators, including Syncrude Canada Ltd., Teck Coal and the Iron Ore Company of Canada. As she discovers, the very well-being of an operation can hinge on the quality of its roadways. In the more metaphorical sense, we also take a look at the leadership role that Canadian operators are taking in the area of corporate social responsibility (CSR). In her feature “CSR grows up,” correspondent Gillian Woodford speaks to mining industry and civil society representatives to gauge their views on where the industry is on the CSR front. Despite differing views, there seems to be strong consensus on the need for partnerships in the pursuit of sustained economic and social development. I would like to take this opportunity to say a special thank you to our outgoing CIM president, Michael Allan. It has been a pleasure working with you this past year and your support of CIM Magazine has been greatly appreciated. To incoming CIM president Chris Twigge-Molecy, I would like to say that we look forward to a year of exciting new initiatives as we continue to build inroads in new directions.

“V

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Publisher CIM Contributors Jon Baird, Louise Blais-Leroux, Jeff Borsato, Correy Baldwin, R.J. Cathro, Peter Caulfield, Dale Declerq, Heather Ednie, Marlene Eisner, Lindsay Forcellini, Jordan Gonzalez, Greg Gosson, Fathi Habashi, Charles Kazaz, Minaz Kerawala, Cristina Kroll, Tony Lipiec, Eavan Moore, Lee Nehring, Robbie Pillo, Jasmin Raymond, Juan Carlos Reyes, Michael Schwartz, Nalini Singh, Sanil Sivarajan, Paul Stothart, René Therrien, Michel Tremblay, Christian West, Gillian Woodford, Janice Zinck, Dan Zlotnikov Published 8 times a year by CIM 855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Joe Crofts jcrofts@dvtail.com ext. 310 Janet Jeffery jjeffery@dvtail.com ext. 329

Angela Hamlyn Editor-in-chief

Keep the mail coming! cim.org editor

Copyright©2010. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada 6 | CIM Magazine | Vol. 5, No. 3

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president’s notes Looking forward How quickly a year goes by. And what a year! The past 12 months have turned out to be interesting and challenging for the Canadian mining industry and for CIM. The outlook for the industry, which had dimmed briefly, is certainly bright again. CIM continues to be the premier technical society for mining industry professionals to belong to in Canada. Building on our new strategic planning “blueprint” developed last year, CIM continues to grow and expand its activities in Canada and wherever Canadian mining professionals work worldwide. The success of CIM will continue to depend on our ability to provide knowledge and networking opportunities for those who work in the industry. This is accomplished primarily by putting on excellent meetings with good technical content and providing highquality publications that mining professionals want to read. This is what we excel at and what we will continue to do. CIM’s overall governance structure was an important issue that we dealt with this past year. The bylaw of CIM was updated for the first time since 1997, in order to bring the governance of the Institute in line with best practice governance for nonprofit societies. The membership voted and approved these changes in early 2010. The structure of Council is being changed to provide for more continuity, to better represent the various CIM constituencies and to reflect the current administrative practices within CIM.

A special note of thanks needs to go to the organizing committee for this year’s annual CIM Conference and Exhibition in Vancouver. The theme of the conference – “Mining – Your Foundation for a Better World” — is particularly appropriate in these turbulent times. Thank you once again for giving me the honour of serving as your CIM president for the past year. It has been my pleasure and privilege. I look forward to making a continued contribution at Council as past president in the coming year. I would like to extend a warm welcome to Chris TwiggeMolecey, your CIM president for 2010-11. I know that he has plans to work on extending the reach of CIM internationally and I look forward to helping him achieve this goal.

Michael J. Allan CIM President

Regard sur l'avenir L’année a passé à une vitesse folle. Et ce fut toute une année! Les douze derniers mois ont été à la fois des plus intéressants mais ils constituaient aussi un défi pour l’industrie minière canadienne et pour l’ICM. Les perspectives pour l’industrie, dernièrement moins brillantes, se sont certes redorées. L’ICM continue à être la société technique canadienne de choix pour les professionnels de l’industrie minière. En se basant sur notre nouveau plan directeur de planification stratégique, développé l’an dernier, l’ICM continue à croître et à développer ses activités au Canada et partout à travers le monde où travaillent des professionnels miniers canadiens. Le succès de l’ICM continuera à dépendre de notre capacité à fournir des connaissances et des occasions de réseautage pour ceux et celles qui travaillent dans l’industrie. Nous accomplirons cela en organisant des rencontres d’excellente qualité avec un bon contenu technique et en fournissant des publications de première qualité qui intéresseront les professionnels de l’industrie minière. Ce sont déjà nos points forts et nous continuerons à les mettre en pratique. La gouvernance générale de l’ICM a constitué un enjeu important que nous avons réglé au cours de la dernière année. Les règlements internes de l’ICM ont été mis à jour pour la première fois depuis 1997, car il a fallu aligner la gouvernance de l’Institut et les meilleures pratiques de gouver-

8 | CIM Magazine | Vol. 5, No. 3

nance des sociétés à but non lucratif. Les membres ont voté pour ces changements et les ont approuvés au début de 2010. La structure du Conseil est en voie de modification afin de fournir plus de continuité, de mieux représenter les diverses clientèles de l’ICM et de bien refléter les procédures administratives actuellement en cours à l’ICM. Je me dois de remercier tout spécialement le comité organisateur du Congrès et Salon commercial tenu cette année à Vancouver. Le thème du congrès « L’industrie minière – fondements pour un monde meilleur » — est particulièrement approprié en ces périodes de bouleversements. Je vous remercie encore une fois de m’avoir accordé l’honneur de vous servir en tant que président de l’ICM pour l’année qui vient de se terminer. Ce fut un plaisir et un privilège. Je me réjouis aussi à l’idée de continuer à contribuer en tant que président sortant durant la prochaine année. Je voudrais souhaiter la plus cordiale des bienvenues à Chris Twigge-Molecey, le président de l’ICM pour 2010-2011. Je sais qu’il compte travailler à élargir la portée de l’ICM au niveau international et il me fera grand plaisir de l’aider à atteindre ce but.

Michael J. Allan Président de l’ICM

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Hi Angie, I have been reading the February, 2010 issue of CIM Magazine and, starting with your own letter, found it to be timely and very interesting. Your observation about Whitwell Elwin and his take on "The Origin of Species" points out clearly how innovation is indeed the product of hard work, patience, persistence and partnership! Also your format of "news, upfront, innovation, featured mine, columns and CIM news is a great way of presenting what is pertinent to everyone. Mining to the power of 3 is a novel way of pointing out the importance of the Vancouver CIM Conference and Exhibition to our membership and the public. There is so much meat in this issue it will take a while to digest it all. The overall picture is that you and your staff are doing a great job, so keep up the good work. Stay warm, Maurice Hinton

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Hi Maurice, You have no idea how much we appreciate your positive feedback — which I immediately shared with my incredibly talented and dedicated editorial team. They work very hard to keep raising the bar on the editorial content as well as the publication’s format and look. Receiving kudos from one of our Fifty Year Club members is especially rewarding, as you certainly have witnessed a great deal of the evolution of the industry, making your input very valuable. Again, many thanks and hope to see you in Vancouver! Regards, Angela

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news A gilded frontier Harmonization treaty aids development across Argentina and Chile

Thanks to legislation that favours exploration and development in the region, Argentina has become the third largest gold producer in the Americas and, with Barrick Gold’s Pascua-Lama project, the country and its neighbour, Chile, are hosts of the first bi-national gold project. Pascua-Lama is located between the Argentine province of San Juan and the Atacama region in Chile. About 75 per cent of the ore body is located in Chile, while the remaining 25 per cent is in Argentina. According to Barrick Gold, the project is currently under construction and on schedule. It will demand an investment of approximately $3 billion and is among what Barrick counts as its next generation of larger, lower cost mines. The firm expects to obtain an average annual production of between 21.26 and 22.68 tonnes of gold and 992 tonnes of silver in the first five years. Studies have estimated 504 tonnes of proven and probable gold reserves, containing 20,354 tonnes of silver, with the mine life projected to be 25 years. According to the latest available data, the project’s construction will be finished by 2012, with production beginning in the first quarter of 2013. “Argentina has a very important expansion field for the gold business,” says Jorge Mayoral, the country’s mining secretary. “It already produces more gold than Chile and Brazil. It’s the third major producer of gold in the Americas and the fifteenth in the world.” What’s more, “we are going to change our positioning among producing countries to become the fourth or fifth mining country in the world,” he adds. The mining integration treaty signed by Argentina and Chile in 1997 supports that ambition. The treaty establishes the joint use of the 12 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of Barrick Gold Corp.

By Cristina Kroll

Barrick Gold's Pascua-Lama property straddles the frontier between Chile and Argentina.

resources that extend to both sides of the border to generate rational and integrated exploration and exploitation. It constitutes a legal framework that assures investors the same conditions in both countries for projects on the frontier. Pascua-Lama is one of five projects located in the territory that is included in the treaty. The other four — the Amos Andrés and Las Flechas gold and copper projects; the La Vicuña gold, copper and silver project; and the El Pachón copper project — amount to an investment of $8 billion. Also, last January, the Argentine Federal Planning, Public Investment and Services Ministry signed an agreement, in cooperation with the Chinese Natural Resources Ministry, in which companies from China would invest US$36 million to explore and develop projects in the Argentine territory. For this agreement, the Chinese Metallurgical Construction Group Corporation would invest in exploration studies in the free reserve areas

of San Juan, searching for gold and silver, in association with the Provincial Institute of Mining Exploration and Exploitation. Currently, there are eight gold projects already in production in Argentina and more than 15 projects in exploration, including the Cerro Moro project, managed by Fomicruz and Exeter Resource, and the Navidad project. At Barrick’s Veladero gold and silver project, the company invested US$70 million in 2009 to increase its crushing capacity from 50,000 to 85,000 tonnes per day. The Argentine mining secretary also recently approved plans by Andean Resources to develop the Cerro Negro gold and silver project in the Santa Cruz province. The company, listed on both the Toronto Stock and Australian Security exchanges, has invested over US$200 million to develop the project, which is expected to yield 8.5 tonnes of gold and 85 tonnes of silver annually. CIM

news How to strike a deal Model Mine Development Agreement a framework for governments and mining companies By Heather Ednie Mining companies and governments often encounter difficulties in negotiating agreements when the host country lacks a mature mining code. By the end of the year, however, such problems could be history, thanks in part to the creation of the Model Mine Development Agreement (MMDA). The MMDA, initiated in 2008, is the brainchild of the Mining Law Committee of the International Bar Association’s Section on Energy, Environment, Natural Resources and Infrastructural Law (SEERIL). Unlike in many other industries, in mining, there are no pro forma standard contracts to follow. Every mining agreement is unique. The MMDA project aims to identify common points with a view to enabling governments to understand what is usually included in mining-related agreements. “We’re building a compendium of existing practices,” explains Bob Bassett, head of the MMDA working group and a partner at Holland and Hart LLP in Denver, Colorado. “We’re not saying what you should do, but rather, what you can do.” The MMDA is a draft model that can be used by mining companies and host governments, especially for mining projects located in jurisdictions

www.ibanet.org without a mature mining code, or where an existing mining code needs to be supplemented by private agreement. The intention is not to have a nation adopt the model. Rather, the MMDA is simply another tool to consider, built to be easily amended for inclusion in a mining law or to be used as a guideline. To craft the model, an eight-member working group, comprised of legal and policy experts from around the world and an advisory committee of 50 lawyers, government experts, civil society representatives and academics, was assembled. Some 50 sample agreements were gathered from projects across the globe. These agreements were then analyzed for their approaches to tenure, financial conditions, rights and obligations, community-related conditions and contract terms. Each category was then further broken down. For example, the financial category was subdivided into royalties and duties, financing projects, records, statements, currencies, audits and other items. For the creative deconstruction phase of the project, clauses related to each analyis category were pulled out and examined individually. The team judged the value and utility of each. The first draft of the MMDA was cob-

bled together from the best of the analyzed clauses. Industry, government and civil society representatives are all providing input. “The first draft is being circulated to the advisory committee members for real, nuts-and-bolts practical input,” Bassett explains. “The aim for the final product is to come up with an agreement that has very simple language, dealing with all types of information typically involved.” He added that the product itself will probably be a very simple form contract with links to excerpts from actual agreements. “For example, take the clause that says the law of the country in which a mine is located will govern the project,” he explains, “It will be clickable, to access links to supporting documents — clauses and commentary — to share ideas and further details other countries and companies have included in their agreements.” The draft MMDA was presented at the SEERIL meeting on April 25 this year and is now being circulated for advisory input and analysis. The final document is expected to be released at the October meeting of the International Bar Association and to be available on the IBA website. CIM

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news Playing hard in Halifax Students put to the test at the 20th Annual Canadian Mining Games By Christian West In a vast gothic dining hall reminiscent of Harry Potter’s Hogwarts School, engineering students and sponsors from across the country sat at tables piled high with lobsters. That was the scene at Dalhousie University in late February when Suncor director Kevin Foley stood to give the opening address to kick off the 20th Annual Canadian Mining Games — three days of competition and camaraderie. The games began on February 25 with a career fair Students puzzle over headframe design hosted by industry sponsors. The technical events began the an effective and economical flow dianext morning. Despite what had been a gram for a graphite separation. In the late night for many of the competitors, next classroom, students fought their they showed up in full force for the way through Dr. John Hill’s notoriously challenges laid out by Dalhousie’s min- hard mineral ID event, in which he eral resource engineering faculty. A pair allowed only two minutes to identify of students from each school faced off each mineral and answer three or four in Dr. Ian Flint’s mineral processing questions about it before the next minevent, which entailed trying to build eral arrived. Twenty minerals later, the

14 | CIM Magazine | Vol. 5, No. 3

www.canadianmininggames.com overwhelmed competitors emerged from the room, ready for a break. Late in the afternoon, Syncrude hosted the Equipment Selection event, judged by Shaun Farrow, planning engineer at Syncrude, and this reporter. Teams of two were given an hour and a half to work through five equipment selection problems related to open pit mining. Two very bright students from Queen’s University emerged victorious. After the grueling events of the day, students and sponsors retired to the Halifax Feast Dinner Theatre for “Cod and Order,” a stimulating “whodunit” set in Glace Bay, Cape Breton. One might have thought that Friday night’s pub crawl (which was rumoured to have run until 4 a.m.) would have done in some of the competitors, but mining engineers are made of heartier stock than that. Once again, full teams showed up to work hard early Saturday morning, running the Bobcat obstacle course for Equipment Handling and competing in the Mine Rescue event, among others. Following an afternoon of dodgeball, students returned to the hotel to get cleaned up for the limo ride to Casino Nova Scotia, site of the awards banquet. The team from the University of Alberta claimed first place, with host Dalhousie University placing second and the University of British Columbia third. This year, CIM sponsored the games, providing financial and in — kind contributions to the organization of the games. Next year’s games will be hosted by the University of Alberta in February. CIM

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news Africa opening up to resource development Investment-friendly policies growing say speakers at MineAfrica event By Michael Schwartz

www.canadasachamber.com www.mineafrica.com

Photo courtesy of MineAfrica

Recent reserve discoveries explained, you get your and improved mining applicalicence. In the recent tion processes will bring a huge past, the country has boost to resource development granted 87 permits. in Africa. That was the message Rwanda is also clearfrom resource and policy develing the way for more opers at the Canada-South development. A new Africa Chamber of Business’ mining policy and min11th Annual Mining Breakfast eral certification process and MineAfrica’s 8th Annual this year followed an Investing in African Mining update of its legal code, Seminar held in March in explained the country’s Toronto. geology and mines In his keynote address, authority director Simon Village, Banro CorporaMichael Biryabarema. tion chairman and ex-MD, With regards to the legal World Gold Council focused issues associated with Rwanda’s geology and mines authority director Michael Biryabarema (right) seen here on two regions of Africa working the floor at the PDAC Convention, was among the presenters at the Mine mining in Africa, Peter already helping to meet global Africa breakfast. Leon, a lawyer with Webgold demand: West Africa, ber Wentzel, identified including Ghana, Africa’s second Risk is a hurdle for all investors. Botswana, Ghana and Namibia as the largest producer; and East Africa’s Village is confident that more African continent’s top three mining regulatory Lake Victoria region. Add South jurisdictions are clearing this obstacle. regimes. A report from the Fraser InstiAfrica’s yield, and the continent is He singled out high-transparency deal- tute places Botswana 36th out of 180 in producing 21 per cent of the world’s ings, low-corruption regimes and terms transparency (Africa’s highest) gold. speed in processing planning applica- and 18th of 71 in terms of favourable Overall, West African gold productions as essential elements in the mineral jurisdictions around the tion has grown massively in the last evolving African mining climate. world. Ghana is only 35th in jurisdicten years, noted Paul Burton, managCameroon is one of those jurisdic- tion but has reformed its mining code ing director of the mining equities tions. Its mines and industry secretary since the survey was published in Febresearch firm GFMS World Gold. of state, Calistus Gentry Fuh, was ruary last year. Namibia, ranked 34th, Côte d’Ivoire’s output has increased among the handful of government rep- does have a minerals act but it has not about 200 per cent and Burkina Faso’s resentatives who spoke at the seminar. been changed since 1992. 400 per cent. Both countries have Cameroon is Africa’s second largest Africa has been concentrating mines scheduled to start producing hydro-electric power producer after heavily on best practice, said Leon. this year. Mali, Guinea and Mauritathe Democratic Republic of Congo. Webber Wentzel, which has connia have also boosted production. In New railways and ports will facilitate sulted over 100 existing mining the next three years, more mines are the transport and shipping of miner- agreements, is currently creating a expected to open in Burkina Faso, als, he said. To encourage a speedier model mining agreement for developGhana and Mali. application process, if Cameroon has ing countries. It will be ready by the To the east, lands around Lake Vicnot made a decision in 45 days, Fuh end of this year. CIM toria in Tanzania and Rwanda are also emerging as important producers. The Democratic Republic of Congo boasts four new gold developments, one of which will have a capacity of 22 milGolden Dawn Minerals Inc. has appointed Frank P. Wright to its board of lion ounces and another of five million directors. Wright has over 25 years of mineral processing consulting experiounces, which would have that counence, having participated in a number of high-profile projects, including protry unseat Tanzania as Africa’s third grams undertaken for both major and junior mining companies. largest producer.

Moving on up

16 | CIM Magazine | Vol. 5, No. 3

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news Record turnout at PDAC Convention Risk management a hot topic at Toronto event By Jeff Borsato

18 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of PDAC

With a record-setting 21,000 attendees, the 2010 Prospectors and Developers Association of Canada (PDAC) International Convention, Trade Show and Investors Exchange closed on a high note in early March as commodities continued to attract interest from around the globe. PDAC Convention chairman Joe Hinzer was upbeat in his assessment of this year’s Toronto event: “It was a resounding success and it highlighted the diverse nature of the mining industry.” The over 120 nations and 49 delegations in attendence confirmed the global scale of the mining industry, as participants discussed ideas, exchanged information and built relationships across the spectrum of mining and mineral exploration interests. This year’s convention was “not just about finding resources but about how to raise exploration funds and properly asses risk,” said Hinzer. Hinzer’s upbeat assessment of African mining prospects was the result of a host of presentations detailing how, in a particular region, some exploration projects succeed and others fail. “It really comes down to how well you can asses risk in a given environment,” he explained. Risk analysis was a critical theme in the wake of the recent earthquakes in copper-rich Chile. These quakes highlighted the need to focus on not just the commodity, but also on the risks inherent to any project. With Bill C-300 (the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act) in front of the Standing Committee on Foreign Affairs and International Development for the next two months, its implications were a hot topic of discussion at a series of events and meetings during the four-day event. Many attendees sported antiBill C-300 badges as part of an effort to

www.pdac.ca

Delegates flooded the aisles of this year's PDAC Convention.

ensure members of Parliament know that this bill, if passed, could affect the livelihoods of the very people it means to help. Much more than a technical conference covering the nuts and bolts of the mining industry, the PDAC Convention addresses issues surrounding mineral exploration, extraction, development and infrastructure. Of course, the four-day event was not strictly business. The Olympic

medals photo booth and silent auction during the gala raised almost $18,000 for PDAC’s Mining Matters program. To close the convention, long-time market strategist Don Coxe took the stage to explain why the business of mining and geology will be “the place to be for the next 25 years.” There was strong support for his argument from the more than 900 student delegates in attendance. CIM

Giving back Sharing its wealth Osisko Mining Corporation and its executive vice-president, COO and founder, Robert Wares, have jointly gifted common shares of the company to McGill University in Montreal. The gift consists of 250,000 personal shares from Wares and 250,000 treasury shares from Osisko, worth approximately $4.1 million. Proceeds from these shares will go to the Department of Earth and Planetary Sciences and will finance two new tenure-track positions in economic geology (faculty scholars), as well as a permanent program of fellowships, scholarships and field trip funding for students enrolled in geological sciences. A portion of the gift will be matched by McGill’s McConnell Challenge Fund, created in 2008 by the J.W. McConnell Family Foundation.

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news Canadian mining companies on the rise in 2010 Consultants report resurgence in both major and junior sectors By Peter Caulfield

20 | CIM Magazine | Vol. 5, No. 3

www.pwc.com/ca is beginning to show signs Drilling at Kiska Metals’ Tide of strength again, the global property in northwestern BC demand for resources is returning. But because most mining and metals companies placed their exploration and production activities on hold during the recession, supply is scarce today.” Whelan said the shortfall of supply bodes well for the investment outlook in the mining and metals sector in 2010: “With increasing demand, optimism and enthusiasm have been renewed in the commodity market, particularly around gold, and around the outlook for the economic recovery.” Paul Murphy, Torontobased mining leader, western hemisphere, PricewaterhouseCoopers LLP, said the sunny outlook extends to the junior mining sector, too. “The junior recovery in In an interview, he noted that in the Canada has been fairly broad, espeyears immediately preceding the credit cially for development projects,” Murcrisis, the mining industry had “fallen phy said. “Liquidity has been returning in love” with debt and many compa- and commodity prices have increased, nies had taken on more than they especially in gold, copper and silver. could support when the downturn hit. And exploration projects have been “But since then, the banks have pulled finding it easier to raise money.” back and companies have had to look Murphy said the difficulties the for other sources of financing,” he said. U.S. economy has been going through China, especially, has become a and the resulting uncertainty for the major global player. “Canadian comglobal economy are the main reasons panies have been particularly open to for the high price of gold, while the foreign investment,” Whelan said. burgeoning economies of China and “And we’re not expecting a decrease in India are behind the increasing prices international appetite for Canadian of base metals. “The high price of gold mining companies, as Canada’s strong is remarkable, considering the Indian mining reputation translates to lower gold economy hasn’t been there the perceived risks for overseas investors.” way it was,” Murphy said. The Ernst & Young report also idenAll in all, he said, the mining industified a widening gap between supply try is returning to stability after a tenand demand: “Now that the economy month shake-up. CIM Photo courtesy of Kiska Metals

The mining sector has been buoyed by a renewed optimism that is being driven by increasing demand and resurgence of interest in the commodities market, reported Ernst & Young in its review of the top 100 Canadian mining companies. The report was one of a pair from the Canadian offices of international consulting companies. As evidence of mining’s renewed strength, report author Tom Whelan, Ernst & Young’s Vancouverbased mining and metals industry leader for Canada, highlighted some impressive figures. The aggregate market capitalization of the TSX 100 increased 74 per cent, from $187 billion in January 2009 to $325 billion in December. The capitalization requirement to be included in the top 100 was more than $430 million in 2009, an increase of 230 per cent from the 2008 threshold of $130 million. And finally, although more than two-thirds of the TSX 100 saw their stocks increase by 300 per cent, the share prices of 13 companies rose by more than 500 per cent. According to the report, the credit crisis has fundamentally changed how Canada’s mining and metals companies and their transactions will be financed in the future. “We believe this swing in the economic cycle will be governed by companies taking a conservative approach to debt in combination with a return to equity,” wrote Whelan. “And that equity will likely come from new sources such as Chinese investors and sovereign wealth funds.”

www.ey.com/ca

news Encouraging developments Associations eager for streamlined environmental assessment processes By Peter Caulfield Neither the federal budget nor the throne speech in British Columbia promised any big-ticket goodies to Canadian explorers and miners; however, reaction by mining associations to the intentions of these governments in their latest legislative sessions has been generally positive. The Mining Association of Canada (MAC) said in an announcement that it is encouraged by Ottawa’s pledge to develop a clearer process for project approval, as well as by its intention to support Northern development and Aboriginal Canadians. “The government’s commitment to responsible development of Canada’s energy and mineral resources by untangling the daunting maze of regulations that needlessly complicates project approvals, replacing it with simpler, clearer processes that offer improved environmental protection and greater certainty to industry, is a positive signal that Canada is serious about responsible resource development,” said MAC president and CEO Gordon Peeling. “This commitment,” he continued, “is a positive signal that the government recognizes that Canada’s mining industry is integral to this country’s recovery and long-term prosperity.” The Northern Regulatory Improvement Initiative, designed to support the acceleration of the review of resource projects in the North, also earned support from MAC, which called it “a positive signal” that addresses the potential economic prosperity the North can provide. Out in British Columbia, Lena Brommeland, chair of the Association for Mineral Exploration BC (AME BC), said that in its budget speech the BC government demonstrated “a prudent commitment” to return to balanced budgets in 2013-14. “It provides a certainty we’re all looking for,” she added. Brommeland said the AME BC also welcomed the threeyear extension of the BC Mining Flow-Through Share Tax Credit until 2013 and its commitment to the electrification of Highway 37 in northwestern BC. The association decried, however, the government’s decision to cut the budget of the Ministry of Energy, Mines and Petroleum Resources by approximately 14 per cent, given that revenue

from the metal, coal and minerals sector is expected to add $1.15 billion to the provincial government’s treasury. As on the federal level, the provincial mining association applauded the BC government’s “concerted efforts to reduce duplication of effort in permitting and environmental assessment processes with the federal government.” In the provincial Throne speech, the government said “the recent Supreme Court of Canada ruling on the Red Chris mine project demands immediate action to rationalize public approvals both within our government and between governments. The government will work with other provinces and the federal government to establish one process for one project.” Jamie Lawson, assistant professor in Canadian politics in the political science department at the University of Victoria, says the BC budget speech shows a shift in what the provincial government sees as BC’s primary resource industries. “Until recently forestry was the big contributor to provincial revenues,” Lawson said. “But now, mining and oil and gas are in much better shape and in a position to contribute more to the government coffers.” CIM

Achievements Komatsu America Corp. was recognized by the office of Los Angeles Mayor Antonio Villaraigosa for its commitment to green technology and for its Hybrid PC200LC-8 Excavator. The certificate of recognition was presented to Dave Grzelak, chairman and CEO of Komatsu America Corp., by Stephen Cheung, vice-president of Economic and Business Policy, Mayor's Office, City of Los Angeles. May 2010 | 21

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upfront MINING IN NEW FRONTIERS by Ryan Bergen

Mining at depth Seafloor massive sulphide deposits closer to development Photo courtesy of Nautilus Minerals

expects a mining licence to follow this year for its Solwara 1 tenement off the eastern shore of the mainland. There are no shafts to sink, no housing to construct or overburden to remove. A seafloor mining tool can be lowered down to cut and vacuum up the rich deposits. “Depending on financing, we expect to start production in mid-2012,” says Scott Trebilcock, vice-president, business development and investor relations at Toronto-based Nautilus. The property is 1,600 metres below the surface of the Bismarck Sea, a tiny but potentially lucrative piece of the more than half million square kilometres in the South Pacific that the company has either secured or applied for prospecting rights to. Remote operated vehicle (ROV) collects samples of SMS at Solwara 1 in Papua New Guinea, 2007

IM Distinguished Lecturer Steven Scott’s presentation on seafloor massive sulphide (SMS) mining has grown over the years. He has added new information on exploration tenements, updated the activities of the handful of mining companies exploring the oceans for deposits rich in copper, gold, silver and zinc, and noted the creation of new ventures — most of which the retired University of Toronto faculty member has consulted for. He has created versions of his presentation that cater to the expertise of his audience and translated his vast knowledge of undersea hydrothermal geology into French. The most significant development, however, may be what has been removed. Until recently, the subtitle of Scott’s talk, “The dawning of a new industry,” ended with a question mark. Seafloor mining is no longer beyond the horizon. Last December, Australia-based and TSX-listed Nautilus Minerals was granted an environmental permit from the government of Papua New Guinea, and the company

24 | CIM Magazine | Vol. 5, No. 3

Gilded black smokers

Ore deposits on land give only subtle hints of their presence. Under water, active hydrothermal vents in many of the seafloor sulphide zones announce themselves with plumes of “smoke” made black by the precipitation of dissolved metal sulphides and other minerals. Chimneys rich in minerals belch water that has seeped through fissures in the seafloor and been superheated and enriched by the magma below. These black smokers exist across the world’s oceans, churning out natural resources with industrial efficiency. According to the 2007 NI 43-101 estimate of the mineral resources at Nautilus’ Solwara 1, the indicated resource is 870,000 tonnes with a copper grade of 6.8 per cent, with 23 grams of silver per tonne and 4.8 of gold. The inferred resource is 1,300,000 tonnes with a copper grade of 7.5 per cent, 37 grams of silver per tonne and 7.2 of gold. That high grade dictates the scale of underwater projects, says Scott. “On land, we geologists are looking for elephants. In the sea, we can do well just finding the elephant turds, so long as there are enough of them.”

upfront MINING IN NEW FRONTIERS

Breaking ground underwater To chart the future of deep-sea mining, Scott looks back to the development of the offshore oil and gas industry. Since the 1940s, when the first offshore platforms began producing, the oil drawn from beneath the oceans has become a large portion of the overall supply, about 30 per cent and growing. It is also one of the well-established industries from which deep-sea miners will draw technical expertise, says Trebilcock. “All the different components — the hydraulics, the pressure seals, the control systems, the tracks — are proven technologies. The key piece of equipment, the seafloor mining tool, even though it is custom-designed for our application, is based on deep-sea trenching machines.” The ore, Trebilcock explains, will be cut from the seabed by the mining tool and then pumped as a slurry up a 1.6-kilometre pipe to the surface. On ship, the ore will be dewatered and transferred to a barge. “Once we get it onto the ship, it’s like any other volcanogenic massive sulphide process,” he says. “It’s the same metallurgical processes. We float it and get a copper concentrate with gold credits.” In response to the new challenges posed by deep-sea mining, the fledgling industry is generating plenty of unique expertise related to exploration and development. “Right now, we are picking the low-hanging fruit,” says Trebilcock. “We have been finding the places where there is an active smoker system or there is a deposit sticking right out of the seabed. Of course, there are also a lot of dead systems that aren’t actively venting anymore and that are potentially buried under sediment. Those systems are harder to find because we haven’t developed the deep-penetration seismic and EP tools we need, yet. Geophysics will be particularly important to the growth of this industry. We currently find these deposits through geophysical and geochemical signatures: the pollution from the smoke in the water, the helium isotopes the minerals give off as they decay at depth, or the electromagnetic or electrophysical signal you get.” Developing an environmental management framework for the proposed mining of Solwara 1 also had Nautilus in uncharted waters. When Samantha Smith was offered the job of environmental manager three and a half years ago, the marine biologist left the University of Toronto and embraced the challenge. “This was an environmentalist’s dream come true. To have the environment represented at the dawn of a new industry inspired me to jump ship,” recalls Smith. “The tricky part was understanding what the impacts would be and then finding the people who had the capability of doing those studies in the deep sea.” To ensure that the list of impacts was comprehensive, Nautilus consulted a wide range of stakeholders, including Papua New Guineans and international NGOs, anthropologists and hydrothermal vent ecologists.

People who lived in the area were worried about the impact mining would have on the local fish, an important part of their daily diet. Easing those concerns was relatively easy, says Smith. Few species live around the deposits and those that do — mostly snails — are inedible due to their high metals content. The international community focused on the impacts mining would have on seafloor life. To mitigate those effects, she says, a sample of the various species that populate the prospective mine site will be moved to previously mined areas, where artificial substrates will be anchored to provide habitat and encourage recovery of native species. In addition, says Smith, a reserve area will be set aside a few kilometres away from the Solwara 1 site. Water separated from the ore will be returned to the seafloor. And, she adds, discharging the water at the bottom will also help draw the mined slurry to the surface.

Deep frontiers Solwara 1 is just one of more than 600 active seafloor hydrothermal vents known to exist, and there are likely many more active and extinct vents with massive sulphide deposits dotting the thousands of kilometres of ridges and volcanic arcs beneath the planet’s oceans and seas. Many of those deposits will not be mined, says Scott. Depth is an issue, although surmountable, and, beyond that, international waters are presently of little interest to industry. The United Nations’ International Seabed Authority (ISA) governs international waters and, although it has interest in fostering development, according to Scott, the industry is leery of having to deal with a large number of countries in the ISA rather than a single mining-friendly government like Papua New Guinea. Mining will likely be confined to waters and seabed within a country’s exclusive economic zone, the 200-nautical mile area that extends beyond the coastline. By this definition, France, with its chains of small islands and atolls in the South Pacific, has exclusive rights to 11 million square kilometres of the world’s seafloor, more than any country except the United States, which has about 300,000 square kilometres more. Canada ranks seventh with 5.8 million square kilometres. The promise of seafloor massive sulphide deposits is impressive. That much was clear to Scott the first time he explored smoking hydrothermal vents in a submersible in 1982. “Those are going to be mines one day,” he recalls thinking. In terms of ore genesis, the SMS deposits found at the bottom of the ocean are not much different from the ores of the Noranda region of northern Quebec, which once were underwater as well, he says. From this perspective, the mining developments off the coast of Papua New Guinea, despite being delayed by the recent recession, are several million years ahead of schedule. CIM www.nautilusminerals.com May 2010 | 25

upfront S U STA I N A B I L I T Y by Dan Zlotnikov

Tailings pond, 12010 AD Photo courtesy of Areva Resources

A Canadian scientist looks far into the future

McClean Lake's JEB tailings management facility

A lot can happen in ten thousand years. This is longer than the lifespan of any human civilization to date, and longer than all but the sturdiest human-built structures can remain standing. Yet predicting what will happen over this time frame — and building to withstand anything from earthquakes and floods to beaver infestations — is a challenge uranium mining operators must overcome. The millennia-long time frame is one mandated by Canada’s nuclear regulators, explains Jim Hendry, a professor of hydrogeochemistry and Cameco Research Chair at the University of Saskatchewan. The regulators place the same restrictions on uranium mine tailings as those placed on nuclear waste, says Hendry. “What we have to do is take what we know about the tailings and ask, ‘What could happen in 10,000 years? What could change?’ And some of these changes could be arsenic, selenium or molybdenum leaching into a solution.” Coming up with progressively more accurate answers to this question is what Hendry and his team have been working on for almost 20 years. The main danger in the tailings is not radiation, but a mix of arsenic, selenium and molybdenum. All three are highly toxic and can pose a significant danger if they happen to leach into the groundwater. Radiation is a lesser concern; the tailings contain a small amount of radium-226. But Hendry points out that radium is fairly short-lived, the element’s half-life being roughly 1,600 years — the term “short-lived”

26 | CIM Magazine | Vol. 5, No. 3

having a very different meaning for geologists. To construct a reliable model for what arsenic, for example, might do over a few thousand years, Hendry first had to find out where it was now. This was not as straightforward a question as one might first think because in the overall mass of earth and clay, the dangerous minerals comprised a very small percentage and could be attached to any number of otherwise harmless particles, in any number of ways. “It’s only because of synchrotron radiation, the high-energy beam lines, that we’ve been able to answer this,” says Hendry, looking back on the last decade’s worth of efforts. “Now we know fairly well where these materials sit, what solids they’re on, what they’re associated with, what the binding angles are, and so on.” Most recently, Hendry has been using the information to run experiments, attempting to further refine and validate the models for what factors might influence the tailings ponds in the very distant future.

Uranium Despite the extremely long outlook, there are some shortterm implications for the uranium industry’s work. Hendry’s team has been working in partnership with Cameco and, more recently, AREVA Canada. Today, Cameco is looking at modifying their extraction process based on Hendry’s results. Hendry explains: “Now that we understand the geochemical controls on present-day tailings, the question is, can we go back into the mill process and modify that process to improve on the minerals going into the tailings? So, if there is a potential that one of the minerals may form and not be very stable at certain pH levels, we’ll say ‘we’re not going to precipitate that mineral. We’re going to consider precipitating this other mineral by changing the mill process, and the new mineral may have a lower solubility and, thus, fewer chances of contaminating the groundwater.’” Hendry’s work is not limited to the uranium industry — most mining operations create tailings ponds and must ensure the long-term safety and stability of those. Radium is the only aspect that is unique to the uranium industry, he says; most of his lab’s work can be applied elsewhere in

upfront SUSTAINABILIT Y

the mining world. Illustrating this is a second set of projects Hendry has been working on, looking at the long-term movement of salts from tailings generated by the potash industry.

Potash “When potash producers take potassium chloride salts out from approximately 1.2 kilometres under the ground, what you’re left with are tailings ponds that are very high in salt content; it’s a high-salt brine,” Hendry says. The salt concentrations are so high that Hendry cannot recall having ever seen the ponds freeze, even when the Prairie winter temperatures drop to minus 40 degrees Celcius. The salt brine is not without its dangers. There have been cases of brine ponds migrating under the surface, and in a few cases, this migration was blamed for affecting the quality of residential water wells. The challenge when it comes to salt transport, explains Hendry, is in making sure your tailings pond is built on an impermeable geologic medium. Here too, what would be a straightforward engineering task is made difficult by the time spans under consideration — a potash tailings pond may remain undamaged for a few hundred years. The geological deposits across most of Canada go a good way to ensuring that, as the ponds, in many cases, are located on glacial till. The till, says Hendry, is a uniform mixture of silt, clay and sand: a highly impermeable layer, through which brine moves at very slow rates. Hendry’s experiments peg the hydrotransport rate as low as one metre per thousand years. “That is, if the till layer isn’t fractured,” he adds. “And it’s fractured quite often. If the till is fractured, all bets are off. You can move salt rapidly over great distances, because the porosity increases considerably.”

The question of how the salt moves through fractured and unfractured till has kept Hendry’s team busy for a number of years now. He and his team have had to do a lot of development of testing techniques because most of the commonly used approaches were designed to work with fresh, or slightly salty (brackish), water and are not usable with the extreme salt concentrations of brine ponds. Despite the fractured and unfractured tills — and below them an even thicker and less permeable layer of shale — comprising the majority of Western Canada’s geological structures, Hendry says most researchers focus on the aquifers. The main reason for this, he feels, is the difficulty in getting the less permeable deposits to yield scientific data. The till and shale are “aquitards,” a name stemming from their inability to pass water. “To get data from these materials, it’s not like an aquifer, where you can put a well in and collect a sample right away,” explains Hendry. “You have to put a well in, design it so you don’t contaminate it, and just wait and wait and wait; you get a very small volume of water because it’s so tight — it yields water very slowly.” Getting sufficient data to publish scientific results can take 10 to 15 years, Hendry adds, and funding for such a long time frame is hard to secure. But despite the challenges — or possibly because of them — Hendry is planning on going even deeper. Next on the list is the shale itself, where water movement is measured on a scale of millions, rather than thousands, of years. “When we do our transport work on the tills, we need to define a lower boundary,” he explains. We often use the upper shale contact layer for that. But understanding what happens below that gives us a more complete base to build on for this information. Very few people have looked at this material in the context of salt transport.” CIM

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upfront TEC HNOLOGY by Minaz Kerawala

Liberating a treasure Photo courtesy of CSUG

Coalbed methane is a resource of great potential that is misunderstood

Drilling for coalbed methane

ith mounting apprehension over climate change and energy security, the world is becoming increasingly concerned with fuel efficiency. However, while fuel efficiency is diligently scrutinized, the efficiency of fuels is often overlooked. Not all fuels are alike. For example, anthracite coal has a calorific value of 27 megajoules per kilogram (MJ/kg). Gasoline’s is 47.3 MJ/kg, while methane’s is 55.5 MJ/kg. This means that, ounce for ounce, methane yields twice the energy that anthracite does. So, should the energy industry abandon its search for oil and coal and look for gas instead? No, but we surely should be extracting gas at every available opportunity. Fortunately, a lot of the known reserves of methane are associated with known deposits of coal, in the form of coalbed methane (CBM). CBM refers to methane that lies adsorbed in coal’s matrix. CBM differs from conventional gases in that methane is in a near-liquid state, lining pores within the coal. CBM also contains very little heavier hydrocarbons and no natural gas condensate. For CBM to be released, the coal seam has to be depressurized by means of wells. This allows methane to desorb from the coal and flow as a gas up the well to the surface.

Speaking for the fuel of choice One body that fully understands the merits of CBM Calgary-based Canadian Society for Unconventional Gas 28 | CIM Magazine | Vol. 5, No. 3

(CSUG), which supports and promotes the exploration and development of unconventional gas resources. A not-for-profit memberbased organization with about 130 members, CSUG is funded by its members, who, according to CSUG president Mike Dawson, “are energy companies of varying sizes — from the big majors to the small independents, service sector companies, consultants and some government representatives.” Bringing about better communication between the unconventional gas industry and various levels of government, communities, stakeholders and First Nations is an important part of CSUG’s mandate. To fulfil it, the society relies on the fund of expertise its members share. “We provide information, take on speaking engagements, develop media material, and maintain a comprehensive website,” says Dawson. “Our greatest strength is in the provision of factual, timely information about unconventional gas to our wide and diverse audience.” While things have come a long way over the past few years, CSUG’s work is still challenging. “As the industry expands into areas where oil and gas have not traditionally been explored, there commonly is hesitation and resistance among communities and residents who wonder what natural gas exploration would look like,” Dawson continues. “Our role is to be a resource that all parties who may be potentially affected by development can utilize to improve their knowledge about the unconventional gas industry.” Part of the problem stems from nomenclature. “People hear the word ‘unconventional’ and become concerned,” says Dawson. “Actually, unconventional gas is simply natural gas from unconventional sources.” He adds that over and above providing information to stakeholders and communities, engendering an understanding among government agencies about the nuances of unconventional gas is also an important role of the society. “Just because it’s natural gas, does not mean that reservoirs can be treated in the same way as conventional gas,” explains Dawson “Regulations need to reflect these differences.” However, he adds, “The government is responding to some of the concerns we have raised and is becoming more supportive.”

upfront TECHNOLOGY

From the perspective of energy security in North America, CBM and other unconventional gas sources are very important indeed. “If there was a large-scale switch to natural gas utilization in the transportation sector, there could be a significant offset of imported oil,” Dawson says. “More important, however, is the role that natural gas can play in both Canada and United States in achieving greenhouse gas emission reduction targets. Natural gas is the cleanest form of energy from hydrocarbon-based fuels and is abundant through much of North America. That’s a good-news–bad-news thing for Canada because we export a lot of oil. But there is the opportunity for Canada and North America to increase the utilization of natural gas and reduce emissions. To achieve this fundamental shift in energy supply would take a strong commitment by government, but it is doable.” Dawson’s view is that “natural gas should be the energy fuel of choice from the environmental point of view if we are to balance ecological concerns with economic sustainability.”

Getting it out of bed In his day job, Rob Galant, who serves on CSUG’s board of directors, is a geoscience manager at Nexen Inc., a Canadian energy major with significant CBM interests at Corbett, Doris and Thunder in the Fort Assiniboine area of central Alberta. About 19 per cent of Nexen’s Canadian gas production comes from its CBM operations. Galant explains that CBM extraction is a complex, multidisciplinary process, the first step of which is the characterization of coal. “Coal deposits of different ages have to first be mapped out. That entails geology and geophysics. After that, CBM extraction involves the drilling of test wells and, if the results are encouraging, a pilot program of five to 20 wells is undertaken. Only when that succeeds do you move on to a larger production operation.” It could take about five years to go from testing to commercial production. Nexen began investing in CBM resources around 2003, Galant recalls. “We started with a vertical well program, but the results from that just weren’t that encouraging. We therefore decided to expand to a horizontal well program and got better production rates.” The move was significant. Galant elaborates, citing the example of Nexen’s Corbett operations. “Typically, with a vertical well, we encounter six to seven coal seams. Of those, only about two are prospective. The main coal seam we chase is 2.5 metres thick. If you’re intersecting Corbett coals with a vertical well, your well bore is exposed to just seven to nine metres of coal. But if you chase the main 2.5 metre-thick seam with a well that tracks within it horizontally, you will have an interface with over a kilometre of coal that extrudes gas into the well.” Galant concedes that the costs of horizontal well-drilling can be up to four times higher than those of comparable vertical well-drilling. However, he says, “You get more than eight to ten times the yield.”

Nexen holds more than 725 net sections of land in Alberta with CBM potential, some of which overlie existing conventional producing lands. CBM extraction does not impact their conventional potential. “For starters, Government of Alberta regulations do not allow us to comingle conventional and unconventional gases,” says Galant. “So, if we encounter some conventional potential in any zone, we wait for its CBM potential to be depleted first. Or, if it is strongly warranted, we would drill a separate well for that zone.” Rarely, the drill fluids from one zone can damage another zone. If that is deemed likely, alternative drilling fluids are used. However, by and large, CBM extraction does not adversely impact the conventional gas potential of overlying zones. An important difference between conventional gas production and CBM extraction pertains to the production pattern over time. “In CBM extraction, we produce a whole lot of water, before we produce any gas,” Galant says. “In a conventional play, typically, your first day of production is your best day of production. With our CBM operations, the best production day could be anywhere from three months to a year down the road. Good water production at the outset generally heralds good gas production later because formations that bear water well, also hold gas well.” Nexen, like other producers, takes the ecological challenges of CBM extraction seriously. “All the produced water is returned to the subsurface to zones that can be proven to be water-bearing, porous and permeable,” reports Galant. “We work closely with regulators to ensure we get it right.” Every attempt is also made to minimize the surface footprint of operations. “We typically have just one well pad from which we drill horizontally for four sections, he adds. “That gives us a surface expression of one large pad rather than four.” Despite its skewed production pattern and the technical challenges it poses, CBM has progressed from a concept to steady production. As with many conventional and unconventional gas ventures, low gas prices have affected CBM gas exploration and development. When prices rebound, Nexen will need to evaluate the value created by CBM versus other opportunities in the company. However, much of the risk has been removed by strong technical work since 2003. “We’ve proven ourselves through production,” Galant declares. “We have shown that the wells do come around to stop producing water and start producing gas.” Nonetheless, knowledge of CBM can still improve. “In the past, when you logged a well, you would put some detail into your description of sands, silts and shales,” says Galant. “But when you hit coal, you’d simply write ‘coal,’ and keep going, without giving any details. The oil and gas industry’s understanding of gas is still lagging behind the understanding of other rock types. Like any other formation, play or prospect, you need to understand coal thoroughly.” CIM www.nautilusminerals.com May 2010 | 29

upfront EDUCATION/OUTREAC H by Marlene Eisner

Beyond tokenistic engagement Rio Tinto’s new gender guide charts a path towards true inclusiveness

Photo courtesy of Rio Tinto

Rio Tinto Exploration conducts community consultation in Madhya Pradesh, India

ane Gronow readily admits that her view of the world is coloured by gender issues. Hired three years ago as a principal advisor for community relations by Rio Tinto, she was charged with leading the development of the 104-page company document, “Why gender matters: A resource guide for integrating gender consideration into communities work at Rio Tinto,” that was released in November last year. As a former program coordinator for international humanitarian and development work at UNICEF and Oxfam, Gronow has had a bird’s-eye view of the gravest inequities in the most vulnerable populations, from human trafficking to the sexual exploitation of children. Mining, of course, could not be more different from the worlds Gronow once worked in. Nevertheless, being a traditionally male-dominated industry, it experiences gender inequalities across all sectors, from exploration and production all the way up to the highest echelons of corporate board rooms.

How it began The need for a gender guide arose when one of Gronow’s colleagues requested some guidance for addressing gender concerns at an exploration site in South America. “The project was ramping up quickly, and a number of the men were getting jobs,” recalls Gronow. It being a subsistence community, sharing had been the norm. “But now, men were getting the money and were spending it on non-essentials like alcohol and motorbikes,” says Gronow, explaining why, in a place where local hiring is regarded as a major benefit of mine development, the women 30 | CIM Magazine | Vol. 5, No. 3

were actually becoming more marginalized by the local hiring practices of the operation. Gronow and others began looking at a number of models in the developing world, and as they started putting together a strategy, they realized that no one was looking at it from a business perspective. It then became apparent that it was important to develop an answer to the question, “How does gender impact our business?” The answers were disconcerting. “There was a gap to be filled that was created by our impact as a mining company on women and gender relations, particularly in non-OECD countries,” Gronow says. “We had a negative impact and, in many communities where women were vulnerable, we made it worse.” As a result, work began with the leadership and support of Bruce Harvey, the global practice leader for communities. “Rio Tinto worked with the University of Queensland’s Centre for Social Responsibility in Mining (CSRM) to start off with something small — a position paper articulating the business case for gender-sensitivity,” Gronow explains. Gradually, over the course of two years, these preliminary investigations took the shape of the gender guide. It comprises a combination of practical guidance: 11 case studies and a section on background reading. In addition to determining ways to encourage gender equality, the guide also seeks to promote diversity in all sectors of the industry — a strategic priority for Rio Tinto. “With the male orientation of mining, we felt that women require particular attention,” says Gronow. “But it’s not just about gender; it’s about gender and diversity. At Rio Tinto, diversity is defined as diversity of perspective. We want to maximize value from access to a range of skills, experience and world views, which requires the involvement of both men and women,” she elaborates. “If you bring it down to the local level, it’s to respect the diversity of the culture and looking at ways of drawing from a community.” The goal of the guide is to help Rio Tinto and, eventually, other mining companies, to incorporate and strengthen diversity and address gender differences in their business plans and their dealings with host communities. Important factors to consider include understanding how the mining process affects the genders differently, and how these differences arise. Finally, and most importantly, it is a guide for a mining company to better remedy and minimize the impacts its business can have on communities. “The guide provides a good conceptual framework,” says Gronow. “It gives people things to think about. Are you

upfront EDUCATION/OUTREAC H

Moving forward

â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;d like to do is to take it to the sites and adjust it accordingly,â&#x20AC;? says Gronow. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not static and we may get mine data and case studies and look at particular areas in more detail. The challenge is in effecting behavioural change. It takes time.â&#x20AC;? Gronow reports that a project is underway in 2010 with the CSRM and the Danish Institute of Human Rights to work on a similar guide on human rights and, eventually, one on cultural heritage. These will follow the same basic format of the gender guide: protect, prevent and remedy. The success of the gender guide, says Gronow, is proof of how much can be accomplished with the right energy and dedication. â&#x20AC;&#x153;What this highlights is how much you can change if you have a champion to push the issue,â&#x20AC;? she says. Gronow gives much credit to her colleague, Rio Tintoâ&#x20AC;&#x2122;s Harvey. â&#x20AC;&#x153;Nothing would have gotten done if he hadnâ&#x20AC;&#x2122;t said it is important and that it is a part of the companyâ&#x20AC;&#x2122;s commitment to diversity,â&#x20AC;? she says. â&#x20AC;&#x153;I championed and managed the process internally and the guide was written by CSRM authors Deanna Kemp and Julia Keenan with Jeffrey Davidson, another Rio Tinto principal advisor for international institutions and communities.â&#x20AC;? CIM

Now that the document has been released, the next step is to design training programs to help implement the guidelines in a direct way.

www.riotinto.com/sdocuments/ReportsPublications/Rio_Tin to_gender_guide.pdf

SPECIALIZING IN

doing things at the right time to move beyond tokenistic engagement to full and inclusive engagement?â&#x20AC;? The key is to engage members of the community in more meaningful ways. One option, explains Gronow, could be setting up gender-specific groups in areas where women feel freer to speak when they are away from the men. This could help their voices and needs be heard. Another thing could be simply to have more women working at the mine sites. â&#x20AC;&#x153;This might require a longer-term vision of getting girls into school and getting boys and girls to stay in school longer,â&#x20AC;? Gronow says. Section two of the gender guide is a â&#x20AC;&#x153;how-toâ&#x20AC;? that includes four phases for incorporating gender considerations into community work with inclusive engagement â&#x20AC;&#x201D; a key concern of the gender guide, which it defines as ensuring â&#x20AC;&#x153;that women and men from different social groups are consulted and can participate in engagement and development in meaningful ways.â&#x20AC;? The guide recommends that gender inclusivity be pursued in four phases â&#x20AC;&#x201D; knowledge and understanding; planning and implementation; monitoring, evaluation and improvement; and reporting and communicating.

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upfront Q&A by Heather Ednie

Harmonizing upwards One environmentalist’s view of corporate evolution and CSR

www.onesky.ca

of a corporation as an entity that is structuralist in nature, formed by shareholders. It’s simplistic, though it does hold some truth. But now I’ve evolved my own thinking and I’m looking at corporations as entities that do evolve as well. CIM: How so? Simpson: I’ve realized that today’s corporation is not a singular, predictable entity, but an evolutionary spectrum that varies according to the makeup of the individuals in the company and the context within which they work. The fact is, social change in entities — in corporations, NGOs and governments — is mostly determined by the individuals who make up the organization. If they have higher values, the organization will too. The problem is the exceptions. There are plenty of people out there who do the right thing. I’m not becoming a corporate apologist, but I’ve changed my outlook. CIM: Where does corporate social responsibility (CSR) fit in? Simpson: CSR presents an exciting challenge, if we can figure it out. In the past, these issues scared people, but now is change time. Some individuals running companies are recognizing their responsibility and embracing the need to act accordingly — it’s a big plus in my mind. I believe that if people are doing business, they should be held accountable. ike Simpson has a story to tell. It is about an ecowarrior whose work in places like Sierra Leone, Nigeria and Peru set him against the big mining companies and corporations in general. But over time, his views about the corporate world evolved into something quite different. He came to believe that companies are not faceless machines, but are made up of people who can change the direction of the corporation, sometimes for the better. This man is Simpson himself, executive director of One Sky, a Canadian not-for-profit, non-governmental organization (NGO) that promotes social change and sustainable living.

CIM: You say you were once a radical environmentalist but now have changed your views on corporations. What is your outlook today? Simpson: I still believe we need to be active promoters for environmental and social justice, to encourage positive change on the planet. But I’m not lumping all corporate behaviour into one big basket. I’ve experienced an evolution in my own thinking. For a long time, I held the view 32 | CIM Magazine | Vol. 5, No. 3

CIM: There is a perceived “governance gap” in CSR implementation. What’s your take? Simpson: There are two ways to implement CSR, and I believe both are needed to really see improvement. There’s the voluntary structure, where people set up their own guidelines. The trick is to have them harmonize upwards. International standards, such as those from the OECD [Organisation for Economic Co-operation and Development] and IFC [International Finance Corperation], can help ensure that groups meet minimum requirements. Those minimum standards should become enforced compliance. But legal enforcement is required because, unfortunately, there are enough players who will try to find their way around the guidelines. Today, we’re at the beginning of the process. In time, we will need even higher standards, if we’re to see real change. CIM: How can a mining company find an appropriate NGO to partner with on a project? Simpson: There are resources in Canada to tap into. Canadian NGOs are organized under different mechanisms, such as the Canadian Environmental Network. Companies

upfront Q&A

can go to the network to find out what NGOs in Canada are involved with counterpart NGOs in a specific region. Or, on a meta scale, companies can work with caucuses or networks on specific topics and tap into a wealth of experience and information. There are also many NGOs to engage with who can provide necessary information and resources. CIM: What should companies keep in mind when working with an NGO? Simpson: As NGOs, we bring with us the experience of civil society and we enjoy a high level of trust from society. However, to hold their head high at the end of the day, we need to maintain a distance from industry. Although we can’t sub-contract to corporations, we would partner on projects. Companies should remember that working for an NGO is hard work. There are major capacity issues and constraints that limit our ability to engage staff over time. Over the last 20 years, the number of Canadian environmental NGOs has dropped from between 1,200 and 1,500 down to around 700. It can be a real struggle to find the means to operate.

CIM: What’s a realistic timeline for the evolution of such partnerships? Simpson: In five years, I hope we will be deeper into the subject of how NGOs can cooperate with the private sector. It’s a slow process, and governments move slowly. But we’re keen to see movement, and it’s becoming more nimble as companies focus on collective solutions to global problems. Together, we need to frame local and national work on a global scale. CIM: What projects are you currently working on? Simpson: Currently, we’re working in Peru with the Amazon Conservation Association, trying to develop conservation alternatives. As well, we’re active in Nigeria, where we’re training people in environmental and social justice to be leaders in it; to be able to sit in a boardroom and negotiate. I’m interested in fostering leadership, to enable multi-stakeholder dialogue to be effective. We need all voices in the same room to work out solutions. A final project we have underway is here in Canada, where we’re focused on alternative energy, working with the Canadian Renewable Energy Alliance. CIM

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corporate social responsibility

Photo courtesy of Rio Tinto

For 2010, Rio Tinto expects to invest over $500,000 in community development and environmental initiatives as part of its Simandou project in Guinea.

CSR grows up Improved returns from partnering with local communities www.cim.org/csr

By Gillian Woodford

n a recent trip to Paraguay to explore the potential construction of an aluminum smelter, Rio Tinto’s Claude Perras did something a little unorthodox. He sought out the people and organizations whose work it is to keep the likes of him and his company out of their country and he asked them for a meeting. “The traditional way of doing things is to say, We won’t talk to them because they’re against us,’” says Perras, director of community relations. “But we talked to the most radical groups.” Each side talked and each side listened. And while no miracles happened in Paraguay, Perras is convinced reaching out was the right thing to do. “The reception that we received was very good,” he says. “And now that the communication channel is open, transparency is expected.” Many mining insiders say this is the direction corporate social responsibility (CSR) must take – not only in order to be nicer, but also, to be more profitable.

Then and now The pressure to create a more sophisticated approach to community engagement came largely from local community groups themselves and improved government regulations in countries where mining companies operate. They, in turn, responded with detailed CSR policies stating a commitment to the so-called “triple bottom line,” consisting of economic, environmental and social profit. This approach has evolved out of the concept of “sustainable development.” CSR and sustainable development are two sides of the same coin, with CSR tending to focus more on social engagement and sustainable development on environmental concerns. But many in the industry use the terms interchangeably. Canada’s mining companies insist this is not all just fancy window dressing. Many now track their CSR performance, or hire third parties to do so, and share the information with the public and shareholders. They also take part in initiatives like the Mining Association of Canada’s Towards May 2010 | 35

corporate social responsibility

(Left) Class in session at a Rio Tinto sponsored school near the company's Simandou iron ore project in Guinea; (middle) a young woman referees a basketball game at Rio Tinto's community investment project, in Simandou, Guinea; (right) an HIV education workshop in Guinea. Photos courtesy Rio Tinto.

Sustainable Mining initiative, which gathers and publishes CSR performance data on a number of indicators, such as tailings management, crisis preparedness and energy use. “We used to think we should do CSR for moral reasons or because it grants us social licence,” says Gary Merasty, vice-president, CSR at Cameco. “But the problem with that approach is that it’s based on friction with society, and that’s hard to measure. There’s been a global shift. We now understand the interdependence between business and society. Strategic CSR is about remaining true to that link.” Catherine Coumans, of watchdog group MiningWatch Canada, acknowledges and commends the industry for the strides it has made in a relatively short period. “Back in 1999, when MiningWatch began, it was hard to have a conversation with people in the industry about the problems,” she recalls. “Now we’re past the point where we have to discuss that. It’s a more sophisticated conversation now.” But engaging critics is only the first step, says Coumans who contends that the voluntary nature of CSR standards is a huge stumbling block to widespread implementation. “CSR can be brought into play and taken out at whim,” she adds. “One CEO can be enthusiastic about CSR, then the next one won’t be.”

Policy or police So how can we make CSR implementation more consistent? Not surprisingly, the industry and NGOs differ on this question, with one on the side of voluntary self-regulation and the other favouring government-run regulation. The way Merasty sees it, we are moving inevitably towards some form of regulation. But before we do, he says, “we need a little more reasoned and rational debate. We need fair and accurate reporting of different CSR measures.” 36 | CIM Magazine | Vol. 5, No. 3

The industry does not consider that Bill C-300, a private member’s bill now in its third reading, qualifies as reasoned or rational. The bill would, among other things, withhold taxpayer-funded support to companies shown to flout international human rights norms. It has been roundly rejected by the industry. The federal government has responded by drawing up its own four-pillar CSR strategy, which is more pleasing to industry. Like Bill C-300, it would also include an investigation process, based on complaints assessed by the newly minted CSR Counsellor in conjunction with the Ministry of Foreign Affairs and Trade. But, crucially, participation would be voluntary. Claude Perras says that the regulation question is not as straightforward as the public might think. “Just creating a legal framework doesn’t build capacity,” he says. “If you come in with a prescriptive regulation, we’ll apply it, but governments and businesses won’t learn to change their business practices.” MiningWatch supports Bill C-300 as well as aspects of the government’s strategy, particularly the Centre for Excellence, but says this is all just the beginning. Neither the CSR strategy nor Bill C-300 include any mechanism for sanctions or remedy. “Where the rubber really hits the road is when things go wrong,” Coumans says. “When people are damaged they have no recourse. What we’re asking the mining sector to do is address sanctions and remedy.” Roxanne Scott, senior socio-economist at Golder Associates, says many larger companies do have grievance mechanisms in place. And the fact that the mechanisms are voluntary does not have to be a deal-breaker, as long as the complainants trust the process. Trust comes from implementing a transparent process for tracking how companies are responding to and resolving complaints, and from engaging communities and other

corporate social responsibility

Rio Tinto’s Perras and Cameco’s Merasty do not agree: in addition to being the right thing to do, community engagement makes good business sense. For instance, in terms of manpower at an international operation, Photo copyright © 2009 Rio Tinto

stakeholders in designing these mechanisms, as well as adjudicating over particular complaints. “I see projects where it works,” says Scott. “These companies understand that if there’s going to be a good relationship the process has to be open and transparent.” These days, a lot of the challenges are with smaller companies, say Perras and Scott. Scott suggests this is an area where the government could help. “It’s challenging to smaller companies that don’t have access to the same expertise and resources,” she says. However, initiatives such as the Centre for Excellence in CSR, launched this past January, are designed to put this expertise within reach.

Putting a price on nice Without all-encompassing regulation, getting companies, big and small, to comply with CSR standards at their international operations is a big issue. Money talks and there is a growing chorus of voices from within the CSR community that is trying to convince the industry that there is profit in virtue. Better knowledge-sharing, one of the main mandates of the CSR Centre for Excellence, could lead to better investment in mining projects, argues Scott. “There’s a feeling that more information sharing with competitors is not a good thing,” she says, “however, by sharing information on performance, we could improve lending.” She notes that many banks (including all five of Canada’s major banks) have adopted the Equator Principles, an international guideline to encourage financial institutions to invest in sustainable projects. By measuring and sharing CSR outcomes, companies can improve their chances of financial support. Coumans is not convinced by these arguments. “Investors know what’s going on, but as long as the returns are good, they don’t care,” she says.

Livelihood training at the Shashe school in Zimbabwe, a part of Rio Tinto's Murowa diamond project. May 2010 | 37

corporate social responsibility “planning ahead and training local people [before the mine opens] is cheaper than bringing in outside staff,” says Perras. He also notes that improving local healthcare will save the company money. “In Paraguay, there’s a lot of dengue fever. If people get sick, productivity is decreased.” This argument can be applied to environmental practices, adds Merasty. “Take energy consumption,” he says. “If we use more efficient practices, it’s cost saving and we reduce greenhouse gases.” Lawsuits, protests, operation shut-downs, etc. — all these cost companies money. But fixing all these brings something positive — long-term benefits to the local communities, and profitable, healthy returns for shareholders.

Culture shift All these changes make for a brave new world: one in which it is not easy keeping pace. “Communities and NGOs are more savvy – they have better access to information now,” notes Scott. “The mining industry can not operate around a solely revenue-generating model.” Perras agrees, “the sector is evolving extremely rapidly. Business practices are changing and managers have to change too.” On the practical side, says Scott, the biggest challenge facing companies is the “translation of CSR values from corporate to project level.” She says that this needs to be

38 | CIM Magazine | Vol. 5, No. 3

done on a project-by-project basis; admittedly a huge undertaking. “At the project level, there needs to be a clear description of CSR – what are the priorities and risks; how will these be assessed and monitored; how will staff and subcontractors be educated and trained.” Then there is the question of how to change people’s habits and attitudes. “We’re an engineering culture – we’re used to a linear process,” Perras explains. “CSR is more intuitive. We’re often dealing with fragmented societies, where there’s no real consensus.”

First Nations model Nowhere is this truer than in Northern Canada. In many ways, the best blueprint for CSR conduct abroad is the history of successful and troubled agreements between companies and First Nations communities here in Canada. “In my experience, IBAs are emerging as a promising approach,” says Scott, referring to the impact benefits agreements negotiated between Aboriginal communities and mining companies. These agreements delineate the specific benefits to be accrued to a community from a mine and mining company, such as priority employment, training and capacity building, support for existing businesses, creation of new businesses, and revenue sharing. “Some of these are becoming quite sophisticated,” says Scott. “The concept of such agreements could be applied abroad. However, the enforcement of the implementation of these agreements can be challenging in environments where legal regulatory mechanisms are weak.” Cameco is walking this tightrope now. The bulk of its uranium mines are in northern Saskatchewan, which is populated largely by Aboriginal Canadians. But Cameco has just opened a new operation in Kazakhstan. Merasty says the company has become deeply involved in the struggles of the people of northern Saskatchewan to get services and infrastructure from the government, which were often complicated by jurisdictional confusion. The demographics are also completely different from the rest of the province, with 50 per cent of the people under the age of 25, while the majority of non-Aboriginals are nearing retirement. “We see the advantage,” says Merasty, “it’s an opportunity to train and have a skilled and ready workforce.” To that end, Cameco is chairing an initiative called Northern Career Quest in partnership with First Nations communities. It has a budget of $33 million. “The goal is to assess 3,000 First Nations and Métis people for career options and then take 1,500 to train and finally secure 750 jobs,” explains Merasty. The jobs can be in any field, but Cameco is promoting underground mine training. Lessons learned in Saskatchewan have taught Cameco to take a cautious approach in Kazakhstan, carefully researching local governance and social issues. “You have to understand the successes and challenges of the people and area you’re stepping into,” Merasty says. “By and large, we’ve stayed true to our strategies.” CIM

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la responsabilité sociale des entreprises

La responsabilité sociale des entreprises

Les membres de la communauté participent à un atelier éducatif sur le VIH présenté par les travailleurs de Rio Tinto en Guinée.

Un concept en pleine croissance

u cours d’un récent voyage au Paraguay afin d’évaluer les possibilités de construction d’une fonderie d’aluminium, Claude Perras, de Rio Tinto, a fait quelque chose de plutôt inhabituel : il est allé voir des gens et des groupes qui se consacrent à faire en sorte que des sociétés comme celle qui l’emploie ne s’installent pas dans leur pays et il a demandé à les rencontrer. « La manière traditionnelle de faire les choses est généralement “Nous ne leur parlerons pas parce qu’ils sont contre nous”, explique Claude Perras, directeur, développement durable et relations communautaires de Rio Tinto. Nous avons quand même discuté avec les groupes les plus radicaux. » Chaque camp s’est exprimé et a ensuite écouté l’autre. Même si aucun miracle n’a eu lieu au Paraguay, Claude Perras est persuadé que communiquer était la bonne chose à faire. « L’accueil que nous avons eu était 40 | CIM Magazine | Vol. 5, No. 3

www.cim.org/csr (en anglais seulement)

très bon. Maintenant qu’une voie de communication est ouverte, on s’attend à de la transparence. » De nombreux joueurs de l’industrie minière ont la conviction que c’est l’orientation que doit prendre la responsabilité sociale des entreprises (RSE), pas seulement parce que c’est préférable sur le plan moral, mais aussi pour être plus rentable.

Hier et aujourd’hui Dans le bon vieux temps, l’idée que les sociétés minières internationales se faisaient de l’engagement communautaire se résumait à donner un peu d’argent à l’hôpital de la ville ou au club sportif local. Leurs établissements clôturés employaient des travailleurs recrutés à l’étranger et ces sociétés se coupaient des collectivités locales. La pression d’adopter une démarche plus raffinée est venue en grande partie de groupes communautaires locaux et d’exigences réglementaires améliorées des

la responsabilité sociale des entreprises gouvernements des pays où ces sociétés font affaire. Celles-ci ont alors réagi en créant des politiques détaillées en matière de responsabilité sociale des entreprises, énonçant un engagement à l’égard du « triple bilan », qui présente à la fois la performance financière, environnementale et sociale d’une entreprise. Cette démarche est très récente et remonte à environ cinq ans. Elle est née du concept de « développement durable. » La responsabilité sociale des entreprises et le développement durable sont deux côtés d’une même médaille, sauf que le développement durable se concentre davantage sur les préoccupations environnementales. Par contre, nombreux sont les intervenants de l’industrie qui utilisent les deux termes de manière interchangeable. Les sociétés minières canadiennes sont catégoriques : elles ne jettent pas de la poudre aux yeux. Elles sont désormais nombreuses à surveiller leur rendement en matière de responsabilité sociale ou embauchent des entreprises externes pour le faire et transmettent ces renseignements au public et à leurs actionnaires. Bon nombre d’entre elles participent à des initiatives comme celle intitulée Vers le développement minier durable de l’Association minière du Canada, qui recueille et publie des données sur la RSE à l’aide de plusieurs indicateurs de rendement, notamment la gestion des résidus, la préparation en cas de crise et la gestion de l’énergie. « À une certaine époque, nous pensions que la responsabilité sociale des entreprises devait se faire pour des raisons de morale ou parce que cela nous accordait une certaine latitude sur le plan social. Le problème de cette attitude, c’est qu’elle se fonde sur le conflit avec la société, ce qui est difficile à mesurer », explique le vice-président, responsabilité sociale d’entreprise de Cameco, Gary Merasty. « Il y a eu un virage complet. Nous comprenons désormais l’interdépendance entre l’entreprise et la société. Utiliser la responsabilité sociale des entreprises de manière stratégique, c’est demeurer fidèle à ce lien d’interdépendance. » Catherine Coumans, du groupe de surveillance Mines Alerte Canada, reconnaît les progrès qu’a réalisés l’industrie minière dans ce domaine dans une période relativement brève, et s’en réjouit. « En 1999, lorsque Mines Alerte Canada a commencé ses activités, il était difficile d’avoir une conversation sur ces problèmes avec les gens de l’industrie. Maintenant, nous avons franchi l’étape où nous devions en parler. Aujourd’hui, nous avons une conversation bien plus sérieuse. » Toutefois, selon Catherine Coumans, accepter la critique n’est que la première étape de la responsabilité sociale. Le fait que les normes de responsabilité sociale sont volontaires constitue un obstacle gigantesque à leur adoption généralisée. « La responsabilité sociale peut faire partie du décor puis disparaître du jour au lendemain », explique-t-elle. « Un chef de direction peut être enthousiaste par rapport à la responsabilité sociale, mais pas son successeur. Nous voyons cela très souvent. »

Réglementer ou ne pas réglementer Comment pouvons-nous rendre plus cohérente l’application de la responsabilité sociale des entreprises? Naturellement, l’industrie et les organisations non gouvernementales (ONG) ne sont pas du même avis, la première étant favorable à l’autoréglementation volontaire et les ONG préférant l’application de règlements gouvernementaux. L’industrie ne croit pas que le projet de loi C-300, un projet de loi d’initiative parlementaire qui en est à sa troisième lecture, peut être qualifié de raisonné ou de rationnel. Ce projet de loi propose, entre autres, de retenir les subventions publiques des sociétés qui ne respectent pas les normes internationales en matière de droits de la personne, après la tenue d’une enquête menée par le ministère des Affaires étrangères et Commerce international Canada (MAECI). L’industrie a catégoriquement rejeté ce projet de loi. Le gouvernement fédéral a réagi en élaborant sa propre stratégie en matière de RSE, comportant quatre piliers et qui est plus en accord avec les principes de l’industrie. Tout comme dans le projet de loi C-300, cette stratégie comprendrait aussi un processus d’enquête, entrepris à la suite de plaintes examinées par la conseillère en responsabilité sociale des entreprises, en collaboration avec le MAECI. Toutefois, et c’est une différence cruciale, la participation à cette enquête serait volontaire. Selon Claude Perras, la question de la réglementation n’est pas aussi tranchée que le public pourrait le croire. « La mise sur pied d’un cadre législatif ne crée pas de capacité. Si vous nous imposez des règlements normatifs, nous allons les appliquer, mais les gouvernements et les entreprises n’apprendront pas à modifier leurs pratiques commerciales. » Roxanne Scott, socio-économiste principale, Golder Associates, affirme que de nombreuses grandes sociétés ont des mécanismes de traitement des plaintes. Le fait que ces mécanismes sont volontaires ne devrait pas être une raison de ne pas conclure d’accord, l’important étant que les plaignants aient confiance dans le processus. La confiance se construit par la mise en place d’un processus transparent de suivi et de traitement des plaintes par les entreprises, de même que par un engagement de la collectivité, et d’autres parties prenantes, dans la conception de ces mécanismes et dans le jugement de plaintes précises. « Je vois des projets pour lesquels cette approche fonctionne », explique Mme Scott. « Ces entreprises comprennent que pour avoir de bonnes relations, le processus doit être ouvert et transparent. » Aujourd’hui, ce sont les plus petites sociétés qui sont aux prises avec une grande part des problèmes, affirme Claude Perras et Roxanne Scott. Selon Mme Scott, il s’agit d’un domaine où le gouvernement pourrait venir en aide à ces sociétés. « Pour les plus petites sociétés qui n’ont pas accès aux mêmes ressources et à la même expertise, c’est plus difficile. » Toutefois, des initiatives comme le Centre d’excellence de la responsabilité sociale des entreprises, May 2010 | 41

la responsabilité sociale des entreprises lancé en janvier par l’ICM, sont conçues pour améliorer l’accès à cette expertise.

Le prix de la morale Sans un cadre législatif global, il est difficile d’obtenir des sociétés, petites ou grandes, qu’elles respectent les normes en matière de RSE dans leurs établissements à l’étranger. Par contre, l’argent est le nerf de la guerre et un nombre grandissant de membres du milieu de la responsabilité sociale des entreprises tentent de convaincre l’industrie de la rentabilité de la vertu. La nouvelle conseillère en RSE, Marketa Evans, a déclaré que les entreprises seront incitées à participer aux examens en matière de RSE pour montrer aux investisseurs qu’elles ne font pas affaire avec des entreprises ayant des pratiques sociales et environnementales discutables. Selon Roxanne Scott, une meilleure transmission des connaissances, qui est l’un des principaux mandats du Centre d’excellence de la responsabilité sociale des entreprises, pourrait provoquer de meilleurs investissements dans des projets miniers. « On a l’impression que communiquer des renseignements à nos concurrents n’est pas une bonne chose, mais, en communiquant des renseignements sur le rendement, nous pourrions améliorer les prêts. » Mme Scott fait remarquer que de nombreuses banques (notamment les cinq principales banques canadiennes) ont adopté les Principes de l’Équateur, des lignes directrices internationales qui ont été conçues pour inciter les institutions financières à investir dans des projets de développement durable. En mesurant et en communiquant des indicateurs de rendement en matière de RSE, les entreprises peuvent améliorer leurs chances d’obtenir un soutien financier. Ces arguments ne réussissent pas à convaincre Catherine Coumans. « Les investisseurs savent ce qui ce passe, mais tant que leurs dividendes sont bons, ils ne s’en préoccupent pas. » Claude Perras, de Rio Tinto, et Gary Merasty, de Cameco, ont une philosophie bien plus pragmatique : l’engagement communautaire fait économiser de l’argent.

Changement de culture Concrètement, explique Mme Scott, le plus grand défi que devront relever les entreprises est « de faire passer les valeurs de RSE de l’échelon de la direction à celui de leur réalisation sur le terrain. » Selon elle, ce passage doit se faire projet par projet, une tâche qui est colossale. « Sur le terrain, à l’étape du projet, il doit y avoir une description claire de ce qu’est la RSE : quelles sont les priorités, quels sont les risques? Comment tout cela sera-t-il évalué et suivi? Comment le personnel et les sous-traitants serontils formés? » Ensuite se pose la question de la façon dont il faut s’y prendre pour changer les attitudes et les habitudes des gens. « Nous avons une culture d’ingénierie. Nous sommes habitués à travailler selon un processus linéraire », 42 | CIM Magazine | Vol. 5, No. 3

explique-t-elle. « La RSE est quelque chose de plus intuitif. Nous avons souvent affaire à des sociétés fragmentées, où il n’y a pas de réel consensus. »

Le modèle des Premières nations Cette question prend tout son sens dans le nord du Canada. Sous plusieurs plans, le meilleur modèle pour l’attitude à adopter en matière de RSE à l’étranger est celui des ententes conclues entre les entreprises et les communautés des Premières nations ici au Canada, ententes qui ont été parfois éprouvantes, parfois réussies. « À mon avis, on assiste à une émergence des ERA », explique Roxanne Scott, faisant référence aux ententes sur les répercussions et les avantages, ententes négociées entre les communautés autochtones et les sociétés minières. Ces ententes définissent les avantages précis dont tirera parti une communauté d’une mine et d’une société minière, par exemple, priorité à l’emploi, formation et renforcement des capacités, soutien aux entreprises existantes, création de nouvelles entreprises, partage des profits. Selon Catherine Coumans, la réalité est loin d’être toute noire ou toute blanche. « À l’étranger, des communautés autochtones connaissent l’existence de ces ERA et elles veulent les mêmes », explique-t-elle. Elle ressent par contre de la frustration lorsque des gens disent : « Si seulement les entreprises canadiennes se comportaient à l’étranger comme elles se comportent ici au Canada. » À ceux-là, elle répond : « Il y a encore de nombreux problèmes dans la manière dont le Canada réglemente les activités minières. Par exemple, les sociétés minières ont encore l’autorisation de jeter des résidus dans de superbes lacs, mais non dans des rivières, ici même au Canada. » La société Cameco est actuellement sur la corde raide. La plus grande partie de ses mines d’uranium se trouvent dans le Nord de la Saskatchewan, territoire fortement peuplé par des membres des Premières nations. Toutefois, Cameco vient tout juste d’entreprendre l’exploitation d’une mine au Kazakhstan. Pour y parvenir, Cameco préside une initiative intitulée Northern Career Quest, qui se déroule en partenariat avec des collectivités des Premières nations et est dotée d’un budget de 33 millions de dollars. « L’objectif est d’évaluer 3 000 Métis et membres des Premières nations pour qu’ils explorent des choix de carrières, puis en prendre 1 500 pour les former, pour au final pourvoir 750 postes. » Ces postes pourraient être dans n’importe quel domaine, mais Cameco fait la promotion de la formation en exploitation souterraine. Les leçons tirées de son expérience en Saskatchewan ont appris à Cameco à faire preuve de prudence au Kazakhstan, en examinant attentivement les questions d’ordre social et de gouvernance locale. « Vous devez comprendre quelles sont les réussites et les problèmes des résidants et de la région où vous faites affaire », conclut Gary Merasty. « Dans l’ensemble, nous sommes restés fidèles à nos stratégies. » ICM

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Photo courtesy of IOC

haul roads

Making the grade

Iron Ore Canada's Carol project near Labrador City, Newfoundland

The challenge of smooth roads and more loads at Canadian operations By Heather Ednie

f the orebody is the heart of a mining operation, the haul roads are its arteries. Keep them in good shape, and equipment will move efficiently. Allow them to deteriorate, and the well-being of the entire operation can be at risk. The haul road programs of most open pit operations in Canada share three common considerations: safety, environmental management and equipment management. Good roads are safer and can contribute to lower vehicle emissions, better water management and longer equipment life spans.

Adapting the terrain Each year, four to five kilometres of new haul roads are built at Syncrude Canadaâ&#x20AC;&#x2122;s Mildred Lake and Aurora mines. These roads are designed to last the duration of the 44 | CIM Magazine | Vol. 5, No. 3

www.ironore.ca; www.syncrude.ca; www.teck.com

mine life and their construction is a multi-staged process involving collaboration between different company teams. At the outset, the long-range planners design the layout of the road, accounting for expected volumes of traffic and the timing and scheduling of production activities. Once the design is in place, it is up to the short-range planning group to incorporate its requirements into the overall operation plans and to secure the timely supply of the requisite materials. Finally, the job of having the roads built goes to the haul road construction group, which oversees the contractors. As one might expect, the actual road construction process entails some very intricate steps. Crowned subgrades need to be constructed first, providing a solid foundation for the road. The crown prevents the water that seeps through the granular layer immediately above it from permeating the subgrade and helps

haul roads ing, is used to cap the road. drain it off the road. Operations at Ironically, “Limestone has a better Syncrude don’t stop for the weather, so Canadian mines roads are built to handle it. effect, and compacts better the sealing enjoy the best road while producing less dust,” Podrasky “The subgrades are the most important part,” says Rod Walsh, a field conditions in winter. explains. “As well, it can absorb and retain water better than pit-run matesupervisor who has been with The cold freezes rial.” Syncrude for 23 years. “You can have the road, creating the best granulars, but the road will Having ready access to limestone “arctic pavement,” break down if it doesn’t have a solid at its operations, Teck Coal consubgrade.” structed quarries. The limestone is to the delight of heavy Due to differences in the materials crushed down to between 1.5- to twoequipment operators. available at the two mines, their road inch chunks, screened for fines, beddesigns vary. At Mildred Lake, ded down and compacted. Cretaceous-era marine clays, packed to 101 per cent of A big improvement in road construction came about proctor, are used as a subgrade material. At Aurora, with the introduction of global positioning system (GPS) these marine clays are not available, so lean oil sand is devices on dozers, Podrasky says. “We input the road used to build the subgrade, which is not as effective. To design and the dozer operators build the road to within balance it out, alterations are made to the rest of the centimetres’ accuracy. You can literally see the difference, road design. compared to the old method with survey stakes.” The next Once Syncrude builds and approves the subgrade, local step may be to equip graders with GPS devices, as is done contractors construct the roads. Approximately $8 to $10 in the highway construction industry. million — $2 million a kilometre — is spent on road conAn eye fixed on the road struction annually at both mines. As with other mining companies, road construction at Pit-run gravel and sands found on Syncrude’s own lease are used to construct the base. However, Ken Bell, techni- the Iron Ore Company of Canada (IOC) begins with the cal leader, Mildred Lake, foresees a shortage of this engineering department designing the sequences, material in the future. “So we need to be innovative in our approach to smart granular management,” he says. Granular usage can be reduced by “flipping” or reclaiming materials from roads no longer in use. This road recycling offers several advantages. Less granular needs to come out of the quarry, water management becomes easier, material haul distances are shortened and royalties need not be paid for the recycled materials. Once the road is built and tested, it is signed off to the operations people, who assume responsibility for its maintenance.

Refined movements Teck Coal’s road design standard provides specifications pertaining to the width, crown, ditches and berms. Given the great depth of the pits and the steepness of the footwalls, switchbacks are required. “Our standard incline grade out of the pit is eight per cent, so we need to zigzag the road up the pit,” explains Clayton Podrasky, operation superintendant, Line Creek Operations. “The corners, or switchbacks, are the most important sections for tires. They are also the biggest concerns for water drainage and safety issues such as visibility. The safety of our workers is of great importance so we need to ensure our roads are in the best possible condition. Our goal is to have everyone going home safe and healthy every day.” To start construction, any poor-grade material is excavated. Then, the road is bedded with suitable material, often pit-run sandstone. Once the final grade is achieved, crushed limestone, a material chosen after extensive testMay 2010 | 45

Photo courtesy of IOC

haul roads

Spring thaw is a perennial challenge for road maintenance.

benches, and haul roads and ramps. “We follow Rio Tinto’s guidelines for road design, which contain guidance on proper width, grade and intersection design,” says Rudy Tucker, superintendant, mine operations at IOC. “After the short-range planning team works it out, it is handed over to us, the operations group, to construct.” The road is designated, constructed and then sheeted over with a mixture of crushed stones and fines that is liberated during blasting. It is built either with a crown in the centre or slightly inclined to one side. A dedicated day shift road crew maintains the roads, crowns and ditches with consideration for their environmental impact. Thus, road maintenance has moved from being a shift-by-shift task to a focused effort. It is understandable that IOC invests so much in keeping its roads in shape. After all, the company spends millions of dollars on road maintenance each year.

Maintenance Once roads are built, continuous maintenance is required to combat the effects of water, weather and general wear and tear. Dozers pull the fill in to maintain the crown, keeping ditches free to carry water away. Graders too, work constantly on the roads, carrying finer material from the ditch side to the centre to maintain the crown. “Road maintenance is an ongoing battle, as the large haul trucks have huge impacts on the roads,” says Teck Coal’s Podrasky. The first milestone in a road’s life is its 46 | CIM Magazine | Vol. 5, No. 3

“seasoning,” or settling down after passing through all four seasons. Until then, it is vulnerable to punching up and requires more maintenance activity.

Safety first The primary goal of road maintenance is safety. Berms must be kept in shape while dust is contained, traction is maintained and surface smoothness is preserved. Road conditions impact equipment life and overall productivity, but most importantly, they impact the person operating the equipment. “There is increased risk of injury with bad roads,” Tucker says, adding, “It affects the haul truck operators, and the light vehicle drivers feel it even more. Smooth roads equal more loads, we like to say.”

A road for all seasons A constant bane of Canadian mining is the extreme weather and its impact on haul roads. “Roads are our lifeline,” says Ross Noble, technical leader, Aurora Mine. “We’re an all-weather operation, relying on our roads year round.” During the summer, dust reduction is important for the maintenance of visibility. Water trucks are carefully deployed to wet the road to control dust. “If you put too much water on the roads, they will erode, especially on the grade,” Podrasky says. “It requires adequate training, spot watering and close monitoring.” Teck Coal is currently testing potential alternative eco-friendly dust suppressants, including some oil-based products and even one made from tree sap.

haul roads Constant attention is imperative in the snowy and slippery conditions of winter. At Syncrude, sand is put down for traction. At IOC, a 200-tonne sand truck spreads crushed stone, which is then further distributed by graders and loaders. At 25-metre intervals, slots are cut into the 1.8metre safety berms that run alongside the road to provide an outlet for the snow pushed during road clearing. Ironically, Canadian mines enjoy the best road conditions in winter. The cold freezes the road, creating “arctic pavement,” to the delight of heavy equipment operators. The biggest challenge for haul roads is the spring run-off and frost thaw. Road saturation can wreak havoc. The water has to be made to run off, water-eroded granulars have to be pulled back, crowns must be maintained and ditches must be kept free-flowing. “Once the granular is saturated, its integrity is lost, and the road is lost,” explains Bell.

tagged with GPS, tying the equipment failure to the location in need of maintenance or repair. “We have tested these alarms,” recalls Fisher. “They’re taking gforce hits off the trucks, telling us of hits greater than three g.”

New materials

New road-building materials and methods receive particularly keen attention from mining companies. Syncrude is currently investigating soil treatment technologies and additives for clays. “We’re looking at external technologies and experimenting with a few now,” Bell explains. “The aim is to eliminate our dependence on granular. We’re currently testing at Mildred Lake. We started last year, and will evaluate and extend the test area this year.”

A simple imperative Equipment life

Road maintenance is also important for its contribution to increased equipment lifespans. Smoother rides mean “less frame twist, suspension and bolted joint wear,” says Greg Fisher, production operators supervisor, trucks and productivity, Syncrude. “Good roads mean better equipment availability.” In the future, Syncrude trucks may be equipped with an alarm to indicate when the frame or a component is stressed, and the actual position of the vehicle will be

EXPANDING OPERATIONS.

Haul road construction and maintenance require constant attention and vigilance, sound planning and sophisticated equipment. Operations spend millions of dollars annually to ensure the safe movement for their people, equipment and products. Most operations make use of materials readily available at or near the site, work to ensure zero impact on the environment and, above all, to keep the drivers’ visibility intact. “At the end of the day,” says IOC’s Tucker, “it’s about safe roads. It’s that simple.” CIM

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An eye for detail

A water truck applies Dust Stop in Mongolia's Gobi Desert.

Fine-grained concerns drive the market for new equipment in Canada’s aggregates industry By Eavan Moore

ike the highways and houses their products build, Canada’s aggregate producers are still standing despite the recent recession. Federal stimulus spending on infrastructure helped rescue this past year’s market for construction aggregates. Recovering house prices in most provinces are a good sign of potential housing starts. More help is forthcoming. In British Columbia, for example, a second series of stimulus projects is just coming to the tendering stage. “So it bodes well for B.C. aggregate producers for 2010-11,” says Paul Allard, executive director of the Aggregate Producers Association of B.C. But in a subdued general economic mood, ambitious predictions are rare. “We are looking positively to the spring for the start of a busy construction season, but

remain cautious because the recovery is dependent on both public and private sector spending to demonstrate solid long-term growth,” says Moreen Miller, head of the Ontario Stone, Sand & Gravel Association. Meanwhile, there is an industry-wide trend of increasing regulation, which tends to push up producers’ operating costs, whether it is the pending water-use legislation in Ontario or land-use laws in Alberta. So it is no surprise if aggregate producers take caution as their watchword in new equipment outlays. Advanced designs will sell only if they address an operation’s critical concerns. While regulations and specifications may change, the prominent issues of the aggregates industry include the ever-present problems of May 2010 | 49

aggregate suppliers controlling dust emissions, maximizing efficiency and ensuring the longevity of machinery. The novelty is in the nitty-gritty details.

able aggregate business,â&#x20AC;? says Gary Zeitner, general manager of Alberta-based Mixcor Aggregates. â&#x20AC;&#x153;Dust control of gravel haul roads is a topic of tremendous concern for many municipalities in Alberta. Almost every gravel pit operator Fighting dust that we are aware of uses some form of dust suppressant Useful as crushed rock and sand, stone turns dangerous on local gravel haul roads.â&#x20AC;? in its finer forms. Among other things, it causes respiratory Mines have previously used petroleum- or chlorideproblems and lodges itself in delicate machinery. â&#x20AC;&#x153;Dust con- based dust suppressants, says Norm Burns, president of trol is an issue that simply must be addressed in any sustain- Cypher Environmental in Winnipeg. But his company manufactures the more environmentfriendly Dust Stop. Available in a powdered form, this cellulose-based product can be mixed with water and sprayed on dusty areas without the risk of vehicle corrosion. According to Burns, Dust Stop works in dry or rainy weather and could last three or four months before another application or an extra water spray is required. â&#x20AC;&#x153;Water regenerates Dust Stop to its original film characteristics and a light application may be all that is needed to last a full season,â&#x20AC;? he explains. Most importantly, it is completely non-toxic, the food-grade choice for several operations owned by BHP Billiton, says Burns. Despite efforts to tamp it down, aggregate dust will escape, and a mine haul truckâ&#x20AC;&#x2122;s engine is one of the worst places it can go. The response from Donaldson Company, Inc. is what Steve Carter, engine air product man+GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW ager, describes as â&#x20AC;&#x153;the heaviest of the heavy-duty air cleaners designed for maximum performance in high airflow 2FC +GLGLE 'LBSQRPW "CK?LBQ &C?TWUCGEFRQ and extreme dust applications, such as -INING IS A DIFl CULT AND DEMANDING INDUSTRY )NSTRUMENTATION FROM %NDRESS (AUSER HAS PROVEN ITS ACCURACY AND RELIABILITY FOR YEARS mining and construction.â&#x20AC;? The SSG 7ITH A FULL LINE OF MEASUREMENT INSTRUMENTATION SOLUTIONS AND Donacloneâ&#x201E;˘ Air Cleaner comes either SERVICES DESIGNED TO MEET THE RUGGED REQUIREMENTS OF THE 0RIMARIES )NDUSTRY %NDRESS (AUSER IS YOUR IDEAL CHOICE FOR RAW MATERIAL with standard cellulose filter media or HANDLING AND PROCESSING IN VARIED APPLICATIONS with Ultra-WebÂŽ nanofiber media s 3LURRY FLOW MEASUREMENT 4GQGR SQ technology that enhances its effis &LOTATION AND CLARIFIER OPTIMIZATION !'+ 4?LAMSTCP s +ILN TEMPERATURE CONTROL ciency and capacity. Built-in Dona+?W s -ONITORING OF ORE LEVELS IN BINS clone pre-cleaning tubes separate up MMRF Â¨ s #ONTROLLING CONCENTRATIONS IN ACID PLANTS s 3LURRY DENSITY MEASUREMENT to 97 per cent of incoming dust. The s !IRFLOW QUALITY pre-cleaned dust is automatically s !UTOMATION SOLUTIONS TO OPTIMIZE LOGISTICS PRODUCTION ejected from the dust cup. The evacuAND MAINTENANCE PROCESSES ation system was designed for ease of 'OLD DIAMONDS COAL NICKEL IRON COPPER ALUMINA ZINC LIGHT METALS HEAVY METALSÂ&#x2C6;WHATEVER YOU MINE OR PROCESSÂ&#x2C6;ALL REQUIRE maintenance â&#x20AC;&#x201D; with a clear tube THE LATEST TECHNOLOGY TO MEASURE m OW LEVEL PRESSURE TEMPERATURE 5 + IS ,IFECYCLE -ANAGEMENT extending downward from each dust DENSITY P( AND MORE 4RY ONE OF ITS FUNCTIONS FOR $0## !MSLR ML #LBPCQQ &?SQCP Â&#x2020; MLC N?PRLCP DMP ?JJ cup, operators and maintenance perWWW CA ENDRESS COM DEVICEVIEWER WMSP GLQRPSKCLR?RGML LCCBQ sonnel can visually inspect the installa4EL #LBPCQQ &?SQCP !?L?B? *RB *RĂ?C tion without climbing ladders or &AX 3UTTON $RIVE encountering nuisance dust. DonaldINFO CA ENDRESS COM "URLINGTON /NTARIO WWW CA ENDRESS COM , , : son has dubbed this tube extension the â&#x20AC;&#x153;Dust Dumpa.â&#x20AC;? 50 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of Donaldson Co.

aggregate suppliers

‘Dust Dumpas’ attached to Donaldson SSG air cleaner dust cups

Efficiency on all fronts Although these critical mechanisms to control dust result in long-term savings, they introduce their own maintenance and energy burdens. Greg Helfrich, operations manager at Elrus Aggregate Systems, Inc., remarks that his customers closely reviewed the impact on cost per ton when looking at new equipment. “With the amount of used equipment on the market and the willingness of manufacturers to negotiate lower prices on new equipment, customers have looked to upgrade efficiency. Their costs haven’t gone down much, but their revenue certainly has. Any advantage that can be gained is examined in great detail.” Camfil Farr APC took on the challenge by combining dust collection and energy efficiency in its Gold Series® cartridge dust collectors. In this dry collection system, an inlet baffle directs the heaviest dust particles into a hopper, which conveys them away. The finer dust is filtered through a cartridge with a wide-open pleat design that, according to the company, avoids filter plugging and results in a lower pressure drop. Camfil Farr’s new Gold Series® installations include fan motors with “larger-diameter copper wire, more iron and premium-grade steel, superior bearings and other special components that achieve cooler operation and more efficient performance.” For example, a 40 horsepower Baldor Super-E fan motor has 94.5 per cent efficiency, versus the 88 per cent efficiency achieved LOADRITE’s new C-Weigh 1850 by an average industrial motor. Such

cooler-running motors can be used with a variable frequency drive and will likely last longer than their standard efficiency counterparts.

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52 | CIM Magazine | Vol. 5, No. 3

Camfil Farr APC Gold-Series dust collectors at conveyor-to-conveyor transfer station.

Making it last Budget allowing, equipment upgrades make good sense. But redesigns need not make older models obsolete. Metso’s SUPERIOR® 60-110E primary gyratory crusher keeps continuity in place. The major castings were redesigned to be lighter but stronger, resulting in a 20 per cent reduction in weight with no reduction in capacity. A new rim liner retention system uses bars and clips welded in place, rather than bolts, connecting all the rim liners together and making them easily replaceable. At the same time, the new Spider, bottomshell and topshell can be adapted to fit on existing 60-110 MK-ll crushers. If aggregate producers seek Metso’s SUPERIOR® 60-110E to keep their businesses running primary gyratory crusher with maximum efficiency, so do their suppliers. King Lim, vice-president, mining crushers at Metso explains that the redesign had benefits for both Metso and its customers: “This opens up our supply chain,” he says, “by increasing the number of foundries able to cast the major components. It also reduces lead times.” Fine-tuning at any level can benefit the industry both upstream and down, as all players consider how to build lasting structures at the lowest financial and environmental cost possible. CIM Photo courtesy of Metso

In the search for efficiency, some producers take the initiative. “There are several major producers who are benchmarking their primary crushers against the manufacturer’s recommended settings,” says Andrew Crose, vice-president of sales and marketing at LOADRITE. “They are re-starting projects to match the tonne-per-hour (tph) throughput in their crusher against the recommended tph, and many are finding that they can easily run at the recommended rating or overclock their crushers by 10 per cent or more without any mechanical failure. Many process improvement projects were put on hold last year with the recession, but they seem to be restarting this spring.” LOADRITE puts an additional tool in these producers’ hands: a voltage meter available as an add-on to its C-Weigh line of conveyor belt scales. Crose explains: “We capture the kilowatts from an add-on kilowatt meter and stream that data into the C-Weigh along with the tonnage data from the conveyer belt after the primary crusher. Benchmarking the crushers’ tonnes per kilowatt hour and maximizing the tons produced against the energy consumed lowers the cost per tonne of aggregate produced.” Already paired with the C-Weigh 1830, the kilowatt meter is available on the new 1850 model.

Photo courtesy of Camfil Farr APC

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featured mine

Whitemudâ&#x20AC;&#x2122;s pit and processing facility in southwest Saskatchewan

Re-imagining a natural resource Whitemud Resources is positioned for green growth with a new metakaolin process by | Marlene Eisner

A component of fine art, false teeth, tea cups and toilet bowls, kaolin clay has been used in small doses for centuries, thanks to its brilliance and durability. Now, a Calgary-based company expects that these qualities, matched with innovative processing, will open up a new market for the resource.

Sometimes a fresh, new approach to an old game is all it takes to come out a winner. That was the strategy behind Whitemud Resourcesâ&#x20AC;&#x2122; plan to invest in 12,000 acres of mineral leases for one of the largest kaolin deposits in North America.

Kaolin is a naturally occurring clay that is most commonly used in paper, ceramics and porcelain, among other things, but is expensive to process into the top-quality product needed for these applications. Whitemud Resources has patented a cost-efficient method of turning kaolin into May 2010 | 55

featured mine

2 3

56 | CIM Magazine | Vol. 5, No. 3

featured mine metakaolin, a substance that, when added to concrete, strengthens it and makes it more durable. With so much kaolin at their disposal, and a low-cost method of manufacturing it into metakaolin, two of the main roadblocks to the widespread use of metakaolin in concrete – availability and cost – were removed. “One of our founders was aware of this kaolin deposit in southern Saskatchewan,” explains Kelly Babichuk, the company’s president and COO. “He knew that other companies had looked at this property primarily for paper. He got together with a couple of guys, and me, and we took a completely different look at the product. We chose to focus entirely on the cement and concrete industry.”

Dry versus wet When heated, kaolin transforms into metakaolin, which can be used as a supplementary cementing material to replace up to 20 per cent of Portland cement in a concrete mix. Aside from strengthening the concrete, the addition of metakaolin has a number of benefits, including specific environmental advantages. “The process of manufacturing cement emits approximately one tonne of carbon dioxide per tonne of cement manufactured,” explains Babichuk. “The common signature of manufacturing our metakaolin is about 55 per cent lower than cement.” Whitemud Resources has patented a dry process to produce WhitemudMK, an off-white, high-quality, high-reactivity metakaolin.“We don’t use any water,” says Babichuk. “The [other] companies marketing metakaolin to concrete makers are primarily focused on the paper industry and other markets, and their process is designed to produce a paper-grade metakaolin,” explains Babichuk. “They spend quite a bit of money to do that. They will typically use a lot of water in a wet process; they will use magnets to pull iron out and chemicals to bleach the clay, and then heat it to metakaolin.” Whitemud Resources’ process produces cement-grade metakaolin, which is not “pure” enough to be used in paper. “Cement-grade metakaolin doesn’t have all the impurities taken out of it, but in concrete, it doesn’t matter,” says Babichuk.“If there is a little bit of sand, it doesn’t matter. This allows us to sell our product at a third of the price offered by other suppliers.”

Photos opposite page: 1. Mine manager Joe Agostino; 2. Dried, unprocessed ore is sent off to be separated; 3. Siding for road to rail transfer is 13 kilometres from the operation site; 4. Testing sample quality; 5. Metering device used to introduce coal to the coal mill for the firing process. Photos courtesy of Whitemud Resources.

Ironing out the wrinkles The Whitemud Resources operation is located near Assiniboia, Saskatchewan,165 kilometres southwest of Regina and 40 kilometres north of the U.S. border. The formation is a large outcropping, a mixture of kaolin, clay and sand. The kaolin supply, a mixture of about 40 per cent kaolin clay and 60 per cent sand, is located in a quarry near the plant. The ore is shovelled and trucked to the plant and put through a primary crushing system where the kaolin is sorted into piles of different grades. The dry kaolin is fed into a coal-fired rotary calciner and transformed into metakaolin through dehydroxylation at 800 degrees Celsius. It is then cooled in a rotary cooler and pumped into a storage dome that holds about 30,000 tonnes of the finished product. Trucks make short hauls to a loading terminal where the product is transferred onto rail cars. The company began building a 175,000 tonne-per-year processing plant in the fall of 2006 and completed it the following December. But a major processing snag in 2008 during early operations put production on hold for a while. “We experienced serious refractory failures on our 100-foot-long rotary kiln,” Babichuk explains. “The kiln’s lined with refractory brick. We had bricking fall out of the kiln, so that set us back

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featured mine

Storage dome holds finished metakaolin ready for loading

a great deal in both time and money. That’s the type of thing you don’t plan for; not for the heart of the plant falling apart. It was a real blow to us, especially in the summer of 2008 — we had customers ready for our product.” The company relined the whole kiln, taking out all the bricks and starting from scratch. It was a costly decision that they say they do not regret. “We haven’t had any problems since,” says Babichuk.

Looking ahead The company’s long-term vision is to expand to a milliontonne-a-year plant. “There are some drivers that promise metakaolin will have a great future and one of them is the environmental challenges faced by the cement industry,” says Babichuk. “The reduction of carbon dioxide has been identified as a major environmental goal. Five per cent of the industrial carbon dioxide produced is from cement manufacturing. Second, cement producers are under pressure to reduce the emissions of mercury, sulphur and nitrogen. The impact, potentially, is that it will be difficult to have cement plants built in North America,” he says, pointing out that in 2006, approximately 30 per cent of the cement consumed was imported from offshore. But there are other environmental and safety advantages associated with metakaolin as a supplementary cementing material. When added to a concrete mix, it guards against a common problem known as alkali silica reaction (ASR), which occurs between the silica in the rock, the alkaline content in cement and water, and can compromise the integrity 58 | CIM Magazine | Vol. 5, No. 3

of a structure. “This reaction occurs over a period of time and eventually creates expanses that cause the concrete to deteriorate. Metakaolin, pound for pound, is the best additive for stopping that reaction,” says Babichuk. The company is targeting markets that have ASR problems, such as Quebec, Texas and the U.S. Midwest. The plant was designed to expand, and Babichuk says production of metakaolin can rise upwards of 375,000 tonnes per year with a minimum of capital costs. For construction projects, overseas markets such as China and India — which together use 55 per cent of the world’s cement — are also on Whitemud Resources’ radar. But Babichuk says metakaolin has the potential for mining applications as well. Its strengthening qualities make it useful in shotcrete for tunnel and shaft reinforcement. “It’s off-white and it will lighten the colour of the concrete, which is an advantage underground. Plus, metakaolin enhances the pumpability of the product,” says Babichuk. “It flows better through the hose.” He says that there is also the option of using metakaolin in tailings backfill. In mines where tailings are pumped back into the mined areas, operators can mix metakaolin with cement in with the tailings to ensure adequate structural integrity.

The big picture The company has stockpiled ore and is now in the early stages of introducing the product to various markets in North America and abroad. With the advantages of Whitemud’s product – availability, affordability and a greener footprint – on its side, Babichuk says the company is “poised to revolutionize the industry,” and is focused on developing some strategic partnerships to help market the product. From the environmental perspective, he says, it’s a win-win situation. “In the big picture, with our metakaolin plant, we have the potential to effectively remove over 100,000 tonnes of carbon dioxide per year from the atmosphere through the partial replacement of cement. And that’s at this plant. With expansion to a million tonnes a year, we will be pulling 550,000 tonnes of carbon dioxide out of the environment.” CIM www.whitemudresources.com

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mine en vedette

Photo courtoisie de Whitemud Resources

Le minérai excavé est composé d’argile de kaolin à 40 pour cent et de sable à 60 pour cent

Nouvelle image pour une ressource naturelle

Parfois un regard neuf suffit pour être gagnant. C’est la stratégie derrière l’investissement de Whitemud Resources dans 12 000 acres de baux minéraux pour l’un des plus gros gisements de kaolin en Amérique du Nord. Le kaolin est fréquemment utilisé dans les papiers, les céramiques et la porcelaine; la haute qualité requise pour ces applications coûte cependant cher. Whitemud Resources a breveté une méthode rentable pour transformer le kaolin en métakaolin. Lorsque ajoutée au béton, cette substance le rend plus fort et plus durable. « Un de nos fondateurs connaissait ce gisement », explique Kelly Babichuk, président et directeur de l’exploitation. « Il savait aussi que d’autres avaient examiné la propriété, surtout pour le marché du papier. Notre compagnie a cependant décidé de cibler uniquement l’industrie du ciment et du béton. » Une fois chauffé, le kaolin se transforme en métakaolin, qui peut remplacer jusqu’à 20 pour cent du ciment Portland dans un mélange de béton, en plus de le renforcer. Whitemud Resources a breveté un procédé à sec pour produire WhitemudMK, un métakaolin de haute qualité, à grande réactivité et de couleur blanc cassé. « Les autres compagnies qui vendent le métakaolin pour le béton ciblent surtout les marchés du papier et leurs procédés sont conçus en conséquence », explique M. Babichuk. « Elles utilisent beaucoup d’eau; elles doivent ensuite retirer les impuretés et se servir de produits chimiques pour blanchir l’argile avant de la chauffer pour obtenir le métakaolin. Le procédé de Whitemud produit un grade qui n’est pas assez ‘pur’ pour le papier. Nous pouvons donc vendre notre produit à un tiers du prix des autres fournisseurs. » Le gisement qu’exploite Whitemud Resources contient un mélange de kaolin, d’argile et de sable. Acheminé à l’usine avoisinante par camion, le minerai passe d’abord par un concasseur primaire. Le matériau sec est envoyé dans un calcinateur rotatif et transformé en métakaolin par déshydratation à 60 | CIM Magazine | Vol. 5, No. 3

800 °C. Il est ensuite refroidi et stocké avant d’être transféré dans des wagons de chemin de fer pour expédition. La compagnie a construit une usine de transformation de 175 000 t/an, mais un problème technique a arrêté la production pour quelque temps. « Nous avions des difficultés majeures avec notre four rotatif de 100 pieds de long », explique M. Babichuk. « Le four est doublé de briques réfractaires et elles se détachaient, ce qui nous a coûté cher en temps et en argent car il a fallu tout reprendre. » L’objectif de la compagnie est d’atteindre 1 000 000 t/an. « La réduction du dioxyde de carbone est un objectif environnemental majeur. En effet, 5 pour cent du CO2 industriel provient de la fabrication du ciment. Il sera de plus en plus difficile d’avoir de nouvelles usines de ciment en Amérique du Nord », poursuit-il en signalant qu’en 2006, environ 30 pour cent du ciment provenait de l’étranger. Le kaolin possède d’autres avantages : ajouté au béton, il protège contre la réaction alcalis-granulats qui peut compromettre l’intégrité d’une structure par l’expansion et la détérioration du béton. À poids égal, le métakaolin est le meilleur additif pour contrer cette réaction. Les marchés de la Chine et de l’Inde sont dans la mire de la compagnie; ces deux pays utilisent ensemble 55 pour cent du ciment mondial. Le métakaolin peut aussi servir dans les mines souterraines. Ses qualités de renforcement le rendent utile dans les opérations de gunitage des tunnels et des puits. Sa couleur pâle et sa facilité de pompage jouent aussi en sa faveur. Selon M. Babichuk, la compagnie est « prête à révolutionner l’industrie »; elle recherche des partenariats stratégiques pour aider à la mise en marché. « Avec notre usine, nous pouvons retirer annuellement plus de 100 000 tonnes de CO2 de l’atmosphère par le remplacement partiel du ciment. Avec notre agrandissement, nous pourrons atteindre un retrait de 550 000 tonnes de CO2 ». ICM www.whitemudresources.com

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supply side |

When will Canada realize that we must diversify beyond the U.S. market?

COLUMNS

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

Jon Baird Recently, I was pleased to attend a meeting of the Canadian Australian Chamber of Commerce that was addressed by Jack Cowin, founder and chairman of Competitive Foods Australia Limited. Cowin is an expatriate Canadian that I met in Perth, Australia, when we both immigrated there in 1969. While I was involved in mining, he had come to deliver fast food to starving Aussies. Today, he owns a company with $1.2 billion in annual sales revenues that includes 319 fast food restaurants trading as Hungry Jack’s, KFC and Domino’s Pizza. Cowin’s message, as a dual Canadian-Australian citizen, was that Canadians should look beyond the United States, just as he did. He pointed out that a third of the planet’s population lives in China and India and that their economies hardly slowed down during the recent economic crisis. In contrast to the United States, this is in an unenviable situation indeed. Cowin weighed Canada’s recent economic performance against that of Australia’s. Both countries emerged from the economic crisis relatively unscathed, compared to other developed countries, because of the strength of our banking systems and important resource bases. However, Australia hardly noticed the recession, while in Canada, industrial production fell 15 per cent, 400,000 people

became unemployed and real GDP dropped three per cent. What is the difference between our two countries? Australia has a more diversified and Asia-centric trade base. While our major trade partner, the United States, takes 75 per cent of our exports, China takes 20 per cent of Australia’s. China is our fourth largest export market; however, only about two per cent of our exports are destined to that booming economy. Growth is now returning, but which country will do best? In a recent speech, Mark Carney, Governor of the Bank of Canada, pointed out that four developments would have to occur for “securing strong, sustainable and balanced” global growth: “fiscal consolidation” in the United States and several other advanced countries (Japan, Britain, Germany and France); more U.S. household savings; higher domestic demand in China and other emerging markets; and currency appreciation in countries like China with large current account surpluses. In a recent column in the Globe and Mail, Jeffrey Simpson wrote that “U.S. fiscal consolidation is a pipe dream. The country’s deficits are enormous, its debt staggering, its political system deadlocked. If a significant improvement in the U.S. balance sheet is critical for world growth, forget it.” It is not likely that Japan and Europe will do much better and remains to be seen

Giving back Champion for peace On February 10, Don Lindsay, president and CEO of Teck Resources Limited, helped unveil the Vancouver 2010 Olympic Truce Installations. The installations are focused on telling the Games’ story of peace, respect, tolerance, fair play and inclusivity. Teck, an Official Supporter of the 2010 Winter Games and the metals supplier for the Vancouver 2010 medals, helped fund the installation project.

as to what China does about letting its currency float upwards. Both Cowin and Carney warn that the United States is burdening itself with debt, postponing days of fiscal reckoning. ”Buy American” protectionist tendencies are appearing. The challenge for Canadian business is to move beyond the cocoon of the American economy. As Simpson says, “It’s a hard challenge for a country with so many branch plants, so few head offices, so much self-satisfaction and a long tradition of looking only south.” Canada’s mining industry and its suppliers are perhaps this country’s leading sector in realizing the opportunities that lie in investment and trade outside of North America. There are approximately 5,000 Canadian mining projects in about 100 countries worldwide. Many of the products and services used in these entrepreneurial investments come from Canada. But what is the Canadian government doing? In my view, next to nothing. Budgets for trade diversification and trade promotion have shrunk to nil. Our diplomatic corps — except perhaps those in Washington and Afghanistan — are starved for personnel and funding. There is effectively no long-term plan in place that will help our trading nation to prosper over the long term in a globalizing world. CIM www.camese.org

About the author Jon Baird, managing director of CAMESE and the immediate past president of PDAC, is interested in collective approaches to enhancing the Canadian brand in the world of mining. May 2010 | 63

COLUMNS | MAC economic commentary The good, the bad and the need for more Federal Budget 2010 tabled Paul Stothart Federal Finance Minister Jim Flaherty tabled Budget 2010 on March 4 — on the heels of a two-month prorogation of Parliament and the previousday’s delivery of a Throne speech. The budget was prepared in a context where global economies seem to be recovering from the turbulence of the past 18 months. Real Canadian GDP declined by 2.5 per cent in 2009 and, according to budget forecasts, is expected to increase by 2.6 per cent in 2010 and 3.2 per cent in 2011. The main thrust of Budget 2010 was to deliver the second year of Canada’s Economic Action Plan. The government has been actively communicating its view that stimulus spending through the plan’s first year played a role in Canada’s economic recovery.

While the degree of correlation between the two remains unclear, it is evident that the massive program spending increases announced a year ago (from $207 billion in 2009 to $229 billion in 2010) has contributed to the largest government deficit in Canadian history — a formally confirmed $53.8 billion in 2009-10. Budget 2010 outlines a further $19 billion in new federal stimulus efforts consisting of a combination of income tax measures, training and Employment Insurance benefits, infrastructure spending, innovation support and regional spending. The following key measures in Budget 2010 are relevant to the Canadian mining industry: • The temporary 15 per cent Mineral Exploration Tax Credit is an incen-

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64 | CIM Magazine | Vol. 5, No. 3

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tive available to individuals who invest in flow-through shares to finance mineral exploration. Budget 2010 extends the credit for an additional year, until March 31, 2011. Funds raised with the credit could therefore support eligible exploration until the end of 2012. The government is reducing Canada’s corporate income tax rate from 22 per cent in 2007 to 15 per cent in 2012 — a previously announced schedule that is confirmed in Budget 2010 as continuing on the same timetable. Budget 2010 provides $12 million over two years to Natural Resources Canada to renew the Targeted Geoscience Initiative (TGI), with a focus on developing new ways of exploring for deeper mineral deposits. The TGI is an effective complement to the larger Geo-mapping for Energy and Minerals program announced two years ago. As noted in the Throne speech, the government intends to liberalize foreign investment rules in Canada’s uranium sector to ensure that growth is not hampered “by unduly restricting foreign investment.” It remains unclear whether the government will seek foreign reciprocity in this regard, as was recommended in the 2008 Competition Policy Review Panel report. The government also committed in the Throne speech to “untangle the daunting maze of regulations that needlessly complicates project approvals” in Canada’s resource sector. Budget 2010 includes three partially relevant measures in this regard, namely: $11 million over two years to Indian and Northern Affairs Canada to support the acceleration of the review of resource projects in the North; $2.8 million over two years to the Canadian

MAC economic commentary | Environmental Assessment Agency (CEAA) to support project-related consultations with Aboriginal Canadians; and delegating responsibility for conducting environmental assessments from the CEAA to the National Energy Board and to the Canadian Nuclear Safety Commission for relevant energy projects. On balance, MAC welcomes these commitments and views Budget 2010 as being appropriate for the times. However, there are some areas where further details and evidence of progress will be required in the coming months. For example, the budget is silent regarding funds for the nascent Canada Mining Innovation Council, which Natural Resources Canada has been actively promoting over the past year. As well, details regarding how the government plans to untangle the maze of needless project approval regulations and processes are also required.

The coming year may also make more evident the need for a credible plan to return the large federal deficit to a balanced position. There is a three-point plan outlined in Budget 2010 to return to balance as the economy recovers, although it draws primarily upon assumptions of revenue growth while ending some stimulus spending, capping growth in some programs, and introducing some symbolic measures. It should be noted that falling just one per cent short of economic growth projections would add a further $3 to $4 billion onto the federal deficit. The Parliamentary Budget Officer is already on record as estimating a structural deficit approaching $20 billion per year. Beyond this, Canada faces the challenge of an aging society, with increased demands on healthcare and other serv-

COLUMNS

ices and federal transfers. Budget cycles of past decades have shown that weaning governments off deficits and debt financing can be a difficult political task â&#x20AC;&#x201D; the last time Canada entered a deficit situation, it took 22 years to return to a balanced budget. The longer Canada takes to return to a balanced fiscal position, the greater the risk of mounting interest rates and inflation â&#x20AC;&#x201D; none of which would be positive for business investment or for job creation. CIM www.mining.ca

About the author Paul Stothart is vice-president, economic affairs, at the Mining Association of Canada. He is responsible for advancing the industryâ&#x20AC;&#x2122;s interests regarding federal tax, trade, investment, transport and energy issues.

May 2010 | 65

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CMIC federal funding Report provides quick access to opportunities for mining industry Heather Ednie The Canada Mining Innovation Council (CMIC) has posted an updated report (available on its website) providing highlights of federal funding mechanisms for research and innovation relevant to the mining industry in Canada. “Highlight — Federal Funding Mechanisms Relevant to Mining Research and Innovation — Update,” includes information on 16 federal departments and not-for-profit entities that provide funding and programs that offer support for mining industry innovation efforts. The report was updated this year following the announcement of the 2010 budget. Additions of note include: • Office of Energy, Research and Development’s Clean Energy Fund — $1 billion over five years; and its Green Infrastructure Fund — $1 billion over five years • Geological mapping investing in new exploration technologies for deep deposits — $12 million over two years (2010 to 2012) • National Research Council Regional Innovation Clusters to foster knowledge-based partnerships, helping regions and communities to build competitive advantage — $135 million over two years (2010 to 2012) • Canadian Northern Economic Development Agency (CanNor) — $50 million over five years (2009 to 2013) The key findings of the report suggest that few federal research and innovation funding programs are targeted specifically for the mining industry. Rather, most programs are open to strong competition across several sectors, particularly the environment, natural resources, energy, health, and information and communications technologies. Because of this competition, stakeholders are making major efforts to achieve greater success in winning

programmatic funding by improving collaboration among various stakeholders and by aligning efforts with government priorities and directions. The report also indicates that many sectors have developed, or are developing, technology “roadmaps” and strategies that identify priorities for research and development, which most federal programs require be identified. There are wide variations between sectors in their description of R&D priorities and the underlying analysis. CMIC is actively working with the mining sector to increase collaboration and to identify needs and priorities on the subjects of energy, exploration and tailings. Finally, recognizing that the environment, energy, health and safety, and information and communications technologies frequently fall under the direction of agencies that interact with many industry sectors, the report indicates that the mining industry needs to expand its contact with these agencies, so the mining dimension of key issues can be included in their funding opportunities criteria. The federal government provides substantial assistance for science and innovation, including advanced research, up-to-date scientific infrastructure, access to advanced skills training for Canadians, and investments with the private sector to commercialize knowledge and convert it into economic gains. Because the field is so vast, the material in CMIC’s funding report provides a window into the opportunities. It includes initiatives that would help industry increase innovative capacity, improve energy efficiencies and reduce greenhouse gas emissions. Three additional websites that provide good entry points for gathering further information on the relevant programs are suggested within the report:

• Technology Early Action Measures (TEAM), an interdepartmental technology investment program that supports projects that mitigate GHG emissions and sustain economic and social development (www.team.gc.ca/English) • Office of Energy R&D Programs (www.nrcan.gc.ca/eneene/science/ propro-eng.php) • Office of Energy Efficiency Programs (oee.nrcan.gc.ca/English). CIM For more information and to discover opportunities for funding of innovation and research projects, please visit www.cmic-ccim.org.

Funding for mining in Canada The CMIC report highlights funding programs offered by a number of federal departments and not-for-profit entities including: Atlantic Canada Opportunities Agency Canada Economic Development for Quebec Regions Canada Foundation of Innovation Canada Revenue Agency: Support for Education and Training Skilled Trades Canadian Northern Economic Development Agency Community Adjustment Fund Federal Economic Development Initiative in Northern Ontario Human Resources and Social Development Canada National Research Council Natural Resources Canada Natural Sciences and Engineering Research Council of Canada Networks of Centres of Excellence Pre-Competitive Applied Research Network Scientific Research and Experimental Development Support for Post-Secondary Education Western Economic Diversification Canada May 2010 | 67

COLUMNS | HR outlook Bridging the gap Work readiness program helps employers address critical HR challenges Lindsay Forcellini The Canadian mining industry will soon benefit from a national work-ready program for Aboriginal Peoples that will provide a practical solution to current recruitment challenges and help employers address and fulfil future labour needs. MiHR is launching the Ready to Mine, Skills Development Project, in partnership with the Assembly of First Nations, to increase the involvement and engagement of Aboriginal Peoples in the mining sector and to help employers gain access to an increased pool of work-ready individuals who are often located near Canadian mines and exploration sites. The project provides a strategic solution to the industry’s current struggle to find skilled workers and will help employers offset the gap from the unprecedented number of mining workers slated to retire in the near future. The Ready to Mine, Skills Development Project was conceptualized after MiHR’s 2009 needs assessment revealed national interest in an essential skills program for the industry. This pre-employment mining training program is a potential entry point to MiHR’s Canadian Mining Credentials Program. It can be delivered by a number of training experts or community facilities and will be based on an industryapproved, entry-level skills training standard. The project includes the development of a training curriculum, a learner’s workbook, assessment tools and an online database to track participants and success rates. The benefits include consistency in learning outcomes, increased worker mobility and bridging the gap between career-seeker skill levels and employer demand level for skills. 68 | CIM Magazine | Vol. 5, No. 3

The program will help ensure Aboriginal Peoples have the skills and confidence needed to enter the mining industry, giving them an advantage to embark upon a rewarding career in one of Canada’s highest paying industries. Adele Faubert, manager of Aboriginal affairs at Goldcorp Inc.’s Musselwhite Mine and member of the Ready to Mine Steering Committee, views the program as a viable solution that is mutually beneficial to both employers and Aboriginal communities. “It makes good business sense to have a local trained workforce at a remote mine site,” Faubert explains. “And employment opportunities are much needed within remote [Aboriginal] communities because the unemployment rate is high. The local community elders really support employment for their youth for the health and wellbeing of the community; the more people they have employed, the more functional the community.” Faubert feels MiHR’s partnership with the Assembly of First Nations on the project will help ensure the training program is culturally sensitive and more readily accepted within Aboriginal communities. This partnership also builds upon the Guide for Aboriginal Communities and Mastering Aboriginal Inclusion in Mining publications released last year.

The pre-employment program will also help employers by enhancing the relationship and cooperation among Aboriginal communities and the mining industry, and facilitating a medium for partnerships between Aboriginal training organizations. MiHR and the Assembly of First Nations are partnering with the following organizations in the project’s development: the Prospectors and Developers Association of Canada, the Mining Association of Canada, Indian and Northern Affairs Canada, the Native Women’s Association of Canada, Inuit Tapiriit Kanatami, Métis National Council, Natural Resources Canada, Association of Canadian Community Colleges, Mine Training Society and Yukon Chamber of Mines. The project, funded by Human Resources Skills Development Canada’s Aboriginal Directorate under the Aboriginal Skills Training Strategic Investment Fund, will undergo a pilot testing phase. Participants will be identified based on program interest, proximity to mine sites, community needs and proven track record for training delivery. CIM For more information on the Ready to Mine, Skills Development Project, please contact Melanie Sturk at msturk@mihr.ca.

About the author As marketing and communications coordinator, Lindsay Forcellini is responsible for supporting MiHR’s communications and online media initiatives, and coordinating the production of marketing and communications materials. Formerly a writer for Natural Resources Canada, she holds a bachelor’s degree in journalism from Carleton University.

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COLUMNS | eye on business The Supreme Court of Canada Red Chris ruling may impact mine developments Charles Kazaz

www.fasken.com/global-mining/

On January 21, 2010, the Supreme Court of Canada handed down a long awaited decision in Mining Watch Canada v. Canada (Fisheries and Oceans). The Court unanimously decided that the nature and extent of an environmental assessment (EA) conducted under the Canadian Environmental Assessment Act is based on the description of the project proposed by a proponent and not on the description of the project once it is scoped by a federal government authority.

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The decision puts a damper on the practice of segmenting a project in order to accelerate the EA process and instead encourages the coordination of federal and provincial EA processes to make the process more efficient. The decision will influence the scope and timing of federal EAs.

Background

Generally, under the Canadian Environmental Assessment Act, an environmental assessment is triggered when: (i) the federal government undertakes a project; (ii) the project is carried out on federal lands; (iii) the federal government provides funding so a project can proceed; or (iv) where the federal government is required to issue certain permits for the project. An EA will proceed either by way of a screening level assessment or a comprehensive study. A comprehensive EA is a more BOOTH 619 intensive process where there are greater procedural requirements for public consultation, government funding to facilitate public participation and ministerial oversight. A comprehensive EA is triggered if the project is described in a list found in the Comprehensive Study Regulation. If listed, the Minister of the Environment decides whether to refer the project to a responsible authority for a comprehensive study, a mediator or a panel review. The decision involved the development of a copper and gold open pit mining and milling operation in northwestern British Columbia proposed by the Red Chris Development Company (Red Chris). The project triggered an EA under the Canadian Environmental Assessment Act because it required permits under the federal Fisheries Act and For over 80 years, Linatex has supplied the world with quality process equipment lined with Linatex Premium Explosives Act. As a result, the Department of Rubber. And now Linatex introduces its range of 4th Generation Process Equipment. Fisheries and Oceans and Natural Resources Whether you need one piece of process equipment or an Canada were responsible authorities for conentire plant, our custom-engineered solutions can give you the lowest cost of ownership. ducting an EA.

The Red Chris project In its application, Red Chris described the project as an open pit mine with associated infrastructure including a tailings impoundment area, access roads, water intake, transmission lines and accessory buildings. The proposed mine exceeded the 3,000 tonne-per70 | CIM Magazine | Vol. 5, No. 3

eye on business |

day threshold for metal mines established under the Comprehensive Study Regulation for triggering a comprehensive EA. After reviewing the Red Chris submission, the Department of Fisheries and Oceans scoped the project to exclude the mine and mill, which put the project outside a comprehensive review. The court analyzed whether the track for an EA (screening level or comprehensive review) is determined based on the project that is submitted by the proponent or the project as scoped by the responsible authority.

COLUMNS

extent where a comprehensive EA is triggered. For projects that fall within the comprehensive EA, permitting will be subject to greater public consultation, take longer to complete and be more costly. The decision also provides greater opportunity for litigation as proponents and third parties may challenge the scoping of a project by a responsible authority as being too broad or not broad enough. That said, one hopes that federal and provincial authorities follow the recommendation of the court and coordinate EAs to avoid duplication and achieve efficiency in the process. CIM

The Supreme Court decision The Supreme Court concluded that the procedural track is determined based on the project description as submitted by the proponent. The court also determined that the responsible authority has no discretion to determine the procedural track but does have some discretion to determine the scope of the project. That said, the responsible authority cannot reduce the scope of project to something less than what the proponent has proposed. Therefore, if a proposed project triggers a comprehensive review, it cannot subsequently become a screeninglevel assessment. On the other hand, if the project submitted by the proponent does not fall within a comprehensive review, the responsible authority has the discretion to expand the scope of the project so that it falls within the comprehensive review. In its decision, the court discourages project splitting, where a proponent represents part of the project as the whole or segments the project into parts. The court appears to be sending the message that projects should be scoped broadly such that all components of the project are included within the EA. In response to the concern that the federal EA coupled with a provincial EA process is unnecessary, costly and inefficient, the court takes the view that efficiency can be achieved not by reducing the scope of the EA but by the coordination of federal and provincial EAs.

Possible implications By concluding that a project can be scoped up to a comprehensive review but not down, the natural reaction may be to describe a project as narrowly as possible so as to attempt to avoid a comprehensive EA. The court addresses this concern by indicating that the Canadian Environmental Assessment Act assumes that a proponent will represent the entirety of a project. Project proponents will need to carefully consider how they submit their proposals to regulators. A broad description may trigger a comprehensive EA while a narrow description may result in the responsible authority broadening the scope or litigation challenging the responsible authoritiesâ&#x20AC;&#x2122; decision. As a result of the Red Chris decision, we may see projects scoped more broadly by responsible authorities to the

About the author Charles Kazaz is a partner at Fasken Martineau DuMoulin LLP and specializes in the area of environmental law.

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COLUMNS | safety Nickel mine turns safety record on a dime Behaviour shift snares Xstrata Raglan top safety prize Gillian Woodford In five short years, Xstrata Nickelâ&#x20AC;&#x2122;s Raglan Mine in northern Quebec took its total reportable injuries per million hours worked from 110 in 2003 to just 11.5 in 2008. This remarkable feat earned it the John T. Ryan Safety Award for a metal mine in the Quebec/Eastern Canada region and the Oâ&#x20AC;&#x2122;Connell Award for this health and safety achievement from the QuĂŠbec Mining Association. Terry Mallinson, former interim general manager at Raglan (now head of exploration for Xstrata Nickel Australia), credits the win to a complete overhaul of the safety vision at the mine. â&#x20AC;&#x153;We had to start with the belief that you can work in the mining industry safely,â&#x20AC;? he says, â&#x20AC;&#x153;and then we could successfully shift the culture of the average worker.â&#x20AC;? The turnaround didnâ&#x20AC;&#x2122;t happen by magic. Unhappy with the mineâ&#x20AC;&#x2122;s safety record, Xstrata brought in the consultancy firm Axiome to help sort things out. â&#x20AC;&#x153;We found that three-quarters of the accidents were related to behaviour,â&#x20AC;? explains Joel PagĂŠ, direc-

Photo courtesy of Xstrata Nickel Raglan Mine

Allie Ohaituk (nicknamed â&#x20AC;&#x153;Safety Manâ&#x20AC;?) and Johnny Eyaituk (right); two wash bay employees at Xstrata Nickelâ&#x20AC;&#x2122;s Raglan Mine

tor of sustainable development and health and safety at Raglan. The consultants implemented the Prevention Response program. Its goal â&#x20AC;&#x201D; â&#x20AC;&#x153;that all individuals, in their daily tasks, develop the â&#x20AC;&#x2DC;prevention responseâ&#x20AC;&#x2122; of making the right choice, at the right time, whatever the context.â&#x20AC;? Buying into that approach means making prevention a fundamental component

of the management process and it needs to be reflected in the actions of every member of the organization. â&#x20AC;&#x153;The goal of the prevention response process is to raise the awareness of the players and to mobilize management and company strengths around a homogenous value-driven code of conduct,â&#x20AC;? says PagĂŠ. â&#x20AC;&#x153;We ask supervisors to make daily â&#x20AC;&#x2DC;observed

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72 | CIM Magazine | Vol. 5, No. 3

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safety | COLUMNS prevention reflexes’ on good and bad behaviours. At the end of the day, the supervisors enter their ‘reflexes’ into the software, and at the end of the month, they analyze them and review them during safety meetings.” After a couple of months, supervisors are asked to identify trends and build an action plan with the workers based on safety priorities. Secondlevel supervisors then carry out an audit to ensure that the action plan was carried out successfully. Each week, first-level supervisors are given a new “reflex” that focuses on a specific aspect of safety. “Since the beginning of 2008, we have worked with our supervisors in training and coaching sessions. We are now ready for the next phase, which is starting multi-media training sessions with our 950 workers on their health and safety responsibilities at work and at home,” Pagé continues. “We want workers with a strong health and safety behaviour.” Mallinson notes the program is also used to log positive behaviours. “At a toolbox meeting, someone may advise staff that the roads are slippery,” he says. That kind of proactive safety behaviour is what everyone wants to see more of at the end of the month. So far, the results speak for themselves. “In 2009, we had just one losttime incident, versus 11 in 2008,” says Mallinson. “The goal for 2010 is less than 10 reportable injuries per million hours, and zero lost time.” Typical accidents include hand injuries such as cuts, pinched fingers, bruises and particles in the eye. Another big source of trouble in the harsh local climate is vehicles veering off the road. “We had a big drop in road accidents,” says Pagé. These reductions are significant for a big mine like Raglan. With both open pit and underground operations, the mine produces a hefty 1.3 million tonnes of ore per year. The unionized mine, located in the remote Nunavik region of Quebec, employs around 730 staff and 200 contractors. Though participation is voluntary, the program does keep tabs on

departments to see who is not logging anything and why. But this has not been a big problem at Raglan, as uptake has been very strong. “It becomes contagious,” says Mallinson. There are prizes to keep people extra motivated. The behaviour-based safety program is in the third year of its four-

year roll-out. The Xstrata Nickel management could not be more pleased with how things are going. “This has been a real hallelujah moment for us,” says Mallinson. “It’s not perfect, and it’s just the start, but it’s a way of life now.” CIM www.xstrata.com

May 2010 | 73

COLUMNS | women in mining Passion turned career Goldcorp’s Valerie Pascale is making her mark on CSR Heather Ednie

74 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of Goldcorp

Annual Cultural Day celebrations at Goldcorp’s Éléonore site in Quebec are led by the local Cree communities. In 2009, Erin Rose (left) celebrated her walking-out ceremony on site, a Cree tradition that welcomes children into Cree society. Inset: At Marlin Mine in Guatemala, Pascale is suited up in full safety gear for an underground mine tour.

Photo courtesy of Goldcorp

Valerie Pascale, now manager of corporate social responsibility (CSR) at Goldcorp, was looking to forge a successful career that enabled her to travel globally, influence policy development and work in strategic partnership-building and stakeholder engagement. “I was always interested in doing something in the field of international development, but you never know exactly where you’ll end up,” she says. With a background in international development and a wealth of experience with non-governmental organizations (NGOs), Pascale turned her sights towards the mining industry and set down the path of a flourishing career. Since graduating in International Development from the University of Guelph in 2005, Pascale has worked and volunteered with various NGOs in a variety of roles. She was a funding coordinator at Pueblito Canada, community catalyst for War Child Canada, and an event support worker for World Literacy Canada. She also managed an Aboriginal business development program called Project Beyshick through the P.O.A. Educational Foundation, and taught fair trade workshops to high school economics students at the Western Academy of Beijing. Pascale started off in mining as a social impact management consultant with Hatch Associates in 2007. There, she worked with extractive industry companies to assess the potential impact of projects on local communities, identify partnership opportunities

www.goldcorp.com

with stakeholder groups and develop socially responsible business practices for sustainable community development. Two years later, she made the move to Goldcorp.

“My role at Goldcorp was more suited to what I was looking for,” Pascale explains. “I felt I had done what I could at Hatch — it was a new area for the company when I started, and I had helped set up the structures and tools. I was getting a bit restless as a consultant and was interested in doing something more hands-on.” “At Goldcorp, we’re building the framework and systems needed to foster an international corporate culture around CSR that is so widespread it drills down to the very roots of the corporation,” Pascale continues. “We’re starting corporate responsibility measures at the earliest stages of our projects to get it right. I’m

women in mining | engaging with NGOs and working towards development goals from within the company itself everyday. It’s very interesting for me.” As CSR manager, Pascale is responsible for the continued development of CSR policies, frameworks and strategies, and for ensuring these are aligned with global standards and best practices. To date, she has travelled to a number of the company’s sites in Canada, Mexico and Guatemala. “I have been thoroughly impressed,” she says. “Spending time on site has given me a first-hand look at the interesting programs and initiatives we have going on. For example, at the Éléonore project in Quebec, we have taken a collaborative approach to project development with our local Cree communities. We align our interests and share the risks and benefits involved in making the project a success.” Last year, Pascale went to Éléonore for their annual Cultural Day celebrations.

On a recent visit to the company’s Guatemala operations, she attended a community relations meeting with the mayor of the local town and met some of the local community. “It seemed like an open relationship with the people,” she recounts. “And I was able to see aspects of the site that you don’t always hear about.” She hiked down to the Tzala River to take samples with a regulator, and visited the nursery where they are growing trees in preparation for reclamation and closure. “It is important to see first hand what is actually going on and to hear what people in the community are saying regarding our activities,” she says. “We want to be a valued community partner. Nothing is black and white. It’s organic — everything changes, people change. And there’s no clear formula. You have to stay engaged, listen and be open.” Pascale’s interest in CSR issues reaches beyond the company’s borders.

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She is a member of the interim executive committee of the Centre for Excellence in CSR and is active with the Devonshire Initiative, PDAC’s CSR Committee and Women in Mining. Last November, she addressed the United National Committee on Sustainable Development on behalf of the global mining industry, as a representative of the International Council on Mining and Metals (ICMM). So far, Pascale says she has enjoyed her career in the mining industry. Having come from the NGO world, she brings with her invigorating approaches to community development and partnership-building. At Goldcorp, she is focused on structuring a responsible culture throughout the company and has forged a career dedicated to international development. Only five years out of university, Pascale is looking towards an exciting and challenging career in mining. CIM

May 2010 | 75

COLUMNS | engineering exchange Engineering for change New Afton requires flexible design and planning Heather Ednie

76 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of AMEC employees

New Afton cold storage warehouse installation nearing completion in February 2009; Inset: SAG mill installation underway in February 2009

Photo courtesy of AMEC employees

The New Afton Mine, owned by New Gold Inc., is currently under construction, with a planned production start-up in mid-2012. Once built, New Afton will produce 11,000 tonnes per day of primarily gold and copper ore with an average grade of 0.95 per cent copper and 0.69 gpt gold. Located west of Kamloops, British Columbia, on the site of the original open pit Teck Afton Mine, the New Afton Mine will be an underground block caving operation. This mining method, not typically done in Canada involves approaching from the underside of the ore body and mining from below, basically collapsing the ore on itself. The block caving method will result in some surface subsidence and potential damage to surface infrastructure. The effects of this subsidence will need to be monitored throughout the life of the mine so that remedial actions can be planned to minimize the extent of any damage. “Over the 15 years of the mine life, the surface above the ore body will continue to slump inwards effectively creating a surface depression instead of a large open pit on surface,” explains Sean Lynn, project manager for AMEC, which was contracted for engineering, procurement and some construction management services for the project. As part of their contract, AMEC is responsible for the design of the surface facilities and infrastructure as well as the underground infrastructure. Block cave mine design is being provided by AMC Consultants. The challenge posed by the block caving method is the necessity to delineate the surface area that will move as mining activities continue as it is possible that some movement could be seen in areas around the

www.newgold.com; www.amec.com

mill building. An estimate of the amount of subsidence that can be expected was prepared by AMC Consultants, with input from geotechnical experts. Given its size and importance, the mill building has required some special design measures to mitigate potential damage to building components as a result of movement, including the incorporation of lateral subsidence joints in four places across its width, dividing it into five roughly equal sections. This is intended to concentrate, as much as

possible, any subsidence damage into movement in the joint material. Particular attention will be paid to the subsidence joints in the crane runways of the building. Regular inspection of the joints and the alignment of the rail and connecting parts will be necessary. “Periodic, controlled crane test runs are also advised,” Lynn adds. If subsidence movement occurs, the short lengths of crane rail located directly over the subsidence joints may need to be replaced to reduce excessive crane wheel wear and prolong the serviceability of the cranes. In addition to the subsidence effects on surface infrastructure, there are piping installations running the length of the mill building that required special attention to ensure they can handle the effects of potential building movement. AMEC carried out an extensive review of the pipes that would be affected by building movement and incorporated numerous expansion joints into the design.

engineering exchange | Changing with the times AMEC was awarded the engineering and procurement contract for the New Afton project in May 2007. By September 2007, New Gold rolled AMEC’s contract into a full EPCM agreement, and work was getting started on procurement and field activities. At the time, AMEC had 60 people working on the project. In February 2008, AMEC mobilized the construction management team to the field and launched the earthworks and concrete foundation construction. The mill building contract was awarded as well as those for other onsite buildings. However, in November 2008, New Gold announced a slowdown in the project’s progression, due to market conditions and other activities across the company. Much of the team was demobilized from site. AMEC’s role became one of negotiator, helping New Gold cancel many of the procurement contracts already in place. Although much of the major

mill equipment — SAG mill, ball mill, regrind mill, flotation cells, electrical transformers — was acquired and either installed or placed in long-term storage, most of the smaller equipment orders were delayed or cancelled. “The decision to slow down the project was perfectly logical to us,” Lynn explains. “The challenge became to get out of the commitments in a cost-effective way.” Instead of cancelling orders outright, many commitments to purchase were maintained but delayed, and AMEC was able to get the certified engineering drawings to use in planning. As a result, the lengthy procurement process will not have to be endured again upon restart. With the slowdown in late 2008, the plan was to carry on with underground development, but no other work until January 2011. Earlier this year, however, New Gold realized an opportunity to proceed more swiftly with certain elements of the construction program and revisited that decision. AMEC has

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helped develop the 2010 construction program, which includes all buried services installation, phase 1 of the underground infrastructure installation (including conveyors and a temporary crusher), completion of the crushed ore stockpile area and the reclaim tunnel and slab, and the surface installation of the head end of one of the conveyors, which discharges directly to the ore stockpile. The plan is to have the underground conveyors and temporary crushing circuit up and running by March 2011, to begin stockpiling ore on surface. Planned development ore stockpile capacity is 400,000 tonnes. “Currently, we are just ramping up to complete the engineering necessary to support the 2010 construction program,” Lynn says. Although the project construction schedule has changed in response to market conditions, New Afton is still well on its way to becoming a new producer of gold, copper and silver in British Columbia. CIM

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May 2010 | 77

COLUMNS | canadians abroad A multinational marathon of a career Simon Handelsman has learned that common-sense approaches go a long way in building trust across borders

It is not uncommon in the Hand crushing of gold ore, minerals industry for peoRwamagasa, Tanzania ple’s careers to include considerable international experience. But even by the sector’s globetrotting standards, Simon Handelsman’s career has been a multinational marathon. As a senior advisor on global issues, Handelsman has been to virtually every corner of the world. Along the way, he has learned that the most important skills for international success are rooted in common sense. After all, it is not so complicated to just listen carefully; to try to understand local cultures, customs and aspirations; and to respect communities and their values. “Mining is an international business, and has been for a long time — even before globalization,” says Handelsman. He began working overseas early on in his career, when he ran a Vancouver-based consulting service for Rio Tinto.

CALL FOR PAPERS

43rd Annual Canadian Mineral Processors Operators’ Conference January 18-20, 2011 | Ottawa, Ontario The Canadian Mineral Processors annual conference promotes the exchange of ideas on all aspects of mineral processing. Abstracts (~200 words) are now being accepted for next year’s conference; you have until June 15, 2010 to submit. Topics must relate to mineral processing, but more specifically be from operating plants describing plant start-ups and improvements, application of new technologies, ore characterization and process mineralogy in optimization and design, and precious metals recovery. However, papers on other aspects of interest will also be considered. Send abstracts to:

Donald Leroux, 1st Vice Chair CMP, GENIVAR, 1175 Lebourgneuf Blvd, Suite 300, Québec City, Québec, G2K 0B4; Tel.: 418.780.2212 (ext. 10090)

www.cmpsoc.ca

78 | CIM Magazine | Vol. 5, No. 3

Photo courtesy of Simon Handelsman

Heather Ednie

In 1984, Handelsman was recruited as a technical advisor by the United Nations. Over the next decade, he spent at least 40 per cent of his time abroad in developing countries. “I was a roving consultant, part of a team offering advice on a wide range of mining activities,” he explains. His work touched a number of fields, including project finance, due diligence, evaluation, appraisal and selection, mining engineering, sustainable development and, more recently, human rights, ethics and corporate social responsibility. “We were a full-service technology transfer group, and also ran workshops and seminars,” he says. “Back then, it was not fashionable to be doing such work overseas. Now, everybody is doing it; but at the time, we were simply meeting a need.” The need was as enormous as it was varied. In Nepal, at a lead-zinc prospect near the Sino-Nepalese border, Handelsman’s team defined a feasibility study. In China, they helped the government develop a project to introduce modern processing, management and interpretation methods for exploration-related geophysical data. In Morocco, they developed a computerized mine title management system. At a rock salt and potash site in Thailand, the team evaluated the potash resources, assisted with policy development and negotiation, executed a bankable study, conducted test mining and undertook market studies. In Mali, they identified the nine-kilometre-long Syamaan anomalous area with a regional geochemistry exploration program led by UN chief technical adviser Michel Atger, a French geochemist, conducted statistical analysis and helped negotiate a concession.

canadians abroad |

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Photo courtesy of Simon Handelsman

General view of an artisanal gold mining processing area, Mgusu, Tanzania

They also helped upgrade North Korea’s steel drill bit manufacturing capacity to support the local mining industry. In Tanzania, they helped establish a national mineral data bank. Simon Handelsman Handelsman returned to Tanzania with the Global Mercury Project, an effort to introduce social and economic strategies as ways of reducing mercury pollution from artisanal and small-scale mining by alleviating extreme poverty. His task was to obtain information from local sources about the quantities of mercury entering the country, formal and informal distribution channels and end uses. Similar work took him to Brazil, Kenya and Zimbabwe. With all these assignments, Handelsman realized that what happens in the field is very different from what people tell you in the office. It was only by keeping an open mind and engaging the local people that he could fill in the gaps between office-generated data and fieldbased reality. “For example, once in northeast Cambodia, we learned that small-scale gemstone mining was dangerous,” he recalls. The source of the danger was not one that is often encountered at any Canadian mine. “Cobras inhabited the area and would slip down the holes,” Handelsman explained. “They would get quite annoyed when disturbed.” Not even a travel-hardened mining man like Handelsman wanted to annoy a Cambodian cobra. “But the local people were happily collecting the stones and even showed us some of the gems they had gathered. Local information is invaluable for risk assessment.” Handelsman feels that the one thing to be done that could greatly assist Canadians working abroad is to improve the overall reputation of Canadian companies operating overseas. “This situation needs serious attention — not just a public relations effort, but true behavioural change,” he says. “Yes, many Canadian companies are doing great things globally. But you’re always judged by the worst performer.”

Handelsman does his best to act as a good diplomat representing Canadian mining. His approach with local communities is simple. He explains what he is doing and what the project he is working on entails. He shows genuine interest in the local people’s persuasions and aspirations, and makes sure to not come across as giving orders. “You have to build trust and remove distrust,” he declares, adding, “It is common sense; but common sense isn’t very common.” CIM

May 2010 | 79

COLUMNS | student life Think beyond the resumé Valuable experience and contacts are gained through student involvement Jordan Gonzalez

The University of Saskatchewan Mining Games team

Photo courtesy of Jordan Gonzalez

Extra-curricular activities are not only valuable because they look good on your CV. Taking part in studentrelated activities is a great way to meet fellow students and create potential life-long contacts. As the University of Saskatchewan Mining Games captain and a member of the Geological Engineering Students Society (GESS), I have developed friendships with members from thirdand fourth-year engineering and contributed to important decision-making exercises. Not only have I made new friends, but have also had access to potential future employers through my involvement. Getting involved in extra-curricular activities shows one’s dedication towards one’s college or discipline. We strive to improve a little bit each year, and it has paid off. Just over the last couple of years, we have succeeded in creating a more structured Geological Engineering Students Society and Mining Games team. More interest is being shown at the early stages as the geological program continues to grow.

Geological engineering students have always been a close-knit group and a solid bond is created among classmates through activities like bowling with the professors. They are great ways for everyone to get involved and create new friendships. As captain of the Mining Games team, some of my duties consisted of securing enough funding to cover the

team’s travel expenses. The selection of the team members was based on interest and commitment towards the team and the mining industry. This year, we also decided to include thirdyear students on the team to ensure a more experienced lineup for next year’s competition. Because the University of Saskatchewan does not specialize in mining, we signed on for as

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80 | CIM Magazine | Vol. 5, No. 3

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student life | much training as we could in events such as mine rescue and jackleg, thanks to the support of PCS Allan. It was a great experience for the team to see how we measured up to all the mining universities across Canada. Being involved in the Mining Games gave me the chance to develop leadership skills and helped to improve my public speaking, as I had to give presentations about the games and the team’s success. Just recently, we began looking into creating a committee to lobby for the University of Saskatchewan to host the Mining Games for the first time in the next few years. We have targeted the second- and third-year students, mainly to see where their interest lies within the mining sector. The newly launched CIM Student Chapter has created another area where students can get involved and learn about the mining industry. Living in a province with a lot of mining activity, there are many areas where students can get involved. You just need to research what is out there. Having attended the Students’ Night, I saw the potential for it to be a very successful chapter with not only geology students in attendance, but also mechanical and chemical engineering students. I believe this chapter will provide an outlook on the vast areas of the mining industry for students all over the college. What I liked most from the Students’ Night was being able to hear two engineers speak about how they got into the mining industry and what they enjoyed about it. They both offered great advice: Do not worry if you do not get your dream job right out of university. You just need to get in the industry and start gaining some experience. Participation in extra-curricular activities looks great to an employer, but you get so much more out of it than that. One gains valuable experience from being given a job to do throughout the year and doing it in a productive and professional manner. It is different from work experience in that you are volunteering your time to fulfil your role as student and

member of a team or committee. It is a role that requires you to represent your college or discipline, just like an employee represents his or her company. It is also something that you can look back on and be proud that you accomplished. CIM

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About the author Jordan Gonzalez is finishing his final year in geological engineering at the University of Saskatchewan and has completed a work term with Golder Associates last summer. He is heading to Calgary this summer to work on pipeline projects.

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COLUMNS | standards NI 43-101 and the metallurgist The role metallurgists play in the disclosure process Greg Gosson and Tony Lipiec When it comes to new mines being developed, there is a general industry consensus that most low-hanging fruit has been picked and eaten. Many projects currently in the mine development pipeline have been around for decades, but were held back because of technical challenges. The future development of these deposits will likely require access to public capital markets, and in Canada that means providing scientific and technical disclosure on these deposits in compliance with National Instrument 43101. As many of these “challenged” projects have metallurgical issues, the companies that are developing these projects must provide appropriate disclosure regarding proposed solutions to those issues.

The metallurgically Qualified Person Under Section 2.1 of NI 43-101, all disclosure of scientific or technical information concerning a mineral project on a property material to the issuer must be based upon information prepared by, or under the supervision of, a Qualified Person (QP). To be considered a Qualified Person on metallurgical issues, the individual must: • Be an engineer with at least five years of experience in mineral exploration, mine development or operation, mineral project assessment or any combination of these, and have at least a bachelor’s degree in chemical engineering, metallurgy, mineral processing, or the equivalent. • Have experience relevant to the subject matter of the mineral project. The metallurgist must decide whether they would be judged by their peers as having sufficient expertise in the mineral processing methods being considered for the project, and under the circumstances in question. For example, a 82 | CIM Magazine | Vol. 5, No. 3

www.amec.com process engineer may have extensive experience with heap-leachable copper oxide deposits, and consider themselves a QP on the metallurgy of these deposits. However, they may have little experience in metallurgical recovery of nickel laterite deposits, in which case they would not be able to serve as the QP for these types of nickel deposits. • Be in good standing with one of the Canadian provincial or territorial professional associations, or one of the designations in a foreign association listed in Appendix A in NI 43-101.

Rules and tools NI 43-101 has specific rules regarding exploration information that would apply to the disclosure of metallurgical test results. These include data verification, sample information, analytical or testing procedures, and information on the testing laboratory used. Guidance on the technical and economic factors that must be considered by the resource estimator is provided in the CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (2003), which are referenced in the Companion Policy of NI 43-101. The following are the relevant sections of that guideline. Mineral resource estimation: A resource estimator requires input from the metallurgist on the appropriate assumptions to be used in the mineral resource estimate. Under CIM Mineral Resource and Mineral Reserve Estimation Best Practice Guidelines, the cutoff grade, or economic limit, used to define a mineral resource must provide “reasonable prospects for economic extraction.” In establishing the cut-off grade, it must realistically reflect the location, deposit scale,

continuity, assumed mining method, metallurgical processes, costs and reasonable long-term metal prices appropriate for the deposit. Variations within the resource model (rock characteristics, metallurgy, mining methods, etc.) that may necessitate more than one cut-off grade or economic limit in different parts of the deposit model must be an ongoing consideration. The resource confidence categories (Measured, Indicated and Inferred) are based on the level of confidence in the continuity of geology and grade of the deposit. Because recovered grade, not in situ grade, is what determines prospects for economic recovery, the confidence in the metallurgical recoveries should be a consideration when determining the appropriate confidence category of a mineral resource. Mineral reserves: Metallurgists or process engineers should always be involved in the technical considerations applied to mineral reserves. An effective method of mineral processing must have been selected, and the level of detail and engineering must meet or exceed that required by a preliminary feasibility study. Proven and Probable Mineral Reserves are a modified sub-set of the Measured and Indicated Mineral Resources. The conversion requires the consideration of factors affecting profitable extraction — including mining, processing, metallurgical, economic, marketing, legal, environmental, socio-economic and governmental factors — and should be estimated with input from a range of disciplines. In certain situations, Measured Mineral Resources could convert to Probable Mineral Reserves because of uncertainties associated with the modifying factors such as the metallurgical characteristics of that part of the mineral deposit.

standards | Contents of the technical report related to metallurgy The following items of the technical report Form 43-101F1 are specifically identified as requiring input from a process engineer or metallurgist. Item 18: Mineral processing and metallurgical testing: If mineral processing or metallurgical testing analyses have been carried out, include the results of the testing, details of the testing and analytical procedures, and discuss whether the samples are representative.

relating to the recoverability of the valuable component or commodity and amenability of the mineralization to the proposed processing methods. (g) Capital and operating cost estimates — capital and operating cost estimates, with the major components being set out in tabular form.

Personal inspection of the mineral property Section 6.2 of NI 43-101 requires that at least one QP who is responsible for preparing or supervising the prepa-

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ration of all or part of the technical report to complete a current inspection of the property that is the subject of the technical report.

Up to the challenge The successful development of technically challenged mineral projects will require smart engineering. Investor confidence in those engineering solutions will require transparent disclosure by suitably qualified mining professionals. NI 43-101 has set the standard for both. CIM

About the authors Greg Gosson is

Item 25: Additional requirements for technical reports on development properties and production properties: (a) Mining operations — information and assumptions concerning mining method, metallurgical processes and production forecasts. (b) Recoverability — information concerning all test and operating results

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technical director, geology and geostatistics, and Tony Lipiec, is senior process engineer for AMEC Americas Limited. Gosson is a frequent speaker on mining technical disclosure standards at mining industry forums. Lipiec, a mineral processing engineer, is frequently involved in the preparation of NI 43-101 technical reports.

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first nations |

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Avatar: art imitates life Juan Carlos Reyes There still may be a few among you who have yet to see James Cameron’s epic blockbuster Avatar. My advice: Go see it! The movie offers an interesting vision of colonial mentality — something to which many Aboriginal people will relate. Here’s my take on it: White Americans travel to a distant planet to mine an invaluable mineral. They hire researchers and scientists to placate the indigenous population (called the Na’vi) by socially infiltrating the community and attempting to convince them to move to more “suitable” locations. When the ruse fails, the mining company gets fed up and redefines the term “explosive climax.” The hero of the story, a white American military recruit, switches sides and helps lead the Na’vi to victory. James Cameron has received a lot of heat over this movie. But I think that Avatar was developed brilliantly. Some reviews claim that Cameron’s idea was to portray the Black or Muslim or indigenous experience. Regardless of his motivation, the movie succeeds in its depiction of the way industrialized nations have “taken over” in many developing countries. This is why many cultures can relate so well to a movie like Avatar. I spoke with two close friends — John Cutfeet from the Kitchenuhmaykoosib Inninuwug (KI) First Nation and Shannin Metatawabin, manager of Aboriginal affairs for De Beers Canada — to see what they thought of Avatar’s message. John Cutfeet, who was implicated in the whole KI ordeal (I have written in the past about the KI incident), had this to say: “You would think that the producer of Avatar had been watching what has been happening to the indigenous population worldwide, including the Far North of Ontario in places like Kitchenuhmaykoosib Inninuwug, Attawapiskat and the Ring of Fire, and in places like Oka. In Oka, we saw the military descend upon a

www.amec.com people who would not accept the expansion of a golf course in their traditional lands. In Attawapiskat, community members remain homeless while funds from an Impact Benefit Agreement (IBA) sit in trust. Meanwhile, they’re living in poverty. In KI, a company walked away with $5 million, leaving nothing in their wake except financial deprivation and instability as the community struggles to get back on stable footing. These are not things most people would expect to happen in a so-called world leader like Canada.” Cutfeet added that “Aboriginal populations, just like in the movie, are expected to stand by or to relocate while their way of life is destroyed and their homelands plundered, all for the purpose of driving the economic engine. In the end, these communities see little to no benefit for their people. The tactics employed by the mining industry in Canada are not very different from those represented in Avatar. Businesses go through the motions of working with the people but are fully prepared to turn up the pressure to

ensure compliance. The industry often characterizes the people of the land as dangerous or hostile, and they have no qualms about ‘bringing out the big guns’ when necessary.” Shannin Metatawabin offered similar words of wisdom. “There is a history and a need to educate, even if through a movie, in order to highlight the very real methodologies employed by some to dominate indigenous people. Junior and major mining companies are plentiful and do have different views on indigenous, environmental and social responsibilities. No two are alike, and there are those that work hard to change these perceptions by instituting policies that address these concerns. That approach, of course, is a sustainable way of thinking.” In conclusion, public policy, communication and real partnerships with communities will help to ensure meaningful movement in this industry. The harder you push, the deeper communities will dig in to protect what it is theirs by right to protect. Pushing, therefore, is no longer an option. You must consult. CIM

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

mac facts

In 2008, as part of MAC's Towards Sustainable Mining Initiative, 75 per cent of member-company facilities had crisis management plans developed, reviewed and tested. This was a 60 per cent increase from the previous year.

May 2010 | 85

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L’énergie géothermique et les mines Jasmin Raymond et René Therrien De plus en plus de systèmes de pompes à chaleur géothermique, utilisés pour le chauffage et la climatisation des bâtiments, sont aménagés sur des sites miniers désaffectés afin de tirer avantage des ressources en eau. Les premiers systèmes mis en opération au début des années 1990, comme ceux de Springhill1 en Nouvelle-Écosse et de Park Hills2 au Missouri, ont démontré que ces systèmes permettent d’importantes économies d’énergie. D’autres projets de plus grande envergure ont récemment vu le jour, comme le projet Mine Water3 à Heerlen au Pays-Bas où l’eau pompée dans des anciennes mines de charbon approvisionne un système énergétique de quartier raccordé à plusieurs bâtiments. Tous ces systèmes ont été installés pour des bâtiments situés près de mines inactives. Les ressources d’énergie géothermique de basse température sont aussi importantes sur les sites miniers actifs et pourraient être exploitées davantage. Les pompes à chaleur géothermique offrent des économies d’énergie conventionnelle de l’ordre de 60 à 70 % pour le chauffage et de 30 à 40 % pour la climatisation. Ces systèmes utilisent le sous-sol pour produire ou absorber de la chaleur, ce qui les rend plus efficaces que tout autre système disponible sur le marché. Pour fonctionner, les pompes à chaleur géothermique nécessitent un apport en énergie électrique et un fluide caloporteur pour transférer l’énergie thermique. Le fluide est un mélange d’eau et d’antigel qui circule dans des tuyaux enfouis sous terre lorsque le système est aménagé en circuit fermé. De l’eau captée dans un aquifère ou un bassin de surface peut aussi être utilisée lorsque le système est aménagé en circuit ouvert. Pour chaque kilowatt de capacité de chauffage ou de climatisation, un

jasmin.raymond.1@ulaval.ca; rene.therrien@ggl.ulaval.ca système type a besoin d’un débit de circulation d’eau de 2 à 4 L/min. Des forages sont effectués pour enfouir des tuyaux sous terre ou pomper de l’eau souterraine et approvisionner un système géothermique; pour cette raison, ce système s’avère plus dispendieux qu’un système de chauffage et de climatisation conventionnel. Les sites miniers regorgent de ressources qui peuvent être utilisées pour aménager des systèmes géothermiques, tout en limitant le nombre de forages de façon à réduire les coûts d’installation. Par exemple, l’eau souterraine inondant des mines est utilisée pour approvisionner les systèmes de Springhill, de Park Hills et de Heerlen mentionnés ci-dessus. Des travaux ont été effectués à Mines Gaspé à Murdochville, Québec, pour évaluer le potentiel géothermique des mines souterraines inondées puisque la ville compte les exploiter. L’eau stockée dans une fosse à ciel ouvert ou un bassin de rétention peut également être utilisée avec un système géothermique. À Saint-Bruno-de-Montarville, Québec, des condominiums sont chauffés et climatisés à l’aide de pompes à chaleur géothermique approvisionnées par l’eau inondant l’ancienne carrière Goyer4. Les aires d’accumulation de déchets miniers constituent

aussi un milieu propice pour enfouir des tuyaux de systèmes géothermiques à boucle fermée et bénéficier de la chaleur dégagée par l’oxydation des minéraux contenus dans les déchets. Des travaux de recherche sont en cours à la Mine Doyon, Québec, pour démontrer le potentiel géothermique des stériles miniers exothermiques. Les mines actives, qui doivent chauffer et climatiser leurs bâtiments ou les galeries souterraines, profiteraient de systèmes géothermiques. L’eau souterraine accessible par le système de pompage déjà en place pour assécher les galeries pourrait être utilisée pour approvisionner les pompes à chaleur. Dans une optique de développement durable, l’aménagement de ce type de système serait effectué de concert avec les municipalités avoisinantes afin qu’elles génèrent aussi des économies d’énergie. Ce développement contribuera à atténuer l’impact environnemental associé à l’eau d’exhaure et aux déchets miniers. ICM 1

http://oee.nrcan.gc.ca/publications/infosource/pub/ici/ caddet/english/r122.cfm

http://www.geoexchange.org/index.php?option=com_ docman&task=cat_view&gid=60&Itemid=357&limitstart=5

http://www.minewater08.eu/Minewater-project.22.0.html

http://www.stbrunosurlelac.com

Les auteurs Jasmin Raymond est un étudiant au Doctorat en hydrogéologie à l’Université Laval actif dans le secteur de la géothermie. Ses intérêts de recherche concernent l’énergie géothermique de basse température et les systèmes de pompe à chaleur. René Therrien est directeur du Département de géologie et de génie géologique de l’Université Laval et enseigne l’hydrogéologie. Ses travaux de recherche portent sur le développement de modèles numériques utilisés pour simuler l’écoulement d’eau souterraine et de surface, le transport de contaminants et les transferts de chaleur. May 2010 | 87

The trials of Gallagher Murder and mystery in a frontier coal mining town Correy Baldwin

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blunt-nosed bullets — certainly not standard regulation. Nicholson refused Gallagher’s second request for reposting but not his request for resignation. Four years later, when a blunt-nosed bullet was extracted from Coward’s skull, Nicholson knew he had his man. At the time of the murder, Gallagher had been in the middle of negotiations with the Peerless Coal Company, of which Coward was part-owner. Coward had arrived in Carbon a few weeks earlier to temporarily look after the business side of the mine. Gallagher remained in charge of mining operations, a role he intended to keep in the new deal. But behind his back, Peerless appointed Coward future manager in a private meeting. Coward was murdered two days later, and Nicholson was sure that Gallagher had found out and taken revenge. All other leads were off, although the police had trouble finding enough substantial evidence to convict Gallagher. A retracing of the murderer’s steps failed to link the prime suspect to the crime. He was in possession of the strange bullets, but not a gun. Nicholson turned to Gallagher’s housekeeper, Dorothy Bruce, who lived with him, along with her fiveyear-old daughter. He suspected that Photo courtesy of the Farmers' Exchange Building Museum (in Carbon, Alberta)

ine owner Jack Gallagher heard the verdict in a Calgary courtroom on January 19, 1922 — he had been found guilty of murder and was sentenced to be hung. The previous September, his business partner, John Coward, had been found dead in his Buick, shot three times in the head while on his way home from the coal mines just east of Carbon, Alberta. Gallagher was the obvious suspect, although whether or not he was actually the murderer remains a mystery. On September 28, 1921, Coward and Gallagher had been returning to the mine from a business trip when they Gallagher's mine, Carbon, Alberta stopped at a shack to pick on an unlikeable and unemployed miner named Teddy been hired, although he was denied Bolan. Gallagher barged into Bolan’s the Carbon posting that he had shack and made some off-hand requested. A month later, Nicholson, remarks before leaving. No one knows and others, sensed that the new recruit for sure if he got back into Coward’s had begun to act strangely. As it turned vehicle, but a few minutes later, and out, though, Gallagher was attempting one mile down the road, Coward was to hide the full extent of two separate dead. head injuries that had left him nearly Immediate suspicions pointed to deaf. His intense manner, while Gallagher, but it was not until Chief unnerving, was simply a result of his Inspector Nicholson arrived from Callip reading. gary that the suspect’s real troubles Regardless, Nicholson had a bad began. The two had met previously in feeling about Gallagher, especially 1917 when the inspector was recruitwhen he discovered his private ammuing for the police and Gallagher had nitions belt stocked with notched,

ing after the murder, three miners from Gallagher’s camp returned to Drumheller, leaving behind their pay. Sinclair was thorough, hiring a private eye to snoop around the mines. He dug up plenty of dirt, most notably on Teddy Bolan. Following Bolan’s surprise testimony at the trial, he received a suspicious, and rather large, sum of money. He left for Mexico soon after but only made it as far as Calgary, where, the story goes, a “light-fingered woman” emptied his wallet, forcing him to return to Carbon. One week later, he was killed in a suspicious mining accident. When the private eye’s agency was sent a threatening letter containing more of the now-infamous bluntnosed bullets, it was obvious that someone else was involved. Sinclair had gathered enough evidence in Gallagher’s defence and requested an appeal. He was granted a new trial — one week before his execution date. Sinclair’s defense was systematic and convincing and, in a grand manoeuver, he brought the window of Teddy’s shack into the courtroom to prove that the now-deceased miner had given false testimony. It was obvious that Teddy could not have seen Gallagher returning down the path that night because his window was completely covered in a thick layer of coal dust. Sinclair won the case, and Gallagher’s innocence was restored. CIM Photo courtesy of the Farmers' Exchange Building Museum (in Carbon, Alberta)

the relationship was more than professional and brought in an inspector from the Department of Neglected Children as, at that time, it was unlawful to live in common law while a child was in residence. Bruce, who was proving to be a difficult witness, was threatened with having her daughter taken away if she did not testify against her “employer.” Though shaken, she refused, and Nicholson had Gallagher arrested on a charge of contributing to the delinquency of a minor. A search of Gallagher’s shack revealed that the remaining blunt-nosed bullets had been replaced with standard ones. Not long after, a local boy found one of the missing bullets at the murder site — an area that had been searched thoroughly by police. It was found on the same side of the car as where the murderer must have stood. Nicholson, unswayed by this poorly planted evidence, surmised that the bulTwo miners from Carbon, Alberta let had simply bounced back off the opposing hillside. Teddy Bolan had always said that he appeal, proving that Gallagher was had not actually seen Gallagher enterinnocent and that Nicholson had ing Coward’s vehicle on the night of ruined the investigation by ignoring all the murder; however, at the trial he other leads. gave surprise testimony, claiming to And there were plenty of other have gone to look out his window. He leads, including a connection that said he could not see Gallagher walkmany of the men had been involved ing down the path toward his home, with the recent labour crisis in the which meant that he must have driven nearby Drumheller Valley. Gallagher away with Coward. Bolan’s evidence had gained a reputation for his forceful convinced the jury, and Gallagher was tactics while helping the Veterans’ found guilty of murder. Association crush the labour union Luckily for Gallagher, his friends in movement. Coward himself had the Great War Veterans’ Association warned him not to hire miners from rallied behind him and sent in a lively Drumheller, fearing retaliation for a Scotsman named Sinclair to take up mine closure that left miners with his case. Sinclair got busy on an unpaid wages. Suspiciously, the morn-

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cim news | award winners The tie that binds CIM award winner’s passion reaches beyond retirement by Robbie Pillo For his outstanding contributions to the mineral exploration industry, Alastair Sinclair received the Selwyn Blaylock Medal in 2009, one of CIM’s most prestigious awards. Whether on campus, at camp or in a laboratory, this eminent scholar has spent most of his forty-year career strengthening the industry and ensuring its future. As a teenager, Sinclair never gave geology a thought. “I was never the kind of person who collected rocks and knew from day one this is what I wanted to be,” he recalls. The introduction came later while Sinclair was still in high school. One of his good friends, Don Coates, had just entered his first year of mining engineering and would later become one the industry’s most well know academics. Sinclair obtained his bachelor’s and master’s degrees in geological engineering from the University of Toronto and his PhD in economic geology from the University of British Columbia (UBC); moving from one degree to the next without skipping a beat. He had given some thought to working in between his graduate degrees, but discarded the idea. He worried he would get engrossed in the business and neglect the rewards that a career in research would bring him. “The question became whether I would emphasize one or the other,” he says. “I chose academia because it provided me with the opportunity to do both.” Throughout his career, Sinclair established a fine balance between the two, concentrating his research on resource estimation and data analysis, 90 | CIM Magazine | Vol. 5, No. 3

and consulting on the same topic. Keeping his ties with the industry is what this scholar strived for and achieved, an importance instilled in him by his mentor and former university professor Bill Gross. “I wanted to have a similar career; he was a role model for me,” he says fondly. Sinclair briefly worked at the University of Washington before returning to his alma mater as a professor. “I jumped at the chance to come back, I couldn’t believe my good luck,” he admits. “My aim was to work in an important mineral exploration centre such as Vancouver.” From 1985 to 1990, Sinclair was head of UBC’s Department of Geological Sciences, where he was involved in many initiatives, including the formation of the Mineral Deposit Unit (MRDU) with colleague Peter Bradshaw. The first of its kind in Canada, the unit successfully paired companies with graduate students with similar research interests. The idea stemmed from looking at comparable programs in Australia. “We thought it was time that such a strong exploration oriented country such as Canada should have a similar program available,” he explains. “The aim was to produce a cooperative unit that would benefit both sides, providing students with the research funding they need and the companies with immediate impacts through the latest research.”

Over the years, the unit has grown to include up to 25 students, with tremendous support from various companies. Consulting on several mineral exploration projects, Sinclair realized early in his career that the many different estimation methods used in the industry resulted in very different estimates. He focused his research on comparative studies of the diverse methodologies used, and which was most suitable or unsuitable for a particular type of deposit. He also looked at standardizing the sampling protocol in obtaining a high quality assay, which was sometimes ignored. “Some sampling methods are very inappropriate for certain types of deposits,” he explains. “Even to this day, inappropriate methods are commonly used, though not nearly as widely as they used to be.” These issues lead Sinclair to coauthor, with colleague Garston Blackwell, Applied Mineral Inventory Estimation. Published in 2002, the book took a conceptual approach to resource estimation, methodologies used and the limitations of different methods. Now semi-retired, Sinclair continues his work, offering a number of webbased short courses, as part of a joint Infomine-UBC graduate certificate. “I am not one of those retirees who can just quit cold turkey what I have been doing for my entire professional life. It is an integral part of who I am.” CIM

CIM Oil Sands Branch by Sanil Sivarajan On February 24, Steve Scott gave a lively presentation to oil sands engineers and geologists at Keyano College in Fort McMurray. The audience was taken in by Scott’s engaging and enlightening presentation. Pizza and drinks followed in a casual and relaxed atmosphere. He was presented with a gift from executive committee member Mark Wyllie, a small token of the branch’s appreciation. Sanil Sivarajan is vice-chair of the CIM Oil Sands Branch.

cim news Crowsnest’s sweeping success by Dale Declerq Thirty-two competitors gathered at the Fernie Curling Club last March for the third annual CIM Crowsnest Branch Curling Funspiel. “It was well organized, had some great prizes, awesome food and we really enjoyed ourselves,” recalls Michael Johnson. The winning foursome was comprised of John Pallone (P&H MinePro Services), Carol Ann Bannon (Teck – Coal Mountain Operations), Garrett Turnbull (Teck – Elkview Operations), and Michael Johnson (Cummins Western Canada), the team skip. “We can't wait to return next year to defend our crown," says Johnson. Many thanks to the organizing committee and sponsors, as well as coorganizers BC APEG for making it such a great success. CIM Dale Declerq is a member of the executive committee Carline and Jessiana Pisony in action

of the Crowsnest Branch

Cross-country tech talk Présentations techniques inter-Canada by Robbie Pillo, Michel Tremblay and Nalini Singh CIM Distinguished Lecturer Steve Scott has been hard at work, traveling to several CIM branches and societies across Canada, delivering the latest developments in sub-sea mining in his lecture Seafloor Massive Sulphide Mining – The Dawning of a New Industry. L’Éminent conférencier Steve Scott a parcouru le pays pour donner sa présentation à plusieurs sociétés et sections locales de l’ICM. Sa présentation, L’extraction des sulfures massifs du fond océanique – L’aube d’une nouvelle industrie, aborde les derniers développements sur l’exploitation minière en mer.

CIM Montreal Branch Steve Scott mesmerized the audience at the Montreal Branch meeting held last February 16 at the McGill Faculty Club. Professors, students, CIM staff and industry executives were taken on an underwater journey, exploring robotic mining and exploration strategies for deep-sea ore deposits. Scott integrated real-life examples and explanations to deliver his savvy speech.

Section Saguenay de l’ICM Le 19 février dernier, la section recevait Steve Scott à l’Université de Québec à Chicoutimi. C’est devant plus de 43 participants incluant des professeurs, chercheurs, étudiants, prospecteurs, personnes de l’industrie, que Docteur Scott est venue décrire ce sujet intéressant très populaire. Donnée en français, sa présentation à susciter beaucoup de questions sur le côté des lois et des juridictions touchant l’exploitation de ces futurs sites miniers.

Steve Scott (left/gauche) and/et Michel Tremblay (right/droite)

MetSoc – CIM McGill Student Chapter On February 16, Steve Scott spoke to students and professors from McGill University’s Departments of Materials & Mining Engineering and Earth & Planetary Sciences. The possibility and reality of underwater mining captured the imagination of all. By discussing the formation of mineral deposits, mining procedures, economics and mineral processing, Scott was able to paint a complete picture, giving insight on how underwater mining would fit in with, and supplement traditional mining technology. The branch thanks Scott for providing a critical examination of one of mining’s new frontiers. Michel Tremblay est président de la Section Saguenay de l’ICM.

Nalini Singh is student president of the MetSoc – CIM McGill Student Chapter May 2010 | 91

cim news| scholarship winner Probing research Chilean grad student interested in oil sands By Marlene Eisner Leopoldo Gutierrez, a mining engineering graduate student at the University of British Columbia (UBC), is the 2009 recipient of the CIM Vancouver Branch $4,000 Graduate Research Award for his paper on “Probing Mineral-Bitumen Liberation through Rheological Measurements.” Submissions are voted upon by a sub-committee which looks at criteria such as originality, clarity of research, technical merit and relevance to the industry and CIM. “Students submit an application in the form of a short research proposal or technical paper, typically three pages, outlining the research the candidate is proposing or has undertaken,” explains Alex Leopoldo Gutierrez Doll, CIM Vancouver Branch’s past chair. The 32 year-old Gutierrez, a metalwritten piece of work. “I was very lurgical engineer from the University of happy because this is the first award I’ve Concepcion, Chile, says he did not received,” he says. “I think that there know if he would win or not, but was are a lot of very good grad students confident he had submitted a well- here, very smart people from all over

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the world. So, the fact that I had received this award made me feel very proud.” He credits the support of his supervisor and the co-author of the paper, Dr. Marek Pawlik, for his success. “His help was very significant and he has been a great and reliable support, giving me all the assistance I needed to make me feel comfortable at UBC,”says Gutierrez. Gutierrez’s field of study is mineral processing, so when Pawlik informed him of a project about the rheology of oil sands, he jumped at the chance to study at UBC. “The topic was very interesting to me because rheology has applications in many areas,” Gutierrez explains, “but the most interesting thing was that I was going to work with oil sands, which a young Chilean engineer like me knows little about.” His PhD research is related to the study of the rheology of oil sands slurries and its relationship with the performance of these slurries in the concentration (flotation) stage. CIM

distinguished lecturer | cim news A man of integrity Georges Kipouros speaks on materials and their environment By Marlene Eisner Georges Kipouros likes to talk about degradation — at least as it pertains to mining. The professor of materials engineering and director of the Minerals Engineering Centre at Dalhousie University in Halifax, Nova Scotia, is one of the CIM Distinguished Lecturers for 200910. In his presentation, “Materials and asset integrity,” Kipouros discusses the present understanding of the interplay between materials and their environment, the design of materials and the effects of these parameters on corrosion. “It’s a topic that covers the extensive area of mining and the three branches of CIM — Kipouros studying asset integrity at Dalhousie University minerals, metallurgy and petroleum,” Kipouros explains. “Everybody is either limited supposed to go together — this can by a lack of materials or is affected by degrade an asset.” the degradation of materials. The “We also try to understand the facearth provides us with oil, minerals tors that help maintain the integrity and wood, which we transform into of materials used for the past 50 materials that are processed to be of years,” he says. “I have asked my suitable use to certain industries. PhD students to do their research That is what the presentation is projects on how specific elements, such as iron, can protect copper about: the natural cycle of materials, how we produce, specify and use nickel alloys.” Near the end of his lecture, them, and how we recycle them.” Kipouros worked on material pro- Kipouros introduces an interesting twist. “When we refer to assets, norcessing for many years, focusing particularly on metals. Eventually, he mally we look at infrastructure and realized that his knowledge could be equipment. But, at the end of the lecextended to how materials degrade ture, I ask the audience, ‘Are humans and how to protect them from degra- assets?’” He says that because the dation, examples of which are given crux of his lecture points to corrosion in his lecture. “I discuss new coatings as the main culprit responsible for available and how they can protect asset degradation, a typical response material from degradation,” he from the audience is, “Do humans explains. “Another element is design. corrode?” “If I had asked a question like this There are a lot of mistakes people back when I was a student, they make in design, such as placing two would have recommended me seeing materials together that are not

a doctor,” jokes Kipouros. “But now, with biomedical/biomaterials engineering, all the parts of a human being can essentially be replaced — a knee, hip, heart valve. Prostheses are made of metals, and metals corrode. The only difference is the medium. Instead of the sea that corrodes, it’s the blood. A comparison between both media is difficult; how do you translate a few millimetres per year of corrosion into human pain?” Kipouros says he tries to structure his lectures in a fun, easy-to-understand manner, and even runs the content by his university-aged son to make sure the language he uses is listener-friendly. “I avoid complex terms and abstruse technical details. My understanding of CIM local branch meetings is that the audience may include the whole spectrum of the industry — miners, geologists, petroleum and metallurgical people. My lecture is for everyone.” CIM May 2010 | 93

cim news Sharing knowledge and best practices Another successful CMP conference www.cmpsoc.ca

Photo courtesy of CMP

By Janice Zinck and Andrea Nichiporuk

Delegates attending the opening of the conference

Recognized worldwide as one of the best conferences in the field of mineral processing, the recent Canadian Mineral Processors Operators’ Conference welcomed 432 delegates from 17 countries. Technical sessions, a short course and a very popular social program make up the winning formula for this annual event. For those who did not make it to the conference, here is a summary of what you missed.

Great minds at work Designed to keep delegates abreast of what is happening in the industry and to promote the exchange of knowledge and best practices, the technical program featured 35 presentations centred on the themes of Operation, Process Mineralogy, New Ideas and Technology, Hydrometallurgy, Modelling and Control, and Comminution. A highlight of the program was the Plenary Session, featuring CIM Distinguished Lecturer Don Thompson, speaking on “Setting the Record Straight.” The one-day short course on National Instrument 43-101 Standards of Disclosure for Mineral Projects, given by Greg Gosson and Tony Lipiec of AMEC, was well attended. The 36 participants were led through each of the disclosure requirements under NI 43-101 that are pertinent to metallurgists and other Qualified Persons who prepare technical disclosure on the metallurgy of a mineral project.

Great minds at play An essential part of the conference is the social program, which is designed to maximize delegates’ opportunities for 94 | CIM Magazine | Vol. 5, No. 3

networking. A crowd favourite is the annual East/West Hockey Challenge. This year marks the 10th anniversary of teams battling it out on the ice for the Kilborn Cup, which the West won. New this year was “The Ray MacDonald Player of the Game Award” presented to Ken Major from the West Team. Conference chair Robert Henderson of Kinross hosted the always-lively Chairman’s Reception. This year, all students attending the conference had an opportunity to participate in the Student Scavenger Hunt — a networking-type game in which the students are asked to find CMP delegates matching the 25 questions on the scavenger hunt BINGO page. Winner Gabriel Gagnon of McGill University received $250, and runner-up Adam Jordens of the University of Alberta, won $150. Recognizing excellence in the industry, the CMP awards were given out during the Annual Reception and Awards Banquet. Winners included: • Best Presentation Award (41st Annual Meeting): Eduardo Nunez, Xstrata Process Support • Art MacPherson Comminution Award: Robert McIvor, Metcom Technologies • The Bill Moore Special Achiever Award: Peter Langlois, Vale Inco • Mineral Processor of the Year Award: Chris Fleming, SGS Minerals • Past Chairs’ Award: Ian Orford, AMEC • CMP Student Essay Contest: Lauren Flett, Laurentian University (1st prize); Sarah Jung, McGill University (2nd prize); and David Cataford, Laval University (3rd prize)

Photo courtesy of CMP

CMP-sponsored students

The leaders of tomorrow A strong student presence at the CMP conference is always a priority. Prior to presenting the CMP Awards, the SAG Scholarships were awarded to three very deserving future industry leaders (CMP is one of the three SAG sponsoring organizations): Reem Roufail of the University of British Columbia (post-graduate scholarship of $10,000); and Nalini Singh, McGill University and Vanessa Roeland, the University of British Columbia (undergraduate scholarship of $5,000 each). As well, the $5,000 André Laplante Memorial Scholarship’s Award was given out. This year’s winner was Eric McIntyre of the University of Alberta. Year after year, delegates return to the CMP conference not only for its strong technical program, but also for the numerous networking opportunities. “The papers are just an excuse to be here, really,” says conference chair Robert Henderson. “The interaction after, in the Q&A and also during coffee breaks, luncheons and social activities — people chatting with one another and finding out the stories behind the papers — is way more exciting. Of course, we sometimes have a difference of opinions, but we’re a friendly crowd. It’s pretty unique, the amount of sharing that goes on. We do share our best practices.” The conference is a must-attend event for anyone working in mineral processing-related fields. CIM Each year, CMP brings two students from each university/college with a mineral processing program to the conference. This endeavor was made possible this year thanks to the following sponsors: Algosys • AMEC • Ashland Hercules Water Technologies • Barrick • BBA • Brenntag Canada Inc. • Canadian Process Technologies Inc. • CANMET-MMSL (Natural Resources Canada) • CHEMIQA • COREM • Cytec • Elecmetal • FLSmidth • G&T Metallurgical Services Ltd. • Genivar • Hatch • Heath & Sherwood (1964) Ltd. • Honeywell Process Solutions • Kalprotect • Kemix • Kinross Gold • Lochhead Haggerty Eng. & Manufacturing, Magotteaux Canada • Metso • Molycop Scaw • Multotec Canada • Nalco • Norcast • Outotec • Quadra • SGS Lakefield • SNC-Lavalin • SNF Canada Ltd • Starkey & Associates Inc. • Univar Canada • Vale Inco • The Westin Ottawa • Xstrata Process Support • Xstrata Technology. May 2010 | 95

cim news CIM welcomes new members Aakre, Torjus, Norway Abadi e Silva, Luis Antonio, Brazil Aghamirian, Massoud, Ontario Anderson, Darren, British Columbia Archibald, Craig, British Columbia Arne, Dennis, British Columbia Assaf, Racha, Québec Atay, Ahmet, Turkey Audette, Julien, Québec Auerswald, Derrin, South Africa Ayala, José Felipe, Australia Bachmeier, Terry, Ontario Barkat Ullah, Mohammad, British Columbia Berlinic, Matthew, Saskatchewan Bérubé, Michel, Québec Black, Erin, Québec Blaskovich, Randy, British Columbia Booth, Robert, Manitoba Bourgouin, Yvon, Québec Bradley, Jennifer, Ontario Braun, Robert, British Columbia Brimage, David, British Columbia Campbell, John, USA Campbell, Shannon, Northwest Territories Cancho, Willmer, Peru Castillio, Roberto, Québec Chapman, R. Bob, Alberta Cheung, Leo, New Brunswick Chitwood, Murray, British Columbia Chrysanthous, Eric, British Columbia Chubb, Kevin, British Columbia Claessen, Mark, Québec Coleman, Dylan, Alberta Craig, Tania, Ontario Cseff, John, Ontario Curlock, Walter, Ontario Dada, Soji, Nigeria Dalvi, Sameet, Ontario Diaz, Manuel, British Columbia Dillabough, Megan, Ontario Ding, Yuehan, British Columbia Dorey, Brian, British Columbia Drinkard, Bill, USA Dufault, Daryl, British Columbia Edkins, Nick, Québec Egab, Esma, Ontario Emond, Martin, Ontario 96 | CIM Magazine | Vol. 5, No. 3

Emre Ege, Dogan, Turkey Farooq, Muhammad, Pakistan Fatula, Phil, USA Fernando, Angelo, Ontario Figueroa, German, Australia Foerier, Stijn, Belgium Fragiadakis, Nick, Ontario Frechette, Valerie, Québec Freeman, Daniel, Ontario Fries, Guido, Germany Fung, Jack, Ontario Futcher, William, France Gerry, Brian, Ontario Geyan, Gkarthi, India Gideon, Uko Anietie, Nigeria Girgin, Ismail, Turkey Grund, Guido, Germany Hamilton, Chris, Ontario Hara, Harinder, British Columbia Helberg, Roelof, Manitoba Horayi, Joel, Manitoba Hyeung Yoo, Je, Korea Hyung Park, Jin, Korea Jeoung, Hohyun, Korea Jiang, Quan, Ontario Jones, Archie, USA Joy, Lesley, Newfoundland and Labrador Keller, Wolfgang, Germany Khan, Muhammad Ejaz, Pakistan Kim, Hiyoul, Korea Kim, Suhyung, Korea Kim, Juyoung, USA Koehler, Terrence, Ontario Koivisto, Sari, Sweden Kowal, Len, Ontario Krystia, Christopher, British Columbia Lagacé, Andréa, Ontario Lee, Kuang Yu, USA Légaré, François, Québec Lemaire, Astrid, France Littlely, Emma, Australia Lomas, Susan, British Columbia Louie, Douglas, Ontario Luppens, Wannes, British Columbia Ma, Thomas, Ontario MacLean, Alexander John, Ontario Makepeace, David, British Columbia

Marois, Jovette, Québec Miller, Barry, USA Montgomery, Todd, Alberta Morimitsu, Masatsugu, Japan Moroka, Mothusi, Botswana Nazari, Ghazaleh, British Columbia Nissen Bech, Kjeld, Ontario Novikov, Nikita, Ukraine Oh, Juncheol, Korea Oleksiuk, Katie, Ontario Oteng-Peprah, Michael, United Kingdom Parejko-Kompa, Kate, Ontario Parhar, Pardeep, British Columbia Paul, Manan, Ontario Poe, Bill, USA Roberts, Jeffrey, Alberta Rosenblum, Frank, Québec Royle, Michael, British Columbia Ryan, Lionel, Ontario Safar Zadeh, Mahdi, Ontario Salter, Robert, Ontario Sanago, Abdouramane Salifou, France Sassi, Thomas, USA Schaffer, Michael, Québec Serre, Claude, Ontario Shairp, Susan, Manitoba Shedd, Kim, USA Sims, John, USA

Soyuer, Baris, Turkey St. Amant, Marc, Ontario Steele, Rick, USA Stewart, Kathryn, Australia St-Jean, Alger, Ontario Theben, Stephan H., Ontario Théroux, Alexandre, Québec Thiessen, Glenn, Alberta Thomson, Laura, Ontario Thouin, Normand, Québec Thwaites, Philip, Ontario Tremblay, Martial, Québec Tsang, Brian, Ontario Tuokkola, Pekka, Finland Turner-Saad, Guillermo, Ontario Tuzun, Asim, Ontario Van Loon, Lisa, Saskatchewan Vardar, Ender, South Africa Vasudeva, Rajan, South Africa Visser, Jacob, Netherlands Waters, Kristian, Québec Woodworth, Sabrina, British Columbia Wrana, Dan, Manitoba Yellishetty, Mohan, Australia Yves Blandin, Jean, France Zelter, Tim, Alberta Zhang, Yale, Ontario Zhou, Joe, Australia

Chances are, in your lifetime, at least one woman close to you will be affected by cancer. Statistics show one in nine women will be affected by breast cancer alone. The time to act is now. For a second year running, the CIM – Cure in Motion team will walk in the Pharmaprix Weekend to End Women’s Cancers on August 28–29, 2010 benefiting the Montreal Jewish General Hospital Segal Cancer Centre. As an organization, we feel it is important to give back, whether by volunteering our time, sponsoring industry-related events or fostering the next generation of professionals through scholarships. Last year, we took it a step further and dug in our heels, literally, for over 60 kilometres. It was a truly life-changing experience and one that we were committed to be a part of again this year. Join us in the fight and support our team. Visit the CIM homepage to donate.

Building for tomorrow Re-engineering CIM’s information technology systems By Ryan Bergen

CIM

has thrived as “a community of leading industry expertise.” This has been the key to our longevity and it is guiding us forward. Today, the nature of the industry and its expertise is truly international. “It’s a new global game,” says Jean-Marc Demers, CIM’s senior director of business management and strategic development. “And that requires a business transformation to ensure we are pertinent, quick and agile. And to the world, there is only one CIM. Our transformation has begun. We are building a new IT infrastructure that will make this organization, your CIM stronger.”

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began a thorough evaluation of the spectrum of business processes that occur within the national office as well as The existing information technology (IT) tools have with various societies and branches. In the meantime, supported our achievements to date, but, to sustain this we have also sharpened the strategic vision for CIM, and growth in both size and strength, CIM is moving ahead with it, a more precise understanding of the scope and with an overhaul of its IT capabiliscale of the IT enhancements ties. This project will serve and required to make that vision a reality connect our present and future has been developed. members more efficiently, directly With a strategic systems plan in place, system and process improveand responsively by providing: ments have been identified that can • Better access to the wealth of make each department and society technical content available more responsive and vital to our through CIM; members. The core system require• Stronger web resources to ments are: attract young members who • A full-function and capable expect these tools; website; • More efficient promotion, regis• An association management tration and processing for system; events; • An exhibitor management • Greater collaboration across the system; industry. • A finance system; • A document management Over the coming months we will system. begin applying the new systems Our clear-eyed, methodical across our various departments. approach and communication with What will this mean for you, our the task force and Council has members? Benefits include: ensured that CIM finds the systems • Fast and easy updates of solutions best-suited to the needs member details; of our members. The scope of this “IT’S A NEW • Streamlined event registration; systems overhaul has and will con• More efficient invoicing and GLOBAL GAME… tinue to demand broad resources. To payment methods; manage the scale and expenses, the AND THAT REQUIRES • Branch access to membership project will advance by stages, foland sponsorship information; A BUSINESS lowing approval by Council. Cur• Multi-lingual capabilities; rently, CIM has made an agreement TRANSFORMATION • Easier access to and submiswith an association management sion of technical papers; TO ENSURE WE ARE system vendor and an implementa• Faster membership service tion partner who has detailed the PERTINENT, response; resources needed to get the system • Enhanced search tools; QUICK AND AGILE.” up and running. • Personalized web interface. “We all tend to take IT infrastruc~ J.-M. Demers To design the site, consultants ture for granted because, in most using ISO “human-centred design instances, it’s in the background process” standards have interviewed doing what it’s supposed to do,” says CIM president select CIM website users to generate a series of design Michael Allan. “Speaking from experience, the CIM concepts. Focus groups in Vancouver at this year’s CIM website at the moment is not intuitive and seamless for Conference and Exhibition will then have the opportunity the user. In the future, it should become an easy way for to test these wireframe designs and help finalize a a member to get all of his or her business with CIM design framework. done, whether it’s registering for a conference, looking for a technical paper, buying a technical publication, The right decision, peer-reviewing a paper or whatever.” not a light decision The growth and strength of CIM depends upon these CIM Council formed a task force to review the assessenhancements and we are certain that they will serve ment of our systems infrastructure in 2008. The team our membership well. To keep you up-to-date we will made it clear that incremental quick fixes within the keep you informed of advances of project advancements existing IT framework would not be enough. We then in future editions of CIM Magazine. CIM

To serve and connect

May 2010 | 99

CONSTRUIRE POUR DEMAIN Le réingénierie des systèmes de technologie de l’information de l’ICM

L’ICM

se démarque en tant que « communauté d’expertise de pointe dans l’industrie minière ». C’est le secret de notre longévité et c’est ce qui nous fait avancer. Aujourd’hui, la nature de l’industrie et son expertise sont véritablement d’échelle internationale. « Il s’agit d’un tout nouvel enjeu. Un enjeu qui demande une transformation des affaires afin de nous assurer que nous demeurons pertinents, rapides et agiles. Aux yeux du monde entier, il n’y a qu’un seul ICM. Notre transformation a commencé. Nous construisons une nouvelle infrastructure de technologie de l’information (TI) qui rendra notre organisation, votre ICM, encore plus forte », dit Jean-Marc Demers, directeur principal, gestion des affaires et développement stratégique de l’ICM.

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au bureau national et avec nos diverses sociétés et secLes outils actuels de TI ont supporté nos réussites à tions. En attendant, nous avons aussi peaufiné la vision ce jour, mais pour soutenir la taille et l’ampleur de cette stratégique de l’ICM et nous avons ainsi obtenu une croissance, l’ICM embarque dans une restructuration de meilleure compréhension de la portée et de l’amplitude ses capacités de TI. Ce projet servira et relira nos memdes mises à jour TI requises pour que bres actuels et futurs plus efficacecette vision devienne une réalité. ment, directement et de manière Avec la mise en place d’un plan mieux adaptée en fournissant : pour les systèmes stratégiques, • un meilleur accès à la richesse nous avons identifié des amélioradu contenu technique disponible tions au système et au processus qui par l’intermédiaire de l’ICM; peuvent améliorer la réponse et • des ressources Web plus l’importance de nos départements robustes afin d’attirer les et de nos sociétés pour nos memjeunes membres qui s’attendent bres. Les exigences du système de à de tels outils; base sont : • une promotion, une inscription • un système de gestion et un traitement plus efficaces des associations; des activités; “IL S’AGIT D’UN • un système de gestion des • une plus grande collaboration à exposants; travers l’industrie. TOUT NOUVEL ENJEU. • un site Web intégré et Au cours des prochains mois, UN ENJEU QUI performant; nous appliquerons les nouveaux • un système financier; systèmes à nos divers départeDEMANDE UNE TRANS• un système de gestion des ments. Pour vous, nos membres, FORMATION DES documents. cela signifiera : Notre approche méthodique et • des mises à jour faciles et rapiAFFAIRES AFIN DE claire et nos communications avec des de vos coordonnées; NOUS ASSURER QUE le groupe de travail et le Conseil ont • une inscription simplifiée aux fait en sorte que nous avons les activités; NOUS DEMEURONS systèmes les mieux adaptés aux • une facturation et des moyens PERTINENTS, RAPIDES besoins de l’ICM et de ses memde paiement plus efficaces; bres. La portée de cette restruc• pour les sections, un meilleur ET AGILES” turation des systèmes a exigé de accès aux membres et de l’in~ J.-M. Demers vastes ressources et il en sera de formation sur les commandites; même à l’avenir. Pour gérer l’ampli• des capacités multilingues; tude et les dépenses, le projet progressera par étapes, • une inscription simplifiée des communications selon les approbations du Conseil. L’ICM a conclu une techniques; un accès plus facile; entente avec un revendeur de système de gestion d’as• une réponse plus rapide pour les services aux sociations et avec un partenaire d’implantation qui a membres; détaillé les ressources requises pour faire fonctionner • des outils de recherche; le système. • une interface Web personnalisée. « Nous avons tous tendance à prendre l’infrastructure Lors de la conception du site, les consultants utilisant des TI pour acquise puisqu’elle est souvent à l’arrière le processus ISO de conception centré sur l’utilisateur plan et qu’elle fait ce qu’elle doit faire », dit Michael Allan, ont effectué des entrevues avec des usagers choisis du président de l’ICM. « Vous parlant de vécu, l’expérience site Web de l’ICM afin de générer une série de concepts. du site Web de l’ICM ne constitue actuellement pas une À Vancouver, dans le cadre du Congrès et Salon commerexpérience transparente pour l’usager. À l’avenir, il cial, des groupes de consultation auront l’occasion de devrait être facile pour un membre d’effectuer toutes ses mettre à l’essai ces schémas de conception et aider à transactions avec l’ICM, que ce soit pour l’inscription à un finaliser un cadre de conception. congrès, la recherche d’un article technique, l’achat La bonne décision, pas une à la légère d’une publication technique, la révision d’un article d’un collègue ou toute autre transaction. » En 2008, le conseil de l’ICM avait formé un groupe de La croissance et la force de l’ICM dépendent de ces travail dont la tâche était d’analyser l’évaluation de l’inaméliorations et nous sommes convaincus qu’elles frastructure de nos systèmes. Le groupe de travail a répondront bien aux besoins de nos membres. Afin exprimé clairement que des solutions simples à la pièce que vous soyez bien à jour, nous vous signalerons les dans le cadre de la TI existante ne seraient pas suffprogrès du projet dans de futures éditions du CIM isantes. Nous avons alors commencé une évaluation en ICM Magazine . profondeur des divers processus commerciaux effectués May 2010 | 101

Join us at Uranium 2010

askatoon plays host once again to a major conference on uranium — the 3rd International Conference on Uranium, organized by the Hydrometallurgy Section of the Metallurgical Society of CIM.

Ed Lam

John Rowson

Engin Özberk

Organized by

The Hydrometallurgy Section of the Metallurgical Society of CIM

www.metsoc.org/u2010 102 | CIM Magazine | Vol. 5, No. 3

The hub of the Canadian uranium industry, Saskatoon is home to Cameco Corporation and AREVA Resources Canada — two of the world’s largest uranium producers. Potash Corporation, Shore Gold, Denison Mines and Claude Resources, among others, also have their head offices or regional offices there. And, let’s not forget the Canadian Light Source Synchrotron, the largest science project in Canada, is located on the campus of the University of Saskatchewan in Saskatoon. The Uranium 2010 conference will feature an invigorating and provocative Plenary Session where the leaders from the uranium industry will share their vision and projections for the foreseeable future. The conference will also feature a very comprehensive and informative short course, an industrial tour to the largest and richest uranium mining and processing operations in the world, and another tour to the Canadian Light Source Synchrotron. A variety of entertaining social and cultural activities also surround the conference. On behalf of the organizing committee, we invite you to come discover and explore the latest science and technology in uranium mining, milling, refining, conversion and enrichment, and the nuclear energy generation. Mark your meetings calendar for August 15-18, 2010 for what promises to be a truly outstanding conference. We look forward to seeing you there. Ed Lam, Cameco, Conference chair John Rowson, AREVA, Conference co-chair Engin Özberk, Cameco, Honorary chair

Technical Program

GERALD W. GRANDEY, president and CEO, Cameco Corporation ROGER ALEXANDER, president and CEO, AREVA Canada Inc. ROBERT VANCE, nuclear energy analyst, OECD Nuclear Energy Agency MICHAEL BINDER, president and CEO, Canadian Nuclear Safety Commission CHIEF TAMMY COOK, Searson PETER MACKINNON, president, University of Saskatchewan

And many more leading experts to be announced! The Technical Sessions will include papers on: uranium deposit geology & mineralogy (relevance to mining and processing) mining uranium processing refining/conversion/fuel fabrication reactor designs and decommissioning (invited papers only) decommissioning and reclamation of mines and mills radiation safety and advances regulatory requirements and expectations environmental & safety advances and best practices Visit www.metsoc.org/u2010 for the technical program, available this May.

Short Course Uranium Processing and Environmental Impact The course will take participants through the uranium processing flowsheet from mineralogy, its influence on treatment route choices to hydrometallurgy to product recovery, including refining and conversion. Participants will gain valuable insights into the technologies applied to and issues involved in dealing with milling effluents and wastes and environmental compliance requirements and trends, both in Canada and abroad. Specific health and safety considerations to uranium processing will also be covered. Presenters: Gerhard Heinrich, Cameco; Chuck Edwards, AMEC; Larry Reimann, Cameco; Gary Kordosky, Cognis; Mikhail Michalenko, Purolite; Bruno Courtaud, AREVA; John Goode, Aurora; Brett Moldovan, Cameco, KL; Arden Rosaasen, AREVA; Dale Huffman, AREVA; Andy Oliver, Cameco

Photo courtesy of CLS

The Plenary Session will feature leading industry experts discussing the next generation of nuclear power; uranium resources (exploration and new mines); uranium processing (milling, refining, conversion and enrichment); and regulatory and public issues. Speakers include:

CLS Beamline Pan Photo R1

Industrial Tours There are two industrial tours planned in conjunction with the conference. Both are limited in capacity, so register early!

McArthur River Mine/Key Lake Uranium Processing Mill Tour Visit two of the world’s most important uranium mines and metallurgical processing operations. The McArthur River uranium mine, operated by Cameco Corporation, is the world’s largest, low-cost uranium producer, accounting for about 14 per cent of world uranium production in 2008. Also operated by Cameco, Key Lake is home to the largest, highgrade uranium mill in the world. Originally built to handle the highgrade, open pit deposits discovered on site in 1975, the Key Lake mill began processing even higher grade ore from McArthur River in 1999.

Canadian Light Source Tour The Canadian Light Source, Canada’s national synchrotron laboratory, is a powerful tool for research related to effectively extracting resources from the earth while protecting the environment. Using powerful magnets and radio frequency waves, the synchrotron accelerates electrons to nearly the speed of light, producing intense light beams for probing matter with unprecedented precision.

Keep up-to-date on conference developments: www.metsoc.org/u2010 May 2010 | 103

Sponsors Premier Sponsors

Other Supporters

Poster Session Poster paper presentations provide an excellent opportunity for learning about current research projects, encourage interactive discussion and showcase the work of researchers and graduate students. Date: Monday, August 16 | Deadline for poster submission: July 1 | Submit posters to: www.metsoc.org/u2010

Supporting Societies

Uranium 2010 Exhibit The exhibit runs from Monday, August 16 to Tuesday, August 17 in the foyer of the Technical Sessions. Trade show exhibitors receive one free conference admission (see trade show brochure for details).

The Saskatoon Geo Section of CIM

Exhibitors to date include: Activation Laboratories • Areva • Cameco • Chamco • Bruker AXS • Golder Associates • Hatch • Pico Envirotec • Stantec

Students Several sponsorship opportunities are still available. Contact Alun Richards at alun.richards@areva.ca for details.

Financial assistance is available to support student travel to the conference. Priority is given to students presenting a poster, paper or attending the short course registered in a Canadian University. For more details, visit www.hydrometallurgysection.org for more details.

Alun Richards

Complete conference program available at: www.metsoc.org/u2010

Organizing Committee

Delta Bessborough Hotel

Conference Chair & Technical Program Chair Ed Lam, Cameco Conference & Technical Program Co-chair John Rowson, AREVA Resources Honorary Chair & Technical Program Co-chair Engin Ă&#x2013;zberk, Cameco

Social Program Sunday, August 15

Industrial Tour Chair Ken Gullen, Cameco

Opening Reception Renew old acquaintances and expand your network of contacts at the Opening Reception, sponsored by AREVA and Cameco.

Publicity Chair Alun Richards, AREVA Resources

Monday, August 16 An Evening under the Stars Join friends and colleagues for an evening under the stars! This event, sponsored by Golder Associates, will be held under the tent in the gardens of the Delta hotel.

Short Course Chair (Mining/Milling) Ron Molnar, MetNetH2O

Tuesday, August 17

Short Course Chair (Conversion Utilities) Andrew Oliver, Cameco

Hydrometallurgy Section Business Luncheon The Hydrometallurgy Section of Metsoc of CIM will hold its annual business meeting featuring a guest speaker, and present the Sherritt Hydrometallurgy Award and the Student Awards.

Treasurer Pat Wallace, Cameco

Conference Banquet Relax and enjoy an evening of light entertainment (sponsored by Wardrop and Northern Resource Trucking) and featured guest speakers.

Publication and Technical Coordinator Ronona Saunders, MetSoc

Registration Delegate registration fees include admission to the technical sessions, a copy of the conference Proceedings, access to the trade show, and all lunches and refreshments during the conference. Meal and social tickets must be reserved and are on a first come/first served basis. Additional fees may apply for tickets, depending on your registration category. All conference fees are in Canadian funds. Early bird rates (before June 15): CIM national members and sister societies: CIM life members: CIM retired members: Authors/presenters/sessions chairs: Students/student presenters: Non members:

www.metsoc.org/u2010

$800 Free $200 $800 $200 $950

Meeting Manager Brigitte Farah, MetSoc Tel.: 514.939.2710 bfarah@cim.org

Important Dates June 15 Early bird registration deadline July 15 Deadline for hotel accommodation reservations at the conference rate July 15 Deadline for preregistration and cancellation

calendar CIM EVENTS

AROUND THE WORLD

Section Harricana Tournoi de golf 5 juin Responsable : Jean-François Lagueux Tél. : 819.874.7822 poste 3258 Courriel : jean-francois.lagueux@agnico-eagle.com

22nd Canadian Materials Science Conference June 8-10 University of Waterloo, Waterloo, Canada www.mme.uwaterloo.ca/cmsc/

Copper 2010 June 6-10 Hamburg, Germany www.cu2010.gdmb.de Toronto Branch Technical Luncheon Meeting June 10 Contact: Rick Hutson Email: rick@cjstafford.com Mining Society of Nova Scotia Annual Meeting June 10-11 Cape Breton, NS Contact: Florence Sigut Tel.: 902.567.2147 Email: florence@ns.sympatico.ca Sudbury Branch Annual Lobster Dinner & Dance June 11 Contact: Gary Poxleitner Email: gary.poxleitner@valeinco.com North Central BC Branch Annual Meeting June 23-25 Contact: Jamie Hull Email: jamie@wolftek.ca Sudbury Branch Rudolph Kneer Memorial Golf Tournament August 7 Contact: Gary Poxleitner Email: gary.poxleitner@valeinco.com Uranium 2010 August 15-18 Delta Bessborough, Saskatoon, SK Contact: Brigitte Farah Tel.: 514.939.2710 Email: bfarah@cim.org www.metsoc.org/U2010

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Water in Mining — WIM 2010 June 9-10 Santiago, Chile www.wim2010.com Canadian Responsible Investment Conference June 14-16 InterContinental Toronto Centre, Toronto, Canada www.socialinvestment.ca 11th International Platinum Symposium June 20-24 Laurentian University, Sudbury, Canada 11ips.laurentian.ca Ace 2010: Air and Waste Management June 22-25 Calgary Telus Convention Centre, Calgary, Canada www.awma.org/ACE2010 Hydroprocess 2010 August 11-13 Sheraton Santiago Hotel & Convention, Santiago, Chile www.hydroprocess.cl ICWCUCA: Wireless Communications in Underground and Confined Areas August 23-25 Centre des congrès à Val-d’Or, Val-d’Or, Canada www.icwcuca.ca Mine Waste 2010 September 29–October 1 Sheraton Perth Hotel, Perth, Australia www.minewaste2010.com SEG 2010 Conference October 2-5 Keystone Resort, Colorado, USA www.seg2010.org CRO Summit Fall 2010 – Sustainability 2.0 November 3-4 Union League Club, Chicago, USA www.crosummit.com/fall2010

history Porphyry deposits (Part 5)* By R.J. “Bob” Cathro, Chemainus, British Columbia

Geologists were very fortunate that Bingham Canyon, the first porphyry deposit to be developed, was also one of the largest, which allowed them to study it continuously for more than a century. During that period, this deposit type has been discovered in many regions of the world, with the North and South American portions of the so-called circumPacific “Ring of Fire” being the most productive. “The Ring of Fire is home to more than 75 per cent of the world’s active and dormant volcanoes (450) and about 90 per cent of the world’s earthquakes, including 80 per cent of the strongest” (Wikipedia, 2010). Bingham Canyon also displays most of the essential characteristics of porphyry deposits, including large size (particularly the horizontal dimensions), the relative uniform distribution of sulphide minerals that are disseminated throughout the deposit, and the low average grades of the ore. Spencer Titley (1966) summarized this deposit type as follows: “Viewed from the standpoint of a process rather than … the visible results of that process, the porphyry copper deposits are more alike, as a group, than is at first obvious. All are, initially, the result of hypogene processes related to igneous activity. Most are epigenetic although some may be, in part, syngenetic. All are related spatially to igneous rocks, although the genetic associations are not always demonstrable. The associated igneous rocks range from diorite to granite. … The major distinctions which can be made among the various types of porphyry copper deposits are in the mineralogical characteristics of alteration, the composition of the host rock, and the nature of ground preparation. They can be viewed as the variable end result of one hypogene process, influenced by the chemical and structural properties of the rocks in the crust. … One of the most striking characteristics of the porphyry copper deposits seem to be their lack of selectivity for host rock and their capacity to be developed in almost any rock type accessible, … characteristics of occurrence that transect the boundaries of hydrothermal classification.” Porphyry copper deposits occur in a variety of tectonic settings, typically in the root zones of andesitic stratovolcanoes in subduction-related, continental and island-arc settings. Porphyry Cu-Au deposits, such as those associated with Triassic and Lower Jurassic silica-saturated, alkalic intrusions in British Columbia, formed in an island-arc setting, and possibly during periods of extension. Porphyry deposits range in age from Archean to recent, although most are Jurassic or younger. On a global basis, the peak periods for development of porphyry deposits were during the Jurassic, Cretaceous and Tertiary (Eocene and Miocene). These ages also correspond to peak periods of mineralization in Canadian deposits, although there are only a few known prospects of Miocene age. Also of note is the

fact that the Cu-Au family of porphyry prospects in British Columbia straddles the Triassic-Jurassic boundary. Porphyry deposits account for about 60 to 70 per cent of world Cu production and more than 95 per cent of world Mo production. They are also major sources of Au, Ag and Sn, and significant producers of byproducts Re, W, In, Pt, Pd and Se. In Canada, they account for more than 40 per cent of Cu production, virtually all Mo production, and about 10 per cent of Au production. The Cu and Mo porphyries are generally restricted to felsic to intermediate plutons and their immediate wall rocks. Associated igneous rocks vary in composition from quartz diorite-granodiorite to high-silica granite; they are typically porphyritic epizonal and mesozonal intrusions, and commonly subvolcanic. A close temporal and genetic relationship between magmatic activity and hydrothermal mineralization is indicated by the presence of intermineral intrusions and breccias that were emplaced between or during periods of mineralization. Primary (hypogene) ore minerals are dominantly structurally controlled. The mineralogy is highly varied, although pyrite is typically the dominant sulphide mineral. The principal ore minerals of the main porphyry deposit subtypes are as follows: • Porphyry Cu, Cu-Mo, Cu-Mo-Au and Cu-Au deposits: chalcopyrite, bornite, chalcocite, tennantite, enargite, sulphosalts, molybdenite and electrum. • Porphyry Mo deposits: molybdenite, scheelite, wolframite, cassiterite, bismuthinite and native bismuth. The deposits are distinguished from other granite-related deposit types, such as skarns and mantos, by their large size and structural controls, which occurs mainly as stockworks, veins, vein sets, fractures and breccias. Porphyry deposits typically contain hundreds of millions of tonnes (t) of ore, but can range range in size from tens of millions to billions. Grades for the different metals vary considerably but generally average less than one per cent. In porphyry Cu deposits, for example, Cu grades range from 0.2 per cent to more than one per cent Cu; in porphyry Mo deposits, Mo grades range from 0.07 per cent to nearly 0.3 per cent Mo; while in porphyry Au and Cu-Au deposits, Au grades range from 0.2 to 2 g/t Au (in the southwest Pacific region). Porphyry deposits didn’t make a significant contribution to Canada’s mineral production until the early 1970s. In 2000, production of Cu from Canadian porphyry deposits amounted to 267,000 tonnes, or about two per cent of total world production and approximately 43 per cent of total Canadian Cu production. About 60 per cent of Canadian Cu reserves are in porphyry deposits, mainly in British Columbia and Yukon. May 2010 | 107

4 3

6 5

1. Generalized model of an alkaline Cu-Au porphyry deposit (redrafted from Holliday and Cooke, 2007); courtesy of Claire Chamberlain of Teck Resources Limited. 2. Generalized model of a calc-alkaline porphyry deposit developed in the root zone of an andesitic stratovolcano (from Kirkham, R.V. and Sinclair, W.D., 1995). 3. Graph showing the worldâ&#x20AC;&#x2122;s epithermal and porphyry deposits that contain the most gold, as of 2008; courtesy of MDRU-CODES Alkalic Systems research group project presentations. 4. Distribution of alkalic and calc-alkalic porphyry deposits in BC; courtesy of Claire Cunningham of Teck Resources Limited. 5. Global distribution of alkalic porphyry and epithermal deposits; courtesy of MDRU-CODES Alkalic Systems research group project presentations. 6. Cu grades versus tonnage for Canadian and foreign porphyry deposits. Diagonal lines indicate tonnes of contained Cu (Sinclair, 2007). 7. Age distribution of porphyry deposits (Sinclair, 2007).

HISTORY OF

economic geology Significant changes in metal prices have had a major impact on the value of different deposit types. The best example is gold, which now sells for about US$35 per gram, approximately 30 times the price of $35 per troy ounce that the metal sold for prior to 1972. By comparison, the copper price has only increased by a factor of about six in that period and, for molybdenum, the factor is between three and four. This has had a corresponding economic impact on the viability of the Cu-Au (alkalic) porphyry type, an uncommon sub-type that has only been studied intensively in British Columbia and New South Wales. Barr, Fox, Northcote and Preto (1976) summarized what was then known about them, as follows: “The alkaline suite, also called the syenite, volcanic, or diorite suite, commonly grades into pyrometasomatic or skarn deposits. It lacks appreciable amounts of molybdenum but is usually relatively rich in gold and silver, is invariably associated (coeval) with small, complex, alkaline plutons that are comagmatic with the enclosing Upper Triassic volcanic rocks, and is associated with linear structures of regional extent. Hypogene sulphides, which formed contemporaneously with hydrothermal alteration of the host rocks, comprise (in decreasing order of abundance) pyrite, chalcopyrite, bornite, chalcocite and pyrrhotite. Alteration products are dominantly potash feldspar and biotite; propylitic zones commonly fringe the deposits.” According to Claire Chamberlain of Teck Resources Limited (pers. comm., 2010), the type area for the Cu-Au deposit type is British Columbia, which exhibits the entire span of the apparent depth range from high-level, brecciahosted bodies (Mount Polley) to deeper level, intrusive-centred sulphide accumulations (Mount Milligan or Lorraine). This family includes some very large deposits such as Galore Creek, British Columbia (1.3 billion tonnes averaging 0.45 per cent Cu and 0.29 g/t Au), as well as some of the world’s richest, such as Ridgeway, New South Wales (77 million tones at 0.63 per cent Cu and 1.87 g/t Au), and Cadia East, New South Wales (830 million tonnes at 0.35 per cent Cu and 0.69 g/t Au). Most alkalic deposits are enriched only in gold and silver, but some (Copper Mountain and Afton in British Columbia) can also be slightly enriched in platinum group metals. Alkalic porphyries tend to cluster into camps in which individual deposits are associated with relatively small intrusions, dikes and stocks, each displaying considerable variation. In this sense, they differ from the Highland Valley calcalkaline porphyry deposits, but are not dissimilar to the younger Cretaceous and tertiary calc-alkaline prophyries of the Intermontane belt. Both feature the pipe-shaped geometry of host intrusions and exhibit multi-stage, hydrothermal episodes and predictable zonation patterns of both sulphide and alteration minerals. Those are useful exploration guides and both regional geology and deposit-scale observations are critical at the exploration stage. Alkaline porphyry fluids are oxidized (saline ± carbonic) resulting from the exsolution of shoshonitic, mantle-derived

magmas. The deposits typically have a metal-rich core grading to distal hematite and form replacement bodies, veins and breccia bodies. The amount of sulphides is relatively low compared to calc-alkaline porphyry deposits. Anhydrite is common and supergene enrichment is rare because of the low pyrite content and the presence of reactive carbonate minerals. The alteration minerals comprise a complex assemblage of sodic, calc-sodic and calc-potassic minerals. Advanced argillic alteration is limited and phyllic alteration is mainly fault controlled. Nick Carter (pers. comm., 2010) has compared the historic Cu and Au production from both varieties of British Columbia porphyry deposits: T Milled (millions)

T Cu (thousands)

Au (ounces)

Cu-Mo deposits 2731.3 9250.8 4,784,359 Average recovered grades - 0.34 per cent Cu, 0.06 g/t (0.002 oz/ton) Au Cu-Au deposits 216.3 984.7 1,446,631 Average recovered grades - 0.45 per cent Cu, 0.21 g/t (0.006 oz/ton) Au

Although the Cu/Au ratios are not statistically valid because so few deposits are involved, the dominant size of one giant deposit (Highland Valley) with very low gold content, and the relatively low recoveries of Au compared to Cu, common to both types, they are still useful in comparing the two varieties. The ratio for Cu-Mo deposits is 6:1, whereas the ratio for Cu-Au deposits is 2:1.

Acknowledgments Except where noted, Sinclair (2007) was the principal source of information contained in this article, while Singer et al. (2002) was also a useful resource. I would also like to thank Claire Chamberlain of Teck Resources Limited for providing current information on the alkalic Cu-Au deposits, John Thompson of Teck Resources Limited for frequent advice and support, and Mike Cathro and Nick Carter for invaluable assistance. CIM

References Barr, D.A., Fox, P.E., Northcote, K.E., & Preto, V.A. (1976). The Alkaline suite porphyry deposits — a summary. In Sutherland Brown, A. (Ed.), Porphyry deposits of the Canadian Cordillera. Montreal: The Canadian Institute of Mining and Metallurgy, Special Volume 15, p. 359-367. Holliday, JR., & Cooke, D.R. (2007). Proceedings of Exploration 07: Fifth Decennial International Conference on Mineral Exploration, p. 791-809. Kirkham, R.V. and Sinclair, W.D. (1995). Porphyry copper, gold, molybdenum, tungsten, tin, silver. In Eckstand, O.R., Sinclair, W.D. and Thorpe, R.I., (Eds). Geology of Canadian Mineral Deposit Types. Geological Survey of Canada: Geology of Canada, No. 8, p. 421-446. Sinclair, W.D. (2007). Porphyry deposits. In Goodfellow, W.D. (Ed.), Mineral deposits of Canada: A synthesis of major deposit-types, district metallogeny, the evolution of geological provinces, and exploration methods. Geological Survey of Canada. St. John’s: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 223-243. Singer, D.A., Berger, V.I., & Moring, B.C. (2002). Porphyry copper deposits of the world: database, maps and preliminary analysis. U.S. Geological Survey, Open-File Report 02-268. Titley, S.R. (1966). Preface. In Titley, S.R. and Hicks, Carol A. (Eds.), Geology of the porphyry copper deposits, Southwestern North America. Tucson: The University of Arizona Press, p ix-x. http://en.wikipedia.org/wiki/Pacific_Ring_of_Fire#cite_note-0 (2010). Accessed March 20, 2010.

May 2010 | 109

HISTORICAL

metallurgy The beginnings of mineral processing research in Canada (Part 4) By Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Canada and the Empire Congresses At the 1921 annual dinner of the Institution of Mining and Metallurgy (IMM), the institution’s president, Frank Merricks, advocated the need for closer co-operation between the IMM and the various mining institutions of the British Empire. It was Merricks’s vision to build a federation of such institutions so that the mining profession could exercise influence on matters affecting the mining industry. In 1922, the Joint Advisory Committee of the IMM and the Institution of Mining Engineers (IME) took the first step towards this goal by issuing a memorandum for the formation of an Empire Council of Mining and Metallurgical Institutions. The new body’s first congress was held in London, England, in 1924 to coincide with the British Empire Exhibition. The Canadian delegate to the congress was Robert C. Wallace (1881-1955), who was the president of the Canadian Institute of Mining and Metallurgy (CIM) from 1924 to 1925. Upon his return from the first congress, Wallace convinced the CIM Council to hold the second congress in Canada. The Second Mining and Metallurgical Congress, held in Canada from August 22 to September 28, 1927, was a great success. More than 1,200 delegates attended the conference that opened in Montreal. After two days of technical sessions, special trains conveyed the party to Ottawa for a banquet that was attended by the Governor General of Canada and a representative of the Prime Minister. This was followed by two days of technical sessions in Toronto. Over the weekend, there were excursions to Hamilton, Niagara Falls and other points of interest. The post-conference tours were as extensive and interesting as the congress itself. From Toronto, the congress trains pro-

Frank Merricks, president of the Institute of Mining and Metallurgy 110 | CIM Magazine | Vol. 5, No. 3

Robert C. Wallace (1881-1955)

ceeded to some of Ontario’s world-famous mining districts, including nickel-copper mines in Sudbury, silver mines in Cobalt, and gold mines in Kirkland Lake and Porcupine. After leaving the Porcupine area, the party–split into two groups, with one heading westward to tour the Pacific coast and the other proceeding eastward across Quebec and the Maritime Provinces to Newfoundland. Both groups visited the principal mining centres and metallurgical plants as well as some hydroelectric plants along the way. The approximately 12,500 kilometre-long westward tour included technical sessions held in Quebec City, Winnipeg, Jasper and Vancouver. The eastward tour covered some 9,000 kilometres and included technical sessions held in Quebec City and St. John’s, Newfoundland. In addition to the papers presented at the technical sessions, a 270-page official program was issued. It detailed the conference arrangements and described the points of interest visited. Papers summarizing the particulars of the operations and plants inspected during the tours were also distributed. Proceedings of the congress were subsequently published in five volumes. After World War II, many British Empire colonies won independence. This led to a reconfiguration of the mutual relationships between the United Kingdom and the now self-governing “dominions,” which were collectively coming to be known as the British Commonwealth of Nations. Reflecting these changes, in 1956 the word “Commonwealth” replaced the word “Empire” in the name of the Empire Council of Mining and Metallurgical Institutions. The body’s sixth congress, organized by the Mines Branch in Ottawa in 1957, saw the publication of a large comprehensive volume describing the mining industry

The first volume of the Proceedings of the Second Empire Mining and Metallurgical Congress that was held in Canada in 1927.

John Conrey, Director of the Mines Branch (1951-1966)

HISTORICAL

metallurgy A. Ignatieff, a historical account of 75 years of federal government research and development in minerals, metals and fuels at the Mines Branch. Covering the period from 1901 to 1976, the book, also made available in French, provided a wealth of information on government-funded scientific endeavours.

The Conference of Metallurgists and the CMQ CIM’s Metallurgical Society was founded in 1945. In 1962, under its aegis and with the collaboration of the Mines Branch (then directed by John Convey), the Conference of Metallurgists was organized. Convey also played a key role in founding the Canadian Metallurgical Quarterly (CMQ) for the publication of original Canadian research. Convey, who was born in County Durham in Post-conference tour routes taken by the delegates to the Second Mining and Metallurgical England, moved with his parents to Alberta in Congress of 1927 1929. He obtained a PhD in atomic physics from the University of Toronto in 1940. During World in Canada. Later, even the word “Commonwealth” was done War II, he served with the Royal Canadian Navy. He joined away with and the body acquired the name by which it con- the Mines Branch in 1948. tinues to be known today — the Council of Mining and Metallurgical Institutions. Canada and the IMPC The impact of these conferences was enormous. Besides disIn 1952, the Institution of Mining and Metallurgy seminating technical information about mining and metallurgy devoted one of its conferences to mineral processing. Held at in Canada, they also provided the impetus for formal organiza- the Royal School of Mines in London, England, this event tion and association to mining industry professionals and aca- was repeated approximately every two years. Eventually, it demic researchers. The present-day successor of the confer- evolved into an organization in its own right that became ence, the Annual Canadian Mineral Processors Operators’ known as International Mineral Processing Congress Conference, is held in Ottawa in January. The conference (IMPC). In 1982, the president of CIM and the director of organizers charged themselves with updating the famed 1957 the Mines Branch jointly invited the Congress to convene in volume, The Milling of Canadian Ores. Undertaken in 1978 and Toronto. The conference was held from October 12 to 23 of 2000, these updates provide an authoritative review of the that year and was attended by over 600 delegates from 43 Canadian mineral industry and the state of research in this field. countries. Its proceedings were published in six pre-print Another important publication of the Mines Branch was volumes in English with abstracts in English, French, the 1981 souvenir entitled A Canadian Research Heritage by German and Russian. CIM

The landmark 1957 volume published for the Sixth Congress of the Commonwealth Council of Mining and Metallurgical Institutions

The Milling of Canadian Ores (1978)

The 1981 souvenir issued by the Mines Branch

The Milling of Canadian Ores (2000) May 2010 | 111

technical abstracts CANADIAN METALLURGICAL QUARTERLY

Effect of Silver Content in Pb-Ag Anodes on the Performance of the Anodes during Zinc Electrowinning W. Zhang, A.-M. Lafront, E. Ghali, Department of Mining, Metallurgy and Materials Engineering, Laval University, Ste-Foy, Quebec, G. Houlachi, LTE, Hydro-Quebec, Shawinigan, Quebec, G. Monteith, Zinc Electrolytique du Canada Ltee, Valleyfield, Quebec, and G. Champoux, LTE, Hydro-Quebec, Shawinigan, Quebec

Effect of Gelatin and Antimony on Zinc Electrowinning by Electrochemical Noise Measurements A-M. LaFront, W. Zhang, E. Ghali, Department of Mining, Metallurgy and Materials Engineering Laval University, Ste-Foy, Quebec, and G. Houlachi, LTE, Hydro-Quebec, Shawinigan, Quebec

Activity of Sb in Cu-Ni Mattes D.C. Lynch, Department of Mining and Geological Engineering, University of Arizona and Chief Technical Officer for the Solar Technology Research Corporation, Tucson, Arizona

Electrical Conditions of a Coke Bed in SiMn Production P.A. Eidem, Eramet Norway AS, c/o SINTEF Materials and Chemistry, Tondheim, Norway, M. Tangstad and J.A. Bakken, Department of Materials Science and Engineering, NTNU, Trondheim, Norway

Purification of Aluminum through Gas and Powder Fluxing: Part I. Mathematical Models X. Lv, School of Materials Science and Engineering, Chongqing University, Chongqing, China, and L. Zhang, Department of Materials Science Engineering, Missouri University of Science and Technology, Rolla, Missouri

Purification of Aluminum through Gas and Powder Fluxing: Part II. Parametric Study X. Lv, School of Materials Science and Engineering, Chongqing University, Chongqing, China, and L. Zhang, Department of Materials Science Engineering, Missouri University of Science and Technology, Rolla, Missouri

112 | CIM Magazine | Vol. 5, No. 3

Excerpts taken from abstracts in CMQ, Vol. 48, No. 3. Subscribe—www.cmq-online.ca

ABSTRACT The efficiency of the electrowinning process of zinc depends on the performance of oxygen evolution reaction, anode quality and corrosion resistance of lead anodes. The original surfaces of rolled commercial lead-silver anodes were examined using conventional polarization methods in acid zinc sulfate electrolyte with MnSO4 at 38°C. The experiments show that the duration of the plateau at 1600 mV/SHE, the potential level (active corrosion state/corrosion potential region) and the rate ∆Ecorr/∆t during the decay could be a good indicator to compare the corrosion rates of the anodes in industrial zinc electrolytes. ABSTRACT The influence of an additive (gelatin), impurity (antimony) or a combination of both gelatin and antimony on zinc electrowinning in sulphuric acid electrolytes was investigated by electrochemical noise measurements. This study was oriented to examine the utility of using electrochemical noise technique to characterize the electrowinning process and the deposit structure morphology during electrolysis and complement the scanning electronic microscope studies. The electrochemical noise analysis in the time domain was successful in revealing the combined effect of different concentrations of gelatin and antimony on zinc electrowinning process. ABSTRACT A transpiration method was used to evaluate the activity coefficient of Sb (γ Sb) in Cu-Ni mattes. The chemical bonding of Sb in matte changes with increasing values of both the Cu/Ni ratio and SD. The change in bonding is attributed to the impact of free Ni atoms in sulphur deficient mattes, the volatilization of SbS and formation of Sb2S3 in matte as the vapour pressure of S2 is increased. Comparison of results indicates that Sb is more stable in Cu-Ni mattes than in Cu-Fe mattes, a condition attributed to preferred bonding between Ni and Sb. ABSTRACT In this experiment, FeMn and SiMn were produced in a 150 kVA pilot scale furnace. Based on the resistance measurements performed on the furnace during the experiment, the resistance variations throughout the experiment have been analyzed. Two approaches were made to estimate the resistivity of the coke bed, based on the last measured resistance and the shape of the coke bed. ABSTRACT Mathematical models for the removal of impurity elements from molten aluminum through injecting inert gas, reactive powders, slag refining and combinations of these methods, are well-developed. Compared with the single models, the combined model can give a more accurate prediction and the contribution of each method on the removal efficiency can be qualified. The model is useful to improve the removal efficiency of impurity elements by gas combined with powder fluxing. ABSTRACT The combined model which was developed and validated in Part I of this paper was used to perform parametric studies for the Alcoa A622 refining process of aluminum in order to optimize the operation. The dependency of the removal efficiency of the impurity elements on some operational parameters is discussed.

Excerpts taken from abstracts in CMQ, Vol. 48, No. 3. Subscribe—www.cmq-online.ca

Resistance Heating of Oxide Slags – Theoretical Model and Experimental Validation R. Kranti, M. Kumar, S. Ranganathan, National Metallurgical Laboratory, Jamshedpur, India, S.B. Lal Saxena and S.P. Mehrotra, National Institute of Technology, Jamshedpur, India

The Assimilation of Mn-Al Powder Compacts in Liquid Mg: Exothermicity and Recovery Issues Z. Li and S.A. Argyropoulos, Department of Materials Science and Engineering, University of Toronto, Toronto, Ontario

Compressive Creep Behaviour of Cast Magnesium under Stresses above the Yield Strength and the Resultant Texture Evolution M. Celikin, F. Zarandi, McGill University, Materials Engineering, Montreal, Quebec, D. Sediako, Canadian Neutron Beam Centre, NRC Canada, Chalk River, Ontario, and M.O. Pekguleryuz, McGill University, Materials Engineering, Montreal, Quebec

Microstructure and Texture Evolution in Hot Rolled and Annealed Magnesium Alloy TRC AZ31 S. Abdessameud and D. Bradai, Faculté de Physique, USTHB, Alger, Algérie

Microstructural Examination of a Grade 100 Microalloyed Steel and Correlation with Yield Strength K. Poorhaydari and D.G. Ivey, Department of Chemical and Materials Engineering, University of Alberta, Edmonton, Alberta

Influence of Suspended Talc Particles in Oil and Nature of Material Microconstituents on Sliding Wear Characteristics of Cast Iron and Zinc-Based Alloy B.K. Prasad, Advanced Materials and Processes Research Institute (CSIR), Bhopal, India

ABSTRACT Experiments were carried out to measure the current passing through liquid slag as a function of the dimensions of the electrode, geometry of the system, applied voltage, height of the slag column and the depth of immersion of the electrode in the slag. There was good agreement between the predictions of the shell model and the experimental observations. The model also successfully predicts the minimum height of the slag column required for sustaining resistance heating and also the influence of current on the erosion of the electrode. ABSTRACT The assimilation of Mn-Al compacts into liquid Mg starts with the incubation period, where the Mg bath acts as a heat source. Recovery was affected by the compact’s Mn content and the Mg bath temperature of the compact. For small sized compacts, the highest recovery was observed in a compact with Mn content of 50 wt% immersed in an Mg bath at 750ºC. The large sized compacts exhibited a much lower recovery. ABSTRACT Creep behaviour of commercial purity cast magnesium with preferred orientation was examined in compression at 100, 125 and 150ºC and 35 and 50 MPa. It was noticed that creep under the aforementioned conditions changed the initial grain orientation. Such evolution of orientation was stronger at higher temperatures. Some evidence of grain boundary serrations was also observed after creep and these were attributed to creep-deformation due to strain-induced grain boundary migration. ABSTRACT An AZ31 twin-roll-cast (TRC) magnesium alloy was subjected to rolling at 450°C to different final thicknesses. This processing resulted in a gradual grain refinement and microstructure homogenization. Annealing treatments at 400 and 450°C led to normal grain growth in all the samples. The annealing texture is a retained basal deformation texture and is stable upon ageing. ABSTRACT The microstructure of a Grade 100 microalloyed steel was examined in terms of the iron matrix phases and microalloy precipitates using electron microscopy. Since microalloyed pipeline and structural steels are currently graded according to their yield strength, the different microstructural factors that affect the yield strength of the steel were assessed and their contributions to the strength were estimated. It was found that the increased strength was mainly due to the formation of bainitic structures with fine grain/sub-grain sizes. The contribution from other strengthening sources such as precipitates, dislocations and atoms in solid solution was significantly less. ABSTRACT This investigation pertains to some observations on the sliding wear behaviour of a zinc-based alloy and grey cast iron as influenced by the content of talc particles suspend in SAE40 oil lubricant. The observed wear response of the samples has been explained in terms of characteristics like compatibility, lubricating and cracking tendency of various microconstituents of the specimen materials and formation and stability of lubricant film during sliding. Characteristic features of wear surfaces, subsurface regions and debris particles enabled to further substantiate the wear response of the samples.

May 2010 | 113

technical abstracts CIM JOURNAL Excerpts taken from abstracts in CIM Journal, Vol. 1, No. 1. Subscribe—www.cim.org

Innovative method to recover and recycle the technological materials used in dimension stone processing M. Cardu and E. Michelotti, Politecnico di Torino, Italy

Intégration des données minéralurgiques et géomécaniques pour la conception minière : le cas de la fosse J4 de la mine Troilus

ABSTRACT This paper presents the results of a new method that has been tested to recover metallic cobalt lost by diamond beads from rock cuttings. This research aims to develop a waste-processing pilot plant to recover metallic components from the pulp by means of a suitable separation. The research’s purposes are two-fold: a. to remove the polluting components from the rock debris before their disposal and b. to start a recycling process of the valuable metals. RÉSUMÉ Cet article présente les résultats d’une nouvelle méthode mise à l’épreuve pour récupérer le cobalt métallique perdu par les perles diamantées lors de coupes du roc. Cette recherche en cours vise à développer une usine pilote de traitement des déchets afin de récupérer les composantes métalliques de la pulpe par une séparation adéquate. Le but de la recherche est double : a. retirer les composantes polluantes des débris rocheux avant leur élimination et b. commencer un processus de recyclage des métaux de valeur. RÉSUMÉ Cet article présente deux approches permettant d’intégrer certains types d’analyses aux modèles de blocs miniers. Ces approches permettent de quantifier la broyabilité du massif rocheux ainsi que d’étudier la stabilité des pentes minières à même les outils d’optimisation et de planification minières. De plus, ces approches sont flexibles et permettent d’évaluer rapidement plusieurs scénarios, tout en laissant la possibilité de bonifier le modèle et de revoir la conception tout au long du projet minier.

Martin Grenon, Bouchaib Semlali, Département de génie des mines, de la métallurgie et des matériaux, Université Laval et Julie Bélanger, Corporation minière Inmet Division Troilus

ABSTRACT This article presents two approaches integrating certain types of analyses to mine block models. These approaches are used to quantify the grindability of the rock mass and to study the stability of mine slopes with the mining optimization and planning tools. They are also flexible and allow the rapid assessment of several scenarios, all while keeping open the possibility of improving the model and reviewing the design during the entire mining project.

Analyse des modèles économiques des coûts de minage pour les études de préfaisabilité

RÉSUMÉ Les méthodologies existantes d’évaluation des coûts de minage ne permettent pas de les évaluer avec des marges d’erreur acceptables tout au long de l’évolution des projets miniers. Nous avons analysé la méthode d’exploitation la plus populaire sur le continent nord-américain c’est à dire celle par chambres vides avec retrait horizontal (HR – Horizontal Retreat), ou « Longhole » et celle avec retrait vertical (VCR Vertical Crater Retreat). Il ressort de cette analyse que les coûts unitaires de minage dépendent principalement des conditions géotechniques du massif rocheux et de la largeur du gisement et non pas du taux d’extraction journalière du minerai.

Stefan Planeta, Université Laval et Jozef Szymanski, University of Alberta

ABSTRACT The existing methodologies to evaluate the mining costs do not allow estimating them with acceptable margins of error throughout the evolution of the mining projects. We analyzed the “open stope” mining method, which is the most popular method in North America. The results of this analysis show that the unit costs of mining depend mainly on the geotechnical conditions of the rock massif and the width of the deposit and not on the daily ore extraction rate.

Analyse technique et économique du triage photométrique du minerai Stefan Planeta, Université Laval et Jozef Szymanski, University of Alberta

RÉSUMÉ Cet article traite d’une analyse technique et économique du concept du triage optique en vue d’améliorer la rentabilité des opérations minières. Le principe du tri optique et les principaux systèmes et modules servant au fonctionnement de l’appareil de triage sont décrits. Un modèle a été développé pour analyser l’intérêt économique d’une opération de triage optique. Les résultats de cette analyse indiquent que l’opération de triage optique permet d’améliorer grandement la performance économique; l’opération devient alors rentable pour des teneurs en or relativement petites. ABSTRACT This article concerns a feasibility analysis of using optical sorting to separate the economic and non-economic ore in order to increase the profitability of mining operations and to reduce the negative impact of mining discharges on the environment. The optical sorting equipment available on the market and the main characteristics are presented. A model was developed to analyze the economic benefits of optical sorting. The results of this analysis indicate that optical sorting greatly improves economic performance and becomes profitable for relatively low-grade ores. In addition, the separation efficiency of sterile/ore is high and can greatly improve the economic performance of mines.

114 | CIM Magazine | Vol. 5, No. 3

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 is available. Instructors: Gelson Batista, AMEC, Canada, Roussos Dimitrakopoulos, McGill University, Canada, and Gerald Whittle, Whittle Consulting, Australia • Date: June 1-4 • City: Montreal

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, Consultant, United States • Date: September 8-10 • 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 the principles of N I43-101 and the SME Guide. Instructors: Michel Dagbert, Geostat Systems Int., Canada, Jean-Michel Rendu, Consultant, United States, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 13-17 • 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. Instructors: Michel Bilodeau and Sabry A. Abdel Sabour, McGill University, Canada • Date: November 8-11 • City: Montreal

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116 Professional Directory Corriveau J.L. / 3D Survey & Scan Independent Mining Consultants BioteQ Inc.

116 Product Files Bridgestone L. May Metal Fabricators, Ltd.

May 2010 | 117

voices from industry

Coming full circle Integrating global economic, environmental and social challenges into our core business practices Lee Nehring, vice-president, sustainability and human resources, Xstrata Nickel

ur industry has come to the realization that being sustainable is dependent upon our ability to integrate economic, environmental and social challenges into our core business practices. We might argue the materiality of these competing challenges, depending on time and context, but we cannot dispute our obligation to strategically manage the dynamic tension between the three challenges that is ever present within our business. Corporate social responsibility (CSR) or, more explicitly, corporate responsibility, is not a “value-added” activity. It is a central accountability that is expected by our investors, public policy-makers, employees, communities and civil society. There are many sustainability management frameworks available covering multiple sectors, each of which present a suite of core business elements along with a specific technical emphasis. I’d like to focus on three — engagement, performance and governance — which are required to effectively manage any internal or external risk or opportunity associated with our industry. Rigorous, strategic engagement is the surest method of clearly defining the issues that are of highest concern to our “communities of interest” and our business objectives. It means that we will endeavor to involve those who are most likely to be affected by our business decisions, including our own workforce, communities and others with a special interest. Once the issue is defined and well understood, it becomes easier to find common ground and, as a result, develop practical, workable solutions to ensure that the opportunity is realized and the risk well managed. Meaningful engagement is not a band-aid for complex issues. But, it is a good indicator that a company has focused on building relationships that will challenge them to accelerate their own leadership and find solutions through innovation. Twenty years ago, we struggled as an industry to merge traditional ecological knowledge into our environmental business decisions along with our traditional empirical science knowledge.

118 | CIM Magazine | Vol. 5, No. 3

Today, we have countless examples of how their successful integration has influenced significant changes to our management of water, biodiversity and reclamation. Ultimately, it’s the “so what” factor of engagement that counts, which is why performance is the second core element of CSR. More importantly, performance informed by engagement is more likely to be driven by a strategy of continuous improvement as a result of the broader perspectives, ideas and challenges that are entering into the decision-making process. As a result, the emphasis is on setting objectives that will deliver required business outcomes and that have meaning for both internal and external stakeholders. Without this relevance, it is very difficult to harness the right leadership, commitment and resources to meet our targets, a lesson we learned from our industry’s improved health and safety performance. How and where we are improving our economic, environmental and social performance is no longer a matter of trust. Accountability must be demonstrated through a process of assurance and reporting that speaks to transparent good governance. Today’s mining leadership is distinguishing itself by its participation in a multitude of reporting mechanisms that cover the spectrum of local community, regional, national and international interests — many of which are voluntary. In addition, the range of outcomes we report continues to increase and is expanding the need for verifiable data collection and senior management oversight. The reporting challenge also includes our reluctance to share where we have not been so successful. It is difficult to convince ourselves that a public discussion of what is not working will be beneficial. Happily, the rise of credible multi-sector initiatives is creating an environment that supports this next level of reporting and analysis. While not easy, forums such as the National Roundtables on Corporate Social Responsibility and the Canadian Extractive Industry and the ongoing development of the Canadian Centre for Excellence in CSR support the need for constructive, challenging discussions among parties with a shared interest in corporate social responsibility and mining. Thus, we come full circle to the integration of global economic, environmental and social challenges into our core business practices and the need for our industry to excel at engagement, CSR performance and governance. CIM

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